SEC. 102. AUTHORITY TO WAIVE SINGLE STATEWIDE AUTO-
MATED DATA PROCESSING AND INFORMA-
TION RETRIEVAL SYSTEM REQUIREMENT.
(a) IN GENERAL.—Section 452(d)(3) of the Social Se-
curity Act (42 U.S.C. 652(d)(3)) is amended to read as fol-
lows:
‘‘(3) The Secretary may waive any requirement of
paragraph (1) or any condition specified under section
454(16), and shall waive the single statewide system re-
quirement under sections 454(16) and 454A, with respect
to a State if—
‘‘(A) the State demonstrates to the satisfaction of
the Secretary that the State has or can develop an al-
ternative system or systems that enable the State—
‘‘(i) for purposes of section 409(a)(8), to
achieve the paternity establishment percentages
(as defined in section 452(g)(2)) and other per-
formance measures that may be established by
the Secretary;
‘‘(ii) 
to 
submit 
data 
under 
section
454(15)(B) that is complete and reliable;
‘‘(iii) to substantially comply with the re-
quirements of this part; and
‘‘(iv) in the case of a request to waive the
single statewide system requirement, to—
‘‘(I) meet all functional requirements
of sections 454(16) and 454A;
‘‘(II) ensure that calculation of dis-
tributions meets the requirements of section
457 and accounts for distributions to chil-
dren in different families or in different
States or sub-State jurisdictions, and for
distributions to other States;
‘‘(III) ensure that there is only 1 point
of contact in the State which provides seam-
less case processing for all interstate case
processing 
and 
coordinated, 
automated
intrastate case management;
‘‘(IV) ensure that standardized data
elements, forms, and definitions are used
throughout the State;
‘‘(V) complete the alternative system in
no more time than it would take to complete
a single statewide system that meets such
requirement; and
‘‘(VI) process child support cases as
quickly, efficiently, and effectively as such
cases would be processed through a single
statewide system that meets such require-
ment;
‘‘(B)(i) the waiver meets the criteria of para-
graphs (1), (2), and (3) of section 1115(c); or
‘‘(ii) the State provides assurances to the Sec-
retary that steps will be taken to otherwise improve
the State’s child support enforcement program; and
‘‘(C) in the case of a request to waive the single
statewide system requirement, the State has submitted
to the Secretary separate estimates of the total cost of
a single statewide system that meets such require-
ment, and of any such alternative system or systems,
which shall include estimates of the cost of developing
and completing the system and of operating and
maintaining the system for 5 years, and the Secretary
has agreed with the estimates.’’.
(b) PAYMENTS TO STATES.—Section 455(a)(1) of such
Act (42 U.S.C. 655(a)(1)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the semicolon at the end of sub-
paragraph (C) and inserting ‘‘, and’’; and
(3) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) equal to 66 percent of the sums expended
by the State during the quarter for an alternative
statewide system for which a waiver has been granted
under section 452(d)(3), but only to the extent that
the total of the sums so expended by the State on or
after the date of the enactment of this subparagraph
does not exceed the least total cost estimate submitted
by the State pursuant to section 452(d)(3)(C) in the
request for the waiver;’’.
TITLE II—CHILD SUPPORT
INCENTIVE SYSTEM
SEC. 201. INCENTIVE PAYMENTS TO STATES.
(a) IN GENERAL.—Part D of title IV of the Social Se-
curity 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 incentive pay-
ment pool for the fiscal year, multiplied by the State
incentive payment share for the fiscal year.
‘‘(2) INCENTIVE PAYMENT POOL.—
‘‘(A) IN GENERAL.—In paragraph (1), the
term ‘incentive payment pool’ means—
‘‘(i) $422,000,000 for fiscal year 2000;
‘‘(ii) $429,000,000 for fiscal year 2001;
‘‘(iii) $450,000,000 for fiscal year
2002;
‘‘(iv) $461,000,000 for fiscal year 2003;
‘‘(v) $454,000,000 for fiscal year 2004;
‘‘(vi) $446,000,000 for fiscal year 2005;
‘‘(vii) $458,000,000 for fiscal year
2006;
‘‘(viii) $471,000,000 for fiscal year
2007;
‘‘(ix) $483,000,000 for fiscal year
2008; and
‘‘(x) for any succeeding fiscal year, the
amount of the incentive payment pool for
the fiscal year that precedes such succeeding
fiscal year, multiplied by the percentage (if
any) by which the CPI for such preceding
fiscal year exceeds the CPI for the 2nd pre-
ceding fiscal year.
‘‘(B) CPI.—For purposes of subparagraph
(A), the CPI for a fiscal year is the average of
the Consumer Price Index for the 12-month pe-
riod ending on September 30 of the fiscal year.
As used in the preceding sentence, the term ‘Con-