42 U.S.C. § 654a — Automated data processing

Page 2308 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 654a which the Secretary of Health and Human Services has determined that State legislation is required in order to conform the State plan approved under part D of title IV of the Social Security Act [42 U.S.C. 651 et seq.] to the requirements imposed by any amendment made by this subtitle [subtitle E (§§ 171–176) of title I of Pub. L. 97–248, see Tables for classification], the State plan shall not be regarded as failing to comply with the re- quirements of such part solely by reason of its failure to meet the requirements imposed by such amendment prior to the end of the first session of the State legisla- ture which begins after October 1, 1982, or which began prior to October 1, 1982, and remained in session for at least twenty-five calendar days after such date. For purposes of the preceding sentence, the term ‘session’ means a regular, special, budget, or other session of a State legislature.’’ § 654a. 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 information 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 sec- tion shall perform such functions as the Sec- retary may specify relating to management of the State program under this part, including— (1) controlling and accounting for use of Federal, State, and local funds in carrying out the program; 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 payments and penalty adjust- ments required by sections 652(g) and 658a of this title, the State agency shall— (1) use the automated system— (A) to maintain the requisite data on State performance with respect to paternity estab- lishment and child support enforcement in the State; and (B) to calculate the paternity establish- ment percentage 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 de- scribed in paragraph (1)(B). (d) Information integrity and security The State agency shall have in effect safe- guards on the integrity, accuracy, and complete- ness of, access to, and use of data in the auto- mated system required by this section, which shall include the following (in addition to such other safeguards as the Secretary may specify in regulations): (1) Policies restricting access Written policies concerning access to data by State agency personnel, and sharing of data with other persons, which— (A) permit access to and use of data only to the extent necessary to carry out the State program under this part; and (B) specify the data which may be used for particular program purposes, and the per- sonnel 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 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 unauthor- ized access or use. (4) Training and information Procedures to ensure that all personnel (in- cluding State and local agency staff and con- tractors) who may have access to or be re- quired to use confidential program data are in- formed of applicable requirements and pen- alties (including those in section 6103 of the Internal Revenue Code of 1986), and are ade- quately trained in security procedures. (5) Penalties Administrative penalties (up to and includ- ing dismissal from employment) for unauthor- ized access to, or disclosure or use of, con- fidential data. (e) State case registry (1) Contents The automated system required by this sec- tion shall include a registry (which shall be known as the ‘‘State case registry’’) that con- tains records with respect to— (A) each case in which services are being provided by the State agency under the State plan approved under this part; and (B) each support order established or modi- fied in the State on or after October 1, 1998. (2) Linking of local registries The State case registry may be established by linking local case registries of support or- ders through an automated information net- work, subject to this section. (3) Use of standardized data elements Such records shall use standardized data ele- ments for both parents (such as names, social security numbers and other uniform identi- fication numbers, dates of birth, and case identification numbers), and contain such other information (such as on case status) as the Secretary may require. (4) Payment records Each case record in the State case registry with respect to which services are being pro- vided under the State plan approved under this part and with respect to which a support order has been established shall include a record of— (A) the amount of monthly (or other peri- odic) support owed under the order, and other amounts (including arrearages, inter- est or late payment penalties, and fees) due or overdue under the order; Page 2309 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 654a (B) any amount described in subparagraph (A) that has been collected; (C) the distribution of such collected amounts; (D) the birth date and, beginning not later than October 1, 1999, the social security number, of any child for whom the order re- quires the provision of support; and (E) the amount of any lien imposed with respect to the order pursuant to section 666(a)(4) of this title. (5) Updating and monitoring The State agency operating the automated system required by this section shall promptly establish and update, maintain, and regularly monitor, case records in the State case reg- istry with respect to which services are being provided under the State plan approved under this part, on the basis of— (A) information on administrative actions and administrative and judicial proceedings and orders relating to paternity and support; (B) information obtained from comparison with Federal, State, or local sources of in- formation; (C) information on support collections and distributions; and (D) any other relevant information. (f) Information comparisons and other disclo- sures of information The State shall use the automated system re- quired by this section to extract information from (at such times, and in such standardized format or formats, as may be required by the Secretary), to share and compare information with, and to receive information from, other data bases and information comparison services, in order to obtain (or provide) information nec- essary to enable the State agency (or the Sec- retary or other State or Federal agencies) to carry out this part, subject to section 6103 of the Internal Revenue Code of 1986. Such information comparison activities shall include the fol- lowing: (1) Federal Case Registry of Child Support Or- ders Furnishing to the Federal Case Registry of Child Support Orders established under sec- tion 653(h) of this title (and update as nec- essary, with information including notice of expiration of orders) the minimum amount of information on child support cases recorded in the State case registry that is necessary to op- erate the registry (as specified by the Sec- retary in regulations). (2) Federal Parent Locator Service Exchanging information with the Federal Parent Locator Service for the purposes speci- fied in section 653 of this title. (3) Temporary family assistance and medicaid agencies Exchanging information with State agencies (of the State and of other States) admin- istering programs funded under part A, pro- grams operated under a State plan approved under subchapter XIX, and other programs designated by the Secretary, as necessary to perform State agency responsibilities under this part and under such programs. (4) Intrastate and interstate information com- parisons Exchanging information with other agencies of the State, agencies of other States, and interstate information networks, as necessary and appropriate to carry out (or assist other States to carry out) the purposes of this part. (5) Private industry councils receiving welfare- to-work grants Disclosing to a private industry council (as defined in section 603(a)(5)(D)(ii) of this title) to which funds are provided under section 603(a)(5) of this title the names, addresses, telephone numbers, and identifying case num- ber information in the State program funded under part A, of noncustodial parents residing in the service delivery area of the private in- dustry council, for the purpose of identifying and contacting noncustodial parents regarding participation in the program under section 603(a)(5) of this title. (g) Collection and distribution of support pay- ments (1) In general The State shall use the automated system required by this section to assist and facilitate the collection and disbursement of support payments through the State disbursement unit operated under section 654b of this title, through the performance of functions, includ- ing, at a minimum— (A) transmission of orders and notices to employers (and other debtors) for the with- holding of income— (i) within 2 business days after receipt of notice of, and the income source subject to, such withholding from a court, another State, an employer, the Federal Parent Locator Service, or another source recog- nized by the State; (ii) using uniform formats prescribed by the Secretary; and (iii) at the option of the employer, using the electronic transmission methods pre- scribed by the Secretary; (B) ongoing monitoring to promptly iden- tify failures to make timely payment of sup- port; and (C) automatic use of enforcement proce- dures (including procedures authorized pur- suant to section 666(c) of this title) if pay- ments are not timely made. (2) ‘‘Business day’’ defined As used in paragraph (1), the term ‘‘business day’’ means a day on which State offices are open for regular business. (h) Expedited administrative procedures The automated system required by this sec- tion shall be used, to the maximum extent fea- sible, to implement the expedited administra- tive procedures required by section 666(c) of this title. (Aug. 14, 1935, ch. 531, title IV, § 454A, as added and amended Pub. L. 104–193, title III, §§ 311, 312(c), 325(b), 344(a)(2), Aug. 22, 1996, 110 Stat. 2205, 2208, 2226, 2235; Pub. L. 105–34, title X, § 1090(a)(1), Aug. 5, 1997, 111 Stat. 961; Pub. L. Page 2310 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 654b 106–113, div. B, § 1000(a)(4) [title VIII, § 805(a)(1)], Nov. 29, 1999, 113 Stat. 1535, 1501A–285; Pub. L. 113–183, title III, § 306(a), Sept. 29, 2014, 128 Stat. 1949.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- secs. (d)(4) and (f), is classified generally to Title 26, In- ternal Revenue Code. AMENDMENTS 2014—Subsec. (g)(1). Pub. L. 113–183, § 306(a)(1), struck out ‘‘, to the maximum extent feasible,’’ after ‘‘this section’’ in introductory provisions. Subsec. (g)(1)(A)(iii). Pub. L. 113–183, § 306(a)(2), added cl. (iii). 1999—Subsec. (f)(5). Pub. L. 106–113 added par. (5). 1997—Subsec. (e)(4)(D). Pub. L. 105–34 substituted ‘‘the birth date and, beginning not later than October 1, 1999, the social security number, of any child’’ for ‘‘the birth date of any child’’. 1996—Subsecs. (e), (f). Pub. L. 104–193, § 311, added sub- secs. (e) and (f). Subsec. (g). Pub. L. 104–193, § 312(c), added subsec. (g). Subsec. (h). Pub. L. 104–193, § 325(b), added subsec. (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Pub. L. 113–183, title III, § 306(b), Sept. 29, 2014, 128 Stat. 1949, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on October 1, 2015.’’ EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 effective Oct. 1, 1998, see section 1090(a)(4) of Pub. L. 105–34, set out as a note under section 653 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 312(c) of Pub. L. 104–193 effec- tive Oct. 1, 1998, with limited exception for States which, as of Aug. 22, 1996, were processing the receipt of child support payments through local courts, see sec- tion 312(d) of Pub. L. 104–193, set out as an Effective Date note under section 654b of this title. EFFECTIVE DATE For provisions relating to effective date of title III of Pub. L. 104–193, see section 395(a)–(c) of Pub. L. 104–193, set out as an Effective Date of 1996 Amendment note under section 654 of this title. REGULATIONS Pub. L. 104–193, title III, § 344(a)(3), Aug. 22, 1996, 110 Stat. 2236, provided that: ‘‘The Secretary of Health and Human Services shall prescribe final regulations for implementation of section 454A of the Social Security Act [42 U.S.C. 654a] not later than 2 years after the date of the enactment of this Act [Aug. 22, 1996].’’ § 654b. Collection and disbursement of support payments (a) State disbursement unit (1) In general In order for a State to meet the require- ments of this section, the State agency must establish and operate a unit (which shall be known as the ‘‘State disbursement unit’’) for the collection and disbursement of payments under support orders— (A) in all cases being enforced by the State pursuant to section 654(4) of this title; and (B) in all cases not being enforced by the State under this part in which the support order is initially issued in the State on or after January 1, 1994, and in which the in- come of the noncustodial parent is subject to withholding pursuant to section 666(a)(8)(B) of this title. (2) Operation The State disbursement unit shall be oper- ated— (A) directly by the State agency (or 2 or more State agencies under a regional coop- erative agreement), or (to the extent appro- priate) by a contractor responsible directly to the State agency; and (B) except in cases described in paragraph (1)(B), in coordination with the automated system established by the State pursuant to section 654a of this title. (3) Linking of local disbursement units The State disbursement unit may be estab- lished by linking local disbursement units through an automated information network, subject to this section, if the Secretary agrees that the system will not cost more nor take more time to establish or operate than a cen- tralized system. In addition, employers shall be given 1 location to which income with- holding is sent. (b) Required procedures The State disbursement unit shall use auto- mated procedures, electronic processes, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support pay- ments, including procedures— (1) for receipt of payments from parents, em- ployers, and other States, and for disburse- ments to custodial parents and other obligees, the State agency, and the 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 any parent, upon request, timely information on the current status of support payments under an order requiring payments to be made by or to the parent, ex- cept that in cases described in subsection (a)(1)(B), the State disbursement unit shall not be required to convert and maintain in automated form records of payments kept pur- suant to section 666(a)(8)(B)(iii) of this title before the effective date of this section. (c) Timing of disbursements (1) In general Except as provided in paragraph (2), the State disbursement unit shall distribute all amounts payable under section 657(a) of this title within 2 business days after receipt from the employer or other source of periodic in- come, if sufficient information identifying the payee is provided. The date of collection for amounts collected and distributed under this part is the date of receipt by the State dis- bursement unit, except that if current support is withheld by an employer in the month when due and is received by the State disbursement