[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.
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