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‘‘(iv) imposing liens in accordance
with subsection (a)(4) and, in appropriate
cases, to force sale of property and distribu-
tion of proceeds.
‘‘(H) For the purpose of securing overdue
support, to increase the amount of monthly sup-
port payments to include amounts for arrear-
ages, subject to such conditions or limitations as
the State may provide.
Such procedures shall be subject to due process safe-
guards, including (as appropriate) requirements for
notice, opportunity to contest the action, and oppor-
tunity for an appeal on the record to an independent
administrative or judicial tribunal.
‘‘(2) The expedited procedures required under
subsection (a)(2) shall include the following rules and
authority, applicable with respect to all proceedings
to establish paternity or to establish, modify, or en-
force support orders:
‘‘(A) Procedures under which—
‘‘(i) each party to any paternity or
child support proceeding is required (subject
to privacy safeguards) to file with the tribu-
nal and the State case registry upon entry
of an order, and to update as appropriate,
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information on location and identity of the
party, including social security number,
residential and mailing addresses, telephone
number, driver’s license number, and name,
address, and name and telephone number of
employer; and
‘‘(ii) in any subsequent child support
enforcement action between the parties,
upon sufficient showing that diligent effort
has been made to ascertain the location of
such a party, the tribunal may deem State
due process requirements for notice and
service of process to be met with respect to
the party, upon delivery of written notice to
the most recent residential or employer ad-
dress filed with the tribunal pursuant to
clause (i).
‘‘(B) Procedures under which—
‘‘(i) the State agency and any admin-
istrative or judicial tribunal with authority
to hear child support and paternity cases
exerts statewide jurisdiction over the par-
ties; and
‘‘(ii) in a State in which orders are is-
sued by courts or administrative tribunals,
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a case may be transferred between local ju-
risdictions in the State without need for
any additional filing by the petitioner, or
service of process upon the respondent, to re-
tain jurisdiction over the parties.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 944(a)(2) and as amend-
ed by sections 911 and 912(c), is amended by adding at
the end the following new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—
The automated system required by this section shall be used,
to the maximum extent feasible, to implement the expedited
administrative procedures required by section 466(c).’’.
Subtitle D—Paternity
Establishment
SEC. 931. STATE LAWS CONCERNING PATERNITY ESTAB-
LISHMENT.
(a) STATE LAWS REQUIRED.—Section 466(a)(5) (42
U.S.C. 666(a)(5)) is amended to read as follows:
‘‘(5)(A)(i) Procedures which permit the establish-
ment of the paternity of a child at any time before
the child attains 21 years of age.
‘‘(ii) As of August 16, 1984, clause (i) shall also
apply to a child for whom paternity has not been es-
tablished or for whom a paternity action was brought
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but dismissed because a statute of limitations of less
than 21 years was then in effect in the State.
‘‘(B)(i) Procedures under which the State is re-
quired, in a contested paternity case, unless otherwise
barred by State law, to require the child and all other
parties (other than individuals found under section
454(29) to have good cause for refusing to cooperate)
to submit to genetic tests upon the request of any such
party if the request is supported by a sworn statement
by the party—
‘‘(I) alleging paternity, and setting forth
facts establishing a reasonable possibility of the
requisite sexual contact between the parties; or
‘‘(II) denying paternity, and setting forth
facts establishing a reasonable possibility of the
nonexistence of sexual contact between the par-
ties.
‘‘(ii) Procedures which require the State agency
in any case in which the agency orders genetic test-
ing—
‘‘(I) to pay costs of such tests, subject to
recoupment (where the State so elects) from the
alleged father if paternity is established; and
‘‘(II) to obtain additional testing in any
case where an original test result is contested,
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upon request and advance payment by the con-
testant.
‘‘(C)(i) Procedures for a simple civil process for
voluntarily acknowledging paternity under which the
State must provide that, before a mother and a puta-
tive father can sign an acknowledgment of paternity,
the mother and the putative father must be given no-
tice, orally and in writing, of the alternatives to, the
legal consequences of, and the rights (including, if 1
parent is a minor, any rights afforded due to minor-
ity status) and responsibilities that arise from, sign-
ing the acknowledgment.
‘‘(ii) Such procedures must include a hospital-
based program for the voluntary acknowledgment of
paternity focusing on the period immediately before
or after the birth of a child, subject to such good cause
and other exceptions as the State shall establish and
taking into account the best interests of the child.
‘‘(iii)(I) Such procedures must require the State
agency responsible for maintaining birth records to
offer voluntary paternity establishment services.
‘‘(II)(aa) The Secretary shall prescribe regula-
tions governing voluntary paternity establishment
services offered by hospitals and birth record agencies.
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‘‘(bb) The Secretary shall prescribe regulations
specifying the types of other entities that may offer
voluntary paternity establishment services, and gov-
erning the provision of such services, which shall in-
clude a requirement that such an entity must use the
same notice provisions used by, use the same mate-
rials used by, provide the personnel providing such
services with the same training provided by, and
evaluate the provision of such services in the same
manner as the provision of such services is evaluated
by, voluntary paternity establishment programs of
hospitals and birth record agencies.
‘‘(iv) Such procedures must require the State to
develop and use an affidavit for the voluntary ac-
knowledgment of paternity which includes the mini-
mum requirements of the affidavit developed by the
Secretary under section 452(a)(7) for the voluntary
acknowledgment of paternity, and to give full faith
and credit to such an affidavit signed in any other
State according to its procedures.
‘‘(D)(i) Procedures under which the name of the
father shall be included on the record of birth of the
child only—
‘‘(I) if the father and mother have signed a
voluntary acknowledgment of paternity; or
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‘‘(II) pursuant to an order issued in a judi-
cial or administrative proceeding.
Nothing in this clause shall preclude a State agency
from obtaining an admission of paternity from the
father for submission in a judicial or administrative
proceeding, or prohibit an order issued in a judicial
or administrative proceeding which bases a legal find-
ing of paternity on an admission of paternity by the
father and any other additional showing required by
State law.
‘‘(ii) Procedures under which—
‘‘(I) a voluntary acknowledgment of pater-
nity is considered a legal finding of paternity,
subject to the right of any signatory to rescind
the acknowledgment within 60 days;
‘‘(II) after the 60-day period referred to in
subclause (I), a signed voluntary acknowledg-
ment of paternity may be challenged in court
only on the basis of fraud, duress, or material
mistake of fact, with the burden of proof upon
the challenger, and under which the legal respon-
sibilities (including child support obligations) of
any signatory arising from the acknowledgment
may not be suspended during the challenge, ex-
cept for good cause shown; and
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‘‘(III) judicial or administrative proceed-
ings are not required or permitted to ratify an
unchallenged acknowledgment of paternity.
‘‘(E) Procedures under which judicial or admin-
istrative proceedings are not required or permitted to
ratify an unchallenged acknowledgment of paternity.
‘‘(F) Procedures—
‘‘(i) requiring the admission into evidence,
for purposes of establishing paternity, of the re-
sults of any genetic test that is—
‘‘(I) of a type generally acknowledged
as reliable by accreditation bodies des-
ignated by the Secretary; and
‘‘(II) performed by a laboratory ap-
proved by such an accreditation body;
‘‘(ii) requiring an objection to genetic test-
ing results to be made in writing not later than
a specified number of days before any hearing at
which the results may be introduced into evi-
dence (or, at State option, not later than a speci-
fied number of days after receipt of the results);
and
‘‘(iii) making the test results admissible as
evidence of paternity without the need for foun-
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dation testimony or other proof of authenticity
or accuracy, unless objection is made.
‘‘(G) Procedures which create a rebuttable or, at
the option of the State, conclusive presumption of pa-
ternity upon genetic testing results indicating a
threshold probability that the alleged father is the fa-
ther of the child.
‘‘(H) Procedures requiring a default order to be
entered in a paternity case upon a showing of service
of process on the defendant and any additional show-
ing required by State law.
‘‘(I) Procedures providing that the parties to an
action to establish paternity are not entitled to a trial
by jury.
‘‘(J) Procedures which require that a temporary
order be issued, upon motion by a party, requiring
the provision of child support pending an adminis-
trative or judicial determination of parentage, where
there is clear and convincing evidence of paternity
(on the basis of genetic tests or other evidence).
‘‘(K) Procedures under which bills for preg-
nancy, childbirth, and genetic testing are admissible
as evidence without requiring third-party foundation
testimony, and shall constitute prima facie evidence
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of amounts incurred for such services or for testing on
behalf of the child.
‘‘(L) Procedures ensuring that the putative fa-
ther has a reasonable opportunity to initiate a pater-
nity action.
‘‘(M) Procedures under which voluntary ac-
knowledgments and adjudications of paternity by ju-
dicial or administrative processes are filed with the
State registry of birth records for comparison with in-
formation in the State case registry.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDA-
VIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended
by inserting ‘‘, and develop an affidavit to be used for the
voluntary acknowledgment of paternity which shall include
the social security number of each parent’’ before the semi-
colon.
(c) TECHNICAL AMENDMENT.—Section 468 (42 U.S.C.
668) is amended by striking ‘‘a simple civil process for vol-
untarily acknowledging paternity and’’.
SEC. 932. OUTREACH FOR VOLUNTARY PATERNITY ESTAB-
LISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by
inserting ‘‘and will publicize the availability and encourage
the use of procedures for voluntary establishment of pater-
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nity and child support by means the State deems appro-
priate’’ before the semicolon.
SEC. 933. COOPERATION BY APPLICANTS FOR AND RECIPI-
ENTS OF TEMPORARY FAMILY ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections
901(b), 904(a), 912(a), and 913(a), is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the follow-
ing new paragraph:
‘‘(29) provide that the State agency responsible
for administering the State plan—
‘‘(A) shall make the determination (and re-
determination at appropriate intervals) as to
whether an individual who has applied for or is
receiving assistance under the State program
funded under part A or the State program under
title XIX is cooperating in good faith with the
State in establishing the paternity of, or in es-
tablishing, modifying, or enforcing a support
order for, any child of the individual by provid-
ing the State agency with the name of, and such
other information as the State agency may re-
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quire with respect to, the noncustodial parent of
the child, subject to such good cause and other
exceptions as the State shall establish and taking
into account the best interests of the child;
‘‘(B) shall require the individual to supply
additional necessary information and appear at
interviews, hearings, and legal proceedings;
‘‘(C) shall require the individual and the
child to submit to genetic tests pursuant to judi-
cial or administrative order; and
‘‘(D) shall promptly notify the individual
and the State agency administering the State
program funded under part A and the State
agency administering the State program under
title XIX of each such determination, and if
noncooperation is determined, the basis there-
fore.’’.
Subtitle E—Program
Administration and Funding
SEC. 941. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE PAYMENTS.—
(1) IN GENERAL.—Section 458 (42 U.S.C. 658)
is amended—
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(A) in subsection (a), by striking ‘‘aid to
families’’ and all through the end period, and in-
serting ‘‘assistance under a program funded
under part A, and regardless of the economic cir-
cumstances of their parents, the Secretary shall,
from the support collected which would otherwise
represent the reimbursement to the Federal gov-
ernment under section 457, pay to each State for
each fiscal year, on a quarterly basis (as de-
scribed in subsection (e)) beginning with the
quarter commencing October 1, 1999, an incen-
tive payment in an amount determined under
subsections (b) and (c).’’;
(B) by striking subsections (b) and (c) and
inserting the following:
‘‘(b)(1) Not later than 60 days after the date of the
enactment of the Work Opportunity Act of 1995, the Sec-
retary shall establish a committee which shall include State
directors of programs under this part and which shall de-
velop for the Secretary’s approval a formula for the dis-
tribution of incentive payments to the States.
‘‘(2) The formula developed and approved under para-
graph (1)—
‘‘(A) shall result in a percentage of the collec-
tions described in subsection (a) being distributed to
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each State based on the State’s comparative perform-
ance in the following areas and any other areas ap-
proved by the Secretary under this subsection:
‘‘(i) The IV-D paternity establishment per-
centage, as defined in section 452(g)(2).
‘‘(ii) The percentage of cases with a support
order with respect to which services are being
provided under the State plan approved under
this part.
‘‘(iii) The percentage of cases with a sup-
port order in which child support is paid with
respect to which services are being so provided.
‘‘(iv) In cases receiving services under the
State plan approved under this part, the amount
of child support collected compared to the
amount of outstanding child support owed.
‘‘(v) The cost-effectiveness of the State pro-
gram;
‘‘(B) shall take into consideration—
‘‘(i) the impact that incentives can have on
reducing the need to provide public assistance
and on permanently removing families from
public assistance;
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‘‘(ii) the need to balance accuracy and fair-
ness with simplicity of understanding and data
gathering;
‘‘(iii) the need to reward performance which
improves short- and long-term program out-
comes, especially establishing paternity and sup-
port orders and encouraging the timely payment
of support;
‘‘(iv) the Statewide paternity establishment
percentage;
‘‘(v) baseline data on current performance
and projected costs of performance increases to
assure that top performing States can actually
achieve the top incentive levels with a reasonable
resource investment;
‘‘(vi) performance outcomes which would
warrant an increase in the total incentive pay-
ments made to the States; and
‘‘(vii) the use or distribution of any portion
of the total incentive payments in excess of the
total of the payments which may be distributed
under subsection (c);
‘‘(C) shall be determined so as to distribute to the
States total incentive payments equal to the total in-
centive payments for all States in fiscal year 1994,
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plus a portion of any increase in the reimbursement
to the Federal Government under section 457 from fis-
cal year 1999 or any other increase based on other
performance outcomes approved by the Secretary
under this subsection;
‘‘(D) shall use a definition of the term ‘State’
which does not include any area within the jurisdic-
tion of an Indian tribal government; and
‘‘(E) shall use a definition of the term ‘Statewide
paternity establishment percentage’ to mean with re-
spect to a State and a fiscal year—
‘‘(i) the total number of children in the
State who were born out of wedlock, who have
not attained 1 year of age and for whom pater-
nity is established or acknowledged during the
fiscal year; divided by
‘‘(ii) the total number of children born out
of wedlock in the State during the fiscal year.
‘‘(c) The total amount of the incentives payment made
by the Secretary to a State in a fiscal year shall not exceed
90 percent of the total amounts expended by such State dur-
ing such year for the operation of the plan approved under
section 454, less payments to the State pursuant to section
455 for such year.’’;
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(2) in subsection (d), by striking ‘‘, and any
amounts’’ through ‘‘shall be excluded’’.
(b) PAYMENTS TO POLITICAL SUBDIVISIONS.—Section
454(22) (42 U.S.C. 654(22)) is amended by inserting before
the semicolon the following: ‘‘, but a political subdivision
shall not be entitled to receive, and the State may retain,
any amount in excess of the amount the political subdivi-
sion expends on the State program under this part, less the
amount equal to the percentage of that expenditure paid
by the Secretary under section 455’’.
(c) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—
(1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended—
(A) in the matter preceding subparagraph
(A) by inserting ‘‘its overall performance in
child support enforcement is satisfactory (as de-
fined in section 458(b) and regulations of the
Secretary), and’’ after ‘‘1994,’’; and
(B) in each of subparagraphs (A) and (B),
by striking ‘‘75’’ and inserting ‘‘90’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter preceding
clause (i)—
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(A) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(B) by striking ‘‘(or all States, as the case
may be)’’.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and re-
designating subparagraphs (B) and (C) as sub-
paragraphs (A) and (B), respectively;
(B) in subparagraph (A) (as so redesig-
nated), by striking ‘‘the percentage of children
born out-of-wedlock in a State’’ and inserting
‘‘the percentage of children in a State who are
born out of wedlock or for whom support has not
been established’’; and
(C) in subparagraph (B) (as so redesig-
nated)—
(i) by inserting ‘‘and overall perform-
ance in child support enforcement’’ after
‘‘paternity establishment percentages’’; and
(ii) by inserting ‘‘and securing sup-
port’’ before the period.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
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(A) IN GENERAL.—The amendments made
by subsections (a) and (b) shall become effective
on the date of the enactment of this Act, except
to the extent provided in subparagraph (B).
(B) EXCEPTION.—Section 458 of the Social
Security Act, as in effect before the date of the
enactment of this section, shall be effective for
purposes of incentive payments to States for fis-
cal years before fiscal year 2000.
(2) PENALTY
REDUCTIONS.—The amendments
made by subsection (c) shall become effective with re-
spect to calendar quarters beginning on and after the
date of the enactment of this Act.
SEC. 942. 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 subpara-
graph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the follow-
ing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and re-
ports to the Secretary on the State program op-
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erated under the State plan approved under this
part, including such information as may be nec-
essary to measure State compliance with Federal
requirements for expedited procedures, using
such standards and procedures as are required
by the Secretary, under which the State agency
will determine the extent to which the program
is operated in compliance with this part; and
‘‘(B) a process of extracting from the auto-
mated data processing system required by para-
graph (16) and transmitting to the Secretary
data and calculations concerning the levels of ac-
complishment (and rates of improvement) with
respect to applicable performance indicators (in-
cluding IV–D paternity establishment percent-
ages and overall performance in child support
enforcement) to the extent necessary for purposes
of sections 452(g) and 458.’’.
(b) FEDERAL
ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmitted
by State agencies pursuant to section 454(15)(B) on
State program accomplishments with respect to per-
formance indicators for purposes of subsection (g) of
this section and section 458;
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‘‘(B) review annual reports submitted pursuant
to section 454(15)(A) and, as appropriate, provide to
the State comments, recommendations for additional
or alternative corrective actions, and technical assist-
ance; and
‘‘(C) conduct audits, in accordance with the Gov-
ernment auditing standards of the Comptroller Gen-
eral of the United States—
‘‘(i) at least once every 3 years (or more fre-
quently, in the case of a State which fails to
meet the requirements of this part concerning
performance standards and reliability of pro-
gram data) to assess the completeness, reliability,
and security of the data, and the accuracy of the
reporting systems, used in calculating perform-
ance indicators under subsection (g) of this sec-
tion and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program operated under the
State plan approved under this part, including
assessments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram are being appropriately expended,
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and are properly and fully accounted for;
and
‘‘(II) whether collections and disburse-
ments of support payments are carried out
correctly and are fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to calendar quarters
beginning 12 months or more after the date of the enactment
of this Act.
SEC. 943. 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) to
be applied in following such procedures’’ before the semi-
colon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 901(b), 904(a), 912(a),
913(a), and 933, is amended—
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(1) by striking ‘‘and’’ at the end of paragraph
(28);
(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the following
new paragraph:
‘‘(30) provide that the State shall use the defini-
tions established under section 452(a)(5) in collecting
and reporting information as required under this
part.’’.
SEC. 944. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—
(1) IN GENERAL.—Section 454(16) (42 U.S.C.
654(16)) is amended—
(A) by striking ‘‘, at the option of the
State,’’;
(B) by inserting ‘‘and operation by the
State agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements
of section 454A’’ after ‘‘information retrieval sys-
tem’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
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(F) by striking ‘‘(including’’ and all that
follows and inserting a semicolon.
(2) AUTOMATED DATA PROCESSING.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting
after section 454 the following new section:
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.
‘‘(a) IN GENERAL.—In order for a State to meet the
requirements of this section, the State agency administering
the State program under this part shall have in operation
a single statewide automated data processing and informa-
tion retrieval system which has the capability to perform
the tasks specified in this section with the frequency and
in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated system
required by this section shall perform such functions as the
Secretary may specify relating to management of the State
program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds in carrying out the pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements under this part on a
timely basis.
‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—
In order to enable the Secretary to determine the incentive
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and penalty adjustments required by sections 452(g) and
458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in the
State; and
‘‘(B) to calculate the IV–D paternity estab-
lishment percentage 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 accu-
racy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integrity,
accuracy, and completeness of, access to, and use of data
in the automated system required by this section, which
shall include the following (in addition to such other safe-
guards as the Secretary may specify in regulations):
‘‘(1) POLICIES
RESTRICTING
ACCESS.—Written
policies concerning access to data by State agency
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personnel, and sharing of data with other persons,
which—
‘‘(A) permit access to and use of data only
to the extent necessary to carry out the State
program under this part; and
‘‘(B) specify the data which may be used for
particular program purposes, and the personnel
permitted access to such data.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies described in paragraph
(1).
‘‘(3) MONITORING
OF
ACCESS.—Routine mon-
itoring of access to and use of the automated system,
through methods such as audit trails and feedback
mechanisms, to guard against and promptly identify
unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—Procedures
to ensure that all personnel (including State and local
agency staff and contractors) who may have access to
or be required to use confidential program data are
informed of applicable requirements and penalties
(including those in section 6103 of the Internal Reve-
nue Code of 1986), and are adequately trained in se-
curity procedures.
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‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
authorized access to, or disclosure or use of, confiden-
tial data.’’.
(3) REGULATIONS.—The Secretary of Health and
Human Services shall prescribe final regulations for
implementation of section 454A of the Social Security
Act not later than 2 years after the date of the enact-
ment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sections
904(a)(2) and 912(a)(1), is amended to read as fol-
lows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1997, which meets all re-
quirements of this part which were enacted on or
before the date of enactment of the Family Sup-
port Act of 1988; and
‘‘(B) by October 1, 1999, which meets all re-
quirements of this part enacted on or before the
date of the enactment of the Work Opportunity
Act of 1995, except that such deadline shall be
extended by 1 day for each day (if any) by
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which the Secretary fails to meet the deadline
imposed by section 944(a)(3) of the Work Oppor-
tunity Act of 1995.’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL-
OPMENT COSTS OF AUTOMATED SYSTEMS.—
(1) IN
GENERAL.—Section 455(a) (42 U.S.C.
655(a)) is amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and in-
serting ‘‘the percent specified in paragraph
(3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’
and all that follows and inserting ‘‘, and’’;
and
(B) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 and 1997, 90 percent of so
much of the State expenditures described in paragraph
(1)(B) as the Secretary finds are for a system meeting the
requirements specified in section 454(16) (as in effect on
the day before the date of the enactment of the Work Oppor-
tunity Act of 1995), but limited to the amount approved
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for States in the advance planning documents of such States
submitted on or before May 1, 1995.
‘‘(B)(i) The Secretary shall pay to each State, for each
quarter in fiscal years 1997 through 2001, the percentage
specified in clause (ii) of so much of the State expenditures
described in paragraph (1)(B) as the Secretary finds are
for a system meeting the requirements of sections 454(16)
and 454A.
‘‘(ii) The percentage specified in this clause is the
greater of—
‘‘(I) 80 percent; or
‘‘(II) the percentage otherwise applicable to Fed-
eral payments to the State under subparagraph (A)
(as adjusted pursuant to section 458).’’.
(2) TEMPORARY
LIMITATION
ON
PAYMENTS
UNDER SPECIAL FEDERAL MATCHING RATE.—
(A) IN GENERAL.—The Secretary of Health
and Human Services may not pay more than
$260,000,000 in the aggregate under section
455(a)(3) of the Social Security Act for fiscal
years 1996, 1997, 1998, 1999, and 2000.
(B) ALLOCATION
OF
LIMITATION
AMONG
STATES.—The total amount payable to a State
under section 455(a)(3) of such Act for fiscal
years 1996, 1997, 1998, 1999, and 2000 shall
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not exceed the limitation determined for the
State by the Secretary of Health and Human
Services in regulations.
(C) ALLOCATION
FORMULA.—The regula-
tions referred to in subparagraph (B) shall pre-
scribe a formula for allocating the amount speci-
fied in subparagraph (A) among States with
plans approved under part D of title IV of the
Social Security Act, which shall take into ac-
count—
(i) the relative size of State caseloads
under such part; and
(ii) the level of automation needed to
meet the automated data processing require-
ments of such part.
(c) CONFORMING AMENDMENT.—Section 123(c) of the
Family Support Act of 1988 (102 Stat. 2352; Public Law
100–485) is repealed.
SEC. 945. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF,
RESEARCH AND DEMONSTRATION PROGRAMS, AND SPECIAL
PROJECTS OF REGIONAL OR NATIONAL SIGNIFICANCE.—
Section 452 (42 U.S.C. 652) is amended by adding at the
end the following new subsection:
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‘‘(j) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated to the Secretary for each fiscal year an amount
equal to 1 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the imme-
diately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
as of the end of the 3rd calendar quarter following the end
of such preceding fiscal year), to cover costs incurred by
the Secretary for—
‘‘(1) information dissemination and technical as-
sistance to States, training of State and Federal staff,
staffing studies, and related activities needed to im-
prove programs under this part (including technical
assistance concerning State automated systems re-
quired by this part); and
‘‘(2) 
research, 
demonstration, 
and 
special
projects of regional or national significance relating
to the operation of State programs under this part.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERV-
ICE.—Section 453 (42 U.S.C. 653), as amended by section
916(f), is amended by adding at the end the following new
subsection:
‘‘(n) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-