H. R. 3130—25
‘‘(1) IN GENERAL.—Information’’; and
(2) by adding at the end the following:
‘‘(2) PENALTY FOR MISUSE OF INFORMATION IN THE NATIONAL
DIRECTORY
OF
NEW
HIRES.—The Secretary shall require the
imposition of an administrative penalty (up to and including
dismissal from employment), and a fine of $1,000, for each
act of unauthorized access to, disclosure of, or use of, informa-
tion in the National Directory of New Hires established under
subsection (i) by any officer or employee of the United States
who knowingly and willfully violates this paragraph.’’.
(b) LIMITS ON RETENTION OF DATA IN THE NATIONAL DIRECTORY
OF NEW HIRES.—Section 453(i)(2) of such Act (42 U.S.C. 653(i)(2))
is amended to read as follows:
‘‘(2) DATA ENTRY AND DELETION REQUIREMENTS.—
‘‘(A) IN GENERAL.—Information provided pursuant to
section 453A(g)(2) shall be entered into the data base main-
tained by the National Directory of New Hires within two
business days after receipt, and shall be deleted from the
data base 24 months after the date of entry.
‘‘(B) 
12-MONTH
LIMIT
ON
ACCESS
TO
WAGE
AND
UNEMPLOYMENT
COMPENSATION
INFORMATION.—The Sec-
retary shall not have access for child support enforcement
purposes to information in the National Directory of New
Hires that is provided pursuant to section 453A(g)(2)(B),
if 12 months has elapsed since the date the information
is so provided and there has not been a match resulting
from the use of such information in any information
comparison under this subsection.
‘‘(C) RETENTION OF DATA FOR RESEARCH PURPOSES.—
Notwithstanding subparagraphs (A) and (B), the Secretary
may retain such samples of data entered in the National
Directory of New Hires as the Secretary may find necessary
to assist in carrying out subsection ( j)(5).’’.
(c) NOTICE OF PURPOSES FOR WHICH WAGE AND SALARY DATA
ARE TO BE USED.—Within 90 days after the date of the enactment
of this Act, the Secretary of Health and Human Services shall
notify the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate of the
specific purposes for which the new hire and the wage and
unemployment compensation information in the National Directory
of New Hires is to be used. At least 30 days before such information
is to be used for a purpose not specified in the notice provided
pursuant to the preceding sentence, the Secretary shall notify the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate of such purpose.
(d) REPORT BY THE SECRETARY.—Within 3 years after the date
of the enactment of this Act, the Secretary of Health and Human
Services shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate a report on the accuracy of the data maintained by
the National Directory of New Hires pursuant to section 453(i)
of the Social Security Act, and the effectiveness of the procedures
designed to provide for the security of such data.
(e) EFFECTIVE DATE.—The amendments made by this section
shall take effect on October 1, 2000.
H. R. 3130—26
SEC. 403. LIMITATIONS ON USE OF TANF FUNDS FOR MATCHING
UNDER CERTAIN FEDERAL TRANSPORTATION PROGRAM.
(a) IN GENERAL.—Section 404 of the Social Security Act (42
U.S.C. 604) is amended by adding at the end the following:
‘‘(k) LIMITATIONS
ON USE
OF GRANT
FOR MATCHING UNDER
CERTAIN FEDERAL TRANSPORTATION PROGRAM.—
‘‘(1) USE LIMITATIONS.—A State to which a grant is made
under section 403 may not use any part of the grant to match
funds made available under section 3037 of the Transportation
Equity Act for the 21st Century, unless—
‘‘(A) the grant is used for new or expanded transpor-
tation services (and not for construction) that benefit
individuals described in subparagraph (C), and not to sub-
sidize current operating costs;
‘‘(B) the grant is used to supplement and not supplant
other State expenditures on transportation;
‘‘(C) the preponderance of the benefits derived from
such use of the grant accrues to individuals who are—
‘‘(i) recipients of assistance under the State pro-
gram funded under this part;
‘‘(ii) former recipients of such assistance;
‘‘(iii) noncustodial parents who are described in
item (aa) or (bb) of section 403(a)(5)(C)(ii)(II); and
‘‘(iv) low-income individuals who are at risk of
qualifying for such assistance; and
‘‘(D) the services provided through such use of the
grant promote the ability of such recipients to engage in
work activities (as defined in section 407(d)).
‘‘(2) AMOUNT LIMITATION.—From a grant made to a State
under section 403(a), the amount that a State uses to match
funds described in paragraph (1) of this subsection shall not
exceed the amount (if any) by which 30 percent of the total
amount of the grant exceeds the amount (if any) of the grant
that is used by the State to carry out any State program
described in subsection (d)(1) of this section.
‘‘(3) RULE OF INTERPRETATION.—The provision by a State
of a transportation benefit under a program conducted under
section 3037 of the Transportation Equity Act for the 21st
Century, to an individual who is not otherwise a recipient
of assistance under the State program funded under this part,
using funds from a grant made under section 403(a) of this
Act, shall not be considered to be the provision of assistance
to the individual under the State program funded under this
part.’’.
(b) REPORT TO THE CONGRESS.—Not later than 2 years after
the date of the enactment of this Act, the Secretary of Transpor-
tation, in consultation with the Secretary of Health and Human
Services, shall submit to the Committees on Ways and Means
and on Transportation and Infrastructure of the House of Rep-
resentatives and the Committees on Finance and on Environment
and Public Works of the Senate a report that—
(1) describes the manner in which funds made available
under section 3037 of the Transportation Equity Act for the
21st Century have been used;
(2) describes whether such uses of such funds has improved
transportation services for low-income individuals; and
H. R. 3130—27
(3) contains such other relevant information as may be
appropriate.
SEC. 404. CLARIFICATION OF MEANING OF HIGH-VOLUME AUTOMATED
ADMINISTRATIVE ENFORCEMENT OF CHILD SUPPORT IN
INTERSTATE CASES.
(a) IN GENERAL.—Section 466(a)(14)(B) of the Social Security
Act (42 U.S.C. 666(a)(14)(B)) is amended to read as follows:
‘‘(B) 
HIGH-VOLUME
AUTOMATED
ADMINISTRATIVE
ENFORCEMENT.—In this part, the term ‘high-volume auto-
mated administrative enforcement’, in interstate cases,
means, on request of another State, the identification by
a State, through automated data matches with financial
institutions and other entities where assets may be found,
of assets owned by persons who owe child support in other
States, and the seizure of such assets by the State, through
levy or other appropriate processes.’’.
(b) RETROACTIVITY.—The amendment made by subsection (a)
shall take effect as if included in the enactment of section 5550
of the Balanced Budget Act of 1997 (Public Law 105–33; 111 Stat.
633).
SEC. 405. GENERAL ACCOUNTING OFFICE REPORTS.
(a) REPORT ON FEASIBILITY OF INSTANT CHECK SYSTEM.—Not
later than December 31, 1998, the Comptroller General of the
United States shall report to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives on the feasibility and cost of creating and
maintaining a nationwide instant child support order check system
under which an employer would be able to determine whether
a newly hired employee is required to provide support under a
child support order.
(b) REPORT ON IMPLEMENTATION AND USE OF CHILD SUPPORT
DATABASES.—Not later than December 31, 1998, the Comptroller
General of the United States shall report to the Committee on
Finance of the Senate and the Committee on Ways and Means
of the House of Representatives on the implementation of the Fed-
eral Parent Locater Service (including the Federal Case Registry
of Child Support Orders and the National Directory of New Hires)
established under section 453 of the Social Security Act (42 U.S.C.
653) and the State Directory of New Hires established under section
453A of such Act (42 U.S.C. 653a). The report shall include a
detailed discussion of the purposes for which, and the manner
in which, the information maintained in such databases has been
used, and an examination as to whether such databases are subject
to adequate safeguards to protect the privacy of the individuals
with respect to whom information is reported and maintained.
SEC. 406. DATA MATCHING BY MULTISTATE FINANCIAL INSTITUTIONS.
(a) USE
OF
FEDERAL
PARENT
LOCATOR
SERVICE.—Section
466(a)(17)(A)(i) of the Social Security Act (42 U.S.C. 666(a)(17)(A)(i))
is amended by inserting ‘‘and the Federal Parent Locator Service
in the case of financial institutions doing business in two or more
States,’’ before ‘‘a data match system’’.
(b) FACILITATION OF AGREEMENTS.—Section 452 of such Act
(42 U.S.C. 652) is amended by adding at the end the following:
‘‘(l) The Secretary, through the Federal Parent Locator Service,
may aid State agencies providing services under State programs
H. R. 3130—28
operated pursuant to this part and financial institutions doing
business in two or more States in reaching agreements regarding
the receipt from such institutions, and the transfer to the State
agencies, of information that may be provided pursuant to section
466(a)(17)(A)(i), except that any State that, as of the date of the
enactment of this subsection, is conducting data matches pursuant
to section 466(a)(17)(A)(i) shall have until January 1, 2000, to
allow the Secretary to obtain such information from such institu-
tions that are operating in the State. For purposes of section 1113(d)
of the Right to Financial Privacy Act of 1978, a disclosure pursuant
to this subsection shall be considered a disclosure pursuant to
a Federal statute.’’.
(c) PROTECTION AGAINST LIABILITY.—Section 469A(a) of such
Act (42 U.S.C. 669a(a)) is amended by inserting ‘‘, or for disclosing
any such record to the Federal Parent Locator Service pursuant
to section 466(a)(17)(A)’’ before the period.
SEC. 407. ELIMINATION OF UNNECESSARY DATA REPORTING.
(a) IN GENERAL.—Section 469 of the Social Security Act (42
U.S.C. 669) is amended—
(1) by striking all that precedes subsection (c) and inserting
the following:
‘‘SEC. 469. COLLECTION AND REPORTING OF CHILD SUPPORT
ENFORCEMENT DATA.
‘‘(a) IN GENERAL.—With respect to each type of service described
in subsection (b), the Secretary shall collect and maintain up-
to-date statistics, by State, and on a fiscal year basis, on—
‘‘(1) the number of cases in the caseload of the State agency
administering the plan approved under this part in which the
service is needed; and
‘‘(2) the number of such cases in which the service has
actually been provided.
‘‘(b) TYPES OF SERVICES.—The statistics required by subsection
(a) shall be separately stated with respect to paternity establish-
ment services and child support obligation establishment services.
‘‘(c) TYPES
OF SERVICE RECIPIENTS.—The statistics required
by subsection (a) shall be separately stated with respect to—
‘‘(1) recipients of assistance under a State program funded
under part A or of payments or services under a State plan
approved under part E; and
‘‘(2) individuals who are not such recipients.’’; and
(2) in subsection (c), by striking ‘‘(c)’’ and inserting ‘‘(d)
RULE OF INTERPRETATION.—’’.
(b) CONFORMING AMENDMENT.—Section 452(a)(10) of such Act
(42 U.S.C. 652(a)(10)) is amended—
(1) by adding ‘‘and’’ at the end of subparagraph (H); and
(2) by striking subparagraph (I) and redesignating subpara-
graph (J) as subparagraph (I).
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to information maintained with respect to fiscal year
1995 or any succeeding fiscal year.
SEC. 408. CLARIFICATION OF ELIGIBILITY UNDER WELFARE-TO-WORK
PROGRAMS.
Section 403(a)(5)(C)(ii) of the Social Security Act (42 U.S.C.
603(a)(5)(C)(ii)) is amended—