Good morning, Mr. Chairman and members of the Subcommittee. My name is Nick Young and I am the Director of the Virginia Department of Social Services' Division of Child Support Enforcement. I am also a Board member of the National Child Support Enforcement Association , and I bring greetings from both the Commonwealth of Virginia and the Association. I am very pleased to be here this morning and honored to have been invited to testify.

The subject for this morning, which I shall address from Virginia's perspective, is the impact of the "Personal Responsibility and Work Opportunities Act of 1996" (PRWORA), commonly referred to as the "welfare reform act", on child support enforcement. Virginia's effort to implement welfare reform, under the direction of my boss, Clarence H. Carter, Commissioner of the Department of Social Services, has resulted in a reduction of Virginia's public welfare rolls of 48%!

I believe it important to note that while this landmark legislation is referred to as a welfare reform bill, included in it was the most comprehensive revision and reform of the child support enforcement in the entire history of the federal/state child support program. Indeed, some 90 pages of the Act addressed child support enforcement.

Virginia's experiences in what we feel may be the most substantial support enforcement issues included in PRWORA are what I come to share with you this morning. Space limitations preclude greater comments. Virginia is referred to as an "administrative" state for child support. Essentially, we are statutorily empowered to administer all facets of child support enforcement that the courts handle. Our administration is statewide, rather than the individual county model used in some states.

National and State Case Registries: PRWORA required that both individual states and the federal Office of Child Support Enforcement (OCSE) establish case registries of all support enforcement cases. Fortunately, Virginia already had a state case register in place due to its established automated case management system. However, we did not have in our case registry the court support orders, which we estimate to be more than 50% of all orders in the state.

A bigger impact for Virginia has been the establishment of the federal case registry (FCR.) This has proven to be of substantial assistance for us, establishing the means of collecting that court information prospectively, as PRWORA required. It has also provided for automation of certain support enforcement activities. We anticipate substantial impacts from the Federal Case Registry, as authorized by PRWORA.

State Disbursement Unit: Again, Virginia was fortunate in having in place a centralized, state disbursement unit. We have made necessary changes such that for the ninth consecutive month (through August, 1999), Virginia has achieved a payment processing rate of 99.98 % within a 48-hour time frame and an overall year-to-date average of almost 85%. In order to ensure even better delivery of child support funds, Virginia offers automated direct deposit to child support enforcement customers in an effort to make funds available to custodial parents faster, decrease paperwork, and eliminate lost and stolen checks. Of course, the overall impact is that faster disbursements of child support payments means better service to our customers and fewer calls to employers.

Full statewide inception of this initiative began in the fall, 1998. To date, nearly 18,000 active direct deposits cases representing 25% of all payments to customers are made via direct deposit. The Commonwealth realizes a savings of approximately eleven cents per customer per payment. Prospective customers are routinely reminded of the availability of this service via payment stubs included in their child support payments.

National and State Directories of New Hire (NDNH & SDNH): Virginia had a New Hire program established several years before PRWORA was approved, e.g. we already had a state directory of new hires. Virginia has also done considerable work with the family violence indicator including using the State Police Protective Order file and highlighting in red on our automated system those individual cases who's indicator is set.

Perhaps a very positive example of the National Directory of New Hire, authorized under PRWORA, was experienced just last month in Virginia with the recent conviction by a federal judge in Richmond, Virginia of a California noncustodial father. Through the use of information resulting from the NDNH, we were able to locate, have arrested and extradite from northern California who owed more than $50,000 in child support. This man was the first person charged and convicted in Virginia for crossing state lines and failing to pay child support as ordered. Sentencing is anticipated shortly by the federal judge.

The number of Virginia new hire reports has increased from 1,076,000 in SFY94 to 1,739,000 in SFY99. The number of cases matched in 1994 was 79,000; in 1999, the number rose to 97,000. Estimated annual collections from the State (Virginia) Directory of New Hires is $7.5 million; from the National Directory of New Hires, the number we collect an additional $13 million annually. PRWORA has had a most positive impact in the collection of child support with its requirements for these two directories.

Employer information on our system is now automatically updated based on new hire information received. To locate employers, Virginia now has the capability of inquiry by Federal Employer Identification Number.

We are now receiving and processing NDNH data. On a state basis, from more than 1.7 million new hires in the Commonwealth in SFY99, we had 97,000 that matched cases with unpaid child support, a match rate of 5.6%. Since its inception in Virginia in 1993, approximately $43 million has been collected as a direct result of our in-state new hire reporting.

Income Withholding: Virginia had an employer income withholding system in place prior to the passage of PRWORA. Our time frames were quicker than those of PRWORA. Virginia law expects the employer to forward the income withholding on each payday; no delays accepted. Therefore, in this area, we chose not to make any changes since our system is even more effective and obtains support monies more quickly.

Certainly, we have worked with the employer community to educate them on the PRWORA requirements for employers, including the concurrent notice of the income withholding via the employer. We believe the PRWORA expanded definition of "income" has been very helpful in accessing more of the total resources available for the support of children.

The PRWORA requirement that all monies be sent directly to directly to DCSE ensures the best record of payments and reducing conflicts. Perhaps the most important authority related to income withholding relates to our ability to transmit the income withholding orders to the employers electronically. This definitely expedites the flow of support money to the custodial parent and child/ren. We currently generate income withholding orders automatically and electronically, without worker intervention. This releases staff time to work other areas of enforcement.

Virginia DCSE expects to issue 52,000 income withholding orders annually based on new hire information (referenced in above section.) Income withholding collections are expected to increase from $206 million in 1998 to $241 million in 2000.

As another result of PRWORA, in October, 1998, Virginia began implementation of electronic income withholding by adding the new federal withholding form on-line. In April, 1999, the phase-in of automatic issuance of income withholding orders began. Less worker (manual) issuance of withholding orders is expected to result in savings of $424,000 per year.

Expedited Procedures: Virginia had many of the expedited procedures authorized by PRWORA in place due to our being an administrative process state (e.g., subpoena power and access to public agencies and many private agencies.) PRWORA's authorization added many new ones, including access to subscriber data of cable television companies, ability to attach workers compensation lump sum payments, access to all private companies customer data, with penalties for failure to comply. We have been very careful to use these new, expanded data sources appropriately, limiting our use only to locate putative fathers and/or noncustodial parents who owe child support. We have stringent requirements for our staff on the use of this expanded information access, understanding the trust which has been placed with support enforcement agencies.

Administrative Paternity: PRWORA mandated that a signed voluntary acknowledgment of paternity be considered a legal finding of paternity if not rescinded by a party within 60 days. However, the rescission period terminates prior to the expiration of 60 days if an administrative or judicial proceeding relating to the child in which the signatory if a party occurs. The advantage of this procedure is the "finality" created by the signing of a paternity acknowledgment. If paternity is contested beyond the rescission period, the hearing must be in court, and will be heard only on the basis of fraud, duress or material mistake of fact.

Another benefit of PRWORA is the mandate that any party contesting original genetic test results must provide advance payment prior to additional testing (a savings for the state).

The Act also mandated that both parents signing a paternity acknowledgment must be provided an oral (as well as written) explanation of their rights and responsibilities. This is one more measure to ensure, to the fullest extent possible, that both parties understand the significance and importance of their actions.

PRWORA provided states the ability to administratively order genetic testing, another time and money saver. Previously only the court had the authority to do so. The Act mandates led to a much-improved working relationship with the Virginia Dept. of Health's Office of Vital Records & Health Statistics (OVR&HS). Mandates regarding access to certain information and increased use of automation led to the establishment of the Electronic Birth Query System

(EBQS), a process by which selected DCSE staff have on-line access to paternity information stored at OVR&HS. The two agencies have worked very closely over the past 2 years to ensure that paternity acknowledgments are properly completed, filed and recorded. In addition, OVR&HS has made death file records information available to DCSE for match purposes to identify NCPs who have died.

Financial Institution Data Match (FIDM): All states began receiving information from the initial matches between multi-state financial institutions and OCSE last month, August 1999. This information is the result of matching child support files from the federal tax offset tapes with accounts from multi-state financial institutions. The primary purpose of the match data is to freeze and seize funds from financial accounts of delinquent child support obligors. Virginia already had such a system in place, using what we call an Order to Withhold and Deliver (OWD), however the difficulty has been in identification of the location of the delinquent obligor's assets.

Upon receipt of information that a delinquent obligor indeed has assets, our enforcement specialists are able to issue an OWD so these funds can be applied towards the delinquent child support owed. It is important to note this is not done to any noncustodial parent without allowing them due process. Due process is built into the system. While we have only one month's experience with these data matches, initial observations are this will become a most significant resource in enforcing support orders of the egregiously delinquent obligors. This may become one of PRWORA's most important tools in addressing delinquent child support obligors.

Distribution of Child Support Collections (included "family first" distribution and elimination of federal financial share of $50 disregard): Virginia opted to implement the "family first" distribution of child support payments effective October 1, 1998. This has been a contributing factor in the steady decline in the TANF caseload. With the "family first" distribution, our estimate is as much as $600,000 a month would be sent to the family instead of the State. Virginia's General Assembly opted to continue the payment of $50 pass-through (disregards) to the custodial parents receiving Temporary Assistance for Needy Families (TANF) despite the elimination of the federal share. Under the new distribution rules, the State bears the full burden of pass-through payments to the custodial parents. The cost to the State of paying the disregards to the custodial parents was $4.8 million in FY98 and $3.7 million in FY99. We estimate this cost to decline over time.

Suspension of Licenses: Virginia passed a driver's license suspension law in 1995, a year prior to PRWORA. The Division of Child Support Enforcement worked closely with the Department of Motor Vehicles in implementing the program. Much of the process is automated. Since 1995, a total of $51 million dollars has been collected as a result of the driver's license suspension program. Without question, PRWORA's inclusion of license suspension has made this important enforcement tool more acceptable in many portions of the legislative and administrative bodies.

Virginia's General Assembly approved accompanying legislation addressing professional/occupational licenses and recreational licenses. We have been forced to move more slowly in to these areas due to an absences of centralized, automated data bases available to us in the various agencies and licensing organizations for these purposes. We do anticipate substantial collections as we proceed to gain access to automated databases of holders of these various licenses. Our desire is not to suspend any parent's licenses, but to get child support payments started and ongoing. To support the driver's license suspension, the General Assembly approved legislation that requires, pending license suspension, the parent to pay the support debt or enter into a payment agreement that requires the greater of 5% of the debt or $500, with the debt to be totally paid of in no more than ten years.

Automated Data Processing - Certified System: Virginia's automated system was unconditionally certified under the Family Support Act of 1988. We were also one of the first two state systems certified by OCSE. PRWORA includes extensive automation requirements. Virginia has already implemented the majority of these requirements. I must acknowledge the substantial challenge of implementing PRWORA's ADP requirements to implement all child support aspects of the Act has and continues to stretch our resources and has been most expensive.

UIFSA: Virginia implemented UIFSA in July 1994 and as a result of PRWORA requirements, implemented amendments to UIFSA statutes in July 1997. PRWORA required the use of standardized forms for working interstate cases. Using these standardized forms has eliminated confusion and improved on problems in interstate cases. PRWORA added time frames for acting when one state is responding to another state's request to enforce a support order. This has enhanced the timeliness of information available to Virginia's child support workers when working interstate cases.

Access to Locator Information from DMV and Law Enforcement: With PRWORA authority, we now periodically conduct an automated match with Virginia State Police's Concealed Weapons Permit and Computerized Criminal History files for location of putative fathers and noncustodial parents.

Privacy Safeguards: In Virginia the Family Violence Indicator (FVI) is set with either the existence of a protective order or the signing of an Affidavit of Nondisclosure based on reason to fear physical or emotional harm. A quarterly automated match is conducted with the State Police Protective Order file. Our automated system now has the capability of highlighting information in red, if the FVI is set.

KidsFirst Campaign: As a result of the passage of PRWORA, we in Virginia saw a renewed goal for the most active and stringent efforts to collect child support for Virginia's children. PRWORA became the impetus for a program we call KidsFirst. Space limits me to simply a few examples of this program. The Virginia KidsFirst Campaign has netted $70 million from the Commonwealth's most egregious child support evaders as of September 1999. When we started out, we viewed the Campaign as just one more tool with which to arm our workers--one more way to get the attention of delinquent noncustodial parents (NCPs). We certainly didn't anticipate that this lone initiative would reap such a mushrooming response.

After a two-week "amnesty" where delinquent noncustodial parents were promised that if they came to DCSE offices and worked out an acceptable payment agreement, no legal efforts which could place them in jail would be attempted. That was followed by what we call "roundups." In a given geographic area, delinquent cases are identified, summons and warrants are prepared. Then DCSE staff work with cooperating local law enforcement officials to round up delinquent NCPs with outstanding capias warrants and to issue new warrants to many others

These roundups are usually picked up by major news sources and widely publicized through a gubernatorial press conference that included several real-life vignettes. One of these stories centered on sheriff's deputies who had to forcibly extricate a delinquent NCP from his home. When captured on film by the press, the father, handcuffed from behind, was wearing a "World's Greatest Dad" tee shirt. The statement this lone picture made to the public requires no explanation.

To date, we have held five roundups resulting in $70 million of collections and even more continuing as a result of payment agreements from other obligors who saw their friends picked up by law enforcement officers. Over four hundred evaders have been arrested.

Our third round up in November 1997 introduced a new tool to encourage delinquent NCPs to pay up--boots. Boots are steel mechanisms that attach to a car wheel, making it impossible to drive until the driver complies with authorities' direction. In Virginia, this direction took the form of settling the child support debt or making a payment agreement. Using pink (for daughters) and blue (for sons) boots--along with a bright fluorescent windshield sticker that explains the reason the boot has been used, has proven to be an additional way to get the attention of child support evaders.

Virginia law enforcement officials have been extremely receptive to the use of boots as it negates the cost of holding someone in jail or towing a car and paying storage fees. Our booting of cars is not aimed at denigrating offenders, but to get their attention and have them do the right thing. Some people really value their cars and will want that thing off as soon as possible. . .it has a built-in shame factor. The boots cost approximately $350 apiece and are stenciled with an appropriate message; Each Virginia boot has "Property of Child Support Enforcement" printed on it.

Virginia's DCSE plans future round ups. Vigorous enforcement measures are available to DCSE through a cooperative agreement among the Virginia Attorney General's Office, the Virginia State Police, each of the sheriffs in each Virginia county, as well as each Commonwealth's Attorney in the 127 counties and cities of Virginia.

In conclusion, PRWORA has served as an effective catalyst for the most comprehensive revisions to Virginia's Child Support Enforcement program in its 25 year history. PRWORA'S comprehensive elements fully support Virginia's determination to clearly communicate society's lack of tolerance for those who fail in their responsibility to financially support their children.