[Congressional Record Volume 147, Number 70 (Monday, May 21, 2001)]
[Senate]
[Pages S5271-S5273]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KOHL (for himself, Ms. Snowe, Mr. Bayh, Mr. Graham, Mr. 
        Johnson, Mr. Lieberman, Mr. Rockefeller, Mr. Breaux, and Mrs. 
        Lincoln):
  S. 916. A bill to provide more child support money to families 
leaving welfare, and for other purposes; to the Committee on Finance.
  Mr. KOHL. Mr. President, I rise today to introduce the Children First 
Child Support Reform Act of 2001, and I want to thank Senators Snowe, 
Bayh, Graham, Johnson, Lieberman, Rockefeller, Breaux and Lincoln for 
cosponsoring. I am also pleased to cosponsor Senator Snowe's Child 
Support Distribution Act of 2001, which includes the ``Children First'' 
component as well as other provisions to improve child support 
collections and enforcement. I applaud Senator Snowe for her continued 
leadership on this important issue.
  The ``Children First'' bill takes significant steps toward ensuring 
that children receive the child support money they are owed and 
deserve. In Fiscal Year 1999, the public child support system collected 
child support payments for only 37 percent of its caseload, up from 23 
percent in 1998. Obviously, we still need to improve, but States are 
making real progress. It's time for Congress to take the next step and 
help States overcome a major obstacle to collecting child support for 
families.
  There are many reasons why non-custodial parents may not be paying 
support for their children. Some are not able to pay because they don't 
have jobs or have fallen on hard times. Others may not pay because they 
are unfairly prevented from spending time with their children.
  But other fathers don't pay because the public system actually 
discourages them from paying. Under current law, over $2 billion in 
child support is retained every year by the State and Federal 
governments as repayment for welfare benefits, rather than delivered to 
the children to whom it is owed. Since the money doesn't benefit their 
kids, fathers are discouraged from paying support. And mothers have no 
incentive to push for payment since the support doesn't go to them.
  It's time for Congress to change this system and encourage States to 
distribute more child support to families. My home State of Wisconsin 
has already been doing this for several years and is seeing great 
results. In 1997, I worked with my State to institute an innovative 
program of passing through child support payments directly to families. 
A recent evaluation of the Wisconsin program clearly shows that when 
child support payments are delivered to families, non-custodial parents 
are more apt to pay, and to pay more. In addition, Wisconsin has found 
that, overall, this policy does not increase government costs. That 
makes sense because ``passing through'' support payments to families 
means they have more of their own resources, and are less apt to depend 
on public help to meet other needs such as food, transportation or 
child care.
  We now have a key opportunity to encourage all States to follow 
Wisconsin's example. This legislation gives States options and strong 
incentives to send more child support directly to families who are 
working their way off, or are already off, public assistance. Not only 
will this create the right incentives for non-custodial parents to pay, 
but it will also simplify the job for States, who currently face an 
administrative nightmare in following the complicated rules of the 
current system.

  We know that creating the right incentives for non-custodial parents 
to pay support and increasing collections has long-term benefits. 
People who can count on child support are more likely to stay in jobs 
and stay off public assistance.
  This legislation finally brings the Child Support Enforcement program 
into the post-welfare reform era, shifting its focus from recovering 
welfare costs to increasing child support to families so they can 
sustain work and maintain self-sufficiency. After all, it's only fair 
that if we are asking parents to move off welfare and take financial 
responsibility for their families, then we in Congress must make sure 
that child support payments actually go to the families to whom they 
are owed and who are working so hard to succeed.
  Last year, a House version of this bill passed by an overwhelming 
bipartisan vote of 405 to 18, and a similar version has been 
reintroduced this year. My legislation has also been included in 
Senator Snowe's Child Support Distribution Act, and the bipartisan 
``Strengthening Working Families Act, both of which I am proud to be an 
original cosponsor.
  I was also greatly encouraged by the statements made by Secretary 
Thompson at the Labor, Health and Human Services, Education and Related 
Agencies Appropriations hearing on April 25, 2001, in which the 
Secretary spoke about the success of Wisconsin's program and expressed 
his support for this approach. I am hopeful that the Administration 
will be able to fully support this legislation, as I believe it is 
consistent with the President's goal of making sure that families, not 
the government, keep more of the money they earn and deserve.
  We must keep this bipartisan momentum going in this Congress. It's 
time that we finally make child support meaningful for families, and 
make sure that children get the support they need and deserve.

[[Page S5272]]

  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. 916

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Children 
     First Child Support Reform Act of 2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Modification of rule requiring assignment of support rights as 
              a condition of receiving TANF.
Sec. 3. Increasing child support payments to families and simplifying 
              child support distribution rules.
Sec. 4. State option to discontinue certain support assignments.
Sec. 5. Effective date.

     SEC. 2. MODIFICATION OF RULE REQUIRING ASSIGNMENT OF SUPPORT 
                   RIGHTS AS A CONDITION OF RECEIVING TANF.

       Section 408(a)(3) of the Social Security Act (42 U.S.C. 
     608(a)(3)) is amended to read as follows:
       ``(3) No assistance for families not assigning certain 
     support rights to the state.--A State to which a grant is 
     made under section 403 shall require, as a condition of 
     paying assistance to a family under the State program funded 
     under this part, that a member of the family assign to the 
     State any rights the family member may have (on behalf of the 
     family member or of any other person for whom the family 
     member has applied for or is receiving such assistance) to 
     support from any other person, not exceeding the total amount 
     of assistance so paid to the family, which accrues during the 
     period that the family receives assistance under the 
     program.''.

     SEC. 3. INCREASING CHILD SUPPORT PAYMENTS TO FAMILIES AND 
                   SIMPLIFYING CHILD SUPPORT DISTRIBUTION RULES.

       (a) Distribution Rules.--
       (1) In general.--Section 457(a) of the Social Security Act 
     (42 U.S.C. 657(a)) is amended to read as follows:
       ``(a) In General.--Subject to subsections (e) and (f), the 
     amounts collected on behalf of a family as support by a State 
     under a plan approved under this part shall be distributed as 
     follows:
       ``(1) Families receiving assistance.--In the case of a 
     family receiving assistance from the State, the State shall--
       ``(A) pay to the Federal Government the Federal share of 
     the amount collected, subject to paragraph (3)(A);
       ``(B) retain, or pay to the family, the State share of the 
     amount collected, subject to paragraph (3)(B); and
       ``(C) pay to the family any remaining amount.
       ``(2) Families that formerly received assistance.--In the 
     case of a family that formerly received assistance from the 
     State:
       ``(A) Current support.--To the extent that the amount 
     collected does not exceed the current support amount, the 
     State shall pay the amount to the family.
       ``(B) Arrearages.--Except as otherwise provided in the 
     State plan approved under section 454, to the extent that the 
     amount collected exceeds the current support amount, the 
     State--
       ``(i) shall first pay to the family the excess amount, to 
     the extent necessary to satisfy support arrearages not 
     assigned under section 408(a)(3);
       ``(ii) if the amount collected exceeds the amount required 
     to be paid to the family under clause (i), shall--

       ``(I) pay to the Federal Government, the Federal share of 
     the excess amount described in this clause, subject to 
     paragraph (3)(A); and
       ``(II) retain, or pay to the family, the State share of the 
     excess amount described in this clause, subject to paragraph 
     (3)(B); and

       ``(iii) shall pay to the family any remaining amount.
       ``(3) Limitations.--
       ``(A) Federal reimbursements.--The total of the amounts 
     paid by the State to the Federal Government under paragraphs 
     (1) and (2) with respect to a family shall not exceed the 
     Federal share of the amount assigned with respect to the 
     family under section 408(a)(3).
       ``(B) State reimbursements.--The total of the amounts 
     retained by the State under paragraphs (1) and (2) with 
     respect to a family shall not exceed the State share of the 
     amount assigned with respect to the family under section 
     408(a)(3).
       ``(4) Families that never received assistance.--In the case 
     of any other family, the State shall pay the amount collected 
     to the family.
       ``(5) Families under certain agreements.--Notwithstanding 
     paragraphs (1) through (4), in the case of an amount 
     collected for a family in accordance with a cooperative 
     agreement under section 454(33), the State shall distribute 
     the amount collected under the terms of the agreement.
       ``(6) State financing options.--To the extent that the 
     State share of the amount payable to a family under paragraph 
     (2)(B) exceeds the amount that the State estimates (under 
     procedures approved by the Secretary) would have been payable 
     to the family under former section 457(a)(2)(B) (as in effect 
     for the State immediately before the date on which this 
     subsection, as amended by the Children First Child Support 
     Reform Act of 2001, first applies to the State) if such 
     former section had remained in effect, the State may elect to 
     use the grant made to the State under section 403(a) to pay 
     the amount, or to have the payment considered a qualified 
     State expenditure for purposes of section 409(a)(7), but not 
     both.
       ``(7) State option to pass through additional support with 
     federal financial participation.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     a State shall not be required to pay to the Federal 
     Government the Federal share of an amount collected on behalf 
     of a family that is not a recipient of assistance under the 
     State program funded under part A, to the extent that the 
     State pays the amount to the family.
       ``(B) Recipients of tanf for less than 5 years.--
       ``(i) In general.--Notwithstanding paragraphs (1) and (2), 
     a State shall not be required to pay to the Federal 
     Government the Federal share of an amount collected on behalf 
     of a family that is a recipient of assistance under the State 
     program funded under part A and, if the family includes an 
     adult, that has received the assistance for not more than 5 
     years after the date of enactment of this paragraph, to the 
     extent that--

       ``(I) the State pays the amount to the family; and
       ``(II) subject to clause (ii), the amount is disregarded in 
     determining the amount and type of the assistance provided to 
     the family.

       ``(ii) Limitation.--Of the amount disregarded as described 
     in clause (i)(II), the maximum amount that may be taken into 
     account for purposes of clause (i) shall not exceed $400 per 
     month, except that, in the case of a family that includes 2 
     or more children, the State may elect to increase the maximum 
     amount to not more than $600 per month.
       ``(8) States with demonstration waivers.--Notwithstanding 
     the preceding paragraphs, a State with a waiver under section 
     1115 that became effective on or before October 1, 1997, the 
     terms of which allow passthrough of child support payments, 
     may pass through such payments in accordance with such terms 
     with respect to families subject to the waiver.''.
       (2) State plan to include election as to which rules to 
     apply in distributing child support arrearages collected on 
     behalf of families formerly receiving assistance.--Section 
     454 of the Social Security Act (42 U.S.C. 654) is amended--
       (A) by striking ``and'' at the end of paragraph (32);
       (B) by striking the period at the end of paragraph (33) and 
     inserting ``; and''; and
       (C) by inserting after paragraph (33) the following:
       ``(34) include an election by the State to apply section 
     457(a)(2)(B) or former section 457(a)(2)(B) (as in effect for 
     the State immediately before the date this paragraph, as 
     amended by the Children First Child Support Reform Act of 
     2001, first applies to the State) to the distribution of the 
     amounts which are the subject of such sections, and for so 
     long as the State elects to so apply such former section, the 
     amendments made by section 2 of the Children First Child 
     Support Reform Act of 2001 shall not apply with respect to 
     the State, notwithstanding section 6(a) of such Act.''.
       (3) Approval of estimation procedures.--Not later than 
     October 1, 2002, the Secretary of Health and Human Services, 
     in consultation with the States (as defined for purposes of 
     part D of title IV of the Social Security Act (42 U.S.C. 651 
     et seq.)), shall establish the procedures to be used to make 
     the estimate described in section 457(a)(6) of such Act (42 
     U.S.C. 657(a)(6)).
       (b) Current Support Amount Defined.--Section 457(c) of the 
     Social Security Act (42 U.S.C. 657(c)) is amended by adding 
     at the end the following:
       ``(5) Current support amount.--The term `current support 
     amount' means, with respect to amounts collected as support 
     on behalf of a family, the amount designated as the monthly 
     support obligation of the noncustodial parent in the order 
     requiring the support.''.
       (c) Conforming Amendments.--
       (1) Section 404(a) of the Social Security Act (42 U.S.C. 
     604(a)) is amended--
       (A) by striking ``or'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(3) to fund payment of an amount under section 
     457(a)(2)(B), but only to the extent that the State properly 
     elects under section 457(a)(6) to use the grant to fund the 
     payment.''.
       (2) Section 409(a)(7)(B)(i) of the Social Security Act (42 
     U.S.C. 609(a)(7)(B)(i)) is amended--
       (A) in subclause (I)(aa), by striking ``457(a)(1)(B)'' and 
     inserting ``457(a)(1)''; and
       (B) by adding at the end the following:

       ``(V) Portions of certain child support payments collected 
     on behalf of and distributed to families no longer receiving 
     assistance.--Any amount paid by a State under section 
     457(a)(2)(B), but only to the extent that the State properly 
     elects under section 457(a)(6) to have the payment considered 
     a qualified State expenditure.''.

[[Page S5273]]

     SEC. 4. STATE OPTION TO DISCONTINUE CERTAIN SUPPORT 
                   ASSIGNMENTS.

       Section 457(b) of the Social Security Act (42 U.S.C. 
     657(b)) is amended by striking ``shall'' and inserting 
     ``may''.

     SEC. 5. EFFECTIVE DATE.

       (a) In General.--The amendments made by this section shall 
     take effect on October 1, 2005, and shall apply to payments 
     under parts A and D of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq. and 651 et seq.) for calendar quarters 
     beginning on or after such date, and without regard to 
     whether regulations to implement the amendments (in the case 
     of State programs operated under such part D) are promulgated 
     by such date.
       (b) State Option To Accelerate Effective Date.--In 
     addition, a State may elect to have the amendments made by 
     section 2 or 3 apply to the State and to amounts collected by 
     the State, on and after such date as the State may select 
     that is after the date of enactment of this Act, by including 
     an election to that effect in the State plan under part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.).
                                 ______