Union Calendar No. 152
105TH CONGRESS
1ST SESSION
H. R. 2487
[Report No. 105–272]
A BILL
To improve the effectiveness and efficiency of the
child support enforcement program and thereby
increase the financial stability of single parent
families including those attempting to leave wel-
fare.
SEPTEMBER 26, 1997
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 152
105TH CONGRESS
1ST SESSION
H. R. 2487
[Report No. 105–272]
To improve the effectiveness and efficiency of the child support enforcement
program and thereby increase the financial stability of single parent
families including those attempting to leave welfare.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 17, 1997
Mr. SHAW (for himself and Mr. LEVIN) introduced the following bill; which
was referred to the Committee on Ways and Means
SEPTEMBER 26, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on September 17, 1997]
A BILL
To improve the effectiveness and efficiency of the child sup-
port enforcement program and thereby increase the fi-
nancial stability of single parent families including those
attempting to leave welfare.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
‘‘(D) The arrearage payment performance
level.
‘‘(E) 
The 
cost-effectiveness 
performance
level.
‘‘(2) MAXIMUM INCENTIVE AMOUNT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (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 maxi-
mum incentive amount for a State for a fiscal
year with respect to a performance measure de-
scribed in paragraph (1) is zero, unless the Sec-
retary determines, on the basis of an audit per-
formed under section 452(a)(4)(C)(i), that the
data which the State submitted pursuant to sec-
tion 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 pur-
poses 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 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 required
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.
‘‘(3) DETERMINATION OF APPLICABLE PERCENT-
AGES 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 pater-
nity establishment percentage determined
under section 452(g)(2)(B).
‘‘(ii) DETERMINATION OF APPLICABLE
PERCENTAGE.—The applicable percentage
with respect to a State’s paternity establish-
ment performance level is as follows:
‘‘If the paternity establishment performance level is:
The applica-
ble 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 applica-
ble 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% ..........................................
58% ..........................................
56% ..........................................
57% ..........................................
55% ..........................................
56% ..........................................
54% ..........................................
55% ..........................................
53% ..........................................
54% ..........................................
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 per-
centage points the paternity establishment
performance level of the State for the imme-
diately preceding fiscal year, then the ap-
plicable 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 fis-
cal year is the percentage of the total num-
ber 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 applica-
ble 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% ..........................................
‘‘If the support order performance level is:
The applica-
ble 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 cur-
rent 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 applica-
ble 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
State for a fiscal year is less than 40 per-
cent but exceeds by at least 5 percentage
points the current payment performance
level of the State for the immediately pre-
ceding fiscal year, then the applicable per-
centage with respect to the State’s current
payment performance level is 50 percent.
‘‘(D) COLLECTIONS ON CHILD SUPPORT AR-
REARAGES.—
‘‘(i) DETERMINATION
OF
ARREARAGE
PAYMENT
PERFORMANCE
LEVEL.—The ar-
rearage payment performance level for a
State for a fiscal year is equal to the total
number of cases under the State plan ap-
proved under this part in which payments
of past-due child support were received dur-
ing 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 applica-
ble 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% ..........................................
‘‘If the arrearage payment performance level is:
The applica-
ble percentage
is:
At least:
But less than:
41% ..........................................
42% ..........................................
40% ..........................................
41% ..........................................
0% ............................................
40% ..........................................
0.
Notwithstanding the preceding sentence, if
the arrearage payment performance level of
a State for a fiscal year is less than 40 per-
cent but exceeds by at least 5 percentage
points the arrearage payment performance
level of the State for the immediately pre-
ceding fiscal year, then the applicable per-
centage with respect to the State’s arrearage
payment performance level is 50 percent.
‘‘(E) COST-EFFECTIVENESS.—
‘‘(i) DETERMINATION OF COST-EFFEC-
TIVENESS 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 applica-
ble percentage
is:
At least:
But less than:
5.00 ...........................................
...................................................
100
4.50 ...........................................
4.99 ..........................................
4.00 ...........................................
4.50 ..........................................
3.50 ...........................................
4.00 ..........................................
3.00 ...........................................
3.50 ..........................................
2.50 ...........................................
3.00 ..........................................
2.00 ...........................................
2.50 ..........................................
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 begin-
ning 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 esti-
mate 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 calcula-
tion of incentive payments under this section, including di-
rections for excluding from the calculations certain closed
cases and cases over which the States do not have jurisdic-
tion.
‘‘(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 Sec-
retary, whether or not the expenditures for which are
eligible for reimbursement under this part, which
may contribute to improving the effectiveness or effi-
ciency 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 re-
duce 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 re-
duce 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 PAY-
MENT 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 Secu-
rity Act, in order to identify the problems and
successes of the system.