Authority: Title 63.1, Chapters 13 and 14, Code of Virginia; Title 20, Chapter 9, Code of Virginia; P.L. 104-193, Federal Code, as amended.

A. Any net revenue from child support enforcement collections, after all disbursements are made in accordance with state and federal statutes and regulations, and after the state's share of the cost of administering the program is paid, shall be estimated and deposited into the general fund by June 30 of the fiscal year in which it is collected. Any additional monies determined to be available upon final determination of a fiscal year's costs of administering the program shall be deposited to the general fund by September 1 of the subsequent fiscal year in which it is collected. The Department shall expand collections of child support payments through contracts with private agencies.

B. In determining eligibility and amounts for cash assistance, pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law Number 104-193, the Department shall continue to disregard up to $50 per month in child support payments, and return to recipients of cash assistance up to $50 per month in child support payments collected on their behalf.

C. Amounts disbursed to recipients of cash assistance pursuant to paragraph B of this Item shall be considered part of the Commonwealth's required Maintenance of Effort spending for the federal Temporary Assistance for Needy Families program established by the Social Security Act.

D. Included in the amounts for Support Enforcement and Collections Services are $306,000 from the general fund and $594,000 from nongeneral funds the first year and $476,000 from the general fund and $924,000 from nongeneral funds the second year to purchase interactive voice response services for Child Support Enforcement offices. The general fund amount shall be unallotted by the Department of Planning and Budget (DPB). The Department of Social Services (DSS) shall submit to DPB any Request for Proposals or other solicitation document for concurrence or suggestions. Upon review of vendor proposals, DSS shall prepare and submit to DPB a cost-benefit analysis and recommendations. DPB shall determine whether resources are available to fund the preferred vendor proposal(s). The general fund amount shall be allotted if DPB determines that resources are available and the selected vendor proposal is cost-effective.

E. The Department of Social Services and the Office of the Attorney General shall not contract with any private collection agency, private attorney, or other private entity for any child support enforcement activity until the State Board of Social Services has made a written determination that the activity shall be performed under a proposed contract at a lower cost than if performed by employees of the Commonwealth. Pursuant to Senate Bill 289, the Department and the Office of the Attorney General shall each submit a written report, on July 1, 1998, and annually thereafter, to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees, with a detailed summary and evaluation of the privatization of child support enforcement activities.

F. As a condition of the appropriation for this item, the Department shall prepare a detailed plan for its phase two modifications to the Automated Program to Enforce Child Support system, including steps needed to re-engineer the system and the extent to which the plan complies with federal government requirements for reimbursement. The Department shall report its plan to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by October 15, 1998.