117
except 
for 
an 
individual 
described 
in 
section
402(c)(2)(C)(ii).
‘‘SEC. 488. CASELOAD PARTICIPATION RATES.
‘‘(a) REQUIREMENT.—A State that operates a pro-
gram under this part shall achieve a participation rate for
the following fiscal years of not less than the following
percentage:
‘‘Fiscal year:
Percentage:
1997 ...................................................................................................
1998 ...................................................................................................
1999 ...................................................................................................
2000 ...................................................................................................
2001 ...................................................................................................
2002 ...................................................................................................
2003 or later ......................................................................................
‘‘(b) PARTICIPATION RATE DEFINED.—
‘‘(1) IN GENERAL.—As used in this subsection,
the term ‘participation rate’ means, with respect to
a State and a fiscal year, an amount equal to—
‘‘(A)(i) the average monthly number of
families receiving assistance that include an in-
dividual who, during the fiscal year, participate
in the State program established under this
part or part G or H; plus
‘‘(ii) the average monthly number of fami-
lies receiving assistance that include an individ-
ual working in unsubsidized employment for the
number 
of 
hours 
specified 
in 
section
481(a)(5)(B); plus
118
‘‘(iii) the average monthly number of fami-
lies receiving assistance subject to a penalty de-
scribed in section 402(c)(1) but who have not
been subject to such a penalty for more than
three months within the preceding 12-month
period; divided by
‘‘(B) the average monthly number of fami-
lies receiving assistance that include an individ-
ual not described in section 402(c)(2)(C)(ii) and
for whom a personal responsibility agreement is
in effect under section 403 during the fiscal
year.
‘‘(2) SPECIAL RULE.—For each of the first six
months after an individual ceases to receive assist-
ance under a State plan approved under part A by
reason 
of 
having 
become 
employed 
in 
an
unsubsidized job, the individual shall be considered
to be participating in the State program established
under this part for the purposes of subparagraph
(A), and to be an adult recipient of such assistance
for the purposes of subparagraph (B).
‘‘(c) STATE COMPLIANCE REPORTS.—Each State
that operates a program under this part for a fiscal year
shall submit to the Secretary a report on the participation
rate of the State for the fiscal year.
119
‘‘(d) EFFECT OF FAILURE TO MEET PARTICIPATION
RATES.—
‘‘(1) IN GENERAL.—If a State reports that the
State has failed to achieve the participation rate re-
quired by subsection (a) for the fiscal year, the Sec-
retary may make recommendations for changes in
the State programs established under this part and
part G or H. The State may elect to follow such rec-
ommendations, and shall demonstrate to the Sec-
retary how the State will achieve the required par-
ticipation rates.
‘‘(2) SECOND
CONSECUTIVE
FAILURE.—Not-
withstanding paragraph (1), if a State fails to
achieve the participation rate required by subsection
(a) for 2 consecutive fiscal years, the Secretary
may—
‘‘(A) require the State to make changes in
the State programs established under this part
and part G or H; and
‘‘(B) reduce by up to 5 percent the amount
otherwise payable to the State under section
413(a)(1).
‘‘SEC. 489. FEDERAL ROLE.
‘‘(a) APPROVAL OF STATE PLANS.—
120
‘‘(1) IN GENERAL.—Within 60 days after the
date a State submits to the Secretary a plan that
provides for the establishment and operation of a
Work First program that meets the requirements of
section 481, the Secretary shall approve the plan.
‘‘(2) AUTHORITY TO EXTEND APPROVAL DEAD-
LINE.—The 60-day deadline established in para-
graph (1) with respect to a State may be extended
in accordance with an agreement between the Sec-
retary and the State.
‘‘PART G—WORKFARE PROGRAM
‘‘SEC. 490. ESTABLISHMENT AND OPERATION OF PROGRAM.
‘‘(a) IN GENERAL.—A State that establishes a Work
First program under part F shall establish and carry out
either a workfare program that meets the requirements
of this part or a job placement voucher program under
part H.
‘‘(b) OBJECTIVE.—The objective of the workfare pro-
gram is for each program participant to find and hold a
full-time unsubsidized paid job, and for this goal to be
achieved in a cost-effective fashion.
‘‘(c) CASE MANAGEMENT TEAMS.—The State shall
assign to each program participant a case management
team that shall meet with the participant and assist the
participant to choose the most suitable workfare job under
121
subsection (e), (f), or (g) and to eventually obtain a full-
time unsubsidized paid job.
‘‘(d) PROVISION OF JOBS.—The State shall provide
each participant in the program with a community service
job that meets the requirements of subsection (e) or a sub-
sidized job that meets the requirements of subsection (f)
or (g).
‘‘(e) COMMUNITY SERVICE JOBS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3) and section 481(a)(5)(B)(ii),
each participant shall work for 20 hours per week
during fiscal years 1997 and 1998, not fewer than
25 hours per week during fiscal year 1999, and not
fewer than 30 hours thereafter in a community serv-
ice job, and shall be paid at a rate which is 100 per-
cent of the maximum amount of assistance that may
be provided under the State plan approved under
part A to a family of the same size and composition
with no income.
‘‘(2) EXCEPTION.—
‘‘(A) If the participant has obtained
unsubsidized part-time employment, the State
shall provide the participant with a part-time
community service job.
122
‘‘(B) If the State provides a participant a
part-time community service job under subpara-
graph (A), the State shall ensure that the par-
ticipant works for not fewer than the number of
hours specified in paragraph (1).
‘‘(3) WAGES
NOT
CONSIDERED
EARNED
IN-
COME.—Wages paid under a workfare program shall
not be considered to be earned income for purposes
of any provision of law.
‘‘(4) COMMUNITY SERVICE JOB DEFINED.—For
purposes of this section, the term ‘community serv-
ice job’ means—
‘‘(A) a job provided to a participant by the
State administering the State plan under part
A; or
‘‘(B) a job provided to a participant by any
other employer for which all or part of the
wages are paid by the State.
A State may provide or subsidize under the program any
job which the State determines to be appropriate.
‘‘(f) TEMPORARY SUBSIDIZED JOB CREATION.—A
State that establishes a workfare program under this part
may establish a program under this Act similar to the pro-
gram operated by the State of Oregon known as ‘JOBS
Plus’.
123
‘‘(g) WORK SUPPLEMENTATION PROGRAM.—
‘‘(1) IN GENERAL.—A State that establishes a
workfare program under this part may institute a
work supplementation program under which the
State, to the extent it considers appropriate, may re-
serve the sums that would otherwise be payable to
participants in the program as a community service
minimum wage and use the sums instead for the
purpose of providing and subsidizing private sector
jobs for the participants.
‘‘(2) EMPLOYER
AGREEMENT.—An employer
who provides a private sector job to a participant
under paragraph (1) shall agree to provide to the
participant an amount in wages equal to the poverty
threshold for a family of three.
‘‘(h) JOB SEARCH REQUIREMENT.—The State shall
require each participant to spend a minimum of 5 hours
per week on activities related to securing unsubsidized
full-time employment in the private sector.
‘‘(i) USE OF PLACEMENT COMPANIES.—A State that
establishes a workfare program under this part may enter
into contracts in accordance with section 483 with private
companies (whether operated for profit or not for profit)
for the placement of participants in the program in posi-
tions of full-time employment, preferably in the private
124
sector, for wages sufficient to eliminate the need of such
participants for cash assistance.
‘‘(j) MAXIMUM OF 3 COMMUNITY SERVICE JOBS.—
A program participant may not receive more than 3 com-
munity service jobs under the program.
‘‘PART H—JOB PLACEMENT VOUCHER PROGRAM
‘‘SEC. 495. JOB PLACEMENT VOUCHER PROGRAM.
‘‘A State that is not operating a workfare program
under part G shall establish and operate a job placement
voucher program under this part that meets the following
requirements:
‘‘(1) The program shall offer each program par-
ticipant a voucher which the participant may use to
obtain employment in the private sector.
‘‘(2) An employer who receives a voucher issued
under the program from an individual may redeem
the voucher at any time after the individual has been
employed by the employer for 6 months, unless an-
other employee of the employer was displaced by the
employment of the individual.
‘‘(3) Upon presentation of a voucher by an em-
ployer to the State agency responsible for the admin-
istration of the program, the State agency shall pay
to the employer an amount equal to 50 percent of
the total amount of assistance provided under the
125
State plan under part A to the family of which the
individual is a member for the most recent 12
months for which the family was eligible for such as-
sistance.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1108 of the Social Security Act (42
U.S.C. 1308) is amended—
(A) in subsection (a), by striking ‘‘or, in
the case of part A of title IV, section 403(k)’’;
and
(B) in subsection (d), by striking ‘‘(exclu-
sive of any amounts on account of services and
items to which, in the case of part A of such
title, section 403(k) applies)’’.
(2) Section 1902(a)(10)(A)(i)(I) of that Act (42
U.S.C. 1396a(a)(19)(A)(i)(I)) is amended—
(A) by striking ‘‘402(a)(37), 406(h), or’’;
and
(B) by striking ‘‘482(e)(6)’’ and inserting
‘‘486(f)’’.
(3) Section 1928(a)(1) of that Act (42 U.S.C.
1396s(a)(1)) is amended by striking ‘‘482(e)(6)’’
and inserting ‘‘486(f)’’.
(c) INTENT OF THE CONGRESS.—The Congress in-
tends for State activities under section 484 of the Social
126
Security Act (as added by section 121(a) of this Act) to
emphasize the use of the funds that would otherwise be
used to provide individuals with assistance under part A
of title IV of the Social Security Act to subsidize the wages
of such individuals in temporary jobs.
(d) SENSE OF THE CONGRESS.—It is the sense of
the Congress that States should focus the resources of the
program under part F of title IV of the Social Security
Act, as amended by this subtitle, on individuals who have
not attained 25 years of age in order to break the cycle
of welfare dependency.
(e) EFFECTIVE DATE.—This section takes effect Oc-
tober 1, 1996.
SEC. 122. REGULATIONS.
The Secretary of Health and Human Services shall
prescribe such regulations as may be necessary to imple-
ment the amendments made by this subtitle.
SEC. 123. APPLICABILITY TO STATES.
(a) STATE OPTION TO ACCELERATE APPLICABIL-
ITY.—If a State formally notifies the Secretary of Health
and Human Services that the State desires to accelerate
the applicability to the State of the amendments made by
this title, the amendments shall apply to the State on and
after such earlier date as the State may select; provided,
that only funding otherwise provided for grants to States
127
to carry out part F of title IV, as that part was in effect
on January 1, 1996, shall be available to States to carry
out parts F, G, and H of title IV before October 1, 1996.
(b) STATE OPTION TO DELAY APPLICABILITY UNTIL
WAIVERS EXPIRE.—The amendments made by this sub-
title, other than participation requirements under sections
481(a)(5)(B), 481(a)(6), and 488 of the Social Security
Act, shall not apply to areas in a State with respect to
which there is in effect a waiver issued under section 1115
of that Act for the State program established under part
A of title IV of that Act, until the waiver expires, if the
State formally notifies the Secretary of Health and
Human Services that the State desires to so delay such
effective date and the waiver’s terms and conditions have
been modified so that all cost comparisons reflect the
amendments made to part A of title IV of that Act. States
are subject to the funding provisions under parts A, F,
G, and H and the participation requirements under sec-
tions 481(a)(5)(B), 481(a)(6), and 488 of that Act.
SEC. 124. ONE TIME INCREASES IN WORK FIRST PROGRAM
FUNDS.
To the extent that the Congressional Budget Office
estimates that amendments made by subtitle A of this title
increase the sum of payments to States under section
413(a)(1) of the Social Security Act, title XIX of that Act,
128
and the Food Stamp Act of 1977 (excluding: (1) any ef-
fects from limitations on funding for activities authorized
under section 413(a)(3) of the Social Security Act, as
amended by this Act, (2) any savings resulting from the
State option under section 402(d)(1)(C) of the Social Se-
curity Act, as amended by this Act, and (3) any savings
resulting from section 416 of the Social Security Act, as
amended by this Act) by less than:
$170,000,000 in FY 1997,
$405,000,000 in FY 1998,
$635,000,000 in FY 1999,
$785,000,000 in FY 2000,
$775,000,000 in FY 2001 or,
$825,000,000 in FY 2002
then the amount(s) in section 413(a)(2)(C) of the Social
Security Act for such fiscal year(s) shall be adjusted up-
ward by such difference(s).
Subtitle D—Pregnancy And Family
Stability
SEC. 131. SUPERVISED LIVING ARRANGEMENTS FOR MI-
NORS.
(a) IN GENERAL.—Section 402(c) of the Social Secu-
rity Act, as amended by section 102 of this Act, is amend-
ed by adding at the end the following:
129
‘‘(8) SUPERVISED LIVING ARRANGEMENTS FOR
MINORS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), in the case of any individual
who is under age 18 and has never married,
and who has a needy child in his or her care
(or is pregnant and is eligible for temporary
employment assistance under the State plan)—
‘‘(i) such individual may receive such
assistance for the individual and such child
(or for herself in the case of a pregnant
woman) only if such individual and child
(or such pregnant woman) reside in a
place of residence maintained by a parent,
legal guardian, or other adult relative of
such individual as such parent’s, guard-
ian’s, or adult relative’s own home; and
‘‘(ii) such assistance (where possible)
shall be provided to the parent, legal
guardian, or other adult relative on behalf
of such individual and child; and
‘‘(B) ALTERNATIVE
APPROPRIATE
AR-
RANGEMENTS.—
(i) In the case of an individual de-
scribed in clause (ii)—
130
‘‘(I) the State agency shall assist
such individual in locating an appro-
priate adult-supervised supportive liv-
ing arrangement, taking into consider-
ation the needs and concerns of the
individual, unless the State agency de-
termines that the individual’s current
living arrangement is appropriate, and
thereafter shall require that the indi-
vidual (and child, if any) reside in
such living arrangement as a condi-
tion of the continued receipt of assist-
ance under the plan (or in an alter-
native 
appropriate 
arrangement,
should circumstances change and the
current arrangement cease to be ap-
propriate), or
‘‘(II) if the State agency is un-
able, after making diligent efforts, to
locate any such appropriate living ar-
rangement, the State agency shall
provide for comprehensive case man-
agement, monitoring, and other social
services consistent with the best inter-
ests of the individual (and child) while
131
living independently (as determined by
the State agency).
‘‘(ii) For purposes of clause (i), an in-
dividual is described in this clause if—
‘‘(I) such individual has no par-
ent or legal guardian who is living and
whose whereabouts are known;
‘‘(II) no living parent or legal
guardian of such individual allows the
individual to live in the home of such
parent or guardian;
‘‘(III) the State agency deter-
mines that the physical or emotional
health of such individual or any needy
child of the individual would be jeop-
ardized if such individual and such
needy child lived in the same resi-
dence with such individual’s own par-
ent or legal guardian; or
‘‘(IV) the State agency otherwise
determines (in accordance with regu-
lations issued by the Secretary) that it
is in the best interest of the needy
child to waive the requirement of sub-
132
paragraph (A) with respect to such in-
dividual.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) takes effect in the same manner as the
amendment made by section 102 takes effect.
SEC. 132. NATIONAL CLEARINGHOUSE ON ADOLESCENT
PREGNANCY.
(a) IN GENERAL.—Title XX of the Social Security
Act (42 U.S.C. 1397–1397f), is amended by adding at the
end the following:
‘‘SEC. 2008. NATIONAL CLEARINGHOUSE ON ADOLESCENT
PREGNANCY.
‘‘(a) NATIONAL CLEARINGHOUSE ON ADOLESCENT
PREGNANCY.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish, through grant or contract, a national center
for the collection and provision of programmatic in-
formation and technical assistance that relates to
adolescent pregnancy prevention programs, to be
known as the ‘National Clearinghouse on Adolescent
Pregnancy Prevention Programs’.
‘‘(2) FUNCTIONS.—The national center estab-
lished under paragraph (1) shall serve as a national
information and data clearinghouse, and as a train-
ing, technical assistance, and material development
133
source for adolescent pregnancy prevention pro-
grams including, but not limited to, abstinence pro-
grams. Such center shall—
‘‘(A) develop and maintain a system for
disseminating information on all types of ado-
lescent pregnancy prevention programs, includ-
ing abstinence programs, and on the state of
adolescent pregnancy prevention program devel-
opment, including information concerning the
most effective model programs;
‘‘(B) develop and sponsor a variety of
training institutes and curricula for adolescent
pregnancy prevention program staff, including
abstinence education;
‘‘(C) identify model programs representing
the various types of adolescent pregnancy pre-
vention programs;
‘‘(D) develop technical assistance materials
and activities to assist other entities in estab-
lishing and improving adolescent pregnancy
prevention programs, including abstinence edu-
cation;
‘‘(E) develop networks of adolescent preg-
nancy prevention programs for the purpose of
sharing and disseminating information; and
134
‘‘(F) conduct such other activities as the
responsible Federal officials find will assist in
developing and carrying out programs or activi-
ties to reduce adolescent pregnancy.
‘‘(b) FUNDING.—There are authorized to be appro-
priated $6 million for each of fiscal years 1997 through
2001 to carry out this section.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section become effective October 1, 1996.
SEC. 133. REQUIRED COMPLETION OF HIGH SCHOOL OR
OTHER TRAINING FOR TEENAGE PARENTS.
(a) IN GENERAL.—Section 403(b)(1)(D), as added
by section 102 of this Act, is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and
(2) by adding at the end the following:
‘‘(ii) in the case of a client who is a custo-
dial or expectant parent who is under age 18
(or age 19, at the option of the State), has not
successfully completed a high school education
(or its equivalent), and is required to partici-
pate in the Work First program (including an
individual who would otherwise be exempt from
participation in the program), shall provide
that—
‘‘(I) such parent shall participate in—
135
‘‘(aa) educational activities di-
rected toward the attainment of a
high school diploma or its equivalent
on a full-time (as defined by the edu-
cational provider) basis; or
‘‘(bb) an alternative educational
or training program on a full-time (as
defined by the provider) basis; and
‘‘(II) child care will be provided in ac-
cordance with section 114 with respect to
the family under the Child Care and Devel-
opment Block Grant Act of 1990.’’.
(b) STATE OPTION TO PROVIDE ADDITIONAL INCEN-
TIVES AND PENALTIES TO ENCOURAGE TEEN PARENTS
TO COMPLETE HIGH SCHOOL
AND PARTICIPATE
IN
PARENTING ACTIVITIES.—
(1) STATE
PLAN.—Section 403(b)(1)(D), as
amended by subsection (a) of this section, is amend-
ed further by adding at the end the following:
‘‘(iii) at the option of the State, may
provide that the client who is a custodial
parent or pregnant woman who is under
age 19 (or age 21, at the option of the
State) shall participate in a program of
monetary incentives and penalties which—
136
‘‘(I) may, at the option of the
State, require full-time participation
by such custodial parent or pregnant
woman in secondary school or equiva-
lent educational activities, or partici-
pation in a course or program leading
to a skills certificate found appro-
priate 
by 
the 
State 
agency 
or
parenting education activities (or any
combination of such activities and sec-
ondary education);
‘‘(II) shall require that the needs
of such custodial parent or pregnant
woman be reviewed and the program
assure that, either in the initial devel-
opment or revision of such individual’s
personal 
responsibility 
agreement,
there will be included a description of
the services that will be provided to
the client and the way in which the
program and service providers will co-
ordinate with the educational or skills
training activities in which the client
is participating;
137
‘‘(III) shall provide monetary in-
centives (to be treated as assistance
under the State plan) for more than
minimally acceptable performance of
required educational activities;
‘‘(IV) 
shall 
provide 
penalties
(which may be those required by sec-
tion 402(c)(1)(C) or, with the ap-
proval of the Secretary, other mone-
tary penalties that the State finds will
better achieve the objectives of the
program) for less than minimally ac-
ceptable performance of required ac-
tivities;
‘‘(V) shall provide that when a
monetary incentive is payable because
of the more than minimally acceptable
performance of required educational
activities by a custodial parent or
pregnant woman, the incentive be
paid directly to the individual, regard-
less of whether the State agency
makes payment of assistance under
the State plan directly to the individ-
ual; and
138
‘‘(VI) for purposes of any other
Federal or Federally assisted program
based on need, shall not consider any
monetary incentive paid under the
State plan as income in determining a
family’s eligibility for or amount of
benefits under such program, and if
assistance is reduced by reason of a
penalty under this clause, such other
program shall treat the family in-
volved as if no such penalty has been
applied.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section take effect in the same manner as the amend-
ment made by section 102 takes effect.
SEC. 134. SECOND CHANCE HOMES.
(a) IN GENERAL.—Section 402(c) of the Social Secu-
rity Act, as amended by sections 102 and 131 of this Act,
is amended by adding after paragraph (8):
‘‘(9) SECOND CHANCE HOMES.—
‘‘(A) IN GENERAL.—States may use funds
available under section 413(a)(2)(B) for the es-
tablishment, operation, and support of second
chance group homes for custodial parents under
139
age 18 (or age 19, at the option of the State)
and their children.
‘‘(B) DEFINITION
OF
SECOND
CHANCE
HOME.—For purposes of this section, the term
‘second chance home’ means an entity that pro-
vides custodial parents under age 18 (or age
19, at the option of the State) and their chil-
dren with a supportive and supervised living ar-
rangement in which the parents are required to
learn parenting skills, including child develop-
ment, family budgeting, health and nutrition,
and other skills to promote their long-term eco-
nomic independence and the well-being of their
children. A second chance home also may serve
as a network center for other supportive serv-
ices that are available in the community.
‘‘(C) TECHNICAL
ASSISTANCE.—A State
may use a portion of the funds described in
subparagraph (A) to purchase technical assist-
ance from public or private entities if the State
determines that such assistance is required in
developing, implementing, or administering the
program funded under this section.
‘‘(D) LOCAL INVOLVEMENT.—Each State
shall seek local involvement from the commu-
140
nity in any area in which a second chance home
receiving funds to be expended under this para-
graph is to be established. When providing
funds to be expended under this paragraph,
each State shall evaluate the community’s com-
mitment to the establishment and planning of
the home.
‘‘(E) LIMITATIONS
ON
THE
USE
OF
FUNDS.—
‘‘(i) CONSTRUCTION.—Except as pro-
vided in clause (ii), expenditures author-
ized under this paragraph and section
413(a)(2)(B)(i)(V) may not be used by the
State, or any person with whom the State
makes arrangements to carry out the pur-
poses of this section, for the purchase or
improvement of land, or the purchase, con-
struction, 
or 
permanent 
improvement
(other than minor remodeling) of any
building or other facility.
‘‘(ii) WAIVER.—The Secretary may
waive the limitation in clause (i) upon the
State’s request if the Secretary finds that
the request describes extraordinary cir-
cumstances to justify such a waiver and
141
that permitting the waiver would contrib-
ute to the State’s ability to carry out the
purposes of this section.
‘‘(F) RECEIPT OF PAYMENTS BY SECOND
CHANCE HOMES.—Section 402(c)(8)(A)(ii) (as
added by section 131(a) of the Work First and
Personal Responsibility Act of 1996), is amend-
ed by striking ‘or other adult relative’ and in-
serting ‘other adult relative, or second chance
home described under paragraph (9) of this
subsection’.’’.
(b) FUNDING.—Section 413(a)(2)(B)(i) of the Social
Security Act, as added by section 102 of this Act, is
amended by adding at after subclause (IV) the following
new subclause:
‘‘(V) SECOND CHANCE HOMES.—Costs
of establishing and operating Second
Chance Homes under section 402(a)(9).’’.
(c) RECOMMENDATIONS ON USE OF GOVERNMENT
SURPLUS PROPERTY.—Not later than 6 months after the
date of the enactment of this Act, after consulting with
the Secretary of Defense, the Secretary of Housing and
Urban Development, and the Administrator of the General
Services Administration, the Secretary of Health and
Human Services shall submit recommendations to the
142
Congress on the extent to which surplus properties of the
United States Government may be used for the establish-
ment of second chance homes receiving funds under sec-
tion 413 of the Social Security Act, as amended by this
section.
(d) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) take effect October 1, 1996.
TITLE II—CHILD SUPPORT
ENFORCEMENT
Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 201. 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 new paragraph:
‘‘(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
143
‘‘(I) assistance is provided under
the State program funded under part
A of this title,
‘‘(II) benefits or services for fos-
ter care maintenance and adoption as-
sistance are provided under the State
program funded under part B of this
title, or
‘‘(III) medical assistance is pro-
vided under the State plan approved
under title XIX,
unless the State agency administering the
plan determines (in accordance with para-
graph (29)) that it is against the best in-
terests of the child to do so; and
‘‘(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)—
144
(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 submit-
ting 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
CEASING TO RECEIVE ASSISTANCE UNDER THE STATE
145
PROGRAM 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 follow-
ing 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
services are furnished under the plan, except that an
application 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
amended by 
striking 
‘‘454(6)’’ 
and 
inserting
‘‘454(4)’’.
146
(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)’’.
SEC. 202. DISTRIBUTION OF PAYMENTS.
(a) DISTRIBUTIONS THROUGH STATE CHILD SUP-
PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE
RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is
amended—
(1) in subparagraph (A)—
(A) by striking ‘‘section 402(a)(26) is ef-
fective,’’ and inserting ‘‘section 403(b)(1)(E)(i)
is effective, except as otherwise specifically pro-
vided in section 464 or 466(a)(3),’’; and
(B) by striking ‘‘except that’’ and all that
follows through the semicolon; and
(2) in subparagraph (B), by striking ‘‘, except’’
and all that follows through ‘‘medical assistance’’.
147
(b) DISTRIBUTION TO A FAMILY CURRENTLY RE-
CEIVING TEMPORARY EMPLOYMENT ASSISTANCE.—Sec-
tion 457 (42 U.S.C. 657) is amended—
(1) by striking subsection (a) and redesignating
subsection (b) as subsection (a);
(2) in subsection (a) (as so redesignated)—
(A) in the matter preceding paragraph (2),
to read as follows:
‘‘(a) IN THE CASE OF A FAMILY RECEIVING TEA.—
Amounts subject to section 1912 collected under this part
during any month as support of a child who is receiving
assistance under part A (or a parent or caretaker relative
of such a child) shall (except in the case of a State exercis-
ing the option under subsection (b)) be distributed as fol-
lows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(d)(2)(C)
shall be taken from each of—
‘‘(A) the amounts received in a month
which represent payments for that month; and
‘‘(B) the amounts received in a month
which represent payments for a prior month
which were made by the absent parent in that
prior month;
148
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;’’;
(B) in paragraph (4), by striking ‘‘or (B)’’
and all that follows through the period and in-
serting ‘‘; then (B) from any remainder,
amounts equal to arrearages of such support
obligations assigned, pursuant to part A, to any
other State or States shall be paid to such
other State or States and used to pay any such
arrearages (with appropriate reimbursement of
the Federal Government to the extent of its
participation in the financing); and then (C)
any remainder shall be paid to the family.’’; and
(3) by inserting after subsection (a) (as so re-
designated) the following new subsection:
‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM-
ILY RECEIVING TEA.—In the case of a State electing the
option under this subsection, amounts collected as de-
scribed in subsection (a) that are not subject to section
1912 shall be distributed as follows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(d)(2)(C)
shall be taken from each of—
149
‘‘(A) the amounts received in a month
which represent payments for that month; and
‘‘(B) the amounts received in a month
which represent payments for a prior month
which were made by the absent parent in that
prior month;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;
‘‘(2) second, from any remainder, amounts
equal to the balance of support owed for the current
month shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned,
pursuant to part A, to the State making the collec-
tion shall be retained and used by such State to pay
any such arrearages (with appropriate reimburse-
ment of the Federal Government to the extent of its
participation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed, pursuant to part A, to any other State or
States shall be paid to such other State or States
and used to pay any such arrearages (with appro-
150
priate reimbursement of the Federal Government to
the extent of its participation in the financing); and
‘‘(5) fifth, any remainder shall be paid to the
family.’’.
(c) DISTRIBUTION TO A FAMILY NOT RECEIVING
TEA.—Section 457(c) (42 U.S.C.657(c)) is amended to
read as follows:
‘‘(c) DISTRIBUTIONS IN CASE OF FAMILY NOT RE-
CEIVING TEA.—Amounts that are not subject to section
1912 collected by a State agency under this part during
any month as support of a child who is not receiving as-
sistance under part A (or of a parent or caretaker relative
of such a child) shall (subject to the remaining provisions
of this section) be distributed as follows:
‘‘(1) first, amounts equal to the total of such
support owed for such month shall be paid to the
family;
‘‘(2) second, from any remainder, amounts
equal to arrearages of such support obligations that
have not been assigned to the State for months dur-
ing which such child did not receive assistance under
part A shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned to
the State making the collection pursuant to part A
151
shall be retained and used by such State to pay any
such arrearages (with appropriate reimbursement of
the Federal Government to the extent of its partici-
pation in the financing); and
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed to any other State pursuant to part A shall
be paid to such other State or States, and used to
pay such arrearages, in the order in which such ar-
rearages accrued (with appropriate reimbursement
of the Federal Government to the extent of its par-
ticipation in the financing).’’.
(d) DISTRIBUTION TO A CHILD RECEIVING ASSIST-
ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.
657(d)) is amended, in the matter preceding paragraph
(1), by striking ‘‘Notwithstanding the preceding provisions
of this section, amounts’’ and inserting the following:
‘‘(d) DISTRIBUTIONS IN THE CASE OF A CHILD RE-
CEIVING ASSISTANCE UNDER TITLE IV–E.—Amounts’’.
(e) REGULATIONS.—The Secretary of Health and
Human Services shall promulgate regulations under part
A of title IV of the Social Security Act, establishing stand-
ards applicable to the States electing the alternative for-
mula under section 457(b) of such Act for distribution of
collections on behalf of families receiving temporary em-
152
ployment assistance, designed to minimize irregular
monthly payments to such families.
(f) CONFORMING AMENDMENTS CONCERNING COL-
LECTION OF CHILD SUPPORT ARREARAGES THROUGH IN-
COME TAX REFUND OFFSET.—
(1) Section 6402(c) of the Internal Revenue
Code of 1986 is amended by striking the third sen-
tence after ‘‘past due support has been paid to the
State’’.
(2) Section 6402(d)(2) of such Code is amend-
ed in the first sentence by striking ‘‘after’’ and in-
serting ‘‘before’’ and by striking ‘‘with respect to
past-due support collected pursuant to an assign-
ment under section 402(a)(26) of the Social Security
Act and’’.
(3) Section 464(a) (42 U.S.C. 664) is amend-
ed—
(A) by striking ‘‘(a)’’ and inserting ‘‘(a)
OFFSET AUTHORIZED.—’’;
(B) in paragraph (1)—
(i) in the first sentence, by striking
‘‘which has been assigned to such State
pursuant to section 402(a)(26) or section
471(a)(17)’’; and
153
(ii) in the second sentence, by striking
‘‘in accordance with section 457(b)(4) or
(d)(3)’’ and inserting ‘‘as provided in para-
graph (2)’’;
(C) by amending paragraph (2) to read as
follows:
‘‘(2) The State agency shall distribute amounts
paid by the Secretary of the Treasury pursuant to
paragraph (1)—
‘‘(A) in accordance with section 457(a)(4)
or (d)(3), in the case of past-due support as-
signed to a State under part A of title IV of the
Social Security Act; and
‘‘(B) to or on behalf of the child to whom
the support was owed, in the case of past-due
support not so assigned.’’; and
(D) in paragraph (3)—
(i) by striking ‘‘or (2)’’ each place it
appears; and
(ii) in subparagraph (B), by striking
‘‘under paragraph (2)’’ and inserting ‘‘on
account of past-due support described in
paragraph (2)(B)’’;
(4) Section 464(b) is amended—
154
(A) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)
REGULATIONS.—’’; and
(B) by striking paragraph (2).
(5) Section 464(c) is amended—
(A) by striking ‘‘(c)(1) Except as provided
in paragraph (2), as’’ and inserting ‘‘(c) DEFI-
NITION.—As’’; and
(B) by striking paragraphs (2) and (3).
(g) CLERICAL
AMENDMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) in paragraph (11)—
(A) by striking ‘‘(11)’’ and inserting
‘‘(11)(A)’’; and
(B) by inserting after the semicolon ‘‘and’’;
and
(2) by redesignating paragraph (12) as sub-
paragraph (B) of paragraph (11).
(h) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by
this section become effective on October 1, 1996.
(2) FAMILY NOT RECEIVING TEA.—The amend-
ments made by subsections (c) and (f)(3), (4), and
(5) become effective on October 1, 1999.
(3) SPECIAL RULES.—
155
(A) APPLICABILITY.—A State may elect to
have the amendments made by any subsection
of this section become effective only with re-
spect to child support cases beginning on or
after the effective date of such subsection.
(B) DELAYED IMPLEMENTATION.—A State
may elect to have the amendments made by this
section (other than subsections (c)and (f)) be-
come effective on a date later than October 1,
1996, which date shall coincide with the oper-
ation of the single statewide automated data
processing and information retrieval system re-
quired by section 454A of the Social Security
Act (as added by section 244(a)(2) of this Act)
and the State disbursement unit required by
section 454B of the Social Security Act (as
added by section 212(b) of this Act).
SEC. 203. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 201(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
156
(3) by adding after paragraph (25) the follow-
ing 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 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
in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) becomes effective on October 1, 1997.
157
SEC. 204. RIGHTS TO NOTIFICATION.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 202(g) of this Act, is amended by in-
serting after paragraph (11) the following new paragraph:
‘‘(12) provide for the establishment of proce-
dures 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 modified; and
‘‘(B) with a copy of any order establishing
or modifying a child support obligation, or (in
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 de-
termination;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) becomes effective on October 1, 1997.
158
Subtitle B—Locate and Case
Tracking
SEC. 211. STATE CASE REGISTRY.
Section 454A, as added by section 244(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 registries of support orders through an
automated information network, subject to this sec-
tion.
‘‘(3) USE
OF
STANDARDIZED
DATA
ELE-
MENTS.—Such records shall use standardized data
elements for both parents (such as names, social se-
159
curity numbers and other uniform identification
numbers, dates of birth, and case identification
numbers), and contain such other information (such
as information 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
‘‘(E) the amount of any lien imposed with
respect to the order pursuant to section
466(a)(4).
160
‘‘(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-
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
161
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
EMPLOYMENT
ASSISTANCE
AND MEDICAID AGENCIES.—Exchanging information
with State agencies (of the State and of other
States) administering programs under part A, pro-
grams under State plans under title XIX, and other
programs designated by the Secretary, as necessary
to perform State agency responsibilities under this
part and under such programs.
162
‘‘(4) INTRASTATE AND INTERSTATE INFORMA-
TION 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. 212. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 201(b) and 203(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 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-
tractors reporting directly to the State agency
to—
163
‘‘(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 245(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 collection and disbursement of payments under
support orders—
‘‘(A) in all cases being enforced by the
State pursuant to section 454(4); and
‘‘(B) in all cases not being enforced by the
State under this part in which the support
164
order is initially issued in the State on or after
January 1, 1994, and in which the wages of the
absent parent are subject to withholding pursu-
ant 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 coopera-
tive agreement), or (to the extent appropriate)
by a contractor responsible directly to the State
agency; and
‘‘(B) except in cases described in para-
graph (1)(B), in coordination with the auto-
mated 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, if the Secretary agrees that the system will
not cost more nor take more time to establish or op-
erate than a centralized system. In addition, employ-
ers shall be given 1 location to which income with-
holding is sent.
165
‘‘(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—
‘‘(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.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the State disbursement unit shall distrib-
ute all amounts payable under section 457(a) within
2 business days after receipt from the employer or
other source of periodic income, if sufficient infor-
mation identifying the payee is provided.
166
‘‘(2) PERMISSIVE
RETENTION
OF
ARREAR-
AGES.—The State disbursement unit may delay the
distribution of collections toward arrearages until
the resolution of any timely appeal with respect to
such arrearages.
‘‘(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 245(a)(2) and as amended by section 211
of this Act, is amended by adding at the end the following
new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
‘‘(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—
167
‘‘(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)) if payments are not time-
ly made.
‘‘(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 become effective on October 1, 1998.
SEC. 213. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 201(b), 203(a) and
212(a) of this Act, is amended—
168
(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 follow-
ing 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.—
‘‘(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
directory (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