204
(B) in paragraph (3), by inserting ‘‘arrears
under’’ after ‘‘enforce’’; and
(13) by adding at the end the following new
subsection:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is
no individual contestant or child residing in the issuing
State, the party or support enforcement agency seeking
to modify, or to modify and enforce, a child support order
issued in another State shall register that order in a State
with jurisdiction over the nonmovant for the purpose of
modification.’’.
SEC. 223. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE
CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 215 and 217(a) of this Act, is amended by adding
at the end the following new paragraph:
‘‘(14) 
ADMINISTRATIVE
ENFORCEMENT
IN
INTERSTATE CASES.—Procedures under which—
‘‘(A) the State shall respond within 5 busi-
ness days to a request made by another State
to enforce a support order (and for this purpose
the term ‘business day’ means a day on which
State offices are open for regular business);
‘‘(B) the State may, by electronic or other
means, transmit to another State a request for
205
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
process requirements applicable to the
case;
‘‘(C) if the State provides assistance to an-
other State pursuant to this paragraph with re-
spect to a case, neither State shall consider the
case to be transferred to the caseload of such
other State; and
‘‘(D) the State shall maintain records of—
‘‘(i) the number of such requests for
assistance received by the State;
206
‘‘(ii) the number of cases for which
the State collected support in response to
such a request; and
‘‘(iii) the amount of such collected
support.’’.
SEC. 224. 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
paragraph:
‘‘(11) not later than December 31, 1996, after
consulting with the State directors of programs
under this part, promulgate forms to be used by
States in interstate cases for—
‘‘(A) collection of child support through 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—
207
(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) no later than April 1, 1997, in using
the forms promulgated pursuant to section
452(a)(11) for income withholding, imposition
of liens, and issuance of administrative subpoe-
nas in interstate child support cases;’’.
SEC. 225. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666), as amended by section 214 of this Act, is
amended—
(1) in subsection (a)(2), by striking the first
sentence and inserting the following: ‘‘Expedited ad-
ministrative and judicial procedures (including the
procedures specified in subsection (c)) for establish-
ing paternity and for establishing, modifying, and
enforcing support obligations.’’; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
208
‘‘(c) EXPEDITED
PROCEDURES.—The procedures
specified in this subsection, for purposes of the require-
ment of subsection (a)(2), 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 es-
tablishment or enforcement of support orders, with-
out the necessity of obtaining an order from any
other judicial or administrative tribunal, and to rec-
ognize and enforce the authority of State agencies of
other States) to take the following actions:
‘‘(A) GENETIC TESTING.—To order genetic
testing for the purpose of paternity establish-
ment as provided in section 466(a)(5).
‘‘(B) FINANCIAL
OR
OTHER
INFORMA-
TION.—To subpoena any financial or other in-
formation needed to establish, modify, or en-
force a support order, and to impose penalties
for failure to respond to such a subpoena.
‘‘(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
209
part, information on the employment, com-
pensation, and benefits of any individual em-
ployed by such entity as an employee or con-
tractor, and to sanction failure to respond to
any such request.
‘‘(D) ACCESS TO CERTAIN RECORDS.—To
obtain access, subject to safeguards on privacy
and information security, to 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 residence address, employer, in-
come 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
210
corporations, partnerships, and other
business entities;
‘‘(V) 
employment 
security
records;
‘‘(VI) records of agencies admin-
istering public assistance programs;
‘‘(VII) records of the motor vehi-
cle department; and
‘‘(VIII) corrections records.
‘‘(ii) Certain records held by private
entities, including—
‘‘(I) customer records of public
utilities and cable television compa-
nies; and
‘‘(II) information (including in-
formation on assets and liabilities) on
individuals who owe or are owed sup-
port (or against or with respect to
whom a support obligation is sought)
held by financial institutions (subject
to limitations on liability of such enti-
ties arising from affording such ac-
cess), as provided pursuant to agree-
ments described in subsection (a)(18).
211
‘‘(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 re-
quirement to pay through the State disburse-
ment unit established pursuant to section
454B, upon providing notice to obligor and obli-
gee, to direct the obligor or other payor to
change the payee to the appropriate government
entity.
‘‘(F) INCOME
WITHHOLDING.—To order
income withholding in accordance with sub-
sections (a)(1) 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—
‘‘(I) a State or local agency, in-
cluding unemployment compensation,
workers’ compensation, and other ben-
efits; and
‘‘(II) judgments, settlements, and
lotteries;
212
‘‘(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 dis-
tribution of proceeds.
‘‘(H) INCREASED MONTHLY PAYMENTS.—
For the purpose of securing overdue support, to
increase the amount of monthly support pay-
ments to include amounts for arrearages, sub-
ject to such conditions or limitations as the
State may provide.
Such procedures shall be subject to due process safe-
guards, including (as appropriate) requirements for
notice, opportunity to contest the action, and oppor-
tunity for an appeal on the record to an independent
administrative or judicial tribunal.
‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—
The expedited procedures required under subsection
(a)(2) shall include the following rules and author-
ity, applicable with respect to all proceedings to es-
tablish paternity or to establish, modify, or enforce
support orders:
213
‘‘(A) LOCATOR
INFORMATION; PRESUMP-
TIONS
CONCERNING
NOTICE.—Procedures
under which—
‘‘(i) each party to any paternity or
child support proceeding is required (sub-
ject to privacy safeguards) to file with the
tribunal and the State case registry upon
entry of an order, and to update as appro-
priate, information on location and identity
of the party, including social security num-
ber, residential and mailing addresses, tele-
phone number, driver’s license number,
and name, address, and name and tele-
phone number of employer; and
‘‘(ii) in any subsequent child support
enforcement action between the parties,
upon sufficient showing that diligent effort
has been made to ascertain the location of
such a party, the tribunal may deem State
due process requirements for notice and
service of process to be met with respect to
the party, upon delivery of written notice
to the most recent residential or employer
address filed with the tribunal pursuant to
clause (i).
214
‘‘(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
retain jurisdiction over the parties.
‘‘(3) COORDINATION
WITH
ERISA.—Notwith-
standing subsection (d) of section 514 of the Em-
ployee Retirement Income Security Act of 1974 (re-
lating to effect on other laws), nothing in this sub-
section shall be construed to alter, amend, modify,
invalidate, impair, or supersede subsections (a), (b),
and (c) of such section 514 as it applies with respect
to any procedure referred to in paragraph (1) and
any expedited procedure referred to in paragraph
(2), except to the extent that such procedure would
be consistent with the requirements of section
215
206(d)(3) of such Act (relating 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 ref-
erence in such section 609(a) to a medical child sup-
port order were a reference to a support order re-
ferred to in paragraphs (1) and (2) relating to the
same matters, respectively.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 245(a)(2) and as
amended by sections 211 and 212(c) of this Act, is amend-
ed by adding at the end the following new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—
The automated system required by this section shall be
used, to the maximum extent feasible, to implement the
expedited administrative procedures required by section
466(c).’’.
Subtitle D—Paternity
Establishment
SEC. 231. 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:
216
‘‘(5) PROCEDURES CONCERNING PATERNITY ES-
TABLISHMENT.
‘‘(A) ESTABLISHMENT
PROCESS
AVAIL-
ABLE FROM BIRTH UNTIL AGE 18.—
‘‘(i) Procedures which permit the es-
tablishment 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 dis-
missed 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
contested paternity case (unless otherwise
barred by State law) to require the child
and all other parties (other than individ-
uals found under section 454(29) to have
good cause for refusing to cooperate) to
217
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 ge-
netic testing—
‘‘(I) to pay costs of such tests,
subject to recoupment (if the State so
elects) from the alleged father if pa-
ternity is established; and
‘‘(II) to obtain additional testing
in any case if an original test result is
contested, upon request and advance
payment by the contestant.
‘‘(C) VOLUNTARY
PATERNITY
ACKNOWL-
EDGMENT.—
218
‘‘(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
acknowledgment of paternity, the mother
and the putative father must be given no-
tice, orally and in writing, of the alter-
natives to, the legal consequences of, and
the rights (including, if 1 parent is a
minor, any rights afforded due to minority
status) and responsibilities that arise from,
signing the acknowledgment.
‘‘(ii) HOSPITAL-BASED
PROGRAM.—
Such procedures must include a hospital-
based program for the voluntary acknowl-
edgment of paternity focusing on the pe-
riod immediately before or after the birth
of a child, subject to such good cause ex-
ceptions, taking into account the best in-
terests of the child, as the State may es-
tablish.
‘‘(iii) 
PATERNITY
ESTABLISHMENT
SERVICES.—
219
‘‘(I) 
STATE-OFFERED
SERV-
ICES.—Such procedures must require
the State agency responsible for main-
taining birth records to offer vol-
untary paternity establishment serv-
ices.
‘‘(II) REGULATIONS.—
‘‘(aa) SERVICES
OFFERED
BY
HOSPITALS
AND
BIRTH
RECORD
AGENCIES.—The Sec-
retary shall prescribe regulations
governing voluntary paternity es-
tablishment services offered by
hospitals and birth record agen-
cies.
‘‘(bb) SERVICES
OFFERED
BY OTHER ENTITIES.—The Sec-
retary shall prescribe regulations
specifying the types of other enti-
ties that may offer voluntary pa-
ternity 
establishment 
services,
and governing the provision of
such services, which shall include
a requirement that such an entity
must use the same notice provi-
220
sions used by, use the same ma-
terials used by, provide the per-
sonnel providing such services
with the same training provided
by, and evaluate the provision of
such services in the same manner
as the provision of such services
is evaluated by, voluntary pater-
nity establishment programs of
hospitals and birth record agen-
cies.
‘‘(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-
mum requirements of the affidavit devel-
oped by the Secretary under section
452(a)(7) for the voluntary acknowledg-
ment of paternity, and to give full faith
and credit to such an affidavit signed in
any other State according to its proce-
dures.
‘‘(D) STATUS OF SIGNED PATERNITY AC-
KNOWLEDGMENT.—
221
‘‘(i) INCLUSION IN BIRTH RECORDS.—
Procedures under which the name of the
father shall be included on the record of
birth of the child of unmarried parents
only if—
‘‘(I) the father and mother have
signed a 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 precludes a State
agency from obtaining an admission of pa-
ternity from the father for submission in a
judicial or administrative proceeding, or
prohibit the issuance of an order in a judi-
cial or administrative proceeding which
bases a legal finding of paternity on an ad-
mission of paternity by the father and any
other additional showing required by State
law.
‘‘(ii) LEGAL
FINDING
OF
PATER-
NITY.— Procedures under which a signed
voluntary acknowledgment of paternity is
considered a legal finding of paternity,
222
subject to the right of any signatory to re-
scind the acknowledgment within the ear-
lier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administra-
tive or judicial proceeding relating to
the child (including a proceeding to
establish a support order) in which
the signatory is a party.
‘‘(iii) CONTEST.—Procedures under
which, after the 60-day period referred to
in clause (ii), a signed voluntary acknowl-
edgment of paternity may be challenged in
court only on the basis of fraud, duress, or
material mistake of fact, with the burden
of proof upon the challenger, and under
which the legal responsibilities (including
child support obligations) of any signatory
arising from the acknowledgment may not
be suspended during the challenge, except
for good cause shown.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI-
CATION
PROCEEDINGS.—Procedures 
under
which judicial or administrative proceedings are
223
not required or permitted to ratify an unchal-
lenged 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 be-
fore any hearing at which the results may
be introduced into evidence (or, at State
option, not later than a specified number
of days after receipt of the results); and
‘‘(iii) making the test results admissi-
ble as evidence of paternity without the
need for foundation testimony or other
224
proof of authenticity or accuracy, unless
objection is made.
‘‘(G) PRESUMPTION
OF
PATERNITY
IN
CERTAIN CASES.—Procedures which create a re-
buttable or, at the option of the State, conclu-
sive presumption of paternity upon genetic test-
ing results 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
required by State law.
‘‘(I) 
NO
RIGHT
TO
JURY
TRIAL.—Procedures 
providing 
that
the parties to an action to establish
paternity are not entitled to a trial by
jury.
‘‘(J) TEMPORARY SUPPORT ORDER BASED
ON
PROBABLE
PATERNITY
IN
CONTESTED
CASES.—Procedures which require that a tem-
porary order be issued, upon motion by a party,
requiring the provision of child support pending
an administrative or judicial determination of
parentage, if there is clear and convincing evi-
225
dence of paternity (on the basis of genetic tests
or other evidence).
‘‘(K) PROOF OF CERTAIN SUPPORT AND
PATERNITY
ESTABLISHMENT
COSTS.—Proce-
dures under which bills for pregnancy, child-
birth, and genetic testing are admissible as evi-
dence without requiring third-party foundation
testimony, and shall constitute prima facie evi-
dence 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 pater-
nity 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.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI-
DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is
amended by inserting ‘‘, and develop an affidavit to be
226
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 ele-
ments as determined by such designee’’ before the semi-
colon.
(c) CONFORMING AMENDMENT.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘a simple civil process
for voluntarily acknowledging paternity and’’.
SEC. 232. 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. 233. COOPERATION REQUIREMENT AND GOOD CAUSE
EXCEPTION.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by sections 201(b), 203(a), 212(a), and 213(a)
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
227
(3) by inserting after paragraph (28) the fol-
lowing new paragraph:
‘‘(29) provide that the State agency administer-
ing the plan under this part—
‘‘(A) will make the determination specified
under paragraph (4), as to whether an individ-
ual is cooperating with efforts to establish pa-
ternity and secure support (or has good cause
not to cooperate with such efforts) for purposes
of the requirements of sections 403(b)(1)(E)(i)
and 1912;
‘‘(B) will advise individuals, both orally
and in writing, of the grounds for good cause
exceptions to the requirement to cooperate with
such efforts;
‘‘(C) will take the best interests of the
child into consideration in making the deter-
mination whether such individual has good
cause not to cooperate with such efforts;
‘‘(D)(i) will make the initial determination
as to whether an individual is cooperating (or
has good cause not to cooperate) with efforts to
establish paternity within 10 days after such in-
dividual is referred to such State agency by the
228
State agency administering the program under
part A or title XIX;
‘‘(ii) will make redeterminations as to
cooperation or good cause at appropriate
intervals; and
‘‘(iii) will promptly notify the individ-
ual, and the State agencies administering
such programs, of each such determination
and redetermination;
‘‘(E) with respect to any child born on or
after the date 10 months after enactment of
this provision, will not determine (or redeter-
mine) the mother (or other custodial relative) of
such child to be cooperating with efforts to es-
tablish paternity unless such individual fur-
nishes—
‘‘(i) the name of the putative father
(or fathers); and
‘‘(ii) sufficient additional information
to enable the State agency, if reasonable
efforts were made, to verify the identity of
the person named as the putative father
(including such information as the putative
father’s present address, telephone num-
ber, date of birth, past or present place of
229
employment, school previously or currently
attended, names and addresses of parents,
friends, or relatives able to provide location
information, or other information that
could enable service of process on such per-
son); and
‘‘(F)(i) (where a custodial parent who was
initially determined not to be cooperating (or to
have good cause not to cooperate) is later deter-
mined to be cooperating or to have good cause
not to cooperate) will immediately notify the
State agencies administering the programs
under part A and title XIX that this eligibility
condition has been met; and
‘‘(ii) (where a custodial parent was initially
determined to be cooperating (or to have good
cause not to cooperate)) will not later determine
such individual not to be cooperating (or not to
have good cause not to cooperate) until such in-
dividual has been afforded an opportunity for a
hearing.’’.
(b) MEDICAID AMENDMENTS.—Section 1912(a) (42
U.S.C. 1396k(a)) is amended—
230
(1) in paragraph (1)(B), by inserting ‘‘(except
as provided in paragraph (2))’’ after ‘‘to cooperate
with the State’’;
(2) in subparagraphs (B) and (C) of paragraph
(1) by striking ‘‘, unless’’ and all that follows and
inserting a semicolon; and
(3) by redesignating paragraph (2) as para-
graph (6), and inserting after paragraph (1) the fol-
lowing new paragraphs:
‘‘(2) provide that the State agency will imme-
diately refer each applicant or recipient requiring
paternity establishment services to the State agency
administering the program under part D of title IV;
‘‘(3) provide that an individual will not be re-
quired to cooperate with the State, as provided
under paragraph (1), if the individual is found to
have good cause for refusing to cooperate, as deter-
mined in accordance with standards prescribed by
the Secretary, which standards shall take into con-
sideration the best interests of the individuals in-
volved—
‘‘(A) to the satisfaction of the State agency
administering the program under part D, as de-
termined in accordance with section 454(29),
with respect to the requirements to cooperate
231
with efforts to establish paternity and to obtain
support (including medical support) from a par-
ent; and
‘‘(B) to the satisfaction of the State agen-
cy administering the program under this title,
with respect to other requirements to cooperate
under paragraph (1);
‘‘(4) provide that (except as provided in para-
graph (5)) an applicant requiring paternity estab-
lishment services (other than an individual presump-
tively eligible pursuant to section 1920) shall not be
eligible for medical assistance under this title until
such applicant—
‘‘(i) has furnished to the agency admin-
istering the State plan under part D of title IV
the information specified in section 454(29)(E);
or
‘‘(ii) has been determined by such agency
to have good cause not to cooperate; and
‘‘(5) provide that the provisions of paragraph
(4) shall not apply with respect to an applicant—
‘‘(i) if such agency has not, within 10 days
after such individual was referred to such agen-
cy, provided the notification required by section
232
454(29)(D)(iii), until such notification is re-
ceived; and
‘‘(ii) if such individual appeals a deter-
mination that the individual lacks good cause
for noncooperation, until after such determina-
tion is affirmed after notice and opportunity for
a hearing.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section are effective with respect to applications filed
in or after the first calendar quarter beginning 10 months
or more after the date of the enactment of this amendment
(or such earlier quarter as the State may select) for assist-
ance under a State plan approved under part A of title
IV of the Social Security Act or for medical assistance
under a State plan approved under title XIX of such Act.
Subtitle E—Program
Administration and Funding
SEC. 241. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) DEVELOPMENT
OF NEW SYSTEM.—The Sec-
retary 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 sys-
tem to replace, in a cost neutral manner, the system under
section 458 of such Act. The new system shall provide ad-
233
ditional payments to any State based on such State’s per-
formance under such a program. The Secretary shall in-
clude procedures that ensure that the total incentives paid
to all States for a fiscal year under the new incentive sys-
tem do not exceed the total incentives that would have
been paid to all States for such fiscal year under the sys-
tem that was in effect during fiscal year 1995. Not later
than October 1, 1996, the Secretary shall report on the
new system to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate.
(b) CONFORMING AMENDMENTS TO PRESENT SYS-
TEM.—Section 458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to fami-
lies with dependent children under a State plan ap-
proved under part A of this title’’ and inserting ‘‘as-
sistance under a program funded under part A’’;
(2) in subsection (b)(1)(A), by striking ‘‘section
402(a)(26)’’ and inserting ‘‘section 402(a)(2)’’;
(3) in subsections (b) and (c)—
(A) by striking ‘‘AFDC collections’’ each
place it appears and inserting ‘‘title IV–A col-
lections’’, and
234
(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 IV–D PATERNITY ESTABLISH-
MENT 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 
by 
redesignating 
subparagraphs 
(B)
through (E) as subparagraphs (C) through (F), re-
spectively, and by inserting after subparagraph (A)
the following new subparagraph:
‘‘(B) for a State with a paternity establish-
ment percentage of not less than 75 percent but
less than 90 percent for such fiscal year, the
paternity establishment percentage of the State
for the immediately preceding fiscal year plus 2
percentage points;’’.
235
(3) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter preceding
clause (i)—
(A) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(B) by striking ‘‘(or all States, as the case
may be)’’.
(4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended by adding at the end the following new
sentence: ‘‘In meeting the 90 percent paternity es-
tablishment requirement, a State may calculate ei-
ther the paternity establishment rate of cases in the
program funded under this part or the paternity es-
tablishment rate of all out-of-wedlock births in the
State.’’.
(5) 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;
(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
236
born out of wedlock or for whom support has
not been established’’; and
(C) in subparagraph (B) (as so redesig-
nated) by inserting ‘‘and securing support’’ be-
fore the period.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed
under subsection (a) and the amendments made
by subsection (b) become effective on October 1,
1997, except to the extent provided in subpara-
graph (B).
(B) APPLICATION OF SECTION 458.—Sec-
tion 458 of the Social Security Act, as in effect
on the day before the date of the enactment of
this section, shall be effective for purposes of
incentive payments to States for fiscal years be-
fore fiscal year 1999.
(2) PENALTY REDUCTIONS.—The amendments
made by subsection (c) become effective with respect
to calendar quarters beginning on or after the date
of the enactment of this Act.
SEC. 242. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42
U.S.C. 654) is amended—
237
(1) in paragraph (14), by striking ‘‘(14)’’ and
inserting ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as sub-
paragraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
operated under the State plan approved under
this part, including such information as may be
necessary to measure State compliance with
Federal requirements for expedited procedures,
using such standards and procedures as are re-
quired 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
accomplishment (and rates of improvement)
with respect to applicable performance indica-
tors (including IV–D paternity establishment
238
percentages to the extent necessary for pur-
poses of sections 452(g) and 458).’’.
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
subsection (g) of this section and section 458;
‘‘(B) review annual reports submitted pur-
suant to section 454(15)(A) and, as appro-
priate, provide to the State comments, rec-
ommendations for additional or alternative cor-
rective actions, and technical assistance; and
‘‘(C) conduct audits, in accordance with
the Government auditing standards of the
Comptroller General of the United States—
‘‘(i) at least once every 3 years (or
more frequently, in the case of a State
which fails to meet the requirements of
this part concerning performance stand-
ards and reliability of program data) to as-
sess the completeness, reliability, and secu-
rity of the data, and the accuracy of the
reporting systems, used in calculating per-
239
formance indicators under subsection (g)
of this section and section 458;
‘‘(ii) of the adequacy of financial man-
agement 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 program are being appropriately
expended, and are properly and fully
accounted for; and
‘‘(II) whether collections and dis-
bursements of support payments are
carried out correctly and are fully ac-
counted for; and
‘‘(iii) for such other purposes as the
Secretary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning 12 months or more after the date of
the enactment of this Act.
SEC. 243. 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