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A Brief Look at the Welfare Reform Bill
prepared by the Federal Office of Child Support Enforcement
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104 193--welfare reform), signed into law by President Clinton on August 22, 1996, contains comprehensive child support enforcement (CSE) provisions. This article highlights a few of those and summarizes as well other aspects of the bill that may be of interest to CSE staff. Future issues of CSR will continue coverage of the CSE parts of the welfare reform legislation.
The new law includes the most sweeping child support enforcement measures in history.
The new law includes the most sweeping child support enforcement measures in history--measures which could increase child support collections by $24 billion and reduce federal welfare costs by $4 billion over 10 years. "If every parent paid the child support that he or she owes legally today, we could move 800,000 women and children off welfare immediately," the President said upon signing the bill.

Under welfare reform, each state must operate a child support enforcement program which meets federal requirements, including:

A national new hire reporting system

The law establishes a Federal Case Registry and National Directory of New Hires to track delinquent parents across state lines. It requires that employers report all new hires to state agencies for transmittal of new hire information to the National Directory. Also, it simplifies procedures for direct withholding of child support from wages.

A streamlined system for establishing paternity

Under welfare reform it will be easier and faster to establish paternities. The voluntary in hospital paternity establishment program is strengthened. States must publicize the availability of and encourage the use of voluntary paternity establishment processes. Those persons who fail to cooperate in establishing paternity will have their monthly cash assistance reduced by at least 25 percent.

Uniform interstate child support laws

The new law provides for uniform rules, procedures, and forms for interstate cases. States which have not already adopted the Uniform Interstate Family Support Act (UIFSA) are required to do so by January 1, 1998.

Computerized state wide collections

States are required to establish central registries of child support orders and centralized collection and disbursement units. Also required: expedited state procedures for enforcement of child support.

Tough new penalties

States can implement strict child support enforcement techniques. The new law expands wage garnishment and allows states to seize assets and, in some cases, to require community service. States also are empowered to revoke drivers and professional licenses for parents who owe delinquent child support.

"Families First"

Under a new "Family First" policy, families no longer receiving assistance will have priority in the distribution of child support arrears. This new policy will bring families who have left welfare for work about $1 billion in support over the first six years. In addition, the $50 pass through is eliminated October 1, 1996.

Access and visitation programs

In an effort to increase noncustodial parents' involvement in their children's lives, the new law includes grants to help states establish programs that support and facilitate noncustodial parents' visitation with and access to their children.

Teen measures

In addition to its child support enforcement provisions, the welfare reform legislation contains other requirements of importance to the child support community. In order to receive assistance, unmarried minor parents are required to live with a responsible adult or in an adult supervised setting and participate in educational and training activities. The Secretary of the Department of Health and Human Services is directed to establish and implement a strategy to prevent nonmarital teen births and assure th at at least 25 percent of communities have teen pregnancy prevention programs.

Other provisions

The law seeks to assist recipients of welfare in transitioning to work. With few exceptions, recipients must work after two years on assistance, while those who have received assistance for a total of five years (less at state option) will be ineligible for cash aid. But single parents with a child under age six who are unable to find child care cannot be penalized for failure to meet the work requirement. And women on welfare continue to receive health coverage for their families, including at least one ye ar of transitional Medicaid when they leave welfare for work.

State responsibilities include an initial assessment of recipients' job skills and maintenance of spending on welfare at a level of at least 80 percent of FY 1994's expenditures. To facilitate their efforts to provide work, states are allowed to create jobs by taking money now used for welfare checks and using it to create community service jobs.



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