[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 642 Introduced in Senate (IS)]

  1st Session
                                 S. 642

  To provide for demonstration projects in six States to establish or 
  improve a system of assured minimum child support payments, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 28 (legislative day, March 27), 1995

  Mr. Dodd (for himself and Mr. Rockefeller) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To provide for demonstration projects in six States to establish or 
  improve a system of assured minimum child support payments, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Support Assurance Act of 
1995''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the number of single-parent households has increased 
        significantly;
            (2) there is a high correlation between childhood poverty 
        and growing up in a single-parent household;
            (3) family dissolution often brings the economic 
        consequence of a lower standard of living for the custodian and 
        children;
            (4) children are nearly twice as likely to be in poverty 
        after a family dissolution as before a family dissolution;
            (5) one-fourth of the single mothers who are owed child 
        support receive none and another one-fourth of such mothers 
        receive only partial child support payments;
            (6) single mothers above and below the poverty line are 
        equally likely to receive none of the child support they are 
        owed; and
            (7) the failure of children to receive an adequate level of 
        child support limits the ability of such children to thrive and 
        to develop their potential and leads to long-term societal 
        costs in terms of health care, welfare, and loss in labor force 
        productivity.
    (b) Purpose.--It is the purpose of this Act to enable participating 
States to establish child support assurance systems in order to improve 
the economic circumstances of children who do not receive a minimum 
level of child support from the noncustodial parents of such children 
and to strengthen the establishment and enforcement of child support 
awards. The child support assurance approach is structured on a 
demonstration basis in order to implement and evaluate different 
options with respect to the provision of intensive support services and 
mechanisms for administering the program on a national basis.

SEC. 3. ESTABLISHMENT OF CHILD SUPPORT ASSURANCE DEMONSTRATION 
              PROJECTS.

    (a) In General.--In order to encourage States to provide a 
guaranteed minimum level of child support for every eligible child not 
receiving such support, the Secretary of Health and Human Services 
(hereafter in this section referred to as the ``Secretary'') shall make 
grants to not more than 6 States to conduct demonstration projects for 
the purpose of establishing or improving a system of assured minimum 
child support payments in accordance with this section.
    (b) Contents of Application.--An application for a grant under this 
section shall be submitted by the Chief Executive Officer of a State 
and shall--
            (1) contain a description of the proposed child support 
        assurance project to be established, implemented, or improved 
        using amounts provided under this section, including the level 
        of the assured benefit to be provided, the specific activities 
        to be undertaken, and the agencies that will be involved;
            (2) specify whether the project will be carried out 
        throughout the State or in limited areas of the State;
            (3) estimate the number of children who will be eligible 
        for assured minimum child support payments under the project, 
        and the amounts to which they will be entitled on average as 
        individuals and in the aggregate;
            (4) describe the child support guidelines and review 
        procedures which are in use in the State and any expected 
        modifications;
            (5) contain a commitment by the State to carry out the 
        project during a period of not less than 3 and not more than 5 
        consecutive fiscal years beginning with fiscal year 1997;
            (6) contain assurances that the State--
                    (A) is currently at or above the national median 
                paternity establishment percentage (as defined in 
                section 452(g)(2) of the Social Security Act (42 U.S.C. 
                652(g)(2));
                    (B) will improve the performance of the agency 
                designated by the State to carry out the requirements 
                under part D of title IV of the Social Security Act by 
                at least 4 percent each year in which the State 
                operates a child support assurance project under this 
                section in--
                            (i) the number of cases in which paternity 
                        is established when required;
                            (ii) the number of cases in which child 
                        support orders are obtained; and
                            (iii) the number of cases with child 
                        support orders in which collections are made; 
                        and
                    (C) to the maximum extent possible under current 
                law, will use Federal, State, and local job training 
                assistance to assist individuals who have been 
                determined to be unable to meet such individuals' child 
                support obligations;
            (7) describe the extent to which multiple agencies, 
        including those responsible for administering the Aid to 
        Families With Dependent Children Program under part A of title 
        IV of the Social Security Act and child support collection, 
        enforcement, and payment under part D of such title, will be 
        involved in the design and operation of the child support 
        assurance project; and
            (8) contain such other information as the Secretary may 
        require by regulation.
    (c) Use of Funds.--A State shall use amounts provided under a grant 
awarded under this section to carry out a child support assurance 
project designed to provide a minimum monthly child support benefit for 
each eligible child in the State to the extent that such minimum child 
support is not paid in a month by the noncustodial parent.
    (d) Requirements.--
            (1) In general.--A child support assurance project funded 
        under this section shall provide that--
                    (A) any child (as defined in paragraph (2)) with a 
                living noncustodial parent for whom a child support 
                order has been sought (as defined in paragraph (3)) or 
                obtained and any child who meets ``good cause'' 
                criteria for not seeking or enforcing a support order 
                is eligible for the assured child support benefit;
                    (B) the assured child support benefit shall be paid 
                promptly to the custodial parent at least once a month 
                and shall be--
                            (i) an amount determined by the State which 
                        is--
                                    (I) not less than $1,500 per year 
                                for the first child, $1,000 per year 
                                for the second child, and $500 per year 
                                for the third and each subsequent 
                                child; and
                                    (II) not more than $3,000 per year 
                                for the first child and $1,000 per year 
                                for the second and each subsequent 
                                child;
                            (ii) offset and reduced to the extent that 
                        the custodial parent receives child support in 
                        a month from the noncustodial parent;
                            (iii) indexed and adjusted for inflation; 
                        and
                            (iv) in the case of a family of children 
                        with multiple noncustodial parents, calculated 
                        in the same manner as if all such children were 
                        full siblings, but any child support payment 
                        from a particular noncustodial parent shall 
                        only be applied against the assured child 
                        support benefit for the child or children of 
                        that particular noncustodial parent;
                    (C) for purposes of determining the need of a child 
                or relative and the level of assistance, one-half of 
                the amount received as a child support payment shall be 
                disregarded from income until the total amount of child 
                support and Aid to Families With Dependent Children 
                benefit received under part A of title IV of the Social 
                Security Act equals the income official poverty line 
                (as defined by the Office of Management and Budget, and 
                revised annually in accordance with section 673(2) of 
                the Omnibus Budget Reconciliation Act of 1981) that is 
                applicable to a family of the size involved;
                    (D) in the event that the family as a whole becomes 
                ineligible for aid to families with dependent children 
                under part A of title IV of the Social Security Act due 
                to consideration of assured child support benefits, the 
                continuing eligibility of the caretaker for aid to 
                families with dependent children under such title shall 
                be calculated without consideration of the assured 
                child support benefit; and
                    (E) in order to participate in the child support 
                assurance project, the child's caretaker shall apply 
                for services of the State's child support enforcement 
                program under part D of title IV of the Social Security 
                Act.
            (2) Definition of child.--For purposes of this section, the 
        term ``child'' means an individual who is of such an age, 
disability, or educational status as to be eligible for child support 
as provided for by the law of the State in which such individual 
resides.
            (3) Determination of seeking a child support order.--For 
        purposes of this section, a child support order shall be deemed 
        to have been ``sought'' where an individual has applied for 
        services from the State agency designated by the State to carry 
        out the requirements of part D of title IV of the Social 
        Security Act or has sought a child support order through 
        representation by private or public counsel or pro se.
    (e) Consideration and Priority of Applications.--
            (1) Selection criteria.--The Secretary shall consider all 
        applications received from States desiring to conduct 
        demonstration projects under this section and shall approve not 
        more than 6 applications which appear likely to contribute 
        significantly to the achievement of the purpose of this 
        section. In selecting States to conduct demonstration projects 
        under this section, the Secretary shall--
                    (A) ensure that the applications selected represent 
                a diversity of minimum benefits distributed throughout 
                the range specified in subsection (d)(1)(B)(i);
                    (B) consider the geographic dispersion and 
                variation in population of the applicants;
                    (C) give priority to States with applications that 
                demonstrate--
                            (i) significant recent improvements in--
                                    (I) establishing paternity and 
                                child support awards;
                                    (II) enforcement of child support 
                                awards; and
                                    (III) collection of child support 
                                payments;
                            (ii) a record of effective automation; and
                            (iii) that efforts will be made to link 
                        child support systems with other service 
                        delivery systems;
                    (D) ensure that the proposed projects will be of a 
                size sufficient to obtain a meaningful measure of the 
                effects of child support assurance;
                    (E) give priority, first, to States intending to 
                operate a child support assurance project on a 
                statewide basis, and, second, to States that are 
                committed to phasing in an expansion of such project to 
                the entire State, if interim evaluations suggest such 
                expansion is warranted; and
                    (F) ensure that, if feasible, the States selected 
                use a variety of approaches for child support 
                guidelines.
            (2) Requirements for grantees.--Of the States selected to 
        participate in the demonstration projects conducted under this 
        section, the Secretary shall require, if feasible--
                    (A) that at least 2 provide intensive integrated 
                social services for low-income participants in the 
                child support assurance project, for the purpose of 
                assisting such participants in improving their 
                employment, housing, health, and educational status; 
                and
                    (B) that at least 2 have adopted the Uniform 
                Interstate Family Support Act.
    (f) Duration.--During fiscal year 1996, the Secretary shall develop 
criteria, select the States to participate in the demonstration, and 
plan for the evaluation required under subsection (h). The 
demonstration projects conducted under this section shall commence on 
October 1, 1996, and shall be conducted for not less than 3 and not 
more than 5 consecutive fiscal years, except that the Secretary may 
terminate a project before the end of such period if the Secretary 
determines that the State conducting the project is not in substantial 
compliance with the terms of the application approved by the Secretary 
under this section.
    (g) Cost Savings Recovery.--The Secretary shall develop a 
methodology to identify any State cost savings realized in connection 
with the implementation of a child support assurance project conducted 
under this Act. Any such savings realized as a result of the 
implementation of a child support assurance project shall be utilized 
for child support enforcement improvements or expansions and 
improvements in the Aid to Families With Dependent Children Program 
conducted under part A of title IV of the Social Security Act within 
the participating State.
    (h) Evaluation and Report to Congress.--
            (1) Evaluation.--The Secretary shall conduct an evaluation 
        of the effectiveness of the demonstration projects funded under 
        this section. The evaluation shall include an assessment of the 
        effect of an assured benefit on--
                    (A) income from nongovernment sources and the 
                number of hours worked;
                    (B) the use and amount of government supports;
                    (C) the ability to accumulate resources;
                    (D) the well-being of the children, including 
                educational attainment and school behavior; and
                    (E) the State's rates of establishing paternity and 
                support orders and of collecting support.
            (2) Reports.--Three and five years after commencement of 
        the demonstration projects, the Secretary shall submit an 
        interim and final report based on the evaluation to the 
        Committee on Finance and the Committee on Labor and Human 
        Resources of the Senate, and the Committee on Ways and Means 
        and the Committee on Economic and Educational Opportunities of 
        the House of Representatives concerning the effectiveness of 
        the child support assurance projects funded under this section.
    (i) State Reports.--The Secretary shall require each State that 
conducts a demonstration project under this section to annually report 
such information on the project's operation as the Secretary may 
require, except that all such information shall be reported according 
to a uniform format prescribed by the Secretary.
    (j) Restrictions on Matching and Use of Funds.--
            (1) In general.--A State conducting a demonstration project 
        under this section shall be required--
                    (A) except as provided in paragraph (2), to provide 
                not less than 20 percent of the total amounts expended 
                in each calendar year of the project to pay the costs 
                associated with the project funded under this section;
                    (B) to maintain its level of expenditures for child 
                support collection, enforcement, and payment at the 
                same level, or at a higher level, than such 
                expenditures were prior to such State's participation 
                in a demonstration project provided by this section; 
                and
                    (C) to maintain the Aid to Families With Dependent 
                Children benefits provided under part A of title IV of 
                the Social Security Act at the same level, or at a 
                higher level, as the level of such benefits on the date 
                of the enactment of this Act.
            (2) Exception.--A State participating in a demonstration 
        project under this section may provide not less than 10 percent 
        of the total amounts expended to pay the costs associated with 
        the project funded under this section in years after the first 
        year such project is conducted in a State if the State meets 
        the improvements specified in subsection (b)(6)(B).
    (k) Coordination With Certain Means-Tested Programs.--For purposes 
of--
            (1) the United States Housing Act of 1937 (42 U.S.C. 1437 
        et seq.);
            (2) title V of the Housing Act of 1949 (42 U.S.C. 1471 et 
        seq.);
            (3) section 101 of the Housing and Urban Development Act of 
        1965 (12 U.S.C. 1701s);
            (4) sections 221(d)(3), 235, and 236 of the National 
        Housing Act (12 U.S.C. 1715l(d)(3), 1715z, 1715z-1);
            (5) the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
            (6) title XIX of the Social Security Act (42 U.S.C. 1396 et 
        seq.); and
            (7) child care assistance provided through--
                    (A) part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.);
                    (B) the Child Care and Development Block Grant Act 
                of 1990 (42 U.S.C. 9858 et seq.); or
                    (C) title XX of the Social Security Act (42 U.S.C. 
                1397 et seq.),
any payment made to an individual within the demonstration project area 
for child support up to the amount which an assured child support 
benefit would provide shall not be treated as income and shall not be 
taken into account in determining resources for the month of its 
receipt and the following month.
    (l) Treatment of Child Support Benefit.--Any assured child support 
benefit received by an individual under this Act shall be considered 
child support for purposes of the Internal Revenue Code of 1986.
    (m) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary in each of fiscal years 
1996, 1997, 1998, 1999, 2000, and 2001 to carry out the purposes of 
this Act.
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