‘‘If the paternity establishment perform-
ance level is:
The applica-
ble percentage
is:
At least:
But less than:
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% ............................
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% ............................
41% ............................
42% ............................
40% ............................
41% ............................
‘‘If the arrearage payment performance
level is:
The applica-
ble percentage
is:
At least:
But less than:
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 to supplement, and not supplant, other funds used
by the State—
‘‘(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 the activ-
ity are eligible for reimbursement under this part,
which may contribute to improving the effectiveness
or efficiency 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 of the Social Security Act, and
shall reduce by 2⁄3 the amount otherwise payable to a
State under section 458A of such Act; and
(2) for fiscal year 2001, the Secretary shall re-
duce by 2⁄3 the amount otherwise payable to a State
under section 458 of the Social Security Act, and
shall reduce by 1⁄3 the amount otherwise payable to a
State under section 458A of such Act.
(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.
(B) REPORTS TO THE CONGRESS.—
(i) REPORT ON VARIATIONS IN STATE
PERFORMANCE
ATTRIBUTABLE
TO
DEMO-
GRAPHIC VARIABLES.—Not later than Octo-
ber 1, 2000, the Secretary shall submit to
the Congress a report that identifies any de-
mographic or economic variables that ac-
count for differences in the performance lev-
els 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 rel-
ative 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 the Congress an interim report that con-
tains the findings of the study required by
subparagraph (A).
(iii) FINAL REPORT.—Not later than
October 1, 2003, the Secretary shall submit
to the 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 INCEN-
TIVE.—
(A) IN GENERAL.—The Secretary of Health
and Human Services, in consultation with State
directors of programs operated under part D of
title IV of the Social Security Act and represent-
atives of children potentially eligible for medical
support, shall develop a performance measure
based on the effectiveness of States in establish-
ing and enforcing medical support obligations,
and shall make recommendations for the incorpo-
ration of the measure, in a revenue neutral man-
ner, into the incentive payment system estab-
lished by section 458A of the Social Security Act.
(B) REPORT.—Not later than October 1,
1999, the Secretary shall submit to the Congress
a report that describes the performance measure
and contains the recommendations required by
subparagraph (A).
(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 redesig-
nating 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 in-
serting 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 section shall take effect as if included in the
enactment of section 341 of the Personal Responsibil-
ity and Work Opportunity Reconciliation Act of
1996.
(f) ELIMINATION OF PREDECESSOR INCENTIVE PAY-
MENT 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,
as added by section 201(a) of this Act, is redesig-
nated as section 458.
(B) Section 455(a)(4)(C)(iii) of such Act
(42 U.S.C. 655(a)(4)(C)(iii)), as added by sec-
tion 101 of this Act, is amended—
(i) by striking ‘‘458A(b)(4)’’ and in-
serting ‘‘458(b)(4)’’;
(ii) by striking ‘‘458A(b)(6)’’ and in-
serting ‘‘458(b)(6)’’; and
(iii) by striking ‘‘458A(b)(5)(B)’’ and
inserting ‘‘458(b)(5)(B)’’.
(C) Subsection (d)(1) of this section is
amended by striking ‘‘458A’’ and inserting
‘‘458’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on October 1, 2001.
(g) GENERAL EFFECTIVE DATE.—Except as otherwise
provided in this section, the amendments made by this sec-
tion shall take effect on October 1, 1999.