I

104TH CONGRESS

1ST SESSION H. R. 1214

To help children by reforming the Nation’s welfare system to promote work,

marriage, and personal responsibility.

IN THE HOUSE OF REPRESENTATIVES

MARCH 13, 1995

Mr. ARCHER (for himself, Mr. GOODLING, and Mr. ROBERTS) introduced the

following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committees on Economic and Educational Opportunities, Agriculture, Commerce, the Judiciary, National Security, and

Government Reform and Oversight, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions

as fall within the jurisdiction of the committee concerned

A BILL

To help children by reforming the Nation’s welfare system

to promote work, marriage, and personal responsibility.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Personal Responsibility

5 Act of 1995’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.
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TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 101. Block grants to States.

Sec. 102. Report on data processing.

Sec. 103. Transfers.

Sec. 104. Conforming amendments to the Social Security Act.

Sec. 105. Conforming amendments to other laws.

Sec. 106. Continued application of current standards under medicaid program.

Sec. 107. Effective date.

TITLE II—CHILD PROTECTION BLOCK GRANT PROGRAM

Sec. 201. Establishment of program.

Sec. 202. Conforming amendments.

Sec. 203. Continued application of current standards under medicaid program.

Sec. 204. Effective date.

TITLE III—BLOCK GRANTS FOR CHILD CARE AND FOR

NUTRITION ASSISTANCE

Subtitle A—Child Care Block Grants

Sec. 301. Amendments to the Child Care and Development Block Grant Act of

1990.

Sec. 302. Repeal of child care assistance authorized by Acts other than the Social Security Act.

Subtitle B—Family and School-Based Nutrition Block Grants

CHAPTER 1—FAMILY NUTRITION BLOCK GRANT PROGRAM

Sec. 321. Amendment to Child Nutrition Act of 1966.

CHAPTER 2—SCHOOL-BASED NUTRITION BLOCK GRANT PROGRAM

Sec. 341. Amendment to National School Lunch Act.

CHAPTER 3—MISCELLANEOUS PROVISIONS

Sec. 361. Repealers.

Subtitle C—Other Repealers and Conforming Amendments

Sec. 371. Amendments to laws relating to child protection block grant.

Subtitle D—Related Provisions

Sec. 381. Requirement that data relating to the incidence of poverty in the

United States be published at least every 2 years.

Sec. 382. Data on program participation and outcomes.

Subtitle E—General Effective Date; Preservation of Actions, Obligations, and

Rights

Sec. 391. Effective date.

Sec. 392. Application of amendments and repealers.

TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR

ALIENS
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Sec. 400. Statements of national policy concerning welfare and immigration.

Subtitle A—Eligibility for Federal Benefits Programs

Sec. 401. Ineligibility of illegal aliens for certain public benefits programs.

Sec. 402. Ineligibility of nonimmigrants for certain public benefits programs.

Sec. 403. Limited eligibility of immigrants for 5 specified Federal public benefits programs.

Sec. 404. Notification.

Subtitle B—Eligibility for State and Local Public Benefits Programs

Sec. 411. Ineligibility of illegal aliens for State and local public benefits programs.

Sec. 412. Ineligibility of nonimmigrants for State and local public benefits programs.

Sec. 413. State authority to limit eligibility of immigrants for State and local

means-tested public benefits programs.

Subtitle C—Attribution of Income and Affidavits of Support

Sec. 421. Attribution of sponsor’s income and resources to family-sponsored immigrants.

Sec. 422. Requirements for sponsor’s affidavit of support.

Subtitle D—General Provisions

Sec. 431. Definitions.

Sec. 432. Construction.

Subtitle E—Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

TITLE V—FOOD STAMP REFORM AND COMMODITY DISTRIBUTION

Sec. 501. Short title.

Subtitle A—Commodity Distribution Provisions

Sec. 511. Short title.

Sec. 512. Availability of commodities.

Sec. 513. State, local and private supplementation of commodities.

Sec. 514. State plan.

Sec. 515. Allocation of commodities to States.

Sec. 516. Priority system for State distribution of commodities.

Sec. 517. Initial processing costs.

Sec. 518. Assurances; anticipated use.

Sec. 519. Authorization of appropriations.

Sec. 520. Commodity supplemental food program.

Sec. 521. Commodities not income.

Sec. 522. Prohibition against certain State charges.

Sec. 523. Definitions.

Sec. 524. Regulations.

Sec. 525. Finality of determinations.

Sec. 526. Sale of commodities prohibited.

Sec. 527. Settlement and adjustment of claims.

Sec. 528. Repealers; amendments.
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Subtitle B—Simplification and Reform of Food Stamp Program

Sec. 531. Short title.

CHAPTER 1—SIMPLIFIED FOOD STAMP PROGRAM AND STATE ASSISTANCE

FOR NEEDY FAMILIES

Sec. 541. Establishment of simplified food stamp program.

Sec. 542. Simplified food stamp program.

Sec. 543. Conforming amendments.

CHAPTER 2—FOOD STAMP PROGRAM

Sec. 551. Thrifty food plan.

Sec. 552. Income deductions and energy assistance.

Sec. 553. Vehicle allowance.

Sec. 554. Work requirements.

Sec. 555. Comparable treatment of disqualified individuals.

Sec. 556. Encourage electronic benefit transfer systems.

Sec. 557. Value of minimum allotment.

Sec. 558. Initial month benefit determination.

Sec. 559. Improving food stamp program management.

Sec. 560. Work supplementation or support program.

Sec. 561. Obligations and allotments.

CHAPTER 3—PROGRAM INTEGRITY

Sec. 571. Authority to establish authorization periods.

Sec. 572. Condition precedent for approval of retail food stores and wholesale

food concerns.

Sec. 573. Waiting period for retailers that are denied approval to accept coupons.

Sec. 574. Disqualification of retail food stores and wholesale food concerns.

Sec. 575. Authority to suspend stores violating program requirements pending

administrative and judicial review.

Sec. 576. Criminal forfeiture.

Sec. 577. Expanded definition of ‘‘coupon’’.

Sec. 578. Doubled penalties for violating food stamp program requirements.

Sec. 579. Disqualification of convicted individuals.

Sec. 580. Claims collection.

Subtitle C—Effective Dates and Miscellaneous Provisions

Sec. 591. Effective dates.

Sec. 592. Sense of the congress.

Sec. 593. Deficit reduction.

TITLE VI—SUPPLEMENTAL SECURITY INCOME

Sec. 601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics.

Sec. 602. Supplemental security income benefits for disabled children.

Sec. 603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability.

Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, and

Guam under programs of aid to the aged, blind, or disabled.

Sec. 605. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.
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TITLE VII—CHILD SUPPORT

Sec. 700. References.

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 701. State obligation to provide child support enforcement services.

Sec. 702. Distribution of child support collections.

Sec. 703. Privacy safeguards.

Subtitle B—Locate and Case Tracking

Sec. 711. State case registry.

Sec. 712. Collection and disbursement of support payments.

Sec. 713. State directory of new hires.

Sec. 714. Amendments concerning income withholding.

Sec. 715. Locator information from interstate networks.

Sec. 716. Expansion of the Federal Parent Locator Service.

Sec. 717. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 721. Adoption of uniform State laws.

Sec. 722. Improvements to full faith and credit for child support orders.

Sec. 723. Administrative enforcement in interstate cases.

Sec. 724. Use of forms in interstate enforcement.

Sec. 725. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 731. State laws concerning paternity establishment.

Sec. 732. Outreach for voluntary paternity establishment.

Sec. 733. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 741. Federal matching payments.

Sec. 742. Performance-based incentives and penalties.

Sec. 743. Federal and State reviews and audits.

Sec. 744. Required reporting procedures.

Sec. 745. Automated data processing requirements.

Sec. 746. Technical assistance.

Sec. 747. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 751. Simplified process for review and adjustment of child support orders.

Sec. 752. Furnishing consumer reports for certain purposes relating to child

support.

Subtitle G—Enforcement of Support Orders

Sec. 761. Federal income tax refund offset.

Sec. 762. Authority to collect support from Federal employees.

Sec. 763. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 764. Voiding of fraudulent transfers.
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Sec. 765. Sense of the Congress that States should suspend drivers’, business,

and occupational licenses of persons owing past-due child support.

Sec. 766. Work requirement for persons owing past-due child support.

Sec. 767. Definition of support order.

Subtitle H—Medical Support

Sec. 771. Technical correction to ERISA definition of medical child support

order.

Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential

Parents

Sec. 781. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 791. Effective dates.

TITLE VIII—MISCELLANEOUS PROVISIONS

Sec. 801. Scoring.

Sec. 802. Provisions to encourage electronic benefit transfer systems.

1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE

3 FOR NEEDY FAMILIES

4 SEC. 101. BLOCK GRANTS TO STATES.

5 Title IV of the Social Security Act (42 U.S.C. 601

6 et seq.) is amended by striking part A, except sections

7 403(h) and 417, and inserting the following:

8 ‘‘PART A—BLOCK GRANTS TO STATES FOR

9 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

10 ‘‘SEC. 401. PURPOSE.

11 ‘‘The purpose of this part is to increase the flexibility

12 of States in operating a program designed to—

13 ‘‘(1) provide assistance to needy families so that

14 the children in such families may be cared for in

15 their homes or in the homes of relatives;
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1 ‘‘(2) end the dependence of needy parents on

2 government benefits by promoting work and mar3 riage; and

4 ‘‘(3) discourage out-of-wedlock births.

5 ‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.

6 ‘‘(a) IN GENERAL.—As used in this part, the term

7 ‘eligible State’ means, with respect to a fiscal year, a State

8 that, during the 3-year period immediately preceding the

9 fiscal year, has submitted to the Secretary a plan that in10 cludes the following:

11 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO12 GRAM.—A written document that outlines how the

13 State intends to do the following:

14 ‘‘(A) Conduct a program designed to—

15 ‘‘(i) provide cash benefits to needy

16 families with children; and

17 ‘‘(ii) provide parents of children in

18 such families with work experience, assist19 ance in finding employment, and other

20 work preparation activities and support

21 services that the State considers appro22 priate to enable such families to leave the

23 program and become self-sufficient.

24 ‘‘(B) Require at least 1 parent of a child

25 in any family which has received benefits for
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1 more than 24 months (whether or not consecu2 tive) under the program to engage in work ac3 tivities (as defined by the State).

4 ‘‘(C) Ensure that parents receiving assist5 ance under the program engage in work activi6 ties in accordance with section 404.

7 ‘‘(D) Treat interstate immigrants, if fami8 lies including such immigrants are to be treated

9 differently than other families.

10 ‘‘(E) Take such reasonable steps as the

11 State deems necessary to restrict the use and

12 disclosure of information about individuals and

13 families receiving benefits under the program.

14 ‘‘(F) Take actions to reduce the incidence

15 of out-of-wedlock births, which may include pro16 viding unmarried mothers and unmarried fa17 thers with services which will help them—

18 ‘‘(i) avoid subsequent pregnancies;

19 and

20 ‘‘(ii) provide adequate care to their

21 children.

22 ‘‘(G) Reduce teenage pregnancy, including

23 (at the option of the State) through the provi24 sion of education, counseling, and health serv25 ices to male and female teenagers.
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1 ‘‘(2) CERTIFICATION THAT THE STATE WILL

2 OPERATE A CHILD SUPPORT ENFORCEMENT PRO3 GRAM.—A certification by the Governor of the State

4 that, during the fiscal year, the State will operate a

5 child support enforcement program under the State

6 plan approved under part D, in a manner that com7 plies with the requirements of such part.

8 ‘‘(3) CERTIFICATION THAT THE STATE WILL

9 OPERATE A CHILD PROTECTION PROGRAM.—A cer10 tification by the Governor of the State that, during

11 the fiscal year, the State will operate a child protec12 tion program in accordance with part B, which in13 cludes a foster care program and an adoption assist14 ance program.

15 ‘‘(b) DETERMINATIONS.—The Secretary shall deter16 mine whether a plan submitted pursuant to subsection (a)

17 contains the material required by subsection (a).

18 ‘‘SEC. 403. PAYMENTS TO STATES.

19 ‘‘(a) ENTITLEMENTS.—

20 ‘‘(1) GRANTS FOR FAMILY ASSISTANCE.—

21 ‘‘(A) IN GENERAL.—Each eligible State

22 shall be entitled to receive from the Secretary

23 for each of fiscal years 1996, 1997, 1998,

24 1999, and 2000 a grant in an amount equal to
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1 the State family assistance grant for the fiscal

2 year.

3 ‘‘(B) GRANT INCREASED TO REWARD

4 STATES THAT REDUCE OUT-OF-WEDLOCK

5 BIRTHS.—The amount of the grant payable to

6 a State under subparagraph (A) for fiscal year

7 1998 or any succeeding fiscal year shall be in8 creased by—

9 ‘‘(i) 5 percent if the illegitimacy ratio

10 of the State for the fiscal year is at least

11 1 percentage point lower than the illegit12 imacy ratio of the State for fiscal year

13 1995; or

14 ‘‘(ii) 10 percent if the illegitimacy

15 ratio of the State for the fiscal year is at

16 least 2 percentage points lower than the il17 legitimacy ratio of the State for fiscal year

18 1995.

19 ‘‘(2) SUPPLEMENTAL GRANTS TO ADJUST FOR

20 POPULATION INCREASES.—In addition to any grant

21 under paragraph (1), each eligible State shall be en22 titled to receive from the Secretary for each of fiscal

23 years 1997, 1998, 1999, and 2000, a grant in an

24 amount equal to the State proportion of

25 $100,000,000.
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1 ‘‘(b) DEFINITIONS.—As used in this section:

2 ‘‘(1) STATE FAMILY ASSISTANCE GRANT.—

3 ‘‘(A) IN GENERAL.—The term ‘State fam4 ily assistance grant’ means, with respect to a

5 fiscal year, the provisional State family assist6 ance grant adjusted in accordance with sub7 paragraph (C).

8 ‘‘(B) PROVISIONAL STATE FAMILY ASSIST9 ANCE GRANT.—The term ‘provisional State

10 family assistance grant’ means—

11 ‘‘(i) the greater of—

‘‘(I) 1 12 ⁄3 of the total amount of ob13 ligations to the State under section

14 403 of this title (as in effect before

15 October 1, 1995) for fiscal years

16 1992, 1993, and 1994 (other than

17 with respect to amounts expended for

18 child care under subsection (g) or (i)

19 of such section); or

20 ‘‘(II) the total amount of obliga21 tions to the State under such section

22 403 for fiscal year 1994 (other than

23 with respect to amounts expended for

24 child care under subsection (g) or (i)

25 of such section); multiplied by
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1 ‘‘(ii)(I) the total amount of outlays to

2 all of the States under such section 403

3 for fiscal year 1994 (other than with re4 spect to amounts expended for child care

5 under subsection (g) or (i) of such sec6 tion); divided by

7 ‘‘(II) the total amount of obligations

8 to all of the States under such section 403

9 for fiscal year 1994 (other than with re10 spect to amounts expended for child care

11 under subsection (g) or (i) of such sec12 tion).

13 ‘‘(C) PROPORTIONAL ADJUSTMENT.—The

14 Secretary shall determine the percentage (if

15 any) by which each provisional State family as16 sistance grant must be reduced or increased to

17 ensure that the sum of such grants equals

18 $15,390,296,000, and shall adjust each provi19 sional State family assistance grant by the per20 centage so determined.

21 ‘‘(2) ILLEGITIMACY RATIO.—The term ‘illegit22 imacy ratio’ means, with respect to a State and a

23 fiscal year—

24 ‘‘(A) the sum of—
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1 ‘‘(i) the number of out-of-wedlock

2 births that occurred in the State during

3 the most recent fiscal year for which such

4 information is available; and

5 ‘‘(ii) the amount (if any) by which the

6 number of abortions performed in the

7 State during the most recent fiscal year for

8 which such information is available exceeds

9 the number of abortions performed in the

10 State during the fiscal year that imme11 diately precedes such most recent fiscal

12 year; divided by

13 ‘‘(B) the number of births that occurred in

14 the State during the most recent fiscal year for

15 which such information is available.

16 ‘‘(3) STATE PROPORTION.—The term ‘State

17 proportion’ means, with respect to a fiscal year, the

18 amount that bears the same ratio to the amount

19 specified in subsection (a)(2) as the increase (if any)

20 in the population of the State for the most recent

21 fiscal year for which such information is available

22 over the population of the State for the fiscal year

23 that immediately precedes such most recent fiscal

24 year bears to the total increase in the population of

25 all States which have such an increase in population,
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1 as determined by the Secretary using data from the

2 Bureau of the Census.

3 ‘‘(4) FISCAL YEAR.—The term ‘fiscal year’

4 means any 12-month period ending on September 30

5 of a calendar year.

6 ‘‘(5) STATE.—The term ‘State’ includes the

7 several States, the District of Columbia, the Com8 monwealth of Puerto Rico, the United States Virgin

9 Islands, Guam, and American Samoa.

10 ‘‘(c) USE OF GRANT.—

11 ‘‘(1) IN GENERAL.—A State to which a grant

12 is made under this section may use the grant in any

13 manner that is reasonably calculated to accomplish

14 the purpose of this part, subject to this part, includ15 ing to provide noncash assistance to mothers who

16 have not attained 18 years of age and their children

17 and to provide low income households with assist18 ance in meeting home heating and cooling costs.

19 ‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI20 GRANTS UNDER RULES OF FORMER STATE.—A State

21 to which a grant is made under this section may

22 apply to a family the rules of the program operated

23 under this part of another State if the family has

24 moved to the State from the other State and has re25 sided in the State for less than 12 months.
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1 ‘‘(3) AUTHORITY TO USE PORTION OF GRANT

2 FOR OTHER PURPOSES.—

3 ‘‘(A) IN GENERAL.—A State may use not

4 more than 30 percent of the amount of the

5 grant made to the State under this section for

6 a fiscal year to carry out a State program pur7 suant to any or all of the following provisions

8 of law:

9 ‘‘(i) Part B of this title.

10 ‘‘(ii) Title XX of this Act.

11 ‘‘(iii) Any provision of law, enacted

12 into law during the 104th Congress, under

13 which grants are made to States for food

14 and nutrition.

15 ‘‘(iv) The Child Care and Develop16 ment Block Grant Act of 1990.

17 ‘‘(B) APPLICABLE RULES.—Any amount

18 paid to the State under this part that is used

19 to carry out a State program pursuant to a pro20 vision of law specified in subparagraph (A)

21 shall not be subject to the requirements of this

22 part, but shall be subject to the requirements

23 that apply to Federal funds provided directly

24 under the provision of law to carry out the

25 program.
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1 ‘‘(4) AUTHORITY TO RESERVE CERTAIN

2 AMOUNTS FOR EMERGENCY BENEFITS.—

3 ‘‘(A) IN GENERAL.—A State may reserve

4 amounts paid to the State under this section

5 for any fiscal year for the purpose of providing

6 emergency assistance under the State program

7 operated under this part.

8 ‘‘(B) AUTHORITY TO USE EXCESS RE9 SERVES FOR ANY PURPOSE.—During a fiscal

10 year, a State may use for any purpose deemed

11 appropriate by the State amounts held in re12 serve under subparagraph (A) to the extent ex13 ceeding 120 percent of the amount of the grant

14 payable to the State under this section for the

15 fiscal year.

16 ‘‘(5) IMPLEMENTATION OF ELECTRONIC BENE17 FIT TRANSFER SYSTEM.—A State to which a grant

18 is made under this section is encouraged to imple19 ment an electronic benefit transfer system for pro20 viding assistance under the State program funded

21 under this part, and may use the grant for such

22 purpose.

23 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

24 pay each grant payable to a State under this section in

25 quarterly installments.
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1 ‘‘(e) PENALTIES.—

2 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

3 THIS PART.—

4 ‘‘(A) IN GENERAL.—If an audit conducted

5 pursuant to chapter 75 of title 31, United

6 States Code, finds that an amount paid to a

7 State under this section for a fiscal year has

8 been used in violation of this part, then the

9 Secretary shall reduce the amount of the grant

10 otherwise payable to the State under this sec11 tion for the immediately succeeding fiscal year

12 by the amount so used.

13 ‘‘(B) LIMITATION ON AMOUNT OF PEN14 ALTY.—In carrying out subparagraph (A), the

15 Secretary shall not reduce any quarterly pay16 ment by more than 25 percent.

17 ‘‘(C) CARRYFORWARD OF UNRECOVERED

18 PENALTIES.—To the extent that subparagraph

19 (B) prevents the Secretary from recovering dur20 ing a fiscal year the full amount of a penalty

21 imposed on a State under subparagraph (A) for

22 a prior fiscal year, the Secretary shall apply

23 subparagraph (A) to the grant otherwise pay24 able to the State under this section for the im25 mediately succeeding fiscal year.
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1 ‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE2 PORT.—

3 ‘‘(A) IN GENERAL.—If the Secretary deter4 mines that a State has not, within 6 months

5 after the end of a fiscal year, submitted the re6 port required by section 406 for the fiscal year,

7 the Secretary shall reduce by 3 percent the

8 amount of the grant that would (in the absence

9 of this subsection, subsection (a)(1)(B) of this

10 section, and section 404(c)(2)) be payable to

11 the State under subsection (a)(1)(A) for the im12 mediately succeeding fiscal year.

13 ‘‘(B) RESCISSION OF PENALTY.—The Sec14 retary shall rescind a penalty imposed on a

15 State under subparagraph (A) with respect to a

16 report for a fiscal year if the State submits the

17 report before the end of the immediately suc18 ceeding fiscal year.

19 ‘‘(C) FOR FAILURE TO PARTICIPATE IN

20 THE INCOME AND ELIGIBILITY VERIFICATION

21 SYSTEM.—If the Secretary determines that a

22 State program funded under this part is not

23 participating during a fiscal year in the income

24 and eligibility verification system required by

25 section 1137, the Secretary shall reduce by 1
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1 percent the amount of the grant that would (in

2 the absence of this subsection, subsection

3 (a)(1)(B) of this section, and section 404(c)(2))

4 be payable to the State under subsection

5 (a)(1)(A) for the fiscal year.

6 ‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—The

7 Secretary may not regulate the conduct of States under

8 this part or enforce any provision of this part, except to

9 the extent expressly provided in this part.

10 ‘‘(g) FEDERAL RAINY DAY FUND.—

11 ‘‘(1) ESTABLISHMENT.—There is hereby estab12 lished in the Treasury of the United States a revolv13 ing loan fund which shall be known as the ‘Federal

14 Rainy Day Fund’.

15 ‘‘(2) DEPOSITS INTO FUND.—

16 ‘‘(A) APPROPRIATION.—Out of any money

17 in the Treasury of the United States not other18 wise appropriated, $1,000,000,000 are hereby

19 appropriated for fiscal year 1996 for payment

20 to the Federal Rainy Day Fund.

21 ‘‘(B) LOAN REPAYMENTS.—The Secretary

22 shall deposit into the fund any principal or in23 terest payment received with respect to a loan

24 made under this subsection.
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1 ‘‘(3) AVAILABILITY.—Amounts in the fund are

2 authorized to remain available without fiscal year

3 limitation for the purpose of making loans and re4 ceiving payments of principal and interest on such

5 loans, in accordance with this subsection.

6 ‘‘(4) USE OF FUND.—

7 ‘‘(A) LOANS TO QUALIFIED STATES.—

8 ‘‘(i) IN GENERAL.—The Secretary

9 shall make loans from the fund to any

10 qualified State for a period to maturity of

11 not more than 3 years.

12 ‘‘(ii) RATE OF INTEREST.—The Sec13 retary shall charge and collect interest on

14 any loan made under clause (i) at a rate

15 equal to the current average market yield

16 on outstanding marketable obligations of

17 the United States with remaining periods

18 to maturity comparable to the period to

19 maturity of the loan.

20 ‘‘(iii) MAXIMUM LOAN.—The amount

21 of any loan made to a State under clause

22 (i) during a fiscal year shall not exceed the

23 lesser of—
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1 ‘‘(I) 50 percent of the amount of

2 the grant payable to the State under

3 this section for the fiscal year; or

4 ‘‘(II) $100,000,000.

5 ‘‘(B) QUALIFIED STATE DEFINED.—A

6 State is a qualified State for purposes of sub7 paragraph (A) if the unemployment rate of the

8 State (as determined by the Bureau of Labor

9 Statistics) for the most recent 3-month period

10 for which such information is available is—

11 ‘‘(i) more than 6.5 percent; and

12 ‘‘(ii) at least 110 percent of such rate

13 for the corresponding 3-month period in ei14 ther of the 2 immediately preceding cal15 endar years.

16 ‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.

17 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

18 ‘‘(1) REQUIREMENT APPLICABLE TO ALL FAMI19 LIES RECEIVING ASSISTANCE.—

20 ‘‘(A) IN GENERAL.—A State to which a

21 grant is made under section 403 for a fiscal

22 year shall achieve the minimum participation

23 rate specified in the following table for the fis24 cal year with respect to all families receiving as-
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1 sistance under the State program funded under

2 this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 .......................................................................... 4

1997 .......................................................................... 4

1998 .......................................................................... 8

1999 .......................................................................... 12

2000 .......................................................................... 17

2001 .......................................................................... 29

2002 .......................................................................... 40

2003 or thereafter ..................................................... 50.

3 ‘‘(B) PRO RATA REDUCTION OF PARTICIPA4 TION RATE DUE TO CASELOAD REDUCTIONS

5 NOT REQUIRED BY FEDERAL LAW.—The mini6 mum participation rate otherwise required by

7 subparagraph (A) for a fiscal year shall be re8 duced by a percentage equal to the percentage

9 (if any) by which the number of families receiv10 ing assistance during the fiscal year under the

11 State program funded under this part is less

12 than the number of families that received aid

13 under the State plan approved under part A of

14 this title (as in effect before October 1, 1995)

15 during the fiscal year immediately preceding

16 such effective date, except to the extent that the

17 Secretary determines that the reduction in the

18 number of families receiving such assistance is

19 required by Federal law.
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1 ‘‘(C) PARTICIPATION RATE.—For purposes

2 of this paragraph:

3 ‘‘(i) AVERAGE MONTHLY RATE.—The

4 participation rate of a State for a fiscal

5 year is the average of the participation

6 rates of the State for each month in the

7 fiscal year.

8 ‘‘(ii) MONTHLY PARTICIPATION

9 RATES.—The participation rate of a State

10 for a month is—

11 ‘‘(I) the number of families re12 ceiving cash assistance under the

13 State program funded under this part

14 which include an individual who is en15 gaged in work activities for the

16 month; divided by

17 ‘‘(II) the total number of families

18 receiving cash assistance under the

19 State program funded under this part

20 during the month which include an in21 dividual who has attained 18 years of

22 age.

23 ‘‘(iii) ENGAGED.—A recipient is en24 gaged in work activities for a month in a

25 fiscal year if the recipient is making
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1 progress in such activities for at least the

2 minimum average number of hours per

3 week specified in the following table during

4 the month, not fewer than 20 hours per

5 week of which are attributable to an activ6 ity described in subparagraph (A), (B),

7 (C), or (D) of subsection (b)(1) (or, in the

8 case of the first 4 weeks for which the re9 cipient is required under this section to

10 participate in work activities, an activity

11 described in subsection (b)(1)(E)):

The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

1996 ........................................................... 20

1997 ........................................................... 20

1998 ........................................................... 20

1999 ........................................................... 25

2000 ........................................................... 30

2001 ........................................................... 30

2002 ........................................................... 35

2003 or thereafter ..................................... 35.

12 ‘‘(2) REQUIREMENT APPLICABLE TO 2-PARENT

13 FAMILIES.—

14 ‘‘(A) IN GENERAL.—A State to which a

15 grant is made under section 403 for a fiscal

16 year shall achieve the minimum participation

17 rate specified in the following table for the fis18 cal year with respect to 2-parent families receiv19 ing assistance under the State program funded

20 under this part:
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The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 50

1997 ............................................................... 50

1998 or thereafter ......................................... 90.

1 ‘‘(B) PARTICIPATION RATE.—For purposes

2 of this paragraph:

3 ‘‘(i) AVERAGE MONTHLY RATE.—The

4 participation rate of a State for a fiscal

5 year is the average of the participation

6 rates of the State for each month in the

7 fiscal year.

8 ‘‘(ii) MONTHLY PARTICIPATION

9 RATES.—The participation rate of a State

10 for a month is—

11 ‘‘(I) the number of 2-parent fam12 ilies receiving cash assistance under

13 the State program funded under this

14 part which include at least 1 adult

15 who is engaged in work activities for

16 the month; divided by

17 ‘‘(II) the total number of 2-par18 ent families receiving cash assistance

19 under the State program funded

20 under this part during the month.

21 ‘‘(iii) ENGAGED.—An adult is engaged

22 in work activities for a month in a fiscal
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1 year if the adult is making progress in

2 such activities for at least 35 hours per

3 week during the month, not fewer than 30

4 hours per week of which are attributable to

5 an activity described in subparagraph (A),

6 (B), (C), or (D) of subsection (b)(1) (or, in

7 the case of the first 4 weeks for which the

8 recipient is required under this section to

9 participate in work activities, an activity

10 described in subsection (b)(1)(E)).

11 ‘‘(b) DEFINITIONS.—As used in this section:

12 ‘‘(1) WORK ACTIVITIES.—The term ‘work ac13 tivities’ means—

14 ‘‘(A) unsubsidized employment;

15 ‘‘(B) subsidized private sector employment;

16 ‘‘(C) subsidized public sector employment

17 or work experience (including work associated

18 with the refurbishing of publicly assisted hous19 ing) only if sufficient private sector employment

20 is not available;

21 ‘‘(D) on-the-job training;

22 ‘‘(E) job search and job readiness assist23 ance;

24 ‘‘(F) education directly related to employ25 ment, in the case of a recipient who has not at-
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1 tained 20 years of age, and has not received a

2 high school diploma or a certificate of high

3 school equivalency;

4 ‘‘(G) job skills training directly related to

5 employment; or

6 ‘‘(H) at the option of the State, satisfac7 tory attendance at secondary school, in the case

8 of a recipient who—

9 ‘‘(i) has not completed secondary

10 school; and

11 ‘‘(ii) is a dependent child, or a head of

12 household who has not attained 20 years

13 of age.

14 ‘‘(2) FISCAL YEAR.—The term ‘fiscal year’

15 means any 12-month period ending on September 30

16 of a calendar year.

17 ‘‘(c) PENALTIES.—

18 ‘‘(1) AGAINST INDIVIDUALS.—

19 ‘‘(A) APPLICABLE TO ALL FAMILIES.—A

20 State to which a grant is made under section

21 403 shall ensure that the amount of cash as22 sistance paid under the State program funded

23 under this part to a recipient of assistance

24 under the program who refuses to engage (with-
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1 in the meaning of subsection (a)(1)(C)(iii)) in

2 work activities required under this section shall

3 be less than the amount of cash assistance that

4 would otherwise be paid to the recipient under

5 the program, subject to such good cause and

6 other exceptions as the State may establish.

7 ‘‘(B) APPLICABLE TO 2-PARENT FAMI8 LIES.—A State to which a grant is made under

9 section 403 shall reduce the amount of cash as10 sistance otherwise payable to a 2-parent family

11 for a month under the State program funded

12 under this part with respect to an adult in the

13 family who is not engaged (within the meaning

14 of subsection (a)(2)(B)(iii)) in work activities

15 for at least 35 hours per week during the

16 month, pro rata (or more, at the option of the

17 State) with respect to any period during the

18 month for which the adult is not so engaged.

19 ‘‘(C) LIMITATION ON FEDERAL AUTHOR20 ITY.—No officer or employee of the Federal

21 Government may regulate the conduct of States

22 under this paragraph or enforce this paragraph

23 against any State.

24 ‘‘(2) AGAINST STATES.—
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1 ‘‘(A) IN GENERAL.—If the Secretary deter2 mines that a State to which a grant is made

3 under section 403 for a fiscal year has failed to

4 comply with subsection (a) for the fiscal year,

5 the Secretary shall reduce by not more than 5

6 percent the amount of the grant that would (in

7 the absence of this paragraph and subsections

8 (a)(1)(B) and (e) of section 403) be payable to

9 the State under section 403(a)(1)(A) for the

10 immediately succeeding fiscal year.

11 ‘‘(B) PENALTY BASED ON SEVERITY OF

12 FAILURE.—The Secretary shall impose reduc13 tions under subparagraph (A) based on the de14 gree of noncompliance.

15 ‘‘(d) RULE OF INTERPRETATION.—This section shall

16 not be construed to prohibit a State from offering recipi17 ents of assistance under the State program funded under

18 this part an opportunity to participate in an education or

19 training program, consistent with the requirements of this

20 section.

21 ‘‘(e) RESEARCH.—The Secretary shall conduct re22 search on the costs and benefits of State activities under

23 this section.

24 ‘‘(f) EVALUATION OF INNOVATIVE APPROACHES TO

25 EMPLOYING RECIPIENTS OF ASSISTANCE.—The Sec-
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1 retary shall evaluate innovative approaches to employing

2 recipients of assistance under State programs funded

3 under this part.

4 ‘‘(g) ANNUAL RANKING OF STATES AND REVIEW OF

5 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

6 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec7 retary shall rank the States to which grants are paid

8 under section 403 in the order of their success in

9 moving recipients of assistance under the State pro10 gram funded under this part into long-term private

11 sector jobs.

12 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST

13 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

14 review the programs of the 3 States most recently

15 ranked highest under paragraph (1) and the 3

16 States most recently ranked lowest under paragraph

17 (1) that provide parents with work experience, as18 sistance in finding employment, and other work

19 preparation activities and support services to enable

20 the families of such parents to leave the program

21 and become self-sufficient.

22 ‘‘(h) SENSE OF THE CONGRESS.—In complying with

23 this section, each State that operates a program funded

24 under this part is encouraged to assign the highest prior-
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1 ity to requiring families that include older preschool or

2 school-age children to be engaged in work activities.

3 ‘‘(i) SENSE OF THE CONGRESS THAT STATES

4 SHOULD IMPOSE CERTAIN REQUIREMENTS ON

5 NONCUSTODIAL, NONSUPPORTING MINOR PARENTS.—It

6 is the sense of the Congress that the States should require

7 noncustodial, nonsupporting parents who have not at8 tained 18 years of age to fulfill community work obliga9 tions and attend appropriate parenting or money manage10 ment classes after school.

11 ‘‘SEC. 405. PROHIBITIONS.

12 ‘‘(a) IN GENERAL.—

13 ‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A

14 MINOR CHILD.—A State to which a grant is made

15 under section 403 may not use any part of the grant

16 to provide assistance to a family, unless the family

17 includes a minor child.

18 ‘‘(2) CERTAIN PAYMENTS NOT TO BE DIS19 REGARDED IN DETERMINING THE AMOUNT OF AS20 SISTANCE TO BE PROVIDED TO A FAMILY.—

21 ‘‘(A) INCOME SECURITY PAYMENTS.—If a

22 State to which a grant is made under section

23 403 uses any part of the grant to provide as24 sistance for any individual who is receiving a

25 payment under a State plan for old-age assist-
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1 ance approved under section 2, a State program

2 funded under part B that provides cash pay3 ments for foster care, or the supplemental secu4 rity income program under title XVI (other

5 than service benefits provided through the use

6 of a grant made under part C of such title),

7 then the State may not disregard the payment

8 in determining the amount of assistance to be

9 provided to the family of which the individual

10 is a member under the State program funded

11 under this part.

12 ‘‘(B) CERTAIN SUPPORT PAYMENTS.—A

13 State to which a grant is made under section

14 403 may not disregard an amount distributed

15 to a family under section 457(a)(1)(A) in deter16 mining the income of the family for purposes of

17 eligibility for assistance under the State pro18 gram funded under this part.

19 ‘‘(3) NO ASSISTANCE FOR CERTAIN ALIENS.—

20 Notwithstanding subsection (c)(1), a State to which

21 a grant is made under section 403 may not use any

22 part of the grant to provide assistance for an indi23 vidual who is not a citizen or national of the United

24 States, unless—
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1 ‘‘(A)(i) the individual is admitted to the

2 United States as a refugee under section 207 of

3 the Immigration and Nationality Act; and

4 ‘‘(ii) 5 years has elapsed since the date the

5 individual arrived in the United States;

6 ‘‘(B) the individual—

7 ‘‘(i) is lawfully admitted to the United

8 States for permanent residence;

9 ‘‘(ii) has attained 75 years of age; and

10 ‘‘(iii) has resided in the United States

11 for at least 5 years; or

12 ‘‘(C) the individual is honorably discharged

13 from the Armed Forces of the United States.

14 ‘‘(4) NO ASSISTANCE FOR OUT-OF-WEDLOCK

15 BIRTHS TO MINORS.—

16 ‘‘(A) GENERAL RULE.—a State to which a

17 grant is made under section 403 may not use

18 any part of the grant to provide cash benefits

19 for a child born out-of-wedlock to an individual

20 who has not attained 18 years of age, or for the

21 individual, until the individual attains such age.

22 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—

23 Subparagraph (A) shall not apply with respect

24 to a child who is born as a result of rape or in25 cest.
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1 ‘‘(5) NO ADDITIONAL ASSISTANCE FOR CHIL2 DREN BORN TO FAMILIES RECEIVING ASSISTANCE.—

3 ‘‘(A) GENERAL RULE.—A State to which a

4 grant is made under section 403 may not use

5 any part of the grant to provide cash benefits

6 for a minor child who is born to—

7 ‘‘(i) a recipient of benefits under the

8 program operated under this part; or

9 ‘‘(ii) a person who received such bene10 fits at any time during the 10-month pe11 riod ending with the birth of the child.

12 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—

13 Subparagraph (A) shall not apply with respect

14 to a child who is born as a result of rape or in15 cest.

16 ‘‘(6) NO ASSISTANCE FOR MORE THAN 5

17 YEARS.—

18 ‘‘(A) IN GENERAL.—A State to which a

19 grant is made under section 403 may not use

20 any part of the grant to provide cash benefits

21 for the family of an individual who, after at22 taining 18 years of age, has received benefits

23 under the program operated under this part for

24 60 months (whether or not consecutive) after
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1 the effective date of this part, except as pro2 vided under subparagraph (B).

3 ‘‘(B) HARDSHIP EXCEPTION.—

4 ‘‘(i) IN GENERAL.—The State may ex5 empt a family from the application of sub6 paragraph (A) by reason of hardship.

7 ‘‘(ii) LIMITATION.—The number of

8 families with respect to which an exemp9 tion made by a State under clause (i) is in

10 effect shall not exceed 10 percent of the

11 number of families to which the State is

12 providing assistance under the program op13 erated under this part.

14 ‘‘(7) NO ASSISTANCE FOR FAMILIES NOT CO15 OPERATING IN PATERNITY ESTABLISHMENT OR

16 CHILD SUPPORT.—Notwithstanding subsection

17 (c)(1), a State to which a grant is made under sec18 tion 403 may not use any part of the grant to pro19 vide assistance to a family that includes an individ20 ual whom the agency responsible for administering

21 the State plan approved under part D determines is

22 not cooperating with the State in establishing the

23 paternity of any child of the individual, or in estab24 lishing, modifying, or enforcing a support order with

25 respect to such a child.
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1 ‘‘(8) NO ASSISTANCE FOR FAMILIES NOT AS2 SIGNING SUPPORT RIGHTS TO THE STATE.—Not3 withstanding subsection (c)(1), a State to which a

4 grant is made under section 403 may not use any

5 part of the grant to provide assistance to a family

6 that includes an individual who has not assigned to

7 the State any rights the individual may have (on be8 half of the individual or of any other person for

9 whom the individual has applied for or is receiving

10 such assistance) to support from any other person

11 for any period for which the individual receives such

12 assistance.

13 ‘‘(9) WITHHOLDING OF PORTION OF ASSIST14 ANCE FOR FAMILIES WHICH INCLUDE A CHILD

15 WHOSE PATERNITY IS NOT ESTABLISHED.—

16 ‘‘(A) IN GENERAL.—A State to which a

17 grant is made under section 403 may not fail

18 to—

19 ‘‘(i) withhold assistance under the

20 State program funded under this part from

21 a family which includes a child whose pa22 ternity is not established, in an amount

23 equal to $50 or 15 percent of the amount

24 of the amount of the assistance that would

25 (in the absence of this paragraph) be pro-
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1 vided to the family with respect to the

2 child, whichever the State elects; or

3 ‘‘(ii) provide to the family the total

4 amount of assistance so withheld once the

5 paternity of the child is established, if the

6 family is then eligible for such assistance.

7 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—Sub8 paragraph (A) shall not apply with respect to a child

9 who is born as a result of rape or incest.

10 ‘‘(10) DENIAL OF ASSISTANCE FOR 10 YEARS

11 TO A PERSON CONVICTED OF FRAUDULENTLY MIS12 REPRESENTING RESIDENCE TO A WELFARE PRO13 GRAM.—A State to which a grant is made under sec14 tion 403 may not use any part of the grant to pro15 vide assistance to an individual during the 10-year

16 period that begins with the date the individual is

17 convicted in Federal or State court of making a

18 fraudulent statement or representation with respect

19 to the place of residence of the person in order to

20 receive benefits or services under 2 or more pro21 grams that are funded under this part.

22 ‘‘(b) MINOR CHILD DEFINED.—As used in sub23 section (a), the term ‘minor child’ means an individual—

24 ‘‘(1) who has not attained 18 years of age; or

25 ‘‘(2) who—
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1 ‘‘(A) has not attained 19 years of age; and

2 ‘‘(B) is a full-time student in a secondary

3 school (or in the equivalent level of vocational

4 or technical training).

5 ‘‘SEC. 406. DATA COLLECTION AND REPORTING.

6 ‘‘(a) IN GENERAL.—Each State to which a grant is

7 made under section 403 for a fiscal year shall, not later

8 than 6 months after the end of the fiscal year, transmit

9 to the Secretary the following aggregate information on

10 families to which assistance was provided during the fiscal

11 year under the State program operated under this part

12 or an equivalent State program:

13 ‘‘(1) The number of adults receiving such as14 sistance.

15 ‘‘(2) The number of children receiving such as16 sistance and the average age of the children.

17 ‘‘(3) The employment status of such adults, and

18 the average earnings of employed adults receiving

19 such assistance.

20 ‘‘(4) The number of 1-parent families in which

21 the parent is a widow or widower, is divorced, is sep22 arated, or has never married.

23 ‘‘(5) The age, race, and educational attainment

24 of the adults receiving such assistance.
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1 ‘‘(6) The average assistance provided to the

2 families under the program.

3 ‘‘(7) Whether, at the time of application for as4 sistance under the program, the families or any

5 member of the families receives benefits under any

6 of the following:

7 ‘‘(A) Any housing program.

8 ‘‘(B) The food stamp program under the

9 Food Stamp Act of 1977.

10 ‘‘(C) The Head Start programs carried out

11 under the Head Start Act.

12 ‘‘(D) Any job training program.

13 ‘‘(8) The number of months, since the most re14 cent application for assistance under the program,

15 for which such assistance has been provided to the

16 families.

17 ‘‘(9) The total number of months for which as18 sistance has been provided to the families under the

19 program.

20 ‘‘(10) Any other data necessary to indicate

21 whether the State is in compliance with the plan

22 most recently submitted by the State pursuant to

23 section 402.

24 ‘‘(11) The components of any program carried

25 out by the State to provide employment and training
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1 activities in order to comply with section 404, and

2 the average monthly number of adults in each such

3 component.

4 ‘‘(12) The number of part-time job placements

5 and the number of full-time job placements made

6 through the program referred to in paragraph (11),

7 the number of cases with reduced assistance, and

8 the number of cases closed due to employment.

9 ‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—

10 A State may comply with the requirement to provide pre11 cise numerical information described in subsection (a) by

12 submitting an estimate which is obtained through the use

13 of scientifically acceptable sampling methods.

14 ‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO

15 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The

16 report required by subsection (a) for a fiscal year shall

17 include a statement of the percentage of the funds paid

18 to the State under this part for the fiscal year that are

19 used to cover administrative costs or overhead.

20 ‘‘(d) REPORT ON STATE EXPENDITURES ON PRO21 GRAMS FOR NEEDY FAMILIES.—The report required by

22 subsection (a) for a fiscal year shall include a statement

23 of the total amount expended by the State during the fis24 cal year on programs for needy families.
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1 ‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI2 PATING IN WORK ACTIVITIES.—The report required by

3 subsection (a) for a fiscal year shall include the number

4 of noncustodial parents in the State who participated in

5 work activities (as defined in section 404(b)(1)) during the

6 fiscal year.

7 ‘‘SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUD8 IES.

9 ‘‘(a) RESEARCH.—The Secretary may conduct re10 search on the effects, costs, and benefits of State pro11 grams funded under this part.

12 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA13 TIVE APPROACHES TO EMPLOYING WELFARE RECIPI14 ENTS.—The Secretary may assist States in developing,

15 and shall evaluate, innovative approaches to employing re16 cipients of cash assistance under programs funded under

17 this part. In performing such evaluations, the Secretary

18 shall, to the maximum extent feasible, use random assign19 ment to experimental and control groups.

20 ‘‘(c) STUDIES OF WELFARE CASELOADS.—The Sec21 retary may conduct studies of the caseloads of States oper22 ating programs funded under this part.

23 ‘‘(d) DISSEMINATION OF INFORMATION.—The Sec24 retary shall develop innovative methods of disseminating

25 information on any research, evaluations, and studies con-
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1 ducted under this section, including the facilitation of the

2 sharing of information and best practices among States

3 and localities through the use of computers and other

4 technologies.

5 ‘‘SEC. 408. STUDY BY THE CENSUS BUREAU.

6 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

7 expand the Survey of Income and Program Participation

8 as necessary to obtain such information as will enable in9 terested persons to evaluate the impact of the amendments

10 made by title I of the Personal Responsibility Act of 1995

11 on a random national sample of recipients of assistance

12 under State programs funded under this part and (as ap13 propriate) other low income families, and in doing so, shall

14 pay particular attention to the issues of out-of-wedlock

15 birth, welfare dependency, the beginning and end of wel16 fare spells, and the causes of repeat welfare spells.

17 ‘‘(b) APPROPRIATION.—Out of any money in the

18 Treasury of the United States not otherwise appropriated,

19 the Secretary of the Treasury shall pay to the Bureau of

20 the Census $10,000,000 for each of fiscal years 1996,

21 1997, 1998, 1999, and 2000 to carry out subsection (a).’’.

22 SEC. 102. REPORT ON DATA PROCESSING.

23 (a) IN GENERAL.—Within 6 months after the date

24 of the enactment of this Act, the Secretary of Health and
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1 Human Services shall prepare and submit to the Congress

2 a report on—

3 (1) the status of the automated data processing

4 systems operated by the States to assist manage5 ment in the administration of State programs under

6 part A of title IV of the Social Security Act (wheth7 er in effect before or after October 1, 1995); and

8 (2) what would be required to establish a sys9 tem capable of—

10 (A) tracking participants in public pro11 grams over time; and

12 (B) checking case records of the States to

13 determine whether individuals are participating

14 in public programs of 2 or more States.

15 (b) PREFERRED CONTENTS.—The report required by

16 subsection (a) should include—

17 (1) a plan for building on the automated data

18 processing systems of the States to establish a sys19 tem with the capabilities described in subsection

20 (a)(2); and

21 (2) an estimate of the amount of time required

22 to establish such a system and of the cost of estab23 lishing such a system.

24 SEC. 103. TRANSFERS.

25 (a) CHILD SUPPORT REVIEW PENALTIES.—
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1 (1) TRANSFER OF PROVISION.—Section 403 of

2 the Social Security Act, as added by the amendment

3 made by section 101 of this Act, is amended by add4 ing at the end subsection (h) of section 403, as in

5 effect immediately before the effective date of this

6 title.

7 (2) CONFORMING AMENDMENT.—Section

8 403(h)(3) of such Act, as in effect pursuant to para9 graph (1) of this subsection, is amended by striking

10 ‘‘, section 402(a)(27),’’.

11 (b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—

12 (1) REDESIGNATION OF PROVISION.—Section

13 417 of such Act (42 U.S.C. 617), as in effect imme14 diately before the effective date of this title, is

15 amended by striking the following:

16 ‘‘ASSISTANT SECRETARY FOR FAMILY SUPPORT’’

17 ‘‘SEC. 417.’’

18 and inserting the following:

19 ‘‘SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.’’.

20 (2) TRANSFER OF PROVISION.—Part A of title

21 IV of such Act, as added by the amendment made

22 by section 101 of this Act, is amended by adding at

23 the end the section amended by paragraph (1) of

24 this subsection.

25 (3) CONFORMING AMENDMENT.—Section 408

26 of such Act, as added by paragraph (2) of this sub-
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1 section is amended by striking ‘‘, part D, and part

2 F’’ and inserting ‘‘and part D’’.

3 SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL

4 SECURITY ACT.

5 (a) AMENDMENTS TO TITLE II.—

6 (1) Section 205(c)(2)(C)(vi) of the Social Secu7 rity Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesig8 nated by section 321(a)(9)(B) of the Social Security

9 Independence and Program Improvements Act of

10 1994, is amended—

11 (A) by inserting ‘‘an agency administering

12 a program funded under part A of title IV or’’

13 before ‘‘an agency operating’’; and

14 (B) by striking ‘‘A or D of title IV of this

15 Act’’ and inserting ‘‘D of such title’’.

16 (2) Section 228(d)(1) of such Act (42 U.S.C.

17 428(d)(1)) is amended by inserting ‘‘under a State

18 program funded under’’ before ‘‘part A of title IV’’.

19 (b) AMENDMENTS TO PART D OF TITLE IV.—

20 (1) Section 451 of such Act (42 U.S.C. 651) is

21 amended by striking ‘‘aid’’ and inserting ‘‘assistance

22 under a State program funded’’.

23 (2) Section 452(a)(10)(C) of such Act (42

24 U.S.C. 652(a)(10)(C)) is amended—
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1 (A) by striking ‘‘aid to families with de2 pendent children’’ and inserting ‘‘assistance

3 under a State program funded under part A’’;

4 and

5 (B) by striking ‘‘such aid’’ and inserting

6 ‘‘such assistance’’; and

7 (C) by striking ‘‘under section 402(a)(26)’’

8 and inserting ‘‘pursuant to section 405(a)(8)’’.

9 (3) Section 452(a)(10)(F) of such Act (42

10 U.S.C. 652(a)(10)(F)) is amended—

11 (A) by striking ‘‘aid under a State plan ap12 proved’’ and inserting ‘‘assistance under a State

13 program funded’’; and

14 (B) by striking ‘‘in accordance with the

15 standards referred to in section

16 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

17 State’’.

18 (4) Section 452(b) of such Act (42 U.S.C.

19 652(b)) is amended in the last sentence by striking

20 ‘‘plan approved under part A’’ and inserting ‘‘pro21 gram funded under part A’’.

22 (5) Section 452(d)(3)(B)(i) of such Act (42

23 U.S.C. 652(d)(3)(B)(i)) is amended by striking

24 ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
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1 (6) Section 452(g)(2)(A)(ii)(I) of such Act (42

2 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking

3 ‘‘aid is being paid under the State’s plan approved’’

4 and inserting ‘‘assistance is being provided under

5 the State program funded under’’.

6 (7) Section 452(g)(2)(A) of such Act (42

7 U.S.C. 652(g)(2)(A)) is amended in the matter fol8 lowing clause (iii) by striking ‘‘aid was being paid

9 under the State’s plan approved’’ and inserting ‘‘as10 sistance was being provided under the State pro11 gram funded’’.

12 (8) Section 452(g)(2) of such Act (42 U.S.C.

13 652(g)(2)) is amended in the matter following sub14 paragraph (B)—

15 (A) by striking ‘‘who is a dependent child

16 by reason of the death of a parent’’ and insert17 ing ‘‘with respect to whom assistance is being

18 provided under the State program funded under

19 part A’’; and

20 (B) by inserting ‘‘by the State agency ad21 ministering the State plan approved under this

22 part’’ after ‘‘found’’;

23 (C) by striking ‘‘under section 402(a)(26)’’

24 and inserting ‘‘pursuant to section 405(a)(8)’’;

25 and
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1 (D) by striking ‘‘administering the plan

2 under part E determines (as provided in section

3 454(4)(B))’’ and inserting ‘‘determines’’.

4 (9) Section 452(h) of such Act (42 U.S.C.

5 652(h)) is amended by striking ‘‘under section

6 402(a)(26)’’ and inserting ‘‘pursuant to section

7 405(a)(8)’’.

8 (10) Section 454(5) of such Act (42 U.S.C.

9 654(5)) is amended—

10 (A) by striking ‘‘under section 402(a)(26)’’

11 and inserting ‘‘pursuant to section 405(a)(8)’’;

12 and

13 (B) by striking ‘‘except that this para14 graph shall not apply to such payments for any

15 month following the first month in which the

16 amount collected is sufficient to make such

17 family ineligible for assistance under the State

18 plan approved under part A;’’.

19 (11) Section 454(6)(D) of such Act (42 U.S.C.

20 654(6)(D)) is amended by striking ‘‘aid under a

21 State plan approved’’ and inserting ‘‘assistance

22 under a State progrm funded’’.

23 (12) Section 456 of such Act (42 U.S.C. 656)

24 is amended by striking ‘‘under section 402(a)(26)’’
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1 each place such term appears and inserting ‘‘pursu2 ant to section 405(a)(8)’’.

3 (13) Section 466(a)(3)(B) of such Act (42

4 U.S.C. 666(a)(3)(B)) is amended by striking

5 ‘‘402(a)(26)’’ and inserting ‘‘405(a)(8)’’.

6 (14) Section 466(b)(2) of such Act (42 U.S.C.

7 666(b)(2)) is amended by striking ‘‘aid’’ and insert8 ing ‘‘assistance under a State program funded’’.

9 (c) REPEAL OF PART F OF TITLE IV.—Part F of

10 title IV of such Act (42 U.S.C. 681–687) is hereby re11 pealed.

12 (d) AMENDMENT TO TITLE X.—Section 1002(a)(7)

13 of such Act (42 U.S.C. 1202(a)(7)) is amended by striking

14 ‘‘aid to families with dependent children under the State

15 plan approved under section 402 of this Act’’ and insert16 ing ‘‘assistance under a State program funded under part

17 A of title IV’’.

18 (e) AMENDMENTS TO TITLE XI.—

19 (1) Section 1108 of such Act (42 U.S.C. 1308)

20 is amended—

21 (A) by striking subsections (a), (b), (d),

22 and (e); and

23 (B) by striking ‘‘(c)’’.

24 (2) Section 1109 of such Act (42 U.S.C. 1309)

25 is amended by striking ‘‘or part A of title IV,’’.
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1 (3) Section 1115(a) of such Act (42 U.S.C.

2 1315(a)) is amended—

3 (A) in the matter preceding paragraph (1),

4 by striking ‘‘A or’’;

5 (B) in paragraph (1), by striking ‘‘402,’’;

6 and

7 (C) in paragraph (2), by striking ‘‘403,’’.

8 (4) Section 1116 of such Act (42 U.S.C. 1316)

9 is amended—

10 (A) in each of subsections (a)(1), (b), and

11 (d), by striking ‘‘or part A of title IV,’’; and

12 (B) in subsection (a)(3), by striking

13 ‘‘404,’’;

14 (5) Section 1118 of such Act (42 U.S.C. 1318)

15 is amended—

16 (A) by striking ‘‘403(a),’’;

17 (B) by striking ‘‘and part A of title IV,’’;

18 and

19 (C) by striking ‘‘, and shall, in the case of

20 American Samoa, mean 75 per centum with re21 spect to part A of title IV’’.

22 (6) Section 1119 of such Act (42 U.S.C. 1319)

23 is amended—

24 (A) by striking ‘‘or part A of title IV’’; and

25 (B) by striking ‘‘403(a),’’.
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1 (7) Section 1133(a) of such Act (42 U.S.C.

2 1320b–3(a)) is amended by striking ‘‘or part A of

3 title IV,’’.

4 (8) Section 1136 of such Act (42 U.S.C.

5 1320b–6) is hereby repealed.

6 (9) Section 1137 of such Act (42 U.S.C.

7 1320b–7) is amended—

8 (A) in subsection (b), by striking para9 graph (1) and inserting the following:

10 ‘‘(1) any State program funded under part A of

11 title IV of this Act;’’; and

12 (B) in subsection (d)(1)(B)—

13 (i) by striking ‘‘In this subsection—’’

14 and all that follows through ‘‘(ii) in’’ and

15 inserting ‘‘In this subsection, in’’; and

16 (ii) by redesignating subclauses (I),

17 (II), and (III) as clauses (i), (ii), and (iii);

18 and

19 (iii) by moving such redesignated ma20 terial 2 ems to the left.

21 (f) AMENDMENT TO TITLE XIV.—Section

22 1402(a)(7) of such Act (42 U.S.C. 1352(a)(7)) is amend23 ed by striking ‘‘aid to families with dependent children

24 under the State plan approved under section 402 of this
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1 Act’’ and inserting ‘‘assistance under a State program

2 funded under part A of title IV’’.

3 (g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

4 RESPECT TO THE TERRITORIES.—Section 1602(a)(11) of

5 such Act, as in effect without regard to the amendment

6 made by section 301 of the Social Security Amendments

7 of 1972, (42 U.S.C. 1382 note) is amended by striking

8 ‘‘aid under the State plan approved’’ and inserting ‘‘assist9 ance under a State program funded’’.

10 (h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

11 RESPECT TO THE STATES.—Section 1611(c)(5)(A) of

12 such Act (42 U.S.C. 1382(c)(5)(A)) is amended to read

13 as follows: ‘‘(A) a State program funded under part A of

14 title IV,’’.

15 SEC. 105. CONFORMING AMENDMENTS TO OTHER LAWS.

16 (a) Subsection (b) of section 508 of the Unemploy17 ment Compensation Amendments of 1976 (42 U.S.C.

18 603a) is amended to read as follows:

19 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX20 PENSES.—For purposes of section 455 of the Social Secu21 rity Act, expenses incurred to reimburse State employment

22 offices for furnishing information requested of such of23 fices—

24 ‘‘(1) pursuant to the third sentence of section

25 3(a) of the Act entitled ‘An Act to provide for the
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1 establishment of a national employment system and

2 for cooperation with the States in the promotion of

3 such system, and for other purposes’, approved June

4 6, 1933 (29 U.S.C. 49b(a)),

5 ‘‘(2) by a State or local agency charged with

6 the duty of carrying a State plan for child support

7 approved under part D of title IV of the Social Se8 curity Act,

9 shall be considered to constitute expenses incurred in the

10 administration of such State plan.’’.

11 (b) Paragraph (9) of section 51(d) of the Internal

12 Revenue Code of 1986 is amended by striking all that fol13 lows ‘‘agency as’’ and inserting ‘‘being eligible for financial

14 assistance under part A of title IV of the Social Security

15 Act and as having continually received such financial as16 sistance during the 90-day period which immediately pre17 cedes the date on which such individual is hired by the

18 employer.’’

19 (c) Section 9121 of the Omnibus Budget Reconcili20 ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.

21 (d) Section 9122 of the Omnibus Budget Reconcili22 ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.

23 (e) Section 221 of the Housing and Urban-Rural Re24 covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
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1 ment under AFDC of certain rental payments for federally

2 assisted housing, is hereby repealed.

3 (f) Section 159 of the Tax Equity and Fiscal Respon4 sibility Act of 1982 (42 U.S.C. 602 note) is hereby re5 pealed.

6 (g) Section 202(d) of the Social Security Amend7 ments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is here8 by repealed.

9 (h) Section 233 of the Social Security Act Amend10 ments of 1994 (42 U.S.C. 602 note) is hereby repealed.

11 (i) Section 903 of the Stewart B. McKinney Home12 less Assistance Amendments Act of 1988 (42 U.S.C.

13 11381 note), relating to demonstration projects to reduce

14 number of AFDC families in welfare hotels, is amended—

15 (A) in subsection (a), by striking ‘‘aid to fami16 lies with dependent children under a State plan ap17 proved’’ and inserting ‘‘assistance under a State pro18 gram funded’’; and

19 (B) in subsection (c), by striking ‘‘aid to fami20 lies with dependent children in the State under a

21 State plan approved’’ and inserting ‘‘assistance in

22 the State under a State program funded’’.
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1 SEC. 106. CONTINUED APPLICATION OF CURRENT STAND2 ARDS UNDER MEDICAID PROGRAM.

3 (a) IN GENERAL.—Title XIX of the Social Security

4 Act is amended—

5 (1) in section 1931, by inserting ‘‘subject to

6 section 1931(a),’’ after ‘‘under this title,’’ and by re7 designating such section as section 1932; and

8 (2) by inserting after section 1930 the following

9 new section:

10 ‘‘CONTINUED APPLICATION OF AFDC STANDARDS

11 ‘‘SEC. 1931. (a) For purposes of applying this title

12 on and after October 1, 1995, with respect to a State—

13 ‘‘(1) except as provided in paragraph (2), any

14 reference in this title (or other provision of law in

15 relation to the operation of this title) to a provision

16 of part A of title IV of this Act, or a State plan

17 under such part, shall be considered a reference to

18 such provision or plan as in effect as of March 7,

19 1995, with respect to the State and eligibility for

20 medical assistance under this title shall be deter21 mined as if such provision or plan (as in effect as

22 of such date) had remained in effect on and after

23 October 1, 1995; and

24 ‘‘(2) any reference in section 1902(a)(5) or

25 1902(a)(55) to a State plan approved under part A

26 of title IV shall be deemed a reference to a State
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1 program funded under such part (as in effect on and

2 after October 1, 1995).

3 ‘‘(b) In the case of a waiver of a provision of part

4 A of title IV in effect with respect to a State as of March

5 7, 1995, if the waiver affects eligibility of individuals for

6 medical assistance under this title, such waiver may con7 tinue to be applied, at the option of the State, in relation

8 to this title after the date the waiver would otherwise

9 expire.’’

10 (b) PLAN AMENDMENT.—Section 1902(a) of such

11 Act (42 U.S.C. 1396a(a)) is amended—

12 (1) by striking ‘‘and’’ at the end of paragraph

13 (61),

14 (2) by striking the period at the end of para15 graph (62) and inserting ‘‘; and’’, and

16 (3) by inserting after paragraph (62) the fol17 lowing new paragraph:

18 ‘‘(63) provide for continuing to administer eligi19 bility standards with respect to individuals who are

20 (or seek to be) eligible for medical assistance based

21 on the application of section 1931.’’.

22 (c) CONFORMING AMENDMENTS.—(1) Section

23 1902(c) of such Act (42 U.S.C. 1396a(c)) is amended by

24 striking ‘‘if—’’ and all that follows and inserting the fol25 lowing: ‘‘if the State requires individuals described in sub-
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1 section (l)(1) to apply for assistance under the State pro2 gram funded under part A of title IV as a condition of

3 applying for or receiving medical assistance under this

4 title.’’.

5 (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i))

6 is amended by striking paragraph (9).

7 (d) EFFECTIVE DATE.—The amendments made by

8 this section shall apply to medical assistance furnished for

9 calendar quarters beginning on or after October 1, 1995.

10 SEC. 107. EFFECTIVE DATE.

11 (a) IN GENERAL.—Except as otherwise provided in

12 this title, this title and the amendments made by this title

13 shall take effect on October 1, 1995.

14 (b) DELAYED APPLICABILITY OF AUTHORITY TO

15 TEMPORARILY REDUCE ASSISTANCE FOR CERTAIN FAMI16 LIES WHICH INCLUDE A CHILD WHOSE PATERNITY IS

17 NOT ESTABLISHED.—Section 405(a)(9) of the Social Se18 curity Act, as added by the amendment made by section

19 101 of this Act, shall not apply to individuals who, imme20 diately before the effective date of this title, are recipients

21 of aid under a State plan approved under part A of title

22 IV of the Social Security Act, until the end of the 1-year

23 (or, at the option of the State, 2-year) period that begins

24 with such effective date.
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1 (c) TRANSITION RULE.—The amendments made by

2 this title shall not apply with respect to—

3 (1) powers, duties, functions, rights, claims,

4 penalties, or obligations applicable to aid or services

5 provided before the effective date of this title under

6 the provisions amended; and

7 (2) administrative actions and proceedings com8 menced before such date, or authorized before such

9 date to be commenced, under such provisions.

10 TITLE II—CHILD PROTECTION

11 BLOCK GRANT PROGRAM

12 SEC. 201. ESTABLISHMENT OF PROGRAM.

13 Part B of title IV of the Social Security Act (42

14 U.S.C. 620–635) is amended to read as follows:

15 ‘‘PART B—BLOCK GRANTS TO STATES FOR THE

16 PROTECTION OF CHILDREN

17 ‘‘SEC. 421. PURPOSE.

18 ‘‘The purpose of this part is to enable eligible States

19 to carry out a child protection program to—

20 ‘‘(1) identify and assist families at risk of abus21 ing or neglecting their children;

22 ‘‘(2) operate a system for receiving reports of

23 abuse or neglect of children;

24 ‘‘(3) investigate families reported to abuse or

25 neglect their children;
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1 ‘‘(4) provide support, treatment, and family

2 preservation services to families which are, or are at

3 risk of, abusing or neglecting their children;

4 ‘‘(5) support children who must be removed

5 from or who cannot live with their families;

6 ‘‘(6) make timely decisions about permanent liv7 ing arrangements for children who must be removed

8 from or who cannot live with their families; and

9 ‘‘(7) provide for continuing evaluation and im10 provement of child protection laws, regulations, and

11 services.

12 ‘‘SEC. 422. ELIGIBLE STATES.

13 ‘‘(a) IN GENERAL.—As used in this part, the term

14 ‘eligible State’ means, with respect to a fiscal year, a State

15 that, during the 3-year period immediately preceding the

16 fiscal year, has submitted to the Secretary a plan that in17 cludes the following:

18 ‘‘(1) OUTLINE OF CHILD PROTECTION PRO19 GRAM.—A written document that outlines the activi20 ties the State intends to conduct to achieve the pur21 pose of this part, including the procedures to be

22 used for—

23 ‘‘(A) receiving reports of child abuse or ne24 glect;

25 ‘‘(B) investigating such reports;
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1 ‘‘(C) protecting children in families in

2 which child abuse or neglect is found to have

3 occurred;

4 ‘‘(D) removing children from dangerous

5 settings;

6 ‘‘(E) protecting children in foster care;

7 ‘‘(F) promoting timely adoptions;

8 ‘‘(G) protecting the rights of families;

9 ‘‘(H) preventing child abuse and neglect;

10 and

11 ‘‘(I) establishing and responding to citizen

12 review panels under section 425.

13 ‘‘(2) CERTIFICATION OF STATE LAW REQUIRING

14 THE REPORTING OF CHILD ABUSE AND NEGLECT.—

15 A certification that the State has in effect laws that

16 require public officials and other professionals to re17 port actual or suspected instances of child abuse or

18 neglect.

19 ‘‘(3) CERTIFICATION OF STATE PROGRAM TO

20 INVESTIGATE CHILD ABUSE AND NEGLECT CASES.—

21 A certification that the State has in effect a pro22 gram to investigate child abuse and neglect cases.

23 ‘‘(4) CERTIFICATION OF STATE PROCEDURES

24 FOR REMOVAL AND PLACEMENT OF ABUSED OR NE25 GLECTED CHILDREN.—A certification that the State
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1 has in effect procedures for removal from families

2 and placement of abused or neglected children.

3 ‘‘(5) CERTIFICATION OF STATE PROCEDURES

4 FOR DEVELOPING AND REVIEWING WRITTEN PLANS

5 FOR PERMANENT PLACEMENT OF REMOVED CHIL6 DREN.—A certification that the State has in effect

7 procedures for ensuring that a written plan is pre8 pared for children who have been removed from their

9 families, which specifies the goal for achieving a per10 manent placement for the child in a timely fashion,

11 for ensuring that the written plan is reviewed every

12 6 months, and for ensuring that information about

13 such children is collected regularly and recorded in

14 case records, and a description of such procedures.

15 ‘‘(6) CERTIFICATION THAT THE STATE WILL

16 CONTINUE TO HONOR ADOPTION ASSISTANCE

17 AGREEMENTS.—A certification that the State will

18 honor any adoption assistance agreement (as defined

19 in section 475(3), as in effect immediately before the

20 effective date of this part) entered into by an agency

21 of the State, that is in effect as of such effective

22 date.

23 ‘‘(7) CERTIFICATION OF STATE PROGRAM TO

24 PROVIDE INDEPENDENT LIVING SERVICES.—A cer25 tification that the State has in effect a program to
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1 provide independent living services to individuals in

2 the child protection program of the State who have

3 attained 16 years of age but have not attained 20

4 (or, at the option of the State, 22) years of age, and

5 who do not have a family to which to be returned

6 for assistance in making the transition to self-suffi7 cient adulthood.

8 ‘‘(8) CERTIFICATION OF STATE PROCEDURES

9 TO RESPOND TO REPORTING OF MEDICAL NEGLECT

10 OF DISABLED INFANTS.—

11 ‘‘(A) IN GENERAL.—A certification that

12 the State has in place for the purpose of re13 sponding to the reporting of medical neglect of

14 infants (including instances of withholding of

15 medically indicated treatment from disabled in16 fants with life-threatening conditions), proce17 dures or programs, or both (within the State

18 child protective services system), to provide

19 for—

20 ‘‘(i) coordination and consultation

21 with individuals designated by and within

22 appropriate health-care facilities;

23 ‘‘(ii) prompt notification by individ24 uals designated by and within appropriate

25 health-care facilities of cases of suspected
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1 medical neglect (including instances of

2 withholding of medically indicated treat3 ment from disabled infants with life-threat4 ening conditions); and

5 ‘‘(iii) authority, under State law, for

6 the State child protective service to pursue

7 any legal remedies, including the authority

8 to initiate legal proceedings in a court of

9 competent jurisdiction, as may be nec10 essary to prevent the withholding of medi11 cally indicated treatment from disabled in12 fants with life-threatening conditions.

13 ‘‘(B) WITHHOLDING OF MEDICALLY INDI14 CATED TREATMENT.—As used in subparagraph

15 (A), the term ‘withholding of medically indi16 cated treatment’ means the failure to respond

17 to the infant’s life-threatening conditions by

18 providing treatment (including appropriate nu19 trition, hydration, and medication) which, in the

20 treating physician’s or physicians’ reasonable

21 medical judgment, will be most likely to be ef22 fective in ameliorating or correcting all such

23 conditions, except that such term does not in24 clude the failure to provide treatment (other

25 than appropriate nutrition, hydration, or medi-
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1 cation) to an infant when, in the treating physi2 cian’s or physicians’ reasonable medical judg3 ment—

4 ‘‘(i) the infant is chronically and irre5 versibly comatose;

6 ‘‘(ii) the provision of such treatment

7 would—

8 ‘‘(I) merely prolong dying;

9 ‘‘(II) not be effective in amelio10 rating or correcting all of the infant’s

11 life-threatening conditions; or

12 ‘‘(III) otherwise be futile in

13 terms of the survival of the infant; or

14 ‘‘(iii) the provision of such treatment

15 would be virtually futile in terms of the

16 survival of the infant and the treatment it17 self under such circumstances would be in18 humane.

19 ‘‘(9) IDENTIFICATION OF CHILD PROTECTION

20 GOALS.—The quantitative goals of the State child

21 protection program.

22 ‘‘(b) DETERMINATIONS.—The Secretary shall deter23 mine whether a plan submitted pursuant to subsection (a)

24 contains the material required by subsection (a). The Sec25 retary may not require a State to include in such a plan
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1 any material not described in subsection (a), and may not

2 review the adequacy of State procedures.

3 ‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

4 ‘‘(a) ENTITLEMENT.—

5 ‘‘(1) IN GENERAL.—Each eligible State shall be

6 entitled to receive from the Secretary for each fiscal

7 year specified in subsection (b)(1) a grant in an

8 amount equal to the State share of the child protec9 tion amount for the fiscal year.

10 ‘‘(2) ADDITIONAL GRANT.—

11 ‘‘(A) IN GENERAL.—In addition to a grant

12 under paragraph (1) of this subsection, the Sec13 retary shall pay to each eligible State for each

14 fiscal year specified in subsection (b)(1) an

15 amount equal to the State share of the amount

16 (if any) appropriated pursuant to subparagraph

17 (B) of this paragraph for the fiscal year.

18 ‘‘(B) LIMITATION ON AUTHORIZATION OF

19 APPROPRIATIONS.—For grants under subpara20 graph (A), there are authorized to be appro21 priated to the Secretary an amount not to ex22 ceed $486,000,000 for each fiscal year specified

23 in subsection (b)(1).

24 ‘‘(b) DEFINITIONS.—As used in this section:
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1 ‘‘(1) CHILD PROTECTION AMOUNT.—The term

2 ‘child protection amount’ means—

3 ‘‘(A) $3,930,000,000 for fiscal year 1996;

4 ‘‘(B) $4,195,000,000 for fiscal year 1997;

5 ‘‘(C) $4,507,000,000 for fiscal year 1998;

6 ‘‘(D) $4,767,000,000 for fiscal year 1999;

7 and

8 ‘‘(E) $5,071,000,000 for fiscal year 2000.

9 ‘‘(2) STATE SHARE.—

10 ‘‘(A) IN GENERAL.—The term ‘State

11 share’ means the qualified child protection ex12 penses of the State divided by the sum of the

13 qualified child protection expenses of all of the

14 States.

15 ‘‘(B) QUALIFIED CHILD PROTECTION EX16 PENSES.—The term ‘qualified child protection

17 expenses’ means, with respect to a State the

18 greater of—

‘‘(i) 1 19 ⁄3 of the total amount of obliga20 tions to the State under the provisions of

21 law specified in subparagraph (B) for fis22 cal years 1992, 1993, and 1994; or

23 ‘‘(ii) the total amount of obligations to

24 the State under such provisions of law for

25 fiscal year 1994.
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1 ‘‘(C) PROVISIONS OF LAW.—The provisions

2 of law specified in this subparagraph are the

3 following (as in effect immediately before the

4 effective date of this part):

5 ‘‘(i) Section 474(a) (other than sub6 paragraphs (C) and (D) of paragraph (3))

7 of this Act.

8 ‘‘(ii) Section 304 of the Family Vio9 lence Prevention and Services Act.

10 ‘‘(iii) Section 107(a) of the Child

11 Abuse Prevention and Treatment Act.

12 ‘‘(iv) Section 201(d) of the Child

13 Abuse Prevention and Treatment Act.

14 ‘‘(v) Section 423 of this Act.

15 ‘‘(3) STATE.—The term ‘State’ includes the

16 several States, the District of Columbia, the Com17 monwealth of Puerto Rico, the United States Virgin

18 Islands, Guam, and American Samoa.

19 ‘‘(c) USE OF GRANT.—

20 ‘‘(1) IN GENERAL.—A State to which a grant

21 is made under this section may use the grant in any

22 manner that the State deems appropriate to accom23 plish the purpose of this part, including setting up

24 abuse and neglect reporting systems, abuse and ne-
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1 glect prevention, family preservation, foster care,

2 adoption, program administration, and training.

3 ‘‘(2) AUTHORITY TO USE PORTION OF GRANT

4 FOR OTHER PURPOSES.—

5 ‘‘(A) IN GENERAL.—A State may use not

6 more than 30 percent of the amount of the

7 grant made to the State under this section for

8 fiscal year 1998 or a succeeding fiscal year to

9 carry out a State program pursuant to any or

10 all of the following provisions of law:

11 ‘‘(i) Part A of this title.

12 ‘‘(ii) Title XX of this Act.

13 ‘‘(iii) The Child Care and Develop14 ment Block Grant Act of 1990.

15 ‘‘(iv) Any provision of law, enacted

16 into law during the 104th Congress, under

17 which grants are made to States for food

18 and nutrition or employment and training.

19 ‘‘(B) APPLICABLE RULES.—Any amount

20 paid to the State under this part that is used

21 to carry out a State program pursuant to a pro22 vision of law specified in subparagraph (A)

23 shall not be subject to the requirements of this

24 part, but shall be subject to the requirements

25 that apply to Federal funds provided directly
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1 under the provision of law to carry out the pro2 gram.

3 ‘‘(3) TIMING OF EXPENDITURES.—A State to

4 which a grant is made under this section for a fiscal

5 year shall expend the total amount of the grant not

6 later than the end of the immediately succeeding fis7 cal year.

8 ‘‘(4) RULE OF INTERPRETATION.—This part

9 shall not be interpreted to prohibit short- and long10 term foster care facilities operated for profit from

11 receiving funds provided under this part.

12 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

13 pay each eligible State the amount of the grant payable

14 to the State under this section in quarterly installments.

15 ‘‘(e) PENALTIES.—

16 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

17 THIS PART.—

18 ‘‘(A) IN GENERAL.—If an audit conducted

19 pursuant to chapter 75 of title 31, United

20 States Code, finds that an amount paid to a

21 State under this section for a fiscal year has

22 been used in violation of this part, then the

23 Secretary shall reduce the amount of the grant

24 that would (in the absence of this subsection)

25 be payable to the State under this section for
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1 the immediately succeeding fiscal year by the

2 amount so used.

3 ‘‘(B) LIMITATION.—In carrying out sub4 paragraph (A), the Secretary shall not reduce

5 any quarterly payment by more than 25

6 percent.

7 ‘‘(C) CARRYFORWARD OF UNRECOVERED

8 PENALTY.—To the extent that subparagraph

9 (B) prevents the Secretary from recovering dur10 ing a fiscal year the full amount of a penalty

11 imposed on a State under subparagraph (A) for

12 a prior fiscal year, the Secretary shall apply

13 subparagraph (A) to the grant otherwise pay14 able to the State under this section for the im15 mediately succeeding fiscal year.

16 ‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—If

17 an audit conducted pursuant to chapter 75 of title

18 31, United States Code, finds that the amount ex19 pended by a State (other than from amounts pro20 vided by the Federal Government) during fiscal year

21 1996 or 1997 to carry out the State program funded

22 under this part is less than the total amount ex23 pended by the State (other than from amounts pro24 vided by the Federal Government) during fiscal year

25 1995 under parts B and E of this title, then the
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1 Secretary shall reduce the amount of the grant that

2 would (in the absence of this subsection) be payable

3 to the State under this section for the immediately

4 succeeding fiscal year by the amount of the dif5 ference.

6 ‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE7 PORT.—

8 ‘‘(A) IN GENERAL.—The Secretary shall

9 reduce by 3 percent the amount of the grant

10 that would (in the absence of this subsection)

11 be payable to a State under this section for a

12 fiscal year if the Secretary determines that the

13 State has not submitted the report required by

14 section 427(b) for the immediately preceding

15 fiscal year, within 6 months after the end of the

16 immediately preceding fiscal year.

17 ‘‘(B) RESCISSION OF PENALTY.—The Sec18 retary shall rescind a penalty imposed on a

19 State under subparagraph (A) with respect to a

20 report for a fiscal year if the State submits the

21 report before the end of the immediately suc22 ceeding fiscal year.

23 ‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—Except

24 as expressly provided in this part, the Secretary may not
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1 regulate the conduct of States under this part or enforce

2 any provision of this part.

3 ‘‘SEC. 424. CHILD PROTECTION STANDARDS.

4 ‘‘Each State to which a grant is made under section

5 423 shall operate a child protection program in accorance

6 with the following standards in order to assure the protec7 tion of children:

8 ‘‘(1) The primary standard by which a State

9 child welfare system shall be judged is the protection

10 of children.

11 ‘‘(2) Each State shall investigate reports of

12 abuse and neglect promptly.

13 ‘‘(3) Children removed from their homes shall

14 have a permanency plan and a dispositional hearing

15 by a court or a court-appointed body within 3

16 months after a fact-finding hearing.

17 ‘‘(4) All child protection cases in which the

18 child is placed outside the home shall be reviewed

19 every 6 months unless the child is in a long-term

20 placement.

21 ‘‘SEC. 425. CITIZEN REVIEW PANELS.

22 ‘‘(a) ESTABLISHMENT.—Each State to which a grant

23 is made under section 423 shall establish at least 3 citizen

24 review panels.
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1 ‘‘(b) COMPOSITION.—Each panel established under

2 subsection (a) shall be broadly representative of the com3 munity from which drawn.

4 ‘‘(c) FREQUENCY OF MEETINGS.—Each panel estab5 lished under subsection (a) shall meet not less frequently

6 than quarterly.

7 ‘‘(d) DUTIES.—

8 ‘‘(1) IN GENERAL.—Each panel established

9 under subsection (a) shall, by examining specific

10 cases, determine the extent to which the State and

11 local agencies responsible for carrying out activities

12 under this part are doing so in accordance with the

13 State plan, with the child protection standards set

14 forth in section 424, and with any other criteria that

15 the panel considers important to ensure the protec16 tion of children.

17 ‘‘(2) CONFIDENTIALITY.—The members and

18 staff of any panel established under subsection (a)

19 shall not disclose to any person or government any

20 information about any specific child protection case

21 with respect to which the panel is provided informa22 tion.

23 ‘‘(e) STATE ASSISTANCE.—Each State that estab24 lishes a panel under subsection (a) shall afford the panel

25 access to any information on any case that the panel de-
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1 sires to review, and shall provide the panel with staff as2 sistance in performing its duties.

3 ‘‘(f) REPORTS.—Each panel established under sub4 section (a) shall make a public report of its activities after

5 each meeting.

6 ‘‘SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING

7 AND RUNAWAY CHILDREN.

8 ‘‘(a) IN GENERAL.—The Secretary shall establish

9 and operate a clearinghouse of information on children

10 who are missing or have run away from home, including

11 a 24-hour toll-free telephone hotline which may be con12 tacted for information on such children.

13 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO14 PRIATIONS.—To carry out subsection (a), there are au15 thorized to be appropriated to the Secretary not to exceed

16 $7,000,000 for each fiscal year.

17 ‘‘SEC. 427. DATA COLLECTION AND REPORTING.

18 ‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE

19 GOALS.—On the date that is 3 years after the effective

20 date of this part and annually thereafter, each State to

21 which a grant is made under section 423 shall submit to

22 the Secretary a report that contains quantitative informa23 tion on the extent to which the State is making progress

24 toward achieving the goals of the State child protection

25 program.
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1 ‘‘(b) ANNUAL STATE DATA REPORTS.—Each State

2 to which a grant is made under section 423 shall annually

3 submit to the Secretary of Health and Human Services

4 a report that includes the following:

5 ‘‘(1) The number of children who were reported

6 to the State during the year as abused or neglected.

7 ‘‘(2) Of the number of children described in

8 paragraph (1), the number with respect to whom

9 such reports were substantiated.

10 ‘‘(3) Of the number of children described in

11 paragraph (2)—

12 ‘‘(A) the number that did not receive serv13 ices during the year under the State program

14 funded under this part;

15 ‘‘(B) the number that received services

16 during the year under the State program fund17 ed under this part or an equivalent State pro18 gram; and

19 ‘‘(C) the number that were removed from

20 their families during the year.

21 ‘‘(4) The number of families that received pre22 ventive services from the State during the year.

23 ‘‘(5) The number of children who entered foster

24 care under the responsibility of the State during the

25 year.
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1 ‘‘(6) The number of children in foster care

2 under the responsibility of the State who exited from

3 foster care during the year.

4 ‘‘(7) The types of foster care placements made

5 by the State during the year, and the average

6 monthly number of children in each type of place7 ment.

8 ‘‘(8) The average length of the foster care

9 placements made by the State during the year.

10 ‘‘(9) The age, ethnicity, gender, and family in11 come of the children placed in foster care under the

12 responsibility of the State during the year.

13 ‘‘(10) The number of children in foster care

14 under the responsibility of the State with respect to

15 whom the State has the goal of adoption.

16 ‘‘(11) The number of children in foster care

17 under the responsibility of the State who were freed

18 for adoption during the year.

19 ‘‘(12) The number of children in foster care

20 under the responsibility of the State whose adoptions

21 were finalized during the year.

22 ‘‘(13) The number of disrupted adoptions in the

23 State during the year.

24 ‘‘(14) Quantitative measurements showing

25 whether the State is making progress toward the
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1 child protection goals identified by the State under

2 section 422(a)(9).

3 ‘‘(15) The number of infants abandoned in the

4 State during the year, and the number of such in5 fants who were legally adopted during the year and

6 the length of time between the discovery of the aban7 donment and such adoption.

8 ‘‘(16) The number of children who died during

9 the year while in foster care under the responsibility

10 of the State.

11 ‘‘(17) The number of deaths in the State dur12 ing the year resulting from child abuse or neglect.

13 ‘‘(18) The number of children served by the

14 independent living program of the State.

15 ‘‘(19) Any other information which the Sec16 retary and a majority of the States agree is appro17 priate to collect for purposes of this part.

18 ‘‘(20) The response of the State to the findings

19 and recommendations of the citizen review panels es20 tablished by the State pursuant to section 425.

21 ‘‘(c) AUTHORITY OF STATES TO USE ESTIMATES.—

22 A State may comply with a requirement to provide precise

23 numerical information described in subsection (b) by sub24 mitting an estimate which is obtained through the use of

25 scientifically acceptable sampling methods.
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1 ‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within

2 6 months after the end of each fiscal year, the Secretary

3 shall prepare a report based on information provided by

4 the States for the fiscal year pursuant to subsection (b),

5 and shall make the report and such information available

6 to the Congress and the public.

7 ‘‘(e) SCOPE OF STATE PROGRAM FUNDED UNDER

8 THIS PART.—As used in subsection (b), the term ‘State

9 program funded under this part’ includes any equivalent

10 State program.

11 ‘‘SEC. 428. RESEARCH AND TRAINING.

12 ‘‘(a) IN GENERAL.—The Secretary shall conduct re13 search and training in child welfare.

14 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO15 PRIATIONS.—To carry out subsection (a), there are au16 thorized to be appropriated to the Secretary not to exceed

17 $10,000,000 for each fiscal year.

18 ‘‘SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD

19 WELFARE.

20 ‘‘(a) IN GENERAL.—The Secretary shall conduct a

21 national study based on random samples of children who

22 are at risk of child abuse or neglect, or are determined

23 by States to have been abused or neglected.

24 ‘‘(b) REQUIREMENTS.—The study required by sub25 section (a) shall—
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1 ‘‘(1) have a longitudinal component; and

2 ‘‘(2) yield data reliable at the State level for as

3 many States as the Secretary determines is feasible.

4 ‘‘(c) PREFERRED CONTENTS.—In conducting the

5 study required by subsection (a), the Secretary should—

6 ‘‘(1) collect data on the child protection pro7 grams of different small States or (different groups

8 of such States) in different years to yield an occa9 sional picture of the child protection programs of

10 such States;

11 ‘‘(2) carefully consider selecting the sample

12 from cases of confirmed abuse or neglect; and

13 ‘‘(3) follow each case for several years while ob14 taining information on, among other things—

15 ‘‘(A) the type of abuse or neglect involved;

16 ‘‘(B) the frequency of contact with State

17 or local agencies;

18 ‘‘(C) whether the child involved has been

19 separated from the family, and, if so, under

20 what circumstances;

21 ‘‘(D) the number, type, and characteristics

22 of out-of-home placements of the child; and

23 ‘‘(E) the average duration of each place24 ment.

25 ‘‘(d) REPORTS.—
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1 ‘‘(1) IN GENERAL.—From time to time, the

2 Secretary shall prepare reports summarizing the re3 sults of the study required by subsection (a), and

4 should include in such reports a comparison of the

5 results of the study with the information reported by

6 States under section 427.

7 ‘‘(2) AVAILABILITY.—The Secretary shall make

8 available to the public any report prepared under

9 paragraph (1), in writing or in the form of an elec10 tronic data tape.

11 ‘‘(3) AUTHORITY TO CHARGE FEE.—The Sec12 retary may charge and collect a fee for the furnish13 ing of reports under paragraph (2).

14 ‘‘(e) FUNDING.—Out of any money in the Treasury

15 of the United States not otherwise appropriated, the Sec16 retary of the Treasury shall pay to the Secretary of Health

17 and Human Services $6,000,000 for each of fiscal years

18 1996 through 2000 to carry out this section.

19 ‘‘SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC

20 ADOPTION.

21 ‘‘(a) PURPOSE.—The purpose of this section is to de22 crease the length of time that children wait to be adopted

23 and to prevent discrimination in the placement of children

24 on the basis of race, color, or national origin.

25 ‘‘(b) MULTIETHNIC PLACEMENTS.—
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1 ‘‘(1) PROHIBITION.—A State or other entity

2 that receives funds from the Federal Government

3 and is involved in adoption or foster care placements

4 may not—

5 ‘‘(A) deny to any person the opportunity to

6 become an adoptive or a foster parent, on the

7 basis of the race, color, or national origin of the

8 person, or of the child, involved; or

9 ‘‘(B) delay or deny the placement of a

10 child for adoption or into foster care, or other11 wise discriminate in making a placement deci12 sion, on the basis of the race, color, or national

13 origin of the adoptive or foster parent, or the

14 child, involved.

15 ‘‘(2) PENALTIES.—

16 ‘‘(A) STATE VIOLATORS.—A State that

17 violates paragraph (1) during a period shall

18 remit to the Secretary all funds that were paid

19 to the State under this part during the period.

20 ‘‘(B) PRIVATE VIOLATORS.—Any other en21 tity that violates paragraph (1) during a period

22 shall remit to the Secretary all funds that were

23 paid to the entity during the period by a State

24 from funds provided under this part.

25 ‘‘(3) PRIVATE CAUSE OF ACTION.—
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1 ‘‘(A) IN GENERAL.—Any individual who is

2 aggrieved by a violation of paragraph (1) by a

3 State or other entity may bring an action seek4 ing relief in any United States district court.

5 ‘‘(B) STATUTE OF LIMITATIONS.—An ac6 tion under this paragraph may not be brought

7 more than 2 years after the date the alleged

8 violation occurred.’’.

9 SEC. 202. CONFORMING AMENDMENTS.

10 (a) AMENDMENTS TO PART D OF TITLE IV OF THE

11 SOCIAL SECURITY ACT.—

12 (1) Section 452(a)(10)(C) of the Social Security

13 Act (42 U.S.C. 652(a)(10)(C)), as amended by sec14 tion 104(b)(2)(C) of this Act, is amended—

15 (A) by striking ‘‘(or foster care mainte16 nance payments under part E)’’ and inserting

17 ‘‘or cash payments under a State program

18 funded under part B’’; and

19 (B) by striking ‘‘or 471(a)(17)’’.

20 (2) Section 452(g)(2)(A) of such Act (42

21 U.S.C. 652(g)(2)(A)) is amended—

22 (A) by striking ‘‘or E’’ the 1st place such

23 term appears and inserting ‘‘or benefits or serv24 ices are being provided under the State pro25 gram funded under part B’’; and
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1 (B) by striking ‘‘or E’’ the 2nd place such

2 term appears and inserting ‘‘or benefits or serv3 ices were being provided under the State pro4 gram funded under part B’’.

5 (3) Section 456(a)(1) of such Act (42 U.S.C.

6 656(a)(1)) is amended by striking ‘‘foster care main7 tenance payments’’ and inserting ‘‘benefits or serv8 ices under a State program funded under part B’’.

9 (4) Section 466(a)(3)(B) of such Act (42

10 U.S.C. 666(a)(3)(B)), as amended by section

11 104(b)(13) of this Act, is amended by striking ‘‘or

12 471(a)(17)’’.

13 (b) REPEAL OF PART E OF TITLE IV OF THE SOCIAL

14 SECURITY ACT.—Part E of title IV of such Act (42

15 U.S.C. 671–679) is hereby repealed.

16 (c) AMENDMENT TO TITLE XVI OF THE SOCIAL SE17 CURITY ACT AS IN EFFECT WITH RESPECT TO THE

18 STATES.—Section 1611(c)(5)(B) of such Act (42 U.S.C.

19 1382(c)(5)(B)) is amended to read as follows: ‘‘(B) the

20 State program funded under part B of title IV,’’.

21 (d) REPEAL OF SECTION 13712 OF THE OMNIBUS

22 BUDGET RECONCILIATION ACT OF 1993.—Section 13712

23 of the Omnibus Budget Reconciliation Act of 1993 (42

24 U.S.C. 670 note) is hereby repealed.
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1 (e) AMENDMENT TO SECTION 9442 OF THE OMNIBUS

2 BUDGET RECONCILIATION ACT OF 1986.—Section

3 9442(4) of the Omnibus Budget Reconciliation Act of

4 1986 (42 U.S.C. 679a(4)) is amended by inserting ‘‘(as

5 in effect before October 1, 1995)’’ after ‘‘Act’’.

6 (f) REPEAL OF SECTION 553 OF THE HOWARD M.

7 METZENBAUM MULTIETHNIC PLACEMENT ACT OF

8 1994.—Section 553 of the Howard M. Metzenbaum

9 Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108

10 Stat. 4056) is hereby repealed.

11 (g) REPEAL OF SUBTITLE C OF TITLE XVII OF THE

12 VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT

13 OF 1994.—Subtitle C of title XVII of the Violent Crime

14 Control and Law Enforcement Act of 1994 is hereby re15 pealed.

16 (h) REPEAL OF SUBTITLE A OF TITLE II OF THE

17 CRIME CONTROL ACT OF 1990.—Subtitle A of title II of

18 the Crime Control Act of 1990 is hereby repealed.

19 SEC. 203. CONTINUED APPLICATION OF CURRENT STAND20 ARDS UNDER MEDICAID PROGRAM.

21 Section 1931 of the Social Security Act, as inserted

22 by section 106(a)(2) of this Act, is amended—

23 (1) in subsection (a)(1)—

24 (A) by striking ‘‘part A of’’, and
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1 (B) by striking ‘‘under such part’’ and in2 serting ‘‘under a part of such title’’; and

3 (2) in subsection (b), by striking ‘‘part A of’’.

4 SEC. 204. EFFECTIVE DATE.

5 (a) IN GENERAL.—This title and the amendments

6 made by this title shall take effect on October 1, 1995.

7 (b) TRANSITION RULE.—The amendments made by

8 this title shall not apply with respect to—

9 (1) powers, duties, functions, rights, claims,

10 penalties, or obligations applicable to aid or services

11 provided before the effective date of this title under

12 the provisions amended; and

13 (2) administrative actions and proceedings com14 menced before such date, or authorized before such

15 date to be commenced, under such provisions.

16 TITLE III—BLOCK GRANTS FOR

17 CHILD CARE AND FOR NUTRI18 TION ASSISTANCE

19 Subtitle A—Child Care Block

20 Grants

21 SEC. 301. AMENDMENTS TO THE CHILD CARE AND DEVEL22 OPMENT BLOCK GRANT ACT OF 1990.

23 (a) GOALS.—Section 658A of the Child Care and De24 velopment Block Grant Act of 1990 (42 U.S.C. 9801 note)

25 is amended—
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1 (1) in the heading of such section by inserting

2 ‘‘AND GOALS’’ after ‘‘TITLE’’,

3 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

4 ‘‘This’’, and

5 (3) by adding at the end the following:

6 ‘‘(b) GOALS.—The goals of this subchapter are—

7 ‘‘(1) to allow each State maximum flexibility in

8 developing child care programs and policies that best

9 suit the needs of children and parents within such

10 State;

11 ‘‘(2) to promote parental choice to empower

12 working parents to make their own decisions on the

13 child care that best suits their family’s needs;

14 ‘‘(3) to encourage States to provide consumer

15 education information to help parents make in16 formed choices about child care;

17 ‘‘(4) to assist States to provide child care to

18 parents trying to achieve independence from public

19 assistance; and

20 ‘‘(5) to assist States in implementing the

21 health, safety, licensing, and registration standards

22 established in State regulations.’’.

23 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

24 658B of the Child Care and Development Block Grant Act

25 of 1990 (42 U.S.C. 9858) is amended to read as follows:
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1 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There is authorized to be appropriated to carry out

3 this subchapter $1,943,000,000 for each of the fiscal

4 years 1996, 1997, 1998, 1999, and 2000.’’.

5 (c) LEAD ENTITY.—Section 658D of the Child Care

6 and Development Block Grant Act of 1990 (42 U.S.C.

7 9858b) is amended—

8 (1) in the heading of such section by striking

9 ‘‘AGENCY’’ inserting ‘‘ENTITY’’,

10 (2) in subsection (a) by inserting ‘‘or other en11 tity’’ after ‘‘State agency’’, and

12 (3) by striking ‘‘lead agency’’ each place it ap13 pears and inserting ‘‘lead entity’’.

14 (d) APPLICATION AND PLAN.—Section 658E of the

15 Child Care and Development Block Grant Act of 1990 (42

16 U.S.C. 9858c) is amended—

17 (1) in subsection (b)—

18 (A) by striking ‘‘implemented—’’ and all

19 that follows through ‘‘(2)’’ and inserting ‘‘im20 plemented’’, and

21 (B) by striking ‘‘for subsequent State

22 plans’’,

23 (2) in subsection (c)—

24 (A) in paragraph (1)—
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1 (i) in the heading of such paragraph

2 by striking ‘‘AGENCY’’ and inserting ‘‘EN3 TITY’’, and

4 (ii) by striking ‘‘agency’’ and inserting

5 ‘‘entity’’,

6 (B) in paragraph (2)—

7 (i) in subparagraph (A)—

8 (I) in clause (i) by striking ‘‘,

9 other than through assistance pro10 vided under paragraph (3)(C),’’ and

11 (II) by striking ‘‘except’’ and all

12 that follows through ‘‘1992’’, and in13 serting ‘‘and provide a detailed de14 scription of the procedures the State

15 will implement to carry out the re16 quirements of this subparagraph’’,

17 (ii) in subparagraph (B)—

18 (I) by striking ‘‘Provide assur19 ances’’ and inserting ‘‘Certify’’, and

20 (II) by inserting before the pe21 riod at the end ‘‘and provide a de22 tailed description of such procedures’’,

23 (iii) in subparagraph (C)—

24 (I) by striking ‘‘Provide assur25 ances’’ and inserting ‘‘Certify’’, and
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1 (II) by inserting before the pe2 riod at the end ‘‘and provide a de3 tailed description of how such record

4 is maintained and is made available’’,

5 (iv) by amending subparagraph (D) to

6 read as follows:

7 ‘‘(D) CONSUMER EDUCATION INFORMA8 TION.—Provide assurances that the State will

9 collect and disseminate to parents of eligible

10 children and the general public, consumer edu11 cation information that will promote informed

12 child care choices.’’,

13 (v) in subparagraph (E)—

14 (I) by striking ‘‘Provide assur15 ances’’ and inserting ‘‘Certify’’,

16 (II) in clause (i) by inserting

17 ‘‘health, safety, and’’ after ‘‘comply

18 with all’’,

19 (III) in clause (i) by striking ‘‘;

20 and’’ at the end,

21 (IV) by striking ‘‘that—’’ and all

22 that follows through ‘‘(i)’’, and insert23 ing ‘‘that’’, and

24 (V) by striking ‘‘(ii)’’ and all that

25 follows through the end of such sub-
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1 paragraph, and inserting ‘‘and provide

2 a detailed description of such require3 ments and of how such requirements

4 are effectively enforced.’’, and

5 (vi) by striking subparagraphs (F),

6 (G), (H), (I), and (J),

7 (C) in paragraph (3)—

8 (i) in subparagraph (A) by inserting

9 ‘‘or as authorized by section 658T’’ before

10 the period at the end,

11 (ii) in subparagraph (B)—

12 (I) by striking ‘‘.—Subject to the

13 reservation contained in subparagraph

14 (C), the’’ and inserting ‘‘AND RELAT15 ED ACTIVITIES.—The’’,

16 (II) by inserting ‘‘, other than

17 amounts transferred under section

18 658T,’’ after ‘‘subchapter’’,

19 (III) in clause (i) by striking ‘‘;

20 and’’ at the end and inserting a pe21 riod,

22 (IV) by striking ‘‘for—’’ and all

23 that follows through ‘‘section

24 658E(c)(2)(A)’’ and inserting ‘‘for

25 child care services, activities that im-
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1 prove the quality or availability of

2 such services, and any other activity

3 that the State deems appropriate to

4 realize any of the goals specified in

5 paragraphs (2) through (5) of section

6 658A(b)’’, and

7 (V) by striking clause (ii), and

8 (iii) by amending subparagraph (C) to

9 read as follows:

10 ‘‘(C) LIMITATION ON ADMINISTRATIVE

11 COSTS.—Not more than 5 percent of the aggre12 gate amount of payments received under this

13 subchapter by a State in each fiscal year may

14 be expended for administrative costs incurred

15 by such State to carry out all its functions and

16 duties under this subchapter.’’,

17 (D) in paragraph (4)(A)—

18 (i) by striking ‘‘provide assurances’’

19 and inserting ‘‘certify’’,

20 (ii) in the first sentence by inserting

21 ‘‘and shall provide a summary of the facts

22 relied on by the State to determine that

23 such rates are sufficient to ensure such ac24 cess’’ before the period, and

25 (iii) by striking the last sentence, and
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1 (E) by striking paragraph (5).

2 (e) LIMITATIONS ON STATE ALLOTMENTS—Section

3 658F(b)(2) of the Child Care and Development Block

4 Grant Act of 1990 (42 U.S.C. 9858d(b)(2)) is amended

5 by striking ‘‘referred to in section 658E(c)(2)(F)’’.

6 (f) REPEAL OF EARMARKED REQUIRED EXPENDI7 TURES.—The Child Care and Development Block Grant

8 Act of 1990 (42 U.S.C. 9801 note) is amended by striking

9 sections 658G and 658H.

10 (g) ADMINISTRATION AND ENFORCEMENT.—Section

11 658I(a) of the Child Care and Development Block Grant

12 Act of 1990 (42 U.S.C. 9858g(a)) is amended—

13 (1) in paragraph (1) by inserting ‘‘and’’ at the

14 end,

15 (2) by striking paragraph (2), and

16 (3) by redesignating paragraph (3) as para17 graph (2).

18 (h) PAYMENTS.—Section 658J(c) of the Child Care

19 and Development Block Grant Act of 1990 (42 U.S.C.

20 9858h(c)) is amended—

21 (1) by striking ‘‘expended’’ and inserting ‘‘obli22 gated’’, and

23 (2) by striking ‘‘3 fiscal years’’ and inserting

24 ‘‘fiscal year’’.
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1 (i) ANNUAL REPORT AND AUDITS.—Section 658K of

2 the Child Care and Development Block Grant Act of 1990

3 (42 U.S.C. 9858i) is amended—

4 (1) in the heading of such section by inserting

5 ‘‘, EVALUATION PLANS,’’ after ‘‘REPORT’’,

6 (2) in subsection (a)—

7 (A) by striking ‘‘, 1992’’ and inserting

8 ‘‘following the end of the first fiscal year with

9 respect to which the amendments made by the

10 Personal Responsibility Act of 1995 apply’’,

11 (B) by amending paragraph (2) to read as

12 follows:

13 ‘‘(2) containing data on the manner in which

14 the child care needs of families in the State are

15 being fulfilled, including information concerning—

16 ‘‘(A) the number and ages of children

17 being assisted with funds provided under this

18 subchapter;

19 ‘‘(B) with respect to the families of such

20 children—

21 ‘‘(i) the number of other children in

22 such families;

23 ‘‘(ii) the number of such families that

24 include only 1 parent;
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1 ‘‘(iii) the number of such families that

2 include both parents;

3 ‘‘(iv) the ages of the mothers of such

4 children;

5 ‘‘(v) the ages of the fathers of such

6 children;

7 ‘‘(vi) the sources of the economic re8 sources of such families, including the

9 amount of such resources obtained from

10 (and separately identified as being from)—

11 ‘‘(I) employment, including self12 employment;

13 ‘‘(II) assistance received under

14 part A of title IV of the Social Secu15 rity Act (42 U.S.C. 601 et seq.);

16 ‘‘(III) part B of title IV of the

17 Social Security Act (42 U.S.C. 620 et

18 seq.);

19 ‘‘(IV) the Child Nutrition Act of

20 1966 (42 U.S.C. 1771 et seq.);

21 ‘‘(V) the National School Lunch

22 Act (42 U.S.C. 1751 et seq.);

23 ‘‘(VI) assistance received under

24 title XVI of the Social Security Act

25 (42 U.S.C. 1381 et seq.);
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1 ‘‘(VII) assistance received under

2 title XIV of the Social Security Act

3 (42 U.S.C. 1351 et seq.);

4 ‘‘(VIII) assistance received under

5 title XIX of the Social Security Act

6 (42 U.S.C. 1396 et seq.);

7 ‘‘(IX) assistance received under

8 title XX of the Social Security Act

9 (42 U.S.C. 1397 et seq.); and

10 ‘‘(X) any other source of eco11 nomic resources the Secretary deter12 mines to be appropriate;

13 ‘‘(C) the number of such providers sepa14 rately identified with respect to each type of

15 child care provider specified in section 658P(5)

16 that provided child care services obtained with

17 assistance provided under this subchapter;

18 ‘‘(D) with respect to cost of such serv19 ices—

20 ‘‘(i) the cost imposed by such provid21 ers to provide such services; and

22 ‘‘(ii) the portion of such cost paid

23 with assistance provided under this sub24 chapter;
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1 ‘‘(E) with respect to consumer education

2 information described in section 658E(c)(2)(D)

3 provided by such State—

4 ‘‘(i) the manner in which such infor5 mation was provided; and

6 ‘‘(ii) the number of parents to whom

7 such information was provided; and

8 ‘‘(F) with respect to complaints received by

9 such State regarding child care services ob10 tained with assistance provided under this sub11 chapter—

12 ‘‘(i) the number of such complaints

13 that were found to have merit; and

14 ‘‘(ii) a description of the actions taken

15 by the State to correct the circumstances

16 on which such complaints were based.’’,

17 (C) by striking paragraphs (3), (4), (5),

18 and (6) and inserting the following:

19 ‘‘(3) containing evidence demonstrating that the

20 State satisfied the requirements of section

21 658E(c)(2)(F); and

22 ‘‘(4) identifying each State program operated

23 under a provision of law specified in section 658T to

24 which the State transferred funds under the author25 ity of such section, specifying the amount of funds
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1 so transferred to such program, and containing a

2 justification for so transferring such amount;’’, and

3 (3) in subsection (b)—

4 (A) in paragraph (1) by striking ‘‘a appli5 cation’’ and inserting ‘‘an application’’,

6 (B) in paragraph (2) by striking ‘‘any

7 agency administering activities that receive’’

8 and inserting ‘‘the State that receives’’, and

9 (C) in paragraph (4) by striking ‘‘entitles’’

10 and inserting ‘‘entitled’’, and

11 (4) by redesignating subsection (b) as sub12 section (c), and

13 (5) by inserting after subsection (a) the follow14 ing:

15 ‘‘(b) STATE EVALUATION PLAN AND EVALUATION

16 RESULTS.—

17 ‘‘(1) EVALUATION PLAN.—In the first report

18 submitted under subsection (a) after the date of the

19 enactment of the Personal Responsibility Act of

20 1995, and in the report for each alternating 1-year

21 period thereafter, the State shall include a plan the

22 State intends to carry out in the 1-year period sub23 sequent to the period for which such report is sub24 mitted, to evaluate the extent to which the State has

25 realized each of the goals specified in paragraphs (2)
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1 through (5) of section 658A(b). The State shall in2 clude in such plan a description of the types of data

3 and other information the State will collect to deter4 mine whether the State has realized such goals.

5 ‘‘(2) EVALUATION RESULTS.—In the second re6 port submitted under subsection (a) after the date

7 of the enactment of the Personal Responsibility Act

8 of 1995, and in the report for each alternating 1-

9 year period thereafter, the State shall include a sum10 mary of the results of an evaluation carried out

11 under the evaluation plan contained in the report

12 submitted under subsection (a) for the preceding 1-

13 year period.’’.

14 (j) REPORT BY SECRETARY.—Section 658L of the

15 Child Care and Development Block Grant Act of 1990 (42

16 U.S.C. 9858j) is amended—

17 (1) by striking ‘‘, 1993, and annually’’ and in18 serting ‘‘following the end of the second fiscal year

19 with respect to which the amendments made by the

20 Personal Responsibility Act of 1995 apply, and bien21 nially’’,

22 (2) by striking ‘‘Committee on Education and

23 Labor’’ and inserting ‘‘Speaker’’,
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1 (3) by striking ‘‘Committee on Labor and

2 Human Resources’’ and inserting ‘‘President pro

3 tempore’’, and

4 (4) by striking the last sentence.

5 (k) REALLOTMENTS.—Section 658O of the Child

6 Care and Development Block Grant Act of 1990 (42

7 U.S.C. 9858m) is amended—

8 (1) in subsection (a)(1)—

9 (A) by striking ‘‘POSSESSIONS’’ and insert10 ing ‘‘POSSESSIONS’’,

11 (B) by inserting ‘‘and’’ after ‘‘States,’’,

12 and

13 (C) by striking ‘‘, and the Trust Territory

14 of the Pacific Islands’’,

15 (2) by amending subsection (b) to read as fol16 lows:

17 ‘‘(b) STATE ALLOTMENT.—From the amount appro18 priated under section 658B for each fiscal year remaining

19 after reservations under subsection (a), the Secretary shall

20 allot to each State (excluding Guam, American Samoa, the

21 Virgin Islands of the United States, and the Common22 wealth of the Northern Mariana Islands) an amount that

23 bears the same ratio to the amount so appropriated for

24 such fiscal year as the aggregate of the amounts received

25 by the State under—
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1 ‘‘(1) this subchapter for fiscal year 1994;

2 ‘‘(2) section 403 of the Social Security Act,

3 with respect to expenditures by the State for child

4 care under section 402(g)(1) of such Act during fis5 cal year 1994; and

6 ‘‘(3) section 403(n) of the Social Security Act

7 for fiscal year 1994;

8 bears to the aggregate of the amounts received by all the

9 States (excluding Guam, American Samoa, the Virgin Is10 lands of the United States, and the Commonwealth of the

11 Northern Mariana Islands) under paragraphs (1), (2), and

12 (3).’’,

13 (3) in subsection (c)—

14 (A) in paragraph (2)(A) by striking ‘‘agen15 cy’’ and inserting ‘‘entity’’, and

16 (B) in paragraph (5) by striking ‘‘our’’

17 and inserting ‘‘out’’,

18 (4) by striking subsection (e), and

19 (5) by redesignating subsection (f) as sub20 section (e).

21 (l) DEFINITIONS.—Section 658P of the Child Care

22 and Development Block Grant Act of 1990 (42 U.S.C.

23 9858n) is amended—

24 (1) in paragraph (5)(A)—
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1 (A) in clause (i) by striking ‘‘and’’ at the

2 end and inserting ‘‘or’’,

3 (B) by striking ‘‘that—’’ and all that fol4 lows through ‘‘(i)’’, and inserting ‘‘that’’, and

5 (C) by striking clause (ii),

6 (2) by amending paragraph (8) to read as fol7 lows:

8 ‘‘(8) LEAD ENTITY.—The term ‘lead entity’

9 means the State agency or other entity designated

10 under section 658B(a).’’,

11 (3) by striking paragraphs (3), (10), and (12),

12 (4) by inserting after paragraph (2) the follow13 ing:

14 ‘‘(3) CHILD CARE SERVICES.—The term ‘child

15 care services’ means services that constitute physical

16 care of a child and may include services that are de17 signed to enhance the educational, social, cultural,

18 emotional, and recreational development of a child

19 but that are not intended to serve as a substitute for

20 compulsory educational services.’’,

21 (5) in paragraph (13)—

22 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’, and

23 (B) by striking ‘‘, and the Trust Territory

24 of the Pacific Islands’’, and
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1 (6) by redesignating paragraphs (11), (13), and

2 (14) as paragraphs (10), (11), and (12), respec3 tively.

4 (m) AUTHORITY TO TRANSFER FUNDS.—The Child

5 Care and Development Block Grant Act of 1990 (42

6 U.S.C. 9858 et seq.) is amended by inserting after section

7 658S the following:

8 ‘‘SEC. 658T. TRANSFER OF FUNDS.

9 ‘‘(a) AUTHORITY.—Of the aggregate amount of pay10 ments received under this subchapter by a State in each

11 fiscal year, the State may transfer not more than 20 per12 cent for use by the State to carry out State programs

13 under 1 or more of the following provisions of law:

14 ‘‘(1) Part A of title IV of the Social Security

15 Act (42 U.S.C. 601 et seq.).

16 ‘‘(2) Part B of title IV of the Social Security

17 Act (42 U.S.C. 620 et seq.).

18 ‘‘(3) The Child Nutrition Act of 1966 (42

19 U.S.C. 1771 et seq.).

20 ‘‘(4) The National School Lunch Act (42

21 U.S.C. 1751 et seq.).

22 ‘‘(5) Title XX of the Social Security Act (42

23 U.S.C. 1397 et seq.).

24 ‘‘(b) REQUIREMENTS APPLICABLE TO FUNDS

25 TRANSFERRED.—Funds transferred under subsection (a)
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1 to carry out a State program operated under a provision

2 of law specified in such subsection shall not be subject to

3 the requirements of this subchapter, but shall be subject

4 to the same requirements that apply to Federal funds pro5 vided directly under such provision of law to carry out

6 such program.’’.

7 SEC. 302. REPEAL OF CHILD CARE ASSISTANCE AUTHOR8 IZED BY ACTS OTHER THAN THE SOCIAL SE9 CURITY ACT.

10 (a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

11 ASSISTANCE ACT OF 1985.—Title VI of the Human Serv12 ices Reauthorization Act of 1986 (42 U.S.C. 10901–

13 10905) is repealed.

14 (b) STATE DEPENDENT CARE DEVELOPMENT

15 GRANTS ACT.—Subchapter E of chapter 8 of subtitle A

16 of title VI of the Omnibus Budget Reconciliation Act of

17 1981 (42 U.S.C. 9871–9877) is repealed.

18 (c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title

19 X of the Elementary and Secondary Education Act of

20 1965, as amended by Public Law 103–382 (108 Stat.

21 3809 et seq.), is amended—

22 (1) in section 10413(a) by striking paragraph

23 (4),

24 (2) in section 10963(b)(2) by striking subpara25 graph (G), and
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1 (3) in section 10974(a)(6) by striking subpara2 graph (G).

3 (d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION

4 CENTERS.—Section 9205 of the Native Hawaiian Edu5 cation Act (Public Law 103–382; 108 Stat. 3794) is re6 pealed.

7 Subtitle B—Family and School8 Based Nutrition Block Grants

9 CHAPTER 1—FAMILY NUTRITION BLOCK

10 GRANT PROGRAM

11 SEC. 321. AMENDMENT TO CHILD NUTRITION ACT OF 1966.

12 The Child Nutrition Act of 1966 (42 U.S.C. 1771

13 et seq.) is amended to read as follows:

14 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

15 ‘‘(a) SHORT TITLE.—This Act may be cited as the

16 ‘Child Nutrition Act of 1966’.

17 ‘‘(b) TABLE OF CONTENTS.—The table of contents

18 is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Authorization.

‘‘Sec. 3. Allotment.

‘‘Sec. 4. Application.

‘‘Sec. 5. Use of amounts.

‘‘Sec. 6. Reports.

‘‘Sec. 7. Penalties.

‘‘Sec. 8. Model nutrition standards for food assistance for pregnant,

postpartum, and breastfeeding women, infants and children.

‘‘Sec. 9. Authorization of appropriations.

‘‘Sec. 10. Definitions.
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1 ‘‘SEC. 2. AUTHORIZATION.

2 ‘‘(a) IN GENERAL.—In the case of each State that

3 in accordance with section 4 submits to the Secretary of

4 Agriculture an application for a fiscal year, the Secretary

5 shall provide a grant for the year to the State for the pur6 pose of achieving the goals described in subsection (b).

7 The grant shall consist of the allotment determined for

8 the State under section 3.

9 ‘‘(b) GOALS.—The goals of this Act are—

10 ‘‘(1) to provide nutritional risk assessment, food

11 assistance based on such risk assessment, and nutri12 tion education and counseling to economically dis13 advantaged pregnant women, postpartum women,

14 breastfeeding women, infants, and young children

15 who are determined to be at nutritional risk;

16 ‘‘(2) to provide nutritional risk assessments of

17 such women in order to provide food assistance and

18 nutrition education which meets their specific needs;

19 ‘‘(3) to provide nutrition education to such

20 women in order to increase their awareness of the

21 types of foods which should be consumed to main22 tain good health;

23 ‘‘(4) to provide food assistance, including nutri24 tious meal supplements, to such women in order to

25 reduce incidences of low-birthweight babies and ba-
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1 bies born with birth defects as a result of nutritional

2 deficiencies;

3 ‘‘(5) to provide food assistance, including nutri4 tious meal supplements, to such women, infants, and

5 young children in order to ensure their future good

6 health;

7 ‘‘(6) to ensure that such women, infants, and

8 children are referred to other health services, includ9 ing routine pediatric and obstetric care, when nec10 essary;

11 ‘‘(7) to ensure that children from economically

12 disadvantaged families in day care facilities, family

13 day care homes, homeless shelters, settlement

14 houses, recreational centers, Head Start centers,

15 Even Start programs and child care facilities for

16 children with disabilities receive nutritious meals,

17 supplements, and low-cost milk; and

18 ‘‘(8) to provide summer food service programs

19 to meet the nutritional needs of children from eco20 nomically disadvantaged families during months

21 when school is not in session.

22 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

23 provide payments under a grant under this Act to States

24 on a quarterly basis.
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1 ‘‘SEC. 3. ALLOTMENT.

2 The Secretary shall allot the amount appropriated to

3 carry out this Act for a fiscal year among the States as

4 follows:

5 ‘‘(1) FIRST FISCAL YEAR.—

6 ‘‘(A) IN GENERAL.—With respect to the

7 first fiscal year for which the Secretary provides

8 grants to States under this Act, the amount al9 lotted to each State shall bear the same propor10 tion to such amount appropriated as the aggre11 gate of the amounts described in subparagraph

12 (B) that were received by each such State

13 under the provisions of law described in such

14 subparagraph (as such provisions of law were in

15 effect on the day before the date of the enact16 ment of the Personal Responsibility Act of

17 1995) for the preceding fiscal year bears to the

18 aggregate of the amounts described in subpara19 graph (B) that were received by all such States

20 under such provisions of law for such preceding

21 fiscal year.

22 ‘‘(B) AMOUNTS DESCRIBED.—The

23 amounts described in this subparagraph are the

24 following:

25 ‘‘(i) The amount received under the

26 special supplemental nutrition program for
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1 women, infants, and children under section

2 17 of this Act (42 U.S.C. 1786).

3 ‘‘(ii) The amount received under the

4 homeless children nutrition program estab5 lished under section 17B of the National

6 School Lunch Act (42 U.S.C. 1766b).

7 ‘‘(iii) 87.5 percent of the sum of the

8 amounts received under the following pro9 grams:

10 ‘‘(I) The child and adult care

11 food program under section 17 of the

12 National School Lunch Act (42

13 U.S.C. 1766), except for subsection

14 (o) of such section.

15 ‘‘(II) The summer food service

16 program for children established

17 under section 13 of the National

18 School Lunch Act (42 U.S.C. 1761).

19 ‘‘(III) The special milk program

20 established under section 3 of this Act

21 (42 U.S.C. 1772).

22 ‘‘(2) SECOND FISCAL YEAR.—With respect to

23 the second fiscal year for which the Secretary pro24 vides grants to States under this Act—
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1 ‘‘(A) 95 percent of such amount appro2 priated shall be allotted among the States by al3 lotting to each State an amount that bears the

4 same proportion to such amount appropriated

5 as the amount allotted to each such State from

6 a grant under this Act for the preceding fiscal

7 year bears to the aggregate of the amounts al8 lotted to all such States from grants under this

9 Act for such preceding fiscal year; and

10 ‘‘(B) 5 percent of such amount appro11 priated shall be allotted among the States by al12 lotting to each State an amount that bears the

13 same proportion to such amount appropriated

14 as the relative number of individuals receiving

15 assistance during the 1-year period ending on

16 June 30 of the preceding fiscal year in such

17 State from amounts received from a grant

18 under this Act for such preceding fiscal year

19 bears to the total number of individuals receiv20 ing assistance in all States from amounts re21 ceived from grants under this Act for the pre22 ceding fiscal year.

23 ‘‘(3) THIRD AND FOURTH FISCAL YEARS.—

24 With respect to each of the third and fourth fiscal
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1 years for which the Secretary provides grants to

2 States under this Act—

3 ‘‘(A) 90 percent of such amount appro4 priated shall be allotted among the States by al5 lotting to each State an amount determined in

6 accordance with the formula described in para7 graph (2)(A); and

8 ‘‘(B) 10 percent of such amount appro9 priated shall be allotted among the States by al10 lotting to each State an amount determined in

11 accordance with the formula described in para12 graph (2)(B).

13 ‘‘(4) FIFTH FISCAL YEAR.—With respect to the

14 fifth fiscal year for which the Secretary provides

15 grants to States under this Act—

16 ‘‘(A) 85 percent of such amount appro17 priated shall be allotted among the States by al18 lotting to each State an amount determined in

19 accordance with the formula described in para20 graph (2)(A); and

21 ‘‘(B) 15 percent of such amount appro22 priated shall be allotted among the States by al23 lotting to each State an amount determined in

24 accordance with the formula described in para25 graph (2)(B).
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1 ‘‘SEC. 4. APPLICATION.

2 ‘‘The Secretary may provide a grant under this Act

3 to a State for a fiscal year only if the State submits to

4 the Secretary an application containing only—

5 ‘‘(1) an agreement that the State will use

6 amounts received from such grant in accordance

7 with section 5;

8 ‘‘(2) except as provided in paragraph (3), an

9 agreement that the State will set minimum nutri10 tional requirements for food assistance provided

11 under this Act based on the most recent tested nu12 tritional research available, except that—

13 ‘‘(A) such requirements shall not be con14 strued to prohibit the substitution of foods to

15 accommodate the medical or other special die16 tary needs of individual students; and

17 ‘‘(B) such requirements shall, at a mini18 mum, be based on—

19 ‘‘(i) the weekly average of the nutrient

20 content of school lunches; or

21 ‘‘(ii) such other standards as the

22 State may prescribe;

23 ‘‘(3) an agreement that the State, with respect

24 to the provision of food assistance to economically

25 disadvantaged pregnant women, postpartum women,
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1 breastfeeding women, infants, and young children,

2 shall—

3 ‘‘(A) implement the minimum nutritional

4 requirements described in paragraph (2) for

5 such food assistance; or

6 ‘‘(B) implement the model nutrition stand7 ards developed under section 8 for such food as8 sistance;

9 ‘‘(4) an agreement that the State will take such

10 reasonable steps as the State deems necessary to re11 strict the use and disclosure of information about in12 dividuals and families receiving assistance under this

13 Act;

14 ‘‘(5) an agreement that the State will use not

15 more than 5 percent of the amount of such grant for

16 administrative costs incurred to provide assistance

17 under this Act, except that costs associated with the

18 nutritional risk assessment of individuals described

19 in section 5(a)(1) and costs associated with nutrition

20 education and counseling provided to such individ21 uals shall not be considered to be administrative

22 costs; and

23 ‘‘(6) an agreement that the State will submit to

24 the Secretary a report in accordance with section 6.
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1 ‘‘SEC. 5. USE OF AMOUNTS.

2 ‘‘(a) IN GENERAL.—The Secretary may provide a

3 grant under this Act to a State only if the State agrees

4 that it will use all amounts received from such grant—

5 ‘‘(1) subject to subsection (b), to provide nutri6 tional risk assessment, food assistance based on such

7 risk assessment, and nutrition education and coun8 seling to economically disadvantaged pregnant

9 women, postpartum women, breastfeeding women,

10 infants, and young children who are determined to

11 be at nutritional risk;

12 ‘‘(2) to provide milk in nonprofit nursery

13 schools, child care centers, settlement houses, sum14 mer camps, and similar institutions devoted to the

15 care and training of children, to children from eco16 nomically disadvantaged families;

17 ‘‘(3) to provide food service programs in institu18 tions and family day care homes providing child care

19 to children from economically disadvantaged fami20 lies;

21 ‘‘(4) to provide summer food service programs

22 carried out by nonprofit food authorities, local gov23 ernments, nonprofit higher education institutions

24 participating in the National Youth Sports Program,

25 and residential nonprofit summer camps to children

26 from economically disadvantaged families; and
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1 ‘‘(5) to provide nutritious meals to pre-school

2 age homeless children in shelters and other facilities

3 serving the homeless population.

4 ‘‘(b) ADDITIONAL REQUIREMENT.—The State shall

5 ensure that not less than 80 percent of the amount of the

6 grant is used to provide nutritional risk assessment, food

7 assistance based on such nutritional risk assessment, and

8 nutrition education and counseling to economically dis9 advantaged pregnant women, postpartum women,

10 breastfeeding women, infants, and young children under

11 subsection (a)(1).

12 ‘‘(c) AUTHORITY TO USE AMOUNTS FOR OTHER

13 PURPOSES.—

14 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

15 and (3), a State may use not more than 20 percent

16 of amounts received from a grant under this Act for

17 a fiscal year to carry out a State program pursuant

18 to any or all of the following provisions of law:

19 ‘‘(A) Part A of title IV of the Social Secu20 rity Act (42 U.S.C. 601 et seq.).

21 ‘‘(B) Part B of title IV of the Social Secu22 rity Act (42 U.S.C. 620 et seq.).

23 ‘‘(C) Title XX of the Social Security Act

24 (42 U.S.C. 1397 et seq.).
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1 ‘‘(D) The National School Lunch Act (42

2 U.S.C. 1751 et seq.).

3 ‘‘(E) The Child Care and Development

4 Block Grant Act of 1990 (42 U.S.C. 9858 et

5 seq.).

6 ‘‘(2) SUFFICIENT FUNDING DETERMINATION.—

7 Prior to using any amounts received from a grant

8 under this Act for a fiscal year to carry out a State

9 program pursuant to any or all of the provisions of

10 law described in paragraph (1), the appropriate

11 State agency shall make a determination that suffi12 cient amounts will remain available for such fiscal

13 year to carry out this Act.

14 ‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR

15 OTHER PURPOSES.—Amounts paid to the State

16 under a grant under this Act that are used to carry

17 out a State program pursuant to a provision of law

18 specified in paragraph (1) shall not be subject to the

19 requirements of this Act, but shall be subject to the

20 same requirements that apply to Federal funds pro21 vided directly under the provision of law to carry out

22 the program.

23 ‘‘SEC. 6. REPORTS.

24 ‘‘The Secretary may provide a grant under this Act

25 to a State for a fiscal year only if the State agrees that
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1 it will submit, for such fiscal year, a report to the Sec2 retary describing—

3 ‘‘(1) the number of individuals receiving assist4 ance under the grant in accordance with each of

5 paragraphs (1) through (5) of section 5(a);

6 ‘‘(2) the different types of assistance provided

7 to such individuals in accordance with such para8 graphs;

9 ‘‘(3) the extent to which such assistance was ef10 fective in achieving the goals described in section

11 2(b);

12 ‘‘(4) the standards and methods the State is

13 using to ensure the nutritional quality of such assist14 ance, including meals and supplements;

15 ‘‘(5) the number of low birthweight births in

16 the State in such fiscal year compared to the num17 ber of such births in the State in the previous fiscal

18 year; and

19 ‘‘(6) any other information the Secretary deter20 mines to be appropriate.

21 ‘‘SEC. 7. PENALTIES.

22 ‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION

23 OF THIS ACT.—

24 ‘‘(1) IN GENERAL.—The Secretary shall reduce

25 the amounts otherwise payable to a State under a
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1 grant under this Act by any amount paid to the

2 State under this Act which an audit conducted pur3 suant to chapter 75 of title 31, United States Code,

4 finds has been used in violation of this Act.

5 ‘‘(2) LIMITATION.—In carrying out paragraph

6 (1), the Secretary shall not reduce any quarterly

7 payment by more than 25 percent.

8 ‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED

9 REPORT.—The Secretary shall reduce by 3 percent the

10 amount otherwise payable to a State under a grant under

11 this Act for a fiscal year if the Secretary determines that

12 the State has not submitted the report required by section

13 6 for the immediately preceding fiscal year, within 6

14 months after the end of the immediately preceding fiscal

15 year.

16 ‘‘SEC. 8. MODEL NUTRITION STANDARDS FOR FOOD ASSIST17 ANCE FOR PREGNANT, POSTPARTUM, AND

18 BREASTFEEDING WOMEN, INFANTS AND

19 CHILDREN.

20 ‘‘(a) IN GENERAL.—Not later than April 1, 1996, the

21 Food and Nutrition Board of the Institute of Medicine of

22 the National Academy of Sciences, in cooperation with pe23 diatricians, obstetricians, nutritionists, and directors of

24 programs providing nutritional risk assessment, food as25 sistance, and nutrition education and counseling to eco-
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1 nomically disadvantaged pregnant women, postpartum

2 women, breastfeeding women, infants, and young children,

3 shall develop model nutrition standards for food assistance

4 provided to such women, infants, and children under this

5 Act.

6 ‘‘(b) REQUIREMENT.—Such model nutrition stand7 ards shall require that food assistance provided to such

8 women, infants, and children contain nutrients that are

9 lacking in the diets of such women, infants, and children,

10 as determined by nutritional research.

11 ‘‘(c) REPORT TO CONGRESS.—Not later than 1 year

12 after the date on which the model nutrition standards are

13 developed under subsection (a), the Food and Nutrition

14 Board of the Institute of Medicine of the National Acad15 emy of Sciences shall prepare and submit to the Congress

16 a report regarding the efforts of States to implement such

17 model nutrition standards.

18 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

19 ‘‘(a) IN GENERAL.—There are authorized to be ap20 propriated to carry out this Act $4,606,000,000 for fiscal

21 year 1996, $4,777,000,000 for fiscal year 1997,

22 $4,936,000,000 for fiscal year 1998, $5,120,000,000 for

23 fiscal year 1999, and $5,308,000,000 for fiscal year 2000.

24 ‘‘(b) AVAILABILITY.—Amounts authorized to be ap25 propriated under subsection (a) are authorized to remain
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1 available until the end of the fiscal year subsequent to the

2 fiscal year for which such amounts are appropriated.

3 ‘‘SEC. 10. DEFINITIONS.

4 ‘‘For purposes of this Act:

5 ‘‘(1) BREASTFEEDING WOMEN.—The term

6 ‘breastfeeding women’ means women up to 1 year

7 postpartum who are breastfeeding their infants.

8 ‘‘(2) ECONOMICALLY DISADVANTAGED.—The

9 term ‘economically disadvantaged’ means an individ10 ual or a family, as the case may be, whose annual

11 income does not exceed 185 percent of the applicable

12 family size income levels contained in the most re13 cent income poverty guidelines prescribed by the Of14 fice of Management and Budget and based on data

15 from the Bureau of the Census.

16 ‘‘(3) INFANTS.—The term ‘infants’ means indi17 viduals under 1 year of age.

18 ‘‘(4) POSTPARTUM WOMEN.—The term

19 ‘postpartum women’ means women who are in the

20 180-day period beginning on the termination of

21 pregnancy.

22 ‘‘(5) PREGNANT WOMEN.—The term ‘pregnant

23 women’ means women who have 1 or more fetuses

24 in utero.
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1 ‘‘(6) SCHOOL.—The term ‘school’ means a pub2 lic or private nonprofit elementary, intermediate, or

3 secondary school.

4 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

5 the Secretary of Agriculture.

6 ‘‘(8) STATE.—The term ‘State’ means any of

7 the several States, the District of Columbia, the

8 Commonwealth of Puerto Rico, the Commonwealth

9 of the Northern Mariana Islands, American Samoa,

10 Guam, the Virgin Islands, or a tribal organization

11 (as defined in section 4(l) of the Indian Self-Deter12 mination and Education Assistance Act (25 U.S.C.

13 450b(l))).

14 ‘‘(9) YOUNG CHILDREN.—The term ‘young chil15 dren’ means individuals who have attained the age

16 of 1 but have not attained the age of 5.’’.

17 CHAPTER 2—SCHOOL-BASED NUTRITION

18 BLOCK GRANT PROGRAM

19 SEC. 341. AMENDMENT TO NATIONAL SCHOOL LUNCH ACT.

20 The National School Lunch Act (42 U.S.C. 1751 et

21 seq.) is amended to read as follows:

22 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

23 ‘‘(a) SHORT TITLE.—This Act may be cited as the

24 ‘National School Lunch Act’.
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1 ‘‘(b) TABLE OF CONTENTS.—The table of contents

2 is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Authorization.

‘‘Sec. 3. Allotment.

‘‘Sec. 4. Application.

‘‘Sec. 5. Use of amounts.

‘‘Sec. 6. Reports.

‘‘Sec. 7. Penalties.

‘‘Sec. 8. Assistance to children enrolled in private nonprofit schools and Department of Defense domestic dependents’ schools in case of restrictions on State or failure by State to provide assistance.

‘‘Sec. 9. Food service programs for department of defense overseas dependents’

schools.

‘‘Sec. 10. Model nutrition standards for meals for students.

‘‘Sec. 11. Definitions.

3 ‘‘SEC. 2. AUTHORIZATION.

4 ‘‘(a) ENTITLEMENT.—

5 ‘‘(1) IN GENERAL.—In the case of each State

6 that in accordance with section 4 submits to the

7 Secretary of Agriculture an application for a fiscal

8 year, each such State shall be entitled to receive

9 from the Secretary for such fiscal year a grant for

10 the purpose of achieving the goals described in sub11 section (b). Subject to paragraph (2), the grant shall

12 consist of the allotment for such State determined

13 under section 3 of the school-based nutrition amount

14 for the fiscal year.

15 ‘‘(2) REQUIREMENT TO PROVIDE COMMOD16 ITIES.—9 percent of the amount of the assistance

17 available under this Act for each State shall be in

18 the form of commodities.

19 ‘‘(3) SCHOOL-BASED NUTRITION AMOUNT.—
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1 ‘‘(A) IN GENERAL.—For purposes of this

2 Act, the term ‘school-based nutrition amount’

3 means, subject to the reservation contained in

4 subparagraph (B), $6,681,000,000 for fiscal

5 year 1996, $6,956,000,000 for fiscal year 1997,

6 $7,237,000,000 for fiscal year 1998,

7 $7,538,000,000 for fiscal year 1999, and

8 $7,849,000,000 for fiscal year 2000.

9 ‘‘(B) RESERVATION.—For each fiscal year

10 described in subparagraph (A), the Secretary

11 shall reserve an amount equal to the amount

12 determined under subsection (c) of section 9 for

13 such fiscal year from the school-based nutrition

14 amount for the purpose of establishing and car15 rying out nutritious food service programs at

16 Department of Defense overseas dependents’

17 schools in accordance with such section.

18 ‘‘(4) AVAILABILITY.—Payments under a grant

19 to a State from the allotment determined under sec20 tion 3 for any fiscal year may be obligated by the

21 State in that fiscal year or in the succeeding fiscal

22 year.

23 ‘‘(b) GOALS.—The goals of this Act are—
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1 ‘‘(1) to safeguard the health and well-being of

2 children through the provision of nutritious, well-bal3 anced meals and food supplements;

4 ‘‘(2) to provide economically disadvantaged chil5 dren access to nutritious free or low cost meals, food

6 supplements, and low-cost milk;

7 ‘‘(3) to ensure that children served under this

8 Act are receiving the nutrition they require to take

9 advantage of the educational opportunities provided

10 to them;

11 ‘‘(4) to emphasize foods which are naturally

12 good sources of vitamins and minerals over foods

13 which have been enriched with vitamins and min14 erals and are high in fat or sodium content;

15 ‘‘(5) to provide a comprehensive school nutri16 tion program for children; and

17 ‘‘(6) to minimize paperwork burdens and ad18 ministrative expenses for participating schools.

19 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

20 provide payments under a grant under this Act to States

21 on a quarterly basis.

22 ‘‘SEC. 3. ALLOTMENT.

23 ‘‘The Secretary shall allot the amount appropriated

24 to carry out this Act for a fiscal year among the States

25 as follows:
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1 ‘‘(1) FIRST FISCAL YEAR.—

2 ‘‘(A) IN GENERAL.—With respect to the

3 first fiscal year for which the Secretary provides

4 grants to States under this Act, the amount al5 lotted to each State shall bear the same propor6 tion to such amount appropriated as the aggre7 gate of the amounts described in subparagraph

8 (B) that were received by each such State

9 under the provisions of law described in such

10 subparagraph (as such provisions of law were in

11 effect on the day before the date of the enact12 ment of the Personal Responsibility Act of

13 1995) for the preceding fiscal year bears to the

14 aggregate of the amounts described in subpara15 graph (B) that were received by all such States

16 under such provisions of law for such preceding

17 fiscal year.

18 ‘‘(B) AMOUNTS DESCRIBED.—The

19 amounts described in this subparagraph are the

20 following:

21 ‘‘(i) The amount received under the

22 school breakfast program established under

23 section 4 of the Child Nutrition Act of

24 1966 (42 U.S.C. 1773).
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1 ‘‘(ii) The amount received under the

2 school lunch program established under

3 this Act (42 U.S.C. 1751 et seq.).

4 ‘‘(iii) 12.5 percent of the sum of the

5 amounts received under the following pro6 grams:

7 ‘‘(I) The child and adult care

8 food program under section 17 of this

9 Act (42 U.S.C. 1766), except for sub10 section (o) of such section.

11 ‘‘(II) The summer food service

12 program for children established

13 under section 13 of this Act (42

14 U.S.C. 1761).

15 ‘‘(III) The special milk program

16 established under section 3 of the

17 Child Nutrition Act of 1966 (42

18 U.S.C. 1772).

19 ‘‘(2) SECOND FISCAL YEAR.—With respect to

20 the second fiscal year for which the Secretary pro21 vides grants to States under this Act—

22 ‘‘(A) 95 percent of such amount appro23 priated shall be allotted among the States by al24 lotting to each State an amount that bears the

25 same proportion to such amount appropriated
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1 as the amount allotted to each such State from

2 a grant under this Act for the preceding fiscal

3 year bears to the aggregate of the amounts al4 lotted to all such States from grants under this

5 Act for such preceding fiscal year; and

6 ‘‘(B) 5 percent of such amount appro7 priated shall be allotted among the States by al8 lotting to each State an amount that bears the

9 same proportion to such amount appropriated

10 as the relative number of meals served during

11 the 1-year period ending on June 30 of the pre12 ceding fiscal year in a State from amounts re13 ceived from a grant under this Act for such

14 preceding fiscal year bears to the total number

15 of meals served in all States from amounts re16 ceived from grants under this Act for the pre17 ceding fiscal year.

18 ‘‘(3) THIRD AND FOURTH FISCAL YEARS.—

19 With respect to each of the third and fourth fiscal

20 years for which the Secretary provides grants to

21 States under this Act—

22 ‘‘(A) 90 percent of such amount appro23 priated shall be allotted among the States by al24 lotting to each State an amount determined in
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1 accordance with the formula described in para2 graph (2)(A); and

3 ‘‘(B) 10 percent of such amount appro4 priated shall be allotted among the States by al5 lotting to each State an amount determined in

6 accordance with the formula described in para7 graph (2)(B).

8 ‘‘(4) FIFTH FISCAL YEAR.—With respect to the

9 fifth fiscal year for which the Secretary provides

10 grants to States under this Act—

11 ‘‘(A) 85 percent of such amount appro12 priated shall be allotted among the States by al13 lotting to each State an amount determined in

14 accordance with the formula described in para15 graph (2)(A); and

16 ‘‘(B) 15 percent of such amount appro17 priated shall be allotted among the States by al18 lotting to each State an amount determined in

19 accordance with the formula described in para20 graph (2)(B).

21 ‘‘SEC. 4. APPLICATION.

22 ‘‘The Secretary may provide a grant under this Act

23 to a State for a fiscal year only if the State submits to

24 the Secretary an application containing only—
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1 ‘‘(1) an agreement that the State will use

2 amounts received from such grant in accordance

3 with section 5;

4 ‘‘(2) except as provided in paragraph (3), an

5 agreement that the State will set minimum nutri6 tional requirements for meals provided under this

7 Act based on the most recent tested nutritional re8 search available, except that—

9 ‘‘(A) such requirements shall not be con10 strued to prohibit the substitution of foods to

11 accommodate the medical or other special die12 tary needs of individual students; and

13 ‘‘(B) such requirements shall, at a mini14 mum, be based on—

15 ‘‘(i) the weekly average of the nutrient

16 content of school lunches; or

17 ‘‘(ii) such other standards as the

18 State may prescribe;

19 ‘‘(3) an agreement that the State, with respect

20 to the provision of meals to students, shall—

21 ‘‘(A) implement the minimum nutritional

22 requirements described in paragraph (2) for

23 such meals; or

24 ‘‘(B) implement the model nutrition stand25 ards developed under section 10 for such meals;
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1 ‘‘(4) an agreement that the State will take such

2 reasonable steps as the State deems necessary to re3 strict the use and disclosure of information about in4 dividuals and families receiving assistance under this

5 Act;

6 ‘‘(5) an agreement that the State will use not

7 more than 2 percent of the amount of such grant for

8 administrative costs incurred to provide assistance

9 under this Act; and

10 ‘‘(6) an agreement that the State will submit to

11 the Secretary a report in accordance with section 6.

12 ‘‘SEC. 5. USE OF AMOUNTS.

13 ‘‘(a) IN GENERAL.—The Secretary may provide a

14 grant under this Act to a State only if the State agrees

15 that it will use all amounts received from such grant to

16 provide assistance to schools to establish and carry out

17 nutritious food service programs that provide affordable

18 meals and supplements to students, which may include—

19 ‘‘(1) nonprofit school breakfast programs;

20 ‘‘(2) nonprofit school lunch programs;

21 ‘‘(3) nonprofit before and after school supple22 ment programs;

23 ‘‘(4) nonprofit low-cost milk services; and

24 ‘‘(5) nonprofit summer meals programs.

25 ‘‘(b) ADDITIONAL REQUIREMENTS.—
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1 ‘‘(1) MINIMUM AMOUNT OF GRANT FOR FREE

2 OR LOW COST MEALS OR SUPPLEMENTS.—In provid3 ing assistance to schools to establish and carry out

4 nutritious food service programs in accordance with

5 subsection (a), the State shall ensure that not less

6 than 80 percent of the amount of the grant is used

7 to provide free or low cost meals or supplements to

8 economically disadvantaged children.

9 ‘‘(2) PROVISION OF FOOD SERVICE PROGRAMS

10 IN PRIVATE NONPROFIT SCHOOLS AND DEPARTMENT

11 OF DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS.—

12 To the extent consistent with the number of children

13 in the State who are enrolled in private nonprofit

14 schools and Department of Defense domestic de15 pendents’ schools, the State, after timely and appro16 priate consultation with representatives of such

17 schools, as the case may be, shall ensure that nutri18 tious food service programs are established and car19 ried out in such schools in accordance with sub20 section (a) on an equitable basis with nutritious food

21 service programs established and carried out in pub22 lic nonprofit schools in the State.

23 ‘‘(c) AUTHORITY TO USE AMOUNTS FOR OTHER

24 PURPOSES.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

2 and (3), a State may use not more than 20 percent

3 of amounts received from a grant under this Act for

4 a fiscal year to carry out a State program pursuant

5 to any or all of the following provisions of law:

6 ‘‘(A) Part A of title IV of the Social Secu7 rity Act (42 U.S.C. 601 et seq.).

8 ‘‘(B) Part B of title IV of the Social Secu9 rity Act (42 U.S.C. 620 et seq).

10 ‘‘(C) Title XX of the Social Security Act

11 (42 U.S.C. 1397 et seq.).

12 ‘‘(D) The Child Nutrition Act of 1966 (42

13 U.S.C. 1771 et seq.).

14 ‘‘(E) The Child Care and Development

15 Block Grant Act of 1990 (42 U.S.C. 9858 et

16 seq.).

17 ‘‘(2) SUFFICIENT FUNDING DETERMINATION.—

18 Prior to using any amounts received from a grant

19 under this Act for a fiscal year to carry out a State

20 program pursuant to any or all of the provisions of

21 law described in paragraph (1), the appropriate

22 State agency shall make a determination that suffi23 cient amounts will remain available for such fiscal

24 year to carry out this Act.
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1 ‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR

2 OTHER PURPOSES.—Amounts paid to the State

3 under a grant under this Act that are used to carry

4 out a State program pursuant to a provision of law

5 specified in paragraph (1) shall not be subject to the

6 requirements of this Act, but shall be subject to the

7 same requirements that apply to Federal funds pro8 vided directly under the provision of law to carry out

9 the program.

10 ‘‘(d) LIMITATION ON PROVISION OF COMMODITIES

11 TO CERTAIN SCHOOL DISTRICTS, PRIVATE NONPROFIT

12 SCHOOLS, AND DEPARTMENT OF DEFENSE DOMESTIC

13 DEPENDENTS’ SCHOOLS.—

14 ‘‘(1) IN GENERAL.—A State may not require a

15 school district, private nonprofit school, or Depart16 ment of Defense domestic dependents’ school de17 scribed in paragraph (2), except upon the request of

18 such school district, private school, or domestic de19 pendents’ school, as the case may be, to accept com20 modities for use in the food service program of such

21 school district, private school, or domestic depend22 ents’ school in accordance with this section. Such

23 school district, private school, or domestic depend24 ents’ school may continue to receive commodity as-
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1 sistance in the form that it received such assistance

2 as of January 1, 1987.

3 ‘‘(2) SCHOOL DISTRICT, PRIVATE NONPROFIT

4 SCHOOL, AND DEPARTMENT OF DEFENSE DOMESTIC

5 DEPENDENTS’ SCHOOL DESCRIBED.—A school dis6 trict, private nonprofit school, or Department of De7 fense domestic dependents’ school described in this

8 paragraph is a school district, private nonprofit

9 school, or Department of Defense domestic depend10 ents’ school, as the case may be, that as of January

11 1, 1987, was receiving all cash payments or all com12 modity letters of credit in lieu of entitlement com13 modities for the school lunch program of such school

14 district, private school, or domestic dependents’

15 school under section 18(b) of the National School

16 Lunch Act (42 U.S.C. 1751 et seq.), as such section

17 was in effect on the day before the date of the enact18 ment of the Personal Responsibility Act of 1995.

19 ‘‘(e) PROHIBITION ON PHYSICAL SEGREGATION,

20 OVERT IDENTIFICATION, OR OTHER DISCRIMINATION

21 WITH RESPECT TO CHILDREN ELIGIBLE FOR FREE OR

22 LOW COST MEALS OR SUPPLEMENTS.—In providing as23 sistance to schools to establish and carry out nutritious

24 food service programs in accordance with subsection (a),

25 the State shall ensure that such schools do not—
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1 ‘‘(1) physically segregate children eligible to re2 ceive free or low cost meals or supplements on the

3 basis of such eligibility;

4 ‘‘(2) provide for the overt identification of such

5 children by special tokens or tickets, announced or

6 published list of names, or other means; or

7 ‘‘(3) otherwise discriminate against such chil8 dren.

9 ‘‘SEC. 6. REPORTS.

10 ‘‘The Secretary may provide a grant under this Act

11 to a State for a fiscal year only if the State agrees that

12 it will submit, for such fiscal year, a report to the Sec13 retary describing—

14 ‘‘(1) the number of individuals receiving assist15 ance under the grant;

16 ‘‘(2) the different types of assistance provided

17 to such individuals;

18 ‘‘(3) the total number of meals served to stu19 dents under the grant, including the percentage of

20 such meals served to economically disadvantaged

21 students;

22 ‘‘(4) the extent to which such assistance was ef23 fective in achieving the goals described in section

24 2(b);
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1 ‘‘(5) the standards and methods the State is

2 using to ensure the nutritional quality of such assist3 ance, including meals and supplements; and

4 ‘‘(6) any other information the Secretary deter5 mines to be appropriate.

6 ‘‘SEC. 7. PENALTIES.

7 ‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION

8 OF THIS ACT.—

9 ‘‘(1) IN GENERAL.—The Secretary shall reduce

10 the amounts otherwise payable to a State under a

11 grant under this Act by any amount paid to the

12 State under this Act which an audit conducted pur13 suant to chapter 75 of title 31, United States Code,

14 finds has been used in violation of this Act.

15 ‘‘(2) LIMITATION.—In carrying out paragraph

16 (1), the Secretary shall not reduce any quarterly

17 payment by more than 25 percent.

18 ‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED

19 REPORT.—The Secretary shall reduce by 3 percent the

20 amount otherwise payable to a State under a grant under

21 this Act for a fiscal year if the Secretary determines that

22 the State has not submitted the report required by section

23 6 for the immediately preceding fiscal year, within 6

24 months after the end of the immediately preceding fiscal

25 year.
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1 ‘‘SEC. 8. ASSISTANCE TO CHILDREN ENROLLED IN PRIVATE

2 NONPROFIT SCHOOLS AND DEPARTMENT OF

3 DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS

4 IN CASE OF RESTRICTIONS ON STATE OR

5 FAILURE BY STATE TO PROVIDE ASSISTANCE.

6 ‘‘(a) IN GENERAL.—If, by reason of any other provi7 sion of law, a State is prohibited from providing assistance

8 from amounts received from a grant under this Act to pri9 vate nonprofit schools or Department of Defense domestic

10 dependents’ schools for a fiscal year to establish and carry

11 out nutritious food service programs in such schools in ac12 cordance with section 5(a), or the Secretary determines

13 that a State has substantially failed or is unwilling to pro14 vide such assistance to such private nonprofit schools or

15 domestic dependents’ schools for such fiscal year, the Sec16 retary shall, after consultation with appropriate represent17 atives of the State and private nonprofit schools or domes18 tic dependents’ schools, as the case may be, arrange for

19 the provision of such assistance to private nonprofit

20 schools or domestic dependents’ schools in the State for

21 such fiscal year in accordance with the requirements this

22 Act.

23 ‘‘(b) REDUCTION IN AMOUNT OF STATE GRANT.—

24 If the Secretary arranges for the provision of assistance

25 to private nonprofit schools or Department of Defense do26 mestic dependents’ schools in a State for a fiscal year
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1 under subsection (a), the amount of the grant for such

2 State for such fiscal year shall be reduced by the amount

3 of such assistance provided to such private nonprofit

4 schools or domestic dependents’ schools, as the case may

5 be.

6 ‘‘SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF

7 DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS.

8 ‘‘(a) IN GENERAL.—The Secretary shall make avail9 able to the Secretary of Defense for each fiscal year funds

10 and commodities in an amount determined in accordance

11 with subsection (c) for the purpose of establishing and car12 rying out nutritious food service programs that provide af13 fordable meals and supplements to students attending De14 partment of Defense overseas dependents’ schools.

15 ‘‘(b) REQUIREMENTS.—In carrying out nutritious

16 food service programs under subsection (a), the Secretary

17 of Defense—

18 ‘‘(1) shall ensure that not less than 80 percent

19 of the amount of assistance provided to each school

20 for a fiscal year is used to provide free or low cost

21 meals or supplements to economically disadvantaged

22 children; and

23 ‘‘(2) shall ensure that, with respect to the pro24 vision of meals to students, each such school will—
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1 ‘‘(A) implement minimum nutritional re2 quirements for meals provided under this sec3 tion based on the most recent tested nutritional

4 research available, except that—

5 ‘‘(i) such requirements shall not be

6 construed to prohibit the substitution of

7 foods to accommodate the medical or other

8 special dietary needs of individual stu9 dents; and

10 ‘‘(ii) such requirements shall, at a

11 minimum, be based on—

12 ‘‘(I) the weekly average of the

13 nutrient content of school lunches; or

14 ‘‘(II) such other standards as the

15 Secretary of Agriculture may pre16 scribe; or

17 ‘‘(B) implement the model nutrition stand18 ards developed under section 10 for such meals.

19 ‘‘(c) AMOUNT AND SOURCE OF FUNDS AND COMMOD20 ITIES.—

21 ‘‘(1) AMOUNT.—The Secretary, in consultation

22 with the Secretary of Defense, shall determine the

23 amount of funds and commodities necessary for each

24 fiscal year to establish and carry out nutritious food

25 service programs described in subsection (a).
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1 ‘‘(2) SOURCE.—Such amount of funds and com2 modities shall consist of the reservation of the

3 school-based nutrition amount in accordance with

4 section 2(a)(3)(B).

5 ‘‘SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR

6 STUDENTS.

7 ‘‘(a) MODEL NUTRITION STANDARDS.—Not later

8 than April 1, 1996, the Food and Nutrition Board of the

9 Institute of Medicine of the National Academy of Sciences,

10 in cooperation with nutritionists and directors of programs

11 providing meals to students under this Act, shall develop

12 model nutrition standards for meals provided to such stu13 dents under this Act.

14 ‘‘(b) REPORT TO CONGRESS.—Not later than 1 year

15 after the date on which the model nutrition standards are

16 developed under subsection (a), the Food and Nutrition

17 Board of the Institute of Medicine of the National Acad18 emy of Sciences shall prepare and submit to the Congress

19 a report regarding the efforts of States to implement such

20 model nutrition standards.

21 ‘‘SEC. 11. DEFINITIONS.

22 ‘‘For purposes of this Act:

23 ‘‘(1) DEPARTMENT OF DEFENSE DOMESTIC DE24 PENDENTS’ SCHOOL.—The term ‘Department of De25 fense domestic dependents’ school’ means an elemen-
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1 tary or secondary school established pursuant to sec2 tion 2164 of title 10, United States Code.

3 ‘‘(2) DEPARTMENT OF DEFENSE OVERSEAS DE4 PENDENTS’ SCHOOL.—The term ‘Department of De5 fense overseas dependents’ school’ means a Depart6 ment of Defense dependents’ school which is located

7 outside the United States and the territories or pos8 sessions of the United States.

9 ‘‘(3) ECONOMICALLY DISADVANTAGED.—The

10 term ‘economically disadvantaged’ means an individ11 ual or a family, as the case may be, whose annual

12 income does not exceed 185 percent of the applicable

13 family size income levels contained in the most re14 cent income poverty guidelines prescribed by the Of15 fice of Management and Budget and based on data

16 from the Bureau of the Census.

17 ‘‘(4) SCHOOL.—The term ‘school’ means a pub18 lic or private nonprofit elementary, intermediate, or

19 secondary school.

20 ‘‘(5) SECRETARY.—The term ‘Secretary’ means

21 the Secretary of Agriculture.

22 ‘‘(6) STATE.—The term ‘State’ means any of

23 the several States, the District of Columbia, the

24 Commonwealth of Puerto Rico, the Commonwealth

25 of the Northern Mariana Islands, American Samoa,
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1 Guam, the Virgin Islands, or a tribal organization

2 (as defined in section 4(l) of the Indian Self-Deter3 mination and Education Assistance Act (25 U.S.C.

4 450b(l))).’’.

5 CHAPTER 3—MISCELLANEOUS

6 PROVISIONS

7 SEC. 361. REPEALERS.

8 The following Acts are repealed:

9 (1) The Commodity Distribution Reform Act

10 and WIC Amendments of 1987 (Public Law 100–

11 237; 101 Stat. 1733).

12 (2) The Child Nutrition and WIC Reauthoriza13 tion Act of 1989 (Public Law 101–147; 103 Stat.

14 877).

15 Subtitle C—Other Repealers and

16 Conforming Amendments

17 SEC. 371. AMENDMENTS TO LAWS RELATING TO CHILD

18 PROTECTION BLOCK GRANT.

19 (a) ABANDONED INFANTS ASSISTANCE.—

20 (1) REPEALER.—The Abandoned Infants As21 sistance Act of 1988 (42 U.S.C. 670 note) is re22 pealed.

23 (2) CONFORMING AMENDMENT.—Section

24 421(7) of the Domestic Volunteer Service Act of
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1 1973 (42 U.S.C. 5061(7)) is amended to read as fol2 lows:

3 ‘‘(7) the term ‘boarder baby’ means an infant

4 who is medically cleared for discharge from an

5 acute-care hospital setting, but remains hospitalized

6 because of a lack of appropriate out-of-hospital

7 placement alternatives;’’.

8 (b) CHILD ABUSE PREVENTION AND TREATMENT.—

9 (1) REPEALER.—The Child Abuse Prevention

10 and Treatment Act (42 U.S.C. 5101 et seq.) is re11 pealed.

12 (2) CONFORMING AMENDMENTS.—The Victims

13 of Crime Act of 1984 (42 U.S.C. 10601 et seq.) is

14 amended—

15 (A) in section 1402—

16 (i) in subsection (d)—

17 (I) by striking paragraph (2);

18 and

19 (II) by redesignating paragraphs

20 (3) and (4) as paragraphs (2) and

21 (3), respectively; and

22 (ii) by striking subsection (g); and

23 (B) by striking section 1404.
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1 (c) ADOPTION OPPORTUNITIES.—The Child Abuse

2 Prevention and Treatment and Adoption Reform Act of

3 1978 (42 U.S.C. 5111 et seq.) is repealed.

4 (d) CRISIS NURSERIES.—The Temporary Child Care

5 for Children with Disabilities and Crisis Nurseries Act of

6 1986 (42 U.S.C. 5117 et seq.) is amended—

7 (1) in the title heading by striking ‘‘AND CRI8 SIS NURSERIES’’;

9 (2) in section 201 by striking ‘‘and Crisis Nurs10 eries’’;

11 (3) in section 202—

12 (A) by striking ‘‘provide: (A) temporary’’

13 and inserting ‘‘to provide temporary’’; and

14 (B) by striking ‘‘children, and (B)’’ and all

15 that follows through the period and inserting

16 ‘‘children.’’;

17 (4) by striking section 204; and

18 (5) in section 205—

19 (A) in subsection (a)—

20 (i) in paragraph (1)(A) by striking

21 ‘‘or 204’’; and

22 (ii) in paragraph (2)—

23 (I) by striking subparagraph (D);

24 and
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1 (II) by redesignating subpara2 graph (E) as subparagraph (D);

3 (B) by striking subsection (b)(3); and

4 (C) in subsection (d)—

5 (i) by striking paragraph (3); and

6 (ii) by redesignating paragraphs (4)

7 and (5) as paragraph (3) and (4), respec8 tively.

9 (e) MISSING CHILDREN’S ASSISTANCE ACT.—The

10 Missing Children’s Assistance Act (42 U.S.C. 5771-5779)

11 is repealed.

12 (f) FAMILY SUPPORT CENTERS.—Subtitle F of title

13 VII of the Stewart B. McKinney Homeless Assistance Act

14 (42 U.S.C. 11481–11489) is repealed.

15 (g) INVESTIGATION AND PROSECUTION OF CHILD

16 ABUSE CASES.—Subtitle A of title II of the Victims of

17 Child Abuse Act of 1990 (42 U.S.C. 13001–13004) is re18 pealed.

19 (h) REPEAL OF FAMILY UNIFICATION PROGRAM.—

20 Subsection (x) of section 8 of the United States Housing

21 Act of 1937 (42 U.S.C. 1437f(x)) is repealed.
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1 Subtitle D—Related Provisions

2 SEC. 381. REQUIREMENT THAT DATA RELATING TO THE IN3 CIDENCE OF POVERTY IN THE UNITED

4 STATES BE PUBLISHED AT LEAST EVERY 2

5 YEARS.

6 (a) IN GENERAL.—The Secretary shall, to the extent

7 feasible, produce and publish for each State, county, and

8 local unit of general purpose government for which data

9 have been compiled in the then most recent census of pop10 ulation under section 141(a) of title 13, United States

11 Code, and for each school district, data relating to the in12 cidence of poverty. Such data may be produced by means

13 of sampling, estimation, or any other method that the Sec14 retary determines will produce current, comprehensive,

15 and reliable data.

16 (b) CONTENT; FREQUENCY.—Data under this sec17 tion—

18 (1) shall include—

19 (A) for each school district, the number of

20 children age 5 to 17, inclusive, in families below

21 the poverty level; and

22 (B) for each State and county referred to

23 in subsection (a), the number of individuals age

24 65 or older below the poverty level; and

25 (2) shall be published—
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1 (A) for each State, county, and local unit

2 of general purpose government referred to in

3 subsection (a), in 1996 and at least every sec4 ond year thereafter; and

5 (B) for each school district, in 1998 and at

6 least every second year thereafter.

7 (c) AUTHORITY TO AGGREGATE.—

8 (1) IN GENERAL.—If reliable data could not

9 otherwise be produced, the Secretary may, for pur10 poses of subsection (b)(1)(A), aggregate school dis11 tricts, but only to the extent necessary to achieve re12 liability.

13 (2) INFORMATION RELATING TO USE OF AU14 THORITY.—Any data produced under this subsection

15 shall be appropriately identified and shall be accom16 panied by a detailed explanation as to how and why

17 aggregation was used (including the measures taken

18 to minimize any such aggregation).

19 (d) REPORT TO BE SUBMITTED WHENEVER DATA

20 IS NOT TIMELY PUBLISHED.—If the Secretary is unable

21 to produce and publish the data required under this sec22 tion for any State, county, local unit of general purpose

23 government, or school district in any year specified in sub24 section (b)(2), a report shall be submitted by the Secretary

25 to the President of the Senate and the Speaker of the
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1 House of Representatives, not later than 90 days before

2 the start of the following year, enumerating each govern3 ment or school district excluded and giving the reasons

4 for the exclusion.

5 (e) CRITERIA RELATING TO POVERTY.—In carrying

6 out this section, the Secretary shall use the same criteria

7 relating to poverty as were used in the then most recent

8 census of population under section 141(a) of title 13,

9 United States Code (subject to such periodic adjustments

10 as may be necessary to compensate for inflation and other

11 similar factors).

12 (f) CONSULTATION.—The Secretary shall consult

13 with the Secretary of Education in carrying out the re14 quirements of this section relating to school districts.

15 (g) DEFINITION.—For the purpose of this section,

16 the term ‘‘Secretary’’ means the Secretary of Health and

17 Human Services.

18 (h) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated to carry out this section

20 $1,500,000 for each of fiscal years 1996 through 2000.

21 SEC. 382. DATA ON PROGRAM PARTICIPATION AND OUT22 COMES.

23 (a) IN GENERAL.—The Secretary shall produce data

24 relating to participation in programs authorized by this

25 Act by families and children. Such data may be produced
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1 by means of sampling, estimation, or any other method

2 that the Secretary determines will produce comprehensive

3 and reliable data.

4 (b) CONTENT.—Data under this section shall include,

5 but not be limited to—

6 (1) changes in participation in welfare, health,

7 education, and employment and training programs,

8 for families and children, the duration of such par9 ticipation, and the causes and consequences of any

10 changes in program participation;

11 (2) changes in employment status, income and

12 poverty status, family structure and process, and

13 children’s well-being, over time, for families and chil14 dren participating in Federal programs and, if ap15 propriate, other low-income families and children,

16 and the causes and consequences of such changes;

17 and

18 (3) demographic data, including household com19 position, marital status, relationship of householders,

20 racial and ethnic designation, age, and educational

21 attainment.

22 (c) FREQUENCY.—Data under this section shall re23 flect the period 1993 through 2002, and shall be published

24 as often as practicable during that time, but in any event

25 no later than December 31, 2003.
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1 (d) DEFINITION.—For the purpose of this section,

2 the term ‘‘Secretary’’ means the Secretary of Health and

3 Human Services.

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There

5 are authorized to be appropriated to carry out this section

6 $2,500,000 in fiscal year 1996, $10,000,000 for each of

7 fiscal years 1997 through 2002, and $2,000,000 for fiscal

8 year 2003.

9 Subtitle E—General Effective Date;

10 Preservation of Actions, Obliga11 tions, and Rights

12 SEC. 391. EFFECTIVE DATE.

13 Except as otherwise provided in this title, this title

14 and the amendments made by this title shall take effect

15 on October 1, 1995.

16 SEC. 392. APPLICATION OF AMENDMENTS AND REPEALERS.

17 An amendment or repeal made by this title shall not

18 apply with respect to—

19 (1) powers, duties, functions, rights, claims,

20 penalties, or obligations applicable to financial as21 sistance provided before the effective date of amend22 ment or repeal, as the case may be, under the Act

23 so amended or so repealed; and
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1 (2) administrative actions and proceedings com2 menced before such date, or authorized before such

3 date to be commenced, under such Act.

4 TITLE IV—RESTRICTING WEL5 FARE AND PUBLIC BENEFITS

6 FOR ALIENS

7 SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING

8 WELFARE AND IMMIGRATION.

9 The Congress makes the following statements con10 cerning national policy with respect to welfare and immi11 gration:

12 (1) Self-sufficiency has been a basic principle of

13 United States immigration law since this country’s

14 earliest immigration statutes.

15 (2) It continues to be the immigration policy of

16 the United States that—

17 (A) aliens within the nation’s borders not

18 depend on public resources to meet their needs,

19 but rather rely on their own capabilities and the

20 resources of their families, their sponsors, and

21 private organizations, and

22 (B) the availability of public benefits not

23 constitute an incentive for immigration to the

24 United States.
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1 (3) Despite the principle of self-sufficiency,

2 aliens have been applying for and receiving public

3 benefits from Federal, State, and local governments

4 at increasing rates.

5 (4) Current eligibility rules for public assistance

6 and unenforceable financial support agreements have

7 proved wholly incapable of assuring that individual

8 aliens not burden the public benefits system.

9 (5) It is a compelling government interest to

10 enact new rules for eligibility and sponsorship agree11 ments in order to assure that aliens be self-reliant

12 in accordance with national immigration policy.

13 (6) It is a compelling government interest to re14 move the incentive for illegal immigration provided

15 by the availability of public benefits.

16 Subtitle A—Eligibility for Federal

17 Benefits Programs

18 SEC. 401. INELIGIBILITY OF ILLEGAL ALIENS FOR CERTAIN

19 PUBLIC BENEFITS PROGRAMS.

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law and except as provided in subsections (b) and

22 (c), any alien who is not lawfully present in the United

23 States shall not be eligible for any Federal means-tested

24 public benefits program (as defined in section 431(d)(2)).
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1 (b) EXCEPTION FOR EMERGENCY ASSISTANCE.—

2 Subsection (a) shall not apply to the provision of non-cash,

3 in-kind emergency assistance (including emergency medi4 cal services).

5 (c) TREATMENT OF HOUSING-RELATED ASSIST6 ANCE.—Subsection (a) shall not apply to any program for

7 housing or community development assistance adminis8 tered by the Secretary of Housing and Urban Develop9 ment, any program under title V of the Housing Act of

10 1949, or any assistance under section 306C of the Consoli11 dated Farm and Rural Development Act, except that in

12 the case of financial assistance (as defined in section

13 214(b) of the Housing and Community Development Act

14 of 1980), the provisions of section 214 of such Act shall

15 apply instead of subsection (a).

16 SEC. 402. INELIGIBILITY OF NONIMMIGRANTS FOR CER17 TAIN PUBLIC BENEFITS PROGRAMS.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law and except as provided in subsections (b) and

20 (c), any alien who is lawfully present in the United States

21 as a nonimmigrant shall not be eligible for any Federal

22 means-tested public benefits program.

23 (b) EXCEPTIONS.—

24 (1) EMERGENCY ASSISTANCE.—Subsection (a)

25 shall not apply to the provision of non-cash, in-kind
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1 emergency assistance (including emergency medical

2 services).

3 (2) ALIENS GRANTED ASYLUM.—Subsection (a)

4 shall not apply to an alien who is granted asylum

5 under section 208 of the Immigration and National6 ity Act or whose deportation has been withheld

7 under section 243(h) of such Act.

8 (3) CURRENT LEGAL RESIDENT EXCEPTION.—

9 Subsection (a) shall not apply to the eligibility of an

10 alien for a program until 1 year after the date of the

11 enactment of this Act if, on such date of enactment,

12 the alien is lawfully residing in any State or any ter13 ritory or possession of the United States and is eligi14 ble for the program.

15 (4) TREATMENT OF TEMPORARY AGRICUL16 TURAL WORKERS.—Subsection (a) shall not apply to

17 a nonimmigrant admitted as a temporary agricul18 tural worker under section 101(a)(15)(H)(ii)(a) of

19 the Immigration and Nationality Act or as the

20 spouse or minor child of such a worker under section

21 101(a)(15)(H)(iii) of such Act.

22 (c) TREATMENT OF HOUSING-RELATED ASSIST23 ANCE.—Subsection (a) shall not apply to any program for

24 housing or community development assistance adminis25 tered by the Secretary of Housing and Urban Develop-
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1 ment, any program under title V of the Housing Act of

2 1949, or any assistance under section 306C of the Consoli3 dated Farm and Rural Development Act, except that in

4 the case of financial assistance (as defined in section

5 214(b) of the Housing and Community Development Act

6 of 1980), the provisions of section 214 of such Act shall

7 apply instead of subsection (a).

8 (d) TREATMENT OF ALIENS PAROLED INTO THE

9 UNITED STATES.—An alien who is paroled into the

10 United States under section 212(d)(5) of the Immigration

11 and Nationality Act for a period of less than 1 year shall

12 be considered, for purposes of this subtitle, to be lawfully

13 present in the United States as a nonimmigrant.

14 SEC. 403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5

15 SPECIFIED FEDERAL PUBLIC BENEFITS PRO16 GRAMS.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law and except as provided in subsections (b) and

19 (c), any alien who is lawfully present in the United States

20 (other than as a nonimmigrant to which section 402(a)

21 or 402(c) applies) shall not be eligible for any of the fol22 lowing Federal means-tested public benefits programs:

23 (1) SSI.—The supplemental security income

24 program under title XVI of the Social Security Act.
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1 (2) TEMPORARY ASSISTANCE FOR NEEDY FAMI2 LIES.—The program of block grants to States for

3 temporary assistance for needy families under part

4 A of title IV of the Social Security Act.

5 (3) SOCIAL SERVICES BLOCK GRANT.—The pro6 gram of block grants to States for social services

7 under title XX of the Social Security Act.

8 (4) MEDICAID.—The program of medical assist9 ance under title XIX of the Social Security Act.

10 (5) FOOD STAMPS.—The program under the

11 Food Stamp Act of 1977.

12 (b) EXCEPTIONS.—

13 (1) TIME-LIMITED EXCEPTION FOR REFU14 GEES.—Subsection (a) shall not apply to an alien

15 admitted to the United States as a refugee under

16 section 207 of the Immigration and Nationality Act

17 until 5 years after the date of such alien’s arrival

18 into the United States.

19 (2) CERTAIN LONG-TERM, PERMANENT RESI20 DENT, AGED ALIENS.—Subsection (a) shall not

21 apply to an alien who—

22 (A) has been lawfully admitted to the

23 United States for permanent residence;

24 (B) is over 75 years of age; and
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1 (C) has resided in the United States for at

2 least 5 years.

3 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

4 Subsection (a) shall not apply to an alien who is

5 lawfully residing in any State (or any territory or

6 possession of the United States) and is—

7 (A) a veteran (as defined in section 101 of

8 title 38, United States Code) with a discharge

9 characterized as an honorable discharge,

10 (B) on active duty (other than active duty

11 for training) in the Armed Forces of the United

12 States, or

13 (C) the spouse or unmarried dependent

14 child of an individual described in subparagraph

15 (A) or (B).

16 Subparagraph (A) shall not apply in the case of a

17 veteran who has been separated from military serv18 ice on account of alienage.

19 (4) EMERGENCY ASSISTANCE.—Subsection (a)

20 shall not apply to the provision of non-cash, in-kind

21 emergency assistance (including emergency medical

22 services).

23 (5) TRANSITION FOR CURRENT BENE24 FICIARIES.—Subsection (a) shall not apply to the eli25 gibility of an alien for a program until 1 year after
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1 the date of the enactment of this Act if, on such

2 date of enactment, the alien is lawfully residing in

3 any State or any territory or possession of the

4 United States and is eligible for the program.

5 SEC. 404. NOTIFICATION.

6 Each Federal agency that administers a program to

7 which section 401, 402, or 403 applies shall, directly or

8 through the States, post information and provide general

9 notification to the public and to program recipients of the

10 changes regarding eligibility for any such program pursu11 ant to this subtitle.

12 Subtitle B—Eligibility for State

13 and Local Public Benefits Pro14 grams

15 SEC. 411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE

16 AND LOCAL PUBLIC BENEFITS PROGRAMS.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law and except as otherwise provided in this sec19 tion, no alien who is not lawfully present in the United

20 States (as determined in accordance with regulations of

21 the Attorney General) shall be eligible for any State

22 means-tested public benefits program (as defined in sec23 tion 431(d)(3)).

24 (b) EXCEPTION FOR EMERGENCY ASSISTANCE.—

25 Subsection (a) shall not apply to the provision of non-cash,
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1 in-kind emergency assistance (including emergency medi2 cal services).

3 SEC. 412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE

4 AND LOCAL PUBLIC BENEFITS PROGRAMS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law and except as otherwise provided in this sec7 tion, no alien who is lawfully present in the United States

8 as a nonimmigrant shall be eligible for any State means9 tested public benefits program (as defined in section

10 431(d)(3)).

11 (b) EXCEPTIONS.—

12 (1) EMERGENCY ASSISTANCE.—The limitations

13 under subsection (a) shall not apply to the provision

14 of non-cash, in-kind emergency assistance (including

15 emergency medical services).

16 (2) ALIENS GRANTED ASYLUM.—Subsection (a)

17 shall not apply to an alien who is granted asylum

18 under section 208 of the Immigration and National19 ity Act or whose deportation has been withheld

20 under section 243(h) of such Act.

21 (3) TREATMENT OF TEMPORARY AGRICUL22 TURAL WORKERS.—Subsection (a) shall not apply to

23 a nonimmigrant admitted as a temporary agricul24 tural worker under section 101(a)(15)(H)(ii)(a) of

25 the Immigration and Nationality Act or as the
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1 spouse or minor child of such a worker under section

2 101(a)(15)(H)(iii) of such Act.

3 (c) TREATMENT OF ALIENS PAROLED INTO THE

4 UNITED STATES.—An alien who is paroled into the

5 United States under section 212(d)(5) of the Immigration

6 and Nationality Act for a period of less than 1 year shall

7 be considered, for purposes of this subtitle, to be lawfully

8 present in the United States as a nonimmigrant.

9 SEC. 413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF IM10 MIGRANTS FOR STATE AND LOCAL MEANS11 TESTED PUBLIC BENEFITS PROGRAMS.

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law and except as otherwise provided in this sec14 tion, a State is authorized to determine eligibility require15 ments for aliens who are lawfully present in the United

16 States (other than as a nonimmigrant to which section

17 412(a) or 412(c) applies) for any State means-tested pub18 lic benefits program.

19 (b) EXCEPTIONS.—

20 (1) TIME-LIMITED EXCEPTION FOR REFU21 GEES.—The authority under subsection (a) shall not

22 apply to an alien admitted to the United States as

23 a refugee under section 207 of the Immigration and

24 Nationality Act until 5 years after the date of such

25 alien’s arrival into the United States.
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1 (2) CERTAIN LONG-TERM, PERMANENT RESI2 DENT, AGED ALIENS.—The authority under sub3 section (a) shall not apply to an alien who—

4 (A) has been lawfully admitted to the

5 United States for permanent residence;

6 (B) is over 75 years of age; and

7 (C) has resided in the United States for at

8 least 5 years.

9 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

10 The authority under subsection (a) shall not apply

11 to an alien who is lawfully residing in any State (or

12 any territory or possession of the United States) and

13 is—

14 (A) a veteran (as defined in section 101 of

15 title 38, United States Code) with a discharge

16 characterized as an honorable discharge,

17 (B) on active duty (other than active duty

18 for training) in the Armed Forces of the United

19 States, or

20 (C) the spouse or unmarried dependent

21 child of an individual described in subparagraph

22 (A) or (B).

23 Subparagraph (A) shall not apply in the case of a

24 veteran who has been separated from military serv25 ice on account of alienage.
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1 (4) EMERGENCY ASSISTANCE.—The authority

2 under subsection (a) shall not apply to the provision

3 of non-cash, in-kind emergency assistance (including

4 emergency medical services).

5 (5) TRANSITION.—The authority under sub6 section (a) shall not apply to eligibility of an alien

7 for a State means-tested public benefits program

8 until 1 year after the date of the enactment of this

9 Act if, on such date of enactment, the alien is law10 fully present in the United States and is eligible for

11 benefits under the program. Nothing in the previous

12 sentence is intended to address alien eligibility for

13 such a program before the date of the enactment of

14 this Act.

15 Subtitle C—Attribution of Income

16 and Affidavits of Support

17 SEC. 421. ATTRIBUTION OF SPONSOR’S INCOME AND RE18 SOURCES TO FAMILY-SPONSORED IMMI19 GRANTS.

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law and except as provided in subsection (c), in

22 determining the eligibility and the amount of benefits of

23 an alien for any means-tested public benefits program (as

24 defined in section 431(d)) the income and resources of the

25 alien shall be deemed to include—
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1 (1) the income and resources of any person who

2 executed an affidavit of support pursuant to section

3 213A of the Immigration and Nationality Act (as

4 added by section 422) in behalf of such alien, and

5 (2) the income and resources of the spouse (if

6 any) of the person.

7 (b) APPLICATION.—Subsection (a) shall apply with

8 respect to an alien until such time as the alien achieves

9 United States citizenship through naturalization pursuant

10 to chapter 2 of title III of the Immigration and National11 ity Act.

12 (c) EXCEPTION FOR HOUSING-RELATED ASSIST13 ANCE.—Subsection (a) shall not apply to any program for

14 housing or community development assistance adminis15 tered by the Secretary of Housing and Urban Develop16 ment, any program under title V of the Housing Act of

17 1949, or any assistance under section 306C of the Consoli18 dated Farm and Rural Development Act.

19 SEC. 422. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

20 SUPPORT.

21 (a) IN GENERAL.—Title II of the Immigration and

22 Nationality Act is amended by inserting after section 213

23 the following new section:

24 ‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

25 ‘‘SEC. 213A. (a) ENFORCEABILITY.—No affidavit of

26 support may be accepted by the Attorney General or by
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1 any consular officer to establish that an alien is not ex2 cludable as a public charge under section 212(a)(4) unless

3 such affidavit is executed as a contract—

4 ‘‘(1) which is legally enforceable against the

5 sponsor by the Federal Government and by any

6 State (or any political subdivision of such State)

7 which provides any means-tested public benefits pro8 gram, but not later than 10 years after the alien last

9 receives any such benefit; and

10 ‘‘(2) in which the sponsor agrees to submit to

11 the jurisdiction of any Federal or State court for the

12 purpose of actions brought under subsection (e)(2).

13 Such contract shall be enforceable with respect to benefits

14 provided to the alien until such time as the alien achieves

15 United States citizenship through naturalization pursuant

16 to chapter 2 of title III.

17 ‘‘(b) FORMS.—Not later than 90 days after the date

18 of enactment of this section, the Attorney General, in con19 sultation with the Secretary of State and the Secretary

20 of Health and Human Services, shall formulate an affida21 vit of support consistent with the provisions of this sec22 tion.

23 ‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this

24 section shall be construed to grant third party beneficiary
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1 rights to any sponsored alien under an affidavit of

2 support.

3 ‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—(1)

4 The sponsor shall notify the Federal Government and the

5 State in which the sponsored alien is currently resident

6 within 30 days of any change of address of the sponsor

7 during the period specified in subsection (a)(1).

8 ‘‘(2) Any person subject to the requirement of para9 graph (1) who fails to satisfy such requirement shall be

10 subject to a civil penalty of—

11 ‘‘(A) not less than $250 or more than $2,000,

12 or

13 ‘‘(B) if such failure occurs with knowledge that

14 the sponsored alien has received any benefit under

15 any means-tested public benefits program, not less

16 than $2,000 or more than $5,000.

17 ‘‘(e) REIMBURSEMENT OF GOVERNMENT EX18 PENSES.—(1)(A) Upon notification that a sponsored alien

19 has received any benefit under any means-tested public

20 benefits program, the appropriate Federal, State, or local

21 official shall request reimbursement by the sponsor in the

22 amount of such assistance.

23 ‘‘(B) The Attorney General, in consultation with the

24 Secretary of Health and Human Services, shall prescribe
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1 such regulations as may be necessary to carry out sub2 paragraph (A).

3 ‘‘(2) If within 45 days after requesting reimburse4 ment, the appropriate Federal, State, or local agency has

5 not received a response from the sponsor indicating a will6 ingness to commence payments, an action may be brought

7 against the sponsor pursuant to the affidavit of support.

8 ‘‘(3) If the sponsor fails to abide by the repayment

9 terms established by such agency, the agency may, within

10 60 days of such failure, bring an action against the spon11 sor pursuant to the affidavit of support.

12 ‘‘(4) No cause of action may be brought under this

13 subsection later than 10 years after the alien last received

14 any benefit under any means-tested public benefits pro15 gram.

16 ‘‘(f) DEFINITIONS.—For the purposes of this sec17 tion—

18 ‘‘(1) SPONSOR.—The term ‘sponsor’ means an

19 individual who—

20 ‘‘(A) is a citizen or national of the United

21 States or an alien who is lawfully admitted to

22 the United States for permanent residence;

23 ‘‘(B) is 18 years of age or over; and

24 ‘‘(C) is domiciled in any State.
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1 ‘‘(2) MEANS-TESTED PUBLIC BENEFITS PRO2 GRAM.—The term ‘means-tested public benefits pro3 gram’ means a program of public benefits (including

4 cash, medical, housing, and food assistance and so5 cial services) of the Federal Government or of a

6 State or political subdivision of a State in which the

7 eligibility of an individual, household, or family eligi8 bility unit for benefits under the program, or the

9 amount of such benefits, or both are determined on

10 the basis of income, resources, or financial need of

11 the individual, household, or unit.’’.

12 (b) CLERICAL AMENDMENT.—The table of contents

13 of such Act is amended by inserting after the item relating

14 to section 213 the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

15 (c) EFFECTIVE DATE.—Subsection (a) of section

16 213A of the Immigration and Nationality Act, as inserted

17 by subsection (a) of this section, shall apply to affidavits

18 of support executed on or after a date specified by the

19 Attorney General, which date shall be not earlier than 60

20 days (and not later than 90 days) after the date the Attor21 ney General formulates the form for such affidavits under

22 subsection (b) of such section.
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1 Subtitle D—General Provisions

2 SEC. 431. DEFINITIONS.

3 (a) IN GENERAL.—Except as otherwise provided in

4 this section, the terms used in this title have the same

5 meaning given such terms in section 101(a) of the Immi6 gration and Nationality Act.

7 (b) LAWFUL PRESENCE.—For purposes of this title,

8 the determination of whether an alien is lawfully present

9 in the United States shall be made in accordance with reg10 ulations of the Attorney General. An individual shall not

11 be considered to be lawfully present in the United States

12 for purposes of this title merely because the alien may be

13 considered to be permanently residing in the United States

14 under color of law for purposes of any particular program.

15 (c) STATE.—As used in this title, the term ‘‘State’’

16 includes the District of Columbia, Puerto Rico, the Virgin

17 Islands, Guam, the Northern Mariana Islands, and Amer18 ican Samoa.

19 (d) PUBLIC BENEFITS PROGRAMS.—As used in this

20 title—

21 (1) MEANS-TESTED PROGRAM.—The term

22 ‘‘means-tested public benefits program’’ means a

23 program of public benefits (including cash, medical,

24 housing, and food assistance and social services) of

25 the Federal Government or of a State or political
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1 subdivision of a State in which the eligibility of an

2 individual, household, or family eligibility unit for

3 benefits under the program, or the amount of such

4 benefits, or both are determined on the basis of in5 come, resources, or financial need of the individual,

6 household, or unit.

7 (2) FEDERAL MEANS-TESTED PUBLIC BENE8 FITS PROGRAM.—The term ‘‘Federal means-tested

9 public benefits program’’ means a means-tested pub10 lic benefits program of (or contributed to by) the

11 Federal Government and under which the Federal

12 Government has specified standards for eligibility

13 and includes the programs specified in section

14 403(a).

15 (3) STATE MEANS-TESTED PUBLIC BENEFITS

16 PROGRAM.—The term ‘‘State means-tested public

17 benefits program’’ means a means-tested public ben18 efits program of a State or political subdivision of a

19 State under which the State or political subdivision

20 specifies the standards for eligibility, and does not

21 include any Federal means-tested public benefits

22 program.
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1 SEC. 432. CONSTRUCTION.

2 Nothing in this title shall be construed as addressing

3 alien eligibility for governmental programs that are not

4 means-tested public benefits programs.

5 Subtitle E—Conforming

6 Amendments

7 SEC. 441. CONFORMING AMENDMENTS RELATING TO AS8 SISTED HOUSING.

9 Section 214 of the Housing and Community Develop10 ment Act of 1980 (42 U.S.C. 1436a) is amended—

11 (1) by striking ‘‘Secretary of Housing and

12 Urban Development’’ each place it appears and in13 serting ‘‘applicable Secretary’’;

14 (2) in subsection (b), by inserting after ‘‘Na15 tional Housing Act,’’ the following: ‘‘the direct loan

16 program under section 502 of the Housing Act of

17 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or

18 542 of such Act, subtitle A of title III of the Cran19 ston-Gonzalez National Affordable Housing Act,’’;

20 (3) in paragraphs (2) through (6) of subsection

21 (d), by striking ‘‘Secretary’’ each place it appears

22 and inserting ‘‘applicable Secretary’’;

23 (4) in subsection (d), in the matter following

24 paragraph (6), by striking ‘‘the term ‘Secretary’’’

25 and inserting ‘‘the term ‘applicable Secretary’’’; and
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1 (5) by adding at the end the following new sub2 section:

3 ‘‘(h) For purposes of this section, the term ‘applicable

4 Secretary’ means—

5 ‘‘(1) the Secretary of Housing and Urban De6 velopment, with respect to financial assistance ad7 ministered by such Secretary and financial assist8 ance under subtitle A of title III of the Cranston9 Gonzalez National Affordable Housing Act; and

10 ‘‘(2) the Secretary of Agriculture, with respect

11 to financial assistance administered by such Sec12 retary.’’.

13 TITLE V—FOOD STAMP REFORM

14 AND COMMODITY DISTRIBUTION

15 SEC. 501. SHORT TITLE.

16 This title may be cited as the ‘‘Food Stamp Reform

17 and Commodity Distribution Act’’.

18 Subtitle A—Commodity

19 Distribution Provisions

20 SEC. 511. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Commodity Dis22 tribution Act of 1995’’.

23 SEC. 512. AVAILABILITY OF COMMODITIES.

24 (a) Notwithstanding any other provision of law, the

25 Secretary of Agriculture (hereinafter in this subtitle re-
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1 ferred to as the ‘‘Secretary’’) is authorized during fiscal

2 years 1996 through 2000 to purchase a variety of nutri3 tious and useful commodities and distribute such commod4 ities to the States for distribution in accordance with this

5 subtitle.

6 (b) In addition to the commodities described in sub7 section (a), the Secretary may expend funds made avail8 able to carry out section 32 of the Act of August 24, 1935

9 (7 U.S.C. 612c), which are not expended or needed to

10 carry out such sections, to purchase, process, and distrib11 ute commodities of the types customarily purchased under

12 such section to the States for distribution in accordance

13 with this subtitle.

14 (c) In addition to the commodities described in sub15 sections (a) and (b), agricultural commodities and the

16 products thereof made available under clause (2) of the

17 second sentence of section 32 of the Act of August 24,

18 1935 (7 U.S.C. 612c), may be made available by the Sec19 retary to the States for distribution in accordance with

20 this subtitle.

21 (d) In addition to the commodities described in sub22 sections (a), (b), and (c), commodities acquired by the

23 Commodity Credit Corporation that the Secretary deter24 mines, in the discretion of the Secretary, are in excess of

25 quantities need to—
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1 (1) carry out other domestic donation pro2 grams;

3 (2) meet other domestic obligations;

4 (3) meet international market development and

5 food aid commitments; and

6 (4) carry out the farm price and income sta7 bilization purposes of the Agricultural Adjustment

8 Act of 1938, the Agricultural Act of 1949, and the

9 Commodity Credit Corporation Charter Act;

10 shall be made available by the Secretary, without charge

11 or credit for such commodities, to the States for distribu12 tion in accordance with this subtitle.

13 (e) During each fiscal year, the types, varieties, and

14 amounts of commodities to be purchased under this sub15 title shall be determined by the Secretary. In purchasing

16 such commodities, except those commodities purchased

17 pursuant to section 520, the Secretary shall, to the extent

18 practicable and appropriate, make purchases based on—

19 (1) agricultural market conditions;

20 (2) the preferences and needs of States and dis21 tributing agencies; and

22 (3) the preferences of the recipients.
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1 SEC. 513. STATE, LOCAL AND PRIVATE SUPPLEMENTATION

2 OF COMMODITIES.

3 (a) The Secretary shall establish procedures under

4 which State and local agencies, recipient agencies, or any

5 other entity or person may supplement the commodities

6 distributed under this subtitle for use by recipient agencies

7 with nutritious and wholesome commodities that such en8 tities or persons donate for distribution, in all or part of

9 the State, in addition to the commodities otherwise made

10 available under this subtitle.

11 (b) States and eligible recipient agencies may use—

12 (1) the funds appropriated for administrative

13 cost under section 519(b);

14 (2) equipment, structures, vehicles, and all

15 other facilities involved in the storage, handling, or

16 distribution of commodities made available under

17 this subtitle; and

18 (3) the personnel, both paid or volunteer, in19 volved in such storage, handling, or distribution;

20 to store, handle or distribute commodities donated for use

21 under subsection (a).

22 (c) States and recipient agencies shall continue, to

23 the maximum extent practical, to use volunteer workers,

24 and commodities and other foodstuffs donated by chari25 table and other organizations, in the distribution of com26 modities under this subtitle.
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1 SEC. 514. STATE PLAN.

2 (a) A State seeking to receive commodities under this

3 subtitle shall submit a plan of operation and administra4 tion every four years to the Secretary for approval. The

5 plan may be amended at any time, with the approval of

6 the Secretary.

7 (b) The State plan, at a minimum, shall—

8 (1) designate the State agency responsible for

9 distributing the commodities received under this sub10 title;

11 (2) set forth a plan of operation and adminis12 tration to expeditiously distribute commodities under

13 this subtitle in quantities requested to eligible recipi14 ent agencies in accordance with sections 516 and

15 520;

16 (3) set forth the standards of eligibility for re17 cipient agencies; and

18 (4) set forth the standards of eligibility for indi19 vidual or household recipients of commodities, which

20 at minimum shall require—

21 (A) individuals or households to be com22 prised of needy persons; and

23 (B) individual or household members to be

24 residing in the geographic location served by

25 the distributing agency at the time of applica26 tion for assistance.
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1 (c) The Secretary shall encourage each State receiv2 ing commodities under this subtitle to establish a State

3 advisory board consisting of representatives of all inter4 ested entities, both public and private, in the distribution

5 of commodities received under this subtitle in the State.

6 (d) A State agency receiving commodities under this

7 subtitle may—

8 (1)(A) enter into cooperative agreements with

9 State agencies of other States to jointly provide

10 commodities received under this subtitle to eligible

11 recipient agencies that serve needy persons in a sin12 gle geographical area which includes such States; or

13 (B) transfer commodities received under this

14 subtitle to any such eligible recipient agency in the

15 other State under such agreement; and

16 (2) advise the Secretary of an agreement en17 tered into under this subsection and the transfer of

18 commodities made pursuant to such agreement.

19 SEC. 515. ALLOCATION OF COMMODITIES TO STATES.

20 (a) In each fiscal year, except for those commodities

21 purchased under section 520, the Secretary shall allocate

22 the commodities distributed under this subtitle as follows:

23 (1) 60 percent of the such total value of com24 modities shall be allocated in a manner such that the

25 value of commodities allocated to each State bears
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1 the same ratio to 60 percent of such total value as

2 the number of persons in households within the

3 State having incomes below the poverty line bears to

4 the total number of persons in households within all

5 States having incomes below such poverty line. Each

6 State shall receive the value of commodities allocated

7 under this paragraph.

8 (2) 40 percent of such total value of commod9 ities shall be allocated in a manner such that the

10 value of commodities allocated to each State bears

11 the same ratio to 40 percent of such total value as

12 the average monthly number of unemployed persons

13 within the State bears to the average monthly num14 ber of unemployed persons within all States during

15 the same fiscal year. Each State shall receive the

16 value of commodities allocated to the State under

17 this paragraph.

18 (b)(1) The Secretary shall notify each State of the

19 amount of commodities that such State is allotted to re20 ceive under subsection (a) or this subsection, if applicable.

21 Each State shall promptly notify the Secretary if such

22 State determines that it will not accept any or all of the

23 commodities made available under such allocation. On

24 such a notification by a State, the Secretary shall reallo25 cate and distribute such commodities as the Secretary
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1 deems appropriate and equitable. The Secretary shall fur2 ther establish procedures to permit States to decline to

3 receive portions of such allocation during each fiscal year

4 as the State determines is appropriate and the Secretary

5 shall reallocate and distribute such allocation as the Sec6 retary deems appropriate and equitable.

7 (2) In the event of any drought, flood, hurricane, or

8 other natural disaster affecting substantial numbers of

9 persons in a State, county, or parish, the Secretary may

10 request that States unaffected by such a disaster consider

11 assisting affected States by allowing the Secretary to re12 allocate commodities from such unaffected State to States

13 containing areas adversely affected by the disaster.

14 (c) Purchases of commodities under this subtitle shall

15 be made by the Secretary at such times and under such

16 conditions as the Secretary determines appropriate within

17 each fiscal year. All commodities so purchased for each

18 such fiscal year shall be delivered at reasonable intervals

19 to States based on the allocations and reallocations made

20 under subsections (a) and (b), and or carry out section

21 520, not later than December 31 of the following fiscal

22 year.
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1 SEC. 516. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF

2 COMMODITIES.

3 (a) In distributing the commodities allocated under

4 subsections (a) and (b) of section 515, the State agency,

5 under procedures determined by the State agency, shall

6 offer, or otherwise make available, its full allocation of

7 commodities for distribution to emergency feeding organi8 zations.

9 (b) If the State agency determines that the State will

10 not exhaust the commodities allocated under subsections

11 (a) and (b) of section 515 through distribution to organi12 zations referred to in subsection (a), its remaining alloca13 tion of commodities shall be distributed to charitable insti14 tutions described in section 523(3) not receiving commod15 ities under subsection (a).

16 (c) If the State agency determines that the State will

17 not exhaust the commodities allocated under subsections

18 (a) and (b) of section 515 through distribution to organi19 zations referred to in subsections (a) and (b), its remain20 ing allocation of commodities shall be distributed to any

21 eligible recipient agency not receiving commodities under

22 subsections (a) and (b).

23 SEC. 517. INITIAL PROCESSING COSTS.

24 The Secretary may use funds of the Commodity

25 Credit Corporation to pay the costs of initial processing

26 and packaging of commodities to be distributed under this
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1 subtitle into forms and in quantities suitable, as deter2 mined by the Secretary, for use by the individual house3 holds or eligible recipient agencies, as applicable. The Sec4 retary may pay such costs in the form of Corporation5 owned commodities equal in value to such costs. The Sec6 retary shall ensure that any such payments in kind will

7 not displace commercial sales of such commodities.

8 SEC. 518. ASSURANCES; ANTICIPATED USE.

9 (a) The Secretary shall take such precautions as the

10 Secretary deems necessary to ensure that commodities

11 made available under this subtitle will not displace com12 mercial sales of such commodities or the products thereof.

13 The Secretary shall submit to the Committee on Agri14 culture of the House of Representatives and the Commit15 tee on Agriculture, Nutrition, and Forestry of the Senate

16 by December 31, 1997, and not less than every two years

17 thereafter, a report as to whether and to what extent such

18 displacements or substitutions are occurring.

19 (b) The Secretary shall determine that commodities

20 provided under this subtitle shall be purchased and dis21 tributed only in quantities that can be consumed without

22 waste. No eligible recipient agency may receive commod23 ities under this subtitle in excess of anticipated use, based

24 on inventory records and controls, or in excess of its ability

25 to accept and store such commodities.
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1 SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

2 (a) PURCHASE OF COMMODITIES.—To carry out this

3 subtitle, there are authorized to be appropriated

4 $260,000,000 for each of the fiscal years 1996 through

5 2000 to purchase, process, and distribute commodities to

6 the States in accordance with this subtitle.

7 (b) ADMINISTRATIVE FUNDS.—

8 (1) There are authorized to be appropriated

9 $40,000,000 for each of the fiscal years 1996

10 through 2000 for the Secretary to make available to

11 the States for State and local payments for costs as12 sociated with the distribution of commodities by eli13 gible recipient agencies under this subtitle, excluding

14 costs associated with the distribution of those com15 modities distributed under section 520. Funds ap16 propriated under this paragraph for any fiscal year

17 shall be allocated to the States on an advance basis

18 dividing such funds among the States in the same

19 proportions as the commodities distributed under

20 this subtitle for such fiscal year are allocated among

21 the States. If a State agency is unable to use all of

22 the funds so allocated to it, the Secretary shall re23 allocate such unused funds among the other States

24 in a manner the Secretary deems appropriate and

25 equitable.
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1 (2)(A) A State shall make available in each fis2 cal year to eligible recipient agencies in the State

3 not less than 40 percent of the funds received by the

4 State under paragraph (1) for such fiscal year, as

5 necessary to pay for, or provide advance payments

6 to cover, the allowable expenses of eligible recipient

7 agencies for distributing commodities to needy per8 sons, but only to the extent such expenses are actu9 ally so incurred by such recipient agencies.

10 (B) As used in this paragraph, the term ‘‘allow11 able expenses’’ includes—

12 (i) costs of transporting, storing, handling,

13 repackaging, processing, and distributing com14 modities incurred after such commodities are

15 received by eligible recipient agencies;

16 (ii) costs associated with determinations of

17 eligibility, verification, and documentation;

18 (iii) costs of providing information to per19 sons receiving commodities under this subtitle

20 concerning the appropriate storage and prepa21 ration of such commodities; and

22 (iv) costs of recordkeeping, auditing, and

23 other administrative procedures required for

24 participation in the program under this subtitle.
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1 (C) If a State makes a payment, using State

2 funds, to cover allowable expenses of eligible recipi3 ent agencies, the amount of such payment shall be

4 counted toward the amount a State must make

5 available for allowable expenses of recipient agencies

6 under this paragraph.

7 (3) States to which funds are allocated for a

8 fiscal year under this subsection shall submit finan9 cial reports to the Secretary, on a regular basis, as

10 to the use of such funds. No such funds may be

11 used by States or eligible recipient agencies for costs

12 other than those involved in covering the expenses

13 related to the distribution of commodities by eligible

14 recipient agencies.

15 (4)(A) Except as provided in subparagraph (B),

16 to be eligible to receive funds under this subsection,

17 a State shall provide in cash or in kind (according

18 to procedures approved by the Secretary for certify19 ing these in-kind contributions) from non-Federal

20 sources a contribution equal to the difference be21 tween—

22 (i) the amount of such funds so received;

23 and

24 (ii) any part of the amount allocated to the

25 State and paid by the State—
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1 (I) to eligible recipient agencies; or

2 (II) for the allowable expenses of such

3 recipient agencies; for use in carrying out

4 this subtitle.

5 (B) Funds allocated to a State under this sec6 tion may, upon State request, be allocated before

7 States satisfy the matching requirement specified in

8 subparagraph (A), based on the estimated contribu9 tion required. The Secretary shall periodically rec10 oncile estimated and actual contributions and adjust

11 allocations to the State to correct for overpayments

12 and underpayments.

13 (C) Any funds distributed for administrative

14 costs under section 520(b) shall not be covered by

15 this paragraph.

16 (5) States may not charge for commodities

17 made available to eligible recipient agencies, and

18 may not pass on to such recipient agencies the cost

19 of any matching requirements, under this subtitle.

20 (c) The value of the commodities made available

21 under subsections (c) and (d) of section 512, and the

22 funds of the Commodity Credit Corporation used to pay

23 the costs of initial processing, packaging (including forms

24 suitable for home use), and delivering commodities to the
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1 States shall not be charged against appropriations author2 ized by this section.

3 SEC. 520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

4 (a) From the funds appropriated under section

5 519(a), $94,500,000 shall be used for each fiscal year to

6 purchase and distribute commodities to supplemental feed7 ing programs serving woman, infants, and children or el8 derly individuals (hereinafter in this section referred to as

9 the ‘‘commodity supplemental food program’’), or serving

10 both groups wherever located.

11 (b) Not more than 20 percent of the funds made

12 available under subsection (a) shall be made available to

13 the States for State and local payments of administrative

14 costs associated with the distribution of commodities by

15 eligible recipient agencies under this section. Administra16 tive costs for the purposes of the commodity supplemental

17 food program shall include, but not be limited to, expenses

18 for information and referral, operation, monitoring, nutri19 tion education, start-up costs, and general administration,

20 including staff, warehouse and transportation personnel,

21 insurance, and administration of the State or local office.

22 (c)(1) During each fiscal year the commodity supple23 mental food program is in operation, the types, varieties,

24 and amounts of commodities to be purchased under this

25 section shall be determined by the Secretary, but, if the
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1 Secretary proposes to make any significant changes in the

2 types, varieties, or amounts from those that were available

3 or were planned at the beginning of the fiscal year the

4 Secretary shall report such changes before implementation

5 to the Committee on Agriculture of the House of Rep6 resentatives and the Committee on Agriculture, Nutrition,

7 and Forestry of the Senate.

8 (2) Notwithstanding any other provision of law, the

9 Commodity Credit Corporation shall, to the extent that

10 the Commodity Credit Corporation inventory levels per11 mit, provide not less than 9,000,000 pounds of cheese and

12 not less than 4,000,000 pounds of nonfat dry milk in each

13 of the fiscal years 1996 through 2000 to the Secretary.

14 The Secretary shall use such amounts of cheese and non15 fat dry milk to carry out the commodity supplemental food

16 program before the end of each fiscal year.

17 (d) The Secretary shall, in each fiscal year, approve

18 applications of additional sites for the program, including

19 sites that serve only elderly persons, in areas in which the

20 program currently does not operate, to the full extent that

21 applications can be approved within the appropriations

22 available for the program for the fiscal year and without

23 reducing actual participation levels (including participa24 tion of elderly persons under subsection (e)) in areas in

25 which the program is in effect.
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1 (e) If a local agency that administers the commodity

2 supplemental food program determines that the amount

3 of funds made available to the agency to carry out this

4 section exceeds the amount of funds necessary to provide

5 assistance under such program to women, infants, and

6 children, the agency, with the approval of the Secretary,

7 may permit low-income elderly persons (as defined by the

8 Secretary) to participate in and be served by such pro9 gram.

10 (f)(1) If it is necessary for the Secretary to pay a

11 significantly higher than expected price for one or more

12 types of commodities purchased under this section, the

13 Secretary shall promptly determine whether the price is

14 likely to cause the number of persons that can be served

15 in the program in a fiscal year to decline.

16 (2) If the Secretary determines that such a decline

17 would occur, the Secretary shall promptly notify the State

18 agencies charged with operating the program of the de19 cline and shall ensure that a State agency notify all local

20 agencies operating the program in the State of the decline.

21 (g) Commodities distributed to States pursuant to

22 this section shall not be considered in determining the

23 commodity allocation to each State under section 515 or

24 priority of distribution under section 516.
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1 SEC. 521. COMMODITIES NOT INCOME.

2 Notwithstanding any other provision of law, commod3 ities distributed under this subtitle shall not be considered

4 income or resources for purposes of determining recipient

5 eligibility under any Federal, State, or local means-tested

6 program.

7 SEC. 522. PROHIBITION AGAINST CERTAIN STATE

8 CHARGES.

9 Whenever a commodity is made available without

10 charge or credit under this subtitle by the Secretary for

11 distribution within the States to eligible recipient agencies,

12 the State may not charge recipient agencies any amount

13 that is in excess of the State’s direct costs of storing, and

14 transporting to recipient agencies the commodities minus

15 any amount the Secretary provides the State for the costs

16 of storing and transporting such commodities.

17 SEC. 523. DEFINITIONS.

18 As used in this subtitle:

19 (1) The term ‘‘average monthly number of un20 employed persons’’ means the average monthly num21 ber of unemployed persons within a State in the

22 most recent fiscal year for which such information is

23 available as determined by the Bureau of Labor Sta24 tistics of the Department of Labor.

25 (2) The term ‘‘elderly persons’’ means individ26 uals 60 years of age or older.
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1 (3) The term ‘‘eligible recipient agency’’ means

2 a public or nonprofit organization that admin3 isters—

4 (A) an institution providing commodities to

5 supplemental feeding programs serving women,

6 infants, and children or serving elderly persons,

7 or serving both groups;

8 (B) an emergency feeding organization;

9 (C) a charitable institution (including a

10 hospital and a retirement home, but excluding

11 a penal institution) to the extent that such in12 stitution serves needy persons;

13 (D) a summer camp for children, or a

14 child nutrition program providing food service;

15 (E) a nutrition project operating under the

16 Older Americans Act of 1965, including such

17 project that operates a congregate nutrition site

18 and a project that provides home-delivered

19 meals; or

20 (F) a disaster relief program;and that has

21 been designated by the appropriate State agen22 cy, or by the Secretary, and approved by the

23 Secretary for participation in the program es24 tablished under this subtitle.
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1 (4) The term ‘‘emergency feeding organization’’

2 means a public or nonprofit organization that ad3 ministers activities and projects (including the activi4 ties and projects of a charitable institution, a food

5 bank, a food pantry, a hunger relief center, a soup

6 kitchen, or a similar public or private nonprofit eligi7 ble recipient agency) providing nutrition assistance

8 to relieve situations of emergency and distress

9 through the provision of food to needy persons, in10 cluding low-income and unemployed persons.

11 (5) The term ‘‘food bank’’ means a public and

12 charitable institution that maintains an established

13 operation involving the provision of food or edible

14 commodities, or the products thereof, to food pan15 tries, soup kitchens, hunger relief centers, or other

16 food or feeding centers that, as an integral part of

17 their normal activities, provide meals or food to feed

18 needy persons on a regular basis.

19 (6) The term ‘‘food pantry’’ means a public or

20 private nonprofit organization that distributes food

21 to low-income and unemployed households, including

22 food from sources other than the Department of Ag23 riculture, to relieve situations of emergency and dis24 tress.

25 (7) The term ‘‘needy persons’’ means—
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1 (A) individuals who have low incomes or

2 who are unemployed, as determined by the

3 State (in no event shall the income of such indi4 vidual or household exceed 185% of the poverty

5 line);

6 (B) households certified as eligible to par7 ticipate in the food stamp program under the

8 Food Stamp Act of 1977 (7 U.S.C. 2011 et

9 seq.); or

10 (C) individuals or households participating

11 in any other Federal, or Federally assisted,

12 means-tested program.

13 (8) The term ‘‘poverty line’’ has the same

14 meaning given such term in section 673(2) of the

15 Community Services Block Grant Act (42 U.S.C.

16 9902(2)).

17 (9) The term ‘‘soup kitchen’’ means a public

18 and charitable institution that, as integral part of its

19 normal activities, maintains an established feeding

20 operation to provide food to needy homeless persons

21 on a regular basis.

22 SEC. 524. REGULATIONS.

23 (a) The Secretary shall issue regulations within 120

24 days to implement this subtitle.
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1 (b) In administering this subtitle, the Secretary shall

2 minimize, to the maximum extent practicable, the regu3 latory, recordkeeping, and paperwork requirements im4 posed on eligible recipient agencies.

5 (c) The Secretary shall as early as feasible but not

6 later than the beginning of each fiscal year, publish in the

7 Federal Register a nonbinding estimate of the types and

8 quantities of commodities that the Secretary anticipates

9 are likely to be made available under the commodity dis10 tribution program under this subtitle during the fiscal

11 year.

12 (d) The regulations issued by the Secretary under

13 this section shall include provisions that set standards

14 with respect to liability for commodity losses for the com15 modities distributed under this subtitle in situations in

16 which there is no evidence of negligence or fraud, and con17 ditions for payment to cover such losses. Such provisions

18 shall take into consideration the special needs and cir19 cumstances of eligible recipient agencies.

20 SEC. 525. FINALITY OF DETERMINATIONS.

21 Determinations made by the Secretary under this

22 subtitle and the facts constituting the basis for any dona23 tion of commodities under this subtitle, or the amount

24 thereof, when officially determined in conformity with the

25 applicable regulations prescribed by the Secretary, shall
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1 be final and conclusive and shall not be reviewable by any

2 other officer or agency of the Government.

3 SEC. 526. SALE OF COMMODITIES PROHIBITED.

4 Except as otherwise provided in section 517, none of

5 the commodities distributed under this subtitle shall be

6 sold or otherwise disposed of in commercial channels in

7 any form.

8 SEC. 527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

9 (a) The Secretary, or a designee of the Secretary,

10 shall have the authority to—

11 (1) determine the amount of, settle, and adjust

12 any claim arising under this subtitle; and

13 (2) waive such a claim if the Secretary deter14 mines that to do so will serve the purposes of this

15 subtitle.

16 (b) Nothing contained in this section shall be con17 strued to diminish the authority of the Attorney General

18 of the United States under section 516 of title 28, United

19 States Code, to conduct litigation on behalf of the United

20 States.

21 SEC. 528. REPEALERS; AMENDMENTS.

22 (a) The Emergency Food Assistance Act of 1983 (7

23 U.S.C. 612c note) is repealed.

24 (b) AMENDMENTS.—
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1 (1) The Hunger Prevention Act of 1988 (7

2 U.S.C. 612c note) is amended—

3 (A) by striking section 110;

4 (C) by striking subtitle C; and

5 (B) by striking section 502.

6 (2) The Commodity Distribution Reform Act

7 and WIC Amendments of 1987 (7 U.S.C. 612c note)

8 is amended by striking section 4.

9 (3) The Charitable Assistance and Food Bank

10 Act of 1987 (7 U.S.C. 612c note) is amended by

11 striking section 3.

12 (4) The Food Security Act of 1985 (7 U.S.C.

13 612c note) is amended—

14 (A) by striking section 1571; and

15 (B) in section 1562(d), by striking ‘‘sec16 tion 4 of the Agricultural and Consumer Pro17 tection Act of 1973’’ and inserting ‘‘section 110

18 of the Commodity Distribution Act of 1995’’.

19 (5) The Agricultural and Consumer Protection

20 Act of 1973 (7 U.S.C. 612c note) is amended—

21 (A) in section 4(a), by striking ‘‘institu22 tions (including hospitals and facilities caring

23 for needy infants and children), supplemental

24 feeding programs serving women, infants and

25 children or elderly persons, or both, wherever
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1 located, disaster areas, summer camps for chil2 dren’’ and inserting ‘‘disaster areas’’;

3 (B) in subsection 4(c), by striking ‘‘the

4 Emergency Food Assistance Act of 1983’’ and

5 inserting ‘‘the Commodity Distribution Act of

6 1995’’; and

7 (C) by striking section 5.

8 (6) The Food, Agriculture, Conservation, and

9 Trade Act of 1990 (7 U.S.C. 612c note) is amended

10 by striking section 1773(f).

11 Subtitle B—Simplification and

12 Reform of Food Stamp Program

13 SEC. 531. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Food Stamp Sim15 plification and Reform Act of 1995’’.

16 CHAPTER 1—SIMPLIFIED FOOD STAMP

17 PROGRAM AND STATE ASSISTANCE

18 FOR NEEDY FAMILIES

19 SEC. 541. ESTABLISHMENT OF SIMPLIFIED FOOD STAMP

20 PROGRAM.

21 Section 4(a) of the Food Stamp Act of 1977 (7

22 U.S.C. 2013(a)) is amended—

23 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

24 (3) by adding at the end the following new

25 paragraph:
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1 ‘‘(2) At the request of the State agency, a State may

2 operate a program, as provided in section 24, within the

3 State or any political subdivisions within the State in

4 which households with one or more members receiving reg5 ular cash benefits under the program established by the

6 State under the Temporary Assistance for Needy Families

7 Block Grant will be issued food stamp benefits in accord8 ance with the rules and procedures established—

9 ‘‘(A) by the State under the Temporary Assist10 ance for Needy Families Block Grant or this Act; or

11 ‘‘(B) under the food stamp program.’’.

12 SEC. 542. SIMPLIFIED FOOD STAMP PROGRAM.

13 (a) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

14 seq.) is amended by adding the following new section:

15 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

16 ‘‘(a) If a State elects to operate a program under sec17 tion 4(a)(2) within the State or any political subdivision

18 within the State—

19 ‘‘(1) households in which all members receive

20 regular cash benefits under the program established

21 by the State under the Temporary Assistance for

22 Needy Families Block Grant shall be automatically

23 eligible to participate in the food stamp program;

24 ‘‘(2) benefits under such program shall be de25 termined under the rules and procedures established
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1 by the State or political subdivision under the Tem2 porary Assistance for Needy Families Block Grant

3 or under the food stamp program, subject to sub4 section (g).

5 ‘‘(b) In approving a State plan to carry out a pro6 gram under section 4(a)(2), the Secretary shall certify

7 that the average level of food stamp benefits per household

8 participating in the program under such section for the

9 State or political subdivision in which such program is in

10 operation is not expected to exceed the average level of

11 food stamp benefits per household that received benefits

12 under the program established by a State under part A

13 of title IV of the Social Security Act (42 U.S.C. 601 et

14 seq.) in such area in the preceding fiscal year, adjusted

15 for any changes in the thrifty food plan under section 3(o).

16 The Secretary shall compute the permissible average level

17 of food stamp benefits per household each year for each

18 State or political subdivision in which such program is in

19 operation and may require a State to report any informa20 tion necessary to make such computation.

21 ‘‘(c) When the Secretary determines that the average

22 level of food stamp benefits per household provided by the

23 State or political subdivision under such program has ex24 ceeded the permissible average level of food stamp benefits

25 per household for the State or political subdivision in
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1 which the program was in operation, the State or political

2 subdivision shall pay to the Treasury of the United States

3 the value of the food stamp benefits in excess of the per4 missible average level of food stamp benefits per household

5 in the State or political subdivision within 90 days after

6 the notification of such excess payments.

7 ‘‘(d)(1) A household against which a penalty is im8 posed (including a reduction in benefits or disqualifica9 tion) for noncompliance with the program established by

10 the State under the Temporary Assistance for Needy

11 Families Block Grant may have the same penalty imposed

12 against it (including a reduction in benefits or disqualifica13 tion) in the program administered under this section.

14 ‘‘(2) If the penalty for noncompliance with the pro15 gram established by the State under the Temporary As16 sistance for Needy Families block grant is a reduction in

17 benefits in such program, the household shall not receive

18 an increased allotment under the program administered

19 under this section as a result of a decrease in the house20 hold’s income (as determined by the State under this sec21 tion) caused by such penalty.

22 ‘‘(3) Any household disqualified from the program

23 administered under this subsection may, after such dis24 qualification period has expired, apply for food stamp ben-
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1 efits under this Act and shall be treated as a new appli2 cant.

3 ‘‘(e) If a State or political subdivision, at its option,

4 operates a program under section 4(a)(2) for households

5 that include any member who does not receive regular

6 cash benefits under the program established by the State

7 under the Temporary Assistance for Needy Families Block

8 Grant, the Secretary shall ensure that the State plan pro9 vides that household eligibility shall be determined under

10 this Act, benefits may be determined under the rules and

11 procedures established by the State under the Temporary

12 Assistance for Needy Families Block Grant or this Act,

13 and benefits provided under this section shall be equitably

14 distributed among all household members.

15 ‘‘(f)(1) Under the program operated under section

16 4(a)(2), the State may elect to provide cash assistance in

17 lieu of allotments to all households that include a member

18 who is employed and whose employment produces for the

19 benefit of the member’s household income that satisfies

20 the requirements of paragraph (2).

21 ‘‘(2) The State, in electing to provide cash assistance

22 under paragraph (1), at a minimum shall require that

23 such earned income is—

24 ‘‘(A) not less that $350 per month;
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1 ‘‘(B) earned from employment provided by a

2 nongovernmental employer, as determined by the

3 State; and

4 ‘‘(C) received from the same employer for a pe5 riod of employment of not less than 3 consecutive

6 months.

7 ‘‘(3) If a State that makes the election described in

8 paragraph (1) identifies each household that receives cash

9 assistance under this subsection—

10 ‘‘(A) the Secretary shall pay to the State an

11 amount equal to the value of the allotment that such

12 household would be eligible to receive under this sec13 tion but for the operation of this subsection;

14 ‘‘(B) the State shall provide such amount to the

15 household as cash assistance in lieu of such allot16 ment; and

17 ‘‘(C) for purposes of the food stamp program

18 (other than this section and section 4(a)(2))—

19 ‘‘(i) such cash assistance shall be consid20 ered to be an allotment; and

21 ‘‘(ii) such household shall not receive any

22 other food stamp benefit for the period for

23 which such cash assistance is provided.

24 ‘‘(4) A State that makes the election in paragraph

25 (1) shall—
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1 ‘‘(A) increase the cash benefits provided to

2 households under this subsection to compensate for

3 any State or local sales tax that may be collected on

4 purchases of food by any household receiving cash

5 benefits under this subsection, unless the Secretary

6 determines on the basis of information provided by

7 the State that the increase is unnecessary on the

8 basis of the limited nature of the items subject to

9 the State or local sales tax; and

10 ‘‘(B) pay the cost of any increase in cash bene11 fits required by paragraph (1).

12 ‘‘(5) After a State operates a program under this sub13 section for 2 years, the State shall provide to the Secretary

14 a written evaluation of the impact of cash assistance.

15 ‘‘(g) In operating a program under section 4(a)(2),

16 the State or political subdivision may follow the rules and

17 procedures established by the State or political subdivision

18 under the Temporary Assistance for Needy Families Block

19 Grant or under the food stamp program, except that the

20 State or political subdivision shall comply with the require21 ments of—

22 ‘‘(1) subsections (a) through (g) of section 7

23 (relating to the issuance and use of coupons);

24 ‘‘(2) section 8(a) (relating to the value of allot25 ments, except that a household’s income may be de-
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1 termined under the program established by the State

2 under the Temporary Assistance for Needy Families

3 Block Grant);

4 ‘‘(3) section 8(b) (allotment not considered in5 come or resources);

6 ‘‘(4) subsections (a), (c), (d), and (n) of section

7 11 (relating to administration);

8 ‘‘(5) paragraphs (8), (12), (17), (19), (21),

9 (26), and (27) of section 11(e) (relating to the State

10 plan);

11 ‘‘(6) section 11(e)(10) (relating to a fair hear12 ing) or a comparable requirement established by the

13 State under the Temporary Assistance for Needy

14 Families Block Grant; and

15 ‘‘(7) section 16 (relating to administrative cost16 sharing and quality control).’’.

17 (b) Section 11(e) of the Food Stamp Act of 1977 (7

18 U.S.C. 2020(e)) is amended—

19 (1) in paragraph (24), by striking ‘‘and’’ at the

20 end;

21 (2) in paragraph (25), by striking the period at

22 the end and inserting ‘‘; and’’; and

23 (3) by adding at the end the following new

24 paragraph:
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1 ‘‘(26) the plans of the State agency for operat2 ing, at the election of the State, a program under

3 section 4(a)(2), including—

4 ‘‘(A) the rules and procedures to be fol5 lowed by the State to determine food stamp

6 benefits;

7 ‘‘(B) a statement specifying whether the

8 program operated by the State under section

9 4(a)(2) will include households that include

10 members who do not receive regular cash bene11 fits under the program established by the State

12 under the Temporary Assistance for Needy

13 Families Block Grant; and

14 ‘‘(C) a description of the method by which

15 the State or political subdivision will carry out

16 a quality control system under section 16(c).’’.

17 SEC. 543. CONFORMING AMENDMENTS.

18 (a) Section 8 of the Food Stamp Act of 1977 (7

19 U.S.C. 2017) is amended by striking subsection (e).

20 (b) Section 17 of the Food Stamp Act of 1977 (7

21 U.S.C. 2026) is amended—

22 (1) by striking subsection (i); and

23 (2) by redesignating subsections (j), (k), and (l)

24 as subsections (i), (j), and (k), respectively.
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1 CHAPTER 2—FOOD STAMP PROGRAM

2 SEC. 551. THRIFTY FOOD PLAN.

3 Section (3)(o) of the Food Stamp Act of 1977 (7

4 U.S.C. 2012(o)) is amended by striking ‘‘(4) through Jan5 uary 1, 1980, adjust the cost of such diet every January

6 1 and July 1’’ and all that follows through the end of the

7 subsection, and inserting the following: ‘‘(4) on October

8 1, 1995, adjust the cost of the thrifty food plan to reflect

9 103 percent of the cost of the thrifty food plan in June

10 1994 and increase such amount by 2 percent, rounding

11 the result to the nearest lower dollar increment for each

12 household size, and (5) on October 1, 1996, and each Oc13 tober 1 thereafter, increase the amount established for the

14 preceding October 1, before such amount was rounded, by

15 2 percent, rounding the result to the nearest lower dollar

16 increment for each household size.’’.

17 SEC. 552. INCOME DEDUCTIONS AND ENERGY ASSISTANCE.

18 (a) Section 5(d)(11) of the Food Stamp Act of 1977

19 (7 U.S.C. 2014(d)(11)) is amended—

20 (1) by striking ‘‘(A)’’; and

21 (2) by striking ‘‘or (B) under any State or local

22 laws,’’ and all that follows through ‘‘or impracticable

23 to do so,’’.

24 (b) Section 5(e) of the Food Stamp Act of 1977 (7

25 U.S.C. 2014(e)) is amended to read as follows:
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1 ‘‘(e)(1) DEDUCTIONS FOR STANDARD AND EARNED

2 INCOME.—

3 ‘‘(A) In computing household income, the Sec4 retary shall allow a standard deduction of $134 a

5 month for each household, except that households in

6 Alaska, Hawaii, Guam, and the Virgin Islands of the

7 United States shall be allowed a standard deduction

8 of $229, $189, $269, and $118, respectively.

9 ‘‘(B) All households with earned income shall

10 also be allowed an additional deduction of 20 per11 cent of all earned income (other than that excluded

12 by subsection (d) of this section and that earned

13 under section 16(j)), to compensate for taxes, other

14 mandatory deductions from salary, and work ex15 penses, except that such additional deduction shall

16 not be allowed with respect to earned income that a

17 household willfully or fraudulently fails (as proven in

18 a proceeding provided for in section 6(b)) to report

19 in a timely manner.

20 ‘‘(2) DEPENDENT CARE DEDUCTION.—The Sec21 retary shall allow households, a deduction with respect to

22 expenses other than expenses paid on behalf of the house23 hold by a third party or amounts made available and ex24 cluded for the expenses under subsection (d)(3), the maxi25 mum allowable level of which shall be $200 a month for
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1 each dependent child under 2 years of age and $175 a

2 month for each other dependent, for the actual cost of

3 payments necessary for the care of a dependent when such

4 care enables a household member to accept or continue

5 employment, or training or education which is preparatory

6 for employment.

7 ‘‘(3) EXCESS SHELTER EXPENSE DEDUCTION.—

8 ‘‘(A) The Secretary shall allow households,

9 other than those households containing an elderly or

10 disabled member, with respect to expenses other

11 than expenses paid on behalf of the household by a

12 third party, an excess shelter expense deduction to

13 the extent that the monthly amount expended by a

14 household for shelter exceeds an amount equal to 50

15 percent of monthly household income after all other

16 applicable deductions have been allowed.

17 ‘‘(B) Such excess shelter expense deduction

18 shall not exceed $231 a month in the 48 contiguous

19 States and the District of Columbia, and shall not

20 exceed, in Alaska, Hawaii, Guam, and the Virgin Is21 lands of the United States, $402, $330, $280, and

22 $171 a month, respectively.

23 ‘‘(C)(i) Notwithstanding section 2605(f)) of the

24 Low-Income Home Energy Assistance Act of 1981

25 (42 U.S.C. 8624(f)), a household may not claim as
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1 a shelter expense any payment received, or costs

2 paid on its behalf, under the Low-Income Home En3 ergy Assistance Act of 1981 (42 U.S.C. 8621 et

4 seq.).

5 ‘‘(ii) Notwithstanding section 2605(f)) of the

6 Low-Income Home Energy Assistance Act of 1981

7 (42 U.S.C. 8624(f)), a State agency may use a

8 standard utility allowance as provided under sub9 paragraph (D) for heating and cooling expenses only

10 if the household incurs out-of-pocket heating or cool11 ing expenses in excess of any payment received, or

12 costs paid on its behalf, under the Low-Income

13 Home Energy Assistance Act of 1981 (42 U.S.C.

14 8621 et seq.).

15 ‘‘(iii) For purposes of the food stamp program,

16 assistance provided under the Low-Income Home

17 Energy Assistance Act of 1981 shall be considered

18 to be prorated over the entire heating or cooling sea19 son for which it was provided.

20 ‘‘(iv) At the end of any certification period and

21 up to one additional time during each twelve-month

22 period, a State agency shall allow a household to

23 switch between any standard utility allowance and a

24 deduction based on its actual utility costs.
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1 ‘‘(D)(i) In computing the excess shelter expense

2 deduction, a State agency may use a standard utility

3 allowance in accordance with regulations promul4 gated by the Secretary, except that a State agency

5 may use an allowance which does not fluctuate with6 in a year to reflect seasonal variations.

7 ‘‘(ii) An allowance for a heating or cooling ex8 pense may not be used for a household that does not

9 incur a heating or cooling expense, as the case may

10 be, or does incur a heating or cooling expense but

11 is located in a public housing unit which has central

12 utility meters and charges households, with regard

13 to such expense, only for excess utility costs.

14 ‘‘(iii) No such allowance may be used for a

15 household that shares such expense with, and lives

16 with, another individual not participating in the food

17 stamp program, another household participating in

18 the food stamp program, or both, unless the allow19 ance is prorated between the household and the

20 other individual, household, or both.

21 ‘‘(4) HOMELESS SHELTER DEDUCTION.—(A) A

22 State shall develop a standard homeless shelter deduction,

23 which shall not exceed $139 a month, for the expenses

24 that may reasonably be expected to be incurred by house25 holds in which all members are homeless but are not re-
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1 ceiving free shelter throughout the month. Subject to sub2 paragraph (B), the State shall use such deduction in de3 termining eligibility and allotments for such households.

4 ‘‘(B) The Secretary may prohibit the use of the

5 standard homeless shelter deduction for households with

6 extremely low shelter costs.

7 ‘‘(5) ELDERLY AND DISABLED HOUSEHOLDS.—

8 ‘‘(A) The Secretary shall allow households con9 taining an elderly or disabled member, with respect

10 to expenses other than expenses paid on behalf of

11 the household by a third party—

12 ‘‘(i) an excess medical expense deduction

13 for that portion of the actual cost of allowable

14 medical expenses, incurred by elderly or dis15 abled members, exclusive of special diets, that

16 exceed $35 a month; and

17 ‘‘(ii) an excess shelter expense deduction to

18 the extent that the monthly amount expended

19 by a household for shelter exceeds an amount

20 equal to 50 percent of monthly household in21 come after all other applicable deductions have

22 been allowed.

23 ‘‘(B) State agencies shall offer eligible house24 holds a method of claiming a deduction for recurring

25 medical expenses that are initially verified under the
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1 excess medical expense deduction provided for in

2 subparagraph (A), in lieu of submitting information

3 or verification on actual expenses on a monthly

4 basis. The method described in the preceding sen5 tence shall be designed to minimize the administra6 tive burden for eligible elderly and disabled house7 hold members choosing to deduct their recurrent

8 medical expenses pursuant to such method, shall rely

9 on reasonable estimates of the member’s expected

10 medical expenses for the certification period (includ11 ing changes that can be reasonably anticipated

12 based on available information about the member’s

13 medical condition, public or private medical insur14 ance coverage, and the current verified medical ex15 penses incurred by the member), and shall not re16 quire further reporting or verification of a change in

17 medical expenses if such a change has been antici18 pated for the certification period.

19 ‘‘(6) CHILD SUPPORT DEDUCTION.—Before deter20 mining the excess shelter expense deduction, the Secretary

21 shall allow all households a deduction for child support

22 payments made by a household member to or for an indi23 vidual who is not a member of the household if such house24 hold member was legally obligated to make such payments,

25 except that the Secretary is authorized to prescribe by reg-
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1 ulation the methods, including calculation on a retrospec2 tive basis, that State agencies shall use to determine the

3 amount of the deduction for child support payments.’’.

4 (c) Section 11(e)(3) of the Food Stamp Act of 1977

5 (7 U.S.C. 2020(e)(3)) is amended by striking ‘‘Under the

6 rules prescribed by the Secretary, a State agency shall de7 velop standard estimates’’ and all that follows through the

8 end of the paragraph.

9 SEC. 553. VEHICLE ALLOWANCE.

10 Section 5(g)(2) of the Food Stamp Act of 1977 (7

11 U.S.C. 2014(g)(2)) is amended by striking ‘‘a level set by

12 the Secretary, which shall be $4,500 through August 31,

13 1994,’’ and all that follows through the end of the para14 graph, and inserting ‘‘$4,550.’’.

15 SEC. 554. WORK REQUIREMENTS.

16 (a) Section 6(d) of the Food Stamp Act of 1977 (42

17 U.S.C. 2015(d)) is amended—

18 (1) in paragraph (1)(A)(ii), by striking ‘‘an em19 ployment and training program under paragraph

20 (4), to the extent required under paragraph (4), in21 cluding any reasonable employment requirements as

22 are prescribed by the State agency in accordance

23 with paragraph (4)’’ and inserting ‘‘a State job

24 search program’’;

25 (2) in paragraph (2)(A)—
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1 (A) by striking ‘‘title IV of the Social Se2 curity Act (42 U.S.C. 602)’’ and inserting ‘‘the

3 program established by the State under the

4 Temporary Assistance for Needy Families

5 Block Grant’’; and

6 (B) by striking ‘‘that is comparable to a

7 requirement of paragraph (1)’’; and

8 (3) by amending paragraph (4) to read as fol9 lows:

10 ‘‘(4)(A) Except as provided in subparagraphs (B),

11 (C), and (D), an individual shall not be denied initial eligi12 bility but shall be disqualified from the food stamp pro13 gram if after 90 days from the certification of eligibility

14 of such individual the individual was not employed a mini15 mum of 20 hours per week, or does not participate in a

16 program established under section 20 or a comparable

17 program established by the State or local government.

18 ‘‘(B) Subparagraph (A) shall not apply in the case

19 of an individual who—

20 ‘‘(i) is under eighteen or over fifty years of age;

21 ‘‘(ii) is certified by a physician as physically or

22 mentally unfit for employment;

23 ‘‘(iii) is a parent or other member of a house24 hold with responsibility for the care of a dependent;
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1 ‘‘(iv) is participating a minimum of 20 hours

2 per week and is in compliance with the requirements

3 of—

4 ‘‘(I) a program under the Job Training

5 Partnership Act (29 U.S.C. 1501 et seq.);

6 ‘‘(II) a program under section 236 of the

7 Trade Act of 1974 (19 U.S.C. 2296); or

8 ‘‘(III) a program of employment or train9 ing operated or supervised by an agency of

10 State or local government which meets stand11 ards deemed appropriate by the Governor; or

12 ‘‘(v) would otherwise be exempt under sub13 section (d)(2).

14 ‘‘(C) Upon request of the State, the Secretary

15 may waive the requirements of subparagraph (A) in

16 the case of some or all individuals within all or part

17 of the State if the Secretary makes a determination

18 that such area—

19 ‘‘(i) has an unemployment rate of over 10 per20 cent; or

21 ‘‘(ii) does not have a sufficient number of jobs

22 to provide employment for individuals subject to this

23 paragraph. The Secretary shall report to the Com24 mittee on Agriculture of the House of Representa25 tives and the Committee on Agriculture, Nutrition,
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1 and Forestry of the Senate on the basis on which

2 the Secretary made such a decision.

3 ‘‘(D) An individual who has been disqualified from

4 the food stamp program under subparagraph (A) may re5 establish eligibility for assistance if such person becomes

6 exempt under subparagraph (B) or by—

7 ‘‘(i) becoming employed for a minimum of 20

8 hours per week during any consecutive thirty-day pe9 riod; or

10 ‘‘(ii) participating in a program established

11 under section 20 or a comparable program estab12 lished by the State or local government.’’.

13 (b) Section 16 of the Food Stamp Act of 1977 (7

14 U.S.C. 2025) is amended—

15 (1) by striking subsection (h); and

16 (2) by redesignating subsections (i) and (j) as

17 subsections (h) and (i), respectively.

18 (c) Section 17 of the Food Stamp Act of 1977 (7

19 U.S.C. 2026), as amended by section 543(b), is amend20 ed—

21 (1) by striking subsection (d); and

22 (2) by redesignating subsections (e) through (k)

23 as subsections (d) through (j), respectively.

24 (d) Section 20 of the Food Stamp Act of 1977 (7

25 U.S.C. 2029) is amended to read as follows:
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1 ‘‘SEC. 20. (a)(1) The Secretary shall permit a State

2 that applies and submits a plan in compliance with guide3 lines promulgated by the Secretary to operate a program

4 within the State or any political subdivision within the

5 State, under which persons who are required to work

6 under section 6(d)(4) may accept an offer from the State

7 or political subdivision to perform work on its behalf, or

8 on behalf of a private nonprofit entity designated by the

9 State or political subdivision, in order to continue to qual10 ify for benefits after they have initially been judged eligi11 ble.

12 ‘‘(2) The Secretary shall promulgate guidelines pur13 suant to paragraph (1) which, to the maximum extent

14 practicable, enable a State or political subdivision to de15 sign and operate a program that is compatible and consist16 ent with similar programs operated by the State or politi17 cal subdivision.

18 ‘‘(b) To be approved by the Secretary, a program

19 shall provide that participants work, in return for com20 pensation consisting of the allotment to which the house21 hold is entitled under section 8(a), with each hour of such

22 work entitling that household to a portion of its allotment

23 equal in value to 100 percent of the higher of the applica24 ble State minimum wage or the Federal minimum hourly

25 rate under the Fair Labor Standards Act of 1938.
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1 ‘‘(c) No State or political subdivision that receives

2 funds provided under this section shall replace any em3 ployed worker with an individual who is participating in

4 a program under this section for the purposes of comply5 ing with section 6(d)(4). Such an individual may be placed

6 in any position offered by the State or political subdivision

7 that—

8 ‘‘(1) is a new position;

9 ‘‘(2) is a position that became available in the

10 normal course of conducting the business of the

11 State or political subdivision;

12 ‘‘(3) involves performing work that would other13 wise be performed on an overtime basis by a worker

14 who is not an individual participating in such pro15 gram; or

16 ‘‘(4) that is a position which became available

17 by shifting a current employee to an alternate posi18 tion.

19 ‘‘(d) The Secretary shall allocate among the States

20 or political subdivisions in each fiscal year, from funds ap21 propriated for the fiscal year under section 18(a)(1), the

22 amount of $75,000,000 to assist in carrying out the pro23 gram under this section during the fiscal year.

24 ‘‘(e)(1) In making the allocation required under sub25 section (d), the Secretary shall allocate to each State oper-
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1 ating a program under this section that percentage of the

2 total funds allocated under subsection (d) which equals the

3 estimate of the Secretary of the percentage of participants

4 who are required to work under section 6(d)(4) that reside

5 in such State.

6 ‘‘(2) The State shall promptly notify the Secretary

7 if such State determines that it will not expend the funds

8 allocated it under paragraph (1) and the Secretary shall

9 reallocate such funds as the Secretary deems appropriate

10 and equitable.

11 ‘‘(f) Notwithstanding subsection (d), the Secretary

12 shall ensure that each State operating a program under

13 this section is allocated at least $50,000 by reducing, to

14 the extent necessary, the funds allocated to those States

15 allocated more than $50,000.

16 ‘‘(g) If, in carrying out such program during such

17 fiscal year, a State or political subdivision incurs costs

18 that exceed the amount allocated to the State agency

19 under subsection (d)—

20 ‘‘(1) the Secretary shall pay such State agency

21 an amount equal to 50 percent of such additional

22 costs, subject to the first limitation in paragraph

23 (2); and

24 ‘‘(2) the Secretary shall also reimburse each

25 State agency in an amount equal to 50 percent of
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1 the total amount of payments made or costs in2 curred by the State or political subdivision in con3 nection with transportation costs and other expenses

4 reasonably necessary and directly related to partici5 pation in a program under this section, except that

6 such total amount shall not exceed an amount rep7 resenting $25 per participant per month for costs of

8 transportation and other actual costs and such reim9 bursement shall not be made out of funds allocated

10 under subsection (d).

11 ‘‘(h) The Secretary may suspend or cancel some or

12 all of these payments, or may withdraw approval from a

13 State or political subdivision to operate a program, upon

14 a finding that the State or political subdivision has failed

15 to comply with the requirements of this section.’’.

16 (e) Section 7(i)(6) of the Food Stamp Act of 1977

17 (7 U.S.C. 2015(i)(6)) is amended by striking ‘‘section

18 17(f)’’ and inserting ‘‘17(e)’’.

19 SEC. 555. COMPARABLE TREATMENT OF DISQUALIFIED

20 INDIVIDUALS.

21 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

22 2015) is amended by adding at the end the following new

23 subsection:

24 ‘‘(i) An individual who is a member of a household

25 who would otherwise be eligible to participate in the food
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1 stamp program under this section and who has been dis2 qualified for noncompliance with program requirements

3 from the program established by the State under part A

4 of title IV of the Social Security Act (42 U.S.C. 601 et

5 seq.) shall not be eligible to participate in the food stamp

6 program during the period such disqualification is in

7 effect.’’.

8 SEC. 556. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

9 SYSTEMS.

10 (a) Section 7(i) of the Food Stamp Act of 1977 (7

11 U.S.C. 2016(i)) is amended—

12 (1) by amending paragraph (1) to read as

13 follows:

14 ‘‘(1)(A) State agencies are encouraged to implement

15 an on-line electronic benefit transfer system in which

16 household benefits determined under section 8(a) or sec17 tion 24 are issued from and stored in a central data bank

18 and electronically accessed by household members at the

19 point-of-sale.

20 ‘‘(B) Subject to paragraph (2), a State is authorized

21 to procure and implement an on-line electronic benefit

22 transfer system under the terms, conditions, and design

23 that the State deems appropriate.

24 ‘‘(C) Upon request of a State, the Secretary may

25 waive any provision of this Act prohibiting the effective
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1 implementation of an electronic benefit transfer system

2 under this subsection.’’;

3 (2) in paragraph (2), by striking ‘‘the approval

4 of’’; and

5 (3) in paragraph (3), by striking ‘‘the Secretary

6 shall not approve such a system unless—’’ and in7 serting ‘‘such system shall provide that—’’.

8 (b) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

9 seq.), as amended by section 542(a), is amended by adding

10 at the end the following new section:

11 ‘‘SEC. 25. ENCOURAGEMENT OF ELECTRONIC BENEFIT

12 TRANSFER SYSTEMS.

13 ‘‘(a) Upon fully implementing an electronic benefit

14 transfer system which operates in the entire State, a State

15 may, subject to the provisions of this section, elect to re16 ceive a grant for any fiscal year to operate a low-income

17 nutrition assistance program in such fiscal year in lieu of

18 the food stamp program.

19 ‘‘(b)(1) A State that meets the requirements of this

20 section and elects to operate such program, shall receive

21 each fiscal year under this section the sum of—

22 ‘‘(A)(i) the total dollar value of all benefits is23 sued under the food stamp program by the State

24 during fiscal year 1994; or
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1 ‘‘(ii) the average per fiscal year of the total dol2 lar value of all benefits issued under the food stamp

3 program by the State during fiscal years 1992

4 through 1994; and

5 ‘‘(B)(i) the total amount received by the State

6 for administrative costs under section 16(a) for fis7 cal year 1994; or

8 ‘‘(ii) the average per fiscal year of the total

9 amount received by the State for administrative

10 costs under section 16(a) for fiscal years 1992

11 through 1994.

12 ‘‘(2) Upon approval by the Secretary of the plan sub13 mitted by a State under subsection (c), the Secretary shall

14 pay to the State at such times and in such manner as

15 the Secretary may determine, the amount to which the

16 State is eligible under subsection (b)(1).

17 ‘‘(c) To be eligible to operate a low-income nutrition

18 assistance program under this section, a State shall sub19 mit for approval each fiscal year a plan of operation speci20 fying the manner in which such a program will be con21 ducted by the State. Such plan shall—

22 ‘‘(1) certify that the State has implemented a

23 state-wide electronic benefit transfer system in ac24 cordance with section 7(i);
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1 ‘‘(2) designate a single State agency responsible

2 for the administration of the low-income nutrition

3 assistance program under this section;

4 ‘‘(3) assess the food and nutrition needs of

5 needy persons residing in the State;

6 ‘‘(4) limit the assistance to be provided under

7 this section to the purchase of food;

8 ‘‘(5) describe the persons to whom such assist9 ance will be provided;

10 ‘‘(6) assure the Secretary that assistance will be

11 provided to the most needy persons in the State and

12 that applicants for assistance shall have adequate

13 notice and fair hearings comparable to those re14 quired under section 11;

15 ‘‘(7) provide that, in the operation of the low16 income nutrition assistance program, there shall be

17 no discrimination on the basis of race, sex, religion,

18 national origin, or political beliefs; and

19 ‘‘(8) include other information as may be re20 quired by the Secretary.

21 ‘‘(d) Payments made under this section to the State

22 may be expended only in the fiscal year for which such

23 payments are distributed, except that the State may re24 serve up to 5 percent of the grant received for a fiscal

25 year to provide assistance under this section in the subse-
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1 quent fiscal year: Provided, That such reserved funds may

2 not total more than 20 percent of the total grant received

3 under this section for a fiscal year.

4 ‘‘(e) The State agency shall keep records concerning

5 the operation of the program carried out under this sec6 tion and shall make such records available to the Secretary

7 and the Comptroller General of the United States.

8 ‘‘(f) If the Secretary finds that there is substantial

9 failure by a State to comply with the requirements of this

10 section, regulations issued pursuant to this section, or the

11 plan approved under subsection (c), then the Secretary

12 shall take one or more of the following actions:

13 ‘‘(1) Suspend all or part of such payment au14 thorized by subsection (b)(2) to be made available to

15 such State, until the Secretary determines the State

16 to be in substantial compliance with such require17 ments.

18 ‘‘(2) Withhold all or part of such payments

19 until the Secretary determines that there is no

20 longer failure to comply with such requirements, at

21 which time the withheld payment may be paid.

22 ‘‘(3) Terminate the authority of the State to

23 operate the low-income nutrition assistance program.

24 ‘‘(g)(1) States which receive grants under this section

25 shall provide for—
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1 ‘‘(A) a biennial audit, conducted in accordance

2 with the standards of the Comptroller General, of

3 expenditures for the provision of nutrition assistance

4 under this section; and

5 ‘‘(B) not later than 120 days after the end of

6 each fiscal year in which an audit is conducted, pro7 vide the Secretary with such audit.

8 States shall make the report of such audit available for

9 public inspection.

10 ‘‘(2) Not later than 120 days after the end of the

11 fiscal year for which a State receives a grant under this

12 section, such State shall prepare an activities report com13 paring actual expenditures for such fiscal year for nutri14 tion assistance under this section with the expenditures

15 for such fiscal year predicted in the plan submitted in ac16 cordance with subsection (c). Such State shall make the

17 activities report available for public inspection.

18 ‘‘(h) Whoever knowingly and willfully embezzles,

19 misapplies, steals, or obtains by fraud, false statement, or

20 forgery, any funds, assets, or property provided or fi21 nanced under this section shall be fined not more than

22 $10,000 or imprisoned for not more than 5 years, or

23 both.’’.
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1 SEC. 557. VALUE OF MINIMUM ALLOTMENT.

2 Section 8(a) of the Food Stamp Act of 1977 (7

3 U.S.C. 2017(a)) is amended by striking ‘‘, and shall be

4 adjusted on each October 1’’ and all that follows through

5 the end of such subsection, and inserting a period.

6 SEC. 558. INITIAL MONTH BENEFIT DETERMINATION.

7 Section 8(c)(2)(B) of the Food Stamp Act of 1977

8 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

9 than one month’’ after ‘‘following any period’’.

10 SEC. 559. IMPROVING FOOD STAMP PROGRAM MANAGE11 MENT.

12 (a) Section 13(a)(1) of the Food Stamp Act of 1977

13 (7 U.S.C. 2022(a)(1)) is amended—

14 (1) in the fifth sentence, by inserting ‘‘(after a

15 determination on any request for a waiver for good

16 cause related to the claim has been made by the Sec17 retary)’’ after ‘‘bill for collection’’; and

18 (2) in the sixth sentence, by striking ‘‘1 year’’

19 and inserting ‘‘2 years’’.

20 (b) Section 16(c) of the Food Stamp Act of 1977 (7

21 U.S.C. 2025(c)) is amended—

22 (1) in paragraph (1)(C)—

23 (A) by striking ‘‘national performance

24 measure’’ and inserting ‘‘payment error toler25 ance level’’; and
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1 (B) by striking ‘‘equal to—’’ and all that

2 follows through the period at the end and in3 serting the following:

4 ‘‘equal to its payment error rate less such tolerance

5 level times the total value of allotments issued in

6 such a fiscal year by such State agency. The amount

7 of liability shall not be affected by corrective action

8 under subparagraph (B).’’;

9 (2) in paragraph (3)(A), by striking ‘‘120 days’’

10 and inserting ‘‘60 days (or 90 days at the discretion

11 of the Secretary)’’;

12 (3) in the last sentence of paragraph (6), by in13 serting ‘‘shall be used to establish a payment-error

14 tolerance level. Such tolerance level for any fiscal

15 year will be one percentage point added to the lowest

16 national performance measure ever announced up to

17 and including such fiscal year under this section.

18 The payment-error tolerance level’’ after ‘‘The an19 nounced national performance measure’’; and

20 (4) by striking paragraphs (8) and (9).

21 SEC. 560. WORK SUPPLEMENTATION OR SUPPORT PRO22 GRAM.

23 (a) Section 11(e) of the Food Stamp Act of 1977 (7

24 U.S.C. 2020(e)), as amended by section 542(b), is amend25 ed—
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1 (1) in paragraph (25), by striking ‘‘and’’;

2 (2) in paragraph (26), by striking the period

3 and inserting ‘‘; and’’ at the end; and

4 (3) by adding at the end the following new

5 paragraph:

6 ‘‘(27) the plans of the State agency for includ7 ing eligible food stamp recipients in a work

8 supplementation or support program under section

9 16(j).’’.

10 (b) Section 16 of the Food Stamp Act of 1977 (7

11 U.S.C. 2025), as amended by section 554(b), is amended

12 by adding at the end the following new subsection:

13 ‘‘(j) WORK SUPPLEMENTATION OR SUPPORT PRO14 GRAM.—

15 ‘‘(1) A State may elect to use the sums equal

16 to the food stamp benefits that would otherwise be

17 allotted to participants under the food stamp pro18 gram but for the operation of this subsection for the

19 purposes of providing and subsidizing or supporting

20 jobs under a work supplementation or support pro21 gram established by the State.

22 ‘‘(2) If a State that makes the election de23 scribed in paragraph (1) identifies each household

24 that participates in the food stamp program which
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1 contains an individual who is participating in such

2 work supplementation or support program—

3 ‘‘(A) the Secretary shall pay to the State

4 an amount equal to the value of the allotment

5 that the household would be eligible to receive

6 but for the operation of this subsection;

7 ‘‘(B) the State shall expend such amount

8 in accordance with its work supplementation or

9 support program in lieu of the allotment that

10 the household would receive but for the oper11 ation of this subsection;

12 ‘‘(C) for purposes of—

13 ‘‘(i) sections 5 and 8(a), the amount

14 received under this subsection shall be ex15 cluded from household income and re16 sources; and

17 ‘‘(ii) section 8(b), the amount received

18 under this subsection shall be considered

19 as the value of an allotment provided to

20 the household; and

21 ‘‘(D) the household shall not receive an al22 lotment from the State agency for the period

23 during which the member continues to partici24 pate in the work supplementation program.
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1 ‘‘(3) No person shall be excused by reason of

2 the fact that such State has a work supplementation

3 or support program from any work requirement

4 under section 6(d), except during the periods in

5 which such individual is employed under such work

6 supplementation or support program.

7 ‘‘(4) For purposes of this subsection, the term

8 ‘‘work supplementation or support program’’ shall

9 mean a program in which, as determined by the Sec10 retary, public assistance, including any benefits pro11 vided under a program established by the State and

12 the food stamp program, is provided to an employer

13 to be used for hiring a public assistance recipient.’’.

14 SEC. 561. OBLIGATIONS AND ALLOTMENTS.

15 Section 18 of the Food Stamp Act of 1977 Act (7

16 U.S.C. 2027) is amended—

17 (1) in subsection (a)—

18 (A) in paragraph (1)—

19 (i) by striking ‘‘are authorized to be

20 appropriated such sums as are necessary

21 for each of the fiscal years 1991 through

22 1995’’ and inserting the following:

23 ‘‘is provided to be obligated, not in excess of the cost esti24 mate made by the Congressional Budget Office for this

25 Act, as amended by the Food Stamp Simplification and
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1 Reform Act of 1995, for the fiscal year ending September

2 30, 1996, with adjustments for any estimates of total obli3 gations for additional fiscal years made by the Congres4 sional Budget Office to reflect the provisions contained in

5 the Food Stamp Simplification and Reform Act of 1995’’;

6 (ii) by striking ‘‘In each monthly re7 port, the Secretary shall also state’’ and

8 inserting ‘‘Also, the Secretary shall file a

9 report every February 15, April 15, and

10 July 15, stating’’; and

11 (iii) by striking ‘‘supplemental appro12 priations’’ and inserting ‘‘additional

13 obligational authority’’; and

14 (B) in paragraph (2), by striking ‘‘author15 ized to be appropriated’’ and inserting ‘‘obli16 gated’’;

17 (2) in subsection (b)—

18 (A) in the first sentence, by striking ‘‘ap19 propriation’’ and inserting ‘‘total obligations

20 limitation provided’’; and

21 (B) in the second sentence, by striking

22 ‘‘appropriation’’ and inserting ‘‘obligational

23 amount provided in subsection (a)(1)’’;

24 (3) in subsection (c)—
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1 (A) by inserting ‘‘or under section 24’’

2 after ‘‘under sections 5(d) and 5(e)’’;

3 (B) by inserting ‘‘or under section 24’’

4 after ‘‘under section 5(c)’’;

5 (C) by striking ‘‘and’’ after ‘‘or otherwise

6 disabled’’; and

7 (D) by inserting before the period at the

8 end ‘‘, and (3) adequate and appropriate rec9 ommendations on how to equitably achieve such

10 reductions’’; and

11 (4) in subsection (f), by striking ‘‘No funds ap12 propriated’’ and inserting ‘‘None of the funds obli13 gated’’.

14 CHAPTER 3—PROGRAM INTEGRITY

15 SEC. 571. AUTHORITY TO ESTABLISH AUTHORIZATION

16 PERIODS.

17 Section 9(a)(1) of the Food Stamp Act of 1977 (7

18 U.S.C. 2018(a)(1)) is amended by adding at the end the

19 following new sentence:

20 ‘‘The Secretary shall establish specific time periods during

21 which authorization to accept and redeem coupons, or to

22 redeem benefits through an electronic benefit transfer sys23 tem, under the food stamp program shall be valid.’’.
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1 SEC. 572. CONDITION PRECEDENT FOR APPROVAL OF RE2 TAIL FOOD STORES AND WHOLESALE FOOD

3 CONCERNS.

4 Section 9(a)(1) of the Food Stamp Act of 1977 (7

5 U.S.C. 2018(a)(1)), as previously amended by this title,

6 is amended by adding at the end the following new sen7 tence:

8 ‘‘No retail food store or wholesale food concern shall be

9 approved for participation in the food stamp program un10 less, wherever possible, an authorized employee of the De11 partment of Agriculture, or an official of the State or local

12 government designated by the Department of Agriculture,

13 has visited such retail food store or wholesale food concern

14 for the purpose of determining whether such retail food

15 store or wholesale food concern should be so approved.’’.

16 SEC. 573. WAITING PERIOD FOR RETAIL FOOD STORES AND

17 WHOLESALE FOOD CONCERNS THAT ARE DE18 NIED APPROVAL TO ACCEPT COUPONS.

19 Section 9(d) of the Food Stamp Act of 1977 (7

20 U.S.C. 2018(d)) is amended by adding at the end the fol21 lowing new sentence:

22 ‘‘Such retail food store or wholesale food concern shall not

23 submit an application under subsection (a)(1) for six

24 months from the date of receipt of the notice of denial.’’.
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1 SEC. 574. DISQUALIFICATION OF RETAIL FOOD STORES

2 AND WHOLESALE FOOD CONCERNS.

3 Section 12(a) of the Food Stamp Act of 1977 (7

4 U.S.C. 2021(a)) is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(a); and

6 (2) by inserting the following new paragraph:

7 ‘‘(2) A retail food store or wholesale food concern

8 that is disqualified from participating in the program

9 under section 17 of the Child Nutrition Act of 1966 shall

10 for such period of disqualification also be disqualified from

11 participating in the food stamp program.’’.

12 SEC. 575. AUTHORITY TO SUSPEND STORES VIOLATING

13 PROGRAM REQUIREMENTS PENDING ADMIN14 ISTRATIVE AND JUDICIAL REVIEW.

15 Section 14(a) of the Food Stamp Act of 1977 (7

16 U.S.C. 2023(a)) is amended by adding at the end the fol17 lowing new sentence:

18 ‘‘Notwithstanding any other provision of law, the perma19 nent disqualification of a retail food store or wholesale

20 food concern under section 12(b)(3) shall be effective from

21 the date of receipt of the notice of disqualification.’’.

22 SEC. 576. CRIMINAL FORFEITURE.

23 Section 15(g) of the Food Stamp Act of 1977 (7

24 U.S.C. 2024(g)) is amended to read as follows:

25 ‘‘(g)(1) The court, in imposing sentence on a person

26 convicted of an offense in violation of subsection (b) or
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1 (c), shall order, in addition to any other sentence imposed

2 pursuant to this subsection, that the person forfeit to the

3 United States all property described in paragraph (2).

4 ‘‘(2) All property, real and personal, used in a trans5 action or attempted transaction, to commit, or to facilitate

6 the commission of, a violation (other than a misdemeanor)

7 of subsection (b) or (c), or proceeds traceable to a violation

8 of subsection (b) or (c), is subject to forfeiture to the Unit9 ed States.

10 ‘‘(3) No property shall be forfeited under this sub11 section to the extent of an interest of an owner, by reason

12 of any act or omission established by that owner to have

13 been committed or omitted without the knowledge or con14 sent of that owner.

15 ‘‘(4) The proceeds from any sale of forfeited property

16 and any monies forfeited under this subsection shall be

17 used—

18 ‘‘(A) to reimburse the Department of Justice

19 for the costs incurred by the Department to initiate

20 and complete the forfeiture proceeding that caused

21 the sale that produced such proceeds;

22 ‘‘(B) to reimburse the Department of Agri23 culture Office of Inspector General for any costs it

24 incurred in the law enforcement effort resulting in

25 the forfeiture;
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1 ‘‘(C) to reimburse any Federal or State law en2 forcement agencies for any costs incurred in the law

3 enforcement effort resulting in the forfeiture; and

4 ‘‘(D) by the Secretary to carry out the ap5 proval, reauthorization, and compliance investiga6 tions of retail stores under section 9.’’.

7 SEC. 577. EXPANDED DEFINITION OF ‘‘COUPON’’.

8 Section 3(d) of the Food Stamp Act of 1977 (7

9 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi10 cate’’ and inserting ‘‘type of certificate, authorization

11 cards, cash or checks issued in lieu of coupons, or access

12 devices, including, but not limited to, electronic benefit

13 transfer cards or personal identification numbers’’.

14 SEC. 578. DOUBLED PENALTIES FOR VIOLATING FOOD

15 STAMP PROGRAM REQUIREMENTS.

16 Section 6(b)(1) of the Food Stamp Act of 1977 (7

17 U.S.C. 2015(b)(1)) is amended—

18 (1) in clause (i), by striking ‘‘six months’’ and

19 inserting ‘‘1 year’’; and

20 (2) in clause (ii), by striking ‘‘1 year’’ and in21 serting ‘‘2 years’’.

22 SEC. 579. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

23 Section 6(b)(1)(iii) of the Food Stamp Act of 1977

24 (7 U.S.C. 2015(b)(1)(iii)) is amended—
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1 (1) in subclause (II), by striking ‘‘or’’ at the

2 end;

3 (2) in subclause (III), by striking the period at

4 the end and inserting ‘‘; or’’; and

5 (3) by adding at the end the following new

6 subclause:

7 ‘‘(IV) a conviction of an offense under sub8 section (a) or (b) of section 15 involving items

9 referred to in such subsection having a value of

10 $500 or more.’’.

11 SEC. 580. CLAIMS COLLECTION.

12 (a) Section 11(e)(8) of the Food Stamp Act of 1977

13 (7 U.S.C. 2020(e)(8)) is amended by inserting before the

14 semicolon at the end ‘‘or refunds of Federal taxes as au15 thorized pursuant to section 3720A of title 31 of the Unit16 ed States Code’’.

17 (b) Section 13(d) of the Act (7 U.S.C. 2022(d)) is

18 amended—

19 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

20 and

21 (2) by inserting before the period at the end

22 ‘‘or refunds of Federal taxes as authorized pursuant

23 to section 3720A of title 31 of the United States

24 Code’’.
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1 Subtitle C—Effective Dates and

2 Miscellaneous Provisions

3 SEC. 591. EFFECTIVE DATES.

4 (a) Except as provided in subsection (b) and (c), this

5 title and amendments made by this title shall take effect

6 on October 1, 1995.

7 (b) The amendments made by section 554 shall take

8 effect on October 1, 1996.

9 (c) The amendments made by section 560 shall take

10 effect on October 1, 1994.

11 SEC. 592. SENSE OF THE CONGRESS.

12 It is the sense of the Congress that States that oper13 ate electronic benefit systems to transfer benefits provided

14 under the Food Stamp Act of 1977 should operate elec15 tronic benefit systems that are compatible with each other.

16 SEC. 593. DEFICIT REDUCTION.

17 It is the sense of the Committee on Agriculture of

18 the House of Representatives that reductions in outlays

19 resulting from subtitle B shall not be taken into account

20 for purposes of section 252 of the Balanced Budget and

21 Emergency Deficit Control Act of 1985.
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1 TITLE VI—SUPPLEMENTAL

2 SECURITY INCOME

3 SEC. 601. DENIAL OF SUPPLEMENTAL SECURITY INCOME

4 BENEFITS BY REASON OF DISABILITY TO

5 DRUG ADDICTS AND ALCOHOLICS.

6 (a) IN GENERAL.—Section 1614(a)(3) of the Social

7 Security Act (42 U.S.C. 1382c(a)(3)) is amended by add8 ing at the end the following:

9 ‘‘(I) Notwithstanding subparagraph (A), an individ10 ual shall not be considered to be disabled for purposes of

11 this title if alcoholism or drug addiction would (but for

12 this subparagraph) be a contributing factor material to

13 the Commissioner’s determination that the individual is

14 disabled.’’.

15 (b) CONFORMING AMENDMENTS.—

16 (1) Section 1611(e) of such Act (42 U.S.C.

17 1382(e)) is amended by striking paragraph (3).

18 (2) Section 1631(a)(2)(A)(ii) of such Act (42

19 U.S.C. 1383(a)(2)(A)(ii)) is amended—

20 (A) by striking ‘‘(I)’’; and

21 (B) by striking subclause (II).

22 (3) Section 1631(a)(2)(B) of such Act (42

23 U.S.C. 1383(a)(2)(B)) is amended—

24 (A) by striking clause (vii);
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1 (B) in clause (viii), by striking ‘‘(ix)’’ and

2 inserting ‘‘(viii)’’;

3 (C) in clause (ix)—

4 (i) by striking ‘‘(viii)’’ and inserting

5 ‘‘(vii)’’; and

6 (ii) in subclause (II), by striking all

7 that follows ‘‘15 years’’ and inserting a pe8 riod;

9 (D) in clause (xiii)—

10 (i) by striking ‘‘(xii)’’ and inserting

11 ‘‘(xi)’’; and

12 (ii) by striking ‘‘(xi)’’ and inserting

13 ‘‘(x)’’; and

14 (E) by redesignating clauses (viii) through

15 (xiii) as clauses (vii) through (xii), respectively.

16 (4) Section 1631(a)(2)(D)(i)(II) of such Act

17 (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amended by

18 striking all that follows ‘‘$25.00 per month’’ and in19 serting a period.

20 (5) Section 1634 of such Act (42 U.S.C. 1383c)

21 is amended by striking subsection (e).

22 (6) Section 201(c)(1) of the Social Security

23 Independence and Program Improvements Act of

24 1994 (42 U.S.C. 425 note) is amended—
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1 (A) by striking ‘‘—’’ and all that follows

2 through ‘‘(A)’’ the 1st place such term appears;

3 (B) by striking ‘‘and’’ the 3rd place such

4 term appears;

5 (C) by striking subparagraph (B);

6 (D) by striking ‘‘either subparagraph (A)

7 or subparagraph (B)’’ and inserting ‘‘the pre8 ceding sentence’’; and

9 (E) by striking ‘‘subparagraph (A) or (B)’’

10 and inserting ‘‘the preceding sentence’’.

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect on October 1, 1995, and shall

13 apply with respect to months beginning on or after such

14 date.

15 (d) FUNDING OF CERTAIN PROGRAMS FOR DRUG

16 ADDICTS AND ALCOHOLICS.—

17 (1) IN GENERAL.—Out of any money in the

18 Treasury not otherwise appropriated, there are here19 by appropriated—

20 (A) for carrying out section 1971 of the

21 Public Health Service Act (as amended by

22 paragraph (2) of this subsection), $95,000,000

23 for each of the fiscal years 1997 through 2000;

24 and
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1 (B) for carrying out the medication devel2 opment project to improve drug abuse and drug

3 treatment research (administered through the

4 National Institute on Drug Abuse), $5,000,000

5 for each of the fiscal years 1997 through 2000.

6 (2) CAPACITY EXPANSION PROGRAM REGARD7 ING DRUG ABUSE TREATMENT.—Section 1971 of the

8 Public Health Service Act (42 U.S.C. 300y) is

9 amended—

10 (A) in subsection (a)(1), by adding at the

11 end the following sentence: ‘‘This paragraph is

12 subject to subsection (j).’’;

13 (B) by redesignating subsection (j) as sub14 section (k);

15 (C) in subsection (j) (as so redesignated),

16 by inserting before the period the following:

17 ‘‘and for each of the fiscal years 1995 through

18 2000’’; and

19 (D) by inserting after subsection (i) the

20 following subsection:

21 ‘‘(j) FORMULA GRANTS FOR CERTAIN FISCAL

22 YEARS.—

23 ‘‘(1) IN GENERAL.—For each of the fiscal years

24 1997 through 2000, the Director shall, for the pur25 pose described in subsection (a)(1), make a grant to
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1 each State that submits to the Director an applica2 tion in accordance with paragraph (2). Such a grant

3 for a State shall consist of the allotment determined

4 for the State under paragraph (3). For each of the

5 fiscal years 1997 through 2000, grants under this

6 paragraph shall be the exclusive grants under this

7 section.

8 ‘‘(2) REQUIREMENTS.—The Director may make

9 a grant under paragraph (1) only if, by the date

10 specified by the Director, the State submits to the

11 Director an application for the grant that is in such

12 form, is made in such manner, and contain such

13 agreements, assurances, and information as the Di14 rector determines to be necessary to carry out this

15 subsection, and if the application contains an agree16 ment by the State in accordance with the following:

17 ‘‘(A) The State will expend the grant in

18 accordance with the priority described in sub19 section (b)(1).

20 ‘‘(B) The State will comply with the condi21 tions described in each of subsections (c), (d),

22 (g), and (h).

23 ‘‘(3) ALLOTMENT.—

24 ‘‘(A) For purposes of paragraph (1), the

25 allotment under this paragraph for a State for
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1 a fiscal year shall, except as provided in sub2 paragraph (B), be the product of—

3 ‘‘(i) the amount appropriated in sec4 tion 601(d)(1) of the Personal Responsibil5 ity Act of 1995 for the fiscal year, together

6 with any additional amounts appropriated

7 to carry out this section for the fiscal year;

8 and

9 ‘‘(ii) the percentage determined for

10 the State under the formula established in

11 section 1933(a).

12 ‘‘(B) Subsections (b) through (d) of section

13 1933 apply to an allotment under subparagraph

14 (A) to the same extent and in the same manner

15 as such subsections apply to an allotment under

16 subsection (a) of section 1933.’’.

17 SEC. 602. SUPPLEMENTAL SECURITY INCOME BENEFITS

18 FOR DISABLED CHILDREN.

19 (a) RESTRICTIONS ON ELIGIBILITY FOR CASH BENE20 FITS.—

21 (1) IN GENERAL.—Section 1614(a)(3)(A) of the

22 Social Security Act (42 U.S.C. 1382c(a)(3)(A)) is

23 amended—

24 (A) by inserting ‘‘(i)’’ after ‘‘(3)(A)’’;
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1 (B) by inserting ‘‘who has attained 18

2 years of age’’ before ‘‘shall be considered’’;

3 (C) by striking ‘‘he’’ and inserting ‘‘the in4 dividual’’;

5 (D) by striking ‘‘(or, in the case of an indi6 vidual under the age of 18, if he suffers from

7 any medically determinable physical or mental

8 impairment impairment of comparable sever9 ity)’’; and

10 (E) by adding after and below the end the

11 following:

12 ‘‘(ii) An individual who has not attained 18 years of

13 age shall be considered to be disabled for purposes of this

14 title for a month if the individual—

15 ‘‘(I) meets all non-disability-related require16 ments for eligibility for cash benefits under this title;

17 ‘‘(II) has any medically determinable physical

18 or mental impairment (or combination of impair19 ments) that meets the requirements, applicable to

20 individuals who have not attained 18 years of age,

21 of the Listings of Impairments set forth in appendix

22 1 of subpart P of part 404 of title 20, Code of Fed23 eral Regulations (revised as of April 1, 1994), or

24 that is equivalent in severity to such an impairment

25 (or such a combination of impairments); and
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1 ‘‘(III)(aa) for the month preceding the first

2 month for which this clause takes effect, was eligible

3 for cash benefits under this title by reason of disabil4 ity; or

5 ‘‘(bb) as a result of the impairment (or com6 bination of impairments) involved—

7 ‘‘(1) is in a hospital, skilled nursing facil8 ity, nursing facility, residential treatment facil9 ity, intermediate care facility for the mentally

10 retarded, or other medical institution; or

11 ‘‘(2) would be required to be placed in

12 such an institution if the individual were not re13 ceiving personal assistance necessitated by the

14 impairment (or impairments).

15 ‘‘(iii) As used in clause (ii)(III)(bb)(2), the term ‘per16 sonal assistance’ includes at least hands-on or stand-by

17 assistance, supervision, or cueing, with activities of daily

18 living and the administration of medical treatment (where

19 applicable). For purposes of the preceding sentence, the

20 term ‘acitivities of daily living’ means eating, toileting,

21 dressing, bathing, and transferring.’’.

22 (2) NOTICE.—Within 1 month after the date of

23 the enactment of this Act, the Commissioner of So24 cial Security shall notify each individual whose eligi25 bility for cash supplemental security income benefits
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1 under title XVI of the Social Security Act will termi2 nate by reason of the amendments made by para3 graph (1) of such termination.

4 (3) ANNUAL REPORTS ON LISTINGS OF IMPAIR5 MENTS.—The Commissioner of Social Security shall

6 annually submit to the Congress a report on the

7 Listings of Impairments set forth in appendix 1 of

8 subpart P of part 404 of title 20, Code of Federal

9 Regulations (revised as of April 1, 1994), that are

10 applicable to indivdiuals who have not attained 18

11 years of age, and recommend any necessary revisions

12 to the listings.

13 (b) ESTABLISHMENT OF PROGRAM OF BLOCK

14 GRANTS REGARDING CHILDREN WITH DISABILITIES.—

15 (1) IN GENERAL.—Title XVI of the Social Se16 curity Act (42 U.S.C. 1381 et seq.) is amended by

17 adding at the end the following:

18 ‘‘PART C—BLOCK GRANTS TO STATES FOR

19 CHILDREN WITH DISABILITIES

20 ‘‘SEC. 1641. ENTITLEMENT TO GRANTS.

21 ‘‘Each State that meets the requirements of section

22 1642 for fiscal year 1997 or any subsequent fiscal year

23 shall be entitled to receive from the Commissioner for the

24 fiscal year a grant in an amount equal to the allotment
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1 (as defined in section 1646(1)) of the State for the fiscal

2 year.

3 ‘‘SEC. 1642. REQUIREMENTS.

4 ‘‘(a) IN GENERAL.—A State meets the requirements

5 of this section for a grant under section 1641 for a fiscal

6 year if by the date specified by the Commissioner, the

7 State submits to the Commissioner an application for the

8 grant that is in such form, is made in such manner, and

9 contain such agreements, assurances, and information as

10 the Commissioner determines to be necessary to carry out

11 this part, and if the application contains an agreement by

12 the State in accordance with the following:

13 ‘‘(1) The grant will not be expended for any

14 purpose other than providing authorized services (as

15 defined in section 1646(2)) to qualifying children (as

16 defined in section 1646(3)).

17 ‘‘(2)(A) In providing authorized services, the

18 State will make every reasonable effort to obtain

19 payment for the services from other Federal or State

20 programs that provide payment for such services

21 and from private entities that are legally liable to

22 make the payments pursuant to insurance policies,

23 prepaid plans, or other arrangements.

24 ‘‘(B) The State will expend the grant only to

25 the extent that payments from the programs and en-
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1 tities described in subparagraph (A) are not avail2 able for authorized services provided by the State.

3 ‘‘(3) The State will comply with the condition

4 described in subsection (b).

5 ‘‘(4) The State will comply with the condition

6 described in subsection (c).

7 ‘‘(b) MAINTENANCE OF EFFORT.—

8 ‘‘(1) IN GENERAL.—The condition referred to

9 in subsection (a)(3) for a State for a fiscal year is

10 that, with respect to the purposes described in para11 graph (2), the State will maintain expenditures of

12 non-Federal amounts for such purposes at a level

13 that is not less than the following, as applicable:

14 ‘‘(A) For the first fiscal year for which the

15 State receives a grant under section 1641, an

16 amount equal to the difference between—

17 ‘‘(i) the average level of such expendi18 tures maintained by the State for the 2-

19 year period preceding October 1, 1995 (ex20 cept that, if such first fiscal year is other

21 than fiscal year 1997, the amount of such

22 average level shall be increased to the ex23 tent necessary to offset the effect of infla24 tion occurring after October 1, 1995); and
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1 ‘‘(ii) the aggregate of non-Federal ex2 penditures made by the State for such 2-

3 year period pursuant to section 1618 (as

4 such section was in effect for such period).

5 ‘‘(B) For each subsequent fiscal year, the

6 amount applicable under subparagraph (A) in7 creased to the extent necessary to offset the ef8 fect of inflation occurring after the beginning of

9 the fiscal year to which such subparagraph ap10 plies.

11 ‘‘(2) RELEVANT PURPOSES.—The purposes de12 scribed in this paragraph are any purposes designed

13 to meet (or assist in meeting) the unique needs of

14 qualifying children that arise from physical and

15 mental impairments, including such purposes that

16 are authorized to be carried out under title XIX.

17 ‘‘(3) RULE OF CONSTRUCTION.—With respect

18 to compliance with the agreement made by a State

19 pursuant to paragraph (1), the State has discretion

20 to select, from among the purposes described in

21 paragraph (2), the purposes for which the State ex22 pends the non-Federal amounts reserved by the

23 State for such compliance.

24 ‘‘(4) USE OF CONSUMER PRICE INDEX.—Deter25 minations under paragraph (1) of the extent of in-
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1 flation shall be made through use of the consumer

2 price index for all urban consumers, U.S. city aver3 age, published by the Bureau of Labor Statistics.

4 ‘‘(c) ASSESSMENT OF NEED FOR SERVICES.—The

5 condition referred to in subsection (a)(4) for a State for

6 a fiscal year is that each qualifying child will be permitted

7 to apply for authorized services, and will be provided with

8 an opportunity to have an assessment conducted to deter9 mine the need of such child for authorized services.

10 ‘‘SEC. 1643. AUTHORITY OF STATE.

11 ‘‘The following decisions are in the discretion of a

12 State with respect to compliance with an agreement made

13 by the State under section 1642(a)(1):

14 ‘‘(1) Decisions regarding which of the author15 ized services are provided.

16 ‘‘(2) Decisions regarding who among qualifying

17 children in the State receives the services.

18 ‘‘(3) Decisions regarding the number of services

19 provided for the qualifying child involved and the

20 duration of the services.

21 ‘‘SEC. 1644. AUTHORIZED SERVICES.

22 ‘‘(a) AUTHORITY OF COMMISSIONER.—The Commis23 sioner, subject to subsection (b), shall issue regulations

24 designating the purposes for which grants under section

25 1641 are authorized to be expended by the States.
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1 ‘‘(b) REQUIREMENTS REGARDING SERVICES.—The

2 Commissioner shall ensure that the purposes authorized

3 under subsection (a)—

4 ‘‘(1) are designed to meet (or assist in meeting)

5 the unique needs of qualifying children that arise

6 from physical and mental impairments;

7 ‘‘(2) include medical and nonmedical services;

8 and

9 ‘‘(3) do not include the provision of cash bene10 fits.

11 ‘‘SEC. 1645. GENERAL PROVISIONS.

12 ‘‘(a) ISSUANCE OF REGULATIONS.—Regulations

13 under this part shall be issued in accordance with proce14 dures established for the issuance of substantive rules

15 under section 553 of title 5, United States Code. Pay16 ments under grants under section 1641 for fiscal year

17 1997 shall begin not later than January 1, 1997, without

18 regard to whether final rules under this part have been

19 issued and without regard to whether such rules have

20 taken effect.

21 ‘‘(b) PROVISIONS REGARDING OTHER PROGRAMS.—

22 ‘‘(1) INAPPLICABILITY OF VALUE OF SERV23 ICES.—The value of authorized services provided

24 under this part shall not be taken into account in

25 determining eligibility for, or the amount of, benefits
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1 or services under any Federal or federally-assisted

2 program.

3 ‘‘(2) MEDICAID PROGRAM.—For purposes of

4 title XIX, each qualifying child shall be considered

5 to be a recipient of supplemental security income

6 benefits under this title (without regard to whether

7 the child has received authorized services under this

8 part and without regard to whether the State in9 volved is receiving a grant under section 1641). The

10 preceding sentence applies on and after the date of

11 the enactment of this part.

12 ‘‘(c) USE BY STATES OF EXISTING DELIVERY SYS13 TEMS.—With respect to the systems utilized by the States

14 to deliver services to individuals with disabilities (including

15 systems utilized before the date of the enactment of the

16 Personal Responsibility Act of 1995), it is the sense of

17 the Congress that the States should utilize such systems

18 in providing authorized services under this part.

19 ‘‘(d) REQUIRED PARTICIPATION OF STATES.—Sub20 paragraphs (C)(i) and (E)(i)(I) of section 205(c)(2) shall

21 not apply to a State that does not participate in the pro22 gram established in this part for fiscal year 1997 or any

23 succeeding fiscal year.

24 ‘‘SEC. 1646. DEFINITIONS.

25 ‘‘As used in this part:
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1 ‘‘(1) ALLOTMENT.—The term ‘allotment’

2 means, with respect to a State and a fiscal year, the

3 product of—

4 ‘‘(A) an amount equal to the difference be5 tween—

6 ‘‘(i) the number of qualifying children

7 in the State (as determined for the most

8 recent 12-month period for which data are

9 available to the Commissioner); and

10 ‘‘(ii) the number of qualifying children

11 in the State receiving cash benefits under

12 this title by reason of disability (as so de13 termined); and

14 ‘‘(B) an amount equal to 75 percent of the

15 mean average of the respective annual totals of

16 cash benefits paid under this title to each quali17 fying child described in subparagraph (A)(ii)

18 (as so determined).

19 ‘‘(2) AUTHORIZED SERVICE.—The term ‘au20 thorized service’ means each purpose authorized by

21 the Commissioner under section 1644(a).

22 ‘‘(3) QUALIFYING CHILD.—

23 ‘‘(A) IN GENERAL.—The term ‘qualifying

24 child’ means an individual who—
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1 ‘‘(i) has not attained 18 years of age;

2 and

3 ‘‘(ii)(I) is eligible for cash benefits

4 under this title by reason of disability; or

5 ‘‘(II) meets the conditions described

6 in subclauses (I) and (II) of section

7 1614(a)(3)(A)(ii), but (by reason of

8 subclause (III) of such section) is not eligi9 ble for such cash benefits.

10 ‘‘(B) RESPONSIBILITIES OF COMMIS11 SIONER.—The Commissioner shall provide for

12 determinations of whether individuals meet the

13 criteria established in subparagraph (A) for sta14 tus as qualifying children. Such determinations

15 shall be made in accordance with the provisions

16 otherwise applicable under this title with re17 spect to such criteria.’’.

18 (2) RULE REGARDING CERTAIN MILITARY PAR19 ENTS; CASH BENEFITS FOR QUALIFYING CHIL20 DREN.—Section 1614(a)(1)(B)(ii) of the Social Se21 curity Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amend22 ed by striking ‘‘United States, and who, for the

23 month’’ and all that follows and inserting the follow24 ing: ‘‘United States, and—
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1 ‘‘(I) who, for the month before the parent re2 ported for such assignment, received a cash benefit

3 under this title by reason of blindness, or

4 ‘‘(II) for whom, for such month, a determina5 tion was in effect that the child is a qualifying child

6 under section 1646(3).’’.

7 (c) PROVISIONS RELATING TO SSI CASH BENEFITS

8 AND SSI SERVICE BENEFITS.—

9 (1) CONTINUING DISABILITY REVIEWS FOR

10 CERTAIN CHILDREN.—Section 1614(a)(3)(G) of such

11 Act (42 U.S.C. 1382c(a)(3)(G)) is amended—

12 (A) by inserting ‘‘(i)’’ after ‘‘(G)’’; and

13 (B) by adding at the end the following:

14 ‘‘(ii)(I) Not less frequently than once every 3 years,

15 the Commissioner shall redetermine the eligibility for cash

16 benefits under this title and for services under part C—

17 ‘‘(aa) of each individual who has not attained

18 18 years of age and is eligible for such cash benefits

19 by reason of disability; and

20 ‘‘(bb) of each qualifying child (as defined in sec21 tion 1646(3)).

22 ‘‘(II) Subclause (I) shall not apply to an individual

23 if the individual has an impairment (or combination of im24 pairments) which is (or are) not expected to improve.’’.
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1 (2) DISABILITY REVIEW REQUIRED FOR SSI RE2 CIPIENTS WHO ARE 18 YEARS OF AGE.—

3 (A) IN GENERAL.—Section 1614(a)(3)(G)

4 of such Act (42 U.S.C. 1382c(a)(3)(G)), as

5 amended by paragraph (1) of this subsection, is

6 amended by adding at the end the following:

7 ‘‘(iii)(I) The Commissioner shall redetermine the eli8 gibility of a qualified individual for supplemental security

9 income benefits under this title by reason of disability, by

10 applying the criteria used in determining eligibility for

11 such benefits of applicants who have attained 18 years of

12 age.

13 ‘‘(II) The redetermination required by subclause (I)

14 with respect to a qualified individual shall be conducted

15 during the 1-year period that begins on the date the quali16 fied individual attains 18 years of age.

17 ‘‘(III) As used in this clause, the term ‘qualified indi18 vidual’ means an individual who attains 18 years of age

19 and is a recipient of cash benefits under this title by rea20 son of disability or of services under part C.

21 ‘‘(IV) A redetermination under subclause (I) of this

22 clause shall be considered a substitute for a review re23 quired under any other provision of this subparagraph.’’.

24 (B) REPORT TO THE CONGRESS.—Not

25 later than October 1, 1998, the Commissioner
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1 of Social Security shall submit to the Commit2 tee on Ways and Means of the House of Rep3 resentatives and the Committee on Finance of

4 the Senate a report on the activities conducted

5 under section 1614(a)(3)(G)(iii) of the Social

6 Security Act.

7 (C) CONFORMING REPEAL.—Section 207

8 of the Social Security Independence and Pro9 gram Improvements Act of 1994 (42 U.S.C.

10 1382 note; 108 Stat. 1516) is hereby repealed.

11 (3) DISABILITY REVIEW REQUIRED FOR LOW

12 BIRTH WEIGHT BABIES WHO HAVE RECEIVED SSI

13 BENEFITS FOR 12 MONTHS.—Section 1614(a)(3)(G)

14 of such Act (42 U.S.C. 1382c(a)(3)(G)), as amended

15 by paragraphs (1) and (2) of this subsection, is

16 amended by adding at the end the following:

17 ‘‘(iv)(I) The Commissioner shall redetermine the eli18 gibility for—

19 ‘‘(aa) cash benefits under this title by reason of

20 disability of an individual whose low birth weight is

21 a contributing factor material to the Commissioner’s

22 determination that the individual is disabled; and

23 ‘‘(bb) services under part C of an individual

24 who is eligible for such services by reason of low

25 birth weight.
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1 ‘‘(II) The redetermination required by subclause (I)

2 shall be conducted once the individual has received such

3 benefits for 12 months.

4 ‘‘(III) A redetermination under subclause (I) of this

5 clause shall be considered a substitute for a review re6 quired under any other provision of this subparagraph.’’.

7 (4) APPLICABILITY OF MEDICAID RULES RE8 GARDING COUNTING OF CERTAIN ASSETS AND

9 TRUSTS OF CHILDREN.—Section 1613(c) of the So10 cial Security Act (42 U.S.C. 1382b(c)) is amended

11 to read as follows:

12 ‘‘TREATMENT OF CERTAIN ASSETS AND TRUSTS IN

13 ELIGIBILITY DETERMINATIONS FOR CHILDREN

14 ‘‘(c) Subsections (c) and (d) of section 1917 shall

15 apply to determinations of eligibility for benefits under

16 this title in the case of an individual who has not attained

17 18 years of age in the same manner as such subsections

18 apply to determinations of eligibility for medical assistance

19 under a State plan under title XIX, except that—

20 ‘‘(1) the amount described in section

21 1917(c)(1)(E)(i)(II) shall be the amount of cash

22 benefits payable under this title to an eligible indi23 vidual who does not have an eligible spouse and who

24 has no income or resources;

25 ‘‘(2) the look-back date specified in section

26 1917(c)(1)(B) shall be the date that is 36 months
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1 before the date the individual has applied for bene2 fits under this title; and

3 ‘‘(3) any assets in a trust over which the indi4 vidual has control shall be considered assets of the

5 individual.’’.

6 (d) CONFORMING AMENDMENTS.—

7 (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5),

8 and (e)(1)(B) of section 1611 of the Social Security

9 Act (42 U.S.C. 1382 (b)(1), (b)(2), (c)(3), (c)(5),

10 and (e)(1)(B)) are each amended by inserting

11 ‘‘cash’’ before ‘‘benefit under this title’’.

12 (2) Section 1611(c)(1) of such Act (42 U.S.C.

13 1382(c)(1)) is amended—

14 (A) by striking ‘‘a benefit’’ and inserting

15 ‘‘benefits’’;

16 (B) by striking ‘‘such benefit’’ and insert17 ing ‘‘the cash benefit under this title’’; and

18 (C) by striking ‘‘and the amount of such

19 benefits’’ and inserting ‘‘benefits under this

20 title and the amount of any cash benefit under

21 this title’’.

22 (3) Section 1611(c)(2) of such Act (42 U.S.C.

23 1382(c)(2)) is amended—

24 (A) by striking ‘‘such benefit’’ and insert25 ing ‘‘the cash benefit’’;
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1 (B) by inserting ‘‘cash’’ before ‘‘benefits’’

2 each place such term appears; and

3 (C) in subpargraph (B), by inserting

4 ‘‘cash’’ before ‘‘benefit’’.

5 (4) Section 1611(c)(3) of such Act (42 U.S.C.

6 1382(c)(3)) is amended by inserting ‘‘cash’’ before

7 ‘‘benefits under this title’’.

8 (5) Section 1611(e)(1)(G) of such Act (42

9 U.S.C. 1382(e)(1)(G)) is amended by inserting

10 ‘‘cash’’ before ‘‘benefit of’’.

11 (6) Section 1614(a)(4) of such Act (42 U.S.C.

12 1382c(a)(4)) is amended by inserting ‘‘or impair13 ment’’ after ‘‘disability’’ each place such term ap14 pears.

15 (7) Section 1614(f)(1) of such Act (42 U.S.C.

16 1382c(f)(1)) is amended by striking ‘‘and the

17 amount of benefits’’ and inserting ‘‘benefits under

18 this title and the amount of any cash benefit under

19 this title’’.

20 (8) Section 1614(f)(2)(A) of such Act (42

21 U.S.C. 1382c(f)(2)(A)) is amended by striking ‘‘and

22 the amount of benefits’’ and inserting ‘‘benefits

23 under this title and the amount of any cash benefit’’.

24 (9) Section 1614(f)(3) of such Act (42 U.S.C.

25 1382c(f)(3)) is amended by striking ‘‘and the
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1 amount of benefits’’ and inserting ‘‘benefits under

2 this title and the amount of any cash benefit under

3 this title’’.

4 (10) Section 1616(e)(1) of such Act (42 U.S.C.

5 1382e(e)(1)) is amended by inserting ‘‘cash’’ before

6 ‘‘supplemental’’.

7 (11) Section 1621(a) of such Act (42 U.S.C.

8 1382j(a)) is amended by striking ‘‘and the amount

9 of benefits’’ and inserting ‘‘benefits under this title

10 and the amount of any cash benefit under this title’’.

11 (12) Section 1631(a)(4) of such Act (42 U.S.C.

12 1383(a)(4)) is amended by inserting ‘‘cash’’ before

13 ‘‘benefits’’ the 1st place such term appears in each

14 of subparagraphs (A) and (B).

15 (13) Section 1631(a)(7)(A) of such Act (42

16 U.S.C. 1383(a)(7)(A)) is amended by inserting

17 ‘‘cash’’ before ‘‘benefits based’’.

18 (14) Section 1631(a)(8)(A) of such Act (42

19 U.S.C. 1383(a)(8)(A)) is amended by striking ‘‘ben20 efits based on disability or blindness under this

21 title’’ and inserting ‘‘benefits under this title (other

22 than by reason of age)’’.

23 (15) Section 1631(c) of such Act (42 U.S.C.

24 1383(c)) is amended—
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1 (A) by striking ‘‘payment’’ each place such

2 term appears and inserting ‘‘benefits’’; and

3 (B) by striking ‘‘payments’’ each place

4 such term appears and inserting ‘‘benefits’’.

5 (17) Section 1631(e) of such Act (42 U.S.C.

6 1383(e)) is amended—

7 (A) in paragraph (1)(B), by striking

8 ‘‘amounts of such benefits’’ and inserting

9 ‘‘amounts of cash benefits under this title’’;

10 (B) in paragraph (2), by inserting ‘‘cash’’

11 before ‘‘benefits’’ each place such term appears;

12 (C) by redesignating the 2nd paragraph

13 (6) and paragraph (7) as paragraphs (7) and

14 (8), respectively; and

15 (D) in paragraph (7) (as so redesignated),

16 by inserting ‘‘cash’’ before ‘‘benefits’’ each place

17 such term appears.

18 (18) Section 1631(g)(2) of such Act (42 U.S.C.

19 1383(g)(2)) is amended by striking ‘‘supplemental

20 security income’’ and inserting ‘‘cash’’.

21 (19) Section 1635(a) of such Act (42 U.S.C.

22 1383d(a)) is amended by striking ‘‘by reason of dis23 ability or blindness’’.

24 (e) TEMPORARY ELIGIBILITY FOR CASH BENEFITS

25 FOR POOR DISABLED CHILDREN RESIDING IN STATES
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1 APPLYING ALTERNATIVE INCOME ELIGIBILITY STAND2 ARDS UNDER MEDICAID.—

3 (1) IN GENERAL.—For the period beginning

4 upon the 1st day of the 1st month that begins 90

5 or more days after the date of the enactment of this

6 Act and ending upon the close of fiscal year 1996,

7 an individual described in paragraph (2) shall be

8 considered to be eligible for cash benefits under title

9 XVI of the Social Security Act, notwithstanding that

10 the individual does not meet any of the conditions

11 described in section 1614(a)(3)(A)(ii)(III) of such

12 Act.

13 (2) REQUIREMENTS.—For purposes of para14 graph (1), an individual described in this paragraph

15 is an individual who—

16 (A) has not attained 18 years of age;

17 (B) meets the conditions described in

18 subclauses (I) and (II) of section

19 1614(a)(3)(A)(ii) of the Social Security Act;

20 (C) resides in a State that, pursuant to

21 section 1902(f) of such Act, restricts eligibility

22 for medical assistance under title XIX of such

23 Act with respect to aged, blind, and disabled in24 dividuals; and
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1 (D) is not eligible for medical assistance

2 under the State plan under such title XIX.

3 (f) REDUCTION IN CASH BENEFITS PAYABLE TO IN4 STITUTIONALIZED CHILDREN WHOSE MEDICAL COSTS

5 ARE COVERED BY PRIVATE INSURANCE.—Section

6 1611(e)(1)(B) of the Social Security Act (42 U.S.C.

7 1382(e)(1)(B)) is amended by inserting ‘‘or under any

8 health insurance policy issued by a private provider of

9 such insurance’’ after ‘‘title XIX’’.

10 (g) APPLICABILITY.—

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendments made by subsections

13 (a)(1), (c), (d) and (f) and section 1645(b)(2) of the

14 Social Security Act (as added by the amendment

15 made by subsection (b) of this section), shall apply

16 to benefits for months beginning 90 or more days

17 after the date of the enactment of this Act, without

18 regard to whether regulations have been issued to

19 implement such amendments.

20 (2) DELAYED APPLICABILITY TO CURRENT SSI

21 RECIPIENTS OF ELIGIBILITY RESTRICTIONS.—The

22 amendments made by subsection (a)(1) shall not

23 apply, during the first 6 months that begin after the

24 month in which this Act becomes law, to an individ25 ual who is a recipient of cash supplemental security
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1 income benefits under title XVI of the Social Secu2 rity Act for the month in which this Act becomes

3 law.

4 (h) REGULATIONS.—Within 3 months after the date

5 of the enactment of this Act—

6 (1) the Commissioner of Social Security shall

7 prescribe such regulations as may be necessary to

8 implement the amendments made by subsections

9 (a)(1), (c), (d), and (f) and to implement subsection

10 (e); and

11 (2) the Secretary of Health and Human Serv12 ices shall prescribe such regulations as may be nec13 essary to implement section 1645(b)(2) of the Social

14 Security Act, as added by the amendment made by

15 subsection (b) of this section.

16 SEC. 603. EXAMINATION OF MENTAL LISTINGS USED TO DE17 TERMINE ELIGIBILITY OF CHILDREN FOR SSI

18 BENEFITS BY REASON OF DISABILITY.

19 Section 202(e)(2) of the Social Security Independ20 ence and Program Improvements Act of 1994 (42 U.S.C.

21 1382 note) is amended—

22 (1) by striking ‘‘and’’ at the end of subpara23 graph (F); and
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1 (2) by redesignating subparagraph (G) as sub2 paragraph (H) and inserting after subparagraph (F)

3 the following:

4 ‘‘(G) whether the criteria in the mental dis5 orders listings in the Listings of Impairments set

6 forth in appendix 1 of subpart P of part 404 of title

7 20, Code of Federal Regulations, are appropriate to

8 ensure that eligibility of individuals who have not at9 tained 18 years of age for cash benefits under the

10 supplemental security income program by reason of

11 disability is limited to those who have serious dis12 abilities and for whom such benefits are necessary to

13 improve their condition or quality of life; and’’.

14 SEC. 604. LIMITATION ON PAYMENTS TO PUERTO RICO,

15 THE VIRGIN ISLANDS, AND GUAM UNDER

16 PROGRAMS OF AID TO THE AGED, BLIND, OR

17 DISABLED.

18 Section 1108 of the Social Security Act (42 U.S.C.

19 1308), as amended by section 104(e)(1) of this Act, is

20 amended by inserting before ‘‘The total’’ the following:

21 ‘‘(a) PROGRAMS OF AID TO THE AGED, BLIND, OR

22 DISABLED.—The total amount certified by the Secretary

23 of Health and Human Services under titles I, X, XIV, and

24 XVI (as in effect without regard to the amendment made
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1 by section 301 of the Social Security Amendments of

2 1972)—

3 ‘‘(1) for payment to Puerto Rico shall not ex4 ceed $18,053,940;

5 ‘‘(2) for payment to the Virgin Islands shall not

6 exceed $473,659; and

7 ‘‘(3) for payment to Guam shall not exceed

8 $900,718.

9 ‘‘(b) MEDICAID PROGRAMS.—’’.

10 SEC. 605. REPEAL OF MAINTENANCE OF EFFORT REQUIRE11 MENTS APPLICABLE TO OPTIONAL STATE

12 PROGRAMS FOR SUPPLEMENTATION OF SSI

13 BENEFITS.

14 Section 1618 of the Social Security Act (42 U.S.C.

15 1382g) is hereby repealed.

16 TITLE VII—CHILD SUPPORT

17 SEC. 700. REFERENCES.

18 Except as otherwise specifically provided, wherever in

19 this title an amendment is expressed in terms of an

20 amendment to or repeal of a section or other provision,

21 the reference shall be considered to be made to that sec22 tion or other provision of the Social Security Act.
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1 Subtitle A—Eligibility for Services;

2 Distribution of Payments

3 SEC. 701. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

4 ENFORCEMENT SERVICES.

5 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

6 U.S.C. 654) is amended—

7 (1) by striking paragraph (4) and inserting the

8 following:

9 ‘‘(4) provide that the State will—

10 ‘‘(A) provide services relating to the estab11 lishment of paternity or the establishment,

12 modification, or enforcement of child support

13 obligations, as appropriate, under the plan with

14 respect to—

15 ‘‘(i) each child for whom cash assist16 ance is provided under the State program

17 funded under part A of this title, benefits

18 or services are provided under the State

19 program funded under part B of this title,

20 or medical assistance is provided under the

21 State plan approved under title XIX, un22 less the State agency administering the

23 plan determines (in accordance with para24 graph (28)) that it is against the best in25 terests of the child to do so; and
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1 ‘‘(ii) any other child, if an individual

2 applies for such services with respect to

3 the child; and

4 ‘‘(B) enforce any support obligation estab5 lished with respect to—

6 ‘‘(i) a child with respect to whom the

7 State provides services under the plan; or

8 ‘‘(ii) the custodial parent of such a

9 child.’’; and

10 (2) in paragraph (6)—

11 (A) by striking ‘‘provide that’’ and insert12 ing ‘‘provide that—’’;

13 (B) by striking subparagraph (A) and in14 serting the following:

15 ‘‘(A) services under the plan shall be made

16 available to nonresidents on the same terms as

17 to residents;’’;

18 (C) in subparagraph (B), by inserting ‘‘on

19 individuals not receiving assistance under any

20 State program funded under part A’’ after

21 ‘‘such services shall be imposed’’;

22 (D) in each of subparagraphs (B), (C),

23 (D), and (E)—

24 (i) by indenting the subparagraph in

25 the same manner as, and aligning the left
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1 margin of the subparagraph with the left

2 margin of, the matter inserted by subpara3 graph (B) of this paragraph; and

4 (ii) by striking the final comma and

5 inserting a semicolon; and

6 (E) in subparagraph (E), by indenting

7 each of clauses (i) and (ii) 2 additional ems.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Section 452(b) (42 U.S.C. 652(b)) is

10 amended by striking ‘‘454(6)’’ and inserting

11 ‘‘454(4)’’.

12 (2) Section 452(g)(2)(A) (42 U.S.C.

13 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

14 place it appears and inserting ‘‘454(4)(A)(ii)’’.

15 (3) Section 466(a)(3)(B) (42 U.S.C.

16 666(a)(3)(B)) is amended by striking ‘‘in the case of

17 overdue support which a State has agreed to collect

18 under section 454(6)’’ and inserting ‘‘in any other

19 case’’.

20 (4) Section 466(e) (42 U.S.C. 666(e)) is

21 amended by striking ‘‘paragraph (4) or (6) of sec22 tion 454’’ and inserting ‘‘section 454(4)’’.
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1 SEC. 702. DISTRIBUTION OF CHILD SUPPORT COLLEC2 TIONS.

3 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

4 amended to read as follows:

5 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

6 ‘‘(a) IN GENERAL.—An amount collected on behalf

7 of a family as support by a State pursuant to a plan ap8 proved under this part shall be distributed as follows:

9 ‘‘(1) FAMILIES RECEIVING CASH ASSISTANCE.—

10 In the case of a family receiving cash assistance

11 from the State, the State shall—

12 ‘‘(A) retain, or distribute to the family, the

13 State share of the amount so collected; and

14 ‘‘(B) pay to the Federal Government the

15 Federal share of the amount so collected.

16 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED

17 CASH ASSISTANCE.—In the case of a family that for18 merly received cash assistance from the State:

19 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

20 the extent that the amount so collected does not

21 exceed the amount required to be paid to the

22 family for the month in which collected, the

23 State shall distribute the amount so collected to

24 the family.

25 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

26 extent that the amount so collected exceeds the
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1 amount required to be paid to the family for

2 the month in which collected, the State shall

3 distribute the amount so collected as follows:

4 ‘‘(i) DISTRIBUTION TO THE FAMILY

5 TO SATISFY ARREARAGES THAT ACCRUED

6 BEFORE OR AFTER THE FAMILY RECEIVED

7 CASH ASSISTANCE.—The State shall dis8 tribute the amount so collected to the fam9 ily to the extent necessary to satisfy any

10 support arrears with respect to the family

11 that accrued before or after the family re12 ceived cash assistance from the State.

13 ‘‘(ii) REIMBURSEMENT OF GOVERN14 MENTS FOR ASSISTANCE PROVIDED TO

15 THE FAMILY.—To the extent that clause

16 (i) does not apply to the amount, the State

17 shall retain the State share of the amount

18 so collected, and pay to the Federal Gov19 ernment the Federal share of the amount

20 so collected, to the extent necessary to re21 imburse amounts paid to the family as

22 cash assistance from the State.

23 ‘‘(iii) DISTRIBUTION OF THE REMAIN24 DER TO THE FAMILY.—To the extent that

25 neither clause (i) nor clause (ii) applies to
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1 the amount so collected, the State shall

2 distribute the amount to the family.

3 ‘‘(3) FAMILIES THAT NEVER RECEIVED CASH

4 ASSISTANCE.—In the case of any other family, the

5 State shall distribute the amount so collected to the

6 family.

7 ‘‘(b) DEFINITIONS.—As used in subsection (a):

8 ‘‘(1) CASH ASSISTANCE.—The term ‘cash as9 sistance from the State’ means—

10 ‘‘(A) cash assistance under the State pro11 gram funded under part A or under the State

12 plan approved under part A of this title (as in

13 effect before October 1, 1996); or

14 ‘‘(B) cash benefits under the State pro15 gram funded under part B or under the State

16 plan approved under part B or E of this title

17 (as in effect before October 1, 1996).

18 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

19 share’ means, with respect to an amount collected by

20 the State to satisfy a support obligation owed to a

21 family for a time period—

22 ‘‘(A) the greatest Federal medical assist23 ance percentage in effect for the State for fiscal

24 year 1995 or any succeeding fiscal year; or
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1 ‘‘(B) if support is not owed to the family

2 for any month for which the family received aid

3 to families with dependent children under the

4 State plan approved under part A of this title

5 (as in effect before October 1, 1996), the Fed6 eral reimbursement percentage for the fiscal

7 year in which the time period occurs.

8 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT9 AGE.—The term ‘Federal medical assistance per10 centage’ means—

11 ‘‘(A) the Federal medical assistance per12 centage (as defined in section 1118), in the case

13 of Puerto Rico, the Virgin Islands, Guam, and

14 American Samoa; or

15 ‘‘(B) the Federal medical assistance per16 centage (as defined in section 1905(b)) in the

17 case of any other State.

18 ‘‘(4) FEDERAL REIMBURSEMENT PERCENT19 AGE.—The term ‘Federal assistance percentage’

20 means, with respect to a fiscal year—

21 ‘‘(A) the total amount paid to the State

22 under section 403 for the fiscal year; divided by

23 ‘‘(B) the total amount expended by the

24 State to carry out the State program under

25 part A during the fiscal year.
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1 ‘‘(5) STATE SHARE.—The term ‘State share’

2 means 100 percent minus the Federal share.

3 ‘‘(c) CONTINUATION OF SERVICES FOR FAMILIES

4 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

5 PROGRAM FUNDED UNDER PART A.—When a family with

6 respect to which services are provided under a State plan

7 approved under this part ceases to receive assistance

8 under the State program funded under part A, the State

9 shall provide appropriate notice to the family and continue

10 to provide such services, subject to the same conditions

11 and on the same basis as in the case of individuals to

12 whom services are furnished under section 454, except

13 that an application or other request to continue services

14 shall not be required of such a family and section

15 454(6)(B) shall not apply to the family.’’.

16 (b) EFFECTIVE DATE.—

17 (1) GENERAL RULE.—Except as provided in

18 paragraph (2), the amendment made by subsection

19 (a) shall become effective on October 1, 1999.

20 (2) EARLIER EFFECTIVE DATE FOR RULES RE21 LATING TO DISTRIBUTION OF SUPPORT COLLECTED

22 FOR FAMILIES RECEIVING TEMPORARY FAMILY AS23 SISTANCE.—Section 457(a)(1) of the Social Security

24 Act, as added by the amendment made by subsection

25 (a), shall become effective on October 1, 1995.
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1 SEC. 703. PRIVACY SAFEGUARDS.

2 (a) STATE PLAN REQUIREMENT.—Section 454 (42

3 U.S.C. 654) is amended—

4 (1) by striking ‘‘and’’ at the end of paragraph

5 (23);

6 (2) by striking the period at the end of para7 graph (24) and inserting ‘‘; and’’; and

8 (3) by adding after paragraph (24) the follow9 ing:

10 ‘‘(25) will have in effect safeguards, applicable

11 to all confidential information handled by the State

12 agency, that are designed to protect the privacy

13 rights of the parties, including—

14 ‘‘(A) safeguards against unauthorized use

15 or disclosure of information relating to proceed16 ings or actions to establish paternity, or to es17 tablish or enforce support;

18 ‘‘(B) prohibitions against the release of in19 formation on the whereabouts of one party to

20 another party against whom a protective order

21 with respect to the former party has been en22 tered; and

23 ‘‘(C) prohibitions against the release of in24 formation on the whereabouts of one party to

25 another party if the State has reason to believe

26 that the release of the information may result
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1 in physical or emotional harm to the former

2 party.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall become effective on October 1, 1997.

5 Subtitle B—Locate and Case

6 Tracking

7 SEC. 711. STATE CASE REGISTRY.

8 Section 454A, as added by section 745(a)(2) of this

9 Act, is amended by adding at the end the following:

10 ‘‘(e) STATE CASE REGISTRY.—

11 ‘‘(1) CONTENTS.—The automated system re12 quired by this section shall include a registry (which

13 shall be known as the ‘State case registry’) that con14 tains records with respect to—

15 ‘‘(A) each case in which services are being

16 provided by the State agency under the State

17 plan approved under this part; and

18 ‘‘(B) each support order established or

19 modified in the State on or after October 1,

20 1998.

21 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

22 State case registry may be established by linking

23 local case registries of support orders through an

24 automated information network, subject to this sec25 tion.
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1 ‘‘(3) USE OF STANDARDIZED DATA ELE2 MENTS.—Such records shall use standardized data

3 elements for both parents (such as names, social se4 curity numbers and other uniform identification

5 numbers, dates of birth, and case identification

6 numbers), and contain such other information (such

7 as on case status) as the Secretary may require.

8 ‘‘(4) PAYMENT RECORDS.—Each case record in

9 the State case registry with respect to which services

10 are being provided under the State plan approved

11 under this part and with respect to which a support

12 order has been established shall include a record

13 of—

14 ‘‘(A) the amount of monthly (or other peri15 odic) support owed under the order, and other

16 amounts (including arrears, interest or late

17 payment penalties, and fees) due or overdue

18 under the order;

19 ‘‘(B) any amount described in subpara20 graph (A) that has been collected;

21 ‘‘(C) the distribution of such collected

22 amounts;

23 ‘‘(D) the birth date of any child for whom

24 the order requires the provision of support; and
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1 ‘‘(E) the amount of any lien imposed pur2 suant to section 466(a)(4).

3 ‘‘(5) UPDATING AND MONITORING.—The State

4 agency operating the automated system required by

5 this section shall promptly establish and maintain,

6 and regularly monitor, case records in the State case

7 registry with respect to which services are being pro8 vided under the State plan approved under this part,

9 on the basis of—

10 ‘‘(A) information on administrative actions

11 and administrative and judicial proceedings and

12 orders relating to paternity and support;

13 ‘‘(B) information obtained from compari14 son with Federal, State, or local sources of in15 formation;

16 ‘‘(C) information on support collections

17 and distributions; and

18 ‘‘(D) any other relevant information.

19 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS20 CLOSURES OF INFORMATION.—The State shall use the

21 automated system required by this section to extract infor22 mation from (at such times, and in such standardized for23 mat or formats, as may be required by the Secretary), to

24 share and compare information with, and to receive infor25 mation from, other data bases and information compari-
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1 son services, in order to obtain (or provide) information

2 necessary to enable the State agency (or the Secretary or

3 other State or Federal agencies) to carry out this part,

4 subject to section 6103 of the Internal Revenue Code of

5 1986. Such information comparison activities shall include

6 the following:

7 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP8 PORT ORDERS.—Furnishing to the Federal Case

9 Registry of Child Support Orders established under

10 section 453(h) (and update as necessary, with infor11 mation including notice of expiration of orders) the

12 minimum amount of information on child support

13 cases recorded in the State case registry that is nec14 essary to operate the registry (as specified by the

15 Secretary in regulations).

16 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

17 Exchanging information with the Federal Parent

18 Locator Service for the purposes specified in section

19 453.

20 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

21 MEDICAID AGENCIES.—Exchanging information with

22 State agencies (of the State and of other States) ad23 ministering programs funded under part A, pro24 grams operated under State plans under title XIX,

25 and other programs designated by the Secretary, as
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1 necessary to perform State agency responsibilities

2 under this part and under such programs.

3 ‘‘(4) INTRA- AND INTERSTATE INFORMATION

4 COMPARISONS.—Exchanging information with other

5 agencies of the State, agencies of other States, and

6 interstate information networks, as necessary and

7 appropriate to carry out (or assist other States to

8 carry out) the purposes of this part.’’.

9 SEC. 712. COLLECTION AND DISBURSEMENT OF SUPPORT

10 PAYMENTS.

11 (a) STATE PLAN REQUIREMENT.—Section 454 (42

12 U.S.C. 654), as amended by section 703(a) of this Act,

13 is amended—

14 (1) by striking ‘‘and’’ at the end of paragraph

15 (24);

16 (2) by striking the period at the end of para17 graph (25) and inserting ‘‘; and’’; and

18 (3) by adding after paragraph (25) the follow19 ing:

20 ‘‘(26) provide that, on and after October 1,

21 1998, the State agency will—

22 ‘‘(A) operate a State disbursement unit in

23 accordance with section 454B; and

24 ‘‘(B) have sufficient State staff (consisting

25 of State employees) and (at State option) con-
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1 tractors reporting directly to the State agency

2 to—

3 ‘‘(i) monitor and enforce support col4 lections through the unit (including carry5 ing out the automated data processing re6 sponsibilities described in section 454A(g));

7 and

8 ‘‘(ii) take the actions described in sec9 tion 466(c)(1) in appropriate cases.’’.

10 (b) ESTABLISHMENT OF STATE DISBURSEMENT

11 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

12 amended by section 745(a)(2) of this Act, is amended by

13 inserting after section 454A the following:

14 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP15 PORT PAYMENTS.

16 ‘‘(a) STATE DISBURSEMENT UNIT.—

17 ‘‘(1) IN GENERAL.—In order for a State to

18 meet the requirements of this section, the State

19 agency must establish and operate a unit (which

20 shall be known as the ‘State disbursement unit’) for

21 the collection and disbursement of payments under

22 support orders in all cases being enforced by the

23 State pursuant to section 454(4).

24 ‘‘(2) OPERATION.—The State disbursement

25 unit shall be operated—
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1 ‘‘(A) directly by the State agency (or 2 or

2 more State agencies under a regional coopera3 tive agreement), or (to the extent appropriate)

4 by a contractor responsible directly to the State

5 agency; and

6 ‘‘(B) in coordination with the automated

7 system established by the State pursuant to

8 section 454A.

9 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

10 UNITS.—The State disbursement unit may be estab11 lished by linking local disbursement units through

12 an automated information network, subject to this

13 section.

14 ‘‘(b) REQUIRED PROCEDURES.—The State disburse15 ment unit shall use automated procedures, electronic proc16 esses, and computer-driven technology to the maximum

17 extent feasible, efficient, and economical, for the collection

18 and disbursement of support payments, including proce19 dures—

20 ‘‘(1) for receipt of payments from parents, em21 ployers, and other States, and for disbursements to

22 custodial parents and other obligees, the State agen23 cy, and the agencies of other States;

24 ‘‘(2) for accurate identification of payments;
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1 ‘‘(3) to ensure prompt disbursement of the cus2 todial parent’s share of any payment; and

3 ‘‘(4) to furnish to any parent, upon request,

4 timely information on the current status of support

5 payments under an order requiring payments to be

6 made by or to the parent.

7 ‘‘(c) TIMING OF DISBURSEMENTS.—The State dis8 bursement unit shall distribute all amounts payable under

9 section 457(a) within 2 business days after receipt from

10 the employer or other source of periodic income, if suffi11 cient information identifying the payee is provided.

12 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec13 tion, the term ‘business day’ means a day on which State

14 offices are open for regular business.’’.

15 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

16 added by section 745(a)(2) of this Act and as amended

17 by section 711 of this Act, is amended by adding at the

18 end the following:

19 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

20 PAYMENTS.—

21 ‘‘(1) IN GENERAL.—The State shall use the

22 automated system required by this section, to the

23 maximum extent feasible, to assist and facilitate the

24 collection and disbursement of support payments

25 through the State disbursement unit operated under
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1 section 454B, through the performance of functions,

2 including, at a minimum—

3 ‘‘(A) transmission of orders and notices to

4 employers (and other debtors) for the withhold5 ing of wages (and other income)—

6 ‘‘(i) within 2 business days after re7 ceipt (from a court, another State, an em8 ployer, the Federal Parent Locator Service,

9 or another source recognized by the State)

10 of notice of, and the income source subject

11 to, such withholding; and

12 ‘‘(ii) using uniform formats prescribed

13 by the Secretary;

14 ‘‘(B) ongoing monitoring to promptly iden15 tify failures to make timely payment of support;

16 and

17 ‘‘(C) automatic use of enforcement proce18 dures (including procedures authorized pursu19 ant to section 466(c)) where payments are not

20 timely made.

21 ‘‘(2) BUSINESS DAY DEFINED.—As used in

22 paragraph (1), the term ‘business day’ means a day

23 on which State offices are open for regular busi24 ness.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall become effective on October 1, 1998.

3 SEC. 713. STATE DIRECTORY OF NEW HIRES.

4 (a) STATE PLAN REQUIREMENT.—Section 454 (42

5 U.S.C. 654), as amended by sections 703(a) and 712(a)

6 of this Act, is amended—

7 (1) by striking ‘‘and’’ at the end of paragraph

8 (25);

9 (2) by striking the period at the end of para10 graph (26) and inserting ‘‘; and’’; and

11 (3) by adding after paragraph (26) the follow12 ing:

13 ‘‘(27) provide that, on and after October 1,

14 1997, the State will operate a State Directory of

15 New Hires in accordance with section 453A.’’.

16 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

17 title IV (42 U.S.C. 651–669) is amended by inserting

18 after section 453 the following:

19 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

20 ‘‘(a) ESTABLISHMENT.—

21 ‘‘(1) IN GENERAL.—Not later than October 1,

22 1997, each State shall establish an automated direc23 tory (to be known as the ‘State Directory of New

24 Hires’) which shall contain information supplied in
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1 accordance with subsection (b) by employers and

2 labor organizations on each newly hired employee.

3 ‘‘(2) DEFINITIONS.—As used in this section:

4 ‘‘(A) EMPLOYEE.—The term ‘employee’—

5 ‘‘(i) means an individual who is an

6 employee within the meaning of chapter 24

7 of the Internal Revenue Code of 1986; and

8 ‘‘(ii) does not include an employee of

9 a Federal or State agency performing in10 telligence or counterintelligence functions,

11 if the head of such agency has determined

12 that reporting pursuant to paragraph (1)

13 with respect to the employee could endan14 ger the safety of the employee or com15 promise an ongoing investigation or intel16 ligence mission.

17 ‘‘(B) GOVERNMENTAL EMPLOYERS.—The

18 term ‘employer’ includes any governmental en19 tity.

20 ‘‘(C) LABOR ORGANIZATION.—The term

21 ‘labor organization’ shall have the meaning

22 given such term in section 2(5) of the National

23 Labor Relations Act, and includes any entity

24 (also known as a ‘hiring hall’) which is used by

25 the organization and an employer to carry out
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1 requirements described in section 8(f)(3) of

2 such Act of an agreement between the organiza3 tion and the employer.

4 ‘‘(b) EMPLOYER INFORMATION.—

5 ‘‘(1) REPORTING REQUIREMENT.—

6 ‘‘(A) IN GENERAL.—Except as provided in

7 subparagraph (B), each employer shall furnish

8 to the Directory of New Hires of the State in

9 which a newly hired employee works a report

10 that contains the name, address, and social se11 curity number of the employee, and the name

12 of, and identifying number assigned under sec13 tion 6109 of the Internal Revenue Code of 1986

14 to, the employer.

15 ‘‘(B) MULTISTATE EMPLOYERS.—An em16 ployer who has employees who are employed in

17 2 or more States may comply with subpara18 graph (A) by transmitting the report described

19 in subparagraph (A) magnetically or electroni20 cally to the State in which the greatest number

21 of employees of the employer are employed.

22 ‘‘(2) TIMING OF REPORT.—The report required

23 by paragraph (1) with respect to an employee shall

24 be made not later than the later of—
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1 ‘‘(A) 15 days after the date the employer

2 hires the employee; or

3 ‘‘(B) the date the employee first receives

4 wages or other compensation from the em5 ployer.

6 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re7 port required by subsection (b) shall be made on a W–

8 4 form or the equivalent, and may be transmitted by first

9 class mail, magnetically, or electronically.

10 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

11 EMPLOYERS.—

12 ‘‘(1) IN GENERAL.—An employer that fails to

13 comply with subsection (b) with respect to an em14 ployee shall be subject to a civil money penalty of—

15 ‘‘(A) $25; or

16 ‘‘(B) $500 if, under State law, the failure

17 is the result of a conspiracy between the em18 ployer and the employee to not supply the re19 quired report or to supply a false or incomplete

20 report.

21 ‘‘(2) APPLICABILITY OF SECTION 1128.—Section

22 1128 (other than subsections (a) and (b) of such

23 section) shall apply to a civil money penalty under

24 paragraph (1) of this subsection in the same manner
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1 as such section applies to a civil money penalty or

2 proceeding under section 1128A(a).

3 ‘‘(e) INFORMATION COMPARISONS.—

4 ‘‘(1) IN GENERAL.—Not later than October 1,

5 1997, an agency designated by the State shall, di6 rectly or by contract, conduct automated compari7 sons of the social security numbers reported by em8 ployers pursuant to subsection (b) and the social se9 curity numbers appearing in the records of the State

10 case registry for cases being enforced under the

11 State plan.

12 ‘‘(2) NOTICE OF MATCH.—When an information

13 comparison conducted under paragraph (1) reveals a

14 match with respect to the social security number of

15 an individual required to provide support under a

16 support order, the State Directory of New Hires

17 shall provide the agency administering the State

18 plan approved under this part of the appropriate

19 State with the name, address, and social security

20 number of the employee to whom the social security

21 number is assigned, and the name of, and identify22 ing number assigned under section 6109 of the In23 ternal Revenue Code of 1986 to, the employer.

24 ‘‘(f) TRANSMISSION OF INFORMATION.—
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1 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

2 NOTICES TO EMPLOYERS.—Within 2 business days

3 after the date information regarding a newly hired

4 employee is entered into the State Directory of New

5 Hires, the State agency enforcing the employee’s

6 child support obligation shall transmit a notice to

7 the employer of the employee directing the employer

8 to withhold from the wages of the employee an

9 amount equal to the monthly (or other periodic)

10 child support obligation of the employee, unless the

11 employee’s wages are not subject to withholding pur12 suant to section 466(b)(3).

13 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC14 TORY OF NEW HIRES.—

15 ‘‘(A) NEW HIRE INFORMATION.—Within 4

16 business days after the State Directory of New

17 Hires receives information from employers pur18 suant to this section, the State Directory of

19 New Hires shall furnish the information to the

20 National Directory of New Hires.

21 ‘‘(B) WAGE AND UNEMPLOYMENT COM22 PENSATION INFORMATION.—The State Direc23 tory of New Hires shall, on a quarterly basis,

24 furnish to the National Directory of New Hires

25 extracts of the reports required under section
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1 303(a)(6) to be made to the Secretary of Labor

2 concerning the wages and unemployment com3 pensation paid to individuals, by such dates, in

4 such format, and containing such information

5 as the Secretary of Health and Human Services

6 shall specify in regulations.

7 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

8 subsection, the term ‘business day’ means a day on

9 which State offices are open for regular business.

10 ‘‘(g) OTHER USES OF NEW HIRE INFORMATION.—

11 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI12 GORS.—The agency administering the State plan ap13 proved under this part shall use information received

14 pursuant to subsection (e)(2) to locate individuals

15 for purposes of establishing paternity and establish16 ing, modifying, and enforcing child support obliga17 tions.

18 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER19 TAIN PROGRAMS.—A State agency responsible for

20 administering a program specified in section 1137(b)

21 shall have access to information reported by employ22 ers pursuant to subsection (b) of this section for

23 purposes of verifying eligibility for the program.

24 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU25 RITY AND WORKERS COMPENSATION.—State agen-
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1 cies operating employment security and workers’

2 compensation programs shall have access to informa3 tion reported by employers pursuant to subsection

4 (b) for the purposes of administering such pro5 grams.’’.

6 SEC. 714. AMENDMENTS CONCERNING INCOME WITHHOLD7 ING.

8 (a) MANDATORY INCOME WITHHOLDING.—

9 (1) IN GENERAL.—Section 466(a)(1) (42

10 U.S.C. 666(a)(1)) is amended to read as follows:

11 ‘‘(1) INCOME WITHHOLDING.—

12 ‘‘(A) UNDER ORDERS ENFORCED UNDER

13 THE STATE PLAN.—Procedures described in

14 subsection (b) for the withholding from income

15 of amounts payable as support in cases subject

16 to enforcement under the State plan.

17 ‘‘(B) UNDER CERTAIN ORDERS PREDATING

18 CHANGE IN REQUIREMENT.—Procedures under

19 which the wages of a person with a support ob20 ligation imposed by a support order issued (or

21 modified) in the State before October 1, 1996,

22 if not otherwise subject to withholding under

23 subsection (b), shall become subject to with24 holding as provided in subsection (b) if arrear-
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1 ages occur, without the need for a judicial or

2 administrative hearing.’’.

3 (2) CONFORMING AMENDMENTS.—

4 (A) Section 466(a)(8)(B)(iii) (42 U.S.C.

5 666(a)(8)(B)(iii)) is amended—

6 (i) by striking ‘‘(5)’’; and

7 (ii) by inserting ‘‘, and, at the option

8 of the State, the requirements of sub9 section (b)(5)’’ before the period.

10 (B) Section 466(b) (42 U.S.C. 666(b)) is

11 amended in the matter preceding paragraph

12 (1), by striking ‘‘subsection (a)(1)’’ and insert13 ing ‘‘subsection (a)(1)(A)’’.

14 (C) Section 466(b)(5) (42 U.S.C.

15 666(b)(5)) is amended by striking all that fol16 lows ‘‘administered by’’ and inserting ‘‘the

17 State through the State disbursement unit es18 tablished pursuant to section 454B, in accord19 ance with the requirements of section 454B.’’.

20 (D) Section 466(b)(6)(A) (42 U.S.C.

21 666(b)(6)(A)) is amended—

22 (i) in clause (i), by striking ‘‘to the

23 appropriate agency’’ and all that follows

24 and inserting ‘‘to the State disbursement

25 unit within 2 business days after the date
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1 the amount would (but for this subsection)

2 have been paid or credited to the employee,

3 for distribution in accordance with this

4 part.’’;

5 (ii) in clause (ii), by inserting ‘‘be in

6 a standard format prescribed by the Sec7 retary, and’’ after ‘‘shall’’; and

8 (iii) by adding at the end the follow9 ing:

10 ‘‘(iii) As used in this subparagraph, the term

11 ‘business day’ means a day on which State offices

12 are open for regular business.’’.

13 (E) Section 466(b)(6)(D) (42 U.S.C.

14 666(b)(6)(D)) is amended by striking ‘‘any em15 ployer’’ and all that follows and inserting the

16 following:

17 ‘‘any employer who—

18 ‘‘(i) discharges from employment, refuses

19 to employ, or takes disciplinary action against

20 any absent parent subject to wage withholding

21 required by this subsection because of the exist22 ence of such withholding and the obligations or

23 additional obligations which is imposes upon the

24 employer; or
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1 ‘‘(ii) fails to withhold support from wages,

2 or to pay such amounts to the State disburse3 ment unit in accordance with this subsection.’’.

4 (F) Section 466(b) (42 U.S.C. 666(b)) is

5 amended by adding at the end the following:

6 ‘‘(11) Procedures under which the agency ad7 ministering the State plan approved under this part

8 may execute a withholding order through electronic

9 means and without advance notice to the obligor.’’.

10 (b) CONFORMING AMENDMENT.—Section 466(c) (42

11 U.S.C. 666(c)) is repealed.

12 SEC. 715. LOCATOR INFORMATION FROM INTERSTATE NET13 WORKS.

14 Section 466(a) (42 U.S.C. 666(a)) is amended by

15 adding at the end the following:

16 ‘‘(12) LOCATOR INFORMATION FROM INTER17 STATE NETWORKS.—Procedures to ensure that all

18 Federal and State agencies conducting activities

19 under this part have access to any system used by

20 the State to locate an individual for purposes relat21 ing to motor vehicles or law enforcement.’’.
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1 SEC. 716. EXPANSION OF THE FEDERAL PARENT LOCATOR

2 SERVICE.

3 (a) EXPANDED AUTHORITY TO LOCATE INDIVID4 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

5 amended—

6 (1) in subsection (a), by striking all that follows

7 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

8 establishing parentage, establishing, setting the

9 amount of, modifying, or enforcing child support ob10 ligations—

11 ‘‘(1) information on, or facilitating the discov12 ery of, the location of any individual—

13 ‘‘(A) who is under an obligation to pay

14 child support;

15 ‘‘(B) against whom such an obligation is

16 sought; or

17 ‘‘(C) to whom such an obligation is owed,

18 including the individual’s social security number (or

19 numbers), most recent address, and the name, ad20 dress, and employer identification number of the in21 dividual’s employer; and

22 ‘‘(2) information on the individual’s wages (or

23 other income) from, and benefits of, employment (in24 cluding rights to or enrollment in group health care

25 coverage).’’; and
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1 (2) in subsection (b), in the matter preceding

2 paragraph (1), by striking ‘‘social security’’ and all

3 that follows through ‘‘absent parent’’ and inserting

4 ‘‘information described in subsection (a)’’.

5 (b) REIMBURSEMENT FOR INFORMATION FROM FED6 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

7 653(e)(2)) is amended in the 4th sentence by inserting

8 ‘‘in an amount which the Secretary determines to be rea9 sonable payment for the information exchange (which

10 amount shall not include payment for the costs of obtain11 ing, compiling, or maintaining the information)’’ before

12 the period.

13 (c) REIMBURSEMENT FOR REPORTS BY STATE

14 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

15 adding at the end the following:

16 ‘‘(g) The Secretary may reimburse Federal and State

17 agencies for the costs incurred by such entities in furnish18 ing information requested by the Secretary under this sec19 tion in an amount which the Secretary determines to be

20 reasonable payment for the information exchange (which

21 amount shall not include payment for the costs of obtain22 ing, compiling, or maintaining the information).’’.

23 (d) TECHNICAL AMENDMENTS.—

24 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

25 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),
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1 653(b), 663(a), 663(e), and 663(f)) are each amend2 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

3 place such term appears.

4 (2) Section 453 (42 U.S.C. 653) is amended in

5 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR6 ENT’’.

7 (e) NEW COMPONENTS.—Section 453 (42 U.S.C.

8 653), as amended by subsection (c) of this section, is

9 amended by adding at the end the following:

10 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

11 ORDERS.—

12 ‘‘(1) IN GENERAL.—Not later than October 1,

13 1998, in order to assist States in administering pro14 grams under State plans approved under this part

15 and programs funded under part A, and for the

16 other purposes specified in this section, the Sec17 retary shall establish and maintain in the Federal

18 Parent Locator Service an automated registry

19 (which shall be known as the ‘Federal Case Registry

20 of Child Support Orders’), which shall contain ab21 stracts of support orders and other information de22 scribed in paragraph (2) with respect to each case

23 in each State case registry maintained pursuant to

24 section 454A(e), as furnished (and regularly up-
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1 dated), pursuant to section 454A(f), by State agen2 cies administering programs under this part.

3 ‘‘(2) CASE INFORMATION.—The information re4 ferred to in paragraph (1) with respect to a case

5 shall be such information as the Secretary may

6 specify in regulations (including the names, social

7 security numbers or other uniform identification

8 numbers, and State case identification numbers) to

9 identify the individuals who owe or are owed support

10 (or with respect to or on behalf of whom support

11 obligations are sought to be established), and the

12 State or States which have the case.

13 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

14 ‘‘(1) IN GENERAL.—In order to assist States in

15 administering programs under State plans approved

16 under this part and programs funded under part A,

17 and for the other purposes specified in this section,

18 the Secretary shall, not later than October 1, 1996,

19 establish and maintain in the Federal Parent Loca20 tor Service an automated directory to be known as

21 the National Directory of New Hires, which shall

22 contain the information supplied pursuant to section

23 453A(f)(2).

24 ‘‘(2) ADMINISTRATION OF FEDERAL TAX

25 LAWS.—The Secretary of the Treasury shall have
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1 access to the information in the Federal Directory of

2 New Hires for purposes of administering section 32

3 of the Internal Revenue Code of 1986, or the ad4 vance payment of the earned income tax credit

5 under section 3507 of such Code, and verifying a

6 claim with respect to employment in a tax return.

7 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS8 CLOSURES.—

9 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD10 MINISTRATION.—

11 ‘‘(A) The Secretary shall transmit informa12 tion on individuals and employers maintained

13 under this section to the Social Security Admin14 istration to the extent necessary for verification

15 in accordance with subparagraph (B).

16 ‘‘(B) The Social Security Administration

17 shall verify the accuracy of, correct, or supply

18 to the extent possible, and report to the Sec19 retary, the following information supplied by

20 the Secretary pursuant to subparagraph (A):

21 ‘‘(i) The name, social security num22 ber, and birth date of each such individual.

23 ‘‘(ii) The employer identification num24 ber of each such employer.
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1 ‘‘(2) INFORMATION COMPARISONS.—For the

2 purpose of locating individuals in a paternity estab3 lishment case or a case involving the establishment,

4 modification, or enforcement of a support order, the

5 Secretary shall—

6 ‘‘(A) compare information in the National

7 Directory of New Hires against information in

8 the support order abstracts in the Federal Case

9 Registry of Child Support Orders not less often

10 than every 2 business days; and

11 ‘‘(B) within 2 such days after such a com12 parison reveals a match with respect to an indi13 vidual, report the information to the State

14 agency responsible for the case.

15 ‘‘(3) INFORMATION COMPARISONS AND DISCLO16 SURES OF INFORMATION IN ALL REGISTRIES FOR

17 TITLE IV PROGRAM PURPOSES.—To the extent and

18 with the frequency that the Secretary determines to

19 be effective in assisting States to carry out their re20 sponsibilities under programs operated under this

21 part and programs funded under part A, the Sec22 retary shall—

23 ‘‘(A) compare the information in each com24 ponent of the Federal Parent Locator Service

25 maintained under this section against the infor-
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1 mation in each other such component (other

2 than the comparison required by paragraph

3 (2)), and report instances in which such a com4 parison reveals a match with respect to an indi5 vidual to State agencies operating such pro6 grams; and

7 ‘‘(B) disclose information in such registries

8 to such State agencies.

9 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

10 TO THE SOCIAL SECURITY ADMINISTRATION.—The

11 National Directory of New Hires shall provide the

12 Commissioner of Social Security with all information

13 in the National Directory, which shall be used to de14 termine the accuracy of payments under the supple15 mental security income program under title XVI and

16 in connection with benefits under title II.

17 ‘‘(5) RESEARCH.—The Secretary may provide

18 access to information reported by employers pursu19 ant to section 453A(b) for research purposes found

20 by the Secretary to be likely to contribute to achiev21 ing the purposes of part A or this part, but without

22 personal identifiers.

23 ‘‘(k) FEES.—

24 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

25 shall reimburse the Commissioner of Social Security,
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1 at a rate negotiated between the Secretary and the

2 Commissioner, for the costs incurred by the Com3 missioner in performing the verification services de4 scribed in subsection (j).

5 ‘‘(2) FOR INFORMATION FROM STATE DIREC6 TORIES OF NEW HIRES.—The Secretary shall reim7 burse costs incurred by State directories of new

8 hires in furnishing information as required by sub9 section (j)(3), at rates which the Secretary deter10 mines to be reasonable (which rates shall not include

11 payment for the costs of obtaining, compiling, or

12 maintaining such information).

13 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

14 AND FEDERAL AGENCIES.—A State or Federal agen15 cy that receives information from the Secretary pur16 suant to this section shall reimburse the Secretary

17 for costs incurred by the Secretary in furnishing the

18 information, at rates which the Secretary determines

19 to be reasonable (which rates shall include payment

20 for the costs of obtaining, verifying, maintaining,

21 and comparing the information).

22 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In23 formation in the Federal Parent Locator Service, and in24 formation resulting from comparisons using such informa25 tion, shall not be used or disclosed except as expressly pro-
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1 vided in this section, subject to section 6103 of the Inter2 nal Revenue Code of 1986.

3 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

4 The Secretary shall establish and implement safeguards

5 with respect to the entities established under this section

6 designed to—

7 ‘‘(1) ensure the accuracy and completeness of

8 information in the Federal Parent Locator Service;

9 and

10 ‘‘(2) restrict access to confidential information

11 in the Federal Parent Locator Service to authorized

12 persons, and restrict use of such information to au13 thorized purposes.’’.

14 (f) CONFORMING AMENDMENTS.—

15 (1) TO PART D OF TITLE IV OF THE SOCIAL SE16 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

17 654(8)(B)) is amended to read as follows:

18 ‘‘(B) the Federal Parent Locator Service

19 established under section 453;’’.

20 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

21 Section 3304(a)(16) of the Internal Revenue Code of

22 1986 is amended—

23 (A) by striking ‘‘Secretary of Health, Edu24 cation, and Welfare’’ each place such term ap-
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1 pears and inserting ‘‘Secretary of Health and

2 Human Services’’;

3 (B) in subparagraph (B), by striking

4 ‘‘such information’’ and all that follows and in5 serting ‘‘information furnished under subpara6 graph (A) or (B) is used only for the purposes

7 authorized under such subparagraph;’’;

8 (C) by striking ‘‘and’’ at the end of sub9 paragraph (A);

10 (D) by redesignating subparagraph (B) as

11 subparagraph (C); and

12 (E) by inserting after subparagraph (A)

13 the following new subparagraph:

14 ‘‘(B) wage and unemployment compensa15 tion information contained in the records of

16 such agency shall be furnished to the Secretary

17 of Health and Human Services (in accordance

18 with regulations promulgated by such Sec19 retary) as necessary for the purposes of the Na20 tional Directory of New Hires established under

21 section 453(i) of the Social Security Act, and’’.

22 (3) TO STATE GRANT PROGRAM UNDER TITLE

23 III OF THE SOCIAL SECURITY ACT.—Section 303(a)

24 (42 U.S.C. 503(a)) is amended—
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1 (A) by striking ‘‘and’’ at the end of para2 graph (8);

3 (B) by striking ‘‘and’’ at the end of para4 graph (9);

5 (C) by striking the period at the end of

6 paragraph (10) and inserting ‘‘; and’’; and

7 (D) by adding after paragraph (10) the

8 following:

9 ‘‘(11) The making of quarterly electronic re10 ports, at such dates, in such format, and containing

11 such information, as required by the Secretary of

12 Health and Human Services under section 453(i)(3),

13 and compliance with such provisions as such Sec14 retary may find necessary to ensure the correctness

15 and verification of such reports.’’.

16 SEC. 717. COLLECTION AND USE OF SOCIAL SECURITY

17 NUMBERS FOR USE IN CHILD SUPPORT EN18 FORCEMENT.

19 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

20 U.S.C. 666(a)), as amended by section 715 of this Act,

21 is amended by adding at the end the following:

22 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM23 BERS IN CERTAIN FAMILY MATTERS.—Procedures

24 requiring that the social security number of—
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1 ‘‘(A) any applicant for a professional li2 cense, commercial driver’s license, occupational

3 license, or marriage license be recorded on the

4 application; and

5 ‘‘(B) any individual who is subject to a di6 vorce decree, support order, or paternity deter7 mination or acknowledgment be placed in the

8 records relating to the matter.’’.

9 (b) CONFORMING AMENDMENTS.—Section

10 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

11 section 321(a)(9) of the Social Security Independence and

12 Program Improvements Act of 1994, is amended—

13 (1) in clause (i), by striking ‘‘may require’’ and

14 inserting ‘‘shall require’’;

15 (2) in clause (ii), by inserting after the 1st sen16 tence the following: ‘‘In the administration of any

17 law involving the issuance of a marriage certificate

18 or license, each State shall require each party named

19 in the certificate or license to furnish to the State

20 (or political subdivision thereof) or any State agency

21 having administrative responsibility for the law in22 volved, the social security number of the party.’’;

23 (3) in clause (vi), by striking ‘‘may’’ and insert24 ing ‘‘shall’’; and

25 (4) by adding at the end the following:
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1 ‘‘(x) An agency of a State (or a politi2 cal subdivision thereof) charged with the

3 administration of any law concerning the

4 issuance or renewal of a license, certificate,

5 permit, or other authorization to engage in

6 a profession, an occupation, or a commer7 cial activity shall require all applicants for

8 issuance or renewal of the license, certifi9 cate, permit, or other authorization to pro10 vide the applicant’s social security number

11 to the agency for the purpose of admin12 istering such laws, and for the purpose of

13 responding to requests for information

14 from an agency operating pursuant to part

15 D of title IV.

16 ‘‘(xi) All divorce decrees, support or17 ders, and paternity determinations issued,

18 and all paternity acknowledgments made,

19 in each State shall include the social secu20 rity number of each party to the decree,

21 order, determination, or acknowledgement

22 in the records relating to the matter.’’.
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1 Subtitle C—Streamlining and

2 Uniformity of Procedures

3 SEC. 721. ADOPTION OF UNIFORM STATE LAWS.

4 Section 466 (42 U.S.C. 666) is amended by adding

5 at the end the following:

6 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

7 ACT.—

8 ‘‘(1) ENACTMENT AND USE.—In order to sat9 isfy section 454(20)(A) on or after January 1, 1997,

10 each State must have in effect the Uniform Inter11 state Family Support Act, as approved by the Na12 tional Conference of Commissioners on Uniform

13 State Laws in August 1992 (with the modifications

14 and additions specified in this subsection), and the

15 procedures required to implement such Act.

16 ‘‘(2) EXPANDED APPLICATION.—The State law

17 enacted pursuant to paragraph (1) shall be applied

18 to any case involving an order which is established

19 or modified in a State and which is sought to be

20 modified or enforced in another State.

21 ‘‘(3) JURISDICTION TO MODIFY ORDERS.—The

22 State law enacted pursuant to paragraph (1) of this

23 subsection shall contain the following provision in

24 lieu of section 611(a)(1) of the Uniform Interstate

25 Family Support Act:
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1 ‘‘ ‘(1) the following requirements are met:

2 ‘‘ ‘(i) the child, the individual obligee, and

3 the obligor—

4 ‘‘ ‘(I) do not reside in the issuing

5 State; and

6 ‘‘ ‘(II) either reside in this State or

7 are subject to the jurisdiction of this State

8 pursuant to section 201; and

9 ‘‘ ‘(ii) (in any case where another State is

10 exercising or seeks to exercise jurisdiction to

11 modify the order) the conditions of section 204

12 are met to the same extent as required for pro13 ceedings to establish orders; or’.

14 ‘‘(4) SERVICE OF PROCESS.—The State law en15 acted pursuant to paragraph (1) shall provide that,

16 in any proceeding subject to the law, process may be

17 served (and proved) upon persons in the State by

18 any means acceptable in any State which is the initi19 ating or responding State in the proceeding.’’.

20 SEC. 722. IMPROVEMENTS TO FULL FAITH AND CREDIT

21 FOR CHILD SUPPORT ORDERS.

22 Section 1738B of title 28, United States Code, is

23 amended—

24 (1) in subsection (a)(2), by striking ‘‘subsection

25 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;
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1 (2) in subsection (b), by inserting after the 2nd

2 undesignated paragraph the following:

3 ‘‘ ‘child’s home State’ means the State in which

4 a child lived with a parent or a person acting as par5 ent for at least six consecutive months immediately

6 preceding the time of filing of a petition or com7 parable pleading for support and, if a child is less

8 than six months old, the State in which the child

9 lived from birth with any of them. A period of tem10 porary absence of any of them is counted as part of

11 the six-month period.’’;

12 (3) in subsection (c), by inserting ‘‘by a court

13 of a State’’ before ‘‘is made’’;

14 (4) in subsection (c)(1), by inserting ‘‘and sub15 sections (e), (f), and (g)’’ after ‘‘located’’;

16 (5) in subsection (d)—

17 (A) by inserting ‘‘individual’’ before ‘‘con18 testant’’; and

19 (B) by striking ‘‘subsection (e)’’ and in20 serting ‘‘subsections (e) and (f)’’;

21 (6) in subsection (e), by striking ‘‘make a modi22 fication of a child support order with respect to a

23 child that is made’’ and inserting ‘‘modify a child

24 support order issued’’;
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1 (7) in subsection (e)(1), by inserting ‘‘pursuant

2 to subsection (i)’’ before the semicolon;

3 (8) in subsection (e)(2)—

4 (A) by inserting ‘‘individual’’ before ‘‘con5 testant’’ each place such term appears; and

6 (B) by striking ‘‘to that court’s making the

7 modification and assuming’’ and inserting ‘‘with

8 the State of continuing, exclusive jurisdiction

9 for a court of another State to modify the order

10 and assume’’;

11 (9) by redesignating subsections (f) and (g) as

12 subsections (g) and (h), respectively;

13 (10) by inserting after subsection (e) the follow14 ing:

15 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

16 If one or more child support orders have been issued in

17 this or another State with regard to an obligor and a child,

18 a court shall apply the following rules in determining

19 which order to recognize for purposes of continuing, exclu20 sive jurisdiction and enforcement:

21 ‘‘(1) If only one court has issued a child sup22 port order, the order of that court must be recog23 nized.

24 ‘‘(2) If two or more courts have issued child

25 support orders for the same obligor and child, and
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1 only one of the courts would have continuing, exclu2 sive jurisdiction under this section, the order of that

3 court must be recognized.

4 ‘‘(3) If two or more courts have issued child

5 support orders for the same obligor and child, and

6 only one of the courts would have continuing, exclu7 sive jurisdiction under this section, an order issued

8 by a court in the current home State of the child

9 must be recognized, but if an order has not been is10 sued in the current home State of the child, the

11 order most recently issued must be recognized.

12 ‘‘(4) If two or more courts have issued child

13 support orders for the same obligor and child, and

14 none of the courts would have continuing, exclusive

15 jurisdiction under this section, a court may issue a

16 child support order, which must be recognized.

17 ‘‘(5) The court that has issued an order recog18 nized under this subsection is the court having con19 tinuing, exclusive jurisdiction.’’;

20 (11) in subsection (g) (as so redesignated)—

21 (A) by striking ‘‘PRIOR’’ and inserting

22 ‘‘MODIFIED’’; and

23 (B) by striking ‘‘subsection (e)’’ and in24 serting ‘‘subsections (e) and (f)’’;

25 (12) in subsection (h) (as so redesignated)—
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1 (A) in paragraph (2), by inserting ‘‘includ2 ing the duration of current payments and other

3 obligations of support’’ before the comma; and

4 (B) in paragraph (3), by inserting ‘‘arrears

5 under’’ after ‘‘enforce’’; and

6 (13) by adding at the end the following:

7 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

8 no individual contestant or child residing in the issuing

9 State, the party or support enforcement agency seeking

10 to modify, or to modify and enforce, a child support order

11 issued in another State shall register that order in a State

12 with jurisdiction over the nonmovant for the purpose of

13 modification.’’.

14 SEC. 723. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

15 CASES.

16 Section 466(a) (42 U.S.C. 666(a)), as amended by

17 sections 715 and 717(a) of this Act, is amended by adding

18 at the end the following:

19 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

20 INTERSTATE CASES.—Procedures under which—

21 ‘‘(A)(i) the State shall respond within 5

22 business days to a request made by another

23 State to enforce a support order; and
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1 ‘‘(ii) the term ‘business day’ means a day

2 on which State offices are open for regular

3 business;

4 ‘‘(B) the State may, by electronic or other

5 means, transmit to another State a request for

6 assistance in a case involving the enforcement

7 of a support order, which request—

8 ‘‘(i) shall include such information as

9 will enable the State to which the request

10 is transmitted to compare the information

11 about the case to the information in the

12 data bases of the State;

13 ‘‘(ii) shall constitute a certification by

14 the requesting State—

15 ‘‘(I) of the amount of support

16 under the order the payment of which

17 is in arrears; and

18 ‘‘(II) that the requesting State

19 has complied with all procedural due

20 process requirements applicable to the

21 case.

22 ‘‘(C) if the State provides assistance to an23 other State pursuant to this paragraph with re24 spect to a case, neither State shall consider the
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1 case to be transferred to the caseload of such

2 other State; and

3 ‘‘(D) the State shall maintain records of—

4 ‘‘(i) the number of such requests for

5 assistance received by the State;

6 ‘‘(ii) the number of cases for which

7 the State collected support in response to

8 such a request; and

9 ‘‘(iii) the amount of such collected

10 support.’’.

11 SEC. 724. USE OF FORMS IN INTERSTATE ENFORCEMENT.

12 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

13 652(a)) is amended—

14 (1) by striking ‘‘and’’ at the end of parargraph

15 (9);

16 (2) by striking the period at the end of para17 graph (10) and inserting ‘‘; and’’; and

18 (3) by adding at the end the following:

19 ‘‘(11) not later than June 30, 1996, promulgate

20 forms to be used by States in interstate cases for—

21 ‘‘(A) collection of child support through in22 come withholding;

23 ‘‘(B) imposition of liens; and

24 ‘‘(C) administrative subpoenas.’’.
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1 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

2 654(9)) is amended—

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (C);

5 (2) by inserting ‘‘and’’ at the end of subpara6 graph (D); and

7 (3) by adding at the end the following:

8 ‘‘(E) no later than October 1, 1996, in

9 using the forms promulgated pursuant to sec10 tion 452(a)(11) for income withholding, imposi11 tion of liens, and issuance of administrative

12 subpoenas in interstate child support cases;’’.

13 SEC. 725. STATE LAWS PROVIDING EXPEDITED PROCE14 DURES.

15 (a) STATE LAW REQUIREMENTS.—Section 466 (42

16 U.S.C. 666), as amended by section 714 of this Act, is

17 amended—

18 (1) in subsection (a)(2), by strking the 1st sen19 tence and inserting the following: ‘‘Expedited admin20 istrative and judicial procedures (including the pro21 cedures specified in subsection (c)) for establishing

22 paternity and for establishing, modifying, and en23 forcing support obligations.’’; and

24 (2) by inserting after subsection (b) the follow25 ing:
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1 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

2 specified in this subsection are the following:

3 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN4 CY.—Procedures which give the State agency the au5 thority to take the following actions relating to es6 tablishment or enforcement of support orders, with7 out the necessity of obtaining an order from any

8 other judicial or administrative tribunal (but subject

9 to due process safeguards, including (as appropriate)

10 requirements for notice, opportunity to contest the

11 action, and opportunity for an appeal on the record

12 to an independent administrative or judicial tribu13 nal), and to recognize and enforce the authority of

14 State agencies of other States) to take the following

15 actions:

16 ‘‘(A) GENETIC TESTING.—To order genetic

17 testing for the purpose of paternity establish18 ment as provided in section 466(a)(5).

19 ‘‘(B) DEFAULT ORDERS.—To enter a de20 fault order, upon a showing of service of proc21 ess and any additional showing required by

22 State law—

23 ‘‘(i) establishing paternity, in the case

24 of a putative father who refuses to submit

25 to genetic testing; and
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1 ‘‘(ii) establishing or modifying a sup2 port obligation, in the case of a parent (or

3 other obligor or obligee) who fails to re4 spond to notice to appear at a proceeding

5 for such purpose.

6 ‘‘(C) SUBPOENAS.—To subpoena any fi7 nancial or other information needed to estab8 lish, modify, or enforce a support order, and to

9 impose penalties for failure to respond to such

10 a subpoena.

11 ‘‘(D) ACCESS TO PERSONAL AND FINAN12 CIAL INFORMATION.—To obtain access, subject

13 to safeguards on privacy and information secu14 rity, to the records of all other State and local

15 government agencies (including law enforcement

16 and corrections records), including automated

17 access to records maintained in automated data

18 bases.

19 ‘‘(E) CHANGE IN PAYEE.—In cases where

20 support is subject to an assignment in order to

21 comply with a requirement imposed pursuant to

22 part A or section 1912, or to a requirement to

23 pay through the State disbursement unit estab24 lished pursuant to section 454B, upon provid25 ing notice to obligor and obligee, to direct the
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1 obligor or other payor to change the payee to

2 the appropriate government entity.

3 ‘‘(F) INCOME WITHHOLDING.—To order

4 income withholding in accordance with sub5 sections (a)(1) and (b) of section 466.

6 ‘‘(G) SECURING ASSETS.—In cases in

7 which there is a support arrearage, to secure

8 assets to satisfy the arrearage by—

9 ‘‘(i) intercepting or seizing periodic or

10 lump sum payments from—

11 ‘‘(I) a State or local agency (in12 cluding unemployment compensation,

13 workers’ compensation, and other ben14 efits); and

15 ‘‘(II) judgments, settlements, and

16 lotteries;

17 ‘‘(ii) attaching and seizing assets of

18 the obligor held in financial institutions;

19 and

20 ‘‘(iii) attaching public and private re21 tirement funds.

22 ‘‘(H) INCREASE MONTHLY PAYMENTS.—

23 For the purpose of securing overdue support, to

24 increase the amount of monthly support pay25 ments to include amounts for arrearages (sub-
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1 ject to such conditions or limitations as the

2 State may provide).

3 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

4 The expedited procedures required under subsection

5 (a)(2) shall include the following rules and author6 ity, applicable with respect to all proceedings to es7 tablish paternity or to establish, modify, or enforce

8 support orders:

9 ‘‘(A) LOCATOR INFORMATION; PRESUMP10 TIONS CONCERNING NOTICE.—Procedures

11 under which—

12 ‘‘(i) each party to any paternity or

13 child support proceeding is required (sub14 ject to privacy safeguards) to file with the

15 tribunal and the State case registry upon

16 entry of an order, and to update as appro17 priate, information on location and identity

18 of the party (including social security num19 ber, residential and mailing addresses, tele20 phone number, driver’s license number,

21 and name, address, and name and tele22 phone number of employer); and

23 ‘‘(ii) in any subsequent child support

24 enforcement action between the parties,

25 upon sufficient showing that diligent effort
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1 has been made to ascertain the location of

2 such a party, the tribunal may deem State

3 due process requirements for notice and

4 service of process to be met with respect to

5 the party, upon delivery of written notice

6 to the most recent residential or employer

7 address filed with the tribunal pursuant to

8 clause (i).

9 ‘‘(B) STATEWIDE JURISDICTION.—Proce10 dures under which—

11 ‘‘(i) the State agency and any admin12 istrative or judicial tribunal with authority

13 to hear child support and paternity cases

14 exerts statewide jurisdiction over the par15 ties; and

16 ‘‘(ii) in a State in which orders are is17 sued by courts or administrative tribunals,

18 a case may be transferred between admin19 istrative areas in the State without need

20 for any additional filing by the petitioner,

21 or service of process upon the respondent,

22 to retain jurisdiction over the parties.’’.

23 (b) EXCEPTIONS FROM STATE LAW REQUIRE24 MENTS.—Section 466(d) (42 U.S.C. 666(d)) is amend25 ed—
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1 (1) by striking ‘‘(d) If’’ and inserting the fol2 lowing:

3 ‘‘(d) EXEMPTIONS FROM REQUIREMENTS.—

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

5 if’’; and

6 (2) by adding at the end the following:

7 ‘‘(2) NON-EXEMPT REQUIREMENTS.—The Sec8 retary shall not grant an exemption from the re9 quirements of—

10 ‘‘(A) subsection (a)(5) (concerning proce11 dures for paternity establishment);

12 ‘‘(B) subsection (a)(10) (concerning modi13 fication of orders);

14 ‘‘(C) section 454A (concerning recording of

15 orders in the State case registry);

16 ‘‘(D) subsection (a)(13) (concerning re17 cording of social security numbers);

18 ‘‘(E) subsection (a)(14) (concerning inter19 state enforcement); or

20 ‘‘(F) subsection (c) (concerning expedited

21 procedures), other than paragraph (1)(A) there22 of (concerning establishment or modification of

23 support amount).’’.

24 (c) AUTOMATION OF STATE AGENCY FUNCTIONS.—

25 Section 454A, as added by section 745(a)(2) of this Act
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1 and as amended by sections 711 and 712(c) of this Act,

2 is amended by adding at the end the following:

3 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

4 The automated system required by this section shall be

5 used, to the maximum extent feasible, to implement the

6 expedited administrative procedures required by section

7 466(c).’’.

8 Subtitle D—Paternity

9 Establishment

10 SEC. 731. STATE LAWS CONCERNING PATERNITY ESTAB11 LISHMENT.

12 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

13 U.S.C. 666(a)(5)) is amended to read as follows:

14 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES15 TABLISHMENT.—

16 ‘‘(A) ESTABLISHMENT PROCESS AVAIL17 ABLE FROM BIRTH UNTIL AGE 18.—

18 ‘‘(i) Procedures which permit the es19 tablishment of the paternity of a child at

20 any time before the child attains 18 years

21 of age.

22 ‘‘(ii) As of August 16, 1984, clause (i)

23 shall also apply to a child for whom pater24 nity has not been established or for whom

25 a paternity action was brought but dis-
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1 missed becasue a statute of limitations of

2 less than 18 years was then in effect in the

3 State.

4 ‘‘(B) PROCEDURES CONCERNING GENETIC

5 TESTING.—

6 ‘‘(i) GENETIC TESTING REQUIRED IN

7 CERTAIN CONTESTED CASES.—Procedures

8 under which the State is required, in a

9 contested paternity case, to require the

10 child and all other parties (other than indi11 viduals found under section 454(28) to

12 have good cause for refusing to cooperate)

13 to submit to genetic tests upon the request

14 of any such party if the request is sup15 ported by a sworn statement by the

16 party—

17 ‘‘(I) alleging paternity, and set18 ting forth facts establishing a reason19 able possibility of the requisite sexual

20 contact between the parties; or

21 ‘‘(II) denying paternity, and set22 ting forth facts establishing a reason23 able possibility of the nonexistence of

24 sexual contact between the parties.
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1 ‘‘(ii) OTHER REQUIREMENTS.—Proce2 dures which require the State agency, in

3 any case in which the agency orders ge4 netic testing—

5 ‘‘(I) to pay costs of such tests,

6 subject to recoupment (where the

7 State so elects) from the alleged fa8 ther if paternity is established; and

9 ‘‘(II) to obtain additional testing

10 in any case where an original test re11 sult is contested, upon request and

12 advance payment by the contestant.

13 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL14 EDGMENT.—

15 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce16 dures for a simple civil process for volun17 tarily acknowledging paternity under which

18 the State must provide that, before a

19 mother and a putative father can sign an

20 acknowledgment of paternity, the mother

21 and the putative father must be given no22 tice, orally, in writing, and in a language

23 that each can understand, of the alter24 natives to, the legal consequences of, and

25 the rights (including, if 1 parent is a
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1 minor, any rights afforded due to minority

2 status) and responsibilities that arise from,

3 signing the acknowledgment.

4 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

5 Such procedures must include a hospital6 based program for the voluntary acknowl7 edgment of paternity focusing on the pe8 riod immediately before or after the birth

9 of a child.

10 ‘‘(iii) PATERNITY ESTABLISHMENT

11 SERVICES.—

12 ‘‘(I) STATE-OFFERED SERV13 ICES.—Such procedures must require

14 the State agency responsible for main15 taining birth records to offer vol16 untary paternity establishment serv17 ices.

18 ‘‘(II) REGULATIONS.—

19 ‘‘(aa) SERVICES OFFERED

20 BY HOSPITALS AND BIRTH

21 RECORD AGENCIES.—The Sec22 retary shall prescribe regulations

23 governing voluntary paternity es24 tablishment services offered by
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1 hospitals and birth record agen2 cies.

3 ‘‘(bb) SERVICES OFFERED

4 BY OTHER ENTITIES.—The Sec5 retary shall prescribe regulations

6 specifying the types of other enti7 ties that may offer voluntary pa8 ternity establishment services,

9 and governing the provision of

10 such services, which shall include

11 a requirement that such an entity

12 must use the same notice provi13 sions used by, use the same ma14 terials used by, provide the per15 sonnel providing such services

16 with the same training provided

17 by, and evaluate the provision of

18 such services in the same manner

19 as the provision of such services

20 is evaluated by, voluntary pater21 nity establishment programs of

22 hospitals and birth record agen23 cies.

24 ‘‘(iv) USE OF FEDERAL PATERNITY

25 ACKNOWLEDGMENT AFFIDAVIT.—Such
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1 procedures must require the State and

2 those required to establish paternity to use

3 only the affidavit developed under section

4 452(a)(7) for the voluntary acknowledg5 ment of paternity, and to give full faith

6 and credit to such an affidavit signed in

7 any other State.

8 ‘‘(D) STATUS OF SIGNED PATERNITY AC9 KNOWLEDGMENT.—

10 ‘‘(i) LEGAL FINDING OF PATER11 NITY.—Procedures under which a signed

12 acknowledgment of paternity is considered

13 a legal finding of paternity, subject to the

14 right of any signatory to rescind the ac15 knowledgment within 60 days.

16 ‘‘(ii) CONTEST.—Procedures under

17 which, after the 60-day period referred to

18 in clause (i), a signed acknowledgment of

19 paternity may be challenged in court only

20 on the basis of fraud, duress, or material

21 mistake of fact, with the burden of proof

22 upon the challenger, and under which the

23 legal responsibilities (including child sup24 port obligations) of any signatory arising

25 from the acknowledgment may not be sus-
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1 pended during the challenge, except for

2 good cause shown.

3 ‘‘(iii) RESCISSION.—Procedures under

4 which, after the 60-day period referred to

5 in clause (i), a minor who has signed an

6 acknowledgment of paternity other than in

7 the presence of a parent or court-appointed

8 guardian ad litem may rescind the ac9 knowledgment in a judicial or administra10 tive proceeding, until the earlier of—

11 ‘‘(I) attaining the age of major12 ity; or

13 ‘‘(II) the date of the first judicial

14 or administrative proceeding brought

15 (after the signing) to establish a child

16 support obligation, visitation rights, or

17 custody rights with respect to the

18 child whose paternity is the subject of

19 the acknowledgment, and at which the

20 minor is represented by a parent or

21 guardian ad litem, or an attorney.

22 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI23 CATION PROCEEDINGS.—Procedures under

24 which judicial or administrative proceedings are
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1 not required or permitted to ratify an unchal2 lenged acknowledgment of paternity.

3 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

4 RESULTS.—Procedures—

5 ‘‘(i) requiring the admission into evi6 dence, for purposes of establishing pater7 nity, of the results of any genetic test that

8 is—

9 ‘‘(I) of a type generally acknowl10 edged as reliable by accreditation bod11 ies designated by the Secretary; and

12 ‘‘(II) performed by a laboratory

13 approved by such an accreditation

14 body;

15 ‘‘(ii) requiring an objection to genetic

16 testing results to be made in writing not

17 later than a specified number of days be18 fore any hearing at which the results may

19 be introduced into evidence (or, at State

20 option, not later than a specified number

21 of days after receipt of the results); and

22 ‘‘(iii) making the test results admissi23 ble as evidence of paternity without the

24 need for foundation testimony or other
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1 proof of authenticity or accuracy, unless

2 objection is made.

3 ‘‘(G) PRESUMPTION OF PATERNITY IN

4 CERTAIN CASES.—Procedures which create a re5 buttable or, at the option of the State, conclu6 sive presumption of paternity upon genetic test7 ing results indicating a threshold probability

8 that the alleged father is the father of the child.

9 ‘‘(H) DEFAULT ORDERS.—Procedures re10 quiring a default order to be entered in a pater11 nity case upon a showing of service of process

12 on the defendant and any additional showing

13 required by State law.

14 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce15 dures providing that the parties to an action to

16 establish paternity are not entitled to a trial by

17 jury.

18 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

19 ON PROBABLE PATERNITY IN CONTESTED

20 CASES.—Procedures which require that a tem21 porary order be issued, upon motion by a party,

22 requiring the provision of child support pending

23 an administrative or judicial determination of

24 parentage, where there is clear and convincing
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1 evidence of paternity (on the basis of genetic

2 tests or other evidence).

3 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

4 PATERNITY ESTABLISHMENT COSTS.—Proce5 dures under which bills for pregnancy, child6 birth, and genetic testing are admissible as evi7 dence without requiring third-party foundation

8 testimony, and shall constitute prima facie evi9 dence of amounts incurred for such services or

10 for testing on behalf of the child.

11 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

12 Procedures ensuring that the putative father

13 has a reasonable opportunity to initiate a pater14 nity action.

15 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

16 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

17 RECORDS.—Procedures under which voluntary

18 acknowledgments and adjudications of paternity

19 by judicial or administrative processes are filed

20 with the State registry of birth records for com21 parison with information in the State case reg22 istry.’’.

23 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI24 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

25 amended by inserting ‘‘, and develop an affidavit to be
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1 used for the voluntary acknowledgment of paternity which

2 shall include the social security number of each parent’’

3 before the semicolon.

4 (c) TECHNICAL AMENDMENT.—Section 468 (42

5 U.S.C. 668) is amended by striking ‘‘a simple civil process

6 for voluntarily acknowledging paternity and’’.

7 SEC. 732. OUTREACH FOR VOLUNTARY PATERNITY ESTAB8 LISHMENT.

9 Section 454(23) (42 U.S.C. 654(23)) is amended by

10 inserting ‘‘and will publicize the availability and encourage

11 the use of procedures for voluntary establishment of pater12 nity and child support by means the State deems appro13 priate’’ before the semicolon.

14 SEC. 733. COOPERATION BY APPLICANTS FOR AND RECIPI15 ENTS OF TEMPORARY FAMILY ASSISTANCE.

16 Section 454 (42 U.S.C. 654), as amended by sections

17 703(a), 712(a), and 713(a) of this Act, is amended—

18 (1) by striking ‘‘and’’ at the end of paragraph

19 (26);

20 (2) by striking the period at the end of para21 graph (27) and inserting ‘‘; and’’; and

22 (3) by inserting after paragraph (27) the fol23 lowing:

24 ‘‘(28) provide that the State agency responsible

25 for administering the State plan—
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1 ‘‘(A) shall require each individual who has

2 applied for or is receiving assistance under the

3 State program funded under part A to cooper4 ate with the State in establishing the paternity

5 of, and in establishing, modifying, or enforcing

6 a support order for, any child of the individual

7 by providing the State agency with the name of,

8 and such other information as the State agency

9 may require with respect to, the father of the

10 child, subject to such good cause and other ex11 ceptions as the State may establish; and

12 ‘‘(B) may require the individual and the

13 child to submit to genetic tests.’’.

14 Subtitle E—Program

15 Administration and Funding

16 SEC. 741. FEDERAL MATCHING PAYMENTS.

17 (a) INCREASED BASE MATCHING RATE.—Section

18 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

19 follows:

20 ‘‘(2) The percent specified in this paragraph for any

21 quarter is 66 percent.’’.

22 (b) MAINTENANCE OF EFFORT.—Section 455 (42

23 U.S.C. 655) is amended—
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1 (1) in subsection (a)(1), in the matter preced2 ing subparagraph (A), by striking ‘‘From’’ and in3 serting ‘‘Subject to subsection (c), from’’; and

4 (2) by inserting after subsection (b) the follow5 ing:

6 ‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding

7 subsection (a), the total expenditures under the State plan

8 approved under this part for fiscal year 1997 and each

9 succeeding fiscal year, reduced by the percentage specified

10 in paragraph (2) for the fiscal year shall not be less than

11 such total expenditures for fiscal year 1996, reduced by

12 66 percent.’’.

13 SEC. 742. PERFORMANCE-BASED INCENTIVES AND PEN14 ALTIES.

15 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH16 ING RATE.—Section 458 (42 U.S.C. 658) is amended to

17 read as follows:

18 ‘‘SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

19 ‘‘(a) INCENTIVE ADJUSTMENTS.—

20 ‘‘(1) IN GENERAL.—Beginning with fiscal year

21 1999, the Secretary shall increase the percent speci22 fied in section 455(a)(2) that applies to payments to

23 a State under section 455(a)(1)(A) for each quarter

24 in a fiscal year by a factor reflecting the sum of the

25 applicable incentive adjustments (if any) determined
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1 in accordance with regulations under this section

2 with respect to the paternity establishment percent3 age of the State for the immediately preceding fiscal

4 year and with respect to overall performance of the

5 State in child support enforcement during such pre6 ceding fiscal year.

7 ‘‘(2) STANDARDS.—

8 ‘‘(A) IN GENERAL.—The Secretary shall

9 specify in regulations—

10 ‘‘(i) the levels of accomplishment, and

11 rates of improvement as alternatives to

12 such levels, which a State must attain to

13 qualify for an incentive adjustment under

14 this section; and

15 ‘‘(ii) the amounts of incentive adjust16 ment that shall be awarded to a State that

17 achieves specified accomplishment or im18 provement levels, which amounts shall be

19 graduated, ranging up to—

20 ‘‘(I) 12 percentage points, in con21 nection with paternity establishment;

22 and

23 ‘‘(II) 12 percentage points, in

24 connection with overall performance in

25 child support enforcement.
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1 ‘‘(B) LIMITATION.—In setting performance

2 standards pursuant to subparagraph (A)(i) and

3 adjustment amounts pursuant to subparagraph

4 (A)(ii), the Secretary shall ensure that the ag5 gregate number of percentage point increases as

6 incentive adjustments to all States do not ex7 ceed such aggregate increases as assumed by

8 the Secretary in estimates of the cost of this

9 section as of June 1994, unless the aggregate

10 performance of all States exceeds the projected

11 aggregate performance of all States in such cost

12 estimates.

13 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST14 MENT.—The Secretary shall determine the amount

15 (if any) of the incentive adjustment due each State

16 on the basis of the data submitted by the State pur17 suant to section 454(15)(B) concerning the levels of

18 accomplishment (and rates of improvement) with re19 spect to performance indicators specified by the Sec20 retary pursuant to this section.

21 ‘‘(4) RECYCLING OF INCENTIVE ADJUST22 MENT.—A State to which funds are paid by the

23 Federal Government as a result of an incentive ad24 justment under this section shall expend the funds
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1 in the State program under this part within 2 years

2 after the date of the payment.

3 ‘‘(b) DEFINITIONS.—As used in this section:

4 ‘‘(1) PATERNITY ESTABLISHMENT PERCENT5 AGE.—The term ‘paternity establishment percent6 age’ means, with respect to a State and a fiscal

7 year—

8 ‘‘(A) the total number of children in the

9 State who were born out of wedlock, who have

10 not attained 1 year of age and for whom pater11 nity is established or acknowledged during the

12 fiscal year; divided by

13 ‘‘(B) the total number of children born out

14 of wedlock in the State during the fiscal year.

15 ‘‘(2) OVERALL PERFORMANCE IN CHILD SUP16 PORT ENFORCEMENT.—The term ‘overall perform17 ance in child support enforcement’ means a measure

18 or measures of the effectiveness of the State agency

19 in a fiscal year which takes into account factors in20 cluding—

21 ‘‘(A) the percentage of cases requiring a

22 support order in which such an order was es23 tablished;

24 ‘‘(B) the percentage of cases in which child

25 support is being paid;
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1 ‘‘(C) the ratio of child support collected to

2 child support due; and

3 ‘‘(D) the cost-effectiveness of the State

4 program, as determined in accordance with

5 standards established by the Secretary in regu6 lations (after consultation with the States).’’.

7 (b) CONFORMING AMENDMENTS.—Section 454(22)

8 (42 U.S.C. 654(22)) is amended—

9 (1) by striking ‘‘incentive payments’’ the 1st

10 place such term appears and inserting ‘‘incentive ad11 justments’’; and

12 (2) by striking ‘‘any such incentive payments

13 made to the State for such period’’ and inserting

14 ‘‘any increases in Federal payments to the State re15 sulting from such incentive adjustments’’.

16 (c) CALCULATION OF IV–D PATERNITY ESTABLISH17 MENT PERCENTAGE.—

18 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

19 amended—

20 (A) in the matter preceding subparagraph

21 (A) by inserting ‘‘its overall performance in

22 child support enforcement is satisfactory (as de23 fined in section 458(b) and regulations of the

24 Secretary), and’’ after ‘‘1994,’’; and
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1 (B) in each of subparagraphs (A) and (B),

2 by striking ‘‘75’’ and inserting ‘‘90’’.

3 (2) Section 452(g)(2)(A) (42 U.S.C.

4 652(g)(2)(A)) is amended in the matter preceding

5 clause (i)—

6 (A) by striking ‘‘paternity establishment

7 percentage’’ and inserting ‘‘IV–D paternity es8 tablishment percentage’’; and

9 (B) by striking ‘‘(or all States, as the case

10 may be)’’.

11 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

12 amended—

13 (A) by striking subparagraph (A) and re14 designating subparagraphs (B) and (C) as sub15 paragraphs (A) and (B), respectively;

16 (B) in subparagraph (A) (as so redesig17 nated), by striking ‘‘the percentage of children

18 born out-of-wedlock in a State’’ and inserting

19 ‘‘the percentage of children in a State who are

20 born out of wedlock or for whom support has

21 not been established’’; and

22 (C) in subparagraph (B) (as so redesig23 nated)—
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1 (i) by inserting ‘‘and overall perform2 ance in child support enforcement’’ after

3 ‘‘paternity establishment percentages’’; and

4 (ii) by inserting ‘‘and securing sup5 port’’ before the period.

6 (d) EFFECTIVE DATES.—

7 (1) INCENTIVE ADJUSTMENTS.—(A) The

8 amendments made by subsections (a) and (b) shall

9 become effective on October 1, 1997, except to the

10 extent provided in subparagraph (B).

11 (B) Section 458 of the Social Security Act, as

12 in effect prior to the enactment of this section, shall

13 be effective for purposes of incentive payments to

14 States for fiscal years before fiscal year 1999.

15 (2) PENALTY REDUCTIONS.—The amendments

16 made by subsection (c) shall become effective with

17 respect to calendar quarters beginning on and after

18 the date of the enactment of this Act.

19 SEC. 743. FEDERAL AND STATE REVIEWS AND AUDITS.

20 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

21 U.S.C. 654) is amended—

22 (1) in paragraph (14), by striking ‘‘(14)’’ and

23 inserting ‘‘(14)(A)’’;

24 (2) by redesignating paragraph (15) as sub25 paragraph (B) of paragraph (14); and
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1 (3) by inserting after paragraph (14) the fol2 lowing:

3 ‘‘(15) provide for—

4 ‘‘(A) a process for annual reviews of and

5 reports to the Secretary on the State program

6 operated under the State plan approved under

7 this part, which shall include such information

8 as may be necessary to measure State compli9 ance with Federal requirements for expedited

10 procedures and timely case processing, using

11 such standards and procedures as are required

12 by the Secretary, under which the State agency

13 will determine the extent to which the program

14 is operated in compliance with this part; and

15 ‘‘(B) a process of extracting from the auto16 mated data processing system required by para17 graph (16) and transmitting to the Secretary

18 data and calculations concerning the levels of

19 accomplishment (and rates of improvement)

20 with respect to applicable performance indica21 tors (including IV–D paternity establishment

22 percentages and overall performance in child

23 support enforcement) to the extent necessary

24 for purposes of sections 452(g) and 458.’’.
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1 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

2 U.S.C. 652(a)(4)) is amended to read as follows:

3 ‘‘(4)(A) review data and calculations transmit4 ted by State agencies pursuant to section

5 454(15)(B) on State program accomplishments with

6 respect to performance indicators for purposes of

7 subsection (g) of this section and section 458;

8 ‘‘(B) review annual reports submitted pursuant

9 to section 454(15)(A) and, as appropriate, provide

10 to the State comments, recommendations for addi11 tional or alternative corrective actions, and technical

12 assistance; and

13 ‘‘(C) conduct audits, in accordance with the

14 government auditing standards of the Comptroller

15 General of the United States—

16 ‘‘(i) at least once every 3 years (or more

17 frequently, in the case of a State which fails to

18 meet the requirements of this part, concerning

19 performance standards and reliability of pro20 gram data) to assess the completeness, reliabil21 ity, and security of the data, and the accuracy

22 of the reporting systems, used in calculating

23 performance indicators under subsection (g) of

24 this section and section 458;
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1 ‘‘(ii) of the adequacy of financial manage2 ment of the State program operated under the

3 State plan approved under this part, including

4 assessments of—

5 ‘‘(I) whether Federal and other funds

6 made available to carry out the State pro7 gram are being appropriately expended,

8 and are properly and fully accounted for;

9 and

10 ‘‘(II) whether collections and disburse11 ments of support payments are carried out

12 correctly and are fully accounted for; and

13 ‘‘(iii) for such other purposes as the Sec14 retary may find necessary;’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall be effective with respect to calendar

17 quarters beginning 12 months or more after the date of

18 the enactment of this section.

19 SEC. 744. REQUIRED REPORTING PROCEDURES.

20 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

21 652(a)(5)) is amended by inserting ‘‘, and establish proce22 dures to be followed by States for collecting and reporting

23 information required to be provided under this part, and

24 establish uniform definitions (including those necessary to

25 enable the measurement of State compliance with the re-
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1 quirements of this part relating to expedited processes and

2 timely case processing) to be applied in following such pro3 cedures’’ before the semicolon.

4 (b) STATE PLAN REQUIREMENT.—Section 454 (42

5 U.S.C. 654), as amended by sections 703(a), 712(a),

6 713(a), and 733 of this Act, is amended—

7 (1) by striking ‘‘and’’ at the end of paragraph

8 (27);

9 (2) by striking the period at the end of para10 graph (28) and inserting ‘‘; and’’; and

11 (3) by adding after paragraph (28) the follow12 ing:

13 ‘‘(29) provide that the State shall use the defi14 nitions established under section 452(a)(5) in col15 lecting and reporting information as required under

16 this part.’’.

17 SEC. 745. AUTOMATED DATA PROCESSING REQUIREMENTS.

18 (a) REVISED REQUIREMENTS.—

19 (1) Section 454(16) (42 U.S.C. 654(16)) is

20 amended—

21 (A) by striking ‘‘, at the option of the

22 State,’’;

23 (B) by inserting ‘‘and operation by the

24 State agency’’ after ‘‘for the establishment’’;
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1 (C) by inserting ‘‘meeting the requirements

2 of section 454A’’ after ‘‘information retrieval

3 system’’;

4 (D) by striking ‘‘in the State and localities

5 thereof, so as (A)’’ and inserting ‘‘so as’’;

6 (E) by striking ‘‘(i)’’; and

7 (F) by striking ‘‘(including’’ and all that

8 follows and inserting a semicolon.

9 (2) Part D of title IV (42 U.S.C. 651–669) is

10 amended by inserting after section 454 the follow11 ing:

12 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

13 ‘‘(a) IN GENERAL.—In order for a State to meet the

14 requirements of this section, the State agency administer15 ing the State program under this part shall have in oper16 ation a single statewide automated data processing and

17 information retrieval system which has the capability to

18 perform the tasks specified in this section with the fre19 quency and in the manner required by or under this part.

20 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys21 tem required by this section shall perform such functions

22 as the Secretary may specify relating to management of

23 the State program under this part, including—
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1 ‘‘(1) controlling and accounting for use of Fed2 eral, State, and local funds in carrying out the pro3 gram; and

4 ‘‘(2) maintaining the data necessary to meet

5 Federal reporting requirements under this part on a

6 timely basis.

7 ‘‘(c) CALCULATION OF PERFORMANCE INDICA8 TORS.—In order to enable the Secretary to determine the

9 incentive and penalty adjustments required by sections

10 452(g) and 458, the State agency shall—

11 ‘‘(1) use the automated system—

12 ‘‘(A) to maintain the requisite data on

13 State performance with respect to paternity es14 tablishment and child support enforcement in

15 the State; and

16 ‘‘(B) to calculate the IV–D paternity es17 tablishment percentage and overall performance

18 in child support enforcement for the State for

19 each fiscal year; and

20 ‘‘(2) have in place systems controls to ensure

21 the completeness, and reliability of, and ready access

22 to, the data described in paragraph (1)(A), and the

23 accuracy of the calculations described in paragraph

24 (1)(B).
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1 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

2 State agency shall have in effect safeguards on the integ3 rity, accuracy, and completeness of, access to, and use of

4 data in the automated system required by this section,

5 which shall include the following (in addition to such other

6 safeguards as the Secretary may specify in regulations):

7 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

8 policies concerning access to data by State agency

9 personnel, and sharing of data with other persons,

10 which—

11 ‘‘(A) permit access to and use of data only

12 to the extent necessary to carry out the State

13 program under this part; and

14 ‘‘(B) specify the data which may be used

15 for particular program purposes, and the per16 sonnel permitted access to such data.

17 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

18 (such as passwords or blocking of fields) to ensure

19 strict adherence to the policies described in para20 graph (1).

21 ‘‘(3) MONITORING OF ACCESS.—Routine mon22 itoring of access to and use of the automated sys23 tem, through methods such as audit trails and feed24 back mechanisms, to guard against and promptly

25 identify unauthorized access or use.
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1 ‘‘(4) TRAINING AND INFORMATION.—Proce2 dures to ensure that all personnel (including State

3 and local agency staff and contractors) who may

4 have access to or be required to use confidential pro5 gram data are informed of applicable requirements

6 and penalties (including those in section 6103 of the

7 Internal Revenue Code of 1986), and are adequately

8 trained in security procedures.

9 ‘‘(5) PENALTIES.—Administrative penalties (up

10 to and including dismissal from employment) for un11 authorized access to, or disclosure or use of, con12 fidential data.’’.

13 (3) REGULATIONS.—The Secretary of Health

14 and Human Services shall prescribe final regulations

15 for implementation of section 454A of the Social Se16 curity Act not later than 2 years after the date of

17 the enactment of this Act.

18 (4) IMPLEMENTATION TIMETABLE.—Section

19 454(24) (42 U.S.C. 654(24)), as amended by sec20 tions 703(a)(2) and 712(a)(1) of this Act, is amend21 ed to read as follows:

22 ‘‘(24) provide that the State will have in effect

23 an automated data processing and information re24 trieval system—
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1 ‘‘(A) by October 1, 1995, which meets all

2 requirements of this part which were enacted on

3 or before the date of enactment of the Family

4 Support Act of 1988; and

5 ‘‘(B) by October 1, 1999, which meets all

6 requirements of this part enacted on or before

7 the date of the enactment of the Personal Re8 sponsibility Act of 1995, except that such dead9 line shall be extended by 1 day for each day (if

10 any) by which the Secretary fails to meet the

11 deadline imposed by section 745(a)(3) of the

12 Personal Responsibility Act of 1995.’’.

13 (b) SPECIAL FEDERAL MATCHING RATE FOR DE14 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

15 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

16 655(a)) is amended—

17 (A) in paragraph (1)(B)—

18 (i) by striking ‘‘90 percent’’ and in19 serting ‘‘the percent specified in paragraph

20 (3)’’;

21 (ii) by striking ‘‘so much of’’; and

22 (iii) by striking ‘‘which the Secretary’’

23 and all that follows and inserting ‘‘, and’’;

24 and

25 (B) by adding at the end the following:
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1 ‘‘(3)(A) The Secretary shall pay to each State, for

2 each quarter in fiscal year 1996, 90 percent of so much

3 of the State expenditures described in paragraph (1)(B)

4 as the Secretary finds are for a system meeting the re5 quirements specified in section 454(16).

6 ‘‘(B)(i) The Secretary shall pay to each State, for

7 each quarter in fiscal years 1997 through 2001, the per8 centage specified in clause (ii) of so much of the State

9 expenditures described in paragraph (1)(B) as the Sec10 retary finds are for a system meeting the requirements

11 of sections 454(16) and 454A.

12 ‘‘(ii) The percentage specified in this clause is the

13 greater of—

14 ‘‘(I) 80 percent; or

15 ‘‘(II) the percentage otherwise applicable to

16 Federal payments to the State under subparagraph

17 (A) (as adjusted pursuant to section 458).’’.

18 (2) TEMPORARY LIMITATION ON PAYMENTS

19 UNDER SPECIAL FEDERAL MATCHING RATE.—

20 (A) IN GENERAL.—The Secretary of

21 Health and Human Services may not pay more

22 than $260,000,000 in the aggregate under sec23 tion 455(a)(3) of the Social Security Act for fis24 cal years 1996, 1997, 1998, 1999, and 2000.
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1 (B) ALLOCATION OF LIMITATION AMONG

2 STATES.—The total amount payable to a State

3 under section 455(a)(3) of such Act for fiscal

4 years 1996, 1997, 1998, 1999, and 2000 shall

5 not exceed the limitation determined for the

6 State by the Secretary of Health and Human

7 Services in regulations.

8 (C) ALLOCATION FORMULA.—The regula9 tions referred to in subparagraph (B) shall pre10 scribe a formula for allocating the amount spec11 ified in subparagraph (A) among States with

12 plans approved under part D of title IV of the

13 Social Security Act, which shall take into ac14 count—

15 (i) the relative size of State caseloads

16 under such part; and

17 (ii) the level of automation needed to

18 meet the automated data processing re19 quirements of such part.

20 (c) CONFORMING AMENDMENT.—Section 123(c) of

21 the Family Support Act of 1988 (102 Stat. 2352; Public

22 Law 100–485) is repealed.

23 SEC. 746. TECHNICAL ASSISTANCE.

24 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

25 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE-
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1 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI2 CANCE.—Section 452 (42 U.S.C. 652) is amended by add3 ing at the end the following:

4 ‘‘(j) Out of any money in the Treasury of the United

5 States not otherwise appropriated, there is hereby appro6 priated to the Secretary for each fiscal year an amount

7 equal to 1 percent of the total amount paid to the Federal

8 Government pursuant to section 457(a) during the imme9 diately preceding fiscal year (as determined on the basis

10 of the most recent reliable data available to the Secretary

11 as of the end of the 3rd calendar quarter following the

12 end of such preceding fiscal year), to cover costs incurred

13 by the Secretary for—

14 ‘‘(1) information dissemination and technical

15 assistance to States, training of State and Federal

16 staff, staffing studies, and related activities needed

17 to improve programs under this part (including tech18 nical assistance concerning State automated systems

19 required by this part); and

20 ‘‘(2) research, demonstration, and special

21 projects of regional or national significance relating

22 to the operation of State programs under this

23 part.’’.

24 (b) OPERATION OF FEDERAL PARENT LOCATOR

25 SERVICE.—Section 453 (42 U.S.C. 653), as amended by
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1 section 716(e) of this Act, is amended by adding at the

2 end the following:

3 ‘‘(n) Out of any money in the Treasury of the United

4 States not otherwise appropriated, there is hereby appro5 priated to the Secretary for each fiscal year an amount

6 equal to 2 percent of the total amount paid to the Federal

7 Government pursuant to section 457(a) during the imme8 diately preceding fiscal year (as determined on the basis

9 of the most recent reliable data available to the Secretary

10 as of the end of the 3rd calendar quarter following the

11 end of such preceding fiscal year), to cover costs incurred

12 by the Secretary for operation of the Federal Parent Loca13 tor Service under this section, to the extent such costs are

14 not recovered through user fees.’’.

15 SEC. 747. REPORTS AND DATA COLLECTION BY THE SEC16 RETARY.

17 (a) ANNUAL REPORT TO CONGRESS.—

18 (1) Section 452(a)(10)(A) (42 U.S.C.

19 652(a)(10)(A)) is amended—

20 (A) by striking ‘‘this part;’’ and inserting

21 ‘‘this part, including—’’; and

22 (B) by adding at the end the following:

23 ‘‘(i) the total amount of child support

24 payments collected as a result of services
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1 furnished during the fiscal year to individ2 uals receiving services under this part;

3 ‘‘(ii) the cost to the States and to the

4 Federal Government of so furnishing the

5 services; and

6 ‘‘(iii) the number of cases involving

7 families—

8 ‘‘(I) who became ineligible for as9 sistance under State programs funded

10 under part A during a month in the

11 fiscal year; and

12 ‘‘(II) with respect to whom a

13 child support payment was received in

14 the month;’’.

15 (2) Section 452(a)(10)(C) (42 U.S.C.

16 652(a)(10)(C)) is amended—

17 (A) in the matter preceding clause (i)—

18 (i) by striking ‘‘with the data required

19 under each clause being separately stated

20 for cases’’ and inserting ‘‘separately stated

21 for (1) cases’’;

22 (ii) by striking ‘‘cases where the child

23 was formerly receiving’’ and inserting ‘‘or

24 formerly received’’;
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1 (iii) by inserting ‘‘or 1912’’ after

2 ‘‘471(a)(17)’’; and

3 (iv) by inserting ‘‘(2)’’ before ‘‘all

4 other’’;

5 (B) in each of clauses (i) and (ii), by strik6 ing ‘‘, and the total amount of such obliga7 tions’’;

8 (C) in clause (iii), by striking ‘‘described

9 in’’ and all that follows and inserting ‘‘in which

10 support was collected during the fiscal year;’’;

11 (D) by striking clause (iv);

12 (E) by redesignating clause (v) as clause

13 (vii), and inserting after clause (iii) the follow14 ing:

15 ‘‘(iv) the total amount of support col16 lected during such fiscal year and distrib17 uted as current support;

18 ‘‘(v) the total amount of support col19 lected during such fiscal year and distrib20 uted as arrearages;

21 ‘‘(vi) the total amount of support due

22 and unpaid for all fiscal years; and’’.

23 (3) Section 452(a)(10)(G) (42 U.S.C.

24 652(a)(10)(G)) is amended by striking ‘‘on the use

25 of Federal courts and’’.
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1 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

2 is amended by striking all that follows subparagraph

3 (I).

4 (b) EFFECTIVE DATE.—The amendments made by

5 subsection (a) shall be effective with respect to fiscal year

6 1996 and succeeding fiscal years.

7 Subtitle F—Establishment and

8 Modification of Support Orders

9 SEC. 751. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST10 MENT OF CHILD SUPPORT ORDERS.

11 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend12 ed to read as follows:

13 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

14 ORDERS.—Procedures under which the State shall

15 review and adjust each support order being enforced

16 under this part. Such procedures shall provide the

17 following:

18 ‘‘(A) The State shall review and, as appro19 priate, adjust the support order every 3 years,

20 taking into account the best interests of the

21 child involved.

22 ‘‘(B)(i) The State may elect to review and,

23 if appropriate, adjust an order pursuant to sub24 paragraph (A) by—
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1 ‘‘(I) reviewing and, if appropriate, ad2 justing the order in accordance with the

3 guidelines established pursuant to section

4 467(a) if the amount of the child support

5 award under the order differs from the

6 amount that would be awarded in accord7 ance with the guidelines; or

8 ‘‘(II) applying a cost-of-living adjust9 ment to the order in accordance with a for10 mula developed by the State and permit ei11 ther party to contest the adjustment, with12 in 30 days after the date of the notice of

13 the adjustment, by making a request for

14 review and, if appropriate, adjustment of

15 the order in accordance with the child sup16 port guidelines established pursuant to sec17 tion 467(a).

18 ‘‘(ii) Any adjustment under clause (i) shall

19 be made without a requirement for proof or

20 showing of a change in circumstances.

21 ‘‘(C) The State may use automated meth22 ods (including automated comparisons with

23 wage or State income tax data) to identify or24 ders eligible for review, conduct the review,

25 identify orders eligible for adjustment, apply
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1 the appropriate adjustment to the orders eligi2 ble for adjustment under the threshold estab3 lished by the State.

4 ‘‘(D) The State shall, at the request of ei5 ther parent subject to such an order or of any

6 State child support enforcement agency, review

7 and, if appropriate, adjust the order in accord8 ance with the guidelines established pursuant to

9 section 467(a) based upon a substantial change

10 in the circumstances of either parent.

11 ‘‘(E) The State shall provide notice to the

12 parents subject to such an order informing

13 them of their right to request the State to re14 view and, if appropriate, adjust the order pur15 suant to subparagraph (D). The notice may be

16 included in the order.’’.

17 SEC. 752. FURNISHING CONSUMER REPORTS FOR CERTAIN

18 PURPOSES RELATING TO CHILD SUPPORT.

19 Section 604 of the Fair Credit Reporting Act (15

20 U.S.C. 1681b) is amended by adding at the end the follow21 ing:

22 ‘‘(4) In response to a request by the head of a

23 State or local child support enforcement agency (or

24 a State or local government official authorized by

25 the head of such an agency), if the person making
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1 the request certifies to the consumer reporting agen2 cy that—

3 ‘‘(A) the consumer report is needed for the

4 purpose of establishing an individual’s capacity

5 to make child support payments or determining

6 the appropriate level of such payments;

7 ‘‘(B) the person has provided at least 10

8 days prior notice to the consumer whose report

9 is requested, by certified or registered mail to

10 the last known address of the consumer, that

11 the report will be requested, and

12 ‘‘(C) the consumer report will be kept con13 fidential, will be used solely for a purpose de14 scribed in subparagraph (A), and will not be

15 used in connection with any other civil, admin16 istrative, or criminal proceeding, or for any

17 other purpose.

18 ‘‘(5) To an agency administering a State plan

19 under section 454 of the Social Security Act (42

20 U.S.C. 654) for use to set an initial or modified

21 child support award.’’.
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1 Subtitle G—Enforcement of

2 Support Orders

3 SEC. 761. FEDERAL INCOME TAX REFUND OFFSET.

4 (a) CHANGED ORDER OF REFUND DISTRIBUTION

5 UNDER INTERNAL REVENUE CODE.—

6 (1) Subsection (c) of section 6402 of the Inter7 nal Revenue Code of 1986 is amended by striking

8 the third sentence and inserting the following new

9 sentences: ‘‘A reduction under this subsection shall

10 be after any other reduction allowed by subsection

11 (d) with respect to the Department of Health and

12 Human Services and the Department of Education

13 with respect to a student loan and before any other

14 reduction allowed by law and before such overpay15 ment is credited to the future liability for tax of

16 such person pursuant to subsection (b). A reduction

17 under this subsection shall be assigned to the State

18 with respect to past-due support owed to individuals

19 for periods such individuals were receiving assistance

20 under part A or B of title IV of the Social Security

21 Act only after satisfying all other past-due sup22 port.’’.

23 (2) Paragraph (2) of section 6402(d) of such

24 Code is amended—
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1 (A) by striking ‘‘Any overpayment’’ and in2 serting ‘‘Except in the case of past-due legally

3 enforceable debts owed to the Department of

4 Health and Human Services or to the Depart5 ment of Education with respect to a student

6 loan, any overpayment’’; and

7 (B) by striking ‘‘with respect to past-due

8 support collected pursuant to an assignment

9 under section 402(a)(26) of the Social Security

10 Act’’.

11 (b) ELIMINATION OF DISPARITIES IN TREATMENT

12 OF ASSIGNED AND NON-ASSIGNED ARREARAGES.—

13 (1) Section 464(a) (42 U.S.C. 664(a)) is

14 amended—

15 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

16 OFFSET AUTHORIZED.—’’;

17 (B) in paragraph (1)—

18 (i) in the 1st sentence, by striking

19 ‘‘which has been assigned to such State

20 pursuant to section 402(a)(26) or section

21 471(a)(17)’’; and

22 (ii) in the 2nd sentence, by striking

23 ‘‘in accordance with section 457(b)(4) or

24 (d)(3)’’ and inserting ‘‘as provided in para25 graph (2)’’;
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1 (C) by striking paragraph (2) and insert2 ing the following:

3 ‘‘(2) The State agency shall distribute amounts paid

4 by the Secretary of the Treasury pursuant to paragraph

5 (1)—

6 ‘‘(A) in accordance with section 457(a), in the

7 case of past-due support assigned to a State pursu8 ant to requirements imposed pursuant to section

9 405(a)(8); and

10 ‘‘(B) to or on behalf of the child to whom the

11 support was owed, in the case of past-due support

12 not so assigned.’’; and

13 (D) in paragraph (3)—

14 (i) by striking ‘‘or (2)’’ each place

15 such term appears; and

16 (ii) in subparagraph (B), by striking

17 ‘‘under paragraph (2)’’ and inserting ‘‘on

18 account of past-due support described in

19 paragraph (2)(B)’’.

20 (2) Section 464(b) (42 U.S.C. 664(b)) is

21 amended—

22 (A) by striking ‘‘(b)(1)’’ and inserting the

23 following:

24 ‘‘(b) REGULATIONS.—’’; and

25 (B) by striking paragraph (2).
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1 (3) Section 464(c) (42 U.S.C. 664(c)) is

2 amended—

3 (A) by striking ‘‘(c)(1) Except as provided

4 in paragraph (2), as’’ and inserting the follow5 ing:

6 ‘‘(c) DEFINITION.—As’’; and

7 (B) by striking paragraphs (2) and (3).

8 SEC. 762. AUTHORITY TO COLLECT SUPPORT FROM FED9 ERAL EMPLOYEES.

10 (a) CONSOLIDATION AND STREAMLINING OF AU11 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

12 read as follows:

13 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

14 WITHHOLDING, GARNISHMENT, AND SIMILAR

15 PROCEEDINGS FOR ENFORCEMENT OF CHILD

16 SUPPORT AND ALIMONY OBLIGATIONS.

17 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not18 withstanding any other provision of law (including section

19 207 of this Act and section 5301 of title 38, United States

20 Code), effective January 1, 1975, moneys (the entitlement

21 to which is based upon remuneration for employment) due

22 from, or payable by, the United States or the District of

23 Columbia (including any agency, subdivision, or instru24 mentality thereof) to any individual, including members

25 of the Armed Forces of the United States, shall be subject,
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1 in like manner and to the same extent as if the United

2 States or the District of Columbia were a private person,

3 to withholding in accordance with State law enacted pur4 suant to subsections (a)(1) and (b) of section 466 and reg5 ulations of the Secretary under such subsections, and to

6 any other legal process brought, by a State agency admin7 istering a program under a State plan approved under this

8 part or by an individual obligee, to enforce the legal obliga9 tion of the individual to provide child support or alimony.

10 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

11 PRIVATE PERSON.—With respect to notice to withhold in12 come pursuant to subsection (a)(1) or (b) of section 466,

13 or any other order or process to enforce support obliga14 tions against an individual (if the order or process con15 tains or is accompanied by sufficient data to permit

16 prompt identification of the individual and the moneys in17 volved), each governmental entity specified in subsection

18 (a) shall be subject to the same requirements as would

19 apply if the entity were a private person, except as other20 wise provided in this section.

21 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

22 OR PROCESS—

23 ‘‘(1) DESIGNATION OF AGENT.—The head of

24 each agency subject to this section shall—
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1 ‘‘(A) designate an agent or agents to re2 ceive orders and accept service of process in

3 matters relating to child support or alimony;

4 and

5 ‘‘(B) annually publish in the Federal Reg6 ister the designation of the agent or agents,

7 identified by title or position, mailing address,

8 and telephone number.

9 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

10 agent designated pursuant to paragraph (1) of this

11 subsection receives notice pursuant to State proce12 dures in effect pursuant to subsection (a)(1) or (b)

13 of section 466, or is effectively served with any

14 order, process, or interrogatory, with respect to an

15 individual’s child support or alimony payment obli16 gations, the agent shall—

17 ‘‘(A) as soon as possible (but not later

18 than 15 days) thereafter, send written notice of

19 the notice or service (together with a copy of

20 the notice or service) to the individual at the

21 duty station or last-known home address of the

22 individual;

23 ‘‘(B) within 30 days (or such longer period

24 as may be prescribed by applicable State law)

25 after receipt of a notice pursuant to such State
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1 procedures, comply with all applicable provi2 sions of section 466; and

3 ‘‘(C) within 30 days (or such longer period

4 as may be prescribed by applicable State law)

5 after effective service of any other such order,

6 process, or interrogatory, respond to the order,

7 process, or interrogatory.

8 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

9 specified in subsection (a) receives notice or is served with

10 process, as provided in this section, concerning amounts

11 owed by an individual to more than 1 person—

12 ‘‘(1) support collection under section 466(b)

13 must be given priority over any other process, as

14 provided in section 466(b)(7);

15 ‘‘(2) allocation of moneys due or payable to an

16 individual among claimants under section 466(b)

17 shall be governed by section 466(b) and the regula18 tions prescribed under such section; and

19 ‘‘(3) such moneys as remain after compliance

20 with subparagraphs (A) and (B) shall be available to

21 satisfy any other such processes on a first-come,

22 first-served basis, with any such process being satis23 fied out of such moneys as remain after the satisfac24 tion of all such processes which have been previously

25 served.
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1 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

2 governmental entity that is affected by legal process

3 served for the enforcement of an individual’s child support

4 or alimony payment obligations shall not be required to

5 vary its normal pay and disbursement cycle in order to

6 comply with the legal process.

7 ‘‘(f) RELIEF FROM LIABILITY.—

8 ‘‘(1) Neither the United States, nor the govern9 ment of the District of Columbia, nor any disbursing

10 officer shall be liable with respect to any payment

11 made from moneys due or payable from the United

12 States to any individual pursuant to legal process

13 regular on its face, if the payment is made in ac14 cordance with this section and the regulations issued

15 to carry out this section.

16 ‘‘(2) No Federal employee whose duties include

17 taking actions necessary to comply with the require18 ments of subsection (a) with regard to any individ19 ual shall be subject under any law to any discipli20 nary action or civil or criminal liability or penalty

21 for, or on account of, any disclosure of information

22 made by the employee in connection with the carry23 ing out of such actions.

24 ‘‘(g) REGULATIONS.—Authority to promulgate regu25 lations for the implementation of this section shall, insofar
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1 as this section applies to moneys due from (or payable

2 by)—

3 ‘‘(1) the United States (other than the legisla4 tive or judicial branches of the Federal Government)

5 or the government of the District of Columbia, be

6 vested in the President (or the designee of the Presi7 dent);

8 ‘‘(2) the legislative branch of the Federal Gov9 ernment, be vested jointly in the President pro tem10 pore of the Senate and the Speaker of the House of

11 Representatives (or their designees), and

12 ‘‘(3) the judicial branch of the Federal Govern13 ment, be vested in the Chief Justice of the United

14 States (or the designee of the Chief Justice).

15 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

17 moneys paid or payable to an individual which are

18 considered to be based upon remuneration for em19 ployment, for purposes of this section—

20 ‘‘(A) consist of—

21 ‘‘(i) compensation paid or payable for

22 personal services of the individual, whether

23 the compensation is denominated as wages,

24 salary, commission, bonus, pay, allowances,
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1 or otherwise (including severance pay, sick

2 pay, and incentive pay);

3 ‘‘(ii) periodic benefits (including a

4 periodic benefit as defined in section

5 228(h)(3)) or other payments—

6 ‘‘(I) under the insurance system

7 established by title II;

8 ‘‘(II) under any other system or

9 fund established by the United States

10 which provides for the payment of

11 pensions, retirement or retired pay,

12 annuities, dependents’ or survivors’

13 benefits, or similar amounts payable

14 on account of personal services per15 formed by the individual or any other

16 individual;

17 ‘‘(III) as compensation for death

18 under any Federal program;

19 ‘‘(IV) under any Federal pro20 gram established to provide ‘black

21 lung’ benefits; or

22 ‘‘(V) by the Secretary of Veter23 ans Affairs as pension, or as com24 pensation for a service-connected dis25 ability or death (except any compensa-
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1 tion paid by the Secretary to a mem2 ber of the Armed Forces who is in re3 ceipt of retired or retainer pay if the

4 member has waived a portion of the

5 retired pay of the member in order to

6 receive the compensation); and

7 ‘‘(iii) worker’s compensation benefits

8 paid under Federal or State law but

9 ‘‘(B) do not include any payment—

10 ‘‘(i) by way of reimbursement or oth11 erwise, to defray expenses incurred by the

12 individual in carrying out duties associated

13 with the employment of the individual; or

14 ‘‘(ii) as allowances for members of the

15 uniformed services payable pursuant to

16 chapter 7 of title 37, United States Code,

17 as prescribed by the Secretaries concerned

18 (defined by section 101(5) of such title) as

19 necessary for the efficient performance of

20 duty.

21 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter22 mining the amount of any moneys due from, or pay23 able by, the United States to any individual, there

24 shall be excluded amounts which—
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1 ‘‘(A) are owed by the individual to the

2 United States;

3 ‘‘(B) are required by law to be, and are,

4 deducted from the remuneration or other pay5 ment involved, including Federal employment

6 taxes, and fines and forfeitures ordered by

7 court-martial;

8 ‘‘(C) are properly withheld for Federal,

9 State, or local income tax purposes, if the with10 holding of the amounts is authorized or re11 quired by law and if amounts withheld are not

12 greater than would be the case if the individual

13 claimed all dependents to which he was entitled

14 (the withholding of additional amounts pursu15 ant to section 3402(i) of the Internal Revenue

16 Code of 1986 may be permitted only when the

17 individual presents evidence of a tax obligation

18 which supports the additional withholding);

19 ‘‘(D) are deducted as health insurance pre20 miums;

21 ‘‘(E) are deducted as normal retirement

22 contributions (not including amounts deducted

23 for supplementary coverage); or

24 ‘‘(F) are deducted as normal life insurance

25 premiums from salary or other remuneration
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1 for employment (not including amounts de2 ducted for supplementary coverage).

3 ‘‘(i) DEFINITIONS.—As used in this section:

4 ‘‘(1) UNITED STATES.—The term ‘United

5 States’ includes any department, agency, or instru6 mentality of the legislative, judicial, or executive

7 branch of the Federal Government, the United

8 States Postal Service, the Postal Rate Commission,

9 any Federal corporation created by an Act of Con10 gress that is wholly owned by the Federal Govern11 ment, and the governments of the territories and

12 possessions of the United States.

13 ‘‘(2) CHILD SUPPORT.—The term ‘child sup14 port’, when used in reference to the legal obligations

15 of an individual to provide such support, means peri16 odic payments of funds for the support and mainte17 nance of a child or children with respect to which

18 the individual has such an obligation, and (subject

19 to and in accordance with State law) includes pay20 ments to provide for health care, education, recre21 ation, clothing, or to meet other specific needs of

22 such a child or children, and includes attorney’s

23 fees, interest, and court costs, when and to the ex24 tent that the same are expressly made recoverable as

25 such pursuant to a decree, order, or judgment issued
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1 in accordance with applicable State law by a court

2 of competent jurisdiction.

3 ‘‘(3) ALIMONY.—The term ‘alimony’, when used

4 in reference to the legal obligations of an individual

5 to provide the same, means periodic payments of

6 funds for the support and maintenance of the spouse

7 (or former spouse) of the individual, and (subject to

8 and in accordance with State law) includes separate

9 maintenance, alimony pendente lite, maintenance,

10 and spousal support, and includes attorney’s fees,

11 interest, and court costs when and to the extent that

12 the same are expressly made recoverable as such

13 pursuant to a decree, order, or judgment issued in

14 accordance with applicable State law by a court of

15 competent jurisdiction. Such term does not include

16 any payment or transfer of property or its value by

17 an individual to the spouse or a former spouse of the

18 individual in compliance with any community prop19 erty settlement, equitable distribution of property, or

20 other division of property between spouses or former

21 spouses.

22 ‘‘(4) PRIVATE PERSON.—The term ‘private per23 son’ means a person who does not have sovereign or

24 other special immunity or privilege which causes the

25 person not to be subject to legal process.
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1 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc2 ess’ means any writ, order, summons, or other simi3 lar process in the nature of garnishment—

4 ‘‘(A) which is issued by—

5 ‘‘(i) a court of competent jurisdiction

6 in any State, territory, or possession of the

7 United States;

8 ‘‘(ii) a court of competent jurisdiction

9 in any foreign country with which the

10 United States has entered into an agree11 ment which requires the United States to

12 honor the process; or

13 ‘‘(iii) an authorized official pursuant

14 to an order of such a court of competent

15 jurisdiction or pursuant to State or local

16 law; and

17 ‘‘(B) which is directed to, and the purpose

18 of which is to compel, a governmental entity

19 which holds moneys which are otherwise pay20 able to an individual to make a payment from

21 the moneys to another party in order to satisfy

22 a legal obligation of the individual to provide

23 child support or make alimony payments.’’.

24 (b) CONFORMING AMENDMENTS.—
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1 (1) TO PART D OF TITLE IV.—Sections 461 and

2 462 (42 U.S.C. 661 and 662) are repealed.

3 (2) TO TITLE 5, UNITED STATES CODE.—Sec4 tion 5520a of title 5, United States Code, is amend5 ed, in subsections (h)(2) and (i), by striking ‘‘sec6 tions 459, 461, and 462 of the Social Security Act

7 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec8 tion 459 of the Social Security Act (42 U.S.C.

9 659)’’.

10 (c) MILITARY RETIRED AND RETAINER PAY.—

11 (1) DEFINITION OF COURT.—Section

12 1408(a)(1) of title 10, United States Code, is

13 amended—

14 (A) by striking ‘‘and’’ at the end of sub15 paragraph (B);

16 (B) by striking the period at the end of

17 subparagraph (C) and inserting ‘‘; and’’; and

18 (C) by adding after subparagraph (C) the

19 following:

20 ‘‘(D) any administrative or judicial tribu21 nal of a State competent to enter orders for

22 support or maintenance (including a State

23 agency administering a program under a State

24 plan approved under part D of title IV of the

25 Social Security Act), and, for purposes of this
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1 subparagraph, the term ‘State’ includes the

2 District of Columbia, the Commonwealth of

3 Puerto Rico, the Virgin Islands, Guam, and

4 American Samoa.’’.

5 (2) DEFINITION OF COURT ORDER.—Section

6 1408(a)(2) of such title is amended by inserting ‘‘or

7 a court order for the payment of child support not

8 included in or accompanied by such a decree or set9 tlement,’’ before ‘‘which—’’.

10 (3) PUBLIC PAYEE.—Section 1408(d) of such

11 title is amended—

12 (A) in the heading, by inserting ‘‘(OR FOR

13 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

14 (B) in paragraph (1), in the first sentence,

15 by inserting ‘‘(or for the benefit of such spouse

16 or former spouse to a State disbursement unit

17 established pursuant to section 454B of the So18 cial Security Act or other public payee des19 ignated by a State, in accordance with part D

20 of title IV of the Social Security Act, as di21 rected by court order, or as otherwise directed

22 in accordance with such part D)’’ before ‘‘in an

23 amount sufficient’’.
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1 (4) RELATIONSHIP TO PART D OF TITLE IV.—

2 Section 1408 of such title is amended by adding at

3 the end the following:

4 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

5 involving an order providing for payment of child support

6 (as defined in section 459(i)(2) of the Social Security Act)

7 by a member who has never been married to the other

8 parent of the child, the provisions of this section shall not

9 apply, and the case shall be subject to the provisions of

10 section 459 of such Act.’’.

11 (d) EFFECTIVE DATE.—The amendments made by

12 this section shall become effective 6 months after the date

13 of the enactment of this Act.

14 SEC. 763. ENFORCEMENT OF CHILD SUPPORT OBLIGA15 TIONS OF MEMBERS OF THE ARMED FORCES.

16 (a) AVAILABILITY OF LOCATOR INFORMATION.—

17 (1) MAINTENANCE OF ADDRESS INFORMA18 TION.—The Secretary of Defense shall establish a

19 centralized personnel locator service that includes

20 the address of each member of the Armed Forces

21 under the jurisdiction of the Secretary. Upon re22 quest of the Secretary of Transportation, addresses

23 for members of the Coast Guard shall be included in

24 the centralized personnel locator service.

25 (2) TYPE OF ADDRESS.—
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1 (A) RESIDENTIAL ADDRESS.—Except as

2 provided in subparagraph (B), the address for

3 a member of the Armed Forces shown in the lo4 cator service shall be the residential address of

5 that member.

6 (B) DUTY ADDRESS.—The address for a

7 member of the Armed Forces shown in the loca8 tor service shall be the duty address of that

9 member in the case of a member—

10 (i) who is permanently assigned over11 seas, to a vessel, or to a routinely

12 deployable unit; or

13 (ii) with respect to whom the Sec14 retary concerned makes a determination

15 that the member’s residential address

16 should not be disclosed due to national se17 curity or safety concerns.

18 (3) UPDATING OF LOCATOR INFORMATION.—

19 Within 30 days after a member listed in the locator

20 service establishes a new residential address (or a

21 new duty address, in the case of a member covered

22 by paragraph (2)(B)), the Secretary concerned shall

23 update the locator service to indicate the new ad24 dress of the member.
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1 (4) AVAILABILITY OF INFORMATION.—The Sec2 retary of Defense shall make information regarding

3 the address of a member of the Armed Forces listed

4 in the locator service available, on request, to the

5 Federal Parent Locator Service established under

6 section 453 of the Social Security Act.

7 (b) FACILITATING GRANTING OF LEAVE FOR AT8 TENDANCE AT HEARINGS.—

9 (1) REGULATIONS.—The Secretary of each

10 military department, and the Secretary of Transpor11 tation with respect to the Coast Guard when it is

12 not operating as a service in the Navy, shall pre13 scribe regulations to facilitate the granting of leave

14 to a member of the Armed Forces under the juris15 diction of that Secretary in a case in which—

16 (A) the leave is needed for the member to

17 attend a hearing described in paragraph (2);

18 (B) the member is not serving in or with

19 a unit deployed in a contingency operation (as

20 defined in section 101 of title 10, United States

21 Code); and

22 (C) the exigencies of military service (as

23 determined by the Secretary concerned) do not

24 otherwise require that such leave not be grant25 ed.
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1 (2) COVERED HEARINGS.—Paragraph (1) ap2 plies to a hearing that is conducted by a court or

3 pursuant to an administrative process established

4 under State law, in connection with a civil action—

5 (A) to determine whether a member of the

6 Armed Forces is a natural parent of a child; or

7 (B) to determine an obligation of a mem8 ber of the Armed Forces to provide child sup9 port.

10 (3) DEFINITIONS.—For purposes of this sub11 section:

12 (A) The term ‘‘court’’ has the meaning

13 given that term in section 1408(a) of title 10,

14 United States Code.

15 (B) The term ‘‘child support’’ has the

16 meaning given such term in section 459(i) of

17 the Social Security Act (42 U.S.C. 659(i)).

18 (c) PAYMENT OF MILITARY RETIRED PAY IN COM19 PLIANCE WITH CHILD SUPPORT ORDERS.—

20 (1) DATE OF CERTIFICATION OF COURT

21 ORDER.—Section 1408 of title 10, United States

22 Code, as amended by section 762(c)(4) of this Act,

23 is amended—

24 (A) by redesignating subsections (i) and (j)

25 as subsections (j) and (k), respectively; and
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1 (B) by inserting after subsection (h) the

2 following:

3 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

4 the date of a certification of the authenticity or complete5 ness of a copy of a court order for child support received

6 by the Secretary concerned for the purposes of this section

7 be recent in relation to the date of receipt by the Sec8 retary.’’.

9 (2) PAYMENTS CONSISTENT WITH ASSIGN10 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

11 of such title is amended by inserting after the 1st

12 sentence the following: ‘‘In the case of a spouse or

13 former spouse who, pursuant to section 405(a)(8) of

14 the Social Security Act (42 U.S.C. 605(a)(8)), as15 signs to a State the rights of the spouse or former

16 spouse to receive support, the Secretary concerned

17 may make the child support payments referred to in

18 the preceding sentence to that State in amounts con19 sistent with that assignment of rights.’’.

20 (3) ARREARAGES OWED BY MEMBERS OF THE

21 UNIFORMED SERVICES.—Section 1408(d) of such

22 title is amended by adding at the end the following:

23 ‘‘(6) In the case of a court order for which effective

24 service is made on the Secretary concerned on or after

25 the date of the enactment of this paragraph and which
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1 provides for payments from the disposable retired pay of

2 a member to satisy the amount of child support set forth

3 in the order, the authority provided in paragraph (1) to

4 make payments from the disposable retired pay of a mem5 ber to satisy the amount of child support set forth in a

6 court order shall apply to payment of any amount of child

7 support arrearages set forth in that order as well as to

8 amounts of child support that currently become due.’’.

9 (4) PAYROLL DEDUCTIONS.—The Secretary of

10 Defense shall begin payroll deductions within 30

11 days after receiving notice of withholding, or for the

12 first pay period that begins after such 30-day pe13 riod.

14 SEC. 764. VOIDING OF FRAUDULENT TRANSFERS.

15 Section 466 (42 U.S.C. 666), as amended by section

16 721 of this Act, is amended by adding at the end the

17 following:

18 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

19 order to satisfy section 454(20)(A), each State must have

20 in effect—

21 ‘‘(1)(A) the Uniform Fraudulent Conveyance

22 Act of 1981;

23 ‘‘(B) the Uniform Fraudulent Transfer Act

24 of 1984; or
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1 ‘‘(C) another law, specifying indicia of

2 fraud which create a prima facie case that a

3 debtor transferred income or property to avoid

4 payment to a child support creditor, which the

5 Secretary finds affords comparable rights to

6 child support creditors; and

7 ‘‘(2) procedures under which, in any case in

8 which the State knows of a transfer by a child sup9 port debtor with respect to which such a prima facie

10 case is established, the State must—

11 ‘‘(A) seek to void such transfer; or

12 ‘‘(B) obtain a settlement in the best inter13 ests of the child support creditor.’’.

14 SEC. 765. SENSE OF THE CONGRESS THAT STATES SHOULD

15 SUSPEND DRIVERS’, BUSINESS, AND OCCUPA16 TIONAL LICENSES OF PERSONS OWING PAST17 DUE CHILD SUPPORT.

18 It is the sense of the Congress that each State should

19 suspend any driver’s license, business license, or occupa20 tional license issued to any person who owes past-due child

21 support.

22 SEC. 766. WORK REQUIREMENT FOR PERSONS OWING

23 PAST-DUE CHILD SUPPORT.

24 Section 466(a) of the Social Security Act (42 U.S.C.

25 666(a)), as amended by sections 701(a), 715, 717(a), and
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1 723 of this Act, is amended by adding at the end the

2 following:

3 ‘‘(16) PROCEDURES TO ENSURE THAT PERSONS

4 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

5 FOR PAYMENT OF SUCH SUPPORT.—

6 ‘‘(A) Procedures requiring the State, in

7 any case in which an individual owes past-due

8 support with respect to a child receiving assist9 ance under a State program funded under part

10 A, to seek a court order that requires the indi11 vidual to—

12 ‘‘(i) pay such support in accordance

13 with a plan approved by the court; or

14 ‘‘(ii) if the individual is subject to

15 such a plan and is not incapacitated, par16 ticipate in such work activities (as defined

17 in section 404(b)(1)) as the court deems

18 appropriate.

19 ‘‘(B) As used in subparagraph (A), the

20 term ‘past-due support’ means the amount of a

21 delinquency, determined under a court order, or

22 an order of an administrative process estab23 lished under State law, for support and mainte24 nance of a child, or of a child and the parent

25 with whom the child is living.’’.
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1 SEC. 767. DEFINITION OF SUPPORT ORDER.

2 Section 453 (42 U.S.C. 653) as amended by sections

3 716 and 746(b) of this Act, is amended by adding at the

4 end the following:

5 ‘‘(o) SUPPORT ORDER DEFINED.—As used in this

6 part, the term ‘support order’ means an order issued by

7 a court or an administrative process established under

8 State law that requires support and maintenance of a child

9 or of a child and the parent with whom the child is liv10 ing.’’.

11 Subtitle H—Medical Support

12 SEC. 771. TECHNICAL CORRECTION TO ERISA DEFINITION

13 OF MEDICAL CHILD SUPPORT ORDER.

14 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em15 ployee Retirement Income Security Act of 1974 (29

16 U.S.C. 1169(a)(2)(B)) is amended—

17 (1) by striking ‘‘issued by a court of competent

18 jurisdiction’’;

19 (2) by striking the period at the end of clause

20 (ii) and inserting a comma; and

21 (3) by adding, after and below clause (ii), the

22 following:

23 ‘‘if such judgment, decree, or order (I) is issued

24 by a court of competent jurisdiction or (II) is

25 issued by an administrative adjudicator and has
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1 the force and effect of law under applicable

2 State law.’’.

3 (b) EFFECTIVE DATE.—

4 (1) IN GENERAL.—The amendments made by

5 this section shall take effect on the date of the en6 actment of this Act.

7 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

8 JANUARY 1, 1996.—Any amendment to a plan re9 quired to be made by an amendment made by this

10 section shall not be required to be made before the

11 first plan year beginning on or after January 1,

12 1996, if—

13 (A) during the period after the date before

14 the date of the enactment of this Act and be15 fore such first plan year, the plan is operated

16 in accordance with the requirements of the

17 amendments made by this section; and

18 (B) such plan amendment applies retro19 actively to the period after the date before the

20 date of the enactment of this Act and before

21 such first plan year.

22 A plan shall not be treated as failing to be operated

23 in accordance with the provisions of the plan merely

24 because it operates in accordance with this para25 graph.
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1 Subtitle I—Enhancing Responsibil2 ity and Opportunity for Non3 residential Parents

4 SEC. 781. GRANTS TO STATES FOR ACCESS AND VISITATION

5 PROGRAMS.

6 Part D of title IV (42 U.S.C. 651–669) is amended

7 by adding at the end the following:

8 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA9 TION PROGRAMS.

10 ‘‘(a) IN GENERAL.—The Administration for Children

11 and Families shall make grants under this section to en12 able States to establish and administer programs to sup13 port and facilitate absent parents’ access to and visitation

14 of their children, by means of activities including medi15 ation (both voluntary and mandatory), counseling, edu16 cation, development of parenting plans, visitation enforce17 ment (including monitoring, supervision and neutral drop18 off and pickup), and development of guidelines for visita19 tion and alternative custody arrangements.

20 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

21 to be made to a State under this section for a fiscal year

22 shall be an amount equal to the lesser of—

23 ‘‘(1) 90 percent of State expenditures during

24 the fiscal year for activities described in subsection

25 (a); or
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1 ‘‘(2) the allotment of the State under sub2 section (c) for the fiscal year.

3 ‘‘(c) ALLOTMENTS TO STATES.—

4 ‘‘(1) IN GENERAL.—The allotment of a State

5 for a fiscal year is the amount that bears the same

6 ratio to the amount appropriated for grants under

7 this section for the fiscal year as the number of chil8 dren in the State living with only 1 biological parent

9 bears to the total number of such children in all

10 States.

11 ‘‘(2) MINIMUM ALLOTMENT.—The Administra12 tion for Children and Families shall adjust allot13 ments to States under paragraph (1) as necessary to

14 ensure that no State is allotted less than—

15 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

16 or

17 ‘‘(B) $100,000 for any succeeding fiscal

18 year.

19 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

20 FOR SIMILAR ACTIVITIES.—A State to which a grant is

21 made under this section may not use the grant to supplant

22 expenditures by the State for activities specified in sub23 section (a), but shall use the grant to supplement such

24 expenditures at a level at least equal to the level of such

25 expenditures for fiscal year 1995.
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1 ‘‘(e) STATE ADMINISTRATION.—Each State to which

2 a grant is made under this section—

3 ‘‘(1) may administer State programs funded

4 with the grant, directly or through grants to or con5 tracts with courts, local public agencies, or non-prof6 it private entities;

7 ‘‘(2) shall not be required to operate such pro8 grams on a statewide basis; and

9 ‘‘(3) shall monitor, evaluate, and report on such

10 programs in accordance with regulations prescribed

11 by the Secretary.’’.

12 Subtitle J—Effect of Enactment

13 SEC. 791. EFFECTIVE DATES.

14 (a) IN GENERAL.—Except as otherwise specifically

15 provided (but subject to subsections (b) and (c))—

16 (1) the provisions of this title requiring the en17 actment or amendment of State laws under section

18 466 of the Social Security Act, or revision of State

19 plans under section 454 of such Act, shall be effec20 tive with respect to periods beginning on and after

21 October 1, 1996; and

22 (2) all other provisions of this title shall become

23 effective upon enactment.
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1 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

2 provisions of this title shall become effective with respect

3 to a State on the later of—

4 (1) the date specified in this title, or

5 (2) the effective date of laws enacted by the leg6 islature of such State implementing such provisions,

7 but in no event later than the first day of the first cal8 endar quarter beginning after the close of the first regular

9 session of the State legislature that begins after the date

10 of the enactment of this Act. For purposes of the previous

11 sentence, in the case of a State that has a 2-year legisla12 tive session, each year of such session shall be deemed to

13 be a separate regular session of the State legislature.

14 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

15 AMENDMENT.—A State shall not be found out of compli16 ance with any requirement enacted by this title if the State

17 is unable to so comply without amending the State con18 stitution until the earlier of—

19 (1) 1 year after the effective date of the nec20 essary State constitutional amendment; or

21 (2) 5 years after the date of the enactment of

22 this title.
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1 TITLE VIII—MISCELLANEOUS

2 PROVISIONS

3 SEC. 801. SCORING.

4 (a) IN GENERAL.—None of the changes in direct

5 spending resulting from this Act shall be reflected in esti6 mates under section 252(d) of the Balanced Budget and

7 Emergency Deficit Control Act of 1985.

8 (b) TECHNICAL AMENDMENT.—Section 251(b)(2) of

9 the Balanced Budget and Emergency Deficit Control Act

10 of 1985 is amended by adding at the end the following

11 new subparagraph:

12 ‘‘(H) SPECIAL ALLOWANCE FOR WELFARE RE13 FORM.—For any fiscal year, the adjustments shall

14 be appropriations for discretionary programs result15 ing from the Personal Responsibility Act of 1995 (as

16 described in the joint explanatory statement accom17 panying a conference report on that Act) in discre18 tionary accounts and the outlays flowing in all years

19 from such appropriations (but not to exceed

20 amounts authorized for those programs by that Act

21 for that fiscal year) minus appropriations for com22 parable discretionary programs for fiscal year 1995

23 (as described in the joint explanatory statement ac24 companying a conference report on that Act.’’.
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1 SEC. 802. PROVISIONS TO ENCOURAGE ELECTRONIC BENE2 FIT TRANSFER SYSTEMS.

3 Section 904 of the Electronic Fund Transfer Act (15

4 U.S.C. 1693b) is amended—

5 (1) by striking ‘‘(d) In the event’’ and inserting

6 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS

7 OTHER THAN CERTAIN FINANCIAL INSTITU8 TIONS.—

9 ‘‘(1) IN GENERAL.—In the event’’; and

10 (2) by adding at the end the following new

11 paragraph:

12 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC13 TRONIC BENEFIT TRANSFER PROGRAMS.—

14 ‘‘(A) EXEMPTION GENERALLY.—The dis15 closures, protections, responsibilities, and rem16 edies established under this title, and any regu17 lation prescribed or order issued by the Board

18 in accordance with this title, shall not apply to

19 any electronic benefit transfer program estab20 lished under State or local law or administered

21 by a State or local government.

22 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

23 INTO RECIPIENT’S ACCOUNT.—Subparagraph

24 (A) shall not apply with respect to any elec25 tronic funds transfer under an electronic benefit

26 transfer program for deposits directly into a
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1 consumer account held by the recipient of the

2 benefit.

3 ‘‘(C) RULE OF CONSTRUCTION.—No provi4 sion of this paragraph may be construed as—

5 ‘‘(i) affecting or altering the protec6 tions otherwise applicable with respect to

7 benefits established by Federal, State, or

8 local law; or

9 ‘‘(ii) otherwise superseding the appli10 cation of any State or local law.

11 ‘‘(D) ELECTRONIC BENEFIT TRANSFER

12 PROGRAM DEFINED.—For purposes of this

13 paragraph, the term ‘electronic benefit transfer

14 program’—

15 ‘‘(i) means a program under which a

16 government agency distributes needs-tested

17 benefits by establishing accounts to be

18 accessed by recipients electronically, such

19 as through automated teller machines, or

20 point-of-sale terminals; and

21 ‘‘(ii) does not include employment-re22 lated payments, including salaries and pen23 sion, retirement, or unemployment benefits
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1 established by Federal, State, or local gov2 ernments.’’.

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