Sec. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS
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## SEC. 302 DISTRIBUTION OF CHILD SUPPORT COLLECTIONS ###
(a)In General Section 457 (42 U.S.C. 657) is amended to read as follows: > > ## “SEC. 457 DISTRIBUTION OF COLLECTED SUPPORT > > > ### “(a) In General > > Subject to subsection (e), an amount collected on behalf of a family as support by a State pursuant to a plan approved under this part shall be distributed as follows: > > > #### “(1) Families receiving assistance > > In the case of a family receiving assistance from the State, the State shall— > > > ##### “(A) > > pay to the Federal Government the Federal share of the amount so collected; and > > > ##### “(B) > > retain, or distribute to the family, the State share of the amount so collected. > > > #### “(2) Families that formerly received assistance > > In the case of a family that formerly received assistance from the State: > > > ##### “(A) Current support payments > > To the extent that the amount so collected does not exceed the amount required to be paid to the family for the month in which collected, the State shall distribute the amount so collected to the family. > > > ##### “(B) Payments of arrearages > > To the extent that the amount so collected exceeds the amount required to be paid to the family for the month in which collected, the State shall distribute the amount so collected as follows: > > > ###### “(i) Distribution of arrearages that accrued after the family ceased to receive assistance > > > ###### “(I) Pre-october 1997 > > Except as provided in subclause (II), the provisions of this section (other than subsection (b)(1)) as in effect and applied on the day before the date of the enactment of section 302 of the Personal Responsibility and Work Opportunity Act Reconciliation of 1996 shall apply with respect to the distribution of support arrearages that— > > > ###### “(aa) > > accrued after the family ceased to receive assistance, and > > > ###### “(bb) > > are collected before October 1, 1997. > > > ###### “(II) Post-september 1997 > > With respect to the amount so collected on or after October 1, 1997 (or before such date, at the option of the State)— > > > ###### “(aa) In general > > The State shall first distribute the amount so collected (other than any amount described in clause (iv)) to the family to the extent necessary to satisfy any support arrearages with respect to the family that accrued after the family ceased to receive assistance from the State. > > > ###### “(bb) Reimbursement of governments for assistance provided to the family > > After the application of division
(aa)and clause (ii)(II)(aa) with respect to the amount so collected, the State shall retain the State share of the amount so collected, and pay to the Federal Government the Federal share (as defined in subsection (c)(2)) of the amount so collected, but only to the extent necessary to reimburse amounts paid to the family as assistance by the State. > > > ###### “(cc) Distribution of the remainder to the family > > To the extent that neither division
(aa)nor division
(bb)applies to the amount so collected, the State shall distribute the amount to the family. > > > ###### “(ii) Distribution of arrearages that accrued before the family received assistance > > > ###### “(I) Pre-october 2000 > > Except as provided in subclause (II), the provisions of this section (other than subsection (b)(1)) as in effect and applied on the day before the date of the enactment of section 302 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 shall apply with respect to the distribution of support arrearages that— > > > ###### “(aa) > > accrued before the family received assistance, and > > > ###### “(bb) > > are collected before October 1, 2000. > > > ###### “(II) Post-september 2000 > > Unless, based on the report required by paragraph (4), the Congress determines otherwise, with respect to the amount so collected on or after October 1, 2000 (or before such date, at the option of the State)— > > > ###### “(aa) In general > > The State shall first distribute the amount so collected (other than any amount described in clause (iv)) to the family to the extent necessary to satisfy any support arrearages with respect to the family that accrued before the family received assistance from the State. > > > ###### “(bb) Reimbursement of governments for assistance provided to the family > > After the application of clause (i)(II)(aa) and division
(aa)with respect to the amount so collected, the State shall retain the State share of the amount so collected, and pay to the Federal Government the Federal share (as defined in subsection (c)(2)) of the amount so collected, but only to the extent necessary to reimburse amounts paid to the family as assistance by the State. > > > ###### “(cc) Distribution of the remainder to the family > > To the extent that neither division
(aa)nor division
(bb)applies to the amount so collected, the State shall distribute the amount to the family. > > > ###### “(iii) Distribution of arrearages that accrued while the family received assistance > > In the case of a family described in this subparagraph, the provisions of paragraph
(1)shall apply with respect to the distribution of support arrearages that accrued while the family received assistance. > > > ###### “(iv) Amounts collected pursuant to section 464 > > Notwithstanding any other provision of this section, any amount of support collected pursuant to section 464 shall be retained by the State to the extent past-due support has been assigned to the State as a condition of receiving assistance from the State, up to the amount necessary to reimburse the State for amounts paid to the family as assistance by the State. The State shall pay to the Federal Government the Federal share of the amounts so retained. To the extent the amount collected pursuant to section 464 exceeds the amount so retained, the State shall distribute the excess to the family. > > > ###### “(v) Ordering rules for distributions > > For purposes of this subparagraph, unless an earlier effective date is required by this section, effective October 1, 2000, the State shall treat any support arrearages collected, except for amounts collected pursuant to section 464, as accruing in the following order: > > > ###### “(I) > > To the period after the family ceased to receive assistance. > > > ###### “(II) > > To the period before the family received assistance. > > > ###### “(III) > > To the period while the family was receiving assistance. > > > #### “(3) Families that never received assistance > > In the case of any other family, the State shall distribute the amount so collected to the family. > > > #### “(4) Families under certain agreements > > In the case of a family receiving assistance from an Indian tribe, distribute the amount so collected pursuant to an agreement entered into pursuant to a State plan under section 454(33). > > > #### “(5) Study and report > > Not later than October 1, 1998, the Secretary shall report to the Congress the Secretary's findings with respect to— > > > ##### “(A) > > whether the distribution of post-assistance arrearages to families has been effective in moving people off of welfare and keeping them off of welfare; > > > ##### “(B) > > whether early implementation of a pre-assistance arrearage program by some States has been effective in moving people off of welfare and keeping them off of welfare; > > > ##### “(C) > > what the overall impact has been of the amendments made by the Personal Responsibility and Work Opportunity Act of 1996 with respect to child support enforcement in moving people off of welfare and keeping them off of welfare; and > > > ##### “(D) > > based on the information and data the Secretary has obtained, what changes, if any, should be made in the policies related to the distribution of child support arrearages. > > > ### “(b) Continuation of Assignments > > Any rights to support obligations, which were assigned to a State as a condition of receiving assistance from the State under part A and which were in effect on the day before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996, shall remain assigned after such date. > > > ### “(c) Definitions > > As used in subsection (a): > > > #### “(1) Assistance > > The term ‘**assistance from the State**’ means— > > > ##### “(A) > > assistance under the State program funded under part A or under the State plan approved under part A of this title (as in effect on the day before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996); and > > > ##### “(B) > > foster care maintenance payments under the State plan approved under part E of this title. > > > #### “(2) Federal share > > The term ‘**Federal share**’ means that portion of the amount collected resulting from the application of the Federal medical assistance percentage in effect for the fiscal year in which the amount is collected. > > > #### “(3) Federal medical assistance percentage > > The term ‘**Federal medical assistance percentage**’ means— > > > ##### “(A) > > the Federal medical assistance percentage (as defined in section 1118), in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa; or > > > ##### “(B) > > the Federal medical assistance percentage (as defined in section 1905(b), as in effect on September 30, 1996) in the case of any other State. > > > #### “(4) State share > > The term ‘**State share**’ means 100 percent minus the Federal share. > > > ### “(d) Hold Harmless Provision > > If the amounts collected which could be retained by the State in the fiscal year (to the extent necessary to reimburse the State for amounts paid to families as assistance by the State) are less than the State share of the amounts collected in fiscal year 1995 (determined in accordance with section 457 as in effect on the day before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996), the State share for the fiscal year shall be an amount equal to the State share in fiscal year 1995. > > > ### “(e) Gap Payments Not Subject to Distribution Under This Section > > At State option, this section shall not apply to any amount collected on behalf of a family as support by the State (and paid to the family in addition to the amount of assistance otherwise payable to the family) pursuant to a plan approved under this part if such amount would have been paid to the family by the State under section 402(a)(28), as in effect and applied on the day before the date of the enactment of section 302 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. For purposes of subsection (d), the State share of such amount paid to the family shall be considered amounts which could be retained by the State if such payments were reported by the State as part of the State share of amounts collected in fiscal year 1995.” > . ###
(b)Conforming Amendments ####
(1)Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by striking “section 457(b)(4) or (d)(3)” and inserting “section 457”. ####
(2)Section 454 (42 U.S.C. 654) is amended— #####
(A)in paragraph (11)— ######
(i)by striking “(11)” and inserting “(11)(A)”; and ######
(ii)by inserting after the semicolon “and”; and #####
(B)by redesignating paragraph
(12)as subparagraph
(B)of paragraph (11). ###
(c)Effective Dates **[**[42 U.S.C. 657 note](/us/usc/t42/s657)**]** ####
(1)In General Except as provided in paragraph (2), the amendments made by this section shall be effective on October 1, 1996, or earlier at the State's option. ####
(2)Conforming amendments The amendments made by subsection (b)(2) shall become effective on the date of the enactment of this Act.
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