[Congressional Record Volume 143, Number 132 (Monday, September 29, 1997)]
[House]
[Pages H8081-H8084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CHILD SUPPORT INCENTIVE ACT OF 1997
Mr. SHAW. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 2487) to improve the effectiveness
[[Page H8082]]
and efficiency of the child support enforcement program and thereby
increase the financial stability of single parent families, including
those attempting to leave welfare, as amended.
The Clerk read as follows:
H.R. 2487
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), 0.49
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), 0.37 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
[[Page H8083]]
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
and part or all of the payments were distributed to the
family to whom the past-due child support was owed (or, if
all past-due child support owed to the family was, at the
time of receipt, subject to an assignment to the State, part
or all of the payments were retained by the State) 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 (including cost-effective contracts
with local agencies) 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) Report on variations in state performance attributable
to demographic variables.--Not later than October 1, 2000,
the Secretary shall submit to the Congress a report that
identifies any demographic or economic variables that account
for differences in the performance levels achieved by the
States with respect to the performance measures used in the
system, and contains the recommendations of the Secretary for
such adjustments to the system as may be necessary to ensure
that the relative performance of States is measured from a
baseline that takes account of any such variables.
(ii) 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).
(iii) 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) Technical Amendments.--
(1) In general.--Section 341 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (42 U.S.C.
658 note) is amended--
(A) by striking subsection (a) and redesignating
subsections (b), (c), and (d) as subsections (a), (b), and
(c), respectively; and
(B) in subsection (c) (as so redesignated)--
(i) by striking paragraph (1) and inserting the following:
``(1) Conforming amendments to present system.--The
amendments made by subsection (a) of this section shall
become effective with respect to a State as of the date the
amendments made by section 103(a) (without regard to section
116(a)(2)) first apply to the State.''; and
(ii) in paragraph (2), by striking ``(c)'' and inserting
``(b)''.
(2) Effective date.--The amendments made by this section
shall take effect as if included in the enactment of section
341 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
(f) 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.
(g) General Effective Date.--Except as otherwise provided
in this section, the amendments
[[Page H8084]]
made by this section shall take effect on October 1, 1999.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Florida [Mr. Shaw] and the gentleman from Michigan [Mr. Levin] each
will control 20 minutes.
The Chair recognizes the gentleman from Florida [Mr. Shaw].
General Leave
Mr. SHAW. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days in which to revise and extend their remarks and
include extraneous material on H.R. 2487.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
Mr. SHAW. Mr. Speaker, the Federal Government now spends nearly half
a billion dollars per year providing the States with incentive payments
for good performance in collecting child support, but the current
system has serious deficiencies.
The Federal Government provides more than half the incentive money
virtually without regard to performance. Even worse, although many
States have poor child support programs, current laws allow States to
use the incentive payment as a kind of kitty for the State treasury.
Thus, money that should be used to improve child support programs is
used by some States to build roads and bridges.
The new system we are considering today, based on work by the
administration, directors of State and child support programs, and a
bipartisan coalition headed by the gentleman from Michigan [Mr. Levin]
and me, solves both of these problems and more. Under this bill, which
was approved unanimously by the Committee on Ways and Means, every
penny of the incentive money will be based on performance and States
can use the money only on child support activities.
The new incentive system created by this legislation is simply one
more tool that Congress has enacted to improve the performance of the
Federal-State child support program. Many other tools are just now
being put in place by State governments as required under last year's
welfare reform law.
Once all of last year's reforms are in place and once the new
incentive program begins to reward high-performance States, I believe
we will see a steady improvement in the child support program as more
and more single-parent families and children receive sorely needed cash
and medical support. Perhaps of the greatest importance, many hundreds
of thousands of those helped will be single parents struggling to leave
welfare and to stay off of welfare.
This bill enjoys bipartisan support and was developed in close
cooperation with the administration. The reforms made by this bill will
greatly improve the child support program. Let us bring this bill out
of the House with a resounding voice so that the Nation's children can
start getting the financial support they need and deserve.
Mr. Speaker, I reserve the balance of my time.
{time} 1330
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
I want to thank the gentleman from Florida [Mr. Shaw], and I wish to
express my appreciation for the bipartisan spirit with which this
important piece of legislation has been developed. I would also like to
congratulate the administration, HHS, Secretary Shalala and all of her
staff, and I would like to congratulate the staffs of our committee,
Dr. Haskins, who is here, Deborah Colton, who is on the floor with us,
my own staff, as well as others, because today we are poised to take an
important next step in our continuing efforts to assure that every kid
in this country is supported by both parents. A job that pays a living
wage is one component of self-sufficiency for families, and for single
parents, a child support order and a noncustodial parent who supports
the family every month can be equally important.
Last year we devoted considerable time and attention to one aspect of
assuring the financial security of America's children: making work a
central element of our Nation's welfare laws. After all, a job paying a
living wage is probably the most important component of self-
sufficiency for families on welfare.
Another essential part of welfare reform is child support. It sends a
message of responsibility to both parents and it is a vital part of
moving families toward work and self-sufficiency.
We have seen some progress since the 1970's when Congress began to
insist that States give priority to child support enforcement.
Collections have risen from $1 billion a year to more than $11 billion
in 1995; and in that same year, more than 5 million parents were
located and paternity was established for over 600,000 children.
But that is not good enough. Of the 9.9 million female-headed
families in 1991 eligible for child support, only 56 percent had child
support orders. That means that 4.5 million families did not even have
an order to enforce. Those with child support orders were not always
much better off. Only about half of those due money from a noncustodial
parent actually received 100 percent of their court-ordered child
support payments.
Well, in the mid-1980's when we designed the current incentive
system, we did the best we could with limited information available to
us. But now, after nearly a decade of experience, we are in a position
to create a more sophisticated system that truly rewards performance.
The new system will reward States with incentive funds based on the
State's performance in 5 essential areas: establishment of paternity;
establishment of child support orders; collection on current child
support owed; collection on previously or past due child support owed;
and cost-effectiveness. These measures will more accurately reflect the
true performance of the States and their success in helping families
achieve self-sufficiency.
To be sure, a wholesale change of this magnitude may be a bit
daunting to States because of the uncertainty of the size of incentive
payments coupled with the dramatic changes our entire welfare system is
undergoing. But before we conclude that some States may lose Federal
funds under this new system, let us remember that it will be several
years before the new incentives are fully implemented, and the goal is
for all States to continue working and to qualify for the new
incentives.
In the past decade, we have made progress, but as said, much more
remains to be done, and as the gentleman from Florida [Mr. Shaw], has
said so well throughout these proceedings, this bill can help.
Our legislation redesigns the financing of the child support program
to reward those States that perform best. We fine-tune the incentive
payments we make to the States so that those States that operate a
balanced and efficient program are rewarded, and we phase in the new
system, and that should be emphasized, to minimize any disruptions at
the State level.
This bill is a bipartisan product. It is truly a consensus proposal,
and I am sure that the gentleman from Florida [Mr. Shaw] and all of the
Members of our committee, and I think the House today, will join in
expressing this hope, that we will not only pass this bill in this
House but the Senate will act on it before it adjourns for the year.
Mr. Speaker, I reserve the balance of my time.
Mr. SHAW. Mr. Speaker, I do not have any further requests for time,
and I yield back the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Florida [Mr. Shaw] that the House suspend the rules and
pass the bill, H.R. 2487, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________