Final Rule: Incentive Payments to States and Political Subdivisions
Incentive Payments to States and Political Subdivisions
October 19, 1977
TO:STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS APPROVED UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT AND OTHER INTERESTED INDIVIDUALS
SUBJECT:Incentive Payments to States and Political Subdivisions
ATTACHMENT:Final regulation which changes the rate of incentive payments made to States and political subdivisions to a flat 15 percent rate. This regulation implements Section 503 of Public Law 95-30.
REGULATION: 45 CFR 302.52
EFFECTIVE: October 1, 1977
INQUIRIES TO: OCSE Regional Representatives
Office of Child Support Enforcement
TITLE 45 - Public Welfare
CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT ENFORCEMENT PROGRAM), DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
PART 302 - STATE PLAN REQUIREMENTS
Incentive Payments to Political Subdivisions and Other States
AGENCY: Office of Child Support Enforcement (OCSE), Department of Health, Education, and Welfare.
ACTION: Final rule.
SUMMARY: This amendment changes the rate at which incentives are paid to States and political subdivisions for child support collections used to reimburse welfare payments. These changes are made in order to implement amendments to section 458 of the Social Security Act, that were made by section 503 of the Tax Reduction and Simplification Act of 1977. This amendment simplifies the complex process of computing incentive payments at two different rates by adopting a flat 15 percent incentive rate.
EFFECTIVE DATED: October 1, 1977.
FOR FURTHER INFORMATION CONTACT:
Suzanne Duval, Office of Child Support Enforcement, 202-472-4510
SUPPLEMENTARY INFORMATION: Section 458 of the Social Security Act (42 U.S.C. 658) allows the States and political subdivisions to receive a percentage of those child support collections that are used to reimburse Aid to Families with Dependent Children payments. The rate was fixed at 25 percent for the first 12 months of obligations collected and 10 percent thereafter.
Section 503 of Pub. L. 95-30 eliminates the variable 25 and 10 percent rates and substitutes a flat 15 percent incentive rate. The flat rate provides an important benefit for both the States and the Department. The flat rate eliminates the process of computing which collections are eligible for the 25 percent rate and which are eligible for the 10 percent rate. This change will result in some reduction for the administrative cost burden on both Federal and State governments.
The Office of Child Support Enforcement finds that there is good cause to dispense with proposed rulemaking. Although several editorial changes have been made to improve the clarity of this regulation, the only substantive change is based on the specific statutory provision in section 503 of the Tax Reduction and Simplification Act of 1977 (Pub. L. 95-30) which leaves no room for alternative interpretations. This section prescribes thatthe rate to be used in determining incentive payments with respect to eligible collections shall be 15 percent. Also, prompt publication is necessary to ensure implementation of this change prior to its effective date.
45 CFR 302.52 is amended by revising the introductory paragraph and paragraph (a) and (b) to read as follows:
§ 302.52 Incentive Payments to States and political subdivisions.
The State plan shall provide that the IV-D agency will use the procedures and criteria set forth below in determining whether incentive payments must be made, the amount of these payments and the manner in which they are to be paid.
(a) Eligibility for incentives. The IV-D agency shall pay incentives to political subdivisions of the State or to another State when both of the requirements set forth below are met.
(1) The political subdivision (or a legal entity of the political subdivision, such as a Prosecuting or District Attorney or a Friend of the Court) or other State makes the enforcement and collection of the support rights assigned under § 232.11 of this title (either within or outside of the State making the enforcement and collection).
(2) The enforcement and collection of the assigned support rights are made pursuant to a State IV-D plan.
(b) Payment of incentives. The amount of the incentive payment shall be 15 percent of any amount collected and required to be retained to reimburse assistance payments under § 302.51(b)(2) or (4). The incentive payment shall be made out of amounts which would otherwise be paid to the Federal Government to reimburse its share of assistance payments.
* * * * *
(Sec. 1102, 49 Stat. 647 (42 U.S.C. 1202).)
(Catalog of Federal Domestic Assistance Program No. 13679, Child Support Enforcement Program.)
Note: - the Office of Child Support Enforcement has determined that this document does not require preparation of an Economic Impact Statement under Executive Order 11021 as amended by Executive Order 11949, and OMB Circular A-107.
Dated: September 2, 1977
Director, Office of Child Support Enforcement
Approved: October 1, 1977.
Joseph A. Califano, Jr.
Secretary of Health, Education and Welfare