735
Title IX, Subtitle D
‘‘(A) every child support order established
or modified in the State on or after October 1,
1998, is recorded in the central case registry
established in accordance with section 454A(e);
and
‘‘(B) child support payments are collected
through the centralized collections unit estab-
lished in accordance with section 454B—
‘‘(i) on and after October 1, 1998,
under each order subject to wage withhold-
ing under section 466(b); and
‘‘(ii) on and after October 1, 1999,
under each other order required to be re-
corded in such central case registry under
this paragraph or section 454A(e), except
as provided in subparagraph (C); and
‘‘(C)(i) parties subject to a child support
order described in subparagraph (B)(ii) may
opt out of the procedure for payment of support
through the centralized collections unit (but not
the procedure for inclusion in the central case
registry) by filing with the State agency a writ-
ten agreement, signed by both parties, to an
alternative payment procedure; and
736
Title IX, Subtitle D
‘‘(ii) an agreement described in clause (i)
becomes void whenever either party advises the
State agency of an intent to vacate the agree-
ment.’’.
(b) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) provide that such State will undertake—
‘‘(A) to provide appropriate services under
this part to—
‘‘(i) each child with respect to whom
an assignment is effective under section
403(b)(1)(E)(i), 471(a)(17), or 1912 (ex-
cept in cases where the State agency deter-
mines, in accordance with paragraph (25),
that it is against the best interests of the
child to do so); and
‘‘(ii) each child not described in clause
(i)—
‘‘(I) with respect to whom an in-
dividual applies for such services; and
‘‘(II) (on and after October 1,
1998) each child with respect to
whom a support order is recorded in
737
Title IX, Subtitle D
the central State case registry estab-
lished under section 454A, regardless
of whether application is made for
services under this part; and
‘‘(B) to enforce the support obligation es-
tablished with respect to the custodial parent of
a child described in subparagraph (A) unless
the parties to the order which establishes the
support obligation have opted, in accordance
with section 466(a)(12)(C), for an alternative
payment procedure.’’; and
(2) in paragraph (6)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) services under the State plan shall be
made available to nonresidents on the same
terms as to residents;’’;
(B) in subparagraph (B)—
(i) by inserting ‘‘on individuals not re-
ceiving assistance under part A’’ after
‘‘such services shall be imposed’’; and
(ii) by inserting ‘‘but no fees or costs
shall be imposed on any absent or custo-
dial parent or other individual for inclusion
738
Title IX, Subtitle D
in the central State registry maintained
pursuant to section 454A(e)’’; and
(C) in each of subparagraphs (B), (C), and
(D)—
(i) by indenting such subparagraph
and aligning its left margin with the left
margin of subparagraph (A); and
(ii) by striking the final comma and
inserting a semicolon.
(c) CONFORMING AMENDMENTS.—
(1) 
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)’’.
(2) Section 454(23) (42 U.S.C. 654(23)) is
amended, effective October 1, 1998, by striking ‘‘in-
formation as to any application fees for such services
and’’.
(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 ‘‘or (6)’’.
739
Title IX, Subtitle D
SEC. 9402. 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 effec-
tive,’’ 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’’.
(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 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
740
Title IX, Subtitle D
(except in the case of a State exercising the option under
subsection (b)) 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—
‘‘(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;’’;
(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
743
Title IX, Subtitle D
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 for
months during which such child did not receive as-
sistance 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
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).’’.
744
Title IX, Subtitle D
(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 CASE OF A CHILD RECEIV-
ING 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 States electing the alternative formula
under section 457(b) of such Act for distribution of collec-
tions on behalf of families receiving temporary employ-
ment assistance, designed to minimize irregular monthly
payments to such families.
(f) 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).
(g) EFFECTIVE DATES.—
745
Title IX, Subtitle D
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by
this section shall become effective on October 1,
1996.
(2) FAMILY NOT RECEIVING TEA.—The amend-
ment made by subsection (c) shall become effective
on October 1, 1999.
(3) SPECIAL RULES.—
(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 subsection (c)) become ef-
fective on a date later than October 1, 1996,
which date shall coincide with the operation of
the single statewide automated data processing
and information retrieval system required by
section 454A of the Social Security Act (as
added by section 9415(a)(2) of this Act) and
the State centralized collection unit required by
section 454B of the Social Security Act (as
added by section 9422(b) of this Act).
746
Title IX, Subtitle D
SEC. 9403. DUE PROCESS RIGHTS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 9402(f) of this Act, is amended by
inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for procedures to ensure that—
‘‘(A) individuals who are applying for or
receiving services under this part, or are parties
to cases in which services are being provided
under this part—
‘‘(i) receive notice of all proceedings in
which support obligations might be estab-
lished or modified; and
‘‘(ii) receive a copy of any order estab-
lishing or modifying a child support obliga-
tion, or (in the case of a petition for modi-
fication) a notice of determination that
there should be no change in the amount
of the child support award, within 14 days
after issuance of such order or determina-
tion;
‘‘(B) individuals applying for or receiving
services under this part have access to a fair
hearing that meets standards established by the
Secretary and ensures prompt consideration
and resolution of complaints (but the resort to
747
Title IX, Subtitle D
such procedure shall not stay the enforcement
of any support order); and
‘‘(C) individuals adversely affected by the
establishment or modification of (or, in the case
of a petition for modification, the determination
that there should be no change in) a child sup-
port order shall be afforded not less than 30
days after the receipt of the order or determina-
tion to initiate proceedings to challenge such
order or determination;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
SEC. 9404. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 454) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing:
‘‘(25) will have in effect safeguards applicable
to all sensitive and confidential information handled
by the State agency designed to protect the privacy
rights of the parties, including—
748
Title IX, Subtitle D
‘‘(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 on the release of infor-
mation on the whereabouts of one party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions on the release of infor-
mation on the whereabouts of one 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
subsection (a) shall become effective on October 1, 1997.
CHAPTER 2—PROGRAM ADMINISTRATION
AND FUNDING
SEC. 9411. FEDERAL MATCHING PAYMENTS.
(a) INCREASED BASE MATCHING RATE.—Section
455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as
follows:
‘‘(2) The applicable percent for a quarter for
purposes of paragraph (1)(A) is—
750
Title IX, Subtitle D
support enforcement programs which perform in an effec-
tive manner, the Federal matching rate for payments to
a State under section 455(a)(1)(A), for each fiscal year
beginning on or after October 1, 1998, shall be increased
by a factor reflecting the sum of the applicable incentive
adjustments (if any) determined in accordance with regu-
lations under this section with respect to Statewide pater-
nity establishment and to overall performance in child sup-
port enforcement.
‘‘(2) STANDARDS.—(A) IN GENERAL.—The Sec-
retary shall specify in regulations—
‘‘(i) the levels of accomplishment, and rates of
improvement as alternatives to such levels, which
States must attain to qualify for incentive adjust-
ments under this section; and
‘‘(ii) the amounts of incentive adjustment that
shall be awarded to States achieving specified ac-
complishment or improvement levels, which amounts
shall be graduated, ranging up to—
‘‘(I) 5 percentage points, in connection
with Statewide paternity establishment; and
‘‘(II) 10 percentage points, in connection
with overall performance in child support en-
forcement.
751
Title IX, Subtitle D
‘‘(B) LIMITATION.—In setting performance stand-
ards pursuant to subparagraph (A)(i) and adjustment
amounts pursuant to subparagraph (A)(ii), the Secretary
shall ensure that the aggregate number of percentage
point increases as incentive adjustments to all States do
not exceed such aggregate increases as assumed by the
Secretary in estimates of the cost of this section as of
June 1995, unless the aggregate performance of all States
exceeds the projected aggregate performance of all States
in such cost estimates.
‘‘(3) DETERMINATION
OF
INCENTIVE
ADJUST-
MENT.—The Secretary shall determine the amount (if
any) of incentive adjustment due each State on the basis
of the data submitted by the State pursuant to section
454(15)(B) concerning the levels of accomplishment (and
rates of improvement) with respect to performance indica-
tors specified by the Secretary pursuant to this section.
‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE ADJUST-
MENT.—The total percentage point increase determined
pursuant to this section with respect to a State program
in a fiscal year shall apply as an adjustment to the appli-
cable percent under section 455(a)(2) for payments to
such State for the succeeding fiscal year.
‘‘(5) RECYCLING OF INCENTIVE ADJUSTMENT.—A
State shall expend in the State program under this part
752
Title IX, Subtitle D
all funds paid to the State by the Federal Government
as a result of an incentive adjustment under this section.
‘‘(b) MEANING OF TERMS.—For purposes of this sec-
tion—
‘‘(1) the term ‘Statewide paternity establish-
ment percentage’ means, with respect to a fiscal
year, the ratio (expressed as a percentage) of—
‘‘(A) the total number of out-of-wedlock
children in the State under one year of age for
whom paternity is established or acknowledged
during the fiscal year, to
‘‘(B) the total number of children born out
of wedlock in the State during such fiscal year;
and
‘‘(2) the term ‘overall performance in child sup-
port enforcement’ means a measure or measures of
the effectiveness of the State agency in a fiscal year
which takes into account factors including—
‘‘(A) the percentage of cases requiring a
child support order in which such an order was
established;
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
753
Title IX, Subtitle D
‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations.’’.
(b) ADJUSTMENT OF PAYMENTS UNDER PART D OF
TITLE IV.—Section 455(a)(2) (42 U.S.C. 655(a)(2)), as
amended by section 9411(a) of this Act, is amended—
(1) by striking the period at the end of sub-
paragraph (C)(ii) and inserting a comma; and
(2) by adding after and below subparagraph
(C), flush with the left margin of the subsection, the
following:
‘‘increased by the incentive adjustment factor (if any) de-
termined by the Secretary pursuant to section 458.’’.
(c) CONFORMING AMENDMENTS.—Section 454(22)
(42 U.S.C. 654(22)) is amended—
(1) by striking ‘‘incentive payments’’ the first
place it appears and inserting ‘‘incentive adjust-
ments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
(d) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—(1) Section 452(g)(1) (42 U.S.C.
754
Title IX, Subtitle D
652(g)(1)) is amended in the matter preceding subpara-
graph (A) by inserting ‘‘its overall performance in child
support enforcement is satisfactory (as defined in section
458(b) and regulations of the Secretary), and’’ after
‘‘1994,’’.
(2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended—
(A) in subparagraph (A), in the matter preced-
ing clause (i)—
(i) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(ii) by striking ‘‘(or all States, as the case
may be)’’;
(B) in subparagraph (A)(i), by striking ‘‘during
the fiscal year’’;
(C) in subparagraph (A)(ii)(I), by striking ‘‘as
of the end of the fiscal year’’ and inserting ‘‘in the
fiscal year or, at the option of the State, as of the
end of such year’’;
(D) in subparagraph (A)(ii)(II), by striking ‘‘or
(E) as of the end of the fiscal year’’ and inserting
‘‘in the fiscal year or, at the option of the State, as
of the end of such year’’;
(E) in subparagraph (A)(iii)—
755
Title IX, Subtitle D
(i) by striking ‘‘during the fiscal year’’;
and
(ii) by striking ‘‘and’’ at the end; and
(F) in the matter following subparagraph (A)—
(i) by striking ‘‘who were born out of wed-
lock during the immediately preceding fiscal
year’’ and inserting ‘‘born out of wedlock’’;
(ii) by striking ‘‘such preceding fiscal
year’’ both places it appears and inserting ‘‘the
preceding fiscal year’’; and
(iii) by striking ‘‘or (E)’’ the second place
it appears.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A), as redesignated, by
striking ‘‘the percentage of children born out-of-wed-
lock in the State’’ and inserting ‘‘the percentage of
children in the State who are born out of wedlock
or for whom support has not been established’’; and
(C) in subparagraph (B), as redesignated—
756
Title IX, Subtitle D
(i) by inserting ‘‘and overall performance
in child support enforcement’’ after ‘‘paternity
establishment percentages’’; and
(ii) by inserting ‘‘and securing support’’
before the period.
(e) REDUCTION OF PAYMENTS UNDER PART D OF
TITLE IV.—
(1) NEW
REQUIREMENTS.—Section 455 (42
U.S.C. 655) is amended by inserting after sub-
section (b) the following:
‘‘(c)(1) If the Secretary finds, with respect to a State
program under this part in a fiscal year beginning on or
after October 1, 1997—
‘‘(A)(i) on the basis of data submitted by a
State pursuant to section 454(15)(B), that the State
program in such fiscal year failed to achieve the IV–
D paternity establishment percentage (as defined in
section 452(g)(2)(A)) or the appropriate level of
overall performance in child support enforcement (as
defined in section 458(b)(2)), or to meet other per-
formance measures that may be established by the
Secretary, or
‘‘(ii) on the basis of an audit or audits of such
State 
data 
conducted 
pursuant 
to 
section
452(a)(4)(C), that the State data submitted pursu-
757
Title IX, Subtitle D
ant to section 454(15)(B) is incomplete or unreli-
able; and
‘‘(B) that, with respect to the succeeding fiscal
year—
‘‘(i) the State failed to take sufficient cor-
rective action to achieve the appropriate per-
formance levels as described in subparagraph
(A)(i) of this paragraph, or
‘‘(ii) the data submitted by the State pur-
suant to section 454(15)(B) is incomplete or
unreliable,
the amounts otherwise payable to the State under this
part for quarters following the end of such succeeding fis-
cal year, prior to quarters following the end of the first
quarter throughout which the State program is in compli-
ance with such performance requirement, shall be reduced
by the percentage specified in paragraph (2).
‘‘(2) The reductions required under paragraph (1)
shall be—
‘‘(A) not less than 6 nor more than 8 percent,
or
‘‘(B) not less than 8 nor more than 12 percent,
if the finding is the second consecutive finding made
pursuant to paragraph (1), or
758
Title IX, Subtitle D
‘‘(C) not less than 12 nor more than 15 per-
cent, if the finding is the third or a subsequent con-
secutive such finding.
‘‘(3) For purposes of this subsection, section 405(d),
and section 452(a)(4), a State which is determined as a
result of an audit to have submitted incomplete or unreli-
able data pursuant to section 454(15)(B), shall be deter-
mined to have submitted adequate data if the Secretary
determines that the extent of the incompleteness or
unreliability of the data is of a technical nature which does
not adversely affect the determination of the level of the
State’s performance.’’.
(2) CONFORMING AMENDMENTS.—
(A) 
Section 
452(a)(4) 
(42 
U.S.C.
652(a)(4)) is amended by striking ‘‘403(h)’’
each place such term appears and inserting
‘‘455(c)’’.
(B) Subsections (d)(3)(A), (g)(1), and
(g)(3)(A) of section 452 (42 U.S.C. 652) are
each amended by striking ‘‘403(h)’’ and insert-
ing ‘‘455(c)’’.
(f) EFFECTIVE DATES.—
(1) 
INCENTIVE
ADJUSTMENTS.—(A) 
The
amendments made by subsections (a), (b), and (c)
759
Title IX, Subtitle D
shall become effective October 1, 1997, except to the
extent provided in subparagraph (B).
(B) Section 458 of the Social Security Act, as
in effect prior to the enactment of this section, shall
be effective for purposes of incentive payments to
States for fiscal years prior to fiscal year 1999.
(2) PENALTY REDUCTIONS.—(A) The amend-
ments made by subsection (d) shall become effective
with respect to calendar quarters beginning on and
after the date of enactment of this Act.
(B) The amendments made by subsection (e)
shall become effective with respect to calendar quar-
ters beginning on and after the date one year after
the date of enactment of this Act.
SEC. 9413. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42
U.S.C. 654) is amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and
inserting ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as sub-
paragraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(15) provide for—
760
Title IX, Subtitle D
‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
under this part, which shall include such infor-
mation as may be necessary to measure State
compliance with Federal requirements for expe-
dited procedures and timely case processing,
using such standards and procedures as are re-
quired by the Secretary, under which the State
agency will determine the extent to which such
program is in conformity with applicable re-
quirements with respect to the operation of
State programs under this part (including the
status of complaints filed under the procedure
required under paragraph (12)(B)); and
‘‘(B) a process of extracting from the
State automated data processing system and
transmitting to the Secretary data and calcula-
tions concerning the levels of accomplishment
(and rates of improvement) with respect to ap-
plicable performance indicators (including IV–D
paternity establishment percentages and overall
performance in child support enforcement) to
the extent necessary for purposes of sections
452(g) and 458.’’.
761
Title IX, Subtitle D
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
section 452(g) and 458, and determine the amount
(if any) of penalty reductions pursuant to section
455(c) to be applied to the State;
‘‘(B) review annual reports by State agencies
pursuant to section 454(15)(A) on State program
conformity with Federal requirements; evaluate any
elements of a State program in which significant de-
ficiencies are indicated by such report on the status
of complaints under the State procedure under sec-
tion 454(12)(B); and, as appropriate, provide to the
State agency comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
government auditing standards of the United States
Comptroller General—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet requirements of this part, or of regula-
762
Title IX, Subtitle D
tions implementing such requirements, concern-
ing performance standards and reliability of
program data) to assess the completeness, reli-
ability, and security of the data, and the accu-
racy of the reporting systems, used for the cal-
culations of performance indicators specified in
subsection (g) and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program, including assess-
ments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram under this part are being appro-
priately expended, and are properly and
fully accounted for; and
‘‘(II) whether collections and disburse-
ments of support payments and program
income are carried out correctly and are
properly and 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 on or after the date one year after en-
actment of this section.
763
Title IX, Subtitle D
SEC. 9414. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.
652(a)(5)) is amended by inserting ‘‘, and establish proce-
dures to be followed by States for collecting and reporting
information required to be provided under this part, and
establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
quirements of this part relating to expedited processes and
timely case processing) to be applied in following such pro-
cedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 9404(a) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing:
‘‘(26) provide that the State shall use the defi-
nitions established under section 452(a)(5) in col-
lecting and reporting information as required under
this part.’’.
764
Title IX, Subtitle D
SEC. 9415. AUTOMATED DATA PROCESSING REQUIRE-
MENTS.
(a) REVISED REQUIREMENTS.—(1) Section 454(16)
(42 U.S.C. 654(16)) is amended—
(A) by striking ‘‘, at the option of the State,’’;
(B) by inserting ‘‘and operation by the State
agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements of
section 454A’’ after ‘‘information retrieval system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that follows
and inserting a semicolon.
(2) Part D of title IV (42 U.S.C. 651–669) is amend-
ed by inserting after section 454 the following new section:
‘‘AUTOMATED DATA PROCESSING
‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the
requirements of this section, for purposes of the require-
ment of section 454(16), a State agency shall have in op-
eration a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section, and performs
such tasks with the frequency and in the manner specified
in this part or in regulations or guidelines of the Sec-
retary.
765
Title IX, Subtitle D
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required under this section shall perform such func-
tions as the Secretary may specify relating to management
of the program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds to carry out such pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements on a timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive and penalty adjustments required by sections
452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in
the State; and
‘‘(B) to calculate the IV–D paternity es-
tablishment percentage and overall performance
in child support enforcement for the State for
each fiscal year; and
‘‘(2) have in place systems controls to ensure
the completeness, and reliability of, and ready access
to, the data described in paragraph (1)(A), and the
766
Title IX, Subtitle D
accuracy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
rity, accuracy, and completeness of, access to, and use of
data in the automated system required under this section,
which shall include the following (in addition to such other
safeguards as the Secretary specifies 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 program re-
sponsibilities;
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data; and
‘‘(C) ensure that data obtained or disclosed
for a limited program purpose is not used or
redisclosed for another, impermissible purpose.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies specified under para-
graph (1).
767
Title IX, Subtitle D
‘‘(3) MONITORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanisms, to guard against and promptly
identify unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—The State
agency shall have in effect procedures to ensure that
all personnel (including State and local agency staff
and contractors) who may have access to or be re-
quired to use sensitive or confidential program data
are fully informed of applicable requirements and
penalties, and are adequately trained in security pro-
cedures.
‘‘(5) PENALTIES.—The State agency shall have
in effect administrative penalties (up to and includ-
ing dismissal from employment) for unauthorized ac-
cess to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(j) The Secretary shall prescribe final regulations
for implementation of the requirements of section 454A
not later than 2 years after the date of the enactment of
this subsection.’’.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sections
768
Title IX, Subtitle D
9404(a)(2) and 9414(b)(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, 1995, meeting all re-
quirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1999, meeting all re-
quirements of this part enacted on or before the
date of enactment of the Omnibus Budget Rec-
onciliation Act of 1995 (but this provision shall
not be construed to alter earlier deadlines speci-
fied for elements of such system), except that
such deadline shall be extended by 1 day for
each day (if any) by which the Secretary fails
to meet the deadline imposed by section 452(j)
of this Act;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section
455(a) (42 U.S.C. 655(a)) is amended—
(1) in paragraph (1)(B)—
(A) by striking ‘‘90 percent’’ and inserting
‘‘the percent specified in paragraph (3)’’;
770
Title IX, Subtitle D
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
(d) ADDITIONAL PROVISIONS.—For additional provi-
sions of section 454A, as added by subsection (a) of this
section, see the amendments made by sections 9421,
9422(c), and 9433(d) of this Act.
SEC. 9416. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.
(a) REPORTING TO SECRETARY.—Section 452(a) (42
U.S.C. 652(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘directly’’.
(b) STAFFING STUDIES.—
(1) SCOPE.—The Secretary of Health and
Human Services shall, directly or by contract, con-
duct studies of the staffing of each State child sup-
port enforcement program under part D of title IV
of the Social Security Act. Such studies shall include
a review of the staffing needs created by require-
ments for automated data processing, maintenance
of a central case registry and centralized collections
of child support, and of changes in these needs re-
sulting from changes in such requirements. Such
studies shall examine and report on effective staffing
practices used by the States and on recommended
staffing procedures.
771
Title IX, Subtitle D
(2) FREQUENCY OF STUDIES.—The Secretary
shall complete the first staffing study required under
paragraph (1) by October 1, 1997, and may conduct
additional studies subsequently at appropriate inter-
vals.
(3) REPORT
TO
THE
CONGRESS.—The Sec-
retary shall submit a report to the Congress stating
the findings and conclusions of each study conducted
under this subsection.
SEC. 9417. FUNDING FOR SECRETARIAL ASSISTANCE TO
STATE PROGRAMS.
Section 452 (42 U.S.C. 652), as amended by section
9415(a)(3) of this Act, is amended by adding at the end
the following new subsection:
‘‘(k) FUNDING FOR FEDERAL ACTIVITIES ASSISTING
STATE PROGRAMS.—(1) There shall be available to the
Secretary, from amounts appropriated for fiscal year 1996
and each succeeding fiscal year for payments to States
under this part, the amount specified in paragraph (2) for
the costs to the Secretary for—
‘‘(A) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs (including technical assistance
concerning State automated systems);
772
Title IX, Subtitle D
‘‘(B) research, demonstration, and special
projects of regional or national significance relating
to the operation of State programs under this part;
and
‘‘(C) operation of the Federal Parent Locator
Service under section 453, to the extent such costs
are not recovered through user fees.
‘‘(2) The amount specified in this paragraph for a
fiscal year is the amount equal to a percentage of the re-
duction in Federal payments to States under part A on
account of child support (including arrearages) collected
in the preceding fiscal year on behalf of children receiving
assistance under State plans approved under part A in
such preceding fiscal year (as determined on the basis of
the most recent reliable data available to the Secretary
as of the end of the third calendar quarter following the
end of such preceding fiscal year), equal to—
‘‘(A) 1 percent, for the activities specified in
subparagraphs (A) and (B) of paragraph (1); and
‘‘(B) 2 percent, for the activities specified in
subparagraph (C) of paragraph (1).’’.
SEC. 9418. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—(1) Section
452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended—
773
Title IX, Subtitle D
(A) by striking ‘‘this part;’’ and inserting ‘‘this
part, including—’’; and
(B) by adding at the end the following indented
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during such fiscal year to indi-
viduals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of furnishing such
services to those individuals; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance under a State plan approved
under part A during a month in such
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the same month;’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C))
is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated for
774
Title IX, Subtitle D
cases’’ and inserting ‘‘separately stated for (1)
cases’’;
(ii) by striking ‘‘cases where the child was
formerly receiving’’ and inserting ‘‘or formerly
received’’;
(iii) 
by 
inserting 
‘‘or 
1912’’ 
after
‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking
‘‘, and the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’
and all that follows and inserting ‘‘in which support
was collected during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii),
and inserting after clause (iii) the following new
clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
775
Title IX, Subtitle D
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G))
is amended by striking ‘‘on the use of Federal courts
and’’.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking all that follows subparagraph (I).
(b) DATA COLLECTION AND REPORTING.—Section
469 (42 U.S.C. 669) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) The Secretary shall collect and maintain, on a
fiscal year basis, up-to-date statistics, by State, with re-
spect to services to establish paternity and services to es-
tablish child support obligations, the data specified in sub-
section (b), separately stated, in the case of each such
service, with respect to—
‘‘(1) families (or dependent children) receiving
assistance under State plans approved under part A
(or E); and
‘‘(2) families not receiving such assistance.
‘‘(b) The data referred to in subsection (a) are—
‘‘(1) the number of cases in the caseload of the
State agency administering the plan under this part
in which such service is needed; and
‘‘(2) the number of such cases in which the
service has been provided.’’; and
776
Title IX, Subtitle D
(2) in subsection (c), by striking ‘‘(a)(2)’’ and
inserting ‘‘(b)(2)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to fiscal year
1996 and succeeding fiscal years.
CHAPTER 3—LOCATE AND CASE
TRACKING
SEC. 9421. CENTRAL STATE AND CASE REGISTRY.
Section 454A, as added by section 9415(a)(2) of this
Act, is amended by adding at the end the following:
‘‘(e) CENTRAL
CASE
REGISTRY.—(1) IN
GEN-
ERAL.—The automated system required under this section
shall perform the functions, in accordance with the provi-
sions of this subsection, of a single central registry con-
taining records with respect to each case in which services
are being provided by the State agency (including, on and
after October 1, 1998, each order specified in section
466(a)(12)), using such standardized data elements (such
as names, social security numbers or other uniform identi-
fication numbers, dates of birth, and case identification
numbers), and containing such other information (such as
information on case status) as the Secretary may require.
‘‘(2) PAYMENT RECORDS.—Each case record in the
central registry shall include a record of—
777
Title IX, Subtitle D
‘‘(A) the amount of monthly (or other periodic)
support owed under the support order, and other
amounts due or overdue (including arrears, interest
or late payment penalties, and fees);
‘‘(B) the date on which or circumstances under
which the support obligation will terminate under
such order;
‘‘(C) all child support and related amounts col-
lected (including such amounts as fees, late payment
penalties, and interest on arrearages);
‘‘(D) the distribution of such amounts collected;
and
‘‘(E) the birth date of the child for whom the
child support order is entered.
‘‘(3) UPDATING AND MONITORING.—The State agen-
cy shall promptly establish and maintain, and regularly
monitor, case records in the registry required by this sub-
section, 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 matches with
Federal, State, or local data sources;
‘‘(C) information on support collections and dis-
tributions; and
778
Title IX, Subtitle D
‘‘(D) any other relevant information.
‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF
INFORMATION.—The automated system required under
this section shall have the capacity, and be used by the
State agency, to extract data at such times, and in such
standardized format or formats, as may be required by
the Secretary, and to share and match data with, and re-
ceive data from, other data bases and data matching serv-
ices, in order to obtain (or provide) information necessary
to enable the State agency (or Secretary or other State
or Federal agencies) to carry out responsibilities under
this part. Data matching activities of the State agency
shall include at least the following:
‘‘(1) DATA
BANK
OF
CHILD
SUPPORT
OR-
DERS.—Furnish to the Data Bank of Child Support
Orders established under section 453(h) (and update
as necessary, with information including notice of
expiration of orders) minimal information (to be
specified by the Secretary) on each child support
case in the central case registry.
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchange data with the Federal Parent Locator
Service for the purposes specified in section 453.
‘‘(3) TEMPORARY
EMPLOYMENT
ASSISTANCE
PROGRAM
AND
MEDICAID
AGENCIES.—Exchange
779
Title IX, Subtitle D
data with State agencies (of the State and of other
States) administering the programs under part A
and title XIX, as necessary for the performance of
State agency responsibilities under this part and
under such programs.
‘‘(4) 
INTRA- 
AND
INTERSTATE
DATA
MATCHES.—Exchange data 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. 9422. CENTRALIZED COLLECTION AND DISBURSE-
MENT OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 9404(a) and 9414(b)
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 the State agency, on and
after October 1, 1998—
780
Title IX, Subtitle D
‘‘(A) will operate a centralized, automated
unit for the collection and disbursement of child
support under orders being enforced under this
part, in accordance with section 454B; and
‘‘(B) will have sufficient State staff (con-
sisting of State employees), and (at State op-
tion) contractors reporting directly to the State
agency to monitor and enforce support collec-
tions through such centralized unit, including
carrying out the automated data processing re-
sponsibilities specified in section 454A(g) and
to impose, as appropriate in particular cases,
the administrative enforcement remedies speci-
fied in section 466(c)(1).’’.
(b) ESTABLISHMENT OF CENTRALIZED COLLECTION
UNIT.—Part D of title IV (42 U.S.C. 651–669) is amend-
ed by adding after section 454A the following new section:
‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF
SUPPORT PAYMENTS
‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the
requirement of section 454(27), the State agency must op-
erate a single centralized, automated unit for the collection
and disbursement of support payments, coordinated with
the automated data system required under section 454A,
in accordance with the provisions of this section, which
shall be—
781
Title IX, Subtitle D
‘‘(1) operated directly by the State agency (or
by two or more State agencies under a regional co-
operative agreement), or by a single contractor re-
sponsible directly to the State agency; and
‘‘(2) used for the collection and disbursement
(including interstate collection and disbursement) of
payments under support orders in all cases being en-
forced by the State pursuant to section 454(4).
‘‘(b) REQUIRED PROCEDURES.—The centralized col-
lections unit shall use automated procedures, electronic
processes, and computer-driven technology to the maxi-
mum extent feasible, efficient, and economical, for the col-
lection 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 agen-
cy, and the State 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 either parent, upon request,
timely information on the current status of support
payments.’’.
782
Title IX, Subtitle D
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 9415(a)(2) of this Act and as amended
by section 9421 of this Act, is amended by adding at the
end the following new subsection:
‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION
OF SUPPORT PAYMENTS.—The automated system re-
quired under this section shall be used, to the maximum
extent feasible, to assist and facilitate collections and dis-
bursement of support payments through the centralized
collections unit operated pursuant to section 454B,
through the performance of functions including at a mini-
mum—
‘‘(1) generation of orders and notices to em-
ployers (and other debtors) for the withholding of
wages (and other income)—
‘‘(A) within two working days after receipt
(from the directory of New Hires established
under section 453(i) or any other source) of no-
tice of and the income source subject to such
withholding; and
‘‘(B) using uniform formats directed by
the Secretary;
‘‘(2) ongoing monitoring to promptly identify
failures to make timely payment; and
783
Title IX, Subtitle D
‘‘(3) automatic use of enforcement mechanisms
(including mechanisms authorized pursuant to sec-
tion 466(c)) where payments are not timely made.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1998.
SEC. 9423. AMENDMENTS CONCERNING INCOME WITH-
HOLDING.
(a) MANDATORY INCOME WITHHOLDING.—(1) Sec-
tion 466(a)(1) (42 U.S.C. 666(a)(1)) is amended to read
as follows:
‘‘(1) INCOME WITHHOLDING.—(A) UNDER OR-
DERS ENFORCED UNDER THE STATE PLAN.—Proce-
dures described in subsection (b) for the withholding
from income of amounts payable as support in cases
subject to enforcement under the State plan.
‘‘(B) UNDER
CERTAIN
ORDERS
PREDATING
CHANGE
IN
REQUIREMENT.—Procedures 
under
which all child support orders issued (or modified)
before October 1, 1996, and which are not otherwise
subject to withholding under subsection (b), shall be-
come subject to withholding from wages as provided
in subsection (b) if arrearages occur, without the
need for a judicial or administrative hearing.’’.
(2) Section 466(a)(8) (42 U.S.C. 666(a)(8)) is re-
pealed.
784
Title IX, Subtitle D
(3) Section 466(b) (42 U.S.C. 666(b)) is amended—
(A) in the matter preceding paragraph (1), by
striking ‘‘subsection (a)(1)’’ and inserting ‘‘sub-
section (a)(1)(A)’’;
(B) in paragraph (5), by striking all that fol-
lows ‘‘administered by’’ and inserting ‘‘the State
through the centralized collections unit established
pursuant to section 454B, in accordance with the re-
quirements of such section 454B.’’;
(C) in paragraph (6)(A)(i)—
(i) by inserting ‘‘, in accordance with time-
tables established by the Secretary,’’ after
‘‘must be required’’; and
(ii) by striking ‘‘to the appropriate agency’’
and all that follows and inserting ‘‘to the State
centralized collections unit within 5 working
days after the date such amount would (but for
this subsection) have been paid or credited to
the employee, for distribution in accordance
with this part.’’;
(D) in paragraph (6)(A)(ii), by inserting ‘‘be in
a standard format prescribed by the Secretary, and’’
after ‘‘shall’’; and
(E) in paragraph (6)(D)—
785
Title IX, Subtitle D
(i) by striking ‘‘employer who discharges’’
and inserting ‘‘employer who—(A) discharges’’;
(ii) by relocating subparagraph (A), as des-
ignated, as an indented subparagraph after and
below the introductory matter;
(iii) by striking the period at the end; and
(iv) by adding after and below subpara-
graph (A) the following new subparagraph:
‘‘(B) fails to withhold support from wages,
or to pay such amounts to the State centralized
collections unit in accordance with this sub-
section.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
(c) DEFINITION
OF TERMS.—The Secretary shall
promulgate regulations providing definitions, for purposes
of part D of title IV of the Social Security Act, for the
term ‘‘income’’ and for such other terms relating to in-
come withholding under section 466(b) of such Act as the
Secretary may find it necessary or advisable to define.
SEC. 9424. LOCATOR INFORMATION FROM INTERSTATE
NETWORKS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 9423(a)(2) of this Act, is amended by inserting
after paragraph (7) the following:
786
Title IX, Subtitle D
‘‘(8) LOCATOR
INFORMATION
FROM
INTER-
STATE
NETWORKS.—Procedures ensuring that the
State will neither provide funding for, nor use for
any purpose (including any purpose unrelated to the
purposes of this part), any automated interstate net-
work or system used to locate individuals—
‘‘(A) for purposes relating to the use of
motor vehicles; or
‘‘(B) providing information for law en-
forcement purposes (where child support en-
forcement agencies are otherwise allowed access
by State and Federal law),
unless all Federal and State agencies administering
programs under this part (including the entities es-
tablished under section 453) have access to informa-
tion in such system or network to the same extent
as any other user of such system or network.’’.
SEC. 9425. EXPANDED FEDERAL PARENT LOCATOR SERV-
ICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting the following:
787
Title IX, Subtitle D
‘‘, for the purpose of establishing parentage, establishing,
setting the amount of, modifying, or enforcing child sup-
port obligations—
‘‘(1) information on, or facilitating the discov-
ery of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support;
‘‘(B) against whom such an obligation is
sought; or
‘‘(C) to whom such an obligation is owed,
including such individual’s social security num-
ber (or numbers), most recent residential ad-
dress, and the name, address, and employer
identification number of such individual’s em-
ployer; and
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or
to, any such individual.’’; and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking ‘‘social security’’ and all that follows
788
Title IX, Subtitle D
through ‘‘absent parent’’ and inserting ‘‘infor-
mation specified in subsection (a)’’; and
(B) in paragraph (2), by inserting before
the period ‘‘, or from any consumer reporting
agency (as defined in section 603(f) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(f))’’;
(3) in subsection (e)(1), by inserting before the
period ‘‘, or by consumer reporting agencies’’.
(b) REIMBURSEMENT FOR DATA FROM FEDERAL
AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is
amended in the fourth sentence by inserting before the
period ‘‘in an amount which the Secretary determines to
be reasonable payment for the data exchange (which
amount shall not include payment for the costs of obtain-
ing, compiling, or maintaining the data)’’.
(c) ACCESS TO CONSUMER REPORTS UNDER FAIR
CREDIT REPORTING ACT.—(1) Section 608 of the Fair
Credit Reporting Act (15 U.S.C. 1681f) is amended—
(A) by striking ‘‘, limited to’’ and inserting ‘‘to
a 
governmental 
agency 
(including 
the 
entire
consumer report, in the case of a Federal, State, or
local agency administering a program under part D
of title IV of the Social Security Act, and limited
to’’; and
789
Title IX, Subtitle D
(B) by striking ‘‘employment, to a govern-
mental agency’’ and inserting ‘‘employment, in the
case of any other governmental agency)’’.
(2) REIMBURSEMENT
FOR
REPORTS
BY
STATE
AGENCIES
AND CREDIT BUREAUS.—Section 453 (42
U.S.C. 653) is amended by adding at the end the following
new subsection:
‘‘(g) The Secretary is authorized to reimburse costs
to State agencies and consumer credit reporting agencies
the costs incurred by such entities in furnishing informa-
tion requested by the Secretary pursuant to this section
in an amount which the Secretary determines to be rea-
sonable payment for the data exchange (which amount
shall not include payment for the costs of obtaining, com-
piling, or maintaining the data).’’.
(d) DISCLOSURE OF TAX RETURN INFORMATION.—
(1) Section 6103(1)(6)(A)(ii) of the Internal Revenue
Code of 1986 is amended by striking ‘‘, but only if’’ and
all that follows and inserting a period.
(2) Section 6103(1)(8)(A) of the Internal Revenue
Code of 1986 is amended by inserting ‘‘Federal,’’ before
‘‘State or local’’.
(e) TECHNICAL AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
and 463(e) (42 U.S.C. 652(a)(9), 653(a), 653(b),
790
Title IX, Subtitle D
663(a), and 663(e)) are each amended by inserting
‘‘Federal’’ before ‘‘Parent’’ each place it appears.
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PAR-
ENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C.
653), as amended by subsection (c)(2) of this section, is
amended by adding at the end the following:
‘‘(h) DATA BANK OF CHILD SUPPORT ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, In order to assist States in administering
their State plans under this part and parts A, F,
and G, and for the other purposes specified in this
section, the Secretary shall establish and maintain in
the Federal Parent Locator Service an automated
registry to be known as the Data Bank of Child
Support Orders, which shall contain abstracts of
child support orders and other information described
in paragraph (2) on each case in each State central
case registry maintained pursuant to section
454A(e), as furnished (and regularly updated), pur-
suant to section 454A(f), by State agencies admin-
istering programs under this part.
‘‘(2) CASE INFORMATION.—The information re-
ferred to in paragraph (1), as specified by the Sec-
791
Title IX, Subtitle D
retary, shall include sufficient information (including
names, social security numbers or other uniform
identification numbers, and State case identification
numbers) to identify the individuals who owe or are
owed support (or with respect to or on behalf of
whom support obligations are sought to be estab-
lished), and the State or States which have estab-
lished or modified, or are enforcing or seeking to es-
tablish, such an order.
‘‘(i) DIRECTORY OF NEW HIRES.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, In order to assist States in administering
their State plans under this part and parts A, F,
and G, and for the other purposes specified in this
section, the Secretary shall establish and maintain in
the Federal Parent Locator Service an automated
directory to be known as the directory of New Hires,
containing—
‘‘(A) information supplied by employers on
each newly hired individual, in accordance with
paragraph (2); and
‘‘(B) information supplied by State agen-
cies administering State unemployment com-
pensation laws, in accordance with paragraph
(3).
792
Title IX, Subtitle D
‘‘(2) EMPLOYER INFORMATION.—
‘‘(A) INFORMATION
REQUIRED.—Subject
to subparagraph (D), each employer shall fur-
nish to the Secretary, for inclusion in the direc-
tory established under this subsection, not later
than 10 days after the date (on or after Octo-
ber 1, 1998) on which the employer hires a new
employee (as defined in subparagraph (C)), a
report containing the name, date of birth, and
social security number of such employee, and
the employer identification number of the em-
ployer.
‘‘(B) REPORTING
METHOD
AND
FOR-
MAT.—The Secretary shall provide for trans-
mission of the reports required under subpara-
graph (A) using formats and methods which
minimize the burden on employers, which shall
include—
‘‘(i) automated or electronic trans-
mission of such reports;
‘‘(ii) transmission by regular mail;
and
‘‘(iii) transmission of a copy of the
form required for purposes of compliance
793
Title IX, Subtitle D
with section 3402 of the Internal Revenue
Code of 1986.
‘‘(C) EMPLOYEE DEFINED.—For purposes
of this paragraph, the term ‘employee’ means
any individual subject to the requirement of
section 3402(f)(2) of the Internal Revenue Code
of 1986.
‘‘(D) PAPERWORK
REDUCTION
REQUIRE-
MENT.—As required by the information re-
sources management policies published by the
Director of the Office of Management and
Budget pursuant to section 3504(b)(1) of title
44, United States Code, the Secretary, in order
to minimize the cost and reporting burden on
employers, shall not require reporting pursuant
to this paragraph if an alternative reporting
mechanism can be developed that either relies
on existing Federal or State reporting or en-
ables the Secretary to collect the needed infor-
mation in a more cost-effective and equally ex-
peditious manner, taking into account the re-
porting costs on employers.
‘‘(E) CIVIL
MONEY
PENALTY
ON
NON-
COMPLYING
EMPLOYERS.—(i) Any employer
that fails to make a timely report in accordance
794
Title IX, Subtitle D
with this paragraph with respect to an individ-
ual shall be subject to a civil money penalty, for
each calendar year in which the failure occurs,
of the lesser of $500 or 1 percent of the wages
or other compensation paid by such employer to
such individual during such calendar year.
‘‘(ii) Subject to clause (iii), the provisions
of section 1128A (other than subsections (a)
and (b) thereof) shall apply to a civil money
penalty under clause (i) in the same manner as
they apply to a civil money penalty or proceed-
ing under section 1128A(a).
‘‘(iii) Any employer with respect to whom
a penalty under this subparagraph is upheld
after an administrative hearing shall be liable to
pay all costs of the Secretary with respect to
such hearing.
‘‘(3) EMPLOYMENT SECURITY INFORMATION.—
‘‘(A) REPORTING
REQUIREMENT.—Each
State agency administering a State unemploy-
ment compensation law approved by the Sec-
retary of Labor under the Federal Unemploy-
ment Tax Act shall furnish to the Secretary of
Health and Human Services extracts of the re-
ports to the Secretary of Labor concerning the
795
Title IX, Subtitle D
wages and unemployment compensation paid to
individuals required under section 303(a)(6), in
accordance with subparagraph (B).
‘‘(B) MANNER OF COMPLIANCE.—The ex-
tracts required under subparagraph (A) shall be
furnished to the Secretary of Health and
Human Services on a quarterly basis, with re-
spect to calendar quarters beginning on and
after October 1, 1996, by such dates, in such
format, and containing such information as re-
quired by that Secretary in regulations.
‘‘(j) DATA MATCHES AND OTHER DISCLOSURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY AD-
MINISTRATION.—(A) The Secretary shall transmit
data on individuals and employers maintained under
this section to the Social Security Administration to
the extent necessary for verification in accordance
with subparagraph (B).
‘‘(B) The Social Security Administration shall
verify the accuracy of, correct or supply to the ex-
tent necessary and feasible, and report to the Sec-
retary, the following information in data supplied by
the Secretary pursuant to subparagraph (A):
‘‘(i) the name, social security number, and
birth date of each individual; and
796
Title IX, Subtitle D
‘‘(ii) the employer identification number of
each employer.
‘‘(2) CHILD SUPPORT LOCATOR MATCHES.—For
the purpose of locating individuals for purposes of
paternity establishment and establishment and en-
forcement of child support, the Secretary shall—
‘‘(A) match data in the directory of New
Hires against the child support order abstracts
in the Data Bank of Child Support Orders not
less often than every 2 working days; and
‘‘(B) report information obtained from
such a match to concerned State agencies oper-
ating programs under this part not later than
2 working days after such match.
‘‘(3) DATA
MATCHES
AND
DISCLOSURES
OF
DATA IN ALL REGISTRIES FOR TITLE IV PROGRAM
PURPOSES.—The Secretary shall—
‘‘(A) perform matches of data in each com-
ponent of the Federal Parent Locator Service
maintained under this section against data in
each other such component (other than the
matches required pursuant to paragraph (1)),
and report information resulting from such
matches to State agencies operating programs
under this part and parts A, F, and G; and
797
Title IX, Subtitle D
‘‘(B) disclose data in such registries to
such State agencies,
to the extent, and with the frequency, that the Sec-
retary determines to be effective in assisting such
States to carry out their responsibilities under such
programs.
‘‘(k) FEES.—
‘‘(1) FOR SSA VERIFICATION.—The Secretary
shall reimburse the Commissioner of Social Security,
at a rate negotiated between the Secretary and the
Commissioner, the costs incurred by the Commis-
sioner in performing the verification services speci-
fied in subsection (j).
‘‘(2) FOR
INFORMATION
FROM
SESAS.—The
Secretary shall reimburse costs incurred by State
employment security agencies in furnishing data as
required by subsection (j)(3), at rates which the Sec-
retary determines to be reasonable (which rates shall
not include payment for the costs of obtaining, com-
piling, or maintaining such data).
‘‘(3) FOR INFORMATION FURNISHED TO STATE
AND FEDERAL AGENCIES.—State and Federal agen-
cies receiving data or information from the Secretary
pursuant to this section shall reimburse the costs in-
curred by the Secretary in furnishing such data or
798
Title IX, Subtitle D
information, at rates which the Secretary determines
to be reasonable (which rates shall include payment
for the costs of obtaining, verifying, maintaining,
and matching such data or information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Data
in the Federal Parent Locator Service, and information
resulting from matches using such data, shall not be used
or disclosed except as specifically provided in this section.
‘‘(m) RETENTION OF DATA.—Data in the Federal
Parent Locator Service, and data resulting from matches
performed pursuant to this section, shall be retained for
such period (determined by the Secretary) as appropriate
for the data uses specified in this section.
‘‘(n) INFORMATION INTEGRITY AND SECURITY.—The
Secretary shall establish and implement safeguards with
respect to the entities established under this section de-
signed to—
‘‘(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service;
and
‘‘(2) restrict access to confidential information
in the Federal Parent Locator Service to authorized
persons, and restrict use of such information to au-
thorized purposes.
799
Title IX, Subtitle D
‘‘(o) LIMIT ON LIABILITY.—The Secretary shall not
be liable to either a State or an individual for inaccurate
information provided to a component of the Federal Par-
ent Locator Service section and disclosed by the Secretary
in accordance with this section.’’.
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY
ACT.—Section 
454(8)(B) 
(42 
U.S.C.
654(8)(B)) is amended to read as follows:
‘‘(B) the Federal Parent Locator Service
established under section 453;’’.
(2) TO FEDERAL UNEMPLOYMENT TAX ACT.—
Section 3304(16) of the Internal Revenue Code of
1986 is amended—
(A) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place such term ap-
pears and inserting ‘‘Secretary of Health and
Human Services’’;
(B) in subparagraph (B), by striking
‘‘such information’’ and all that follows and in-
serting ‘‘information furnished under subpara-
graph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (A);