[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR305.35]

[Page 278-279]
 
                        TITLE 45--PUBLIC WELFARE
 
    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
 
PART 305_PROGRAM PERFORMANCE MEASURES, STANDARDS, FINANCIAL INCENTIVES, 
AND PENALTIES--Table of Contents
 
Sec. 305.35  Reinvestment.

    (a) A State must expend the full amount of incentive payments 
received under this part to supplement, and not supplant, other funds 
used by the State to carry out IV-D program activities or funds for 
other activities approved by the Secretary which may contribute to 
improving the effectiveness or efficiency of the State's IV-D program, 
including cost-effective contracts with local agencies, whether or not 
the expenditures for the activity are eligible for reimbursement under 
this part.
    (b) In those States in which incentive payments are passed through 
to political subdivisions or localities, such payments must be used in 
accordance with this section.
    (c) State IV-D expenditures may not be reduced as a result of the 
receipt and reinvestment of incentive payments.
    (d) A base amount will be determined by subtracting the amount of 
incentive funds received and reinvested in the State IV-D program for 
fiscal year 1998 from the total amount expended by the State in the IV-D 
program during the same period. Alternatively, States have an option of 
using the average amount of the previous three fiscal years (1996, 1997, 
and 1998) as a base amount. This base amount of State spending must be 
maintained in future years. Incentive payments under this

[[Page 279]]

part must be used in addition to, and not in lieu of, the base amount.
    (e) Requests for approval of expending incentives on activities not 
currently eligible for funding under the IV-D program, but which would 
benefit the IV-D program, must be submitted in accordance with 
instructions issued by the Commissioner of the Office of Child Support 
Enforcement.