[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2487 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2487

   To improve the effectiveness and efficiency of the child support 
  enforcement program and thereby increase the financial stability of 
  single parent families including those attempting to leave welfare.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 17, 1997

  Mr. Shaw (for himself and Mr. Levin) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To improve the effectiveness and efficiency of the child support 
  enforcement program and thereby increase the financial stability of 
  single parent families including those attempting to leave welfare.

    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 Incentive Act of 
1997''.

SEC. 2. INCENTIVE PAYMENTS TO STATES.

    (a) In General.--Part D of title IV of the Social Security Act (42 
U.S.C. 651-669) is amended by inserting after section 458 the 
following:

``SEC. 458A. INCENTIVE PAYMENTS TO STATES.

    ``(a) In General.--In addition to any other payment under this 
part, the Secretary shall, subject to subsection (f), make an incentive 
payment to each State for each fiscal year in an amount determined 
under subsection (b).
    ``(b) Amount of Incentive Payment.--
            ``(1) In general.--The incentive payment for a State for a 
        fiscal year is equal to the sum of the applicable percentages 
        (determined in accordance with paragraph (3)) of the maximum 
        incentive amount for the State for the fiscal year, with 
        respect to each of the following measures of State performance 
        for the fiscal year:
                    ``(A) The paternity establishment performance 
                level.
                    ``(B) The support order performance level.
                    ``(C) The current payment performance level.
                    ``(D) The arrearage payment performance level.
                    ``(E) The cost-effectiveness performance level.
            ``(2) Maximum incentive amount.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the maximum incentive amount for a State for a fiscal 
                year is--
                            ``(i) with respect to the performance 
                        measures described in subparagraphs (A), (B), 
                        and (C) of paragraph (1), 1 percent of the 
                        State collections base for the fiscal year; and
                            ``(ii) with respect to the performance 
                        measures described in subparagraphs (D) and (E) 
                        of paragraph (1), 0.75 percent of the State 
                        collections base for the fiscal year.
                    ``(B) Data used to calculate ratios required to be 
                complete and reliable.--Notwithstanding subparagraph 
                (A), the maximum incentive amount for a State for a 
                fiscal year with respect to a performance measure 
                described in paragraph (1) is zero, unless the 
                Secretary determines, on the basis of an audit 
                performed under section 452(a)(4)(C)(i), that the data 
                which the State submitted pursuant to section 
                454(15)(B) for the fiscal year and which is used to 
                determine the performance level involved is complete 
                and reliable.
                    ``(C) State collections base.--For purposes of 
                subparagraph (A), the State collections base for a 
                fiscal year is equal to the sum of--
                            ``(i) 2 times the sum of--
                                    ``(I) the total amount of support 
                                collected during the fiscal year under 
                                the State plan approved under this part 
                                in cases in which the support 
                                obligation involved is required to be 
                                assigned to the State pursuant to part 
                                A or E of this title or title XIX; and
                                    ``(II) the total amount of support 
                                collected during the fiscal year under 
                                the State plan approved under this part 
                                in cases in which the support 
                                obligation involved was so assigned 
                                but, at the time of collection, is not 
                                required to be so assigned; and
                            ``(ii) the total amount of support 
                        collected during the fiscal year under 
the State plan approved under this part in all other cases.
            ``(3) Determination of applicable percentages based on 
        performance levels.--
                    ``(A) Paternity establishment.--
                            ``(i) Determination of paternity 
                        establishment performance level.--The paternity 
                        establishment performance level for a State for 
                        a fiscal year is, at the option of the State, 
                        the IV-D paternity establishment percentage 
                        determined under section 452(g)(2)(A) or the 
                        statewide paternity establishment percentage 
                        determined under section 452(g)(2)(B).
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's paternity establishment 
                        performance level is as follows:
      

------------------------------------------------------------------------
``If the paternity establishment performance level is:                  
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
0%...............................  50%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        paternity establishment performance level of a 
                        State for a fiscal year is less than 50 percent 
                        but exceeds by at least 10 percentage points 
                        the paternity establishment performance level 
                        of the State for the immediately preceding 
                        fiscal year, then the applicable percentage 
                        with respect to the State's paternity 
                        establishment performance level is 50 percent.
                    ``(B) Establishment of child support orders.--
                            ``(i) Determination of support order 
                        performance level.--The support order 
                        performance level for a State for a fiscal year 
                        is the percentage of the total number of cases 
                        under the State plan approved under this part 
                        in which there is a support order during the 
                        fiscal year.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's support order performance 
                        level is as follows:
      

------------------------------------------------------------------------
     ``If the support order performance level is:                       
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
0%...............................  50%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        support order performance level of a State for 
                        a fiscal year is less than 50 percent but 
                        exceeds by at least 5 percentage points the 
                        support order performance level of the State 
                        for the immediately preceding fiscal year, then 
                        the applicable percentage with respect to the 
                        State's support order performance level is 50 
                        percent.
                    ``(C) Collections on current child support due.--
                            ``(i) Determination of current payment 
                        performance level.--The current payment 
                        performance level for a State for a fiscal year 
                        is equal to the total amount of current support 
                        collected during the fiscal year under the 
                        State plan approved under this part divided by 
                        the total amount of current support owed during 
                        the fiscal year in all cases under the State 
                        plan, expressed as a percentage.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
respect to a State's current payment performance level is as follows:
      

------------------------------------------------------------------------
    ``If the current payment performance level is:                      
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
49%..............................  50%................         59       
48%..............................  49%................         58       
47%..............................  48%................         57       
46%..............................  47%................         56       
45%..............................  46%................         55       
44%..............................  45%................         54       
43%..............................  44%................         53       
42%..............................  43%................         52       
41%..............................  42%................         51       
40%..............................  41%................         50       
0%...............................  40%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        current payment performance level of a State 
                        for a fiscal year is less than 40 percent but 
                        exceeds by at least 5 percentage points the 
                        current payment performance level of the State 
                        for the immediately preceding fiscal year, then 
                        the applicable percentage with respect to the 
                        State's current payment performance level is 50 
                        percent.
                    ``(D) Collections on child support arrearages.--
                            ``(i) Determination of arrearage payment 
                        performance level.--The arrearage payment 
                        performance level for a State for a fiscal year 
                        is equal to the total number of cases under the 
                        State plan approved under this part in which 
                        payments of past-due child support were 
                        received during the fiscal year divided by the 
                        total number of cases under the State plan in 
                        which there is past-due child support, 
                        expressed as a percentage.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's arrearage payment 
                        performance level is as follows:
      

------------------------------------------------------------------------
   ``If the arrearage payment performance level is:                     
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
49%..............................  50%................         59       
48%..............................  49%................         58       
47%..............................  48%................         57       
46%..............................  47%................         56       
45%..............................  46%................         55       
44%..............................  45%................         54       
43%..............................  44%................         53       
42%..............................  43%................         52       
41%..............................  42%................         51       
40%..............................  41%................         50       
0%...............................  40%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        arrearage payment performance level of a State 
                        for a fiscal year is less than 40 percent but 
                        exceeds by at least 5 percentage points the 
                        arrearage payment performance level of the 
                        State for the immediately preceding fiscal 
                        year, then the applicable percentage with 
                        respect to the State's arrearage payment 
                        performance level is 50 percent.
                    ``(E) Cost-effectiveness.--
                            ``(i) Determination of cost-effectiveness 
                        performance level.--The cost-effectiveness 
                        performance level for a State for a fiscal year 
                        is equal to the total amount collected during 
                        the fiscal year under the State plan approved 
                        under this part divided by the total amount 
                        expended during the fiscal year under the State 
                        plan, expressed as a ratio.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's cost-effectiveness 
                        performance level is as follows:
      

------------------------------------------------------------------------
   ``If the cost effectiveness performance level is:                    
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
5.00.............................  ...................         100      
4.50.............................  4.99...............         90       
4.00.............................  4.50...............         80       
3.50.............................  4.00...............         70       
3.00.............................  3.50...............         60       
2.50.............................  3.00...............         50       
2.00.............................  2.50...............         40       
0.00.............................  2.00...............         0.       
------------------------------------------------------------------------

    ``(c) Treatment of Interstate Collections.--In computing incentive 
payments under this section, support which is collected by a State at 
the request of another State shall be treated as having been collected 
in full by both States, and any amounts expended by a State in carrying 
out a special project assisted under section 455(e) shall be excluded.
    ``(d) Administrative Provisions.--The amounts of the incentive 
payments to be made to the States under this section for a fiscal year 
shall be estimated by the Secretary at or before the beginning of the 
fiscal year on the basis of the best information available. The 
Secretary shall make the payments for the fiscal year, on a quarterly 
basis (with each quarterly payment being made no later than the 
beginning of the quarter involved), in the amounts so estimated, 
reduced or increased to the extent of any overpayments or underpayments 
which the Secretary determines were made under this section to the 
States involved for prior periods and with respect to which adjustment 
has not already been made under this subsection. Upon the making of any 
estimate by the Secretary under the preceding sentence, any 
appropriations available for payments under this section are deemed 
obligated.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary governing the calculation of incentive payments 
under this section, including directions for excluding from the 
calculations certain closed cases and cases over which the States do 
not have jurisdiction.
    ``(f) Reinvestment.--A State to which a payment is made under this 
section shall expend the full amount of the payment--
            ``(1) to carry out the State plan approved under this part; 
        or
            ``(2) for any activity approved by the Secretary, whether 
        or not the expenditures for which are eligible for 
        reimbursement under this part, which may contribute to 
        improving the effectiveness or efficiency of the State program 
        operated under this part.''.
    (b) Transition Rule.--Notwithstanding any other provision of law--
            (1) for fiscal year 2000, the Secretary shall reduce by \1/
        3\ the amount otherwise payable to a State under section 458, 
        and shall reduce by \2/3\ the amount otherwise payable to a 
        State under section 458A; and
            (2) for fiscal year 2001, the Secretary shall reduce by \2/
        3\ the amount otherwise payable to a State under section 458, 
        and shall reduce by \1/3\ the amount otherwise payable to a 
        State under section 458A.
    (c) Regulations.--Within 9 months after the date of the enactment 
of this section, the Secretary of Health and Human Services shall 
prescribe regulations governing the implementation of section 458A of 
the Social Security Act when such section takes effect and the 
implementation of subsection (b) of this section.
    (d) Studies.--
            (1) General review of new incentive payment system.--
                    (A) In general.--The Secretary of Health and Human 
                Services shall conduct a study of the implementation of 
                the incentive payment system established by section 
                458A of the Social Security Act, in order to identify 
                the problems and successes of the system.
                    (B) Reports to the congress.--
                            (i) Interim report.--Not later than March 
                        1, 2001, the Secretary shall submit to the 
                        Congress an interim report that contains the 
                        findings of the study required by subparagraph 
                        (A).
                            (ii) Final report.--Not later than October 
                        1, 2003, the Secretary shall submit to the 
                        Congress a final report that contains the final 
                        findings of the study required by subparagraph 
                        (A). The report shall include any 
                        recommendations for changes in the system that 
                        the Secretary determines would improve the 
                        operation of the child support enforcement 
                        program.
            (2) Development of medical support incentive.--
                    (A) In general.--The Secretary of Health and Human 
                Services, in consultation with State directors of 
                programs operated under part D of title IV of the 
                Social Security Act and representatives of children 
                potentially eligible for medical support, shall develop 
                a performance measure based on the effectiveness of 
                States in establishing and enforcing medical support 
                obligations, and shall make recommendations for the 
                incorporation of the measure, in a revenue neutral 
                manner, into the incentive payment system established 
                by section 458A of the Social Security Act.
                    (B) Report.--Not later than October 1, 1999, the 
                Secretary shall submit to the Congress a report that 
                describes the performance measure and contains the 
                recommendations required by subparagraph (A).
    (e) Elimination of Predecessor Incentive Payment System.--
            (1) Repeal.--Section 458 of the Social Security Act (42 
        U.S.C. 658) is repealed.
            (2) Conforming amendments.--
                    (A) Section 458A of the Social Security Act (42 
                U.S.C. 658a) is redesignated as section 458.
                    (B) Subsection (d)(1) of this section is amended by 
                striking ``458A'' and inserting ``458''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2001.
    (f) General Effective Date.--Except as provided in subsection 
(e)(3), the amendments made by this section shall take effect on 
October 1, 1999.
                                 <all>