FOR IMMEDIATE RELEASE:
Wednesday, March 15, 1995
Contact: Michael Kharfen (202) 401-9215
SURVEY MEASURES SUCCESS OF STATE LICENSE REVOCATION PROGRAMS
HHS Secretary Donna E. Shalala today released a review of the success
of 19 state programs that revoke professional and commercial licenses,
as well as drivers licenses, from non-custodial parents who fail to
pay child support.
According to the review, the threat
of license revocation has raised nearly $35 million in just nine states
which have collection statistics. HHS estimates that license revocation
could increase total child support collections by as much as $2.5
billion over 10 years.
"States have proven that the mere
threat of revoking a drivers or occupational license can be very successful
in collecting support for children," said Secretary Shalala. "The
threat is particularly effective against self-employed parents whose
wages can't be garnished."
In addition to potential increases in
child support collections, the Congressional Budget Office estimates
that the federal government could save $146 million in welfare payments
for the first five years as a result of a nationwide license revocation
program. The reduced welfare spending would occur because increased
child support payments would offset welfare payments made to families
and help low-income women and children get off the welfare rolls.
According to the HHS survey, the 19
states are experimenting with different combinations of license revocation.
Eighteen states threaten to revoke or suspend professional licenses.
Drivers licenses can be revoked by seven states. Several factors trigger
states to invoke license revocation, including the period the non-custodial
parent is delinquent in payments or the amount owed in arrears.
In Maine, the threat of license suspension
helped the state collect more than $23 million since August 1993. The
technique was so successful that only 41 licenses were actually revoked.
"I am pleased that the Ways and
Means Committee has included many of the President's child support enforcement
provisions in its legislation," said Secretary Shalala. "However,
it is outrageous that the bill does not include license revocation.
This is an effective, appropriate and necessary tool for assuring that
millions of children get the support they desperately need."
Shalala said that to be successful,
child support enforcement efforts must include measures to establish
paternity, get child support awards in place, update them periodically
and collect them when they are owed. The current legislation approved
by the House committees added features of the President's child support
enforcement plan, such as a national child support data bank to track
delinquent parents across state lines, centralized state registries
to keep track of child support orders and payments, uniform interstate
child support enforcement laws, and expanded wage withholding.
One significant provision is missing,
the secretary said. The Ways and Means Committee majority refused on
a tie vote to include license revocation in its welfare reform bill.
Many members of Congress of both parties have now joined President
Clinton in urging that the provision be added, Secretary Shalala said.
The 19 states are Arizona, Arkansas,
California, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Massachusetts,
Minnesota, Montana, Nevada, Oklahoma, Oregon, Pennsylvania, South Dakota,
Vermont and Virginia. Most are implemented. Several
states are now proposing legislation for the program.
###
Note: All HHS press releases, fact sheets and other press materials
are available at http://www.hhs.gov/news.
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