DISTRIBUTION OF COLLECTED SUPPORT.

SEC. 5632. DISTRIBUTION OF COLLECTED SUPPORT. (a) Continuation of Assignments.—Section 457(b) (42 U.S.C. 657(b)) is amended— (1) by striking “which were assigned” and inserting “assigned”; and (2) by striking “and which were in effect” and all that follows and inserting “and in effect on September 30, 1997 (or such earlier date, on or after August 22, 1996, as the State may choose), shall remain assigned after such date.”. (b) State Option for Applicability.— (1) In general.—Section 457(a) (42 U.S.C. 657(a)) is amended by adding at the end the following: “(6) State option for applicability.—Notwithstanding any other provision of this subsection, a State may elect to apply the rules described in clauses (i)(II), (ii)(II), and (v) of paragraph (2)(B) to support arrearages collected on and after October 1, 1998, and, if the State makes such an election, shall apply the provisions of this section, as in effect and applied on the day before the date of enactment of section 302 of the Personal Responsibility and Work Opportunity Act of 1996 (Public Law 104–193, 110 Stat. 2200), other than subsection (b)(1) (as so in effect), to amounts collected before October 1, 1998”. (2) Conforming amendments.—Section 408(a)(3)(A) (42 U.S.C. 608(a)(3)(A)) is amended— (A) in clause (i), by inserting “(I)” after “(i)”; (B) in clause (ii)— (i) by striking “(ii)” and inserting “(II)”; and (ii) by striking the period and inserting “; or”; and (C) by adding at the end the following: “(ii) if the State elects to distribute collections under section 457(a)(6), the date the family ceases to receive assistance under the program, if the assignment is executed on or after October 1, 1998.”. (c) Distribution of Collections With Respect to Families Receiving Assistance.—Section 457(a)(1) (42 U.S.C. 657(a)(1)) is amended by adding at the end the following flush language: “In no event shall the total of the amounts paid to the Federal Government and retained by the State exceed the total of the amounts that have been paid to the family as assistance by the State.”. (d) Families Under Certain Agreements.—Section 457(a)(4) (42 U.S.C. 657(a)(4)) is amended to read as follows: “(4) Families under certain agreements.—In the case of an amount collected for a family in accordance with a cooperative agreement under section 454(33), distribute the amount so collected pursuant to the terms of the agreement.”. (e) Study and Report.—Section 457(a)(5) (42 U.S.C. 657(a)(5)) is amended by striking “1998” and inserting “1999”. (f) Corrections of References.—Section 457(a)(2)(B) (42 U.S.C. 657(a)(2)(B)) is amended— (1) in clauses (i)(I) and (ii)(I)—111 STAT. 627 (A) by striking “(other than subsection (b)(1))” each place it appears; and (B) by inserting “(other than subsection (b)(1) (as so in effect))” after “1996” each place it appears; and (2) in clause (ii)(II), by striking “paragraph (4)” and inserting “paragraph (5)”. (g) Correction of Territorial Match.—Section 457(c)(3)(A) (42 U.S.C. 657(C)(3)(A)) is amended by striking “the Federal medical assistance percentage (as defined in section 1118)” and inserting “75 percent”. (h) Definitions.— (1) Federal share.—Section 457(c)(2) (42 U.S.C. 657(c)(2)) is amended by striking “collected” the second place it appears and inserting “distributed”. (2) Federal medical assistance percentage.—Section 457(C)(3)(B) (42 U.S.C. 657(c)(3)(B)) is amended by striking “as in effect on September 30, 1996” and inserting “as such section was in effect on September 30, 1995”. (i) Conforming Amendments.— (1) Section 464(a)(2)(A) (42 U.S.C. 664(a)(2)(A)) is amended, in the penultimate sentence, by inserting “in accordance with section 457” after “owed”. (2) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking “457(b)(4) or (d)(3)” and inserting “457”.