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CSE BILL - DRAFT - 6/14/94 - Page 12
registry established under section 454A,
regardless of whether application is made for
services under this part; and
"(B) to enforce the support obligation established
with respect to the custodial parent of a child
described in subparagraph (A) . "; ;
(2) in paragraph (6) --
(A) by striking all that precedes subparagraph (C)
and inserting the following:
$0 " (6) provide that--
"(A) services under the State plan shall be made
available to non-residents on the same terms as to
residents;
"(B) no fees or costs shall be imposed on any
absent or custodial parent or other individual--
$0 (i) on or after October 1, 1997, for
application for child support enforcement services
under this part; or
16 (ii) for inclusion in the central State
registry maintained pursuant to section 454A(e);
and
"(C) fees or costs may not be imposed on the
custodial parent (but may be imposed on the
noncustodial parent) for child support collection
services provided through the central collections unit
operated pursuant to section 454B, or for related
CSE BILL - DRAFT - 6/14/94 - Page 13
automated procedures pursuant to section 454A(g) (but
only if such fees or costs are added to, and not
deducted from, amounts collected as child support) ; ;
(B) in each of subparagraphs (C) through (E) --
(i) by indenting such subparagraph and
aligning its left margin with the left margin of
paragraph (B) ; and
(ii) by striking the final comma and
inserting a semicolon;
(C) by adding "and" at the end of subparagraph
(D) : and
(D) in subparagraph (E), to read as follows:
" (E) (at State option, in the case of a State that
imposed fees in fiscal year 1994 (on either the
custodial or the noncustodial parent) to recover costs
of activities not described in the preceding provisions
of this paragraph) impose fees to recover other costs
from the noncustodial parent; и
(c) Conforming Amendments. --
(1) Section 452 (g) (2) (A) is amended by striking
"454(6)" each place it appears and inserting
"454(4)(A)(ii)". M
(2) Section 454 (23) is amended, effective October 1,
1997, by striking "information as to any application fees
for such services and".
CSE BILL - DRAFT - 6/14/94 - Page 14
(3) Section 466(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) is amended by striking "or (6) H
CSE BILL - DRAFT - 6/14/94 - Page 15
SEC. 603. DISTRIBUTION OF PAYMENTS.
(a) Distributions through State Child Support Enforcement
Agency to Former Assistance Recipients. Section 454 (5) is
amended--
(1) in subparagraph (A) --
(A) by inserting "except as otherwise specifically
provided in section 464 or 466 (a) (3) H after "is
effective, ; 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 Receiving AFDC. --
Section 457 is amended--
(1) by striking subsection (a) and redesignating
subsection (b) as subsection (a) ;
(2) in subsection (a), as redesignated--
(A) in the matter preceding paragraph (2), to read
as follows:
H (a) In the Case of a Family Receiving AFDC. 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 (except in the case of
a State exercising the option under subsection (b)) be
distributed as follows:
CSE BILL - DRAFT - 6/14/94 - Page 16
"(1) an amount equal to the amount specified in section
402 (a) (8) (A) (vi) shall be taken from each of--
"(A) amounts received in a month which represent
payments for that month; and
"(B) amounts received in a month which represent
payments for a prior month which were made by the
absent parent in the month when due;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family during such
month; ;
(B) in paragraph (4), by striking "or (B)" and all
that follows and inserting "; then (B) from any
remainder, amounts equal to arrearages of such support
obligations assigned, pursuant to part A, to any other
State or States shall be paid to such other State or
States and used to pay any such arrearages (with
appropriate reimbursement of the Federal Government to
the extent of its participation in the financing) ; and
then (C) any remainder shall be paid to the family.
(3) by inserting after subsection (a), as redesignated,
the following new subsection:
M (b) Alternative Distribution in Case of Family Receiving
AFDC. In the case of a State electing the option under this
subsection, amounts collected as described in subsection (a)
shall be distributed as follows:
CSE BILL - DRAFT - 6/14/94 - Page 17
"(1) an amount equal to the amount specified in section
402 (a) (8) (A) (vi) shall be taken from each of
"(A) amounts received in a month which represent
payments for that month; and
M (B) amounts received in a month which represent
payments for a prior month which were made by the
absent parent in the month when due;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family during such
month;
"(2) second, from any remainder, amounts equal to the
balance of support owed for the current month shall be paid
to the family;
"(3) third, from any remainder, amounts equal to
arrearages of such support obligations assigned, pursuant to
part A, to the State making the collection 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 participation in the financing) ;
" " (4) fourth, from any remainder, amounts equal to
arrearages of such support obligations assigned, pursuant to
part A, to any other State or States shall be paid to such
other State or States and used to pay any such arrearages
(with appropriate reimbursement of the Federal Government to
the extent of its participation in the financing); and
CSE BILL - DRAFT - 6/14/94 - Page 18
"(5) fifth, any remainder shall be paid to the
family
(c) Distribution to a Family Not Receiving AFDC. Section
457(c) is amended to read as follows:
" (c) In Case of Family Not Receiving AFDC. - Amounts
collected by a State agency under this part during any month as
support of a child who is not receiving assistance under part A
(or of a parent or caretaker relative of such a child) shall
(subject to the remaining provisions of this section) be
distributed as follows:
"(1) first, amounts equal to the total of such support
owed for such month shall be paid to the family;
"(2) second, from any remainder, amounts equal to
arrearages of such support obligations for months during
which such child did not receive assistance under part A
shall be paid to the family;
M (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 participation in the financing);
"(4) fourth, from any remainder, amounts equal to
arrearages of such support obligations assigned 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
CSE BILL - DRAFT - 6/14/94 - Page 19
which such arrearages accrued (with appropriate
reimbursement of the Federal Government to the extent of its
participation in the financing) N
(d) Distribution to a Child Receiving Assistance under Title
IV-E. Subsection (d) is amended, in the matter preceding
paragraph (1), by striking "Notwithstanding the preceding
provisions of this section, amounts" and inserting "In Case of a
Child Receiving Assistance under Title IV-E. Amounts".
(e) Suspension or Cancellation of Debts Upon Marriage of
Parents Section 457 is further amended by adding at the end the
following new subsection:
" (e) Suspension or Cancellation of Debts to State Upon
Marriage of Parents. -- (1) Circumstances Requiring Suspension or
Cancellation. In any case in which a State has been assigned
rights to support owed with respect to a child who is receiving
or has received assistance under part A and--
"(A) the parent owing such support marries (or
remarries) the parent with whom such child is living and to
whom such support is owed and applies to the State for
relief under this subsection;
"(B) the State determines (in accordance with
procedures and criteria established by the Secretary) that
the marriage is not a sham marriage entered into solely to
satisfy this subsection; and
"(C) the combined income of such parents is less than
twice the Federal poverty line,
CSE BILL - DRAFT - 6/14/94 - Page 20
the State shall afford relief to the parent owing such support in
accordance with paragraph (2).
(2) Suspension or Cancellation. In the case of a marriage
or remarriage described in paragraph (1), the State shall
either--
"(A) cancel all debts owed to the State pursuant to
such assignment, or
"(B) suspend collection of such debts for the duration
of such marriage, and cancel such debts if such duration
extends beyond the end of the period with respect to which
support is owed.
" (3) Notice Required. The State shall notify custodial
parents of children who are receiving aid under part A of the
relief available under this subsection to individuals who marry
(or remarry) ".
(f) Regulations. The Secretary shall promulgate
regulations--
(1) under title IV-D of the Social Security Act,
establishing a uniform nationwide standard for allocation of
child support collections from an obligor owing support to
more than one family; and
(2) under title IV-A of such Act, establishing
standards applicable to States electing the alternative
formula under section 457(b) of the Social Security Act for
distribution of collections on behalf of families receiving
CSE BILL - DRAFT - 6/14/94 - Page 21
Aid to Families with Dependent Children, designed to
minimize irregular monthly payments to such families.
(g) Clerical Amendment. -- Section 454 is amended--
(1) in paragraph (11), by striking "(11)" and inserting
"(11)(A)"; and
(2) by redesignating paragraph (12) as subparagraph (B)
of paragraph (11).
(h) Conforming Amendment. Section 402(a)(26)(A)(i), as
redesignated by section 601 (b) (2) (A), is amended--
(1) by striking "(I)"; and
(2) by striking ", and (II)" and all that follows
before the semicolon.
CSE BILL - DRAFT - 6/14/94 - Page 22
SEC. 604. DUE PROCESS RIGHTS.
(a) Section 454, as amended by section 603(g), is further
amended by inserting after paragraph (11) the following new
paragraph:
"(12) provide for procedures to ensure that--
"(A) individuals who 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 established or
modified; and
"(ii) receive a copy of any order
establishing or modifying a child support
obligation within 14 days after issuance of such
order; and
"(B) individuals receiving services under this
part have access to a fair hearing or other formal
complaint procedure, meeting standards established by
the Secretary, that ensures prompt consideration and
resolution of complaints (but the resort to such
procedure shall not stay the enforcement of any support
order) ;".
(b) Effective Date. The amendments made by this section
shall become effective on October 1, 1996.
CSE BILL - DRAFT - 6/14/94 - Page 23
SEC. 605. PRIVACY SAFEGUARDS.
(a) State Plan Requirement. Section 454, as amended by
section 601, is further amended--
(1) by striking "and" at the end of paragraph (24) ;
(2) by striking the period at the end of paragraph (25)
and inserting "; and"; and
(3) by adding after paragraph (25) the following new
paragraph:
"(26) 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--
"(A) safeguards against unauthorized use or
disclosure of information relating to proceedings or
actions to establish paternity, or to establish or
enforce support; and
"(B) prohibitions on the release of information on
the whereabouts of one party to another party against
whom a protective order with respect to such party has
been entered. M
(b) The amendments made by this section shall become
effective on October 1, 1996.
CSE BILL - DRAFT - 6/14/94 - Page 24
SEC. 606. REQUIREMENT TO FACILITATE ACCESS TO SERVICES.
(a) State Plan Requirement. Section 454 (23) is amended--
(1) by striking "the State will regularly" and
inserting "the State will--
"(A) regularly";
(2) by incorporating the remainder of the text within
subparagraph (A) ;
(3) by striking "and" at the end; and
(4) by adding after and below subparagraph (A) the
following new subparagraph:
"(B) have a plan for outreach to parents designed
to disseminate information about and increase access to
child support enforcement services, including plans
responding to needs--
и (i) of working parents to obtain such
services without taking time off work; and
"(ii) of parents with limited proficiency in
English for elimination of language barriers to
use of such services; and".
(b) The amendments made by this section shall become
effective on October 1, 1996.
CSE BILL - DRAFT - 6/14/94 - Page 25
Part B - Program Administration and Funding
SEC. 611. FEDERAL MATCHING PAYMENTS.
(a) Increased Base Matching Rate. Section 455 (a) (2) is
amended to read as follows:
"(2) The applicable percent for a quarter for purposes
of paragraph (1) (A) is--
"(A) for fiscal year 1996, 69 percent,
"(B) for fiscal year 1997, 72 percent, and
H "(C) for fiscal year 1998 and succeeding fiscal
years, 75 percent. #
(b) Maintenance of Effort. Section 455 is amended--
(1) in subsection (a) (1), in the matter preceding
subparagraph (A), by striking "From" and inserting "Subject
to subsection (c), from"; and
(2) by inserting after subsection (b) the following new
subsection:
# (c) Maintenance of Effort. Notwithstanding the provisions
of subsection (a), total expenditures for the State program under
this part for fiscal year 1996 and each succeeding fiscal year,
reduced by the percentage specified for such fiscal year under
subsection (a) (2) (A), (B), or (C) (i), shall not be less than such
total expenditures for fiscal year 1995, reduced by 66 percent.
CSE BILL - DRAFT - 6/14/94 - Page 26
SEC. 612. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) Incentive Adjustments to Federal Matching Rate. -- (1) In
General. Section 458 is amended to read as follows:
"INCENTIVE ADJUSTMENTS TO MATCHING RATE
"Sec. 458. (a) Incentive Adjustment -- (1) In General. In
order to encourage and reward State child support enforcement
programs which perform in an effective 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, 1997, shall
be increased by a factor reflecting the sum of the applicable
incentive adjustments (if any) determined in accordance with
regulations under this section with respect to Statewide
paternity establishment and to overall performance in child
support enforcement.
"(2) Standards. The Secretary shall specify in
regulations-
"(A) the levels of accomplishment, and rates of
improvement as alternatives to such levels, which States
must attain to qualify for incentive adjustments under this
section; and
"(B) " the amounts of incentive adjustment that shall be
awarded to States achieving specified accomplishment or
improvement levels, which amounts shall be graduated,
ranging up to--
"(i) 5 percentage points, in connection with
Statewide paternity establishment; and
CSE BILL - DRAFT - 6/14/94 - Page 27
"(ii) 10 percentage points, in connection with
overall performance in child support enforcement.
(3) Determination of Incentive Adjustment 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 indicators specified by the Secretary pursuant to
this section.
"(4) Fiscal Year Subject to Incentive Adjustment. 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 applicable percent under section 455 (a) (2)
for payments to such State for the succeeding fiscal year.
"(b) Meaning of Terms. For purposes of this section--
"(1) the term 'Statewide paternity establishment
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 support
enforcement' means a measure or measures of the
CSE BILL - DRAFT - 6/14/94 - Page 28
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
"(D) the cost-effectiveness of the State program,
as determined in accordance with standards established by
the Secretary in regulations
(b) Title IV-D Payment Adjustment Section 455 (a) (2), as
amended by section 611, is further amended--
(1) by striking the period at the end of subparagraph
(C) (ii) and inserting a period; 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) determined
by the Secretary pursuant to section 458. M
(c) Conforming Amendments. -Section 454 (22) is amended--
(A) by striking "incentive payments" the first place it
appears and inserting "incentive adjustments"; and
(B) by striking "any such incentive payments made to
the State for such period" and inserting "any increases in
Federal payments to the State resulting from such incentive
adjustments".
CSE BILL - DRAFT - 6/14/94 - Page 29
(d) Calculation of IV-D Paternity Establishment
Percentage.- -- (A) Section 452(g) is amended in paragraph (1), in
the matter preceding subparagraph (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,".
(B) Section 452 (g) (2) is amended--
(i) in subparagraph (A), in the matter preceding clause
(i)
(I) by striking "paternity establishment
percentage" and inserting "IV-D paternity establishment
percentage"; and
(II) by striking "(or all States, as the case may
be)
(ii) in subparagraph (A) (i), by striking "during the
fiscal year";
(iii) in subclause (I) of subparagraph (A) (ii), 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";
(iv) in subclause (II) of subparagraph (A) (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";
(v) in subparagraph (A) (iii) --
(I) by striking "during the fiscal year"; and
CSE BILL - DRAFT - 6/14/94 - Page 30
(II) by striking "and" at the end; and
(vi) in the matter following subparagraph (A)
(I) by striking "who were born out of wedlock
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.
(C) Section 452(g)(3) is amended--
(i) by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively;
(ii) in subparagraph (A), as redesignated, by striking
"the percentage of children born out-of-wedlock 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
(iii) in subparagraph (B), as redesignated--
(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) Title IV-A Payment Reduction. Section 403 is amended--
CSE BILL - DRAFT - 6/14/94 - Page 31
(1) in subsection (a), by striking "1958--" and
inserting "1958 (subject to subsection (h) ;
(2) in subsection (h), by striking all that precedes
paragraph (3) and inserting the following:
"(h)(1) If the Secretary finds, with respect to a State
program under this part in a fiscal year beginning on or
after October 1, [1996]-- --
M (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
performance measures that may be established by the
Secretary, or
H "(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 pursuant to section
454 (15) (B) is incomplete or unreliable; and
"(B) that, with respect to the succeeding fiscal
year--
# (i) the State failed to take sufficient
corrective action to achieve the appropriate
performance levels as described in subparagraph
(A)(i), or
CSE BILL - DRAFT - 6/14/94 - Page 32
"(ii) the data submitted by the State
pursuant 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 fiscal
year, prior to quarters following the end of the first
quarter throughout which the State program is in compliance
with such performance requirement, shall be reduced by the
percentage specified in paragraph (2).
"(2) The reductions required under paragraph (1) shall
be--
M (A) not less than one nor more than two percent,
or
H (B) not less than two nor more than three
percent, if the finding is the second consecutive
finding made pursuant to paragraph (1), or
"(C) not less than three nor more than five
percent, if the finding is the third or a subsequent
consecutive such finding. ; and
(3) in subsection (h) (3), by striking "not in full
compliance" and all that follows and inserting "determined
as a result of an audit to have submitted incomplete or
unreliable data pursuant to section 454 (15) (B), shall be
determined 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
CSE BILL - DRAFT - 6/14/94 - Page 33
does not adversely affect the determination of the level of
the State's performance. "
(f) Effective Dates --
(1) Incentive Adjustments. -- (A) The amendments made by
subsections (a), (b), and (c) shall become effective October
1, 1996, except to the extent provided in subparagraph (B).
(B) The provisions of section 458 of the 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 1998.
(2) Penalty Reductions -- (A) The amendments 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 quarters beginning on and
after the date one year after the date of enactment of this
Act.
CSE BILL - DRAFT - 6/14/94 - Page 34
SEC. 613. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) State Agency Activities. -Section 454 is amended--
(1) in paragraph (14), by striking "(14)" and inserting
" (14) (A) ;
(2) by redesignating paragraph (15) as subparagraph (B)
of paragraph (14); and
(3) by inserting after paragraph (14) the following new
paragraph:
"(15) provide for--
"(A) a process for annual reviews of and reports
to the Secretary on the State program under this part,
using such standards and procedures as are required by
the Secretary, under which the State agency will
determine the extent to which such program is in
conformity with applicable requirements 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) an annual process of extracting from the
State automated data processing system and transmitting
to the Secretary data and calculations concerning the
levels of accomplishment (and rates of improvement)
with respect to applicable performance indicators
(including IV-D paternity establishment percentages and
overall performance in child support enforcement) to
CSE BILL - DRAFT - 6/14/94 - Page 35
the extent necessary for purposes of sections 452(g)
and 458 "
(b) Federal Activities. -Section 452 (a) (4) is amended to
read as follows:
'(4) (A) review data and calculations transmitted
annually 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 403 (h) 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 deficiencies are indicated by
such report on the status of complaints under the State
procedure under section 454 (12) (B) and, as appropriate,
provide to the State agency comments, recommendations for
additional 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 regulations
implementing such requirements, concerning performance
CSE BILL - DRAFT - 6/14/94 - Page 36
standards and reliability of program data) to assess
the completeness, reliability, and security of the
data, and the accuracy of the reporting systems, used
for the calculations of performance indicators
specified in subsection (g) and section 458;
"(ii) of the adequacy of financial management of
the State program, including assessments of--
"(I) whether Federal and other funds made
available to carry out the State program under
this part are being appropriately expended, and
are properly and fully accounted for; and
"(II) whether collections and disbursements
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 Secretary
may find necessary; H
(c) Effective Date. The amendments made by this section
shall be effective with respect to fiscal years beginning on or
after the date one year after enactment of this section.
CSE BILL - DRAFT - 6/14/94 - Page 37
SEC. 614. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) Revised Requirements. -- (1) Section 454 (16) is amended--
(A) by striking ", at the option of the State, for the
establishment" and inserting "for the establishment and
operation by the State agency, on and after October 1,
1995, ; and
(B) by striking all that follows "in the administration
of the State plan" and inserting "meeting the requirements
of section 454A;
(2) Part D of title IV is amended 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 requirement of
section 454 (16), a State agency shall have in operation 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 Secretary.
H (b) Program Management. The automated system required
under this section shall perform such functions as the Secretary
may specify relating to management of the program under this
part, including controlling and accounting for use of Federal,
State, and local funds to carry out such program.
CSE BILL - DRAFT - 6/14/94 - Page 38
H (c) Calculation of Performance Indicators. -- 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 establishment and
child support enforcement in the State; and
(B) to calculate the IV-D paternity establishment
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 accuracy of the
calculations described in paragraph (1)(B).
06 (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 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 of 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 responsibilities,
CSE BILL - DRAFT - 6/14/94 - Page 39
# (B) specify the data which may be used for
particular program purposes, and the personnel
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 paragraph (1).
"(3) Monitoring of Access. Routine monitoring 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. 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 required to use sensitive or
confidential program data are fully informed of applicable
requirements and penalties, and are adequately trained in
security procedures.
# (5) Penalties. The State agency shall have in effect
administrative penalties (up to and including dismissal from
employment) for unauthorized access to, or disclosure or use
of, confidential data. H
CSE BILL - DRAFT - 6/14/94 - Page 40
(3) Extension of Deadline. Section 454 (24) is amended to
read as follows:
"(24) provide that the State will have in effect an
automated data processing and information retrieval system--
"(A) by October 1, 1995, meeting all requirements
of this part which were enacted prior to August 10,
1993; and
M (B) by October 1, 1998, meeting all requirements
of this part enacted on or before the date of enactment
of the Comprehensive Welfare Reform and Family Support
Amendments of 1994 (but this provision shall not be
construed to alter earlier deadlines specified for
elements of such system) ;
(b) Enhanced Federal Matching for Development Costs of
Automated Systems Section 455 (a) is amended--
(1) in paragraph (1) (B)--
(A) by striking "90 percent" and inserting "the
percent specified in paragraph (3) ;
(B) by striking "so much of"; and
(C) by striking "which the Secretary" and all that
follows and inserting , and"; and
(2) by adding at the end the following new paragraph"
" (3) (A) The Secretary shall pay to each State, for each
quarter in fiscal year 1995, 90 percent of so much of State
expenditures described in subparagraph (1) (B) as the Secretary
finds are for a system meeting the requirements specified in
CSE BILL - DRAFT - 6/14/94 - Page 41
section 454(16), or meeting such requirements without regard to
clause (D) thereof.
H (B) (i) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 through 2000, the percentage
specified in clause (ii) of so much of State expenditures
described in subparagraph (1) (B) as the Secretary finds are for a
system meeting the requirements specified in section 454(16) and
454A, subject to clause (iii).
"(ii) The percentage specified in this clause, for purposes
of clause (i), is the higher of--
"(I) 80 percent, or
"(II) the percentage otherwise applicable to Federal
payments to the State under subparagraph (A) (as adjusted in
pursuant to section 458).
"(iii) Notwithstanding any other provision of this section,
the total amount payable by the Secretary with respect to
expenditures during fiscal years specified in clause (i) shall
not exceed $260,000,000, to be distributed among the States, and
to be made available at such time or times over the five-year
period, as is provided in regulations issued by the Secretary,
taking into account the relative size of State caseloads and the
level of automation needed to meet the requirements of this part,
and payments under clause (i) shall be made to a State at such
times and in such a manner as provided in the advance planning
document approved under section 452(d) .". H
CSE BILL - DRAFT - 6/14/94 - Page 42
(c) Additional Provisions. -- For additional provisions of
section 454A, as added by subsection (a), see sections 621, 622,
and 636 of this Act.
CSE BILL - DRAFT 6/14/94 - Page 43
SEC. 615. DIRECTOR OF CSE PROGRAM; TRAINING AND STAFFING.
(a) Reporting to Secretary. Section 452 (a) is amended, in
the matter preceding paragraph (1), by striking "directly".
(b) Training Program. Section 452(a) (7) is amended by
striking "paternity;" and inserting "paternity, through
activities including--
"(A) development of a core curriculum and training
standards to be used by States in the development of
State-specific training guides; and
"(B) development of a national training program
for directors of State programs under this part;".
(c) State Plan Requirement. -Section 454, as amended by
sections 602 and 604, is further amended--
(1) by striking "and" at the end of paragraph (25) ;
(2) by striking the period at the end of paragraph (26)
and inserting "; and"; and
(3) by adding after paragraph (26) the following new
paragraph:
"(27) provide that the State agency will develop and
implement a training program which--
"(A) is consistent with the national training
standards and core curriculum developed by the
Secretary pursuant to section 452 (a) (7), and uses a
State-specific training guide incorporating such core
curriculum;
CSE BILL - DRAFT - 6/14/94 - Page 44
" (B) provides for initial and ongoing training of
all staff (including State and local agency staff and
contractors) of the program under this part, including
annual training for case workers and special training
when significant changes are made in statutes,
regulations, policies, or procedures; and
"(C) may provide (subject to approval by the
Secretary) for appropriate training of other persons
with responsibilities relating to the implementation of
the State program under this part (including staff
administering programs under part A, part E, title XIX,
and other related and complementary programs; judges
and other staff of judicial and administrative
tribunals; law enforcement personnel; staff of social
services organizations; and the private bar).
(d) Staffing Studies. -- - (1) Scope of Study The Secretary of
Health and Human Services shall, directly or by contract, conduct
studies of the staffing of each State child support enforcement
program under title IV-D of the Act. Such studies shall include a
review of the staffing needs created by requirements for
automated data processing, maintenance of a central case
registry, and centralized collections of child support, and of
changes in these needs resulting from changes in such
requirements.
(2) Frequency of Studies. The Secretary shall complete the
first staffing study required under paragraph (1) by October 1,
CSE BILL - DRAFT - 6/14/94 - Page 45
1996, and may conduct additional studies subsequently at
appropriate intervals.
(3) Report to Congress -- The Secretary shall submit a report
to the Congress stating the findings and conclusions of each
study conducted under this subsection.
CSE BILL - DRAFT - 6/14/94 - Page 46
SEC. 616. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE PROGRAMS.
Section 452 is amended by adding at the end the following
new subsection:
"(j) Funding for Federal Activities Assisting State
Programs -- (1) There shall be available to the Secretary, from
amounts appropriated for fiscal year 1995 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) ;
"(B) research, demonstrations, 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 and the National Welfare Reform
Information Clearinghouse under section 453A, to the extent
such costs are not recovered through user fees.
M (2) The amount specified in this paragraph for a fiscal
year is the amount equal to a percentage of the reduction 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 aid under such part A in
such preceding fiscal year, equal to--
CSE BILL - DRAFT - 6/14/94 - Page 47
"(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).".
CSE BILL - DRAFT . - 6/14/94 - Page 48
SEC. 617. DATA COLLECTION AND REPORTS BY THE SECRETARY.
(a) Annual Report to Congress. -- (1) Section 452 (a) (10) (A) is
amended--
(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 individuals
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 aid 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) is amended--
(A) in the matter preceding clause (i)--
CSE BILL - DRAFT - 6/14/94 - Page 49
(i) by striking "with the data required under each
clause being separately stated for 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);
(E) by redesignating clause (v) as clause (vii), and
inserting after clause (iii) the following new clauses:
"(iv) the total amount of support collected
during such fiscal year and distributed as current
support;
"(v) the total amount of support collected
during such fiscal year and distributed as
arrearages;
"(vi) the total amount of support due and
unpaid for all fiscal years; and".
CSE BILL - DRAFT - 6/14/94 - Page 50
(3) Section 452 (a) (10) (G) is amended by striking "on the use
of Federal courts and".
(4) Section 452 (a) (10) is further amended by striking the
matter following the end of subparagraph (I).
(b) Data Collection and Reporting. Section 469 is amended--
(1) in subsections (a) and (b), to read as follows:
H (a) The Secretary shall collect and maintain, on a fiscal
year basis, up-to-date statistics, by State, with respect to
services to establish paternity and services to establish child
support obligations, the data specified in subsection (b),
separately stated, in the case of each such service, with respect
to--
"(1) families (or dependent children) receiving aid
under plans approved under part A (or E); and
"(2) families not receiving such aid.
H (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
(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 1994 and
succeeding fiscal years.
CSE BILL - DRAFT - 6/14/94 - Page 51
Part C - Locate and Case Tracking
SEC. 621. CENTRAL STATE CASE REGISTRY.
Section 454A, as added by section 614, is further amended by
adding at the end the following new subsections:
"(e) Central Case Registry. -- (1) In General. The automated
system required under this section shall perform the functions,
in accordance with the provisions of this subsection, of a single
central registry containing records with respect to each case in
which services are being provided by the State agency (including,
on and after October 1, 1997, each order specified in section
466 (a) (12) ) using such standardized data elements (such as
names, social security numbers or other uniform identification
numbers, dates of birth, and case identification numbers), and
containing such other information (such as information on case
status) as the Secretary may require.
04 (2) Payment Records Each case record in the central
registry shall include a record of--
и (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 the support obligation will
terminate under such order;
M "(C) all child support and related amounts collected
(including such amounts as fees, late payment penalties, and
interest on arrearages) ; and
CSE BILL - DRAFT - 6/14/94 - Page 52
"(D) the distribution of such amounts collected.
H (3) Updating and Monitoring. The State agency shall
promptly establish and maintain, and regularly monitor, case
records in the registry required by this subsection, 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;
и (c) information on support collections and
distributions; and
"(D) any other relevant information.
(f) Data Matches. 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 receive data from, other data bases and data
matching services, in order to obtain (or provide) information
necessary to enable the State agency (or the 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:
" (A) National Child Support Registry. Furnish to the
National Child Support Registry established under section
453A (and update as necessary, with information including
CSE BILL - DRAFT - 6/14/94 - Page 53
notice of expiration of orders) minimal information (to be
specified by the Secretary) on each child support case in
the central case registry.
# (B) Federal Parent Locator Service. -- Exchange data
with the Federal Parent Locator Service for the purposes
specified in section 453.
"(C) 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. "
CSE BILL - DRAFT . - 6/14/94 - Page 54
SEC. 622. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) State Plan Requirement. Section 454, as previously
amended by sections 601, 605, and 615, is further amended--
(A) by striking "and" at the end of paragraph (26) ;
(B) by striking the period at the end of paragraph (27)
and inserting "; and"; and
(C) by adding after paragraph (27) the following new
paragraph:
"(28) provide that the State agency, on and after
October 1, 1997--
00 '(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 (consisting
of State employees, and (at State option) contractors
reporting directly to the State agency) to monitor and
enforce support collections through such centralized
unit, including carrying out the automated data
processing responsibilities specified in section
454A (g) and to impose, as appropriate in particular
cases, the administrative enforcement remedies
specified in section 466 (c) (1) . H
CSE BILL - DRAFT - 6/14/94 - Page 55
(b) Establishment of Centralized Collection Unit Part D of
title IV is amended 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(28), the State agency must operate 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--
"(1) operated directly by the State agency (or by two
or more State agencies under a regional cooperative
agreement), or by a single contractor responsible 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 enforced by
the State pursuant to section 454(4).
" (b) Required Procedures. The centralized collections unit
shall use automated procedures, electronic processes, and
computer-driven technology to the maximum extent feasible,
efficient, and economical, for the collection and disbursement of
support payments, including procedures--
"(1) for receipt of payments from parents, employers,
and other States, and for disbursements to custodial parents
CSE BILL - DRAFT - 6/14/94 - Page 56
and other obligees, the State agency, and the State agencies
of other States;
"(2) for accurate identification of payments;
"(3) to ensure prompt disbursement of the custodial
parent's share of any payment; and
"(4) to furnish to either parent, upon request, timely
information on the current status of support payments. #
(c) Use of Automated System. Section 454A, as added by
section 614 and amended by section 621, is further amended by
adding at the end the following new subsection:
H (g) Centralized Collection and Distribution of Support
Payments. The automated system required under this section shall
be used, to the maximum extent feasible, to assist and facilitate
collections and disbursement of support payments through the
centralized collections unit operated pursuant to section 454B,
through the performance of functions including at a minimum--
"(1) generation of orders and notices to employers (and
other debtors) for the withholding of wages (and other
income)
" (A) within two working days after receipt (from
the National Directory of New Hires or any other
source) of notice of and the income source subject to
such withholding; and
" (B) using uniform formats directed by the
Secretary;
CSE BILL - DRAFT - 6/14/94 - Page 57
"(2) ongoing monitoring to promptly identify failures
to make timely payment; and
"(3) automatic use of enforcement mechanisms (including
mechanisms authorized pursuant to section 466(c)) where
payments are not timely made. . M .
(d) The amendments made by this section shall become
effective on October 1, 1997.
CSE BILL - DRAFT - 6/14/94 - Page 58
SEC. 623. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) Mandatory Income Withholding-- (1) Section 466 (a) (1) is
amended to read as follows:
"(1) Income Withholding. -- (A) Under Orders Enforced
Under the State Plan. 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) Under Certain Orders Predating Change in
Requirement Procedures under which all child support
orders issued (or modified) before October 1, 1995, and
which are not otherwise subject to withholding under
subsection (b), shall become subject to withholding from
wages as provided in subsection (b) if arrearages occur,
without the need for a judicial or administrative hearing. M
(2) Section 466 (a) (8) is repealed.
(3) Section 466(b) is amended--
(A) in the matter preceding paragraph (1), by striking
"subsection (a) (1) and inserting "subsection (a) (1) (A) ;
(B) in paragraph (5), by striking all that follows
"administered by" and inserting "the State through the
centralized collections unit established pursuant to section
454B, in accordance with the requirements of such section
454B. ;
(C) in paragraph (6) (A) (i)
CSE BILL - DRAFT - 6/14/94 - Page 59
(i) by inserting ", in accordance with timetables
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)--
(i) by striking "employer who discharges" and
inserting "employer who-- (A) discharges";
(ii) by relocating subparagraph (A), as
designated, 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 subparagraph (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 subsection.
(b) Conforming Amendment. Section 466 (c) is repealed.
CSE BILL - DRAFT - 6/14/94 - Page 60
(c) Definition of Terms. The Secretary shall promulgate
regulations providing definitions, for purposes of title IV-D of
the Act, for the term "income". and for such other terms relating
to income withholding under section 466(b) of the Act as the
Secretary may find it necessary or advisable to define.
CSE BILL - DRAFT - 6/14/94 - Page 61
SEC. 624. LOCATOR INFORMATION FROM INTERSTATE NETWORKS AND LABOR
UNIONS.
State Law Requirement. Section 466(a), as amended by
section 623, is amended by adding after paragraph (7) the
following new paragraph:
"(8) Locator Information. -- (A) Interstate 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 network or system used to locate individuals--
"(i) for purposes relating to the use of motor
vehicles; or
" "(ii) providing information for law enforcement
purposes (where child support enforcement agencies are
otherwise allowed access by State and Federal law),
unless all Federal and State agencies administering programs
under this part (including the entities established under
sections 453 and 453A) have access to information in such
system or network to the same extent as any other user of
such system or network.
M (B) Labor Unions. Procedures under which labor
unions, and their hiring halls, must furnish to the State
agency, upon request, with respect to any union member
against whom paternity or a support obligation is sought to
be established or enforced, such information as the union or
hiring hall may have on such member's residential address
CSE BILL - DRAFT - 6/14/94 - Page 62
and telephone number, employer's name, address, and
telephone number, and wages and medical insurance
benefits.".
CSE BILL - DRAFT - 6/14/94 - Page 63
SEC. 625. NATIONAL WELFARE REFORM INFORMATION CLEARINGHOUSE.
(a) Part D of title IV is amended by adding after section
453 the following new section:
"NATIONAL WELFARE REFORM INFORMATION CLEARINGHOUSE
"Sec. 453A. (a) (1) 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 operate a National Welfare Reform
Information Clearinghouse, performing the functions and meeting
the requirements specified in this section, and containing the
registries and directory specified in paragraph (2).
'(2) Components Specified. The registries and directory
specified in this paragraph, for purposes of paragraph (1), are:
'(A) the National Child Support Registry established
pursuant to subsection (b) ;
"(B) the National Directory of New Hires established
pursuant to subsection (c);
"(C) the Federal Parent Locator Service established
pursuant to section 453; and
"(D) the National Welfare Receipt Registry established
pursuant to section 411.
" (3) Use of Term. For purposes of this section, references
to registries maintained under this section shall be considered
to include the National Directory of New Hires and the Federal
Parent Locator Service.
CSE BILL - DRAFT - 6/14/94 - Page 64
" (b) National Child Support Registry. -- (1) In General The
Secretary shall establish by October 1, 1997, and maintain
thereafter, an automated registry, to be known as the National
Child Support Registry, containing minimal information (in
accordance with paragraph (2)) on each case in each State central
case registry maintained pursuant to section 454A(e), as
furnished (and regularly updated), pursuant to section 454A(f),
by State agencies administering programs under this part.
" (2) Case Information. The case information required to be
furnished pursuant to this subsection, as specified by the
Secretary, 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 established),
and the State or States which have established or modified, or
are enforcing or seeking to establish, such an order.
" (c) National Directory of New Hires (1) In General. The
Secretary shall establish by October 1, 1997, and maintain
thereafter, an automated directory, to be known as the National
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 agencies
administering State unemployment compensation laws, in
accordance with paragraph (3).
CSE BILL - DRAFT - 6/14/94 - Page 65
" (2) Employer Information. -- (A) Information Required --
Subject to subparagraph (D), each employer shall furnish to the
Secretary, for inclusion in the directory under this subsection,
not later than 10 days after the date (on or after October 1,
1997) 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 employer.
"(B) Reporting Method and Format. The Secretary shall
provide for transmission of the reports required under
subparagraph (A) using formats and methods which minimize the
burden on employers, which shall include-
"(i) automated or electronic transmission of such
reports;
"(ii) transmission by regular mail; and
"(iii) transmission of a copy of the form required for
purposes of compliance with section 3402 of the Internal
Revenue Code of 1986.
" (C) Employee Defined. For purposes of this paragraph, the
term 'employee'--
H (i) means (subject to clause (ii)) any individual
subject to the requirement of section 3402 (f) (2) of the
Internal Revenue Code of 1986; and
"(ii) does not include an employee of a Federal or
State agency performing law enforcement functions, or of a
Federal agency performing intelligence or
CSE BILL - DRAFT - 6/14/94 - Page 66
counterintelligence functions, where the head of such agency
has determined that reporting pursuant to this paragraph
with respect to such employee could endanger the safety of
the employee or compromise an ongoing investigation or
intelligence mission.
(D) Paperwork Reduction Requirement. As required by the
information resources management policies published by the
Director of the Office of Management and Budget pursuant to 44
U.S.C. 3504(b)(1), 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 enables the Secretary to collect the needed
information in a more cost-effective and equally expeditious
manner, taking into account the reporting costs on employers.
04 (E) Civil Money Penalty on Noncomplying Employers. -- (i) Any
employer that fails to make a timely report in accordance with
this paragraph with respect to an individual 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
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
CSE BILL - DRAFT - 6/14/94 - Page 67
apply to a civil money penalty or proceeding under section
1128A(a).
M "(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.
00 (3) Employment Security Information. -- (A) Reporting
Requirement. Each State agency administering a State
unemployment compensation law approved by the Secretary of Labor
under the Federal Unemployment Tax Act shall furnish to the
Secretary of Health and Human Services extracts of the reports to
the Secretary of Labor concerning the wages and unemployment
compensation paid to individuals required under section
303 (a) (6), in accordance with subparagraph (B).
se (B) Manner of Compliance. The extracts required under
subparagraph (A) shall be furnished to the Secretary of Health
and Human Services on a quarterly basis, with respect to calendar
quarters beginning on and after October 1, 1995, by such dates,
in such format, and containing such information as required by
that Secretary in regulations.
" (d) Data Matches and Other Disclosures. (1) Verification
by Social Security Administration (A) The Secretary shall
transmit data on individuals and employers in the registries
maintained under this section to the Commissioner of Social
Security to the extent necessary for verification in accordance
with subparagraph (B).
CSE BILL - DRAFT - 6/14/94 - Page 68
" (B) The Commissioner of Social Security shall verify the
accuracy of, correct or supply to the extent necessary and
feasible, and report to the Secretary, 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
"(ii) the employer identification number of each
employer.
00 (2) Child Support Locator Matches. For the purpose of
locating individuals for purposes of paternity establishment and
establishment and enforcement of child support, the Secretary
shall--
"(A) match data in the New Hire Directory against data
in the Child Support Registry not less often than every 2
working days; and
M (B) report information obtained from such a match to
concerned State agencies operating programs under this part
not later than 2 working days after such match.
" (3) Data Matches and Disclosures for Other Welfare Reform
Purposes. The Secretary is authorized--
"(A) to perform matches of data in each registry
maintained under this section against data in each other
such registry (other than the matches required pursuant to
paragraph (1)), and to report information resulting from
such matches to State agencies operating programs under this
part and parts A, F, and G; and
CSE BILL - DRAFT - 6/14/94 - Page 69
"(B) to disclose data in such registries to such State
agencies--
to the extent, and with the frequency, that the Secretary
determines to be effective in assisting such States to carry out
their responsibilities under such programs.
" (4) Other Disclosures of New Hire Data. The Secretary is
authorized to disclose data in the New Hire Directory under
subsection (c)
"(A) to the Secretary of the Treasury for purposes
directly connected with--
" (i) the administration of the earned income tax
credit under section 32 of the Internal Revenue Code of
1986, or the advance payment of such credit under
section 3507 of such Code; or
"(ii) verification of a dependency exemption claim
in an individual tax return; and
M (B) to State agencies operating employment security
and workers compensation programs, for the purpose of
assisting such agencies to determine the allowability of
claims for benefits under such programs.
# (5) Disclosures for Research Purposes. The Secretary is
authorized to disclose data in registries maintained under this
section for research purposes found by the Secretary to be likely
to contribute to achieving the purposes of this part or part A,
F, or G, but without personal identifiers.
CSE BILL - DRAFT - 6/14/94 - Page 70
M (f) 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 Commissioner in performing the verification
services specified in subsection (d).
H (2) For Information from SESAs. The Secretary shall
reimburse costs incurred by State employment security agencies in
furnishing data as required by subsection (c) (3), at rates which
the Secretary determines to be reasonable (which rates shall not
include payment for the costs of obtaining, compiling, or
maintaining such data).
" (3) For Information Furnished to State Agencies. State
agencies receiving data or information from the Secretary
pursuant to this section shall reimburse the costs incurred by
the Secretary in furnishing such data or 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).
M (g) Restriction on Disclosure and Use. Data in registries
maintained pursuant to this section, and information resulting
from matches using data maintained in such registries, shall not
be used or disclosed except as specifically provided in this
section.
H (h) Retention of Data. Data in registries maintained
pursuant to this title, and data resulting from matches performed
pursuant to this section, shall be retained for such period
CSE BILL - DRAFT - 6/14/94 - Page 71
(determined by the Secretary) as appropriate for the data uses
specified in this section.
"(i) Information Integrity and Security. The Secretary
shall establish and implement safeguards with respect to the
entities established under this section designed to--
"(1) ensure the accuracy and completeness of
information in the system; and
"(2) restrict access to confidential information in the
registries to authorized persons, and restrict use of such
information to authorized purposes.
"(j) Limit on Liability. The Secretary shall not be liable
to either a State or an individual for inaccurate information
provided to a registry maintained under this section and
disclosed by the Secretary in accordance with this section.
(b) Exemption from Certain Computer Matching Requirements. --
5 U.S.C. 552a(a) (8) (B) is amended--
(1) by striking "or" at the end of clause (v);
(2) by adding "or" at the end of clause (vi); and
(3) by adding after clause (vi) the following new
clause:
"(vii) matches-
"(I) by the Federal Parent Locator Service
pursuant to section 453 of the Social Security
Act; or