I
105TH CONGRESS
2D SESSION
H. R. 3130
To provide for an alternative penalty procedure for States that fail to meet
Federal child support data processing requirements, to reform Federal
incentive payments for effective child support performance, and to provide
for a more flexible penalty procedure for States that violate interjurisdic-
tional adoption requirements.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 28, 1998
Mr. SHAW (for himself and Mr. LEVIN) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To provide for an alternative penalty procedure for States
that fail to meet Federal child support data processing
requirements, to reform Federal incentive payments for
effective child support performance, and to provide for
a more flexible penalty procedure for States that violate
interjurisdictional adoption requirements.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Child Support Per-
formance and Incentive Act of 1998’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—CHILD SUPPORT DATA PROCESSING REQUIREMENTS
Sec. 101. Alternative penalty procedure.
Sec. 102. Authority to waive single Statewide automated data processing and
information retrieval system requirement.
TITLE II—CHILD SUPPORT INCENTIVE SYSTEM
Sec. 201. Incentive payments to States.
TITLE III—ADOPTION PROVISIONS
Sec. 301. More flexible penalty procedure to be applied for failing to permit
interjurisdictional adoption.
Sec. 302. Technical corrections.
TITLE I—CHILD SUPPORT DATA
PROCESSING REQUIREMENTS
SEC. 101. ALTERNATIVE PENALTY PROCEDURE.
(a) IN GENERAL.—Section 455(a) of the Social Secu-
rity Act (42 U.S.C. 655(a)) is amended by adding at the
end the following:
‘‘(4)(A) If—
‘‘(i) the Secretary determines that a State plan
under section 454 would (in the absence of this
paragraph) be disapproved for the failure of the
State comply with section 454(24)(A), and that the
State has made and is continuing to make a good
faith effort to so comply; and
‘‘(ii) the State has submitted to the Secretary
a corrective compliance plan that describes how the
State will achieve such compliance, which has been
approved by the Secretary,
then the Secretary shall not disapprove the State plan
under section 454, and the Secretary shall reduce the
amount otherwise payable to the State under paragraph
(1)(A) of this subsection for the fiscal year by the penalty
amount.
‘‘(B) In this paragraph:
‘‘(i) The term ‘penalty amount’ means, with re-
spect to a failure of a State to comply with section
454(24)—
‘‘(I) 4 percent of the penalty base, in the
case of the 1st fiscal year in which such a fail-
ure by the State occurs;
‘‘(II) 8 percent of the penalty base, in the
case of the 2nd such fiscal year;
‘‘(III) 16 percent of the penalty base, in
the case of the 3rd such fiscal year; or
‘‘(IV) 20 percent of the penalty base, in
the case of the 4th or any subsequent such fis-
cal year.
‘‘(ii) The term ‘penalty base’ means, with re-
spect to a failure of a State to comply with section
454(24) during a fiscal year, the amount otherwise
454(24)(B) during the fiscal year, by an amount equal
to 20 percent of the amount of the otherwise required re-
duction, for each State performance measure described in
section 458A(b)(4) with respect to which the applicable
percentage under section 458A(b)(6) for the fiscal year
is 100 percent, if the Secretary has made the determina-
tion described in section 458A(b)(5)(B) with respect to the
State for the fiscal year.
‘‘(D) The preceding provisions of this paragraph (ex-
cept for subparagraph (C)(i)) shall apply, separately and
independently, to a failure to comply with section
454(24)(B) in the same manner in which the preceding
provisions apply to a failure to comply with section
454(24)(A).’’.
(b) INAPPLICABILITY OF PENALTY UNDER TANF
PROGRAM.—Section 409(a)(8)(A)(i)(III) of such Act (42
U.S.C. 609(a)(8)(A)(i)(III)) is amended by inserting
‘‘(other than section 454(24))’’ before the semicolon.
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
Security Act (42 U.S.C. 652(d)(3)) is amended to read
as follows:
‘‘(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 alternative 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 sec-
tion 457 and accounts for distributions to
children 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 for all inter-
state 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 com-
plete 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 submit-
ted to the Secretary separate estimates of the total
cost of a single statewide system that meets such re-
quirement, and of any such alternative system or
systems, which shall include estimates of the cost of
developing and completing the system and of operat-
ing 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 grant-
ed 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 sub-
paragraph does not exceed the least total cost esti-
mate 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
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 pay-
ment under this part, the Secretary shall, subject to sub-
section (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
payment 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) $439,000,000 for fiscal year
2000;
‘‘(ii) $446,000,000 for fiscal year
2001;
‘‘(iii) $468,000,000 for fiscal year
2002;
‘‘(iv) $479,000,000 for fiscal year
2003;
‘‘(v) $473,000,000 for fiscal year
2004;
‘‘(vi) $465,000,000 for fiscal year
2005;
‘‘(vii) $478,000,000 for fiscal year
2006;
‘‘(viii) $490,000,000 for fiscal year
2007; and
‘‘(ix) for any succeeding fiscal year,
the amount of the incentive payment pool
for the fiscal year that precedes such suc-
ceeding fiscal year, multiplied by the per-
centage (if any) by which the CPI for such
preceding fiscal year exceeds the CPI for
the 2nd preceding 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
‘Consumer Price Index’ means the last Con-
sumer Price Index for all-urban consumers pub-
lished by the Department of Labor.
‘‘(3) STATE INCENTIVE PAYMENT SHARE.—In
paragraph (1), the term ‘State incentive payment
share’ means, with respect to a fiscal year—
‘‘(A) the incentive base amount for the
State for the fiscal year; divided by
‘‘(B) the sum of the incentive base
amounts for all of the States for the fiscal year.
‘‘(4) INCENTIVE BASE AMOUNT.—In paragraph
(3), the term ‘incentive base amount’ means, with
respect to a State and a fiscal year, the sum of the
applicable percentages (determined in accordance
with paragraph (6)) multiplied by the corresponding
maximum incentive base amounts 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 perform-
ance 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.
‘‘(5) MAXIMUM INCENTIVE BASE AMOUNT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (4), the maximum incentive base 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 (4), the State
collections base for the fiscal year; and
‘‘(ii) with respect to the performance
measures described in subparagraphs (D)
and (E) of paragraph (4), 75 percent of
the State collections base for the fiscal
year.
‘‘(B) DATA REQUIRED TO BE COMPLETE
AND
RELIABLE.—Notwithstanding 
subpara-
graph (A), the maximum incentive base amount
for a State for a fiscal year with respect to a
performance measure described in paragraph
(4) 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 collec-
tions 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 ob-
ligation involved is required to be as-
signed 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 ob-
ligation involved was so assigned but,
at the time of collection, is not re-
quired to be so assigned; and
‘‘(ii) the total amount of support col-
lected during the fiscal year under the
State plan approved under this part in all
other cases.
‘‘(6) DETERMINATION
OF
APPLICABLE
PER-
CENTAGES 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 es-
tablishment percentage determined under
section 452(g)(2)(A) or the statewide pa-
ternity establishment percentage deter-
mined under section 452(g)(2)(B).
‘‘(ii) DETERMINATION OF APPLICABLE
PERCENTAGE.—The applicable percentage
with respect to a State’s paternity estab-
lishment performance level is as follows:
‘‘If the paternity establishment performance level is:
The applicable
percentage is:
At least:
But less than:
80% ......................................
..............................................
100
79% ......................................
80% ......................................
78% ......................................
79% ......................................
77% ......................................
78% ......................................
76% ......................................
77% ......................................
75% ......................................
76% ......................................
74% ......................................
75% ......................................
73% ......................................
74% ......................................
72% ......................................
73% ......................................
71% ......................................
72% ......................................
70% ......................................
71% ......................................
69% ......................................
70% ......................................
‘‘If the paternity establishment performance level is:
The applicable
percentage is:
At least:
But less than:
68% ......................................
69% ......................................
67% ......................................
68% ......................................
66% ......................................
67% ......................................
65% ......................................
66% ......................................
64% ......................................
65% ......................................
63% ......................................
64% ......................................
62% ......................................
63% ......................................
61% ......................................
62% ......................................
60% ......................................
61% ......................................
59% ......................................
60% ......................................
58% ......................................
59% ......................................
57% ......................................
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56% ......................................
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55% ......................................
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53% ......................................
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52% ......................................
53% ......................................
51% ......................................
52% ......................................
50% ......................................
51% ......................................
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 establish-
ment performance level of the State for the
immediately preceding fiscal year, then the
applicable percentage with respect to the
State’s paternity establishment perform-
ance level is 50 percent.
‘‘(B) ESTABLISHMENT OF CHILD SUPPORT
ORDERS.—
‘‘(i) DETERMINATION
OF
SUPPORT
ORDER PERFORMANCE LEVEL.—The sup-
port 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 per-
formance level is as follows:
‘‘If the support order performance level is:
The applicable
percentage is:
At least:
But less than:
80% ......................................
..............................................
100
79% ......................................
80% ......................................
78% ......................................
79% ......................................
77% ......................................
78% ......................................
76% ......................................
77% ......................................
75% ......................................
76% ......................................
74% ......................................
75% ......................................
73% ......................................
74% ......................................
72% ......................................
73% ......................................
71% ......................................
72% ......................................
70% ......................................
71% ......................................
69% ......................................
70% ......................................
68% ......................................
69% ......................................
67% ......................................
68% ......................................
66% ......................................
67% ......................................
65% ......................................
66% ......................................
64% ......................................
65% ......................................
63% ......................................
64% ......................................
62% ......................................
63% ......................................
61% ......................................
62% ......................................
60% ......................................
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59% ......................................
60% ......................................
58% ......................................
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57% ......................................
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56% ......................................
57% ......................................
55% ......................................
56% ......................................
54% ......................................
55% ......................................
53% ......................................
54% ......................................
52% ......................................
53% ......................................
51% ......................................
52% ......................................
50% ......................................
51% ......................................
‘‘If the support order performance level is:
The applicable
percentage is:
At least:
But less than:
0% ........................................
50% ......................................
0.
Notwithstanding the preceding sentence, if
the support order performance level of a
State for a fiscal year is less than 50 per-
cent 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 ap-
proved 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
percentage is:
At least:
But less than:
80% ......................................
..............................................
100
79% ......................................
80% ......................................
78% ......................................
79% ......................................
77% ......................................
78% ......................................
76% ......................................
77% ......................................
75% ......................................
76% ......................................
74% ......................................
75% ......................................
73% ......................................
74% ......................................
72% ......................................
73% ......................................
71% ......................................
72% ......................................
70% ......................................
71% ......................................
69% ......................................
70% ......................................
68% ......................................
69% ......................................
67% ......................................
68% ......................................
66% ......................................
67% ......................................
65% ......................................
66% ......................................
64% ......................................
65% ......................................
63% ......................................
64% ......................................
62% ......................................
63% ......................................
61% ......................................
62% ......................................
60% ......................................
61% ......................................
59% ......................................
60% ......................................
58% ......................................
59% ......................................
57% ......................................
58% ......................................
56% ......................................
57% ......................................
55% ......................................
56% ......................................
54% ......................................
55% ......................................
53% ......................................
54% ......................................
52% ......................................
53% ......................................
51% ......................................
52% ......................................
50% ......................................
51% ......................................
49% ......................................
50% ......................................
48% ......................................
49% ......................................
47% ......................................
48% ......................................
46% ......................................
47% ......................................
45% ......................................
46% ......................................
44% ......................................
45% ......................................
43% ......................................
44% ......................................
42% ......................................
43% ......................................
41% ......................................
42% ......................................
40% ......................................
41% ......................................
0% ........................................
40% ......................................
0.
Notwithstanding the preceding sentence, if
the current payment performance level of a