IIA
105TH CONGRESS
1ST SESSION
H. R. 2487
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 30, 1997
Received; read twice and referred to the Committee on Finance
AN ACT
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,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Child Support Incen-
tive Act of 1997’’.
SEC. 2. 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 sum of the
applicable percentages (determined in accordance
with paragraph (3)) of the maximum incentive
amount for the State for the fiscal year, with respect
to each of the following measures of State perform-
ance 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.
‘‘(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 per-
cent 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
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.
‘‘(3) 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% ......................................
‘‘If the paternity establishment performance level is:
The applicable
percentage is:
At least:
But less than:
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 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% ......................................
61% ......................................
59% ......................................
60% ......................................
58% ......................................
59% ......................................
57% ......................................
58% ......................................
56% ......................................
57% ......................................
55% ......................................
56% ......................................
54% ......................................
55% ......................................
53% ......................................
54% ......................................
‘‘If the support order performance level is:
The applicable
percentage is:
At least:
But less than:
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
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
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
ARREARAGES.—
‘‘(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
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, sub-
ject 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 per-
centage.
‘‘(ii) DETERMINATION OF APPLICABLE
PERCENTAGE.—The applicable percentage
with respect to a State’s arrearage pay-
ment 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% ......................................
‘‘If the arrearage payment performance level is:
The applicable
percentage is:
At least:
But less than:
46% ......................................
47% ......................................
45% ......................................
46% ......................................
44% ......................................
45% ......................................
43% ......................................
44% ......................................
42% ......................................
43% ......................................
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
percent but exceeds by at least 5 percent-
age 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 ar-
rearage payment performance level is 50
percent.
‘‘(E) COST-EFFECTIVENESS.—
‘‘(i) DETERMINATION
OF
COST-EF-
FECTIVENESS 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 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, sup-
port 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 car-
rying 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 Sec-
retary 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 any over-
payments or underpayments which the Secretary deter-
mines 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 estimate by the Secretary under the preced-
ing 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 cal-
culation of incentive payments under this section, includ-
ing directions for excluding from the calculations certain
closed cases and cases over which the States do not have
jurisdiction.
‘‘(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 Security 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 Oc-
tober 1, 2000, the Secretary shall submit
to the Congress a report that identifies any
demographic or economic variables that ac-
count for differences in the performance
levels 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 relative performance of States is
measured from a baseline that takes ac-
count 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-