[105th Congress Public Law 200]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ200.105]
[[Page 112 STAT. 645]]
Public Law 105-200
105th Congress
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. <<NOTE: July 16, 1998 - [H.R. 3130]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Child Support Performance
and Incentive Act of 1998.>> assembled,
SECTION 1. SHORT <<NOTE: 42 USC 1305 note.>> 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.
[[Page 112 STAT. 646]]
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
section 454 would (in the absence of this paragraph) be
disapproved 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 purposes 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
preceding fiscal year.
``(C)(i) The Secretary shall waive a penalty under this paragraph
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
[[Page 112 STAT. 647]]
``(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 compliance with such
subparagraph by the beginning of the succeeding fiscal year, the
Secretary shall increase the amount otherwise payable 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 paragraph
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
statewide 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 distributions 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, automated intrastate case management;
``(IV) ensure that standardized data elements,
forms, and definitions are used throughout the
State;
[[Page 112 STAT. 648]]
``(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 processed 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
support 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
system 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 . <<NOTE: 42 USC 658a.>> 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--
[[Page 112 STAT. 649]]
``(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
corresponding 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
paragraph (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
[[Page 112 STAT. 650]]
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 during 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 during 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
establishment 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
percentage.--The applicable percentage with
respect to a State's paternity establishment
performance level is as follows:
------------------------------------------------------------------------
``If the paternity establishment performance level is:
------------------------------------------------------- The applicable
At least: But less than: percentage is:
------------------------------------------------------------------------
80%.............................. ................... 100
79%.............................. 80%................ 98
78%.............................. 79%................ 96
77%.............................. 78%................ 94
76%.............................. 77%................ 92
75%.............................. 76%................ 90
74%.............................. 75%................ 88
73%.............................. 74%................ 86
72%.............................. 73%................ 84
71%.............................. 72%................ 82
70%.............................. 71%................ 80
69%.............................. 70%................ 79
68%.............................. 69%................ 78
[[Page 112 STAT. 651]]
67%.............................. 68%................ 77
66%.............................. 67%................ 76
65%.............................. 66%................ 75
64%.............................. 65%................ 74
63%.............................. 64%................ 73
62%.............................. 63%................ 72
61%.............................. 62%................ 71
60%.............................. 61%................ 70
59%.............................. 60%................ 69
58%.............................. 59%................ 68
57%.............................. 58%................ 67
56%.............................. 57%................ 66
55%.............................. 56%................ 65
54%.............................. 55%................ 64
53%.............................. 54%................ 63
52%.............................. 53%................ 62
51%.............................. 52%................ 61
50%.............................. 51%................ 60
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 establishment performance level of the
State for the immediately 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
performance 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
percentage.--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
At least: But less than: percentage is:
------------------------------------------------------------------------
80%.............................. ................... 100
79%.............................. 80%................ 98
78%.............................. 79%................ 96
77%.............................. 78%................ 94
76%.............................. 77%................ 92
75%.............................. 76%................ 90
74%.............................. 75%................ 88
73%.............................. 74%................ 86
72%.............................. 73%................ 84
[[Page 112 STAT. 652]]
71%.............................. 72%................ 82
70%.............................. 71%................ 80
69%.............................. 70%................ 79
68%.............................. 69%................ 78
67%.............................. 68%................ 77
66%.............................. 67%................ 76
65%.............................. 66%................ 75
64%.............................. 65%................ 74
63%.............................. 64%................ 73
62%.............................. 63%................ 72
61%.............................. 62%................ 71
60%.............................. 61%................ 70
59%.............................. 60%................ 69
58%.............................. 59%................ 68
57%.............................. 58%................ 67
56%.............................. 57%................ 66
55%.............................. 56%................ 65
54%.............................. 55%................ 64
53%.............................. 54%................ 63
52%.............................. 53%................ 62
51%.............................. 52%................ 61
50%.............................. 51%................ 60
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
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 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
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
At least: But less than: percentage is:
------------------------------------------------------------------------
80%.............................. ................... 100
79%.............................. 80%................ 98
78%.............................. 79%................ 96
77%.............................. 78%................ 94
[[Page 112 STAT. 653]]
76%.............................. 77%................ 92
75%.............................. 76%................ 90
74%.............................. 75%................ 88
73%.............................. 74%................ 86
72%.............................. 73%................ 84
71%.............................. 72%................ 82
70%.............................. 71%................ 80
69%.............................. 70%................ 79
68%.............................. 69%................ 78
67%.............................. 68%................ 77
66%.............................. 67%................ 76
65%.............................. 66%................ 75
64%.............................. 65%................ 74
63%.............................. 64%................ 73
62%.............................. 63%................ 72
61%.............................. 62%................ 71
60%.............................. 61%................ 70
59%.............................. 60%................ 69
58%.............................. 59%................ 68
57%.............................. 58%................ 67
56%.............................. 57%................ 66
55%.............................. 56%................ 65
54%.............................. 55%................ 64
53%.............................. 54%................ 63
52%.............................. 53%................ 62
51%.............................. 52%................ 61
50%.............................. 51%................ 60
49%.............................. 50%................ 59
48%.............................. 49%................ 58
47%.............................. 48%................ 57
46%.............................. 47%................ 56
45%.............................. 46%................ 55
44%.............................. 45%................ 54
43%.............................. 44%................ 53
42%.............................. 43%................ 52
41%.............................. 42%................ 51
40%.............................. 41%................ 50
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-
[[Page 112 STAT. 654]]
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 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 applicable
At least: But less than: percentage is:
------------------------------------------------------------------------
80%.............................. ................... 100
79%.............................. 80%................ 98
78%.............................. 79%................ 96
77%.............................. 78%................ 94
76%.............................. 77%................ 92
75%.............................. 76%................ 90
74%.............................. 75%................ 88
73%.............................. 74%................ 86
72%.............................. 73%................ 84
71%.............................. 72%................ 82
70%.............................. 71%................ 80
69%.............................. 70%................ 79
68%.............................. 69%................ 78
67%.............................. 68%................ 77
66%.............................. 67%................ 76
65%.............................. 66%................ 75
64%.............................. 65%................ 74
63%.............................. 64%................ 73
62%.............................. 63%................ 72
61%.............................. 62%................ 71
60%.............................. 61%................ 70
59%.............................. 60%................ 69
58%.............................. 59%................ 68
57%.............................. 58%................ 67
56%.............................. 57%................ 66
55%.............................. 56%................ 65
54%.............................. 55%................ 64
53%.............................. 54%................ 63
52%.............................. 53%................ 62
51%.............................. 52%................ 61
50%.............................. 51%................ 60
49%.............................. 50%................ 59
48%.............................. 49%................ 58
47%.............................. 48%................ 57
46%.............................. 47%................ 56
45%.............................. 46%................ 55
44%.............................. 45%................ 54
43%.............................. 44%................ 53
42%.............................. 43%................ 52
[[Page 112 STAT. 655]]
41%.............................. 42%................ 51
40%.............................. 41%................ 50
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 percentage points the arrearage
payment performance 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
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
At least: But less than: percentage is:
------------------------------------------------------------------------
5.00............................. ................... 100
4.50............................. 4.99............... 90
4.00............................. 4.50............... 80
3.50............................. 4.00............... 70
3.00............................. 3.50............... 60
2.50............................. 3.00............... 50
2.00............................. 2.50............... 40
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
beginning of the quarter involved), in the amounts so estimated, reduced
or increased to the extent of
[[Page 112 STAT. 656]]
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 estimate 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 calculation of incentive payments
under this section, including 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 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 Secretary, whether or not
the expenditures for the activity 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) <<NOTE: 42 USC 658a note.>> Transition Rule.--Notwithstanding
any other provision of law--
(1) for fiscal year 2000, the Secretary shall reduce by one-
third the amount otherwise payable to a State under section 458
of the Social Security Act, and shall reduce by two-thirds the
amount otherwise payable to a State under section 458A of such
Act; and
(2) for fiscal year 2001, the Secretary shall reduce by two-
thirds the amount otherwise payable to a State under section 458
of the Social Security Act, and shall reduce by one-third the
amount otherwise payable to a State under section 458A of such
Act.
(c) <<NOTE: 42 USC 658a note.>> 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) <<NOTE: 42 USC 658a note.>> Studies.--
(1) General review of new incentive payment 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) <<NOTE: Deadlines.>> Reports to the congress.--
(i) Report on variations in state performance
attributable to demographic variables.--Not later
than October 1, 2000, the Secretary shall submit
to the Congress a report that identifies any
demographic or economic variables that account 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
[[Page 112 STAT. 657]]
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 contains 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 incentive.--
(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 representatives of children potentially
eligible for medical support, shall develop a
performance measure based on the effectiveness of States
in establishing and enforcing medical support
obligations, and shall make recommendations for the
incorporation of the measure, in a revenue neutral
manner, into the incentive payment system established by
section 458A of the Social Security Act.
(B) <<NOTE: Deadline.>> 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) <<NOTE: 42 USC 652 and note, 658 and notes.>> by
striking subsection (a) and redesignating subsections
(b), (c), and (d) as subsections (a), (b), and (c),
respectively; and
(B) in subsection (c) (as so redesignated)--
(i) <<NOTE: 42 USC 658 note.>> by striking
paragraph (1) and inserting the following:
``(1) <<NOTE: Effective date.>> 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) <<NOTE: 42 USC 652 note.>> in paragraph
(2), by striking ``(c)'' and inserting ``(b)''.
(2) <<NOTE: 42 USC 652 note.>> Effective date.--The
amendments made by this
subsection shall take effect as if included in the enactment of
section 341 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
(f ) Elimination of Predecessor Incentive Payment
System.--
(1) Repeal.--Section 458 of the Social Security Act (42
U.S.C. 658) is repealed.
(2) Conforming amendments.--
[[Page 112 STAT. 658]]
(A) Section 458A of the Social Security Act, as
added by section 201(a) of this Act, is redesignated 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 section 101(a) of this
Act, is amended--
(i) by striking ``458A(b)(4)'' and inserting
``458(b)(4)'';
(ii) by striking ``458A(b)(6)'' and inserting
``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) <<NOTE: 42 USC 655 note.>> Effective date.--The
amendments made by this
subsection shall take effect on October 1, 2001.
(g) <<NOTE: 42 USC 658a note.>> General Effective Date.--Except as
otherwise provided in this section, the amendments made by this section
shall take effect on October 1, 1999.
TITLE III--ADOPTION PROVISIONS
SEC. 301. MORE FLEXIBLE PENALTY PROCEDURE TO BE APPLIED FOR FAILING TO
PERMIT INTERJURISDICTIONAL ADOPTION.
(a) Conversion of Funding Ban Into State Plan Requirement.--Section
471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended--
(1) by striking ``and'' at the end of paragraph (21);
(2) by striking the period at the end of paragraph (22) and
inserting ``; and''; and
(3) by adding at the end the following:
``(23) provides that the State shall not--
``(A) deny or delay the placement of a child for
adoption when an approved family is available outside of
the
jurisdiction with responsibility for handling the case
of the child; or
``(B) fail to grant an opportunity for a fair
hearing, as described in paragraph (12), to an
individual whose allegation of a violation of
subparagraph (A) of this paragraph is denied by the
State or not acted upon by the State with reasonable
promptness.''.
(b) Penalty for Noncompliance.--Section 474(d) of such Act (42
U.S.C. 674(d)) is amended in each of paragraphs (1) and (2) by striking
``section 471(a)(18)'' and inserting ``paragraph (18) or (23) of section
471(a)''.
(c) Conforming Amendment.--Section 474 of such Act (42 U.S.C. 674)
is amended by striking subsection (e).
(d) <<NOTE: 42 USC 671 note.>> Retroactivity.--The amendments made
by this section shall take effect as if included in the enactment of
section 202 of the Adoption and Safe Families Act of 1997 (Public Law
105-89; 111 Stat. 2125).
[[Page 112 STAT. 659]]
TITLE IV--MISCELLANEOUS
SEC. 401. ELIMINATION OF BARRIERS TO THE EFFECTIVE ESTABLISHMENT AND
ENFORCEMENT OF MEDICAL CHILD SUPPORT.
(a) <<NOTE: 42 USC 651 note.>> Study on Effectiveness of Enforcement
of Medical Support by State Agencies.--
(1) <<NOTE: Deadline. Establishment.>> Medical child support
working group.--Within 60 days after the date of the enactment
of this Act, the Secretary of Health and Human Services and the
Secretary of Labor shall jointly establish a Medical Child
Support Working Group. The purpose of the Working Group shall be
to identify the impediments to the effective enforcement of
medical support by State agencies administering the programs
operated pursuant to part D of title IV of the Social Security
Act.
(2) Membership.--The Working Group shall consist of not more
than 30 members and shall be composed of representatives of--
(A) the Department of Labor;
(B) the Department of Health and Human Services;
(C) State directors of programs under part D of
title IV of the Social Security Act;
(D) State directors of the Medicaid program under
title XIX of the Social Security Act;
(E) employers, including owners of small businesses
and their trade or industry representatives and
certified human resource and payroll professionals;
(F) plan administrators and plan sponsors of group
health plans (as defined in section 607(1) of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1167(1));
(G) children potentially eligible for medical
support, such as child advocacy organizations;
(H) State medical child support programs; and
(I) organizations representing State child support
programs.
(3) Compensation.--The members shall serve without
compensation.
(4) Administrative support.--The Department of Health and
Human Services and the Department of Labor shall jointly provide
appropriate administrative support to the Working Group,
including technical assistance. The Working Group may use the
services and facilities of either such Department, with or
without reimbursement, as jointly determined by such
Departments.
(5) Report.--
(A) <<NOTE: Deadline.>> Report by working group to
the secretaries.--Not later than 18 months after the
date of the enactment of this Act, the Working Group
shall submit to the Secretary of Labor and the Secretary
of Health and Human Services a report containing
recommendations for appropriate measures to address the
impediments to the effective enforcement of medical
support by State agencies administering the programs
operated pursuant to part D of title IV of the Social
Security Act identified by the Working Group,
including--
[[Page 112 STAT. 660]]
(i) recommendations based on assessments of
the form and content of the National Medical
Support Notice, as issued under interim
regulations;
(ii) appropriate measures that establish the
priority of withholding of child support
obligations, medical support obligations,
arrearages in such obligations, and in the case of
a medical support obligation, the employee's
portion of any health care coverage premium, by
such State agencies in light of the restrictions
on garnishment provided under title III of the
Consumer Credit Protection Act (15 U.S.C. 1671-
1677);
(iii) appropriate procedures for coordinating
the provision, enforcement, and transition of
health care coverage under the State programs
operated pursuant to part D of title IV of the
Social Security Act and titles XIX and XXI of such
Act;
(iv) appropriate measures to improve the
availability of alternate types of medical support
that are aside from health coverage offered
through the noncustodial parent's health plan and
unrelated to the noncustodial parent's employer,
including measures that establish a noncustodial
parent's responsibility to share the cost of
premiums, co-payments, deductibles, or payments
for services not covered under a child's existing
health coverage;
(v) recommendations on whether reasonable cost
should remain a consideration under section 452(f
) of the Social Security Act; and
(vi) appropriate measures for eliminating any
other impediments to the effective enforcement of
medical support orders that the Working Group
deems necessary.
(B) <<NOTE: Deadline.>> Report by secretaries to the
congress.--Not later than 2 months after receipt of the
report pursuant to subparagraph (A), the Secretaries
shall jointly submit a report to each House of the
Congress regarding the recommendations contained in the
report under subparagraph (A).
(6) Termination.--The Working Group shall terminate 30 days
after the date of the issuance of its report under paragraph
(5).
(b) <<NOTE: Regulations. 42 USC 651 note.>> Promulgation of National
Medical Support Notice.--
(1) In general.--The Secretary of Health and Human Services
and the Secretary of Labor shall jointly develop and promulgate
by regulation a National Medical Support Notice, to be issued by
States as a means of enforcing the health care coverage
provisions in a child support order.
(2) Requirements.--The National Medical Support Notice
shall--
(A) conform with the requirements which apply to
medical child support orders under section 609(a)(3) of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1169(a)(3)) in connection with group health plans
(subject to section 609(a)(4) of such Act), irrespective
of whether the group health plan is covered under
section 4 of such Act;
[[Page 112 STAT. 661]]
(B) conform with the requirements of part D of title
IV of the Social Security Act; and
(C) include a separate and easily severable employer
withholding notice, informing the employer of--
(i) applicable provisions of State law
requiring the employer to withhold any employee
contributions due under any group health plan in
connection with
coverage required to be provided under such order;
(ii) the duration of the withholding
requirement;
(iii) the applicability of limitations on any
such withholding under title III of the Consumer
Credit Protection Act;
(iv) the applicability of any prioritization
required under State law between amounts to be
withheld for purposes of cash support and amounts
to be withheld for purposes of medical support, in
cases where available funds are insufficient for
full withholding for both purposes; and
(v) the name and telephone number of the
appropriate unit or division to contact at the
State agency regarding the National Medical
Support Notice.
(3) Procedures.--The regulations promulgated pursuant to
paragraph (1) shall include appropriate procedures for the
transmission of the National Medical Support Notice to employers
by State agencies administering the programs operated pursuant
to part D of title IV of the Social Security Act.
(4) <<NOTE: Deadline.>> Interim regulations.--Not later than
10 months after the date of the enactment of this Act, the
Secretaries shall issue interim regulations providing for the
National Medical Support Notice.
(5) <<NOTE: Deadline.>> Final regulations.--Not later than 1
year after the issuance of the interim regulations under
paragraph (4), the Secretary of Health and Human Services and
the Secretary of Labor shall jointly issue final regulations
providing for the National Medical Support Notice.
(c) Required Use by States of National Medical Support Notices.--
(1) State procedures.--Section 466(a)(19) of the Social
Security Act (42 U.S.C. 666(a)(19)) is amended to read as
follows:
``(19) Health care coverage.--Procedures under which--
``(A) effective as provided in section 401(c)(3) of
the Child Support Performance and Incentive Act of 1998,
all child support orders enforced pursuant to this part
which include a provision for the health care coverage
of the child are enforced, where appropriate, through
the use of the National Medical Support Notice
promulgated pursuant to section 401(b) of the Child
Support Performance and Incentive Act of 1998 (and
referred to in section 609(a)(5)(C) of the Employee
Retirement Income Security Act of 1974 in connection
with group health plans covered under title I of such
Act, in section 401(e)(3)(C) of the Child Support
Performance and Incentive Act of 1998 in connection with
State or local group health plans, and in section 401(f
)(5)(C) of such Act in connection with church group
health plans);
[[Page 112 STAT. 662]]
``(B) unless alternative coverage is allowed for in
any order of the court (or other entity issuing the
child support order), in any case in which a
noncustodial parent is required under the child support
order to provide such health care coverage and the
employer of such noncustodial parent is known to the
State agency--
``(i) the State agency uses the National
Medical Support Notice to transfer notice of the
provision for the health care coverage of the
child to the employer;
``(ii) within 20 business days after the date
of the National Medical Support Notice, the
employer is required to transfer the Notice,
excluding the severable employer withholding
notice described in section 401(b)(2)(C) of the
Child Support Performance and Incentive Act of
1998, to the appropriate plan providing any such
health care coverage for which the child is
eligible;
``(iii) in any case in which the noncustodial
parent is a newly hired employee entered in the
State Directory of New Hires pursuant to section
453A(e), the State agency provides, where
appropriate, the National Medical Support Notice,
together with an income withholding notice issued
pursuant to section 466(b), within two days after
the date of the entry of such employee in such
Directory; and
``(iv) in any case in which the employment of
the noncustodial parent with any employer who has
received a National Medical Support Notice is
terminated, such employer is required to notify
the State agency of such termination; and
``(C) any liability of the noncustodial parent to
such plan for employee contributions which are required
under such plan for enrollment of the child is
effectively subject to appropriate enforcement, unless
the noncustodial parent contests such enforcement based
on a mistake of fact.''.
(2) Conforming amendments.--Section 452(f ) of such Act (42
U.S.C. 652(f )) is amended in the first sentence--
(A) by striking ``petition for the inclusion of ''
and
inserting ``include''; and
(B) by inserting ``and enforce medical support''
before ``whenever''.
(3) <<NOTE: 42 USC 652 note.>> Effective date.--The
amendments made by this subsection shall be effective with
respect to periods beginning on or after the later of--
(A) October 1, 2001; or
(B) the effective date of laws enacted by the
legislature of such State implementing such amendments,
but in no event later than the first day of the first calendar
quarter beginning after the close of the first regular session
of the State legislature that begins after the date of the
enactment of this Act. For purposes of the preceding sentence,
in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate
regular session of the State legislature.
(d) National Medical Support Notice Deemed under
ERISA a Qualified Medical Child Support Order.--Section 609(a)(5) of the
Employee Retirement Income Security Act of 1974
[[Page 112 STAT. 663]]
(29 U.S.C. 1169(a)(5)) is amended by adding at the end the following:
``(C) National medical support notice deemed to be a
qualified medical child support order.--
``(i) In general.--If the plan administrator
of a group health plan which is maintained by the
employer of a noncustodial parent of a child or to
which such an employer contributes receives an
appropriately completed National Medical Support
Notice promulgated pursuant to section 401(b) of
the Child Support Performance and Incentive Act of
1998 in the case of such child, and the Notice
meets the requirements of paragraphs (3) and (4),
the Notice shall be deemed to be a qualified
medical child support order in the case of such
child.
``(ii) Enrollment of child in plan.--In any
case in which an appropriately completed National
Medical Support Notice is issued in the case of a
child of a participant under a group health plan
who is a noncustodial parent of the child, and the
Notice is deemed under clause (i) to be a
qualified medical child support order, the plan
administrator, within 40 business days after the
date of the Notice, shall--
``(I) <<NOTE: Notification.>> notify
the State agency issuing the Notice with
respect to such child whether coverage
of the child is available under the
terms of the plan and, if so, whether
such child is covered under the plan and
either the effective date of the
coverage or, if necessary, any steps to
be taken by the custodial parent (or by
the official of a State or political
subdivision thereof substituted for the
name of such child pursuant to paragraph
(3)(A)) to effectuate the coverage; and
``(II) provide to the custodial
parent (or such substituted official) a
description of the coverage available
and any forms or documents necessary to
effectuate such coverage.
``(iii) Rule of construction.--Nothing in this
subparagraph shall be construed as requiring a
group health plan, upon receipt of a National
Medical Support Notice, to provide benefits under
the plan (or eligibility for such benefits) in
addition to benefits (or eligibility for benefits)
provided under the terms of the plan as of
immediately before receipt of such Notice.''.
(e) <<NOTE: 29 USC 1169 note.>> National Medical Support Notices for
State or Local Governmental Group Health Plans.--
(1) In general.--Each State or local governmental group
health plan shall provide benefits in accordance with the
applicable requirements of any National Medical Support Notice.
(2) Enrollment of child in plan.--In any case in which an
appropriately completed National Medical Support Notice is
issued in the case of a child of a participant under a State or
local governmental group health plan who is a noncustodial
parent of the child, the plan administrator, within 40 business
days after the date of the Notice, shall--
[[Page 112 STAT. 664]]
(A) <<NOTE: Notification.>> notify the State agency
issuing the Notice with respect to such child whether
coverage of the child is available under the terms of
the plan and, if so, whether such child is covered under
the plan and either the effective date of the coverage
or any steps necessary to be taken by the custodial
parent (or by any official of a State or political
subdivision thereof substituted in the Notice for the
name of such child in accordance with procedures
appliable under subsection (b)(2) of this section) to
effectuate the coverage; and
(B) provide to the custodial parent (or such
substituted official) a description of the coverage
available and any forms or documents necessary to
effectuate such coverage.
(3) Rule of construction.--Nothing in this subsection shall
be construed as requiring a State or local governmental group
health plan, upon receipt of a National Medical Support Notice,
to provide benefits under the plan (or eligibility for such
benefits) in addition to benefits (or eligibility for benefits)
provided under the terms of the plan as of immediately before
receipt of such Notice.
(4) Definitions.--For purposes of this subsection--
(A) State or local governmental group health plan.--
The term ``State or local governmental group health
plan'' means a group health plan which is established or
maintained for its employees by the government of any
State, any political subdivision of a State, or any
agency or instrumentality of either of the foregoing.
(B) Alternate recipient.--The term ``alternate
recipient'' means any child of a participant who is
recognized under a National Medical Support Notice as
having a right to enrollment under a State or local
governmental group health plan with respect to such
participant.
(C) Group health plan.--The term ``group health
plan'' has the meaning provided in section 607(1) of the
Employee Retirement Income Security Act of 1974.
(D) State.--The term ``State'' includes the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, and American Samoa.
(E) Other terms.--The terms ``participant'' and
``administrator'' shall have the meanings provided such
terms, respectively, by paragraphs (7) and (16) of
section 3 of the Employee Retirement Income Security Act
of 1974.
(5) Effective date.--The provisions of this subsection shall
take effect on the date of the issuance of interim regulations
pursuant to subsection (b)(4) of this section.
(f ) <<NOTE: 29 USC 1169 note.>> Qualified Medical Child Support
Orders and National Medical Support Notices for Church Plans.--
(1) In general.--Each church group health plan shall provide
benefits in accordance with the applicable requirements of any
qualified medical child support order. A qualified medical child
support order with respect to any participant or beneficiary
shall be deemed to apply to each such group health plan which
has received such order, from which the participant or
beneficiary is eligible to receive benefits, and with respect to
which the requirements of paragraph (4) are met.
(2) Definitions.--For purposes of this subsection--
[[Page 112 STAT. 665]]
(A) Church group health plan.--The term ``church
group health plan'' means a group health plan which is a
church plan.
(B) Qualified medical child support order.--The term
``qualified medical child support order'' means a
medical child support order--
(i) which creates or recognizes the existence
of an alternate recipient's right to, or assigns
to an alternate recipient the right to, receive
benefits for which a participant or beneficiary is
eligible under a church group health plan; and
(ii) with respect to which the requirements of
paragraphs (3) and (4) are met.
(C) Medical child support order.--The term ``medical
child support order'' means any judgment, decree, or
order (including approval of a settlement agreement)
which--
(i) provides for child support with respect to
a child of a participant under a church group
health plan or provides for health benefit
coverage to such a child, is made pursuant to a
State domestic relations law (including a
community property law), and relates to benefits
under such plan; or
(ii) is made pursuant to a law relating to
medical child support described in section 1908 of
the Social Security Act (as added by section 13822
of the Omnibus Budget Reconciliation Act of 1993)
with respect to a church group health plan,
if such judgment, decree, or order: (I) is issued by a
court of competent jurisdiction; or (II) is issued
through an administrative process established under
State law and has the force and effect of law under
applicable State law. For purposes of this paragraph, an
administrative notice which is issued pursuant to an
administrative process referred to in subclause (II) of
the preceding sentence and which has the effect of an
order described in clause (i) or (ii) of the preceding
sentence shall be treated as such an order.
(D) Alternate recipient.--The term ``alternate
recipient'' means any child of a participant who is
recognized under a medical child support order as having
a right to enrollment under a church group health plan
with respect to such participant.
(E) Group health plan.--The term ``group health
plan'' has the meaning provided in section 607(1) of the
Employee Retirement Income Security Act of 1974.
(F) State.--The term ``State'' includes the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, and American Samoa.
(G) Other terms.--The terms ``participant'',
``beneficiary'', ``administrator'', and ``church plan''
shall have the meanings provided such terms,
respectively, by paragraphs (7), (8), (16), and (33) of
section 3 of the Employee Retirement Income Security Act
of 1974.
(3) Information to be included in qualified order.--A
medical child support order meets the requirements of this
paragraph only if such order clearly specifies--
[[Page 112 STAT. 666]]
(A) the name and the last known mailing address (if
any) of the participant and the name and mailing address
of each alternate recipient covered by the order, except
that, to the extent provided in the order, the name and
mailing address of an official of a State or a political
subdivision thereof may be substituted for the mailing
address of any such alternate recipient;
(B) a reasonable description of the type of coverage
to be provided to each such alternate recipient, or the
manner in which such type of coverage is to be
determined; and
(C) the period to which such order applies.
(4) Restriction on new types or forms of benefits.--A
medical child support order meets the requirements of this
paragraph only if such order does not require a church group
health plan to provide any type or form of benefit, or any
option, not otherwise provided under the plan, except to the
extent necessary to meet the requirements of a law relating to
medical child support described in section 1908 of the Social
Security Act (as added by section 13822 of the Omnibus Budget
Reconciliation Act of 1993).
(5) Procedural requirements.--
(A) Timely notifications and determinations.--In the
case of any medical child support order received by a
church group health plan--
(i) <<NOTE: Notification.>> the plan
administrator shall promptly notify the
participant and each alternate recipient of the
receipt of such order and the plan's procedures
for determining whether medical child support
orders are qualified medical child support orders;
and
(ii) within a reasonable period after receipt
of such order, the plan administrator shall
determine whether such order is a qualified
medical child support order and notify the
participant and each alternate recipient of such
determination.
(B) Establishment of procedures for determining
qualified status of orders.--Each church group health
plan shall establish reasonable procedures to determine
whether medical child support orders are qualified
medical child support orders and to administer the
provision of benefits under such qualified orders. Such
procedures--
(i) shall be in writing;
(ii) shall provide for the notification of
each person specified in a medical child support
order as eligible to receive benefits under the
plan (at the address included in the medical child
support order) of such procedures promptly upon
receipt by the plan of the medical child support
order; and
(iii) shall permit an alternate recipient to
designate a representative for receipt of copies
of notices that are sent to the alternate
recipient with respect to a medical child support
order.
(C) National medical support notice deemed to be a
qualified medical child support order.--
(i) In general.--If the plan administrator of
any church group health plan which is maintained
by the employer of a noncustodial parent of a
child or to
[[Page 112 STAT. 667]]
which such an employer contributes receives an
appropriately completed National Medical Support
Notice promulgated pursuant to subsection (b) of
this section in the case of such child, and the
Notice meets the requirements of paragraphs (3)
and (4) of this subsection, the Notice shall be
deemed to be a qualified medical child support
order in the case of such child.
(ii) Enrollment of child in plan.--In any case
in which an appropriately completed National
Medical Support Notice is issued in the case of a
child of a participant under a church group health
plan who is a noncustodial parent of the child,
and the Notice is deemed under clause (i) to be a
qualified medical child support order, the plan
administrator, within 40 business days after the
date of the Notice, shall--
(I) <<NOTE: Notification.>> notify
the State agency issuing the Notice with
respect to such child whether coverage
of the child is available under the
terms of the plan and, if so, whether
such child is covered under the plan and
either the effective date of the
coverage or any steps necessary to be
taken by the custodial parent (or by the
official of a State or political
subdivision thereof substituted for the
name of such child pursuant to paragraph
(3)(A)) to effectuate the coverage; and
(II) provide to the custodial parent
(or such substituted official) a
description of the coverage available
and any forms or documents necessary to
effectuate such coverage.
(iii) Rule of construction.--Nothing in this
subparagraph shall be construed as requiring a
church group health plan, upon receipt of a
National Medical Support Notice, to provide
benefits under the plan (or eligibility for such
benefits) in addition to benefits (or eligibility
for benefits) provided under the terms of the plan
as of immediately before receipt of such Notice.
(6) Direct provision of benefits provided to alternate
recipients.--Any payment for benefits made by a church group
health plan pursuant to a medical child support order in
reimbursement for expenses paid by an alternate recipient or an
alternate recipient's custodial parent or legal guardian shall
be made to the alternate recipient or the alternate recipient's
custodial parent or legal guardian.
(7) Payment to state official treated as satisfaction of
plan's obligation to make payment to alternate recipient.--
Payment of benefits by a church group health plan to an official
of a State or a political subdivision thereof whose name and
address have been substituted for the address of an alternate
recipient in a medical child support order, pursuant to
paragraph (3)(A), shall be treated, for purposes of this
subsection and part D of title IV of the Social Security Act, as
payment of benefits to the alternate recipient.
(8) Effective date.--The provisions of this subsection shall
take effect on the date of the issuance of interim regulations
pursuant to subsection (b)(4) of this section.
[[Page 112 STAT. 668]]
(g) <<NOTE: Deadline. 29 USC 1169 note.>> Report and Recommendations
Regarding the Enforcement of Qualified Medical Child Support Orders.--
Not later than 8 months after the issuance of the report to the Congress
pursuant to subsection (a)(5), the Secretary of Health and Human
Services and the Secretary of Labor shall jointly submit to each House
of the Congress a report containing recommendations for appropriate
legislation to improve the effectiveness of, and enforcement of,
qualified medical child support orders under the provisions of
subsection (f ) of this section and section 609(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)).
(h) Technical Corrections.--
(1) Amendment relating to public law 104-266.--
(A) In general.--Subsection (f ) of section 101 of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1021(f )) is repealed.
(B) <<NOTE: 29 USC 1021 note.>> Effective date.--The
amendment made by subparagraph (A) shall take effect as
if included in the enactment of the Act entitled ``An
Act to repeal the Medicare and Medicaid Coverage Data
Bank'', approved October 2, 1996 (Public Law 104-226;
110 Stat. 3033).
(2) Amendments relating to public law 103-66.--
(A) In general.--(i) Section 4301(c)(4)(A) of the
Omnibus Budget Reconciliation Act of 1993 (Public Law
103-66; 107 Stat. 377) <<NOTE: 29 USC 1144.>> is amended
by striking ``subsection (b)(7)(D)'' and inserting
``subsection (b)(7)''.
(ii) Section 514(b)(7) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1144(b)(7)) is
amended by striking ``enforced by'' and inserting ``they
apply to''.
(iii) Section 609(a)(2)(B)(ii) of such Act (29
U.S.C. 1169(a)(2)(B)(ii)) is amended by striking
``enforces'' and inserting ``is made pursuant to''.
(B) Child defined.--Section 609(a)(2) of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1169(a)(2)) is amended by adding at the end the
following:
``(D) Child.--The term `child' includes any child
adopted by, or placed for adoption with, a participant
of a group health plan.''.
(C) <<NOTE: 29 USC 1144 note.>> Effective date.--The
amendments made by subparagraph (A) shall be effective
as if included in the enactment of section 4301(c)(4)(A)
of the Omnibus Budget Reconciliation Act of 1993.
(3) Amendment related to public law 105-33.--
(A) In general.--Section 609(a)(9) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1169(a)(9)) is amended by striking ``the name and
address'' and inserting ``the address''.
(B) <<NOTE: 29 USC 1169 note.>> Effective date.--The
amendment made by subparagraph (A) shall be effective as
if included in the enactment of section 5611(b) of the
Balanced Budget Act of 1997.
SEC. 402. SAFEGUARD OF NEW EMPLOYEE INFORMATION.
(a) Penalty for Unauthorized Access, Disclosure, or Use of
Information.--Section 453(l) of the Social Security Act (42 U.S.C.
653(l)) is amended--
(1) by striking ``Information'' and inserting the following:
[[Page 112 STAT. 669]]
``(1) In general.--Information''; and
(2) by adding at the end the following:
``(2) Penalty for misuse of information in the national
directory of new hires.--The Secretary shall require the
imposition of an administrative penalty (up to and including
dismissal from employment), and a fine of $1,000, for each act
of unauthorized access to, disclosure of, or use of, information
in the National Directory of New Hires established under
subsection (i) by any officer or employee of the United States
who knowingly and willfully violates this paragraph.''.
(b) Limits on Retention of Data in the National Directory of New
Hires.--Section 453(i)(2) of such Act (42 U.S.C. 653(i)(2)) is amended
to read as follows:
``(2) Data entry and deletion requirements.--
``(A) In general.--Information provided pursuant to
section 453A(g)(2) shall be entered into the data base
maintained by the National Directory of New Hires within
two business days after receipt, and shall be deleted
from the data base 24 months after the date of entry.
``(B) 12-month limit on access to wage and
unemployment compensation information.--The Secretary
shall not have access for child support enforcement
purposes to information in the National Directory of New
Hires that is provided pursuant to section
453A(g)(2)(B), if 12 months has elapsed since the date
the information is so provided and there has not been a
match resulting from the use of such information in any
information comparison under this subsection.
``(C) Retention of data for research purposes.--
Notwithstanding subparagraphs (A) and (B), the Secretary
may retain such samples of data entered in the National
Directory of New Hires as the Secretary may find
necessary to assist in carrying out subsection (
j)(5).''.
(c) <<NOTE: Deadline. 42 USC 653 note.>> Notice of Purposes for
Which Wage and Salary Data are to be Used.--Within 90 days after the
date of the enactment of this Act, the Secretary of Health and Human
Services shall notify the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate of the
specific purposes for which the new hire and the wage and unemployment
compensation information in the National Directory of New Hires is to be
used. At least 30 days before such information is to be used for a
purpose not specified in the notice provided pursuant to the preceding
sentence, the Secretary shall notify the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of the Senate
of such purpose.
(d) <<NOTE: Deadline. 42 USC 653 note.>> Report by the Secretary.--
Within 3 years after the date of the enactment of this Act, the
Secretary of Health and Human Services shall submit to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate a report on the accuracy of the data maintained by
the National Directory of New Hires pursuant to section 453(i) of the
Social Security Act, and the effectiveness of the procedures designed to
provide for the security of such data.
(e) <<NOTE: 42 USC 653 note.>> Effective Date.--The amendments made
by this section shall take effect on October 1, 2000.
[[Page 112 STAT. 670]]
SEC. 403. <<NOTE: Grants.>> LIMITATIONS ON USE OF TANF FUNDS FOR
MATCHING UNDER CERTAIN FEDERAL TRANSPORTATION PROGRAM.
(a) In General.--Section 404 of the Social Security Act (42 U.S.C.
604) is amended by adding at the end the following:
``(k) Limitations on Use of Grant for Matching Under Certain Federal
Transportation Program.--
``(1) Use limitations.--A State to which a grant is made
under section 403 may not use any part of the grant to match
funds made available under section 3037 of the Transportation
Equity Act for the 21st Century, unless--
``(A) the grant is used for new or expanded
transportation services (and not for construction) that
benefit individuals described in subparagraph (C), and
not to subsidize current operating costs;
``(B) the grant is used to supplement and not
supplant other State expenditures on transportation;
``(C) the preponderance of the benefits derived from
such use of the grant accrues to individuals who are--
``(i) recipients of assistance under the State
program funded under this part;
``(ii) former recipients of such assistance;
``(iii) noncustodial parents who are described
in item (aa) or (bb) of section
403(a)(5)(C)(ii)(II); and
``(iv) low-income individuals who are at risk
of qualifying for such assistance; and
``(D) the services provided through such use of the
grant promote the ability of such recipients to engage
in work activities (as defined in section 407(d)).
``(2) Amount limitation.--From a grant made to a State under
section 403(a), the amount that a State uses to match funds
described in paragraph (1) of this subsection shall not exceed
the amount (if any) by which 30 percent of the total amount of
the grant exceeds the amount (if any) of the grant that is used
by the State to carry out any State program described in
subsection (d)(1) of this section.
``(3) Rule of interpretation.--The provision by a State of a
transportation benefit under a program conducted under section
3037 of the Transportation Equity Act for the 21st Century, to
an individual who is not otherwise a recipient of assistance
under the State program funded under this part, using funds from
a grant made under section 403(a) of this Act, shall not be
considered to be the provision of assistance to the individual
under the State program funded under this part.''.
(b) <<NOTE: Deadline. 49 USC 5309 note.>> Report to the Congress.--
Not later than 2 years after the date of the enactment of this Act, the
Secretary of Transportation, in consultation with the Secretary of
Health and Human Services, shall submit to the Committees on Ways and
Means and on Transportation and Infrastructure of the House of
Representatives and the Committees on Finance and on Environment and
Public Works of the Senate a report that--
(1) describes the manner in which funds made available under
section 3037 of the Transportation Equity Act for the 21st
Century have been used;
(2) describes whether such uses of such funds has improved
transportation services for low-income individuals; and
[[Page 112 STAT. 671]]
(3) contains such other relevant information as may be
appropriate.
SEC. 404. CLARIFICATION OF MEANING OF HIGH-VOLUME AUTOMATED
ADMINISTRATIVE ENFORCEMENT OF CHILD SUPPORT IN INTERSTATE
CASES.
(a) In General.--Section 466(a)(14)(B) of the Social Security Act
(42 U.S.C. 666(a)(14)(B)) is amended to read as follows:
``(B) High-volume automated administrative
enforcement.--In this part, the term `high-volume
automated administrative enforcement', in interstate
cases, means, on request of another State, the
identification by a State, through automated data
matches with financial institutions and other entities
where assets may be found, of assets owned by persons
who owe child support in other States, and the seizure
of such assets by the State, through levy or other
appropriate processes.''.
(b) <<NOTE: 42 USC 666 note.>> Retroactivity.--The amendment made by
subsection (a) shall take effect as if included in the enactment of
section 5550 of the Balanced Budget Act of 1997 (Public Law 105-33; 111
Stat. 633).
SEC. 405. <<NOTE: Deadlines.>> GENERAL ACCOUNTING OFFICE REPORTS.
(a) Report On Feasibility of Instant Check System.--Not later than
December 31, 1998, the Comptroller General of the United States shall
report to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives on the feasibility and
cost of creating and maintaining a nationwide instant child support
order check system under which an employer would be able to determine
whether a newly hired employee is required to provide support under a
child support order.
(b) Report On Implementation and Use of Child Support Databases.--
Not later than December 31, 1998, the Comptroller General of the United
States shall report to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives on the
implementation of the Federal Parent Locater Service (including the
Federal Case Registry of Child Support Orders and the National Directory
of New Hires) established under section 453 of the Social Security Act
(42 U.S.C. 653) and the State Directory of New Hires established under
section 453A of such Act (42 U.S.C. 653a). The report shall include a
detailed discussion of the purposes for which, and the manner in which,
the information maintained in such databases has been used, and an
examination as to whether such databases are subject to adequate
safeguards to protect the privacy of the individuals with respect to
whom information is reported and maintained.
SEC. 406. DATA MATCHING BY MULTISTATE FINANCIAL INSTITUTIONS.
(a) Use of Federal Parent Locator Service.--Section 466(a)(17)(A)(i)
of the Social Security Act (42 U.S.C. 666(a)(17)(A)(i)) is amended by
inserting ``and the Federal Parent Locator Service in the case of
financial institutions doing business in two or more States,'' before
``a data match system''.
(b) Facilitation of Agreements.--Section 452 of such Act (42 U.S.C.
652) is amended by adding at the end the following:
``(l) The Secretary, through the Federal Parent Locator Service, may
aid State agencies providing services under State programs
[[Page 112 STAT. 672]]
operated pursuant to this part and financial institutions doing business
in two or more States in reaching agreements regarding the receipt from
such institutions, and the transfer to the State agencies, of
information that may be provided pursuant to section 466(a)(17)(A)(i),
except that any State that, as of the date of the enactment of this
subsection, is conducting data matches pursuant to section
466(a)(17)(A)(i) shall have until January 1, 2000, to allow the
Secretary to obtain such information from such institutions that are
operating in the State. For purposes of section 1113(d) of the Right to
Financial Privacy Act of 1978, a disclosure pursuant to this subsection
shall be considered a disclosure pursuant to a Federal statute.''.
(c) Protection Against Liability.--Section 469A(a) of such Act (42
U.S.C. 669a(a)) is amended by inserting ``, or for disclosing any such
record to the Federal Parent Locator Service pursuant to section
466(a)(17)(A)'' before the period.
SEC. 407. ELIMINATION OF UNNECESSARY DATA REPORTING.
(a) In General.--Section 469 of the Social Security Act (42 U.S.C.
669) is amended--
(1) by striking all that precedes subsection (c) and
inserting the following:
``SEC. 469. COLLECTION AND REPORTING OF CHILD SUPPORT ENFORCEMENT DATA.
``(a) In General.--With respect to each type of service described in
subsection (b), the Secretary shall collect and maintain up-to-date
statistics, by State, and on a fiscal year basis, on--
``(1) the number of cases in the caseload of the State
agency administering the plan approved under this part in which
the service is needed; and
``(2) the number of such cases in which the service has
actually been provided.
``(b) Types of Services.--The statistics required by subsection (a)
shall be separately stated with respect to paternity establishment
services and child support obligation establishment services.
``(c) Types of Service Recipients.--The statistics required by
subsection (a) shall be separately stated with respect to--
``(1) recipients of assistance under a State program funded
under part A or of payments or services under a State plan
approved under part E; and
``(2) individuals who are not such recipients.''; and
(2) in subsection (c), by striking ``(c)'' and inserting
``(d) Rule of Interpretation.--''.
(b) Conforming Amendment.--Section 452(a)(10) of such Act (42 U.S.C.
652(a)(10)) is amended--
(1) by adding ``and'' at the end of subparagraph (H); and
(2) by striking subparagraph (I) and redesignating
subparagraph (J) as subparagraph (I).
(c) <<NOTE: Applicability. 42 USC 652 note.>> Effective Date.--The
amendments made by this section shall apply to information maintained
with respect to fiscal year 1995 or any succeeding fiscal year.
SEC. 408. CLARIFICATION OF ELIGIBILITY UNDER WELFARE-TO-WORK PROGRAMS.
Section 403(a)(5)(C)(ii) of the Social Security Act (42 U.S.C.
603(a)(5)(C)(ii)) is amended--
[[Page 112 STAT. 673]]
(1) in the matter preceding subclause (I) by striking ``of
minors whose custodial parent is such a recipient'';
(2) in subclause (I), by inserting ``or the noncustodial
parent'' after ``recipient''; and
(3) in subclause (II), by striking ``The individual--'' and
inserting ``The recipient or the minor children of the non-
custodial parent--''.
SEC. 409. STUDY OF FEASIBILITY OF IMPLEMENTING IMMIGRATION PROVISIONS OF
H.R. 3130, AS PASSED BY THE HOUSE OF REPRESENTATIVES ON
MARCH 5, 1998.
(a) Study.--The Secretary of Health and Human Services, in
consultation with the Immigration and Naturalization Service, shall
conduct a study to determine the feasibility of the provisions of title
V of H.R. 3130, as passed by the House of Representatives on March 5,
1998, were such provisions to become law, especially whether it would be
feasible for the Immigration and Naturalization Service to implement
effectively the requirements of such provisions.
(b) <<NOTE: Deadline.>> Report to the Congress.--Within 6 months
after the date of the enactment of this Act, the Secretary of Health and
Human Services shall submit to the Committees on Ways and Means and on
the Judiciary of the House of Representatives and the Committees on
Finance and on the Judiciary of the Senate a report on the results of
the study required by subsection (a).
SEC. 410. TECHNICAL CORRECTIONS.
(a) Section 413(g)(1) of the Social Security Act (42 U.S.C.
613(g)(1)) is amended by striking ``Economic and Educational
Opportunities'' and inserting ``Education and the Workforce''.
(b) Section 422(b)(2) of the Social Security Act (42 U.S.C.
622(b)(2)) is amended by striking ``under under'' and inserting
``under''.
(c) <<NOTE: 42 USC 629b.>> Section 432(a)(8) of the Social Security
Act (42 U.S.C. 632(a)(8)) is amended by adding ``; and'' at the end.
(d) Section 453(a)(2) of the Social Security Act (42 U.S.C.
653(a)(2)) is amended--
(1) by striking ``parentage,'' and inserting ``parentage
or'';
(2) by striking ``or making or enforcing child custody or
visitation orders,''; and
(3) in subparagraph (A), by decreasing the indentation of
clause (iv) by 2 ems.
(e)(1) <<NOTE: Effective dates.>> Section 5557(b) of the Balanced
Budget Act of 1997 (42 U.S.C. 608 note) is amended by adding at the end
the following: ``The amendment made by section 5536(1)(A) shall not take
effect with respect to a State until October 1, 2000, or such earlier
date as the State may select.''.
(2) <<NOTE: 42 USC 608 note.>> The amendment made by paragraph (1)
shall take effect as if included in the enactment of section 5557 of the
Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat. 637).
(f ) Section 473A(c)(2)(B) of the Social Security Act (42 U.S.C.
673b(c)(2)(B)) is amended--
(1) by striking ``November 30, 1997'' and inserting ``April
30, 1998''; and
(2) by striking ``March 1, 1998'' and inserting ``July 1,
1998''.
[[Page 112 STAT. 674]]
(g) Section 474(a) of the Social Security Act (42 U.S.C. 674(a)) is
amended by striking ``(subject to the limitations imposed by subsection
(b))''.
(h) Section 232 of the Social Security Act Amendments of 1994 (42
U.S.C. 1314a) is amended--
(1) in subsection (b)(3)(D), by striking ``Energy and''; and
(2) in subsection (d)(4), by striking ``(b)(3)(C)'' and
inserting ``(b)(3)''.
Approved July 16, 1998.
LEGISLATIVE HISTORY--H.R. 3130:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 105-422 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 144 (1998):
Mar. 5, considered and passed House.
Apr. 2, considered and passed Senate, amended.
June 25, House concurred in Senate amendments with
amendments.
June 26, Senate concurred in House amendments.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
July 16, Presidential statement.
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