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‘‘(ii) LEGAL FINDING OF PATERNITY.—
Procedures under which a signed voluntary
acknowledgment of paternity is considered a
legal finding of paternity, subject to the
right of any signatory to rescind the ac-
knowledgment within the earlier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administra-
tive or judicial proceeding relating to
the child (including a proceeding to es-
tablish a support order) in which the
signatory is a party.
‘‘(iii) 
CONTEST.—Procedures 
under
which, after the 60-day period referred to in
clause (ii), a signed voluntary acknowledg-
ment of paternity may be challenged in
court only on the basis of fraud, duress, or
material mistake of fact, with the burden of
proof upon the challenger, and under which
the legal responsibilities (including child
support obligations) of any signatory aris-
ing from the acknowledgment may not be
suspended during the challenge, except for
good cause shown.
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‘‘(E) BAR ON ACKNOWLEDGMENT RATIFICA-
TION
PROCEEDINGS.—Procedures under which
judicial or administrative proceedings are not
required or permitted to ratify an unchallenged
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 before
any hearing at which the results may be in-
troduced into evidence (or, at State option,
not later than a specified number of days
after receipt of the results); and
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‘‘(iii) making the test results admissi-
ble as evidence of paternity without the need
for foundation testimony or other proof of
authenticity or accuracy, unless objection is
made.
‘‘(G) PRESUMPTION OF PATERNITY IN CER-
TAIN CASES.—Procedures which create a rebutta-
ble or, at the option of the State, conclusive pre-
sumption of paternity upon genetic testing re-
sults 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 re-
quired by State law.
‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures
providing that the parties to an action to estab-
lish 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
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parentage, if there is clear and convincing evi-
dence of paternity (on the basis of genetic tests
or other evidence).
‘‘(K) PROOF OF CERTAIN SUPPORT AND PA-
TERNITY
ESTABLISHMENT
COSTS.—Procedures
under which bills for pregnancy, childbirth, and
genetic testing are admissible as evidence with-
out requiring third-party foundation testimony,
and shall constitute prima facie evidence 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 paternity
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 AFFIDA-
VIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended
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by inserting ‘‘, and develop an affidavit to be used for the
voluntary acknowledgment of paternity which shall include
the social security number of each parent and, after con-
sultation with the States, other common elements as deter-
mined by such designee’’ before the semicolon.
(c) CONFORMING
AMENDMENT.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘a simple civil process
for voluntarily acknowledging paternity and’’.
SEC. 12332. OUTREACH FOR VOLUNTARY PATERNITY ES-
TABLISHMENT.
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. 12333. COOPERATION BY APPLICANTS FOR AND RE-
CIPIENTS OF TEMPORARY FAMILY ASSIST-
ANCE.
Section 454 (42 U.S.C. 654), as amended by sections
12301(b), 12303(a), 12312(a), and 12313(a) of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
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(3) by inserting after paragraph (28) the follow-
ing new paragraph:
‘‘(29) provide that the State agency responsible
for administering the State plan—
‘‘(A) shall make the determination (and re-
determination at appropriate intervals) as to
whether an individual who has applied for or is
receiving assistance under the State program
funded under part A or the State program under
title XXI is cooperating in good faith with the
State in establishing the paternity of, or in es-
tablishing, modifying, or enforcing a support
order for, any child of the individual by provid-
ing the State agency with the name of, and such
other information as the State agency may re-
quire with respect to, the noncustodial parent of
the child, subject to such good cause exceptions,
taking into account the best interests of the child,
as the State may establish through the State
agency, or at the option of the State, through the
State agencies administering the State programs
funded under part A and title XXI;
‘‘(B) shall require the individual to supply
additional necessary information and appear at
interviews, hearings, and legal proceedings;
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‘‘(C) shall require the individual and the
child to submit to genetic tests pursuant to judi-
cial or administrative order;
‘‘(D) may request that the individual sign
a voluntary acknowledgment of paternity, after
notice of the rights and consequences of such an
acknowledgment, but may not require the indi-
vidual to sign an acknowledgment or otherwise
relinquish the right to genetic tests as a condi-
tion of cooperation and eligibility for assistance
under the State program funded under part A or
the State program under title XXI; and
‘‘(E) shall promptly notify the individual
and the State agency administering the State
program funded under part A and the State
agency administering the State program under
title XXI of each such determination, and if non-
cooperation is determined, the basis therefore.’’.
CHAPTER 5—PROGRAM ADMINISTRATION
AND FUNDING
SEC. 12341. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary
of Health and Human Services, in consultation with State
directors of programs under part D of title IV of the Social
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Security Act, shall develop a new incentive system to re-
place the system under section 458 of such Act. The new
system shall provide additional payments to any State
based on such State’s performance under such a program.
(b) CONFORMING AMENDMENTS
TO PRESENT SYS-
TEM.—Section 458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to families
with dependent children under a State plan approved
under part A of this title’’ and inserting ‘‘assistance
under a program funded under part A’’;
(2) in subsection (b)(1)(A), by striking ‘‘section
402(a)(26)’’ and inserting ‘‘section 407(a)(4)’’;
(3) in subsections (b) and (c)—
(A) by striking ‘‘AFDC collections’’ each
place it appears and inserting ‘‘title IV–A collec-
tions’’, and
(B) by striking ‘‘non-AFDC collections’’
each place it appears and inserting ‘‘non-title
IV–A collections’’; and
(4) in subsection (c), by striking ‘‘combined
AFDC/non-AFDC administrative costs’’ both places it
appears and inserting ‘‘combined title IV–A/non-title
IV–A administrative costs’’.
(c) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—
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(1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended 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)(2) (42 U.S.C. 652(g)(2)) is
amended by adding at the end the following new sen-
tence: ‘‘In meeting the 90 percent paternity establish-
ment requirement, a State may calculate either the
paternity establishment rate of cases in the program
funded under this part or the paternity establishment
rate of all out-of-wedlock births in the State.’’.
(4) 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
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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) by inserting ‘‘and securing support’’ be-
fore the period.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed under
subsection (a) and the amendments made by sub-
section (b) shall become effective on October 1, 1997,
except to the extent provided in subparagraph (B).
(B) APPLICATION OF SECTION 458.—Section 458
of the Social Security Act, as in effect on the day be-
fore the date of 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 re-
spect to calendar quarters beginning on or after the
date of the enactment of this Act.
SEC. 12342. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42
U.S.C. 654) is amended—
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(1) in paragraph (14), by striking ‘‘(14)’’ and
inserting ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as subpara-
graph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the follow-
ing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and re-
ports to the Secretary on the State program op-
erated under the State plan approved under this
part, including such information as may be nec-
essary to measure State compliance with Federal
requirements for expedited procedures, 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 ac-
complishment (and rates of improvement) with
respect to applicable performance indicators (in-
cluding IV–D paternity establishment percent-
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ages to the extent necessary for purposes of sec-
tions 452(g) and 458.’’.
(b) FEDERAL
ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmitted
by State agencies pursuant to section 454(15)(B) on
State program accomplishments with respect to per-
formance 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 additional
or alternative corrective actions, and technical assist-
ance; and
‘‘(C) conduct audits, in accordance with the Gov-
ernment auditing standards of the Comptroller Gen-
eral of the United States—
‘‘(i) at least once every 3 years (or more fre-
quently, 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, reliability,
and security of the data, and the accuracy of the
reporting systems, used in calculating perform-
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ance indicators under subsection (g) of this sec-
tion and section 458;
‘‘(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 Act.
SEC. 12343. 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
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establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
quirements of this part relating to expedited processes) to
be applied in following such procedures’’ before the semi-
colon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 12301(b), 12303(a),
12312(a), 12313(a), and 12333 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(28);
(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the following
new paragraph:
‘‘(30) provide that the State shall use the defini-
tions established under section 452(a)(5) in collecting
and reporting information as required under this
part.’’.
SEC. 12344. AUTOMATED DATA PROCESSING REQUIRE-
MENTS.
(a) REVISED REQUIREMENTS.—
(1) IN GENERAL.—Section 454(16) (42 U.S.C.
654(16)) is amended—
(A) by striking ‘‘, at the option of the
State,’’;
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(B) by inserting ‘‘and operation by the
State agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements
of section 454A’’ after ‘‘information retrieval sys-
tem’’;
(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) AUTOMATED DATA PROCESSING.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting
after section 454 the following new section:
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.
‘‘(a) IN GENERAL.—In order for a State to meet the
requirements of this section, the State agency administering
the State program under this part shall have in operation
a single statewide automated data processing and informa-
tion retrieval system which has the capability to perform
the tasks specified in this section with the frequency and
in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated system
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 INDICATORS.—
In order to enable the Secretary to determine the incentive
payments 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 estab-
lishment percentage 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 accu-
racy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integrity,
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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 safe-
guards 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 personnel
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 paragraph
(1).
‘‘(3) MONITORING
OF
ACCESS.—Routine mon-
itoring of access to and use of the automated system,
through methods such as audit trails and feedback
mechanisms, to guard against and promptly identify
unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—Procedures
to ensure that all personnel (including State and local
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agency staff and contractors) who may have access to
or be required to use confidential program data are
informed of applicable requirements and penalties
(including those in section 6103 of the Internal Reve-
nue Code of 1986), and are adequately trained in se-
curity procedures.
‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
authorized access to, or disclosure or use of, confiden-
tial data.’’.
(3) REGULATIONS.—The Secretary of Health and
Human Services shall prescribe final regulations for
implementation of section 454A of the Social Security
Act not later than 2 years after the date of the enact-
ment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by section
12303(a)(1) of this Act, is amended to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1997, which meets all re-
quirements of this part which were enacted on or
before the date of enactment of the Family Sup-
port Act of 1988, and
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SEC. 12353. NONLIABILITY FOR FINANCIAL INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE
CHILD SUPPORT ENFORCEMENT AGENCIES
IN CHILD SUPPORT CASES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal or State law, a financial institution shall
not be liable under any Federal or State law to any person
for disclosing any financial record of an individual to a
State child support enforcement agency attempting to estab-
lish, modify, or enforce a child support obligation of such
individual.
(b) PROHIBITION
OF DISCLOSURE
OF FINANCIAL
RECORD OBTAINED BY STATE CHILD SUPPORT ENFORCE-
MENT AGENCY.—A State child support enforcement agency
which obtains a financial record of an individual from a
financial institution pursuant to subsection (a) may dis-
close such financial record only for the purpose of, and to
the extent necessary in, establishing, modifying, or enforc-
ing a child support obligation of such individual.
(c) CIVIL DAMAGES
FOR UNAUTHORIZED DISCLO-
SURE.—
(1) DISCLOSURE
BY
STATE
OFFICER
OR
EM-
PLOYEE.—If any person knowingly, or by reason of
negligence, discloses a financial record of an individ-
ual in violation of subsection (b), such individual