H. R. 3130
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-eight
An Act
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, to provide for a more flexible penalty
procedure for States that violate interjurisdictional adoption requirements, and
for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Child Support Performance
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.
TITLE IV—MISCELLANEOUS
Sec. 401. Elimination of barriers to the effective establishment and enforcement of
medical child support.
Sec. 402. Safeguard of new employee information.
Sec. 403. Limitations on use of TANF funds for matching under certain Federal
transportation program.
Sec. 404. Clarification of meaning of high-volume automated administrative
enforcement of child support in interstate cases.
Sec. 405. General Accounting Office reports.
Sec. 406. Data matching by multistate financial institutions.
Sec. 407. Elimination of unnecessary data reporting.
Sec. 408. Clarification of eligibility under welfare-to-work programs.
Sec. 409. Study of feasibility of implementing immigration provisions of H.R. 3130,
as passed by the House of Representatives on March 5, 1998.
Sec. 410. Technical corrections.
H. R. 3130—2
TITLE I—CHILD SUPPORT DATA
PROCESSING REQUIREMENTS
SEC. 101. ALTERNATIVE PENALTY PROCEDURE.
(a) IN GENERAL.—Section 455(a) of the Social Security Act
(42 U.S.C. 655(a)) is amended by adding at the end the following:
‘‘(4)(A)(i) If—
‘‘(I) the Secretary determines that a State plan under sec-
tion 454 would (in the absence of this paragraph) be dis-
approved for the failure of the State to comply with a particular
subparagraph of section 454(24), 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, by when, and at what
cost 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.
‘‘(ii) All failures of a State during a fiscal year to comply
with any of the requirements referred to in the same subparagraph
of section 454(24) shall be considered a single failure of the State
to comply with that subparagraph during the fiscal year for pur-
poses of this paragraph.
‘‘(B) In this paragraph:
‘‘(i) The term ‘penalty amount’ means, with respect to a
failure of a State to comply with a subparagraph of section
454(24)—
‘‘(I) 4 percent of the penalty base, in the case of the
first fiscal year in which such a failure by the State occurs
(regardless of whether a penalty is imposed under this
paragraph with respect to the failure);
‘‘(II) 8 percent of the penalty base, in the case of
the second such fiscal year;
‘‘(III) 16 percent of the penalty base, in the case of
the third such fiscal year;
‘‘(IV) 25 percent of the penalty base, in the case of
the fourth such fiscal year; or
‘‘(V) 30 percent of the penalty base, in the case of
the fifth or any subsequent such fiscal year.
‘‘(ii) The term ‘penalty base’ means, with respect to a failure
of a State to comply with a subparagraph of section 454(24)
during a fiscal year, the amount otherwise payable to the
State under paragraph (1)(A) of this subsection for the preced-
ing fiscal year.
‘‘(C)(i) The Secretary shall waive a penalty under this para-
graph for any failure of a State to comply with section 454(24)(A)
during fiscal year 1998 if—
‘‘(I) on or before August 1, 1998, the State has submitted
to the Secretary a request that the Secretary certify the State
as having met the requirements of such section;
‘‘(II) the Secretary subsequently provides the certification
as a result of a timely review conducted pursuant to the request;
and
H. R. 3130—3
‘‘(III) the State has not failed such a review.
‘‘(ii) If a State with respect to which a reduction is made
under this paragraph for a fiscal year with respect to a failure
to comply with a subparagraph of section 454(24) achieves compli-
ance with such subparagraph by the beginning of the succeeding
fiscal year, the Secretary shall increase the amount otherwise pay-
able to the State under paragraph (1)(A) of this subsection for
the succeeding fiscal year by an amount equal to 90 percent of
the reduction for the fiscal year.
‘‘(D) The Secretary may not impose a penalty under this para-
graph against a State with respect to a failure to comply with
section 454(24)(B) for a fiscal year if the Secretary is required
to impose a penalty under this paragraph against the State with
respect to a failure to comply with section 454(24)(A) for the fiscal
year.’’.
(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 AUTOMATED
DATA 
PROCESSING 
AND 
INFORMATION 
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 requirement 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 performance 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 requirements
of this part; and
‘‘(iv) in the case of a request to waive the single state-
wide system requirement, to—
‘‘(I) meet all functional requirements of sections
454(16) and 454A;
‘‘(II) ensure that calculation of distributions meets
the requirements of section 457 and accounts for
distributions to children in different families or in
different States or sub-State jurisdictions, and for dis-
tributions to other States;
‘‘(III) ensure that there is only one point of contact
in the State which provides seamless case processing
for all interstate case processing and coordinated, auto-
mated intrastate case management;
‘‘(IV) ensure that standardized data elements,
forms, and definitions are used throughout the State;
H. R. 3130—4
‘‘(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 proc-
essed through a single statewide system that meets
such requirement;
‘‘(B)(i) the waiver meets the criteria of paragraphs (1),
(2), and (3) of section 1115(c); or
‘‘(ii) the State provides assurances to the Secretary that
steps will be taken to otherwise improve the State’s child sup-
port 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 requirement, and of any such alternative sys-
tem 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 subparagraph (B);
(2) by striking the semicolon at the end of subparagraph
(C) and inserting ‘‘, and’’; and
(3) by inserting after subparagraph (C) the following:
‘‘(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 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 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 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—
H. R. 3130—5
‘‘(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 second 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 period ending on September 30
of the fiscal year. As used in the preceding sentence, the
term ‘Consumer Price Index’ means the last Consumer
Price Index for all-urban consumers published 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 correspond-
ing 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 performance 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 paragraph (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 para-
graph (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 subparagraph (A), the maximum incentive
base amount for a State for a fiscal year with respect
to a performance measure described in paragraph (4) is
H. R. 3130—6
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 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 dur-
ing the fiscal year under the State plan approved
under this part in cases in which the support
obligation involved is required to be assigned to
the State pursuant to part A or E of this title
or title XIX; and
‘‘(II) the total amount of support collected dur-
ing the fiscal year under the State plan approved
under this part in cases in which the support
obligation involved was so assigned but, at the
time of collection, is not required to be so assigned;
and
‘‘(ii) the total amount of support collected during
the fiscal year under the State plan approved under
this part in all other cases.
‘‘(6) DETERMINATION OF APPLICABLE PERCENTAGES 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 establish-
ment percentage determined under section 452(g)(2)(A)
or the statewide paternity establishment percentage
determined under section 452(g)(2)(B).
‘‘(ii) DETERMINATION
OF
APPLICABLE
PERCENT-
AGE.—The applicable percentage with respect to a
State’s paternity establishment performance level is
as follows:
‘‘If the paternity establishment perform-
ance 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% .........................
H. R. 3130—7
‘‘If the paternity establishment perform-
ance level is:
The applicable
percentage is:
At least:
But less than:
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 pater-
nity 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 imme-
diately preceding fiscal year, then the applicable
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 PERFORM-
ANCE LEVEL.—The support 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
PERCENT-
AGE.—The applicable percentage with respect to a
State’s support order performance 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% .........................
H. R. 3130—8
‘‘If the support order performance level
is:
The applicable
percentage is:
At least:
But less than:
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 percent 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 perform-
ance 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 approved 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
PERCENT-
AGE.—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% .........................
H. R. 3130—9
‘‘If the current payment performance
level is:
The applicable
percentage is:
At least:
But less than:
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 percent but exceeds by at least 5
percentage points the current payment performance
level of the State for the immediately preceding fiscal
year, then the applicable percentage with respect to
the State’s current payment performance level is 50
percent.
‘‘(D) COLLECTIONS ON CHILD SUPPORT ARREARAGES.—
‘‘(i) 
DETERMINATION
OF
ARREARAGE
PAYMENT
PERFORMANCE
LEVEL.—The 
arrearage 
payment
performance level for a State for a fiscal year is equal
to the total number of cases under the State plan
approved under this part in which payments of past-
H. R. 3130—10
due child support were received during 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 assign-
ment 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
PERCENT-
AGE.—The applicable percentage with respect to a
State’s arrearage payment performance level is as
follows:
‘‘If the arrearage 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% .........................
H. R. 3130—11
‘‘If the arrearage payment performance
level is:
The applicable
percentage is:
At least:
But less than:
41% .........................
42% .........................
40% .........................
41% .........................
0% ...........................
40% .........................
0.
Notwithstanding the preceding sentence, if the arrear-
age payment performance level of a State for a fiscal
year is less than 40 percent but exceeds by at least
5 percentage points the arrearage payment perform-
ance level of the State for the immediately preceding
fiscal year, then the applicable percentage with respect
to the State’s arrearage payment performance level
is 50 percent.
‘‘(E) COST-EFFECTIVENESS.—
‘‘(i) 
DETERMINATION
OF
COST-EFFECTIVENESS
PERFORMANCE LEVEL.—The cost-effectiveness perform-
ance 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
PERCENT-
AGE.—The applicable percentage with respect to a
State’s cost-effectiveness performance level is as
follows:
‘‘If the cost-effectiveness performance
level is:
The applicable
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 incen-
tive 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 beginning of the quarter involved), in
the amounts so estimated, reduced or increased to the extent of