State Parent Locator Service; Safeguarding Child Support Information, 56422-56446 [E8-22054]

Agencies

• DEPARTMENT OF HEALTH AND HUMAN SERVICES
• Administration for Children and Families
• Office of Child Support Enforcement
• Children and Families Administration

[Federal Register Volume 73, Number 188 (Friday, September 26, 2008)]
[Rules and Regulations]
[Pages 56422-56446]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22054]



[[Page 56421]]

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Part V





Department of Health and Human Services





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Administration for Children and Families



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Office of Child Support Enforcement



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45 CFR Parts 302, 303, and 307



State Parent Locator Service; Safeguarding Child Support Information; 
Final Rule

Federal Register / Vol. 73, No. 188 / Friday, September 26, 2008 / 
Rules and Regulations

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

Office of Child Support Enforcement

45 CFR Parts 302, 303, and 307

RIN 0970-AC01


State Parent Locator Service; Safeguarding Child Support 
Information

AGENCY: Office of Child Support Enforcement (OCSE), Administration for 
Children and Families (ACF), Department of Health and Human Services 
(HHS).

ACTION: Final rule.

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SUMMARY: The Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (PRWORA) created and expanded State and 
Federal title IV-D child support enforcement databases and 
significantly enhanced access to information for title IV-D child 
support purposes. States are moving toward integrated service delivery 
and developing enterprise architecture initiatives to link their 
program databases. This final rule prescribes requirements for: State 
Parent Locator Service responses to authorized location requests; and 
State IV-D program safeguarding of confidential information and 
authorized disclosures of this information. This rule restricts the use 
of confidential data and information to child support purposes, with 
exceptions for certain disclosures permitted by statute.

DATES: This rule is effective March 23, 2009.

FOR FURTHER INFORMATION CONTACT: Yvette Hilderson Riddick, Policy and 
Automation Liaison, OCSE, 202-401-4885, e-mail: 
yvetteriddick@acf.hhs.gov. Deaf and hearing-impaired individuals may 
call the Federal Dual Party Relay Service at 1-800-877-8339 between 8 
a.m. and 7 p.m. eastern time.

SUPPLEMENTARY INFORMATION:

I. Statutory Authority
II. Summary Description of Regulatory Provisions
    A. State Parent Locator Service
    B. Safeguarding and Disclosure of Confidential Information
III. Section-by-Section Discussion of Comments
IV. Regulatory Review
    A. Paperwork Reduction Act
    B. Regulatory Flexibility Analysis
    C. Regulatory Impact Analysis
    D. Unfunded Mandates Reform Act of 1995
    E. Congressional Review
    F. Assessment of Federal Regulations and Policies on Families
    G. Executive Order 13132

I. Statutory Authority

    This final regulation is published under the authority granted to 
the Secretary of HHS (Secretary) by section 1102 of the Social Security 
Act (the Act), 42 U.S.C. 1302. Section 1102 authorizes the Secretary to 
publish regulations that may be necessary for the efficient 
administration of the functions for which he is responsible under the 
Act.
    The provisions of this final rule pertaining to the Federal Parent 
Locator Service (PLS) implement section 453 of the Act, 42 U.S.C. 653. 
Section 453 requires the Secretary to establish and conduct a Federal 
PLS to obtain and transmit specified information to authorized persons 
for purposes of establishing parentage; establishing, modifying, or 
enforcing child support obligations; and enforcing any Federal or State 
law with respect to a parental kidnapping; or making or enforcing a 
child custody or visitation determination, as described in section 463 
of the Act. It authorizes the Secretary to use the services of State 
entities to carry out these functions.
    The provisions relating to the State PLS implement section 454(8) 
of the Act, 42 U.S.C. 654(8), which requires each State plan for child 
support enforcement to provide that the State will: (1) Establish a 
service to locate parents utilizing all sources of information and 
available records; and the Federal PLS established under section 453; 
and (2) shall subject to the privacy safeguards in section 454(26) of 
the Act, 42 U.S.C. 654(26), disclose only the information described in 
sections 453 and 463 of the Act to the authorized persons specified in 
those sections.
    The provisions relating to the States' computerized support 
enforcement systems implement section 454A of the Act, 42 U.S.C. 654a, 
which requires States' systems to perform such functions as the 
Secretary may specify relating to management of the State title IV-D 
program. Additionally, as stated in section 454A(f) of the Act, the 
State shall use the statewide automated system to extract information 
from, to share and compare information with, and to receive information 
from, other data bases and information necessary to enable the State 
agency (or the Secretary or other State or Federal agencies) to carry 
out the Child Support Enforcement program under title IV-D of the Act, 
and other programs designated by the Secretary.
    In addition, the provisions pertaining to safeguarding of 
information implement section 454(26) of the Act, which requires the 
State IV-D program to have in effect safeguards, applicable to all 
confidential information handled by the State agency, that are designed 
to protect the privacy rights of the parties. Nothing in this rule is 
meant to prevent the appropriate use of administrative data for program 
oversight, management, and research.

II. Summary Description of Regulatory Provisions

    The following is a summary of the regulatory provisions included in 
this final rule. The Notice of Proposed Rulemaking (NPRM) was published 
in the Federal Register on October 14, 2005 (70 FR 60038). The NPRM was 
organized into two major sections. Section 1: State Parent Locator 
Service discussed amendments to the proposed regulations on locating 
individuals and their assets in response to authorized location 
requests. Affected regulations include Sec. Sec.  302.35, 303.3, 
303.20, and 303.70. Section 2: Safeguarding and Disclosure of 
Confidential Information discussed new regulations on safeguarding and 
disclosure of confidential information, Sec.  303.21 and amendments to 
the regulation on security and confidentiality of information in 
computerized support enforcement systems, Sec.  307.13.
    The Section-by-Section Discussion of Comments (Section III) 
provides a detailed listing of the comments and responses. Many 
commenters asked for points of clarification rather than for change of 
language in the regulation. There were some comments, however, that 
brought about regulatory language changes in the final rule. 
Specifically, major changes include:
    In Sec.  303.21(a) we deleted the last sentence ``The amount of 
support ordered and the amount of a support collection are not 
considered confidential information for purposes of this section.'' 
Commenters were concerned that this language may be interpreted as IV-D 
payment records could be made available to requestors not associated 
with the case who may want the information for purposes not related to 
child support.
    In response to comments, we deleted paragraph (1) of Sec.  
303.21(d), which in the NPRM authorized disclosure of confidential 
information to the individual to whom the information pertains. To the 
extent that an individual is requesting information about himself/
herself in the IV-D agency's files for a IV-D program purpose, the 
information may be

[[Page 56423]]

disclosed under paragraph (c), General rule. We also deleted under 
paragraph (e) Safeguards, that ``safeguards shall prohibit disclosure 
to any committee or legislative body (Federal, State, or local) of any 
confidential information, unless authorized by the individual as 
specified in paragraph (d) of this section.'' To the extent that an 
individual in a IV-D case submits a request to a legislator or 
legislative body concerning his or her IV-D case, the IV-D agency may 
disclose the information necessary for the response because the inquiry 
relates to the administration of the IV-D program and is authorized 
under paragraph (c).
    We revised Sec.  303.21(d)(2)(ii) and (iii) and relocated it to 
Sec.  303.21(d)(1). Section 454A of the Act only permits the disclosure 
of information for non-IV-D purposes to State agencies of designated 
programs where the information is necessary to carry out a State agency 
function under that program. Therefore, we have relocated these 
disclosures to clarify that they are encompassed within this authority 
specified in Sec.  303.21(d)(1). In paragraph (2), we restricted 
disclosure of information for income and eligibility verification 
purposes under sections 453A and 1137 of the Act to SDNH information.
    We added language to Sec.  303.21(e) that refers to family violence 
indicator requirements under Sec.  307.11(f)(1)(x). Commenters thought 
we should add language regarding the family violence indicator which is 
an additional privacy safeguard for family violence victims.
    We also changed Sec.  307.13(a) of the NPRM by deleting paragraph 
(4). It referred to welfare-to-work, a grant program that no longer 
exists. We redesignated paragraph (a)(5) as paragraph (a)(4) and 
revised the language for clarity. As revised, it requires written 
policies that limit disclosure outside the IV-D program of National 
Directory of New Hire, Federal Case Registry and Internal Revenue 
Service (IRS) information from the computerized support enforcement 
system. The regulation sets forth the circumstances when information 
may be disclosed to IV-A, IV-B, and IV-E agencies and when IRS 
information may be disclosed. As revised, financial institution 
information cannot be shared outside the IV-D program. We made this 
change because of the language in section 469A(a) and (b) of the Act. 
These sections provide for non-liability for financial institutions 
when they disclose financial record information only for child support 
related purposes. Throughout the preamble and regulation we use 
``financial institution information'' to refer to information covered 
by section 469A(a) and (b) of the Act. This information includes 
Multistate Financial Data Matches (MSFIDM) and State Financial 
Institute Data Matches (State FIDM).
    Some commenters found the charts confusing, especially Appendix A 
in Section I and Appendix A in Section 2. We reorganized the two 
previous charts into three charts: Appendix A, B, and C. In Appendix A 
we reordered the chart by displaying locate efforts first by person 
rather than by purpose. Appendix A illustrates authority for locating 
individuals through the State PLS. Appendix B illustrates authority for 
locating an individual sought in a child custody/visitation or parental 
kidnapping case. Appendix C illustrates authority for State IV-D 
agencies to release information to non-IV-D Federal, State, and Tribal 
Programs. These charts are included at the end of the preamble for 
illustrative purposes only.

Section II. A. State Parent Locator Service (Sections 302.35, 303.3, 
303.20, and 303.70)

Section 302.35, State Parent Locator Service

    The previous regulation at Sec.  302.35(a) contained a State plan 
requirement that the IV-D program shall establish a State Parent 
Locator Service (PLS) using: (1) All relevant sources of information 
and records available in the State, and in other States as appropriate; 
and (2) the Federal PLS of the Department of Health and Human Services.
    Paragraph (a) modifies the requirement for each State to 
``establish'' a State PLS, and instead requires each State to 
``maintain'' a State PLS ``to provide locate information to authorized 
persons for authorized purposes.''
    Section Sec.  302.35(a)(1), covering IV-D agencies, cases and 
purposes, requires that the State PLS access ``the Federal PLS and all 
relevant sources of information and records available in the State, and 
in other States as appropriate, for locating custodial parents, 
noncustodial parents, and children for IV-D purposes.'' Paragraph 
(a)(2) addresses locate requests for authorized non-IV-D individuals 
and purposes. For purposes of this regulation, all requests under 
section 453(c)(3) of the Act are considered to be requests by non-IV-D 
individuals and purposes. This provision requires a IV-D program to 
access and release information authorized to be disclosed under section 
453(a)(2) of the Act from ``the Federal PLS and, in accordance with 
State law, information from relevant in-state sources of information 
and records, as appropriate'' to respond to locate requests from a non-
IV-D entity or authorized individual specified in paragraph (c) and for 
authorized purposes specified in paragraph (d).
    For non-IV-D requests, under paragraph (a)(2), the State PLS will 
not access IRS information or financial institution information, which 
is available only to IV-D agencies and to a limited extent to their 
agents, under Federal statute.
    The previous regulation at paragraph (b) required that the IV-D 
agency must ``establish a central State PLS office and also may 
designate additional IV-D offices within the State to submit requests 
to the Federal PLS.'' The amendment to Sec.  302.35(b) removes mention 
of a State PLS ``office.'' It also requires the IV-D program to 
``maintain'' rather than ``establish'' a central State PLS.
    The previous Sec.  302.35(c)(1) through (5) language specified the 
authorized persons and entities from whom the State PLS shall accept 
requests for locate information. The amendments to paragraph (c) 
strengthen the process by which authorized requestors obtain locate 
information through the State PLS, specifically with respect to 
requests from a resident parent, legal guardian, attorney, or agent of 
a non-IV-A child.
    Previously, Sec.  302.35(c)(3) simply referred to the ``resident 
parent, legal guardian, attorney, or agent of a child'' in non-IV-A 
cases as authorized persons. The revised Sec.  302.35(c)(3) makes it 
clear that the State PLS will accept locate requests from the resident 
parent, legal guardian, attorney or agent of a child who is not 
receiving assistance under title IV-A of the Act only if key 
requirements are met. The regulation requires the individual to: (i) 
Attest that the request is being made to obtain information on, or to 
facilitate the discovery of, any individual in accordance with section 
453(a)(2) of the Act for the purpose of establishing parentage, 
establishing, setting the amount of, modifying, or enforcing child 
support obligations; (ii) attest that any information obtained through 
the Federal or State PLS will be used solely for these purposes and 
otherwise treated as confidential; (iii) provide evidence that the 
requestor is the parent, legal guardian, attorney, or agent of a child 
not receiving assistance under title IV-A of the Act, and if an agent 
of such a child, evidence of a valid contract that meets any 
requirements in State law or written policy for acting as an agent, and 
if a parent, attestation that he or she

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is the resident parent; and (iv) pay the Federal PLS fee required under 
section 453(e)(2) of the Act and Sec.  303.70(f)(2)(i), if the State 
does not pay the fee itself. The regulation also specifies that the 
State may charge a fee to cover its costs of processing these requests. 
A State's fee must be as close to actual costs as possible, so as not 
to discourage requests to use the Federal PLS. See Sec. Sec.  304.23(e) 
and 304.50(a). Paragraph (c)(4) simplifies the language regarding the 
use of the Federal PLS for parental kidnapping, child custody, or 
visitation cases. Paragraph (c)(5) rewords the previous language 
allowing locate requests from State title IV-B and title IV-E agencies.
    Previous paragraph (d) is redesignated as paragraph (e), as 
discussed below. A new paragraph (d) is added to specify the authorized 
purposes for which the State PLS and the Federal PLS may be used and 
the locate information that may be released for these purposes. 
Paragraph (d)(1) covers the purposes of establishing parentage and 
establishing, modifying, or enforcing child support. It also covers 
related authorized releases of information to locate an individual who 
has or may have parental rights with respect to the child. It pertains 
to IV-D and non-IV-D authorized persons and programs, including title 
IV-B and IV-E agencies. For IV-B/IV-E cases that are non-IV-D and other 
cases under (d)(1), wage information is authorized and the State PLS 
may provide asset and/or debt information from the Federal PLS. 
Paragraph (d)(2) covers the purposes of enforcing a State law with 
respect to the unlawful taking or restraint of a child or for making or 
enforcing child custody or visitation determination and the related 
authorized releases of information.
    Paragraph (e), requires privacy safeguards for Federal PLS 
information only. The amendment specifies at paragraphs (e)(1) and (2) 
that, subject to the requirements of this section and the privacy 
safeguards required under section 454(26) of the Act and the family 
violence indicators under section 307.11(f)(1)(x), the State PLS shall 
disclose ``Federal PLS information'' described in sections 453 and 463 
of the Act and ``information from in-state locate.'' An Appendix A has 
been added at the end of the preamble to show the linkages between 
authorizing statute, authorized purpose, authorized person or program, 
and authorized information.

Section 303.3, Location of Noncustodial Parents in IV-D Cases

    Under the final rule, Sec.  303.3 is re-titled ``Location of 
noncustodial parents in IV-D cases.'' Under paragraph (a), location is 
defined to mean ``information concerning the physical whereabouts of 
the noncustodial parent, or the noncustodial parent's employer(s), 
other sources of income or assets, as appropriate, which is sufficient 
and necessary to take the next appropriate action in a IV-D case.''
    The amendments to paragraph (b) clarify which location requirements 
apply to IV-D cases. Paragraph 303.3(b) requires the IV-D program to 
attempt to locate a noncustodial parent in a IV-D case or his or her 
sources of income and/or assets when location is needed to take 
necessary action. Paragraphs (b)(1) through (5) provide an extensive 
list of location sources that as discussed below are unchanged for the 
most part from the previous regulation.
    Paragraph (b)(3) no longer includes the words ``including 
transmitting appropriate cases to the Federal PLS'' because States now 
submit cases to the Federal Case Registry for automatic matching with 
the National Directory of New Hires for locate purposes.
    The previous regulation at paragraph (b)(4) required the IV-D 
program to ``Refer appropriate cases to the IV-D program of any other 
State, in accordance with the requirements of Sec.  303.7 of this 
part.'' The amendment inserts the word ``IV-D'' before the word 
``cases'' to clarify that the IV-D program of State 1 may refer only 
IV-D cases to the IV-D program of State 2.
    New paragraph (b)(6) draws a direct link between the IV-D program's 
duty to locate noncustodial parents and the duty to safeguard 
information. The language incorporates by reference both the existing 
statutory requirement at sections 454(26) and 454A(d) and (f) of the 
Act and the regulatory requirements at Sec. Sec.  303.21 and 307.13.
    Current paragraph (c) regarding diligent efforts to serve process 
is unchanged, but is republished to aid the reader in reviewing this 
section.

Section 303.20, Minimum Organizational and Staffing Requirements

    The regulation at Sec.  303.20 describes the minimum organizational 
and staffing requirements for the IV-D program. Paragraph (b) of this 
section requires an organizational structure and staff sufficient to 
fulfill specified State level functions, including, in paragraph 
(b)(7), ``operation of the State Parent Locator Service as required 
under Sec. Sec.  302.35, 303.3, and 303.70 of this chapter.''

Section 303.21, Safeguarding and Disclosure of Confidential Information

    This new regulation is discussed in Section II.B.

Section 303.70, Procedures for Submissions to the State Parent Locator 
Service (State PLS) or the Federal Parent Locator Service (Federal PLS)

    With passage of legislation that established the National Directory 
of New Hires (NDNH) in 1996 and established the Federal Case Registry 
(FCR) in 1998, the Federal PLS became highly automated. The language in 
this section has been revised to indicate that the Federal PLS reflects 
the automated matching and return of information to IV-D programs in 
IV-D cases from the Federal PLS's Federal Case Registry and National 
Directory of New Hires. For example, while requests for Federal PLS 
information are accepted, State IV-D programs no longer ``request'' 
Federal PLS information and we replaced the word ``requests'' with 
``submittals'' wherever it appears. We eliminated the word ``office'' 
as in State PLS ``office'' to demonstrate that this work is automated.
    A new paragraph (a) has been inserted: The State agency will have 
procedures for submitting to the State PLS or the Federal PLS for the 
purpose of locating parents, putative fathers, or children for the 
purpose of establishing parentage or establishing, setting the amount 
of, modifying, or enforcing child support obligations; or for the 
purpose of enforcing any Federal or State law with respect to the 
unlawful taking or restraint of a child; or making or enforcing a child 
custody or visitation determination as defined in section 463(d)(1) of 
the Act. The previous paragraph (a) has been redesignated as paragraph 
(b) and the previous paragraph (b) has been redesignated as paragraph 
(c).
    In addition, in newly designated paragraph (d) all submittals shall 
contain the following information: (1) The parent's or putative 
father's name; (2) the parent's or putative father's Social Security 
Number (SSN). If the SSN is unknown the IV-D program must make 
reasonable efforts to ascertain the individual's SSN before making a 
submittal to the Federal PLS; and (3) any other information prescribed 
by the Office.
    The previous regulation at Sec.  303.70(d) has been redesignated as 
paragraph (e). It requires that annually the IV-D director attest to 
compliance with the listed requirements. Paragraph (e)(1)(i) specifies 
that the IV-D program will ``obtain'' rather than ``request''

[[Page 56425]]

information. A new paragraph (e)(1)(ii) clarifies that the IV-D program 
will only provide information to authorized persons as specified in 
sections 453(c) and 463(d) of the Act and Sec.  302.35.
    Paragraph (e)(2) is new and requires that, in the case of a 
submittal made on behalf of a resident parent, legal guardian, attorney 
or agent of a child not receiving assistance under title IV-A, the IV-D 
program must verify that the requestor has complied with the provisions 
of Sec.  302.35.
    Paragraph (e)(3), formerly paragraph (d)(2), has been changed to 
specify that the IV-D program shall treat information obtained through 
the Federal PLS as confidential and shall safeguard the information in 
accordance with statutory requirements at Sec.  303.21.
    Paragraph (f) has minor changes. In (f)(1) the statutory references 
have been accompanied by explanatory phrases for better understanding 
and in (f)(4)(ii) the word ``paid'' has been changed to ``transmitted'' 
to reflect the change in payment methodology due to technology 
advances.

II.B. Safeguarding and Disclosure of Confidential Information (Sections 
303.21 and 307.13)

Section 303.21, Safeguarding and Disclosure of Confidential Information

    The regulation consists of six paragraphs: (a) Definitions; (b) 
Scope; (c) General rule; (d) Authorized disclosures; (e) Safeguards; 
and (f) Penalties for unauthorized disclosure.

Section 303.21(a) Definitions

    The regulation begins with a definition of the term ``confidential 
information.'' Paragraph (a)(1) provides that ``confidential 
information'' means any information relating to a specified individual 
or an individual who can be identified by reference to one or more 
factors specific to him or her, including, but not limited, to the 
individual's Social Security Number, residential and mailing addresses, 
employment information, and financial information. Paragraph (a)(2) 
defines independent verification to mean the process of acquiring and 
confirming confidential information through the use of a second source. 
The information from the second source, which verifies the information 
about NDNH or FCR data, may be released to those authorized to inspect 
and use the information as authorized under the regulations or the Act.

Section 303.21(b) Scope

    Paragraph (b) reads: ``The requirements of this section apply to 
the IV-D agency, any other State or local agency or official to whom 
the IV-D agency delegates any of the functions of the IV-D program, any 
official with whom a cooperative agreement as described in Sec.  302.34 
has been entered into, and any person or private agency from whom the 
IV-D agency has purchased services pursuant to Sec.  304.22.''

Section 303.21(c) General Rule

    Paragraph (c) presents a general rule which states that ``[e]xcept 
as authorized by the Act and implementing regulations, an entity 
described in paragraph (b) of this section may not disclose any 
confidential information, obtained in connection with the performance 
of IV-D functions, outside of the administration of the IV-D program.''

Section 303.21(d) Authorized Disclosures

    Paragraph (d) sets forth the authorized disclosures that are 
exceptions to the general rule prohibiting disclosure of confidential 
information. Under paragraph (d)(1), upon request, the IV-D agency may, 
to the extent that it does not interfere with the IV-D agency meeting 
its own obligations, disclose information for certain limited purposes. 
Under paragraph (d)(1) information may be shared for administration of 
programs under titles IV (TANF, child and family services, and foster 
care and adoption programs), XIX (Medicaid program), and XXI (State 
Children's Health Insurance [SCHIP] program) of the Act. The regulation 
also includes disclosure to Tribal programs authorized under title IV-A 
and IV-D of the Act.
    Paragraph (d)(2) (previously paragraph (d)(2)(iv)) permits the 
release of SDNH information to programs designated pursuant to sections 
453A and 1137 of the Act for income and eligibility verification 
purposes.
    Paragraph (d)(3) requires that authorized disclosures under Sec.  
303.21(d)(1) and (2) shall not include confidential information from 
the National Directory of New Hires, the Federal Case Registry, or 
Internal Revenue Service (IRS), unless authorized under Sec.  307.13 or 
unless the information has been independently verified. A State may 
independently verify the NDNH or the FCR information through another 
source, in which case the information from the second source may be 
used. Independent verification is the process of acquiring and 
confirming confidential information through the use of a second source. 
The information from the second source may be released to those 
authorized to inspect and use the information. For example, if a State 
determines that an address is correct through a postal verification the 
State can share the information it acquired from the second source (the 
Post Office). No IRS information can be disclosed outside of the 
administration of the IV-D program, unless specifically authorized in 
Federal statute or independently verified. IRS information is 
restricted as specified in the Internal Revenue Code (IRC). No 
financial institution information may be disclosed outside the IV-D 
program. The restriction on release of financial institution 
information outside the IV-D program is due to the liability protection 
given to financial institutions for release of information to the 
Federal PLS or to the State IV-D programs for child support purposes as 
indicated in section 466(a)(17)(C) of the Act and limitations in 
section 469A of the Act, regarding the use of such information.

Section 303.21(e) Safeguards

    Paragraph (e) provides that ``In addition to, and not in lieu of, 
the safeguards described in Sec.  307.13 of this chapter, which governs 
computerized support enforcement systems, the IV-D agency shall 
establish appropriate safeguards to comply with the provisions of this 
section.'' These safeguards shall also include prohibitions against the 
release of information when the State has reasonable evidence of 
domestic violence or child abuse against a party or a child and that 
the disclosure of such information could be harmful to the party or the 
child, as required by Sec.  454(26) of the Act, and shall include use 
of the family violence indicator required under Sec.  307.11(f)(1)(x) 
of this chapter.

Section 303.21(f) Penalties for Unauthorized Disclosure

    Paragraph (f) provides that ``[a]ny disclosure or use of 
confidential information in violation of the Act and implementing 
regulations remains subject to any State and Federal statutes that 
impose legal sanctions for such disclosure.''

Section 307.13 Security and Confidentiality for Computerized Support 
Enforcement Systems in Operation After October 1, 1997

    Section 307.13 addresses security and confidentiality of 
computerized systems. Paragraph (a), (a)(1), and (a)(2) are unchanged. 
Paragraph (a) addresses information integrity and security. Automated 
systems must have safeguards protecting the integrity,

[[Page 56426]]

accuracy, completeness of, access to, and use of data in the 
computerized support enforcement system. These safeguards shall include 
written policies concerning access to data by IV-D program personnel, 
and the sharing of data with other persons to: (a)(1) Permit access to 
and use of data to the extent necessary to carry out the State IV-D 
program under this chapter and (a)(2) specify the data which may be 
used for particular IV-D program purposes, and the personnel permitted 
access to such data.
    Paragraph (a)(3) permits the IV-D agency to exchange data from its 
computerized support enforcement system with agencies administering 
other programs under titles IV, XIX, and XXI of the Act to the extent 
necessary to carry out State and Tribal agency responsibilities under 
such programs in accordance with section 454A(f)(3) of the Act; and to 
the extent that it does not interfere with the IV-D agency meeting its 
own obligations.
    Paragraph (a)(4) as written in the NPRM has been deleted. It 
referred to welfare-to-work, a grant program that no longer exists. The 
present paragraph (a)(4) which previously was paragraph (a)(5) has been 
rewritten for clarity and requires written policies that generally 
prohibit disclosure outside the IV-D program of National Directory of 
New Hire or Federal Case Registry information, or IRS information from 
the computerized support enforcement system, to information that has 
been independently verified. IV-A, IV-B, and IV-E agencies are 
authorized under various subsections of section 453 of the Act to 
receive NDNH and FCR information from the Federal PLS for certain 
specified purposes. Since these agencies are authorized to have this 
information, we are permitting the IV-D agency to disclose the NDNH or 
FCR information from the IV-D computerized support enforcement system 
directly to the IV-A, IV-B, or IV-E agency if it is being requested for 
the purpose authorized under section 453 of the Act. For IV-B and IV-E 
programs this includes establishing paternity or parental rights with 
respect to a child.

III. Section-by-Section Discussion of Comments

    This section provides a detailed discussion of comments received on 
the proposed rule, and describes changes made to the proposed rule. We 
refer generally to actions of the ``Department'' pursuant to the rule. 
The rule itself refers to actions of the ``Secretary'' but the day-to-
day activities of the Secretary's functions have been delegated and are 
exercised by other Department officials, primarily in the 
Administration for Children and Families. ``Office'' refers to the 
Federal Office of Child Support Enforcement (OCSE). We received 
approximately 200 comments from 20 IV-D programs (including 1 tribe), 3 
organizations, and 1 private citizen. Many comments were for points of 
clarification rather than stating support or opposition to the proposed 
regulation. For example, many comments indicated a lack of awareness on 
existing longtime requirements such as the statutory restrictions of 
access to Federal PLS data on IV-D systems for certain unauthorized 
persons and programs.

General Comments

    There were various comments that are not attributable to specific 
sections of the regulation and are discussed below.
    1. Comment: Two commenters ask that once the final rule is imposed, 
OCSE provide States with reasonable time to implement these 
regulations, which may include changes to State legislation and 
automated systems. Another commenter believes the Office should make 
clear what the effective date is of this regulation as was done with 
some regulations while implementing PRWORA.
    Response: This rule is effective 6 months from the date of 
publication.
    2. Comment: One commenter requested that the Secretary insert 
language from sections of the Social Security Act so the reader does 
not have to look up sections of the Act.
    Response: To do so would significantly increase the length of 
regulatory language. We have attempted to ensure there are no cross-
references without a brief summary of the content of those statutory 
sections.
    3. Comment: This regulation possibly sets up competing public 
interests. For example: Pitting the confidentiality regulation versus 
the openness of the judicial system and court files; the regulation 
versus the State's public policy of open government (Sunshine laws); 
the regulation versus the State Constitution's provision for access to 
public records and meetings.
    Response: These regulations govern disclosure of IV-D data under 
sections 454(26), 453, and 454A of the Act. A wide array of personal 
information is available to IV-D agencies and it is imperative that the 
Federal and State governments protect these data to the greatest extent 
possible and use them only where necessary for authorized purposes. 
Child support records, including Federal PLS information, contain 
information that poses a high risk of identity theft, and thus should 
be treated with special care.
    4. Comment: One commenter asks why this rule includes proposed 
additional restrictions on sharing certain Federal data with other 
public agencies in one part of the rule while proposing granting broad 
access to State data to private entities in another part. According to 
the commenter, use of data disclosed to other State agencies can be 
easily monitored while private entities are less accountable, harder to 
monitor, and more likely to use data for unauthorized purposes.
    Response: This regulation is determined in large part by explicit 
Federal statute. Section 454(8) of the Act says that ``the agency 
administering the (State) plan will establish a service to locate 
parents * * * and shall, subject to the privacy safeguards required 
under paragraph (26), disclose only the information described in 
sections 453 (Federal PLS) and 463 (Use of the Federal PLS in 
connection with enforcement of determination of child custody and in 
cases of parental kidnapping) to the authorized persons specified in 
such sections for the purposes specified in such sections.'' With 
respect to private entities the regulation at Sec.  302.35(c)(3) 
requires an attestation process that must be used by the resident 
parent, legal guardian, attorney, or agent of a child who is not 
receiving assistance under title IV-A of the Act when obtaining 
information on or to facilitate the discovery of any individual in 
accordance with section 453(a)(2) of the Act.
    5. Comment: In 42 U.S.C. 654(26), Congress allowed States to have 
flexibility in crafting confidentiality requirements. States may find 
it difficult to follow a regulatory ``one size fits all'' approach and 
make changes to the law in matters over which child support agencies 
have no authority.
    Response: The regulation reflects statutory requirements as stated 
in section 454(26) of the Act that a child support State Plan must 
provide that States have in effect safeguards, applicable to all 
confidential information handled by the State agency, that are designed 
to protect the privacy rights of the parties involved. It also reflects 
other statutory restrictions on disclosure in sections 453 and 454A of 
the Act.
    6. Comment: If the Federal Bureau of Investigations (FBI) was 
called to investigate possible sources of threats to a IV-D caseworker 
and the FBI demanded the names and contact information for every person 
on the IV-D employee's caseload, would the IV-D agency be justified in 
sharing this

[[Page 56427]]

information with the FBI? Does protecting a IV-D worker from potential 
harm fall under the provisions of a IV-D purpose?
    Response: The IV-D agency could share the information because the 
investigation relates to the administration of the IV-D program.
    7. Comment: Two commenters say that OCSE should reaffirm its 
commitment to additional privacy safeguards for family violence victims 
by incorporating references to the family violence indicator in the 
rule.
    Response: We agree and have added language to Sec.  303.21(e) that 
provides explicit reference to required family violence indicators for 
potential domestic violence or child abuse.
    8. Comment: Two commenters are concerned that when enforcing a 
referral from a Tribal IV-D agency located in that State or in another 
State, a State would be unable to provide information about whether a 
Federal tax refund offset occurred and the amount collected. This would 
make it impossible for the Tribal IV-D agency to correctly adjust the 
arrearage to give the noncustodial parent credit for the tax refund 
offset. Another commenter believes the Internal Revenue Services (IRS) 
statute at 26 U.S.C. 6103 sufficiently provides for confidentiality 
limitations for States to disclose information to Tribes and States. 
Tribal IV-D agencies do not need another regulation to further burden 
negotiations with State IV-D agencies.
    Response: Policy Interpretation Question (PIQ) 07-02 addresses 
this. See https://www.acf.dhhs.gov/programs/cse/pol/PIQ/2007/piq-07-
02.htm. A State may submit arrearages owed in Tribal IV-D cases for 
Federal tax refund offset if the following conditions are met:
    1. The approved Tribal IV-D plan or plan amendment indicates that 
the Tribe has entered into a cooperative agreement with the State under 
Sec.  309.60(b) and (c) for the State to submit arrearages owed in 
Tribal IV-D cases for Federal tax refund offset. The Tribe must submit 
as part of its Tribal IV-D plan or plan amendment copies of any such 
agreement. The regulations governing Tribal IV-D programs at Sec.  
309.35(d) require that after approval of the original Tribal IV-D 
program application, all relevant changes required by new Federal 
statutes, rules, regulations, and Department interpretations are 
required to be submitted so that the Secretary may determine whether 
the plan continues to meet Federal requirements and policies.
    2. The cooperative agreement between the Tribe and State includes a 
statement that the Tribal IV-D program will comply with all 
safeguarding requirements with respect to Federal tax refund offset in 
accordance with Sec.  309.80, section 454(26) of the Act and the 
Internal Revenue Code 26 U.S.C. 6103, which prohibits the release of 
IRS information outside of the IV-D program.
    3. The Tribal IV-D plan provides evidence that the Tribe's 
application for IV-D services under Sec.  309.65(a)(2) includes a 
statement that the applicant is applying for State IV-D services for 
purposes of submitting arrearages for Federal tax refund offset.
    9. Comment: One commenter says there must be an easy-to-use 
procedure for individuals misidentified by child support database 
programs to correct agency records and also requests that this rule 
provide for a system to flag errors where files are ``mixed.''
    Response: If an individual believes he or she has been 
misidentified by the IV-D system, he or she should contact the 
appropriate IV-D office. The IV-D program should fix the error as soon 
as possible. These regulations do not go into the details of step-by-
step State case processing that would make such a proposal appropriate.
    10. Comment: One commenter requests that language in the preamble 
to the proposed rule be incorporated into the actual regulation. Page 
60044, column 3 says ``programs receiving confidential information may 
use the information only for the purpose for which it was disclosed and 
may not redisclose the information.'' However, this restriction on 
redisclosure is not in the text of the proposed rule.
    Response: This regulation is for title IV-D programs and we cannot 
regulate other programs once information is disclosed. However, State 
IV-D programs must make clear to those authorized to receive child 
support data, the limited purpose for which information may be used. 
Improper use or disclosure would be governed by State and Federal 
statutes that impose penalties for such disclosure.
    11. Comment: One commenter says there is no legislative history 
that Congress contemplated expanding access to State databases and 
records beyond the IV-D program or beyond what is otherwise permitted 
by State law.
    Response: The provisions relating to the State PLS implement 
section 454(8) of the Act, 42 U.S.C. 654(8), which requires each State 
plan for child support enforcement to provide that the State will: (1) 
Establish a service to locate parents utilizing all sources of 
information and available records including the Federal PLS; and (2) be 
subject to the privacy safeguards in section 454(26) of the Act, 42 
U.S.C. 654(26) and disclose only the information described in sections 
453 and 463 of the Act to the authorized persons specified in those 
sections. This language authorizes a system of disclosure of State data 
based on the system in place for the Federal PLS. We have revised the 
regulation to recognize the possibility of more restricted access to 
State data by incorporating the language ``in accordance with State 
law.''
    12. Comment: One commenter is concerned that States are not 
informing individuals when disclosure of their Social Security Number 
(SSN) to another source will occur and by collecting noncustodial 
parents' SSNs from a third party source.
    Response: States are required to comply with section 7(b) of the 
Privacy Act and its disclosure requirements (5 U.S.C. 552a). In all IV-
D cases, the Privacy Act requires a Federal, State, or local government 
agency to provide certain information to the individual from whom a SSN 
is requested by the agency.
    13. Comment: One commenter says that notice and due process are 
required when States use, release, or enter data into State PLS and 
Federal PLS computer interface records on individuals who do not need 
to be located for purposes of child support.
    Response: Access to personal data covered by the regulation is 
authorized as explicitly provided for in Federal title IV-D statute.

Section 302.35, State Parent Locator Service

    1. Comment: Two commenters have major concerns with this section. 
One would like to know the reason for these amendments, opposes the 
requirement that the State PLS provide information to requestors with 
regard to in-state sources, and strongly recommends that references to 
access and release of in-state State PLS information be deleted from 
the proposed regulation. The other commenter is concerned with this 
section and believes the regulation erodes the capability of the child 
support program to safeguard confidential information. The regulation 
creates a presumption, not supported by law, that non-IV-D entities may 
access in-state resources.
    Response: A State/Federal workgroup, established after the passage 
of the Personal Responsibility and Work Opportunity Reconciliation Act,

[[Page 56428]]

recommended that these regulations be promulgated in order to clarify 
the statutory limitations of sharing data. In response to comments we 
have revised the regulation to provide State searches only to the 
extent authorized by State law. With regard to in-state sources, 
section 454(8) of the Act says a State shall be subject to the privacy 
safeguards in section 454(26) of the Act, 42 U.S.C. 654(26).
    2. Comment: One commenter asks why the regulation does not clearly 
tie authorized persons to the authorized purposes for which they may 
receive locate information, addressing persons and in separate 
subsections.
    Response: We disagree. The authorized persons and purposes are 
clearly stated in the regulation and are identical to those of the 
Federal PLS. Appendix A displays this set of authorities.
    3. Comment: One commenter would like to eliminate the reference in 
Appendix A that says ``No automated system'' for Authorized Purpose B, 
C, and D.
    Response: This Appendix and others have been revised and/or added. 
Any limitation of disclosure of automated systems data is required by 
section 454A of the Act.
    4. Comment: One commenter proposes adding a section to this 
provision that requires maintenance of an audit log to deter employee 
misuse of databases. Audit logs hold individuals responsible for their 
use of personal information databases and would record who accesses 
personal information, and the purpose for which it was accessed.
    Response: Federal requirements do not prescribe this level of 
mandate on State responsibilities. It is up to the State to implement 
necessary and appropriate methods to ensure that access and disclosure 
is for proper purposes and only to authorized persons. States have 
discretion, however, to implement similar audit procedures.
    5. Comment: One commenter recommends moving Sec.  302.35(b) closer 
to Sec.  302.35(a) to clarify that the Federal PLS is considered part 
of the State PLS for IV-D cases and for authorized non-IV-D purposes 
under this section.
    Response: The Federal PLS is not part of the State PLS. 
Subparagraph (b) is based on the requirement that requests for Federal 
PLS data must flow through the State PLS.
    6. Comment: One commenter asks for confirmation that together 
Sec. Sec.  302.35(a)(1) and (2) and 302.35(c) limit the use of the 
State PLS for IV-D cases to only IV-D purposes but permits the use of 
the State PLS for non-IV-D individuals or non-IV-D cases for the 
authorized non-IV-D purposes.
    Response: Section 302.35(a)(1) and (2) limit the use of the State 
PLS for IV-D cases to only IV-D purposes but permits the use of SPLS 
for non-IV-D individuals or non-IV-D cases for the authorized non-IV-D 
purposes.
    7. Comment: One commenter suggests that the title of paragraph (1) 
be changed to ``For IV-D cases and IV-D purposes'' for clarity.
    Response: For clarity, we have revised the title of paragraphs (1) 
and (2) to distinguish between IV-D requests and non-IV-D requests.
    8. Comment: One commenter asks that the Office clarify why locate 
information, restricted for custody and visitation purposes to the most 
recent address and place of employment, requires such strict 
confidentiality where there is not a family violence indicator or other 
information giving rise to safety concerns for the parties. The address 
of a litigant to a court proceeding is considered public information 
and necessary for the case to proceed.
    Response: The restriction is statutory. Section 463(c) of the Act 
[Use of Federal PLS in connection with the enforcement or determination 
of child custody and in cases of parental kidnapping of a child] 
contains the restriction ``Only information as to the most recent 
address and place of employment of any parent or child shall be 
provided under this section.''
    9. Comment: In addition to using the State PLS for locating either 
parent for IV-D purposes, one commenter asks that the agency also be 
able to use the State PLS for locating the child for IV-D purposes.
    Response: IV-D agencies already have that authority with the 
Federal PLS. Section 453(a)(2)(iii), which states ``to whom such an 
obligation is owed'' includes the child. However, in response to this 
comment, we have added ``children'' to Sec.  302.35(a)(1).
    10. Comment: One commenter points out what he or she believes to be 
a mistake: ``Child'' is included in Appendix A to Sec.  302.35 under 
``Authorized Purpose'' but is not included in the preamble or in the 
regulation. Another commenter suggests that this section of the 
regulation be revised by deleting the words ``noncustodial parents'' 
and inserting ``a parent or child.''
    Response: We agree and have included reference to custodial 
parents, noncustodial parents and children in both the preamble and the 
regulation at Sec.  302.35.
    11. Comment: One commenter suggests substituting the word 
``parties'' for ``parents'' since the IV-D or a cooperating agency may 
be enforcing a support order in a IV-D case for a custodial party other 
than a parent.
    Response: The statute uses the term parent, although we recognize 
there may be instances where children are in the custodial care of 
individuals other than their parents.
    12. Comment: One commenter points out that the reference to Sec.  
303.3 in the second sentence of Sec.  302.35(a)(1) creates confusion 
because Sec.  303.3 only addresses locate requirements for noncustodial 
parents in IV-D cases. The commenter assumes this is not the intent of 
the proposed regulation and, to avoid confusion, recommends removing 
the second sentence of Sec.  302.35(a)(1) because the first sentence 
clearly conveys the intent of the subsection.
    Response: We agree and have removed the reference to Sec.  303.3, 
which only applies to location of noncustodial parents in IV-D cases.
    13. Comment: Several commenters had comments relating to the use of 
the State Disbursement Unit in non-IV-D case situations. Since it is a 
IV-D function to disburse support to custodial parents in non-IV-D 
cases subject to income withholding, can a IV-D program use the State 
PLS or Federal PLS to locate a non-IV-D custodial parent for purposes 
of disbursing child support?
    Response: Yes, this would be a legitimate use of locate sources for 
IV-D agencies seeking to locate such custodial parents in non-IV-D 
cases subject to income withholding.
    14. Comment: One commenter points out a contradiction in the 
regulation regarding the use of in-state locate sources. On the one 
hand, Sec.  302.35(a)(2) provides a mechanism for States to ``opt out'' 
of using in-state locate sources in response to a non-IV-D request if 
such use is ``prohibited by State law or written policy.'' Yet Sec.  
302.35(e) states ``the State PLS shall disclose * * * information from 
in-state locate sources as required by this section and described in 
Sec.  303.3(b)(1).'' This latter language suggests that expanded access 
is required regardless of State law or written policy, which is 
contrary to the intent expressed in the preamble to the proposed rule, 
as well as the intent of the statute.
    Response: We agree. We have revised the language to provide in-
state searches in accordance with State law.
    15. Comment: One commenter requests that the following terms be 
eliminated in the final rule: Non-IV-D individual(s); non-IV-D case(s); 
non-IV-

[[Page 56429]]

D request(s) and be replaced with ``non-IV-D purpose'' and another 
commenter asked that the Office provide a definition of non-IV-D 
purpose.
    Response: Reference to all four terms is appropriate each time a 
specific term is used in the regulation. Non-IV-D purpose is addressed 
in paragraph (d): the State PLS shall obtain location information under 
this section only for the purposes specified in paragraphs (d)(1) and 
(d)(2) of Sec.  302.35. Section 453 of the Act provides statutory 
authority for using the Federal PLS for the purpose of locating any 
individual who has or may have parental rights with respect to a child, 
enforcing any State or Federal law with respect to the unlawful taking 
or restraint of a child; or making or enforcing a child custody or 
visitation determination.
    16. Comment: One commenter seeks confirmation that taken together, 
these sections mean that once a State establishes policy to define 
State PLS sources of information, any other data contained in the 
State's computerized support enforcement system may not be released 
under this section, regardless of the source of that information.
    Response: The State's computerized support enforcement system is 
not a source of information for the State PLS. Access to any data on 
the statewide automated system is limited in sections 454A(d) and (f) 
of the Act and 45 CFR part 307. Independently verified information may 
be released to those authorized to access and use the information. For 
example, if a State determines that an address is correct through a 
postal verification the State can share the information it acquired 
from the second source (the Post Office).
    17. Comment: One commenter strongly suggests that this proposed 
regulation be modified to make it clear that it is the Federal OCSE's 
responsibility to exclude IRS information, or MSFIDM information when 
in receipt of a non-IV-D request for FPLS information.
    Response: If the State codes its requests correctly, (e.g., pk, ad, 
etc.), OCSE only returns appropriate information for that request. 
Please see the FCR Interface Guidance Document (Chart 6-14) https://
www.acf.hhs.gov/programs/cse/newhire/library/fcr/fcr.htm. However, the 
State may have such information in its files and the State bears the 
responsibility to assure that only authorized information is released 
in response to a request.
    18. Comment: One commenter strongly suggests that there be a simple 
system set up for OCSE to receive formal requests from States 
(preferably online with a predefined outgoing and incoming data format) 
that would ensure that all requests to the Federal PLS are properly 
documented and the authorized information would be returned in a pre-
defined format suitable to direct redisclosure to authorized 
requestors. The States' only duty would be to submit and return 
requests for information on behalf of non-IV-D authorized requestors. 
This would greatly enhance the security and confidentiality of this 
Federal requirement.
    Response: The FCR Interface Guidance Document, mentioned above, 
provides this service. For example, a Foster Care case locate-only code 
provides only authorized information but a request with a IV-D code 
provides much more data because the request is on a IV-D case.
    19. Comment: One commenter believes a better approach for this 
section would be for those individuals who desire child support 
services under the title IV-D program, including location services, to 
apply for services.
    Response: The Federal statute at sections 453 and 454(8) of the Act 
require States to disclose certain information to authorized non-IV-D 
persons for authorized purposes. Such purposes includes access for 
locate purposes. There is no requirement that individuals apply for IV-
D services to receive requested information.
    20. Comment: One State does not support requiring the State PLS to 
release information gathered from in-state sources to non-IV-D 
individuals unless there is a State law or policy prohibiting such a 
release as provided in Sec.  302.35(a)(2)(i) and believes this 
requirement exceeds the authority granted in 42 U.S.C. 653(a)(2) which 
pertains only to Federal PLS information. Instead, the State favors a 
provision that authorizes the State PLS to release in-state source 
information only if permitted under State law or regulation.
    Response: We accept the commenter's position and have revised the 
regulation accordingly.
    21. Comment: Two commenters would like recognized that the preamble 
claims States have interpreted current law ``to permit use of State 
resources for non-IV-D location purposes, including location for 
custody and visitation purposes'' and notes that while a handful of 
States may permit broad access to State databases by private entities, 
these practices are not widespread and are not based on a common or 
settled interpretation of Federal law. Because some States have chosen 
to disclose State PLS and Federal PLS information to non-IV-D 
requestors should not be the basis of requiring all States to do so.
    Response: See response to comment 20.
    22. Comment: A commenter says that if a State wishes to disclose 
State PLS data, it should have to have a written law or policy 
describing what it will disclose, to whom it will disclose it, and 
under what circumstances. In the absence of such a policy, State PLS 
data should not be disclosed to non-IV-D entities.
    Response: It is up to the State to set standards for disclosure.
    23. Comment: One commenter believes the final regulation should 
acknowledge that there may be other State laws governing the disclosure 
of personal data to nongovernmental entities if any mention of State 
duty to provide State PLS data is retained.
    Response: We believe the revised language ``in accordance with 
State law'' takes this into account.
    24. Comment: One commenter would like clarification on the reason 
for the restriction that prevents the State PLS from searching the 
statewide computer system or providing a non-IV-D requestor with any 
information contained in the system. The commenter asks for the 
rationale behind this restriction and an explanation on how OCSE 
envisions compliance by States whose non-IV-D cases are part of their 
statewide computer system.
    Response: Access to information in the IV-D automated system is 
strictly limited by Federal statute. Section 454A of the Act restricts 
disclosure of information in a State IV-D automated system to purposes 
related to the administration of the IV-D program so non-IV-D 
requestors cannot get such information.
    25. Comment: One commenter says that the language referring to the 
support enforcement computer system (along with Appendix A) can be read 
to prohibit the release of information contained in the system even 
where that information was derived from non-IRS or non-MSFIDM sources 
and asks whether this was the intent.
    Response: Yes, this is the intent. The Federal statute at sections 
454A(d) and (f) clearly restricts access to and disclosure of State 
automated child support system data.
    26. Comment: One commenter requests further explanation or 
clarification regarding the prohibition against releasing information 
from automated support enforcement systems to fulfill non-IV-D 
requests. Clarification is needed because any information received in 
the course of IV-D program business is typically

[[Page 56430]]

registered in such system; therefore, exactly what may be legally 
disclosed under Sec.  302.35(a)(2)(ii) is unclear.
    Response: Section 454A of the Act does not authorize access to 
State systems for non-IV-D purposes. Therefore, a State may only seek 
or locate information in a non-IV-D case directly from the State PLS or 
from the Federal PLS and disclose that data to a non-IV-D requestor. 
(Also see  27. below.)
    27. Comment: One commenter seeks clarification that the idea of 
Sec.  302.35(a)(2)(ii) is that if a State receives a non-IV-D request, 
it may not look to any information ``existing'' on its system but 
rather must conduct State PLS and Federal PLS searches for information 
and only the information resulting from those searches could be 
released, as authorized.
    Response: Yes, if a State receives a non-IV-D request, it may not 
look to any information ``existing'' in its system but rather must 
conduct State PLS and Federal PLS searches for information and only the 
information resulting from those searches can be released.
    28. Comment: One commenter notes that Sec.  302.35(c)(3) indicates 
that the State PLS may use some sources of data for non-IV-D location 
requests. However, it is noted in other parts that the State PLS shall 
not release information from the computerized support enforcement 
system. Many of the location sources the State agency uses feed into, 
and become part of, the computerized support enforcement system. Is the 
regulation forbidding the use of the CSE system to access otherwise 
permissible State sources of information?
    Response: The regulation prohibits release of information residing 
on the State's computerized support enforcement system, unless 
explicitly authorized. States may only share information on their 
automated system with authorized entities under 45 CFR Part 307. The 
State PLS may use the automated system to seek information from other 
sources as part of its location efforts in IV-D cases.
    29. Comment: One commenter proposes new language for Sec.  
302.35(a)(2)(ii) ``* * * IRS information or financial institution data 
match information relating to a financial account * * *'' Incorporating 
this language would allow other information (such as address 
information) from MSFIDM to be released pursuant to a non-IV-D request.
    Response: We are not incorporating the proposed change because of 
the need to safeguard all data received from a financial institution 
data match.
    30. Comment: One commenter wants IV-B/IV-E agencies to be able to 
view limited, address-related data from other States' IRS and financial 
institutions if such information could assist in locating the parent or 
person who could be a child's parent and is otherwise not available in 
any other system.
    Response: There is no authority under title IV-D of the Act or the 
Internal Revenue Service Code to allow this.
    31. Comment: One commenter disagrees with prohibiting the State PLS 
in non-IV-D requests from disclosing information from the computerized 
support system because 42 U.S.C. 654(8) mandates that States use ``all 
sources of information and available records'' to locate parents 
regardless of whether they are involved in a IV-D case. The State could 
not defend such a policy to its judges and asks why such a prohibition 
in this rule is necessary.
    Response: A State's defense would be that Federal law prohibits 
such disclosure. Section 454A(f) of the Act specially governs data in 
IV-D automated systems and strictly limits disclosure.
    32. Comment: One commenter asks what is the statutory basis for 
prohibiting disclosure of MSFIDM information for all non-IV-D requests. 
Because Federal statute limits use of financial record information from 
a financial institution ``only for the purpose of * * * establishing, 
modifying or enforcing a child support obligation'', it appears FIDM 
information could be used for both IV-D and non-IV-D child support 
purposes.
    Response: IV-D programs have statutory responsibility to safeguard 
confidential information not specifically authorized for release under 
section 453 of the Act. The IV-D program has broad access to certain 
data of all sorts from myriad sources. We believe it is essential to 
strictly limit access to data. Section 469A of the Act only provides 
for nonliability for financial institutions for disclosures to a State 
Child Support Enforcement agency or to the Federal PLS for purposes of 
section 466(a)(17) of the Act. The statute provides that the 
information be used only for IV-D purposes.
    33. Comment: One commenter supports while another seeks 
clarification that Sec.  302.35(a)(2)(ii) prohibits release of 
information from the State's computerized support enforcement system 
even if that information is obtained from non