[Congressional Record Volume 143, Number 140 (Thursday, October 9, 1997)]
[Senate]
[Pages S10804-S10807]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself and Ms. Snowe):
  S. 1293. A bill to improve the performance outcomes of the child 
support enforcement program in order to increase the financial 
stability and well-being of children and families; to the Committee on 
Finance.


         the child support performance improvement act of 1997

  Mr. ROCKEFELLER. Mr. President, I am pleased to join my colleague and 
friend, Senator Snowe, in introducing the Child Support Performance 
Improvement Act of 1997. I have long been impressed with Senator 
Snowe's commitment to the health, safety, and well-being of children, 
and I believe that this legislation will go far to improve the 
financial security of thousands of American children.
  As a country, our most fundamental measure of success is how well we 
treat our children. We have a responsibility as Members of Congress and 
as a community to do our utmost to make sure that American children 
live happy, healthy, and stable lives. At the same time, we must 
acknowledge that much of the responsibility in ensuring children's 
happiness and security falls squarely at the feet of their parents. 
Sadly, many parents neglect their emotional and financial 
responsibilities, maintaining that because they are no longer living in 
the same house as their children, they no longer have to support them.
  It is estimated that each year, $15 to $25 billion in child support 
go uncollected. One study reported that four out of five parents have 
attempted to shirk their court-ordered child support responsibilities 
at one time or another. In many of these cases, families, already 
fragile from the absence of one parent, are forced to turn to welfare 
as the only reliable source of monetary support. In 1975, Congress 
created the Child Support Enforcement Program to help stop this 
disturbing pattern. The goal of that program was and still remains to 
reduce public welfare expenditures by forcing absent parents to provide 
child support as a regular and reliable source of income for their 
children. As part of this goal, the Federal Government provides 
incentive payments to encourage State child support agencies to enforce 
child support collections as efficiently and effectively as possible. 
Unfortunately, in the past several years, these incentives have become 
disincentives; handsomely rewarding even the most poorly performing 
States with the most dismal collection rates.
  Last year, the welfare reform bill took a positive step by 
commissioning a task force composed of child support experts from the 
Department of Health and Human Services and State child support 
agencies to come up with a new set of incentives that would put State 
agencies back on the road to efficient collections. The Child Support 
Performance Improvement Act of 1997 incorporates the consensus findings 
of this working group. For the first time, the new incentive structure 
takes into account, not just a State's cost effectiveness in collecting 
child support, but that State's overall success is establishing 
paternity and child support orders as well as collecting current and 
back child support.
  The bill also requires the Secretary of HHS to create and implement a 
sixth incentive: a medical support incentive. As we are all aware, 
health care is an essential part of any financial package provided for 
a child. For the first time, this bill requires the implementation of a 
medical incentive which will require States to seek medical and health 
coverage as part of the overall child support order. All children 
deserve comprehensive health coverage, and there is no reason it should 
be a public expenditure when a child's parent is perfectly able to pay 
for it.
  The Child Support Performance Improvement Act of 1997 also takes an 
important step in requiring States to pay families back first. The bill 
ensures that States will not be allowed to count toward incentive 
payments the collection of arrearages that are not first returned to 
former welfare families who need such payments to remain financially 
independent. While the overall incentive structure rewards the States 
for good performance, the families first provision keeps the States 
from receiving a double bonus--allowing them to keep arrearages to 
reimburse themselves and then getting an incentive payment for it.
  Finally, the bill adds tough but reasonable data requirements to make 
sure child support incentive payments are based on complete and 
reliable data from the States. States that do not have accurate data on 
their child support collections and on other aspects of child support 
enforcement should not be qualified to receive incentives. This 
provision will encourage States to make their collection systems even 
more efficient and, in turn, this will mean millions of additional 
dollars being directed to the children who need it.
  The Child Support Performance Improvement Act of 1997 is the first 
vital step in assuring that the States have the most efficient and 
effective ways possible of collecting child support from parents who 
have the responsibility to care for their children. Increasing child 
support collections will not only save Federal and State Governments 
and taxpayers billions of dollars each year in public expenditures, it 
will accomplish the most important goal of all: improving the financial 
stability and general well-being of thousands of American children.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being, no objection the bill was ordered to be printed in the 
Record, as follows:

                                S. 1293

       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 Performance 
     Improvement 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.
       ``(F) Subject to section 2(d)(2)(C) of the Child Support 
     Performance Improvement Act of 1997, the medical support 
     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) subject to subsection (e)(2), with respect to the 
     performance measures described

[[Page S10805]]

     in subparagraphs (A), (B), and (C) of paragraph (1), 0.49 
     percent of the State collections base for the fiscal year;
       ``(ii) subject to subsection (e)(2), 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; and
       ``(iii) with respect to the performance measure described 
     in subparagraph (F), such percentage of the State collections 
     base for the fiscal year as the Secretary by regulation may 
     determine in accordance with subsection (e)(2).
       ``(B) 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 
     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:

[[Page S10806]]

       

------------------------------------------------------------------------
   ``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.
------------------------------------------------------------------------

       ``(F) Medical support.--Subject to section 2(d)(2)(C) of 
     the Child Support Performance Improvement Act of 1997, the 
     medical support performance level for a State for a fiscal 
     year, and the applicable percentage for a State with respect 
     to such level, shall be determined in accordance with 
     regulations implementing the recommendations required to be 
     included in the report submitted under section 2(d)(2)(B) of 
     such Act.
       ``(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, as obtained in accordance 
     with section 452(a)(12). The Secretary shall make the 
     payments for the fiscal year, on a quarterly basis (with each 
     quarterly payment being made not 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.--
       ``(1) In general.--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, and 
     regulations excluding from the calculations of the current 
     payment performance level and the arrearage payment 
     performance level any case in which the State used State 
     funds to make such payments for the primary purpose of 
     increasing the State's performance levels in such areas.
       ``(2) Regulations implementing the medical support 
     performance level.--Subject to section 2(d)(2)(C) of the 
     Child Support Performance Improvement Act of 1997, the 
     Secretary shall prescribe regulations implementing the 
     recommendations required to be included in the report 
     submitted under section 2(d)(2)(B) of such Act. To the extent 
     necessary to ensure that the implementation of such 
     recommendations does not result in total Federal expenditures 
     under this section in excess of the amount of such 
     expenditures in the absence of such implementation, such 
     regulations may increase or decrease the percentages 
     specified in clauses (i) and (ii) of subsection (b)(2)(A).
       ``(f) Reinvestment.--
       ``(1) In general.--Until such time as the State qualifies 
     for the maximum incentive amount possible, as determined 
     under subsection (b)(2), payments under this section and 
     section 458 shall supplement, not supplant, State child 
     support expenditures under the State program under this part 
     to the extent that such expenditures were funded by the State 
     in fiscal year 1996.
       ``(2) Penalty.--Failure to satisfy the requirement of 
     paragraph (1) shall result in a proportionate reduction, 
     determined by the Secretary, of future payments to the State 
     under this section and section 458.''.
       (b) Payments During Transition Period.--Notwithstanding 
     section 458A of the Social Security Act (42 U.S.C. 658A), as 
     added by subsection (a), the amount of an incentive payment 
     for a State under such section shall not be--
       (1) in the case of fiscal year 2000, less than 80 percent 
     or greater than 120 percent of the incentive payment for the 
     State determined under section 458 of the Social Security Act 
     (42 U.S.C. 658) for fiscal year 1999 (as such section was in 
     effect for such fiscal year);
       (2) in the case of fiscal year 2001, less than 60 percent 
     or greater than 140 percent of the incentive payment for the 
     State (as so determined);
       (3) in the case of fiscal year 2002, less than 40 percent 
     or greater than 160 percent of the incentive payment for the 
     State (as so determined); and
       (4) in the case of fiscal year 2003, less than 20 percent 
     or greater than 180 percent of the incentive payment for the 
     State (as so determined).
       (c) Regulations.--Within 9 months after the date of 
     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 
     (in this subsection referred to as the ``Secretary'') 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 congress.--
       (i) Report on variations in state performance attributable 
     to demographic variables.--Not later than October 1, 2000, 
     the Secretary shall submit to 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 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 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, 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, such as child 
     advocacy organizations, shall develop a new medical support 
     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.

[[Page S10807]]

       (B) Report.--Not later than October 1, 1998, the Secretary 
     shall submit to the Committee on Ways and Means of the House 
     of Representatives and the Committee on Finance of the 
     Senate, a report that describes the performance measure and 
     contains the recommendations required under subparagraph (A).
       (C) Congressional disapproval required.--
       (i) In general.--The Secretary shall, by regulation, 
     implement the recommendations required to be included in the 
     report submitted under subparagraph (B) unless a joint 
     resolution is enacted, in accordance with subparagraph (D), 
     disapproving such recommendations before the end of the 1-
     year period that begins on the date on which the Secretary 
     submits such report.
       (ii) Exclusion of certain days.--For purposes of clause (i) 
     and subparagraph (D), the days on which either House of 
     Congress is not in session because of an adjournment of more 
     than 3 days to a day certain shall be excluded from the 
     computation of the period.
       (D) Congressional consideration.--
       (i) Terms of the resolution.--For purposes of subparagraph 
     (C)(i), the term ``joint resolution'' means only a joint 
     resolution that is introduced within the 1-year period 
     described in such subparagraph and--

       (I) that does not have a preamble;
       (II) the matter after the resolving clause of which is as 
     follows: ``That Congress disapproves the recommendations of 
     the Secretary of Health and Human Services regarding the 
     implementation of a medical support performance measure 
     submitted on __'', the blank space being filled in with the 
     appropriate date; and
       (III) the title of which is as follows: ``Joint resolution 
     disapproving the recommendations of the Secretary of Health 
     and Human Services regarding the implementation of a medical 
     support performance measure.''.

       (ii) Referral.--A resolution described in clause (i) that 
     is introduced--

       (I) in the House of Representatives, shall be referred to 
     the Committee on Ways and Means; and
       (II) in the Senate, shall be referred to the Committee on 
     Finance.

       (iii) Discharge.--If a committee to which a resolution 
     described in clause (i) is referred has not reported such 
     resolution by the end of the 20-day period beginning on the 
     date on which the Secretary submits the report required under 
     subparagraph (B), such committee shall be, at the end of such 
     period, discharged from further consideration of such 
     resolution, and such resolution shall be placed on the 
     appropriate calendar of the House involved.
       (iv) Consideration.--On or after the third day after the 
     date on which the committee to which a resolution described 
     in clause (i) has reported, or has been discharged from 
     further consideration of such resolution, such resolution 
     shall be considered in the same manner as a resolution is 
     considered under subsections (d), (e), and (f) of section 
     2908 of the Defense Base Closure and Realignment Act of 1990 
     (10 U.S.C. 2687 note).
       (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 subsection 
     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) Paragraphs (1) and (2) of section 458(f) (as so 
     redesignated) are each amended by striking ``and section 
     458''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 2003.
       (g) General Effective Date.--Except as otherwise provided 
     in this section, the amendments made by this section shall 
     take effect on October 1, 1999.

     SEC. 3. DATA INTEGRITY.

       (a) Duty of the Secretary To Ensure Reliable Data.--Section 
     452(a) of the Social Security Act (42 U.S.C. 652(a)) is 
     amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(12) ensure that data required for the operation of State 
     programs is complete and reliable by providing Federal 
     guidance, technical assistance, and monitoring.''.
       (b) Denying Incentive Payments When Federal Audits Find 
     That Claims Are Based on Incomplete or Unreliable Data.--
     Section 409(a)(8)(A) of the Social Security Act (42 U.S.C. 
     609(a)(8)(A)) is amended by striking the period and inserting 
     the following: ``, and, in addition to the reductions 
     specified in subparagraph (B), no State shall be eligible for 
     incentive payments pursuant to section 458 or 458A for any 
     fiscal year in which its claim is based on data found to be 
     incomplete or unreliable pursuant to an audit or audits 
     conducted under section 452(a)(4)(C).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1999.
                                 ______