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Foster Care Independence Act of 1999

DCL-99-142

Published: December 22, 1999
Information About:
Other Public Partners, Foster Care (IV-E), State/Local Child Support Agencies
Topics:
Funding, Cost Recovery
Types:
Policy, Dear Colleague Letters (DCL), Statutes/Legislation
Tags:
Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)

TO:        ALL IV-D DIRECTORS

RE:        Foster Care Independence Act of 1999

Dear Colleague:

Attached is the relevant text of Public Law 106-169, "Foster Care Independence Act of 1999," as signed by President Clinton on December 14, 1999.

Sec 301 – Narrowing of Hold-Harmless Provision for State Share of Distribution of Collected Child Support

Section 457(d) of the Social Security Act (the Act), as added by the Personal Responsibility and Work Opportunity and Reconciliation Act of 1996, provided that States were eligible to receive a hold harmless payment if the amounts collected which could be retained by the State in the fiscal year (the State share of child support collections) were less than the State share of child support collections in FY1995.

Section 301 of Public Law 106-169, "Foster Care Independence Act of 1999," amended the hold harmless provision in section 457(d). Under the new provision, from October 1, 1998 to September 30, 2001, a State is eligible for a hold harmless payment equal to one-half of the difference between the State share of child support collections from the current fiscal year and the State share of child support collections from FY1995 if:

1.a State has distributed to families that include an adult receiving assistance under the program under part A at least 80 percent of the current support payments collected during the preceding fiscal year on behalf of such families, and the amounts distributed were disregarded in determining the amount or type of assistance provided under the program under part A; or,
2.the State has distributed to families that formerly received assistance under the program under part A the State share of the amounts collected pursuant to section 464 that could have been retained as reimbursement for assistance paid to such families.

States that fail to meet either of these criteria are no longer eligible for hold harmless payments.

Effective October 1, 2001, all hold harmless payments will be eliminated. The Office of Mandatory Grants will be issuing further guidance via Action Transmittal on the hold harmless payments under P.L. 106-169.

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Sec 401 – Technical Corrections Relating to Amendments Made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

I hope that you will take a look at the attached law and contact your regional office with any questions or concerns. As always, I thank you for your hard work and dedication in improving the lives of the children of America.

Sincerely,

David Gray Ross
Commissioner
Office of Child Support Enforcement