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out regard to whether regulations have been issued to imple-
ment such amendments.
SEC. 2215. REGULATIONS.
Within 3 months after the date of the enactment of this
Act, the Commissioner of Social Security shall prescribe
such regulations as may be necessary to implement the
amendments made by this subchapter.
Subchapter C—Additional Enforcement
Provision
SEC. 2221. INSTALLMENT PAYMENT OF LARGE PAST-DUE
SUPPLEMENTAL SECURITY INCOME BENE-
FITS.
(a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383)
is amended by adding at the end the following new para-
graph:
‘‘(10)(A) If an individual is eligible for past-due
monthly benefits under this title in an amount that (after
any withholding for reimbursement to a State for interim
assistance under subsection (g)) equals or exceeds the prod-
uct of—
‘‘(i) 12, and
‘‘(ii) the maximum monthly benefit payable
under this title to an eligible individual (or, if appro-
priate, to an eligible individual and eligible spouse),
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then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments
as provided in subparagraph (B).
‘‘(B)(i) The payment of past-due benefits subject to this
subparagraph shall be made in not to exceed 3 installments
that are made at 6-month intervals.
‘‘(ii) Except as provided in clause (iii), the amount
of each of the first and second installments may not exceed
an amount equal to the product of clauses (i) and (ii) of
subparagraph (A).
‘‘(iii) In the case of an individual who has—
‘‘(I) outstanding debt attributable to—
‘‘(aa) food,
‘‘(bb) clothing,
‘‘(cc) shelter, or
‘‘(dd) medically necessary services, supplies
or equipment, or medicine; or
‘‘(II) current expenses or expenses anticipated in
the near term attributable to—
‘‘(aa) medically necessary services, supplies
or equipment, or medicine, or
‘‘(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by
a public assistance program, the Secretary under title
XVIII, a State plan approved under title XV or XIX, or
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any private entity legally liable to provide payment pursu-
ant to an insurance policy, pre-paid plan, or other arrange-
ment, the limitation specified in clause (ii) may be exceeded
by an amount equal to the total of such debt and expenses.
‘‘(C) This paragraph shall not apply to any individual
who, at the time of the Commissioner’s determination that
such individual is eligible for the payment of past-due
monthly benefits under this title—
‘‘(i) is afflicted with a medically determinable
impairment that is expected to result in death within
12 months; or
‘‘(ii) is ineligible for benefits under this title and
the Commissioner determines that such individual is
likely to remain ineligible for the next 12 months.
‘‘(D) For purposes of this paragraph, the term ‘benefits
under this title’ includes supplementary payments pursu-
ant to an agreement for Federal administration under sec-
tion 1616(a), and payments pursuant to an agreement en-
tered into under section 212(b) of Public Law 93–66.’’.
(b) CONFORMING AMENDMENT.—Section 1631(a)(1)
(42 U.S.C. 1383(a)(1)) is amended by inserting ‘‘(subject
to paragraph (10))’’ immediately before ‘‘in such install-
ments’’.
(c) EFFECTIVE DATE.—
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(1) IN
GENERAL.—The amendments made by
this section are effective with respect to past-due bene-
fits payable under title XVI of the Social Security Act
after the third month following the month in which
this Act is enacted.
(2) BENEFITS PAYABLE UNDER TITLE XVI.—For
purposes of this subsection, the term ‘‘benefits payable
under title XVI of the Social Security Act’’ includes
supplementary payments pursuant to an agreement
for Federal administration under section 1616(a) of
the Social Security Act, and payments pursuant to
an agreement entered into under section 212(b) of
Public Law 93–66.
SEC. 2222. REGULATIONS.
Within 3 months after the date of the enactment of this
Act, the Commissioner of Social Security shall prescribe
such regulations as may be necessary to implement the
amendments made by this subchapter.
Subchapter D—Studies Regarding
Supplemental Security Income Program
SEC. 2231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU-
RITY INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by sec-
tion 2201(c) of this Act, is amended by adding at the end
the following new section:
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‘‘ANNUAL REPORT ON PROGRAM
‘‘SEC. 1637. (a) Not later than May 30 of each year,
the Commissioner of Social Security shall prepare and de-
liver a report annually to the President and the Congress
regarding the program under this title, including—
‘‘(1) a comprehensive description of the program;
‘‘(2) historical and current data on allowances
and denials, including number of applications and
allowance rates for initial determinations, reconsider-
ation determinations, administrative law judge hear-
ings, appeals council reviews, and Federal court deci-
sions;
‘‘(3) historical and current data on characteris-
tics of recipients and program costs, by recipient
group (aged, blind, disabled adults, and disabled chil-
dren);
‘‘(4) historical and current data on prior enroll-
ment by recipients in public benefit programs, includ-
ing State programs funded under part A of title IV
of the Social Security Act and State general assist-
ance programs;
‘‘(5) projections of future number of recipients
and program costs, through at least 25 years;
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‘‘(6) number of redeterminations and continuing
disability reviews, and the outcomes of such redeter-
minations and reviews;
‘‘(7) data on the utilization of work incentives;
‘‘(8) detailed information on administrative and
other program operation costs;
‘‘(9) summaries of relevant research undertaken
by the Social Security Administration, or by other re-
searchers;
‘‘(10) State supplementation program oper-
ations;
‘‘(11) a historical summary of statutory changes
to this title; and
‘‘(12) such other information as the Commis-
sioner deems useful.
‘‘(b) Each member of the Social Security Advisory
Board shall be permitted to provide an individual report,
or a joint report if agreed, of views of the program under
this title, to be included in the annual report required under
this section.’’.
SEC. 2232. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller Gen-
eral of the United States shall study and report on—
(1) the impact of the amendments made by, and
the provisions of, this chapter on the supplemental se-
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curity income program under title XVI of the Social
Security Act; and
(2) extra expenses incurred by families of chil-
dren receiving benefits under such title that are not
covered by other Federal, State, or local programs.
CHAPTER 3—CHILD SUPPORT
SEC. 2300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this chapter 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 section or
other provision of the Social Security Act.
Subchapter A—Eligibility for Services;
Distribution of Payments
SEC. 2301. STATE OBLIGATION TO PROVIDE CHILD SUP-
PORT ENFORCEMENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the estab-
lishment of paternity or the establishment, modi-
fication, or enforcement of child support obliga-
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tions, as appropriate, under the plan with re-
spect to—
‘‘(i) each child for whom (I) assistance
is provided under the State program funded
under part A of this title, (II) benefits or
services for foster care maintenance are pro-
vided under the State program funded
under part E of this title, (III) medical as-
sistance is provided under the State plan
under title XV, or (IV) medical assistance is
provided under the State plan approved
under title XIX, unless, in accordance with
paragraph (29), good cause or other excep-
tions exist;
‘‘(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)—
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(A) by striking ‘‘provide that’’ and insert-
ing ‘‘provide that—’’;
(B) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) services under the plan shall be made
available to residents of other States on the same
terms as to residents of the State submitting the
plan;’’;
(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
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) CONTINUATION OF SERVICES FOR FAMILIES CEAS-
ING TO RECEIVE ASSISTANCE UNDER THE STATE PRO-
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GRAM FUNDED UNDER PART A.—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 following
new paragraph:
‘‘(25) provide that if a family with respect to
which services are provided under the plan ceases to
receive assistance under the State program funded
under part A, the State shall provide appropriate no-
tice to the family and continue to provide such serv-
ices, subject to the same conditions and on the same
basis as in the case of other individuals to whom serv-
ices are furnished under the plan, except that an ap-
plication or other request to continue services shall
not be required of such a family and paragraph
(6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is amend-
ed 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)’’.
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(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 section 454’’ and
inserting ‘‘section 454(4)’’.
SEC. 2302. 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.—Subject to subsection (e), an
amount collected on behalf of a family as support by a State
pursuant to a plan approved under this part shall be dis-
tributed as follows:
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the
case of a family receiving assistance from the State,
the State shall—
‘‘(A) pay to the Federal Government the
Federal share of the amount so collected; and
‘‘(B) retain, or distribute to the family, the
State share of the amount so collected.
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‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived 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
amount required to be paid to the family for the
month in which collected, the State shall distrib-
ute the amount so collected as follows:
‘‘(i) DISTRIBUTION
OF
ARREARAGES
THAT ACCRUED AFTER THE FAMILY CEASED
TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER 1997.—Except
as provided in subclause (II), the pro-
visions of this section (other than sub-
section (b)(1)) as in effect and applied
on the day before the date of the enact-
ment of section 2302 of the Personal
Responsibility and Work Opportunity
Act of 1996 shall apply with respect to
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the distribution of support arrearages
that—
‘‘(aa) accrued after the fam-
ily ceased to receive assistance,
and
‘‘(bb) are collected before Oc-
tober 1, 1997.
‘‘(II) POST-SEPTEMBER
1997.—
With respect to the amount so collected
on or after October 1, 1997 (or before
such date, at the option of the State)—
‘‘(aa) 
IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
family that accrued after the fam-
ily ceased to receive assistance
from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED TO THE FAMILY.—After
the application of division (aa)
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and clause (ii)(II)(aa) with re-
spect to the amount so collected,
the State shall retain the State
share of the amount so collected,
and pay to the Federal Govern-
ment the Federal share (as defined
in 
subsection 
(c)(2)) 
of 
the
amount so collected, but only to
the extent necessary to reimburse
amounts paid to the family as as-
sistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER TO THE FAMILY.—To
the extent that neither division
(aa) nor division (bb) applies to
the amount so collected, the State
shall distribute the amount to the
family.
‘‘(ii) DISTRIBUTION
OF
ARREARAGES
THAT ACCRUED BEFORE THE FAMILY RE-
CEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—Except
as provided in subclause (II), the pro-
visions of this section (other than sub-
section (b)(1)) as in effect and applied
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on the day before the date of the enact-
ment of section 2302 of the Personal
Responsibility and Work Opportunity
Act of 1996 shall apply with respect to
the distribution of support arrearages
that—
‘‘(aa) accrued before the fam-
ily received assistance, and
‘‘(bb) are collected before Oc-
tober 1, 2000.
‘‘(II) POST-SEPTEMBER
2000.—
Unless, based on the report required by
paragraph (4), the Congress determines
otherwise, with respect to the amount
so collected on or after October 1, 2000
(or before such date, at the option of
the State)—
‘‘(aa) 
IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
family that accrued before the
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family received assistance from
the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED TO THE FAMILY.—After
the 
application 
of 
clause
(i)(II)(aa) and division (aa) with
respect to the amount so collected,
the State shall retain the State
share of the amount so collected,
and pay to the Federal Govern-
ment the Federal share (as defined
in 
subsection 
(c)(2)) 
of 
the
amount so collected, but only to
the extent necessary to reimburse
amounts paid to the family as as-
sistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER TO THE FAMILY.—To
the extent that neither division
(aa) nor division (bb) applies to
the amount so collected, the State
shall distribute the amount to the
family.
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‘‘(iii) DISTRIBUTION OF ARREARAGES
THAT
ACCRUED
WHILE
THE
FAMILY
RE-
CEIVED ASSISTANCE.—In the case of a fam-
ily described in this subparagraph, the pro-
visions of paragraph (1) shall apply with
respect to the distribution of support arrear-
ages that accrued while the family received
assistance.
‘‘(iv) AMOUNTS COLLECTED PURSUANT
TO
SECTION
464.—Notwithstanding any
other provision of this section, any amount
of support collected pursuant to section 464
shall be retained by the State to the extent
past-due support has been assigned to the
State as a condition of receiving assistance
from the State, up to the amount necessary
to reimburse the State for amounts paid to
the family as assistance by the State. The
State shall pay to the Federal Government
the Federal share of the amounts so re-
tained. To the extent the amount collected
pursuant to section 464 exceeds the amount
so retained, the State shall distribute the ex-
cess to the family.
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‘‘(v) ORDERING RULES FOR DISTRIBU-
TIONS.—For purposes of this subparagraph,
unless an earlier effective date is required
by this section, effective October 1, 2000, the
State shall treat any support arrearages
collected, except for amounts collected pur-
suant to section 464, as accruing in the fol-
lowing order:
‘‘(I) To the period after the family
ceased to receive assistance.
‘‘(II) To the period before the fam-
ily received assistance.
‘‘(III) To the period while the
family was receiving assistance.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall distribute the amount so collected to the family.
‘‘(4) FAMILIES UNDER CERTAIN AGREEMENTS.—
In the case of a family receiving assistance from an
Indian tribe, distribute the amount so collected pursu-
ant to an agreement entered into pursuant to a State
plan under section 454(33).
‘‘(5) STUDY AND REPORT.—Not later than Octo-
ber 1, 1998, the Secretary shall report to the Congress
the Secretary’s findings with respect to—
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‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from
the State’ means—
‘‘(A) assistance under the State program
funded under part A or under the State plan ap-
proved under part A of this title (as in effect on
the day before the date of the enactment of the
Personal Responsibility and Work Opportunity
Act of 1996); and
‘‘(B) foster care maintenance payments
under the State plan approved under part E of
this title.
‘‘(2) FEDERAL SHARE.—The term ‘Federal share’
means that portion of the amount collected resulting
from the application of the Federal medical assistance
percentage in effect for the fiscal year in which the
amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT-
AGE.—The term ‘Federal medical assistance percent-
age’ means—
‘‘(A) the Federal medical assistance percent-
age (as defined in section 1118), in the case of
Puerto Rico, the Virgin Islands, Guam, and
American Samoa; or
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‘‘(B) the Federal medical assistance percent-
age (as defined in section 1905(b), as in effect on
September 30, 1996) in the case of any other
State.
‘‘(4) STATE
SHARE.—The term ‘State share’
means 100 percent minus the Federal share.
‘‘(d) HOLD HARMLESS PROVISION.—If the amounts
collected which could be retained by the State in the fiscal
year (to the extent necessary to reimburse the State for
amounts paid to families as assistance by the State) are
less than the State share of the amounts collected in fiscal
year 1995 (determined in accordance with section 457 as
in effect on the day before the date of the enactment of the
Personal Responsibility and Work Opportunity Act of
1996), the State share for the fiscal year shall be an amount
equal to the State share in fiscal year 1995.
‘‘(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBUTION
UNDER THIS SECTION.—At State option, this section shall
not apply to any amount collected on behalf of a family
as support by the State (and paid to the family in addition
to the amount of assistance otherwise payable to the family)
pursuant to a plan approved under this part if such
amount would have been paid to the family by the State
under section 402(a)(28), as in effect and applied on the
day before the date of the enactment of section 2302 of the
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Personal Responsibility and Work Opportunity Act of 1996.
For purposes of subsection (d), the State share of such
amount paid to the family shall be considered amounts
which could be retained by the State if such payments were
reported by the State as part of the State share of amounts
collected in fiscal year 1995.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is
amended by striking ‘‘section 457(b)(4) or (d)(3)’’
and inserting ‘‘section 457’’.
(2) Section 454 (42 U.S.C. 654) is amended—
(A) in paragraph (11)—
(i) by striking ‘‘(11)’’ and inserting
‘‘(11)(A)’’; and
(ii) by inserting after the semicolon
‘‘and’’; and
(B) by redesignating paragraph (12) as
subparagraph (B) of paragraph (11).
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
be effective on October 1, 1996, or earlier at the
State’s option.
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(2) CONFORMING
AMENDMENTS.—The amend-
ments made by subsection (b)(2) shall become effective
on the date of the enactment of this Act.
SEC. 2303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 2301(b) 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 following
new paragraph:
‘‘(26) 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 proceedings
or actions to establish paternity, or to establish
or enforce support;
‘‘(B) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party against whom a protective order
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with respect to the former party has been en-
tered; and
‘‘(C) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party if the State has reason to believe that
the release of the information may result in
physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on October 1, 1997.
SEC. 2304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 2302(b)(2) of this Act, is amended by
inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for the establishment of procedures
to require the State to provide individuals who are
applying for or receiving services under the State
plan, or who are parties to cases in which services are
being provided under the State plan—
‘‘(A) with notice of all proceedings in which
support obligations might be established or modi-
fied; and
‘‘(B) with a copy of any order establishing
or modifying a child support obligation, or (in
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the case of a petition for modification) a notice
of determination that there should be no change
in the amount of the child support award, with-
in 14 days after issuance of such order or deter-
mination;’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on October 1, 1997.
Subchapter B—Locate and Case Tracking
SEC. 2311. STATE CASE REGISTRY.
Section 454A, as added by section 2344(a)(2) of this
Act, is amended by adding at the end the following new
subsections:
‘‘(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
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registries of support orders through an automated in-
formation network, subject to this section.
‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—
Such records shall use standardized data elements for
both parents (such as names, social security 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 arrearages, 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 update,
maintain, and regularly monitor, case records in the
State case registry with respect to which services are
being provided 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 comparison
with Federal, State, or local sources of informa-
tion;
‘‘(C) information on support collections and
distributions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLO-
SURES OF INFORMATION.—The State shall use the auto-
mated system required by this section to extract informa-
tion from (at such times, and in such standardized format
or formats, as may be required by the Secretary), to share
and compare information with, and to receive information
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from, other data bases and information comparison serv-
ices, 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 informa-
tion comparison activities shall include the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP-
PORT ORDERS.—Furnishing to the Federal Case Reg-
istry of Child Support Orders established under sec-
tion 453(h) (and update as necessary, with informa-
tion including notice of expiration of orders) the min-
imum amount of information on child support cases
recorded in the State case registry that is necessary
to operate the registry (as specified by the Secretary
in regulations).
‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—Ex-
changing information with the Federal Parent Loca-
tor Service for the purposes specified in section 453.
‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MED-
ICAID
AGENCIES.—Exchanging 
information 
with
State agencies (of the State and of other States) ad-
ministering programs funded under part A, programs
operated under a State plan under title XV or a State
plan approved under title XIX, and other programs
designated by the Secretary, as necessary to perform
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State agency responsibilities under this part and
under such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMATION
COMPARISONS.—Exchanging information with other
agencies of the State, agencies of other States, and
interstate information networks, as necessary and ap-
propriate to carry out (or assist other States to carry
out) the purposes of this part.’’.
SEC. 2312. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 2301(b) and 2303(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 following
new paragraph:
‘‘(27) provide that, on and after October 1, 1998,
the State agency will—
‘‘(A) operate a State disbursement unit in
accordance with section 454B; and
‘‘(B) have sufficient State staff (consisting
of State employees) and (at State option) con-
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tractors reporting directly to the State agency
to—
‘‘(i) monitor and enforce support col-
lections through the unit in cases being en-
forced by the State pursuant to section
454(4) (including carrying out the auto-
mated data processing responsibilities de-
scribed 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 2344(a)(2) of this Act, is amended by inserting
after section 454A the following new section:
‘‘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 collec-
tion and disbursement of payments under support or-
ders—
‘‘(A) in all cases being enforced by the State
pursuant to section 454(4); and
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‘‘(B) in all cases not being enforced by the
State under this part in which the support order
is initially issued in the State on or after Janu-
ary 1, 1994, and in which the wages of the non-
custodial parent are subject to withholding pur-
suant to section 466(a)(8)(B).
‘‘(2) OPERATION.—The State disbursement unit
shall be operated—
‘‘(A) directly by the State agency (or 2 or
more State agencies under a regional cooperative
agreement), or (to the extent appropriate) by a
contractor responsible directly to the State agen-
cy; and
‘‘(B) except in cases described in paragraph
(1)(B), in coordination with the automated sys-
tem 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 sec-
tion, if the Secretary agrees that the system will not
cost more nor take more time to establish or operate
than a centralized system. In addition, employers
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shall be given 1 location to which income withholding
is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disburse-
ment unit shall use automated procedures, electronic proc-
esses, and computer-driven technology to the maximum ex-
tent feasible, efficient, and economical, for the collection and
disbursement of support payments, including procedures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agency,
and the agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the custo-
dial 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.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the State disbursement 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 sufficient information
identifying the payee is provided.
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‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—
The State disbursement unit may delay the distribu-
tion of collections toward arrearages until the resolu-
tion of any timely appeal with respect to such arrear-
ages.
‘‘(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 2344(a)(2) and as amended by section
2311 of this Act, is amended by adding at the end the fol-
lowing new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
‘‘(1) IN GENERAL.—The State shall use the auto-
mated system required by this section, to the maxi-
mum extent feasible, to assist and facilitate the collec-
tion and disbursement of support payments through
the State disbursement unit operated under section
454B, through the performance of functions, includ-
ing, at a minimum—
‘‘(A) transmission of orders and notices to
employers (and other debtors) for the withholding
of wages and other income—
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‘‘(i) within 2 business days after re-
ceipt of notice of, and the income source
subject to, such withholding from a court,
another State, an employer, the Federal
Parent Locator Service, or another source
recognized by the State; 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 pursuant
to section 466(c)) if payments are not timely
made.
‘‘(2) BUSINESS DAY DEFINED.—As used in para-
graph (1), the term ‘business day’ means a day on
which State offices are open for regular business.’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
become effective on October 1, 1998.
(2) LIMITED EXCEPTION TO UNIT HANDLING PAY-
MENTS.—Notwithstanding section 454B(b)(1) of the
Social Security Act, as added by this section, any
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State which, as of the date of the enactment of this
Act, processes the receipt of child support payments
through local courts may, at the option of the State,
continue to process through September 30, 1999, such
payments through such courts as processed such pay-
ments on or before such date of enactment.
SEC. 2313. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 2301(b), 2303(a) and
2312(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 adding after paragraph (27) the following
new paragraph:
‘‘(28) provide that, on and after October 1, 1997,
the State will operate a State Directory of New Hires
in accordance with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting after
section 453 the following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
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‘‘(A) REQUIREMENT
FOR
STATES
THAT
HAVE NO DIRECTORY.—Except as provided in
subparagraph (B), not later than October 1,
1997, each State shall establish an automated di-
rectory (to be known as the ‘State Directory of
New Hires’) which shall contain information
supplied in accordance with subsection (b) by
employers on each newly hired employee.
‘‘(B) STATES WITH NEW HIRE REPORTING
IN EXISTENCE.—A State which has a new hire
reporting law in existence on the date of the en-
actment of this section may continue to operate
under the State law, but the State must meet the
requirements of subsection (g)(2) not later than
October 1, 1997, and the requirements of this sec-
tion (other than subsection (g)(2)) not later than
October 1, 1998.
‘‘(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 intel-
ligence or counterintelligence functions, if
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the head of such agency has determined that
reporting pursuant to paragraph (1) with
respect to the employee could endanger the
safety of the employee or compromise an on-
going investigation or intelligence mission.
‘‘(B) EMPLOYER.—
‘‘(i) IN
GENERAL.—The term ‘em-
ployer’ has the meaning given such term in
section 3401(d) of the Internal Revenue
Code of 1986 and includes any govern-
mental entity and any labor organization.
‘‘(ii) 
LABOR
ORGANIZATION.—The
term ‘labor organization’ shall have the
meaning given such term in section 2(5) of
the National Labor Relations Act, and in-
cludes any entity (also known as a ‘hiring
hall’) which is used by the organization and
an employer to carry out requirements de-
scribed in section 8(f)(3) of such Act of an
agreement between the organization and the
employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), each employer shall
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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 so-
cial security number of the employee, and the
name and address of, and identifying number
assigned under section 6109 of the Internal Reve-
nue Code of 1986 to, the employer.
‘‘(B) MULTISTATE
EMPLOYERS.—An em-
ployer that has employees who are employed in
2 or more States and that transmits reports
magnetically or electronically may comply with
subparagraph (A) by designating 1 State in
which such employer has employees to which the
employer will transmit the report described in
subparagraph (A), and transmitting such report
to such State. Any employer that transmits re-
ports pursuant to this subparagraph shall notify
the Secretary in writing as to which State such
employer designates for the purpose of sending
reports.
‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—
Any department, agency, or instrumentality of
the United States shall comply with subpara-
graph (A) by transmitting the report described
in subparagraph (A) to the National Directory
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of New Hires established pursuant to section
453.
‘‘(2) TIMING OF REPORT.—Each State may pro-
vide the time within which the report required by
paragraph (1) shall be made with respect to an em-
ployee, but such report shall be made—
‘‘(A) not later than 20 days after the date
the employer hires the employee; or
‘‘(B) in the case of an employer transmit-
ting reports magnetically or electronically, by 2
monthly transmissions (if necessary) not less
than 12 days nor more than 16 days apart.
‘‘(c) REPORTING FORMAT AND METHOD.—Each report
required by subsection (b) shall be made on a W–4 form
or, at the option of the employer, an equivalent form, and
may be transmitted by 1st class mail, magnetically, or elec-
tronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EM-
PLOYERS.—The State shall have the option to set a State
civil money penalty which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the
result of a conspiracy between the employer and the
employee to not supply the required report or to sup-
ply a false or incomplete report.
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‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Informa-
tion shall be entered into the data base maintained by the
State Directory of New Hires within 5 business days of re-
ceipt from an employer pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than May 1, 1998,
an agency designated by the State shall, directly or
by contract, conduct automated comparisons of the so-
cial security numbers reported by employers pursuant
to subsection (b) and the social security numbers ap-
pearing 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 sup-
port order, the State Directory of New Hires shall
provide the agency administering the State plan ap-
proved 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 as-
signed, and the name and address of, and identifying
number assigned under section 6109 of the Internal
Revenue Code of 1986 to, the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
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‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NO-
TICES TO EMPLOYERS.—Within 2 business days after
the date information regarding a newly hired em-
ployee 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 em-
ployer of the employee directing the employer to with-
hold from the wages of the employee an amount equal
to the monthly (or other periodic) child support obli-
gation (including any past due support obligation) of
the employee, unless the employee’s wages are not sub-
ject to withholding pursuant to section 466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC-
TORY OF NEW HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 3
business days after the date information regard-
ing a newly hired employee is entered into the
State Directory of New Hires, the State Direc-
tory of New Hires shall furnish the information
to the National Directory of New Hires.
‘‘(B) WAGE
AND
UNEMPLOYMENT
COM-
PENSATION INFORMATION.—The State Directory
of New Hires shall, on a quarterly basis, furnish
to the National Directory of New Hires extracts
of the reports required under section 303(a)(6) to
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be made to the Secretary of Labor concerning the
wages and unemployment compensation paid to
individuals, by such dates, in such format, and
containing such information as the Secretary of
Health and Human Services shall specify in reg-
ulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this
subsection, the term ‘business day’ means a day on
which State offices are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—
The agency administering the State plan approved
under this part shall use information received pursu-
ant to subsection (f)(2) to locate individuals for pur-
poses of establishing paternity and establishing, modi-
fying, and enforcing child support obligations.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN
PROGRAMS.—A State agency responsible for admin-
istering a program specified in section 1137(b) shall
have access to information reported by employers pur-
suant to subsection (b) of this section for purposes of
verifying eligibility for the program.
‘‘(3) ADMINISTRATION
OF
EMPLOYMENT
SECU-
RITY AND WORKERS’ COMPENSATION.—State agencies
operating employment security and workers’ com-
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pensation programs shall have access to information
reported by employers pursuant to subsection (b) for
the purposes of administering such programs.’’.
(c) 
QUARTERLY
WAGE
REPORTING.—Section
1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local gov-
ernmental entities and labor organizations (as defined
in section 453A(a)(2)(B)(iii))’’ after ‘‘employers’’;
and
(2) by inserting ‘‘, and except that no report
shall be filed with respect to an employee of a State
or local agency performing intelligence or counter-
intelligence functions, if the head of such agency has
determined that filing such a report could endanger
the safety of the employee or compromise an ongoing
investigation or intelligence mission’’ after ‘‘para-
graph (2)’’.
SEC. 2314. 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)(A) Procedures described in subsection (b)
for the withholding from income of amounts payable
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as support in cases subject to enforcement under the
State plan.
‘‘(B) Procedures under which the wages of a per-
son with a support obligation 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 withholding as
provided in subsection (b) if arrearages occur, without
the need for a judicial or administrative hearing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(b) (42 U.S.C. 666(b)) is
amended in the matter preceding paragraph (1),
by striking ‘‘subsection (a)(1)’’ and inserting
‘‘subsection (a)(1)(A)’’.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4))
is amended to read as follows:
‘‘(4)(A) Such withholding must be carried out in
full compliance with all procedural due process re-
quirements of the State, and the State must send no-
tice to each noncustodial parent to whom paragraph
(1) applies—
‘‘(i) that the withholding has commenced;
and
‘‘(ii) of the procedures to follow if the non-
custodial parent desires to contest such withhold-
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ing on the grounds that the withholding or the
amount withheld is improper due to a mistake
of fact.
‘‘(B) The notice under subparagraph (A) of this
paragraph shall include the information provided to
the employer under paragraph (6)(A).’’.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5))
is amended by striking all that follows ‘‘adminis-
tered by’’ and inserting ‘‘the State through the
State disbursement unit established pursuant to
section 454B, in accordance with the require-
ments 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 ap-
propriate agency’’ and all that follows and
inserting ‘‘to the State disbursement unit
within 7 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.
The employer shall comply with the proce-
dural rules relating to income withholding
of the State in which the employee works,
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shall ensure that each agreement entered into under section
1616(a) with a State provides that the State shall furnish
such information at such times with respect to any individ-
ual who the State knows is unlawfully in the United
States.’’.
(d) INFORMATION REPORTING
FOR HOUSING PRO-
GRAMS.—Title I of the United States Housing Act of 1937
(42 U.S.C. 1437 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCE-
MENT AND OTHER AGENCIES.
‘‘Notwithstanding any other provision of law, the Sec-
retary shall, at least 4 times annually and upon request
of the Immigration and Naturalization Service (hereafter
in this section referred to as the ‘Service’), furnish the Serv-
ice with the name and address of, and other identifying
information on, any individual who the Secretary knows
is unlawfully in the United States, and shall ensure that
each contract for assistance entered into under section 6 or
8 of this Act with a public housing agency provides that
the public housing agency shall furnish such information
at such times with respect to any individual who the public
housing agency knows is unlawfully in the United States.’’.