
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC658]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
 SUBCHAPTER IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES 
              WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
 
          Part D--Child Support and Establishment of Paternity
 
Sec. 658. Incentive payments to States


(a) Purpose; requirement; quarterly payments

    In order to encourage and reward State child support enforcement 
programs which perform in a cost-effective and efficient manner to 
secure support for all children who have sought assistance in securing 
support, whether such children reside within the State or elsewhere and 
whether or not they are eligible for assistance under a program funded 
under part A of this subchapter, and regardless of the economic 
circumstances of their parents, the Secretary shall, from support 
collected which would otherwise represent the Federal share of 
assistance to families of noncustodial parents, pay to each State for 
each fiscal year, on a quarterly basis (as described in subsection (e) 
of this section) beginning with the quarter commencing October 1, 1985, 
an incentive payment in an amount determined under subsection (b) of 
this section.

(b) Incentive formula

    (1) Except as provided in paragraphs (2), (3), and (4), the 
incentive payment shall be equal to--
        (A) 6 percent of the total amount of support collected under the 
    plan during the fiscal year in cases in which the support obligation 
    involved is assigned to the State pursuant to section 608(a)(4) of 
    this title or section 671(a)(17) of this title (with such total 
    amount for any fiscal year being hereafter referred to in this 
    section as the State's ``title IV-A collections'' for that year), 
    plus
        (B) 6 percent of the total amount of support collected during 
    the fiscal year in all other cases under this part (with such total 
    amount for any fiscal year being hereafter referred to in this 
    section as the State's ``non-title IV-A collections'' for that 
    year).

    (2) If subsection (c) of this section applies with respect to a 
State's title IV-A collections or non-title IV-A collections for any 
fiscal year, the percent specified in paragraph (1)(A) or (B) (with 
respect to such collections) shall be increased to the higher percent 
determined under such subsection (with respect to such collections) in 
determining the State's incentive payment under this subsection for that 
year.
    (3) The dollar amount of the portion of the State's incentive 
payment for any fiscal year which is determined on the basis of its non-
title IV-A collections under paragraph (1)(B) (after adjustment under 
subsection (c) of this section if applicable) shall in no case exceed--
        (A) the dollar amount of the portion of such payment which is 
    determined on the basis of its title IV-A collections under 
    paragraph (1)(A) (after adjustment under subsection (c) of this 
    section if applicable) in the case of fiscal year 1986 or 1987;
        (B) 105 percent of such dollar amount in the case of fiscal year 
    1988;
        (C) 110 percent of such dollar amount in the case of fiscal year 
    1989; or
        (D) 115 percent of such dollar amount in the case of fiscal year 
    1990 or any fiscal year thereafter.

    (4) The Secretary shall make such additional payments to the State 
under this part, for fiscal year 1986 or 1987, as may be necessary to 
assure that the total amount of payments under this section and section 
655(a)(1)(A) of this title for such fiscal year is no less than 80 
percent of the amount that would have been payable to that State and its 
political subdivisions for such fiscal year under this section and 
section 655(a)(1)(A) of this title if those sections (including the 
amendment made by section 5(c)(2)(A) of the Child Support Enforcement 
Amendments of 1984) had remained in effect as they were in effect for 
fiscal year 1985.

(c) Increase in percentage; laboratory costs

    If the total amount of a State's title IV-A collections or non-title 
IV-A collections for any fiscal year bears a ratio to the total amount 
expended by the State in that year for the operation of its plan 
approved under section 654 of this title for which payment may be made 
under section 655 of this title (with the total amount so expended in 
any fiscal year being hereafter referred to in this section as the 
State's ``combined title IV-A/non-title IV-A administrative costs'' for 
that year) which is equal to or greater than 1.4, the relevant percent 
specified in subparagraph (A) or (B) of subsection (b)(1) of this 
section (with respect to such collections) shall be increased to--
        (1) 6.5 percent, plus
        (2) one-half of 1 percent for each full two-tenths by which such 
    ratio exceeds 1.4;

except that the percent so specified shall in no event be increased (for 
either title IV-A collections or non-title IV-A collections) to more 
than 10 percent. For purposes of the preceding sentence, laboratory 
costs incurred in determining paternity in any fiscal year may at the 
option of the State be excluded from the State's combined title IV-A/
non-title IV-A administrative costs for that year.

(d) Support collected on behalf of individuals residing in another State

    In computing incentive payments under this section, support which is 
collected by one State at the request of another State, including 
amounts collected under section 666(a)(14) of this title, shall be 
treated as having been collected in full by each such State, and any 
amounts expended by the State in carrying out a special project assisted 
under section 655(e) of this title shall be excluded.

(e) Estimates by Secretary; quarterly payments

    The amounts of the incentive payments to be made to the various 
States under this section for any fiscal year shall be estimated by the 
Secretary at or before the beginning of such year on the basis of the 
best information available. The Secretary shall make such payments for 
such year, on a quarterly basis (with each quarterly payment being made 
no later than the beginning of the quarter involved), in the amounts so 
estimated, reduced or increased to the extent of any 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 
shall be deemed obligated.

(Aug. 14, 1935, ch. 531, title IV, Sec. 458, as added Pub. L. 93-647, 
Sec. 101(a), Jan. 4, 1975, 88 Stat. 2357; amended Pub. L. 95-30, title 
V, Sec. 503(a), May 23, 1977, 91 Stat. 162; Pub. L. 96-272, title III, 
Sec. 307, June 17, 1980, 94 Stat. 531; Pub. L. 97-248, title I, 
Sec. 174(c), Sept. 3, 1982, 96 Stat. 403; Pub. L. 98-378, Sec. 5(a), 
(c)(2)(A), Aug. 16, 1984, 98 Stat. 1312, 1314; Pub. L. 99-514, title 
XVIII, Sec. 1883(b)(7), Oct. 22, 1986, 100 Stat. 2917; Pub. L. 100-485, 
title I, Sec. 127, Oct. 13, 1988, 102 Stat. 2355; Pub. L. 104-193, title 
III, Secs. 341(a), formerly 341(b), 395(d)(1)(F), Aug. 22, 1996, 110 
Stat. 2231, 2259; Pub. L. 105-33, title V, Sec. 5550(b), Aug. 5, 1997, 
111 Stat. 634; Pub. L. 105-200, title II, Sec. 201(e)(1)(A), July 16, 
1998, 112 Stat. 657.)

                            Repeal of Section

        Pub. L. 105-200, title II, Sec. 201(f)(1), (3), July 16, 1998, 
    112 Stat. 657, 658, provided that, effective Oct. 1, 2001, this 
    section is repealed.

                       References in Text

    Part A of this subchapter, referred to in subsec. (a), is classified 
to section 601 et seq. of this title.
    Title IV-A, referred to in subsecs. (b) and (c), means part A of 
title IV of act Aug. 14, 1935, ch. 531, which is classified generally to 
part A (Sec. 601 et seq.) of this subchapter.
    Section 5(c)(2)(A) of the Child Support Enforcement Amendments of 
1984, referred to in subsec. (b)(4), is section 5(c)(2)(A) of Pub. L. 
98-378, which amended subsec. (a) of this section. See 1984 Amendment 
note below.


                               Amendments

    1998--Subsecs. (a) to (c). Pub. L. 105-200, Sec. 201(e)(1)(A), 
amended Pub. L. 104-193, Sec. 341(b). See 1996 Amendment notes below.
    1997--Subsec. (d). Pub. L. 105-33 inserted ``, including amounts 
collected under section 666(a)(14) of this title,'' after ``another 
State''.
    1996--Subsec. (a). Pub. L. 104-193, Sec. 395(d)(1)(F), substituted 
``noncustodial parents'' for ``absent parents''.
    Pub. L. 104-193, Sec. 341(a)(1), formerly Sec. 341(b)(1), as 
redesignated by Pub. L. 105-200, Sec. 201(e)(1)(A), substituted 
``assistance under a program funded under part A of this subchapter'' 
for ``aid to families with dependent children under a State plan 
approved under part A of this subchapter''.
    Subsec. (b). Pub. L. 104-193, Sec. 341(a)(3), formerly 
Sec. 341(b)(3), as redesignated by Pub. L. 105-200, Sec. 201(e)(1)(A), 
substituted ``title IV-A collections'' for ``AFDC collections'' and 
``non-title IV-A collections'' for ``non-AFDC collections'', wherever 
appearing.
    Subsec. (b)(1)(A). Pub. L. 104-193, Sec. 341(a)(2), formerly 
Sec. 341(b)(2), as redesignated by Pub. L. 105-200, Sec. 201(e)(1)(A), 
substituted ``section 608(a)(4)'' for ``section 602(a)(26)''.
    Subsec. (c). Pub. L. 104-193, Sec. 341(a)(3), (4), formerly 
Sec. 341(b)(3), (4), as redesignated by Pub. L. 105-200, 
Sec. 201(e)(1)(A), substituted ``title IV-A collections'' for ``AFDC 
collections'' in two places, ``non-title IV-A collections'' for ``non-
AFDC collections'' in two places, and ``combined title IV-A/non-title 
IV-A administrative costs'' for ``combined AFDC/non-AFDC administrative 
costs'' in two places.
    1988--Subsec. (d). Pub. L. 100-485 inserted provision that any 
amounts expended by the State in carrying out a special project assisted 
under section 655(e) of this title shall be excluded.
    1986--Subsec. (d). Pub. L. 99-514 substituted ``at the request of'' 
for ``on behalf of individuals residing in''.
    1984--Subsec. (a). Pub. L. 98-378, Sec. 5(a), in amending subsec. 
(a) generally, substituted general provisions relating to payments to 
States to encourage and reward State child support enforcement programs 
which perform in a cost-effective and efficient manner for provisions 
which required payment to States and localities making enforcement and 
collection of support rights assigned under section 602(a)(26) of this 
title.
    Pub. L. 98-378, Sec. 5(c)(2)(A), temporarily substituted 
``distributed as provided in paragraphs (1), (2), and (4)(A) of section 
657(b) of this title'' for ``distributed as provided in section 657 of 
this title to reduce or repay assistance payments''. See Effective and 
Termination Dates of 1984 Amendment note below.
    Subsec. (b). Pub. L. 98-378, Sec. 5(a), in amending subsec. (b) 
generally, substituted provisions relating to an incentive formula for 
payments under this section for provisions relating to the allocation of 
payments among jurisdictions involved in enforcement or collection under 
this section.
    Subsec. (c). Pub. L. 98-378, Sec. 5(a), in amending subsec. (c) 
generally, substituted provisions relating to an increase in percentages 
of payments under this section and relating to laboratory costs for 
provisions relating to collection and distribution in accordance with a 
State plan approved under section 654 of this title.
    Subsecs. (d), (e). Pub. L. 98-378, Sec. 5(a), in amending section 
generally, added subsecs. (d) and (e).
    1982--Subsec. (a). Pub. L. 97-248 substituted ``12 percent'' for 
``15 per centum''.
    1980--Subsec. (a). Pub. L. 96-272, Sec. 307(b), inserted provisions 
for a State to make enforcement and collection of support rights on its 
own behalf.
    Subsec. (c). Pub. L. 96-272, Sec. 307(c), added subsec. (c).
    1977--Subsec. (a). Pub. L. 95-30, Sec. 503(a)(1), altered formula 
for arriving at amount to be paid for enforcement and collection of 
assigned support rights by substituting a formula calling for an amount 
equal to 15 per centum of any amount collected and required to be 
distributed as provided in section 657 of this title to reduce or repay 
assistance payments for a formula calling for an amount equal to 25 per 
centum of any amount collected (and required to be distributed as 
provided in section 657 of this title to reduce or repay assistance 
payments) attributable to the support obligation owed for 12 months and 
an amount equal to 10 per centum of any amount collected (and required 
to be distributed as provided in section 657 of this title to reduce or 
repay assistance payments) attributable to the support obligation owed 
for any month after the first twelve months for which such collections 
were made.
    Subsec. (b). Pub. L. 95-30, Sec. 503(a)(2), substituted ``determined 
under subsection (a) of this section'' for ``determined under paragraphs 
(1) and (2) of subsection (a) of this section''.


                    Effective Date of 1998 Amendment

    Amendment by section 201(e)(1)(A) of Pub. L. 105-200 effective as if 
included in the enactment of section 341 of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996, Pub. L. 104-193, see 
section 201(e)(2) of Pub. L. 105-200, set out as a note under section 
652 of this title.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 effective as if included in the 
enactment of title III of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996, Pub. L. 104-193, see section 
5557 of Pub. L. 105-33, set out as a note under section 608 of this 
title.


                    Effective Date of 1996 Amendment

    Pub. L. 104-193, title III, Sec. 341(c)(1), formerly Sec. 341(d)(1), 
Aug. 22, 1996, 110 Stat. 2233, as redesignated and amended by Pub. L. 
105-200, title II, Sec. 201(e)(1)(A), (B)(i), July 16, 1998, 112 Stat. 
657, provided that: ``The amendments made by subsection (a) of this 
section [amending 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 [July 1, 1997; see 
section 116 of Pub. L. 104-193, set out as an Effective Date note under 
section 601 of this title].''
    For provisions relating to effective date of title III of Pub. L. 
104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a note 
under section 654 of this title.


            Effective and Termination Dates of 1984 Amendment

    Section 5(c)(1) of Pub. L. 98-378 provided that: ``The amendments 
made by the preceding provisions of this section [amending this section 
and section 654 of this title] shall become effective on October 1, 
1985.''
    Section 5(c)(2)(A) of Pub. L. 98-378 provided that the amendment 
made by such section 5(c)(2)(A) is effective until Sept. 30, 1985.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-248 applicable with respect to amounts 
collected on or after Oct. 1, 1983, see section 174(d) of Pub. L. 97-
248, set out as a note under section 655 of this title.


                    Effective Date of 1977 Amendment

    Section 503(b) of Pub. L. 95-30 provided that: ``The amendments made 
by subsection (a) [amending this section] shall be applicable with 
respect to amounts collected on and after October 1, 1977.''


                   Development of New Incentive System

    Pub. L. 104-193, title III, Sec. 341(a), Aug. 22, 1996, 110 Stat. 
2231, required that Secretary of Health and Human Services, in 
consultation with State directors, develop new incentive system under 
this section that would provide additional payments to States based on 
performance and report to Congress no later than Mar. 1, 1997, prior to 
repeal by Pub. L. 105-200, title II, Sec. 201(e)(1)(A), July 16, 1998, 
112 Stat. 657.


        Construction of Reference to Section 657(b) of This Title

    Section 5(c)(2)(B) of Pub. L. 98-378 provided that: ``The reference 
to provisions of section 457(b) of the Social Security Act [section 
657(b) of this title] in the amendment made by subparagraph (A) of this 
paragraph [amending this section] is a reference to such provisions as 
in effect after the effective date of section 2640(b) of the Deficit 
Reduction Act of 1984 [effective date of section 2640(b) of Pub. L. 98-
369, Oct. 1, 1984].''

                  Section Referred to in Other Sections

    This section is referred to in sections 652, 654, 654a, 655 of this 
title; title 2 section 906.
