Sec. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES
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## SEC. 341 PERFORMANCE-BASED INCENTIVES AND PENALTIES ###
(a)Conforming Amendments to Present System Section 458 (42 U.S.C. 658) is amended— ####
(1)in subsection (a), by striking “aid to families with dependent children under a State plan approved under part A of this title” and inserting “assistance under a program funded under part A”; ####
(2)in subsection (b)(1)(A), by striking “section 402(a)(26)” and inserting “section 408(a)(4)”; ####
(3)in subsections
(b)and (c)— #####
(A)by striking “AFDC collections” each place it appears and inserting “title IV–A collections”, and #####
(B)by striking “non-AFDC collections” each place it appears and inserting “non-title IV–A collections”; and ####
(4)in subsection (c), by striking “combined AFDC/non-AFDC administrative costs” both places it appears and inserting “combined title IV–A/non-title IV–A administrative costs”. ###
(b)Calculation of Paternity Establishment Percentage ####
(1)Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended by striking “75” and inserting “90”. ####
(2)Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended— #####
(A)by redesignating subparagraphs
(B)through
(E)as subparagraphs
(C)through (F), respectively, and by inserting after subparagraph
(A)the following new subparagraph: > > ##### “(B) > > for a State with a paternity establishment percentage of not less than 75 percent but less than 90 percent for such fiscal year, the paternity establishment percentage of the State for the immediately preceding fiscal year plus 2 percentage points;” > ; and #####
(B)by adding at the end the following new flush sentence:"In determining compliance under this section, a State may use as its paternity establishment percentage either the State's IV–D paternity establishment percentage (as defined in paragraph (2)(A)) or the State's statewide paternity establishment percentage (as defined in paragraph (2)(B)).”". ####
(3)Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended— #####
(A)in subparagraph (A)— ######
(i)in the matter preceding clause (i)— ######
(I)by striking “paternity establishment percentage” and inserting “IV–D paternity establishment percentage”; and ######
(II)by striking “(or all States, as the case may be)”; and ######
(ii)by striking “and” at the end; and #####
(B)by redesignating subparagraph
(B)as subparagraph
(C)and by inserting after subparagraph
(A)the following new subparagraph: > > ##### “(B) > > the term ‘**statewide paternity establishment percentage**’ means, with respect to a State for a fiscal year, the ratio (expressed as a percentage) that the total number of minor children— > > > ###### “(i) > > who have been born out of wedlock, and > > > ###### “(ii) > > the paternity of whom has been established or acknowledged during the fiscal year, > > bears to the total number of children born out of wedlock during the preceding fiscal year; and” > . ####
(4)Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended— #####
(A)by striking subparagraph
(A)and redesignating subparagraphs
(B)and
(C)as subparagraphs
(A)and (B), respectively; and #####
(B)in subparagraph
(A)(as so redesignated), by striking “the percentage of children born out-of-wedlock in a State” and inserting “the percentage of children in a State who are born out of wedlock or for whom support has not been established”. ###
(c)Effective Dates **[**[42 U.S.C. 652 note](/us/usc/t42/s652)**]** ####
(1)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. ####
(2)Penalty reductions The amendments made by subsection
(b)shall become effective with respect to calendar quarters beginning on or after the date of the enactment of this Act.
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