Child Support Enforcement Improvements Act of 1996

Child Support Enforcement Improvements Act of 1996 - Prescribes guidelines under which depository institutions shall not be liable to any person for disclosing a financial record to a State child support enforcement agency attempting to establish, modify, or enforce an individual's child support obligation.

Authorizes a civil action for damages for wrongful disclosure of an individual's financial records by a State officer or employee.

Amends the Fair Credit Reporting Act to provide State child support enforcement agencies access to, and use of, consumer reports in child support cases.

Amends part D of title IV (Child Support and Establishment of Paternity) of the Social Security Act to condition Federal approval of State plans for aid and services to needy families with children upon inclusion within State child support orders of statutorily prescribed procedures for health care coverage of the child.

States that, for the incentive payments program, successful State enforcement of a support order requiring an absent parent to obtain health insurance for one or more children shall be considered the collection of support from the absent parent.

Requires the Secretary of Health and Human Services to study and report to specified congressional committees on incentives that should be provided to encourage States to enforce obligations of noncustodial parents to pay reasonable and necessary health and dental expenses of their children.

Requires employers withholding wages to pay child support obligations to pay such withheld wages to the State within ten days. Imposes a penalty for late payments.

Instructs the Secretary to expand the Parent Locator Service to establish a national network to provide access to specified State and Federal sources of information based on the comprehensive statewide child support enforcement systems developed by the States.