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gram established in this part for fiscal year 1997 or any
succeeding fiscal year.
‘‘SEC. 1646. DEFINITIONS.
‘‘As used in this part:
‘‘(1) 
ALLOTMENT.—The 
term 
‘allotment’
means, with respect to a State and a fiscal year, the
product of—
‘‘(A) an amount equal to the difference be-
tween—
‘‘(i) the number of qualifying children
in the State (as determined for the most
recent 12-month period for which data are
available to the Commissioner); and
‘‘(ii) the number of qualifying children
in the State receiving cash benefits under
this title by reason of disability (as so de-
termined); and
‘‘(B) an amount equal to 75 percent of the
mean average of the respective annual totals of
cash benefits paid under this title to each quali-
fying child described in subparagraph (A)(ii)
(as so determined).
‘‘(2) AUTHORIZED
SERVICE.—The term ‘au-
thorized service’ means each purpose authorized by
the Commissioner under section 1644(a).
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‘‘(3) QUALIFYING CHILD.—
‘‘(A) IN GENERAL.—The term ‘qualifying
child’ means an individual who—
‘‘(i) has not attained 18 years of age;
and
‘‘(ii)(I) is eligible for cash benefits
under this title by reason of disability; or
‘‘(II) meets the conditions described
in subclauses (I) and (II) of section
1614(a)(3)(A)(ii), 
but 
(by 
reason 
of
subclause (III) of such section) is not eligi-
ble for such cash benefits.
‘‘(B) 
RESPONSIBILITIES
OF
COMMIS-
SIONER.—The Commissioner shall provide for
determinations of whether individuals meet the
criteria established in subparagraph (A) for sta-
tus as qualifying children. Such determinations
shall be made in accordance with the provisions
otherwise applicable under this title with re-
spect to such criteria.’’.
(2) RULE REGARDING CERTAIN MILITARY PAR-
ENTS; CASH
BENEFITS
FOR
QUALIFYING
CHIL-
DREN.—Section 1614(a)(1)(B)(ii) of the Social Se-
curity Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amend-
ed by striking ‘‘United States, and who, for the
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month’’ and all that follows and inserting the follow-
ing: ‘‘United States, and—
‘‘(I) who, for the month before the parent re-
ported for such assignment, received a cash benefit
under this title by reason of blindness, or
‘‘(II) for whom, for such month, a determina-
tion was in effect that the child is a qualifying child
under section 1646(3).’’.
(c) PROVISIONS RELATING TO SSI CASH BENEFITS
AND SSI SERVICE BENEFITS.—
(1) CONTINUING
DISABILITY
REVIEWS
FOR
CERTAIN CHILDREN.—Section 1614(a)(3)(G) of such
Act (42 U.S.C. 1382c(a)(3)(G)) is amended—
(A) by inserting ‘‘(i)’’ after ‘‘(G)’’; and
(B) by adding at the end the following:
‘‘(ii)(I) Not less frequently than once every 3 years,
the Commissioner shall redetermine the eligibility for cash
benefits under this title and for services under part C—
‘‘(aa) of each individual who has not attained
18 years of age and is eligible for such cash benefits
by reason of disability; and
‘‘(bb) of each qualifying child (as defined in sec-
tion 1646(3)).
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‘‘(II) Subclause (I) shall not apply to an individual
if the individual has an impairment (or combination of im-
pairments) which is (or are) not expected to improve.’’.
(2) DISABILITY REVIEW REQUIRED FOR SSI RE-
CIPIENTS WHO ARE 18 YEARS OF AGE.—
(A) IN GENERAL.—Section 1614(a)(3)(G)
of such Act (42 U.S.C. 1382c(a)(3)(G)), as
amended by paragraph (1) of this subsection, is
amended by adding at the end the following:
‘‘(iii)(I) The Commissioner shall redetermine the eli-
gibility of a qualified individual for supplemental security
income benefits under this title by reason of disability, by
applying the criteria used in determining eligibility for
such benefits of applicants who have attained 18 years of
age.
‘‘(II) The redetermination required by subclause (I)
with respect to a qualified individual shall be conducted
during the 1-year period that begins on the date the quali-
fied individual attains 18 years of age.
‘‘(III) As used in this clause, the term ‘qualified indi-
vidual’ means an individual who attains 18 years of age
and for whom, for the month preceding the month in
which the individual attained such age, a determination
was in effect that the individual is a qualifying child under
section 1646(3).
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‘‘(IV) A redetermination under subclause (I) of this
clause shall be considered a substitute for a review re-
quired under any other provision of this subparagraph.’’.
(B) REPORT
TO
THE
CONGRESS.—Not
later than October 1, 1998, the Commissioner
of Social Security shall submit to the Commit-
tee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of
the Senate a report on the activities conducted
under section 1614(a)(3)(G)(iii) of the Social
Security Act.
(C) CONFORMING
REPEAL.—Section 207
of the Social Security Independence and Pro-
gram Improvements Act of 1994 (42 U.S.C.
1382 note; 108 Stat. 1516) is hereby repealed.
(3) DISABILITY REVIEW REQUIRED FOR LOW
BIRTH WEIGHT BABIES WHO HAVE RECEIVED SSI
BENEFITS FOR 12 MONTHS.—Section 1614(a)(3)(G)
of such Act (42 U.S.C. 1382c(a)(3)(G)), as amended
by paragraphs (1) and (2) of this subsection, is
amended by adding at the end the following:
‘‘(iv)(I) The Commissioner shall redetermine the eli-
gibility for—
‘‘(aa) cash benefits under this title by reason of
disability of an individual whose low birth weight is
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a contributing factor material to the Commissioner’s
determination that the individual is disabled; and
‘‘(bb) services under part C of an individual
who is eligible for such services by reason of low
birth weight.
‘‘(II) The redetermination required by subclause (I)
shall be conducted once the individual has received such
benefits for 12 months.
‘‘(III) A redetermination under subclause (I) of this
clause shall be considered a substitute for a review re-
quired under any other provision of this subparagraph.’’.
(4) APPLICABILITY
OF
MEDICAID
RULES
RE-
GARDING
COUNTING
OF
CERTAIN
ASSETS
AND
TRUSTS OF CHILDREN.—Section 1613(c) of the So-
cial Security Act (42 U.S.C. 1382b(c)) is amended
to read as follows:
‘‘TREATMENT OF CERTAIN ASSETS AND TRUSTS IN
ELIGIBILITY DETERMINATIONS FOR CHILDREN
‘‘(c) Subsections (c) and (d) of section 1917 shall
apply to determinations of eligibility for benefits under
this title in the case of an individual who has not attained
18 years of age in the same manner as such subsections
apply to determinations of eligibility for medical assistance
under a State plan under title XIX, except that—
‘‘(1) 
the 
amount 
described 
in 
section
1917(c)(1)(E)(i)(II) shall be the amount of cash
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benefits payable under this title to an eligible indi-
vidual who does not have an eligible spouse and who
has no income or resources;
‘‘(2) the look-back date specified in section
1917(c)(1)(B) shall be the date that is 36 months
before the date the individual has applied for bene-
fits under this title; and
‘‘(3) any assets in a trust over which the indi-
vidual has control shall be considered assets of the
individual.’’.
(d) CONFORMING AMENDMENTS.—
(1) Subsections (b)(1), (b)(2), (c)(3), (c)(5),
and (e)(1)(B) of section 1611 of the Social Security
Act (42 U.S.C. 1382 (b)(1), (b)(2), (c)(3), (c)(5),
and (e)(1)(B)) are each amended by inserting
‘‘cash’’ before ‘‘benefit under this title’’.
(2) Section 1611(c)(1) of such Act (42 U.S.C.
1382(c)(1)) is amended—
(A) by striking ‘‘a benefit’’ and inserting
‘‘benefits’’;
(B) by striking ‘‘such benefit’’ and insert-
ing ‘‘the cash benefit under this title’’; and
(C) by striking ‘‘and the amount of such
benefits’’ and inserting ‘‘benefits under this
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title and the amount of any cash benefit under
this title’’.
(3) Section 1611(c)(2) of such Act (42 U.S.C.
1382(c)(2)) is amended—
(A) by striking ‘‘such benefit’’ and insert-
ing ‘‘the cash benefit’’;
(B) by inserting ‘‘cash’’ before ‘‘benefits’’
each place such term appears; and
(C) in subpargraph (B), by inserting
‘‘cash’’ before ‘‘benefit’’.
(4) Section 1611(c)(3) of such Act (42 U.S.C.
1382(c)(3)) is amended by inserting ‘‘cash’’ before
‘‘benefits under this title’’.
(5) Section 1611(e)(1)(G) of such Act (42
U.S.C. 1382(e)(1)(G)) is amended by inserting
‘‘cash’’ before ‘‘benefit of’’.
(6) Section 1614(a)(4) of such Act (42 U.S.C.
1382c(a)(4)) is amended by inserting ‘‘or impair-
ment’’ after ‘‘disability’’ each place such term ap-
pears.
(7) Section 1614(f)(1) of such Act (42 U.S.C.
1382c(f)(1)) is amended by striking ‘‘and the
amount of benefits’’ and inserting ‘‘benefits under
this title and the amount of any cash benefit under
this title’’.
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(8) Section 1614(f)(2)(A) of such Act (42
U.S.C. 1382c(f)(2)(A)) is amended by striking ‘‘and
the amount of benefits’’ and inserting ‘‘benefits
under this title and the amount of any cash benefit’’.
(9) Section 1614(f)(3) of such Act (42 U.S.C.
1382c(f)(3)) is amended by striking ‘‘and the
amount of benefits’’ and inserting ‘‘benefits under
this title and the amount of any cash benefit under
this title’’.
(10) Section 1616(e)(1) of such Act (42 U.S.C.
1382e(e)(1)) is amended by inserting ‘‘cash’’ before
‘‘supplemental’’.
(11) Section 1621(a) of such Act (42 U.S.C.
1382j(a)) is amended by striking ‘‘and the amount
of benefits’’ and inserting ‘‘benefits under this title
and the amount of any cash benefit under this title’’.
(12) Section 1631(a)(4) of such Act (42 U.S.C.
1383(a)(4)) is amended by inserting ‘‘cash’’ before
‘‘benefits’’ the 1st place such term appears in each
of subparagraphs (A) and (B).
(13) Section 1631(a)(7)(A) of such Act (42
U.S.C. 1383(a)(7)(A)) is amended by inserting
‘‘cash’’ before ‘‘benefits based’’.
(14) Section 1631(a)(8)(A) of such Act (42
U.S.C. 1383(a)(8)(A)) is amended by striking ‘‘ben-
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efits based on disability or blindness under this
title’’ and inserting ‘‘benefits under this title (other
than by reason of age)’’.
(15) Section 1631(c) of such Act (42 U.S.C.
1383(c)) is amended—
(A) by striking ‘‘payment’’ each place such
term appears and inserting ‘‘benefits’’; and
(B) by striking ‘‘payments’’ each place
such term appears and inserting ‘‘benefits’’.
(16) Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended—
(A) in paragraph (1)(B), by striking
‘‘amounts of such benefits’’ and inserting
‘‘amounts of cash benefits under this title’’;
(B) in paragraph (2), by inserting ‘‘cash’’
before ‘‘benefits’’ each place such term appears;
(C) by redesignating the 2nd paragraph
(6) and paragraph (7) as paragraphs (7) and
(8), respectively; and
(D) in paragraph (7) (as so redesignated),
by inserting ‘‘cash’’ before ‘‘benefits’’ each place
such term appears.
(17) Section 1631(g)(2) of such Act (42 U.S.C.
1383(g)(2)) is amended by striking ‘‘supplemental
security income’’ and inserting ‘‘cash’’.
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(18) Section 1635(a) of such Act (42 U.S.C.
1383d(a)) is amended by striking ‘‘by reason of dis-
ability or blindness’’.
(e) TEMPORARY ELIGIBILITY FOR CASH BENEFITS
FOR POOR DISABLED CHILDREN RESIDING IN STATES
APPLYING ALTERNATIVE INCOME ELIGIBILITY STAND-
ARDS UNDER MEDICAID.—
(1) IN
GENERAL.—For the period beginning
upon the 1st day of the 1st month that begins 90
or more days after the date of the enactment of this
Act and ending upon the close of fiscal year 1996,
an individual described in paragraph (2) shall be
considered to be eligible for cash benefits under title
XVI of the Social Security Act, by reason of disabil-
ity notwithstanding that the individual does not
meet any of the conditions described in section
1614(a)(3)(A)(ii)(III) of such Act.
(2) REQUIREMENTS.—For purposes of para-
graph (1), an individual described in this paragraph
is an individual who—
(A) has not attained 18 years of age;
(B) meets the conditions described in
subclauses 
(I) 
and 
(II) 
of 
section
1614(a)(3)(A)(ii) of the Social Security Act;
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(C) resides in a State that, pursuant to
section 1902(f) of such Act, restricts eligibility
for medical assistance under title XIX of such
Act with respect to aged, blind, and disabled in-
dividuals; and
(D) is not eligible for medical assistance
under the State plan under such title XIX.
(f) REDUCTION IN CASH BENEFITS PAYABLE TO IN-
STITUTIONALIZED CHILDREN WHOSE MEDICAL COSTS
ARE
COVERED
BY
PRIVATE
INSURANCE.—Section
1611(e)(1)(B) of the Social Security Act (42 U.S.C.
1382(e)(1)(B)) is amended by inserting ‘‘or under any
health insurance policy issued by a private provider of
such insurance’’ after ‘‘title XIX’’.
(g) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by subsections
(a)(1), (c), (d) and (f), and section 1645(b)(2) of the
Social Security Act (as added by the amendment
made by subsection (b) of this section), shall apply
to benefits for months beginning 90 or more days
after the date of the enactment of this Act, without
regard to whether regulations have been issued to
implement such amendments.
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(2) DELAYED APPLICABILITY TO CURRENT SSI
RECIPIENTS
OF
ELIGIBILITY
RESTRICTIONS.—The
amendments made by subsection (a)(1) shall not
apply, during the first 6 months that begin after the
month in which this Act becomes law, to an individ-
ual who is a recipient of cash supplemental security
income benefits under title XVI of the Social Secu-
rity Act for the month in which this Act becomes
law.
(h) REGULATIONS.—Within 3 months after the date
of the enactment of this Act—
(1) the Commissioner of Social Security shall
prescribe such regulations as may be necessary to
implement the amendments made by subsections
(a)(1), (c), (d), and (f) and to implement subsection
(e); and
(2) the Secretary of Health and Human Serv-
ices shall prescribe such regulations as may be nec-
essary to implement section 1645(b)(2) of the Social
Security Act, as added by the amendment made by
subsection (b) of this section.
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SEC. 603. EXAMINATION OF MENTAL LISTINGS USED TO DE-
TERMINE ELIGIBILITY OF CHILDREN FOR SSI
BENEFITS BY REASON OF DISABILITY.
Section 202(e)(2) of the Social Security Independ-
ence and Program Improvements Act of 1994 (42 U.S.C.
1382 note) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (F); and
(2) by redesignating subparagraph (G) as sub-
paragraph (H) and inserting after subparagraph (F)
the following:
‘‘(G) whether the criteria in the mental dis-
orders listings in the Listings of Impairments set
forth in appendix 1 of subpart P of part 404 of title
20, Code of Federal Regulations, are appropriate to
ensure that eligibility of individuals who have not at-
tained 18 years of age for cash benefits under the
supplemental security income program by reason of
disability is limited to those who have serious dis-
abilities and for whom such benefits are necessary to
improve their condition or quality of life; and’’.
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SEC. 604. LIMITATION ON PAYMENTS TO PUERTO RICO,
THE VIRGIN ISLANDS, AND GUAM UNDER
PROGRAMS OF AID TO THE AGED, BLIND, OR
DISABLED.
Section 1108 of the Social Security Act (42 U.S.C.
1308), as amended by section 104(e)(1) of this Act, is
amended by inserting before ‘‘The total’’ the following:
‘‘(a) PROGRAMS OF AID TO THE AGED, BLIND, OR
DISABLED.—The total amount certified by the Secretary
of Health and Human Services under titles I, X, XIV, and
XVI (as in effect without regard to the amendment made
by section 301 of the Social Security Amendments of
1972)—
‘‘(1) for payment to Puerto Rico shall not ex-
ceed $18,053,940;
‘‘(2) for payment to the Virgin Islands shall not
exceed $473,659; and
‘‘(3) for payment to Guam shall not exceed
$900,718.
‘‘(b) MEDICAID PROGRAMS.—’’.
SEC. 605. REPEAL OF MAINTENANCE OF EFFORT REQUIRE-
MENTS APPLICABLE TO OPTIONAL STATE
PROGRAMS FOR SUPPLEMENTATION OF SSI
BENEFITS.
Section 1618 of the Social Security Act (42 U.S.C.
1382g) is hereby repealed.
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SEC. 606. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI-
VIDUALS FOUND TO HAVE FRAUDULENTLY
MISREPRESENTED RESIDENCE IN ORDER TO
OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR
MORE STATES.
Section 1614(a) of the Social Security Act (42 U.S.C.
1382c(a)) is amended by adding at the end the following:
‘‘(5) An individual shall not be considered an eligible
individual for purposes of this title during the 10-year pe-
riod beginning on the date the individual is found by a
State to have made, or is convicted in Federal or State
court of having made, a fraudulent statement or represen-
tation with respect to the place of residence of the individ-
ual in order to receive benefits simultaneously from 2 or
more States under programs that are funded under part
A of title IV, title XIX, or the Food Stamp Act of 1977,
or benefits in 2 or more States under the supplemental
security income program under title XVI.’’.
SEC. 607. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS
AND PROBATION AND PAROLE VIOLATORS.
(a) IN GENERAL.—Section 1611(c) of the Social Se-
curity Act (42 U.S.C. 1382(e)), as amended by section
601(b)(1) of this Act, is amended by inserting after para-
graph (2) the following:
‘‘(3) A person shall not be an eligible individual
or eligible spouse for purposes of this title with re-
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spect to any month if, throughout the month, the
person is—
‘‘(A) fleeing to avoid prosecution, or cus-
tody or confinement after conviction, under the
laws of the place from which the person flees,
for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place
from which the person flees, or which, in the
case of the State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(B) violating a condition of probation or
parole imposed under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION WITH LAW EN-
FORCEMENT AGENCIES.—Section 1631(e) of such Act (42
U.S.C. 1383(e)) is amended by inserting after paragraph
(3) the following:
‘‘(4) Notwithstanding any other provision of law, the
Commissioner shall furnish any Federal, State, or local
law enforcement officer, upon the request of the officer,
with the current address of any recipient of benefits under
this title, if the officer furnishes the agency with the name
of the recipient and notifies the agency that—
‘‘(A) the recipient—
‘‘(i) is fleeing to avoid prosecution, or cus-
tody or confinement after conviction, under the
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laws of the place from which the person flees,
for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place
from which the person flees, or which, in the
case of the State of New Jersey, is a high mis-
demeanor under the laws of such State;
‘‘(ii) is violating a condition of probation or
parole imposed under Federal or State law; or
‘‘(iii) has information that is necessary for
the officer to conduct the officer’s official du-
ties;
‘‘(B) the location or apprehension of the recipi-
ent is within the official duties of the officer; and
‘‘(C) the request is made in the proper exercise
of such duties.’’.
TITLE VII—CHILD SUPPORT
SEC. 700. REFERENCES.
Except as otherwise specifically provided, wherever in
this title an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
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Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 701. STATE OBLIGATION TO PROVIDE CHILD SUPPORT
ENFORCEMENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the estab-
lishment of paternity or the establishment,
modification, or enforcement of child support
obligations, as appropriate, under the plan with
respect to—
‘‘(i) each child for whom cash assist-
ance is provided under the State program
funded under part A of this title, benefits
or services are provided under the State
program funded under part B of this title,
or medical assistance is provided under the
State plan approved under title XIX, un-
less the State agency administering the
plan determines (in accordance with para-
graph (28)) that it is against the best in-
terests of the child to do so; and
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‘‘(ii) any other child, if an individual
applies for such services with respect to
the child; and
‘‘(B) enforce any support obligation estab-
lished with respect to—
‘‘(i) a child with respect to whom the
State provides services under the plan; or
‘‘(ii) the custodial parent of such a
child.’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and insert-
ing ‘‘provide that—’’;
(B) by striking subparagraph (A) and in-
serting the following:
‘‘(A) services under the plan shall be made
available to nonresidents on the same terms as
to residents;’’;
(C) in subparagraph (B), by inserting ‘‘on
individuals not receiving assistance under any
State program funded under part A’’ after
‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C),
(D), and (E)—
(i) by indenting the subparagraph in
the same manner as, and aligning the left
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margin of the subparagraph with the left
margin of, the matter inserted by subpara-
graph (B) of this paragraph; and
(ii) by striking the final comma and
inserting a semicolon; and
(E) in subparagraph (E), by indenting
each of clauses (i) and (ii) 2 additional ems.
(b) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is
amended by 
striking 
‘‘454(6)’’ 
and 
inserting
‘‘454(4)’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each
place it appears and inserting ‘‘454(4)(A)(ii)’’.
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
overdue support which a State has agreed to collect
under section 454(6)’’ and inserting ‘‘in any other
case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is
amended by striking ‘‘paragraph (4) or (6) of sec-
tion 454’’ and inserting ‘‘section 454(4)’’.
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SEC. 702. DISTRIBUTION OF CHILD SUPPORT COLLEC-
TIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is
amended to read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—An amount collected on behalf
of a family as support by a State pursuant to a plan ap-
proved under this part shall be distributed as follows:
‘‘(1) FAMILIES RECEIVING CASH ASSISTANCE.—
In the case of a family receiving cash assistance
from the State, the State shall—
‘‘(A) retain, or distribute to the family, the
State share of the amount so collected; and
‘‘(B) pay to the Federal Government the
Federal share of the amount so collected.
‘‘(2) FAMILIES
THAT
FORMERLY
RECEIVED
CASH ASSISTANCE.—In the case of a family that for-
merly received cash assistance from the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To
the extent that the amount so collected does not
exceed the amount required to be paid to the
family for the month in which collected, the
State shall distribute the amount so collected to
the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the
extent that the amount so collected exceeds the
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amount required to be paid to the family for
the month in which collected, the State shall
distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION
TO
THE
FAMILY
TO SATISFY ARREARAGES THAT ACCRUED
BEFORE OR AFTER THE FAMILY RECEIVED
CASH
ASSISTANCE.—The State shall dis-
tribute the amount so collected to the fam-
ily to the extent necessary to satisfy any
support arrears with respect to the family
that accrued before or after the family re-
ceived cash assistance from the State.
‘‘(ii) REIMBURSEMENT
OF
GOVERN-
MENTS
FOR
ASSISTANCE
PROVIDED
TO
THE FAMILY.—To the extent that clause
(i) does not apply to the amount, the State
shall retain the State share of the amount
so collected, and pay to the Federal Gov-
ernment the Federal share of the amount
so collected, to the extent necessary to re-
imburse amounts paid to the family as
cash assistance from the State.
‘‘(iii) DISTRIBUTION OF THE REMAIN-
DER TO THE FAMILY.—To the extent that
neither clause (i) nor clause (ii) applies to
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the amount so collected, the State shall
distribute the amount to the family.
‘‘(3) FAMILIES THAT NEVER RECEIVED CASH
ASSISTANCE.—In the case of any other family, the
State shall distribute the amount so collected to the
family.
‘‘(b) DEFINITIONS.—As used in subsection (a):
‘‘(1) CASH ASSISTANCE.—The term ‘cash as-
sistance from the State’ means—
‘‘(A) cash assistance under the State pro-
gram funded under part A or under the State
plan approved under part A of this title (as in
effect before October 1, 1995); or
‘‘(B) cash benefits under the State pro-
gram funded under part B or under the State
plan approved under part B or E of this title
(as in effect before October 1, 1995).
‘‘(2) FEDERAL
SHARE.—The term ‘Federal
share’ means, with respect to an amount collected by
the State to satisfy a support obligation owed to a
family for a time period—
‘‘(A) the greatest Federal medical assist-
ance percentage in effect for the State for fiscal
year 1995 or any succeeding fiscal year; or
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‘‘(B) if support is not owed to the family
for any month for which the family received aid
to families with dependent children under the
State plan approved under part A of this title
(as in effect before October 1, 1995), the Fed-
eral reimbursement percentage for the fiscal
year in which the time period occurs.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT-
AGE.—The term ‘Federal medical assistance per-
centage’ means—
‘‘(A) the Federal medical assistance per-
centage (as defined in section 1118), in the case
of Puerto Rico, the Virgin Islands, Guam, and
American Samoa; or
‘‘(B) the Federal medical assistance per-
centage (as defined in section 1905(b)) in the
case of any other State.
‘‘(4) FEDERAL
REIMBURSEMENT
PERCENT-
AGE.—The term ‘Federal reimbursement percentage’
means, with respect to a fiscal year—
‘‘(A) the total amount paid to the State
under section 403 for the fiscal year; divided by
‘‘(B) the total amount expended by the
State to carry out the State program under
part A during the fiscal year.
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‘‘(5) STATE
SHARE.—The term ‘State share’
means 100 percent minus the Federal share.
‘‘(c) CONTINUATION
OF SERVICES
FOR FAMILIES
CEASING TO RECEIVE ASSISTANCE UNDER THE STATE
PROGRAM FUNDED UNDER PART A.—When a family with
respect to which services are provided under a State plan
approved under this part ceases to receive assistance
under the State program funded under part A, the State
shall provide appropriate notice to the family and continue
to provide such services, subject to the same conditions
and on the same basis as in the case of individuals to
whom services are furnished under section 454, except
that an application or other request to continue services
shall not be required of such a family and section
454(6)(B) shall not apply to the family.’’.
(b) EFFECTIVE DATE.—
(1) GENERAL
RULE.—Except as provided in
paragraph (2), the amendment made by subsection
(a) shall become effective on October 1, 1999.
(2) EARLIER EFFECTIVE DATE FOR RULES RE-
LATING TO DISTRIBUTION OF SUPPORT COLLECTED
FOR FAMILIES RECEIVING CASH ASSISTANCE.—Sec-
tion 457(a)(1) of the Social Security Act, as added
by the amendment made by subsection (a), shall be-
come effective on October 1, 1995.
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SEC. 703. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing:
‘‘(25) will have in effect safeguards, applicable
to all confidential information handled by the State
agency, that are designed to protect the privacy
rights of the parties, including—
‘‘(A) safeguards against unauthorized use
or disclosure of information relating to proceed-
ings or actions to establish paternity, or to es-
tablish or enforce support;
‘‘(B) prohibitions against the release of in-
formation on the whereabouts of one party to
another party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions against the release of in-
formation on the whereabouts of one party to
another party if the State has reason to believe
that the release of the information may result
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in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
Subtitle B—Locate and Case
Tracking
SEC. 711. STATE CASE REGISTRY.
Section 454A, as added by section 745(a)(2) of this
Act, is amended by adding at the end the following:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system re-
quired by this section shall include a registry (which
shall be known as the ‘State case registry’) that con-
tains records with respect to—
‘‘(A) each case in which services are being
provided by the State agency under the State
plan approved under this part; and
‘‘(B) each support order established or
modified in the State on or after October 1,
1998.
‘‘(2) LINKING
OF
LOCAL
REGISTRIES.—The
State case registry may be established by linking
local case registries of support orders through an
automated information network, subject to this sec-
tion.
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‘‘(3) USE
OF
STANDARDIZED
DATA
ELE-
MENTS.—Such records shall use standardized data
elements for both parents (such as names, social se-
curity numbers and other uniform identification
numbers, dates of birth, and case identification
numbers), and contain such other information (such
as on case status) as the Secretary may require.
‘‘(4) PAYMENT RECORDS.—Each case record in
the State case registry with respect to which services
are being provided under the State plan approved
under this part and with respect to which a support
order has been established shall include a record
of—
‘‘(A) the amount of monthly (or other peri-
odic) support owed under the order, and other
amounts (including arrears, interest or late
payment penalties, and fees) due or overdue
under the order;
‘‘(B) any amount described in subpara-
graph (A) that has been collected;
‘‘(C) the distribution of such collected
amounts;
‘‘(D) the birth date of any child for whom
the order requires the provision of support; and
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‘‘(E) the amount of any lien imposed with
respect to the order pursuant to section
466(a)(4).
‘‘(5) UPDATING AND MONITORING.—The State
agency operating the automated system required by
this section shall promptly establish and maintain,
and regularly monitor, case records in the State case
registry with respect to which services are being pro-
vided under the State plan approved under this part,
on the basis of—
‘‘(A) information on administrative actions
and administrative and judicial proceedings and
orders relating to paternity and support;
‘‘(B) information obtained from compari-
son with Federal, State, or local sources of in-
formation;
‘‘(C) information on support collections
and distributions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DIS-
CLOSURES OF INFORMATION.—The State shall use the
automated system required by this section to extract infor-
mation from (at such times, and in such standardized for-
mat or formats, as may be required by the Secretary), to
share and compare information with, and to receive infor-
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mation from, other data bases and information compari-
son services, in order to obtain (or provide) information
necessary to enable the State agency (or the Secretary or
other State or Federal agencies) to carry out this part,
subject to section 6103 of the Internal Revenue Code of
1986. Such information comparison activities shall include
the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP-
PORT
ORDERS.—Furnishing to the Federal Case
Registry of Child Support Orders established under
section 453(h) (and update as necessary, with infor-
mation including notice of expiration of orders) the
minimum amount of information on child support
cases recorded in the State case registry that is nec-
essary to operate the registry (as specified by the
Secretary in regulations).
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchanging information with the Federal Parent
Locator Service for the purposes specified in section
453.
‘‘(3) TEMPORARY
FAMILY
ASSISTANCE
AND
MEDICAID AGENCIES.—Exchanging information with
State agencies (of the State and of other States) ad-
ministering programs funded under part A, pro-
grams operated under State plans under title XIX,
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and other programs designated by the Secretary, as
necessary to perform State agency responsibilities
under this part and under such programs.
‘‘(4) INTRA- AND
INTERSTATE
INFORMATION
COMPARISONS.—Exchanging information with other
agencies of the State, agencies of other States, and
interstate information networks, as necessary and
appropriate to carry out (or assist other States to
carry out) the purposes of this part.’’.
SEC. 712. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 703(a) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing:
‘‘(26) provide that, on and after October 1,
1998, the State agency will—
‘‘(A) operate a State disbursement unit in
accordance with section 454B; and
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‘‘(B) have sufficient State staff (consisting
of State employees) and (at State option) con-
tractors reporting directly to the State agency
to—
‘‘(i) monitor and enforce support col-
lections through the unit (including carry-
ing out the automated data processing re-
sponsibilities described in section 454A(g));
and
‘‘(ii) take the actions described in sec-
tion 466(c)(1) in appropriate cases.’’.
(b) ESTABLISHMENT
OF
STATE
DISBURSEMENT
UNIT.—Part D of title IV (42 U.S.C. 651–669), as
amended by section 745(a)(2) of this Act, is amended by
inserting after section 454A the following:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP-
PORT PAYMENTS.
‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN
GENERAL.—In order for a State to
meet the requirements of this section, the State
agency must establish and operate a unit (which
shall be known as the ‘State disbursement unit’) for
the collection and disbursement of payments under
support orders in all cases being enforced by the
State pursuant to section 454(4).
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‘‘(2) OPERATION.—The State disbursement
unit shall be operated—
‘‘(A) directly by the State agency (or 2 or
more State agencies under a regional coopera-
tive agreement), or (to the extent appropriate)
by a contractor responsible directly to the State
agency; and
‘‘(B) in coordination with the automated
system established by the State pursuant to
section 454A.
‘‘(3) 
LINKING
OF
LOCAL
DISBURSEMENT
UNITS.—The State disbursement unit may be estab-
lished by linking local disbursement units through
an automated information network, subject to this
section. The Secretary must agree that the system
will not cost more nor take more time to establish
than a centralized system. In addition, employers
shall be given 1 location to which income withhold-
ing is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disburse-
ment unit shall use automated procedures, electronic proc-
esses, and computer-driven technology to the maximum
extent feasible, efficient, and economical, for the collection
and disbursement of support payments, including proce-
dures—
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‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agen-
cy, and the agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the cus-
todial parent’s share of any payment; and
‘‘(4) to furnish to any parent, upon request,
timely information on the current status of support
payments under an order requiring payments to be
made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—The State dis-
bursement unit shall distribute all amounts payable 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.
‘‘(d) BUSINESS DAY DEFINED.—As used in this sec-
tion, 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 745(a)(2) of this Act and as amended
by section 711 of this Act, is amended by adding at the
end the following:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
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‘‘(1) IN
GENERAL.—The State shall use the
automated system required by this section, to the
maximum extent feasible, to assist and facilitate the
collection and disbursement of support 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 withhold-
ing of wages (and other income)—
‘‘(i) within 2 business days after re-
ceipt (from a court, another State, an em-
ployer, 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 Secretary;
‘‘(B) ongoing monitoring to promptly iden-
tify failures to make timely payment of support;
and
‘‘(C) automatic use of enforcement proce-
dures (including procedures authorized pursu-
ant to section 466(c)) where payments are not
timely made.
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‘‘(2) BUSINESS
DAY
DEFINED.—As used in
paragraph (1), the term ‘business day’ means a day
on which State offices are open for regular busi-
ness.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1998.
SEC. 713. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 703(a) and 712(a)
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the follow-
ing:
‘‘(27) 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:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
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‘‘(1) IN GENERAL.—Not later than October 1,
1997, each State shall establish an automated direc-
tory (to be known as the ‘State Directory of New
Hires’) which shall contain information supplied in
accordance with subsection (b) by employers and
labor organizations on each newly hired employee.
‘‘(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 in-
telligence or counterintelligence functions,
if the head of such agency has determined
that reporting pursuant to paragraph (1)
with respect to the employee could endan-
ger the safety of the employee or com-
promise an ongoing investigation or intel-
ligence mission.
‘‘(B) GOVERNMENTAL
EMPLOYERS.—The
term ‘employer’ includes any governmental en-
tity.
‘‘(C) LABOR
ORGANIZATION.—The term
‘labor organization’ shall have the meaning
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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 organiza-
tion and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), 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 se-
curity number of the employee, and the name
of, and identifying number assigned under sec-
tion 6109 of the Internal Revenue Code of 1986
to, the employer.
‘‘(B) MULTISTATE EMPLOYERS.—An em-
ployer who has employees who are employed in
2 or more States may comply with subpara-
graph (A) by transmitting the report described
in subparagraph (A) magnetically or electroni-
cally to the State in which the greatest number
of employees of the employer are employed.
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‘‘(2) TIMING OF REPORT.—The report required
by paragraph (1) with respect to an employee shall
be made not later than the later of—
‘‘(A) 15 days after the date the employer
hires the employee; or
‘‘(B) the date the employee first receives
wages or other compensation from the em-
ployer.
‘‘(c) REPORTING FORMAT AND METHOD.—Each re-
port required by subsection (b) shall be made on a W–
4 form or the equivalent, and may be transmitted by first
class mail, magnetically, or electronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING
EMPLOYERS.—
‘‘(1) IN GENERAL.—An employer that fails to
comply with subsection (b) with respect to an em-
ployee shall be subject to a civil money penalty of—
‘‘(A) $25; or
‘‘(B) $500 if, under State law, the failure
is the result of a conspiracy between the em-
ployer and the employee to not supply the re-
quired report or to supply a false or incomplete
report.
‘‘(2) APPLICABILITY OF SECTION 1128.—Section
1128 (other than subsections (a) and (b) of such
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section) shall apply to a civil money penalty under
paragraph (1) of this subsection in the same manner
as such section applies to a civil money penalty or
proceeding under section 1128A(a).
‘‘(e) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1997, an agency designated by the State shall, di-
rectly or by contract, conduct automated compari-
sons of the social security numbers reported by em-
ployers pursuant to subsection (b) and the social se-
curity 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 identify-
ing number assigned under section 6109 of the In-
ternal Revenue Code of 1986 to, the employer.
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‘‘(f) TRANSMISSION OF INFORMATION.—
‘‘(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 employee’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 of the employee, unless the
employee’s wages are not subject to withholding pur-
suant to section 466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC-
TORY OF NEW HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 4
business days after the State Directory of New
Hires receives information from employers pur-
suant to this section, the State Directory of
New Hires shall furnish the information to the
National Directory of New Hires.
‘‘(B) WAGE
AND
UNEMPLOYMENT
COM-
PENSATION
INFORMATION.—The State Direc-
tory of New Hires shall, on a quarterly basis,
furnish to the National Directory of New Hires
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extracts of the reports required under section
303(a)(6) to be made to the Secretary of Labor
concerning the wages and unemployment com-
pensation paid to individuals, 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.
‘‘(g) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION
OF
CHILD
SUPPORT
OBLI-
GORS.—The agency administering the State plan ap-
proved under this part shall use information received
pursuant to subsection (e)(2) to locate individuals
for purposes of establishing paternity and establish-
ing, modifying, and enforcing child support obliga-
tions.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER-
TAIN
PROGRAMS.—A State agency responsible for
administering a program specified in section 1137(b)
shall have access to information reported by employ-
ers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
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‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU-
RITY AND WORKERS COMPENSATION.—State agen-
cies operating employment security and workers’
compensation programs shall have access to informa-
tion reported by employers pursuant to subsection
(b) for the purposes of administering such pro-
grams.’’.
SEC. 714. AMENDMENTS CONCERNING INCOME WITHHOLD-
ING.
(a) MANDATORY INCOME WITHHOLDING.—
(1) 
IN
GENERAL.—Section 
466(a)(1) 
(42
U.S.C. 666(a)(1)) is amended to read as follows:
‘‘(1) INCOME WITHHOLDING.—
‘‘(A) UNDER ORDERS ENFORCED UNDER
THE
STATE
PLAN.—Procedures described in
subsection (b) for the withholding from income
of amounts payable as support in cases subject
to enforcement under the State plan.
‘‘(B) UNDER CERTAIN ORDERS PREDATING
CHANGE IN REQUIREMENT.—Procedures under
which the wages of a person with a support ob-
ligation imposed by a support order issued (or
modified) in the State before October 1, 1996,
if not otherwise subject to withholding under
subsection (b), shall become subject to with-
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holding as provided in subsection (b) if arrear-
ages occur, without the need for a judicial or
administrative hearing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(a)(8)(B)(iii) (42 U.S.C.
666(a)(8)(B)(iii)) is amended—
(i) by striking ‘‘(5),’’; and
(ii) by inserting ‘‘, and, at the option
of the State, the requirements of sub-
section (b)(5)’’ before the period.
(B) Section 466(b) (42 U.S.C. 666(b)) is
amended in the matter preceding paragraph
(1), by striking ‘‘subsection (a)(1)’’ and insert-
ing ‘‘subsection (a)(1)(A)’’.
(C) 
Section 
466(b)(5) 
(42 
U.S.C.
666(b)(5)) is amended by striking all that fol-
lows ‘‘administered by’’ and inserting ‘‘the
State through the State disbursement unit es-
tablished pursuant to section 454B, in accord-
ance with the requirements of section 454B.’’.
(D) Section 466(b)(6)(A) (42 U.S.C.
666(b)(6)(A)) is amended—
(i) in clause (i), by striking ‘‘to the
appropriate agency’’ and all that follows
and inserting ‘‘to the State disbursement
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unit within 2 business days after the date
the amount would (but for this subsection)
have been paid or credited to the employee,
for distribution in accordance with this
part.’’;
(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 follow-
ing:
‘‘(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 the
following:
‘‘any employer who—
‘‘(i) discharges from employment, refuses
to employ, or takes disciplinary action against
any absent parent subject to wage withholding
required by this subsection because of the exist-
ence of such withholding and the obligations or
additional obligations which is imposes upon the
employer; or
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‘‘(ii) fails to withhold support from wages,
or to pay such amounts to the State disburse-
ment unit in accordance with this subsection.’’.
(F) Section 466(b) (42 U.S.C. 666(b)) is
amended by adding at the end the following:
‘‘(11) Procedures under which the agency ad-
ministering the State plan approved under this part
may execute a withholding order through electronic
means and without advance notice to the obligor.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
SEC. 715. LOCATOR INFORMATION FROM INTERSTATE NET-
WORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by
adding at the end the following:
‘‘(12) LOCATOR
INFORMATION
FROM
INTER-
STATE 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 relat-
ing to motor vehicles or law enforcement.’’.
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SEC. 716. EXPANSION OF THE FEDERAL PARENT LOCATOR
SERVICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVID-
UALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is
amended—
(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 ob-
ligations—
‘‘(1) information on, or facilitating the discov-
ery of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support;
‘‘(B) against whom such an obligation is
sought; or
‘‘(C) to whom such an obligation is owed,
including the individual’s social security number (or
numbers), most recent address, and the name, ad-
dress, and employer identification number of the in-
dividual’s employer; and
‘‘(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
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(2) in subsection (b), in the matter preceding
paragraph (1), by striking ‘‘social security’’ and all
that follows through ‘‘absent parent’’ and inserting
‘‘information described in subsection (a)’’.
(b) 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 rea-
sonable payment for the information exchange (which
amount shall not include payment for the costs of obtain-
ing, compiling, or maintaining the information)’’ before
the period.
(c) REIMBURSEMENT
FOR
REPORTS
BY
STATE
AGENCIES.—Section 453 (42 U.S.C. 653) is amended by
adding at the end the following:
‘‘(g) The Secretary may reimburse Federal and State
agencies for the costs incurred by such entities in furnish-
ing information requested by the Secretary under this sec-
tion in an amount which the Secretary determines to be
reasonable payment for the information exchange (which
amount shall not include payment for the costs of obtain-
ing, compiling, or maintaining the information).’’.
(d) TECHNICAL 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),
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653(b), 663(a), 663(e), and 663(f)) are each amend-
ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each
place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PAR-
ENT’’.
(e) NEW COMPONENTS.—Section 453 (42 U.S.C.
653), as amended by subsection (c) of this section, is
amended by adding at the end the following:
‘‘(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 Sec-
retary 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 Orders’), which shall contain ab-
stracts of support orders and other information de-
scribed in paragraph (2) with respect to each case
in each State case registry maintained pursuant to
section 454A(e), as furnished (and regularly up-
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dated), pursuant to section 454A(f), by State agen-
cies 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 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 respect to or on behalf of whom support ob-
ligations 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, 1996,
establish and maintain in the Federal Parent Loca-
tor Service an automated directory to be known as
the National Directory of New Hires, which shall
contain the information supplied pursuant to section
453A(f)(2).
‘‘(2) 
ADMINISTRATION
OF
FEDERAL
TAX
LAWS.—The Secretary of the Treasury shall have
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access to the information in the Federal Directory of
New Hires for purposes of administering section 32
of the Internal Revenue Code of 1986, or the ad-
vance payment of the earned income tax credit
under section 3507 of such Code, and verifying a
claim with respect to employment in a tax return.
‘‘(j) INFORMATION COMPARISONS AND OTHER DIS-
CLOSURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY AD-
MINISTRATION.—
‘‘(A) The Secretary shall transmit informa-
tion on individuals and employers maintained
under this section to the Social Security Admin-
istration to the extent necessary for verification
in accordance with subparagraph (B).
‘‘(B) The Social Security Administration
shall verify the accuracy of, correct, or supply
to the extent possible, and report to the Sec-
retary, the following information supplied by
the Secretary pursuant to subparagraph (A):
‘‘(i) The name, social security num-
ber, and birth date of each such individual.
‘‘(ii) The employer identification num-
ber of each such employer.
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‘‘(2) INFORMATION
COMPARISONS.—For the
purpose of locating individuals in a paternity estab-
lishment 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 order abstracts in the Federal Case
Registry of Child Support Orders not less often
than every 2 business days; and
‘‘(B) within 2 such days after such a com-
parison reveals a match with respect to an indi-
vidual, 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 effective in assisting States to carry out their re-
sponsibilities under programs operated under this
part and programs funded under part A, the Sec-
retary shall—
‘‘(A) compare the information in each com-
ponent of the Federal Parent Locator Service
maintained under this section against the infor-
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mation in each other such component (other
than the comparison required by paragraph
(2)), and report instances in which such a com-
parison reveals a match with respect to an indi-
vidual to State agencies operating such pro-
grams; and
‘‘(B) disclose information in such registries
to such State agencies.
‘‘(4) PROVISION OF NEW HIRE INFORMATION
TO THE SOCIAL SECURITY ADMINISTRATION.—The
National Directory of New Hires shall provide the
Commissioner of Social Security with all information
in the National Directory, which shall be used to de-
termine the accuracy of payments under the supple-
mental security income program under title XVI and
in connection with benefits under title II.
‘‘(5) RESEARCH.—The Secretary may provide
access to information reported by employers pursu-
ant to section 453A(b) for research purposes found
by the Secretary to be likely to contribute to achiev-
ing the purposes of part A or this part, but without
personal identifiers.
‘‘(k) FEES.—
‘‘(1) FOR SSA VERIFICATION.—The Secretary
shall reimburse the Commissioner of Social Security,
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at a rate negotiated between the Secretary and the
Commissioner, for the costs incurred by the Com-
missioner 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 sub-
section (j)(3), at rates which the Secretary deter-
mines 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 agen-
cy that receives information from the Secretary pur-
suant to this section shall reimburse the Secretary
for costs incurred by the Secretary in furnishing the
information, at rates which the Secretary determines
to be reasonable (which rates shall include payment
for the costs of obtaining, verifying, maintaining,
and comparing the information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In-
formation in the Federal Parent Locator Service, and in-
formation resulting from comparisons using such informa-
tion, shall not be used or disclosed except as expressly pro-
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vided in this section, subject to section 6103 of the Inter-
nal Revenue Code of 1986.
‘‘(m) INFORMATION INTEGRITY
AND SECURITY.—
The Secretary shall establish and implement safeguards
with respect to the entities established under this section
designed to—
‘‘(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service;
and
‘‘(2) restrict access to confidential information
in the Federal Parent Locator Service to authorized
persons, and restrict use of such information to au-
thorized purposes.’’.
(f) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY
ACT.—Section 
454(8)(B) 
(42 
U.S.C.
654(8)(B)) is amended to read as follows:
‘‘(B) the Federal Parent Locator Service
established under section 453;’’.
(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-
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pears and inserting ‘‘Secretary of Health and
Human Services’’;
(B) in subparagraph (B), by striking
‘‘such information’’ and all that follows and in-
serting ‘‘information furnished under subpara-
graph (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 compensa-
tion information contained in the records of
such agency shall be furnished to the Secretary
of Health and Human Services (in accordance
with regulations promulgated by such Sec-
retary) as necessary for the purposes of the Na-
tional Directory of New Hires established under
section 453(i) of the Social Security Act, and’’.
(3) TO STATE GRANT PROGRAM UNDER TITLE
III OF THE SOCIAL SECURITY ACT.—Section 303(a)
(42 U.S.C. 503(a)) is amended—
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(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking ‘‘and’’ at the end of para-
graph (9);
(C) by striking the period at the end of
paragraph (10) and inserting ‘‘; and’’; and
(D) by adding after paragraph (10) the
following:
‘‘(11) The making of quarterly electronic re-
ports, at such dates, in such format, and containing
such information, as required by the Secretary of
Health and Human Services under section 453(i)(3),
and compliance with such provisions as such Sec-
retary may find necessary to ensure the correctness
and verification of such reports.’’.
SEC. 717. COLLECTION AND USE OF SOCIAL SECURITY
NUMBERS FOR USE IN CHILD SUPPORT EN-
FORCEMENT.
(a) STATE LAW REQUIREMENT.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 715 of this Act,
is amended by adding at the end the following:
‘‘(13) RECORDING OF SOCIAL SECURITY NUM-
BERS
IN
CERTAIN
FAMILY
MATTERS.—Procedures
requiring that the social security number of—
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‘‘(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.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by
section 321(a)(9) of the Social Security Independence and
Program Improvements Act of 1994, is amended—
(1) in clause (i), by striking ‘‘may require’’ and
inserting ‘‘shall require’’;
(2) in clause (ii), by inserting after the 1st sen-
tence the following: ‘‘In the administration of any
law involving the issuance of a marriage certificate
or license, each State shall require each party named
in the certificate or license to furnish to the State
(or political subdivision thereof) or any State agency
having administrative responsibility for the law in-
volved, the social security number of the party.’’;
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(3) in clause (vi), by striking ‘‘may’’ and insert-
ing ‘‘shall’’; and
(4) by adding at the end the following:
‘‘(x) An agency of a State (or a politi-
cal subdivision thereof) charged with the
administration of any law concerning the
issuance or renewal of a license, certificate,
permit, or other authorization to engage in
a profession, an occupation, or a commer-
cial activity shall require all applicants for
issuance or renewal of the license, certifi-
cate, permit, or other authorization to pro-
vide the applicant’s social security number
to the agency for the purpose of admin-
istering such laws, and for the purpose of
responding to requests for information
from an agency operating pursuant to part
D of title IV.
‘‘(xi) All divorce decrees, support or-
ders, and paternity determinations issued,
and all paternity acknowledgments made,
in each State shall include the social secu-
rity number of each party to the decree,
order, determination, or acknowledgement
in the records relating to the matter.’’.
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Subtitle C—Streamlining and
Uniformity of Procedures
SEC. 721. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding
at the end the following:
‘‘(f) UNIFORM
INTERSTATE
FAMILY
SUPPORT
ACT.—
‘‘(1) ENACTMENT AND USE.—In order to sat-
isfy section 454(20)(A) on or after January 1, 1997,
each State must have in effect the Uniform Inter-
state Family Support Act, as approved by the Na-
tional Conference of Commissioners on Uniform
State Laws in August 1992 (with the modifications
and additions specified in this subsection), and the
procedures required to implement such Act.
‘‘(2) EXPANDED APPLICATION.—The State law
enacted pursuant to paragraph (1) shall be applied
to any case involving an order which is established
or modified in a State and which is sought to be
modified or enforced in another State.
‘‘(3) JURISDICTION TO MODIFY ORDERS.—The
State law enacted pursuant to paragraph (1) of this
subsection shall contain the following provision in
lieu of section 611(a)(1) of the Uniform Interstate
Family Support Act:
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‘‘ ‘(1) the following requirements are met:
‘‘ ‘(i) the child, the individual obligee, and
the obligor—
‘‘ ‘(I) do not reside in the issuing
State; and
‘‘ ‘(II) either reside in this State or
are subject to the jurisdiction of this State
pursuant to section 201; and
‘‘ ‘(ii) (in any case where another State is
exercising or seeks to exercise jurisdiction to
modify the order) the conditions of section 204
are met to the same extent as required for pro-
ceedings to establish orders; or’.
‘‘(4) SERVICE OF PROCESS.—The State law en-
acted pursuant to paragraph (1) shall provide that,
in any proceeding subject to the law, process may be
served (and proved) upon persons in the State by
any means acceptable in any State which is the initi-
ating or responding State in the proceeding.’’.
SEC. 722. 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)’’;
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(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 par-
ent for at least six consecutive months immediately
preceding the time of filing of a petition or com-
parable pleading for support and, if a child is less
than six months old, the State in which the child
lived from birth with any of them. A period of tem-
porary absence of any of them is counted as part of
the six-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 in-
serting ‘‘subsections (e) and (f)’’;
(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’’;
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only one of the courts would have continuing, exclu-
sive jurisdiction under this section, the order of that
court must be recognized.
‘‘(3) If two or more courts have issued child
support orders for the same obligor and child, and
only one of the courts would have continuing, exclu-
sive 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 is-
sued in the current home State of the child, the
order most recently issued must be recognized.
‘‘(4) If two or more courts have issued child
support orders for the same obligor and child, and
none of the courts would have continuing, exclusive
jurisdiction under this section, a court may issue a
child support order, which must be 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
(B) by striking ‘‘subsection (e)’’ and in-
serting ‘‘subsections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
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(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:
‘‘(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. 723. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE
CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 715 and 717(a) of this Act, is amended by adding
at the end the following:
‘‘(14) 
ADMINISTRATIVE
ENFORCEMENT
IN
INTERSTATE CASES.—Procedures under which—
‘‘(A)(i) the State shall respond within 5
business days to a request made by another
State to enforce a support order; and
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‘‘(ii) the term ‘business day’ means a day
on which State offices are open for regular
business;
‘‘(B) the State may, by electronic or other
means, 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
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
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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;
‘‘(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. 724. 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 parargraph
(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:
‘‘(11) not later than June 30, 1996, 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.’’.
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(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:
‘‘(E) no later than October 1, 1996, in
using the forms promulgated pursuant to sec-
tion 452(a)(11) for income withholding, imposi-
tion of liens, and issuance of administrative
subpoenas in interstate child support cases;’’.
SEC. 725. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666), as amended by section 714 of this Act, is
amended—
(1) in subsection (a)(2), by strking the 1st sen-
tence and inserting the following: ‘‘Expedited admin-
istrative and judicial procedures (including the pro-
cedures specified in subsection (c)) for establishing
paternity and for establishing, modifying, and en-
forcing support obligations.’’; and
(2) by inserting after subsection (b) the follow-
ing:
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‘‘(c) EXPEDITED
PROCEDURES.—The procedures
specified 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 es-
tablishment or enforcement of support orders, with-
out the necessity of obtaining an order from any
other judicial or administrative tribunal (but subject
to due process safeguards, including (as appropriate)
requirements for notice, opportunity to contest the
action, and opportunity for an appeal on the record
to an independent administrative or judicial tribu-
nal), and to recognize and enforce the authority of
State agencies of other States) to take the following
actions:
‘‘(A) GENETIC TESTING.—To order genetic
testing for the purpose of paternity establish-
ment as provided in section 466(a)(5).
‘‘(B) DEFAULT ORDERS.—To enter a de-
fault order, upon a showing of service of proc-
ess and any additional showing required by
State law—
‘‘(i) establishing paternity, in the case
of a putative father who refuses to submit
to genetic testing; and
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‘‘(ii) establishing or modifying a sup-
port obligation, in the case of a parent (or
other obligor or obligee) who fails to re-
spond to notice to appear at a proceeding
for such purpose.
‘‘(C) SUBPOENAS.—To subpoena any fi-
nancial or other information needed to estab-
lish, modify, or enforce a support order, and to
impose penalties for failure to respond to such
a subpoena.
‘‘(D) ACCESS TO PERSONAL AND FINAN-
CIAL INFORMATION.—To obtain access, subject
to safeguards on privacy and information secu-
rity, to the records of all other State and local
government agencies (including law enforcement
and corrections records), including automated
access to records maintained in automated data
bases.
‘‘(E) CHANGE IN PAYEE.—In cases where
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 provid-
ing notice to obligor and obligee, to direct the
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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;
‘‘(ii) attaching and seizing assets of
the obligor held in financial institutions;
and
‘‘(iii) attaching public and private re-
tirement funds.
‘‘(H) INCREASE
MONTHLY
PAYMENTS.—
For the purpose of securing overdue support, to
increase the amount of monthly support pay-
ments to include amounts for arrearages (sub-
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ject to such conditions or limitations as the
State may provide).
‘‘(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:
‘‘(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
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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).
‘‘(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 admin-
istrative areas 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.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 745(a)(2) of this Act
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and as amended by sections 711 and 712(c) of this Act,
is amended by adding at the end the following:
‘‘(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. 731. 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
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-
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missed becasue 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, to require the
child and all other parties (other than indi-
viduals found under section 454(28) to
have good cause for refusing to cooperate)
to submit to genetic tests upon the request
of any such party if the request is sup-
ported 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.
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‘‘(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 (where the
State so elects) from the alleged fa-
ther if paternity is established; and
‘‘(II) to obtain additional testing
in any case where an original test re-
sult is contested, upon request and
advance payment by the contestant.
‘‘(C) VOLUNTARY
PATERNITY
ACKNOWL-
EDGMENT.—
‘‘(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, in writing, and in a language
that each can understand, of the alter-
natives to, the legal consequences of, and
the rights (including, if 1 parent is a
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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.
‘‘(iii) 
PATERNITY
ESTABLISHMENT
SERVICES.—
‘‘(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
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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-
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
FEDERAL
PATERNITY
ACKNOWLEDGMENT
AFFIDAVIT.—Such
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procedures must require the State and
those required to establish paternity to use
only the affidavit developed 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.
‘‘(D) STATUS OF SIGNED PATERNITY AC-
KNOWLEDGMENT.—
‘‘(i) LEGAL
FINDING
OF
PATER-
NITY.—Procedures under which a signed
acknowledgment of paternity is considered
a legal finding of paternity, subject to the
right of any signatory to rescind the ac-
knowledgment within 60 days.
‘‘(ii) 
CONTEST.—Procedures 
under
which, after the 60-day period referred to
in clause (i), a signed acknowledgment of
paternity may be challenged in court only
on the basis of fraud, duress, or material
mistake of fact, with the burden of proof
upon the challenger, and under which the
legal responsibilities (including child sup-
port obligations) of any signatory arising
from the acknowledgment may not be sus-
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pended during the challenge, except for
good cause shown.
‘‘(iii) RESCISSION.—Procedures under
which, after the 60-day period referred to
in clause (i), a minor who has signed an
acknowledgment of paternity other than in
the presence of a parent or court-appointed
guardian ad litem may rescind the ac-
knowledgment in a judicial or administra-
tive proceeding, until the earlier of—
‘‘(I) attaining the age of major-
ity; or
‘‘(II) the date of the first judicial
or administrative proceeding brought
(after the signing) to establish a child
support obligation, visitation rights, or
custody rights with respect to the
child whose paternity is the subject of
the acknowledgment, and at which the
minor is represented by a parent or
guardian ad litem, or an attorney.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI-
CATION
PROCEEDINGS.—Procedures 
under
which judicial or administrative proceedings are
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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
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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.—Proce-
dures 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, where there is clear and convincing
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evidence 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
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used for the voluntary acknowledgment of paternity which
shall include the social security number of each parent’’
before the semicolon.
(c) TECHNICAL
AMENDMENT.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘a simple civil process
for voluntarily acknowledging paternity and’’.
SEC. 732. 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. 733. COOPERATION BY APPLICANTS FOR AND RECIPI-
ENTS OF TEMPORARY FAMILY ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections
703(a), 712(a), and 713(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 para-
graph (27) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (27) the fol-
lowing:
‘‘(28) provide that the State agency responsible
for administering the State plan—
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‘‘(A) shall require each individual who has
applied for or is receiving assistance under the
State program funded under part A to cooper-
ate with the State in establishing the paternity
of, and in establishing, modifying, or enforcing
a support order for, any child of the individual
by providing the State agency with the name of,
and such other information as the State agency
may require with respect to, the father of the
child, subject to such good cause and other ex-
ceptions as the State may establish; and
‘‘(B) may require the individual and the
child to submit to genetic tests.’’.
Subtitle E—Program
Administration and Funding
SEC. 741. FEDERAL MATCHING PAYMENTS.
(a) INCREASED BASE MATCHING RATE.—Section
455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as
follows:
‘‘(2) The percent specified in this paragraph for any
quarter is 66 percent.’’.
(b) MAINTENANCE OF EFFORT.—Section 455 (42
U.S.C. 655) is amended—
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(1) in subsection (a)(1), in the matter preced-
ing subparagraph (A), by striking ‘‘From’’ and in-
serting ‘‘Subject to subsection (c), from’’; and
(2) by inserting after subsection (b) the follow-
ing:
‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding
subsection (a), the total expenditures under the State plan
approved under this part for fiscal year 1997 and each
succeeding fiscal year, reduced by the percentage specified
in paragraph (2) for the fiscal year shall not be less than
such total expenditures for fiscal year 1996, reduced by
66 percent.’’.
SEC. 742. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH-
ING RATE.—Section 458 (42 U.S.C. 658) is amended to
read as follows:
‘‘SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.
‘‘(a) INCENTIVE ADJUSTMENTS.—
‘‘(1) IN GENERAL.—Beginning with fiscal year
1999, the Secretary shall increase the percent speci-
fied in section 455(a)(2) that applies to payments to
a State under section 455(a)(1)(A) for each quarter
in a fiscal year by a factor reflecting the sum of the
applicable incentive adjustments (if any) determined
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in accordance with regulations under this section
with respect to the paternity establishment percent-
age of the State for the immediately preceding fiscal
year and with respect to overall performance of the
State in child support enforcement during such pre-
ceding fiscal year.
‘‘(2) STANDARDS.—
‘‘(A) IN
GENERAL.—The Secretary shall
specify in regulations—
‘‘(i) the levels of accomplishment, and
rates of improvement as alternatives to
such levels, which a State must attain to
qualify for an incentive adjustment under
this section; and
‘‘(ii) the amounts of incentive adjust-
ment that shall be awarded to a State that
achieves specified accomplishment or im-
provement levels, which amounts shall be
graduated, ranging up to—
‘‘(I) 12 percentage points, in con-
nection with paternity establishment;
and
‘‘(II) 12 percentage points, in
connection with overall performance in
child support enforcement.
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‘‘(B) LIMITATION.—In setting performance
standards pursuant to subparagraph (A)(i) and
adjustment amounts pursuant to subparagraph
(A)(ii), the Secretary shall ensure that the ag-
gregate number of percentage point increases as
incentive adjustments to all States do not ex-
ceed such aggregate increases as assumed by
the Secretary in estimates of the cost of this
section as of June 1994, unless the aggregate
performance of all States exceeds the projected
aggregate performance of all States in such cost
estimates.
‘‘(3) DETERMINATION OF INCENTIVE ADJUST-
MENT.—The Secretary shall determine the amount
(if any) of the incentive adjustment due each State
on the basis of the data submitted by the State pur-
suant to section 454(15)(B) concerning the levels of
accomplishment (and rates of improvement) with re-
spect to performance indicators specified by the Sec-
retary pursuant to this section.
‘‘(4) 
RECYCLING
OF
INCENTIVE
ADJUST-
MENT.—A State to which funds are paid by the
Federal Government as a result of an incentive ad-
justment under this section shall expend the funds
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in the State program under this part within 2 years
after the date of the payment.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) PATERNITY
ESTABLISHMENT
PERCENT-
AGE.—The term ‘paternity establishment percent-
age’ means, with respect to a State and a fiscal
year—
‘‘(A) the total number of children in the
State who were born out of wedlock, who have
not attained 1 year of age and for whom pater-
nity is established or acknowledged during the
fiscal year; divided by
‘‘(B) the total number of children born out
of wedlock in the State during the fiscal year.
‘‘(2) OVERALL PERFORMANCE IN CHILD SUP-
PORT ENFORCEMENT.—The term ‘overall perform-
ance in child support enforcement’ means a measure
or measures of the effectiveness of the State agency
in a fiscal year which takes into account factors in-
cluding—
‘‘(A) the percentage of cases requiring a
support order in which such an order was es-
tablished;
‘‘(B) the percentage of cases in which child
support is being paid;
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‘‘(C) the ratio of child support collected to
child support due; and
‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations (after consultation with the States).’’.
(b) CONFORMING AMENDMENTS.—Section 454(22)
(42 U.S.C. 654(22)) is amended—
(1) by striking ‘‘incentive payments’’ the 1st
place such term appears and inserting ‘‘incentive ad-
justments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
(c) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—
(1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended—
(A) in the matter preceding subparagraph
(A) by inserting ‘‘its overall performance in
child support enforcement is satisfactory (as de-
fined in section 458(b) and regulations of the
Secretary), and’’ after ‘‘1994,’’; and
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(B) in each of subparagraphs (A) and (B),
by striking ‘‘75’’ and inserting ‘‘90’’.
(2) 
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)’’.
(3) 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
born out of wedlock or for whom support has
not been established’’; and
(C) in subparagraph (B) (as so redesig-
nated)—
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(i) by inserting ‘‘and overall perform-
ance in child support enforcement’’ after
‘‘paternity establishment percentages’’; and
(ii) by inserting ‘‘and securing sup-
port’’ before the period.
(d) EFFECTIVE DATES.—
(1) 
INCENTIVE
ADJUSTMENTS.—(A) 
The
amendments made by subsections (a) and (b) shall
become effective on October 1, 1997, except to the
extent provided in subparagraph (B).
(B) Section 458 of the Social Security Act, as
in effect prior to 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
respect to calendar quarters beginning on and after
the date of the enactment of this Act.
SEC. 743. 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 sub-
paragraph (B) of paragraph (14); and
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(3) by inserting after paragraph (14) the fol-
lowing:
‘‘(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, which shall include such information
as may be necessary to measure State compli-
ance with Federal requirements for expedited
procedures and timely case processing, 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
accomplishment (and rates of improvement)
with respect to applicable performance indica-
tors (including IV–D paternity establishment
percentages and overall performance in child
support enforcement) to the extent necessary
for purposes of sections 452(g) and 458.’’.
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(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 pursuant
to section 454(15)(A) and, as appropriate, provide
to the State comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
government auditing standards of the Comptroller
General of the United States—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet the requirements of this part, concerning
performance standards and reliability of pro-
gram data) to assess the completeness, reliabil-
ity, and security of the data, and the accuracy
of the reporting systems, used in calculating
performance indicators under subsection (g) of
this section and section 458;
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‘‘(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
‘‘(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 section.
SEC. 744. 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-
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quirements of this part relating to expedited processes and
timely case processing) to be applied in following such pro-
cedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 703(a), 712(a),
713(a), and 733 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
(3) by adding after paragraph (28) the follow-
ing:
‘‘(29) provide that the State shall use the defi-
nitions established under section 452(a)(5) in col-
lecting and reporting information as required under
this part.’’.
SEC. 745. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—
(1) 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’’;
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(C) by inserting ‘‘meeting the requirements
of section 454A’’ after ‘‘information retrieval
system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that
follows and inserting a semicolon.
(2) Part D of title IV (42 U.S.C. 651–669) is
amended by inserting after section 454 the follow-
ing:
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.
‘‘(a) IN GENERAL.—In order for a State to meet the
requirements of this section, the State agency administer-
ing the State program under this part shall have in oper-
ation a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section with the fre-
quency and in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required by this section shall perform such functions
as the Secretary may specify relating to management of
the State program under this part, including—
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‘‘(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
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive and penalty adjustments required by sections
452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in
the State; and
‘‘(B) to calculate the IV–D paternity es-
tablishment percentage and overall performance
in child support enforcement 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
accuracy of the calculations described in paragraph
(1)(B).
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‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
rity, 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
safeguards 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—
‘‘(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 per-
sonnel 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 para-
graph (1).
‘‘(3) MONITORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanisms, to guard against and promptly
identify unauthorized access or use.
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‘‘(4) TRAINING
AND
INFORMATION.—Proce-
dures to ensure that all personnel (including State
and local agency staff and contractors) who may
have access to or be required to use confidential pro-
gram data are informed of applicable requirements
and penalties (including those in section 6103 of the
Internal Revenue Code of 1986), and are adequately
trained in security procedures.
‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
authorized access to, or disclosure or use of, con-
fidential data.’’.
(3) REGULATIONS.—The Secretary of Health
and Human Services shall prescribe final regulations
for implementation of section 454A of the Social Se-
curity Act not later than 2 years after the date of
the enactment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sec-
tions 703(a)(2) and 712(a)(1) of this Act, is amend-
ed to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
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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
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
satisfy any other such processes on a first-come,
first-served basis, with any such process being satis-
fied out of such moneys as remain after the satisfac-
tion of all such processes which have been previously
served.
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HR 4 EH1S
plans under section 454 of such Act, shall be effec-
tive with respect to periods beginning on and after
October 1, 1996; and
(2) all other provisions of this title shall become
effective upon enactment.
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The
provisions of this title shall become effective with respect
to a State on the later of—
(1) the date specified in this title, or
(2) the effective date of laws enacted by the leg-
islature of such State implementing such provisions,
but in no event later than the first day of the first cal-
endar quarter beginning after the close of the first regular
session of the State legislature that begins after the date
of the enactment of this Act. For purposes of the previous
sentence, in the case of a State that has a 2-year legisla-
tive 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 compli-
ance with any requirement enacted by this title if the State
is unable to so comply without amending the State con-
stitution until the earlier of—
(1) 1 year after the effective date of the nec-
essary State constitutional amendment; or