H. R. 3734—107
of the employer, an equivalent form, and may be transmitted by
1st class mail, magnetically, or electronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.—
The State shall have the option to set a State civil money penalty
which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the result
of a conspiracy between the employer and the employee to
not supply the required report or to supply a false or incomplete
report.
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be
entered into the data base maintained by the State Directory of
New Hires within 5 business days of receipt from an employer
pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than May 1, 1998, an agency
designated by the State shall, directly or by contract, conduct
automated comparisons of the social security numbers reported
by employers pursuant to subsection (b) and the social security
numbers appearing in the records of the State case registry
for cases being enforced under the State plan.
‘‘(2) NOTICE OF MATCH.—When an information comparison
conducted under paragraph (1) reveals a match with respect
to the social security number of an individual required to pro-
vide support under a support order, the State Directory of
New Hires shall provide the agency administering the State
plan approved under this part of the appropriate State with
the name, address, and social security number of the employee
to whom the social security number is assigned, and the name
and address of, and identifying number assigned under section
6109 of the Internal Revenue Code of 1986 to, the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION
OF
WAGE
WITHHOLDING
NOTICES
TO
EMPLOYERS.—Within 2 business days after the date information
regarding a newly hired employee is entered into the State
Directory of New Hires, the State agency enforcing the employ-
ee’s child support obligation shall transmit a notice to the
employer of the employee directing the employer to withhold
from the income of the employee an amount equal to the
monthly (or other periodic) child support obligation (including
any past due support obligation) of the employee, unless the
employee’s income is not subject to withholding pursuant to
section 466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW
HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 3 business days
after the date information regarding a newly hired
employee is entered into the State Directory of New Hires,
the State Directory of New Hires shall furnish the informa-
tion to the National Directory of New Hires.
‘‘(B) 
WAGE
AND
UNEMPLOYMENT
COMPENSATION
INFORMATION.—The State Directory of New Hires shall,
on a quarterly basis, furnish to the National Directory
of New Hires extracts of the reports required under section
303(a)(6) to be made to the Secretary of Labor concerning
the wages and unemployment compensation paid to individ-
uals, by such dates, in such format, and containing such
H. R. 3734—108
information as the Secretary of Health and Human Services
shall specify in regulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this subsection,
the term ‘business day’ means a day on which State offices
are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency
administering the State plan approved under this part shall
use information received pursuant to subsection (f)(2) to locate
individuals for purposes of establishing paternity and establish-
ing, modifying, and enforcing child support obligations, and
may disclose such information to any agent of the agency that
is under contract with the agency to carry out such purposes.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.—
A State agency responsible for administering a program speci-
fied in section 1137(b) shall have access to information reported
by employers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
‘‘(3) ADMINISTRATION
OF
EMPLOYMENT
SECURITY
AND
WORKERS’ COMPENSATION.—State agencies operating employ-
ment security and workers’ compensation programs shall have
access to information reported by employers pursuant to sub-
section (b) for the purposes of administering such programs.’’.
(c) QUARTERLY
WAGE
REPORTING.—Section 1137(a)(3) (42
U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local governmental
entities and labor organizations (as defined in section
453A(a)(2)(B)(iii))’’ after ‘‘employers’’; and
(2) by inserting ‘‘, and except that no report shall be filed
with respect to an employee of a State or local agency perform-
ing intelligence or counterintelligence functions, if the head
of such agency has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission’’ after ‘‘paragraph (2)’’.
(d) DISCLOSURE TO CERTAIN AGENTS.—Section 303(e) (42 U.S.C.
503(e)) is amended by adding at the end the following:
‘‘(5) A State or local child support enforcement agency may
disclose to any agent of the agency that is under contract with
the agency to carry out the purposes described in paragraph (1)(B)
wage information that is disclosed to an officer or employee of
the agency under paragraph (1)(A). Any agent of a State or local
child support agency that receives wage information under this
paragraph shall comply with the safeguards established pursuant
to paragraph (1)(B).’’.
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) MANDATORY INCOME WITHHOLDING.—
(1) IN
GENERAL.—Section 466(a)(1) (42 U.S.C. 666(a)(1))
is amended to read as follows:
‘‘(1)(A) Procedures described in subsection (b) for the
withholding from income of amounts payable as support in
cases subject to enforcement under the State plan.
‘‘(B) Procedures under which the income of a person with
a support obligation imposed by a support order issued (or
modified) in the State before October 1, 1996, if not otherwise
subject to withholding under subsection (b), shall become sub-
ject to withholding as provided in subsection (b) if arrearages
H. R. 3734—109
occur, without the need for a judicial or administrative hear-
ing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in
the matter preceding paragraph (1), by striking ‘‘subsection
(a)(1)’’ and inserting ‘‘subsection (a)(1)(A)’’.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended
to read as follows:
‘‘(4)(A) Such withholding must be carried out in full compli-
ance with all procedural due process requirements of the State,
and the State must send notice to each noncustodial parent
to whom paragraph (1) applies—
‘‘(i) that the withholding has commenced; and
‘‘(ii) of the procedures to follow if the noncustodial
parent desires to contest such withholding on the grounds
that the withholding or the amount withheld is improper
due to a mistake of fact.
‘‘(B) The notice under subparagraph (A) of this paragraph
shall include the information provided to the employer under
paragraph (6)(A).’’.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended
by striking all that follows ‘‘administered by’’ and inserting
‘‘the State through the State disbursement unit established
pursuant to section 454B, in accordance with the require-
ments of section 454B.’’.
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is
amended—
(i) in clause (i), by striking ‘‘to the appropriate
agency’’ and all that follows and inserting ‘‘to the State
disbursement unit within 7 business days after the
date the amount would (but for this subsection) have
been paid or credited to the employee, for distribution
in accordance with this part. The employer shall with-
hold funds as directed in the notice, except that when
an employer receives an income withholding order
issued by another State, the employer shall apply the
income withholding law of the state of the obligor’s
principal place of employment in determining—
‘‘(I) the employer’s fee for processing an income
withholding order;
‘‘(II) the maximum amount permitted to be withheld
from the obligor’s income;
‘‘(III) the time periods within which the employer must
implement the income withholding order and forward the
child support payment;
‘‘(IV) the priorities for withholding and allocating
income withheld for multiple child support obligees; and
‘‘(V) any withholding terms or conditions not specified
in the order.
An employer who complies with an income withholding notice
that is regular on its face shall not be subject to civil liability
to any individual or agency for conduct in compliance with
the notice.’’;
(ii) in clause (ii), by inserting ‘‘be in a standard
format prescribed by the Secretary, and’’ after
‘‘shall’’; and
(iii) by adding at the end the following new clause:
H. R. 3734—110
‘‘(iii) As used in this subparagraph, the term ‘business
day’ means a day on which State offices are open for regular
business.’’.
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is
amended by striking ‘‘any employer’’ and all that follows
and inserting ‘‘any employer who—
‘‘(i) discharges from employment, refuses to employ,
or takes disciplinary action against any noncustodial parent
subject to income withholding required by this subsection
because of the existence of such withholding and the obliga-
tions or additional obligations which it imposes upon the
employer; or
‘‘(ii) fails to withhold support from income or to pay
such amounts to the State disbursement unit in accordance
with this subsection.’’.
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by
adding at the end the following new paragraph:
‘‘(11) Procedures under which the agency administering
the State plan approved under this part may execute a
withholding order without advance notice to the obligor, includ-
ing issuing the withholding order through electronic means.’’.
(b) DEFINITION OF INCOME.—
(1) IN
GENERAL.—Section 466(b)(8) (42 U.S.C. 666(b)(8))
is amended to read as follows:
‘‘(8) For purposes of subsection (a) and this subsection,
the term ‘income’ means any periodic form of payment due
to an individual, regardless of source, including wages, salaries,
commissions, bonuses, worker’s compensation, disability, pay-
ments pursuant to a pension or retirement program, and
interest.’’.
(2) CONFORMING AMENDMENTS.—
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B),
(b)(6)(A)(i), and (b)(6)(C), and (b)(7) of section 466 (42 U.S.C.
666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and
(b)(6)(C), and (b)(7)) are each amended by striking ‘‘wages’’
each place such term appears and inserting ‘‘income’’.
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended
by striking ‘‘wages (as defined by the State for purposes
of this section)’’ and inserting ‘‘income’’.
(c) CONFORMING AMENDMENT.—Section 466(c) (42 U.S.C. 666(c))
is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after
paragraph (11) the following new paragraph:
‘‘(12) LOCATOR
INFORMATION
FROM
INTERSTATE
NET-
WORKS.—Procedures to ensure that all Federal and State agen-
cies conducting activities under this part have access to any
system used by the State to locate an individual for purposes
relating to motor vehicles or law enforcement.’’.
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.
(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 ‘‘, for the purpose of establishing parentage,
establishing, setting the amount of, modifying, or enforcing