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SEC. 302. USE OF NEW HIRE INFORMATION TO ASSIST IN 
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS. 
(a) IN GENERAL.—Section 453(j) of the Social Secu-
rity Act (42 U.S.C. 653(j)) is amended by adding at the 
end the following: 
‘‘(7) INFORMATION COMPARISONS AND DISCLO-
SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY-
MENT COMPENSATION PROGRAMS.— 
‘‘(A) IN GENERAL.—If a State agency re-
sponsible for the administration of an unem-
ployment compensation program under Federal 
or State law transmits to the Secretary the 
name and social security account number of an 
individual, the Secretary shall, if the informa-
tion in the National Directory of New Hires in-
dicates that the individual may be employed, 
disclose to the State agency the name, address, 
and employer identification number of any pu-
tative employer of the individual, subject to this 
paragraph. 
‘‘(B) CONDITION
ON
DISCLOSURE.—The 
Secretary shall make a disclosure under sub-
paragraph (A) only to the extent that the Sec-
retary determines that the disclosure would not
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interfere with the effective operation of the pro-
gram under this part. 
‘‘(C) USE
OF
INFORMATION.—A State 
agency may use information provided under this 
paragraph only for purposes of administering a 
program referred to in subparagraph (A).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2001. 
SEC. 303. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES. 
(a) IN GENERAL.—Section 3716(h)(3) of title 31, 
United States Code, is amended to read as follows: 
‘‘(3) In applying this subsection with respect to any 
debt owed to a State, other than past due support being 
enforced by the State, subsection (c)(3)(A) shall not apply. 
Subsection (c)(3)(A) shall apply with respect to past due 
support being enforced by the State notwithstanding any 
other provision of law, including sections 207 and 
1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 
1383(d)(1)), section 413(b) of Public Law 91–173 (30 
U.S.C. 923(b)), and section 14 of the Act of August 29, 
1935 (45 U.S.C. 231m).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2004.
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SEC. 304. MAINTENANCE OF TECHNICAL ASSISTANCE 
FUNDING. 
Section 452(j) of the Social Security Act (42 U.S.C. 
652(j)) is amended by inserting ‘‘or the amount appro-
priated under this paragraph for fiscal year 2002, which-
ever is greater,’’ before ‘‘which shall be available’’. 
SEC. 305. MAINTENANCE OF FEDERAL PARENT LOCATOR 
SERVICE FUNDING. 
Section 453(o) of the Social Security Act (42 U.S.C. 
653(o)) is amended— 
(1) in the first sentence, by inserting ‘‘or the 
amount appropriated under this paragraph for fiscal 
year 2002, whichever is greater’’ before ‘‘, which 
shall be available’’; and 
(2) in the second sentence, by striking ‘‘for 
each of fiscal years 1997 through 2001’’. 
SEC. 306. ELECTRONIC DISBURSEMENT OF CHILD SUPPORT 
PAYMENTS TO FAMILIES. 
Section 454A(g) of the Social Security Act (42 
U.S.C. 654a(g)) is amended by inserting at the end the 
following: 
‘‘(3) ELECTRONIC
DISBURSEMENT
REQUIRE-
MENT.— 
‘‘(A) IN GENERAL.—Not later than Octo-
ber 1, 2008, each State disbursement unit oper-
ated under section 454B shall implement a sys-
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tem to electronically disburse, through direct 
deposit or a widely accessible card-based sys-
tem, all child support collections disbursed to 
families under that section. 
‘‘(B) STATE OPTION TO REQUIRE CARD- 
BASED PAYMENT.—A State may require a pay-
ment recipient to accept payment through a 
card-based system if the recipient has declined 
to accept payment by direct deposit or does not 
have an account to which payment may be 
made by direct deposit. 
‘‘(C) OPT-OUT.—Notwithstanding subpara-
graph (A), a State disbursement unit may 
maintain a nonelectronic system for disbursing 
child support collections to custodial parents 
under section 454B after October 1, 2008, if 
the State notifies the Secretary in writing by 
October 1, 2008, that the State intends to 
maintain such a system.’’. 
SEC. 307. OPTIONAL EXPANSION OF STATE DISBURSEMENT 
UNIT TO CREATE A CENTRALIZED PAYMENT 
LOCATION FOR ALL CHILD SUPPORT WAGE 
WITHHOLDING. 
Section 454B(a)(1)(B) of the Social Security Act (42 
U.S.C. 654b(a)(1)(B)) is amended by inserting ‘‘or, at