‘‘(B) the total amount expended by the
State during the fiscal year with respect to the
collection of child support for such children, in-
cluding any amount distributed by the State
during the fiscal year pursuant to section
457(b)(1).
‘‘(4) PERFORMANCE STANDARD.—
‘‘(A) IN
GENERAL.—The term ‘perform-
ance standard’ means 30 percent.
‘‘(B) LIMITED
AUTHORITY
TO
CHANGE
PERFORMANCE
STANDARD.—The 
Secretary
shall annually review the performance standard
in effect under this section and determine
whether the standard is appropriate in achiev-
ing the purposes of this title, and may increase
or decrease the performance standard in effect
for the fiscal year to not more than 40 percent
and not less than 20 percent, as the Secretary
deems appropriate.
‘‘(5) STATE PERFORMANCE PERCENTAGE.—The
term ‘State performance percentage’ means, with re-
spect to a State and a fiscal year—
‘‘(A) the net AFDC child support collec-
tions of the State during the fiscal year; divided
by
‘‘(B) the sum of—
‘‘(i) the total amount of child support
(excluding past-due support) payable dur-
ing the fiscal year with respect to children
receiving aid under the State plan ap-
proved under part A; and
‘‘(ii) the total amount of past-due
child support collected during the fiscal
year with respect to such children.’’.
(c) PAYMENTS TO STATES WITH RESPECT TO CHIL-
DREN WHO ARE NOT ELIGIBLE FOR AID TO FAMILIES
WITH DEPENDENT CHILDREN.—Section 458 of such Act
(42 U.S.C. 658) is amended to read as follows:
‘‘SEC. 458. PAYMENTS TO STATES.
‘‘(a) IN GENERAL.—From the sums appropriated
therefor, the Secretary shall pay to each State for each
calendar quarter an amount equal to the adjusted AFDC
percentage of the qualified collection costs of the State for
the quarter.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) ADJUSTED AFDC PERCENTAGE.—The term
‘adjusted AFDC percentage’ means, with respect to
a State and a quarter in a fiscal year—
‘‘(A) the AFDC percentage of the State
for the fiscal year; plus
‘‘(B) the number of percentage points (if
any) by which the State performance percent-
age for the immediately preceding fiscal year
exceeds the performance standard for such pre-
ceding fiscal year.
‘‘(2) AFDC PERCENTAGE.—The term ‘AFDC
percentage’ means, with respect to a State and a
quarter in a fiscal year—
‘‘(A) if the State has exercised the option
provided for in section 1118, the Federal medi-
cal assistance percentage referred to in such
section; or
‘‘(B) if the State has not exercised the op-
tion—
‘‘(i) the Federal percentage (as de-
fined in section 1101(a)(8)), in the case of
any State other than Puerto Rico, the Vir-
gin Islands, Guam, or American Samoa; or
‘‘(ii) 50 percent, in the case of Puerto
Rico, the Virgin Islands, Guam, and Amer-
ican Samoa.
‘‘(3) QUALIFIED NET COLLECTIONS.—The term
‘qualified net collections’ means, with respect to a
State and a quarter in a fiscal year—
‘‘(A) the total amount of child support (in-
cluding past-due support) collected by the State
during the fiscal year with respect to qualified
children; minus
‘‘(B) the qualified collection costs of the
State during the fiscal year.
‘‘(4) QUALIFIED
COLLECTION
COSTS.—The
term ‘qualified collection costs’ means, with respect
to a State and a quarter in a fiscal year, the total
amount expended by the State during the fiscal year
with respect to the collection of child support for
qualified children.
‘‘(5) QUALIFIED CHILDREN.—The term ‘quali-
fied children’ means, with respect to a State, chil-
dren—
‘‘(A) who are not receiving aid under the
State plan approved under part A;
‘‘(B) whose family income does not exceed
200 percent of the poverty line; and
‘‘(C) with respect to whom support is owed
pursuant to a child support order issued or
modified in the State.
‘‘(6) PERFORMANCE
STANDARD.—The term
‘performance standard’ means, with respect to a
quarter in a fiscal year, 75 percent of the greatest
State performance percentage of any State for the
immediately preceding fiscal year.
‘‘(7) POVERTY LINE.—The term ‘poverty line’
means the income official poverty line (as defined by
the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the
Omnibus Budget Reconciliation Act of 1981) appli-
cable to a family of the size involved.
‘‘(8) STATE PERFORMANCE PERCENTAGE.—The
term ‘State performance percentage’ means, with re-
spect to a State and a quarter in a fiscal year—
‘‘(A) the qualified net collections of the
State during the fiscal year; divided by
‘‘(B) the sum of—
‘‘(i) the total amount of child support
(excluding past-due support) payable dur-
ing the fiscal year with respect to qualified
children; and
‘‘(ii) the total amount of past-due
child support collected during the fiscal
year with respect to such children.
‘‘(c) ESTIMATED PAYMENTS.—
‘‘(1) ESTIMATE REQUIRED.—
‘‘(A) IN GENERAL.—Before the beginning
of each quarter, the Secretary shall estimate
the amount to which each State will be entitled
under subsection (a) for the quarter.
‘‘(B) CONTENTS OF ESTIMATE.—The esti-
mate shall be based on—
‘‘(i) a report filed by the State that
contains—
‘‘(I) an estimate by the State of
the total sum to be expended by the
State in the quarter in accordance
with subsection (a);
‘‘(II) a statement of the amount
appropriated or made available by the
State and the political subdivisions of
the State for such expenditures in the
quarter; and
‘‘(III) if the amount referred to
in clause (ii) is less than the State’s
proportionate share of the total sum
of such estimated expenditures, the
source of sources from which the
State expects the difference to be de-
rived; and
‘‘(ii) such other investigation as the
Secretary may find necessary.
‘‘(2) AMOUNT OF PAYMENT.—After making the
estimate required by paragraph (1) of this sub-
section with respect to a State for a quarter, the
Secretary shall, subject to subsection (d), pay to the
State, in such installments as the Secretary may de-
termine, the amount so estimated, reduced or in-
creased to the extent of any overpayment or
underpayment which the Secretary determines was
made under this section to the State for any prior
quarter and with respect to which adjustment has
not been made under this subsection.
‘‘(3) SPECIAL RULES FOR LAST 3 QUARTERS OF
FISCAL YEAR 1996.—The Secretary shall, subject to
subsection (d), pay to the State, for each of the 2nd,
3rd, and 4th quarters of fiscal year 1996, an
amount equal to 60 percent of the total amount paid
to the State under this part (as in effect imme-
diately before the enactment of this section) with re-
spect to qualified children for the corresponding
quarter of fiscal year 1995, reduced or increased to
the extent of any overpayment or underpayment
which the Secretary determines was made under this
section to the State for any prior quarter and with
respect to which adjustment has not been made
under this subsection.
‘‘(d) REPORTS
REQUIRED.—Notwithstanding any
other provision of law, no amount shall be paid to any
State under this section for any quarter, before the close
of the quarter, unless the State has submitted to the Sec-
retary, with respect to each prior quarter (other than the
last 2 quarters) for which payment is authorized to be
made to the State under subsection (a), a full and com-
plete report (in such form and manner and containing
such information as the Secretary shall prescribe or re-
quire) on the amount of child support collected and dis-
bursed by the State and all expenditures by the State with
respect to which payment is authorized under subsection
(a).’’.
(c) CONFORMING AMENDMENT.—Section 457(b)(2)
of such Act (42 U.S.C. 657(b)(2)) is amended by striking
‘‘to the extent of its participation in the financing’’ and
inserting ‘‘pursuant to section 455(a)’’.
SEC. 302. PROVISION OF CHILD SUPPORT ENFORCEMENT
SERVICES TO FAMILIES WHOSE INCOME EX-
CEEDS 200 PERCENT OF THE POVERTY LINE.
(a) STATE OPTION TO PROVIDE SERVICES.—Section
454(6)(A) of the Social Security Act (42 U.S.C.
654(6)(A)) is amended by inserting ‘‘whose family income
does not exceed 200 percent of the poverty line (as deter-
mined under section 652 of the Omnibus Budget Rec-
onciliation Act of 1981), and, at the option of the State,
to any individual not otherwise eligible for such services
who family income exceeds 200 percent of the poverty
line,’’ before ‘‘upon application’’.
(b) STATE OPTION TO IMPOSE INCREASED FEE FOR
SERVICES.—Section 454(6)(B)(i) of the Social Security
Act (42 U.S.C. 654(6)(B)(i)) is amended by inserting ‘‘for
individuals whose family income does not exceed 200 per-
cent of the poverty line, or (if the State elects to impose
a higher fee for services provided to individuals whose
family income does not exceed 200 percent of the poverty
line) such greater amount as the State may establish for
individuals whose family income does not exceed 200 per-
cent of the poverty line,’’ after ‘‘$25’’.
TITLE IV—ACCOUNTING AND
REVIEWS
SEC. 401. ACCOUNTING.
The Secretary of Health and Human Services, in con-
sultation with the Comptroller General of the United
States, shall develop guidelines to be used in accounting
for costs for purposes of sections 455 and 458 of the So-
cial Security Act, which shall provide for the costs de-
scribed in such section 455 to be accounted for separately
from the costs described in such section 458.
SEC. 402. REVIEWS.
(a) REVIEW.—The Comptroller General of the United
States shall conduct a review of—
(1) the system for reviewing the activities of
States pursuant to part D of title IV of the Social
Security Act;
(2) the information reporting requirements im-
posed on States under such part.
(b) REPORT TO THE CONGRESS.—The Comptroller
General shall submit to the Secretary of Health and
Human Services a report that contains recommendations
on how to improve and simplify the matters described in
subsection (a).
TITLE V—EFFECTIVE DATE
SEC. 501. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on January 1, 1996.
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