I

104TH CONGRESS

2D SESSION H. R. 2915

To enhance support and work opportunities for families with children, reduce

welfare dependence, and control welfare spending.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 31, 1996

Mr. HAYES introduced the following bill; which was referred to the Committee

on Ways and Means, and in addition to the Committees on Agriculture,

Economic and Educational Opportunities, Banking and Financial Services, Government Reform and Oversight, Commerce, the Judiciary, and

International Relations, 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 enhance support and work opportunities for families with

children, reduce welfare dependence, and control welfare

spending.

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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Work Opportunity Act of 1995’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 100. References to Social Security Act.

Sec. 101. Block grants to States.

Sec. 102. Services provided by charitable, religious, or private organizations.

Sec. 103. Limitations on use of funds for certain purposes.

Sec. 104. Continued application of current standards under medicaid program.

Sec. 105. Census data on grandparents as primary caregivers for their grandchildren.

Sec. 105A. Development of prototype of counterfeit-resistant social security

card required.

Sec. 106. Conforming amendments to the Social Security Act.

Sec. 107. Conforming amendments to the Food Stamp Act of 1977 and related

provisions.

Sec. 108. Conforming amendments to other laws.

Sec. 109. Study of effect of welfare reform on grandparents as primary

caregivers.

Sec. 110. Disclosure of receipt of Federal funds.

Sec. 110A. Modifications to the job opportunities for certain low-income individuals program.

Sec. 110B. Demonstration projects for school utilization.

Sec. 110C. Corrective compliance plan.

Sec. 110D. Parental responsibility contracts.

Sec. 110E. Corrective action plan.

Sec. 111. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 112. Effective date; transition rule.

TITLE II—SUPPLEMENTAL SECURITY INCOME

Subtitle A—Eligibility Restrictions

Sec. 201. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics.

Sec. 202. Limited eligibility of noncitizens for SSI benefits.

Sec. 203. Denial of SSI benefits for 10 years to individuals found to have

fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.

Sec. 204. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 205. Effective dates; application to current recipients.

Subtitle B—Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.

Sec. 212. Eligibility redeterminations and continuing disability reviews.

Sec. 213. Additional accountability requirements.

Subtitle C—Studies Regarding Supplemental Security Income Program

Sec. 221. Annual report on the supplemental security income program.

Sec. 222. Improvements to disability evaluation.

Sec. 223. Study of disability determination process.

Sec. 224. Study by General Accounting Office.
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Subtitle D—National Commission on the Future of Disability

Sec. 231. Establishment.

Sec. 232. Duties of the Commission.

Sec. 233. Membership.

Sec. 234. Staff and support services.

Sec. 235. Powers of Commission.

Sec. 236. Reports.

Sec. 237. Termination.

Subtitle E—State Supplementation Programs

Sec. 241. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Subtitle F—Retirement Age Eligibility

Sec. 251. Eligibility for supplemental security income benefits based on social

security retirement age.

TITLE III—FOOD STAMP PROGRAM

Subtitle A—Food Stamp Reform

Sec. 301. Declaration of policy.

Sec. 301A. Certification period.

Sec. 302. Treatment of children living at home.

Sec. 303. Optional additional criteria for separate household determinations.

Sec. 304. Adjustment of thrifty food plan.

Sec. 305. Definition of homeless individual.

Sec. 306. State options in regulations.

Sec. 307. Earnings of students.

Sec. 308. Energy assistance.

Sec. 309. Deductions from income.

Sec. 310. Amount of vehicle asset limitation.

Sec. 311. Benefits for aliens.

Sec. 312. Disqualification.

Sec. 313. Caretaker exemption.

Sec. 314. Employment and training.

Sec. 315. Comparable treatment for disqualification.

Sec. 316. Cooperation with child support agencies.

Sec. 317. Disqualification for child support arrears.

Sec. 318. Permanent disqualification for participating in 2 or more States.

Sec. 319. Work requirement.

Sec. 319A. Disqualification of fleeing felons.

Sec. 320. Electronic benefit transfers.

Sec. 321. Minimum benefit.

Sec. 322. Benefits on recertification.

Sec. 323. Optional combined allotment for expedited households.

Sec. 324. Failure to comply with other welfare and public assistance programs.

Sec. 325. Allotments for households residing in institutions.

Sec. 326. Operation of food stamp offices.

Sec. 327. State employee and training standards.

Sec. 328. Exchange of law enforcement information.

Sec. 329. Expedited coupon service.

Sec. 330. Fair hearings.

Sec. 331. Income and eligibility verification system.
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Sec. 332. Collection of overissuances.

Sec. 333. Termination of Federal match for optional information activities.

Sec. 334. Standards for administration.

Sec. 335. Work supplementation or support program.

Sec. 336. Waiver authority.

Sec. 337. Authorization of pilot projects.

Sec. 338. Response to waivers.

Sec. 339. Private sector employment initiatives.

Sec. 340. Reauthorization of appropriations.

Sec. 341. Reauthorization of Puerto Rico nutrition assistance program.

Sec. 342. Simplified food stamp program.

Sec. 343. Optional State food assistance block grant.

Sec. 344. Effective date.

Subtitle B—Anti-Fraud and Trafficking

Sec. 351. Expanded definition of coupon.

Sec. 352. Doubled penalties for violating food stamp program requirements.

Sec. 353. Authority to establish authorization periods.

Sec. 354. Specific period for prohibiting participation of stores based on lack

of business integrity.

Sec. 355. Information for verifying eligibility for authorization.

Sec. 356. Waiting period for stores that initially fail to meet authorization criteria.

Sec. 357. Bases for suspensions and disqualifications.

Sec. 358. Disqualification of stores pending judicial and administrative review.

Sec. 359. Disqualification of retailers who are disqualified under the WIC program.

Sec. 360. Permanent debarment of retailers who intentionally submit falsified

applications.

Sec. 361. Expanded criminal forfeiture for violations.

Sec. 362. Effective date.

TITLE IV—CHILD NUTRITION PROGRAMS

Subtitle A—Reimbursement Rates

Sec. 401. Termination of additional payment for lunches served in high free

and reduced price participation schools.

Sec. 402. Value of food assistance.

Sec. 403. Lunches, breakfasts, and supplements.

Sec. 404. Summer food service program for children.

Sec. 405. Special milk program.

Sec. 406. Free and reduced price breakfasts.

Sec. 407. Conforming reimbursement for paid breakfasts and lunches.

Subtitle B—Grant Programs

Sec. 411. School breakfast startup grants.

Sec. 412. Nutrition education and training programs.

Sec. 413. Effective date.

Subtitle C—Other Amendments

Sec. 421. Free and reduced price policy statement.

Sec. 422. Summer food service program for children.

Sec. 423. Child and adult care food program.
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Sec. 424. Reducing required reports to State agencies and schools.

Subtitle D—Reauthorization

Sec. 431. Commodity distribution program; commodity supplemental food program.

Sec. 432. Emergency food assistance program.

Sec. 433. Soup kitchens program.

Sec. 434. National commodity processing.

Sec. 435. Commodity supplemental food program.

TITLE V—NONCITIZENS

Sec. 501. State option to prohibit assistance for certain aliens.

Sec. 502. Deemed income requirement for Federal and federally funded programs.

Sec. 503. Requirements for sponsor’s affidavit of support.

Sec. 504. Limited eligibility of noncitizens for SSI benefits.

Sec. 505. Treatment of noncitizens.

Sec. 506. Information reporting.

Sec. 507. Prohibition on payment of Federal benefits to certain persons.

TITLE VI—CHILD CARE

Sec. 601. Short title.

Sec. 602. Amendments to the Child Care and Development Block Grant Act of

1990.

Sec. 603. Repeals and technical and conforming amendments.

TITLE VII—PROTECTION OF BATTERED INDIVIDUALS

Sec. 701. Exemption of battered individuals from certain requirements.

TITLE VIII—ADOPTION EXPENSES

Sec. 801. Refundable credit for adoption expenses.

Sec. 802. Exclusion of adoption assistance.

Sec. 803. Withdrawal from IRA for adoption expenses.

TITLE IX—CHILD SUPPORT

Sec. 900. Reference to Social Security Act.

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 901. State obligation to provide child support enforcement services.

Sec. 902. Distribution of child support collections.

Sec. 903. Rights to notification and hearings.

Sec. 904. Privacy safeguards.

Subtitle B—Locate and Case Tracking

Sec. 911. State case registry.

Sec. 912. Collection and disbursement of support payments.

Sec. 913. State directory of new hires.

Sec. 914. Amendments concerning income withholding.

Sec. 915. Locator information from interstate networks.

Sec. 916. Expansion of the Federal parent locator service.
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Sec. 917. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 921. Adoption of uniform State laws.

Sec. 922. Improvements to full faith and credit for child support orders.

Sec. 923. Administrative enforcement in interstate cases.

Sec. 924. Use of forms in interstate enforcement.

Sec. 925. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 931. State laws concerning paternity establishment.

Sec. 932. Outreach for voluntary paternity establishment.

Sec. 933. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 941. Performance-based incentives and penalties.

Sec. 942. Federal and State reviews and audits.

Sec. 943. Required reporting procedures.

Sec. 944. Automated data processing requirements.

Sec. 945. Technical assistance.

Sec. 946. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 951. National Child Support Guidelines Commission.

Sec. 952. Simplified process for review and adjustment of child support orders.

Sec. 953. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 954. Nonliability for depository institutions providing financial records to

State child support enforcement agencies in child support

cases.

Subtitle G—Enforcement of Support Orders

Sec. 961. Internal Revenue Service collection of arrearages.

Sec. 962. Authority to collect support from Federal employees.

Sec. 963. Enforcement of child support obligations of members of the armed

forces.

Sec. 964. Voiding of fraudulent transfers.

Sec. 965. Work requirement for persons owing child support.

Sec. 966. Definition of support order.

Sec. 967. Reporting arrearages to credit bureaus.

Sec. 968. Liens.

Sec. 969. State law authorizing suspension of licenses.

Sec. 970. Denial of passports for nonpayment of child support.

Sec. 971. International child support enforcement.

Sec. 972. Denial of means-tested Federal benefits to noncustodial parents who

are delinquent in paying child support.

Sec. 973. Child support enforcement for Indian tribes.

Sec. 974. Financial institution data matches.

Subtitle H—Medical Support
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Sec. 975. Technical correction to ERISA definition of medical child support

order.

Sec. 976. Enforcement of orders for health care coverage.

Sec. 977. Enforcement of orders against paternal grandparents in cases of

minor parents.

Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential

Parents

Sec. 981. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 991. Effective dates.

TITLE X—REFORM OF PUBLIC HOUSING

Sec. 1001. Ceiling rents.

Sec. 1002. Definition of adjusted income for public housing.

Sec. 1003. Failure to comply with other welfare and public assistance programs.

Sec. 1004. Applicability to Indian housing.

Sec. 1005. Implementation.

Sec. 1006. Demonstration project for elimination of take-one-take-all requirement.

Sec. 1007. Fraud under means-tested welfare and public assistance programs.

Sec. 1008. Effective date.

TITLE XI—CHILD ABUSE PREVENTION AND TREATMENT

Sec. 1101. Short title.

Subtitle A—General Program

Sec. 1111. Reference.

Sec. 1112. Findings.

Sec. 1113. Office of Child Abuse and Neglect.

Sec. 1114. Advisory Board on Child Abuse and Neglect.

Sec. 1115. Repeal of interagency task force.

Sec. 1116. National Clearinghouse for Information Relating to Child Abuse.

Sec. 1117. Research, evaluation and assistance activities.

Sec. 1118. Grants for demonstration programs.

Sec. 1119. State grants for prevention and treatment programs.

Sec. 1120. Repeal.

Sec. 1121. Miscellaneous requirements.

Sec. 1122. Definitions.

Sec. 1123. Authorization of appropriations.

Sec. 1124. Rule of construction.

Sec. 1125. Technical amendment.

Subtitle B—Community-Based Child Abuse and Neglect Prevention Grants

Sec. 1131. Establishment of program.

Sec. 1132. Repeals.

Subtitle C—Family Violence Prevention and Services

Sec. 1141. Reference.
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Sec. 1142. State demonstration grants.

Sec. 1143. Allotments.

Sec. 1144. Authorization of appropriations.

Subtitle D—Adoption Opportunities

Sec. 1151. Reference.

Sec. 1152. Findings and purpose.

Sec. 1153. Information and services.

Sec. 1154. Authorization of appropriations.

Subtitle E—Abandoned Infants Assistance Act of 1986

Sec. 1161. Reauthorization.

Subtitle F—Reauthorization of Various Programs

Sec. 1171. Missing Children’s Assistance Act.

Sec. 1172. Victims of Child Abuse Act of 1990.

TITLE XII—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 1201. Reductions.

Sec. 1202. Reductions in Federal bureaucracy.

Sec. 1203. Reducing personnel in Washington, DC, area.

TITLE XIII—MISCELLANEOUS PROVISIONS

Sec. 1301. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds.

Sec. 1302. Elimination of housing assistance with respect to fugitive felons and

probation and parole violators.

Sec. 1303. Sense of the Senate regarding Enterprise Zones.

Sec. 1304. Sense of the Senate regarding the inability of the non-custodial parent to pay child support.

Sec. 1305. Food stamp eligibility.

Sec. 1306. Sense of the Senate on legislative accountability for unfunded mandates in welfare reform legislation.

Sec. 1307. Sense of the Senate regarding competitive bidding for infant formula.

Sec. 1308. Establishing national goals to prevent teenage pregnancies.

Sec. 1309. Sense of the Senate regarding enforcement of statutory rape laws.

Sec. 1310. Sanctioning for testing positive for controlled substances.

Sec. 1311. Abstinence education.

1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE

3 FOR NEEDY FAMILIES

4 SEC. 100. REFERENCES TO SOCIAL SECURITY ACT.

5 Except as otherwise specifically provided, wherever in

6 this title an amendment is expressed in terms of an
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1 amendment to or repeal of a section or other provision,

2 the reference shall be considered to be made to that sec3 tion or other provision of the Social Security Act.

4 SEC. 101. BLOCK GRANTS TO STATES.

5 (a) REPEALS.—

6 (1) IN GENERAL.—Parts A and F of title IV

7 (42 U.S.C. 601 et seq. and 682 et seq.) are hereby

8 repealed.

9 (2) RULES AND REGULATIONS.—The Secretary

10 of Health and Human Services shall ensure that any

11 rules and regulations relating to the provisions of

12 law repealed in paragraph (1) shall cease to have ef13 fect on and after the date of the repeal of such pro14 visions.

15 (b) BLOCK GRANTS TO STATES FOR TEMPORARY AS16 SISTANCE FOR NEEDY FAMILIES WITH MINOR CHIL17 DREN.—Title IV (42 U.S.C. 601 et seq.) is amended by

18 inserting before part B the following:

19 ‘‘PART A—BLOCK GRANTS TO STATES FOR TEM20 PORARY ASSISTANCE FOR NEEDY FAMILIES

21 WITH MINOR CHILDREN

22 ‘‘SEC. 400. NO INDIVIDUAL ENTITLEMENT.

23 ‘‘Notwithstanding any other provision of law, no indi24 vidual is entitled to any assistance under this part.
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1 ‘‘SEC. 401. PURPOSE.

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

3 of States in operating a program designed to—

4 ‘‘(1) provide assistance to needy families with

5 minor children;

6 ‘‘(2) provide job preparation and opportunities

7 for such families; and

8 ‘‘(3) prevent and reduce the incidence of out-of9 wedlock pregnancies, with a special emphasis on

10 teenage pregnancies, and establish annual goals for

11 preventing and reducing such pregnancies with re12 spect to fiscal years 1996 through 2000.

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

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

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

16 that has submitted to the Secretary a plan that includes

17 the following:

18 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO19 GRAM.—A written document that outlines how the

20 State intends to do the following:

21 ‘‘(A) Conduct a program designed to serve

22 all political subdivisions in the State to—

23 ‘‘(i) provide assistance to needy fami24 lies with not less than 1 minor child (or

25 any expectant family); and
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1 ‘‘(ii) provide a parent or caretaker in

2 such families with work experience, assist3 ance in finding employment, and other

4 work preparation activities and support

5 services that the State considers appro6 priate to enable such families to leave the

7 program and become self-sufficient.

8 ‘‘(B) Require a parent or caretaker receiv9 ing assistance under the program to engage in

10 work (as defined by the State) when the State

11 determines the parent or caretaker is ready to

12 engage in work, or after 24 months (whether or

13 not consecutive) of receiving assistance under

14 the program, whichever is earlier.

15 ‘‘(C) Satisfy the minimum participation

16 rates specified in section 404.

17 ‘‘(D) Treat—

18 ‘‘(i) families with minor children mov19 ing into the State from another State; and

20 ‘‘(ii) noncitizens of the United States.

21 ‘‘(E) Safeguard and restrict the use and

22 disclosure of information about individuals and

23 families receiving assistance under the program.

24 ‘‘(F) Establish goals and take action to

25 prevent and reduce the incidence of out-of-wed-
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1 lock pregnancies, with special emphasis on teen2 age pregnancies.

3 ‘‘(G) COMMUNITY SERVICE.—Not later

4 than 2 years after the date of the enactment of

5 this Act, consistent with the exception provided

6 in section 404(d), require participation by, and

7 offer to, unless the State opts out of this provi8 sion by notifying the Secretary, a parent or

9 caretaker receiving assistance under the pro10 gram, after receiving such assistance for 3

11 months—

12 ‘‘(i) is not exempt from work require13 ments; and

14 ‘‘(ii) is not engaged in work as deter15 mined under section 404(c),

16 in community service employment, with mini17 mum hours per week and tasks to be deter18 mined by the State.

19 ‘‘(2) FAMILY ASSISTANCE PROGRAM STRATEGIC

20 PLAN.—

21 ‘‘(A) IN GENERAL.—A single comprehen22 sive State Family Assistance Program Strategic

23 Plan (hereafter referred to in this section as the

24 ‘State Plan’) describing a 3-year strategic plan

25 for the statewide program designed to meet the
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1 State goals and reach the State benchmarks for

2 program activities of the family assistance pro3 gram.

4 ‘‘(B) CONTENTS OF THE STATE PLAN.—

5 The State plan shall include:

6 ‘‘(i) STATE GOALS.—A description of

7 the goals of the 3-year plan, including out8 come related goals of and benchmarks for

9 program activities of the family assistance

10 program.

11 ‘‘(ii) CURRENT YEAR PLAN.—A de12 scription of how the goals and benchmarks

13 described in clause (i) will be achieved, or

14 how progress toward the goals and bench15 marks will be achieved, during the fiscal

16 year in which the plan has been submitted.

17 ‘‘(iii) PERFORMANCE INDICATORS.—A

18 description of performance indicators to be

19 used in measuring or assessing the rel20 evant output service levels and outcomes of

21 relevant program activities.

22 ‘‘(iv) EXTERNAL FACTORS.—Informa23 tion on those key factors external to the

24 program and beyond the control of the
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1 State that could significantly affect the at2 tainment of the goals and benchmarks.

3 ‘‘(v) EVALUATION MECHANISMS.—In4 formation on a mechanism for conducting

5 program evaluation, to be used to compare

6 actual results with the goals and bench7 marks and designate the results on a scale

8 ranging from highly successful to failing to

9 reach the goals and benchmarks of the

10 program.

11 ‘‘(vi) MINIMUM PARTICIPATION

12 RATES.—Information on how the minimum

13 participation rates specified in section 404

14 will be satisfied.

15 ‘‘(vii) ESTIMATE OF EXPENDI16 TURES.—An estimate of the total amount

17 of State or local expenditures under the

18 program for the fiscal year in which the

19 plan is submitted.

20 ‘‘(3) CERTIFICATION THAT THE STATE WILL

21 OPERATE A CHILD SUPPORT ENFORCEMENT PRO22 GRAM.—A certification by the chief executive officer

23 of the State that, during the fiscal year, the State

24 will operate a child support enforcement program

25 under the State plan approved under part D.
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1 ‘‘(4) CERTIFICATION THAT THE STATE WILL

2 OPERATE A CHILD PROTECTION PROGRAM.—A cer3 tification by the chief executive officer of the State

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

5 child protection program under the State plan ap6 proved under part B.

7 ‘‘(5) CERTIFICATION THAT THE STATE WILL

8 OPERATE A FOSTER CARE AND ADOPTION ASSIST9 ANCE PROGRAM.—A certification by the chief execu10 tive officer of the State that, during the fiscal year,

11 the State will operate a foster care and adoption as12 sistance program under the State plan approved

13 under part E.

14 ‘‘(6) CERTIFICATION THAT THE STATE WILL

15 PARTICIPATE IN THE INCOME AND ELIGIBILITY VER16 IFICATION SYSTEM.—A certification by the chief ex17 ecutive officer of the State that, during the fiscal

18 year, the State will participate in the income and eli19 gibility verification system required by section 1137.

20 ‘‘(7) CERTIFICATION OF THE ADMINISTRATION

21 OF THE PROGRAM.—A certification by the chief ex22 ecutive officer of the State specifying which State

23 agency or agencies are responsible for the adminis24 tration and supervision of the State program for the

25 fiscal year and ensuring that local governments and
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1 private sector organizations have been consulted re2 garding the plan and design of welfare services in

3 the State so that services are provided in a manner

4 appropriate to local populations.

5 ‘‘(8) CERTIFICATION THAT REQUIRED REPORTS

6 WILL BE SUBMITTED.—A certification by the chief

7 executive officer of the State that the State shall

8 provide the Secretary with any reports required

9 under this part.

10 ‘‘(9) ESTIMATE OF FISCAL YEAR STATE AND

11 LOCAL EXPENDITURES.—An estimate of the total

12 amount of State and local expenditures under the

13 State program for the fiscal year.

14 ‘‘(b) CERTIFICATION THAT THE STATE WILL PRO15 VIDE ACCESS TO INDIANS.—

16 ‘‘(1) IN GENERAL.—In recognition of the Fed17 eral Government’s trust responsibility to, and gov18 ernment-to-government relationship with, Indian

19 tribes, the Secretary shall ensure that Indians re20 ceive at least their equitable share of services under

21 the State program, by requiring a certification by

22 the chief executive officer of each State described in

23 paragraph (2) that, during the fiscal year, the State

24 shall provide Indians in each Indian tribe that does

25 not have a tribal family assistance plan approved
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1 under section 414 for a fiscal year with equitable ac2 cess to assistance under the State program funded

3 under this part.

4 ‘‘(2) STATE DESCRIBED.—For purposes of

5 paragraph (1), a State described in this paragraph

6 is a State in which there is an Indian tribe that does

7 not have a tribal family assistance plan approved

8 under section 414 for a fiscal year.

9 ‘‘(c) DISTRIBUTION OF STATE PLAN.—

10 ‘‘(1) PUBLIC AVAILABILITY OF SUMMARY.—The

11 State shall make available to the public a summary

12 of the State plan submitted under this section.

13 ‘‘(2) COPY TO AUDITOR.—The State shall pro14 vide the approved entity conducting the audit under

15 section 408 with a copy of the State plan submitted

16 under this section.

17 ‘‘(d) DEFINITIONS.—For purposes of this part, the

18 following definitions shall apply:

19 ‘‘(1) ADULT.—The term ‘adult’ means an indi20 vidual who is not a minor child.

21 ‘‘(2) MINOR CHILD.—The term ‘minor child’

22 means an individual—

23 ‘‘(A) who—

24 ‘‘(i) has not attained 18 years of age;

25 or
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1 ‘‘(ii) has not attained 19 years of age

2 and is a full-time student in a secondary

3 school (or in the equivalent level of voca4 tional or technical training); and

5 ‘‘(B) who resides with such individual’s

6 custodial parent or other caretaker relative.

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

8 means any 12-month period ending on September 30

9 of a calendar year.

10 ‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA11 NIZATION.—

12 ‘‘(A) IN GENERAL.—Except as provided in

13 subparagraph (B), the terms ‘Indian’, ‘Indian

14 tribe’, and ‘tribal organization’ have the mean15 ing given such terms by section 4 of the Indian

16 Self-Determination and Education Assistance

17 Act (25 U.S.C. 450b).

18 ‘‘(B) IN ALASKA.—For purposes of making

19 tribal family assistance grants under section

20 414 on behalf of Indians in Alaska, the term

21 ‘Indian tribe’ shall mean only the following

22 Alaska Native regional nonprofit corporations:

23 ‘‘(i) Arctic Slope Native Association.

24 ‘‘(ii) Kawerak, Inc.

25 ‘‘(iii) Maniilaq Association.
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1 ‘‘(iv) Association of Village Council

2 Presidents.

3 ‘‘(v) Tanana Chiefs Conference.

4 ‘‘(vi) Cook Inlet Tribal Council.

5 ‘‘(vii) Bristol Bay Native Association.

6 ‘‘(viii) Aleutian and Pribilof Island

7 Association.

8 ‘‘(ix) Chugachmuit.

9 ‘‘(x) Tlingit Haida Central Council.

10 ‘‘(xi) Kodiak Area Native Association.

11 ‘‘(xii) Copper River Native Associa12 tion.

13 ‘‘(5) STATE.—Except as otherwise specifically

14 provided, the term ‘State’ includes the several

15 States, the District of Columbia, the Commonwealth

16 of Puerto Rico, the United States Virgin Islands,

17 Guam, and American Samoa.

18 ‘‘SEC. 403. PAYMENTS TO STATES AND INDIAN TRIBES.

19 ‘‘(a) GRANT AMOUNT.—

20 ‘‘(1) IN GENERAL.—Subject to the provisions of

21 paragraphs (3) and (5), section 407 (relating to pen22 alties), and section 414(g), for each of fiscal years

23 1996, 1997, 1998, 1999, and 2000, the Secretary

24 shall pay—
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1 ‘‘(A) each eligible State a grant in an

2 amount equal to the State family assistance

3 grant for the fiscal year, for each of fiscal years

4 1998 and 1999, the amount of the State’s job

5 placement performance bonus determined under

6 subsection (f)(1) for the fiscal year, and for fis7 cal year 2000, the amount of the State’s share

8 of the performance bonus and high performance

9 bonus determined under section 418 for such

10 fiscal year; and

11 ‘‘(B) each Indian tribe with an approved

12 tribal family assistance plan a tribal family as13 sistance grant in accordance with section 414.

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

15 ‘‘(A) IN GENERAL.—For purposes of para16 graph (1)(A), a State family assistance grant

17 for any State for a fiscal year is an amount

18 equal to the sum of—

19 ‘‘(i) the total amount of the Federal

20 payments to the State under section 403

21 (other than Federal payments to the State

22 described in subparagraphs (A), (B) and

23 (C) of section 419(a)(2)) for fiscal year

24 1994 (as such section 403 was in effect

25 during such fiscal year), plus
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1 ‘‘(ii) the total amount of the Federal

2 payments to the State under subpara3 graphs (A), (B) and (C) of section

4 419(a)(2),

5 as such payments were reported by the State on

6 February 14, 1995, reduced by the amount, if

7 any, determined under subparagraph (B), and

8 for fiscal year 2000, reduced by the percent

9 specified under section 418(a)(3), and increased

10 by an amount, if any, determined under para11 graph (2)(D).

12 ‘‘(B) AMOUNT ATTRIBUTABLE TO CERTAIN

13 INDIAN FAMILIES SERVED BY INDIAN TRIBES.—

14 ‘‘(i) IN GENERAL.—For purposes of

15 subparagraph (A), the amount determined

16 under this subparagraph is an amount

17 equal to the Federal payments to the State

18 under section 403 for fiscal year 1994 (as

19 in effect during such fiscal year) attrib20 utable to expenditures by the State under

21 parts A and F of this title (as so in effect)

22 for Indian families described in clause (ii).

23 ‘‘(ii) INDIAN FAMILIES DESCRIBED.—

24 For purposes of clause (i), Indian families

25 described in this clause are Indian families
22

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1 who reside in a service area or areas of an

2 Indian tribe receiving a tribal family as3 sistance grant under section 414.

4 ‘‘(C) NOTIFICATION.—Not later than 3

5 months prior to the payment of each quarterly

6 installment of a State grant under subsection

7 (a)(1), the Secretary shall notify the State of

8 the amount of the reduction determined under

9 subparagraph (B) with respect to the State.

10 ‘‘(D) AMOUNT ATTRIBUTABLE TO STATE

11 PLAN AMENDMENTS.—

12 ‘‘(i) IN GENERAL.—For purposes of

13 subparagraph (A) and subject to the limi14 tation in clause (ii), the amount deter15 mined under this subparagraph is an

16 amount equal to the Federal payment

17 under section 403(a)(5) to the State for

18 emergency assistance in fiscal year 1995

19 under any State plan amendment made

20 under section 402 during fiscal year 1994

21 (as such sections were in effect before the

22 date of the enactment of the Work Oppor23 tunity Act of 1995).

24 ‘‘(ii) LIMITATION.—Amounts made

25 available under clause (i) to all States shall
23

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1 not exceed $800,000,000 for the 5-fiscal

2 year period beginning in fiscal year 1996.

3 If amounts available under this subpara4 graph are less than the total amount of

5 emergency assistance payments referred to

6 in clause (i), the amount payable to a

7 State shall be equal to an amount which

8 bears the same relationship to the total

9 amount available under this clause as the

10 State emergency assistance payment bears

11 to the total amount of such payments.

12 ‘‘(iii) BUDGET SCORING.—Notwith13 standing section 257(b)(2) of the Balanced

14 Budget and Emergency Deficit Control Act

15 of 1985, the baseline shall assume that no

16 grant shall be made under this subpara17 graph after fiscal year 2000.

18 ‘‘(3) SUPPLEMENTAL GRANT AMOUNT FOR POP19 ULATION INCREASES IN CERTAIN STATES.—

20 ‘‘(A) IN GENERAL.—The amount of the

21 grant payable under paragraph (1) to a qualify22 ing State for each of fiscal years 1997, 1998,

23 1999, and 2000 shall be increased by an

24 amount equal to 2.5 percent of the amount that
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1 the State received under this section in the pre2 ceding fiscal year.

3 ‘‘(B) INCREASE TO REMAIN IN EFFECT

4 EVEN IF STATE FAILS TO QUALIFY IN LATER

5 YEARS.—Subject to section 407, in no event

6 shall the amount of a grant payable under

7 paragraph (1) to a State for any fiscal year be

8 less than the amount the State received under

9 this section for the preceding fiscal year.

10 ‘‘(C) QUALIFYING STATE.—

11 ‘‘(i) IN GENERAL.—For purposes of

12 this paragraph, the term ‘qualifying State’,

13 with respect to any fiscal year, means a

14 State that—

15 ‘‘(I) had an average level of State

16 welfare spending per poor person in

17 the preceding fiscal year that was less

18 than the national average level of

19 State welfare spending per poor per20 son in the preceding fiscal year; and

21 ‘‘(II) had an estimated rate of

22 State population growth as deter23 mined by the Bureau of the Census

24 for the most recent fiscal year for

25 which information is available that
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1 was greater than the average rate of

2 population growth for all States as de3 termined by the Bureau of the Census

4 for such fiscal year.

5 ‘‘(ii) CERTAIN STATES DEEMED

6 QUALIFYING STATES.—For purposes of

7 this paragraph, a State shall be deemed to

8 be a qualifying State for fiscal years 1997,

9 1998, 1999, and 2000 if—

10 ‘‘(I) the level of State welfare

11 spending per poor person in fiscal

12 year 1996 was less than 35 percent of

13 the national average level of State

14 welfare spending per poor person in

15 fiscal year 1996; or

16 ‘‘(II) a State has extremely high

17 population growth (which for purposes

18 of this clause shall be defined as a

19 greater than ten percent increase in

20 population from April 1, 1990 to July

21 1, 1994, as determined by the Bureau

22 of the Census).

23 ‘‘(iii) STATE MUST QUALIFY IN FISCAL

24 YEAR 1997.—A State shall not be eligible to

25 be a qualifying State under clause (i) for
26

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1 fiscal years after 1997 if the State was not

2 a qualifying State under clause (i) in fiscal

3 year 1997.

4 ‘‘(D) DEFINITIONS.—For purposes of this

5 paragraph:

6 ‘‘(i) LEVEL OF STATE WELFARE

7 SPENDING PER POOR PERSON.—The term

8 ‘level of State welfare spending per poor

9 person’ means, with respect to a State for

10 any fiscal year—

11 ‘‘(I) the amount of the grant re12 ceived by the State under this section

13 (prior to the application of section

14 407); divided by

15 ‘‘(II) the number of the individ16 uals in the State who had an income

17 below the poverty line according to the

18 1990 decennial census.

19 ‘‘(ii) NATIONAL AVERAGE LEVEL OF

20 STATE WELFARE SPENDING PER POOR

21 PERSON.—The term ‘national average level

22 of State welfare spending per poor person’

23 means an amount equal to—
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1 ‘‘(I) the amount paid in grants

2 under this section (prior to the appli3 cation of section 407); divided by

4 ‘‘(II) the number of individuals

5 in all States with an income below the

6 poverty line according to the 1990 de7 cennial census.

8 ‘‘(iii) POVERTY LINE.—The term ‘pov9 erty line’ has the same meaning given such

10 term in section 673(2) of the Community

11 Services Block Grant Act (42 U.S.C.

12 9902(2)).

13 ‘‘(iv) STATE.—The term ‘State’

14 means each of the 50 States of the United

15 States.

16 ‘‘(4) APPROPRIATION.—

17 ‘‘(A) STATES.—There are authorized to be

18 appropriated and there are appropriated

19 $16,803,769,000 for each fiscal year described

20 in paragraph (1) for the purpose of paying—

21 ‘‘(i) grants to States under paragraph

22 (1)(A); and

23 ‘‘(ii) tribal family assistance grants

24 under paragraph (1)(B).
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•HR 2915 IH

1 ‘‘(B) ADJUSTMENT FOR QUALIFYING

2 STATES.—For the purpose of increasing the

3 amount of the grant payable to a State under

4 paragraph (1) in accordance with paragraph

5 (3), there are authorized to be appropriated and

6 there are appropriated—

7 ‘‘(i) for fiscal year 1997, $85,860,000;

8 ‘‘(ii) for fiscal year 1998,

9 $173,276,000;

10 ‘‘(iii) for fiscal year 1999,

11 $263,468,000; and

12 ‘‘(iv) for fiscal year 2000,

13 $355,310,000.

14 ‘‘(5) WELFARE PARTNERSHIP.—

15 ‘‘(A) IN GENERAL.—The amount of the

16 grant otherwise determined under paragraph

17 (1) for fiscal year 1997, 1998, 1999, or 2000

18 shall be reduced by the amount by which State

19 expenditures under the State program funded

20 under this part for the preceding fiscal year is

21 less than 80 percent of historic State expendi22 tures.

23 ‘‘(B) HISTORIC STATE EXPENDITURES.—

24 For purposes of this paragraph—
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1 ‘‘(i) IN GENERAL.—The term ‘historic

2 State expenditures’ means expenditures by

3 a State under parts A and F of title IV for

4 fiscal year 1994, as in effect during such

5 fiscal year.

6 ‘‘(ii) HOLD HARMLESS.—In no event

7 shall the historic State expenditures appli8 cable to any fiscal year exceed the amount

9 which bears the same ratio to the amount

10 determined under clause (i) as—

11 ‘‘(I) the grant amount otherwise

12 determined under paragraph (1) for

13 the preceding fiscal year (without re14 gard to section 407), bears to

15 ‘‘(II) the total amount of Federal

16 payments to the State under section

17 403 for fiscal year 1994 (as in effect

18 during such fiscal year).

19 ‘‘(C) DETERMINATION OF STATE EXPENDI20 TURES FOR PRECEDING FISCAL YEAR.—

21 ‘‘(i) IN GENERAL.—For purposes of

22 this paragraph, the expenditures of a State

23 under the State program funded under this

24 part for a preceding fiscal year shall be

25 equal to the sum of the State’s expendi-
30

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1 tures under the program in the preceding

2 fiscal year for—

3 ‘‘(I) cash assistance;

4 ‘‘(II) child care assistance;

5 ‘‘(III) education, job training,

6 and work;

7 ‘‘(IV) administrative costs; and

8 ‘‘(V) any other use of funds al9 lowable under section 403(b)(1).

10 ‘‘(ii) TRANSFERS FROM OTHER STATE

11 AND LOCAL PROGRAMS.—In determining

12 State expenditures under clause (i), such

13 expenditures shall not include funding sup14 planted by transfers from other State and

15 local programs.

16 ‘‘(D) EXCLUSION OF FEDERAL

17 AMOUNTS.—For purposes of this paragraph,

18 State expenditures shall not include any ex19 penditures from amounts made available by the

20 Federal Government, State funds expended for

21 the medicaid program under title XIX of this

22 Act or any successor to such program, and any

23 State funds which are used to match Federal

24 funds or are expended as a condition of receiv-
31

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1 ing Federal funds under Federal programs

2 other than under title I of this Act.

3 ‘‘(b) USE OF GRANT.—

4 ‘‘(1) IN GENERAL.—Subject to this part, a

5 State to which a grant is made under this section

6 may use the grant—

7 ‘‘(A) in any manner that is reasonably cal8 culated to accomplish the purpose of this part;

9 or

10 ‘‘(B) in any manner that such State used

11 amounts received under part A or F of this

12 title, as such parts were in effect before October

13 1, 1995;

14 except that not more than 15 percent of the grant

15 may be used for administrative purposes.

16 ‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI17 GRANTS UNDER RULES OF FORMER STATE.—A State

18 to which a grant is made under this section may

19 apply to a family some or all of the rules (including

20 benefit amounts) of the program operated under this

21 part of another State if the family has moved to the

22 State from the other State and has resided in the

23 State for less than 12 months.

24 ‘‘(3) AUTHORITY TO RESERVE CERTAIN

25 AMOUNTS FOR ASSISTANCE.—A State may reserve
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1 amounts paid to the State under this part for any

2 fiscal year for the purpose of providing, without fis3 cal year limitation, assistance under the State pro4 gram operated under this part. In the case of

5 amounts paid to the State that are set aside in ac6 cordance with section 419(a), the State may reserve

7 such amounts for any fiscal year only for the pur8 pose of providing without fiscal year limitation child

9 care assistance under this part.

10 ‘‘(4) AUTHORITY TO OPERATE EMPLOYMENT

11 PLACEMENT PROGRAM.—A State to which a grant is

12 made under this section may use a portion of the

13 grant to make payments (or provide job placement

14 vouchers) to State-approved public and private job

15 placement agencies that provide employment place16 ment services to individuals who receive assistance

17 under the State program funded under this part.

18 ‘‘(5) TRANSFERABILITY OF GRANT AMOUNTS.—

19 A State may use up to 30 percent of amounts re20 ceived from a grant under this part for a fiscal year

21 to carry out State activities under the Child Care

22 and Development Block Grant Act of 1990 (42

23 U.S.C. 9858 et seq.) (relating to child care block

24 grants).
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1 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

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

3 quarterly installments.

4 ‘‘(d) FEDERAL LOAN FUND FOR STATE WELFARE

5 PROGRAMS.—

6 ‘‘(1) ESTABLISHMENT.—There is hereby estab7 lished in the Treasury of the United States a revolv8 ing loan fund which shall be known as the ‘Federal

9 Loan Fund for State Welfare Programs’ (hereafter

10 for purposes of this section referred to as the

11 ‘fund’).

12 ‘‘(2) DEPOSITS INTO FUND.—

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

14 in the Treasury of the United States not other15 wise appropriated, $1,700,000,000 are hereby

16 appropriated for fiscal year 1996 for payment

17 to the fund.

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

19 shall deposit into the fund any principal or in20 terest payment received with respect to a loan

21 made under this subsection.

22 ‘‘(3) AVAILABILITY.—Amounts in the fund are

23 authorized to remain available without fiscal year

24 limitation for the purpose of making loans and re-
34

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1 ceiving payments of principal and interest on such

2 loans, in accordance with this subsection.

3 ‘‘(4) USE OF FUND.—

4 ‘‘(A) LOANS TO STATES.—The Secretary

5 shall make loans from the fund to any loan-eli6 gible State, as defined in subparagraph (D), for

7 a period to maturity of not more than 3 years.

8 ‘‘(B) RATE OF INTEREST.—The Secretary

9 shall charge and collect interest on any loan

10 made under subparagraph (A) at a rate equal

11 to the current average market yield on out12 standing marketable obligations of the United

13 States with remaining periods to maturity com14 parable to the period to maturity of the loan.

15 ‘‘(C) MAXIMUM LOAN.—The cumulative

16 amount of any loans made to a State under

17 subparagraph (A) during fiscal years 1996

18 through 2000 shall not exceed 10 percent of the

19 State family assistance grant under subsection

20 (a)(2) for a fiscal year.

21 ‘‘(D) LOAN-ELIGIBLE STATE.—For pur22 poses of subparagraph (A), a loan-eligible State

23 is a State which has not had a penalty de24 scribed in section 407(a)(1) imposed against it

25 at any time prior to the loan being made.
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1 ‘‘(5) LIMITATION ON USE OF LOAN.—A State

2 shall use a loan received under this subsection only

3 for any purpose for which grant amounts received by

4 the State under subsection (a) may be used includ5 ing—

6 ‘‘(A) welfare anti-fraud activities; and

7 ‘‘(B) the provision of assistance under the

8 State program to Indian families that have

9 moved from the service area of an Indian tribe

10 with a tribal family assistance plan approved

11 under section 414.

12 ‘‘(e) SPECIAL RULE FOR INDIAN TRIBES THAT RE13 CEIVED JOBS FUNDS.—

14 ‘‘(1) IN GENERAL.—The Secretary shall pay to

15 each eligible Indian tribe for each of fiscal years

16 1996, 1997, 1998, 1999, and 2000 a grant in an

17 amount equal to the amount received by such Indian

18 tribe in fiscal year 1995 under section 482(i) (as in

19 effect during such fiscal year) for the purpose of op20 erating a program to make work activities available

21 to members of the Indian tribe.

22 ‘‘(2) ELIGIBLE INDIAN TRIBE.—For purposes

23 of paragraph (1), the term ‘eligible Indian tribe’

24 means an Indian tribe or Alaska Native organization

25 that conducted a job opportunities and basic skills
36

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1 training program in fiscal year 1995 under section

2 482(i) (as in effect during such fiscal year).

3 ‘‘(3) APPROPRIATION.—There are authorized to

4 be appropriated and there are hereby appropriated

5 $7,638,474 for each fiscal year described in para6 graph (1) for the purpose of paying grants in ac7 cordance with such paragraph.

8 ‘‘(f) JOB PLACEMENT PERFORMANCE BONUS.—

9 ‘‘(1) IN GENERAL.—The job placement per10 formance bonus determined with respect to a State

11 and a fiscal year is an amount equal to the amount

12 of the State’s allocation of the job placement per13 formance fund determined in accordance with the

14 formula developed under paragraph (2).

15 ‘‘(2) ALLOCATION FORMULA; BONUS FUND.—

16 ‘‘(A) ALLOCATION FORMULA.—

17 ‘‘(i) IN GENERAL.—Not later than

18 September 30, 1996, the Secretary of

19 Health and Human Services shall develop

20 and publish in the Federal Register a for21 mula for allocating amounts in the job

22 placement performance bonus fund to

23 States based on the number of families

24 that received assistance under a State pro25 gram funded under this part in the preced-
37

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1 ing fiscal year that became ineligible for

2 assistance under the State program as a

3 result of unsubsidized employment during

4 such year.

5 ‘‘(ii) FACTORS TO CONSIDER.—In de6 veloping the allocation formula under

7 clause (i), the Secretary shall—

8 ‘‘(I) provide a greater financial

9 bonus for individuals in families de10 scribed in clause (i) who remain em11 ployed for greater periods of time or

12 are at greater risk of long-term wel13 fare dependency; and

14 ‘‘(II) take into account the unem15 ployment conditions of each State or

16 geographic area.

17 ‘‘(B) JOB PLACEMENT PERFORMANCE

18 BONUS FUND.—

19 ‘‘(i) IN GENERAL.—The amount in

20 the job placement performance bonus fund

21 for a fiscal year shall be an amount equal

22 to the applicable percentage of the amount

23 appropriated under section 403(a)(2)(A)

24 for such fiscal year.
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1 ‘‘(ii) APPLICABLE PERCENTAGE.—For

2 purposes of clause (i)(I), the applicable

3 percentage shall be determined in accord4 ance with the following table:

The applicable

‘‘For fiscal year: percentage is:

1998 ......................................................................................... 3

1999 ......................................................................................... 4 .

5 ‘‘(g) ADDITIONAL AMOUNT FOR STUDIES AND DEM6 ONSTRATIONS.—

7 ‘‘(1) IN GENERAL.—There are authorized to be

8 appropriated and there are appropriated for each fis9 cal year described in subsection (a)(1) an additional

10 $20,000,000 for the purpose of paying—

11 ‘‘(A) the Federal share of any State-initi12 ated study approved under section 410(g);

13 ‘‘(B) an amount determined by the Sec14 retary to be necessary to operate and evaluate

15 demonstration projects, relating to part A of

16 title IV of this Act, that are in effect or ap17 proved under section 1115 as of October 1,

18 1995, and are continued after such date;

19 ‘‘(C) the cost of conducting the research

20 described in section 410(a); and

21 ‘‘(D) the cost of developing and evaluating

22 innovative approaches for reducing welfare de-
39

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1 pendency and increasing the well-being of minor

2 children under section 410(b).

3 ‘‘(2) ALLOCATION.—Of the amount appro4 priated under paragraph (1) for a fiscal year—

5 ‘‘(A) 50 percent shall be allocated for the

6 purposes described in subparagraphs (A) and

7 (B) of paragraph (1), and

8 ‘‘(B) 50 percent shall be allocated for the

9 purposes described in subparagraphs (C) and

10 (D) of paragraph (1).

11 ‘‘(h) SECRETARY.—For purposes of this section, the

12 term ‘Secretary’ means the Secretary of the Treasury.

13 ‘‘(i) CONTINGENCY FUND.—

14 ‘‘(1) ESTABLISHMENT.—There is hereby estab15 lished in the Treasury of the United States a fund

16 which shall be known as the ‘Contingency Fund for

17 State Welfare Programs’ (hereafter in this section

18 referred to as the ‘Fund’).

19 ‘‘(2) DEPOSITS INTO FUND.—Out of any money

20 in the Treasury of the United States not otherwise

21 appropriated, there are hereby appropriated for fis22 cal years 1996, 1997, 1998, 1999, 2000, 2001, and

23 2002 such sums as are necessary for payment to the

24 Fund in a total amount not to exceed

25 $1,000,000,000.
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1 ‘‘(3) COMPUTATION OF GRANT.—

2 ‘‘(A) IN GENERAL.—Subject to subpara3 graph (B), the Secretary of the Treasury shall

4 pay to each eligible State in a fiscal year an

5 amount equal to the Federal medical assistance

6 percentage for such State for such fiscal year

7 (as defined in section 1905(b)) of so much of

8 the expenditures by the State in such year

9 under the State program funded under this

10 part as exceed the historic State expenditures

11 for such State.

12 ‘‘(B) LIMITATION.—The total amount paid

13 to a State under subparagraph (A) for any fis14 cal year shall not exceed an amount equal to 20

15 percent of the annual amount determined for

16 such State under the State program funded

17 under this part (without regard to this sub18 section) for such fiscal year.

19 ‘‘(C) METHOD OF COMPUTATION, PAY20 MENT, AND RECONCILIATION.—

21 ‘‘(i) METHOD OF COMPUTATION.—

22 The method of computing and paying such

23 amounts shall be as follows:

24 ‘‘(I) The Secretary of Health and

25 Human Services shall estimate the
41

•HR 2915 IH

1 amount to be paid to the State for

2 each quarter under the provisions of

3 subparagraph (A), such estimate to be

4 based on a report filed by the State

5 containing its estimate of the total

6 sum to be expended in such quarter

7 and such other information as the

8 Secretary may find necessary.

9 ‘‘(II) The Secretary of Health

10 and Human Services shall then certify

11 to the Secretary of the Treasury the

12 amount so estimated by the Secretary

13 of Health and Human Services.

14 ‘‘(ii) METHOD OF PAYMENT.—The

15 Secretary of the Treasury shall thereupon,

16 through the Fiscal Service of the Depart17 ment of the Treasury and prior to audit or

18 settlement by the General Accounting Of19 fice, pay to the State, at the time or times

20 fixed by the Secretary of Health and

21 Human Services, the amount so certified.

22 ‘‘(iii) METHOD OF RECONCILI23 ATION.—If at the end of each fiscal year,

24 the Secretary of Health and Human Serv25 ices finds that a State which received
42

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1 amounts from the Fund in such fiscal year

2 did not meet the maintenance of effort re3 quirement under paragraph (5)(B) for

4 such fiscal year, the Secretary shall reduce

5 the State family assistance grant for such

6 State for the succeeding fiscal year by such

7 amounts.

8 ‘‘(4) USE OF GRANT.—

9 ‘‘(A) IN GENERAL.—An eligible State may

10 use the grant—

11 ‘‘(i) in any manner that is reasonably

12 calculated to accomplish the purpose of

13 this part; or

14 ‘‘(ii) in any manner that such State

15 used amounts received under part A or F

16 of this title, as such parts were in effect

17 before October 1, 1995.

18 ‘‘(B) REFUND OF UNUSED PORTION.—Any

19 amount of a grant under this subsection not

20 used during the fiscal year shall be returned to

21 the Fund.

22 ‘‘(5) ELIGIBLE STATE.—

23 ‘‘(A) IN GENERAL.—For purposes of this

24 subsection, a State is an eligible State with re25 spect to a fiscal year, if—
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1 ‘‘(i)(I) the average rate of total unem2 ployment in such State (seasonally ad3 justed) for the period consisting of the

4 most recent 3 months for which data for

5 all States are published equals or exceeds

6 6.5 percent, and

7 ‘‘(II) the average rate of total unem8 ployment in such State (seasonally ad9 justed) for the 3-month period equals or

10 exceeds 110 percent of such average rate

11 for either (or both) of the corresponding 3-

12 month periods ending in the 2 preceding

13 calendar years; and

14 ‘‘(ii) has met the maintenance of ef15 fort requirement under subparagraph (B)

16 for the State program funded under this

17 part for the fiscal year.

18 ‘‘(B) MAINTENANCE OF EFFORT.—The

19 maintenance of effort requirement for any State

20 under this subparagraph for any fiscal year is

21 the expenditure of an amount at least equal to

22 100 percent of the level of historic State ex23 penditures for such State (as determined under

24 subsection (a)(5)).
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1 ‘‘(6) ANNUAL REPORTS.—The Secretary of the

2 Treasury shall annually report to the Congress on

3 the status of the Fund.

4 ‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.

5 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A

6 State to which a grant is made under section 403 for a

7 fiscal year shall achieve the minimum participation rate

8 specified in the following tables for the fiscal year with

9 respect to—

10 ‘‘(1) all families receiving assistance under the

11 State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate for all families is:

1996 ............................................................... 25

1997 ............................................................... 30

1998 ............................................................... 35

1999 ............................................................... 40

2000 or thereafter ......................................... 50; and

12 ‘‘(2) with respect to 2-parent families receiving

13 such assistance:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 60

1997 or 1998 ................................................. 75

1999 or thereafter ......................................... 90.

14 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—

15 ‘‘(1) FOR ALL FAMILIES.—

16 ‘‘(A) AVERAGE MONTHLY RATE.—For pur17 poses of subsection (a)(1), the participation

18 rate for all families of a State for a fiscal year
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1 is the average of the participation rates for all

2 families of the State for each month in the fis3 cal year.

4 ‘‘(B) MONTHLY PARTICIPATION RATES.—

5 The participation rate of a State for all families

6 of the State for a month, expressed as a per7 centage, is—

8 ‘‘(i) the sum of—

9 ‘‘(I) the number of all families

10 receiving assistance under the State

11 program funded under this part that

12 include an adult who is engaged in

13 work for the month;

14 ‘‘(II) the number of all families

15 receiving assistance under the State

16 program funded under this part that

17 are subject in such month to a penalty

18 described in paragraph (1)(A) or

19 (2)(A) of subsection (d) but have not

20 been subject to such penalty for more

21 than 3 months within the preceding

22 12-month period (whether or not con23 secutive); and

24 ‘‘(III) the number of all families

25 that received assistance under the
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1 State program under this part during

2 the previous 6-month period that have

3 become ineligible to receive assistance

4 during such period because of employ5 ment and which include an adult who

6 is employed for the month; divided by

7 ‘‘(ii) the total number of all families

8 receiving assistance under the State pro9 gram funded under this part during the

10 month that include an adult receiving as11 sistance.

12 ‘‘(2) 2-PARENT FAMILIES.—

13 ‘‘(A) AVERAGE MONTHLY RATE.—For pur14 poses of subsection (a)(2), the participation

15 rate for 2-parent families of a State for a fiscal

16 year is the average of the participation rates for

17 2-parent families of the State for each month in

18 the fiscal year.

19 ‘‘(B) MONTHLY PARTICIPATION RATES.—

20 The participation rate of a State for 2-parent

21 families of the State for a month, expressed as

22 a percentage, is—

23 ‘‘(i) the total number of 2-parent fam24 ilies described in paragraph (1)(B)(i); di25 vided by
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1 ‘‘(ii) the total number of 2-parent

2 families receiving assistance under the

3 State program funded under this part dur4 ing the month that include an adult.

5 ‘‘(3) PRO RATA REDUCTION OF PARTICIPATION

6 RATE DUE TO CASELOAD REDUCTIONS NOT RE7 QUIRED BY FEDERAL LAW.—

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

9 prescribe regulations for reducing the minimum

10 participation rate otherwise required by this

11 section for a fiscal year by the number of per12 centage points equal to the number of percent13 age points (if any) by which—

14 ‘‘(i) the number of families receiving

15 assistance during the fiscal year under the

16 State program funded under this part is

17 less than

18 ‘‘(ii) the number of families that re19 ceived aid under the State plan approved

20 under part A of this title (as in effect be21 fore October 1, 1995) during the fiscal

22 year immediately preceding such effective

23 date.

24 The minimum participation rate shall not be re25 duced to the extent that the Secretary deter-
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1 mines that the reduction in the number of fami2 lies receiving such assistance is required by

3 Federal law.

4 ‘‘(B) ELIGIBILITY CHANGES NOT COUNT5 ED.—The regulations described in subpara6 graph (A) shall not take into account families

7 that are diverted from a State program funded

8 under this part as a result of differences in eli9 gibility criteria under a State program funded

10 under this part and eligibility criteria under

11 such State’s plan under the aid to families with

12 dependent children program, as such plan was

13 in effect on the day before the date of the en14 actment of the Work Opportunity Act of 1995.

15 ‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS

16 RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY

17 ASSISTANCE PLAN.—For purposes of paragraphs

18 (1)(B) and (2)(B), a State may, at its option, in19 clude families receiving assistance under a tribal

20 family assistance plan approved under section 414.

21 For purposes of the previous sentence, an individual

22 who receives assistance under a tribal family assist23 ance plan approved under section 414 shall be treat24 ed as being engaged in work if the individual is par25 ticipating in work under standards that are com-
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•HR 2915 IH

1 parable to State standards for being engaged in

2 work.

3 ‘‘(5) STATE OPTION FOR PARTICIPATION RE4 QUIREMENT EXEMPTIONS.—For any fiscal year, a

5 State may, at its option, not require an individual

6 who is the parent or caretaker relative of a minor

7 child who is less than 12 months of age to engage

8 in work and may exclude such an individual from

9 the determination of the minimum participation rate

10 specified for such fiscal year in subsection (a).

11 ‘‘(c) ENGAGED IN WORK.—

12 ‘‘(1) ALL FAMILIES.—For purposes of sub13 section (b)(1)(B)(i)(I), an adult is engaged in work

14 for a month in a fiscal year if the adult is participat15 ing in work for at least the minimum average num16 ber of hours per week specified in the following table

17 during the month, not fewer than 20 hours per week

18 of which are attributable to a work activity:

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.

19 ‘‘(2) 2-PARENT FAMILIES.—For purposes of

20 subsection (b)(2)(A), an adult is engaged in work for
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1 a month in a fiscal year if the adult is participating

2 in work for at least 35 hours per week during the

3 month, not fewer than 30 hours per week of which

4 are attributable to work activities described in para5 graph (3).

6 ‘‘(3) DEFINITION OF WORK ACTIVITIES.—For

7 purposes of this subsection, the term ‘work activi8 ties’ means—

9 ‘‘(A) unsubsidized employment;

10 ‘‘(B) subsidized employment;

11 ‘‘(C) on-the-job training;

12 ‘‘(D) community service programs;

13 ‘‘(E) job search (only for the first 4 weeks

14 in which an individual is required to participate

15 in work activities under this section); and

16 ‘‘(F) vocational educational training (not

17 to exceed 12 months with respect to any indi18 vidual).

19 ‘‘(4) LIMITATION ON VOCATIONAL EDUCATION

20 ACTIVITIES COUNTED AS WORK.—For purposes of

21 determining monthly participation rates under para22 graphs (1)(B)(i)(I) and (2)(B)(i) of subsection (b),

23 not more than 25 percent of adults in all families

24 and in 2-parent families determined to be engaged

25 in work in the State for a month may meet the work
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•HR 2915 IH

1 activity requirement through participation in voca2 tional educational training.

3 ‘‘(d) PENALTIES AGAINST INDIVIDUALS.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), if an adult in a family receiving assist6 ance under the State program funded under this

7 part refuses to engage in work required under sub8 section (c)(1) or (c)(2), a State to which a grant is

9 made under section 403 shall—

10 ‘‘(A) reduce the amount of assistance oth11 erwise payable to the family pro rata (or more,

12 at the option of the State) with respect to any

13 period during a month in which the adult so re14 fuses; or

15 ‘‘(B) terminate such assistance,

16 subject to such good cause and other exceptions as

17 the State may establish.

18 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

19 (1), a State may not reduce or terminate assistance

20 under the State program based on a refusal of an

21 adult to work if such adult is a single custodial par22 ent caring for a child age 5 or under and has a dem23 onstrated inability (as determined by the State) to

24 obtain needed child care, for one or more of the fol25 lowing reasons:
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•HR 2915 IH

1 ‘‘(A) Unavailability of appropriate child

2 care within a reasonable distance of the individ3 ual’s home or work site.

4 ‘‘(B) Unavailability or unsuitability of in5 formal child care by a relative or under other

6 arrangements.

7 ‘‘(C) Unavailability of appropriate and af8 fordable formal child care arrangements.

9 ‘‘(e) NONDISPLACEMENT IN WORK ACTIVITIES.—

10 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

11 an adult in a family receiving assistance under this

12 part may fill a vacant employment position in order

13 to engage in a work activity described in subsection

14 (c)(3).

15 ‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No

16 adult in a work activity described in subsection

17 (c)(3) shall be employed or assigned—

18 ‘‘(A) when any other individual is on layoff

19 from the same or any substantially equivalent

20 job; or

21 ‘‘(B) when the employer has terminated

22 the employment of any regular employee or oth23 erwise caused an involuntary reduction of its

24 workforce in order to fill the vacancy so created

25 with an adult described in paragraph (1).
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1 ‘‘(3) NO PREEMPTION.—Nothing in this sub2 section shall preempt or supersede any provision of

3 State or local law that provides greater protection

4 for employees from displacement.

5 ‘‘(f) SENSE OF THE CONGRESS.—It is the sense of

6 the Congress that in complying with this section, each

7 State that operates a program funded under this part is

8 encouraged to assign the highest priority to requiring

9 adults in 2-parent families and adults in single-parent

10 families that include older preschool or school-age children

11 to be engaged in work activities.

12 ‘‘(g) DELIVERY THROUGH STATEWIDE SYSTEM.—

13 ‘‘(1) IN GENERAL.—Each work program carried

14 out by the State to provide work activities in order

15 to comply with this section shall be delivered

16 through the statewide workforce development system

17 established in section 711 of the Work Opportunity

18 Act of 1995 unless a required work activity is not

19 available locally through the statewide workforce de20 velopment system.

21 ‘‘(2) EFFECTIVE DATE.—The provisions of

22 paragraph (1) shall take effect—

23 ‘‘(A) in a State described in section

24 815(b)(1) of the Work Opportunity Act of

25 1995; and
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•HR 2915 IH

1 ‘‘(B) in any other State, on July 1, 1998.

2 ‘‘(h) ENCOURAGEMENT TO PROVIDE CHILD CARE

3 SERVICES.—An individual participating in a State com4 munity service program may be treated as being engaged

5 in work under subsection (c) if such individual provides

6 child care services to other individuals participating in the

7 community service program in the manner, and for the

8 period of time each week, determined appropriate by the

9 State.

10 ‘‘SEC. 405. REQUIREMENTS AND LIMITATIONS.

11 ‘‘(a) STATE REQUIRED TO ENTER INTO A PERSONAL

12 RESPONSIBILITY CONTRACT WITH EACH FAMILY RE13 CEIVING ASSISTANCE.—

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

15 grant is made under section 403 shall require each

16 family receiving assistance under the State program

17 funded under this part to enter into—

18 ‘‘(A) a personal responsibility contract (as

19 developed by the State) with the State; or

20 ‘‘(B) a limited benefit plan.

21 ‘‘(2) PERSONAL RESPONSIBILITY CONTRACT.—

22 For purposes of this subsection, the term ‘personal

23 responsibility contract’ means a binding contract be24 tween the State and each family receiving assistance
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•HR 2915 IH

1 under the State program funded under this part

2 that—

3 ‘‘(A) outlines the steps each family and the

4 State will take to get the family off of welfare

5 and to become self-sufficient;

6 ‘‘(B) specifies a negotiated time-limited pe7 riod of eligibility for receipt of assistance that

8 is consistent with unique family circumstances

9 and is based on a reasonable plan to facilitate

10 the transition of the family to self-sufficiency;

11 ‘‘(C) provides that the family will auto12 matically enter into a limited benefit plan if the

13 family is out of compliance with the personal

14 responsibility contract; and

15 ‘‘(D) provides that the contract shall be in16 valid if the State agency fails to comply with

17 the contract.

18 ‘‘(3) LIMITED BENEFIT PLAN.—For purposes

19 of this subsection, the term ‘limited benefit plan’

20 means a plan which provides for a reduced level of

21 assistance and later termination of assistance to a

22 family that has entered into the plan in accordance

23 with a schedule to be determined by the State.

24 ‘‘(4) ASSESSMENT.—The State agency shall

25 provide, through a case manager, an initial and
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•HR 2915 IH

1 thorough assessment of the skills, prior work experi2 ence, and employability of each parent for use in de3 veloping and negotiating a personal responsibility

4 contract.

5 ‘‘(5) DISPUTE RESOLUTION.—The State agency

6 described in section 402(a)(6) shall establish a dis7 pute resolution procedure for disputes related to par8 ticipation in the personal responsibility contract that

9 provides the opportunity for a hearing.

10 ‘‘(b) NO ASSISTANCE FOR MORE THAN 5 YEARS.—

11 ‘‘(1) IN GENERAL.—Except as provided under

12 paragraphs (2) and (3), a State to which a grant is

13 made under section 403 may not use any part of the

14 grant to provide assistance to a family that includes

15 an adult who has received assistance under the pro16 gram operated under this part for the lesser of—

17 ‘‘(A) the period of time established at the

18 option of the State; or

19 ‘‘(B) 60 months (whether or not consecu20 tive) after September 30, 1995.

21 ‘‘(2) MINOR CHILD EXCEPTION.—If an individ22 ual received assistance under the State program op23 erated under this part as a minor child in a needy

24 family, any period during which such individual’s

25 family received assistance shall not be counted for
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1 purposes of applying the limitation described in

2 paragraph (1) to an application for assistance under

3 such program by such individual as the head of a

4 household of a needy family with minor children.

5 ‘‘(3) HARDSHIP EXCEPTION.—

6 ‘‘(A) IN GENERAL.—The State may ex7 empt a family from the application of para8 graph (1) by reason of hardship.

9 ‘‘(B) LIMITATION.—The number of fami10 lies with respect to which an exemption made

11 by a State under subparagraph (A) is in effect

12 for a fiscal year shall not exceed 20 percent of

13 the average monthly number of families to

14 which the State is providing assistance under

15 the program operated under this part.

16 ‘‘(c) DENIAL OF ASSISTANCE FOR 10 YEARS TO A

17 PERSON FOUND TO HAVE FRAUDULENTLY MISREPRE18 SENTED RESIDENCE IN ORDER TO OBTAIN ASSISTANCE

19 IN 2 OR MORE STATES.—An individual shall not be con20 sidered an eligible individual for the purposes of this part

21 during the 10-year period that begins on the date the indi22 vidual is convicted in Federal or State court of having

23 made a fraudulent statement or representation with re24 spect to the place of residence of the individual in order

25 to receive assistance simultaneously from 2 or more States
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1 under programs that are funded under this title, title XIX,

2 or the Food Stamp Act of 1977, or benefits in 2 or more

3 States under the supplemental security income program

4 under title XVI.

5 ‘‘(d) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS

6 AND PROBATION AND PAROLE VIOLATORS.—

7 ‘‘(1) IN GENERAL.—An individual shall not be

8 considered an eligible individual for the purposes of

9 this part if such individual is—

10 ‘‘(A) fleeing to avoid prosecution, or cus11 tody or confinement after conviction, under the

12 laws of the place from which the individual

13 flees, for a crime, or an attempt to commit a

14 crime, which is a felony under the laws of the

15 place from which the individual flees, or which,

16 in the case of the State of New Jersey, is a

17 high misdemeanor under the laws of such State;

18 or

19 ‘‘(B) violating a condition of probation or

20 parole imposed under Federal or State law.

21 ‘‘(2) EXCHANGE OF INFORMATION WITH LAW

22 ENFORCEMENT AGENCIES.—Notwithstanding any

23 other provision of law, a State shall furnish any

24 Federal, State, or local law enforcement officer,

25 upon the request of the officer, with the current ad-
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1 dress, Social Security number, and photograph (if

2 applicable) of any recipient of assistance under this

3 part, if the officer furnishes the agency with the

4 name of the recipient and notifies the agency that—

5 ‘‘(A) such recipient—

6 ‘‘(i) is described in subparagraph (A)

7 or (B) of paragraph (1); or

8 ‘‘(ii) has information that is necessary

9 for the officer to conduct the officer’s offi10 cial duties; and

11 ‘‘(B) the location or apprehension of the

12 recipient is within such officer’s official duties.

13 ‘‘(e) STATE OPTION TO REQUIRE ASSIGNMENT OF

14 SUPPORT.—At the option of the State, a State to which

15 a grant is made under section 403 may provide that an

16 individual applying for or receiving assistance under the

17 State program funded under this part shall be required

18 to assign to the State any rights to support from any other

19 person the individual may have in such individual’s own

20 behalf or in behalf of any other family member for whom

21 the individual is applying for or receiving assistance.

22 ‘‘(f) DENIAL OF ASSISTANCE FOR ABSENT CHILD.—

23 Each State to which a grant is made under section 403—

24 ‘‘(1) may not use any part of the grant to pro25 vide assistance to a family with respect to any minor
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•HR 2915 IH

1 child who has been, or is expected by the caretaker

2 relative in the family to be, absent from the home

3 for a period of 45 consecutive days or, at the option

4 of the State, such period of not less than 30 and not

5 more than 90 consecutive days as the State may

6 provide for in the State plan;

7 ‘‘(2) at the option of the State, may establish

8 such good cause exceptions to paragraph (1) as the

9 State considers appropriate if such exceptions are

10 provided for in the State plan; and

11 ‘‘(3) shall provide that a caretaker relative shall

12 not be considered an eligible individual for purposes

13 of this part if the caretaker relative fails to notify

14 the State agency of an absence of a minor child

15 from the home for the period specified in or provided

16 for under paragraph (1), by the end of the 5-day pe17 riod that begins on the date that it becomes clear to

18 the caretaker relative that the minor child will be

19 absent for the period so specified or provided for in

20 paragraph (1).

21 ‘‘SEC. 406. PROMOTING RESPONSIBLE PARENTING.

22 ‘‘(a) FINDINGS.—The Congress makes the following

23 findings:

24 ‘‘(1) Marriage is the foundation of a successful

25 society.
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1 ‘‘(2) Marriage is an essential institution of a

2 successful society which promotes the interests of

3 children.

4 ‘‘(3) Promotion of responsible fatherhood and

5 motherhood is integral to successful child rearing

6 and the wellbeing of children.

7 ‘‘(4) In 1992, only 54 percent of single-parent

8 families with children had a child support order es9 tablished and, of that 54 percent, only about one

10 half received the full amount due. Of the cases en11 forced through the public child support enforcement

12 system, only 18 percent of the caseload has a collec13 tion.

14 ‘‘(5) The number of individuals receiving aid to

15 families with dependent children (hereafter in this

16 subsection referred to as ‘AFDC’) has more than

17 tripled since 1965. More than two-thirds of these re18 cipients are children. Eighty-nine percent of children

19 receiving AFDC benefits now live in homes in which

20 no father is present.

21 ‘‘(A)(i) The average monthly number of

22 children receiving AFDC benefits—

23 ‘‘(I) was 3,300,000 in 1965;

24 ‘‘(II) was 6,200,000 in 1970;

25 ‘‘(III) was 7,400,000 in 1980; and
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1 ‘‘(IV) was 9,300,000 in 1992.

2 ‘‘(ii) While the number of children receiv3 ing AFDC benefits increased nearly threefold

4 between 1965 and 1992, the total number of

5 children in the United States aged 0 to 18 has

6 declined by 5.5 percent.

7 ‘‘(B) The Department of Health and

8 Human Services has estimated that 12,000,000

9 children will receive AFDC benefits within 10

10 years.

11 ‘‘(C) The increase in the number of chil12 dren receiving public assistance is closely relat13 ed to the increase in births to unmarried

14 women. Between 1970 and 1991, the percent15 age of live births to unmarried women increased

16 nearly threefold, from 10.7 percent to 29.5 per17 cent.

18 ‘‘(6) The increase of out-of-wedlock pregnancies

19 and births is well documented as follows:

20 ‘‘(A) It is estimated that the rate of

21 nonmarital teen pregnancy rose 23 percent

22 from 54 pregnancies per 1,000 unmarried teen23 agers in 1976 to 66.7 pregnancies in 1991. The

24 overall rate of nonmarital pregnancy rose 14

25 percent from 90.8 pregnancies per 1,000 un-
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1 married women in 1980 to 103 in both 1991

2 and 1992. In contrast, the overall pregnancy

3 rate for married couples decreased 7.3 percent

4 between 1980 and 1991, from 126.9 preg5 nancies per 1,000 married women in 1980 to

6 117.6 pregnancies in 1991.

7 ‘‘(B) The total of all out-of-wedlock births

8 between 1970 and 1991 has risen from 10.7

9 percent to 29.5 percent and if the current trend

10 continues, 50 percent of all births by the year

11 2015 will be out-of-wedlock.

12 ‘‘(7) The negative consequences of an out-of13 wedlock birth on the mother, the child, the family,

14 and society are well documented as follows:

15 ‘‘(A) Young women 17 and under who give

16 birth outside of marriage are more likely to go

17 on public assistance and to spend more years

18 on welfare once enrolled. These combined ef19 fects of ‘younger and longer’ increase total

20 AFDC costs per household by 25 percent to 30

21 percent for 17-year olds.

22 ‘‘(B) Children born out-of-wedlock have a

23 substantially higher risk of being born at a very

24 low or moderately low birth weight.
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1 ‘‘(C) Children born out-of-wedlock are

2 more likely to experience low verbal cognitive

3 attainment, as well as more child abuse, and

4 neglect.

5 ‘‘(D) Children born out-of-wedlock were

6 more likely to have lower cognitive scores, lower

7 educational aspirations, and a greater likelihood

8 of becoming teenage parents themselves.

9 ‘‘(E) Being born out-of-wedlock signifi10 cantly reduces the chances of the child growing

11 up to have an intact marriage.

12 ‘‘(F) Children born out-of-wedlock are 3

13 more times likely to be on welfare when they

14 grow up.

15 ‘‘(8) Currently 35 percent of children in single16 parent homes were born out-of-wedlock, nearly the

17 same percentage as that of children in single-parent

18 homes whose parents are divorced (37 percent).

19 While many parents find themselves, through divorce

20 or tragic circumstances beyond their control, facing

21 the difficult task of raising children alone, neverthe22 less, the negative consequences of raising children in

23 single-parent homes are well documented as follows:

24 ‘‘(A) Only 9 percent of married-couple

25 families with children under 18 years of age
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1 have income below the national poverty level. In

2 contrast, 46 percent of female-headed house3 holds with children under 18 years of age are

4 below the national poverty level.

5 ‘‘(B) Among single-parent families, nearly

1 6 ⁄2 of the mothers who never married received

AFDC while only 1 7 ⁄5 of divorced mothers re8 ceived AFDC.

9 ‘‘(C) Children born into families receiving

10 welfare assistance are 3 times more likely to be

11 on welfare when they reach adulthood than chil12 dren not born into families receiving welfare.

13 ‘‘(D) Mothers under 20 years of age are at

14 the greatest risk of bearing low birth-weight ba15 bies.

16 ‘‘(E) The younger the single parent moth17 er, the less likely she is to finish high school.

18 ‘‘(F) Young women who have children be19 fore finishing high school are more likely to re20 ceive welfare assistance for a longer period of

21 time.

22 ‘‘(G) Between 1985 and 1990, the public

23 cost of births to teenage mothers under the aid

24 to families with dependent children program,
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1 the food stamp program, and the medicaid pro2 gram has been estimated at $120,000,000,000.

3 ‘‘(H) The absence of a father in the life of

4 a child has a negative effect on school perform5 ance and peer adjustment.

6 ‘‘(I) Children of teenage single parents

7 have lower cognitive scores, lower educational

8 aspirations, and a greater likelihood of becom9 ing teenage parents themselves.

10 ‘‘(J) Children of single-parent homes are 3

11 times more likely to fail and repeat a year in

12 grade school than are children from intact two13 parent families.

14 ‘‘(K) Children from single-parent homes

15 are almost 4 times more likely to be expelled or

16 suspended from school.

17 ‘‘(L) Neighborhoods with larger percent18 ages of youth aged 12 through 20 and areas

19 with higher percentages of single-parent house20 holds have higher rates of violent crime.

21 ‘‘(M) Of those youth held for criminal of22 fenses within the State juvenile justice system,

23 only 29.8 percent lived primarily in a home with

24 both parents. In contrast to these incarcerated

25 youth, 73.9 percent of the 62,800,000 children
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1 in the Nation’s resident population were living

2 with both parents.

3 ‘‘(9) Therefore, in light of this demonstration of

4 the crisis in our Nation, it is the sense of the Con5 gress that prevention of out-of-wedlock pregnancy

6 and reduction in out-of-wedlock birth are very im7 portant Government interests and the policy con8 tained in provisions of this title is intended to ad9 dress the crisis.

10 ‘‘(b) STATE OPTION TO DENY ASSISTANCE FOR

11 OUT-OF-WEDLOCK BIRTHS TO MINORS.—At the option of

12 the State, a State to which a grant is made under section

13 403 may provide that the grant shall not be used to pro14 vide assistance for a child born out-of-wedlock to an indi15 vidual who has not attained 18 years of age, or for the

16 individual, until the individual attains such age.

17 ‘‘(c) STATE OPTION TO DENY ASSISTANCE FOR

18 CHILDREN BORN TO FAMILIES RECEIVING ASSIST19 ANCE.—At the option of the State, a State to which a

20 grant is made under section 403 may provide that the

21 grant shall not be used to provide assistance for a minor

22 child who is born to—

23 ‘‘(1) a recipient of assistance under the pro24 gram funded under this part; or
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1 ‘‘(2) an individual who received such benefits at

2 any time during the 10-month period ending with

3 the birth of the child.

4 ‘‘(d) REQUIREMENT THAT TEENAGE PARENTS LIVE

5 IN ADULT-SUPERVISED SETTINGS.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) REQUIREMENT.—Except as provided

8 in paragraph (2), if a State provides assistance

9 under the State program funded under this

10 part to an individual described in subparagraph

11 (B), such individual may only receive assistance

12 under the program if such individual and the

13 child of the individual reside in a place of resi14 dence maintained by a parent, legal guardian,

15 or other adult relative of such individual as

16 such parent’s, guardian’s, or adult relative’s

17 own home.

18 ‘‘(B) INDIVIDUAL DESCRIBED.— For pur19 poses of subparagraph (A), an individual de20 scribed in this subparagraph is an individual

21 who is—

22 ‘‘(i) under the age of 18; and

23 ‘‘(ii) not married and has a minor

24 child in his or her care.

25 ‘‘(2) EXCEPTION.—
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1 ‘‘(A) PROVISION OF, OR ASSISTANCE IN

2 LOCATING, ADULT-SUPERVISED LIVING AR3 RANGEMENT.—In the case of an individual who

4 is described in subparagraph (B), the State

5 agency shall provide, or assist such individual in

6 locating, a second chance home, maternity

7 home, or other appropriate adult-supervised

8 supportive living arrangement, taking into con9 sideration the needs and concerns of the such

10 individual, unless the State agency determines

11 that the individual’s current living arrangement

12 is appropriate, and thereafter shall require that

13 such parent and the child of such parent reside

14 in such living arrangement as a condition of the

15 continued receipt of assistance under the plan

16 (or in an alternative appropriate arrangement,

17 should circumstances change and the current

18 arrangement cease to be appropriate).

19 ‘‘(B) INDIVIDUAL DESCRIBED.—For pur20 poses of subparagraph (A), an individual is de21 scribed in this subparagraph if the individual is

22 described in paragraph (1)(B) and—

23 ‘‘(ii) such individual has no parent,

24 legal guardian or other appropriate adult

25 relative as described in (iii) of his or her
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1 own who is living or whose whereabouts

2 are known;

3 ‘‘(iii) no living parent, legal guardian,

4 or other appropriate adult relative who

5 would otherwise meet applicable State cri6 teria to act as such individual’s legal

7 guardian, of such individual allows the in8 dividual to live in the home of such parent,

9 guardian, or relative;

10 ‘‘(iv) the State agency determines

11 that—

12 ‘‘(I) the individual or the individ13 ual’s custodial minor child is being or

14 has been subjected to serious physical

15 or emotional harm, sexual abuse, or

16 exploitation in the residence of such

17 individual’s own parent or legal

18 guardian; or

19 ‘‘(II) substantial evidence exists

20 of an act or failure to act that pre21 sents an imminent or serious harm if

22 such individual and such individual’s

23 minor child lived in the same resi24 dence with such individual’s own par25 ent or legal guardian; or
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1 ‘‘(v) the State agency otherwise deter2 mines that it is in the best interest of the

3 minor child to waive the requirement of

4 paragraph (1) with respect to such individ5 ual or minor child.

6 ‘‘(C) SECOND-CHANCE HOME.—For pur7 poses of this paragraph, the term ‘second8 chance home’ means an entity that provides in9 dividuals described in subparagraph (B) with a

10 supportive and supervised living arrangement in

11 which such individuals are required to learn

12 parenting skills, including child development,

13 family budgeting, health and nutrition, and

14 other skills to promote their long-term economic

15 independence and the well-being of their chil16 dren.

17 ‘‘(3) ASSISTANCE TO STATES IN PROVIDING OR

18 LOCATING ADULT-SUPERVISED SUPPORTIVE LIVING

19 ARRANGEMENTS FOR UNMARRIED TEENAGE PAR20 ENTS.—

21 ‘‘(A) IN GENERAL.—For each of fiscal

22 years 1996 through 2002, each State that pro23 vides assistance under the State program to in24 dividuals described in paragraph (1)(B) shall be

25 entitled to receive a grant in an amount deter-
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1 mined under subparagraph (B) for the purpose

2 of providing or locating adult-supervised sup3 portive living arrangements for individuals de4 scribed in paragraph (1)(B) in accordance with

5 this subsection.

6 ‘‘(B) AMOUNT DETERMINED.—

7 ‘‘(i) IN GENERAL.—The amount de8 termined under this subparagraph is an

9 amount that bears the same ratio to the

10 amount specified under clause (ii) as the

11 amount of the State family assistance

12 grant for the State for such fiscal year (de13 scribed in section 403(a)(2)) bears to the

14 amount appropriated for such fiscal year

15 in accordance with section 403(a)(4)(A).

16 ‘‘(ii) AMOUNT SPECIFIED.—The

17 amount specified in this subparagraph is—

18 ‘‘(I) for fiscal year 1996,

19 $25,000,000;

20 ‘‘(II) for fiscal year 1997,

21 $25,000,000; and

22 ‘‘(III) for each of fiscal years

23 1998, 1999, 2000, 2001, and 2002,

24 $20,000,000.
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1 ‘‘(C) ASSISTANCE TO STATES IN PROVID2 ING OR LOCATING ADULT-SUPERVISED SUP3 PORTIVE LIVING ARRANGEMENTS FOR UNMAR4 RIED TEENAGE PARENTS.—There are author5 ized to be appropriated and there are appro6 priated for fiscal years 1996, 1997, 1998, 1999,

7 2000, 2001, and 2002 such sums specified in

8 subparagraph (B)(ii) for the purpose of paying

9 grants to States in accordance with the provi10 sions of this paragraph.

11 ‘‘(e) REQUIREMENT THAT TEENAGE PARENTS AT12 TEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING

13 PROGRAM.—If a State provides assistance under the State

14 program funded under this part to an individual described

15 in subsection (d)(1)(B) who has not successfully com16 pleted a high-school education (or its equivalent) and

17 whose minor child is at least 12 weeks of age, the State

18 shall not provide such individual with assistance under the

19 program (or, at the option of the State, shall provide a

20 reduced level of such assistance) if the individual does not

21 participate in—

22 ‘‘(1) educational activities directed toward the

23 attainment of a high school diploma or its equiva24 lent; or
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1 ‘‘(2) an alternative educational or training pro2 gram that has been approved by the State.

3 ‘‘(f) GRANT INCREASED TO REWARD STATES THAT

4 REDUCE OUT-OF-WEDLOCK BIRTHS.—

5 ‘‘(1) IN GENERAL.—The amount of the grant

6 payable to a State under section 403(a)(1)(A) for

7 fiscal years 1998, 1999, and 2000 shall be increased

8 by—

9 ‘‘(A) an amount equal the product of $25

10 multiplied by the number of children in the

11 State in families with incomes below the poverty

12 line, according to the most recently available

13 census data, if—

14 ‘‘(i) the illegitimacy ratio of the State

15 for the most recent fiscal year for which

16 such information is available is at least 1

17 percentage point lower than the illegit18 imacy ratio of the State for fiscal year

19 1995 (or, if such information is not avail20 able, the first available year after 1995 for

21 which such data is available); and

22 ‘‘(ii) the rate of induced pregnancy

23 terminations for the same most recent fis24 cal year in the State is not higher than the

25 rate of induced pregnancy terminations in
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1 the State for fiscal year 1995 (or, the

2 same first available year); or

3 ‘‘(B) an amount equal the product of $50

4 multiplied by the number of children in the

5 State in families with incomes below the poverty

6 line, according to the most recently available

7 census data, if—

8 ‘‘(i) the illegitimacy ratio of the State

9 for the most recent fiscal year for which

10 information is available is at least 2 per11 centage points lower than the illegitimacy

12 ratio of the State for fiscal year 1995 (or,

13 if such information is not available, the

14 first available year after 1995 for which

15 such data is available); and

16 ‘‘(ii) the rate of induced pregnancy

17 terminations in the State for the same

18 most recent fiscal year is not higher than

19 the rate of induced pregnancy terminations

20 in the State for fiscal year 1995 (or, the

21 same first available fiscal year).

22 ‘‘(2) DETERMINATION OF THE SECRETARY.—

23 The Secretary shall not increase the grant amount

24 under paragraph (1) if the Secretary determines

25 that the relevant difference between the illegitimacy
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1 ratio of a State for an applicable fiscal year and the

2 illegitimacy ratio of such State for fiscal year 1995

3 or, where appropriate, the first available year after

4 1995 for which such data is available, is the result

5 of a change in State methods of reporting data used

6 to calculate the illegitimacy ratio or if the Secretary

7 determines that the relevant non-increase in the rate

8 of induced pregnancy terminations for an applicable

9 fiscal year as compared to fiscal year 1995 or, the

10 appropriate fiscal year, is the result of a change in

11 State methods of reporting data used to calculate

12 the rate of induced pregnancy terminations.

13 ‘‘(3) ILLEGITIMACY RATIO.—For purposes of

14 this subsection, the term ‘illegitimacy ratio’ means,

15 with respect to a State and a fiscal year—

16 ‘‘(A) the number of out-of-wedlock births

17 that occurred in the State during the most re18 cent fiscal year for which such information is

19 available; divided by

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

21 the State during the most recent fiscal year for

22 which such information is available.

23 ‘‘(4) POVERTY LINE.—For purposes of this

24 subsection, the term ‘poverty line’ has the meaning

25 given such term in section 403(a)(3)(D)(iii).
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1 ‘‘(5) AVAILABILITY OF AMOUNTS.—There are

2 authorized to be appropriated and there are appro3 priated such sums as may be necessary for fiscal

4 years 1998, 1999, and 2000 for the purpose of in5 creasing the amount of the grant payable to a State

6 under section 403(a)(1) in accordance with this sub7 section.

8 ‘‘(g) STATE OPTION TO DENY ASSISTANCE IN CER9 TAIN SITUATIONS.—Nothing in this subsection shall be

10 construed to restrict the authority of a State to exercise

11 its option to limit assistance under this part to individuals

12 if such limitation is not inconsistent with the provisions

13 of this part.

14 ‘‘SEC. 407. STATE PENALTIES.

15 ‘‘(a) IN GENERAL.—Subject to the provisions of sub16 section (b), the Secretary shall deduct from the grant oth17 erwise payable under section 403 the following penalties:

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

19 THIS PART.—If an audit conducted under section

20 408 finds that an amount paid to a State under sec21 tion 403 for a fiscal year has been used in violation

22 of this part, then the Secretary shall reduce the

23 amount of the grant otherwise payable to the State

24 under such section for the immediately succeeding

25 fiscal year quarter by the amount so used. If the
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1 State does not prove to the satisfaction of the Sec2 retary that such unlawful expenditure was not made

3 by the State in intentional violation of the require4 ments of this part, then the Secretary shall impose

5 an additional penalty of 5 percent of such grant (de6 termined without regard to this section).

7 ‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE8 PORT.—

9 ‘‘(A) IN GENERAL.—If the Secretary deter10 mines that a State has not, within 6 months

11 after the end of a fiscal year, submitted the re12 port required by section 409 for the fiscal year,

13 the Secretary shall reduce by 5 percent the

14 amount of the grant that would (in the absence

15 of this section) be payable to the State under

16 section 403 for the immediately succeeding fis17 cal year.

18 ‘‘(B) RESCISSION OF PENALTY.—The Sec19 retary shall rescind a penalty imposed on a

20 State under subparagraph (A) with respect to a

21 report for a fiscal year if the State submits the

22 report before the end of the immediately suc23 ceeding fiscal year.

24 ‘‘(3) FOR FAILURE TO SATISFY MINIMUM PAR25 TICIPATION RATES.—
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1 ‘‘(A) IN GENERAL.—If the Secretary deter2 mines that a State has failed to satisfy the min3 imum participation rates specified in section

4 404(a) for a fiscal year, the Secretary shall re5 duce the amount of the grant that would (in the

6 absence of this section) be payable to the State

7 under section 403 for the immediately succeed8 ing fiscal year by—

9 ‘‘(i) in the first year in which the

10 State fails to satisfy such rates, 5 percent;

11 and

12 ‘‘(ii) in subsequent years in which the

13 State fails to satisfy such rates, the per14 cent reduction determined under this sub15 paragraph (if any) in the preceding year,

16 increased by 5 percent.

17 ‘‘(B) PENALTY BASED ON SEVERITY OF

18 FAILURE.—The Secretary shall impose reduc19 tions under subparagraph (A) on the basis of

20 the degree of noncompliance.

21 ‘‘(4) FOR FAILURE TO PARTICIPATE IN THE IN22 COME AND ELIGIBILITY VERIFICATION SYSTEM.—If

23 the Secretary determines that a State program fund24 ed under this part is not participating during a fis25 cal year in the income and eligibility verification sys-
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1 tem required by section 1137, the Secretary shall re2 duce by not more than 5 percent the amount of the

3 grant that would (in the absence of this section) be

4 payable to the State under section 403 for the im5 mediately succeeding fiscal year.

6 ‘‘(5) FOR FAILURE TO COMPLY WITH PATER7 NITY ESTABLISHMENT AND CHILD SUPPORT EN8 FORCEMENT REQUIREMENTS UNDER PART D.—Not9 withstanding any other provision of this Act, if the

10 Secretary determines that the State agency that ad11 ministers a program funded under this part does not

12 enforce the penalties requested by the agency admin13 istering part D against recipients of assistance

14 under the State program who fail to cooperate in es15 tablishing paternity in accordance with such part,

16 the Secretary shall reduce by not more than 5 per17 cent the amount of the grant that would (in the ab18 sence of this section) be payable to the State under

19 section 403 for the immediately succeeding fiscal

20 year.

21 ‘‘(6) FOR FAILURE TO TIMELY REPAY A FED22 ERAL LOAN FUND FOR STATE WELFARE PRO23 GRAMS.—If the Secretary determines that a State

24 has failed to repay any amount borrowed from the

25 Federal Loan Fund for State Welfare Programs es-
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1 tablished under section 403(d) within the period of

2 maturity applicable to such loan, plus any interest

3 owed on such loan, then the Secretary shall reduce

4 the amount of the grant otherwise payable to the

5 State under section 403 for the immediately suc6 ceeding fiscal year quarter by the outstanding loan

7 amount, plus the interest owed on such outstanding

8 amount. The Secretary may not forgive any out9 standing loan amount nor interest owed thereon.

10 ‘‘(b) REQUIREMENTS.—

11 ‘‘(1) LIMITATION ON AMOUNT OF PENALTY.—

12 ‘‘(A) IN GENERAL.—In imposing the pen13 alties described in subsection (a), the Secretary

14 shall not reduce any quarterly payment to a

15 State by more than 25 percent.

16 ‘‘(B) CARRYFORWARD OF UNRECOVERED

17 PENALTIES.—To the extent that subparagraph

18 (A) prevents the Secretary from recovering dur19 ing a fiscal year the full amount of all penalties

20 imposed on a State under subsection (a) for a

21 prior fiscal year, the Secretary shall apply any

22 remaining amount of such penalties to the

23 grant otherwise payable to the State under sec24 tion 403 for the immediately succeeding fiscal

25 year.
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1 ‘‘(2) STATE FUNDS TO REPLACE REDUCTIONS

2 IN GRANT.—A State which has a penalty imposed

3 against it under subsection (a) shall expend addi4 tional State funds in an amount equal to the amount

5 of the penalty for the purpose of providing assist6 ance under the State program under this part.

7 ‘‘(3) REASONABLE CAUSE FOR NONCOMPLI8 ANCE.—The Secretary may not impose a penalty on

9 a State under subsection (a) if the Secretary deter10 mines that the State has reasonable cause for failing

11 to comply with a requirement for which a penalty is

12 imposed under such subsection.

13 ‘‘(c) CERTIFICATION OF AMOUNT OF PENALTIES.—

14 If the Secretary is required to reduce the amount of any

15 grant under this section, the Secretary shall certify the

16 amount of such reduction to the Secretary of the Treasury

17 and the Secretary of the Treasury shall reduce the amount

18 paid to the State under section 403 by such amount.

19 ‘‘(d) EFFECTIVE DATES.—

20 ‘‘(1) IN GENERAL.—The penalties described in

21 paragraphs (2) through (6) of subsection (a) shall

22 apply—

23 ‘‘(A) with respect to periods beginning 6

24 months after the Secretary issues final rules

25 with respect to such penalties; or
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1 ‘‘(B) with respect to fiscal years beginning

2 on or after October 1, 1996;

3 whichever is later.

4 ‘‘(2) MISUSE OF FUNDS.—The penalties de5 scribed in subsection (a)(1) shall apply with respect

6 to fiscal years beginning on or after October 1,

7 1995.

8 ‘‘SEC. 408. AUDITS.

9 ‘‘(a) IN GENERAL.—Each State shall, not less than

10 annually, audit the State expenditures from amounts re11 ceived under this part. Such audit shall—

12 ‘‘(1) determine the extent to which such ex13 penditures were or were not expended in accordance

14 with this part; and

15 ‘‘(2) be conducted by an approved entity (as de16 fined in subsection (b)) in accordance with generally

17 accepted auditing principles.

18 ‘‘(b) APPROVED ENTITY.—For purposes of sub19 section (a), the term ‘approved entity’ means an entity

20 that—

21 ‘‘(1) is approved by the Secretary of the Treas22 ury;

23 ‘‘(2) is approved by the chief executive officer

24 of the State; and
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1 ‘‘(3) is independent of any agency administer2 ing activities funded under this part.

3 ‘‘(c) AUDIT REPORT.—Not later than 30 days follow4 ing the completion of an audit under this subsection, a

5 State shall submit a copy of the audit to the State legisla6 ture, the Secretary of the Treasury, and the Secretary of

7 Health and Human Services.

8 ‘‘(d) ADDITIONAL ACCOUNTING REQUIREMENTS.—

9 The provisions of chapter 75 of title 31, United States

10 Code, shall apply to the audit requirements of this section.

11 ‘‘SEC. 409. DATA COLLECTION AND REPORTING.

12 ‘‘(a) IN GENERAL.—The Secretary, in consultation

13 with State and local government officials and other inter14 ested persons, shall develop a quality assurance system of

15 data collection and reporting that promotes accountability

16 and ensures the improvement and integrity of programs

17 funded under this part.

18 ‘‘(b) STATE SUBMISSIONS.—

19 ‘‘(1) IN GENERAL.—Not later than the 15th

20 day of the first month of each calendar quarter,

21 each State to which a grant is made under section

22 403(f) shall submit to the Secretary the data de23 scribed in paragraphs (2) and (3) with respect to

24 families described in paragraph (4).
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1 ‘‘(2) DISAGGREGATED DATA DESCRIBED.—The

2 data described in this paragraph with respect to

3 families described in paragraph (4) is a sample of

4 monthly disaggregated case record data containing

5 the following:

6 ‘‘(A) The age of the adults and children

7 (including pregnant women) in each family.

8 ‘‘(B) The marital and familial status of

9 each member of the family (including whether

10 the family is a 2-parent family and whether a

11 child is living with an adult relative other than

12 a parent).

13 ‘‘(C) The gender, educational level, work

14 experience, and race of the head of each family.

15 ‘‘(D) The health status of each member of

16 the family (including whether any member of

17 the family is seriously ill, disabled, or incapaci18 tated and is being cared for by another member

19 of the family).

20 ‘‘(E) The type and amount of any benefit

21 or assistance received by the family, including—

22 ‘‘(i) the amount of and reason for any

23 reduction in assistance, and
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1 ‘‘(ii) if assistance is terminated,

2 whether termination is due to employment,

3 sanction, or time limit.

4 ‘‘(F) Any benefit or assistance received by

5 a member of the family with respect to housing,

6 food stamps, job training, or the Head Start

7 program.

8 ‘‘(G) The number of months since the fam9 ily filed the most recent application for assist10 ance under the program and if assistance was

11 denied, the reason for the denial.

12 ‘‘(H) The number of times a family has

13 applied for and received assistance under the

14 State program and the number of months as15 sistance has been received each time assistance

16 has been provided to the family.

17 ‘‘(I) The employment status of the adults

18 in the family (including the number of hours

19 worked and the amount earned).

20 ‘‘(J) The date on which an adult in the

21 family began to engage in work, the number of

22 hours the adult engaged in work, the work ac23 tivity in which the adult participated, and the

24 amount of child care assistance provided to the

25 adult (if any).
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1 ‘‘(K) The number of individuals in each

2 family receiving assistance and the number of

3 individuals in each family not receiving assist4 ance, and the relationship of each individual to

5 the youngest child in the family.

6 ‘‘(L) The citizenship status of each mem7 ber of the family.

8 ‘‘(M) The housing arrangement of each

9 member of the family.

10 ‘‘(N) The amount of unearned income,

11 child support, assets, and other financial factors

12 considered in determining eligibility for assist13 ance under the State program.

14 ‘‘(O) The location in the State of each

15 family receiving assistance.

16 ‘‘(P) Any other data that the Secretary de17 termines is necessary to ensure efficient and ef18 fective program administration.

19 ‘‘(3) AGGREGATED MONTHLY DATA.—The data

20 described in this paragraph is the following aggre21 gated monthly data with respect to the families de22 scribed in paragraph (4):

23 ‘‘(A) The number of families.

24 ‘‘(B) The number of adults in each family.
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1 ‘‘(C) The number of children in each fam2 ily.

3 ‘‘(D) The number of families for which as4 sistance has been terminated because of em5 ployment, sanctions, or time limits.

6 ‘‘(4) FAMILIES DESCRIBED.—The families de7 scribed in this paragraph are—

8 ‘‘(A) families receiving assistance under a

9 State program funded under this part for each

10 month in the calendar quarter preceding the

11 calendar quarter in which the data is submit12 ted;

13 ‘‘(B) families applying for such assistance

14 during such preceding calendar quarter; and

15 ‘‘(C) families that became ineligible to re16 ceive such assistance during such preceding cal17 endar quarter.

18 ‘‘(5) APPROPRIATE SUBSETS OF DATA COL19 LECTED.—The Secretary shall determine appro20 priate subsets of the data described in paragraphs

21 (2) and (3) that a State is required to submit under

22 paragraph (1) with respect to families described in

23 subparagraphs (B) and (C) of paragraph (4).

24 ‘‘(6) SAMPLING AND OTHER METHODS.—The

25 Secretary shall provide the States with such case
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1 sampling plans and data collection procedures as the

2 Secretary deems necessary to produce statistically

3 valid estimates of each State’s program perform4 ance. The Secretary is authorized to develop and im5 plement procedures for verifying the quality of data

6 submitted by the States.

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

8 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The

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

10 include a statement of—

11 ‘‘(1) the total amount and percentage of the

12 Federal funds paid to the State under this part for

13 the fiscal year that are used to cover administrative

14 costs or overhead; and

15 ‘‘(2) the total amount of State funds that are

16 used to cover such costs or overhead.

17 ‘‘(d) REPORT ON STATE EXPENDITURES ON PRO18 GRAMS FOR NEEDY FAMILIES.—The report required by

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

20 of the total amount expended by the State during the fis21 cal year on the program under this part and the purposes

22 for which such amount was spent.

23 ‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI24 PATING IN WORK ACTIVITIES.—The report required by

25 subsection (a) for a fiscal year shall include the number
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1 of noncustodial parents in the State who participated in

2 work activities during the fiscal year.

3 ‘‘(f) REPORT ON CHILD SUPPORT COLLECTED.—The

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

5 include the total amount of child support collected by the

6 State agency administering the State program under part

7 D on behalf of a family receiving assistance under this

8 part.

9 ‘‘(g) REPORT ON CHILD CARE.—The report required

10 by subsection (a) for a fiscal year shall include the total

11 amount expended by the State for child care under the

12 program under this part, along with a description of the

13 types of child care provided, including child care provided

14 in the case of a family that—

15 ‘‘(1) has ceased to receive assistance under this

16 part because of employment; or

17 ‘‘(2) is not receiving assistance under this part

18 but would be at risk of becoming eligible for such as19 sistance if child care was not provided.

20 ‘‘(h) REPORT ON TRANSITIONAL SERVICES.—The re21 port required by subsection (a) for a fiscal year shall in22 clude the total amount expended by the State for providing

23 transitional services to a family that has ceased to receive

24 assistance under this part because of employment, along

25 with a description of such services.
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1 ‘‘(i) SECRETARY’S REPORT ON DATA PROCESSING.—

2 ‘‘(1) IN GENERAL.—Not later than 6 months

3 after the date of the enactment of the Work Oppor4 tunity Act of 1995, the Secretary shall prepare and

5 submit to the Congress a report on—

6 ‘‘(A) the status of the automated data

7 processing systems operated by the States to

8 assist management in the administration of

9 State programs under this part (whether in ef10 fect before or after October 1, 1995); and

11 ‘‘(B) what would be required to establish a

12 system capable of—

13 ‘‘(i) tracking participants in public

14 programs over time; and

15 ‘‘(ii) checking case records of the

16 States to determine whether individuals

17 are participating in public programs in 2

18 or more States.

19 ‘‘(2) PREFERRED CONTENTS.—The report re20 quired by paragraph (1) should include—

21 ‘‘(A) a plan for building on the automated

22 data processing systems of the States to estab23 lish a system with the capabilities described in

24 paragraph (1)(B); and
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1 ‘‘(B) an estimate of the amount of time re2 quired to establish such a system and of the

3 cost of establishing such a system.

4 ‘‘(j) REPORT TO CONGRESS.—Not later than 6

5 months after the end of fiscal year 1997, and each fiscal

6 year thereafter, the Secretary shall transmit to the Con7 gress a report describing—

8 ‘‘(1) whether the States are meeting—

9 ‘‘(A) the participation rates described in

10 section 404(a); and

11 ‘‘(B) the objectives of—

12 ‘‘(i) increasing employment and earn13 ings of needy families, and child support

14 collections; and

15 ‘‘(ii) decreasing out-of-wedlock preg16 nancies and child poverty;

17 ‘‘(3) the demographic and financial characteris18 tics of families applying for assistance, families re19 ceiving assistance, and families that become ineli20 gible to receive assistance;

21 ‘‘(4) the characteristics of each State program

22 funded under this part; and

23 ‘‘(5) the trends in employment and earnings of

24 needy families with minor children.
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1 ‘‘SEC. 410. RESEARCH, EVALUATIONS, AND NATIONAL STUD2 IES.

3 ‘‘(a) RESEARCH.—The Secretary shall conduct re4 search on the benefits, effects, and costs of operating dif5 ferent State programs funded under this part, including

6 time limits relating to eligibility for assistance. The re7 search shall include studies on the effects of different pro8 grams and the operation of such programs on welfare de9 pendency, illegitimacy, teen pregnancy, employment rates,

10 child well-being, and any other area the Secretary deems

11 appropriate.

12 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA13 TIVE APPROACHES TO REDUCING WELFARE DEPEND14 ENCY AND INCREASING CHILD WELL-BEING.—

15 ‘‘(1) IN GENERAL.—The Secretary may assist

16 States in developing, and shall evaluate, innovative

17 approaches for reducing welfare dependency and in18 creasing the well-being of minor children with re19 spect to recipients of assistance under programs

20 funded under this part. The Secretary may provide

21 funds for training and technical assistance to carry

22 out the approaches developed pursuant to this para23 graph.

24 ‘‘(2) EVALUATIONS.—In performing the evalua25 tions under paragraph (1), the Secretary shall, to
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1 the maximum extent feasible, use random assign2 ment as an evaluation methodology.

3 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec4 retary shall develop innovative methods of disseminating

5 information on any research, evaluations, and studies con6 ducted under this section, including the facilitation of the

7 sharing of information and best practices among States

8 and localities through the use of computers and other

9 technologies.

10 ‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF

11 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

12 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec13 retary shall rank annually the States to which

14 grants are paid under section 403 in the order of

15 their success in placing recipients of assistance

16 under the State program funded under this part into

17 long-term private sector jobs, reducing the overall

18 welfare caseload, and, when a practicable method for

19 calculating this information becomes available, di20 verting individuals from formally applying to the

21 State program and receiving assistance. In ranking

22 States under this subsection, the Secretary shall

23 take into account the average number of minor chil24 dren in families in the State that have incomes
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1 below the poverty line and the amount of funding

2 provided each State for such families.

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

4 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

5 review the programs of the 3 States most recently

6 ranked highest under paragraph (1) and the 3

7 States most recently ranked lowest under paragraph

8 (1) that provide parents with work experience, as9 sistance in finding employment, and other work

10 preparation activities and support services to enable

11 the families of such parents to leave the program

12 and become self-sufficient.

13 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF

14 ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

15 ‘‘(1) ANNUAL RANKING OF STATES.—

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

17 annually rank States to which grants are paid

18 under section 403 based on the following rank19 ing factors (developed with information reported

20 by the State under section 409(a)(13)):

21 ‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA22 TIOS.—The ratio represented by—

23 ‘‘(I) the total number of out-of24 wedlock births in families receiving as25 sistance under the State program
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1 under this part in the State for the

2 most recent fiscal year for which in3 formation is available; over

4 ‘‘(II) the total number of births

5 in families receiving assistance under

6 the State program under this part in

7 the State for such year.

8 ‘‘(ii) NET CHANGES IN THE OUT-OF9 WEDLOCK RATIO.—The difference between

10 the ratio described in subparagraph (A)(i)

11 for the most recent fiscal year for which

12 information is available and such State’s

13 ratio determined for the preceding year.

14 ‘‘(2) ANNUAL REVIEW.—The Secretary shall re15 view the programs of the 5 States most recently

16 ranked highest under paragraph (1) and the 5

17 States most recently ranked the lowest under para18 graph (1).

19 ‘‘(f) STUDY ON ALTERNATIVE OUTCOMES MEAS20 URES.—

21 ‘‘(1) STUDY.—The Secretary shall, in coopera22 tion with the States, study and analyze outcomes

23 measures for evaluating the success of a State in

24 moving individuals out of the welfare system through

25 employment as an alternative to the minimum par-
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1 ticipation rates described in section 404. The study

2 shall include a determination as to whether such al3 ternative outcomes measures should be applied on a

4 national or a State-by-State basis and a preliminary

5 assessment of the job placement performance bonus

6 established under section 403(f).

7 ‘‘(2) REPORT.—Not later than September 30,

8 1998, the Secretary shall submit to the Committee

9 on Finance of the Senate and the Committee on

10 Ways and Means of the House of Representatives a

11 report containing the findings of the study described

12 in paragraph (1).

13 ‘‘(g) STATE-INITIATED STUDIES.—A State shall be

14 eligible to receive funding to evaluate the State’s family

15 assistance program funded under this part if—

16 ‘‘(1) the State submits a proposal to the Sec17 retary for such evaluation,

18 ‘‘(2) the Secretary determines that the design

19 and approach of the evaluation is rigorous and is

20 likely to yield information that is credible and will

21 be useful to other States, and

22 ‘‘(3) unless otherwise waived by the Secretary,

23 the State provides a non-Federal share of at least 10

24 percent of the cost of such study.
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1 ‘‘SEC. 411. STUDY BY THE CENSUS BUREAU.

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

3 expand the Survey of Income and Program Participation

4 as necessary to obtain such information as will enable in5 terested persons to evaluate the impact of the amendments

6 made by title I of the Work Opportunity Act of 1995 on

7 a random national sample of recipients of assistance under

8 State programs funded under this part and (as appro9 priate) other low-income families, and in doing so, shall

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

11 births, welfare dependency, the beginning and end of wel12 fare spells, and the causes of repeat welfare spells.

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

14 Treasury of the United States not otherwise appropriated,

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

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

17 1997, 1998, 1999, and 2000 to carry out subsection (a).

18 ‘‘SEC. 412. WAIVERS.

19 ‘‘(a) CONTINUATION OF WAIVERS.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), if any waiver granted to a State under

22 section 1115 or otherwise which relates to the provi23 sion of assistance under a State plan under this part

24 is in effect or approved by the Secretary as of Octo25 ber 1, 1995, the amendments made by the Work Op26 portunity Act of 1995 shall not apply with respect
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1 to the State before the expiration (determined with2 out regard to any extensions) of the waiver to the

3 extent such amendments are inconsistent with the

4 terms of the waiver.

5 ‘‘(2) FINANCING LIMITATION.—Notwithstand6 ing any other provision of law, beginning with fiscal

7 year 1996, a State operating under a waiver de8 scribed in paragraph (1) shall receive the payment

9 described for such State for such fiscal year under

10 section 403, in lieu of any other payment provided

11 for in the waiver.

12 ‘‘(b) STATE OPTION TO TERMINATE WAIVER.—

13 ‘‘(1) IN GENERAL.—A State may terminate a

14 waiver described in subsection (a) before the expira15 tion of the waiver.

16 ‘‘(2) REPORT.—A State which terminates a

17 waiver under paragraph (1) shall submit a report to

18 the Secretary summarizing the waiver and any avail19 able information concerning the result or effect of

20 such waiver.

21 ‘‘(3) HOLD HARMLESS PROVISION.—

22 ‘‘(A) IN GENERAL.—Notwithstanding any

23 other provision of law, a State that, not later

24 than the date described in subparagraph (B),

25 submits a written request to terminate a waiver
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1 described in subsection (a) shall be held harm2 less for accrued cost neutrality liabilities in3 curred under the terms and conditions of such

4 waiver.

5 ‘‘(B) DATE DESCRIBED.—The date de6 scribed in this subparagraph is the later of—

7 ‘‘(i) January 1, 1996; or

8 ‘‘(ii) 90 days following the adjourn9 ment of the first regular session of the

10 State legislature that begins after the date

11 of the enactment of the Work Opportunity

12 Act of 1995.

13 ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT

14 WAIVERS.—The Secretary shall encourage any State oper15 ating a waiver described in subsection (a) to continue such

16 waiver and to evaluate, using random sampling and other

17 characteristics of accepted scientific evaluations, the result

18 or effect of such waiver.

19 ‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A

20 State may elect to continue one or more individual waivers

21 described in subsection (a)(1).

22 ‘‘SEC. 413. STATE AND COUNTY DEMONSTRATION PRO23 GRAMS.

24 ‘‘(a) NO LIMITATION OF STATE DEMONSTRATION

25 PROJECTS.—Nothing in this part shall be construed as
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1 limiting a State’s ability to conduct demonstration

2 projects for the purpose of identifying innovative or effec3 tive program designs in 1 or more political subdivisions

4 of the State: Provided, That such State contains more

5 than one county with a population of greater than

6 500,000.

7 ‘‘(b) COUNTY WELFARE DEMONSTRATION

8 PROJECT.—

9 ‘‘(1) IN GENERAL.—The Secretary of Health

10 and Human Services and the Secretary of Agri11 culture shall jointly enter into negotiations with all

12 counties having a population greater than 500,000

13 desiring to conduct a demonstration project de14 scribed in paragraph (2) for the purpose of estab15 lishing appropriate rules to govern the establishment

16 and operation of such project.

17 ‘‘(2) DEMONSTRATION PROJECT DESCRIBED.—

18 The demonstration project described in this para19 graph shall provide that—

20 ‘‘(A) a county participating in the dem21 onstration project shall have the authority and

22 duty to administer the operation of the program

23 described under this part as if the county were

24 considered a State for the purpose of this part;
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1 ‘‘(B) the State in which the county partici2 pating in the demonstration project is located

3 shall pass through directly to the county the

4 portion of the grant received by the State under

5 section 403 which the State determines is at6 tributable to the residents of such county; and

7 ‘‘(C) the duration of the project shall be

8 for 5 years.

9 ‘‘(3) COMMENCEMENT OF PROJECT.—After the

10 conclusion of the negotiations described in para11 graph (2), the Secretary of Health and Human

12 Services and the Secretary of Agriculture may au13 thorize a county to conduct the demonstration

14 project described in paragraph (2) in accordance

15 with the rules established during the negotiations.

16 ‘‘(4) REPORT.—Not later then 6 months after

17 the termination of a demonstration project operated

18 under this subsection, the Secretary of Health and

19 Human Services and the Secretary of Agriculture

20 shall submit to the Congress a report that in21 cludes—

22 ‘‘(A) a description of the demonstration

23 project;

24 ‘‘(B) the rules negotiated with respect to

25 the project; and
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1 ‘‘(C) the innovations (if any) that the

2 county was able to initiate under the project.

3 ‘‘(5) ELIGIBLE COUNTY.—A county may par4 ticipate in a demonstration project under this sub5 section if the county is—

6 ‘‘(A) a county that is already administer7 ing the welfare program under this part;

8 ‘‘(B) represents less than 25 percent of the

9 State’s total welfare caseload.

10 ‘‘SEC. 414. DIRECT FUNDING AND ADMINISTRATION BY IN11 DIAN TRIBES.

12 ‘‘(a) PURPOSE.—The purpose of this section is—

13 ‘‘(1) to strengthen and enhance the control and

14 flexibility of local governments over local programs;

15 and

16 ‘‘(2) in recognition of the principles contained

17 in the Indian Self-Determination and Education As18 sistance Act (25 U.S.C. 450 et seq.)—

19 ‘‘(A) to provide direct Federal funding to

20 Indian tribes for the tribal administration of

21 the program funded under this part; or

22 ‘‘(B) to enable Indian tribes to enter into

23 agreements, contracts, or compacts with inter24 tribal consortia, States, or other entities for the
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1 administration of such program on behalf of the

2 Indian tribe.

3 ‘‘(b) GRANT AMOUNTS FOR INDIAN TRIBES.—

4 ‘‘(1) IN GENERAL.—For each of fiscal years

5 1996, 1997, 1998, 1999, and 2000, the Secretary

6 shall pay to each Indian tribe that has an approved

7 tribal family assistance plan a tribal family assist8 ance grant for the fiscal year in an amount equal to

9 the amount determined under paragraph (2).

10 ‘‘(2) AMOUNT DETERMINED.—

11 ‘‘(A) IN GENERAL.—The amount deter12 mined under this paragraph is an amount equal

13 to the total amount of the Federal payments to

14 a State or States under section 403 for fiscal

15 year 1994 (as in effect during such fiscal year)

16 attributable to expenditures by the State or

17 States under part A and part F of this title (as

18 so in effect) in such year for Indian families re19 siding in the service area or areas identified by

20 the Indian tribe in subsection (c)(1)(C).

21 ‘‘(B) USE OF STATE SUBMITTED DATA.—

22 ‘‘(i) IN GENERAL.—The Secretary

23 shall use State submitted data to make

24 each determination under subparagraph

25 (A).
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1 ‘‘(ii) DISAGREEMENT WITH DETER2 MINATION.—If an Indian tribe or tribal or3 ganization disagrees with State submitted

4 data described under clause (i), the Indian

5 tribe or tribal organization may submit to

6 the Secretary such additional information

7 as may be relevant to making the deter8 mination under subparagraph (A) and the

9 Secretary may consider such information

10 before making such determination.

11 ‘‘(c) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—

12 ‘‘(1) IN GENERAL.—Any Indian tribe that de13 sires to receive a tribal family assistance grant shall

14 submit to the Secretary a 3-year tribal family assist15 ance plan that—

16 ‘‘(A) outlines the Indian tribe’s approach

17 to providing welfare-related services for the 3-

18 year period, consistent with the purposes of this

19 section;

20 ‘‘(B) specifies whether the welfare-related

21 services provided under the plan will be pro22 vided by the Indian tribe or through agree23 ments, contracts, or compacts with intertribal

24 consortia, States, or other entities;
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1 ‘‘(C) identifies the population and service

2 area or areas to be served by such plan;

3 ‘‘(D) provides that a family receiving as4 sistance under the plan may not receive duplica5 tive assistance from other State or tribal pro6 grams funded under this part;

7 ‘‘(E) identifies the employment opportuni8 ties in or near the service area or areas of the

9 Indian tribe and the manner in which the In10 dian tribe will cooperate and participate in en11 hancing such opportunities for recipients of as12 sistance under the plan consistent with any ap13 plicable State standards; and

14 ‘‘(F) applies the fiscal accountability provi15 sions of section 5(f)(1) of the Indian Self-De16 termination and Education Assistance Act (25

17 U.S.C. 450c(f)(1)), relating to the submission

18 of a single-agency audit report required by

19 chapter 75 of title 31, United States Code.

20 ‘‘(2) APPROVAL.—The Secretary shall approve

21 each tribal family assistance plan submitted in ac22 cordance with paragraph (1).

23 ‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this

24 section shall preclude the development and submis-
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1 sion of a single plan by the participating Indian

2 tribes of an intertribal consortium.

3 ‘‘(d) MINIMUM WORK PARTICIPATION REQUIRE4 MENTS AND TIME LIMITS.—The Secretary, with the par5 ticipation of Indian tribes, shall establish for each Indian

6 tribe receiving a grant under this section minimum work

7 participation requirements, appropriate time limits for re8 ceipt of welfare-related services under such grant, and

9 penalties against individuals—

10 ‘‘(1) consistent with the purposes of this sec11 tion;

12 ‘‘(2) consistent with the economic conditions

13 and resources available to each tribe; and

14 ‘‘(3) similar to comparable provisions in section

15 404(d).

16 ‘‘(e) EMERGENCY ASSISTANCE.—Nothing in this sec17 tion shall preclude an Indian tribe from seeking emergency

18 assistance from any Federal loan program or emergency

19 fund.

20 ‘‘(f) ACCOUNTABILITY.—Nothing in this section shall

21 be construed to limit the ability of the Secretary to main22 tain program funding accountability consistent with—

23 ‘‘(1) generally accepted accounting principles;

24 and
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1 ‘‘(2) the requirements of the Indian Self-Deter2 mination and Education Assistance Act (25 U.S.C.

3 450 et seq.).

4 ‘‘(g) TRIBAL PENALTIES.—For the purpose of ensur5 ing the proper use of tribal family assistance grants, the

6 following provisions shall apply to an Indian tribe with an

7 approved tribal assistance plan:

8 ‘‘(1) The provisions of subsections (a)(1),

9 (a)(6), and (b) of section 407, in the same manner

10 as such subsections apply to a State.

11 ‘‘(2) The provisions of section 407(a)(3), except

12 that such subsection shall be applied by substituting

13 ‘the minimum requirements established under sub14 section (d) of section 414’ for ‘the minimum partici15 pation rates specified in section 404’.

16 ‘‘(h) DATA COLLECTION AND REPORTING.—For the

17 purpose of ensuring uniformity in data collection, section

18 409 shall apply to an Indian tribe with an approved tribal

19 family assistance plan.

20 ‘‘(i) SPECIAL RULE FOR INDIAN TRIBES IN ALAS21 KA.—

22 ‘‘(1) IN GENERAL.—Notwithstanding any other

23 provision of this section, and except as provided in

24 paragraph (2), an Indian tribe in the State of Alas25 ka that receives a tribal family assistance grant
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1 under this section shall use such grant to operate a

2 program in accordance with the requirements appli3 cable to the program of the State of Alaska funded

4 under this part.

5 ‘‘(2) WAIVER.—An Indian tribe described in

6 paragraph (1) may apply to the appropriate State

7 authority to receive a waiver of the requirement of

8 paragraph (1).

9 ‘‘SEC. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

10 ‘‘The programs under this part and part D of this

11 title shall be administered by an Assistant Secretary for

12 Family Support within the Department of Health and

13 Human Services, who shall be appointed by the President,

14 by and with the advice and consent of the Senate, and

15 who shall be in addition to any other Assistant Secretary

16 of Health and Human Services provided for by law.

17 ‘‘SEC. 416. LIMITATION ON FEDERAL AUTHORITY.

18 ‘‘The Secretary of Health and Human Services and

19 the Secretary of the Treasury may not regulate the con20 duct of States under this part or enforce any provision

21 of this part, except to the extent expressly provided in this

22 part.

23 ‘‘SEC. 417. APPEAL OF ADVERSE DECISION.

24 ‘‘(a) IN GENERAL.—The Secretary shall notify the

25 chief executive officer of a State of any adverse decision
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1 or action under this part, including any decision with re2 spect to the State’s plan or the imposition of a penalty

3 under section 407.

4 ‘‘(b) ADMINISTRATIVE REVIEW OF ADVERSE DECI5 SION.—

6 ‘‘(1) IN GENERAL.—Within 60 days after the

7 date a State receives notice of an adverse decision

8 under this section, the State may appeal the deci9 sion, in whole or in part, to the Departmental Ap10 peals Board established in the Department of Health

11 and Human Services (hereafter referred to in this

12 section as the ‘Board’) by filing an appeal with the

13 Board.

14 ‘‘(2) PROCEDURAL RULES.—The Board shall

15 consider a State’s appeal on the basis of such docu16 mentation as the State may submit and as the

17 Board may require to support the final decision of

18 the Board. In deciding whether to uphold an adverse

19 decision or any portion thereof, the Board shall con20 duct a thorough review of the issues and take into

21 account all relevant evidence. The Board shall make

22 a final determination with respect to an appeal filed

23 under this paragraph not less than 60 days after the

24 date the appeal is filed.

25 ‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
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1 ‘‘(1) IN GENERAL.—Within 90 days after the

2 date of a final decision by the Board with respect to

3 an adverse decision regarding a State under this sec4 tion, the State may obtain judicial review of the final

5 decision (and the findings incorporated into the final

6 decision) by filing an action in—

7 ‘‘(A) the district court of the United States

8 for the judicial district in which the principal or

9 headquarters office of the State agency is lo10 cated; or

11 ‘‘(B) the United States District Court for

12 the District of Columbia.

13 ‘‘(2) PROCEDURAL RULES.—The district court

14 in which an action is filed shall review the final deci15 sion of the Board on the record established in the

16 administrative proceeding, in accordance with the

17 standards of review prescribed by subparagraphs (A)

18 through (E) of section 706(2) of title 5, United

19 States Code. The review shall be on the basis of the

20 documents and supporting data submitted to the

21 Board.

22 ‘‘SEC. 418. PERFORMANCE BONUS AND HIGH PERFORM23 ANCE BONUS.

24 ‘‘(a) IN GENERAL.—
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1 ‘‘(1) PERFORMANCE BONUS.—In addition to

2 the State family assistance grant, for fiscal year

3 2000, the Secretary shall pay to each qualified State

4 an amount equal to the State’s share of the perform5 ance bonus fund described in paragraph (3).

6 ‘‘(2) QUALIFIED STATE.—For purposes of this

7 subsection, the term ‘qualified State’ means a State

8 that during the measurement period—

9 ‘‘(A) exceeds the overall average perform10 ance achieved by all States with respect to a

11 measurement category, or

12 ‘‘(B) improves the State’s performance in

13 a measurement category by at least 15 percent

14 over the State’s baseline period.

15 ‘‘(3) BONUS FUND.—The amount of the bonus

16 fund for fiscal year 2000 shall be an amount equal

17 to 5 percent of the amount appropriated under sec18 tion 403(a)(2)(A) for such fiscal year.

19 ‘‘(b) HIGH PERFORMANCE BONUS.—

20 ‘‘(1) IN GENERAL.—In addition to the amount

21 provided under subsection (a), each of the 10 high

22 performance States in each measurement category

23 shall be entitled to receive a share of the high per24 formance bonus fund described in paragraph (3).
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1 ‘‘(2) HIGH PERFORMANCE STATES.—For pur2 poses of this subsection, the term ‘high performance

3 States’ means with respect to each measurement

4 category during the measurement period—

5 ‘‘(A) the 5 States that have the highest

6 percentage of improvement with respect to the

7 State’s performance in the measurement cat8 egory over the State’s baseline period; and

9 ‘‘(B) the 5 States that have the highest

10 overall average performance with respect to the

11 measurement category.

12 ‘‘(3) HIGH PERFORMANCE BONUS FUND.—

13 There are authorized to be appropriated and there

14 are appropriated the amount of the high perform15 ance bonus fund for fiscal year 2000 equal to the

16 amount of the reduction in State family assistance

17 grants for all States for fiscal years 1996, 1997,

18 1998, and 1999 resulting from the application of

19 section 407.

20 ‘‘(c) DEFINITIONS AND SPECIAL RULES.— For pur21 poses of this section:

22 ‘‘(1) MEASUREMENT CATEGORY.—A measure23 ment category means any of the following categories:

24 ‘‘(A) A reduction in the average length of

25 time families in the State receive assistance
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1 during a fiscal year under the State program

2 funded under this part.

3 ‘‘(B) An increase in the percentage of fam4 ilies receiving such assistance under this part

5 that receive child support payments under part

6 D.

7 ‘‘(C) An increase in the number of families

8 that received assistance under a State program

9 funded under this part in the preceding fiscal

10 year that became ineligible for assistance under

11 the State program as a result of unsubsidized

12 employment during such year.

13 ‘‘(D) An increase in the amount earned by

14 families that receive assistance under this part.

15 ‘‘(E) A reduction in the percentage of fam16 ilies that become eligible for assistance under

17 this part within 18 months after becoming ineli18 gible for such assistance.

19 ‘‘(2) MEASUREMENT PERIOD; BASELINE PE20 RIOD.—

21 ‘‘(A) MEASUREMENT PERIOD.—The term

22 ‘measurement period’ means the period begin23 ning not later than 6 months after the date of

24 the enactment of the Work Opportunity Act of

25 1995 and ending on September 30, 1999.
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1 ‘‘(B) BASELINE PERIOD.—The term ‘base2 line period’ means fiscal year 1994.

3 ‘‘(3) ALLOCATION FORMULA.—For purposes of

4 determining a State’s share of the performance

5 bonus fund under subsection (a)(1), and the State’s

6 share of the high performance bonus fund under

7 subsection (b)(1), the Secretary shall, not later than

8 June 30, 1999, develop and publish in the Federal

9 Register a formula for allocating amounts in the

10 performance bonus fund to qualified States and a

11 formula for allocating amounts in the high perform12 ance bonus fund to high performance States. Such

13 formulas shall be based on each State’s proportional

14 share of the total amount appropriated under section

15 403(a)(2)(A) for fiscal year 2000.

16 ‘‘SEC. 419. AMOUNTS FOR CHILD CARE.

17 ‘‘(a) CHILD CARE ALLOCATION.—

18 ‘‘(1) IN GENERAL.—From the amount appro19 priated under section 403(a)(4)(A) for a fiscal year,

20 the Secretary shall set aside an amount equal to the

21 total amount of the Federal payments for fiscal year

22 1994 to States under section—

23 ‘‘(A) 402(g)(3)(A) of this Act (as such sec24 tion was in effect before October 1, 1995) for
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1 amounts expended for child care pursuant to

2 paragraph (1) of such section;

3 ‘‘(B) 403(l)(1)(A) of this Act (as so in ef4 fect) for amounts expended for child care pur5 suant to section 402(g)(1)(A) of this Act, in the

6 case of a State with respect to which section

7 1108 of this Act applies; and

8 ‘‘(C) 403(n) of this Act (as so in effect)

9 for child care services pursuant to section

10 402(i) of this Act.

11 ‘‘(2) DISTRIBUTION.—From amounts set aside

12 for a fiscal year under paragraph (1), the Secretary

13 shall pay to a State an amount equal to the total

14 amounts of Federal payments for fiscal year 1994 to

15 the State under section—

16 ‘‘(A) 402(g)(3)(A) of this Act (as such sec17 tion was in effect before October 1, 1995) for

18 amounts expended for child care pursuant to

19 paragraph (1) of such section;

20 ‘‘(B) 403(l)(1)(A) of this Act (as so in ef21 fect) for amounts expended for child care pur22 suant to section 402(g)(1)(A) of this Act, in the

23 case of a State with respect to which section

24 1108 of this Act applies; and
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1 ‘‘(C) 403(n) of this Act (as so in effect)

2 for child care services pursuant to section

3 402(i) of this Act.

4 ‘‘(3) USE OF FUNDS.—Amounts received by a

5 State under paragraph (2) shall only be used to pro6 vide child care assistance under this part.

7 ‘‘(4) FEDERAL PAYMENTS.—For purposes of

8 paragraphs (1) and (2), Federal payments for fiscal

9 year 1994 means such payments as reported by the

10 State on February 14, 1995.

11 ‘‘(b) ADDITIONAL APPROPRIATION.—

12 ‘‘(1) IN GENERAL.—There are authorized to be

13 appropriated and there are appropriated,

14 $3,000,000,000 to be distributed to the States dur15 ing the 5-fiscal year period beginning in fiscal year

16 1996 for the provision of child care assistance.

17 ‘‘(2) DISTRIBUTION.—

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

19 use amounts made available under paragraph

20 (1) to make grants to States. The total amount

21 of grants awarded to a State under this para22 graph shall be based on the formula used for

23 determining the amount of Federal payments to

24 the State for fiscal year 1994 under section

25 403(n) (as such section was in effect before Oc-
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1 tober 1, 1995) for child care services pursuant

2 to section 402(i) as such amount relates to the

3 total amount of such Federal payments to all

4 States for such fiscal year.

5 ‘‘(B) FISCAL YEAR 2000.—With respect to

6 the last quarter of fiscal year 2000, if the Sec7 retary determines that any allotment to a State

8 under this subsection will not be used by such

9 State for carrying out the purpose for which the

10 allotment is available, the Secretary shall make

11 such allotment available for carrying out such

12 purpose to 1 or more other States which apply

13 for such funds to the extent the Secretary de14 termines that such other States will be able to

15 use such additional allotments for carrying out

16 such purpose. Such available allotments shall be

17 reallocated to a State pursuant to section

18 402(i) (as such section was in effect before Oc19 tober 1, 1995) by substituting ‘the number of

20 children residing in all States applying for such

21 funds’ for ‘the number of children residing in

22 the United States in the second preceding fiscal

23 year’. Any amount made available to a State

24 from an appropriation for a fiscal year in ac25 cordance with the preceding sentence shall, for
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1 purposes of this part, be regarded as part of

2 such State’s payment (as determined under this

3 subsection) for such year.

4 ‘‘(3) AMOUNT OF FUNDS.—The Secretary shall

5 pay to each eligible State in a fiscal year an amount

6 equal to the Federal medical assistance percentage

7 for such State for such fiscal year (as defined in sec8 tion 1905(b)) of so much of the expenditures by the

9 State for child care in such year as exceed the State

10 set-aside for such State under subsection (a) for

11 such year and the amount of State expenditures in

12 fiscal year 1994 that equal the non-Federal share

13 for the programs described in subparagraphs (A),

14 (B) and (C) of subsection (a)(1).

15 ‘‘(4) BUDGET SCORING.—Notwithstanding sec16 tion 257(b)(2) of the Balanced Budget and Emer17 gency Deficit Control Act of 1985, the baseline shall

18 assume that no grant shall be made under this sub19 section after fiscal year 2000.

20 ‘‘(c) ADMINISTRATIVE PROVISIONS.—

21 ‘‘(1) STATE OPTION.—For purposes of section

22 402(a)(1)(B), a State may, at its option, not require

23 a single parent with a child under the age of 6 to

24 participate in work for more than an average of 20

25 hours per week during a month and may count such
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1 parent as being engaged in work for a month for

2 purposes, of section 404(c)(1) if such parent partici3 pates in work for an average of 20 hours per week

4 during such month.

5 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in

6 this section shall be construed to provide an entitle7 ment to child care services to any child.

8 ‘‘SEC. 420. ELIGIBILITY FOR CHILD CARE ASSISTANCE.

9 Notwithstanding section 658T of the Child Care and

10 Development Block Grant Act of 1990, the State agency

11 specified in section 402(a)(6) shall determine eligibility for

12 child care assistance provided under this part in accord13 ance with criteria determined by the State.

14 ‘‘SEC. 421. COLLECTION OF OVERPAYMENTS FROM FED15 ERAL TAX REFUNDS.

16 ‘‘(a) IN GENERAL.—Upon receiving notice from the

17 Secretary of Health and Human Services that a State

18 agency administering a plan approved under this part has

19 notified the Secretary that a named individual has been

20 overpaid under the State plan approved under this part,

21 the Secretary of the Treasury shall determine whether any

22 amounts as refunds of Federal taxes paid are payable to

23 such individual, regardless of whether such individual filed

24 a tax return as a married or unmarried individual. If the

25 Secretary of the Treasury finds that any such amount is
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1 payable, the Secretary shall withhold from such refunds

2 an amount equal to the overpayment sought to be collected

3 by the State and pay such amount to the State agency.

4 ‘‘(b) REGULATIONS.—The Secretary of the Treasury

5 shall issue regulations, after review by the Secretary of

6 Health and Human Services, that provide—

7 ‘‘(1) that a State may only submit under sub8 section (a) requests for collection of overpayments

9 with respect to individuals—

10 ‘‘(A) who are no longer receiving assist11 ance under the State plan approved under this

12 part,

13 ‘‘(B) with respect to whom the State has

14 already taken appropriate action under State

15 law against the income or resources of the indi16 viduals or families involved to collect the past17 due legally enforceable debt; and

18 ‘‘(C) to whom the State agency has given

19 notice of its intent to request withholding by

20 the Secretary of the Treasury from the income

21 tax refunds of such individuals;

22 ‘‘(2) that the Secretary of the Treasury will

23 give a timely and appropriate notice to any other

24 person filing a joint return with the individual whose
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1 refund is subject to withholding under subsection

2 (a); and

3 ‘‘(3) the procedures that the State and the Sec4 retary of the Treasury will follow in carrying out

5 this section which, to the maximum extent feasible

6 and consistent with the specific provisions of this

7 section, will be the same as those issued pursuant to

8 section 464(b) applicable to collection of past-due

9 child support.’’.

10 (c) CONFORMING AMENDMENTS RELATING TO COL11 LECTION OF OVERPAYMENTS.—

12 (1) Section 6402 of the Internal Revenue Code

13 of 1986 (relating to authority to make credits or re14 funds) is amended—

15 (A) in subsection (a), by striking ‘‘(c) and

16 (d)’’ and inserting ‘‘(c), (d), and (e)’’;

17 (B) by redesignating subsections (e)

18 through (i) as subsections (f) through (j), re19 spectively; and

20 (C) by inserting after subsection (d) the

21 following:

22 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

23 IV–A OF THE SOCIAL SECURITY ACT.—The amount of

24 any overpayment to be refunded to the person making the

25 overpayment shall be reduced (after reductions pursuant
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1 to subsections (c) and (d), but before a credit against fu2 ture liability for an internal revenue tax) in accordance

3 with section 421 of the Social Security Act (concerning

4 recovery of overpayments to individuals under State plans

5 approved under part A of title IV of such Act).’’.

6 (2) Paragraph (10) of section 6103(l) of such

7 Code is amended—

8 (A) by striking ‘‘(c) or (d)’’ each place it

9 appears and inserting ‘‘(c), (d), or (e)’’; and

10 (B) by adding at the end of subparagraph

11 (B) the following new sentence: ‘‘Any return in12 formation disclosed with respect to section

13 6402(e) shall only be disclosed to officers and

14 employees of the State agency requesting such

15 information.’’.

16 (3) The matter preceding subparagraph (A) of

17 section 6103(p)(4) of such Code is amended—

18 (A) by striking ‘‘(5), (10)’’ and inserting

19 ‘‘(5)’’; and

20 (B) by striking ‘‘(9), or (12)’’ and insert21 ing ‘‘(9), (10), or (12)’’.

22 (4) Section 552a(a)(8)(B)(iv)(III) of title 5,

23 United States Code, is amended by striking ‘‘section

24 464 or 1137 of the Social Security Act’’ and insert-
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1 ing ‘‘section 421, 464, or 1137 of the Social Secu2 rity Act.’’.

3 SEC. 102. SERVICES PROVIDED BY CHARITABLE, RELI4 GIOUS, OR PRIVATE ORGANIZATIONS.

5 (a) IN GENERAL.—

6 (1) STATE OPTIONS.—Notwithstanding any

7 other provision of law, a State may—

8 (A) administer and provide services under

9 the programs described in subparagraphs (A)

10 and (B)(i) of paragraph (2) through contracts

11 with charitable, religious, or private organiza12 tions; and

13 (B) provide beneficiaries of assistance

14 under the programs described in subparagraphs

15 (A) and (B)(ii) of paragraph (2) with certifi16 cates, vouchers, or other forms of disbursement

17 which are redeemable with such organizations.

18 (2) PROGRAMS DESCRIBED.—The programs de19 scribed in this paragraph are the following pro20 grams:

21 (A) A State program funded under part A

22 of title IV of the Social Security Act (as amend23 ed by section 101).

24 (B) Any other program that is established

25 or modified under titles I, II, or X that—
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1 (i) permits contracts with organiza2 tions; or

3 (ii) permits certificates, vouchers, or

4 other forms of disbursement to be provided

5 to beneficiaries, as a means of providing

6 assistance.

7 (b) RELIGIOUS ORGANIZATIONS.—The purpose of

8 this section is to allow religious organizations to contract,

9 or to accept certificates, vouchers, or other forms of dis10 bursement under any program described in subsection

11 (a)(2), on the same basis as any other provider without

12 impairing the religious character of such organizations,

13 and without diminishing the religious freedom of bene14 ficiaries of assistance funded under such program.

15 (c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA16 NIZATIONS.—Religious organizations are eligible, on the

17 same basis as any other private organization, as contrac18 tors to provide assistance, or to accept certificates, vouch19 ers, or other forms of disbursement, under any program

20 described in subsection (a)(2) so long as the programs are

21 implemented consistent with the Establishment Clause of

22 the United States Constitution. Neither the Federal Gov23 ernment nor a State receiving funds under such programs

24 shall discriminate against an organization which is or ap25 plies to be a contractor to provide assistance, or which
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1 accepts certificates, vouchers, or other forms of disburse2 ment, on the basis that the organization has a religious

3 character.

4 (d) RELIGIOUS CHARACTER AND FREEDOM.—

5 (1) RELIGIOUS ORGANIZATIONS.—Notwith6 standing any other provision of law, any religious or7 ganization with a contract described in subsection

8 (a)(1)(A), or which accepts certificates, vouchers, or

9 other forms of disbursement under subsection

10 (a)(1)(B), shall retain its independence from Fed11 eral, State, and local governments, including such

12 organization’s control over the definition, develop13 ment, practice, and expression of its religious beliefs.

14 (2) ADDITIONAL SAFEGUARDS.—Neither the

15 Federal Government nor a State shall require a reli16 gious organization to—

17 (A) alter its form of internal governance;

18 or

19 (B) remove religious art, icons, scripture,

20 or other symbols;

21 in order to be eligible to contract to provide assist22 ance, or to accept certificates, vouchers, or other

23 forms of disbursement, funded under a program de24 scribed in subsection (a)(2).

25 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
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1 (1) IN GENERAL.—If an individual described in

2 paragraph (2) has an objection to the religious char3 acter of the organization or institution from which

4 the individual receives, or would receive, assistance

5 funded under any program described in subsection

6 (a)(2), the State in which the individual resides shall

7 provide such individual (if otherwise eligible for such

8 assistance) with assistance from an alternative pro9 vider the value of which is not less than the value

10 of the assistance which the individual would have re11 ceived from such organization.

12 (2) INDIVIDUAL DESCRIBED.—An individual de13 scribed in this paragraph is an individual who re14 ceives, applies for, or requests to apply for, assist15 ance under a program described in subsection (a)(2).

16 (f) NONDISCRIMINATION IN EMPLOYMENT.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), nothing in this section shall be construed

19 to modify or affect the provisions of any other Fed20 eral or State law or regulation that relates to dis21 crimination in employment on the basis of religion.

22 (2) EXCEPTION.—A religious organization with

23 a contract described in subsection (a)(1)(A), or

24 which accepts certificates, vouchers, or other forms

25 of disbursement under subsection (a)(1)(B), may re-
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1 quire that an employee rendering service pursuant to

2 such contract, or pursuant to the organization’s ac3 ceptance of certificates, vouchers, or other forms of

4 disbursement adhere to—

5 (A) the religious tenets and teachings of

6 such organization; and

7 (B) any rules of the organization regarding

8 the use of drugs or alcohol.

9 (g) NONDISCRIMINATION AGAINST BENE10 FICIARIES.—Except as otherwise provided in law, a reli11 gious organization shall not discriminate against an indi12 vidual in regard to rendering assistance funded under any

13 program described in subsection (a)(2) on the basis of reli14 gion, a religious belief, or refusal to actively participate

15 in a religious practice.

16 (h) FISCAL ACCOUNTABILITY.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), any religious organization contracting to

19 provide assistance funded under any program de20 scribed in subsection (a)(2) shall be subject to the

21 same regulations as other contractors to account in

22 accord with generally accepted auditing principles

23 for the use of such funds provided under such pro24 grams.
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1 (2) LIMITED AUDIT.—If such organization seg2 regates Federal funds provided under such programs

3 into separate accounts, then only the financial as4 sistance provided with such funds shall be subject to

5 audit.

6 (i) COMPLIANCE.—A religious organization which has

7 its rights under this section violated may enforce its claim

8 exclusively by asserting a civil action for such relief as may

9 be appropriate, including injunctive relief or damages, in

10 an appropriate State court against the entity or agency

11 that allegedly commits such violation.

12 SEC. 103. LIMITATIONS ON USE OF FUNDS FOR CERTAIN

13 PURPOSES.

14 No funds provided directly to institutions or organi15 zations to provide services and administer programs de16 scribed in section 102(a)(2) and programs established or

17 modified under this Act shall be expended for sectarian

18 worship or instruction. This section shall not apply to fi19 nancial assistance provided to or on behalf of beneficiaries

20 of assistance in the form of certificates, vouchers, or other

21 forms of disbursement, if such beneficiary may choose

22 where such assistance shall be redeemed.
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1 SEC. 104. CONTINUED APPLICATION OF CURRENT STAND2 ARDS UNDER MEDICAID PROGRAM.

3 (a) IN GENERAL.—Title XIX (42 U.S.C. 1396 et

4 seq.) 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 June 1,

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 June

5 1, 1995, if the waiver affects eligibility of individuals for

6 medical assistance under this title, such waiver may, at

7 the option of the State, continue to be applied in relation

8 to this title after the date the waiver would otherwise ex9 pire.’’.

10 (b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.

11 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) (42 U.S.C. 1396a(c)) is amended by striking

24 ‘‘if—’’ and all that follows and inserting the following: ‘‘if

25 the State requires individuals described in subsection
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1 (l)(1) to apply for assistance under the State program

2 funded under part A of title IV as a condition of applying

3 for or receiving medical assistance under this title.’’.

4 (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended

5 by striking paragraph (9).

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

7 this section shall apply to medical assistance furnished for

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

9 SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

10 CAREGIVERS FOR THEIR GRANDCHILDREN.

11 (a) IN GENERAL.—Not later than 90 days after the

12 date of the enactment of this Act, the Secretary of Com13 merce (hereafter in this section referred to as the ‘‘Sec14 retary’’), in carrying out the provisions of section 141 of

15 title 13, United States Code, shall expand the data collec16 tion efforts of the Bureau of the Census (hereafter in this

17 section referred to as the ‘‘Bureau’’) to enable the Bureau

18 to collect statistically significant data, in connection with

19 its decennial census and its mid-decade census, concerning

20 the growing trend of grandparents who are the primary

21 caregivers for their grandchildren.

22 (b) EXPANDED CENSUS QUESTION.—In carrying out

23 the provisions of subsection (a), the Secretary shall expand

24 the Bureau’s census question that details households

25 which include both grandparents and their grandchildren.
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1 The expanded question shall be formulated to distinguish

2 between the following households:

3 (1) A household in which a grandparent tempo4 rarily provides a home for a grandchild for a period

5 of weeks or months during periods of parental dis6 tress.

7 (2) A household in which a grandparent pro8 vides a home for a grandchild and serves as the pri9 mary caregiver for the grandchild.

10 SEC. 105A. DEVELOPMENT OF PROTOTYPE OF COUNTER11 FEIT-RESISTANT SOCIAL SECURITY CARD RE12 QUIRED.

13 (a) DEVELOPMENT.—

14 (1) IN GENERAL.—The Commissioner of Social

15 Security (hereafter in this section referred to as the

16 ‘‘Commissioner’’) shall in accordance with the provi17 sions of this section develop a prototype of a coun18 terfeit-resistant social security card. Such prototype

19 card shall—

20 (A) be made of a durable, tamper-resistant

21 material such as plastic or polyester,

22 (B) employ technologies that provide secu23 rity features, such as magnetic stripes,

24 holograms, and integrated circuits, and
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1 (C) be developed so as to provide individ2 uals with reliable proof of citizenship or legal

3 resident alien status.

4 (2) ASSISTANCE BY ATTORNEY GENERAL.—The

5 Attorney General of the United States shall provide

6 such information and assistance as the Commis7 sioner deems necessary to achieve the purposes of

8 this section.

9 (b) STUDY AND REPORT.—

10 (1) IN GENERAL.—The Commissioner shall con11 duct a study and issue a report to Congress which

12 examines different methods of improving the social

13 security card application process.

14 (2) ELEMENTS OF STUDY.—The study shall in15 clude an evaluation of the cost and work load impli16 cations of issuing a counterfeit-resistant social secu17 rity card for all individuals over a 3, 5, and 10 year

18 period. The study shall also evaluate the feasibility

19 and cost implications of imposing a user fee for re20 placement cards and cards issued to individuals who

21 apply for such a card prior to the scheduled 3, 5,

22 and 10 year phase-in options.

23 (3) DISTRIBUTION OF REPORT.—Copies of the

24 report described in this subsection along with a fac25 simile of the prototype card as described in sub-
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1 section (a) shall be submitted to the Committees on

2 Ways and Means and Judiciary of the House of

3 Representatives and the Committees on Finance and

4 Judiciary of the Senate within l year of the date of

5 the enactment of this Act.

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated and are appropriated

8 from the Federal Old-Age and Survivors Insurance Trust

9 Fund such sums as may be necessary to carry out the

10 purposes of this section.

11 SEC. 106. CONFORMING AMENDMENTS TO THE SOCIAL SE12 CURITY ACT.

13 (a) AMENDMENTS TO TITLE II.—

14 (1) Section 205(c)(2)(C)(vi) (42 U.S.C.

15 405(c)(2)(C)(vi)), as so redesignated by section

16 321(a)(9)(B) of the Social Security Independence

17 and Program Improvements Act of 1994, is amend18 ed—

19 (A) by inserting ‘‘an agency administering

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

21 before ‘‘an agency operating’’; and

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

23 Act’’ and inserting ‘‘D of such title’’.
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1 (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is

2 amended by inserting ‘‘under a State program fund3 ed under’’ before ‘‘part A of title IV’’.

4 (b) AMENDMENT TO PART B OF TITLE IV.—Section

5 422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking

6 ‘‘under the State plan approved’’ and inserting ‘‘under the

7 State program funded.’’.

8 (c) AMENDMENTS TO PART D OF TITLE IV.—

9 (1) Section 451 (42 U.S.C. 651) is amended by

10 striking ‘‘aid’’ and inserting ‘‘assistance under a

11 State program funded’’.

12 (2) Section 452(a)(10)(C) (42 U.S.C.

13 652(a)(10)(C)) is amended—

14 (A) by striking ‘‘aid to families with de15 pendent children’’ and inserting ‘‘assistance

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

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

18 ‘‘such assistance’’; and

19 (C) by striking ‘‘402(a)(26) or’’.

20 (3) Section 452(a)(10)(F) (42 U.S.C.

21 652(a)(10)(F)) is amended—

22 (A) by striking ‘‘aid under a State plan ap23 proved’’ and inserting ‘‘assistance under a State

24 program funded’’; and
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1 (B) by striking ‘‘in accordance with the

2 standards referred to in section

3 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

4 State’’.

5 (4) Section 452(b) (42 U.S.C. 652(b)) is

6 amended in the first sentence by striking ‘‘aid under

7 the State plan approved under part A’’ and inserting

8 ‘‘assistance under a State program funded under

9 part A’’.

10 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

11 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

12 and inserting ‘‘1115(b)’’.

13 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

14 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

15 being paid under the State’s plan approved under

16 part A or E’’ and inserting ‘‘assistance is being pro17 vided under the State program funded under part A

18 or aid is being paid under the State’s plan approved

19 under part E’’.

20 (7) Section 452(g)(2)(A) (42 U.S.C.

21 652(g)(2)(A)) is amended in the matter following

22 clause (iii) by striking ‘‘aid was being paid under the

23 State’s plan approved under part A or E’’ and in24 serting ‘‘assistance was being provided under the
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1 State program funded under part A or aid was being

2 paid under the State’s plan approved under part E’’.

3 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

4 amended in the matter following subparagraph

5 (B)—

6 (A) by striking ‘‘who is a dependent child’’

7 and inserting ‘‘with respect to whom assistance

8 is being provided under the State program

9 funded under part A’’;

10 (B) by inserting ‘‘by the State agency ad11 ministering the State plan approved under this

12 part’’ after ‘‘found’’; and

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

14 and inserting ‘‘with the State in establishing

15 paternity’’.

16 (9) Section 452(h) (42 U.S.C. 652(h)) is

17 amended by striking ‘‘under section 402(a)(26)’’.

18 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

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

20 under a State program funded’’.

21 (11) Section 454 (42 U.S.C. 654)) is amend22 ed—

23 (A) in paragraph (5)(A)—

24 (i) by striking ‘‘under section

25 402(a)(26)’’; and
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1 (ii) by striking ‘‘except that this para2 graph shall not apply to such payments for

3 any month following the first month in

4 which the amount collected is sufficient to

5 make such family ineligible for assistance

6 under the State plan approved under part

7 A;’’; and

8 (B) in paragraph (6)(D), by striking ‘‘aid

9 under a State plan approved’’ and inserting

10 ‘‘assistance under a State program funded’’.

11 (12) Section 456 (42 U.S.C. 656) is amended—

12 (A) in subsection (a)(1), by striking

13 ‘‘under section 402(a)(26)’’; and

14 (B) by striking subsection (b) and insert15 ing the following:

16 ‘‘(b) A debt which is a support obligation enforceable

17 under this title is not released by a discharge in bank18 ruptcy under title 11, United States Code.’’.

19 (13) Section 466(a)(3)(B) (42 U.S.C.

20 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)

21 or’’.

22 (14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

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

24 under a State program funded’’.
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1 (15) Section 469(a) (42 U.S.C. 669(a)) is

2 amended—

3 (A) by striking ‘‘aid under plans approved’’

4 and inserting ‘‘assistance under State programs

5 funded’’; and

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

7 ‘‘such assistance’’.

8 (d) AMENDMENTS TO PART E OF TITLE IV.—

9 (1) Section 470 (42 U.S.C. 670) is amended—

10 (A) by striking ‘‘would be’’ and inserting

11 ‘‘would have been’’; and

12 (B) by inserting ‘‘(as such plan was in ef13 fect on June 1, 1995)’’ after ‘‘part A’’.

14 (2) Section 471(17) (42 U.S.C. 671(17)) is

15 amended by striking ‘‘plans approved under parts A

16 and D’’ and inserting ‘‘program funded under part

17 A and plan approved under part D’’.

18 (3) Section 472(a) (42 U.S.C. 672(a)) is

19 amended—

20 (A) in the matter preceding paragraph

21 (1)—

22 (i) by striking ‘‘would meet’’ and in23 serting ‘‘would have met’’;
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1 (ii) by inserting ‘‘(as such sections

2 were in effect on June 1, 1995)’’ after

3 ‘‘407’’; and

4 (iii) by inserting ‘‘(as so in effect)’’

5 after ‘‘406(a)’’; and

6 (B) in paragraph (4)—

7 (i) in subparagraph (A)—

8 (I) by inserting ‘‘would have’’

9 after ‘‘(A)’’; and

10 (II) by inserting ‘‘(as in effect on

11 June 1, 1995)’’ after ‘‘section 402’’;

12 and

13 (ii) in subparagraph (B)(ii), by insert14 ing ‘‘(as in effect on June 1, 1995)’’ after

15 ‘‘406(a)’’.

16 (4) Section 472(h) (42 U.S.C. 672(h)) is

17 amended to read as follows:

18 ‘‘(h)(1) For purposes of title XIX, any child with re19 spect to whom foster care maintenance payments are

20 made under this section shall be deemed to be a dependent

21 child as defined in section 406 (as in effect as of June

22 1, 1995) and shall be deemed to be a recipient of aid to

23 families with dependent children under part A of this title

24 (as so in effect). For purposes of title XX, any child with

25 respect to whom foster care maintenance payments are
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1 made under this section shall be deemed to be a minor

2 child in a needy family under a State program funded

3 under part A and shall be deemed to be a recipient of

4 assistance under such part.

5 ‘‘(2) For purposes of paragraph (1), a child whose

6 costs in a foster family home or child care institution are

7 covered by the foster care maintenance payments being

8 made with respect to the child’s minor parent, as provided

9 in section 475(4)(B), shall be considered a child with re10 spect to whom foster care maintenance payments are

11 made under this section.’’.

12 (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is

13 amended—

14 (A) in subparagraph (A)(i)—

15 (i) by inserting ‘‘(as such sections

16 were in effect on June 1, 1995)’’ after

17 ‘‘407’’;

18 (ii) by inserting ‘‘(as so in effect)’’

19 after ‘‘specified in section 406(a)’’; and

20 (iii) by inserting ‘‘(as such section was

21 in effect on June 1, 1995)’’ after ‘‘403’’;

22 (B) in subparagraph (B)(i)—

23 (i) by inserting ‘‘would have’’ after

24 ‘‘(B)(i)’’; and
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1 (ii) by inserting ‘‘(as in effect on June

2 1, 1995)’’ after ‘‘section 402’’; and

3 (C) in subparagraph (B)(ii)(II), by insert4 ing ‘‘(as in effect on June 1, 1995)’’ after

5 ‘‘406(a)’’.

6 (6) Section 473(b) (42 U.S.C. 673(b)) is

7 amended to read as follows:

8 ‘‘(b)(1) For purposes of title XIX, any child who is

9 described in paragraph (3) shall be deemed to be a de10 pendent child as defined in section 406 (as in effect as

11 of June 1, 1995) and shall be deemed to be a recipient

12 of aid to families with dependent children under part A

13 of this title (as so in effect) in the State where such child

14 resides.

15 ‘‘(2) For purposes of title XX, any child who is de16 scribed in paragraph (3) shall be deemed to be a minor

17 child in a needy family under a State program funded

18 under part A and shall be deemed to be a recipient of

19 assistance under such part.

20 ‘‘(3) A child described in this paragraph is any

21 child—

22 ‘‘(A)(i) who is a child described in subsection

23 (a)(2), and

24 ‘‘(ii) with respect to whom an adoption assist25 ance agreement is in effect under this section
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1 (whether or not adoption assistance payments are

2 provided under the agreement or are being made

3 under this section), including any such child who has

4 been placed for adoption in accordance with applica5 ble State and local law (whether or not an interlocu6 tory or other judicial decree of adoption has been is7 sued), or

8 ‘‘(B) with respect to whom foster care mainte9 nance payments are being made under section 472.

10 ‘‘(4) For purposes of paragraphs (1) and (2), a child

11 whose costs in a foster family home or child-care institu12 tion are covered by the foster care maintenance payments

13 being made with respect to the child’s minor parent, as

14 provided in section 475(4)(B), shall be considered a child

15 with respect to whom foster care maintenance payments

16 are being made under section 472.’’.

17 (e) AMENDMENT TO TITLE X.—Section 1002(a)(7)

18 (42 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to

19 families with dependent children under the State plan ap20 proved under section 402 of this Act’’ and inserting ‘‘as21 sistance under a State program funded under part A of

22 title IV’’.

23 (f) AMENDMENTS TO TITLE XI.—

24 (1) Section 1109 (42 U.S.C. 1309) is amended

25 by striking ‘‘or part A of title IV,’’.
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1 (2) Section 1115 (42 U.S.C. 1315) is amend2 ed—

3 (A) in subsection (a)(2)—

4 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

5 (ii) by striking ‘‘403,’’;

6 (iii) by striking the period at the end

7 and inserting ‘‘, and’’; and

8 (iv) by adding at the end the following

9 new subparagraph:

10 ‘‘(B) costs of such project which would not oth11 erwise be a permissible use of funds under part A

12 of title IV and which are not included as part of the

13 costs of projects under section 1110, shall to the ex14 tent and for the period prescribed by the Secretary,

15 be regarded as a permissible use of funds under

16 such part.’’; and

17 (B) in subsection (c)(3), by striking

18 ‘‘under the program of aid to families with de19 pendent children’’ and inserting ‘‘part A of

20 such title’’.

21 (3) Section 1116 (42 U.S.C. 1316) is amend22 ed—

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

24 (d), by striking ‘‘or part A of title IV,’’; and
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1 (B) in subsection (a)(3), by striking

2 ‘‘404,’’.

3 (4) Section 1118 (42 U.S.C. 1318) is amend4 ed—

5 (A) by striking ‘‘403(a),’’;

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

7 and

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

9 American Samoa, mean 75 per centum with re10 spect to part A of title IV’’.

11 (5) Section 1119 (42 U.S.C. 1319) is amend12 ed—

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

14 (B) by striking ‘‘403(a),’’.

15 (6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

16 amended by striking ‘‘or part A of title IV,’’.

17 (7) Section 1136 (42 U.S.C. 1320b–6) is re18 pealed.

19 (8) Section 1137 (42 U.S.C. 1320b–7) is

20 amended—

21 (A) in subsection (b), by striking para22 graph (1) and inserting the following:

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

24 title IV of this Act;’’; and

25 (B) in subsection (d)(1)(B)—
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1 (i) by striking ‘‘In this subsection—’’

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

3 inserting ‘‘In this subsection, in’’;

4 (ii) by redesignating subclauses (I),

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

6 and

7 (iii) by moving such redesignated ma8 terial 2 ems to the left.

9 (9) Section 1108 (42 U.S.C. 1308) is amend10 ed—

11 (A) in subsection (a)—

12 (i) in the matter preceding paragraph

13 (1)—

14 (I) by inserting ‘‘(or paid, in the

15 case of part A of title IV)’’ after ‘‘cer16 tified’’; and

17 (II) by striking ‘‘or, in the case

18 of’’ and all that follows through ‘‘sec19 tion 403(k)’’;

20 (ii) in paragraph (1)—

21 (I) in subparagraph (F), by strik22 ing ‘‘or’’;

23 (II) in subparagraph (G), by

24 striking ‘‘the fiscal year 1989 and

25 each fiscal year thereafter;’’ and in-
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1 serting ‘‘each of the fiscal years 1989

2 through 1995, or’’; and

3 (III) by inserting after subpara4 graph (G), the following new subpara5 graph:

6 ‘‘(H) $100,039,000 with respect to fiscal

7 year 1996 and each fiscal year thereafter;’’;

8 (iii) in paragraph (2)—

9 (I) in subparagraph (F), by strik10 ing ‘‘or’’;

11 (II) in subparagraph (G), by

12 striking ‘‘the fiscal year 1989 and

13 each fiscal year thereafter;’’ and in14 serting ‘‘each of the fiscal years 1989

15 through 1995, or’’; and

16 (III) by inserting after subpara17 graph (G), the following new subpara18 graph:

19 ‘‘(H) $3,489,000 with respect to fiscal

20 year 1996 and each fiscal year thereafter;’’; and

21 (iv) in paragraph (3)—

22 (I) in subparagraph (F), by strik23 ing ‘‘or’’;

24 (II) in subparagraph (G), by

25 striking ‘‘the fiscal year 1989 and
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1 each fiscal year thereafter.’’ and in2 serting ‘‘each of the fiscal years 1989

3 through 1995, or’’; and

4 (III) by inserting after subpara5 graph (G), the following new subpara6 graph:

7 ‘‘(H) $4,593,000 with respect to fiscal

8 year 1996 and each fiscal year thereafter.’’; and

9 (B) in subsection (d), by striking ‘‘(exclu10 sive of any amounts’’ and all that follows

11 through ‘‘section 403(k) applies)’’.

12 (g) AMENDMENT TO TITLE XIV.—Section

13 1402(a)(7) (42 U.S.C. 1352(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 (h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

19 RESPECT TO THE TERRITORIES.—Section 1602(a)(11),

20 as in effect without regard to the amendment made by

21 section 301 of the Social Security Amendments of 1972

22 (42 U.S.C. 1382 note), is amended by striking ‘‘aid under

23 the State plan approved’’ and inserting ‘‘assistance under

24 a State program funded’’.
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1 (i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

2 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42

3 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

4 a State program funded under part A of title IV,’’.

5 SEC. 107. CONFORMING AMENDMENTS TO THE FOOD

6 STAMP ACT OF 1977 AND RELATED PROVI7 SIONS.

8 (a) Section 5 of the Food Stamp Act of 1977 (7

9 U.S.C. 2014) is amended—

10 (1) in the second sentence of subsection (a), by

11 striking ‘‘plan approved’’ and all that follows

12 through ‘‘title IV of the Social Security Act’’ and in13 serting ‘‘program funded under part A of title IV of

14 the Social Security Act (42 U.S.C. 601 et seq.) that

15 the Secretary determines complies with standards

16 established by the Secretary that ensure that the

17 standards under the State program are comparable

18 to or more restrictive than those in effect on June

19 1, 1995’’;

20 (2) in subsection (d)(5)—

21 (A) by striking ‘‘assistance to families with

22 dependent children’’ and inserting ‘‘assistance

23 under a State program funded’’; and
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1 (B) by striking paragraph (13) and redes2 ignating paragraphs (14), (15), and (16) as

3 paragraphs (13), (14), and (15), respectively;

4 (3) in subsection (j), by striking ‘‘plan approved

5 under part A of title IV of such Act (42 U.S.C. 601

6 et seq.)’’ and inserting ‘‘program funded under part

7 A of title IV of the Act (42 U.S.C. 601 et seq.) that

8 the Secretary determines complies with standards

9 established by the Secretary that ensure that the

10 standards under the State program are comparable

11 to or more restrictive than those in effect on June

12 1, 1995’’.

13 (b) Section 6 of such Act (7 U.S.C. 2015) is amend14 ed—

15 (1) in subsection (c)(5), by striking ‘‘the State

16 plan approved’’ and inserting ‘‘the State program

17 funded’’;

18 (2) in subsection (e)—

19 (A) by striking ‘‘aid to families with de20 pendent children’’ and inserting ‘‘benefits under

21 a State program funded’’; and

22 (B) by inserting before the semicolon the

23 following: ‘‘that the Secretary determines com24 plies with standards established by the Sec25 retary that ensure that the standards under the
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1 State program are comparable to or more re2 strictive than those in effect on June 1, 1995’’;

3 and

4 (3) by adding at the end the following new sub5 section:

6 ‘‘(i) Notwithstanding any other provision of this Act,

7 a household may not receive benefits under this Act as

8 a result of the household’s eligibility under a State pro9 gram funded under part A of title IV of the Social Secu10 rity Act (42 U.S.C. 601 et seq.), unless the Secretary de11 termines that any household with income above 130 per12 cent of the poverty guidelines is not eligible for the pro13 gram.’’.

14 (c) Section 16(g)(4) of such Act (7 U.S.C.

15 2025(g)(4)) is amended by striking ‘‘State plans under the

16 Aid to Families with Dependent Children Program under’’

17 and inserting ‘‘State programs funded under part A of’’.

18 (d) Section 17 of such Act (7 U.S.C. 2026) is amend19 ed—

20 (1) in the first sentence of subsection (b)(1)(A),

21 by striking ‘‘to aid to families with dependent chil22 dren under part A of title IV of the Social Security

23 Act’’ and inserting ‘‘or are receiving assistance

24 under a State program funded under part A of title
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1 IV of the Social Security Act (42 U.S.C. 601 et

2 seq.)’’; and

3 (2) in subsection (b)(3), by adding at the end

4 the following new subparagraph:

5 ‘‘(I) The Secretary may not grant a waiver

6 under this paragraph on or after October 1, 1995.

7 Any reference in this paragraph to a provision of

8 title IV of the Social Security Act shall be deemed

9 to be a reference to such provision as in effect on

10 September 30, 1995.’’;

11 (e) Section 20 of such Act (7 U.S.C. 2029) is amend12 ed—

13 (1) in subsection (a)(2)(B) by striking ‘‘operat14 ing—’’ and all that follows through ‘‘(ii) any other’’

15 and inserting ‘‘operating any’’; and

16 (2) in subsection (b)—

17 (A) in paragraph (1)—

18 (i) by striking ‘‘(b)(1) A household’’

19 and inserting ‘‘(b) A household’’; and

20 (ii) in subparagraph (B), by striking

21 ‘‘training program’’ and inserting ‘‘activ22 ity’’;

23 (B) by striking paragraph (2); and
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1 (C) by redesignating subparagraphs (A)

2 through (F) as paragraphs (1) through (6), re3 spectively.

4 (f) Section 5(h)(1) of the Agriculture and Consumer

5 Protection Act of 1973 (Public Law 93–186; 7 U.S.C.

6 612c note) is amended by striking ‘‘the program for aid

7 to families with dependent children’’ and inserting ‘‘the

8 State program funded’’.

9 (g) Section 9 of the National School Lunch Act (42

10 U.S.C. 1758) is amended—

11 (1) in subsection (b)—

12 (A) in paragraph (2)(C)(ii)(II)—

13 (i) by striking ‘‘program for aid to

14 families with dependent children’’ and in15 serting ‘‘State program funded’’; and

16 (ii) by inserting before the period at

17 the end the following: ‘‘that the Secretary

18 determines complies with standards estab19 lished by the Secretary that ensure that

20 the standards under the State program are

21 comparable to or more restrictive than

22 those in effect on June 1, 1995’’; and

23 (B) in paragraph (6)—

24 (i) in subparagraph (A)(ii)—
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1 (I) by striking ‘‘an AFDC assist2 ance unit (under the aid to families

3 with dependent children program au4 thorized’’ and inserting ‘‘a family

5 (under the State program funded’’;

6 and

7 (II) by striking ‘‘, in a State’’

8 and all that follows through

9 ‘‘9902(2)))’’ and inserting ‘‘that the

10 Secretary determines complies with

11 standards established by the Secretary

12 that ensure that the standards under

13 the State program are comparable to

14 or more restrictive than those in effect

15 on June 1, 1995’’; and

16 (ii) in subparagraph (B), by striking

17 ‘‘aid to families with dependent children’’

18 and inserting ‘‘assistance under the State

19 program funded under part A of title IV

20 of the Social Security Act (42 U.S.C. 601

21 et seq.) that the Secretary determines com22 plies with standards established by the

23 Secretary that ensure that the standards

24 under the State program are comparable
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1 to or more restrictive than those in effect

2 on June 1, 1995’’; and

3 (2) in subsection (d)(2)(C)—

4 (A) by striking ‘‘program for aid to fami5 lies with dependent children’’ and inserting

6 ‘‘State program funded’’; and

7 (B) by inserting before the period at the

8 end the following: ‘‘that the Secretary deter9 mines complies with standards established by

10 the Secretary that ensure that the standards

11 under the State program are comparable to or

12 more restrictive than those in effect on June 1,

13 1995’’.

14 (h) Section 17 of the Child Nutrition Act of 1966

15 (42 U.S.C. 1786) is amended—

16 (1) in subsection (d)(2)(A)(ii)(II)—

17 (A) by striking ‘‘program for aid to fami18 lies with dependent children established’’ and

19 inserting ‘‘State program funded’’; and

20 (B) by inserting before the semicolon the

21 following: ‘‘that the Secretary determines com22 plies with standards established by the Sec23 retary that ensure that the standards under the

24 State program are comparable to or more re25 strictive than those in effect on June 1, 1995’’;
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1 (2) in subsection (e)(4)(A), by striking ‘‘pro2 gram for aid to families with dependent children’’

3 and inserting ‘‘State program funded’’; and

4 (3) in subsection (f)(1)(C)(iii), by striking ‘‘aid

5 to families with dependent children,’’ and inserting

6 ‘‘State program funded under part A of title IV of

7 the Social Security Act (42 U.S.C. 601 et seq.) and

8 with the’’.

9 SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.

10 (a) Subsection (b) of section 508 of the Unemploy11 ment Compensation Amendments of 1976 (Public Law

12 94–566; 90 Stat. 2689) is amended to read as follows:

13 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX14 PENSES.—For purposes of section 455 of the Social Secu15 rity Act, expenses incurred to reimburse State employment

16 offices for furnishing information requested of such of17 fices—

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

19 3(a) of the Act entitled ‘An Act to provide for the

20 establishment of a national employment system and

21 for cooperation with the States in the promotion of

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

23 6, 1933 (29 U.S.C. 49b(a)), or

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

25 the duty of carrying a State plan for child support
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1 approved under part D of title IV of the Social Se2 curity Act,

3 shall be considered to constitute expenses incurred in the

4 administration of such State plan.’’.

5 (b) Section 9121 of the Omnibus Budget Reconcili6 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

7 (c) Section 9122 of the Omnibus Budget Reconcili8 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

9 (d) Section 221 of the Housing and Urban-Rural Re10 covery Act of 1983 (42 U.S.C. 602 note), relating to treat11 ment under AFDC of certain rental payments for federally

12 assisted housing, is repealed.

13 (e) Section 159 of the Tax Equity and Fiscal Respon14 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.

15 (f) Section 202(d) of the Social Security Amendments

16 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

17 (g) Section 903 of the Stewart B. McKinney Home18 less Assistance Amendments Act of 1988 (42 U.S.C.

19 11381 note), relating to demonstration projects to reduce

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

21 (1) in subsection (a), by striking ‘‘aid to fami22 lies with dependent children under a State plan ap23 proved’’ and inserting ‘‘assistance under a State pro24 gram funded’’; and
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1 (2) in subsection (c), by striking ‘‘aid to fami2 lies with dependent children in the State under a

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

4 the State under a State program funded’’.

5 (h) The Higher Education Act of 1965 (20 U.S.C.

6 1001 et seq.) is amended—

7 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

8 23(c)(3)), by striking ‘‘(Aid to Families with De9 pendent Children)’’; and

10 (2) in section 480(b)(2) (20 U.S.C.

11 1087vv(b)(2)), by striking ‘‘aid to families with de12 pendent children under a State plan approved’’ and

13 inserting ‘‘assistance under a State program fund14 ed’’.

15 (i) The Carl D. Perkins Vocational and Applied Tech16 nology Education Act (20 U.S.C. 2301 et seq.) is amend17 ed—

18 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

19 2341(d)(3)(A)(ii)), by striking ‘‘the program for aid

20 to dependent children’’ and inserting ‘‘the State pro21 gram funded’’;

22 (2) in section 232(b)(2)(B) (20 U.S.C.

23 2341a(b)(2)(B)), by striking ‘‘the program for aid to

24 families with dependent children’’ and inserting ‘‘the

25 State program funded’’; and
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1 (3) in section 521(14)(B)(iii) (20 U.S.C.

2 2471(14)(B)(iii)), by striking ‘‘the program for aid

3 to families with dependent children’’ and inserting

4 ‘‘the State program funded’’.

5 (j) The Elementary and Secondary Education Act of

6 1965 (20 U.S.C. 2701 et seq.) is amended—

7 (1) in section 1113(a)(5) (20 U.S.C.

8 6313(a)(5)), by striking ‘‘Aid to Families with De9 pendent Children Program’’ and inserting ‘‘State

10 program funded under part A of title IV of the So11 cial Security Act’’;

12 (2) in section 1124(c)(5) (20 U.S.C.

13 6333(c)(5)), by striking ‘‘the program of aid to fam14 ilies with dependent children under a State plan ap15 proved under’’ and inserting ‘‘a State program fund16 ed under part A of’’; and

17 (3) in section 5203(b)(2) (20 U.S.C.

18 7233(b)(2))—

19 (A) in subparagraph (A)(xi), by striking

20 ‘‘Aid to Families with Dependent Children ben21 efits’’ and inserting ‘‘assistance under a State

22 program funded under part A of title IV of the

23 Social Security Act’’; and

24 (B) in subparagraph (B)(viii), by striking

25 ‘‘Aid to Families with Dependent Children’’ and
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1 inserting ‘‘assistance under the State program

2 funded under part A of title IV of the Social

3 Security Act’’.

4 (k) Chapter VII of title I of Public Law 99–88 (25

5 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided

6 further, That general assistance payments made by the

7 Bureau of Indian Affairs shall be made—

8 ‘‘(1) after April 29, 1985, and before October

9 1, 1995, on the basis of Aid to Families with De10 pendent Children (AFDC) standards of need; and

11 ‘‘(2) on and after October 1, 1995, on the basis

12 of standards of need established under the State

13 program funded under part A of title IV of the So14 cial Security Act,

15 except that where a State ratably reduces its AFDC or

16 State program payments, the Bureau shall reduce general

17 assistance payments in such State by the same percentage

18 as the State has reduced the AFDC or State program pay19 ment.’’.

20 (l) The Internal Revenue Code of 1986 (26 U.S.C.

21 1 et seq.) is amended—

22 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

23 striking all that follows ‘‘agency as’’ and inserting

24 ‘‘being eligible for financial assistance under part A

25 of title IV of the Social Security Act and as having
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1 continually received such financial assistance during

2 the 90-day period which immediately precedes the

3 date on which such individual is hired by the em4 ployer.’’;

5 (2) in section 3304(a)(16) (26 U.S.C.

6 3304(a)(16)), by striking ‘‘eligibility for aid or serv7 ices,’’ and all that follows through ‘‘children ap8 proved’’ and inserting ‘‘eligibility for assistance, or

9 the amount of such assistance, under a State pro10 gram funded’’;

11 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

12 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

13 dependent children provided under a State plan ap14 proved’’ and inserting ‘‘a State program funded’’;

15 (4) in section 6334(a)(11)(A) (26 U.S.C.

16 6334(a)(11)(A)), by striking ‘‘(relating to aid to

17 families with dependent children)’’; and

18 (5) in section 7523(b)(3)(C) (26 U.S.C.

19 7523(b)(3)(C)), by striking ‘‘aid to families with de20 pendent children’’ and inserting ‘‘assistance under a

21 State program funded under part A of title IV of the

22 Social Security Act’’.

23 (m) Section 3(b) of the Wagner-Peyser Act (29

24 U.S.C. 49b(b)) is amended by striking ‘‘State plan ap-
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1 proved under part A of title IV’’ and inserting ‘‘State pro2 gram funded under part A of title IV’’.

3 (n) The Job Training Partnership Act (29 U.S.C.

4 1501 et seq.) is amended—

5 (1) in section 4(29)(A)(i) (29 U.S.C.

6 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et

7 seq.)’’;

8 (2) in section 106(b)(6)(C) (29 U.S.C.

9 1516(b)(6)(C)), by striking ‘‘State aid to families

10 with dependent children records,’’ and inserting

11 ‘‘records collected under the State program funded

12 under part A of title IV of the Social Security Act,’’;

13 (3) in section 121(b)(2) (29 U.S.C.

14 1531(b)(2))—

15 (A) by striking ‘‘the JOBS program’’ and

16 inserting ‘‘the work activities required under

17 title IV of the Social Security Act’’; and

18 (B) by striking the second sentence;

19 (4) in section 123(c) (29 U.S.C. 1533(c))—

20 (A) in paragraph (1)(E), by repealing

21 clause (vi); and

22 (B) in paragraph (2)(D), by repealing

23 clause (v);
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1 (5) in section 203(b)(3) (29 U.S.C.

2 1603(b)(3)), by striking ‘‘, including recipients

3 under the JOBS program’’;

4 (6) in subparagraphs (A) and (B) of section

5 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by

6 striking ‘‘(such as the JOBS program)’’ each place

7 it appears;

8 (7) in section 205(a) (29 U.S.C. 1605(a)), by

9 striking paragraph (4) and inserting the following:

10 ‘‘(4) the portions of title IV of the Social Secu11 rity Act relating to work activities;’’;

12 (8) in section 253 (29 U.S.C. 1632)—

13 (A) in subsection (b)(2), by repealing sub14 paragraph (C); and

15 (B) in paragraphs (1)(B) and (2)(B) of

16 subsection (c), by striking ‘‘the JOBS program

17 or’’ each place it appears;

18 (9) in section 264 (29 U.S.C. 1644)—

19 (A) in subparagraphs (A) and (B) of sub20 section (b)(1), by striking ‘‘(such as the JOBS

21 program)’’ each place it appears; and

22 (B) in subparagraphs (A) and (B) of sub23 section (d)(3), by striking ‘‘and the JOBS pro24 gram’’ each place it appears;
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1 (10) in section 265(b) (29 U.S.C. 1645(b)), by

2 striking paragraph (6) and inserting the following:

3 ‘‘(6) the portion of title IV of the Social Secu4 rity Act relating to work activities;’’;

5 (11) in the second sentence of section 429(e)

6 (29 U.S.C. 1699(e)), by striking ‘‘and shall be in an

7 amount that does not exceed the maximum amount

8 that may be provided by the State pursuant to sec9 tion 402(g)(1)(C) of the Social Security Act (42

10 U.S.C. 602(g)(1)(C))’’;

11 (12) in section 454(c) (29 U.S.C. 1734(c)), by

12 striking ‘‘JOBS and’’;

13 (13) in section 455(b) (29 U.S.C. 1735(b)), by

14 striking ‘‘the JOBS program,’’;

15 (14) in section 501(1) (29 U.S.C. 1791(1)), by

16 striking ‘‘aid to families with dependent children

17 under part A of title IV of the Social Security Act

18 (42 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance

19 under the State program funded under part A of

20 title IV of the Social Security Act’’;

21 (15) in section 506(1)(A) (29 U.S.C.

22 1791e(1)(A)), by striking ‘‘aid to families with de23 pendent children’’ and inserting ‘‘assistance under

24 the State program funded’’;
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1 (16) in section 508(a)(2)(A) (29 U.S.C.

2 1791g(a)(2)(A)), by striking ‘‘aid to families with

3 dependent children’’ and inserting ‘‘assistance under

4 the State program funded’’; and

5 (17) in section 701(b)(2)(A) (29 U.S.C.

6 1792(b)(2)(A))—

7 (A) in clause (v), by striking the semicolon

8 and inserting ‘‘; and’’; and

9 (B) by striking clause (vi).

10 (o) Section 3803(c)(2)(C)(iv) of title 31, United

11 States Code, is amended to read as follows:

12 ‘‘(iv) assistance under a State pro13 gram funded under part A of title IV of

14 the Social Security Act’’.

15 (p) Section 2605(b)(2)(A)(i) of the Low-Income

16 Home Energy Assistance Act of 1981 (42 U.S.C.

17 8624(b)(2)(A)(i)) is amended to read as follows:

18 ‘‘(i) assistance under the State pro19 gram funded under part A of title IV of

20 the Social Security Act;’’.

21 (q) Section 303(f)(2) of the Family Support Act of

22 1988 (42 U.S.C. 602 note) is amended—

23 (1) by striking ‘‘(A)’’; and

24 (2) by striking subparagraphs (B) and (C).
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1 (r) The Balanced Budget and Emergency Deficit

2 Control Act of 1985 (2 U.S.C. 900 et seq.)) is amended—

3 (1) in section 255(h) (2 U.S.C. 905(h), by

4 striking ‘‘Aid to families with dependent children

5 (75–0412–0–1–609);’’ and inserting ‘‘Block grants

6 to States for temporary assistance for needy fami7 lies;’’; and

8 (2) in section 256 (2 U.S.C. 906)—

9 (A) by striking subsection (k); and

10 (B) by redesignating subsection (l) as sub11 section (k).

12 (s) The Immigration and Nationality Act (8 U.S.C.

13 1101 et seq.) is amended—

14 (1) in section 210(f) (8 U.S.C. 1160(f)), by

15 striking ‘‘aid under a State plan approved under’’

16 each place it appears and inserting ‘‘assistance

17 under a State program funded under’’;

18 (2) in section 245A(h) (8 U.S.C. 1255a(h))—

19 (A) in paragraph (1)(A)(i), by striking

20 ‘‘program of aid to families with dependent chil21 dren’’ and inserting ‘‘State program of assist22 ance’’; and

23 (B) in paragraph (2)(B), by striking ‘‘aid

24 to families with dependent children’’ and insert25 ing ‘‘assistance under a State program funded
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1 under part A of title IV of the Social Security

2 Act’’; and

3 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)),

4 by striking ‘‘State plan approved’’ and inserting

5 ‘‘State program funded’’.

6 (t) Section 640(a)(4)(B)(i) of the Head Start Act (42

7 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘pro8 gram of aid to families with dependent children under a

9 State plan approved’’ and inserting ‘‘State program of as10 sistance funded’’.

11 (u) Section 9 of the Act of April 19, 1950 (64 Stat.

12 47, chapter 92; 25 U.S.C. 639) is repealed.

13 (v) Subparagraph (E) of section 213(d)(6) of the

14 School-To-Work Opportunities Act of 1994 (20 U.S.C.

15 6143(d)(6)) is amended to read as follows:

16 ‘‘(E) part A of title IV of the Social Secu17 rity Act (42 U.S.C. 601 et seq.) relating to

18 work activities;’’.

19 SEC. 109. STUDY OF EFFECT OF WELFARE REFORM ON

20 GRANDPARENTS AS PRIMARY CAREGIVERS.

21 (a) IN GENERAL.—The Secretary of Health and

22 Human Services (hereafter in this section referred to as

23 the ‘‘Secretary’’) shall conduct a study evaluating the im24 pact of amendments made by this Act on grandparents

25 who have assumed the responsibility of providing care to
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1 their grandchildren. In such study, the Secretary shall

2 identify barriers to participation in public programs in3 cluding inconsistent policies, standards, and definitions

4 used by programs and agencies in the administration of

5 medicaid, assistance under a State program funded under

6 part A of title IV of the Social Security Act, child support

7 enforcement, and foster care programs on grandparents

8 who have assumed the care-giving role for children whose

9 natural parents are unable to provide care.

10 (b) REPORT.—Not later than December 31, 1997,

11 the Secretary shall submit a report setting forth the find12 ings of the study described in subsection (a) to the Com13 mittee on Ways and Means and the Committee on Eco14 nomic and Educational Opportunities of the House of

15 Representatives and the Committee on Finance, the Com16 mittee on Labor and Human Resources, and the Special

17 Committee on Aging of the Senate. The report shall in18 clude such recommendations for administrative or legisla19 tive changes as the Secretary considers appropriate.

20 SEC. 110. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

21 (a) IN GENERAL.—Whenever an organization that

22 accepts Federal funds under this Act or the amendments

23 made by this Act makes any communication that in any

24 way intends to promote public support or opposition to

25 any policy of a Federal, State, or local government
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1 through any broadcasting station, newspaper, magazine,

2 outdoor advertising facility, direct mailing, or any other

3 type of general public advertising, such communication

4 shall state the following: ‘‘This was prepared and paid for

5 by an organization that accepts taxpayer dollars.’’.

6 (b) FAILURE TO COMPLY.—If an organization makes

7 any communication described in subsection (a) and fails

8 to provide the statement required by that subsection, such

9 organization shall be ineligible to receive Federal funds

10 under this Act or the amendments made by this Act.

11 (c) DEFINITION.—For purposes of this section, the

12 term ‘‘organization’’ means an organization described in

13 section 501(c) of the Internal Revenue Code of 1986.

14 (d) EFFECTIVE DATES.—This section shall take ef15 fect—

16 (1) with respect to printed communications 1

17 year after the date of enactment of this Act; and

18 (2) with respect to any other communication on

19 the date of enactment of this Act.

20 SEC. 110A. MODIFICATIONS TO THE JOB OPPORTUNITIES

21 FOR CERTAIN LOW-INCOME INDIVIDUALS

22 PROGRAM.

23 Section 505 of the Family Support Act of 1988 (42

24 U.S.C. 1315 note) is amended—
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1 (1) in the heading, by striking ‘‘DEMONSTRA2 TION’’;

3 (2) by striking ‘‘demonstration’’ each place it

4 appears;

5 (3) in subsection (a), by striking ‘‘in each of

6 fiscal years’’ and all that follows through ‘‘10’’ and

7 inserting ‘‘shall enter into agreements with’’;

8 (4) in subsection (b)(3), by striking ‘‘aid to

9 families with dependent children under part A of

10 title IV of the Social Security Act’’ and inserting

11 ‘‘assistance under the State program funded part A

12 of title IV of the Social Security Act in the State in

13 which the individual resides’’;

14 (5) in subsection (c)—

15 (A) in paragraph (1)(C), by striking ‘‘aid

16 to families with dependent children under part

17 A of title IV of the Social Security Act’’ and in18 serting ‘‘assistance under the State program

19 funded part A of title IV of the Social Security

20 Act’’;

21 (B) in paragraph (2), by striking ‘‘aid to

22 families with dependent children under title IV

23 of such Act’’ and inserting ‘‘assistance under

24 the State program funded part A of title IV of

25 the Social Security Act’’;
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1 (6) in subsection (d), by striking ‘‘job opportu2 nities and basic skills training program (as provided

3 for under title IV of the Social Security Act’’ and in4 serting ‘‘the State program funded under part A of

5 title IV of the Social Security Act’’; and

6 (7) by striking subsections (e) through (g) and

7 inserting the following:

8 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the

9 purpose of conducting projects under this section, there

10 is authorized to be appropriated an amount not to exceed

11 $25,000,000 for any fiscal year.’’.

12 SEC. 110B. DEMONSTRATION PROJECTS FOR SCHOOL UTI13 LIZATION.

14 (a) FINDINGS.—It is the goal of the United States

15 that children grow to be self-sufficient citizens, that par16 ents equip themselves to provide the best parental care

17 and guidance to their children, and that welfare depend18 ency, crime, and the deterioration of neighborhoods be

19 eliminated. It will contribute to these goals to increase the

20 level of parents’ involvement in their children’s school and

21 other activities, to increase the amount of time parents

22 spend with or in close proximity to their children, to in23 crease the portion of the day and night when children are

24 in a safe and healthy environment and not exposed to un25 favorable influences, to increase the opportunities for chil-
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1 dren to participate in safe, healthy, and enjoyable extra2 curricular and organized developmental and recreational

3 activities, and to make more accessible the opportunities

4 for parents, especially those dependent on public assist5 ance, to increase and enhance their parenting and living

6 skills. All of these contributions can be facilitated by es7 tablishing the neighborhood public school as a focal point

8 for such activities and by extending the hours of the day

9 in which its facilities are available for such activities.

10 (b) GRANTS.—The Secretary of Education (hereafter

11 in this section referred to as the ‘‘Secretary’’) shall make

12 demonstration grants as provided in subsection (c) to

13 States to enable them to increase the number of hours

14 during each day when existing public school facilities are

15 available for use for the purposes set forth in subsection

16 (d).

17 (c) SELECTION OF STATES.—The Secretary shall

18 make grants to not more than 5 States for demonstration

19 projects in accordance with this section. Each State shall

20 select the number and location of schools based on the

21 amount of funds it deems necessary for a school properly

22 to achieve the goals of this program. The schools selected

23 must have a significant percentage of students receiving

24 benefits under part A of title IV of the Social Security

25 Act. No more than 2 percent of the grant to any State
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1 shall be used for administrative expenses of any kind by

2 any entity (except that none of the activities set forth in

3 paragraphs (1) and (2) of subsection (d) shall be consid4 ered an administrative activity the expenses for which are

5 limited by this subsection).

6 (d) USE OF FUNDS.—The grants made under sub7 section (b), in order that school facilities can be more fully

8 utilized, shall be used to provide funding for, among other

9 things—

10 (1) extending the length of the school day, ex11 panding the scope of student programs offered be12 fore and after pre-existing school hours, enabling

13 volunteers and parents or professionals paid from

14 other sources to teach, tutor, coach, organize, advise,

15 or monitor students before and after pre-existing

16 school hours, and providing security, supplies, utili17 ties, and janitorial services before and after pre-ex18 isting school hours for these programs,

19 (2) making the school facilities available for

20 community and neighborhood clubs, civic associa21 tions and organizations, Boy and Girl Scouts and

22 similar organizations, adult education classes, orga23 nized sports, parental education classes, and other

24 educational, recreational, and social activities.
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1 None of the funds provided under this section can be used

2 to supplant funds already provided to a school facility for

3 services, equipment, personnel, or utilities nor can funds

4 be used to pay costs associated with operating school fa5 cilities during hours those facilities are already available

6 for student or community use.

7 (e) APPLICATIONS.—

8 (1) IN GENERAL.—The Governor of each State

9 desiring to conduct a demonstration project under

10 this section shall prepare and submit to the Sec11 retary an application in such manner and containing

12 such information as the Secretary may require. The

13 Secretary shall actively encourage States to submit

14 such applications.

15 (2) APPROVAL.—The Secretary shall consider

16 all applications received from States desiring to con17 duct demonstration projects under this section and

18 shall approve such applications in a number of

19 States to be determined by the Secretary (not to ex20 ceed 5), taking into account the overall funding lev21 els available under this section.

22 (f) DURATION.—A demonstration project under this

23 section shall be conducted for not more than 4 years plus

24 an additional time period of up to 12 months for final

25 evaluation and reporting. The Secretary may terminate a
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1 project if the Secretary determines that the State conduct2 ing the project is not in substantial compliance with the

3 terms of the application approved by the Secretary under

4 this section.

5 (g) EVALUATION PLAN.—

6 (1) STANDARDS.—Not later than 3 months

7 after the date of the enactment of this section, the

8 Secretary shall develop standards for evaluating the

9 effectiveness of each demonstration project in con10 tributing toward meeting the objectives set forth in

11 subsection (a), which shall include the requirement

12 that an independent expert entity selected by the

13 Secretary provide an evaluation of all demonstration

14 projects, which evaluations shall be included in the

15 appropriate State’s annual and final reports to the

16 Secretary under subsection (h)(1).

17 (2) SUBMISSION OF PLAN.—Each State con18 ducting a demonstration project under this section

19 shall submit an evaluation plan (meeting the stand20 ards developed by the Secretary under paragraph

21 (1)) to the Secretary not later than 90 days after

22 the State is notified of the Secretary’s approval for

23 such project. A State shall not receive any Federal

24 funds for the operation of the demonstration project

25 until the Secretary approves such evaluation plan.
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1 (h) REPORTS.—

2 (1) STATE.—A State that conducts a dem3 onstration project under this section shall prepare

4 and submit to the Secretary annual and final reports

5 in accordance with the State’s evaluation plan under

6 subsection (g)(2) for such demonstration project.

7 (2) SECRETARY.—The Secretary shall prepare

8 and submit to the Congress annual reports concern9 ing each demonstration project under this Act.

10 (i) AUTHORIZATIONS.—

11 (1) GRANTS.—There are authorized to be ap12 propriated for grants under subsection (b) for each

13 of fiscal years 1996, 1997, 1998, 1999, and 2000,

14 $10,000,000.

15 (2) ADMINISTRATION.—There are authorized to

16 be appropriated $1,000,000 for each of fiscal years

17 1996, 1997, 1998, 1999, and 2000 for the adminis18 tration of this section by the Secretary, including de19 velopment of standards and evaluation of all dem20 onstration projects by an independent expert entity

21 under subsection (g)(1).

22 SEC. 110C. CORRECTIVE COMPLIANCE PLAN.

23 (a) IN GENERAL.—

24 (1) NOTIFICATION OF VIOLATION.—Notwith25 standing any other provision of law, the Federal
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1 Government shall, prior to assessing a penalty

2 against a State under any program established or

3 modified under this Act, notify the State of the vio4 lation of law for which such penalty would be as5 sessed and allow the State the opportunity to enter

6 into a corrective compliance plan in accordance with

7 this section which outlines how the State will correct

8 any violations for which such penalty would be as9 sessed and how the State will insure continuing com10 pliance with the requirements of such program.

11 (2) 60-DAY PERIOD TO PROPOSE A CORRECTIVE

12 COMPLIANCE PLAN.—Any State notified under para13 graph (1) shall have 60 days in which to submit to

14 the Federal Government a corrective compliance

15 plan to correct any violations described in such para16 graph.

17 (3) ACCEPTANCE OF PLAN.—The Federal Gov18 ernment shall have 60 days to accept or reject the

19 State’s corrective compliance plan and may consult

20 with the State during this period to modify the plan.

21 If the Federal Government does not accept or reject

22 the corrective compliance plan during the period, the

23 corrective compliance plan shall be deemed to be ac24 cepted.
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1 (b) FAILURE TO CORRECT.—If a corrective compli2 ance plan is accepted by the Federal Government, no pen3 alty shall be imposed with respect to a violation described

4 in subsection (a) if the State corrects the violation pursu5 ant to the plan. If a State has not corrected the violation

6 in a timely manner under the plan, some or all of the pen7 alty shall be assessed.

8 SEC. 110D. PARENTAL RESPONSIBILITY CONTRACTS.

9 (a) ASSESSMENT.—Notwithstanding any other provi10 sion of, or amendment made by, this title, each State to

11 which a grant is made under section 403 of the Social

12 Security Act shall provide that the State agency, through

13 a case manager, shall make an initial assessment of the

14 education level, parenting skills, and history of parenting

15 activities and involvement of each parent who is applying

16 for financial assistance under the plan.

17 (b) PARENTAL RESPONSIBILITY CONTRACTS.—On the

18 basis of the assessment made under subsection (a) with

19 respect to each parent applicant, the case manager, in con20 sultation with the parent applicant (hereafter in this sub21 section referred to as the ‘‘client’’) and, if possible, the

22 client’s spouse if one is present, shall develop a parental

23 responsibility contract for the client, which meets the fol24 lowing requirements:
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1 (1) Sets forth the obligations of the client, includ2 ing all of the following the case manager believes are

3 within the ability and capacity of the client, are not

4 incompatible with the employment or school activi5 ties of the client, and are not inconsistent with each

6 other in the client’s case or with the well being of

7 the client’s children:

8 (A) Attend school, if necessary, and maintain

9 certain grades and attendance.

10 (B) Keep school-age children of the client in

11 school.

12 (C) Immunize children of the client.

13 (D) Attend parenting and money manage14 ment classes.

15 (E) Participate in parent and teacher asso16 ciations and other activities intended to involve

17 parents in their children’s school activities and

18 in the affairs of their children’s school.

19 (F) Attend school activities with their chil20 dren where attendance or participation by both

21 children and parents is appropriate.

22 (G) Undergo appropriate substance abuse

23 treatment counseling.

24 (H) Any other appropriate activity, at the op25 tion of the State.
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1 (2) Provides that the client shall accept any bona

2 fide offer of unsubsidized full-time employment, un3 less the client has good cause for not doing so.

4 (c) PENALTIES FOR NONCOMPLIANCE WITH PARENTAL

5 RESPONSIBILITY CONTRACT.—

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the following penalties shall apply:

8 (A) PROGRESSIVE REDUCTIONS IN ASSIST9 ANCE FOR 1ST AND 2ND ACTS OF NONCOMPLI10 ANCE.—The State plan shall provide that the

11 amount of assistance otherwise payable under

12 this part to a family that includes a client who,

13 with respect to a parental responsibility con14 tract signed by the client, commits an act of

15 noncompliance without good cause, shall be re16 duced by—

17 (i) 33 percent for the 1st such act of

18 noncompliance; or

19 (ii) 66 percent for the 2nd such act of

20 noncompliance.

21 (B) DENIAL OF ASSISTANCE FOR 3RD AND

22 SUBSEQUENT ACTS OF NONCOMPLIANCE.—The

23 State shall provide that in the case of the 3rd

24 or subsequent such act of noncompliance, the

25 family of which the client is a member shall not
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1 thereafter be eligible for assistance under this

2 part.

3 (C) LENGTH OF PENALTIES.—The penalty

4 for an act of noncompliance shall not exceed the

5 greater of—

6 (i) in the case of—

7 (I) the 1st act of noncompliance, 1

8 month,

9 (II) the 2nd act of noncompliance,

10 3 months, or

11 (III) the 3rd or subsequent act of

12 noncompliance, 6 months; or

13 (ii) the period ending with the cessation

14 of such act of noncompliance.

15 (D) DENIAL OF ASSISTANCE TO ADULTS RE16 FUSING TO ACCEPT A BONA FIDE OFFER OF

17 EMPLOYMENT.—The State plan shall provide

18 that if an unemployed individual who has at19 tained 18 years of age refuses to accept a bona

20 fide offer of employment without good cause,

21 such act of noncompliance shall be considered a

22 3rd or subsequent act of noncompliance.

23 (2) STATE FLEXIBILITY.—The State plan may

24 provide for different penalties than those specified in

25 paragraph (1).
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1 SEC. 110E. CORRECTIVE ACTION PLAN.

2 (a) IN GENERAL.—

3 (1) NOTIFICATION OF VIOLATION.—Notwith4 standing any other provision of law, the Federal

5 Government shall, prior to assessing a penalty

6 against a State under any program established or

7 modified under this Act, notify the State of the vio8 lation of law for which such penalty would be as9 sessed and allow the State the opportunity to enter

10 into a corrective action plan in accordance with this

11 section.

12 (2) 60-DAY PERIOD TO PROPOSE A CORRECTIVE

13 ACTION PLAN.—Any State notified under paragraph

14 (1) shall have 60 days in which to submit to the

15 Federal Government a corrective action plan to cor16 rect any violations described in such paragraph.

17 (3) ACCEPTANCE OF PLAN.—The Federal Gov18 ernment shall have 60 days to accept or reject the

19 State’s corrective action plan and may consult with

20 the State during this period to modify the plan. If

21 the Federal Government does not accept or reject

22 the corrective action plan during the period, the cor23 rective action plan shall be deemed to be accepted.

24 (b) 90-DAY GRACE PERIOD.—If a corrective action

25 plan is accepted by the Federal Govenment, no penalty

26 shall be imposed with respect to a violation described in
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1 subsection (a) if the State corrects the violation pursuant

2 to the plan within 90 days after the date on which the

3 plan is accepted (or within such other period specified in

4 the plan).

5 SEC. 111. SECRETARIAL SUBMISSION OF LEGISLATIVE PRO6 POSAL FOR TECHNICAL AND CONFORMING

7 AMENDMENTS.

8 Not later than 90 days after the date of the enact9 ment of this Act, the Secretary of Health and Human

10 Services, in consultation, as appropriate, with the heads

11 of other Federal agencies, shall submit to the appropriate

12 committees of Congress a legislative proposal providing for

13 such technical and conforming amendments in the law as

14 are required by the provisions of this Act.

15 SEC. 112. EFFECTIVE DATE; TRANSITION RULE.

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

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

18 shall take effect on October 1, 1995.

19 (b) TRANSITION RULE.—

20 (1) STATE OPTION TO CONTINUE AFDC PRO21 GRAM.—

22 (A) 9-MONTH EXTENSION.—A State may

23 continue a State program under parts A and F

24 of title IV of the Social Security Act, as in ef25 fect on September 30, 1995 (for purposes of
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1 this paragraph, the ‘‘State AFDC program’’)

2 until June 30, 1996.

3 (B) REDUCTION OF FISCAL YEAR 1996

4 GRANT.—In the case of any State opting to

5 continue the State AFDC program pursuant to

6 subparagraph (A), the State family assistance

7 grant paid to such State under section 403(a)

8 of the Social Security Act (as added by section

9 101 and as in effect on and after October 1,

10 1995) for fiscal year 1996 (after the termi11 nation of the State AFDC program) shall be re12 duced by an amount equal to the total Federal

13 payment to such State under section 403 of the

14 Social Security Act (as in effect on September

15 30, 1995) for such fiscal year.

16 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—

17 The amendments made by this title shall not apply

18 with respect to—

19 (A) powers, duties, functions, rights,

20 claims, penalties, or obligations applicable to

21 aid, assistance, or services provided before the

22 effective date of this title under the provisions

23 amended; and

24 (B) administrative actions and proceedings

25 commenced before such date, or authorized be-
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1 fore such date to be commenced, under such

2 provisions.

3 (3) CLOSING OUT ACCOUNT FOR THOSE PRO4 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED

5 BY THIS TITLE.—In closing out accounts, Federal

6 and State officials may use scientifically acceptable

7 statistical sampling techniques. Claims made under

8 programs which are repealed or substantially amend9 ed in this title and which involve State expenditures

10 in cases where assistance or services were provided

11 during a prior fiscal year, shall be treated as ex12 penditures during fiscal year 1995 for purposes of

13 reimbursement even if payment was made by a State

14 on or after October 1, 1995. States shall complete

15 the filing of all claims no later than September 30,

16 1997. Federal department heads shall—

17 (A) use the single audit procedure to re18 view and resolve any claims in connection with

19 the closeout of programs, and

20 (B) reimburse States for any payments

21 made for assistance or services provided during

22 a prior fiscal year from funds for fiscal year

23 1995, rather than the funds authorized by this

24 title.
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1 (c) SUNSET.—The amendment made by section

2 101(b) shall be effective only during the 5-year period be3 ginning on October 1, 1995.

4 TITLE II—SUPPLEMENTAL

5 SECURITY INCOME

6 Subtitle A—Eligibility Restrictions

7 SEC. 201. DENIAL OF SUPPLEMENTAL SECURITY INCOME

8 BENEFITS BY REASON OF DISABILITY TO

9 DRUG ADDICTS AND ALCOHOLICS.

10 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

11 1382c(a)(3)) is amended by adding at the end the follow12 ing:

13 ‘‘(I) Notwithstanding subparagraph (A), an individ14 ual shall not be considered to be disabled for purposes of

15 this title if alcoholism or drug addiction would (but for

16 this subparagraph) be a contributing factor material to

17 the Commissioner’s determination that the individual is

18 disabled.’’.

19 (b) REPRESENTATIVE PAYEE REQUIREMENTS.—

20 (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C.

21 1383(a)(2)(A)(ii)(II)) is amended to read as follows:

22 ‘‘(II) In the case of an individual eligible for benefits

23 under this title by reason of disability, if such individual

24 also has an alcoholism or drug addiction condition (as de25 termined by the Commissioner of Social Security), the
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1 payment of such benefits to a representative payee shall

2 be deemed to serve the interest of the individual. In any

3 case in which such payment is so deemed under this

4 subclause to serve the interest of an individual, the Com5 missioner shall include, in the individual’s notification of

6 such eligibility, a notice that such alcoholism or drug ad7 diction condition accompanies the disability upon which

8 such eligibility is based and that the Commissioner is

9 therefore required to pay the individual’s benefits to a rep10 resentative payee.’’.

11 (2) Section 1631(a)(2)(B)(vii) (42 U.S.C.

12 1383(a)(2)(B)(vii)) is amended by striking ‘‘eligible

13 for benefits’’ and all that follows through ‘‘is dis14 abled’’ and inserting ‘‘described in subparagraph

15 (A)(ii)(II)’’.

16 (3) Section 1631(a)(2)(B)(ix)(II) (42 U.S.C.

17 1383(a)(2)(B)(ix)(II)) is amended by striking all

18 that follows ‘‘15 years, or’’ and inserting ‘‘described

19 in subparagraph (A)(ii)(II)’’.

20 (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

21 1383(a)(2)(D)(i)(II)) is amended by striking ‘‘eligi22 ble for benefits’’ and all that follows through ‘‘is dis23 abled’’ and inserting ‘‘described in subparagraph

24 (A)(ii)(II)’’.
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1 (c) TREATMENT SERVICES FOR INDIVIDUALS WITH

2 A SUBSTANCE ABUSE CONDITION.—

3 (1) IN GENERAL.—Title XVI (42 U.S.C. 1381

4 et seq.) is amended by adding at the end the follow5 ing new section:

6 ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A

7 SUBSTANCE ABUSE CONDITION

8 ‘‘SEC. 1636. (a) In the case of any individual eligible

9 for benefits under this title by reason of disability who

10 is identified as having a substance abuse condition, the

11 Commissioner of Social Security shall make provision for

12 referral of such individual to the appropriate State agency

13 administering the State plan for substance abuse treat14 ment services approved under subpart II of part B of title

15 XIX of the Public Health Service Act (42 U.S.C. 300x–

16 21 et seq.).

17 ‘‘(b) No individual described in subsection (a) shall

18 be an eligible individual or eligible spouse for purposes of

19 this title if such individual refuses without good cause to

20 accept the referred services described under subsection

21 (a).

22 (2) CONFORMING AMENDMENT.—Section

23 1614(a)(4) (42 U.S.C. 1382c(a)(4)) is amended by

24 inserting after the second sentence the following new

25 sentence: ‘‘For purposes of the preceding sentence,

26 any individual identified by the Commissioner as
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1 having a substance abuse condition shall seek and

2 complete appropriate treatment as needed.’’.

3 (d) CONFORMING AMENDMENTS.—

4 (1) Section 1611(e) (42 U.S.C. 1382(e)) is

5 amended by striking paragraph (3).

6 (2) Section 1634 (42 U.S.C. 1383c) is amended

7 by striking subsection (e).

8 (3) Section 201(c)(1) of the Social Security

9 Independence and Program Improvements Act of

10 1994 (42 U.S.C. 425 note) is amended—

11 (A) by striking ‘‘—’’ and all that follows

12 through ‘‘(A)’’ the 1st place it appears;

13 (B) by striking ‘‘and’’ the 3rd place it ap14 pears;

15 (C) by striking subparagraph (B);

16 (D) by striking ‘‘either subparagraph (A)

17 or subparagraph (B)’’ and inserting ‘‘the pre18 ceding sentence’’; and

19 (E) by striking ‘‘subparagraph (A) or (B)’’

20 and inserting ‘‘the preceding sentence’’.

21 (e) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

22 SUBSTANCE ABUSE TREATMENT PROGRAMS.—

23 (1) IN GENERAL.—Out of any money in the

24 Treasury not otherwise appropriated, there are here25 by appropriated to supplement State and Tribal pro-
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1 grams funded under section 1933 of the Public

2 Health Service Act (42 U.S.C. 300x–33),

3 $50,000,000 for each of the fiscal years 1997 and

4 1998.

5 (2) ADDITIONAL FUNDS.—Amounts appro6 priated under paragraph (1) shall be in addition to

7 any funds otherwise appropriated for allotments

8 under section 1933 of the Public Health Service Act

9 (42 U.S.C. 300x–33) and shall be allocated pursuant

10 to such section 1933.

11 (3) USE OF FUNDS.—A State or Tribal govern12 ment receiving an allotment under this subsection

13 shall consider as priorities, for purposes of expend14 ing funds allotted under this subsection, activities

15 relating to the treatment of the abuse of alcohol and

16 other drugs.

17 SEC. 202. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI

18 BENEFITS.

19 Paragraph (1) of section 1614(a) (42 U.S.C.

20 1382c(a)) is amended—

21 (1) in subparagraph (B)(i), by striking ‘‘either’’

22 and all that follows through ‘‘, or’’ and inserting

23 ‘‘(I) a citizen; (II) a noncitizen who is granted asy24 lum under section 208 of the Immigration and Na25 tionality Act or whose deportation has been withheld
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1 under section 243(h) of such Act for a period of not

2 more than 5 years after the date of arrival into the

3 United States; (III) a noncitizen who is admitted to

4 the United States as a refugee under section 207 of

5 such Act for not more than such 5-year period; (IV)

6 a noncitizen, lawfully present in any State (or any

7 territory or possession of the United States), who is

8 a veteran (as defined in section 101 of title 38,

9 United States Code) with a discharge characterized

10 as an honorable discharge and not on account of

11 alienage or who is the spouse or unmarried depend12 ent child of such veteran; or (V) a noncitizen who

13 has worked sufficient calendar quarters of coverage

14 to be a fully insured individual for benefits under

15 title II, or’’; and

16 (2) by adding at the end the following new

17 flush sentence:

18 ‘‘For purposes of subparagraph (B)(i)(IV), the determina19 tion of whether a noncitizen is lawfully present in the

20 United States shall be made in accordance with regula21 tions of the Attorney General. A noncitizen shall not be

22 considered to be lawfully present in the United States for

23 purposes of this title merely because the noncitizen may

24 be considered to be permanently residing in the United
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1 States under color of law for purposes of any particular

2 program.’’.

3 SEC. 203. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI4 VIDUALS FOUND TO HAVE FRAUDULENTLY

5 MISREPRESENTED RESIDENCE IN ORDER TO

6 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

7 MORE STATES.

8 Section 1614(a) (42 U.S.C. 1382c(a)) is amended by

9 adding at the end the following new paragraph:

10 ‘‘(5) An individual shall not be considered an eligible

11 individual for purposes of this title during the 10-year pe12 riod beginning on the date the individual is convicted in

13 Federal or State court of having made a fraudulent state14 ment or representation with respect to the place of resi15 dence of the individual in order to receive assistance simul16 taneously from 2 or more States under programs that are

17 funded under part A of title IV, title XIX, or the Food

18 Stamp Act of 1977, or benefits in 2 or more States under

19 the supplemental security income program under title

20 XVI.’’.

21 SEC. 204. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

22 AND PROBATION AND PAROLE VIOLATORS.

23 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

24 1382(e)), as amended by section 201(c)(1), is amended
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1 by inserting after paragraph (2) the following new para2 graph:

3 ‘‘(3) A person shall not be an eligible individual or

4 eligible spouse for purposes of this title with respect to

5 any month if during such month the person is—

6 ‘‘(A) fleeing to avoid prosecution, or custody or

7 confinement after conviction, under the laws of the

8 place from which the person flees, for a crime, or an

9 attempt to commit a crime, which is a felony under

10 the laws of the place from which the person flees, or

11 which, in the case of the State of New Jersey, is a

12 high misdemeanor under the laws of such State; or

13 ‘‘(B) violating a condition of probation or pa14 role imposed under Federal or State law.’’.

15 (b) EXCHANGE OF INFORMATION WITH LAW EN16 FORCEMENT AGENCIES.—Section 1631(e) (42 U.S.C.

17 1383(e)) is amended by inserting after paragraph (3) the

18 following new paragraph:

19 ‘‘(4) Notwithstanding any other provision of law, the

20 Commissioner shall furnish any Federal, State, or local

21 law enforcement officer, upon the request of the officer,

22 with the current address, Social Security number, and

23 photograph (if applicable) of any recipient of benefits

24 under this title, if the officer furnishes the agency with

25 the name of the recipient and notifies the agency that—
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1 ‘‘(A) the recipient—

2 ‘‘(i) is fleeing to avoid prosecution, or cus3 tody or confinement after conviction, under the

4 laws of the place from which the person flees,

5 for a crime, or an attempt to commit a crime,

6 which is a felony under the laws of the place

7 from which the person flees, or which, in the

8 case of the State of New Jersey, is a high mis9 demeanor under the laws of such State;

10 ‘‘(ii) is violating a condition of probation or

11 parole imposed under Federal or State law; or

12 ‘‘(iii) has information that is necessary for

13 the officer to conduct the officer’s official du14 ties; and

15 ‘‘(B) the location or apprehension of the recipi16 ent is within the officer’s official duties.’’.

17 SEC. 205. EFFECTIVE DATES; APPLICATION TO CURRENT

18 RECIPIENTS.

19 (a) SECTIONS 201 AND 202.—

20 (1) IN GENERAL.—Except as provided in para21 graphs (2) and (3), the amendments made by sec22 tions 201 and 202 shall apply to applicants for bene23 fits for months beginning on or after the date of the

24 enactment of this Act, without regard to whether
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1 regulations have been issued to implement such

2 amendments.

3 (2) APPLICATION TO CURRENT RECIPIENTS.—

4 (A) APPLICATION AND NOTICE.—Notwith5 standing any other provision of law, in the case

6 of an individual who is receiving supplemental

7 security income benefits under title XVI of the

8 Social Security Act as of the date of the enact9 ment of this Act and whose eligibility for such

10 benefits would terminate by reason of the

11 amendments made by section 201 or 202, such

12 amendments shall apply with respect to the

13 benefits of such individual, including such indi14 vidual’s treatment (if any) provided pursuant to

15 such title as in effect on the day before the date

16 of such enactment, for months beginning on or

17 after January 1, 1997, and the Commissioner

18 of Social Security shall so notify the individual

19 not later than 90 days after the date of the en20 actment of this Act.

21 (B) REAPPLICATION.—

22 (i) IN GENERAL.—Not later than 120

23 days after the date of the enactment of

24 this Act, each individual notified pursuant

25 to subparagraph (A) who desires to re-
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1 apply for benefits under title XVI of the

2 Social Security Act, as amended by this

3 title, shall reapply to the Commissioner of

4 Social Security.

5 (ii) DETERMINATION OF ELIGI6 BILITY.—Not later than 1 year after the

7 date of the enactment of this Act, the

8 Commissioner of Social Security shall de9 termine the eligibility of each individual

10 who reapplies for benefits under clause (i)

11 pursuant to the procedures of such title.

12 (3) ADDITIONAL APPLICATION OF PAYEE REP13 RESENTATIVE REQUIREMENTS.—The amendments

14 made by section 201(b) shall also apply—

15 (A) in the case of any individual who is re16 ceiving supplemental security income benefits

17 under title XVI of the Social Security Act as of

18 the date of the enactment of this Act, on and

19 after the date of such individual’s first continu20 ing disability review occurring after such date

21 of enactment, and

22 (B) in the case of any individual who re23 ceives supplemental security income benefits

24 under title XVI of the Social Security Act and

25 has attained age 65, in such manner as deter-
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1 mined appropriate by the Commissioner of So2 cial Security.

3 (b) OTHER AMENDMENTS.—The amendments made

4 by sections 203 and 204 shall take effect on the date of

5 the enactment of this Act.

6 Subtitle B—Benefits for Disabled

7 Children

8 SEC. 211. DEFINITION AND ELIGIBILITY RULES.

9 (a) DEFINITION OF CHILDHOOD DISABILITY.—Sec10 tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by

11 section 201(a), is amended—

12 (1) in subparagraph (A), by striking ‘‘An indi13 vidual’’ and inserting ‘‘Except as provided in sub14 paragraph (C), an individual’’;

15 (2) in subparagraph (A), by striking ‘‘(or, in

16 the case of an individual under the age of 18, if he

17 suffers from any medically determinable physical or

18 mental impairment of comparable severity)’’;

19 (3) by redesignating subparagraphs (C) through

20 (I) as subparagraphs (D) through (J), respectively;

21 (4) by inserting after subparagraph (B) the fol22 lowing new subparagraph:

23 ‘‘(C) An individual under the age of 18 shall be con24 sidered disabled for the purposes of this title if that indi25 vidual has a medically determinable physical or mental im-
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1 pairment, which results in marked and severe functional

2 limitations, and which can be expected to result in death

3 or which has lasted or can be expected to last for a contin4 uous period of not less than 12 months.’’; and

5 (5) in subparagraph (F), as redesignated by

6 paragraph (3), by striking ‘‘(D)’’ and inserting

7 ‘‘(E)’’.

8 (b) CHANGES TO CHILDHOOD SSI REGULATIONS.—

9 (1) MODIFICATION TO MEDICAL CRITERIA FOR

10 EVALUATION OF MENTAL AND EMOTIONAL DIS11 ORDERS.—The Commissioner of Social Security

12 shall modify sections 112.00C.2. and

13 112.02B.2.c.(2) of appendix 1 to subpart P of part

14 404 of title 20, Code of Federal Regulations, to

15 eliminate references to maladaptive behavior in the

16 domain of personal/behavorial function.

17 (2) DISCONTINUANCE OF INDIVIDUALIZED

18 FUNCTIONAL ASSESSMENT.—The Commissioner of

19 Social Security shall discontinue the individualized

20 functional assessment for children set forth in sec21 tions 416.924d and 416.924e of title 20, Code of

22 Federal Regulations.

23 (c) EFFECTIVE DATE; REGULATIONS; APPLICATION

24 TO CURRENT RECIPIENTS.—
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1 (1) IN GENERAL.—The amendments made by

2 subsections (a) and (b) shall apply to applicants for

3 benefits for months beginning on or after the date

4 of the enactment of this Act, without regard to

5 whether regulations have been issued to implement

6 such amendments.

7 (2) REGULATIONS.—The Commissioner of So8 cial Security shall issue such regulations as the

9 Commissioner determines to be necessary to imple10 ment the amendments made by subsections (a) and

11 (b) not later than 60 days after the date of the en12 actment of this Act.

13 (3) APPLICATION TO CURRENT RECIPIENTS.—

14 (A) ELIGIBILITY DETERMINATIONS.—Not

15 later than 1 year after the date of the enact16 ment of this Act, the Commissioner of Social

17 Security shall redetermine the eligibility of any

18 individual under age 18 who is receiving supple19 mental security income benefits based on a dis20 ability under title XVI of the Social Security

21 Act as of the date of the enactment of this Act

22 and whose eligibility for such benefits may ter23 minate by reason of the amendments made by

24 subsection (a) or (b). With respect to any rede25 termination under this subparagraph—
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1 (i) section 1614(a)(4) of the Social

2 Security Act (42 U.S.C. 1382c(a)(4)) shall

3 not apply;

4 (ii) the Commissioner of Social Secu5 rity shall apply the eligibility criteria for

6 new applicants for benefits under title XVI

7 of such Act;

8 (iii) the Commissioner shall give such

9 redetermination priority over all continuing

10 eligibility reviews and other reviews under

11 such title; and

12 (iv) such redetermination shall be

13 counted as a review or redetermination

14 otherwise required to be made under sec15 tion 208 of the Social Security Independ16 ence and Program Improvements Act of

17 1994 or any other provision of title XVI of

18 the Social Security Act.

19 (B) GRANDFATHER PROVISION.—The

20 amendments made by subsections (a) and (b),

21 and the redetermination under subparagraph

22 (A), shall only apply with respect to the benefits

23 of an individual described in subparagraph (A)

24 for months beginning on or after January 1,

25 1997.
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1 (C) NOTICE.—Not later than 90 days after

2 the date of the enactment of this Act, the Com3 missioner of Social Security shall notify an indi4 vidual described in subparagraph (A) of the

5 provisions of this paragraph.

6 SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU7 ING DISABILITY REVIEWS.

8 (a) CONTINUING DISABILITY REVIEWS RELATING TO

9 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

10 1382c(a)(3)(H)), as redesignated by section 211(a)(3), is

11 amended—

12 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

13 (2) by adding at the end the following new

14 clause:

15 ‘‘(ii)(I) Not less frequently than once every 3 years,

16 the Commissioner shall review in accordance with para17 graph (4) the continued eligibility for benefits under this

18 title of each individual who has not attained 18 years of

19 age and is eligible for such benefits by reason of an im20 pairment (or combination of impairments) which may im21 prove (or, which is unlikely to improve, at the option of

22 the Commissioner).

23 ‘‘(II) A parent or guardian of a recipient whose case

24 is reviewed under this clause shall present, at the time

25 of review, evidence demonstrating that the recipient is,
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1 and has been, receiving treatment, to the extent consid2 ered medically necessary and available, of the condition

3 which was the basis for providing benefits under this

4 title.’’.

5 (b) DISABILITY ELIGIBILITY REDETERMINATIONS

6 REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS

7 OF AGE.—

8 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

9 U.S.C. 1382c(a)(3)(H)), as amended by subsection

10 (a), is amended by adding at the end the following

11 new clause:

12 ‘‘(iii) If an individual is eligible for benefits under this

13 title by reason of disability for the month preceding the

14 month in which the individual attains the age of 18 years,

15 the Commissioner shall redetermine such eligibility—

16 ‘‘(I) during the 1-year period beginning on the

17 individual’s 18th birthday; and

18 ‘‘(II) by applying the criteria used in determin19 ing the initial eligibility for applicants who have at20 tained the age of 18 years.

21 With respect to a redetermination under this clause, para22 graph (4) shall not apply and such redetermination shall

23 be considered a substitute for a review or redetermination

24 otherwise required under any other provision of this sub25 paragraph during that 1-year period.’’.
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1 (2) CONFORMING REPEAL.—Section 207 of the

2 Social Security Independence and Program Improve3 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

4 1516) is hereby repealed.

5 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

6 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)

7 (42 U.S.C. 1382c(a)(3)(H)), as amended by subsections

8 (a) and (b), is amended by adding at the end the following

9 new clause:

10 ‘‘(iv)(I) Not later than 12 months after the birth of

11 an individual, the Commissioner shall review in accordance

12 with paragraph (4) the continuing eligibility for benefits

13 under this title by reason of disability of such individual

14 whose low birth weight is a contributing factor material

15 to the Commissioner’s determination that the individual

16 is disabled.

17 ‘‘(II) A review under subclause (I) shall be considered

18 a substitute for a review otherwise required under any

19 other provision of this subparagraph during that 12-

20 month period.

21 ‘‘(III) A parent or guardian of a recipient whose case

22 is reviewed under this clause shall present, at the time

23 of review, evidence demonstrating that the recipient is,

24 and has been, receiving treatment, to the extent consid25 ered medically necessary and available, of the condition
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1 which was the basis for providing benefits under this

2 title.’’.

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

4 this section shall apply to benefits for months beginning

5 on or after the date of the enactment of this Act, without

6 regard to whether regulations have been issued to imple7 ment such amendments.

8 SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

9 (a) TIGHTENING OF REPRESENTATIVE PAYEE RE10 QUIREMENTS.—

11 (1) CLARIFICATION OF ROLE.—Section

12 1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is

13 amended by striking ‘‘and’’ at the end of subclause

14 (II), by striking the period at the end of subclause

15 (IV) and inserting ‘‘; and’’, and by adding after

16 subclause (IV) the following new subclause:

17 ‘‘(V) advise such person through the notice of

18 award of benefits, and at such other times as the

19 Commissioner of Social Security deems appropriate,

20 of specific examples of appropriate expenditures of

21 benefits under this title and the proper role of a rep22 resentative payee.’’.

23 (2) DOCUMENTATION OF EXPENDITURES RE24 QUIRED.—
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1 (A) IN GENERAL.—Subparagraph (C)(i) of

2 section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is

3 amended to read as follows:

4 ‘‘(C)(i) In any case where payment is made to a rep5 resentative payee of an individual or spouse, the Commis6 sioner of Social Security shall—

7 ‘‘(I) require such representative payee to docu8 ment expenditures and keep contemporaneous

9 records of transactions made using such payment;

10 and

11 ‘‘(II) implement statistically valid procedures

12 for reviewing a sample of such contemporaneous

13 records in order to identify instances in which such

14 representative payee is not properly using such pay15 ment.’’.

16 (B) CONFORMING AMENDMENT WITH RE17 SPECT TO PARENT PAYEES.—Clause (ii) of sec18 tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C))

19 is amended by striking ‘‘Clause (i)’’ and insert20 ing ‘‘Subclauses (II) and (III) of clause (i)’’.

21 (3) EFFECTIVE DATE.—The amendments made

22 by this subsection shall apply to benefits paid after

23 the date of the enactment of this Act.

24 (b) DEDICATED SAVINGS ACCOUNTS.—
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1 (1) IN GENERAL.—Section 1631(a)(2)(B) (42

2 U.S.C. 1383(a)(2)(B)) is amended by adding at the

3 end the following new clause:

4 ‘‘(xiv) Notwithstanding clause (x), the Commissioner

5 of Social Security may, at the request of the representative

6 payee, pay any lump sum payment for the benefit of a

7 child into a dedicated savings account that could only be

8 used to purchase for such child—

9 ‘‘(I) education and job skills training;

10 ‘‘(II) special equipment or housing modifica11 tions or both specifically related to, and required by

12 the nature of, the child’s disability; and

13 ‘‘(III) appropriate therapy and rehabilitation.’’.

14 (2) DISREGARD OF TRUST FUNDS.—Section

15 1613(a) (42 U.S.C. 1382b) is amended—

16 (A) by striking ‘‘and’’ at the end of para17 graph (9),

18 (B) by striking the period at the end of

19 paragraph (10) the first place it appears and

20 inserting a semicolon,

21 (C) by redesignating paragraph (10) the

22 second place it appears as paragraph (11) and

23 striking the period at the end of such para24 graph and inserting ‘‘; and’’, and
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1 (D) by inserting after paragraph (11), as

2 so redesignated, the following new paragraph:

3 ‘‘(12) all amounts deposited in, or interest cred4 ited to, a dedicated savings account described in sec5 tion 1631(a)(2)(B)(xiv).’’.

6 (3) EFFECTIVE DATE.—The amendments made

7 by this subsection shall apply to payments made

8 after the date of the enactment of this Act.

9 Subtitle C—Studies Regarding Sup10 plemental Security Income Pro11 gram

12 SEC. 221. ANNUAL REPORT ON THE SUPPLEMENTAL SECU13 RITY INCOME PROGRAM.

14 Title XVI is amended by adding at the end the follow15 ing new section:

16 ‘‘SEC. 1636. ANNUAL REPORT ON PROGRAM.

17 ‘‘(a) DESCRIPTION OF REPORT.—Not later than May

18 30 of each year, the Commissioner of Social Security shall

19 prepare and deliver a report annually to the President and

20 the Congress regarding the program under this title, in21 cluding—

22 ‘‘(1) a comprehensive description of the pro23 gram;

24 ‘‘(2) historical and current data on allowances

25 and denials, including number of applications and
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1 allowance rates at initial determinations, reconsider2 ations, administrative law judge hearings, council of

3 appeals hearings, and Federal court appeal hearings;

4 ‘‘(3) historical and current data on characteris5 tics of recipients and program costs, by recipient

6 group (aged, blind, work disabled adults, and chil7 dren);

8 ‘‘(4) projections of future number of recipients

9 and program costs, through at least 25 years;

10 ‘‘(5) number of redeterminations and continu11 ing disability reviews, and the outcomes of such

12 redeterminations and reviews;

13 ‘‘(6) data on the utilization of work incentives;

14 ‘‘(7) detailed information on administrative and

15 other program operation costs;

16 ‘‘(8) summaries of relevant research undertaken

17 by the Social Security Administration, or by other

18 researchers;

19 ‘‘(9) State supplementation program operations;

20 ‘‘(10) a historical summary of statutory

21 changes to this title; and

22 ‘‘(11) such other information as the Commis23 sioner deems useful.

24 ‘‘(b) VIEWS OF MEMBERS OF THE SOCIAL SECURITY

25 ADVISORY COUNCIL.—Each member of the Social Secu-
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1 rity Advisory Council shall be permitted to provide an indi2 vidual report, or a joint report if agreed, of views of the

3 program under this title, to be included in the annual re4 port under this section.’’.

5 SEC. 222. IMPROVEMENTS TO DISABILITY EVALUATION.

6 (a) REQUEST FOR COMMENTS.—

7 (1) IN GENERAL.—Not later than 60 days after

8 the date of the enactment of this Act, the Commis9 sioner of Social Security shall issue a request for

10 comments in the Federal Register regarding im11 provements to the disability evaluation and deter12 mination procedures for individuals under age 18 to

13 ensure the comprehensive assessment of such indi14 viduals, including—

15 (A) additions to conditions which should be

16 presumptively disabling at birth or ages 0

17 through 3 years;

18 (B) specific changes in individual listings

19 in the Listing of Impairments set forth in ap20 pendix 1 of subpart P of part 404 of title 20,

21 Code of Federal Regulations;

22 (C) improvements in regulations regarding

23 determinations based on regulations providing

24 for medical and functional equivalence to such
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1 Listing of Impairments, and consideration of

2 multiple impairments; and

3 (D) any other changes to the disability de4 termination procedures.

5 (2) REVIEW AND REGULATORY ACTION.—The

6 Commissioner of Social Security shall promptly re7 view such comments and issue any regulations im8 plementing any necessary changes not later than 18

9 months after the date of the enactment of this Act.

10 SEC. 223. STUDY OF DISABILITY DETERMINATION PROC11 ESS.

12 (a) IN GENERAL.—Not later than 90 days after the

13 date of the enactment of this Act, and from funds other14 wise appropriated, the Commissioner of Social Security

15 shall make arrangements with the National Academy of

16 Sciences, or other independent entity, to conduct a study

17 of the disability determination process under titles II and

18 XVI of the Social Security Act. This study shall be under19 taken in consultation with professionals representing ap20 propriate disciplines.

21 (b) STUDY COMPONENTS.—The study described in

22 subsection (a) shall include—

23 (1) an initial phase examining the appropriate24 ness of, and making recommendations regarding—
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1 (A) the definitions of disability in effect on

2 the date of the enactment of this Act and the

3 advantages and disadvantages of alternative

4 definitions; and

5 (B) the operation of the disability deter6 mination process, including the appropriate

7 method of performing comprehensive assess8 ments of individuals under age 18 with physical

9 and mental impairments;

10 (2) a second phase, which may be concurrent

11 with the initial phase, examining the validity, reli12 ability, and consistency with current scientific knowl13 edge of the standards and individual listings in the

14 Listing of Impairments set forth in appendix 1 of

15 subpart P of part 404 of title 20, Code of Federal

16 Regulations, and of related evaluation procedures as

17 promulgated by the Commissioner of Social Security;

18 and

19 (3) such other issues as the applicable entity

20 considers appropriate.

21 (c) REPORTS AND REGULATIONS.—

22 (1) REPORTS.—The Commissioner of Social Se23 curity shall request the applicable entity, to submit

24 an interim report and a final report of the findings

25 and recommendations resulting from the study de-
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1 scribed in this section to the President and the Con2 gress not later than 18 months and 24 months, re3 spectively, from the date of the contract for such

4 study, and such additional reports as the Commis5 sioner deems appropriate after consultation with the

6 applicable entity.

7 (2) REGULATIONS.—The Commissioner of So8 cial Security shall review both the interim and final

9 reports, and shall issue regulations implementing

10 any necessary changes following each report.

11 SEC. 224. STUDY BY GENERAL ACCOUNTING OFFICE.

12 Not later than January 1, 1998, the Comptroller

13 General of the United States shall study and report on

14 the impact of the amendments made by, and the provi15 sions of, this title on the supplemental security income

16 program under title XVI of the Social Security Act.

17 Subtitle D—National Commission

18 on the Future of Disability

19 SEC. 231. ESTABLISHMENT.

20 There is established a commission to be known as the

21 National Commission on the Future of Disability (referred

22 to in this subtitle as the ‘‘Commission’’), the expenses of

23 which shall be paid from funds otherwise appropriated for

24 the Social Security Administration.
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1 SEC. 232. DUTIES OF THE COMMISSION.

2 (a) IN GENERAL.—The Commission shall develop

3 and carry out a comprehensive study of all matters related

4 to the nature, purpose, and adequacy of all Federal pro5 grams serving individuals with disabilities. In particular,

6 the Commission shall study the disability insurance pro7 gram under title II of the Social Security Act and the sup8 plemental security income program under title XVI of

9 such Act.

10 (b) MATTERS STUDIED.—The Commission shall pre11 pare an inventory of Federal programs serving individuals

12 with disabilities, and shall examine—

13 (1) trends and projections regarding the size

14 and characteristics of the population of individuals

15 with disabilities, and the implications of such analy16 ses for program planning;

17 (2) the feasibility and design of performance

18 standards for the Nation’s disability programs;

19 (3) the adequacy of Federal efforts in rehabili20 tation research and training, and opportunities to

21 improve the lives of individuals with disabilities

22 through all manners of scientific and engineering re23 search; and

24 (4) the adequacy of policy research available to

25 the Federal Government, and what actions might be
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1 undertaken to improve the quality and scope of such

2 research.

3 (c) RECOMMENDATIONS.—The Commission shall

4 submit to the appropriate committees of the Congress and

5 to the President recommendations and, as appropriate,

6 proposals for legislation, regarding—

7 (1) which (if any) Federal disability programs

8 should be eliminated or augmented;

9 (2) what new Federal disability programs (if

10 any) should be established;

11 (3) the suitability of the organization and loca12 tion of disability programs within the Federal Gov13 ernment;

14 (4) other actions the Federal Government

15 should take to prevent disabilities and disadvantages

16 associated with disabilities; and

17 (5) such other matters as the Commission con18 siders appropriate.

19 SEC. 233. MEMBERSHIP.

20 (a) NUMBER AND APPOINTMENT.—

21 (1) IN GENERAL.—The Commission shall be

22 composed of 15 members, of whom—

23 (A) five shall be appointed by the Presi24 dent, of whom not more than 3 shall be of the

25 same major political party;
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1 (B) three shall be appointed by the Major2 ity Leader of the Senate;

3 (C) two shall be appointed by the Minority

4 Leader of the Senate;

5 (D) three shall be appointed by the Speak6 er of the House of Representatives; and

7 (E) two shall be appointed by the Minority

8 Leader of the House of Representatives.

9 (2) REPRESENTATION.—The Commission mem10 bers shall be chosen based on their education, train11 ing, or experience. In appointing individuals as

12 members of the Commission, the President and the

13 Majority and Minority Leaders of the Senate and

14 the Speaker and Minority Leader of the House of

15 Representatives shall seek to ensure that the mem16 bership of the Commission reflects the diversity of

17 individuals with disabilities in the United States.

18 (b) COMPTROLLER GENERAL.—The Comptroller

19 General shall serve on the Commission as an ex officio

20 member of the Commission to advise and oversee the

21 methodology and approach of the study of the Commis22 sion.

23 (c) PROHIBITION AGAINST OFFICER OR EM24 PLOYEE.—No officer or employee of any government shall

25 be appointed under subsection (a).
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1 (d) DEADLINE FOR APPOINTMENT; TERM OF AP2 POINTMENT.—Members of the Commission shall be ap3 pointed not later than 60 days after the date of the enact4 ment of this Act. The members shall serve on the Commis5 sion for the life of the Commission.

6 (e) MEETINGS.—The Commission shall locate its

7 headquarters in the District of Columbia, and shall meet

8 at the call of the Chairperson, but not less than 4 times

9 each year during the life of the Commission.

10 (f) QUORUM.—Ten members of the Commission shall

11 constitute a quorum, but a lesser number may hold hear12 ings.

13 (g) CHAIRPERSON AND VICE CHAIRPERSON.—Not

14 later than 15 days after the members of the Commission

15 are appointed, such members shall designate a Chair16 person and Vice Chairperson from among the members of

17 the Commission.

18 (h) CONTINUATION OF MEMBERSHIP.—If a member

19 of the Commission becomes an officer or employee of any

20 government after appointment to the Commission, the in21 dividual may continue as a member until a successor mem22 ber is appointed.

23 (i) VACANCIES.—A vacancy on the Commission shall

24 be filled in the manner in which the original appointment
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1 was made not later than 30 days after the Commission

2 is given notice of the vacancy.

3 (j) COMPENSATION.—Members of the Commission

4 shall receive no additional pay, allowances, or benefits by

5 reason of their service on the Commission.

6 (k) TRAVEL EXPENSES.—Each member of the Com7 mission shall receive travel expenses, including per diem

8 in lieu of subsistence, in accordance with sections 5702

9 and 5703 of title 5, United States Code.

10 SEC. 234. STAFF AND SUPPORT SERVICES.

11 (a) DIRECTOR.—

12 (1) APPOINTMENT.—Upon consultation with

13 the members of the Commission, the Chairperson

14 shall appoint a Director of the Commission.

15 (2) COMPENSATION.—The Director shall be

16 paid the rate of basic pay for level V of the Execu17 tive Schedule.

18 (b) STAFF.—With the approval of the Commission,

19 the Director may appoint such personnel as the Director

20 considers appropriate.

21 (c) APPLICABILITY OF CIVIL SERVICE LAWS.—The

22 staff of the Commission shall be appointed without regard

23 to the provisions of title 5, United States Code, governing

24 appointments in the competitive service, and shall be paid

25 without regard to the provisions of chapter 51 and sub-
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1 chapter III of chapter 53 of such title relating to classi2 fication and General Schedule pay rates.

3 (d) EXPERTS AND CONSULTANTS.—With the ap4 proval of the Commission, the Director may procure tem5 porary and intermittent services under section 3109(b) of

6 title 5, United States Code.

7 (e) STAFF OF FEDERAL AGENCIES.—Upon the re8 quest of the Commission, the head of any Federal agency

9 may detail, on a reimbursable basis, any of the personnel

10 of such agency to the Commission to assist in carrying

11 out the duties of the Commission under this subtitle.

12 (f) OTHER RESOURCES.—The Commission shall have

13 reasonable access to materials, resources, statistical data,

14 and other information from the Library of Congress and

15 agencies and elected representatives of the executive and

16 legislative branches of the Federal Government. The

17 Chairperson of the Commission shall make requests for

18 such access in writing when necessary.

19 (g) PHYSICAL FACILITIES.—The Administrator of

20 the General Services Administration shall locate suitable

21 office space for the operation of the Commission. The fa22 cilities shall serve as the headquarters of the Commission

23 and shall include all necessary equipment and incidentals

24 required for proper functioning of the Commission.
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1 SEC. 235. POWERS OF COMMISSION.

2 (a) HEARINGS.—The Commission may conduct pub3 lic hearings or forums at the discretion of the Commission,

4 at any time and place the Commission is able to secure

5 facilities and witnesses, for the purpose of carrying out

6 the duties of the Commission under this subtitle.

7 (b) DELEGATION OF AUTHORITY.—Any member or

8 agent of the Commission may, if authorized by the Com9 mission, take any action the Commission is authorized to

10 take by this section.

11 (c) INFORMATION.—The Commission may secure di12 rectly from any Federal agency information necessary to

13 enable the Commission to carry out its duties under this

14 subtitle. Upon request of the Chairperson or Vice Chair15 person of the Commission, the head of a Federal agency

16 shall furnish the information to the Commission to the ex17 tent permitted by law.

18 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis19 sion may accept, use, and dispose of gifts, bequests, or

20 devises of services or property, both real and personal, for

21 the purpose of aiding or facilitating the work of the Com22 mission. Gifts, bequests, or devises of money and proceeds

23 from sales of other property received as gifts, bequests,

24 or devises shall be deposited in the Treasury and shall be

25 available for disbursement upon order of the Commission.
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1 (e) MAILS.—The Commission may use the United

2 States mails in the same manner and under the same con3 ditions as other Federal agencies.

4 SEC. 236. REPORTS.

5 (a) INTERIM REPORT.—Not later than 1 year prior

6 to the date on which the Commission terminates pursuant

7 to section 237, the Commission shall submit an interim

8 report to the President and to the Congress. The interim

9 report shall contain a detailed statement of the findings

10 and conclusions of the Commission, together with the

11 Commission’s recommendations for legislative and admin12 istrative action, based on the activities of the Commission.

13 (b) FINAL REPORT.—Not later than the date on

14 which the Commission terminates, the Commission shall

15 submit to the Congress and to the President a final report

16 containing—

17 (1) a detailed statement of final findings, con18 clusions, and recommendations; and

19 (2) an assessment of the extent to which rec20 ommendations of the Commission included in the in21 terim report under subsection (a) have been imple22 mented.

23 (c) PRINTING AND PUBLIC DISTRIBUTION.—Upon

24 receipt of each report of the Commission under this sec25 tion, the President shall—
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1 (1) order the report to be printed; and

2 (2) make the report available to the public upon

3 request.

4 SEC. 237. TERMINATION.

5 The Commission shall terminate on the date that is

6 2 years after the date on which the members of the Com7 mission have met and designated a Chairperson and Vice

8 Chairperson.

9 Subtitle E—State Supplementation

10 Programs

11 SEC. 241. REPEAL OF MAINTENANCE OF EFFORT REQUIRE12 MENTS APPLICABLE TO OPTIONAL STATE

13 PROGRAMS FOR SUPPLEMENTATION OF SSI

14 BENEFITS.

15 (a) IN GENERAL.—Section 1618 (42 U.S.C. 1382g)

16 is repealed.

17 (b) EFFECTIVE DATE.—The repeal made by sub18 section (a) shall apply with respect to calendar quarters

19 beginning after September 30, 1995.
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1 Subtitle F—Retirement Age

2 Eligibility

3 SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY IN4 COME BENEFITS BASED ON SOCIAL SECU5 RITY RETIREMENT AGE.

6 (a) IN GENERAL.—Section 1614(a)(1)(A) (42 U.S.C.

7 1382C(a)(1)(A)) is amended by striking ‘‘is 65 years of

8 age or older,’’ and inserting ‘‘has attained retirement

9 age.’’.

10 (b) RETIREMENT AGE DEFINED.—Section 1614 (42

11 U.S.C. 1382c) is amended by adding at the end the follow12 ing new subsection:

13 ‘‘Retirement Age

14 ‘‘(g) For purposes of this title, the term ‘‘retirement

15 age’’ has the meaning given such term by section

16 216(l)(1).’’.

17 (c) CONFORMING AMENDMENTS.—Sections 1601,

18 1612(b)(4), 1615(a)(1), and 1620(b)(2) (42 U.S.C. 1381,

19 1382a(b)(4), 1382d(a)(1), and 1382i(b)(2)) are amended

20 by striking ‘‘age 65’’ each place it appears and inserting

21 ‘‘retirement age’’.

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

23 this section shall apply to applicants for benefits for

24 months beginning after September 30, 1995.
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1 TITLE III—FOOD STAMP

2 PROGRAM

3 Subtitle A—Food Stamp Reform

4 SEC. 301. DECLARATION OF POLICY.

5 Section 2 of the Food Stamp Act of 1977 (7 U.S.C.

6 2011) is amended by adding at the end the following:

7 ‘‘Congress intends that the food stamp program support

8 the employment focus and family strengthening mission

9 of public welfare and welfare replacement programs by—

10 ‘‘(1) facilitating the transition of low-income

11 families and households from economic dependency

12 to economic self-sufficiency through work;

13 ‘‘(2) promoting employment as the primary

14 means of income support for economically dependent

15 families and households and reducing the barriers to

16 employment of economically dependent families and

17 households; and

18 ‘‘(3) maintaining and strengthening healthy

19 family functioning and family life.’’.

20 SEC. 301A. CERTIFICATION PERIOD.

21 Section 3(c) of the Food Stamp Act of 1977 (7

22 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro23 vided’’ and all that follows and inserting the following:

24 ‘‘The certification period shall not exceed 12 months, ex25 cept that the certification period may be up to 24 months
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1 if all adult household members are elderly, disabled, or

2 primarily self-employed. A State agency shall have at least

3 1 personal contact with each certified household every 12

4 months.’’.

5 SEC. 302. TREATMENT OF CHILDREN LIVING AT HOME.

6 The second sentence of section 3(i) of the Food

7 Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by

8 striking ‘‘(who are not themselves parents living with their

9 children or married and living with their spouses)’’.

10 SEC. 303. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE

11 HOUSEHOLD DETERMINATIONS.

12 (a) IN GENERAL.—Section 3(i) of the Food Stamp

13 Act of 1977 (7 U.S.C. 2012(i)) is amended by inserting

14 after the third sentence the following: ‘‘Notwithstanding

15 the preceding sentences, a State may establish criteria

16 that prescribe when individuals who live together, and who

17 would be allowed to participate as separate households

18 under the preceding sentences, shall be considered a single

19 household, without regard to the common purchase of food

20 and preparation of meals.’’.

21 (b) CONFORMING AMENDMENT.—The second sen22 tence of section 5(a) of the Act (7 U.S.C. 2014(a)) is

23 amended by striking ‘‘the third sentence of section 3(i)’’

24 and inserting ‘‘the fourth sentence of section 3(i)’’.
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1 SEC. 304. ADJUSTMENT OF THRIFTY FOOD PLAN.

2 The second sentence of section 3(o) of the Food

3 Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—

4 (1) by striking ‘‘shall (1) make’’ and inserting

5 the following: ‘‘shall—

6 ‘‘(1) make’’;

7 (2) by striking ‘‘scale, (2) make’’ and inserting

8 ‘‘scale;

9 ‘‘(2) make’’;

10 (3) by striking ‘‘Alaska, (3) make’’ and insert11 ing the following: ‘‘Alaska;

12 ‘‘(3) make’’; and

13 (4) by striking ‘‘Columbia, (4) through’’ and all

14 that follows through the end of the subsection and

15 inserting the following: ‘‘Columbia; and

16 ‘‘(4) on October 1, 1995, and each October 1

17 thereafter, adjust the cost of the diet to reflect the

18 cost of the diet, in the preceding June, and round

19 the result to the nearest lower dollar increment for

20 each household size, except that on October 1, 1995,

21 the Secretary may not reduce the cost of the diet in

22 effect on September 30, 1995.’’.

23 SEC. 305. DEFINITION OF HOMELESS INDIVIDUAL.

24 Section 3(s)(2)(C) of the Food Stamp Act of 1977

25 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

26 more than 90 days’’ after ‘‘temporary accommodation’’.
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1 SEC. 306. STATE OPTIONS IN REGULATIONS.

2 Section 5(b) of the Food Stamp Act of 1977 (7

3 U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec4 retary’’ and inserting the following:

5 ‘‘(b) UNIFORM STANDARDS.—Except as otherwise

6 provided in this Act, the Secretary’’.

7 SEC. 307. EARNINGS OF STUDENTS.

8 Section 5(d)(7) of the Food Stamp Act of 1977 (7

9 U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and in10 serting ‘‘19’’.

11 SEC. 308. ENERGY ASSISTANCE.

12 (a) IN GENERAL.—Section 5(d) of the Food Stamp

13 Act of 1977 (7 U.S.C. 2014(d)) is amended by striking

14 paragraph (11) and inserting the following: ‘‘(11) a one15 time payment or allowance made under a Federal or State

16 law for the costs of weatherization or emergency repair

17 or replacement of an unsafe or inoperative furnace or

18 other heating or cooling device,’’.

19 (b) CONFORMING AMENDMENTS.—

20 (1) Section 5(k) of the Act (7 U.S.C. 2014(k))

21 is amended—

22 (A) in paragraph (1)—

23 (i) in subparagraph (A), by striking

24 ‘‘plan for aid to families with dependent

25 children approved’’ and inserting ‘‘program

26 funded’’; and
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1 (ii) in subparagraph (B), by striking

2 ‘‘, not including energy or utility-cost as3 sistance,’’; and

4 (B) in paragraph (2), by striking subpara5 graph (C) and inserting the following:

6 ‘‘(C) a payment or allowance described in sub7 section (d)(11);’’;

8 (C) by adding at the end the following:

9 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY10 MENTS.—

11 ‘‘(A) ENERGY ASSISTANCE PAYMENTS.—

12 For purposes of subsection (d)(1), a payment

13 made under a Federal or State law to provide

14 energy assistance to a household shall be con15 sidered money payable directly to the house16 hold.

17 ‘‘(B) ENERGY ASSISTANCE EXPENSES.—

18 For purposes of subsection (e)(7), an expense

19 paid on behalf of a household under a Federal

20 or State law to provide energy assistance shall

21 be considered an out-of-pocket expense incurred

22 and paid by the household.’’.

23 (2) Section 2605(f) of the Low-Income Home

24 Energy Assistance Act of 1981 (42 U.S.C. 8624(f))

25 is amended—
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1 (A) by striking ‘‘(f)(1) Notwithstanding’’

2 and inserting ‘‘(f) Notwithstanding’’;

3 (B) in paragraph (1), by striking ‘‘food

4 stamps,’’; and

5 (C) by striking paragraph (2).

6 SEC. 309. DEDUCTIONS FROM INCOME.

7 (a) IN GENERAL.—Section 5 of the Food Stamp Act

8 of 1977 (7 U.S.C. 2014) is amended by striking sub9 section (e) and inserting the following:

10 ‘‘(e) DEDUCTIONS FROM INCOME.—

11 ‘‘(1) STANDARD DEDUCTION.—

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

13 allow a standard deduction for each household

14 in the 48 contiguous States and the District of

15 Columbia, Alaska, Hawaii, Guam, and the Vir16 gin Islands of the United States of—

17 ‘‘(i) for fiscal year 1995, $134, $229,

18 $189, $269, and $118, respectively;

19 ‘‘(ii) for fiscal year 1996, $132, $225,

20 $186, $265, and $116, respectively; and

21 ‘‘(iii) for fiscal years 1997 through

22 2002, $124, $211, $174, $248 and $109,

23 respectively.

24 ‘‘(B) ADJUSTMENT FOR INFLATION.—On

25 October 1, 2002, and each October 1 thereafter,
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1 the Secretary shall adjust the standard deduc2 tion to the nearest lower dollar increment to re3 flect changes in the Consumer Price Index for

4 all urban consumers published by the Bureau of

5 Labor Statistics, for items other than food, for

6 the 12-month period ending the preceding June

7 30.

8 ‘‘(2) EARNED INCOME DEDUCTION.—

9 ‘‘(A) IN GENERAL.—Except as provided in

10 subparagraph (B), a household with earned in11 come shall be allowed a deduction of 20 percent

12 of all earned income (other than income ex13 cluded by subsection (d)), to compensate for

14 taxes, other mandatory deductions from salary,

15 and work expenses.

16 ‘‘(B) EXCEPTION.—The deduction de17 scribed in subparagraph (A) shall not be al18 lowed with respect to determining an

19 overissuance due to the failure of a household

20 to report earned income in a timely manner.

21 ‘‘(3) DEPENDENT CARE DEDUCTION.—

22 ‘‘(A) IN GENERAL.—A household shall be

23 entitled, with respect to expenses (other than

24 excluded expenses described in subparagraph

25 (B)) for dependent care, to a dependent care
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1 deduction, the maximum allowable level of

2 which shall be $200 per month for each depend3 ent child under 2 years of age and $175 per

4 month for each other dependent, for the actual

5 cost of payments necessary for the care of a

6 dependent if the care enables a household mem7 ber to accept or continue employment, or train8 ing or education that is preparatory for employ9 ment.

10 ‘‘(B) EXCLUDED EXPENSES.—The ex11 cluded expenses referred to in subparagraph

12 (A) are—

13 ‘‘(i) expenses paid on behalf of the

14 household by a third party;

15 ‘‘(ii) amounts made available and ex16 cluded for the expenses referred to in sub17 paragraph (A) under subsection (d)(3);

18 and

19 ‘‘(iii) expenses that are paid under

20 section 6(d)(4).

21 ‘‘(4) DEDUCTION FOR CHILD SUPPORT PAY22 MENTS.—

23 ‘‘(A) IN GENERAL.—A household shall be

24 entitled to a deduction for child support pay25 ments made by a household member to or for
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1 an individual who is not a member of the

2 household if the household member is legally

3 obligated to make the payments.

4 ‘‘(B) METHODS FOR DETERMINING

5 AMOUNT.—The Secretary may prescribe by reg6 ulation the methods, including calculation on a

7 retrospective basis, that a State agency shall

8 use to determine the amount of the deduction

9 for child support payments.

10 ‘‘(5) HOMELESS SHELTER DEDUCTION.—A

11 State agency may develop a standard homeless shel12 ter deduction, which shall not exceed $139 per

13 month, for such expenses as may reasonably be ex14 pected to be incurred by households in which all

15 members are homeless individuals but are not receiv16 ing free shelter throughout the month. A State agen17 cy that develops the deduction may use the deduc18 tion in determining eligibility and allotments for the

19 households, except that the State agency may pro20 hibit the use of the deduction for households with

21 extremely low shelter costs.

22 ‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—

23 ‘‘(A) IN GENERAL.—A household contain24 ing an elderly or disabled member shall be enti25 tled, with respect to expenses other than ex-
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1 penses paid on behalf of the household by a

2 third party, to an excess medical expense de3 duction for the portion of the actual costs of al4 lowable medical expenses, incurred by the elder5 ly or disabled member, exclusive of special diets,

6 that exceeds $35 per month.

7 ‘‘(B) METHOD OF CLAIMING DEDUC8 TION.—

9 ‘‘(i) IN GENERAL.—A State agency

10 shall offer an eligible household under sub11 paragraph (A) a method of claiming a de12 duction for recurring medical expenses that

13 are initially verified under the excess medi14 cal expense deduction in lieu of submitting

15 information or verification on actual ex16 penses on a monthly basis.

17 ‘‘(ii) METHOD.—The method de18 scribed in clause (i) shall—

19 ‘‘(I) be designed to minimize the

20 burden for the eligible elderly or dis21 abled household member choosing to

22 deduct the recurrent medical expenses

23 of the member pursuant to the meth24 od;
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1 ‘‘(II) rely on reasonable estimates

2 of the expected medical expenses of

3 the member for the certification pe4 riod (including changes that can be

5 reasonably anticipated based on avail6 able information about the medical

7 condition of the member, public or

8 private medical insurance coverage,

9 and the current verified medical ex10 penses incurred by the member); and

11 ‘‘(III) not require further report12 ing or verification of a change in med13 ical expenses if such a change has

14 been anticipated for the certification

15 period.

16 ‘‘(7) EXCESS SHELTER EXPENSE DEDUC17 TION.—

18 ‘‘(A) IN GENERAL.—A household shall be

19 entitled, with respect to expenses other than ex20 penses paid on behalf of the household by a

21 third party, to an excess shelter expense deduc22 tion to the extent that the monthly amount ex23 pended by a household for shelter exceeds an

24 amount equal to 50 percent of monthly house-
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1 hold income after all other applicable deduc2 tions have been allowed.

3 ‘‘(B) MAXIMUM AMOUNT OF DEDUC4 TION.—

5 ‘‘(i) PRIOR TO SEPTEMBER 30, 1995.—

6 In the case of a household that does not

7 contain an elderly or disabled individual,

8 during the 15-month period ending Sep9 tember 30, 1995, the excess shelter ex10 pense deduction shall not exceed—

11 ‘‘(I) in the 48 contiguous States

12 and the District of Columbia, $231

13 per month; and

14 ‘‘(II) in Alaska, Hawaii, Guam,

15 and the Virgin Islands of the United

16 States, $402, $330, $280, and $171

17 per month, respectively.

18 ‘‘(ii) AFTER SEPTEMBER 30, 1995.—In

19 the case of a household that does not con20 tain an elderly or disabled individual, dur21 ing the 15-month period ending December

22 31, 1996, the excess shelter expense deduc23 tion shall not exceed—
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1 ‘‘(I) in the 48 contiguous States

2 and the District of Columbia, $247

3 per month; and

4 ‘‘(II) in Alaska, Hawaii, Guam,

5 and the Virgin Islands of the United

6 States, $429, $353, $300, and $182

7 per month, respectively.

8 ‘‘(C) STANDARD UTILITY ALLOWANCE.—

9 ‘‘(i) IN GENERAL.—In computing the

10 excess shelter expense deduction, a State

11 agency may use a standard utility allow12 ance in accordance with regulations pro13 mulgated by the Secretary, except that a

14 State agency may use an allowance that

15 does not fluctuate within a year to reflect

16 seasonal variations.

17 ‘‘(ii) RESTRICTIONS ON HEATING AND

18 COOLING EXPENSES.—An allowance for a

19 heating or cooling expense may not be used

20 in the case of a household that—

21 ‘‘(I) does not incur a heating or

22 cooling expense, as the case may be;

23 ‘‘(II) does incur a heating or

24 cooling expense but is located in a

25 public housing unit that has central
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1 utility meters and charges households,

2 with regard to the expense, only for

3 excess utility costs; or

4 ‘‘(III) shares the expense with,

5 and lives with, another individual not

6 participating in the food stamp pro7 gram, another household participating

8 in the food stamp program, or both,

9 unless the allowance is prorated be10 tween the household and the other in11 dividual, household, or both.

12 ‘‘(iii) MANDATORY ALLOWANCE.—

13 ‘‘(I) IN GENERAL.—A State

14 agency may make the use of a stand15 ard utility allowance mandatory for all

16 households with qualifying utility

17 costs if—

18 ‘‘(aa) the State agency has

19 developed 1 or more standards

20 that include the cost of heating

21 and cooling and 1 or more stand22 ards that do not include the cost

23 of heating and cooling; and

24 ‘‘(bb) the Secretary finds

25 that the standards will not result
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1 in an increased cost to the Sec2 retary.

3 ‘‘(II) HOUSEHOLD ELECTION.—

4 A State agency that has not made the

5 use of a standard utility allowance

6 mandatory under subclause (I) shall

7 allow a household to switch, at the

8 end of a certification period, between

9 the standard utility allowance and a

10 deduction based on the actual utility

11 costs of the household.

12 ‘‘(iv) AVAILABILITY OF ALLOWANCE

13 TO RECIPIENTS OF ENERGY ASSISTANCE.—

14 ‘‘(I) IN GENERAL.—Subject to

15 subclause (II), if a State agency elects

16 to use a standard utility allowance

17 that reflects heating or cooling costs,

18 the standard utility allowance shall be

19 made available to households receiving

20 a payment, or on behalf of which a

21 payment is made, under the Low-In22 come Home Energy Assistance Act of

23 1981 (42 U.S.C. 8621 et seq.) or

24 other similar energy assistance pro25 gram, if the household still incurs out-
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1 of-pocket heating or cooling expenses

2 in excess of any assistance paid on be3 half of the household to an energy

4 provider.

5 ‘‘(II) SEPARATE ALLOWANCE.—A

6 State agency may use a separate

7 standard utility allowance for house8 holds on behalf of which a payment

9 described in subclause (I) is made,

10 but may not be required to do so.

11 ‘‘(III) STATES NOT ELECTING TO

12 USE SEPARATE ALLOWANCE.—A State

13 agency that does not elect to use a

14 separate allowance but makes a single

15 standard utility allowance available to

16 households incurring heating or cool17 ing expenses (other than a household

18 described in subclause (I) or (II) of

19 subparagraph (C)(ii)) may not be re20 quired to reduce the allowance due to

21 the provision (directly or indirectly) of

22 assistance under the Low-Income

23 Home Energy Assistance Act of 1981

24 (42 U.S.C. 8621 et seq.).
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1 ‘‘(IV) PRORATION OF ASSIST2 ANCE.—For the purpose of the food

3 stamp program, assistance provided

4 under the Low-Income Home Energy

5 Assistance Act of 1981 (42 U.S.C.

6 8621 et seq.) shall be considered to be

7 prorated over the entire heating or

8 cooling season for which the assist9 ance was provided.’’.

10 (b) CONFORMING AMENDMENT.—Section 11(e)(3) of

11 the Act (7 U.S.C. 2020(e)(3)) is amended by striking ‘‘.

12 Under rules prescribed’’ and all that follows through

13 ‘‘verifies higher expenses’’.

14 SEC. 310. AMOUNT OF VEHICLE ASSET LIMITATION.

15 The first sentence of section 5(g)(2) of the Food

16 Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by

17 striking ‘‘through September 30, 1995’’ and all that fol18 lows through ‘‘such date and on’’ and inserting ‘‘and shall

19 be adjusted on October 1, 1996, and’’.

20 SEC. 311. BENEFITS FOR ALIENS.

21 Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.

22 2014(i)) is amended—

23 (1) in the first sentence of paragraph (1)—

24 (A) by inserting ‘‘or who executed such an

25 affidavit or similar agreement to enable the in-
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1 dividual to lawfully remain in the United

2 States,’’ after ‘‘respect to such individual,’’; and

3 (B) by striking ‘‘for a period’’ and all that

4 follows through the period at the end and in5 serting ‘‘until the end of the period ending on

6 the later of the date agreed to in the affidavit

7 or agreement or the date that is 5 years after

8 the date on which the individual was first law9 fully admitted into the United States following

10 the execution of the affidavit or agreement.’’;

11 and

12 (2) in paragraph (2)—

13 (A) in subparagraph (C)(i), by striking ‘‘of

14 three years after entry into the United States’’

15 and inserting ‘‘determined under paragraph

16 (1)’’; and

17 (B) in subparagraph (D), by striking ‘‘of

18 three years after such alien’s entry into the

19 United States’’ and inserting ‘‘determined

20 under paragraph (1)’’.

21 SEC. 312. DISQUALIFICATION.

22 (a) IN GENERAL.—Section 6(d) of the Food Stamp

23 Act of 1977 (7 U.S.C. 2015(d)) is amended by striking

24 ‘‘(d)(1) Unless otherwise exempted by the provisions’’ and
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1 all that follows through the end of paragraph (1) and in2 serting the following:

3 ‘‘(d) CONDITIONS OF PARTICIPATION.—

4 ‘‘(1) WORK REQUIREMENTS.—

5 ‘‘(A) IN GENERAL.—No physically and

6 mentally fit individual over the age of 15 and

7 under the age of 60 shall be eligible to partici8 pate in the food stamp program if the individ9 ual—

10 ‘‘(i) refuses, at the time of application

11 and every 12 months thereafter, to register

12 for employment in a manner prescribed by

13 the Secretary;

14 ‘‘(ii) refuses without good cause to

15 participate in an employment and training

16 program under paragraph (4), to the ex17 tent required by the State agency;

18 ‘‘(iii) refuses without good cause to

19 accept an offer of employment, at a site or

20 plant not subject to a strike or lockout at

21 the time of the refusal, at a wage not less

22 than the higher of—

23 ‘‘(I) the applicable Federal or

24 State minimum wage; or
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1 ‘‘(II) 80 percent of the wage that

2 would have governed had the mini3 mum hourly rate under section

4 6(a)(1) of the Fair Labor Standards

5 Act of 1938 (29 U.S.C. 206(a)(1))

6 been applicable to the offer of employ7 ment;

8 ‘‘(iv) refuses without good cause to

9 provide a State agency with sufficient in10 formation to allow the State agency to de11 termine the employment status or the job

12 availability of the individual;

13 ‘‘(v) voluntarily and without good

14 cause—

15 ‘‘(I) quits a job; or

16 ‘‘(II) reduces work effort and,

17 after the reduction, the individual is

18 working less than 30 hours per week;

19 or

20 ‘‘(vi) fails to comply with section 20.

21 ‘‘(B) HOUSEHOLD INELIGIBILITY.—If an

22 individual who is the head of a household be23 comes ineligible to participate in the food stamp

24 program under subparagraph (A), the house25 hold shall, at the option of the State agency,
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1 become ineligible to participate in the food

2 stamp program for a period, determined by the

3 State agency, that does not exceed the lesser

4 of—

5 ‘‘(i) the duration of the ineligibility of

6 the individual determined under subpara7 graph (C); or

8 ‘‘(ii) 180 days.

9 ‘‘(C) DURATION OF INELIGIBILITY.—

10 ‘‘(i) FIRST VIOLATION.—The first

11 time that an individual becomes ineligible

12 to participate in the food stamp program

13 under subparagraph (A), the individual

14 shall remain ineligible until the later of—

15 ‘‘(I) the date the individual be16 comes eligible under subparagraph

17 (A);

18 ‘‘(II) the date that is 1 month

19 after the date the individual became

20 ineligible; or

21 ‘‘(III) a date determined by the

22 State agency that is not later than 3

23 months after the date the individual

24 became ineligible.
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1 ‘‘(ii) SECOND VIOLATION.—The sec2 ond time that an individual becomes ineli3 gible to participate in the food stamp pro4 gram under subparagraph (A), the individ5 ual shall remain ineligible until the later

6 of—

7 ‘‘(I) the date the individual be8 comes eligible under subparagraph

9 (A);

10 ‘‘(II) the date that is 3 months

11 after the date the individual became

12 ineligible; or

13 ‘‘(III) a date determined by the

14 State agency that is not later than 6

15 months after the date the individual

16 became ineligible.

17 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA18 TION.—The third or subsequent time that

19 an individual becomes ineligible to partici20 pate in the food stamp program under sub21 paragraph (A), the individual shall remain

22 ineligible until the later of—

23 ‘‘(I) the date the individual be24 comes eligible under subparagraph

25 (A);
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1 ‘‘(II) the date that is 6 months

2 after the date the individual became

3 ineligible;

4 ‘‘(III) a date determined by the

5 State agency; or

6 ‘‘(IV) at the option of the State

7 agency, permanently.

8 ‘‘(D) ADMINISTRATION.—

9 ‘‘(i) GOOD CAUSE.—The Secretary

10 shall determine the meaning of good cause

11 for the purpose of this paragraph.

12 ‘‘(ii) VOLUNTARY QUIT.—The Sec13 retary shall determine the meaning of vol14 untarily quitting and reducing work effort

15 for the purpose of this paragraph.

16 ‘‘(iii) DETERMINATION BY STATE

17 AGENCY.—

18 ‘‘(I) IN GENERAL.—Subject to

19 subclause (II) and clauses (i) and (ii),

20 a State agency shall determine—

21 ‘‘(aa) the meaning of any

22 term in subparagraph (A);

23 ‘‘(bb) the procedures for de24 termining whether an individual

25 is in compliance with a require-
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1 ment under subparagraph (A);

2 and

3 ‘‘(cc) whether an individual

4 is in compliance with a require5 ment under subparagraph (A).

6 ‘‘(II) NOT LESS RESTRICTIVE.—

7 A State agency may not determine a

8 meaning, procedure, or determination

9 under subclause (I) to be less restric10 tive than a comparable meaning, pro11 cedure, or determination under a

12 State program funded under part A of

13 title IV of the Social Security Act (42

14 U.S.C. 601 et seq.).

15 ‘‘(iv) STRIKE AGAINST THE GOVERN16 MENT.—For the purpose of subparagraph

17 (A)(v), an employee of the Federal Govern18 ment, a State, or a political subdivision of

19 a State, who is dismissed for participating

20 in a strike against the Federal Govern21 ment, the State, or the political subdivision

22 of the State shall be considered to have

23 voluntarily quit without good cause.

24 ‘‘(v) SELECTING A HEAD OF HOUSE25 HOLD.—
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1 ‘‘(I) IN GENERAL.—For the pur2 pose of this paragraph, the State

3 agency shall allow the household to se4 lect any adult parent of a child in the

5 household as the head of the house6 hold if all adult household members

7 making application under the food

8 stamp program agree to the selection.

9 ‘‘(II) TIME FOR MAKING DES10 IGNATION.—A household may des11 ignate the head of the household

12 under subclause (I) each time the

13 household is certified for participation

14 in the food stamp program, but may

15 not change the designation during a

16 certification period unless there is a

17 change in the composition of the

18 household.

19 ‘‘(vi) CHANGE IN HEAD OF HOUSE20 HOLD.—If the head of a household leaves

21 the household during a period in which the

22 household is ineligible to participate in the

23 food stamp program under subparagraph

24 (B)—
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1 ‘‘(I) the household shall, if other2 wise eligible, become eligible to par3 ticipate in the food stamp program;

4 and

5 ‘‘(II) if the head of the household

6 becomes the head of another house7 hold, the household that becomes

8 headed by the individual shall become

9 ineligible to participate in the food

10 stamp program for the remaining pe11 riod of ineligibility.’’.

12 (b) CONFORMING AMENDMENT.—

13 (1) The second sentence of section 17(b)(2) of

14 the Act (7 U.S.C. 2026(b)(2)) is amended by strik15 ing ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.

16 (2) Section 20 of the Act (7 U.S.C. 2029) is

17 amended by striking subsection (f) and inserting the

18 following:

19 ‘‘(f) DISQUALIFICATION.—An individual or a house20 hold may become ineligible under section 6(d)(1) to par21 ticipate in the food stamp program for failing to comply

22 with this section.’’.

23 SEC. 313. CARETAKER EXEMPTION.

24 Section 6(d)(2) of the Food Stamp Act of 1977 (7

25 U.S.C. 2015(d)(2)) is amended by striking subparagraph
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1 (B) and inserting the following: ‘‘(B) a parent or other

2 member of a household with responsibility for the care of

3 (i) a dependent child under the age of 6 or any lower age

4 designated by the State agency that is not under the age

5 of 1, or (ii) an incapacitated person;’’.

6 SEC. 314. EMPLOYMENT AND TRAINING.

7 (a) IN GENERAL.—Section 6(d)(4) of the Food

8 Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—

9 (1) in subparagraph (A)—

10 (A) by striking ‘‘Not later than April 1,

11 1987, each’’ and inserting ‘‘Each’’;

12 (B) by inserting ‘‘work,’’ after ‘‘skills,

13 training,’’; and

14 (C) by adding at the end the following:

15 ‘‘Each component of an employment and train16 ing program carried out under this paragraph

17 shall be delivered through the statewide

18 workforce development system established in

19 section 711 of the Work Opportunity Act of

20 1995, unless the component is not available lo21 cally through the statewide workforce develop22 ment system.’’;

23 (2) in subparagraph (B)—

24 (A) in the matter preceding clause (i), by

25 striking the colon at the end and inserting the
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1 following: ‘‘, except that the State agency shall

2 retain the option to apply employment require3 ments prescribed under this subparagraph to a

4 program applicant at the time of application:’’;

5 (B) in clause (i), by striking ‘‘with terms

6 and conditions’’ and all that follows through

7 ‘‘time of application’’; and

8 (C) in clause (iv)—

9 (i) by striking subclauses (I) and (II);

10 and

11 (ii) by redesignating subclauses (III)

12 and (IV) as subclauses (I) and (II), respec13 tively;

14 (3) in subparagraph (D)—

15 (A) in clause (i), by striking ‘‘to which the

16 application’’ and all that follows through ‘‘30

17 days or less’’;

18 (B) in clause (ii), by striking ‘‘but with re19 spect’’ and all that follows through ‘‘child

20 care’’; and

21 (C) in clause (iii), by striking ‘‘, on the

22 basis of’’ and all that follows through ‘‘clause

23 (ii)’’ and inserting ‘‘the exemption continues to

24 be valid’’;
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1 (4) in subparagraph (E), by striking the third

2 sentence;

3 (5) in subparagraph (G)—

4 (A) by striking ‘‘(G)(i) The State’’ and in5 serting ‘‘(G) The State’’; and

6 (B) by striking clause (ii);

7 (6) in subparagraph (H), by striking ‘‘(H)(i)

8 The Secretary’’ and all that follows through ‘‘(ii)

9 Federal funds’’ and inserting ‘‘(H) Federal funds’’;

10 (7) in subparagraph (I)(i)(II), by striking ‘‘, or

11 was in operation,’’ and all that follows through ‘‘So12 cial Security Act’’ and inserting the following: ‘‘),

13 except that no such payment or reimbursement shall

14 exceed the applicable local market rate’’;

15 (8)(A) by striking subparagraphs (K) and (L)

16 and inserting the following:

17 ‘‘(K) LIMITATION ON FUNDING.—Notwith18 standing any other provision of this paragraph,

19 the amount of funds a State agency uses to

20 carry out this paragraph (including under sub21 paragraph (I)) for participants who are receiv22 ing benefits under a State program funded

23 under part A of title IV of the Social Security

24 Act (42 U.S.C. 601 et seq.) shall not exceed the

25 amount of funds the State agency used in fiscal
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1 year 1995 to carry out this paragraph for par2 ticipants who were receiving benefits in fiscal

3 year 1995 under a State program funded under

4 part A of title IV of the Act (42 U.S.C. 601 et

5 seq.).’’; and

6 (B) by redesignating subparagraphs (M) and

7 (N) as subparagraphs (L) and (M), respectively; and

8 (9) in subparagraph (L) (as redesignated by

9 paragraph (8)(B))—

10 (A) by striking ‘‘(L)(i) The Secretary’’ and

11 inserting ‘‘(L) The Secretary’’; and

12 (B) by striking clause (ii).

13 (b) EFFECTIVE DATE.—The amendment made by

14 subsection (a)(1)(C) shall take effect—

15 (1) in a State described in section 815(b)(1), on

16 July 1, 1997; and

17 (2) in any other State, on July 1, 1998.

18 (c) FUNDING.—Section 16(h) of the Act (7 U.S.C.

19 2025(h)) is amended by striking ‘‘(h)(1)(A) The Sec20 retary’’ and all that follows through the end of paragraph

21 (1) and inserting the following:

22 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING

23 PROGRAMS.—

24 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) AMOUNTS.—To carry out employ2 ment and training programs, the Secretary

3 shall reserve for allocation to State agencies

4 from funds made available for each fiscal year

5 under section 18(a)(1) the amount of—

6 ‘‘(i) for fiscal year 1996, $77,000,000;

7 ‘‘(ii) for fiscal year 1997,

8 $80,000,000;

9 ‘‘(iii) for fiscal year 1998,

10 $83,000,000;

11 ‘‘(iv) for fiscal year 1999,

12 $86,000,000;

13 ‘‘(v) for fiscal year 2000,

14 $89,000,000;

15 ‘‘(vi) for fiscal year 2001,

16 $92,000,000; and

17 ‘‘(vii) for fiscal year 2002,

18 $95,000,000.

19 ‘‘(B) ALLOCATION.—The Secretary shall

20 allocate the amounts reserved under subpara21 graph (A) among the State agencies using a

22 reasonable formula (as determined by the Sec23 retary) that gives consideration to the popu24 lation in each State affected by section 6(n).

25 ‘‘(C) REALLOCATION.—
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1 ‘‘(i) NOTIFICATION.—A State agency

2 shall promptly notify the Secretary if the

3 State agency determines that the State

4 agency will not expend all of the funds al5 located to the State agency under subpara6 graph (B).

7 ‘‘(ii) REALLOCATION.—On notification

8 under clause (i), the Secretary shall reallo9 cate the funds that the State agency will

10 not expend as the Secretary considers ap11 propriate and equitable.

12 ‘‘(D) MINIMUM ALLOCATION.—Notwith13 standing subparagraphs (A) through (C), the

14 Secretary shall ensure that each State agency

15 operating an employment and training program

16 shall receive not less than $50,000 in each fis17 cal year.’’.

18 (d) ADDITIONAL MATCHING FUNDS.—Section

19 16(h)(2) of the Act (7 U.S.C. 2025(h)(2)) is amended by

20 inserting before the period at the end the following: ‘‘, in21 cluding the costs for case management and casework to

22 facilitate the transition from economic dependency to self23 sufficiency through work’’.

24 (e) REPORTS.—Section 16(h) of the Act (7 U.S.C.

25 2025(h)) is amended—
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1 (1) in paragraph (5)—

2 (A) by striking ‘‘(5)(A) The Secretary’’

3 and inserting ‘‘(5) The Secretary’’; and

4 (B) by striking subparagraph (B); and

5 (2) by striking paragraph (6).

6 SEC. 315. COMPARABLE TREATMENT FOR DISQUALIFICA7 TION.

8 (a) IN GENERAL.—Section 6 of the Food Stamp Act

9 of 1977 (7 U.S.C. 2015) is amended—

10 (1) by redesignating subsection (i) (as added by

11 section 106) as subsection (o); and

12 (2) by inserting after subsection (h) the follow13 ing:

14 ‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA15 TION.—

16 ‘‘(1) IN GENERAL.—If a disqualification is im17 posed on a member of a household for a failure of

18 the member to perform an action required under a

19 Federal, State, or local law relating to a welfare or

20 public assistance program, the State agency may im21 pose the same disqualification on the member of the

22 household under the food stamp program.

23 ‘‘(2) RULES AND PROCEDURES.—If a disquali24 fication is imposed under paragraph (1) for a failure

25 of an individual to perform an action required under
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1 part A of title IV of the Social Security Act (42

2 U.S.C. 601 et seq.), the State agency may use the

3 rules and procedures that apply under part A of title

4 IV of the Act to impose the same disqualification

5 under the food stamp program.

6 ‘‘(3) APPLICATION AFTER DISQUALIFICATION

7 PERIOD.—A member of a household disqualified

8 under paragraph (1) may, after the disqualification

9 period has expired, apply for benefits under this Act

10 and shall be treated as a new applicant, except that

11 a prior disqualification under subsection (d) shall be

12 considered in determining eligibility.’’.

13 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

14 Act (7 U.S.C. 2020(e)) is amended—

15 (1) in paragraph (24), by striking ‘‘and’’ at the

16 end; and

17 (2) by adding at the end the following:

18 ‘‘(26) the guidelines the State agency uses in

19 carrying out section 6(i);’’.

20 (c) CONFORMING AMENDMENT.—Section 6(d)(2)(A)

21 of the Act (7 U.S.C. 2015(d)(2)(A)) is amended by strik22 ing ‘‘that is comparable to a requirement of paragraph

23 (1)’’.
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1 SEC. 316. COOPERATION WITH CHILD SUPPORT AGENCIES.

2 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

3 2015) (as amended by section 315) is further amended

4 by inserting after subsection (i) the following:

5 ‘‘(j) CUSTODIAL PARENT’S COOPERATION WITH

6 CHILD SUPPORT AGENCIES.—

7 ‘‘(1) IN GENERAL.—At the option of a State

8 agency, subject to paragraphs (2) and (3), no natu9 ral or adoptive parent or other individual (collec10 tively referred to in this subsection as ‘the individ11 ual’) who is living with and exercising parental con12 trol over a child under the age of 18 who has an ab13 sent parent shall be eligible to participate in the food

14 stamp program unless the individual cooperates with

15 the State agency administering the program estab16 lished under part D of title IV of the Social Security

17 Act (42 U.S.C. 651 et seq.)—

18 ‘‘(A) in establishing the paternity of the

19 child (if the child is born out of wedlock); and

20 ‘‘(B) in obtaining support for—

21 ‘‘(i) the child; or

22 ‘‘(ii) the individual and the child.

23 ‘‘(2) GOOD CAUSE FOR NONCOOPERATION.—

24 Paragraph (1) shall not apply to the individual if

25 good cause is found for refusing to cooperate, as de26 termined by the State agency in accordance with
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1 standards prescribed by the Secretary in consulta2 tion with the Secretary of Health and Human Serv3 ices. The standards shall take into consideration cir4 cumstances under which cooperation may be against

5 the best interests of the child.

6 ‘‘(3) FEES.—Paragraph (1) shall not require

7 the payment of a fee or other cost for services pro8 vided under part D of title IV of the Social Security

9 Act (42 U.S.C. 651 et seq.).

10 ‘‘(k) NONCUSTODIAL PARENT’S COOPERATION WITH

11 CHILD SUPPORT AGENCIES.—

12 ‘‘(1) IN GENERAL.—At the option of a State

13 agency, subject to paragraphs (2) and (3), a puta14 tive or identified noncustodial parent of a child

15 under the age of 18 (referred to in this subsection

16 as ‘the individual’) shall not be eligible to participate

17 in the food stamp program if the individual refuses

18 to cooperate with the State agency administering the

19 program established under part D of title IV of the

20 Social Security Act (42 U.S.C. 651 et seq.)—

21 ‘‘(A) in establishing the paternity of the

22 child (if the child is born out of wedlock); and

23 ‘‘(B) in providing support for the child.

24 ‘‘(2) REFUSAL TO COOPERATE.—
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1 ‘‘(A) GUIDELINES.—The Secretary, in con2 sultation with the Secretary of Health and

3 Human Services, shall develop guidelines on

4 what constitutes a refusal to cooperate under

5 paragraph (1).

6 ‘‘(B) PROCEDURES.—The State agency

7 shall develop procedures, using guidelines devel8 oped under subparagraph (A), for determining

9 whether an individual is refusing to cooperate

10 under paragraph (1).

11 ‘‘(3) FEES.—Paragraph (1) shall not require

12 the payment of a fee or other cost for services pro13 vided under part D of title IV of the Social Security

14 Act (42 U.S.C. 651 et seq.).

15 ‘‘(4) PRIVACY.—The State agency shall provide

16 safeguards to restrict the use of information col17 lected by a State agency administering the program

18 established under part D of title IV of the Social Se19 curity Act (42 U.S.C. 651 et seq.) to purposes for

20 which the information is collected.’’.

21 SEC. 317. DISQUALIFICATION FOR CHILD SUPPORT AR22 REARS.

23 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

24 2015) (as amended by section 316) is further amended

25 by inserting after subsection (k) the following:
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1 ‘‘(l) DISQUALIFICATION FOR CHILD SUPPORT AR2 REARS.—

3 ‘‘(1) IN GENERAL.—At the option of a State

4 agency, except as provided in paragraph (2), no indi5 vidual shall be eligible to participate in the food

6 stamp program as a member of any household dur7 ing any month that the individual is delinquent in

8 any payment due under a court order for the sup9 port of a child of the individual.

10 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not

11 apply if—

12 ‘‘(A) a court is allowing the individual to

13 delay payment; or

14 ‘‘(B) the individual is complying with a

15 payment plan approved by a court or the State

16 agency designated under part D of title IV of

17 the Social Security Act (42 U.S.C. 651 et seq.)

18 to provide support for the child of the individ19 ual.’’.

20 SEC. 318. PERMANENT DISQUALIFICATION FOR PARTICI21 PATING IN 2 OR MORE STATES.

22 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

23 2015) (as amended by section 317) is further amended

24 by inserting after subsection (l) the following:
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1 ‘‘(m) PERMANENT DISQUALIFICATION FOR PARTICI2 PATING IN 2 OR MORE STATES.—An individual shall be

3 permanently ineligible to participate in the food stamp

4 program as a member of any household if the individual

5 is found by a State agency to have made, or is convicted

6 in Federal or State court of having made, a fraudulent

7 statement or representation with respect to the place of

8 residence of the individual in order to receive benefits si9 multaneously from 2 or more States under the food stamp

10 program.’’.

11 SEC. 319. WORK REQUIREMENT.

12 (a) IN GENERAL.—Section 6 of the Food Stamp Act

13 of 1977 (7 U.S.C. 2015) (as amended by section 318) is

14 further amended by inserting after subsection (m) the fol15 lowing:

16 ‘‘(n) WORK REQUIREMENT.—

17 ‘‘(1) DEFINITION OF WORK PROGRAM.—In this

18 subsection, the term ‘work program’ means—

19 ‘‘(A) a program under the Job Training

20 Partnership Act (29 U.S.C. 1501 et seq.);

21 ‘‘(B) a program under section 236 of the

22 Trade Act of 1974 (19 U.S.C. 2296); or

23 ‘‘(C) a program of employment or training

24 operated or supervised by a State or political

25 subdivision of a State that meets standards ap-
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1 proved by the Governor of the State, including

2 a program under section 6(d)(4) other than a

3 job search program or a job search training

4 program under clause (i) or (ii) of section

5 6(d)(4)(B).

6 ‘‘(2) WORK REQUIREMENT.—No individual

7 shall be eligible to participate in the food stamp pro8 gram as a member of any household if, during the

9 preceding 12-month period, the individual received

10 food stamp benefits for not less than 6 months dur11 ing which the individual did not—

12 ‘‘(A) work 20 hours or more per week,

13 averaged monthly; or

14 ‘‘(B) participate in and comply with the re15 quirements of a work program for 20 hours or

16 more per week, as determined by the State

17 agency.

18 ‘‘(3) EXCEPTION.—Paragraph (2) shall not

19 apply to an individual if the individual is—

20 ‘‘(A) under 18 or over 50 years of age;

21 ‘‘(B) medically certified as physically or

22 mentally unfit for employment;

23 ‘‘(C) a parent or other member of a house24 hold with responsibility for a dependent child;

25 or
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1 ‘‘(D) otherwise exempt under section

2 6(d)(2).

3 ‘‘(4) WAIVER.—

4 ‘‘(A) IN GENERAL.—On the request of a

5 State agency, the Secretary may waive the ap6 plicability of paragraph (2) to any group of in7 dividuals in the State if the Secretary makes a

8 determination that the area in which the indi9 viduals reside—

10 ‘‘(i) has an unemployment rate of over

11 8 percent; or

12 ‘‘(ii) does not have a sufficient num13 ber of jobs to provide employment for the

14 individuals.

15 ‘‘(B) REPORT.—The Secretary shall report

16 the basis for a waiver under subparagraph (A)

17 to the Committee on Agriculture of the House

18 of Representatives and the Committee on Agri19 culture, Nutrition, and Forestry of the Sen20 ate.’’.

21 (b) TRANSITION PROVISION.—Prior to October 1,

22 1996, the term ‘‘preceding 12-month period’’ in section

23 6(n)(2) of the Food Stamp Act of 1977 (as amended by

24 subsection (a)) means the preceding period that begins on

25 October 1, 1995.
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1 SEC. 319A. DISQUALIFICATION OF FLEEING FELONS.

2 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

3 2015), as amended by section 319(a), is further amended

4 by adding at the end the following new subsection:

5 ‘‘(o) No member of a household who is otherwise eli6 gible to participate in the food stamp program shall be

7 eligible to participate in the program as a member of that

8 or any other household during any period during which

9 the individual is—

10 ‘‘(1) fleeing to avoid prosecution, or custody or

11 confinement after conviction, under the laws of the

12 place from which the individual flees, for a crime, or

13 attempt to commit a crime, which is a felony under

14 the laws of the place from which the individual flees,

15 or which, in the case of the State of New Jersey, is

16 a high misdemeanor under the laws of such State;

17 or

18 ‘‘(2) violating a condition of probation or parole

19 imposed under Federal or State law.’’.

20 SEC. 320. ELECTRONIC BENEFIT TRANSFERS.

21 (a) IN GENERAL.—Section 7 of the Food Stamp Act

22 of 1977 (7 U.S.C. 2016) is amended by adding at the end

23 the following:

24 ‘‘(j) ELECTRONIC BENEFIT TRANSFERS.—

25 ‘‘(1) APPLICABLE LAW.—
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1 ‘‘(A) IN GENERAL.—Disclosures, protec2 tions, responsibilities, and remedies established

3 by the Federal Reserve Board under section

4 904 of the Electronic Fund Transfer Act (15

5 U.S.C. 1693b) shall not apply to benefits under

6 this Act delivered through any electronic benefit

7 transfer system.

8 ‘‘(B) DEFINITION OF ELECTRONIC BENE9 FIT TRANSFER SYSTEM.—In this paragraph,

10 the term ‘electronic benefit transfer system’

11 means a system under which a governmental

12 entity distributes benefits under this Act or

13 other benefits or payments by establishing ac14 counts to be accessed by recipients of the bene15 fits electronically, including through the use of

16 an automated teller machine, a point-of-sale

17 terminal, or an intelligent benefit card.

18 ‘‘(2) CHARGING FOR ELECTRONIC BENEFIT

19 TRANSFER CARD REPLACEMENT.—

20 ‘‘(A) IN GENERAL.—A State agency may

21 charge an individual for the cost of replacing a

22 lost or stolen electronic benefit transfer card.

23 ‘‘(B) REDUCING ALLOTMENT.—A State

24 agency may collect a charge imposed under sub25 paragraph (A) by reducing the monthly allot-
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1 ment of the household of which the individual

2 is a member.

3 ‘‘(3) OPTIONAL PHOTOGRAPHIC IDENTIFICA4 TION.—

5 ‘‘(A) IN GENERAL.—A State agency may

6 require that an electronic benefit card contain

7 a photograph of 1 or more members of a house8 hold.

9 ‘‘(B) OTHER AUTHORIZED USERS.—If a

10 State agency requires a photograph on an elec11 tronic benefit card under subparagraph (A), the

12 State agency shall establish procedures to en13 sure that any other appropriate member of the

14 household or any authorized representative of

15 the household may utilize the card.

16 ‘‘(4) STATE ELECTRONIC BENEFITS TRANSFER

17 OPTIONS IN GENERAL.—States may implement elec18 tronic benefit transfer systems under the authorities

19 and conditions set forth in section 7(i) and related

20 provisions, or the authorities and conditions set

21 forth in paragraph (5).

22 ‘‘(5) ELECTRONIC BENEFITS TRANSFER CARD

23 SYSTEMS ASSISTANCE OPTION.—If a State notifies

24 the Secretary of its intention to convert to a state25 wide electronic benefits transfer card system, or a
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1 multiple-State regional electronic benefits transfer

2 card system with other state-wide systems, within

3 three years of the date of enactment of this para4 graph, the Secretary shall allow the establishment of

5 an electronic benefits transfer card system within

6 the State under the following terms—

7 ‘‘(A) COORDINATION AND LAW ENFORCE8 MENT.—

9 ‘‘(i) CONVERSION.—The Secretary

10 shall coordinate with, and assist, the State

11 or States in a regional system in eliminat12 ing the use of food stamp coupons and the

13 full conversion to an electronic benefits

14 transfer card system within three years

15 after the decision of the State to convert to

16 the system set forth in this paragraph.

17 ‘‘(ii) OPERATIONS.—States shall take

18 into account generally accepted standard

19 operating rules for carrying out this para20 graph, based on—

21 ‘‘(I) commercial electronic funds

22 transfer technology;

23 ‘‘(II) the need to permit inter24 state operation and law enforcement

25 monitoring; and
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1 ‘‘(III) the need to permit mon2 itoring and investigations by author3 ized law enforcement agencies.

4 ‘‘(iii) LAW ENFORCEMENT.—The Sec5 retary, in consultation with the Inspector

6 General of the United States Department

7 of Agriculture and the United States Se8 cret Service, shall inform the State of

9 proper security features, good management

10 techniques, and methods of deterring coun11 terfeiting.

12 ‘‘(B) PAPER AND OTHER ALTERNATIVE

13 BENEFIT TRANSFER SYSTEMS.—Beginning on

14 the date of the implementation of the electronic

15 benefits transfer card system in a State under

16 authority of this paragraph, the Secretary shall

17 also permit the use of paper-based and other

18 benefit transfer approaches for providing bene19 fits to food stamp households in the case of spe20 cial-need retail food stores.

21 ‘‘(C) STATE-PROVIDED EQUIPMENT.—

22 ‘‘(i) ELECTRONIC BENEFITS TRANS23 FER CARD SYSTEM.—

24 ‘‘(I) IN GENERAL.—A retail food

25 store that does not have point-of-sale
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1 electronic benefits transfer equipment,

2 and does not intend to obtain point3 of-sale electronic benefits transfer

4 equipment in the near future, shall be

5 provided by a State agency with, or

6 reimbursed for, the costs of purchas7 ing and installing single-function,

8 point-of-sale equipment, and related

9 telephone equipment, which shall be

10 used only for Federal and State as11 sistance programs.

12 ‘‘(II) EQUIPMENT REQUIRE13 MENTS.—Equipment provided under

14 this subparagraph shall be capable of

15 interstate operations and based on

16 generally accepted commercial elec17 tronic benefits transfer operating

18 principles that permit interstate law

19 enforcement monitoring and shall be

20 capable of providing a recipient with

21 access to multiple Federal and State

22 benefit programs.

23 ‘‘(ii) PAPER AND OTHER ALTER24 NATIVE BENEFIT SYSTEMS.—A special25 need retail store that does not obtain, and
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1 does not intend to obtain in the near fu2 ture, point-of-sale paper-based or other al3 ternative benefits transfer equipment shall

4 be provided by the State agency or com5 pensated for the costs of purchasing such

6 equipment which shall be used only for

7 Federal and State assistance programs.

8 Such paper systems includes using the

9 electronic benefit transfer card to make an

10 impression on a point-of-sale paper docu11 ment.

12 ‘‘(iii) RETURN OF ELECTRONIC BENE13 FITS TRANSFER EQUIPMENT.—A retail

14 food store may at any time return the

15 equipment to the State and obtain equip16 ment with funds of the store.

17 ‘‘(iv) COST TO STORES.—The cost of

18 documents or systems that may be re19 quired pursuant to this paragraph may not

20 be imposed upon a retail food store partici21 pating in the program.

22 ‘‘(D) CHARGING FOR ELECTRONIC BENE23 FITS TRANSFER CARD REPLACEMENT.—

24 ‘‘(i) IN GENERAL.—Under this para25 graph, the Secretary shall reimburse State
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1 agencies for the costs of purchasing and is2 suing electronic benefits transfer cards;

3 and

4 ‘‘(ii) REPLACEMENT CARDS.—Under

5 this paragraph, the Secretary may charge

6 a household through allotment reduction or

7 otherwise for the cost of replacing a lost or

8 stolen electronic benefit transfer card, un9 less the card was stolen by force or threat

10 of force.

11 ‘‘(E) TRANSITION FUND.—At the begin12 ning of each fiscal year during the 10-year pe13 riod beginning with the first full fiscal year fol14 lowing the date of enactment of this paragraph,

15 the Secretary shall place the amount of the

16 funds generated by the transaction fees pro17 vided in subparagraph (F) into an account, to

18 be known as the Transition Conversion Ac19 count, to remain available until expended.

20 ‘‘(F) TRANSACTION FEE.—

21 (i) During the 10-year period begin22 ning on the date of enactment of this para23 graph, the Secretary shall, to the extent

24 necessary to not increase costs to the Sec25 retary under this paragraph, impose a
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1 transaction fee of not more than 2 cents

2 for each transaction made at a retail food

3 store using an electronic benefits transfer

4 card authorized by this paragraph, to be

5 taken from the benefits of the household

6 using the card, except that no household

7 shall be assessed more than 16 cents under

8 this paragraph per month. The Secretary

9 may reduce the fee on a household receiv10 ing the maximum benefits available under

11 the program.

12 ‘‘(ii) FEES LIMITED TO USES.—A fee

13 imposed under clause (i) shall be in an

14 amount not greater than is necessary to

15 carry out the uses of the Transition Con16 version Account in subparagraph (G).

17 ‘‘(G)(i) DUTY OF SECRETARY.—Out of

18 funds in the Transition Conversion Account,

19 and, only to the extent necessary, out of funds

20 provided to carry out this Act, the Secretary

21 shall provide funds to provide transition assist22 ance and funds to States participating under

23 this paragraph for—

24 ‘‘(I) the reasonable cost of purchasing

25 and installing, or for the cost of reimburs-
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1 ing a retail food store for the cost of pur2 chasing and installing single-function,

3 point-of-sale equipment described in sub4 paragraph (C), to be used only for Federal

5 and State assistance programs;

6 ‘‘(II) the reasonable start-up cost of

7 purchasing and installing telephone equip8 ment or connections for single-function,

9 point-of-sale equipment, to be used only for

10 Federal and State assistance programs;

11 and

12 ‘‘(III) assistance to modify an elec13 tronic benefits transfer system imple14 mented by a State prior to the date of en15 actment of this paragraph to the extent

16 necessary to operate statewide or multi17 statewide under this paragraph.

18 ‘‘(ii) USE OF ACCOUNT.—The Secretary

19 shall use funds in the Transition Conversion

20 Account in implementing this paragraph and

21 to—

22 ‘‘(I) provide start-up training for

23 State agencies, employees and recipients

24 based on a plan approved by Secretary;
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•HR 2915 IH

1 ‘‘(II) pay for other one-time reason2 able costs of converting to an electronic

3 benefits transfer system that is capable of

4 interstate functions and is capable of being

5 monitored by law enforcement agencies;

6 ‘‘(III) pay for liabilities assumed by

7 the Secretary under subparagraph (I);

8 ‘‘(IV) pay other liabilities related to

9 the electronic benefits transfer system es10 tablished under this paragraph that are in11 curred by the Secretary; and

12 ‘‘(V) expand and implement a nation13 wide program to monitor compliance with

14 program rules related to retail food stores

15 and the electronic delivery of benefits

16 under this Act.

17 ‘‘(H) COMPETITIVE BIDDING.—In purchas18 ing point-of-sale equipment described in sub19 paragraph (C), electronic benefits transfer

20 cards, and telephone equipment or connections

21 referred to in subparagraph (G), States shall

22 use competitive bidding systems to ensure that

23 they obtain the lowest prices for the equipment

24 and cards that meet specifications. States shall

25 not enter into purchase agreements which con-
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•HR 2915 IH

1 dition the purchase of additional services or

2 equipment from suppliers of equipment or cards

3 under this paragraph. The Secretary shall mon4 itor the sale prices for such equipment and

5 cards and the Inspector General shall inves6 tigate possible wrongdoing or fraud as appro7 priate.

8 ‘‘(I) LIABILITY OR REPLACEMENT BENE9 FITS FOR UNAUTHORIZED USE OF EBT

10 CARDS.—

11 ‘‘(i) IN GENERAL.—The Secretary

12 shall require State agencies that choose to

13 implement an electronic benefits transfer

14 system under this paragraph to advise any

15 household participating in the food stamp

16 program how to promptly report a lost, de17 stroyed, damaged, improperly manufac18 tured, dysfunctional, or stolen electronic

19 benefits transfer card.

20 ‘‘(ii) REGULATIONS.—Under this

21 paragraph, the Secretary shall issue regu22 lations providing that—

23 ‘‘(I) a household shall not receive

24 any replacement for benefits lost due
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1 to the unauthorized use of an elec2 tronic benefits transfer card; and

3 ‘‘(II) a household shall not be lia4 ble for any amounts in excess of the

5 benefits available to the household at

6 the time of the unauthorized use.

7 ‘‘(iii) SPECIAL LOSSES.—Notwith8 standing clause (ii), under this paragraph

9 a household shall receive a replacement for

10 any benefits lost if the loss was caused

11 by—

12 ‘‘(I) force or the threat of force;

13 ‘‘(II) unauthorized use of the

14 card after the State agency receives

15 notice that the card was lost or stolen;

16 or

17 ‘‘(III) a system error or malfunc18 tion, fraud, abuse, negligence, or mis19 take by the service provider, the card

20 issuing agency, or the State agency,

21 or an inaccurate execution of a trans22 action by the service provider:

23 Provided, That with respect to losses described in

24 subclause (II) and (III), the State shall reimburse

25 the Secretary. Nothing in subclause (III) shall pre-
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1 vent a State from obtaining reimbursement from the

2 service provider or the card issuing agency for sys3 tem error or malfunction, fraud, abuse, negligence,

4 or mistake by such service provider or card issuing

5 agency.

6 ‘‘(J) ELIMINATION OF FOOD STAMP COU7 PONS.—

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clauses (ii) and (iii) and notwith10 standing any other provision of this Act,

11 effective beginning on the date 3 years

12 after the date a chief executive officer of a

13 State informs the Secretary that the State

14 intends to implement an electronic benefits

15 transfer system authorized by this para16 graph, the Secretary shall not provide any

17 food stamp coupons to the State.

18 ‘‘(ii) EXCEPTIONS.—

19 ‘‘(I) EXTENSION.—Clause (i)

20 shall not apply to the extent that the

21 chief executive officer of a State de22 termines that an extension is nec23 essary and so notifies the Secretary in

24 writing, except that the extension

25 shall not extend beyond 5 years after
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1 the date that a chief executive officer

2 of a State informs the secretary of the

3 decision to implement an electronic

4 benefits transfer system under this

5 paragraph.

6 ‘‘(II) WAIVER.—In addition to

7 any extension under subclause (I), the

8 Secretary may grant a waiver to a

9 State to phase-in or delay, implemen10 tation of electronic benefits transfer

11 for good cause shown by the State,

12 except that the waiver shall not ex13 tend for more than 6 months.

14 ‘‘(iii) DISASTER RELIEF.—The Sec15 retary may provide food stamp coupons for

16 disaster relief under section 5(h).

17 ‘‘(K) SPECIAL RULE.—A State agency may

18 require a household to explain the cir19 cumstances regarding each occasion that—

20 ‘‘(i) the household reports a lost or

21 stolen electronic benefits transfer card; and

22 ‘‘(ii) the card was used for an unau23 thorized transaction.

24 In the appropriate circumstances, the State

25 agency shall investigate and ensure that appro-
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1 priate cases are acted upon either through ad2 ministrative disqualification or referral to

3 courts of appropriate jurisdiction, or referral

4 for prosecution.

5 ‘‘(L) ESTABLISHMENT.—In carrying out

6 this paragraph, the States shall—

7 ‘‘(i) take into account the needs of law

8 enforcement personnel and the need to per9 mit and encourage further technological

10 developments and scientific advances;

11 ‘‘(ii) ensure that security is protected

12 by appropriate means such as requiring

13 that a personal identification number be is14 sued with each electronic benefits transfer

15 card to help protect the integrity of the

16 program;

17 ‘‘(iii) provide for—

18 ‘‘(I) recipient protection regard19 ing privacy, ease of use, and access to

20 and service in retail food stores;

21 ‘‘(II) financial accountability and

22 the capability of the system to handle

23 interstate operations and interstate

24 monitoring by law enforcement agen-
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1 cies including the Inspector General of

2 the Department of Agriculture;

3 ‘‘(III) rules prohibiting store par4 ticipation unless any appropriate

5 equipment necessary to permit house6 holds to purchase food with the bene7 fits issued under the Food Stamp Act

8 of 1977 is operational and reasonably

9 available; and

10 ‘‘(IV) rules providing for mon11 itoring and investigation by an au12 thorized law enforcement agency in13 cluding the Inspector General of the

14 Department of Agriculture.

15 ‘‘(M) ADDITIONAL EMPLOYEES.—The Sec16 retary shall assign additional employees to in17 vestigate and adequately monitor compliance

18 with program rules related to electronic benefits

19 transfer systems and retail food store participa20 tion.

21 ‘‘(N) REQUEST FOR STATEMENTS.—Under

22 this paragraph on the request of a household,

23 the State, through a person issuing benefits to

24 the household, shall provide once per month a

25 statement of benefit transfers and balances for
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1 such household for the month preceding the re2 quest.

3 ‘‘(O) ERRORS.—Under this paragraph:

4 ‘‘(i) IN GENERAL.—States shall design

5 systems to timely resolve disputes over al6 leged errors.

7 ‘‘(ii) CORRECTED ERRORS.—House8 holds able to obtain corrections of errors

9 under this subparagraph shall not be enti10 tled to a fair hearing regarding the re11 solved dispute.

12 ‘‘(P) APPLICABLE LAW.—For purposes of

13 this Act, fraud and related activities related to

14 electronic benefits transfer shall be governed by

15 section 15 of this Act (U.S.C. 2024) and sec16 tion 1029 of title 18, United States Code, in

17 addition to any other applicable law.

18 ‘‘(Q) DEFINITIONS.—For the purpose of

19 this paragraph:

20 ‘‘(i) ELECTRONIC BENEFITS TRANS21 FER CARD SYSTEM.—The term ‘electronic

22 benefits transfer card system’ means a sys23 tem to support transactions conducted with

24 electronic benefits transfer cards, paper, or

25 other alternative benefits transfer systems
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1 approved by the Secretary for the provision

2 of program benefits in accordance with this

3 paragraph.

4 ‘‘(ii) RETAIL FOOD STORE.—The term

5 ‘retail food store’ means a retail food store,

6 a farmer’s market, or a house-to-house

7 trade route authorized to participate in the

8 food stamp program.

9 ‘‘(iii) SPECIAL-NEED RETAIL FOOD

10 STORE.—The term ‘special-need retail food

11 store’ means—

12 ‘‘(I) a retail food store located in

13 a very rural area;

14 ‘‘(II) a retail food store without

15 access to dependable electricity or reg16 ular telephone service; or

17 ‘‘(III) a farmers’ market or

18 house-to-house trade route that is au19 thorized to participate in the food

20 stamp program.

21 ‘‘(R) LEAD ROLE OF INDUSTRY AND

22 STATES.—The Secretary shall consult with the

23 Secretary of the Treasury, the Secretary of

24 Health and Human Services, the Inspector

25 General of the United States Department of
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1 Agriculture, the United States Secret Service,

2 the National Governor’s Association, the Food

3 Marketing Institute, the National Association of

4 Convenience Stores, the American Public Wel5 fare Association, the National Conference of

6 State Legislatures, the American Bankers Asso7 ciation, the financial services community, State

8 agencies, and food advocates to obtain informa9 tion helpful to retail stores, the financial serv10 ices industry, and States in the conversion to

11 electronic benefits transfer, including informa12 tion regarding—

13 ‘‘(i) the degree to which an electronic

14 benefits transfer system could be easily in15 tegrated with commercial networks;

16 ‘‘(ii) the usefulness of appropriate

17 electronic benefits transfer security fea18 tures and local management controls, in19 cluding features in an electronic benefits

20 transfer card to deter counterfeiting of the

21 card;

22 ‘‘(iii) the use of laser scanner tech23 nology with electronic benefits transfer

24 technology so that only eligible food items
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1 can be purchased by food stamp partici2 pants in stores that use scanners;

3 ‘‘(iv) how to maximize technology that

4 uses data available from an electronic ben5 efits transfer system to identify fraud and

6 allow law enforcement personnel to quickly

7 identify or target a suspected or actual

8 program violator;

9 ‘‘(v) means of ensuring the confiden10 tiality of personal information in electronic

11 benefits transfer systems and the applica12 bility of section 552a of title 5, United

13 States Code, to electronic benefits transfer

14 systems;

15 ‘‘(vi) the best approaches for maximiz16 ing the use of then current point-of-sale

17 terminals and systems to reduce costs; and

18 ‘‘(vii) the best approaches for maxi19 mizing the use of electronic benefits trans20 fer systems for multiple Federal and State

21 benefit programs so as to achieve the high22 est cost savings possible through the imple23 mentation of electronic benefits transfer

24 systems.’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 3 of the Food Stamp Act of 1977

2 (42 U.S.C. 2012) is amended—

3 (A) in subsection (a), by striking ‘‘cou4 pons’’ and inserting ‘‘benefits’’;

5 (B) in the first sentence of subsection (c),

6 by striking ‘‘authorization cards’’ and inserting

7 ‘‘allotments’’;

8 (C) in subsection (d), by striking ‘‘the pro9 visions of this Act’’ and inserting ‘‘sections 5(h)

10 and 7’’;

11 (D) in subsection (e)—

12 (i) by striking ‘‘Coupon issuer’’ and

13 inserting ‘‘Benefit issuer’’; and

14 (ii) by striking ‘‘coupons’’ and insert15 ing ‘‘benefits’’;

16 (E) in the last sentence of subsection (i),

17 by striking ‘‘coupons’’ and inserting ‘‘allot18 ments’’; and

19 (F) by adding at the end the following new

20 subsection:

21 ‘‘(v) ‘Electronic benefits transfer card’

22 means a card issued to a household partici23 pating in the program that is used to pur24 chase food.
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1 (2) Section 4(a) of such Act (7 U.S.C. 2013(a))

2 is amended—

3 (A) in the first sentence by inserting ‘‘and

4 to funds made available under section 7’’ after

5 ‘‘this Act’’.

6 (B) in the first and second sentences, by

7 striking ‘‘coupons’’ each place it appears and

8 inserting ‘‘electronic benefits transfer cards or

9 coupons’’; and

10 (C) by striking the third sentence and in11 serting the following new sentence: ‘‘The Sec12 retary, through the facilities of the Treasury of

13 the United States, shall reimburse the stores

14 for food purchases made with electronic benefits

15 transfer cards or coupons provided under this

16 Act.’’.

17 (3) The first sentence of section 6(b)(1) of such

18 Act (7 U.S.C. 2015(b)(1)) is amended—

19 (A) by striking ‘‘coupons or authorization

20 cards’’ and inserting ‘‘electronic benefits trans21 fer cards, coupons, or authorization cards’’; and

22 (B) in clauses (ii) and (iii), by inserting

23 ‘‘or electronic benefits transfer cards’’ after

24 ‘‘coupons’’ each place it appears.
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1 (4) Section 7 of such Act (7 U.S.C. 2016) is

2 amended—

3 (A) by striking the section heading and in4 serting the following new section heading: ‘‘IS5 SUANCE AND USE OF ELECTRONIC BENE6 FITS TRANSFER CARDS OR COUPONS’’;

7 (B) in subsection (a), by striking ‘‘Cou8 pons’’ and all that follows through ‘‘necessary,

9 and’’ and inserting ‘‘Electronic benefits transfer

10 cards or coupons’’;

11 (C) in subsection (b), by striking ‘‘Cou12 pons’’ and inserting ‘‘Electronic benefits trans13 fer cards or coupons’’;

14 (D) in subsection (e), by striking ‘‘coupons

15 to coupon issuers’’ and replace with ‘‘benefits to

16 benefits issuers’’; and by striking ‘‘by coupon

17 issuers’’ and inserting ‘‘by benefits issuers’’.

18 (E) in subsection (f)—

19 (i) by striking ‘‘issuance of coupons’’

20 and inserting ‘‘issuance of electronic bene21 fits transfer cards or coupons’’;

22 (ii) by striking ‘‘coupon issuer’’ and

23 inserting ‘‘electronic benefits transfer or

24 coupon issuer’’; and
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1 (iii) by striking ‘‘coupons and allot2 ments’’ and inserting ‘‘electronic benefits

3 transfer cards, coupons, and allotments’’;

4 (F) by deleting ‘‘(1) The’’ in subsections

5 (g) and (h) and inserting the following: ‘‘(1)

6 Except with respect to electronic benefit trans7 fer care systems operated under section 7(j)(5),

8 the’’; and

9 (G) by striking subparagraph (i)(2)(A);

10 and by relettering (B) through (H) as (A)

11 through (G).

12 (5) Section 8(b) of such Act (7 U.S.C. 2017(b))

13 is amended by striking ‘‘coupons’’ and inserting

14 ‘‘electronic benefits transfer cards or coupons’’.

15 (6) Section 9 of such Act (7 U.S.C. 2018) is

16 amended—

17 (A) in subsections (a) and (b), by striking

18 ‘‘coupons’’ each place it appears and inserting

19 ‘‘coupons, or accept electronic benefits transfer

20 cards,’’; and

21 (B) in subsection (a)(1)(B), by striking

22 ‘‘coupon business’’ and inserting ‘‘electronic

23 benefits transfer cards and coupon business’’.

24 (7) Section 10 of such Act (7 U.S.C. 2019) is

25 amended—
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1 (A) by striking the section heading and in2 serting the following: ‘‘REDEMPTION OF COU3 PONS OR ELECTRONIC BENEFITS TRANS4 FER CARDS’’; and

5 (B) in the first sentence—

6 (i) by inserting after ‘‘provide for’’ the

7 following: ‘‘reimbursing stores for program

8 benefits provided and for’’;

9 (ii) by inserting after ‘‘food coupons’’

10 the following: ‘‘or use their members’ elec11 tronic benefits transfer cards’’; and

12 (iii) by striking the period at the end

13 and inserting the following: ‘‘, unless the

14 center, organization, institution, shelter,

15 group living arrangement, or establishment

16 is equipped with a point-of-sale device for

17 the purpose of participating in the elec18 tronic benefits transfer system.’’.

19 (8) Section 11 of such Act (7 U.S.C. 2020) is

20 amended—

21 (A) in the first sentence of subsection (a),

22 by striking ‘‘coupons’’ and inserting ‘‘electronic

23 benefits transfer cards or coupons,’’;

24 (B) in subsection (e)—

25 (i) in paragraph (2)—
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1 (I) by striking ‘‘a coupon allot2 ment’’ and inserting ‘‘an allotment’’;

3 and

4 (II) by striking ‘‘issuing cou5 pons’’ and inserting ‘‘issuing elec6 tronic benefits transfer cards or cou7 pons’’;

8 (ii) in paragraph (7), by striking

9 ‘‘coupon issuance’’ and inserting ‘‘elec10 tronic benefits transfer card or coupon is11 suance’’;

12 (iii) in paragraph (8)(C), by striking

13 ‘‘coupons’’ and inserting ‘‘benefits’’;

14 (iv) in paragraph (9), by striking

15 ‘‘coupons’’ each place it appears and in16 serting ‘‘electronic benefits transfer cards

17 or coupons’’;

18 (v) in paragraph (11), by striking ‘‘in

19 the form of coupons’’;

20 (vi) in paragraph (16), by striking

21 ‘‘coupons’’ and inserting ‘‘electronic bene22 fits transfer card or coupons’’;

23 (vii) in paragraph (17), by striking

24 ‘‘food stamps’’ and replacing with ‘‘bene25 fits’’;
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1 (viii) in paragraph (21), by striking

2 ‘‘coupons’’ and inserting ‘‘electronic bene3 fits transfer cards or coupons’’;

4 (ix) in paragraph (24), by striking

5 ‘‘coupons’’ and inserting ‘‘benefits’’; and

6 (x) in paragraph (25), by striking

7 ‘‘coupons’’ each place it appears and in8 serting ‘‘electronic benefits transfer cards

9 or coupons’’; and

10 (C) in subsection (h), by striking ‘‘face

11 value of any coupon or coupons’’ and inserting

12 ‘‘value of any benefits’’; and

13 (D) in subsection (n)—

14 (i) by striking ‘‘both coupons’’ each

15 place it appears and inserting ‘‘benefits

16 under this Act’’; and

17 (ii) by striking ‘‘of coupons’’ and in18 serting ‘‘of benefits’’.

19 (9) Section 12 of such Act (7 U.S.C. 2021) is

20 amended—

21 (A) in subsection (b)(3), by striking ‘‘cou22 pons’’ each place it appears and inserting ‘‘elec23 tronic benefits transfer cards or coupons’’;

24 (B) in subsection (d)—

25 (i) in the first sentence—
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1 (I) by inserting after ‘‘redeem

2 coupons’’ the following: ‘‘and to ac3 cept electronic benefits transfer

4 cards’’; and

5 (II) by striking ‘‘value of cou6 pons’’ and inserting ‘‘value of benefits

7 and coupons’’; and

8 (ii) in the third sentence, by striking

9 ‘‘coupons’’ each place it appears and in10 serting ‘‘benefits’’; and

11 (C) in the first sentence of subsection (f)—

12 (i) by inserting after ‘‘to accept and

13 redeem food coupons’’ the following: ‘‘elec14 tronic benefits transfer cards, or to accept

15 and redeem food coupons,’’; and

16 (ii) by inserting before the period at

17 the end the following: ‘‘or program bene18 fits’’.

19 (10) Section 13 of such Act (7 U.S.C. 2022) is

20 amended by striking ‘‘coupons’’ each place it ap21 pears and inserting ‘‘benefits’’.

22 (11) Section 15 of such Act (7 U.S.C. 2024) is

23 amended—

24 (A) in subsection (a), by striking ‘‘issuance

25 or presentment for redemption’’ and inserting
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1 ‘‘issuance, presentment for redemption, or use

2 of electronic benefits transfer cards or’’;

3 (B) in the first sentence of subsection

4 (b)(1)—

5 (i) by inserting after ‘‘coupons, au6 thorization cards,’’ each place it appears

7 the following: ‘‘electronic benefits transfer

8 cards,’’; and

9 (ii) by striking ‘‘coupons or authoriza10 tion cards’’ each place it appears and in11 serting the following: ‘‘coupons, authoriza12 tion cards, or electronic benefits transfer

13 cards’’;

14 (C) in the first sentence of subsection

15 (c)—

16 (i) by striking ‘‘coupons’’ and insert17 ing ‘‘a coupon or electronic benefits trans18 fer card’’; and

19 (ii) strike ‘‘such coupons are’’ and in20 serting ‘‘the payment or redemption is’’;

21 (D) in subsection (d) striking ‘‘coupons’’

22 and replacing with ‘‘Benefits’’;

23 (E) in subsection (e) after ‘‘coupons’’ in24 serting ‘‘or electronic benefits transfer cards’’;
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1 (F) in subsection (f) after ‘‘coupon’’ insert2 ing ‘‘or electronic benefits transfer card’’; and

3 (G) in the first sentence of subsection (g),

4 by inserting after ‘‘coupons, authorization

5 cards,’’ the following: ‘‘electronic benefits trans6 fer cards,’’.

7 (12) Section 16 (7 U.S.C. 2025) is amended—

8 (A) in subsection (a)—

9 (i) in paragraph (2) after ‘‘coupons’’

10 by inserting ‘‘electronic benefits transfer

11 cards’’;

12 (ii) in paragraph (3) by inserting after

13 ‘‘households’’ the following: ‘‘, including

14 the cost of providing equipment necessary

15 for retail food stores to participate in an

16 electronic benefits transfer system’’;

17 (B) by deleting subsection (d);

18 (C) by redesignating subsections (e)

19 through (j) as subsections (d) through (i), re20 spectively;

21 (D) in subsection (g)(5) (as redesignated

22 by paragraph (3))—

23 (i) in subparagraph (A), by striking

24 ‘‘(A)’’; and

25 (ii) by striking subparagraph (B);
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1 (E) in subsection (h) (as redesignated by

2 paragraph (3)), by striking paragraph (3); and

3 (F) by striking subsection (i) (as redesig4 nated by paragraph (3)).

5 (13) Section 17 of such Act (7 U.S.C. 2026) is

6 amended—

7 (A) in the last sentence of subsection

8 (a)(2), by striking ‘‘coupon’’ and inserting

9 ‘‘benefit’’;

10 (B) by deleting the last sentence of para11 graph (b)(2);

12 (C) by deleting the last sentence of sub13 section (c);

14 (D) in subsection (d)(1)(B), by striking

15 ‘‘coupons’’ each place it appears and inserting

16 ‘‘benefits’’;

17 (E) by deleting the last sentence of sub18 section (e);

19 (F) by striking subsection (f); and

20 (G) by redesignating subsections (g)

21 through (k) as subsections (f) through (j), re22 spectively.

23 (14) Section 21 of such Act (7 U.S.C. 2030) is

24 amended—
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1 (A) by striking ‘‘coupons’’ each place it ap2 pears (other than in subsections (b)(2)(A)(ii)

3 and (d)) and inserting ‘‘benefits’’;

4 (B) in subsection (b)(2)(A)(ii), by striking

5 ‘‘coupons’’ and inserting ‘‘electronic benefits

6 transfer cards or coupons’’; and

7 (C) in subsection (d)—

8 (i) in paragraph (2), by striking

9 ‘‘Coupons’’ and inserting ‘‘Benefits’’; and

10 (ii) in paragraph (3), by striking ‘‘in

11 food coupons’’.

12 (15) Section 22 of such Act (7 U.S.C. 2031) is

13 amended—

14 (A) in subsection (b)—

15 (i) in paragraph (3)(D)—

16 (I) in clause (ii), by striking

17 ‘‘coupons’’ and inserting ‘‘benefits’’;

18 and

19 (II) in clause (iii), by striking

20 ‘‘coupons’’ and inserting ‘‘electronic

21 benefits transfer benefits’’;

22 (ii) in paragraph (9), by striking

23 ‘‘coupons’’ and inserting ‘‘benefits’’;

24 (iii) in paragraph (10)(B)—
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1 (I) in the second sentence of

2 clause (I), by striking ‘‘Food cou3 pons’’ and inserting ‘‘Program bene4 fits’’; and

5 (II) in clause (ii)—

6 (aa) in the second sentence,

7 by striking ‘‘Food coupons’’ and

8 inserting ‘‘Benefits’’; and

9 (bb) in the third sentence,

10 by striking ‘‘food coupons’’ each

11 place it appears and inserting

12 ‘‘benefits’’;

13 (B) in subsection (d), by striking ‘‘cou14 pons’’ each place it appears and inserting ‘‘ben15 efits’’;

16 (C) in subsection (g)(l)(A), by striking

17 ‘‘coupon’’; and

18 (D) in subsection (h), by striking ‘‘food

19 coupons’’ and inserting ‘‘benefits’’.

20 (16) Section 1956(c)(7)(D) of title 18, United

21 States Code, is amended by inserting ‘‘electronic

22 benefits transfer cards or’’ before ‘‘coupons having’’.
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1 SEC. 321. MINIMUM BENEFIT.

2 The proviso in section 8(a) of the Food Stamp Act

3 of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and

4 shall be adjusted’’ and all that follows through ‘‘$5’’.

5 SEC. 322. BENEFITS ON RECERTIFICATION.

6 Section 8(c)(2)(B) of the Food Stamp Act of 1977

7 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

8 than one month’’.

9 SEC. 323. OPTIONAL COMBINED ALLOTMENT FOR EXPE10 DITED HOUSEHOLDS.

11 Section 8(c) of the Food Stamp Act of 1977 (7

12 U.S.C. 2017(c)) is amended by striking paragraph (3) and

13 inserting the following:

14 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR

15 EXPEDITED HOUSEHOLDS.—A State agency may

16 provide to an eligible household applying after the

17 15th day of a month, in lieu of the initial allotment

18 of the household and the regular allotment of the

19 household for the following month, an allotment that

20 is the aggregate of the initial allotment and the first

21 regular allotment, which shall be provided in accord22 ance with section 11(e)(3) in the case of a household

23 that is not entitled to expedited service or in accord24 ance with paragraphs (3) and (9) of section 11(e) in

25 the case of a household that is entitled to expedited

26 service.’’.
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1 SEC. 324. FAILURE TO COMPLY WITH OTHER WELFARE AND

2 PUBLIC ASSISTANCE PROGRAMS.

3 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

4 2017) is amended by striking subsection (d) and inserting

5 the following:

6 ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENE7 FITS.—

8 ‘‘(1) IN GENERAL.—If the benefits of a house9 hold are reduced under a Federal, State, or local law

10 relating to a welfare or public assistance program

11 for the failure to perform an action required under

12 the law or program, for the duration of the reduc13 tion—

14 ‘‘(A) the household may not receive an in15 creased allotment as the result of a decrease in

16 the income of the household to the extent that

17 the decrease is the result of the reduction; and

18 ‘‘(B) the State agency may reduce the al19 lotment of the household by not more than 25

20 percent.

21 ‘‘(2) OPTIONAL METHOD.—In carrying out

22 paragraph (1), a State agency may consider, for the

23 duration of a reduction referred to under paragraph

24 (1), the benefits of the household under a welfare or

25 public assistance program before the reduction as in26 come of the household after the reduction.
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1 ‘‘(3) RULES AND PROCEDURES.—If the allot2 ment of a household is reduced under this subsection

3 for a failure to perform an action required under

4 part A of title IV of the Social Security Act (42

5 U.S.C. 601 et seq.), the State agency may use the

6 rules and procedures that apply under part A of title

7 IV of the Act to reduce the allotment under the food

8 stamp program.’’.

9 SEC. 325. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN IN10 STITUTIONS.

11 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

12 2017) is amended by adding at the end the following:

13 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

14 INSTITUTIONS.—

15 ‘‘(1) IN GENERAL.—In the case of an individual

16 who resides in a homeless shelter, or in an institu17 tion or center for the purpose of a drug or alcoholic

18 treatment program, described in the last sentence of

19 section 3(i), a State agency may provide an allot20 ment for the individual to—

21 ‘‘(A) the institution as an authorized rep22 resentative for the individual for a period that

23 is less than 1 month; and

24 ‘‘(B) the individual, if the individual leaves

25 the institution.
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1 ‘‘(2) DIRECT PAYMENT.—A State agency may

2 require an individual referred to in paragraph (1) to

3 designate the shelter, institution, or center in which

4 the individual resides as the authorized representa5 tive of the individual for the purpose of receiving an

6 allotment.’’.

7 SEC. 326. OPERATION OF FOOD STAMP OFFICES.

8 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

9 2020) is amended—

10 (1) in subsection (e)—

11 (A) by striking paragraph (2) and insert12 ing the following:

13 ‘‘(2)(A) that the State agency shall establish

14 procedures governing the operation of food stamp of15 fices that the State agency determines best serve

16 households in the State, including households with

17 special needs, such as households with elderly or dis18 abled members, households in rural areas with low19 income members, homeless individuals, households

20 residing on reservations, and households in which a

21 substantial number of members speak a language

22 other than English.

23 ‘‘(B) In carrying out subparagraph (A), a State

24 agency—
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1 ‘‘(i) shall provide timely, accurate, and fair

2 service to applicants for, and participants in,

3 the food stamp program;

4 ‘‘(ii) shall permit an applicant household to

5 apply to participate in the program on the same

6 day that the household first contacts a food

7 stamp office in person during office hours;

8 ‘‘(iii) shall consider an application filed on

9 the date the applicant submits an application

10 that contains the name, address, and signature

11 of the applicant; and

12 ‘‘(iv) may establish operating procedures

13 that vary for local food stamp offices to reflect

14 regional and local differences within the

15 State;’’;

16 (B) in paragraph (3) (as amended by sec17 tion 309(b))—

18 (i) by striking ‘‘shall—’’ and all that

19 follows through ‘‘provide each’’ and insert20 ing ‘‘shall provide each’’; and

21 (ii) by striking ‘‘(B) assist’’ and all

22 that follows through ‘‘representative of the

23 State agency;’’;

24 (C) by striking paragraph (14) and insert25 ing the following:
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1 ‘‘(14) the standards and procedures used by the

2 State agency under section 6(d)(1)(D) to determine

3 whether an individual is eligible to participate under

4 section 6(d)(1)(A);’’; and

5 (D) by striking paragraph (25) and insert6 ing the following:

7 ‘‘(25) a description of the work supplementation

8 or support program, if any, carried out by the State

9 agency under section 16(b);’’; and

10 (2) in subsection (i)—

11 (A) by striking ‘‘(i) Notwithstanding’’ and

12 all that follows through ‘‘(2)’’ and inserting the

13 following:

14 ‘‘(i) APPLICATION AND DENIAL PROCEDURES.—

15 ‘‘(1) APPLICATION PROCEDURES.—Notwith16 standing any other provision of law,’’; and

17 (B) by striking ‘‘; (3) households’’ and all

18 that follows through ‘‘title IV of the Social Se19 curity Act. No’’ and inserting a period and the

20 following:

21 ‘‘(2) DENIAL AND TERMINATION.—Other than

22 in a case of disqualification as a penalty for failure

23 to comply with a public assistance program rule or

24 regulation, no’’.
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1 SEC. 327. STATE EMPLOYEE AND TRAINING STANDARDS.

2 Section 11(e)(6) of the Food Stamp Act of 1977 (7

3 U.S.C. 2020(e)(6)) is amended—

4 (1) by striking ‘‘(A)’’; and

5 (2) by striking subparagraphs (B) through (E).

6 SEC. 328. EXCHANGE OF LAW ENFORCEMENT INFORMA7 TION.

8 Section 11(e) of the Food Stamp Act of 1977 (7

9 U.S.C. 2020(e)) (as amended by section 315(b)) is further

10 amended—

11 (1) in paragraph (8)—

12 (A) by striking ‘‘that (A) such’’ and insert13 ing the following: ‘‘that—

14 ‘‘(A) the’’;

15 (B) by striking ‘‘law, (B) notwithstanding’’

16 and inserting the following: ‘‘law;

17 ‘‘(B) notwithstanding’’;

18 (C) by striking ‘‘Act, and (C) such’’ and

19 inserting the following: ‘‘Act;

20 ‘‘(C) the’’; and

21 (D) by adding at the end the following:

22 ‘‘(D) notwithstanding any other provision

23 of law, the address, social security number, and,

24 when available, photograph of any member of a

25 household shall be made available, on request,

26 to any Federal, State, or local law enforcement
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1 officer if the officer furnishes the State agency

2 with the name of the member and notifies the

3 agency that—

4 ‘‘(i) the member—

5 ‘‘(I) is fleeing to avoid prosecu6 tion, or custody or confinement after

7 conviction, for a crime (or attempt to

8 commit a crime) that, under the law

9 of the place the member is fleeing, is

10 a felony (or, in the case of New Jer11 sey, a high misdemeanor), or is violat12 ing a condition of probation or parole

13 imposed under Federal or State law;

14 or

15 ‘‘(II) has information that is nec16 essary for the officer to conduct the

17 official duties of the officer;

18 ‘‘(ii) the location or apprehension of

19 the member is an official duty of the offi20 cer; and

21 ‘‘(iii) the request is being made in the

22 proper exercise of the official duties of the

23 officer; and

24 ‘‘(E) the safeguards shall not prevent com25 pliance with paragraph (27);’’; and
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1 (3) by adding at the end the following:

2 ‘‘(27) that the State agency shall furnish the

3 Immigration and Naturalization Service with the

4 name of, address of, and identifying information on

5 any individual the State agency knows is unlawfully

6 in the United States; and’’.

7 SEC. 329. EXPEDITED COUPON SERVICE.

8 Section 11(e)(9) of the Food Stamp Act of 1977 (7

9 U.S.C. 2020(e)(9)) is amended—

10 (1) in subparagraph (A)—

11 (A) by striking ‘‘five days’’ and inserting

12 ‘‘7 business days’’; and

13 (B) by inserting ‘‘and’’ at the end;

14 (2) by striking subparagraphs (B) and (C);

15 (3) by redesignating subparagraph (D) as sub16 paragraph (B); and

17 (4) in subparagraph (B) (as redesignated by

18 paragraph (3)), by striking ‘‘, (B), or (C)’’.

19 SEC. 330. FAIR HEARINGS.

20 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

21 2020) is amended by adding at the end the following:

22 ‘‘(p) WITHDRAWING FAIR HEARING REQUESTS.—A

23 household may withdraw, orally or in writing, a request

24 by the household for a fair hearing under subsection

25 (e)(10). If the withdrawal request is an oral request, the
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1 State agency shall provide a written notice to the house2 hold confirming the request and providing the household

3 with an opportunity to request a hearing.’’.

4 SEC. 331. INCOME AND ELIGIBILITY VERIFICATION SYS5 TEM.

6 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

7 2020) (as amended by section 330) is further amended

8 by adding at the end the following:

9 ‘‘(q) STATE VERIFICATION OPTION.—Notwithstand10 ing any other provision of law, a State agency shall not

11 be required to use an income and eligibility verification

12 system established under section 1137 of the Social Secu13 rity Act (42 U.S.C. 1320b–7).’’.

14 SEC. 332. COLLECTION OF OVERISSUANCES.

15 (a) IN GENERAL.—Section 13 of the Food Stamp Act

16 of 1977 (7 U.S.C. 2022) is amended—

17 (1) by striking subsection (b) and inserting the

18 following:

19 ‘‘(b) COLLECTION OF OVERISSUANCES.—

20 ‘‘(1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, a State agency shall collect

22 any overissuance of coupons issued to a household

23 by—

24 ‘‘(A) reducing the allotment of the house25 hold;
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1 ‘‘(B) withholding unemployment compensa2 tion from a member of the household under

3 subsection (c);

4 ‘‘(C) recovering from Federal pay or a

5 Federal income tax refund under subsection

6 (d); or

7 ‘‘(D) any other means.

8 ‘‘(2) COST EFFECTIVENESS.—Paragraph (1)

9 shall not apply if the State agency demonstrates to

10 the satisfaction of the Secretary that all of the

11 means referred to in paragraph (1) are not cost ef12 fective.

13 ‘‘(3) HARDSHIPS.—A State agency may not use

14 an allotment reduction under paragraph (1)(A) as a

15 means of collecting an overissuance from a house16 hold if the allotment reduction would cause a hard17 ship on the household, as determined by the State

18 agency.

19 ‘‘(4) MAXIMUM REDUCTION ABSENT FRAUD.—

20 If a household received an overissuance of coupons

21 without any member of the household being found

22 ineligible to participate in the program under section

23 6(b)(1) and a State agency elects to reduce the allot24 ment of the household under paragraph (1)(A), the

25 State agency shall reduce the monthly allotment of
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1 the household under paragraph (1)(A) by the great2 er of—

3 ‘‘(A) 10 percent of the monthly allotment

4 of the household; or

5 ‘‘(B) $10.

6 ‘‘(5) PROCEDURES.—A State agency shall col7 lect an overissuance of coupons issued to a house8 hold under paragraph (1) in accordance with re9 quirements established by the State agency for pro10 viding notice, electing a means of payment, and es11 tablishing a time schedule for payment.’’; and

12 (2) in subsection (d)—

13 (A) by striking ‘‘as determined under sub14 section (b) and except for claims arising from

15 an error of the State agency,’’ and inserting

16 ‘‘, as determined under subsection (b)(1),’’; and

17 (B) by inserting before the period at the

18 end the following: ‘‘or a Federal income tax re19 fund as authorized by section 3720A of title 31,

20 United States Code’’.

21 (b) CONFORMING AMENDMENT.—Section 11(e)(8) of

22 the Act (7 U.S.C. 2020(e)(8)) is amended—

23 (1) by striking ‘‘and excluding claims’’ and all

24 that follows through ‘‘such section’’; and
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1 (2) by inserting before the semicolon at the end

2 the following: ‘‘or a Federal income tax refund as

3 authorized by section 3720A of title 31, United

4 States Code’’.

5 SEC. 333. TERMINATION OF FEDERAL MATCH FOR OP6 TIONAL INFORMATION ACTIVITIES.

7 (a) IN GENERAL.—Section 16(a) of the Food Stamp

8 Act of 1977 (7 U.S.C. 2025(a)) is amended—

9 (1) by striking paragraph (4); and

10 (2) by redesignating paragraphs (5) through

11 (8) as paragraphs (4) through (7), respectively.

12 (b) CONFORMING AMENDMENT.—Section 16(g) of

13 the Act (7 U.S.C. 2025(g)) is amended by striking ‘‘an

14 amount equal to’’ and all that follows through ‘‘1991, of’’

15 and inserting ‘‘the amount provided under subsection

16 (a)(5) for’’.

17 SEC. 334. STANDARDS FOR ADMINISTRATION.

18 (a) IN GENERAL.—Section 16 of the Food Stamp Act

19 of 1977 (7 U.S.C. 2025) is amended by striking sub20 section (b).

21 (b) CONFORMING AMENDMENTS.—

22 (1) The first sentence of section 11(g) of the

23 Act (7 U.S.C. 2020(g)) is amended by striking ‘‘the

24 Secretary’s standards for the efficient and effective
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1 administration of the program established under sec2 tion 16(b)(1) or’’.

3 (2) Section 16(c)(1)(B) of the Act (7 U.S.C.

4 2025(c)(1)(B)) is amended by striking ‘‘pursuant to

5 subsection (b)’’.

6 SEC. 335. WORK SUPPLEMENTATION OR SUPPORT PRO7 GRAM.

8 Section 16 of the Food Stamp Act of 1977 (7 U.S.C.

9 2025) (as amended by section 334(a)) is further amended

10 by inserting after subsection (a) the following:

11 ‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO12 GRAM.—

13 ‘‘(1) DEFINITION.—In this subsection, the term

14 ‘work supplementation or support program’ means a

15 program in which, as determined by the Secretary,

16 public assistance (including any benefits provided

17 under a program established by the State and the

18 food stamp program) is provided to an employer to

19 be used for hiring and employing a new employee

20 who is a public assistance recipient.

21 ‘‘(2) PROGRAM.—A State agency may elect to

22 use amounts equal to the allotment that would oth23 erwise be allotted to a household under the food

24 stamp program, but for the operation of this sub25 section, for the purpose of subsidizing or supporting
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1 jobs under a work supplementation or support pro2 gram established by the State.

3 ‘‘(3) PROCEDURE.—If a State agency makes an

4 election under paragraph (2) and identifies each

5 household that participates in the food stamp pro6 gram that contains an individual who is participat7 ing in the work supplementation or support pro8 gram—

9 ‘‘(A) the Secretary shall pay to the State

10 agency an amount equal to the value of the al11 lotment that the household would be eligible to

12 receive but for the operation of this subsection;

13 ‘‘(B) the State agency shall expend the

14 amount paid under subparagraph (A) in accord15 ance with the work supplementation or support

16 program in lieu of providing the allotment that

17 the household would receive but for the oper18 ation of this subsection;

19 ‘‘(C) for purposes of—

20 ‘‘(i) sections 5 and 8(a), the amount

21 received under this subsection shall be ex22 cluded from household income and re23 sources; and

24 ‘‘(ii) section 8(b), the amount received

25 under this subsection shall be considered to
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1 be the value of an allotment provided to

2 the household; and

3 ‘‘(D) the household shall not receive an al4 lotment from the State agency for the period

5 during which the member continues to partici6 pate in the work supplementation or support

7 program.

8 ‘‘(4) OTHER WORK REQUIREMENTS.—No indi9 vidual shall be excused, by reason of the fact that

10 a State has a work supplementation or support pro11 gram, from any work requirement under section

12 6(d), except during the periods in which the individ13 ual is employed under the work supplementation or

14 support program.

15 ‘‘(5) MAXIMUM LENGTH OF PARTICIPATION.—A

16 work supplementation or support program may not

17 allow the participation of any individual for longer

18 than 1 year, unless the Secretary approves a longer

19 period.’’.

20 SEC. 336. WAIVER AUTHORITY.

21 Section 17(b)(1)(A) of the Food Stamp Act of 1977

22 (7 U.S.C. 2026(b)(1)(A)) is amended—

23 (1) by striking ‘‘benefits to eligible households,

24 including’’ and inserting the following: ‘‘benefits to

25 eligible households. The Secretary may waive the re-
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1 quirements of this Act to the extent necessary to

2 conduct a pilot or experimental project, including a

3 project designed to test innovative welfare reform,

4 promote work, and allow conformity with other Fed5 eral, State, and local government assistance pro6 grams, except that a project involving the payment

7 of benefits in the form of cash shall maintain the av8 erage value of allotments for affected households as

9 a group. Pilot or experimental projects may in10 clude’’; and

11 (2) by striking ‘‘The Secretary may waive’’ and

12 all that follows through ‘‘sections 5 and 8 of this

13 Act.’’.

14 SEC. 337. AUTHORIZATION OF PILOT PROJECTS.

15 The last sentence of section 17(b)(1)(A) of the Food

16 Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended

17 by striking ‘‘1995’’ and inserting ‘‘2002’’.

18 SEC. 338. RESPONSE TO WAIVERS.

19 Section 17(b)(1) of the Food Stamp Act of 1977 (7

20 U.S.C. 2026(b)(1)) is amended by adding at the end the

21 following:

22 ‘‘(C) RESPONSE TO WAIVERS.—

23 ‘‘(i) RESPONSE.—Not later than 60

24 days after the date of receiving a request
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1 for a waiver under subparagraph (A), the

2 Secretary shall provide a response that—

3 ‘‘(I) approves the waiver request;

4 ‘‘(II) denies the waiver request

5 and explains any modification needed

6 for approval of the waiver request;

7 ‘‘(III) denies the waiver request

8 and explains the grounds for the de9 nial; or

10 ‘‘(IV) requests clarification of the

11 waiver request.

12 ‘‘(ii) FAILURE TO RESPOND.—If the

13 Secretary does not provide a response

14 under clause (i) not later than 60 days

15 after receiving a request for a waiver, the

16 waiver shall be considered approved.

17 ‘‘(iii) NOTICE OF DENIAL.—On denial

18 of a waiver request under clause (i)(III),

19 the Secretary shall provide a copy of the

20 waiver request and the grounds for the de21 nial to the Committee on Agriculture of

22 the House of Representatives and the

23 Committee on Agriculture, Nutrition, and

24 Forestry of the Senate.’’.
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1 SEC. 339. PRIVATE SECTOR EMPLOYMENT INITIATIVES.

2 Section 17 of the Food Stamp Act of 1977 (7 U.S.C.

3 2026) is amended by adding at the end the following:

4 ‘‘(m) PRIVATE SECTOR EMPLOYMENT INITIA5 TIVES.—

6 ‘‘(1) ELECTION TO PARTICIPATE.—

7 ‘‘(A) IN GENERAL.—Subject to the other

8 provisions of this subsection, a State may elect

9 to carry out a private sector employment initia10 tive program under this subsection.

11 ‘‘(B) REQUIREMENT.—A State shall be eli12 gible to carry out a private sector employment

13 initiative under this subsection only if not less

14 than 50 percent of the households that received

15 food stamp benefits during the summer of 1993

16 also received benefits under a State program

17 funded under part A of title IV of the Social

18 Security Act (42 U.S.C. 601 et seq.) during the

19 summer of 1993.

20 ‘‘(2) PROCEDURE.—A State that has elected to

21 carry out a private sector employment initiative

22 under paragraph (1) may use amounts equal to the

23 food stamp allotments that would otherwise be allot24 ted to a household under the food stamp program,

25 but for the operation of this subsection, to provide

26 cash benefits in lieu of the food stamp allotments to
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1 the household if the household is eligible under para2 graph (3).

3 ‘‘(3) ELIGIBILITY.—A household shall be eligi4 ble to receive cash benefits under paragraph (2) if

5 an adult member of the household—

6 ‘‘(A) has worked in unsubsidized employ7 ment in the private sector for not less than the

8 preceding 90 days;

9 ‘‘(B) has earned not less than $350 per

10 month from the employment referred to in sub11 paragraph (A) for not less than the preceding

12 90 days;

13 ‘‘(C)(i) is eligible to receive benefits under

14 a State program funded under part A of title

15 IV of the Social Security Act (42 U.S.C. 601 et

16 seq.); or

17 ‘‘(ii) was eligible to receive benefits under

18 a State program funded under part A of title

19 IV of the Social Security Act (42 U.S.C. 601 et

20 seq.) at the time the member first received cash

21 benefits under this subsection and is no longer

22 eligible for the State program because of earned

23 income;
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1 ‘‘(D) is continuing to earn not less than

2 $350 per month from the employment referred

3 to in subparagraph (A); and

4 ‘‘(E) elects to receive cash benefits in lieu

5 of food stamp benefits under this subsection.

6 ‘‘(4) EVALUATION.—A State that operates a

7 program under this subsection for 2 years shall pro8 vide to the Secretary a written evaluation of the im9 pact of cash assistance under this subsection. The

10 State agency shall determine the content of the eval11 uation.’’.

12 SEC. 340. REAUTHORIZATION OF APPROPRIATIONS.

13 The first sentence of section 18(a)(1) of the Food

14 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

15 striking ‘‘1995’’ and inserting ‘‘2002’’.

16 SEC. 341. REAUTHORIZATION OF PUERTO RICO NUTRITION

17 ASSISTANCE PROGRAM.

18 The first sentence of section 19(a)(1)(A) of the Food

19 Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended

20 by striking ‘‘$974,000,000’’ and all that follows through

21 ‘‘fiscal year 1995’’ and inserting the following:

22 ‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,

23 $1,182,000,000 for fiscal year 1997, $1,223,000,000 for

24 fiscal year 1998, $1,266,000,000 for fiscal year 1999,

25 $1,310,000,000 for fiscal year 2000, $1,343,000,000 for
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1 fiscal year 2001, and $1,376,000,000 for fiscal year

2 2002’’

3 SEC. 342. SIMPLIFIED FOOD STAMP PROGRAM.

4 (a) IN GENERAL.—The Food Stamp Act of 1977 (7

5 U.S.C. 2011 et seq.) is amended by adding at the end

6 the following:

7 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

8 ‘‘(a) ELECTION.—Subject to subsection (c), a State

9 agency may elect to carry out a Simplified Food Stamp

10 Program (referred to in this section as a ‘Program’) under

11 this section.

12 ‘‘(b) OPERATION OF PROGRAM.—

13 ‘‘(1) IN GENERAL.—If a State agency elects to

14 carry out a Program, within the State or a political

15 subdivision of the State—

16 ‘‘(A) a household in which all members re17 ceive assistance under a State program funded

18 under part A of title IV of the Social Security

19 Act (42 U.S.C. 601 et seq.) shall automatically

20 be eligible to participate in the Program; and

21 ‘‘(B) subject to subsection (e), benefits

22 under the Program shall be determined under

23 rules and procedures established by the State

24 under—
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1 ‘‘(i) a State program funded under

2 part A of title IV of the Social Security

3 Act (42 U.S.C. 601 et seq.);

4 ‘‘(ii) the food stamp program (other

5 than section 25); or

6 ‘‘(iii) a combination of a State pro7 gram funded under part A of title IV of

8 the Social Security Act (42 U.S.C. 601 et

9 seq.) and the food stamp program.

10 ‘‘(2) SHELTER STANDARD.—The State agency

11 may elect to apply 1 shelter standard to a household

12 that receives a housing subsidy and another shelter

13 standard to a household that does not receive the

14 subsidy.

15 ‘‘(c) APPROVAL OF PROGRAM.—

16 ‘‘(1) STATE PLAN.—A State agency may not

17 operate a Program unless the Secretary approves a

18 State plan for the operation of the Program under

19 paragraph (2).

20 ‘‘(2) APPROVAL OF PLAN.—

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

22 approve any State plan to carry out a Program

23 if the Secretary determines that the plan—

24 ‘‘(i) complies with this section; and
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1 ‘‘(ii) would not increase Federal costs

2 incurred under this Act.

3 ‘‘(B) DEFINITION OF FEDERAL COSTS.—In

4 this section, the term ‘Federal costs’ does not

5 include any Federal costs incurred under sec6 tion 17.

7 ‘‘(d) INCREASED FEDERAL COSTS.—

8 ‘‘(1) DETERMINATION.—

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

10 determine whether a Program being carried out

11 by a State agency is increasing Federal costs

12 under this Act.

13 ‘‘(B) NO EXCLUDED HOUSEHOLDS.—In

14 making a determination under subparagraph

15 (A), the Secretary shall not require the State

16 agency to collect or report any information on

17 households not included in the Program.

18 ‘‘(C) ALTERNATIVE ACCOUNTING PERI19 ODS.—The Secretary may approve the request

20 of a State agency to apply alternative account21 ing periods to determine if Federal costs do not

22 exceed the Federal costs had the State agency

23 not elected to carry out the Program.

24 ‘‘(2) NOTIFICATION.—If the Secretary deter25 mines that the Program has increased Federal costs
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1 under this Act for any fiscal year, the Secretary

2 shall notify the State agency not later than January

3 1 of the immediately succeeding fiscal year.

4 ‘‘(3) RETURN OF FUNDS.—

5 ‘‘(A) IN GENERAL.—If the Secretary deter6 mines that the Program has increased Federal

7 costs under this Act for a 2-year period, includ8 ing a fiscal year for which notice was given

9 under paragraph (2) and an immediately suc10 ceeding fiscal year, the State agency shall pay

11 to the Treasury of the United States the

12 amount of the increased costs.

13 ‘‘(B) ENFORCEMENT.—If the State agency

14 does not pay an amount due under subpara15 graph (A) on a date that is not later than 90

16 days after the date of the determination, the

17 Secretary shall reduce amounts otherwise due

18 to the State agency for administrative costs

19 under section 16(a).

20 ‘‘(e) RULES AND PROCEDURES.—

21 ‘‘(1) IN GENERAL.—Except as provided by

22 paragraph (2), a State may apply—

23 ‘‘(A) the rules and procedures established

24 by the State under—
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1 ‘‘(i) the State program funded under

2 part A of title IV of the Social Security

3 Act (42 U.S.C. 601 et seq.); or

4 ‘‘(ii) the food stamp program; or

5 ‘‘(B) the rules and procedures of 1 of the

6 programs to certain matters and the rules and

7 procedures of the other program to all remain8 ing matters.

9 ‘‘(2) STANDARDIZED DEDUCTIONS.—The State

10 may standardize the deductions provided under sec11 tion 5(e). In developing the standardized deduction,

12 the State shall give consideration to the work ex13 penses, dependent care costs, and shelter costs of

14 participating households.

15 ‘‘(3) REQUIREMENTS.—In operating a Pro16 gram, the State shall comply with—

17 ‘‘(A) subsections (a) through (g) of section

18 7;

19 ‘‘(B) section 8(a), except that the income

20 of a household may be determined under a

21 State program funded under part A of title IV

22 of the Social Security Act (42 U.S.C. 601 et

23 seq.);

24 ‘‘(C) subsections (b) and (d) of section 8;
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1 ‘‘(D) subsections (a), (c), (d), and (n) of

2 section 11;

3 ‘‘(E) paragraph (3) of section 11(e), to the

4 extent that the paragraph requires that an eli5 gible household be certified and receive an allot6 ment for the period of application not later

7 than 30 days after filing an application;

8 ‘‘(F) paragraphs (8), (9), (12), (17), (19),

9 (21), and (27) of section 11(e);

10 ‘‘(G) section 11(e)(10) or a comparable re11 quirement established by the State under a

12 State program funded under part A of title IV

13 of the Social Security Act (42 U.S.C. 601 et

14 seq.); and

15 ‘‘(H) section 16.’’.

16 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

17 Act (7 U.S.C. 2020(e)) (as amended by sections 315(b)

18 and 328) is further amended by adding at the end the

19 following:

20 ‘‘(28) the plans of the State agency for operat21 ing, at the election of the State, a program under

22 section 24, including—

23 ‘‘(A) the rules and procedures to be fol24 lowed by the State to determine food stamp

25 benefits;
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1 ‘‘(B) how the State will address the needs

2 of households that experience high shelter costs

3 in relation to the incomes of the households;

4 and

5 ‘‘(C) a description of the method by which

6 the State will carry out a quality control system

7 under section 16(c).’’.

8 (c) CONFORMING AMENDMENTS.—

9 (1) Section 8 of the Act (7 U.S.C. 2017) (as

10 amended by section 325) is further amended—

11 (A) by striking subsection (e); and

12 (B) by redesignating subsection (f) as sub13 section (e).

14 (2) Section 17 of the Act (7 U.S.C. 2026) (as

15 amended by section 339) is further amended—

16 (A) by striking subsection (i); and

17 (B) by redesignating subsections (j)

18 through (m) as subsections (i) through (l), re19 spectively.

20 SEC. 343. OPTIONAL STATE FOOD ASSISTANCE BLOCK

21 GRANT.

22 (a) IN GENERAL.—The Food Stamp Act of 1977 (7

23 U.S.C. 2011 et seq.) (as amended by section 342) is fur24 ther amended by adding at the end the following:
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1 ‘‘SEC. 25. OPTIONAL STATE FOOD ASSISTANCE BLOCK

2 GRANT.

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab4 lish a program to make grants to States in accordance

5 with this section to provide—

6 ‘‘(1) food assistance to needy individuals and

7 families residing in the State;

8 ‘‘(2) at the option of a State, wage subsidies

9 and payments in return for work for needy individ10 uals under the program;

11 ‘‘(3) funds to operate an employment and train12 ing program under section (g)(2) for needy individ13 uals under the program; and

14 ‘‘(4) funds for administrative costs incurred in

15 providing the assistance.

16 ‘‘(b) ELECTION.—

17 ‘‘(1) IN GENERAL.—A State may elect to par18 ticipate in the program established under subsection

19 (a).

20 ‘‘(2) ELECTION REVOCABLE.—A State that

21 elects to participate in the program established

22 under subsection (a) may subsequently reverse its

23 election only once thereafter. Following such rever24 sal, the State shall only be eligible to participate in

25 the food stamp program in accordance with the
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1 other sections of this Act and shall not receive a

2 block grant under this section.

3 ‘‘(3) PROGRAM EXCLUSIVE.—A State that is

4 participating in the program established under sub5 section (a) shall not be subject to, or receive any

6 benefit under, this Act except as provided in this

7 section.

8 ‘‘(4) SUNSET OF ELECTION UPON INCREASE IN

9 NUMBER OF HUNGRY CHILDREN.—

10 ‘‘(A) FINDINGS.—The Congress finds

11 that—

12 ‘‘(i) on March 29, 1995 the Senate

13 adopted a resolution stating that Congress

14 should not enact or adopt any legislation

15 that will increase the number of children

16 who are hungry;

17 ‘‘(ii) it is not the intent of this bill to

18 cause more children to be hungry;

19 ‘‘(iii) the Food Stamp Program serves

20 to prevent child hunger; and

21 ‘‘(iv) a State’s election to participate

22 in the optional State food assistance block

23 grant program should not serve to increase

24 the number of hungry children in that

25 State.
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1 ‘‘(B) SUNSET.—If the Secretary of Health

2 and Human Services makes two successive find3 ings that the hunger rate among children in a

4 State is significantly higher in a State that has

5 elected to participate in a program established

6 under subsection (a) than it would have been

7 had there been no such election, 180 days after

8 the second such finding such election shall be

9 permanently and irreversibly revoked and the

10 provisions of paragraphs (1) and (2) shall not

11 be applicable to that State.

12 ‘‘(C) PROCEDURE FOR FINDING BY SEC13 RETARY.—In making the finding described in

14 subparagraph (B), the Secretary shall adhere to

15 the following procedure:

16 ‘‘(i) Every three years, the Secretary

17 shall develop data and report to Congress

18 with respect to each State that has elected

19 to participate in a program established

20 under subsection (a) whether the child

21 hunger rate in such State is significantly

22 higher than it would have been had the

23 State not made such election.

24 ‘‘(ii) The Secretary shall provide the

25 report required under clause (i) to all
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1 States that have elected to participate in a

2 program established under subsection (a),

3 and the Secretary shall provide each State

4 for which the Secretary determined that

5 the child hunger rate is significantly higher

6 than it would have been had the State not

7 made such election with an opportunity to

8 respond to such determination.

9 ‘‘(iii) If the response by a State under

10 clause (ii) does not result in the Secretary

11 reversing the determination that the child

12 hunger rate in that State is significantly

13 higher than it would have been had the

14 State not made such election, then the Sec15 retary shall publish a finding as described

16 in subparagraph (B).

17 ‘‘(c) LEAD AGENCY.—

18 ‘‘(1) DESIGNATION.—A State desiring to re19 ceive a grant under this section shall designate, in

20 an application submitted to the Secretary under sub21 section (d)(1), an appropriate State agency that

22 complies with paragraph (2) to act as the lead agen23 cy for the State.

24 ‘‘(2) DUTIES.—
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1 ‘‘(A) IN GENERAL.—The lead agency

2 shall—

3 ‘‘(i) administer, either directly,

4 through other State agencies, or through

5 local agencies, the assistance received

6 under this section by the State;

7 ‘‘(ii) develop the State plan to be sub8 mitted to the Secretary under subsection

9 (d)(1);

10 ‘‘(iii) in conjunction with the develop11 ment of the State plan, hold at least 1

12 hearing in the State to provide to the pub13 lic an opportunity to comment on the pro14 gram under the State plan; and

15 ‘‘(iv) coordinate the provision of food

16 assistance under this section with other

17 Federal, State, and local programs.

18 ‘‘(B) DEVELOPMENT OF PLAN.—In the de19 velopment of the State plan described in sub20 paragraph (A)(ii), the lead agency shall consult

21 with local governments and private sector orga22 nizations regarding the plan and design of the

23 State plan so that services are provided in a

24 manner appropriate to local populations.

25 ‘‘(d) APPLICATION AND PLAN.—
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1 ‘‘(1) APPLICATION.—To be eligible to receive

2 assistance under this section, a State shall prepare

3 and submit to the Secretary an application at such

4 time, in such manner, and containing such informa5 tion as the Secretary shall by regulation require, in6 cluding—

7 ‘‘(A) an assurance that the State will com8 ply with the requirements of this section;

9 ‘‘(B) a State plan that meets the require10 ments of paragraph (3); and

11 ‘‘(C) an assurance that the State will com12 ply with the requirements of the State plan

13 under paragraph (3).

14 ‘‘(2) ANNUAL PLAN.—The State plan contained

15 in the application under paragraph (1) shall be sub16 mitted for approval annually.

17 ‘‘(3) REQUIREMENTS OF PLAN.—

18 ‘‘(A) LEAD AGENCY.—The State plan shall

19 identify the lead agency.

20 ‘‘(B) USE OF BLOCK GRANT FUNDS.—The

21 State plan shall provide that the State shall use

22 the amounts provided to the State for each fis23 cal year under this section—

24 ‘‘(i) to provide food assistance to

25 needy individuals and families residing in
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1 the State, other than residents of institu2 tions who are ineligible for food stamps

3 under section 3(i);

4 ‘‘(ii) at the option of a State, to pro5 vide wage subsidies and workfare under

6 section 20(a) (except that any reference in

7 section 20(a) to an allotment shall be con8 sidered a reference to the food assistance

9 or benefits in lieu of food assistance re10 ceived by an individual or family during a

11 month under this section) for needy indi12 viduals and families participating in the

13 program;

14 ‘‘(iii) to administer an employment

15 and training program under section (g)(2)

16 for needy individuals under the program

17 and to provide reimbursements to needy

18 individuals and families as would be al19 lowed under section 16(h)(3); and

20 ‘‘(iv) to pay administrative costs in21 curred in providing the assistance.

22 ‘‘(C) GROUPS SERVED.—The State plan

23 shall describe how the program will serve spe24 cific groups of individuals and families and how

25 the treatment will differ from treatment under
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1 the food stamp program under the other sec2 tions of this Act of the individuals and families,

3 including—

4 ‘‘(i) elderly individuals and families;

5 ‘‘(ii) migrants or seasonal farm6 workers;

7 ‘‘(iii) homeless individuals and fami8 lies;

9 ‘‘(iv) individuals and families who live

10 under the supervision of institutions (other

11 than incarcerated individuals);

12 ‘‘(v) individuals and families with

13 earnings; and

14 ‘‘(vi) members of Indian tribes or trib15 al organizations.

16 ‘‘(D) ASSISTANCE FOR ENTIRE STATE.—

17 The State plan shall provide that benefits under

18 this section shall be available throughout the

19 entire State.

20 ‘‘(E) NOTICE AND HEARINGS.—The State

21 plan shall provide that an individual or family

22 who applies for, or receives, assistance under

23 this section shall be provided with notice of, and

24 an opportunity for a hearing on, any action
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1 under this section that adversely affects the in2 dividual or family.

3 ‘‘(F) OTHER ASSISTANCE.—

4 ‘‘(i) COORDINATION.—The State plan

5 may coordinate assistance received under

6 this section with assistance provided under

7 the State program funded under part A of

8 title IV of the Social Security Act (42

9 U.S.C. 601 et seq.).

10 ‘‘(ii) PENALTIES.—If an individual or

11 family is penalized for violating part A of

12 title IV of the Act, the State plan may re13 duce the amount of assistance provided

14 under this section or otherwise penalize the

15 individual or family.

16 ‘‘(G) ASSESSMENT OF NEEDS.—The State

17 plan shall assess the food and nutrition needs

18 of needy persons residing in the State.

19 ‘‘(H) ELIGIBILITY LIMITATIONS.—The

20 State plan shall describe the income and re21 source eligibility limitations that are established

22 for the receipt of assistance under this section.

23 ‘‘(I) RECEIVING BENEFITS IN MORE THAN

24 1 JURISDICTION.—The State plan shall estab25 lish a system to verify and otherwise ensure
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1 that no individual or family shall receive bene2 fits under this section in more than 1 jurisdic3 tion within the State.

4 ‘‘(J) PRIVACY.—The State plan shall pro5 vide for safeguarding and restricting the use

6 and disclosure of information about any individ7 ual or family receiving assistance under this

8 section.

9 ‘‘(K) OTHER INFORMATION.—The State

10 plan shall contain such other information as

11 may be required by the Secretary.

12 ‘‘(4) APPROVAL OF APPLICATION AND PLAN.—

13 The Secretary shall approve an application and

14 State plan that satisfies the requirements of this

15 section.

16 ‘‘(e) LIMITATIONS ON STATE ALLOTMENTS.—

17 ‘‘(1) NO INDIVIDUAL OR FAMILY ENTITLEMENT

18 TO ASSISTANCE.—Nothing in this section—

19 ‘‘(A) entitles any individual or family to

20 assistance under this section; or

21 ‘‘(B) limits the right of a State to impose

22 additional limitations or conditions on assist23 ance under this section.

24 ‘‘(2) CONSTRUCTION OF FACILITIES.—No funds

25 made available under this section shall be expended
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1 for the purchase or improvement of land, or for the

2 purchase, construction, or permanent improvement

3 of any building or facility.

4 ‘‘(f) BENEFITS FOR ALIENS.—

5 ‘‘(1) ELIGIBILITY.—No individual shall be eligi6 ble to receive benefits under a State plan approved

7 under subsection (d)(4) if the individual is not eligi8 ble to participate in the food stamp program under

9 section 6(f).

10 ‘‘(2) INCOME.—The State plan shall provide

11 that the income of an alien shall be determined in

12 accordance with section 5(i).

13 ‘‘(g) EMPLOYMENT AND TRAINING.—

14 ‘‘(1) WORK REQUIREMENTS.—No individual or

15 member of a family shall be eligible to receive bene16 fits under a State plan funded under this section if

17 the individual is not eligible to participate in the

18 food stamp program under subsection (d) or (n) of

19 section 6.

20 ‘‘(2) WORK PROGRAMS.—Each State shall im21 plement an employment and training program under

22 section 6(d)(4) for needy individuals under the pro23 gram.

24 ‘‘(h) ENFORCEMENT.—
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1 ‘‘(1) REVIEW OF COMPLIANCE WITH STATE

2 PLAN.—The Secretary shall review and monitor

3 State compliance with this section and the State

4 plan approved under subsection (d)(4).

5 ‘‘(2) NONCOMPLIANCE.—

6 ‘‘(A) IN GENERAL.—If the Secretary, after

7 reasonable notice to a State and opportunity for

8 a hearing, finds that—

9 ‘‘(i) there has been a failure by the

10 State to comply substantially with any pro11 vision or requirement set forth in the State

12 plan approved under subsection (d)(4); or

13 ‘‘(ii) in the operation of any program

14 or activity for which assistance is provided

15 under this section, there is a failure by the

16 State to comply substantially with any pro17 vision of this section;

18 the Secretary shall notify the State of the find19 ing and that no further payments will be made

20 to the State under this section (or, in the case

21 of noncompliance in the operation of a program

22 or activity, that no further payments to the

23 State will be made with respect to the program

24 or activity) until the Secretary is satisfied that
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1 there is no longer any failure to comply or that

2 the noncompliance will be promptly corrected.

3 ‘‘(B) OTHER SANCTIONS.—In the case of a

4 finding of noncompliance made pursuant to

5 subparagraph (A), the Secretary may, in addi6 tion to, or in lieu of, imposing the sanctions de7 scribed in subparagraph (A), impose other ap8 propriate sanctions, including recoupment of

9 money improperly expended for purposes pro10 hibited or not authorized by this section and

11 disqualification from the receipt of financial as12 sistance under this section.

13 ‘‘(C) NOTICE.—The notice required under

14 subparagraph (A) shall include a specific identi15 fication of any additional sanction being im16 posed under subparagraph (B).

17 ‘‘(3) ISSUANCE OF REGULATIONS.—The Sec18 retary shall establish by regulation procedures for—

19 ‘‘(A) receiving, processing, and determin20 ing the validity of complaints concerning any

21 failure of a State to comply with the State plan

22 or any requirement of this section; and

23 ‘‘(B) imposing sanctions under this sec24 tion.
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1 ‘‘(4) INCOME AND ELIGIBILITY VERIFICATION

2 SYSTEM.—The Secretary may withhold not more

3 than 5 percent of the amount allotted to a State

4 under subsection (l)(2) if the State does not use an

5 income and eligibility verification system established

6 under section 1137 of the Social Security Act (42

7 U.S.C. 1320b–7).

8 ‘‘(i) PAYMENTS.—

9 ‘‘(1) IN GENERAL.—For each fiscal year, the

10 Secretary shall pay to a State that has an applica11 tion approved by the Secretary under subsection

12 (d)(4) an amount that is equal to the allotment of

13 the State under subsection (l)(2) for the fiscal year.

14 ‘‘(2) METHOD OF PAYMENT.—The Secretary

15 shall make payments to a State for a fiscal year

16 under this section by issuing 1 or more letters of

17 credit for the fiscal year, with necessary adjustments

18 on account of overpayments or underpayments, as

19 determined by the Secretary.

20 ‘‘(3) SPENDING OF FUNDS BY STATE.—

21 ‘‘(A) IN GENERAL.—Except as provided in

22 subparagraph (B), payments to a State from an

23 allotment under subsection (l)(2) for a fiscal

24 year may be expended by the State only in the

25 fiscal year.
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1 ‘‘(B) CARRYOVER.—The State may reserve

2 up to 10 percent of an allotment under sub3 section (l)(2) for a fiscal year to provide assist4 ance under this section in subsequent fiscal

5 years, except that the reserved funds may not

6 exceed 30 percent of the total allotment re7 ceived under this section for a fiscal year.

8 ‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE

9 EXPENDITURES.—In each fiscal year, of the Federal

10 funds expended by a State under this section—

11 ‘‘(A) not less than 80 percent shall be for

12 food assistance; and

13 ‘‘(B) not more than 6 percent shall be for

14 administrative expenses.

15 ‘‘(5) PROVISION OF FOOD ASSISTANCE.—A

16 State may provide food assistance under this section

17 in any manner determined appropriate by the State

18 to provide food assistance to needy individuals and

19 families in the State, such as electronic benefits

20 transfer limited to food purchases, coupons limited

21 to food purchases, or direct provision of commod22 ities.

23 ‘‘(6) DEFINITION OF FOOD ASSISTANCE.—In

24 this section, the term ‘food assistance’ means assist-
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1 ance that may be used only to obtain food, as de2 fined in section 3(g).

3 ‘‘(j) AUDITS.—

4 ‘‘(1) REQUIREMENT.—After the close of each

5 fiscal year, a State shall arrange for an audit of the

6 expenditures of the State during the program period

7 from amounts received under this section.

8 ‘‘(2) INDEPENDENT AUDITOR.—An audit under

9 this section shall be conducted by an entity that is

10 independent of any agency administering activities

11 that receive assistance under this section and be in

12 accordance with generally accepted auditing prin13 ciples.

14 ‘‘(3) PAYMENT ACCURACY.—Each annual audit

15 under this section shall include an audit of payment

16 accuracy under this section that shall be based on a

17 statistically valid sample of the caseload in the

18 State.

19 ‘‘(4) SUBMISSION.—Not later than 30 days

20 after the completion of an audit under this section,

21 the State shall submit a copy of the audit to the leg22 islature of the State and to the Secretary.

23 ‘‘(5) REPAYMENT OF AMOUNTS.—Each State

24 shall repay to the United States any amounts deter25 mined through an audit under this section to have
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1 not been expended in accordance with this section or

2 to have not been expended in accordance with the

3 State plan, or the Secretary may offset the amounts

4 against any other amount paid to the State under

5 this section.

6 ‘‘(k) NONDISCRIMINATION.—

7 ‘‘(1) IN GENERAL.—The Secretary shall not

8 provide financial assistance for any program,

9 project, or activity under this section if any person

10 with responsibilities for the operation of the pro11 gram, project, or activity discriminates with respect

12 to the program, project, or activity because of race,

13 religion, color, national origin, sex, or disability.

14 ‘‘(2) ENFORCEMENT.—The powers, remedies,

15 and procedures set forth in title VI of the Civil

16 Rights Act of 1964 (42 U.S.C. 2000d et seq.) may

17 be used by the Secretary to enforce paragraph (1).

18 ‘‘(l) ALLOTMENTS.—

19 ‘‘(1) DEFINITION OF STATE.—In this section,

20 the term ‘State’ means each of the 50 States, the

21 District of Columbia, Guam, and the Virgin Islands

22 of the United States.

23 ‘‘(2) STATE ALLOTMENT.—

24 ‘‘(A) IN GENERAL.—Except as provided in

25 subparagraph (B), from the amounts made
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1 available under section 18 of this Act for each

2 fiscal year, the Secretary shall allot to each

3 State participating in the program established

4 under this section an amount that is equal to

5 the sum of—

6 ‘‘(i) the greater of, as determined by

7 the Secretary—

8 ‘‘(I) the total dollar value of all

9 benefits issued under the food stamp

10 program established under this Act by

11 the State during fiscal year 1994; or

12 ‘‘(II) the average per fiscal year

13 of the total dollar value of all benefits

14 issued under the food stamp program

15 by the State during each of fiscal

16 years 1992 through 1994; and

17 ‘‘(ii) the greater of, as determined by

18 the Secretary—

19 ‘‘(I) the total amount received by

20 the State for administrative costs and

21 the employment and training program

22 under subsections (a) and (h), respec23 tively, of section 16 of this Act for fis24 cal year 1994; or
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1 ‘‘(II) the average per fiscal year

2 of the total amount received by the

3 State for administrative costs and the

4 employment and training program

5 under subsections (a) and (h), respec6 tively, of section 16 of this Act for

7 each of fiscal years 1992 through

8 1994.

9 ‘‘(B) INSUFFICIENT FUNDS.—If the Sec10 retary finds that the total amount of allotments

11 to which States would otherwise be entitled for

12 a fiscal year under subparagraph (A) will ex13 ceed the amount of funds that will be made

14 available to provide the allotments for the fiscal

15 year, the Secretary shall reduce the allotments

16 made to States under this subsection, on a pro

17 rata basis, to the extent necessary to allot

18 under this subsection a total amount that is

19 equal to the funds that will be made available.’’.

20 (b) RESEARCH ON OPTIONAL STATE FOOD ASSIST21 ANCE BLOCK GRANT.—Section 17 of the Food Stamp Act

22 of 1977 (7 U.S.C. 2026) (as amended by section 339 and

23 342(c)(2)) is further amended by adding at the end the

24 following:
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1 ‘‘(m) RESEARCH ON OPTIONAL STATE FOOD ASSIST2 ANCE BLOCK GRANT.—The Secretary may conduct re3 search on the effects and costs of a State program carried

4 out under section 25.’’.

5 SEC. 344. EFFECTIVE DATE.

6 Except as otherwise provided in this subtitle, this

7 subtitle and the amendments made by this subtitle shall

8 become effective on October 1, 1995.

9 Subtitle B—Anti-Fraud and

10 Trafficking

11 SEC. 351. EXPANDED DEFINITION OF COUPON.

12 Section 3(d) of the Food Stamp Act of 1977 (7

13 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi14 cate’’ and inserting ‘‘type of certificate, authorization

15 card, cash or check issued as a coupon, or access device,

16 including an electronic benefits transfer card or a personal

17 identification number,’’.

18 SEC. 352. DOUBLED PENALTIES FOR VIOLATING FOOD

19 STAMP PROGRAM REQUIREMENTS.

20 Section 6(b)(1) of the Food Stamp Act of 1977 (7

21 U.S.C. 2015(b)(1)) is amended—

22 (1) in clause (i), by striking ‘‘six months upon’’

23 and inserting ‘‘1 year on’’; and

24 (2) in clause (ii), by striking ‘‘1 year upon’’ and

25 inserting ‘‘2 years on’’.
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1 SEC. 353. AUTHORITY TO ESTABLISH AUTHORIZATION PE2 RIODS.

3 Section 9(a) of the Food Stamp Act of 1977 (7

4 U.S.C. 2018(a)) is amended by adding at the end the fol5 lowing:

6 ‘‘(3) AUTHORIZATION PERIODS.—The Secretary

7 is authorized to issue regulations establishing spe8 cific time periods during which authorization to ac9 cept and redeem coupons under the food stamp pro10 gram shall be valid.’’.

11 SEC. 354. SPECIFIC PERIOD FOR PROHIBITING PARTICIPA12 TION OF STORES BASED ON LACK OF BUSI13 NESS INTEGRITY.

14 Section 9(a) of the Food Stamp Act of 1977 (7

15 U.S.C. 2018(a)) (as amended by section 353) is further

16 amended by adding at the end the following:

17 ‘‘(4) PERIODS FOR PARTICIPATION OF STORES

18 AND CONCERNS.—The Secretary may issue regula19 tions establishing specific time periods during which

20 a retail food store or wholesale food concern that has

21 an application for approval to accept and redeem

22 coupons denied, or that has an approval withdrawn,

23 on the basis of business integrity and reputation

24 cannot submit a new application for approval. The

25 periods shall reflect the severity of business integrity
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1 infractions that are the basis of the denials or with2 drawals.’’.

3 SEC. 355. INFORMATION FOR VERIFYING ELIGIBILITY FOR

4 AUTHORIZATION.

5 Section 9(c) of the Food Stamp Act of 1977 (7

6 U.S.C. 2018(c)) is amended—

7 (1) in the first sentence, by inserting ‘‘, which

8 may include relevant income and sales tax filing doc9 uments,’’ after ‘‘submit information’’ ; and

10 (2) by inserting after the first sentence the fol11 lowing: ‘‘The regulations may require retail food

12 stores and wholesale food concerns to provide writ13 ten authorization for the Secretary to verify all rel14 evant tax filings with appropriate agencies and to

15 obtain corroborating documentation from other

16 sources so that the accuracy of information provided

17 by the stores and concerns may be verified.’’.

18 SEC. 356. WAITING PERIOD FOR STORES THAT INITIALLY

19 FAIL TO MEET AUTHORIZATION CRITERIA.

20 Section 9(d) of the Food Stamp Act of 1977 (7

21 U.S.C. 2018(d)) is amended by adding at the end the fol22 lowing: ‘‘A retail food store or wholesale food concern that

23 has an application for approval to accept and redeem cou24 pons denied because the store or concern does not meet

25 criteria for approval established by the Secretary by regu-
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1 lation may not submit a new application for 6 months

2 after the date of the denial.’’.

3 SEC. 357. BASES FOR SUSPENSIONS AND DISQUALIFICA4 TIONS.

5 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

6 2021) is amended—

7 (1) by striking the section heading;

8 (2) by striking ‘‘SEC. 12 (a) Any’’ and inserting

9 the following:

10 ‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION

11 OF RETAIL FOOD STORES AND WHOLESALE

12 FOOD CONCERNS.

13 ‘‘(a) DISQUALIFICATION.—

14 ‘‘(1) IN GENERAL.—Any’’; and

15 (3) in subsection (a), by adding at the end the

16 following:

17 ‘‘(2) BASIS.—Regulations issued pursuant to

18 this Act shall provide criteria for the finding of a

19 violation, and the suspension or disqualification of a

20 retail food store or wholesale food concern, on the

21 basis of evidence that may include facts established

22 through on-site investigations, inconsistent redemp23 tion data, or evidence obtained through transaction

24 reports under electronic benefits transfer systems.’’.
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1 SEC. 358. DISQUALIFICATION OF STORES PENDING JUDI2 CIAL AND ADMINISTRATIVE REVIEW.

3 (a) AUTHORITY.—Section 12(a) of the Food Stamp

4 Act of 1977 (7 U.S.C. 2021(a)) (as amended by section

5 357) is further amended by adding at the end the follow6 ing:

7 ‘‘(3) DISQUALIFICATION PENDING REVIEW.—

8 The regulations may establish criteria under which

9 the authorization of a retail food store or wholesale

10 food concern to accept and redeem coupons may be

11 suspended at the time the store or concern is ini12 tially found to have committed a violation of a re13 quirement of the food stamp program that would re14 sult in a permanent disqualification. The suspension

15 may coincide with the period of a review under sec16 tion 14. The Secretary shall not be liable for the

17 value of any sales lost during a suspension or dis18 qualification period.’’.

19 (b) REVIEW.—Section 14(a) of the Act (7 U.S.C.

20 2023(a)) is amended—

21 (1) in the first sentence, by striking ‘‘disquali22 fied or subjected’’ and inserting ‘‘suspended, dis23 qualified, or subjected’’;

24 (2) in the fifth sentence, by inserting before the

25 period at the end the following: ‘‘, except that, in the

26 case of the suspension of a retail food store or
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1 wholesale food concern under section 12(a)(3), the

2 suspension shall remain in effect pending any judi3 cial or administrative review of the proposed dis4 qualification action, and the period of suspension

5 shall be considered a part of any period of disquali6 fication that is imposed’’; and

7 (3) by striking the last sentence.

8 SEC. 359. DISQUALIFICATION OF RETAILERS WHO ARE DIS9 QUALIFIED UNDER THE WIC PROGRAM.

10 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

11 2021) is amended by adding at the end the following:

12 ‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE

13 DISQUALIFIED UNDER THE WIC PROGRAM.—

14 ‘‘(1) IN GENERAL.—The Secretary shall issue

15 regulations providing criteria for the disqualification

16 of an approved retail food store and a wholesale food

17 concern that is disqualified from accepting benefits

18 under the special supplemental nutrition program

19 for women, infants, and children established under

20 section 17 of the Child Nutrition Act of 1966 (7

21 U.S.C. 1786).

22 ‘‘(2) TERMS.—A disqualification under para23 graph (1)—
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1 ‘‘(A) shall be for the same period as the

2 disqualification from the program referred to in

3 paragraph (1);

4 ‘‘(B) may begin at a later date than the

5 disqualification from the program referred to in

6 paragraph (1); and

7 ‘‘(C) notwithstanding section 14, shall not

8 be subject to judicial or administrative review.’’.

9 SEC. 360. PERMANENT DEBARMENT OF RETAILERS WHO IN10 TENTIONALLY SUBMIT FALSIFIED APPLICA11 TIONS.

12 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

13 2021) (as amended by section 359) is further amended

14 by adding at the end the following:

15 ‘‘(h) FALSIFIED APPLICATIONS.—

16 ‘‘(1) IN GENERAL.—The Secretary shall issue

17 regulations providing for the permanent disqualifica18 tion of a retail food store, or wholesale food concern,

19 that knowingly submits an application for approval

20 to accept and redeem coupons that contains false in21 formation about a substantive matter that was, or

22 could have been, a basis for approving the applica23 tion.

24 ‘‘(2) REVIEW.—A disqualification under para25 graph (1) shall be subject to judicial and administra-
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1 tive review under section 14, except that the dis2 qualification shall remain in effect pending the re3 view.’’.

4 SEC. 361. EXPANDED CRIMINAL FORFEITURE FOR VIOLA5 TIONS.

6 (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD

7 STAMP TRAFFICKING.—The first sentence of section

8 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g))

9 is amended by striking ‘‘or intended to be furnished’’.

10 (b) CRIMINAL FORFEITURE.—Section 15 of the Act

11 (7 U.S.C. 2024)) is amended by adding at the end the

12 following:

13 ‘‘(h) CRIMINAL FORFEITURE.—

14 ‘‘(A) IN GENERAL.—Any person convicted

15 of violating subsection (b) or (c) involving food

16 stamp benefits having an aggregate value of not

17 less than $5,000, shall forfeit to the United

18 States—

19 ‘‘(i) any food stamp benefits and any

20 property constituting, or derived from, or

21 traceable to any proceeds the person ob22 tained directly or indirectly as a result of

23 the violation; and

24 ‘‘(ii) any food stamp benefits and any

25 property of the person used, or intended to
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1 be used, in any manner or part, to commit,

2 or to facilitate the commission of the viola3 tion.

4 ‘‘(B) SENTENCE.—In imposing a sentence

5 on a person under subparagraph (A), a court

6 shall order that the person forfeit to the United

7 States all property described in this subsection.

8 ‘‘(C) PROCEDURES.—Any food stamp ben9 efits or property subject to forfeiture under this

10 subsection, any seizure or disposition of the

11 benefits or property, and any administrative or

12 judicial proceeding relating to the benefits or

13 property, shall be governed by subsections (b),

14 (c), (e), and (g) through (p) of section 413 of

15 the Comprehensive Drug Abuse Prevention and

16 Control Act of 1970 (21 U.S.C. 853), if not in17 consistent with this subsection.

18 ‘‘(3) EXCLUDED PROPERTY.—This subsection

19 shall not apply to property referred to in subsection

20 (g).’’.

21 SEC. 362. EFFECTIVE DATE.

22 This subtitle and the amendments made by this sub23 title shall become effective on October 1, 1995.
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1 TITLE IV—CHILD NUTRITION

2 PROGRAMS

3 Subtitle A—Reimbursement Rates

4 SEC. 401. TERMINATION OF ADDITIONAL PAYMENT FOR

5 LUNCHES SERVED IN HIGH FREE AND RE6 DUCED PRICE PARTICIPATION SCHOOLS.

7 (a) IN GENERAL.—Section 4(b)(2) of the National

8 School Lunch Act (42 U.S.C. 1753(b)(2)) is amended by

9 striking ‘‘except that’’ and all that follows through ‘‘2

10 cents more’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall become effective on July 1, 1996.

13 SEC. 402. VALUE OF FOOD ASSISTANCE.

14 (a) IN GENERAL.—Section 6(e)(1) of the National

15 School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by

16 striking subparagraph (B) and inserting the following:

17 ‘‘(B) ADJUSTMENTS.—

18 ‘‘(i) IN GENERAL.—The value of food

19 assistance for each meal shall be adjusted

20 each July 1 by the annual percentage

21 change in a 3-month average value of the

22 Price Index for Foods Used in Schools and

23 Institutions for March, April, and May

24 each year.
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1 ‘‘(ii) ADJUSTMENTS.—Except as oth2 erwise provided in this subparagraph, in

3 the case of each school year, the Secretary

4 shall—

5 ‘‘(I) base the adjustment made

6 under clause (i) on the amount of the

7 unrounded adjustment for the preced8 ing school year;

9 ‘‘(II) adjust the resulting amount

10 in accordance with clause (i); and

11 ‘‘(III) round the result to the

12 nearest lower cent increment.

13 ‘‘(iii) ADJUSTMENT ON JANUARY 1,

14 1996.—On January 1, 1996, the Secretary

15 shall adjust the value of food assistance for

16 the remainder of the school year by round17 ing the previously established value of food

18 assistance to the nearest lower cent incre19 ment.

20 ‘‘(iv) ADJUSTMENT FOR 1996–97

21 SCHOOL YEAR.—In the case of the school

22 year beginning July 1, 1996, the value of

23 food assistance shall be the same as the

24 value of food assistance in effect on June

25 30, 1996.
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1 ‘‘(v) ADJUSTMENT FOR 1997–98

2 SCHOOL YEAR.—In the case of the school

3 year beginning July 1, 1997, the Secretary

4 shall—

5 ‘‘(I) base the adjustment made

6 under clause (i) on the amount of the

7 unrounded adjustment for the value of

8 food assistance for the school year be9 ginning July 1, 1995;

10 ‘‘(II) adjust the resulting amount

11 to reflect the annual percentage

12 change in a 3-month average value of

13 the Price Index for Foods Used in

14 Schools and Institutions for March,

15 April, and May for the most recent

16 12-month period for which the data

17 are available; and

18 ‘‘(III) round the result to the

19 nearest lower cent increment.’’.

20 (b) EFFECTIVE DATE.—The amendments made by

21 subsection (a) shall become effective on January 1, 1996.

22 SEC. 403. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.

23 (a) IN GENERAL.—Section 11(a)(3)(B) of the Na24 tional School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is

25 amended—
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1 (1) by designating the second and third sen2 tences as subparagraphs (C) and (D), respectively;

3 and

4 (2) by striking subparagraph (D) (as so des5 ignated) and inserting the following:

6 ‘‘(D) ROUNDING.—Except as otherwise

7 provided in this paragraph, in the case of each

8 school year, the Secretary shall—

9 ‘‘(i) base the adjustment made under

10 this paragraph on the amount of the

11 unrounded adjustment for the preceding

12 school year;

13 ‘‘(ii) adjust the resulting amount in

14 accordance with subparagraphs (B) and

15 (C); and

16 ‘‘(iii) round the result to the nearest

17 lower cent increment.

18 ‘‘(E) ADJUSTMENT ON JANUARY 1, 1996.—

19 On January 1, 1996, the Secretary shall adjust

20 the rates and factor for the remainder of the

21 school year by rounding the previously estab22 lished rates and factor to the nearest lower cent

23 increment.

24 ‘‘(F) ADJUSTMENT FOR 24-MONTH PERIOD

25 BEGINNING JULY 1, 1996.—In the case of the
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1 24-month period beginning July 1, 1996, the

2 national average payment rates for paid

3 lunches, paid breakfasts, and paid supplements

4 shall be the same as the national average pay5 ment rate for paid lunches, paid breakfasts, and

6 paid supplements, respectively, for the school

7 year beginning July 1, 1995, rounded to the

8 nearest lower cent increment.

9 ‘‘(G) ADJUSTMENT FOR SCHOOL YEAR BE10 GINNING JULY 1, 1998.—In the case of the

11 school year beginning July 1, 1998, the Sec12 retary shall—

13 ‘‘(i) base the adjustments made under

14 this paragraph for—

15 ‘‘(I) paid lunches and paid break16 fasts on the amount of the unrounded

17 adjustment for paid lunches for the

18 school year beginning July 1, 1995;

19 and

20 ‘‘(II) paid supplements on the

21 amount of the unrounded adjustment

22 for paid supplements for the school

23 year beginning July 1, 1995;

24 ‘‘(ii) adjust each resulting amount in

25 accordance with subparagraph (C); and
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1 ‘‘(iii) round each result to the nearest

2 lower cent increment.’’.

3 (b) EFFECTIVE DATE.—The amendments made by

4 subsection (a) shall become effective on January 1, 1996.

5 SEC. 404. SUMMER FOOD SERVICE PROGRAM FOR CHIL6 DREN.

7 (a) IN GENERAL.—Section 13(b) of the National

8 School Lunch Act (42 U.S.C. 1761(b)) is amended—

9 (1) by striking ‘‘(b)(1)’’ and all that follows

10 through the end of paragraph (1) and inserting the

11 following:

12 ‘‘(b) SERVICE INSTITUTIONS.—

13 ‘‘(1) PAYMENTS.—

14 ‘‘(A) IN GENERAL.—Except as otherwise

15 provided in this paragraph, payments to service

16 institutions shall equal the full cost of food

17 service operations (which cost shall include the

18 costs of obtaining, preparing, and serving food,

19 but shall not include administrative costs).

20 ‘‘(B) MAXIMUM AMOUNTS.—Subject to

21 subparagraph (C), payments to any institution

22 under subparagraph (A) shall not exceed—

23 ‘‘(i) $2 for each lunch and supper

24 served;
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1 ‘‘(ii) $1.20 for each breakfast served;

2 and

3 ‘‘(iii) 50 cents for each meal supple4 ment served.

5 ‘‘(C) ADJUSTMENTS.—Amounts specified

6 in subparagraph (B) shall be adjusted each

7 January 1 to the nearest lower cent increment

8 in accordance with the changes for the 12-

9 month period ending the preceding November

10 30 in the series for food away from home of the

11 Consumer Price Index for All Urban Consum12 ers published by the Bureau of Labor Statistics

13 of the Department of Labor. Each adjustment

14 shall be based on the unrounded adjustment for

15 the prior 12-month period.’’;

16 (2) in the second sentence of paragraph (3), by

17 striking ‘‘levels determined’’ and all that follows

18 through ‘‘this subsection’’ and inserting ‘‘level deter19 mined by the Secretary’’; and

20 (3) by striking paragraph (4).

21 (b) EFFECTIVE DATE.—The amendments made by

22 subsection (a) shall become effective on January 1, 1996.
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1 SEC. 405. SPECIAL MILK PROGRAM.

2 (a) IN GENERAL.—Section 3(a) of the Child Nutri3 tion Act of 1966 (42 U.S.C. 1772(a)) is amended by strik4 ing paragraph (8) and inserting the following:

5 ‘‘(8) ADJUSTMENTS.—

6 ‘‘(A) IN GENERAL.—Except as otherwise

7 provided in this paragraph, in the case of each

8 school year, the Secretary shall—

9 ‘‘(i) base the adjustment made under

10 paragraph (7) on the amount of the

11 unrounded adjustment for the preceding

12 school year;

13 ‘‘(ii) adjust the resulting amount in

14 accordance with paragraph (7); and

15 ‘‘(iii) round the result to the nearest

16 lower cent increment.

17 ‘‘(B) ADJUSTMENT ON JANUARY 1, 1996.—

18 On January 1, 1996, the Secretary shall adjust

19 the minimum rate for the remainder of the

20 school year by rounding the previously estab21 lished minimum rate to the nearest lower cent

22 increment.

23 ‘‘(C) ADJUSTMENT FOR 1996–97 SCHOOL

24 YEAR.—In the case of the school year beginning

25 July 1, 1996, the minimum rate shall be the
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1 same as the minimum rate in effect on June

2 30, 1996.

3 ‘‘(D) ADJUSTMENT FOR 1997–98 SCHOOL

4 YEAR.—In the case of the school year beginning

5 July 1, 1997, the Secretary shall—

6 ‘‘(i) base the adjustment made under

7 paragraph (7) on the amount of the

8 unrounded adjustment for the minimum

9 rate for the school year beginning July 1,

10 1995;

11 ‘‘(ii) adjust the resulting amount to

12 reflect changes in the Producer Price

13 Index for Fresh Processed Milk published

14 by the Bureau of Labor Statistics of the

15 Department of Labor for the most recent

16 12-month period for which the data are

17 available; and

18 ‘‘(iii) round the result to the nearest

19 lower cent increment.’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 subsection (a) shall become effective on January 1, 1996.

22 SEC. 406. FREE AND REDUCED PRICE BREAKFASTS.

23 (a) IN GENERAL.—Section 4(b) of the Child Nutri24 tion Act of 1966 (42 U.S.C. 1773(b)) is amended—
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1 (1) in the second sentence of paragraph (1)(B),

2 by striking ‘‘, adjusted to the nearest one-fourth

3 cent’’ and inserting ‘‘(as adjusted pursuant to sec4 tion 11(a) of the National School Lunch Act (42

5 U.S.C. 1759a(a))’’; and

6 (2) in paragraph (2)(B)(ii)—

7 (A) by striking ‘‘nearest one-fourth cent’’

8 and inserting ‘‘nearest lower cent increment for

9 the applicable school year’’; and

10 (B) by inserting before the period at the

11 end the following: ‘‘, and the adjustment re12 quired by this clause shall be based on the

13 unrounded adjustment for the preceding school

14 year’’.

15 (b) EFFECTIVE DATE.—The amendments made by

16 subsection (a) shall become effective on July 1, 1996.

17 SEC. 407. CONFORMING REIMBURSEMENT FOR PAID

18 BREAKFASTS AND LUNCHES.

19 (a) IN GENERAL.—The last sentence of section

20 4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C.

21 1773(b)(1)(B)) is amended by striking ‘‘8.25 cents’’ and

22 all that follows through ‘‘Act)’’ and inserting ‘‘the same

23 as the national average lunch payment for paid meals es24 tablished under section 4(b) of the National School Lunch

25 Act (42 U.S.C. 1753(b))’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall become effective on January 1, 1996.

3 Subtitle B—Grant Programs

4 SEC. 411. SCHOOL BREAKFAST STARTUP GRANTS.

5 Section 4 of the Child Nutrition Act of 1966 (42

6 U.S.C. 1773) is amended by striking subsection (g).

7 SEC. 412. NUTRITION EDUCATION AND TRAINING PRO8 GRAMS.

9 Section 19(i)(2)(A) of the Child Nutrition Act of

10 1966 (42 U.S.C. 1788(i)(2)(A)) is amended by striking

11 ‘‘$10,000,000’’ and inserting ‘‘$7,000,000’’.

12 SEC. 413. EFFECTIVE DATE.

13 The amendments made by this subtitle shall become

14 effective on October 1, 1996.

15 Subtitle C—Other Amendments

16 SEC. 421. FREE AND REDUCED PRICE POLICY STATEMENT.

17 (a) SCHOOL LUNCH PROGRAM.—Section 9(b)(2) of

18 the National School Lunch Act (42 U.S.C. 1758(b)(2))

19 is amended by adding at the end the following:

20 ‘‘(D) FREE AND REDUCED PRICE POLICY

21 STATEMENT.—After the initial submission, a

22 school shall not be required to submit a free

23 and reduced price policy statement to a State

24 educational agency under this Act unless there

25 is a substantive change in the free and reduced
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1 price policy of the school. A routine change in

2 the policy of a school, such as an annual adjust3 ment of the income eligibility guidelines for free

4 and reduced price meals, shall not be sufficient

5 cause for requiring the school to submit a policy

6 statement.’’.

7 (b) SCHOOL BREAKFAST PROGRAM.—Section 4(b)(1)

8 of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1))

9 is amended by adding at the end the following:

10 ‘‘(E) FREE AND REDUCED PRICE POLICY

11 STATEMENT.—After the initial submission, a

12 school shall not be required to submit a free

13 and reduced price policy statement to a State

14 educational agency under this Act unless there

15 is a substantive change in the free and reduced

16 price policy of the school. A routine change in

17 the policy of a school, such as an annual adjust18 ment of the income eligibility guidelines for free

19 and reduced price meals, shall not be sufficient

20 cause for requiring the school to submit a policy

21 statement.’’.
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1 SEC. 422. SUMMER FOOD SERVICE PROGRAM FOR CHIL2 DREN.

3 (a) PERMITTING OFFER VERSUS SERVE.—Section

4 13(f) of the National School Lunch Act (42 U.S.C.

5 1761(f)) is amended—

6 (1) by striking ‘‘(f) Service’’ and inserting the

7 following:

8 ‘‘(f) NUTRITIONAL STANDARDS.—

9 ‘‘(1) IN GENERAL.—Service’’; and

10 (2) by adding at the end the following:

11 ‘‘(2) OFFER VERSUS SERVE.—A school food au12 thority participating as a service institution may

13 permit a child attending a site on school premises

14 operated directly by the authority to refuse not more

15 than 1 item of a meal that the child does not intend

16 to consume. A refusal of an offered food item shall

17 not affect the amount of payments made under this

18 section to a school for the meal.’’.

19 (b) REMOVING MANDATORY NOTICE TO INSTITU20 TIONS.—Section 13(n)(2) of the Act is amended by strik21 ing ‘‘and its plans and schedule’’ and inserting ‘‘except

22 that the Secretary may not require a State to submit a

23 plan or schedule’’.

24 SEC. 423. CHILD AND ADULT CARE FOOD PROGRAM.

25 (a) PAYMENTS TO SPONSOR EMPLOYEES.—Para26 graph (2) of the last sentence of section 17(a) of the Na-
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1 tional School Lunch Act (42 U.S.C. 1766(a)) is amend2 ed—

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (B);

5 (2) by striking the period at the end of sub6 paragraph (C) and inserting ‘‘; and’’; and

7 (3) by adding at the end the following:

8 ‘‘(D) in the case of a family or group day

9 care home sponsoring organization that employs

10 more than 1 employee, the organization does

11 not base payments to an employee of the orga12 nization on the number of family or group day

13 care homes recruited, managed, or monitored.’’.

14 (b) IMPROVED TARGETING OF DAY CARE HOME RE15 IMBURSEMENTS.—

16 (1) RESTRUCTURED DAY CARE HOME REIM17 BURSEMENTS.—Section 17(f)(3) of the Act is

18 amended by striking ‘‘(3)(A) Institutions’’ and all

19 that follows through the end of subparagraph (A)

20 and inserting the following:

21 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

22 DAY CARE HOME SPONSORING ORGANIZATIONS.—

23 ‘‘(A) REIMBURSEMENT FACTOR.—

24 ‘‘(i) IN GENERAL.—An institution

25 that participates in the program under this
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1 section as a family or group day care home

2 sponsoring organization shall be provided,

3 for payment to a home sponsored by the

4 organization, reimbursement factors in ac5 cordance with this subparagraph for the

6 cost of obtaining and preparing food and

7 prescribed labor costs involved in providing

8 meals under this section.

9 ‘‘(ii) TIER I FAMILY OR GROUP DAY

10 CARE HOMES.—

11 ‘‘(I) DEFINITION.—In this para12 graph, the term ‘tier I family or group

13 day care home’ means—

14 ‘‘(aa) a family or group day

15 care home that is located in a ge16 ographic area, as defined by the

17 Secretary based on census data,

18 in which at least 50 percent of

19 the children residing in the area

20 are members of households whose

21 incomes meet the income eligi22 bility guidelines for free or re23 duced price meals under section

24 9;
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1 ‘‘(bb) a family or group day

2 care home that is located in an

3 area served by a school enrolling

4 elementary students in which at

5 least 50 percent of the total num6 ber of children enrolled are cer7 tified eligible to receive free or

8 reduced price school meals under

9 this Act or the Child Nutrition

10 Act of 1966 (42 U.S.C. 1771 et

11 seq.); or

12 ‘‘(cc) a family or group day

13 care home that is operated by a

14 provider whose household meets

15 the income eligibility guidelines

16 for free or reduced price meals

17 under section 9 and whose in18 come is verified by the sponsor19 ing organization of the home

20 under regulations established by

21 the Secretary.

22 ‘‘(II) REIMBURSEMENT.—Except

23 as provided in subclause (III), a tier

24 I family or group day care home shall

25 be provided reimbursement factors
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1 under this clause without a require2 ment for documentation of the costs

3 described in clause (i), except that re4 imbursement shall not be provided

5 under this subclause for meals or sup6 plements served to the children of a

7 person acting as a family or group

8 day care home provider unless the

9 children meet the income eligibility

10 guidelines for free or reduced price

11 meals under section 9.

12 ‘‘(III) FACTORS.—Except as pro13 vided in subclause (IV), the reim14 bursement factors applied to a home

15 referred to in subclause (II) shall be

16 the factors in effect on the date of en17 actment of this subclause.

18 ‘‘(IV) ADJUSTMENTS.—The re19 imbursement factors under this sub20 paragraph shall be adjusted on Au21 gust 1, 1996, July 1, 1997, and each

22 July 1 thereafter, to reflect changes in

23 the Consumer Price Index for food at

24 home for the most recent 12-month

25 period for which the data are avail-
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1 able. The reimbursement factors

2 under this subparagraph shall be

3 rounded to the nearest lower cent in4 crement and based on the unrounded

5 adjustment in effect on June 30 of

6 the preceding school year.

7 ‘‘(iii) TIER II FAMILY OR GROUP DAY

8 CARE HOMES.—

9 ‘‘(I) IN GENERAL.—

10 ‘‘(aa) FACTORS.—Except as

11 provided in subclause (II), with

12 respect to meals or supplements

13 served under this clause by a

14 family or group day care home

15 that does not meet the criteria

16 set forth in clause (ii)(I), the re17 imbursement factors shall be $1

18 for lunches and suppers, 30 cents

19 for breakfasts, and 15 cents for

20 supplements.

21 ‘‘(bb) ADJUSTMENTS.—The

22 factors shall be adjusted on July

23 1, 1997, and each July 1 there24 after, to reflect changes in the

25 Consumer Price Index for food at
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1 home for the most recent 12-

2 month period for which the data

3 are available. The reimbursement

4 factors under this item shall be

5 rounded down to the nearest

6 lower cent increment and based

7 on the unrounded adjustment for

8 the preceding 12-month period.

9 ‘‘(cc) REIMBURSEMENT.—A

10 family or group day care home

11 shall be provided reimbursement

12 factors under this subclause with13 out a requirement for docu14 mentation of the costs described

15 in clause (i), except that reim16 bursement shall not be provided

17 under this subclause for meals or

18 supplements served to the chil19 dren of a person acting as a fam20 ily or group day care home pro21 vider unless the children meet the

22 income eligibility guidelines for

23 free or reduced price meals under

24 section 9.
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1 ‘‘(II) OTHER FACTORS.—A fam2 ily or group day care home that does

3 not meet the criteria set forth in

4 clause (ii)(I) may elect to be provided

5 reimbursement factors determined in

6 accordance with the following require7 ments:

8 ‘‘(aa) CHILDREN ELIGIBLE

9 FOR FREE OR REDUCED PRICE

10 MEALS.—In the case of meals or

11 supplements served under this

12 subsection to children who are

13 members of households whose in14 comes meet the income eligibility

15 guidelines for free or reduced

16 price meals under section 9, the

17 family or group day care home

18 shall be provided reimbursement

19 factors set by the Secretary in

20 accordance with clause (ii)(III).

21 ‘‘(bb) INELIGIBLE CHIL22 DREN.—In the case of meals or

23 supplements served under this

24 subsection to children who are

25 members of households whose in-
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1 comes do not meet the income

2 eligibility guidelines, the family

3 or group day care home shall be

4 provided reimbursement factors

5 in accordance with subclause (I).

6 ‘‘(III) INFORMATION AND DE7 TERMINATIONS.—

8 ‘‘(aa) IN GENERAL.—If a

9 family or group day care home

10 elects to claim the factors de11 scribed in subclause (II), the

12 family or group day care home

13 sponsoring organization serving

14 the home shall collect the nec15 essary income information, as de16 termined by the Secretary, from

17 any parent or other caretaker to

18 make the determinations speci19 fied in subclause (II) and shall

20 make the determinations in ac21 cordance with rules prescribed by

22 the Secretary.

23 ‘‘(bb) CATEGORICAL ELIGI24 BILITY.—In making a determina25 tion under item (aa), a family or
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1 group day care home sponsoring

2 organization may consider a child

3 participating in or subsidized

4 under, or a child with a parent

5 participating in or subsidized

6 under, a federally or State sup7 ported child care or other benefit

8 program with an income eligi9 bility limit that does not exceed

10 the eligibility standard for free or

11 reduced price meals under section

12 9 to be a child who is a member

13 of a household whose income

14 meets the income eligibility

15 guidelines under section 9.

16 ‘‘(cc) FACTORS FOR CHIL17 DREN ONLY.—A family or group

18 day care home may elect to re19 ceive the reimbursement factors

20 prescribed under clause (ii)(III)

21 solely for the children participat22 ing in a program referred to in

23 item (bb) if the home elects not

24 to have income statements col-
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1 lected from parents or other care2 takers.

3 ‘‘(IV) SIMPLIFIED MEAL COUNT4 ING AND REPORTING PROCEDURES.—

5 The Secretary shall prescribe sim6 plified meal counting and reporting

7 procedures for use by a family or

8 group day care home that elects to

9 claim the factors under subclause (II)

10 and by a family or group day care

11 home sponsoring organization that

12 sponsors the home. The procedures

13 the Secretary prescribes may include

14 1 or more of the following:

15 ‘‘(aa) Setting an annual per16 centage for each home of the

17 number of meals served that are

18 to be reimbursed in accordance

19 with the reimbursement factors

20 prescribed under clause (ii)(III)

21 and an annual percentage of the

22 number of meals served that are

23 to be reimbursed in accordance

24 with the reimbursement factors

25 prescribed under subclause (I),
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1 based on the family income of

2 children enrolled in the home in a

3 specified month or other period.

4 ‘‘(bb) Placing a home into 1

5 of 2 or more reimbursement cat6 egories annually based on the

7 percentage of children in the

8 home whose households have in9 comes that meet the income eligi10 bility guidelines under section 9,

11 with each such reimbursement

12 category carrying a set of reim13 bursement factors such as the

14 factors prescribed under clause

15 (ii)(III) or subclause (I) or fac16 tors established within the range

17 of factors prescribed under clause

18 (ii)(III) and subclause (I).

19 ‘‘(cc) Such other simplified

20 procedures as the Secretary may

21 prescribe.

22 ‘‘(V) MINIMUM VERIFICATION

23 REQUIREMENTS.—The Secretary may

24 establish any necessary minimum ver25 ification requirements.’’.
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1 (2) GRANTS TO STATES TO PROVIDE ASSIST2 ANCE TO FAMILY OR GROUP DAY CARE HOMES.—

3 Section 17(f)(3) of the Act is amended by adding at

4 the end the following:

5 ‘‘(D) GRANTS TO STATES TO PROVIDE AS6 SISTANCE TO FAMILY OR GROUP DAY CARE

7 HOMES.—

8 ‘‘(i) IN GENERAL.—

9 ‘‘(I) RESERVATION.—From

10 amounts made available to carry out

11 this section, the Secretary shall re12 serve $5,000,000 of the amount made

13 available for fiscal year 1996.

14 ‘‘(II) PURPOSE.—The Secretary

15 shall use the funds made available

16 under subclause (I) to provide grants

17 to States for the purpose of provid18 ing—

19 ‘‘(aa) assistance, including

20 grants, to family and day care

21 home sponsoring organizations

22 and other appropriate organiza23 tions, in securing and providing

24 training, materials, automated

25 data processing assistance, and
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1 other assistance for the staff of

2 the sponsoring organizations; and

3 ‘‘(bb) training and other as4 sistance to family and group day

5 care homes in the implementation

6 of the amendments to subpara7 graph (A) made by section

8 423(b)(1) of the Work Oppor9 tunity Act of 1995.

10 ‘‘(ii) ALLOCATION.—The Secretary

11 shall allocate from the funds reserved

12 under clause (i)(I)—

13 ‘‘(I) $30,000 in base funding to

14 each State; and

15 ‘‘(II) any remaining amount

16 among the States, based on the num17 ber of family day care homes partici18 pating in the program in a State dur19 ing fiscal year 1994 as a percentage

20 of the number of all family day care

21 homes participating in the program

22 during fiscal year 1994.

23 ‘‘(iii) RETENTION OF FUNDS.—Of the

24 amount of funds made available to a State

25 for fiscal year 1996 under clause (i), the
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1 State may retain not to exceed 30 percent

2 of the amount to carry out this subpara3 graph.

4 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

5 payments received under this subpara6 graph shall be in addition to payments

7 that a State receives under subparagraph

8 (A) (as amended by section 423(b)(1) of

9 the Work Opportunity Act of 1995).’’.

10 (3) PROVISION OF DATA.—Section 17(f)(3) of

11 the Act (as amended by paragraph (2)) is further

12 amended by adding at the end the following:

13 ‘‘(E) PROVISION OF DATA TO FAMILY OR

14 GROUP DAY CARE HOME SPONSORING ORGANI15 ZATIONS.—

16 ‘‘(i) CENSUS DATA.—The Secretary

17 shall provide to each State agency admin18 istering a child and adult care food pro19 gram under this section data from the

20 most recent decennial census survey or

21 other appropriate census survey for which

22 the data are available showing which areas

23 in the State meet the requirements of sub24 paragraph (A)(ii)(I)(aa). The State agency

25 shall provide the data to family or group
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1 day care home sponsoring organizations lo2 cated in the State.

3 ‘‘(ii) SCHOOL DATA.—

4 ‘‘(I) IN GENERAL.—A State

5 agency administering the school lunch

6 program under this Act or the school

7 breakfast program under the Child

8 Nutrition Act of 1966 (42 U.S.C.

9 1771 et seq.) shall provide to ap10 proved family or group day care home

11 sponsoring organizations a list of

12 schools serving elementary school chil13 dren in the State in which not less

than 1 14 ⁄2 of the children enrolled are

15 certified to receive free or reduced

16 price meals. The State agency shall

17 collect the data necessary to create

18 the list annually and provide the list

19 on a timely basis to any approved

20 family or group day care home spon21 soring organization that requests the

22 list.

23 ‘‘(II) USE OF DATA FROM PRE24 CEDING SCHOOL YEAR.—In determin25 ing for a fiscal year or other annual
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1 period whether a home qualifies as a

2 tier I family or group day care home

3 under subparagraph (A)(ii)(I), the

4 State agency administering the pro5 gram under this section, and a family

6 or group day care home sponsoring

7 organization, shall use the most cur8 rent available data at the time of the

9 determination.

10 ‘‘(iii) DURATION OF DETERMINA11 TION.—For purposes of this section, a de12 termination that a family or group day

13 care home is located in an area that quali14 fies the home as a tier I family or group

15 day care home (as the term is defined in

16 subparagraph (A)(ii)(I)), shall be in effect

17 for 3 years (unless the determination is

18 made on the basis of census data, in which

19 case the determination shall remain in ef20 fect until more recent census data are

21 available) unless the State agency deter22 mines that the area in which the home is

23 located no longer qualifies the home as a

24 tier I family or group day care home.’’.
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1 (4) CONFORMING AMENDMENTS.—Section 17(c)

2 of the Act is amended by inserting ‘‘except as pro3 vided in subsection (f)(3),’’ after ‘‘For purposes of

4 this section,’’ each place it appears in paragraphs

5 (1), (2), and (3).

6 (c) DISALLOWING MEAL CLAIMS.—The fourth sen7 tence of section 17(f)(4) of the Act is amended by insert8 ing ‘‘(including institutions that are not family or group

9 day care home sponsoring organizations)’’ after ‘‘institu10 tions’’.

11 (d) ELIMINATION OF STATE PAPERWORK AND OUT12 REACH BURDEN.—Section 17 of the Act is amended by

13 striking subsection (k) and inserting the following:

14 ‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A

15 State participating in the program established under this

16 section shall provide sufficient training, technical assist17 ance, and monitoring to facilitate effective operation of the

18 program. The Secretary shall assist the State in develop19 ing plans to fulfill the requirements of this subsection.’’.

20 (e) EFFECTIVE DATE.—

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the amendments made by this section

23 shall become effective on the date of enactment of

24 this Act.
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1 (2) IMPROVED TARGETING OF DAY CARE HOME

2 REIMBURSEMENTS.—The amendments made by

3 paragraphs (1), (3), and (4) of subsection (b) shall

4 become effective on August 1, 1996.

5 (3) REGULATIONS.—

6 (A) INTERIM REGULATIONS.—Not later

7 than February 1, 1996, the Secretary shall

8 issue interim regulations to implement—

9 (i) the amendments made by para10 graphs (1), (3), and (4) of subsection (b);

11 and

12 (ii) section 17(f)(3)(C) of the National

13 School Lunch Act (42 U.S.C.

14 1766(f)(3)(C)).

15 (B) FINAL REGULATIONS.—Not later than

16 August 1, 1996, the Secretary shall issue final

17 regulations to implement the provisions of law

18 referred to in subparagraph (A).

19 (f) STUDY OF IMPACT OF AMENDMENTS ON PRO20 GRAM PARTICIPATION AND FAMILY DAY CARE LICENS21 ING.—

22 (1) IN GENERAL.—The Secretary of Agri23 culture, in conjunction with the Secretary of Health

24 and Human Services, shall study the impact of the

25 amendments made by this section on—
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1 (A) the number of family day care homes

2 participating in the child and adult care food

3 program established under section 17 of the

4 National School Lunch Act (42 U.S.C. 1766);

5 (B) the number of day care home sponsor6 ing organizations participating in the program;

7 (C) the number of day care homes that are

8 licensed, certified, registered, or approved by

9 each State in accordance with regulations is10 sued by the Secretary;

11 (D) the rate of growth of the numbers re12 ferred to in subparagraphs (A) through (C);

13 (E) the nutritional adequacy and quality of

14 meals served in family day care homes that—

15 (i) received reimbursement under the

16 program prior to the amendments made by

17 this section but do not receive reimburse18 ment after the amendments made by this

19 section; or

20 (ii) received full reimbursement under

21 the program prior to the amendments

22 made by this section but do not receive full

23 reimbursement after the amendments

24 made by this section; and
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1 (F) the proportion of low-income children

2 participating in the program prior to the

3 amendments made by this section and the pro4 portion of low-income children participating in

5 the program after the amendments made by

6 this section.

7 (2) REQUIRED DATA.—Each State agency par8 ticipating in the child and adult care food program

9 under section 17 of the National School Lunch Act

10 (42 U.S.C. 1766) shall submit to the Secretary data

11 on—

12 (A) the number of family day care homes

13 participating in the program on July 31, 1996,

14 and July 31, 1997;

15 (B) the number of family day care homes

16 licensed, certified, registered, or approved for

17 service on July 31, 1996, and July 31, 1997;

18 and

19 (C) such other data as the Secretary may

20 require to carry out this subsection.

21 (3) SUBMISSION OF REPORT.—Not later than 2

22 years after the effective date of section 423 of this

23 Act, the Secretary shall submit the study required

24 under this subsection to the Committee on Economic

25 and Educational Opportunities of the House of Rep-
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1 resentatives and the Committee on Agriculture, Nu2 trition, and Forestry of the Senate.

3 SEC. 424. REDUCING REQUIRED REPORTS TO STATE AGEN4 CIES AND SCHOOLS.

5 Section 19 of the National School Lunch Act (42

6 U.S.C. 1769a) is amended by striking subsection (c) and

7 inserting the following:

8 ‘‘(c) REPORT.—Not later than 1 year after the date

9 of enactment of the Work Opportunity Act of 1995, the

10 Secretary shall—

11 ‘‘(1) review all reporting requirements under

12 this Act and the Child Nutrition Act of 1966 (42

13 U.S.C. 1771 et seq.) that are in effect, as of the

14 date of enactment of the Work Opportunity Act of

15 1995, for agencies and schools referred to in sub16 section (a); and

17 ‘‘(2) provide a report to the Committee on Eco18 nomic and Educational Opportunities of the House

19 of Representatives and the Committee on Agri20 culture, Nutrition, and Forestry of the Senate

21 that—

22 ‘‘(A) describes the reporting requirements

23 described in paragraph (1) that are required by

24 law;
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1 ‘‘(B) makes recommendations concerning

2 the elimination of any requirement described in

3 subparagraph (A) because the contribution of

4 the requirement to program effectiveness is not

5 sufficient to warrant the paperwork burden that

6 is placed on agencies and schools referred to in

7 subsection (a); and

8 ‘‘(C) provides a justification for reporting

9 requirements described in paragraph (1) that

10 are required solely by regulation.’’.

11 Subtitle D—Reauthorization

12 SEC. 431. COMMODITY DISTRIBUTION PROGRAM; COMMOD13 ITY SUPPLEMENTAL FOOD PROGRAM.

14 (a) REAUTHORIZATION.—The first sentence of sec15 tion 4(a) of the Agriculture and Consumer Protection Act

16 of 1973 (Public Law 93–86; 7 U.S.C. 612c note) is

17 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

18 (b) ADMINISTRATIVE FUNDING.—Section 5(a)(2) of

19 the Act (Public Law 93–86; 7 U.S.C. 612c note) is amend20 ed by striking ‘‘1995’’ and inserting ‘‘2002’’.

21 SEC. 432. EMERGENCY FOOD ASSISTANCE PROGRAM.

22 (a) REAUTHORIZATION.—The first sentence of sec23 tion 204(a)(1) of the Emergency Food Assistance Act of

24 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended

25 by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 (b) PROGRAM TERMINATION.—Section 212 of the

2 Act (Public Law 98–8; 7 U.S.C. 612c note) is amended

3 by striking ‘‘1995’’ and inserting ‘‘2002’’.

4 (c) REQUIRED PURCHASES OF COMMODITIES.—Sec5 tion 214 of the Act (Public Law 98–8; 7 U.S.C. 612c note)

6 is amended—

7 (1) in the first sentence of subsection (a), by

8 striking ‘‘1995’’ and inserting ‘‘2002’’; and

9 (2) in subsection (e), by striking ‘‘1995’’ each

10 place it appears and inserting ‘‘2002’’.

11 (d) EXTENSION.—Section 13962 of the Omnibus

12 Budget Reconciliation Act of 1993 (Public Law 103–66;

13 107 Stat. 680) is amended by striking ‘‘1994, 1995, and

14 1996’’ each place it appears and inserting ‘‘1994 through

15 2002’’.

16 SEC. 433. SOUP KITCHENS PROGRAM.

17 Section 110 of the Hunger Prevention Act of 1988

18 (Public Law 100–435; 7 U.S.C. 612c note) is amended—

19 (1) in the first sentence of subsection (a), by

20 striking ‘‘1995’’ and inserting ‘‘2002’’; and

21 (2) in subsection (c)(2)—

22 (A) in the paragraph heading, by striking

23 ‘‘1995’’ and inserting ‘‘2002’’; and

24 (B) by striking ‘‘1995’’ each place it ap25 pears and inserting ‘‘2002’’.
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1 SEC. 434. NATIONAL COMMODITY PROCESSING.

2 The first sentence of section 1114(a)(2)(A) of the Ag3 riculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A))

4 is amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

5 SEC. 435. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

6 Section 5(d)(2) of the Agriculture and

7 Consumer Protection Act of 1973 (Public Law 93–

8 86; 7 U.S.C. 612c note) is amended by striking

9 ‘‘1995’’ and inserting ‘‘2002’’.

10 TITLE V—NONCITIZENS

11 SEC. 501. STATE OPTION TO PROHIBIT ASSISTANCE FOR

12 CERTAIN ALIENS.

13 (a) IN GENERAL.—A State may, at its option, pro14 hibit the use of any Federal funds received for the provi15 sion of assistance under any means-tested public assist16 ance program for any individual who is a noncitizen of

17 the United States.

18 (b) EXCEPTIONS.—Subsection (a) shall not apply

19 to—

20 (1) any individual who is described in subclause

21 (II), (III), or (IV) of section 1614(a)(1)(B)(i) of the

22 Social Security Act (42 U.S.C. 1382c(a)(1)(B)(i));

23 and

24 (2) any program described in section 502(f)(2).
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1 SEC. 502. DEEMED INCOME REQUIREMENT FOR FEDERAL

2 AND FEDERALLY FUNDED PROGRAMS.

3 (a) DEEMING REQUIREMENT FOR FEDERAL AND

4 FEDERALLY FUNDED PROGRAMS.—Subject to subsection

5 (d), for purposes of determining the eligibility of an indi6 vidual (whether a citizen or national of the United States

7 or an alien) for assistance and the amount of assistance,

8 under any Federal program of assistance provided or

9 funded, in whole or in part, by the Federal Government

10 for which eligibility is based on need, the income and re11 sources described in subsection (b) shall, notwithstanding

12 any other provision of law, be deemed to be the income

13 and resources of such individual.

14 (b) DEEMED INCOME AND RESOURCES.—The income

15 and resources described in this subsection include the fol16 lowing:

17 (1) The income and resources of any person

18 who, as a sponsor of such individual’s entry into the

19 United States, or in order to enable such individual

20 lawfully to remain in the United States, executed an

21 affidavit of support or similar agreement with re22 spect to such individual.

23 (2) The income and resources of the sponsor’s

24 spouse.

25 (c) LENGTH OF DEEMING PERIOD.—The require26 ment of subsection (a) shall apply for the period for which
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1 the sponsor has agreed, in such affidavit or agreement,

2 to provide support for such individual, or for a period of

3 5 years beginning on the date such individual was first

4 lawfully in the United States after the execution of such

5 affidavit or agreement, whichever period is longer.

6 (d) LIMITATION ON MEASUREMENT OF DEEMED IN7 COME AND RESOURCES.—

8 (1) IN GENERAL.—If a determination described

9 in paragraph (2) is made, the amount of income and

10 resources of the sponsor or the sponsor’s spouse

11 which shall be attributed to the sponsored individual

12 shall not exceed the amount actually provided, for a

13 period beginning on the date of such determination

14 and lasting 12 months or, if the address of the spon15 sor is unknown to the sponsored individual on the

16 date of such determination, for 12 months after the

17 address becomes known to the sponsored individual

18 or to the agency (which shall inform such individual

19 within 7 days).

20 (2) DETERMINATION.—The determination de21 scribed in this paragraph is a determination by an

22 agency that a sponsored individual would, in the ab23 sence of the assistance provided by the agency, be

24 unable to obtain food and shelter, taking into ac25 count the individual’s own income, plus any cash,
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1 food, housing, or other assistance provided by other

2 individuals, including the sponsor.

3 (e) DEEMING AUTHORITY TO STATE AND LOCAL

4 AGENCIES.—

5 (1) IN GENERAL.—Notwithstanding any other

6 provision of law, but subject to an exception equiva7 lent to that in subsection (d), the State or local gov8 ernment may, for purposes of determining the eligi9 bility of an individual (whether a citizen or national

10 of the United States or an alien) for assistance, and

11 the amount of assistance, under any State or local

12 program of assistance for which eligibility is based

13 on need, or any need-based program of assistance

14 administered by a State or local government other

15 than a program described in subsection (a), require

16 that the income and resources described in para17 graph (2) be deemed to be the income and resources

18 of such individual.

19 (2) DEEMED INCOME AND RESOURCES.—The

20 income and resources described in this paragraph in21 clude the following:

22 (A) The income and resources of any per23 son who, as a sponsor of such individual’s entry

24 into the United States, or in order to enable

25 such individual lawfully to remain in the United
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1 States, executed an affidavit of support or simi2 lar agreement with respect to such individual.

3 (B) The income and resources of the spon4 sor’s spouse.

5 (3) LENGTH OF DEEMED INCOME PERIOD.—

6 Subject to an exception equivalent to subsection (d),

7 a State or local government may impose a require8 ment described in paragraph (1) for the period for

9 which the sponsor has agreed, in such affidavit or

10 agreement, to provide support for such individual, or

11 for a period of 5 years beginning on the date such

12 individual was first lawfully in the United States

13 after the execution of such affidavit or agreement,

14 whichever period is longer.

15 (f) APPLICABILITY OF SECTION.—

16 (1) INDIVIDUALS.—The provisions of this sec17 tion shall not apply to the eligibility of any individ18 ual who is described in subclause (II), (III), or (IV)

19 of section 1614(a)(1)(B)(i) of the Social Security

20 Act (42 U.S.C. 1382c(a)(1)(B)(i)).

21 (2) PROGRAMS.—The provisions of this section

22 shall not apply to eligibility for—

23 (A) emergency medical services under title

24 XIX of the Social Security Act (42 U.S.C. 1396

25 et seq.);
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1 (B) short-term emergency disaster relief;

2 (C) assistance or benefits under the Na3 tional School Lunch Act;

4 (D) assistance or benefits under the Child

5 Nutrition Act of 1966;

6 (E) public health assistance for immuniza7 tions with respect to immunizable diseases and

8 for testing and treatment for communicable dis9 eases if the Secretary of Health and Human

10 Services determines that such testing and treat11 ment is necessary;

12 (F) the Head Start program (42 U.S.C.

13 9801); and

14 (G) programs specified by the Attorney

15 General, in the Attorney General’s sole and

16 unreviewable discretion after consultation with

17 appropriate Federal agencies and departments,

18 which (i) deliver services at the community

19 level, including through public or private non20 profit agencies; (ii) do not condition the provi21 sion of assistance, the amount of assistance

22 provided, or the cost of assistance provided on

23 the individual recipient’s income or resources;

24 and (iii) are necessary for the protection of life,

25 safety, or public health.
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1 (g) CONFORMING AMENDMENTS.—

2 (1) Section 1621 of the Social Security Act (42

3 U.S.C. 1382j) is repealed.

4 (2) Section 1614(f)(3) of such Act (42 U.S.C.

5 1382c(f)(3)) is amended by striking ‘‘section 1621’’

6 and inserting ‘‘section 502 of the Work Opportunity

7 Act of 1995’’.

8 SEC. 503. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

9 SUPPORT.

10 (a) ENFORCEABILITY.—No affidavit of support may

11 be relied upon by the Attorney General or by any consular

12 officer to establish that an alien is not excludable as a

13 public charge under section 212(a)(4) of the Immigration

14 and Nationality Act unless such affidavit is executed as

15 a contract—

16 (1) which is legally enforceable against the

17 sponsor by the sponsored individual, by the Federal

18 Government, and by any State, district, territory, or

19 possession of the United States (or any subdivision

20 of such State, district, territory, or possession of the

21 United States) which provides any benefit under a

22 program described in subsection (d)(2), but not later

23 than 10 years after the sponsored individual last re24 ceives any such benefit;
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1 (2) in which the sponsor agrees to financially

2 support the sponsored individual, so that he or she

3 will not become a public charge, until the sponsored

4 individual has worked in the United States for 40

5 qualifying quarters; and

6 (3) in which the sponsor agrees to submit to

7 the jurisdiction of any Federal or State court for the

8 purpose of actions brought under subsection (d)(4).

9 (b) FORMS.—Not later than 90 days after the date

10 of the enactment of this Act, the Secretary of State, the

11 Attorney General, and the Secretary of Health and

12 Human Services shall jointly formulate the affidavit of

13 support described in this section.

14 (c) NOTIFICATION OF CHANGE OF ADDRESS.—

15 (1) IN GENERAL.—The sponsor shall notify the

16 Attorney General and the State, district, territory,

17 or possession in which the sponsored individual is

18 currently resident within 30 days of any change of

19 address of the sponsor during the period specified in

20 subsection (a)(1).

21 (2) PENALTY.—Any person subject to the re22 quirement of paragraph (1) who fails to satisfy such

23 requirement shall be subject to a civil penalty of—

24 (A) not less than $250 or more than

25 $2,000, or
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1 (B) if such failure occurs with knowledge

2 that the sponsored individual has received any

3 benefit described in section 241(a)(5)(C) of the

4 Immigration and Nationality Act, not less than

5 $2,000 or more than $5,000.

6 (d) REIMBURSEMENT OF GOVERNMENT EX7 PENSES.—

8 (1) IN GENERAL.—Upon notification that a

9 sponsored individual has received any benefit under

10 a program described in paragraph (2), the appro11 priate Federal, State, or local official shall request

12 reimbursement by the sponsor in the amount of such

13 assistance.

14 (2) PROGRAMS DESCRIBED.—The programs de15 scribed in this paragraph include the following:

16 (A) Assistance under a State program

17 funded under part A of title IV of the Social

18 Security Act.

19 (B) The medicaid program under title XIX

20 of the Social Security Act.

21 (C) The food stamp program under the

22 Food Stamp Act of 1977.

23 (D) The supplemental security income pro24 gram under title XVI of the Social Security

25 Act.
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1 (E) Any State general assistance program.

2 (F) Any other program of assistance fund3 ed, in whole or in part, by the Federal Govern4 ment or any State or local government entity,

5 for which eligibility for benefits is based on

6 need, except the programs specified in section

7 502(f)(2).

8 (3) REGULATIONS.—The Commissioner of So9 cial Security shall prescribe such regulations as may

10 be necessary to carry out paragraph (1). Such regu11 lations shall provide for notification to the sponsor

12 by certified mail to the sponsor’s last known ad13 dress.

14 (4) REIMBURSEMENT.—If within 45 days after

15 requesting reimbursement, the appropriate Federal,

16 State, or local agency has not received a response

17 from the sponsor indicating a willingness to com18 mence payments, an action may be brought against

19 the sponsor pursuant to the affidavit of support.

20 (5) ACTION IN CASE OF FAILURE.—If the spon21 sor fails to abide by the repayment terms established

22 by such agency, the agency may, within 60 days of

23 such failure, bring an action against the sponsor

24 pursuant to the affidavit of support.
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1 (6) STATUTE OF LIMITATIONS.—No cause of

2 action may be brought under this subsection later

3 than 10 years after the sponsored individual last re4 ceived any benefit under a program described in

5 paragraph (2).

6 (e) JURISDICTION.—For purposes of this section, no

7 State court shall decline for lack of jurisdiction to hear

8 any action brought against a sponsor for reimbursement

9 of the cost of any benefit under a program described in

10 subsection (d)(2) if the sponsored individual received pub11 lic assistance while residing in the State.

12 (f) DEFINITIONS.—For the purposes of this section—

13 (1) the term ‘‘sponsor’’ means an individual

14 who—

15 (A) is a United States citizen or national

16 or an alien who is lawfully admitted to the

17 United States for permanent residence;

18 (B) is 18 years of age or over;

19 (C) is domiciled in any of the several

20 States of the United States, the District of Co21 lumbia, or any territory or possession of the

22 United States; and

23 (D) demonstrates the means to maintain

24 an annual income equal to at least 200 percent

25 of the poverty line for the individual and the in-
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1 dividual’s family (including the sponsored indi2 vidual), through evidence that shall include a

3 copy of the individual’s Federal income tax re4 turns for his or her most recent two taxable

5 years and a written statement, executed under

6 oath or as permitted under penalty of perjury

7 under section 1746 of title 28, United States

8 Code, that the copies are true copies of such re9 turns;

10 (2) the term ‘‘poverty line’’ has the same mean11 ing given such term in section 673(2) of the Com12 munity Services Block Grant Act (42 U.S.C.

13 9902(2)); and

14 (3) the term ‘‘qualifying quarter’’ means a

15 three-month period in which the sponsored individ16 ual has—

17 (A) earned at least the minimum necessary

18 for the period to count as one of the 40 cal19 endar quarters required to qualify for social se20 curity retirement benefits;

21 (B) not received need-based public assist22 ance; and

23 (C) had income tax liability for the tax

24 year of which the period was part.
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1 SEC. 504. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI

2 BENEFITS.

3 (a) IN GENERAL.—Paragraph (1) of section 1614(a)

4 of the Social Security Act (42 U.S.C. 1382c(a)) is amend5 ed—

6 (1) in subparagraph (B)(i), by striking ‘‘either’’

7 and all that follows through ‘‘, or’’ and inserting

8 ‘‘(I) a citizen; (II) a noncitizen who is granted asy9 lum under section 208 of the Immigration and Na10 tionality Act or whose deportation has been withheld

11 under section 243(h) of such Act for a period of not

12 more than 5 years after the date of arrival into the

13 United States; (III) a noncitizen who is admitted to

14 the United States as a refugee under section 207 of

15 such Act for not more than such 5-year period; (IV)

16 a noncitizen, lawfully present in any State (or any

17 territory or possession of the United States), who is

18 a veteran (as defined in section 101 of title 38,

19 United States Code) with a discharge characterized

20 as an honorable discharge and not on account of

21 alienage or who is the spouse or unmarried depend22 ent child of such veteran; or (V) a noncitizen who

23 has worked sufficient calendar quarters of coverage

24 to be a fully insured individual for benefits under

25 title II, or’’; and
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1 (2) by adding at the end the following new

2 flush sentence:

3 ‘‘For purposes of subparagraph (B)(i)(IV), the determina4 tion of whether a noncitizen is lawfully present in the

5 United States shall be made in accordance with regula6 tions of the Attorney General. A noncitizen shall not be

7 considered to be lawfully present in the United States for

8 purposes of this title merely because the noncitizen may

9 be considered to be permanently residing in the United

10 States under color of law for purposes of any particular

11 program.’’.

12 (b) EFFECTIVE DATE.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the amendments made by subsection (a)

15 shall apply to applicants for benefits for months be16 ginning on or after the date of the enactment of this

17 Act, without regard to whether regulations have

18 been issued to implement such amendments.

19 (2) APPLICATION TO CURRENT RECIPIENTS.—

20 (A) APPLICATION AND NOTICE.—Notwith21 standing any other provision of law, in the case

22 of an individual who is receiving supplemental

23 security income benefits under title XVI of the

24 Social Security Act as of the date of the enact25 ment of this Act and whose eligibility for such
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1 benefits would terminate by reason of the

2 amendments made by subsection (a), such

3 amendments shall apply with respect to the

4 benefits of such individual for months beginning

5 on or after January 1, 1997, and the Commis6 sioner of Social Security shall so notify the indi7 vidual not later than 90 days after the date of

8 the enactment of this Act.

9 (B) REAPPLICATION.—

10 (i) IN GENERAL.—Not later than 120

11 days after the date of the enactment of

12 this Act, each individual notified pursuant

13 to subparagraph (A) who desires to re14 apply for benefits under title XVI of the

15 Social Security Act shall reapply to the

16 Commissioner of Social Security.

17 (ii) DETERMINATION OF ELIGI18 BILITY.—Not later than 1 year after the

19 date of the enactment of this Act, the

20 Commissioner of Social Security shall de21 termine the eligibility of each individual

22 who reapplies for benefits under clause (i)

23 pursuant to the procedures of such title

24 XVI.
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1 SEC. 505. TREATMENT OF NONCITIZENS.

2 (a) IN GENERAL.—Notwithstanding any other provi3 sion of law, a noncitizen who has entered into the United

4 States on or after the date of the enactment of this Act

5 shall not, during the 5-year period beginning on the date

6 of such noncitizen’s entry into the United States, be eligi7 ble to receive any benefits under any program of assist8 ance provided, or funded, in whole or in part, by the Fed9 eral Government, for which eligibility for benefits is based

10 on need.

11 (b) EXCEPTIONS.—Subsection (a) shall not apply

12 to—

13 (1) any individual who is described in subclause

14 (II), (III), (IV), or (V) of section 1614(a)(1)(B)(i)

15 of the Social Security Act (42 U.S.C.

16 1382c(a)(1)(B)(i)); and

17 (2) any program described in section 502(f)(2);

18 and

19 (3) payments for foster care and adoption as20 sistance under part E of title IV of the Social Secu21 rity Act for a child who would, in the absence of this

22 section, be eligible to have such payments made on

23 the child’s behalf under such part, but only if the

24 foster or adoptive parent or parents of such child are

25 not noncitizens described in subsection (a).
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1 SEC. 506. INFORMATION REPORTING.

2 (a) TITLE IV OF THE SOCIAL SECURITY ACT.—Sec3 tion 405 of the Social Security Act, as added by section

4 101(b), is amended by adding at the end the following new

5 subsection:

6 ‘‘(g) STATE REQUIRED TO PROVIDE CERTAIN IN7 FORMATION.—Each State to which a grant is made under

8 section 403 shall, at least 4 times annually and upon re9 quest of the Immigration and Naturalization Service, fur10 nish the Immigration and Naturalization Service with the

11 name and address of, and other identifying information

12 on, any individual who the State knows is unlawfully in

13 the United States.’’.

14 (b) SSI.—Section 1631(e) of such Act (42 U.S.C.

15 1383(e)) is amended—

16 (1) by redesignating the paragraphs (6) and (7)

17 inserted by sections 206(d)(2) and 206(f)(1) of the

18 Social Security Independence and Programs Im19 provement Act of 1994 (Public Law 103–296; 108

20 Stat. 1514, 1515) as paragraphs (7) and (8), re21 spectively; and

22 (2) by adding at the end the following new

23 paragraph:

24 ‘‘(9) Notwithstanding any other provision of

25 law, the Commissioner shall, at least 4 times annu26 ally and upon request of the Immigration and Natu-
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1 ralization Service (hereafter in this paragraph re2 ferred to as the ‘Service’), furnish the Service with

3 the name and address of, and other identifying in4 formation on, any individual who the Commissioner

5 knows is unlawfully in the United States, and shall

6 ensure that each agreement entered into under sec7 tion 1616(a) with a State provides that the State

8 shall furnish such information at such times with re9 spect to any individual who the State knows is un10 lawfully in the United States.’’.

11 (c) HOUSING PROGRAMS.—Title I of the United

12 States Housing Act of 1937 (42 U.S.C. 1437 et seq.), as

13 amended by section 1003, is further amended by adding

14 at the end the following new section:

15 ‘‘SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCE16 MENT AND OTHER AGENCIES.

17 ‘‘(a) NOTICE TO IMMIGRATION AND NATURALIZA18 TION SERVICE OF ILLEGAL ALIENS.—Notwithstanding

19 any other provision of law, the Secretary shall, at least

20 4 times annually and upon request of the Immigration and

21 Naturalization Service (hereafter in this subsection re22 ferred to as the ‘Service’), furnish the Service with the

23 name and address of, and other identifying information

24 on, any individual who the Secretary knows is unlawfully

25 in the United States, and shall ensure that each contract
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1 for assistance entered into under section 6 or 8 of this

2 Act with a public housing agency provides that the public

3 housing agency shall furnish such information at such

4 times with respect to any individual who the public hous5 ing agency knows is unlawfully in the United States.’’.

6 SEC. 507. PROHIBITION ON PAYMENT OF FEDERAL BENE7 FITS TO CERTAIN PERSONS.

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law and except as provided in subsection (b), Fed10 eral benefits shall not be paid or provided to any person

11 who is not a person lawfully present within the United

12 States.

13 (b) EXCEPTIONS.—Subsection (a) shall not apply

14 with respect to the following benefits:

15 (1) Emergency medical services under title XIX

16 of the Social Security Act.

17 (2) Short-term emergency disaster relief.

18 (3) Assistance or benefits under the National

19 School Lunch Act.

20 (4) Assistance or benefits under the Child Nu21 trition Act of 1966.

22 (5) Public health assistance for immunizations

23 and, if the Secretary of Health and Human Services

24 determines that it is necessary to prevent the spread
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1 of a serious communicable disease, for testing and

2 treatment of such disease.

3 (c) DEFINITIONS.—For purposes of this section:

4 (1) FEDERAL BENEFIT.—The term ‘‘Federal

5 benefit’’ means—

6 (A) the issuance of any grant, contract,

7 loan, professional license, or commercial license

8 provided by an agency of the United States or

9 by appropriated funds of the United States; and

10 (B) any retirement, welfare, Social Secu11 rity, health, disability, public housing, post-sec12 ondary education, food stamps, unemployment

13 benefit, or any other similar benefit for which

14 payments or assistance are provided by an

15 agency of the United States or by appropriated

16 funds of the United States.

17 (2) PERSON LAWFULLY PRESENT WITHIN THE

18 UNITED STATES.—The term ‘‘person lawfully

19 present within the United States’’ means a person

20 who, at the time the person applies for, receives, or

21 attempts to receive a Federal benefit, is a United

22 States citizen, a permanent resident alien, an alien

23 whose deportation has been withheld under section

24 243(h) of the Immigration and Nationality Act (8

25 U.S.C. 1253(h)), an asylee, a refugee, a parolee who
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1 has been paroled for a period of at least 1 year, a

2 national, or a national of the United States for pur3 poses of the immigration laws of the United States

4 (as defined in section 101(a)(17) of the Immigration

5 and Nationality Act (8 U.S.C. 1101(a)(17)).

6 (d) STATE OBLIGATION.—Notwithstanding any other

7 provision of law, a State that administers a program that

8 provides a Federal benefit (described in section 507(c)(1))

9 or provides State benefits pursuant to such a program

10 shall not be required to provide such benefit to a person

11 who is not a person lawfully present within the United

12 States (as defined in section 507(c)(2)) through a State

13 agency or with appropriated funds of such State.

14 (e) VERIFICATION OF ELIGIBILITY.—(1) IN GEN15 ERAL.—Not later than 18 months after the date of the

16 enactment of this Act, the Attorney General of the United

17 States, after consultation with the Secretary of Health and

18 Human Services, shall promulgate regulations requiring

19 verification that a person applying for a Federal benefit,

20 including a benefit described in section 507(b), is a person

21 lawfully present within the United States and is eligible

22 to receive such benefit. Such regulations shall, to the ex23 tent feasible, require that information requested and ex24 changed be similar in form and manner to information re-
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1 quested and exchanged under section 1137 of the Social

2 Security Act.

3 (2) STATE COMPLIANCE.—Not later than 24 months

4 after the date the regulations described in paragraph (1)

5 are adopted, a State that administers a program that pro6 vides a Federal benefit described in such paragraph shall

7 have in effect a verification system that complies with the

8 regulations.

9 (3) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated such sums as may be

11 necessary to carry out the purpose of this section.

12 (f) SEVERABILITY.—If any provision of this title or

13 the application of such provision to any person or cir14 cumstance is held to be unconstitutional, the remainder

15 of this title and the application of the provisions of such

16 to any person or circumstance shall not be affected there17 by.

18 TITLE VI—CHILD CARE

19 SEC. 601. SHORT TITLE.

20 This title may be cited as the ‘‘Child Care and Devel21 opment Block Grant Amendments Act of 1995’’.
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1 SEC. 602. AMENDMENTS TO THE CHILD CARE AND DEVEL2 OPMENT BLOCK GRANT ACT OF 1990.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

4 658B of the Child Care and Development Block Grant Act

5 of 1990 (42 U.S.C. 9858) is amended to read as follows:

6 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘There are authorized to be appropriated to carry out

8 this subchapter $1,000,000,000 for fiscal year 1996, and

9 such sums as may be necessary for each of the fiscal years

10 1997 through 2000.’’.

11 (b) LEAD AGENCY.—Section 658D(b) of the Child

12 Care and Development Block Grant Act of 1990 (42

13 U.S.C. 9858b(b)) is amended—

14 (1) in paragraph (1)—

15 (A) in subparagraph (A), by striking

16 ‘‘State’’ and inserting ‘‘governmental or non17 governmental’’; and

18 (B) in subparagraph (C), by inserting

19 ‘‘with sufficient time and Statewide distribution

20 of the notice of such hearing,’’ after ‘‘hearing in

21 the State’’; and

22 (2) in paragraph (2), by striking the second

23 sentence.

24 (c) APPLICATION AND PLAN.—Section 658E of the

25 Child Care and Development Block Grant Act of 1990 (42

26 U.S.C. 9858c) is amended—
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1 (1) in subsection (b), by striking ‘‘imple2 mented—’’ and all that follows through ‘‘plans.’’ and

3 inserting ‘‘implemented during a 2-year period.’’;

4 and

5 (2) in subsection (c)—

6 (A) in paragraph (2)—

7 (i) in subparagraph (A)—

8 (I) in clause (iii) by striking the

9 semicolon and inserting a period; and

10 (II) by striking ‘‘except’’ and all

11 that follows through ‘‘1992.’’; and

12 (ii) in subparagraph (E)—

13 (I) by striking clause (ii) and in14 serting the following new clause:

15 ‘‘(ii) the State will implement mecha16 nisms to ensure that appropriate payment

17 mechanisms exist so that proper payments

18 under this subchapter will be made to pro19 viders within the State and to permit the

20 State to furnish information to such pro21 viders.’’; and

22 (II) by adding at the end thereof

23 the following new sentence: ‘‘In lieu of

24 any licensing and regulatory require25 ments applicable under State and
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1 local law, the Secretary, in consulta2 tion with Indian tribes and tribal or3 ganizations, shall develop minimum

4 child care standards (that appro5 priately reflect tribal needs and avail6 able resources) that shall be applica7 ble to Indian tribes and tribal organi8 zation receiving assistance under this

9 subchapter.’’; and

10 (iii) by striking subparagraphs (H)

11 and (I);

12 (B) in paragraph (3)—

13 (i) in subparagraph (C)—

14 (I) in the subparagraph heading,

15 by striking ‘‘AND TO INCREASE’’ and

16 all that follows through ‘‘CARE SERV17 ICES’’;

18 (II) by striking ‘‘25 percent’’ and

19 inserting ‘‘15 percent’’; and

20 (III) by striking ‘‘and to provide

21 before-’’ and all that follows through

22 ‘‘658H)’’; and

23 (ii) by adding at the end thereof the

24 following new subparagraph:
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1 ‘‘(D) LIMITATION ON ADMINISTRATIVE

2 COSTS.—Not more than 5 percent of the aggre3 gate amount of payments received under this

4 subchapter by a State in each fiscal year may

5 be expended for administrative costs, not in6 cluding direct service costs, incurred by such

7 State to carry out all its functions and duties

8 under this subchapter.’’; and

9 (C) by adding at the end thereof the fol10 lowing new paragraph:

11 ‘‘(6) SERVICES FOR THE WORKING POOR.—The

12 State plan shall described the manner in which serv13 ices will be provided to the working poor.’’.

14 (d) CLARIFICATION OF ELIGIBLE CHILD.—Section

15 658P(4)(B) of the Child care and Development Block

16 Grant Act of 1990 (42 U.S.C. 9858n(4)(B)) is amended

17 by striking ‘‘75 percent’’ and inserting ‘‘100 percent’’.

18 (e) QUALITY.—Section 658G of the Child Care and

19 Development Block Grant Act of 1990 (42 U.S.C. 9858e)

20 is amended—

21 (1) in the matter preceding paragraph (1)—

22 (A) by striking ‘‘A State’’ and inserting

23 ‘‘(a) IN GENERAL.—A State’’;

24 (B) by striking ‘‘not less than 20 percent

25 of’’; and
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1 (C) by striking ‘‘one or more of the follow2 ing’’ and inserting ‘‘carrying out the resource

3 and referral activities described in subsection

4 (b), and for one or more of the activities de5 scribed in subsection (c).’’;

6 (2) in paragraph (1), by inserting before the pe7 riod the following: ‘‘, including providing comprehen8 sive consumer education to parents and the public,

9 referrals that honor parental choice, and activities

10 designed to improve the quality and availability of

11 child care’’;

12 (3) by striking ‘‘(1) RESOURCE AND REFERRAL

13 PROGRAMS.—Operating’’ and inserting the follow14 ing:

15 ‘‘(b) RESOURCE AND REFERRAL PROGRAMS.—The

16 activities described in this subsection are operating’’;

17 (4) by redesignating paragraphs (2) through

18 (5) as paragraphs (1) through (4), respectively;

19 (5) by inserting before paragraph (1) (as so re20 designated) the following:

21 ‘‘(c) OTHER ACTIVITIES.—The activities described in

22 this section are the following:’’; and

23 (6) by adding at the end thereof the following:
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1 ‘‘(5) BEFORE- AND AFTER-SCHOOL ACTIVI2 TIES.—Increasing the availability of before- and

3 after-school care.

4 ‘‘(6) INFANT CARE.—Increasing the availability

5 of child care for infants under the age of 18 months.

6 ‘‘(7) NONTRADITIONAL WORK HOURS.—Increas7 ing the availability of child care between the hours

8 of 5:00 p.m. and 8:00 a.m.

9 ‘‘(d) NONDISCRIMINATION.—With respect to child

10 care providers that comply with applicable State law but

11 which are otherwise not required to be licensed by the

12 State, the State, in carrying out this section, may not dis13 criminate against such a provider if such provider desires

14 to participate in resource and referral activities carried out

15 under subsection (b).’’.

16 (f) REPEAL.—Section 658H of the Child Care and

17 Development Block Grant Act of 1990 (42 U.S.C. 9858f)

18 is repealed.

19 (g) ENFORCEMENT.—Section 658I(b)(2) of the Child

20 Care and Development Block Grant Act of 1990 (42

21 U.S.C. 9858g(b)(2)) is amended—

22 (1) in the matter following clause (ii) of sub23 paragraph (A), by striking ‘‘finding and that’’ and

24 all that follows through the period and inserting

25 ‘‘finding and may impose additional program re-
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1 quirements on the State, including a requirement

2 that the State reimburse the Secretary for any funds

3 that were improperly expended for purposes prohib4 ited or not authorized by this subchapter, that the

5 Secretary deduct from the administrative portion of

6 the State allotment for the following fiscal year an

7 amount that is less than or equal to any improperly

8 expended funds, or a combination of such options.’’;

9 and

10 (2) by striking subparagraphs (B) and (C).

11 (h) REPORTS.—Section 658K of the Child Care and

12 Development Block Grant Act of 1990 (42 U.S.C. 9858i)

13 is amended—

14 (1) in the section heading, by striking ‘‘AN15 NUAL REPORT’’ and inserting ‘‘REPORTS’’; and

16 (2) in subsection (a)—

17 (A) in the subsection heading, by striking

18 ‘‘ANNUAL REPORT’’ and inserting ‘‘REPORTS’’;

19 (B) by striking ‘‘December 31, 1992, and

20 annually thereafter’’ and inserting ‘‘December

21 31, 1996, and every 2 years thereafter’’;

22 (C) in paragraph (2)—

23 (i) in subparagraph (A), by inserting

24 before the semicolon ‘‘and the types of
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1 child care programs under which such as2 sistance is provided’’;

3 (ii) by striking subparagraph (B); and

4 (iii) by redesignating subparagraphs

5 (C) and (D) as subparagraphs (B) and

6 (C), respectively;

7 (D) by striking paragraph (4);

8 (E) by redesignating paragraphs (5) and

9 (6) as paragraphs (4) and (5), respectively;

10 (F) in paragraph (4), as so redesignated,

11 by striking ‘‘and’’ at the end thereof;

12 (G) in paragraph (5), as so redesignated,

13 by adding ‘‘and’’ at the end thereof; and

14 (H) by inserting after paragraph (5), as so

15 redesignated, the following new paragraph:

16 ‘‘(6) describing the extent and manner to which

17 the resource and referral activities are being carried

18 out by the State;’’.

19 (i) REPORT BY SECRETARY.—Section 658L of the

20 Child Care and Development Block Grant Act of 1990 (42

21 U.S.C. 9858j) is amended—

22 (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;

23 (2) by striking ‘‘annually’’ and inserting ‘‘bi-an24 nually’’; and
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1 (3) by striking ‘‘Education and Labor’’ and in2 serting ‘‘Economic and Educational Opportunities’’.

3 (j) ALLOTMENTS.—Section 658O of the Child Care

4 and Development Block Grant Act of 1990 (42 U.S.C.

5 9858m) is amended—

6 (1) in subsection (c), by adding at the end

7 thereof the following new paragraph:

8 ‘‘(6) CONSTRUCTION OR RENOVATION OF FA9 CILITIES.—

10 ‘‘(A) REQUEST FOR USE OF FUNDS.—An

11 Indian tribe or tribal organization may submit

12 to the Secretary a request to use amounts pro13 vided under this subsection for construction or

14 renovation purposes.

15 ‘‘(B) DETERMINATION.—With respect to a

16 request submitted under subparagraph (A), and

17 except as provided in subparagraph (C), upon a

18 determination by the Secretary that adequate

19 facilities are not otherwise available to an In20 dian tribe or tribal organization to enable such

21 tribe or organization to carry out child care

22 programs in accordance with this subchapter,

23 and that the lack of such facilities will inhibit

24 the operation of such programs in the future,

25 the Secretary may permit the tribe or organiza-
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1 tion to use assistance provided under this sub2 section to make payments for the construction

3 or renovation of facilities that will be used to

4 carry out such programs.

5 ‘‘(C) LIMITATION.—The Secretary may not

6 permit an Indian tribe or tribal organization to

7 use amounts provided under this subsection for

8 construction or renovation if such use will re9 sult in a decrease in the level of child care serv10 ices provided by the tribe or organization as

11 compared to the level of such services provided

12 by the tribe or organization in the fiscal year

13 preceding the year for which the determination

14 under subparagraph (A) is being made.

15 ‘‘(D) UNIFORM PROCEDURES.—The Sec16 retary shall develop and implement uniform

17 procedures for the solicitation and consideration

18 of requests under this paragraph.’’; and

19 (2) in subsection (e)—

20 (A) in paragraph (1), by striking ‘‘Any’’

21 and inserting ‘‘Except as provided in paragraph

22 (4), any’’; and

23 (B) by adding at the end thereof the fol24 lowing new paragraph:
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1 ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZA2 TIONS.—Any portion of a grant or contract made to

3 an Indian tribe or tribal organization under sub4 section (c) that the Secretary determines is not

5 being used in a manner consistent with the provision

6 of this subchapter in the period for which the grant

7 or contract is made available, shall be reallocated by

8 the Secretary to other tribes or organization that

9 have submitted applications under subsection (c) in

10 proportion to the original allocations to such tribes

11 or organization.’’.

12 (k) DEFINITIONS.—Section 658P of the Child Care

13 and Development Block Grant Act of 1990 (42 U.S.C.

14 9858n) is amended—

15 (1) in paragraph (2), in the first sentence by

16 inserting ‘‘or as a deposit for child care services if

17 such a deposit is required of other children being

18 cared for by the provider’’ after ‘‘child care serv19 ices’’; and

20 (2) in paragraph (5)(B)—

21 (A) by inserting ‘‘great grandchild, sibling

22 (if the provider lives in a separate residence),’’

23 after ‘‘grandchild,’’;

24 (B) by striking ‘‘is registered and’’; and
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1 (C) by striking ‘‘State’’ and inserting ‘‘ap2 plicable’’.

3 (l) APPLICATION OF SUBCHAPTER.—The Child Care

4 and Development Block Grant Act of 1990 (42 U.S.C.

5 9858 et seq.) is amended by adding at the end thereof

6 the following new section:

7 ‘‘SEC. 658T. APPLICATION TO OTHER PROGRAMS.

8 ‘‘Notwithstanding any other provision of law, a State

9 that uses funding for child care services under any Federal

10 program shall ensure that activities carried out using such

11 funds meet the requirements, standards, and criteria of

12 this subchapter, except for the quality set-aside provisions

13 of section 658G, and the regulations promulgated under

14 this subchapter. Such sums shall be administered through

15 a uniform State plan. To the maximum extent practicable,

16 amounts provided to a State under such programs shall

17 be transferred to the lead agency and integrated into the

18 program established under this subchapter by the State.’’.

19 SEC. 603. REPEALS AND TECHNICAL AND CONFORMING

20 AMENDMENTS.

21 (a) STATE DEPENDENT CARE DEVELOPMENT

22 GRANTS ACT.—The State Dependent Care Development

23 Grants Act (42 U.S.C. 9871 et seq.) is repealed.

24 (b) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

25 ASSISTANCE ACT OF 1985.—The Child Development As-
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1 sociate Scholarship Assistance Act of 1985 (42 U.S.C.

2 10901 et seq.) is repealed.

3 (c) ADDITIONAL CONFORMING AMENDMENTS.—

4 (1) RECOMMENDED LEGISLATION.—After con5 sultation with the appropriate committees of the

6 Congress and the Director of the Office of Manage7 ment and Budget, the Secretary of Health and

8 Human Services shall prepare and submit to the

9 Congress a legislative proposal in the form of an im10 plementing bill containing technical and conforming

11 amendments to reflect the amendments and repeals

12 made by this title.

13 (2) SUBMISSION TO CONGRESS.—Not later than

14 6 months after the date of enactment of this title,

15 the Secretary of Health and Human Services shall

16 submit the implementing bill referred to under para17 graph (1).

18 TITLE VII—PROTECTION OF

19 BATTERED INDIVIDUALS

20 SEC. 701. EXEMPTION OF BATTERED INDIVIDUALS FROM

21 CERTAIN REQUIREMENTS.

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of, or amendment made by, this Act, the applicable

24 administering authority of any specified provision may ex25 empt from (or modify) the application of such provision
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1 to any individual who was battered or subjected to extreme

2 cruelty if the physical, mental, or emotional well-being of

3 the individual would be endangered by the application of

4 such provision to such individual. The applicable admin5 istering authority may take into consideration the family

6 circumstances and the counseling and other supportive

7 service needs of the individual.

8 (b) SPECIFIED PROVISIONS.—For purposes of this

9 section, the term ‘‘specified provision’’ means any require10 ment, limitation, or penalty under any of the following:

11 (1) Sections 404, 405 (a) and (b), 406 (b), (c),

12 and (d), 414(d), 453(c), 469A, and 1614(a)(1) of

13 the Social Security Act.

14 (2) Sections 5(i) and 6 (d), (j), and (n) of the

15 Food Stamp Act of 1977.

16 (3) Sections 501(a) and 502 of this Act.

17 (c) DEFINITIONS AND SPECIAL RULES.—For pur18 poses of this section—

19 (1) BATTERED OR SUBJECTED TO EXTREME

20 CRUELTY.—The term ‘‘battered or subjected to ex21 treme cruelty’’ includes, but is not limited to—

22 (A) physical acts resulting in, or threaten23 ing to result in, physical injury;

24 (B) sexual abuse, sexual activity involving

25 a dependent child, forcing the caretaker relative
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1 of a dependent child to engage in nonconsensual

2 sexual acts or activities, or threats of or at3 tempts at physical or sexual abuse;

4 (C) mental abuse; and

5 (D) neglect or deprivation of medical care.

6 (2) CALCULATION OF PARTICIPATION RATES.—

7 An individual exempted from the work requirements

8 under section 404 of the Social Security Act by rea9 son of subsection (a) shall not be included for pur10 poses of calculating the State’s participation rate

11 under such section.

12 TITLE VIII—ADOPTION

13 EXPENSES

14 SEC. 801. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

15 (a) IN GENERAL.—Subpart C of part IV of sub16 chapter A of chapter 1 of the Internal Revenue Code of

17 1986 (relating to refundable credits) is amended by redes18 ignating section 35 as section 36 and by inserting after

19 section 34 the following new section:

20 ‘‘SEC. 35. ADOPTION EXPENSES.

21 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in22 dividual, there shall be allowed as a credit against the tax

23 imposed by this subtitle for the taxable year the amount

24 of the qualified adoption expenses paid or incurred by the

25 taxpayer during such taxable year.
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1 ‘‘(b) LIMITATIONS.—

2 ‘‘(1) DOLLAR LIMITATION.—The aggregate

3 amount of qualified adoption expenses which may be

4 taken into account under subsection (a) with respect

5 to the adoption of a child shall not exceed $5,000.

6 ‘‘(2) INCOME LIMITATION.—The amount allow7 able as a credit under subsection (a) for any taxable

8 year shall be reduced (but not below zero) by an

9 amount which bears the same ratio to the amount

10 so allowable (determined without regard to this

11 paragraph but with regard to paragraph (1)) as—

12 ‘‘(A) the amount (if any) by which the tax13 payer’s adjusted gross income exceeds $60,000,

14 bears to

15 ‘‘(B) $40,000.

16 ‘‘(3) DENIAL OF DOUBLE BENEFIT.—

17 ‘‘(A) IN GENERAL.—No credit shall be al18 lowed under subsection (a) for any expense for

19 which a deduction or credit is allowable under

20 any other provision of this chapter.

21 ‘‘(B) GRANTS.—No credit shall be allowed

22 under subsection (a) for any expense to the ex23 tent that funds for such expense are received

24 under any Federal, State, or local program.
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1 ‘‘(c) QUALIFIED ADOPTION EXPENSES.—For pur2 poses of this section, the term ‘qualified adoption ex3 penses’ means reasonable and necessary adoption fees,

4 court costs, attorney fees, and other expenses which are

5 directly related to the legal and finalized adoption of a

6 child by the taxpayer and which are not incurred in viola7 tion of State or Federal law or in carrying out any surro8 gate parenting arrangement. The term ‘qualified adoption

9 expenses’ shall not include any expenses in connection

10 with the adoption by an individual of a child who is the

11 child of such individual’s spouse.

12 ‘‘(d) MARRIED COUPLES MUST FILE JOINT RE13 TURNS.—Rules similar to the rules of paragraphs (2), (3),

14 and (4) of section 21(e) shall apply for purposes of this

15 section.’’

16 (b) CONFORMING AMENDMENTS.—

17 (1) Paragraph (2) of section 1324(b) of title

18 31, United States Code, is amended by inserting be19 fore the period ‘‘, or from section 35 of such Code’’.

20 (2) The table of sections for subpart C of part

21 IV of subchapter A of chapter 1 of the Internal Rev22 enue Code of 1986 is amended by striking the last

23 item and inserting the following:

‘‘Sec. 35. Adoption expenses.

‘‘Sec. 36. Overpayments of tax.’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1995.

4 SEC. 802. EXCLUSION OF ADOPTION ASSISTANCE.

5 (a) IN GENERAL.—Part III of subchapter B of chap6 ter 1 of the Internal Revenue Code of 1986 is amended

7 by redesignating section 137 as section 138 and by insert8 ing after section 136 the following new section:

9 ‘‘SEC. 137. ADOPTION ASSISTANCE.

10 ‘‘(a) IN GENERAL.—Gross income of an employee

11 does not include employee adoption assistance benefits, or

12 military adoption assistance benefits, received by the em13 ployee with respect to the employee’s adoption of a child.

14 ‘‘(b) DEFINITIONS.—For purposes of this section—

15 ‘‘(1) EMPLOYEE ADOPTION ASSISTANCE BENE16 FITS.—The term ‘employee adoption assistance ben17 efits’ means payment by an employer of qualified

18 adoption expenses with respect to an employee’s

19 adoption of a child, or reimbursement by the em20 ployer of such qualified adoption expenses paid or

21 incurred by the employee in the taxable year.

22 ‘‘(2) EMPLOYER AND EMPLOYEE.—The terms

23 ‘employer’ and ‘employee’ have the respective mean24 ings given such terms by section 127(c).
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1 ‘‘(3) MILITARY ADOPTION ASSISTANCE BENE2 FITS.—The term ‘military adoption assistance bene3 fits’ means benefits provided under section 1052 of

4 title 10, United States Code, or section 514 of title

5 14, United States Code.

6 ‘‘(4) QUALIFIED ADOPTION EXPENSES.—

7 ‘‘(A) IN GENERAL.—The term ‘qualified

8 adoption expenses’ means reasonable and nec9 essary adoption fees, court costs, attorney fees,

10 and other expenses—

11 ‘‘(i) which are directly related to, and

12 the principal purpose of which is for, the

13 legal and finalized adoption of an eligible

14 child by the taxpayer, and

15 ‘‘(ii) which are not incurred in viola16 tion of State or Federal law or in carrying

17 out any surrogate parenting arrangement.

18 ‘‘(B) ELIGIBLE CHILD.—The term ‘eligible

19 child’ means any individual—

20 ‘‘(i) who has not attained age 18 as of

21 the time of the adoption, or

22 ‘‘(ii) who is physically or mentally in23 capable of caring for himself.

24 ‘‘(c) COORDINATION WITH OTHER PROVISIONS.—

25 The Secretary shall issue regulations to coordinate the ap-
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1 plication of this section with the application of any other

2 provision of this title which allows a credit or deduction

3 with respect to qualified adoption expenses.’’

4 (b) CLERICAL AMENDMENT.—The table of sections

5 for part III of subchapter B of chapter 1 of such Code

6 is amended by striking the item relating to section 137

7 and inserting the following new items:

‘‘Sec. 137. Adoption assistance.

‘‘Sec. 138. Cross references to other Acts.’’

8 (c) EFFECTIVE DATE.—The amendments made this

9 section shall apply to taxable years beginning after De10 cember 31, 1995.

11 SEC. 803. WITHDRAWAL FROM IRA FOR ADOPTION EX12 PENSES.

13 (a) IN GENERAL.—Subsection (d) of section 408 of the

14 Internal Revenue Code of 1986 is amended by adding at

15 the end the following new paragraph:

16 ‘‘(8) QUALIFIED ADOPTION EXPENSES.—

17 ‘‘(A) IN GENERAL.—Any amount which is

18 paid or distributed out of an individual retire19 ment plan of the taxpayer, and which would

20 (but for this paragraph) be includible in gross

21 income, shall be excluded from gross income to

22 the extent that—

23 ‘‘(i) such amount exceeds the sum

24 of—
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1 ‘‘(I) the amount excludable under

2 section 137, and

3 ‘‘(II) any amount allowable as a

4 credit under this title with respect to

5 qualified adoption expenses; and

6 ‘‘(ii) such amount does not exceed the

7 qualified adoption expenses paid or in8 curred by the taxpayer during the taxable

9 year.

10 ‘‘(B) QUALIFIED ADOPTION EXPENSES.—

11 For purposes of this paragraph, the term

12 ‘qualified adoption expenses’ has the meaning

13 given such term by section 137, except that

14 such term shall not include any expense in con15 nection with the adoption by an individual of a

16 child who is the child of such individual’s

17 spouse.’’

18 (b) EFFECTIVE DATE.—The amendment made by

19 this section shall apply to taxable years beginning after

20 December 31, 1995.

21 TITLE IX—CHILD SUPPORT

22 SEC. 900. REFERENCE TO SOCIAL SECURITY ACT.

23 Except as otherwise specifically provided, whenever in

24 this title an amendment is expressed in terms of an

25 amendment to or repeal of a section or other provision,
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1 the reference shall be considered to be made to that sec2 tion or other provision of the Social Security Act.

3 Subtitle A—Eligibility for Services;

4 Distribution of Payments

5 SEC. 901. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

6 ENFORCEMENT SERVICES.

7 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

8 U.S.C. 654) is amended—

9 (1) by striking paragraph (4) and inserting the

10 following new paragraph:

11 ‘‘(4) provide that the State will—

12 ‘‘(A) provide services relating to the estab13 lishment of paternity or the establishment,

14 modification, or enforcement of child support

15 obligations, as appropriate, under the plan with

16 respect to—

17 ‘‘(i) each child for whom (I) assist18 ance is provided under the State program

19 funded under part A of this title, (II) ben20 efits or services are provided under the

21 State program funded under part E of this

22 title, or (III) medical assistance is provided

23 under the State plan approved under title

24 XIX, unless the State agency administer25 ing the plan determines (in accordance
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1 with paragraph (29)) that it is against the

2 best interests of the child to do so; and

3 ‘‘(ii) any other child, if an individual

4 applies for such services with respect to

5 the child; and

6 ‘‘(B) enforce any support obligation estab7 lished with respect to—

8 ‘‘(i) a child with respect to whom the

9 State provides services under the plan; or

10 ‘‘(ii) the custodial parent of such a

11 child.’’; and

12 (2) in paragraph (6)—

13 (A) by striking ‘‘provide that’’ and insert14 ing ‘‘provide that—’’;

15 (B) by striking subparagraph (A) and in16 serting the following new subparagraph:

17 ‘‘(A) services under the plan shall be made

18 available to nonresidents on the same terms as

19 to residents;’’;

20 (C) in subparagraph (B), by inserting ‘‘on

21 individuals not receiving assistance under any

22 State program funded under part A’’ after

23 ‘‘such services shall be imposed’’;

24 (D) in each of subparagraphs (B), (C),

25 (D), and (E)—
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1 (i) by indenting the subparagraph in

2 the same manner as, and aligning the left

3 margin of the subparagraph with the left

4 margin of, the matter inserted by subpara5 graph (B) of this paragraph; and

6 (ii) by striking the final comma and

7 inserting a semicolon; and

8 (E) in subparagraph (E), by indenting

9 each of clauses (i) and (ii) 2 additional ems.

10 (b) CONTINUATION OF SERVICES FOR FAMILIES

11 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

12 PROGRAM FUNDED UNDER PART A.—Section 454 (42

13 U.S.C. 654) is amended—

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

15 (23);

16 (2) by striking the period at the end of para17 graph (24) and inserting ‘‘; and’’; and

18 (3) by adding after paragraph (24) the follow19 ing new paragraph:

20 ‘‘(25) provide that when a family with respect

21 to which services are provided under the plan ceases

22 to receive assistance under the State program fund23 ed under part A, the State shall provide appropriate

24 notice to the family and continue to provide such

25 services, subject to the same conditions and on the
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1 same basis as in the case of individuals to whom

2 services are furnished under this section, except that

3 an application or other request to continue services

4 shall not be required of such a family and paragraph

5 (6)(B) shall not apply to the family.’’.

6 (c) CONFORMING AMENDMENTS.—

7 (1) Section 452(b) (42 U.S.C. 652(b)) is

8 amended by striking ‘‘454(6)’’ and inserting

9 ‘‘454(4)’’.

10 (2) Section 452(g)(2)(A) (42 U.S.C.

11 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

12 place it appears and inserting ‘‘454(4)(A)(ii)’’.

13 (3) Section 466(a)(3)(B) (42 U.S.C.

14 666(a)(3)(B)) is amended by striking ‘‘in the case of

15 overdue support which a State has agreed to collect

16 under section 454(6)’’ and inserting ‘‘in any other

17 case’’.

18 (4) Section 466(e) (42 U.S.C. 666(e)) is

19 amended by striking ‘‘paragraph (4) or (6) of sec20 tion 454’’ and inserting ‘‘section 454(4)’’.

21 SEC. 902. DISTRIBUTION OF CHILD SUPPORT COLLEC22 TIONS.

23 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

24 amended to read as follows:
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1 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

2 ‘‘(a) IN GENERAL.—An amount collected on behalf

3 of a family as support by a State pursuant to a plan ap4 proved under this part shall be distributed as follows:

5 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

6 case of a family receiving assistance from the State,

7 the State shall—

8 ‘‘(A) retain, or distribute to the family, the

9 State share of the amount so collected; and

10 ‘‘(B) pay to the Federal Government the

11 Federal share of the amount so collected.

12 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS13 SISTANCE.—In the case of a family that formerly re14 ceived assistance from the State:

15 ‘‘(A) CURRENT SUPPORT PAYMENTS.—The

16 State shall, with regard to amounts collected

17 which represent amounts owed for the current

18 month, distribute the amounts so collected to

19 the family.

20 ‘‘(B) PAYMENT OF ARREARAGES.—The

21 State shall, with regard to amounts collected

22 which exceed amounts owed for the current

23 month, distribute the amounts so collected as

24 follows:

25 ‘‘(i) DISTRIBUTION TO THE FAMILY

26 TO SATISFY ARREARAGES THAT ACCRUED
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1 AFTER THE FAMILY RECEIVED ASSIST2 ANCE.—The State shall distribute the

3 amount so collected to the family to the ex4 tent necessary to satisfy any support ar5 rearages with respect to the family that ac6 crued after the family stopped receiving as7 sistance from the State.

8 ‘‘(ii) DISTRIBUTION TO THE FAMILY

9 TO SATISFY ARREARAGES THAT ACCRUED

10 BEFORE OR WHILE THE FAMILY RECEIVED

11 ASSISTANCE TO THE EXTENT PAYMENTS

12 EXCEED ASSISTANCE RECEIVED.—In the

13 case of arrearages of support obligations

14 with respect to the family that were as15 signed to the State making or receiving the

16 collection, as a condition of receiving as17 sistance from the State, and which accrued

18 before or while the family received such as19 sistance, the State may retain all or a part

20 of the State share and if the State does so

21 retain, shall retain and pay to the Federal

22 Government the Federal share of amounts

23 so collected, to the extent the amount so

24 retained does not exceed the amount of as-
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1 sistance provided to the family by the

2 State.

3 ‘‘(iii) DISTRIBUTION OF THE REMAIN4 DER TO THE FAMILY.—To the extent that

5 neither clause (i) nor clause (ii) applies to

6 the amount so collected, the State shall

7 distribute the amount to the family.

8 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST9 ANCE.—In the case of any other family, the State

10 shall distribute the amount so collected to the fam11 ily.

12 ‘‘(4) FAMILIES UNDER CERTAIN AGREE13 MENTS.—In the case of a family receiving assistance

14 from an Indian tribe, distribute the amount so col15 lected pursuant to an agreement entered into pursu16 ant to a State plan under section 454(32).

17 ‘‘(b) TRANSITION RULE.—Any rights to support obli18 gations which were assigned to a State as a condition of

19 receiving assistance from the State under part A before

20 the effective date of the Work Opportunity Act of 1995

21 shall remain assigned after such date.

22 ‘‘(c) DEFINITIONS.—As used in subsection (a):

23 ‘‘(1) ASSISTANCE.—The term ‘assistance from

24 the State’ means—
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1 ‘‘(A) assistance under the State program

2 funded under part A or under the State plan

3 approved under part A of this title (as in effect

4 before October 1, 1995); or

5 ‘‘(B) benefits under the State plan ap6 proved under part E of this title.

7 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

8 share’ means, with respect to an amount collected by

9 the State to satisfy a support obligation owed to a

10 family for a time period—

11 ‘‘(A) the greatest Federal medical assist12 ance percentage in effect for the State for fiscal

13 year 1995 or any succeeding fiscal year; or

14 ‘‘(B) if support is not owed to the family

15 for any month for which the family received aid

16 to families with dependent children under the

17 State plan approved under part A of this title

18 (as in effect before October 1, 1995), the Fed19 eral reimbursement percentage for the fiscal

20 year in which the time period occurs.

21 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT22 AGE.—The term ‘Federal medical assistance per23 centage’ means—

24 ‘‘(A) the Federal medical assistance per25 centage (as defined in section 1905(b)) in the
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1 case of any State for which subparagraph (B)

2 does not apply; or

3 ‘‘(B) the Federal medical assistance per4 centage (as defined in section 1118), in the case

5 of Puerto Rico, the Virgin Islands, Guam, and

6 American Samoa.

7 ‘‘(4) FEDERAL REIMBURSEMENT PERCENT8 AGE.—The term ‘Federal reimbursement percentage’

9 means, with respect to a fiscal year—

10 ‘‘(A) the total amount paid to the State

11 under section 403 for the fiscal year; divided by

12 ‘‘(B) the total amount expended by the

13 State to carry out the State program under

14 part A during the fiscal year.

15 ‘‘(5) STATE SHARE.—The term ‘State share’

16 means 100 percent minus the Federal share.’’.

17 (b) CONFORMING AMENDMENT.—Section 464(a)(1)

18 (42 U.S.C. 664(a)(1)) is amended by striking ‘‘section

19 457(b)(4) or (d)(3)’’ and inserting ‘‘section 457’’.

20 (c) CLERICAL AMENDMENTS.—Section 454 (42

21 U.S.C. 654) is amended—

22 (1) in paragraph (11)—

23 (A) by striking ‘‘(11)’’ and inserting

24 ‘‘(11)(A)’’; and
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1 (B) by inserting after the semicolon ‘‘and’’;

2 and

3 (2) by redesignating paragraph (12) as sub4 paragraph (B) of paragraph (11).

5 (d) EFFECTIVE DATE.—

6 (1) GENERAL RULE.—Except as provided in

7 paragraphs (2) and (3), the amendment made by

8 subsection (a) shall become effective on October 1,

9 1999.

10 (2) EARLIER EFFECTIVE DATE FOR RULES RE11 LATING TO DISTRIBUTION OF SUPPORT COLLECTED

12 FOR FAMILIES RECEIVING ASSISTANCE.—Section

13 457(a)(1) of the Social Security Act, as added by

14 the amendment made by subsection (a), shall be15 come effective on October 1, 1995.

16 (3) SPECIAL RULE.—A State may elect to have

17 the amendment made by subsection (a) become ef18 fective on a date earlier than October 1, 1999, which

19 date shall coincide with the operation of the single

20 statewide automated data processing and informa21 tion retrieval system required by section 454A of the

22 Social Security Act (as added by section 944(a)(2))

23 and the State disbursement unit required by section

24 454B of the Social Security Act (as added by section

25 912(b)), and the existence of State requirements for
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1 assignment of support as a condition of eligibility for

2 assistance under part A of the Social Security Act

3 (as added by title I).

4 (4) CLERICAL AMENDMENTS.—The amend5 ments made by subsection (b) shall become effective

6 on October 1, 1995.

7 SEC. 903. RIGHTS TO NOTIFICATION AND HEARINGS.

8 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

9 amended by section 902(b), is amended by inserting after

10 paragraph (11) the following new paragraph:

11 ‘‘(12) establish procedures to provide that—

12 ‘‘(A) individuals who are applying for or

13 receiving services under this part, or are parties

14 to cases in which services are being provided

15 under this part—

16 ‘‘(i) receive notice of all proceedings in

17 which support obligations might be estab18 lished or modified; and

19 ‘‘(ii) receive a copy of any order estab20 lishing or modifying a child support obliga21 tion, or (in the case of a petition for modi22 fication) a notice of determination that

23 there should be no change in the amount

24 of the child support award, within 14 days
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1 after issuance of such order or determina2 tion; and

3 ‘‘(B) individuals applying for or receiving

4 services under this part have access to a fair

5 hearing or other formal complaint procedure

6 that meets standards established by the Sec7 retary and ensures prompt consideration and

8 resolution of complaints (but the resort to such

9 procedure shall not stay the enforcement of any

10 support order);’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall become effective on October 1, 1997.

13 SEC. 904. PRIVACY SAFEGUARDS.

14 (a) STATE PLAN REQUIREMENT.—Section 454 (42

15 U.S.C. 654), as amended by section 901(b), is amended—

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

17 (24);

18 (2) by striking the period at the end of para19 graph (25) and inserting ‘‘; and’’; and

20 (3) by adding after paragraph (25) the follow21 ing new paragraph:

22 ‘‘(26) will have in effect safeguards, applicable

23 to all confidential information handled by the State

24 agency, that are designed to protect the privacy

25 rights of the parties, including—
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1 ‘‘(A) safeguards against unauthorized use

2 or disclosure of information relating to proceed3 ings or actions to establish paternity, or to es4 tablish or enforce support;

5 ‘‘(B) prohibitions against the release of in6 formation on the whereabouts of 1 party to an7 other party against whom a protective order

8 with respect to the former party has been en9 tered; and

10 ‘‘(C) prohibitions against the release of in11 formation on the whereabouts of 1 party to an12 other party if the State has reason to believe

13 that the release of the information may result

14 in physical or emotional harm to the former

15 party.’’.

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) shall become effective on October 1, 1997.

18 Subtitle B—Locate and Case

19 Tracking

20 SEC. 911. STATE CASE REGISTRY.

21 Section 454A, as added by section 944(a)(2), is

22 amended by adding at the end the following new sub23 sections:

24 ‘‘(e) STATE CASE REGISTRY.—
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1 ‘‘(1) CONTENTS.—The automated system re2 quired by this section shall include a registry (which

3 shall be known as the ‘State case registry’) that con4 tains records with respect to—

5 ‘‘(A) each case in which services are being

6 provided by the State agency under the State

7 plan approved under this part; and

8 ‘‘(B) each support order established or

9 modified in the State on or after October 1,

10 1998.

11 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

12 State case registry may be established by linking

13 local case registries of support orders through an

14 automated information network, subject to this sec15 tion.

16 ‘‘(3) USE OF STANDARDIZED DATA ELE17 MENTS.—Such records shall use standardized data

18 elements for both parents (such as names, social se19 curity numbers and other uniform identification

20 numbers, dates of birth, and case identification

21 numbers), and contain such other information (such

22 as on-case status) as the Secretary may require.

23 ‘‘(4) PAYMENT RECORDS.—Each case record in

24 the State case registry with respect to which services

25 are being provided under the State plan approved
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1 under this part and with respect to which a support

2 order has been established shall include a record

3 of—

4 ‘‘(A) the amount of monthly (or other peri5 odic) support owed under the order, and other

6 amounts (including arrearages, interest or late

7 payment penalties, and fees) due or overdue

8 under the order;

9 ‘‘(B) any amount described in subpara10 graph (A) that has been collected;

11 ‘‘(C) the distribution of such collected

12 amounts;

13 ‘‘(D) the birth date of any child for whom

14 the order requires the provision of support; and

15 ‘‘(E) the amount of any lien imposed with

16 respect to the order pursuant to section

17 466(a)(4).

18 ‘‘(5) UPDATING AND MONITORING.—The State

19 agency operating the automated system required by

20 this section shall promptly establish and maintain,

21 and regularly monitor, case records in the State case

22 registry with respect to which services are being pro23 vided under the State plan approved under this part,

24 on the basis of—
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1 ‘‘(A) information on administrative actions

2 and administrative and judicial proceedings and

3 orders relating to paternity and support;

4 ‘‘(B) information obtained from compari5 son with Federal, State, or local sources of in6 formation;

7 ‘‘(C) information on support collections

8 and distributions; and

9 ‘‘(D) any other relevant information.

10 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS11 CLOSURES OF INFORMATION.—The State shall use the

12 automated system required by this section to extract infor13 mation from (at such times, and in such standardized for14 mat or formats, as may be required by the Secretary), to

15 share and compare information with, and to receive infor16 mation from, other data bases and information compari17 son services, in order to obtain (or provide) information

18 necessary to enable the State agency (or the Secretary or

19 other State or Federal agencies) to carry out this part,

20 subject to section 6103 of the Internal Revenue Code of

21 1986. Such information comparison activities shall include

22 the following:

23 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP24 PORT ORDERS.—Furnishing to the Federal Case

25 Registry of Child Support Orders established under
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1 section 453(h) (and update as necessary, with infor2 mation including notice of expiration of orders) the

3 minimum amount of information on child support

4 cases recorded in the State case registry that is nec5 essary to operate the registry (as specified by the

6 Secretary in regulations).

7 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

8 Exchanging information with the Federal Parent

9 Locator Service for the purposes specified in section

10 453.

11 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

12 MEDICAID AGENCIES.—Exchanging information with

13 State agencies (of the State and of other States) ad14 ministering programs funded under part A, pro15 grams operated under State plans under title XIX,

16 and other programs designated by the Secretary, as

17 necessary to perform State agency responsibilities

18 under this part and under such programs.

19 ‘‘(4) INTRASTATE AND INTERSTATE INFORMA20 TION COMPARISONS.—Exchanging information with

21 other agencies of the State, agencies of other States,

22 and interstate information networks, as necessary

23 and appropriate to carry out (or assist other States

24 to carry out) the purposes of this part.’’.
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1 SEC. 912. COLLECTION AND DISBURSEMENT OF SUPPORT

2 PAYMENTS.

3 (a) STATE PLAN REQUIREMENT.—Section 454 (42

4 U.S.C. 654), as amended by sections 901(b) and 904(a),

5 is amended—

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

7 (25);

8 (2) by striking the period at the end of para9 graph (26) and inserting ‘‘; and’’; and

10 (3) by adding after paragraph (26) the follow11 ing new paragraph:

12 ‘‘(27) provide that, on and after October 1,

13 1998, the State agency will—

14 ‘‘(A) operate a State disbursement unit in

15 accordance with section 454B; and

16 ‘‘(B) have sufficient State staff (consisting

17 of State employees), and (at State option) pri18 vate or governmental contractors reporting di19 rectly to the State agency, to—

20 ‘‘(i) provide automated monitoring

21 and enforcement of support collections

22 through the unit (including carrying out

23 the automated data processing responsibil24 ities described in section 454A(g)); and

25 ‘‘(ii) take the actions described in sec26 tion 466(c)(1) in appropriate cases.’’.
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1 (b) ESTABLISHMENT OF STATE DISBURSEMENT

2 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

3 amended by section 944(a)(2), is amended by inserting

4 after section 454A the following new section:

5 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP6 PORT PAYMENTS.

7 ‘‘(a) STATE DISBURSEMENT UNIT.—

8 ‘‘(1) IN GENERAL.—In order for a State to

9 meet the requirements of this section, the State

10 agency must establish and operate a unit (which

11 shall be known as the ‘State disbursement unit’) for

12 the collection and disbursement of payments under

13 support orders in all cases being enforced by the

14 State pursuant to section 454(4).

15 ‘‘(2) OPERATION.—The State disbursement

16 unit shall be operated—

17 ‘‘(A) directly by the State agency (or 2 or

18 more State agencies under a regional coopera19 tive agreement), or (to the extent appropriate)

20 by a contractor responsible directly to the State

21 agency; and

22 ‘‘(B) in coordination with the automated

23 system established by the State pursuant to

24 section 454A.
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1 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

2 UNITS.—The State disbursement unit may be estab3 lished by linking local disbursement units through

4 an automated information network, subject to this

5 section. The Secretary must agree that the system

6 will not cost more nor take more time to establish

7 or operate than a centralized system. In addition,

8 employers shall be given 1 location to which income

9 withholding is sent.

10 ‘‘(b) REQUIRED PROCEDURES.—The State disburse11 ment unit shall use automated procedures, electronic proc12 esses, and computer-driven technology to the maximum

13 extent feasible, efficient, and economical, for the collection

14 and disbursement of support payments, including proce15 dures—

16 ‘‘(1) for receipt of payments from parents, em17 ployers, and other States, and for disbursements to

18 custodial parents and other obligees, the State agen19 cy, and the agencies of other States;

20 ‘‘(2) for accurate identification of payments;

21 ‘‘(3) to ensure prompt disbursement of the cus22 todial parent’s share of any payment; and

23 ‘‘(4) to furnish to any parent, upon request,

24 timely information on the current status of support
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1 payments under an order requiring payments to be

2 made by or to the parent.

3 ‘‘(c) TIMING OF DISBURSEMENTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), the State disbursement unit shall distrib6 ute all amounts payable under section 457(a) within

7 2 business days after receipt from the employer or

8 other source of periodic income, if sufficient infor9 mation identifying the payee is provided.

10 ‘‘(2) PERMISSIVE RETENTION OF ARREAR11 AGES.—The State disbursement unit may delay the

12 distribution of collections toward arrearages until

13 the resolution of any timely appeal with respect to

14 such arrearages.

15 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec16 tion, the term ‘business day’ means a day on which State

17 offices are open for regular business.’’.

18 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

19 added by section 944(a)(2) and as amended by section

20 911, is amended by adding at the end the following new

21 subsection:

22 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

23 PAYMENTS.—

24 ‘‘(1) IN GENERAL.—The State shall use the

25 automated system required by this section, to the
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1 maximum extent feasible, to assist and facilitate the

2 collection and disbursement of support payments

3 through the State disbursement unit operated under

4 section 454B, through the performance of functions,

5 including, at a minimum—

6 ‘‘(A) transmission of orders and notices to

7 employers (and other debtors) for the withhold8 ing of wages and other income—

9 ‘‘(i) within 2 business days after re10 ceipt from a court, another State, an em11 ployer, the Federal Parent Locator Service,

12 or another source recognized by the State

13 of notice of, and the income source subject

14 to, such withholding; and

15 ‘‘(ii) using uniform formats prescribed

16 by the Secretary;

17 ‘‘(B) ongoing monitoring to promptly iden18 tify failures to make timely payment of support;

19 and

20 ‘‘(C) automatic use of enforcement proce21 dures (including procedures authorized pursu22 ant to section 466(c)) where payments are not

23 timely made.

24 ‘‘(2) BUSINESS DAY DEFINED.—As used in

25 paragraph (1), the term ‘business day’ means a day
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1 on which State offices are open for regular busi2 ness.’’.

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

4 this section shall become effective on October 1, 1998.

5 SEC. 913. STATE DIRECTORY OF NEW HIRES.

6 (a) STATE PLAN REQUIREMENT.—Section 454 (42

7 U.S.C. 654), as amended by sections 901(b), 904(a) and

8 912(a), is amended—

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

10 (26);

11 (2) by striking the period at the end of para12 graph (27) and inserting ‘‘; and’’; and

13 (3) by adding after paragraph (27) the follow14 ing new paragraph:

15 ‘‘(28) provide that, on and after October 1,

16 1997, the State will operate a State Directory of

17 New Hires in accordance with section 453A.’’.

18 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

19 title IV (42 U.S.C. 651–669) is amended by inserting

20 after section 453 the following new section:

21 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

22 ‘‘(a) ESTABLISHMENT.—

23 ‘‘(1) IN GENERAL.—Not later than October 1,

24 1997, each State shall establish an automated direc25 tory (to be known as the ‘State Directory of New
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1 Hires’) which shall contain information supplied in

2 accordance with subsection (b) by employers on each

3 newly hired employee.

4 ‘‘(2) DEFINITIONS.—As used in this section:

5 ‘‘(A) EMPLOYEE.—The term ‘employee’—

6 ‘‘(i) means an individual who is an

7 employee within the meaning of chapter 24

8 of the Internal Revenue Code of 1986; and

9 ‘‘(ii) does not include an employee of

10 a Federal or State agency performing in11 telligence or counterintelligence functions,

12 if the head of such agency has determined

13 that reporting pursuant to paragraph (1)

14 with respect to the employee could endan15 ger the safety of the employee or com16 promise an ongoing investigation or intel17 ligence mission.

18 ‘‘(B) EMPLOYER.—The term ‘employer’ in19 cludes—

20 ‘‘(i) any governmental entity, and

21 ‘‘(ii) any labor organization.

22 ‘‘(C) LABOR ORGANIZATION.—The term

23 ‘labor organization’ shall have the meaning

24 given such term in section 2(5) of the National

25 Labor Relations Act, and includes any entity
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1 (also known as a ‘hiring hall’) which is used by

2 the organization and an employer to carry out

3 requirements described in section 8(f)(3) of

4 such Act of an agreement between the organiza5 tion and the employer.

6 ‘‘(b) EMPLOYER INFORMATION.—

7 ‘‘(1) REPORTING REQUIREMENT.—

8 ‘‘(A) IN GENERAL.—Except as provided in

9 subparagraphs (B) and (C), each employer shall

10 furnish to the Directory of New Hires of the

11 State in which a newly hired employee works, a

12 report that contains the name, address, and so13 cial security number of the employee, and the

14 name of, and identifying number assigned

15 under section 6109 of the Internal Revenue

16 Code of 1986 to, the employer.

17 ‘‘(B) MULTISTATE EMPLOYERS.—An em18 ployer that has employees who are employed in

19 2 or more States and that transmits reports

20 magnetically or electronically may comply with

21 subparagraph (A) by designating 1 State in

22 which such employer has employees to which it

23 will transmit the report described in subpara24 graph (A), and transmitting such report to such

25 State. Any employer that transmits reports pur-
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1 suant to this subparagraph shall notify the Sec2 retary in writing as to which State such em3 ployer designates for the purpose of sending re4 ports.

5 ‘‘(C) FEDERAL GOVERNMENT EMPLOY6 ERS.—Any department, agency, or instrumen7 tality of the United States shall comply with

8 subparagraph (A) by transmitting the report

9 described in subparagraph (A) to the National

10 Directory of New Hires established pursuant to

11 section 453.

12 ‘‘(2) TIMING OF REPORT.—The report required

13 by paragraph (1) with respect to an employee shall

14 be made not later than the later of—

15 ‘‘(A) 30 days after the date the employer

16 hires the employee; or

17 ‘‘(B) in the case of an employer that re18 ports by magnetic or electronic means, the 1st

19 business day of the week following the date on

20 which the employee 1st receives wages or other

21 compensation from the employer.

22 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re23 port required by subsection (b) shall be made on a

24 W–4 form and may be transmitted by 1st class mail, mag25 netically, or electronically.
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1 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

2 EMPLOYERS.—The State shall have the option to set a

3 State civil money penalty which shall be less than—

4 ‘‘(1) $25; or

5 ‘‘(2) $500 if, under State law, the failure is the

6 result of a conspiracy between the employer and the

7 employee to not supply the required report or to

8 supply a false or incomplete report.

9 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor10 mation shall be entered into the data base maintained by

11 the State Directory of New Hires within 5 business days

12 of receipt from an employer pursuant to subsection (b).

13 ‘‘(f) INFORMATION COMPARISONS.—

14 ‘‘(1) IN GENERAL.—Not later than October 1,

15 1998, an agency designated by the State shall, di16 rectly or by contract, conduct automated compari17 sons of the social security numbers reported by em18 ployers pursuant to subsection (b) and the social se19 curity numbers appearing in the records of the State

20 case registry for cases being enforced under the

21 State plan.

22 ‘‘(2) NOTICE OF MATCH.—When an information

23 comparison conducted under paragraph (1) reveals a

24 match with respect to the social security number of

25 an individual required to provide support under a
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1 support order, the State Directory of New Hires

2 shall provide the agency administering the State

3 plan approved under this part of the appropriate

4 State with the name, address, and social security

5 number of the employee to whom the social security

6 number is assigned, and the name of, and identify7 ing number assigned under section 6109 of the In8 ternal Revenue Code of 1986 to, the employer.

9 ‘‘(g) TRANSMISSION OF INFORMATION.—

10 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

11 NOTICES TO EMPLOYERS.—Within 2 business days

12 after the date information regarding a newly hired

13 employee is entered into the State Directory of New

14 Hires, the State agency enforcing the employee’s

15 child support obligation shall transmit a notice to

16 the employer of the employee directing the employer

17 to withhold from the wages of the employee an

18 amount equal to the monthly (or other periodic)

19 child support obligation of the employee, unless the

20 employee’s wages are not subject to withholding pur21 suant to section 466(b)(3).

22 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC23 TORY OF NEW HIRES.—

24 ‘‘(A) NEW HIRE INFORMATION.—Within 2

25 business days after the date information re-
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1 garding a newly hired employee is entered into

2 the State Directory of New Hires, the State Di3 rectory of New Hires shall furnish the informa4 tion to the National Directory of New Hires.

5 ‘‘(B) WAGE AND UNEMPLOYMENT COM6 PENSATION INFORMATION.—The State Direc7 tory of New Hires shall, on a quarterly basis,

8 furnish to the National Directory of New Hires

9 extracts of the reports required under section

10 303(a)(6) to be made to the Secretary of Labor

11 concerning the wages and unemployment com12 pensation paid to individuals, by such dates, in

13 such format, and containing such information

14 as the Secretary of Health and Human Services

15 shall specify in regulations.

16 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

17 subsection, the term ‘business day’ means a day on

18 which State offices are open for regular business.

19 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

20 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI21 GORS.—The agency administering the State plan ap22 proved under this part shall use information received

23 pursuant to subsection (f)(2) to locate individuals

24 for purposes of establishing paternity and establish-
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1 ing, modifying, and enforcing child support obliga2 tions.

3 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER4 TAIN PROGRAMS.—A State agency responsible for

5 administering a program specified in section 1137(b)

6 shall have access to information reported by employ7 ers pursuant to subsection (b) of this section for

8 purposes of verifying eligibility for the program.

9 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU10 RITY AND WORKERS’ COMPENSATION.—State agen11 cies operating employment security and workers’

12 compensation programs shall have access to informa13 tion reported by employers pursuant to subsection

14 (b) for the purposes of administering such pro15 grams.’’.

16 (c) QUARTERLY WAGE REPORTING.—Section

17 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

18 (1) by inserting ‘‘(including State and local gov19 ernmental entities)’’ after ‘‘employers’’; and

20 (2) by inserting ‘‘, and except that no report

21 shall be filed with respect to an employee of a State

22 agency performing intelligence or counterintelligence

23 functions, if the head of such agency has determined

24 that filing such a report could endanger the safety
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1 of the employee or compromise an ongoing investiga2 tion or intelligence mission’’ after ‘‘paragraph (2)’’.

3 SEC. 914. AMENDMENTS CONCERNING INCOME WITHHOLD4 ING.

5 (a) MANDATORY INCOME WITHHOLDING.—

6 (1) IN GENERAL.—Section 466(a)(1) (42

7 U.S.C. 666(a)(1)) is amended to read as follows:

8 ‘‘(1)(A) Procedures described in subsection (b)

9 for the withholding from income of amounts payable

10 as support in cases subject to enforcement under the

11 State plan.

12 ‘‘(B) Procedures under which the wages of a

13 person with a support obligation imposed by a sup14 port order issued (or modified) in the State before

15 October 1, 1996, if not otherwise subject to with16 holding under subsection (b), shall become subject to

17 withholding as provided in subsection (b) if arrear18 ages occur, without the need for a judicial or admin19 istrative hearing.’’.

20 (2) CONFORMING AMENDMENTS.—

21 (A) Section 466(b) (42 U.S.C. 666(b)) is

22 amended in the matter preceding paragraph

23 (1), by striking ‘‘subsection (a)(1)’’ and insert24 ing ‘‘subsection (a)(1)(A)’’.
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1 (B) Section 466(b)(4) (42 U.S.C.

2 666(b)(4)) is amended to read as follows:

3 ‘‘(4)(A) Such withholding must be carried out

4 in full compliance with all procedural due process re5 quirements of the State, and the State must send

6 notice to each absent parent to whom paragraph (1)

7 applies—

8 ‘‘(i) that the withholding has commenced;

9 and

10 ‘‘(ii) of the procedures to follow if the ab11 sent parent desires to contest such withholding

12 on the grounds that the withholding or the

13 amount withheld is improper due to a mistake

14 of fact.

15 ‘‘(B) The notice under subparagraph (A) shall

16 include the information provided to the employer

17 under paragraph (6)(A).’’.

18 (C) Section 466(b)(5) (42 U.S.C.

19 666(b)(5)) is amended by striking all that fol20 lows ‘‘administered by’’ and inserting ‘‘the

21 State through the State disbursement unit es22 tablished pursuant to section 454B, in accord23 ance with the requirements of section 454B.’’.

24 (D) Section 466(b)(6)(A) (42 U.S.C.

25 666(b)(6)(A)) is amended—
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1 (i) in clause (i), by striking ‘‘to the

2 appropriate agency’’ and all that follows

3 and inserting ‘‘to the State disbursement

4 unit within 2 business days after the date

5 the amount would (but for this subsection)

6 have been paid or credited to the employee,

7 for distribution in accordance with this

8 part.’’;

9 (ii) in clause (ii), by inserting ‘‘be in

10 a standard format prescribed by the Sec11 retary, and’’ after ‘‘shall’’; and

12 (iii) by adding at the end the follow13 ing new clause:

14 ‘‘(iii) As used in this subparagraph, the term

15 ‘business day’ means a day on which State offices

16 are open for regular business.’’.

17 (E) Section 466(b)(6)(D) (42 U.S.C.

18 666(b)(6)(D)) is amended by striking ‘‘any em19 ployer’’ and all that follows and inserting ‘‘any

20 employer who—

21 ‘‘(i) discharges from employment, refuses

22 to employ, or takes disciplinary action against

23 any absent parent subject to wage withholding

24 required by this subsection because of the exist25 ence of such withholding and the obligations or
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1 additional obligations which it imposes upon the

2 employer; or

3 ‘‘(ii) fails to withhold support from wages,

4 or to pay such amounts to the State disburse5 ment unit in accordance with this subsection.’’.

6 (F) Section 466(b) (42 U.S.C. 666(b)) is

7 amended by adding at the end the following

8 new paragraph:

9 ‘‘(11) Procedures under which the agency ad10 ministering the State plan approved under this part

11 may execute a withholding order through electronic

12 means and without advance notice to the obligor.’’.

13 (b) CONFORMING AMENDMENT.—Section 466(c) (42

14 U.S.C. 666(c)) is repealed.

15 SEC. 915. LOCATOR INFORMATION FROM INTERSTATE NET16 WORKS.

17 Section 466(a) (42 U.S.C. 666(a)) is amended by

18 adding at the end the following new paragraph:

19 ‘‘(12) Procedures to ensure that all Federal and

20 State agencies conducting activities under this part

21 have access to any system used by the State to lo22 cate an individual for purposes relating to motor ve23 hicles or law enforcement.’’.
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1 SEC. 916. 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, or enforcing child visitation orders—

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 or provide child visitation rights;

15 ‘‘(B) against whom such an obligation is

16 sought;

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;

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 ‘‘(3) information on the type, status, location,

2 and amount of any assets of, or debts owed by or

3 to, any such individual.’’; and

4 (2) in subsection (b), in the matter preceding

5 paragraph (1), by striking ‘‘social security’’ and all

6 that follows through ‘‘absent parent’’ and inserting

7 ‘‘information described in subsection (a)’’.

8 (b) AUTHORIZED PERSON FOR INFORMATION RE9 GARDING VISITATION RIGHTS.—Section 453(c) (42

10 U.S.C. 653(c)) is amended—

11 (1) in paragraph (1), by striking ‘‘support’’ and

12 inserting ‘‘support or to seek to enforce orders pro13 viding child visitation rights’’;

14 (2) in paragraph (2), by striking ‘‘, or any

15 agent of such court; and’’ and inserting ‘‘or to issue

16 an order against a resident parent for visitation

17 rights, or any agent of such court;’’;

18 (3) by striking the period at the end of para19 graph (3) and inserting ‘‘; and’’; and

20 (4) by adding at the end the following new

21 paragraph:

22 ‘‘(4) the absent parent, only with regard to a

23 court order against a resident parent for child visita24 tion rights.’’.
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1 (c) REIMBURSEMENT FOR INFORMATION FROM FED2 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

3 653(e)(2)) is amended in the 4th sentence by inserting

4 ‘‘in an amount which the Secretary determines to be rea5 sonable payment for the information exchange (which

6 amount shall not include payment for the costs of obtain7 ing, compiling, or maintaining the information)’’ before

8 the period.

9 (d) REIMBURSEMENT FOR REPORTS BY STATE

10 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

11 adding at the end the following new subsection:

12 ‘‘(g) The Secretary may reimburse Federal and State

13 agencies for the costs incurred by such entities in furnish14 ing information requested by the Secretary under this sec15 tion in an amount which the Secretary determines to be

16 reasonable payment for the information exchange (which

17 amount shall not include payment for the costs of obtain18 ing, compiling, or maintaining the information).’’.

19 (e) TECHNICAL AMENDMENTS.—

20 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

21 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

22 653(b), 663(a), 663(e), and 663(f)) are each amend23 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

24 place such term appears.
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1 (2) Section 453 (42 U.S.C. 653) is amended in

2 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR3 ENT’’.

4 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

5 653), as amended by subsection (d) of this section, is

6 amended by adding at the end the following new sub7 section:

8 ‘‘(h)(1) Not later than October 1, 1998, in order to

9 assist States in administering programs under State plans

10 approved under this part and programs funded under part

11 A, and for the other purposes specified in this section, the

12 Secretary shall establish and maintain in the Federal Par13 ent Locator Service an automated registry (which shall be

14 known as the ‘Federal Case Registry of Child Support Or15 ders’), which shall contain abstracts of support orders and

16 other information described in paragraph (2) with respect

17 to each case in each State case registry maintained pursu18 ant to section 454A(e), as furnished (and regularly up19 dated), pursuant to section 454A(f), by State agencies ad20 ministering programs under this part.

21 ‘‘(2) The information referred to in paragraph (1)

22 with respect to a case shall be such information as the

23 Secretary may specify in regulations (including the names,

24 social security numbers or other uniform identification

25 numbers, and State case identification numbers) to iden-
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1 tify the individuals who owe or are owed support (or with

2 respect to or on behalf of whom support obligations are

3 sought to be established), and the State or States which

4 have the case.

5 ‘‘(i)(1) In order to assist States in administering pro6 grams under State plans approved under this part and

7 programs funded under part A, and for the other purposes

8 specified in this section, the Secretary shall, not later than

9 October 1, 1996, establish and maintain in the Federal

10 Parent Locator Service an automated directory to be

11 known as the National Directory of New Hires, which

12 shall contain the information supplied pursuant to section

13 453A(g)(2).

14 ‘‘(2) Information shall be entered into the data base

15 maintained by the National Directory of New Hires within

16 2 business days of receipt pursuant to section 453A(g)(2).

17 ‘‘(3) The Secretary of the Treasury shall have access

18 to the information in the National Directory of New Hires

19 for purposes of administering section 32 of the Internal

20 Revenue Code of 1986, or the advance payment of the

21 earned income tax credit under section 3507 of such Code,

22 and verifying a claim with respect to employment in a tax

23 return.

24 ‘‘(4) The Secretary shall maintain within the Na25 tional Directory of New Hires a list of multistate employ-
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1 ers that report information regarding newly hired employ2 ees pursuant to section 453A(b)(1)(B), and the State

3 which each such employer has designated to receive such

4 information.

5 ‘‘(j)(1)(A) The Secretary shall transmit information

6 on individuals and employers maintained under this sec7 tion to the Social Security Administration to the extent

8 necessary for verification in accordance with subparagraph

9 (B).

10 ‘‘(B) The Social Security Administration shall verify

11 the accuracy of, correct, or supply to the extent possible,

12 and report to the Secretary, the following information sup13 plied by the Secretary pursuant to subparagraph (A):

14 ‘‘(i) The name, social security number, and

15 birth date of each such individual.

16 ‘‘(ii) The employer identification number of

17 each such employer.

18 ‘‘(2) For the purpose of locating individuals in a pa19 ternity establishment case or a case involving the estab20 lishment, modification, or enforcement of a support order,

21 the Secretary shall—

22 ‘‘(A) compare information in the National Di23 rectory of New Hires against information in the sup24 port case abstracts in the Federal Case Registry of
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1 Child Support Orders not less often than every 2

2 business days; and

3 ‘‘(B) within 2 such days after such a compari4 son reveals a match with respect to an individual, re5 port the information to the State agency responsible

6 for the case.

7 ‘‘(3) To the extent and with the frequency that the

8 Secretary determines to be effective in assisting States to

9 carry out their responsibilities under programs operated

10 under this part and programs funded under part A, the

11 Secretary shall—

12 ‘‘(A) compare the information in each compo13 nent of the Federal Parent Locator Service main14 tained under this section against the information in

15 each other such component (other than the compari16 son required by paragraph (2)), and report instances

17 in which such a comparison reveals a match with re18 spect to an individual to State agencies operating

19 such programs; and

20 ‘‘(B) disclose information in such registries to

21 such State agencies.

22 ‘‘(4) The National Directory of New Hires shall pro23 vide the Commissioner of Social Security with all informa24 tion in the National Directory, which shall be used to de25 termine the accuracy of payments under the supplemental
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1 security income program under title XVI and in connec2 tion with benefits under title II.

3 ‘‘(5) The Secretary may provide access to information

4 reported by employers pursuant to section 453A(b) for re5 search purposes found by the Secretary to be likely to con6 tribute to achieving the purposes of part A or this part,

7 but without personal identifiers.

8 ‘‘(k)(1) The Secretary shall reimburse the Commis9 sioner of Social Security, at a rate negotiated between the

10 Secretary and the Commissioner, for the costs incurred

11 by the Commissioner in performing the verification serv12 ices described in subsection (j).

13 ‘‘(2) The Secretary shall reimburse costs incurred by

14 State directories of new hires in furnishing information

15 as required by subsection (j)(3), at rates which the Sec16 retary determines to be reasonable (which rates shall not

17 include payment for the costs of obtaining, compiling, or

18 maintaining such information).

19 ‘‘(3) A State or Federal agency that receives informa20 tion from the Secretary pursuant to this section shall re21 imburse the Secretary for costs incurred by the Secretary

22 in furnishing the information, at rates which the Secretary

23 determines to be reasonable (which rates shall include pay24 ment for the costs of obtaining, verifying, maintaining,

25 and comparing the information).
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1 ‘‘(l) Information in the Federal Parent Locator Serv2 ice, and information resulting from comparisons using

3 such information, shall not be used or disclosed except as

4 expressly provided in this section, subject to section 6103

5 of the Internal Revenue Code of 1986.

6 ‘‘(m) The Secretary shall establish and implement

7 safeguards with respect to the entities established under

8 this section designed to—

9 ‘‘(1) ensure the accuracy and completeness of

10 information in the Federal Parent Locator Service;

11 and

12 ‘‘(2) restrict access to confidential information

13 in the Federal Parent Locator Service to authorized

14 persons, and restrict use of such information to au15 thorized purposes.

16 ‘‘(n) Each department, agency, and instrumentality

17 of the United States shall on a quarterly basis report to

18 the Federal Parent Locator Service the name and social

19 security number of each employee and the wages paid to

20 the employee during the previous quarter, except that no

21 report shall be filed with respect to an employee of a de22 partment, agency, or instrumentality performing intel23 ligence or counterintelligence functions, if the head of such

24 department, agency, or instrumentality has determined

25 that filing such a report could endanger the safety of the
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1 employee or compromise an ongoing investigation or intel2 ligence mission.’’.

3 (f) CONFORMING AMENDMENTS.—

4 (1) TO PART D OF TITLE IV OF THE SOCIAL SE5 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

6 654(8)(B)) is amended to read as follows:

7 ‘‘(B) the Federal Parent Locator Service

8 established under section 453;’’.

9 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

10 Section 3304(a)(16) of the Internal Revenue Code of

11 1986 is amended—

12 (A) by striking ‘‘Secretary of Health, Edu13 cation, and Welfare’’ each place such term ap14 pears and inserting ‘‘Secretary of Health and

15 Human Services’’;

16 (B) in subparagraph (B), by striking

17 ‘‘such information’’ and all that follows and in18 serting ‘‘information furnished under subpara19 graph (A) or (B) is used only for the purposes

20 authorized under such subparagraph;’’;

21 (C) by striking ‘‘and’’ at the end of sub22 paragraph (A);

23 (D) by redesignating subparagraph (B) as

24 subparagraph (C); and
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1 (E) by inserting after subparagraph (A)

2 the following new subparagraph:

3 ‘‘(B) wage and unemployment compensa4 tion information contained in the records of

5 such agency shall be furnished to the Secretary

6 of Health and Human Services (in accordance

7 with regulations promulgated by such Sec8 retary) as necessary for the purposes of the Na9 tional Directory of New Hires established under

10 section 453(i) of the Social Security Act, and’’.

11 (3) TO STATE GRANT PROGRAM UNDER TITLE

12 III OF THE SOCIAL SECURITY ACT.—Subsection (h)

13 of section 303 (42 U.S.C. 503) is amended to read

14 as follows:

15 ‘‘(h)(1) The State agency charged with the adminis16 tration of the State law shall, on a reimbursable basis—

17 ‘‘(A) disclose quarterly, to the Secretary of

18 Health and Human Services wage and claim infor19 mation, as required pursuant to section 453(i)(1),

20 contained in the records of such agency;

21 ‘‘(B) ensure that information provided pursuant

22 to subparagraph (A) meets such standards relating

23 to correctness and verification as the Secretary of

24 Health and Human Services, with the concurrence

25 of the Secretary of Labor, may find necessary; and
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1 ‘‘(C) establish such safeguards as the Secretary

2 of Labor determines are necessary to insure that in3 formation disclosed under subparagraph (A) is used

4 only for purposes of section 453(i)(1) in carrying out

5 the child support enforcement program under title

6 IV.

7 ‘‘(2) Whenever the Secretary of Labor, after reason8 able notice and opportunity for hearing to the State agen9 cy charged with the administration of the State law, finds

10 that there is a failure to comply substantially with the re11 quirements of paragraph (1), the Secretary of Labor shall

12 notify such State agency that further payments will not

13 be made to the State until the Secretary of Labor is satis14 fied that there is no longer any such failure. Until the

15 Secretary of Labor is so satisfied, the Secretary shall

16 make no future certification to the Secretary of the Treas17 ury with respect to the State.

18 ‘‘(3) For purposes of this subsection—

19 ‘‘(A) the term ‘wage information’ means infor20 mation regarding wages paid to an individual, the

21 social security account number of such individual,

22 and the name, address, State, and the Federal em23 ployer identification number of the employer paying

24 such wages to such individual; and
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1 ‘‘(B) the term ‘claim information’ means infor2 mation regarding whether an individual is receiving,

3 has received, or has made application for, unemploy4 ment compensation, the amount of any such com5 pensation being received (or to be received by such

6 individual), and the individual’s current (or most re7 cent) home address.’’.

8 SEC. 917. COLLECTION AND USE OF SOCIAL SECURITY

9 NUMBERS FOR USE IN CHILD SUPPORT EN10 FORCEMENT.

11 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

12 U.S.C. 666(a)), as amended by section 915, is amended

13 by adding at the end the following new paragraph:

14 ‘‘(13) Procedures requiring that the social secu15 rity number of—

16 ‘‘(A) any applicant for a professional li17 cense, commercial driver’s license, occupational

18 license, or marriage license be recorded on the

19 application;

20 ‘‘(B) any individual who is subject to a di21 vorce decree, support order, or paternity deter22 mination or acknowledgment be placed in the

23 records relating to the matter; and
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1 ‘‘(C) any individual who has died be placed

2 in the records relating to the death and be re3 corded on the death certificate.

4 For purposes of subparagraph (A), if a State allows

5 the use of a number other than the social security

6 number, the State shall so advise any applicants.’’.

7 (b) CONFORMING AMENDMENTS.—Section

8 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

9 section 321(a)(9) of the Social Security Independence and

10 Program Improvements Act of 1994, is amended—

11 (1) in clause (i), by striking ‘‘may require’’ and

12 inserting ‘‘shall require’’;

13 (2) in clause (ii), by inserting after the 1st sen14 tence the following: ‘‘In the administration of any

15 law involving the issuance of a marriage certificate

16 or license, each State shall require each party named

17 in the certificate or license to furnish to the State

18 (or political subdivision thereof), or any State agen19 cy having administrative responsibility for the law

20 involved, the social security number of the party.’’;

21 (3) in clause (ii), by inserting ‘‘or marriage cer22 tificate’’ after ‘‘Such numbers shall not be recorded

23 on the birth certificate’’.

24 (4) in clause (vi), by striking ‘‘may’’ and insert25 ing ‘‘shall’’; and
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1 (5) by adding at the end the following new

2 clauses:

3 ‘‘(x) An agency of a State (or a politi4 cal subdivision thereof) charged with the

5 administration of any law concerning the

6 issuance or renewal of a license, certificate,

7 permit, or other authorization to engage in

8 a profession, an occupation, or a commer9 cial activity shall require all applicants for

10 issuance or renewal of the license, certifi11 cate, permit, or other authorization to pro12 vide the applicant’s social security number

13 to the agency for the purpose of admin14 istering such laws, and for the purpose of

15 responding to requests for information

16 from an agency operating pursuant to part

17 D of title IV.

18 ‘‘(xi) All divorce decrees, support or19 ders, and paternity determinations issued,

20 and all paternity acknowledgments made,

21 in each State shall include the social secu22 rity number of each party to the decree,

23 order, determination, or acknowledgement

24 in the records relating to the matter, for

25 the purpose of responding to requests for
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1 information from an agency operating pur2 suant to part D of title IV.’’.

3 Subtitle C—Streamlining and

4 Uniformity of Procedures

5 SEC. 921. ADOPTION OF UNIFORM STATE LAWS.

6 Section 466 (42 U.S.C. 666) is amended by adding

7 at the end the following new subsection:

8 ‘‘(f)(1) In order to satisfy section 454(20)(A) on or

9 after January 1, 1997, each State must have in effect the

10 Uniform Interstate Family Support Act, as approved by

11 the National Conference of Commissioners on Uniform

12 State Laws in August 1992 (with the modifications and

13 additions specified in this subsection), and the procedures

14 required to implement such Act.

15 ‘‘(2) The State law enacted pursuant to paragraph

16 (1) may be applied to any case involving an order which

17 is established or modified in a State and which is sought

18 to be modified or enforced in another State.

19 ‘‘(3) The State law enacted pursuant to paragraph

20 (1) of this subsection shall contain the following provision

21 in lieu of section 611(a)(1) of the Uniform Interstate

22 Family Support Act:

23 ‘‘ ‘(1) the following requirements are met:

24 ‘‘ ‘(i) the child, the individual obligee, and

25 the obligor—
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1 ‘‘ ‘(I) do not reside in the issuing

2 State; and

3 ‘‘ ‘(II) either reside in this State or

4 are subject to the jurisdiction of this State

5 pursuant to section 201; and

6 ‘‘ ‘(ii) in any case where another State is

7 exercising or seeks to exercise jurisdiction to

8 modify the order, the conditions of section 204

9 are met to the same extent as required for pro10 ceedings to establish orders; or’.

11 ‘‘(4) The State law enacted pursuant to paragraph

12 (1) shall provide that, in any proceeding subject to the

13 law, process may be served (and proved) upon persons in

14 the State by any means acceptable in any State which is

15 the initiating or responding State in the proceeding.’’.

16 SEC. 922. IMPROVEMENTS TO FULL FAITH AND CREDIT

17 FOR CHILD SUPPORT ORDERS.

18 Section 1738B of title 28, United States Code, is

19 amended—

20 (1) in subsection (a)(2), by striking ‘‘subsection

21 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

22 (2) in subsection (b), by inserting after the 2nd

23 undesignated paragraph the following:

24 ‘‘ ‘child’s home State’ means the State in which

25 a child lived with a parent or a person acting as par-
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1 ent for at least 6 consecutive months immediately

2 preceding the time of filing of a petition or com3 parable pleading for support and, if a child is less

4 than 6 months old, the State in which the child lived

5 from birth with any of them. A period of temporary

6 absence of any of them is counted as part of the 6-

7 month period.’’;

8 (3) in subsection (c), by inserting ‘‘by a court

9 of a State’’ before ‘‘is made’’;

10 (4) in subsection (c)(1), by inserting ‘‘and sub11 sections (e), (f), and (g)’’ after ‘‘located’’;

12 (5) in subsection (d)—

13 (A) by inserting ‘‘individual’’ before ‘‘con14 testant’’; and

15 (B) by striking ‘‘subsection (e)’’ and in16 serting ‘‘subsections (e) and (f)’’;

17 (6) in subsection (e), by striking ‘‘make a modi18 fication of a child support order with respect to a

19 child that is made’’ and inserting ‘‘modify a child

20 support order issued’’;

21 (7) in subsection (e)(1), by inserting ‘‘pursuant

22 to subsection (i)’’ before the semicolon;

23 (8) in subsection (e)(2)—

24 (A) by inserting ‘‘individual’’ before ‘‘con25 testant’’ each place such term appears; and
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1 (B) by striking ‘‘to that court’s making the

2 modification and assuming’’ and inserting ‘‘with

3 the State of continuing, exclusive jurisdiction

4 for a court of another State to modify the order

5 and assume’’;

6 (9) by redesignating subsections (f) and (g) as

7 subsections (g) and (h), respectively;

8 (10) by inserting after subsection (e) the follow9 ing new subsection:

10 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

11 If 1 or more child support orders have been issued in this

12 or another State with regard to an obligor and a child,

13 a court shall apply the following rules in determining

14 which order to recognize for purposes of continuing, exclu15 sive jurisdiction and enforcement:

16 ‘‘(1) If only 1 court has issued a child support

17 order, the order of that court must be recognized.

18 ‘‘(2) If 2 or more courts have issued child sup19 port orders for the same obligor and child, and only

20 1 of the courts would have continuing, exclusive ju21 risdiction under this section, the order of that court

22 must be recognized.

23 ‘‘(3) If 2 or more courts have issued child sup24 port orders for the same obligor and child, and more

25 than 1 of the courts would have continuing, exclusive
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1 jurisdiction under this section, an order issued by a

2 court in the current home State of the child must

3 be recognized, but if an order has not been issued

4 in the current home State of the child, the order

5 most recently issued must be recognized.

6 ‘‘(4) If 2 or more courts have issued child sup7 port orders for the same obligor and child, and none

8 of the courts would have continuing, exclusive juris9 diction under this section, a court may issue a child

10 support order, which must be recognized.

11 ‘‘(5) The court that has issued an order recog12 nized under this subsection is the court having con13 tinuing, exclusive jurisdiction.’’;

14 (11) in subsection (g) (as so redesignated)—

15 (A) by striking ‘‘PRIOR’’ and inserting

16 ‘‘MODIFIED’’; and

17 (B) by striking ‘‘subsection (e)’’ and in18 serting ‘‘subsections (e) and (f)’’;

19 (12) in subsection (h) (as so redesignated)—

20 (A) in paragraph (2), by inserting ‘‘includ21 ing the duration of current payments and other

22 obligations of support’’ before the comma; and

23 (B) in paragraph (3), by inserting ‘‘arrears

24 under’’ after ‘‘enforce’’; and
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1 (13) by adding at the end the following new

2 subsection:

3 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

4 no individual contestant or child residing in the issuing

5 State, the party or support enforcement agency seeking

6 to modify, or to modify and enforce, a child support order

7 issued in another State shall register that order in a State

8 with jurisdiction over the nonmovant for the purpose of

9 modification.’’.

10 SEC. 923. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

11 CASES.

12 Section 466(a) (42 U.S.C. 666(a)), as amended by

13 sections 915 and 917(a), is amended by adding at the end

14 the following new paragraph:

15 ‘‘(14) Procedures under which—

16 ‘‘(A)(i) the State shall respond within 5

17 business days to a request made by another

18 State to enforce a support order; and

19 ‘‘(ii) the term ‘business day’ means a day

20 on which State offices are open for regular

21 business;

22 ‘‘(B) the State may, by electronic or other

23 means, transmit to another State a request for

24 assistance in a case involving the enforcement

25 of a support order, which request—
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1 ‘‘(i) shall include such information as

2 will enable the State to which the request

3 is transmitted to compare the information

4 about the case to the information in the

5 data bases of the State; and

6 ‘‘(ii) shall constitute a certification by

7 the requesting State—

8 ‘‘(I) of the amount of support

9 under the order the payment of which

10 is in arrears; and

11 ‘‘(II) that the requesting State

12 has complied with all procedural due

13 process requirements applicable to the

14 case;

15 ‘‘(C) if the State provides assistance to an16 other State pursuant to this paragraph with re17 spect to a case, neither State shall consider the

18 case to be transferred to the caseload of such

19 other State; and

20 ‘‘(D) the State shall maintain records of—

21 ‘‘(i) the number of such requests for

22 assistance received by the State;

23 ‘‘(ii) the number of cases for which

24 the State collected support in response to

25 such a request; and
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1 ‘‘(iii) the amount of such collected

2 support.’’.

3 SEC. 924. USE OF FORMS IN INTERSTATE ENFORCEMENT.

4 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

5 652(a)) is amended—

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

7 (9);

8 (2) by striking the period at the end of para9 graph (10) and inserting ‘‘; and’’; and

10 (3) by adding at the end the following new

11 paragraph:

12 ‘‘(11) not later than 60 days after the date of

13 the enactment of the Work Opportunity Act of 1995,

14 establish an advisory committee, which shall include

15 State directors of programs under this part, and not

16 later than June 30, 1996, after consultation with

17 the advisory committee, promulgate forms to be used

18 by States in interstate cases for—

19 ‘‘(A) collection of child support through in20 come withholding;

21 ‘‘(B) imposition of liens; and

22 ‘‘(C) administrative subpoenas.’’.

23 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

24 654(9)) is amended—
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (C);

3 (2) by inserting ‘‘and’’ at the end of subpara4 graph (D); and

5 (3) by adding at the end the following new sub6 paragraph:

7 ‘‘(E) no later than October 1, 1996, in

8 using the forms promulgated pursuant to sec9 tion 452(a)(11) for income withholding, imposi10 tion of liens, and issuance of administrative

11 subpoenas in interstate child support cases;’’.

12 SEC. 925. STATE LAWS PROVIDING EXPEDITED PROCE13 DURES.

14 (a) STATE LAW REQUIREMENTS.—Section 466 (42

15 U.S.C. 666), as amended by section 914, is amended—

16 (1) in subsection (a)(2), by striking the 1st sen17 tence and inserting the following: ‘‘Expedited admin18 istrative and judicial procedures (including the pro19 cedures specified in subsection (c)) for establishing

20 paternity and for establishing, modifying, and en21 forcing support obligations.’’; and

22 (2) by inserting after subsection (b) the follow23 ing new subsection:

24 ‘‘(c) The procedures specified in this subsection are

25 the following:
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1 ‘‘(1) Procedures which give the State agency

2 the authority to take the following actions relating

3 to establishment or enforcement of support orders,

4 without the necessity of obtaining an order from any

5 other judicial or administrative tribunal, and to rec6 ognize and enforce the authority of State agencies of

7 other States) to take the following actions:

8 ‘‘(A) To order genetic testing for the pur9 pose of paternity establishment as provided in

10 section 466(a)(5).

11 ‘‘(B) To subpoena any financial or other

12 information needed to establish, modify, or en13 force a support order, and to impose penalties

14 for failure to respond to such a subpoena.

15 ‘‘(C) To require all entities in the State

16 (including for-profit, nonprofit, and govern17 mental employers) to provide promptly, in re18 sponse to a request by the State agency of that

19 or any other State administering a program

20 under this part, information on the employ21 ment, compensation, and benefits of any indi22 vidual employed by such entity as an employee

23 or contractor, and to sanction failure to respond

24 to any such request.
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1 ‘‘(D) To obtain access, subject to safe2 guards on privacy and information security, to

3 the following records (including automated ac4 cess, in the case of records maintained in auto5 mated data bases):

6 ‘‘(i) Records of other State and local

7 government agencies, including—

8 ‘‘(I) vital statistics (including

9 records of marriage, birth, and di10 vorce);

11 ‘‘(II) State and local tax and rev12 enue records (including information

13 on residence address, employer, in14 come and assets);

15 ‘‘(III) records concerning real

16 and titled personal property;

17 ‘‘(IV) records of occupational and

18 professional licenses, and records con19 cerning the ownership and control of

20 corporations, partnerships, and other

21 business entities;

22 ‘‘(V) employment security

23 records;

24 ‘‘(VI) records of agencies admin25 istering public assistance programs;
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1 ‘‘(VII) records of the motor vehi2 cle department; and

3 ‘‘(VIII) corrections records.

4 ‘‘(ii) Certain records held by private

5 entities, including—

6 ‘‘(I) customer records of public

7 utilities and cable television compa8 nies; and

9 ‘‘(II) information (including in10 formation on assets and liabilities) on

11 individuals who owe or are owed sup12 port (or against or with respect to

13 whom a support obligation is sought)

14 held by financial institutions (subject

15 to limitations on liability of such enti16 ties arising from affording such ac17 cess), as provided pursuant to agree18 ments described in subsection (a)(18).

19 ‘‘(E) In cases where support is subject to

20 an assignment in order to comply with a re21 quirement imposed pursuant to part A or sec22 tion 1912, or to a requirement to pay through

23 the State disbursement unit established pursu24 ant to section 454B, upon providing notice to

25 obligor and obligee, to direct the obligor or
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1 other payor to change the payee to the appro2 priate government entity.

3 ‘‘(F) To order income withholding in ac4 cordance with subsections (a)(1) and (b) of sec5 tion 466.

6 ‘‘(G) In cases in which there is a support

7 arrearage, to secure assets to satisfy the arrear8 age 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 ‘‘(iii) attaching public and private re20 tirement funds; and

21 ‘‘(iv) imposing liens in accordance

22 with subsection (a)(4) and, in appropriate

23 cases, to force sale of property and dis24 tribution of proceeds.
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1 ‘‘(H) For the purpose of securing overdue

2 support, to increase the amount of monthly

3 support payments to include amounts for ar4 rearages, subject to such conditions or limita5 tions as the State may provide.

6 Such procedures shall be subject to due process safe7 guards, including (as appropriate) requirements for

8 notice, opportunity to contest the action, and oppor9 tunity for an appeal on the record to an independent

10 administrative or judicial tribunal.

11 ‘‘(2) The expedited procedures required under

12 subsection (a)(2) shall include the following rules

13 and authority, applicable with respect to all proceed14 ings to establish paternity or to establish, modify, or

15 enforce support orders:

16 ‘‘(A) Procedures under which—

17 ‘‘(i) each party to any paternity or

18 child support proceeding is required (sub19 ject to privacy safeguards) to file with the

20 tribunal and the State case registry upon

21 entry of an order, and to update as appro22 priate, information on location and identity

23 of the party, including social security num24 ber, residential and mailing addresses, tele25 phone number, driver’s license number,
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1 and name, address, and name and tele2 phone number of employer; and

3 ‘‘(ii) in any subsequent child support

4 enforcement action between the parties,

5 upon sufficient showing that diligent effort

6 has been made to ascertain the location of

7 such a party, the tribunal may deem State

8 due process requirements for notice and

9 service of process to be met with respect to

10 the party, upon delivery of written notice

11 to the most recent residential or employer

12 address filed with the tribunal pursuant to

13 clause (i).

14 ‘‘(B) Procedures under which—

15 ‘‘(i) the State agency and any admin16 istrative or judicial tribunal with authority

17 to hear child support and paternity cases

18 exerts statewide jurisdiction over the par19 ties; and

20 ‘‘(ii) in a State in which orders are is21 sued by courts or administrative tribunals,

22 a case may be transferred between local ju23 risdictions in the State without need for

24 any additional filing by the petitioner, or
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1 service of process upon the respondent, to

2 retain jurisdiction over the parties.’’.

3 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

4 Section 454A, as added by section 944(a)(2) and as

5 amended by sections 911 and 912(c), is amended by add6 ing at the end the following new subsection:

7 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

8 The automated system required by this section shall be

9 used, to the maximum extent feasible, to implement the

10 expedited administrative procedures required by section

11 466(c).’’.

12 Subtitle D—Paternity

13 Establishment

14 SEC. 931. STATE LAWS CONCERNING PATERNITY ESTAB15 LISHMENT.

16 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

17 U.S.C. 666(a)(5)) is amended to read as follows:

18 ‘‘(5)(A)(i) Procedures which permit the estab19 lishment of the paternity of a child at any time be20 fore the child attains 21 years of age.

21 ‘‘(ii) As of August 16, 1984, clause (i) shall

22 also apply to a child for whom paternity has not

23 been established or for whom a paternity action was

24 brought but dismissed because a statute of limita-
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1 tions of less than 21 years was then in effect in the

2 State.

3 ‘‘(B)(i) Procedures under which the State is re4 quired, in a contested paternity case, unless other5 wise barred by State law, to require the child and

6 all other parties (other than individuals found under

7 section 454(29) to have good cause for refusing to

8 cooperate) to submit to genetic tests upon the re9 quest of any such party if the request is supported

10 by a sworn statement by the party—

11 ‘‘(I) alleging paternity, and setting forth

12 facts establishing a reasonable possibility of the

13 requisite sexual contact between the parties; or

14 ‘‘(II) denying paternity, and setting forth

15 facts establishing a reasonable possibility of the

16 nonexistence of sexual contact between the par17 ties.

18 ‘‘(ii) Procedures which require the State agency

19 in any case in which the agency orders genetic test20 ing—

21 ‘‘(I) to pay costs of such tests, subject to

22 recoupment (where the State so elects) from the

23 alleged father if paternity is established; and

24 ‘‘(II) to obtain additional testing in any

25 case where an original test result is contested,
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1 upon request and advance payment by the con2 testant.

3 ‘‘(C)(i) Procedures for a simple civil process for

4 voluntarily acknowledging paternity under which the

5 State must provide that, before a mother and a pu6 tative father can sign an acknowledgment of pater7 nity, the mother and the putative father must be

8 given notice, orally and in writing, of the alter9 natives to, the legal consequences of, and the rights

10 (including, if 1 parent is a minor, any rights af11 forded due to minority status) and responsibilities

12 that arise from, signing the acknowledgment.

13 ‘‘(ii) Such procedures must include a hospital14 based program for the voluntary acknowledgment of

15 paternity focusing on the period immediately before

16 or after the birth of a child, subject to such good

17 cause and other exceptions as the State shall estab18 lish and taking into account the best interests of the

19 child.

20 ‘‘(iii)(I) Such procedures must require the State

21 agency responsible for maintaining birth records to

22 offer voluntary paternity establishment services.

23 ‘‘(II)(aa) The Secretary shall prescribe regula24 tions governing voluntary paternity establishment
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1 services offered by hospitals and birth record agen2 cies.

3 ‘‘(bb) The Secretary shall prescribe regulations

4 specifying the types of other entities that may offer

5 voluntary paternity establishment services, and gov6 erning the provision of such services, which shall in7 clude a requirement that such an entity must use

8 the same notice provisions used by, use the same

9 materials used by, provide the personnel providing

10 such services with the same training provided by,

11 and evaluate the provision of such services in the

12 same manner as the provision of such services is

13 evaluated by, voluntary paternity establishment pro14 grams of hospitals and birth record agencies.

15 ‘‘(iv) Such procedures must require the State to

16 develop and use an affidavit for the voluntary ac17 knowledgment of paternity which includes the mini18 mum requirements of the affidavit developed by the

19 Secretary under section 452(a)(7) for the voluntary

20 acknowledgment of paternity, and to give full faith

21 and credit to such an affidavit signed in any other

22 State according to its procedures.

23 ‘‘(D)(i) Procedures under which the name of

24 the father shall be included on the record of birth

25 of the child only—
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1 ‘‘(I) if the father and mother have signed

2 a voluntary acknowledgment of paternity; or

3 ‘‘(II) pursuant to an order issued in a judi4 cial or administrative proceeding.

5 Nothing in this clause shall preclude a State agency

6 from obtaining an admission of paternity from the

7 father for submission in a judicial or administrative

8 proceeding, or prohibit an order issued in a judicial

9 or administrative proceeding which bases a legal

10 finding of paternity on an admission of paternity by

11 the father and any other additional showing required

12 by State law.

13 ‘‘(ii) Procedures under which—

14 ‘‘(I) a voluntary acknowledgment of pater15 nity is considered a legal finding of paternity,

16 subject to the right of any signatory to rescind

17 the acknowledgment within 60 days;

18 ‘‘(II) after the 60-day period referred to in

19 subclause (I), a signed voluntary acknowledg20 ment of paternity may be challenged in court

21 only on the basis of fraud, duress, or material

22 mistake of fact, with the burden of proof upon

23 the challenger, and under which the legal re24 sponsibilities (including child support obliga25 tions) of any signatory arising from the ac-
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1 knowledgment may not be suspended during the

2 challenge, except for good cause shown; and

3 ‘‘(III) judicial or administrative proceed4 ings are not required or permitted to ratify an

5 unchallenged acknowledgment of paternity.

6 ‘‘(E) Procedures under which judicial or admin7 istrative proceedings are not required or permitted

8 to ratify an unchallenged acknowledgment of pater9 nity.

10 ‘‘(F) Procedures—

11 ‘‘(i) requiring the admission into evidence,

12 for purposes of establishing paternity, of the re13 sults of any genetic test that is—

14 ‘‘(I) of a type generally acknowledged

15 as reliable by accreditation bodies des16 ignated by the Secretary; and

17 ‘‘(II) performed by a laboratory ap18 proved by such an accreditation body;

19 ‘‘(ii) requiring an objection to genetic test20 ing results to be made in writing not later than

21 a specified number of days before any hearing

22 at which the results may be introduced into evi23 dence (or, at State option, not later than a

24 specified number of days after receipt of the re25 sults); and
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1 ‘‘(iii) making the test results admissible as

2 evidence of paternity without the need for foun3 dation testimony or other proof of authenticity

4 or accuracy, unless objection is made.

5 ‘‘(G) Procedures which create a rebuttable or,

6 at the option of the State, conclusive presumption of

7 paternity upon genetic testing results indicating a

8 threshold probability that the alleged father is the

9 father of the child.

10 ‘‘(H) Procedures requiring a default order to be

11 entered in a paternity case upon a showing of service

12 of process on the defendant and any additional

13 showing required by State law.

14 ‘‘(I) Procedures providing that the parties to an

15 action to establish paternity are not entitled to a

16 trial by jury.

17 ‘‘(J) Procedures which require that a temporary

18 order be issued, upon motion by a party, requiring

19 the provision of child support pending an adminis20 trative or judicial determination of parentage, where

21 there is clear and convincing evidence of paternity

22 (on the basis of genetic tests or other evidence).

23 ‘‘(K) Procedures under which bills for preg24 nancy, childbirth, and genetic testing are admissible

25 as evidence without requiring third-party foundation
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1 testimony, and shall constitute prima facie evidence

2 of amounts incurred for such services or for testing

3 on behalf of the child.

4 ‘‘(L) Procedures ensuring that the putative fa5 ther has a reasonable opportunity to initiate a pater6 nity action.

7 ‘‘(M) Procedures under which voluntary ac8 knowledgments and adjudications of paternity by ju9 dicial or administrative processes are filed with the

10 State registry of birth records for comparison with

11 information in the State case registry.’’.

12 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI13 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

14 amended by inserting ‘‘, and develop an affidavit to be

15 used for the voluntary acknowledgment of paternity which

16 shall include the social security number of each parent’’

17 before the semicolon.

18 (c) TECHNICAL AMENDMENT.—Section 468 (42

19 U.S.C. 668) is amended by striking ‘‘a simple civil process

20 for voluntarily acknowledging paternity and’’.

21 SEC. 932. OUTREACH FOR VOLUNTARY PATERNITY ESTAB22 LISHMENT.

23 Section 454(23) (42 U.S.C. 654(23)) is amended by

24 inserting ‘‘and will publicize the availability and encourage

25 the use of procedures for voluntary establishment of pater-
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1 nity and child support by means the State deems appro2 priate’’ before the semicolon.

3 SEC. 933. COOPERATION BY APPLICANTS FOR AND RECIPI4 ENTS OF TEMPORARY FAMILY ASSISTANCE.

5 Section 454 (42 U.S.C. 654), as amended by sections

6 901(b), 904(a), 912(a), and 913(a), 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 inserting after paragraph (28) the fol12 lowing new paragraph:

13 ‘‘(29) provide that the State agency responsible

14 for administering the State plan—

15 ‘‘(A) shall make the determination (and re16 determination at appropriate intervals) as to

17 whether an individual who has applied for or is

18 receiving assistance under the State program

19 funded under part A or the State program

20 under title XIX is cooperating in good faith

21 with the State in establishing the paternity of,

22 or in establishing, modifying, or enforcing a

23 support order for, any child of the individual by

24 providing the State agency with the name of,

25 and such other information as the State agency
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1 may require with respect to, the noncustodial

2 parent of the child, subject to such good cause

3 and other exceptions as the State shall establish

4 and taking into account the best interests of the

5 child;

6 ‘‘(B) shall require the individual to supply

7 additional necessary information and appear at

8 interviews, hearings, and legal proceedings;

9 ‘‘(C) shall require the individual and the

10 child to submit to genetic tests pursuant to ju11 dicial or administrative order; and

12 ‘‘(D) shall promptly notify the individual

13 and the State agency administering the State

14 program funded under part A and the State

15 agency administering the State program under

16 title XIX of each such determination, and if

17 noncooperation is determined, the basis there18 fore.’’.

19 Subtitle E—Program

20 Administration and Funding

21 SEC. 941. PERFORMANCE-BASED INCENTIVES AND PEN22 ALTIES.

23 (a) INCENTIVE PAYMENTS.—

24 (1) IN GENERAL.—Section 458 (42 U.S.C. 658)

25 is amended—
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1 (A) in subsection (a), by striking ‘‘aid to

2 families’’ and all through the end period, and

3 inserting ‘‘assistance under a program funded

4 under part A, and regardless of the economic

5 circumstances of their parents, the Secretary

6 shall, from the support collected which would

7 otherwise represent the reimbursement to the

8 Federal government under section 457, pay to

9 each State for each fiscal year, on a quarterly

10 basis (as described in subsection (e)) beginning

11 with the quarter commencing October 1, 1999,

12 an incentive payment in an amount determined

13 under subsections (b) and (c).’’;

14 (B) by striking subsections (b) and (c) and

15 inserting the following:

16 ‘‘(b)(1) Not later than 60 days after the date of the

17 enactment of the Work Opportunity Act of 1995, the Sec18 retary shall establish a committee which shall include

19 State directors of programs under this part and which

20 shall develop for the Secretary’s approval a formula for

21 the distribution of incentive payments to the States.

22 ‘‘(2) The formula developed and approved under

23 paragraph (1)—

24 ‘‘(A) shall result in a percentage of the collec25 tions described in subsection (a) being distributed to
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1 each State based on the State’s comparative per2 formance in the following areas and any other areas

3 approved by the Secretary under this subsection:

4 ‘‘(i) The IV–D paternity establishment

5 percentage, as defined in section 452(g)(2).

6 ‘‘(ii) The percentage of cases with a sup7 port order with respect to which services are

8 being provided under the State plan approved

9 under this part.

10 ‘‘(iii) The percentage of cases with a sup11 port order in which child support is paid with

12 respect to which services are being so provided.

13 ‘‘(iv) In cases receiving services under the

14 State plan approved under this part, the

15 amount of child support collected compared to

16 the amount of outstanding child support owed.

17 ‘‘(v) The cost-effectiveness of the State

18 program;

19 ‘‘(B) shall take into consideration—

20 ‘‘(i) the impact that incentives can have on

21 reducing the need to provide public assistance

22 and on permanently removing families from

23 public assistance;
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1 ‘‘(ii) the need to balance accuracy and fair2 ness with simplicity of understanding and data

3 gathering;

4 ‘‘(iii) the need to reward performance

5 which improves short- and long-term program

6 outcomes, especially establishing paternity and

7 support orders and encouraging the timely pay8 ment of support;

9 ‘‘(iv) the Statewide paternity establishment

10 percentage;

11 ‘‘(v) baseline data on current performance

12 and projected costs of performance increases to

13 assure that top performing States can actually

14 achieve the top incentive levels with a reason15 able resource investment;

16 ‘‘(vi) performance outcomes which would

17 warrant an increase in the total incentive pay18 ments made to the States; and

19 ‘‘(vii) the use or distribution of any portion

20 of the total incentive payments in excess of the

21 total of the payments which may be distributed

22 under subsection (c);

23 ‘‘(C) shall be determined so as to distribute to

24 the States total incentive payments equal to the total

25 incentive payments for all States in fiscal year 1994,
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1 plus a portion of any increase in the reimbursement

2 to the Federal Government under section 457 from

3 fiscal year 1999 or any other increase based on

4 other performance outcomes approved by the Sec5 retary under this subsection;

6 ‘‘(D) shall use a definition of the term ‘State’

7 which does not include any area within the jurisdic8 tion of an Indian tribal government; and

9 ‘‘(E) shall use a definition of the term ‘State10 wide paternity establishment percentage’ to mean

11 with respect to a State and a fiscal year—

12 ‘‘(i) the total number of children in the

13 State who were born out of wedlock, who have

14 not attained 1 year of age and for whom pater15 nity is established or acknowledged during the

16 fiscal year; divided by

17 ‘‘(ii) the total number of children born out

18 of wedlock in the State during the fiscal year.

19 ‘‘(c) The total amount of the incentives payment

20 made by the Secretary to a State in a fiscal year shall

21 not exceed 90 percent of the total amounts expended by

22 such State during such year for the operation of the plan

23 approved under section 454, less payments to the State

24 pursuant to section 455 for such year.’’;
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1 (2) in subsection (d), by striking ‘‘, and any

2 amounts’’ through ‘‘shall be excluded’’.

3 (b) PAYMENTS TO POLITICAL SUBDIVISIONS.—Sec4 tion 454(22) (42 U.S.C. 654(22)) is amended by inserting

5 before the semicolon the following: ‘‘, but a political sub6 division shall not be entitled to receive, and the State may

7 retain, any amount in excess of the amount the political

8 subdivision expends on the State program under this part,

9 less the amount equal to the percentage of that expendi10 ture paid by the Secretary under section 455’’.

11 (c) CALCULATION OF IV–D PATERNITY ESTABLISH12 MENT PERCENTAGE.—

13 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

14 amended—

15 (A) in the matter preceding subparagraph

16 (A) by inserting ‘‘its overall performance in

17 child support enforcement is satisfactory (as de18 fined in section 458(b) and regulations of the

19 Secretary), and’’ after ‘‘1994,’’; and

20 (B) in each of subparagraphs (A) and (B),

21 by striking ‘‘75’’ and inserting ‘‘90’’.

22 (2) Section 452(g)(2)(A) (42 U.S.C.

23 652(g)(2)(A)) is amended in the matter preceding

24 clause (i)—
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1 (A) by striking ‘‘paternity establishment

2 percentage’’ and inserting ‘‘IV–D paternity es3 tablishment percentage’’; and

4 (B) by striking ‘‘(or all States, as the case

5 may be)’’.

6 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

7 amended—

8 (A) by striking subparagraph (A) and re9 designating subparagraphs (B) and (C) as sub10 paragraphs (A) and (B), respectively;

11 (B) in subparagraph (A) (as so redesig12 nated), by striking ‘‘the percentage of children

13 born out-of-wedlock in a State’’ and inserting

14 ‘‘the percentage of children in a State who are

15 born out of wedlock or for whom support has

16 not been established’’; and

17 (C) in subparagraph (B) (as so redesig18 nated)—

19 (i) by inserting ‘‘and overall perform20 ance in child support enforcement’’ after

21 ‘‘paternity establishment percentages’’; and

22 (ii) by inserting ‘‘and securing sup23 port’’ before the period.

24 (d) EFFECTIVE DATES.—

25 (1) INCENTIVE ADJUSTMENTS.—
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1 (A) IN GENERAL.—The amendments made

2 by subsections (a) and (b) shall become effec3 tive on the date of the enactment of this Act,

4 except to the extent provided in subparagraph

5 (B).

6 (B) EXCEPTION.—Section 458 of the So7 cial Security Act, as in effect before the date of

8 the enactment of this section, shall be effective

9 for purposes of incentive payments to States for

10 fiscal years before fiscal year 2000.

11 (2) PENALTY REDUCTIONS.—The amendments

12 made by subsection (c) shall become effective with

13 respect to calendar quarters beginning on and after

14 the date of the enactment of this Act.

15 SEC. 942. FEDERAL AND STATE REVIEWS AND AUDITS.

16 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

17 U.S.C. 654) is amended—

18 (1) in paragraph (14), by striking ‘‘(14)’’ and

19 inserting ‘‘(14)(A)’’;

20 (2) by redesignating paragraph (15) as sub21 paragraph (B) of paragraph (14); and

22 (3) by inserting after paragraph (14) the fol23 lowing new paragraph:

24 ‘‘(15) provide for—
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1 ‘‘(A) a process for annual reviews of and

2 reports to the Secretary on the State program

3 operated under the State plan approved under

4 this part, including such information as may be

5 necessary to measure State compliance with

6 Federal requirements for expedited procedures,

7 using such standards and procedures as are re8 quired by the Secretary, under which the State

9 agency will determine the extent to which the

10 program is operated in compliance with this

11 part; and

12 ‘‘(B) a process of extracting from the auto13 mated data processing system required by para14 graph (16) and transmitting to the Secretary

15 data and calculations concerning the levels of

16 accomplishment (and rates of improvement)

17 with respect to applicable performance indica18 tors (including IV–D paternity establishment

19 percentages and overall performance in child

20 support enforcement) to the extent necessary

21 for purposes of sections 452(g) and 458.’’.

22 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

23 U.S.C. 652(a)(4)) is amended to read as follows:

24 ‘‘(4)(A) review data and calculations transmit25 ted by State agencies pursuant to section
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1 454(15)(B) on State program accomplishments with

2 respect to performance indicators for purposes of

3 subsection (g) of this section and section 458;

4 ‘‘(B) review annual reports submitted pursuant

5 to section 454(15)(A) and, as appropriate, provide

6 to the State comments, recommendations for addi7 tional or alternative corrective actions, and technical

8 assistance; and

9 ‘‘(C) conduct audits, in accordance with the

10 Government auditing standards of the Comptroller

11 General of the United States—

12 ‘‘(i) at least once every 3 years (or more

13 frequently, in the case of a State which fails to

14 meet the requirements of this part concerning

15 performance standards and reliability of pro16 gram data) to assess the completeness, reliabil17 ity, and security of the data, and the accuracy

18 of the reporting systems, used in calculating

19 performance indicators under subsection (g) of

20 this section and section 458;

21 ‘‘(ii) of the adequacy of financial manage22 ment of the State program operated under the

23 State plan approved under this part, including

24 assessments of—
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1 ‘‘(I) whether Federal and other funds

2 made available to carry out the State pro3 gram are being appropriately expended,

4 and are properly and fully accounted for;

5 and

6 ‘‘(II) whether collections and disburse7 ments of support payments are carried out

8 correctly and are fully accounted for; and

9 ‘‘(iii) for such other purposes as the Sec10 retary may find necessary;’’.

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section shall be effective with respect to calendar

13 quarters beginning 12 months or more after the date of

14 the enactment of this Act.

15 SEC. 943. REQUIRED REPORTING PROCEDURES.

16 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

17 652(a)(5)) is amended by inserting ‘‘, and establish proce18 dures to be followed by States for collecting and reporting

19 information required to be provided under this part, and

20 establish uniform definitions (including those necessary to

21 enable the measurement of State compliance with the re22 quirements of this part relating to expedited processes) to

23 be applied in following such procedures’’ before the semi24 colon.
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1 (b) STATE PLAN REQUIREMENT.—Section 454 (42

2 U.S.C. 654), as amended by sections 901(b), 904(a),

3 912(a), 913(a), and 933, is amended—

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

5 (28);

6 (2) by striking the period at the end of para7 graph (29) and inserting ‘‘; and’’; and

8 (3) by adding after paragraph (29) the follow9 ing new paragraph:

10 ‘‘(30) provide that the State shall use the defi11 nitions established under section 452(a)(5) in col12 lecting and reporting information as required under

13 this part.’’.

14 SEC. 944. AUTOMATED DATA PROCESSING REQUIREMENTS.

15 (a) REVISED REQUIREMENTS.—

16 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

17 654(16)) is amended—

18 (A) by striking ‘‘, at the option of the

19 State,’’;

20 (B) by inserting ‘‘and operation by the

21 State agency’’ after ‘‘for the establishment’’;

22 (C) by inserting ‘‘meeting the requirements

23 of section 454A’’ after ‘‘information retrieval

24 system’’;
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1 (D) by striking ‘‘in the State and localities

2 thereof, so as (A)’’ and inserting ‘‘so as’’;

3 (E) by striking ‘‘(i)’’; and

4 (F) by striking ‘‘(including’’ and all that

5 follows and inserting a semicolon.

6 (2) AUTOMATED DATA PROCESSING.—Part D of

7 title IV (42 U.S.C. 651–669) is amended by insert8 ing after section 454 the following new section:

9 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

10 ‘‘(a) IN GENERAL.—In order for a State to meet the

11 requirements of this section, the State agency administer12 ing the State program under this part shall have in oper13 ation a single statewide automated data processing and

14 information retrieval system which has the capability to

15 perform the tasks specified in this section with the fre16 quency and in the manner required by or under this part.

17 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys18 tem required by this section shall perform such functions

19 as the Secretary may specify relating to management of

20 the State program under this part, including—

21 ‘‘(1) controlling and accounting for use of Fed22 eral, State, and local funds in carrying out the pro23 gram; and
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1 ‘‘(2) maintaining the data necessary to meet

2 Federal reporting requirements under this part on a

3 timely basis.

4 ‘‘(c) CALCULATION OF PERFORMANCE INDICA5 TORS.—In order to enable the Secretary to determine the

6 incentive and penalty adjustments required by sections

7 452(g) and 458, the State agency shall—

8 ‘‘(1) use the automated system—

9 ‘‘(A) to maintain the requisite data on

10 State performance with respect to paternity es11 tablishment and child support enforcement in

12 the State; and

13 ‘‘(B) to calculate the IV–D paternity es14 tablishment percentage and overall performance

15 in child support enforcement for the State for

16 each fiscal year; and

17 ‘‘(2) have in place systems controls to ensure

18 the completeness and reliability of, and ready access

19 to, the data described in paragraph (1)(A), and the

20 accuracy of the calculations described in paragraph

21 (1)(B).

22 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

23 State agency shall have in effect safeguards on the integ24 rity, accuracy, and completeness of, access to, and use of

25 data in the automated system required by this section,
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1 which shall include the following (in addition to such other

2 safeguards as the Secretary may specify in regulations):

3 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

4 policies concerning access to data by State agency

5 personnel, and sharing of data with other persons,

6 which—

7 ‘‘(A) permit access to and use of data only

8 to the extent necessary to carry out the State

9 program under this part; and

10 ‘‘(B) specify the data which may be used

11 for particular program purposes, and the per12 sonnel permitted access to such data.

13 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

14 (such as passwords or blocking of fields) to ensure

15 strict adherence to the policies described in para16 graph (1).

17 ‘‘(3) MONITORING OF ACCESS.—Routine mon18 itoring of access to and use of the automated sys19 tem, through methods such as audit trails and feed20 back mechanisms, to guard against and promptly

21 identify unauthorized access or use.

22 ‘‘(4) TRAINING AND INFORMATION.—Proce23 dures to ensure that all personnel (including State

24 and local agency staff and contractors) who may

25 have access to or be required to use confidential pro-
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1 gram data are informed of applicable requirements

2 and penalties (including those in section 6103 of the

3 Internal Revenue Code of 1986), and are adequately

4 trained in security procedures.

5 ‘‘(5) PENALTIES.—Administrative penalties (up

6 to and including dismissal from employment) for un7 authorized access to, or disclosure or use of, con8 fidential data.’’.

9 (3) REGULATIONS.—The Secretary of Health

10 and Human Services shall prescribe final regulations

11 for implementation of section 454A of the Social Se12 curity Act not later than 2 years after the date of

13 the enactment of this Act.

14 (4) IMPLEMENTATION TIMETABLE.—Section

15 454(24) (42 U.S.C. 654(24)), as amended by sec16 tions 904(a)(2) and 912(a)(1), is amended to read

17 as follows:

18 ‘‘(24) provide that the State will have in effect

19 an automated data processing and information re20 trieval system—

21 ‘‘(A) by October 1, 1997, which meets all

22 requirements of this part which were enacted on

23 or before the date of enactment of the Family

24 Support Act of 1988; and
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1 ‘‘(B) by October 1, 1999, which meets all

2 requirements of this part enacted on or before

3 the date of the enactment of the Work Oppor4 tunity Act of 1995, except that such deadline

5 shall be extended by 1 day for each day (if any)

6 by which the Secretary fails to meet the dead7 line imposed by section 944(a)(3) of the Work

8 Opportunity Act of 1995.’’.

9 (b) SPECIAL FEDERAL MATCHING RATE FOR DE10 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

11 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

12 655(a)) is amended—

13 (A) in paragraph (1)(B)—

14 (i) by striking ‘‘90 percent’’ and in15 serting ‘‘the percent specified in paragraph

16 (3)’’;

17 (ii) by striking ‘‘so much of’’; and

18 (iii) by striking ‘‘which the Secretary’’

19 and all that follows and inserting ‘‘, and’’;

20 and

21 (B) by adding at the end the following new

22 paragraph:

23 ‘‘(3)(A) The Secretary shall pay to each State, for

24 each quarter in fiscal years 1996 and 1997, 90 percent

25 of so much of the State expenditures described in para-
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1 graph (1)(B) as the Secretary finds are for a system meet2 ing the requirements specified in section 454(16) (as in

3 effect on the day before the date of the enactment of the

4 Work Opportunity Act of 1995), but limited to the amount

5 approved for States in the advance planning documents

6 of such States submitted on or before May 1, 1995.

7 ‘‘(B)(i) The Secretary shall pay to each State, for

8 each quarter in fiscal years 1997 through 2001, the per9 centage specified in clause (ii) of so much of the State

10 expenditures described in paragraph (1)(B) as the Sec11 retary finds are for a system meeting the requirements

12 of sections 454(16) and 454A.

13 ‘‘(ii) The percentage specified in this clause is the

14 greater of—

15 ‘‘(I) 80 percent; or

16 ‘‘(II) the percentage otherwise applicable to

17 Federal payments to the State under subparagraph

18 (A) (as adjusted pursuant to section 458).’’.

19 (2) TEMPORARY LIMITATION ON PAYMENTS

20 UNDER SPECIAL FEDERAL MATCHING RATE.—

21 (A) IN GENERAL.—The Secretary of

22 Health and Human Services may not pay more

23 than $260,000,000 in the aggregate under sec24 tion 455(a)(3) of the Social Security Act for fis25 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. 945. 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 new subsection:

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 916(f), is amended by adding at the end the follow2 ing new subsection:

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. 946. 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 new

23 clauses:

24 ‘‘(i) the total amount of child support

25 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); and

12 (E) by redesignating clause (v) as clause

13 (vii), and inserting after clause (iii) the follow14 ing new clauses:

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—

3 (A) in subparagraph (H), by striking

4 ‘‘and’’;

5 (B) in subparagraph (I), by striking the

6 period and inserting ‘‘; and’’; and

7 (C) by inserting after subparagraph (I) the

8 following new subparagraph:

9 ‘‘(J) compliance, by State, with the stand10 ards established pursuant to subsections (h)

11 and (i).’’.

12 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10))

13 is amended by striking all that follows subparagraph

14 (J), as added by paragraph (4).

15 (b) EFFECTIVE DATE.—The amendments made by

16 subsection (a) shall be effective with respect to fiscal year

17 1996 and succeeding fiscal years.

18 Subtitle F—Establishment and

19 Modification of Support Orders

20 SEC. 951. NATIONAL CHILD SUPPORT GUIDELINES COMMIS21 SION.

22 (a) ESTABLISHMENT.—There is hereby established a

23 commission to be known as the National Child Support

24 Guidelines Commission (in this section referred to as the

25 ‘‘Commission’’).
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1 (b) GENERAL DUTIES.—

2 (1) IN GENERAL.—The Commission shall deter3 mine—

4 (A) whether it is appropriate to develop a

5 national child support guideline for consider6 ation by the Congress or for adoption by indi7 vidual States; or

8 (B) based on a study of various guideline

9 models, the benefits and deficiencies of such

10 models, and any needed improvements.

11 (2) DEVELOPMENT OF MODELS.—If the Com12 mission determines under paragraph (1)(A) that a

13 national child support guideline is needed or under

14 paragraph (1)(B) that improvements to guideline

15 models are needed, the Commission shall develop

16 such national guideline or improvements.

17 (c) MATTERS FOR CONSIDERATION BY THE COMMIS18 SION.—In making the recommendations concerning guide19 lines required under subsection (b), the Commission shall

20 consider—

21 (1) the adequacy of State child support guide22 lines established pursuant to section 467;

23 (2) matters generally applicable to all support

24 orders, including—
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•HR 2915 IH

1 (A) the feasibility of adopting uniform

2 terms in all child support orders;

3 (B) how to define income and under what

4 circumstances income should be imputed; and

5 (C) tax treatment of child support pay6 ments;

7 (3) the appropriate treatment of cases in which

8 either or both parents have financial obligations to

9 more than 1 family, including the effect (if any) to

10 be given to—

11 (A) the income of either parent’s spouse;

12 and

13 (B) the financial responsibilities of either

14 parent for other children or stepchildren;

15 (4) the appropriate treatment of expenses for

16 child care (including care of the children of either

17 parent, and work-related or job-training-related child

18 care);

19 (5) the appropriate treatment of expenses for

20 health care (including uninsured health care) and

21 other extraordinary expenses for children with spe22 cial needs;

23 (6) the appropriate duration of support by 1 or

24 both parents, including—
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1 (A) support (including shared support) for

2 postsecondary or vocational education; and

3 (B) support for disabled adult children;

4 (7) procedures to automatically adjust child

5 support orders periodically to address changed eco6 nomic circumstances, including changes in the

7 Consumer Price Index or either parent’s income and

8 expenses in particular cases;

9 (8) procedures to help noncustodial parents ad10 dress grievances regarding visitation and custody or11 ders to prevent such parents from withholding child

12 support payments until such grievances are resolved;

13 and

14 (9) whether, or to what extent, support levels

15 should be adjusted in cases in which custody is

16 shared or in which the noncustodial parent has ex17 tended visitation rights.

18 (d) MEMBERSHIP.—

19 (1) NUMBER; APPOINTMENT.—

20 (A) IN GENERAL.—The Commission shall

21 be composed of 12 individuals appointed not

22 later than January 15, 1997, of which—

23 (i) 2 shall be appointed by the Chair24 man of the Committee on Finance of the

25 Senate, and 1 shall be appointed by the
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1 ranking minority member of the Commit2 tee;

3 (ii) 2 shall be appointed by the Chair4 man of the Committee on Ways and Means

5 of the House of Representatives, and 1

6 shall be appointed by the ranking minority

7 member of the Committee; and

8 (iii) 6 shall be appointed by the Sec9 retary of Health and Human Services.

10 (B) QUALIFICATIONS OF MEMBERS.—

11 Members of the Commission shall have exper12 tise and experience in the evaluation and devel13 opment of child support guidelines. At least 1

14 member shall represent advocacy groups for

15 custodial parents, at least 1 member shall rep16 resent advocacy groups for noncustodial par17 ents, and at least 1 member shall be the direc18 tor of a State program under part D of title IV

19 of the Social Security Act.

20 (2) TERMS OF OFFICE.—Each member shall be

21 appointed for a term of 2 years. A vacancy in the

22 Commission shall be filled in the manner in which

23 the original appointment was made.

24 (e) COMMISSION POWERS, COMPENSATION, ACCESS

25 TO INFORMATION, AND SUPERVISION.—The first sentence
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1 of subparagraph (C), the first and third sentences of sub2 paragraph (D), subparagraph (F) (except with respect to

3 the conduct of medical studies), clauses (ii) and (iii) of

4 subparagraph (G), and subparagraph (H) of section

5 1886(e)(6) of the Social Security Act shall apply to the

6 Commission in the same manner in which such provisions

7 apply to the Prospective Payment Assessment Commis8 sion.

9 (f) REPORT.—Not later than 2 years after the ap10 pointment of members, the Commission shall submit to

11 the President, the Committee on Ways and Means of the

12 House of Representatives, and the Committee on Finance

13 of the Senate, a recommended national child support

14 guideline and a final assessment of issues relating to such

15 a proposed national child support guideline.

16 (g) TERMINATION.—The Commission shall terminate

17 6 months after the submission of the report described in

18 subsection (e).

19 SEC. 952. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST20 MENT OF CHILD SUPPORT ORDERS.

21 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend22 ed to read as follows:

23 ‘‘(10) Procedures under which the State shall

24 review and adjust each support order being enforced

25 under this part upon the request of either parent or
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•HR 2915 IH

1 the State if there is an assignment. Such procedures

2 shall provide the following:

3 ‘‘(A) The State shall review and, as appro4 priate, adjust the support order every 3 years,

5 taking into account the best interests of the

6 child involved.

7 ‘‘(B)(i) The State may elect to review and,

8 if appropriate, adjust an order pursuant to sub9 paragraph (A) by—

10 ‘‘(I) reviewing and, if appropriate, ad11 justing the order in accordance with the

12 guidelines established pursuant to section

13 467(a) if the amount of the child support

14 award under the order differs from the

15 amount that would be awarded in accord16 ance with the guidelines; or

17 ‘‘(II) applying a cost-of-living adjust18 ment to the order in accordance with a for19 mula developed by the State and permit ei20 ther party to contest the adjustment, with21 in 30 days after the date of the notice of

22 the adjustment, by making a request for

23 review and, if appropriate, adjustment of

24 the order in accordance with the child sup-
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•HR 2915 IH

1 port guidelines established pursuant to sec2 tion 467(a).

3 ‘‘(ii) Any adjustment under clause (i) shall

4 be made without a requirement for proof or

5 showing of a change in circumstances.

6 ‘‘(C) The State may use automated meth7 ods (including automated comparisons with

8 wage or State income tax data) to identify or9 ders eligible for review, conduct the review,

10 identify orders eligible for adjustment, and

11 apply the appropriate adjustment to the orders

12 eligible for adjustment under the threshold es13 tablished by the State.

14 ‘‘(D)(i) The State shall, at the request of

15 either parent subject to such an order or of any

16 State child support enforcement agency, review

17 and, if appropriate, adjust the order in accord18 ance with the guidelines established pursuant to

19 section 467(a) based upon a substantial change

20 in the circumstances of either parent.

21 ‘‘(ii) The State shall provide notice to the

22 parents subject to such an order informing

23 them of their right to request the State to re24 view and, if appropriate, adjust the order pur-
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1 suant to clause (i). The notice may be included

2 in the order.’’.

3 SEC. 953. FURNISHING CONSUMER REPORTS FOR CERTAIN

4 PURPOSES RELATING TO CHILD SUPPORT.

5 Section 604 of the Fair Credit Reporting Act (15

6 U.S.C. 1681b) is amended by adding at the end the follow7 ing new paragraphs:

8 ‘‘(4) In response to a request by the head of a

9 State or local child support enforcement agency (or

10 a State or local government official authorized by

11 the head of such an agency), if the person making

12 the request certifies to the consumer reporting agen13 cy that—

14 ‘‘(A) the consumer report is needed for the

15 purpose of establishing an individual’s capacity

16 to make child support payments or determining

17 the appropriate level of such payments;

18 ‘‘(B) the paternity of the consumer for the

19 child to which the obligation relates has been

20 established or acknowledged by the consumer in

21 accordance with State laws under which the ob22 ligation arises (if required by those laws);

23 ‘‘(C) the person has provided at least 10

24 days’ prior notice to the consumer whose report

25 is requested, by certified or registered mail to
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1 the last known address of the consumer, that

2 the report will be requested; and

3 ‘‘(D) the consumer report will be kept con4 fidential, will be used solely for a purpose de5 scribed in subparagraph (A), and will not be

6 used in connection with any other civil, admin7 istrative, or criminal proceeding, or for any

8 other purpose.

9 ‘‘(5) To an agency administering a State plan

10 under section 454 of the Social Security Act (42

11 U.S.C. 654) for use to set an initial or modified

12 child support award.’’.

13 SEC. 954. NONLIABILITY FOR DEPOSITORY INSTITUTIONS

14 PROVIDING FINANCIAL RECORDS TO STATE

15 CHILD SUPPORT ENFORCEMENT AGENCIES

16 IN CHILD SUPPORT CASES.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of Federal or State law, a depository institution shall

19 not be liable under any Federal or State law to any person

20 for disclosing any financial record of an individual to a

21 State child support enforcement agency attempting to es22 tablish, modify, or enforce a child support obligation of

23 such individual.

24 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

25 RECORD OBTAINED BY STATE CHILD SUPPORT EN-
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1 FORCEMENT AGENCY.—A State child support enforcement

2 agency which obtains a financial record of an individual

3 from a financial institution pursuant to subsection (a)

4 may disclose such financial record only for the purpose

5 of, and to the extent necessary in, establishing, modifying,

6 or enforcing a child support obligation of such individual.

7 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO8 SURE.—

9 (1) DISCLOSURE BY STATE OFFICER OR EM10 PLOYEE.—If any person knowingly, or by reason of

11 negligence, discloses a financial record of an individ12 ual in violation of subsection (b), such individual

13 may bring a civil action for damages against such

14 person in a district court of the United States.

15 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO16 NEOUS INTERPRETATION.—No liability shall arise

17 under this subsection with respect to any disclosure

18 which results from a good faith, but erroneous, in19 terpretation of subsection (b).

20 (3) DAMAGES.—In any action brought under

21 paragraph (1), upon a finding of liability on the part

22 of the defendant, the defendant shall be liable to the

23 plaintiff in an amount equal to the sum of—

24 (A) the greater of—
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1 (i) $1,000 for each act of unauthor2 ized disclosure of a financial record with

3 respect to which such defendant is found

4 liable; or

5 (ii) the sum of—

6 (I) the actual damages sustained

7 by the plaintiff as a result of such un8 authorized disclosure; plus

9 (II) in the case of a willful disclo10 sure or a disclosure which is the re11 sult of gross negligence, punitive dam12 ages; plus

13 (B) the costs (including attorney’s fees) of

14 the action.

15 (d) DEFINITIONS.—For purposes of this section:

16 (1) The term ‘‘depository institution’’ means—

17 (A) a depository institution, as defined in

18 section 3(c) of the Federal Deposit Insurance

19 Act (12 U.S.C. 1813(c));

20 (B) an institution-affiliated party, as de21 fined in section 3(u) of such Act (12 U.S.C.

22 1813(v)); and

23 (C) any Federal credit union or State cred24 it union, as defined in section 101 of the Fed25 eral Credit Union Act (12 U.S.C. 1752), includ-
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1 ing an institution-affiliated party of such a

2 credit union, as defined in section 206(r) of

3 such Act (12 U.S.C. 1786(r)).

4 (2) The term ‘‘financial record’’ has the mean5 ing given such term in section 1101 of the Right to

6 Financial Privacy Act of 1978 (12 U.S.C. 3401).

7 (3) The term ‘‘State child support enforcement

8 agency’’ means a State agency which administers a

9 State program for establishing and enforcing child

10 support obligations.

11 Subtitle G—Enforcement of

12 Support Orders

13 SEC. 961. INTERNAL REVENUE SERVICE COLLECTION OF

14 ARREARAGES.

15 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

16 Section 6305(a) of the Internal Revenue Code of 1986 (re17 lating to collection of certain liability) is amended—

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

19 (3);

20 (2) by striking the period at the end of para21 graph (4) and inserting ‘‘, and’’;

22 (3) by adding at the end the following new

23 paragraph:

24 ‘‘(5) no additional fee may be assessed for ad25 justments to an amount previously certified pursu-
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1 ant to such section 452(b) with respect to the same

2 obligor.’’; and

3 (4) by striking ‘‘Secretary of Health, Edu4 cation, and Welfare’’ each place it appears and in5 serting ‘‘Secretary of Health and Human Services’’.

6 (b) EFFECTIVE DATE.—The amendments made by

7 this section shall become effective October 1, 1997.

8 SEC. 962. 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 paragraphs (1) and (2) shall be available to

21 satisfy any other such processes on a 1st-come, 1st22 served basis, with any such process being satisfied

23 out of such moneys as remain after the satisfaction

24 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) workers’ 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 new subparagraph:

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 1st 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 new subsection:

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. 963. 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 962(c)(4), is amend23 ed—

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 new subsection:

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 assigns to a State the rights of

14 the spouse or former spouse to receive support, the

15 Secretary concerned may make the child support

16 payments referred to in the preceding sentence to

17 that State in amounts consistent with that assign18 ment of rights.’’.

19 (3) ARREARAGES OWED BY MEMBERS OF THE

20 UNIFORMED SERVICES.—Section 1408(d) of such

21 title is amended by adding at the end the following

22 new paragraph:

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 satisfy 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 satisfy 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 1st pay period that begins after such 30-day period.

13 SEC. 964. VOIDING OF FRAUDULENT TRANSFERS.

14 Section 466 (42 U.S.C. 666), as amended by section

15 921, is amended by adding at the end the following new

16 subsection:

17 ‘‘(g) In order to satisfy section 454(20)(A), each

18 State must have in effect—

19 ‘‘(1)(A) the Uniform Fraudulent Conveyance

20 Act of 1981;

21 ‘‘(B) the Uniform Fraudulent Transfer Act of

22 1984; or

23 ‘‘(C) another law, specifying indicia of fraud

24 which create a prima facie case that a debtor trans25 ferred income or property to avoid payment to a
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1 child support creditor, which the Secretary finds af2 fords comparable rights to child support creditors;

3 and

4 ‘‘(2) procedures under which, in any case in

5 which the State knows of a transfer by a child sup6 port debtor with respect to which such a prima facie

7 case is established, the State must—

8 ‘‘(A) seek to void such transfer; or

9 ‘‘(B) obtain a settlement in the best inter10 ests of the child support creditor.’’.

11 SEC. 965. WORK REQUIREMENT FOR PERSONS OWING

12 CHILD SUPPORT.

13 Section 466(a) (42 U.S.C. 666(a)), as amended by

14 sections 901(a), 915, 917(a), and 923, is amended by add15 ing at the end the following new paragraph:

16 ‘‘(15) Procedures requiring the State, in any

17 case in which an individual owes support with re18 spect to a child receiving services under this part, to

19 seek a court order or administrative order that re20 quires the individual to—

21 ‘‘(A) pay such support in accordance with

22 a plan approved by the court; or

23 ‘‘(B) if the individual is not working and

24 is not incapacitated, participate in work activi25 ties (including, at State option, work activities
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1 as defined in section 482) as the court deems

2 appropriate.’’.

3 SEC. 966. DEFINITION OF SUPPORT ORDER.

4 Section 453 (42 U.S.C. 653) as amended by sections

5 916 and 945(b), is amended by adding at the end the fol6 lowing new subsection:

7 ‘‘(o) As used in this part, the term ‘support order’

8 means a judgment, decree, or order, whether temporary,

9 final, or subject to modification, issued by a court or an

10 administrative agency of competent jurisdiction, for the

11 support and maintenance of a child, including a child who

12 has attained the age of majority under the law of the issu13 ing State, or a child and the parent with whom the child

14 is living, which provides for monetary support, health care,

15 arrearages, or reimbursement, and which may include re16 lated costs and fees, interest and penalties, income with17 holding, attorneys’ fees, and other relief.’’.

18 SEC. 967. REPORTING ARREARAGES TO CREDIT BUREAUS.

19 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

20 to read as follows:

21 ‘‘(7)(A) Procedures (subject to safeguards pur22 suant to subparagraph (B)) requiring the State to

23 report periodically to consumer reporting agencies

24 (as defined in section 603(f) of the Fair Credit Re25 porting Act (15 U.S.C. 1681a(f)) the name of any
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1 absent parent who is delinquent in the payment of

2 support, and the amount of overdue support owed by

3 such parent.

4 ‘‘(B) Procedures ensuring that, in carrying out

5 subparagraph (A), information with respect to an

6 absent parent is reported—

7 ‘‘(i) only after such parent has been af8 forded all due process required under State law,

9 including notice and a reasonable opportunity

10 to contest the accuracy of such information;

11 and

12 ‘‘(ii) only to an entity that has furnished

13 evidence satisfactory to the State that the en14 tity is a consumer reporting agency.’’.

15 SEC. 968. LIENS.

16 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

17 to read as follows:

18 ‘‘(4) Procedures under which—

19 ‘‘(A) liens arise by operation of law against

20 real and personal property for amounts of over21 due support owed by an absent parent who re22 sides or owns property in the State; and

23 ‘‘(B) the State accords full faith and credit

24 to liens described in subparagraph (A) arising
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1 in another State, without registration of the un2 derlying order.’’.

3 SEC. 969. STATE LAW AUTHORIZING SUSPENSION OF LI4 CENSES.

5 Section 466(a) (42 U.S.C. 666(a)), as amended by

6 sections 915, 917(a), 923, and 965, is amended by adding

7 at the end the following new paragraph:

8 ‘‘(16) Procedures under which the State has

9 (and uses in appropriate cases) authority to withhold

10 or suspend, or to restrict the use of, driver’s li11 censes, professional and occupational licenses, and

12 recreational licenses of individuals owing overdue

13 support or failing, after receiving appropriate notice,

14 to comply with subpoenas or warrants relating to

15 paternity or child support proceedings.’’.

16 SEC. 970. DENIAL OF PASSPORTS FOR NONPAYMENT OF

17 CHILD SUPPORT.

18 (a) HHS CERTIFICATION PROCEDURE.—

19 (1) SECRETARIAL RESPONSIBILITY.—Section

20 452 (42 U.S.C. 652), as amended by section 945, is

21 amended by adding at the end the following new

22 subsection:

23 ‘‘(k)(1) If the Secretary receives a certification by a

24 State agency in accordance with the requirements of sec25 tion 454(31) that an individual owes arrearages of child
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1 support in an amount exceeding $5,000, the Secretary

2 shall transmit such certification to the Secretary of State

3 for action (with respect to denial, revocation, or limitation

4 of passports) pursuant to section 470(b) of the Work Op5 portunity Act of 1995.

6 ‘‘(2) The Secretary shall not be liable to an individual

7 for any action with respect to a certification by a State

8 agency under this section.’’.

9 (2) STATE CSE AGENCY RESPONSIBILITY.—Sec10 tion 454 (42 U.S.C. 654), as amended by sections

11 901(b), 904(a), 912(b), 913(a), 933, and 943(a), is

12 amended—

13 (A) by striking ‘‘and’’ at the end of para14 graph (29);

15 (B) by striking the period at the end of

16 paragraph (30) and inserting ‘‘; and’’; and

17 (C) by adding after paragraph (30) the fol18 lowing new paragraph:

19 ‘‘(31) provide that the State agency will have in

20 effect a procedure (which may be combined with the

21 procedure for tax refund offset under section 464)

22 for certifying to the Secretary, for purposes of the

23 procedure under section 452(k) (concerning denial of

24 passports), determinations that individuals owe ar-
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1 rearages of child support in an amount exceeding

2 $5,000, under which procedure—

3 ‘‘(A) each individual concerned is afforded

4 notice of such determination and the con5 sequences thereof, and an opportunity to con6 test the determination; and

7 ‘‘(B) the certification by the State agency

8 is furnished to the Secretary in such format,

9 and accompanied by such supporting docu10 mentation, as the Secretary may require.’’.

11 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

12 OF PASSPORTS.—

13 (1) IN GENERAL.—The Secretary of State shall,

14 upon certification by the Secretary of Health and

15 Human Services transmitted under section 452(k) of

16 the Social Security Act, refuse to issue a passport to

17 such individual, and may revoke, restrict, or limit a

18 passport issued previously to such individual.

19 (2) LIMIT ON LIABILITY.—The Secretary of

20 State shall not be liable to an individual for any ac21 tion with respect to a certification by a State agency

22 under this section.

23 (c) EFFECTIVE DATE.—This section and the amend24 ments made by this section shall become effective October

25 1, 1996.
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1 SEC. 971. INTERNATIONAL CHILD SUPPORT ENFORCE2 MENT.

3 The Secretary of State is authorized to negotiate re4 ciprocal agreements with foreign nations on behalf of the

5 States, territories, and possessions of the United States

6 regarding the international enforcement of child support

7 obligations and designating the Department of Health and

8 Human Services as the central authority for such enforce9 ment.

10 SEC. 972. DENIAL OF MEANS-TESTED FEDERAL BENEFITS

11 TO NONCUSTODIAL PARENTS WHO ARE DE12 LINQUENT IN PAYING CHILD SUPPORT.

13 (a) IN GENERAL.—Notwithstanding any other provi14 sion of law, a non-custodial parent who is more then 2

15 months delinquent in paying child support shall not be eli16 gible to receive any means-tested Federal benefits.

17 (b) EXCEPTION.—

18 (1) IN GENERAL.—Subsection (a) shall not

19 apply to an unemployed non-custodial parent who is

20 more then 2 months delinquent in paying child sup21 port if such parent—

22 (A) enters into a schedule of repayment for

23 past due child support with the entity that is24 sued the underlying child support order; and
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1 (B) meets all of the terms of repayment

2 specified in the schedule of repayment as en3 forced by the appropriate disbursing entity.

4 (2) 2-YEAR EXCLUSION.—(A) A non-custodial

5 parent who becomes delinquent in child support a

6 second time or any subsequent time shall not be eli7 gible to receive any means-tested Federal benefits

8 for a 2-year period beginning on the date that such

9 parent failed to meet such terms.

10 (B) At the end of that two-year period, para11 graph (A) shall once again apply to that individual.

12 (c) MEANS-TESTED FEDERAL BENEFITS.— For pur13 poses of this section, the term ‘‘means-tested Federal ben14 efits’’ means benefits under any program of assistance,

15 funded in whole or in part, by the Federal Government,

16 for which eligibility for benefits is based on need.

17 SEC. 973. CHILD SUPPORT ENFORCEMENT FOR INDIAN

18 TRIBES.

19 (a) CHILD SUPPORT ENFORCEMENT AGREE20 MENTS.—Section 454 (42 U.S.C. 654), as amended by

21 sections 901(b), 904(a), 912(b), 913(a), 933, 943(a), and

22 970(a)(2) is amended—

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

24 (30);
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1 (2) by striking the period at the end of para2 graph (31) and inserting ‘‘; and’’; and

3 (3) by adding after paragraph (31) the follow4 ing new paragraph:

5 ‘‘(32) provide that a State that receives funding

6 pursuant to section 429 and that has within its bor7 ders Indian country (as defined in section 1151 of

8 title 18, United States Code) shall, through the

9 State administering agency, make reasonable efforts

10 to enter into cooperative agreements with an Indian

11 tribe or tribal organization (as defined in paragraphs

12 (1) and (2) of section 428(c)), if the Indian tribe or

13 tribal organization demonstrates that such tribe or

14 organization has an established tribal court system

15 or a Court of Indian Offenses with the authority to

16 establish paternity, establish and enforce support or17 ders, and to enter support orders in accordance with

18 child support guidelines established by such tribe or

19 organization, under which the State and tribe or or20 ganization shall provide for the cooperative delivery

21 of child support enforcement services in Indian coun22 try and for the forwarding of all funding collected

23 pursuant to the functions performed by the tribe or

24 organization to the State agency, or conversely, by

25 the State agency to the tribe or organization, which
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1 shall distribute such funding in accordance with

2 such agreement.’’.

3 (b) DIRECT FEDERAL FUNDING TO INDIAN TRIBES

4 AND TRIBAL ORGANIZATIONS.—Section 455 (42 U.S.C.

5 655) is amended by adding at the end the following new

6 subsection:

7 ‘‘(b) The Secretary may, in appropriate cases, make

8 direct payments under this part to an Indian tribe or trib9 al organization which has an approved child support en10 forcement plan under this title. In determining whether

11 such payments are appropriate, the Secretary shall, at a

12 minimum, consider whether services are being provided to

13 eligible Indian recipients by the State agency through an

14 agreement entered into pursuant to section 454(32). The

15 Secretary shall provide for an appropriate adjustment to

16 the State allotment under this section to take into account

17 any payments made under this subsection to Indian tribes

18 or tribal organizations located within such State.

19 (c) COOPERATIVE ENFORCEMENT AGREEMENTS.—

20 Paragraph (7) of section 454 (42 U.S.C. 654) is amended

21 by inserting ‘‘and Indian tribes or tribal organizations (as

22 defined in section 450(b) of title 25, United States Code)’’

23 after ‘‘law enforcement officials’’.
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1 SEC. 974. FINANCIAL INSTITUTION DATA MATCHES.

2 Section 466(a) (42 U.S.C. 666(a)), as amended by

3 sections 915, 917(a), 923, 965, 969, and 976 is amended

4 by adding at the end the following new paragraph:

5 ‘‘(18) Procedures under which the State agency

6 shall enter into agreements with financial institu7 tions doing business within the State to develop and

8 operate a data match system, using automated data

9 exchanges to the maximum extent feasible, in which

10 such financial institutions are required to provide for

11 each calendar quarter the name, record address, so12 cial security number, and other identifying informa13 tion for each absent parent identified by the State

14 who maintains an account at such institution and, in

15 response to a notice of lien or levy, to encumber or

16 surrender, as the case may be, assets held by such

17 institution on behalf of any absent parent who is

18 subject to a child support lien pursuant to para19 graph (4). For purposes of this paragraph, the term

20 ‘financial institution’ means Federal and State com21 mercial savings banks, including savings and loan

22 associations and cooperative banks, Federal and

23 State chartered credit unions, benefit associations,

24 insurance companies, safe deposit companies,

25 money-market mutual funds, and any similar entity

26 authorized to do business in the State, and the term
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1 ‘account’ means a demand deposit account, checking

2 or negotiable withdrawal order account, savings ac3 count, time deposit account, or money-market mu4 tual fund account.

5 Subtitle H—Medical Support

6 SEC. 975. TECHNICAL CORRECTION TO ERISA DEFINITION

7 OF MEDICAL CHILD SUPPORT ORDER.

8 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em9 ployee Retirement Income Security Act of 1974 (29

10 U.S.C. 1169(a)(2)(B)) is amended—

11 (1) by striking ‘‘issued by a court of competent

12 jurisdiction’’;

13 (2) by striking the period at the end of clause

14 (ii) and inserting a comma; and

15 (3) by adding, after and below clause (ii), the

16 following:

17 ‘‘if such judgment, decree, or order (I) is issued

18 by a court of competent jurisdiction or (II) is

19 issued through an administrative process estab20 lished under State law and has the force and ef21 fect of law under applicable State law.’’.

22 (b) EFFECTIVE DATE.—

23 (1) IN GENERAL.—The amendments made by

24 this section shall take effect on the date of the en25 actment of this Act.
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1 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

2 JANUARY 1, 1996.—Any amendment to a plan re3 quired to be made by an amendment made by this

4 section shall not be required to be made before the

5 1st plan year beginning on or after January 1,

6 1996, if—

7 (A) during the period after the date before

8 the date of the enactment of this Act and be9 fore such 1st plan year, the plan is operated in

10 accordance with the requirements of the amend11 ments made by this section; and

12 (B) such plan amendment applies retro13 actively to the period after the date before the

14 date of the enactment of this Act and before

15 such 1st plan year.

16 A plan shall not be treated as failing to be operated

17 in accordance with the provisions of the plan merely

18 because it operates in accordance with this para19 graph.

20 SEC. 976. ENFORCEMENT OF ORDERS FOR HEALTH CARE

21 COVERAGE.

22 Section 466(a) (42 U.S.C. 666(a)), as amended by

23 sections 915, 917(a), 923, 965, and 969, is amended by

24 adding at the end the following new paragraph:
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1 ‘‘(17) Procedures under which all child support

2 orders enforced under this part shall include a provi3 sion for the health care coverage of the child, and

4 in the case in which an absent parent provides such

5 coverage and changes employment, and the new em6 ployer provides health care coverage, the State agen7 cy shall transfer notice of the provision to the em8 ployer, which notice shall operate to enroll the child

9 in the absent parent’s health plan, unless the absent

10 parent contests the notice.’’.

11 SEC. 977. ENFORCEMENT OF ORDERS AGAINST PATERNAL

12 GRANDPARENTS IN CASES OF MINOR PAR13 ENTS.

14 Section 466(a) (42 U.S.C. 666(a)), as amended by

15 sections 915, 917(a), 923, 965, 969, and 976, is amended

16 by adding at the end the following new paragraph:

17 ‘‘(17) Procedures under which any child sup18 port order enforced under this part with respect to

19 a child of minor parents, if the mother of such child

20 is receiving assistance under the State grant under

21 part A, shall be enforceable, jointly and severally,

22 against the paternal grandparents of such child.’’.
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1 Subtitle I—Enhancing Responsibil2 ity and Opportunity for

3 Nonresidential Parents

4 SEC. 981. 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 new section:

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 nonprofit

6 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. 991. 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 the date of the enactment of this Act.
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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 1st day of the 1st calendar

8 quarter beginning after the close of the 1st regular session

9 of the State legislature that begins after the date of the

10 enactment of this Act. For purposes of the previous sen11 tence, in the case of a State that has a 2-year legislative

12 session, each year of such session shall be deemed to be

13 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 X—REFORM OF PUBLIC

2 HOUSING

3 SEC. 1001. CEILING RENTS.

4 Section 3(a)(2) of the United States Housing Act of

5 1937 (42 U.S.C. 1437a(a)(2)) is amended to read as fol6 lows:

7 ‘‘(2) ESTABLISHMENT OF CEILING RENTS.—

8 ‘‘(A) IN GENERAL.—A public housing agency

9 may provide that each family residing in a public

10 housing project shall pay monthly rent in an amount

11 established by such agency in accordance with this

12 paragraph.

13 ‘‘(B) LIMITATIONS ON AMOUNT.—The rental

14 amount established under subparagraph (A)—

15 ‘‘(i) shall reflect the reasonable rental

16 value of the dwelling unit in which the family

17 resides, as compared with similar types and

18 sizes of dwelling units in the market area in

19 which the public housing project is located;

20 ‘‘(ii) shall be greater than or equal to the

21 monthly cost to operate the housing (including

22 any replacement reserves at the discretion of

23 the public housing agency); and

24 ‘‘(iii) shall not exceed the amount payable

25 as rent by such family under paragraph (1).’’.
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1 SEC. 1002. DEFINITION OF ADJUSTED INCOME FOR PUBLIC

2 HOUSING.

3 (a) DEFINITION OF ADJUSTED INCOME.—Section

4 3(b)(5) of the United States Housing Act of 1937 (42

5 U.S.C. 1437a(b)(5)) is amended to read as follows:

6 ‘‘(5) The term ‘adjusted income’ means the in7 come that remains after excluding—

8 ‘‘(A) $480 for each member of the family

9 residing in the household (other than the head

10 of the household or spouse)—

11 ‘‘(i) who is under 18 years of age; or

12 ‘‘(ii) who is—

13 ‘‘(I) 18 years of age or older; and

14 ‘‘(II) a person with disabilities or

15 a full-time student;

16 ‘‘(B) $400 for an elderly or disabled fam17 ily;

18 ‘‘(C) the amount by which the aggregate

19 of—

20 ‘‘(i) medical expenses for an elderly or

21 disabled family; and

22 ‘‘(ii) reasonable attendant care and

23 auxiliary apparatus expenses for each fam24 ily member who is a person with disabil25 ities, to the extent necessary to enable any

26 member of the family (including a member
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1 who is a person with disabilities) to be em2 ployed;

3 exceeds 3 percent of the annual income of the

4 family;

5 ‘‘(D) child care expenses, to the extent

6 necessary to enable another member of the fam7 ily to be employed or to further his or her edu8 cation;

9 ‘‘(E) excessive travel expenses, not to ex10 ceed $25 per family per week, for employment11 or education-related travel, except that this sub12 paragraph shall apply only to a family assisted

13 by an Indian housing authority; and

14 ‘‘(F) subject to the requirements of sub15 section (e), for public housing, adjustments to

16 earned income established by the public housing

17 agency, not to exceed 20 percent of the earned

18 income of the family.’’.

19 (b) ADJUSTMENTS TO DEFINITION OF EARNED IN20 COME.—Section 3 of the United States Housing Act of

21 1937 (42 U.S.C. 1437a) is amended—

22 (1) in the first undesignated paragraph imme23 diately following subsection (c)(3) (as added by sec24 tion 515(b) of the Cranston-Gonzalez National Af-
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1 fordable Housing Act), by striking ‘‘The earnings

2 of’’ and inserting the following:

3 ‘‘(d) EXCLUSION OF CERTAIN EARNINGS.—The

4 earnings of’’; and

5 (2) by adding at the end the following new sub6 section:

7 ‘‘(e) ADJUSTMENTS TO EARNED INCOME.—If a pub8 lic housing agency establishes any adjustment to income

9 pursuant to subsection (b)(5)(F), the Secretary—

10 ‘‘(1) shall not take into account any reduction

11 of the per dwelling unit rental income of the public

12 housing agency resulting from that adjustment in

13 calculating the contributions under section 9 for the

14 public housing agency for the operation of the public

15 housing; and

16 ‘‘(2) shall not reduce the level of operating sub17 sidies payable to the public housing agency due to

18 an increase in per dwelling unit rental income that

19 results from a higher level of income earned by any

20 residents whose adjusted incomes are calculated tak21 ing into account that adjustment to income, until

22 the public housing agency has recovered a sum equal

23 to the cumulative difference between—

24 ‘‘(A) the operating subsidies actually re25 ceived by the agency; and
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1 ‘‘(B) the operating subsidies that the pub2 lic housing agency would have received if para3 graph (1) was not applied.’’.

4 (c) REPORT.—Not later than 3 years after the date

5 of enactment of this Act, the Comptroller General of the

6 United States shall submit a report to the Congress de7 scribing the fiscal and societal impact of the amendment

8 made by subsection (b)(2).

9 (d) REPEAL OF CERTAIN PROVISIONS.—

10 (1) MAXIMUM ANNUAL LIMITATION ON RENT

11 INCREASES RESULTING FROM EMPLOYMENT.—Sec12 tion 957 of the Cranston-Gonzalez National Afford13 able Housing Act (42 U.S.C. 12714) is repealed ef14 fective November 28, 1990.

15 (2) ECONOMIC INDEPENDENCE.—Section 923

16 of the Housing and Community Development Act of

17 1992 (42 U.S.C. 12714 note) is repealed effective

18 October 28, 1992.

19 SEC. 1003. FAILURE TO COMPLY WITH OTHER WELFARE

20 AND PUBLIC ASSISTANCE PROGRAMS.

21 Title I of the United States Housing Act of 1937 (42

22 U.S.C. 1437 et seq.) is amended by adding at the end

23 the following new section:
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1 ‘‘SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE AND

2 PUBLIC ASSISTANCE PROGRAMS.

3 ‘‘(a) IN GENERAL.—If the benefits of a family are

4 reduced under a Federal, State, or local law relating to

5 welfare or a public assistance program for the failure of

6 any member of the family to perform an action required

7 under the law or program, the family may not, for the

8 duration of the reduction, receive any increased assistance

9 under this Act as the result of a decrease in the income

10 of the family to the extent that the decrease in income

11 is the result of the benefits reduction.

12 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply in

13 any case in which the benefits of a family are reduced be14 cause the welfare or public assistance program to which

15 the Federal, State, or local law relates limits the period

16 during which benefits may be provided under the pro17 gram.’’.

18 SEC. 1004. APPLICABILITY TO INDIAN HOUSING.

19 (a) IN GENERAL.—In accordance with section

20 201(b)(2) of the United States Housing Act of 1937, the

21 amendments made by this title shall apply to public hous22 ing developed or operated pursuant to a contract between

23 the Secretary and an Indian housing authority.

24 (b) DEFINITIONS.—For purposes of this section—
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1 (1) the term ‘‘Indian housing authority’’ has

2 the same meaning as in section 3(b) of the United

3 States Housing Act of 1937;

4 (2) the term ‘‘public housing’’ has the same

5 meaning as in section 3(b) of the United States

6 Housing Act of 1937; and

7 (3) the term ‘‘Secretary’’ means the Secretary

8 of Housing and Urban Development.

9 SEC. 1005. IMPLEMENTATION.

10 The Secretary shall issue such regulations as may be

11 necessary to carry out this title and the amendments made

12 by this title.

13 SEC. 1006. DEMONSTRATION PROJECT FOR ELIMINATION

14 OF TAKE-ONE-TAKE-ALL REQUIREMENT.

15 In order to demonstrate the effects of eliminating the

16 requirement under section 8(t) of the United States Hous17 ing Act of 1937, notwithstanding any other provision of

18 law, beginning on the date of enactment of this Act, sec19 tion 8(t) of the United States Housing Act of 1937 shall

20 not apply with respect to the multifamily housing project

21 (as such term is defined in section 8(t)(2) of the United

22 States Housing Act of 1937) consisting of the dwelling

23 units located at 2401–2479 Sommerset Circle, in Madi24 son, Wisconsin.
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1 SEC. 1007. FRAUD UNDER MEANS-TESTED WELFARE AND

2 PUBLIC ASSISTANCE PROGRAMS.

3 (a) IN GENERAL.—If an individual’s benefits under

4 a Federal, State, or local law relating to a means-tested

5 welfare or a public assistance program are reduced be6 cause of an act of fraud by the individual under the law

7 or program, the individual may not, for the duration of

8 the reduction, receive an increased benefit under any other

9 means-tested welfare or public assistance program for

10 which Federal funds are appropriated as a result of a de11 crease in the income of the individual (determined under

12 the applicable program) attributable to such reduction.

13 (b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS

14 FOR WHICH FEDERAL FUNDS ARE APPROPRIATED.—For

15 purposes of subsection (a), the term ‘‘means-tested welfare

16 or public assistance program for which Federal funds are

17 appropriated’’ shall include the food stamp program under

18 the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any

19 program of public or assisted housing under title I of the

20 United States Housing Act of 1937 (42 U.S.C. 1437 et

21 seq.), and State programs funded under part A of title

22 IV of the Social Security Act (42 U.S.C. 601 et seq.).

23 SEC. 1008. EFFECTIVE DATE.

24 This title and the amendments made by this title

25 shall take effect on the date of enactment of this Act.
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1 TITLE XI—CHILD ABUSE

2 PREVENTION AND TREATMENT

3 SEC. 1101. SHORT TITLE.

4 This title may be cited as the ‘‘Child Abuse Preven5 tion and Treatment Act Amendments of 1995’’.

6 Subtitle A—General Program

7 SEC. 1111. REFERENCE.

8 Except as otherwise expressly provided, whenever in

9 this subtitle an amendment or repeal is expressed in terms

10 of an amendment to, or repeal of, a section or other provi11 sion, the reference shall be considered to be made to a

12 section or other provision of the Child Abuse Prevention

13 and Treatment Act (42 U.S.C. 5101 et seq.).

14 SEC. 1112. FINDINGS.

15 Section 2 (42 U.S.C. 5101 note) is amended—

16 (1) in paragraph (1), the read as follows:

17 ‘‘(1) each year, close to 1,000,000 American

18 children are victims of abuse and neglect;’’;

19 (2) in paragraph (3)(C), by inserting ‘‘assess20 ment,’’ after ‘‘prevention,’’;

21 (3) in paragraph (4)—

22 (A) by striking ‘‘tens of’’; and

23 (B) by striking ‘‘direct’’ and all that fol24 lows through the semicolon and inserting ‘‘tan-
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1 gible expenditures, as well as significant intan2 gible costs;’’;

3 (4) in paragraph (7), by striking ‘‘remedy the

4 causes of’’ and inserting ‘‘prevent’’;

5 (5) in paragraph (8), by inserting ‘‘safety,’’

6 after ‘‘fosters the health,’’;

7 (6) in paragraph (10)—

8 (A) by striking ‘‘ensure that every commu9 nity in the United States has’’ and inserting

10 ‘‘assist States and communities with’’; and

11 (B) by inserting ‘‘and family’’ after ‘‘com12 prehensive child’’; and

13 (7) in paragraph (11)—

14 (A) by striking ‘‘child protection’’ each

15 place that such appears and inserting ‘‘child

16 and family protection’’; and

17 (B) in subparagraph (D), by striking ‘‘suf18 ficient’’.

19 SEC. 1113. OFFICE OF CHILD ABUSE AND NEGLECT.

20 Section 101 (42 U.S.C.5101) is amended to read as

21 follows:

22 ‘‘SEC. 101. OFFICE OF CHILD ABUSE AND NEGLECT.

23 ‘‘(a) ESTABLISHMENT.—The Secretary of Health

24 and Human Services may establish an office to be known

25 as the Office of Child Abuse and Neglect.
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1 ‘‘(b) PURPOSE.—The purpose of the Office estab2 lished under subsection (a) shall be to execute and coordi3 nate the functions and activities of this Act. In the event

4 that such functions and activities are performed by an5 other entity or entities within the Department of Health

6 and Human Services, the Secretary shall ensure that such

7 functions and activities are executed with the necessary

8 expertise and in a fully coordinated manner involving reg9 ular intradepartmental and interdepartmental consulta10 tion with all agencies involved in child abuse and neglect

11 activities.’’.

12 SEC. 1114. ADVISORY BOARD ON CHILD ABUSE AND NE13 GLECT.

14 Section 102 (42 U.S.C.5102) is amended to read as

15 follows:

16 ‘‘SEC. 102. ADVISORY BOARD ON CHILD ABUSE AND NE17 GLECT.

18 ‘‘(a) APPOINTMENT.—The Secretary may appoint an

19 advisory board to make recommendations to the Secretary

20 and to the appropriate committees of Congress concerning

21 specific issues relating to child abuse and neglect.

22 ‘‘(b) SOLICITATION OF NOMINATIONS.—The Sec23 retary shall publish a notice in the Federal Register solic24 iting nominations for the appointment of members of the

25 advisory board under subsection (a).
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1 ‘‘(c) COMPOSITION.—In establishing the board under

2 subsection (a), the Secretary shall appoint members from

3 the general public who are individuals knowledgeable in

4 child abuse and neglect prevention, intervention, treat5 ment, or research, and with due consideration to represen6 tation of ethnic or racial minorities and diverse geographic

7 areas, and who represent—

8 ‘‘(1) law (including the judiciary);

9 ‘‘(2) psychology (including child development);

10 ‘‘(3) social services (including child protective

11 services);

12 ‘‘(4) medicine (including pediatrics);

13 ‘‘(5) State and local government;

14 ‘‘(6) organizations providing services to disabled

15 persons;

16 ‘‘(7) organizations providing services to adoles17 cents;

18 ‘‘(8) teachers;

19 ‘‘(9) parent self-help organizations;

20 ‘‘(10) parents’ groups;

21 ‘‘(11) voluntary groups;

22 ‘‘(12) family rights groups; and

23 ‘‘(13) children’s rights advocates.
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1 ‘‘(d) VACANCIES.—Any vacancy in the membership of

2 the board shall be filled in the same manner in which the

3 original appointment was made.

4 ‘‘(e) ELECTION OF OFFICERS.—The board shall elect

5 a chairperson and vice-chairperson at its first meeting

6 from among the members of the board.

7 ‘‘(f) DUTIES.—Not later than 1 year after the estab8 lishment of the board under subsection (a), the board shall

9 submit to the Secretary and the appropriate committees

10 of Congress a report, or interim report, containing—

11 ‘‘(1) recommendations on coordinating Federal,

12 State, and local child abuse and neglect activities

13 with similar activities at the Federal, State, and

14 local level pertaining to family violence prevention;

15 ‘‘(2) specific modifications needed in Federal

16 and State laws and programs to reduce the number

17 of unfounded or unsubstantiated reports of child

18 abuse or neglect while enhancing the ability to iden19 tify and substantiate legitimate cases of abuse or ne20 glect which place a child in danger; and

21 ‘‘(3) recommendations for modifications needed

22 to facilitate coordinated national data collection with

23 respect to child protection and child welfare.’’.

24 SEC. 1115. REPEAL OF INTERAGENCY TASK FORCE.

25 Section 103 (42 U.S.C.5103) is repealed.
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1 SEC. 1116. NATIONAL CLEARINGHOUSE FOR INFORMATION

2 RELATING TO CHILD ABUSE.

3 Section 104 (42 U.S.C.5104) is amended—

4 (1) in subsection (a), to read as follows:

5 ‘‘(a) ESTABLISHMENT.—The Secretary shall through

6 the Department, or by one or more contracts of not less

7 than 3 years duration let through a competition, establish

8 a national clearinghouse for information relating to child

9 abuse.’’;

10 (2) in subsection (b)—

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

12 by striking ‘‘Director’’ and inserting ‘‘Sec13 retary’’;

14 (B) in paragraph (1)—

15 (i) by inserting ‘‘assessment,’’ after

16 ‘‘prevention,’’; and

17 (ii) by striking ‘‘, including’’ and all

18 that follows through ‘‘105(b)’’ and insert19 ing ‘‘and’’;

20 (C) in paragraph (2)—

21 (i) in subparagraph (A), by striking

22 ‘‘general population’’ and inserting ‘‘Unit23 ed States’’;

24 (ii) in subparagraph (B), by adding

25 ‘‘and’’ at the end thereof;
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1 (iii) in subparagraph (C), by striking

2 ‘‘; and’’ at the end thereof and inserting a

3 period; and

4 (iv) by striking subparagraph (D);

5 and

6 (D) by striking paragraph (3); and

7 (3) in subsection (c)—

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

9 by striking ‘‘Director’’ and inserting ‘‘Sec10 retary’’;

11 (B) in paragraph (2), by striking ‘‘that is

12 represented on the task force’’ and inserting

13 ‘‘involved with child abuse and neglect and

14 mechanisms for the sharing of such information

15 among other Federal agencies and clearing16 houses’’;

17 (C) in paragraph (3), by striking ‘‘State,

18 regional’’ and all that follows and inserting the

19 following: ‘‘Federal, State, regional, and local

20 child welfare data systems which shall include:

21 ‘‘(A) standardized data on false, un22 founded, unsubstantiated, and substantiated re23 ports; and

24 ‘‘(B) information on the number of deaths

25 due to child abuse and neglect;’’;
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1 (D) by redesignating paragraph (4) as

2 paragraph (6); and

3 (E) by inserting after paragraph (3), the

4 following new paragraphs:

5 ‘‘(4) through a national data collection and

6 analysis program and in consultation with appro7 priate State and local agencies and experts in the

8 field, collect, compile, and make available State child

9 abuse and neglect reporting information which, to

10 the extent practical, shall be universal and case spe11 cific, and integrated with other case-based foster

12 care and adoption data collected by the Secretary;

13 ‘‘(5) compile, analyze, and publish a summary

14 of the research conducted under section 105(a);

15 and’’.

16 SEC. 1117. RESEARCH, EVALUATION AND ASSISTANCE AC17 TIVITIES.

18 (a) RESEARCH.—Section 105(a) (42 (42 U.S.C.

19 5105(a)) is amended—

20 (1) in the section heading, by striking ‘‘OF

21 THE NATIONAL CENTER ON CHILD ABUSE

22 AND NEGLECT’’;

23 (2) in paragraph (1)—

24 (A) in the matter preceding subparagraph

25 (A), by striking ‘‘, through the Center, conduct
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1 research on’’ and inserting ‘‘, in consultation

2 with other Federal agencies and recognized ex3 perts in the field, carry out a continuing inter4 disciplinary program of research that is de5 signed to provide information needed to better

6 protect children from abuse or neglect and to

7 improve the well-being of abused or neglected

8 children, with at least a portion of such re9 search being field initiated. Such research pro10 gram may focus on’’;

11 (B) by redesignating subparagraphs (A)

12 through (C) as subparagraph (B) through (D),

13 respectively;

14 (C) by inserting before subparagraph (B)

15 (as so redesignated) the following new subpara16 graph:

17 ‘‘(A) the nature and scope of child abuse

18 and neglect;’’;

19 (D) in subparagraph (B) (as so redesig20 nated), to read as follows:

21 ‘‘(B) causes, prevention, assessment, iden22 tification, treatment, cultural and socio-eco23 nomic distinctions, and the consequences of

24 child abuse and neglect;’’;
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1 (E) in subparagraph (D) (as so redesig2 nated)—

3 (i) by striking clause (ii); and

4 (ii) in clause (iii), to read as follows:

5 ‘‘(ii) the incidence of substantiated

6 and unsubstantiated reported child abuse

7 cases;

8 ‘‘(iii) the number of substantiated

9 cases that result in a judicial finding of

10 child abuse or neglect or related criminal

11 court convictions;

12 ‘‘(iv) the extent to which the number

13 of unsubstantiated, unfounded and false

14 reported cases of child abuse or neglect

15 have contributed to the inability of a State

16 to respond effectively to serious cases of

17 child abuse or neglect;

18 ‘‘(v) the extent to which the lack of

19 adequate resources and the lack of ade20 quate training of reporters have contrib21 uted to the inability of a State to respond

22 effectively to serious cases of child abuse

23 and neglect;

24 ‘‘(vi) the number of unsubstantiated,

25 false, or unfounded reports that have re-
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1 sulted in a child being placed in substitute

2 care, and the duration of such placement;

3 ‘‘(vii) the extent to which unsubstan4 tiated reports return as more serious cases

5 of child abuse or neglect;

6 ‘‘(viii) the incidence and prevalence of

7 physical, sexual, and emotional abuse and

8 physical and emotional neglect in sub9 stitute care; and

10 ‘‘(ix) the incidence and outcomes of

11 abuse allegations reported within the con12 text of divorce, custody, or other family

13 court proceedings, and the interaction be14 tween this venue and the child protective

15 services system.’’; and

16 (3) in paragraph (2)—

17 (A) in subparagraph (A)—

18 (i) by striking ‘‘and demonstrations’’;

19 and

20 (ii) by striking ‘‘paragraph (1)(A) and

21 activities under section 106’’ and inserting

22 ‘‘paragraph (1)’’; and

23 (B) in subparagraph (B), by striking ‘‘and

24 demonstration’’.
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1 (b) REPEAL.—Subsection (b) of section 105 (42

2 U.S.C. 5105(b)) is repealed.

3 (c) TECHNICAL ASSISTANCE.—Section 105(c) (42

4 U.S.C. 5105(c)) is amended—

5 (1) by striking ‘‘The Secretary’’ and inserting:

6 ‘‘(1) IN GENERAL.—The Secretary’’;

7 (2) by striking ‘‘, through the Center,’’;

8 (3) by inserting ‘‘State and local’’ before ‘‘pub9 lic and nonprofit’’;

10 (4) by inserting ‘‘assessment,’’ before ‘‘identi11 fication’’; and

12 (5) by adding at the end thereof the following

13 new paragraphs:

14 ‘‘(2) EVALUATION.—Such technical assistance

15 may include an evaluation or identification of—

16 ‘‘(A) various methods and procedures for

17 the investigation, assessment, and prosecution

18 of child physical and sexual abuse cases;

19 ‘‘(B) ways to mitigate psychological trau20 ma to the child victim; and

21 ‘‘(C) effective programs carried out by the

22 States under titles I and II.

23 ‘‘(3) DISSEMINATION.—The Secretary may pro24 vide for and disseminate information relating to var-
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1 ious training resources available at the State and

2 local level to—

3 ‘‘(A) individuals who are engaged, or who

4 intend to engage, in the prevention, identifica5 tion, and treatment of child abuse and neglect;

6 and

7 ‘‘(B) appropriate State and local officials

8 to assist in training law enforcement, legal, ju9 dicial, medical, mental health, education, and

10 child welfare personnel in appropriate methods

11 of interacting during investigative, administra12 tive, and judicial proceedings with children who

13 have been subjected to abuse.’’.

14 (d) GRANTS AND CONTRACTS.—Section 105(d)(2)

15 (42 U.S.C. 5105(d)(2)) is amended by striking the second

16 sentence.

17 (e) PEER REVIEW.—Section 105(e) (42 U.S.C.

18 5105(e)) is amended—

19 (1) in paragraph (1)—

20 (A) in subparagraph (A)—

21 (i) by striking ‘‘establish a formal’’

22 and inserting ‘‘, in consultation with ex23 perts in the field and other federal agen24 cies, establish a formal, rigorous, and meri25 torious’’;
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1 (ii) by striking ‘‘and contracts’’; and

2 (iii) by adding at the end thereof the

3 following new sentence: ‘‘The purpose of

4 this process is to enhance the quality and

5 usefulness of research in the field of child

6 abuse and neglect.’’; and

7 (B) in subparagraph (B)—

8 (i) by striking ‘‘Office of Human De9 velopment’’ and inserting ‘‘Administration

10 for Children and Families’’; and

11 (ii) by adding at the end thereof the

12 following new sentence: ‘‘The Secretary

13 shall ensure that the peer review panel uti14 lizes scientifically valid review criteria and

15 scoring guidelines for review committees.’’;

16 and

17 (2) in paragraph (2)—

18 (A) in the matter preceding subparagraph

19 (A), by striking ‘‘, contract, or other financial

20 assistance’’; and

21 (B) by adding at the end thereof the fol22 lowing flush sentence:

23 ‘‘The Secretary shall award grants under this sec24 tion on the basis of competitive review.’’.
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1 SEC. 1118. GRANTS FOR DEMONSTRATION PROGRAMS.

2 Section 106 (42 U.S.C. 5106) is amended—

3 (1) in the section heading, by striking ‘‘OR

4 SERVICE’’;

5 (2) in subsection (a), to read as follows:

6 ‘‘(a) DEMONSTRATION PROGRAMS AND PROJECTS.—

7 The Secretary may make grants to, and enter into con8 tracts with, public agencies or nonprofit private agencies

9 or organizations (or combinations of such agencies or or10 ganizations) for time limited, demonstration programs and

11 projects for the following purposes:

12 ‘‘(1) TRAINING PROGRAMS.—The Secretary

13 may award grants to public or private non-profit or14 ganizations under this section—

15 ‘‘(A) for the training of professional and

16 paraprofessional personnel in the fields of medi17 cine, law, education, social work, and other rel18 evant fields who are engaged in, or intend to

19 work in, the field of prevention, identification,

20 and treatment of child abuse and neglect, in21 cluding the links between domestic violence and

22 child abuse;

23 ‘‘(B) to provide culturally specific instruc24 tion in methods of protecting children from

25 child abuse and neglect to children and to per26 sons responsible for the welfare of children, in-
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1 cluding parents of and persons who work with

2 children with disabilities;

3 ‘‘(C) to improve the recruitment, selection,

4 and training of volunteers serving in private

5 and public nonprofit children, youth and family

6 service organizations in order to prevent child

7 abuse and neglect through collaborative analysis

8 of current recruitment, selection, and training

9 programs and development of model programs

10 for dissemination and replication nationally;

11 and

12 ‘‘(D) for the establishment of resource cen13 ters for the purpose of providing information

14 and training to professionals working in the

15 field of child abuse and neglect.

16 ‘‘(2) MUTUAL SUPPORT PROGRAMS.—The Sec17 retary may award grants to private non-profit orga18 nizations (such as Parents Anonymous) to establish

19 or maintain a national network of mutual support

20 and self-help programs as a means of strengthening

21 families in partnership with their communities.

22 ‘‘(3) OTHER INNOVATIVE PROGRAMS AND

23 PROJECTS.—

24 ‘‘(A) IN GENERAL.—The Secretary may

25 award grants to public agencies that dem-
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1 onstrate innovation in responding to reports of

2 child abuse and neglect including programs of

3 collaborative partnerships between the State

4 child protective service agency, community so5 cial service agencies and family support pro6 grams, schools, churches and synagogues, and

7 other community agencies to allow for the es8 tablishment of a triage system that—

9 ‘‘(i) accepts, screens and assesses re10 ports received to determine which such re11 ports require an intensive intervention and

12 which require voluntary referral to another

13 agency, program or project;

14 ‘‘(ii) provides, either directly or

15 through referral, a variety of community16 linked services to assist families in prevent17 ing child abuse and neglect; and

18 ‘‘(iii) provides further investigation

19 and intensive intervention where the child’s

20 safety is in jeopardy.

21 ‘‘(B) KINSHIP CARE.—The Secretary may

22 award grants to public entities to assist such

23 entities in developing or implementing proce24 dures using adult relatives as the preferred

25 placement for children removed from their
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1 home, where such relatives are determined to be

2 capable of providing a safe nurturing environ3 ment for the child or where such relatives com4 ply with the State child protection standards.

5 ‘‘(C) VISITATION CENTERS.—The Sec6 retary may award grants to public or private

7 nonprofit entities to assist such entities in the

8 establishment or operation of supervised visita9 tion centers where there is documented, highly

10 suspected, or elevated risk of child sexual, phys11 ical, or emotional abuse where, due to domestic

12 violence, there is an ongoing risk of harm to a

13 parent or child.’’;

14 (3) in subsection (c), by striking paragraphs (1)

15 and (2); and

16 (4) by adding at the end thereof the following

17 new subsection:

18 ‘‘(d) EVALUATION.—In making grants for dem19 onstration projects under this section, the Secretary shall

20 require all such projects to be evaluated for their effective21 ness. Funding for such evaluations shall be provided either

22 as a stated percentage of a demonstration grant or as a

23 separate grant entered into by the Secretary for the pur24 pose of evaluating a particular demonstration project or

25 group of projects.’’.
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1 SEC. 1119. STATE GRANTS FOR PREVENTION AND TREAT2 MENT PROGRAMS.

3 Section 107 (42 U.S.C. 5106a) is amended to read

4 as follows:

5 ‘‘SEC. 107. GRANTS TO STATES FOR CHILD ABUSE AND NE6 GLECT PREVENTION AND TREATMENT PRO7 GRAMS.

8 ‘‘(a) DEVELOPMENT AND OPERATION GRANTS.—The

9 Secretary shall make grants to the States, based on the

10 population of children under the age of 18 in each State

11 that applies for a grant under this section, for purposes

12 of assisting the States in improving the child protective

13 service system of each such State in—

14 ‘‘(1) the intake, assessment, screening, and in15 vestigation of reports of abuse and neglect;

16 ‘‘(2)(A) creating and improving the use of mul17 tidisciplinary teams and interagency protocols to en18 hance investigations; and

19 ‘‘(B) improving legal preparation and represen20 tation, including—

21 ‘‘(i) procedures for appealing and respond22 ing to appeals of substantiated reports of abuse

23 and neglect; and

24 ‘‘(ii) provisions for the appointment of a

25 guardian ad litem.
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1 ‘‘(3) case management and delivery of services

2 provided to children and their families;

3 ‘‘(4) enhancing the general child protective sys4 tem by improving risk and safety assessment tools

5 and protocols, automation systems that support the

6 program and track reports of child abuse and ne7 glect from intake through final disposition and infor8 mation referral systems;

9 ‘‘(5) developing, strengthening, and facilitating

10 training opportunities and requirements for individ11 uals overseeing and providing services to children

12 and their families through the child protection sys13 tem;

14 ‘‘(6) developing and facilitating training proto15 cols for individuals mandated to report child abuse

16 or neglect;

17 ‘‘(7) developing, strengthening, and supporting

18 child abuse and neglect prevention, treatment, and

19 research programs in the public and private sectors;

20 ‘‘(8) developing, implementing, or operating—

21 ‘‘(A) information and education programs

22 or training programs designed to improve the

23 provision of services to disabled infants with

24 life-threatening conditions for—
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•HR 2915 IH

1 ‘‘(i) professional and paraprofessional

2 personnel concerned with the welfare of

3 disabled infants with life-threatening con4 ditions, including personnel employed in

5 child protective services programs and

6 health-care facilities; and

7 ‘‘(ii) the parents of such infants; and

8 ‘‘(B) programs to assist in obtaining or co9 ordinating necessary services for families of dis10 abled infants with life-threatening conditions,

11 including—

12 ‘‘(i) existing social and health services;

13 ‘‘(ii) financial assistance; and

14 ‘‘(iii) services necessary to facilitate

15 adoptive placement of any such infants

16 who have been relinquished for adoption;

17 or

18 ‘‘(9) developing and enhancing the capacity of

19 community-based programs to integrate shared lead20 ership strategies between parents and professionals

21 to prevent and treat child abuse and neglect at the

22 neighborhood level.

23 ‘‘(b) ELIGIBILITY REQUIREMENTS.—In order for a

24 State to qualify for a grant under subsection (a), such
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1 State shall provide an assurance or certification, signed

2 by the chief executive officer of the State, that the State—

3 ‘‘(1) has in effect and operation a State law or

4 Statewide program relating to child abuse and ne5 glect which ensures—

6 ‘‘(A) provisions or procedures for the re7 porting of known and suspected instances of

8 child abuse and neglect;

9 ‘‘(B) procedures for the immediate screen10 ing, safety assessment, and prompt investiga11 tion of such reports;

12 ‘‘(C) procedures for immediate steps to be

13 taken to ensure and protect the safety of the

14 abused or neglected child and of any other child

15 under the same care who may also be in danger

16 of abuse or neglect;

17 ‘‘(D) provisions for immunity from pros18 ecution under State and local laws and regula19 tions for individuals making good faith reports

20 of suspected or known instances of child abuse

21 or neglect;

22 ‘‘(E) methods to preserve the confidential23 ity of all records in order to protect the rights

24 of the child and of the child’s parents or guard25 ians, including methods to ensure that disclo-
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1 sure (and redisclosure) of information concern2 ing child abuse or neglect involving specific in3 dividuals is made only to persons or entities

4 that the State determines have a need for such

5 information directly related to the purposes of

6 this Act;

7 ‘‘(F) requirements for the prompt disclo8 sure of all relevant information to any Federal,

9 State, or local governmental entity, or any

10 agent of such entity, with a need for such infor11 mation in order to carry out its responsibilities

12 under law to protect children from abuse and

13 neglect;

14 ‘‘(G) the cooperation of State law enforce15 ment officials, court of competent jurisdiction,

16 and appropriate State agencies providing

17 human services;

18 ‘‘(H) provisions requiring, and procedures

19 in place that facilitate the prompt expungement

20 of any records that are accessible to the general

21 public or are used for purposes of employment

22 or other background checks in cases determined

23 to be unsubstantiated or false, except that noth24 ing in this section shall prevent State child pro25 tective service agencies from keeping informa-
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•HR 2915 IH

1 tion on unsubstantiated reports in their case2 work files to assist in future risk and safety as3 sessment; and

4 ‘‘(I) provisions and procedures requiring

5 that in every case involving an abused or ne6 glected child which results in a judicial proceed7 ing, a guardian ad litem shall be appointed to

8 represent the child in such proceedings; and

9 ‘‘(2) has in place procedures for responding to

10 the reporting of medical neglect (including instances

11 of withholding of medically indicated treatment from

12 disabled infants with life-threatening conditions),

13 procedures or programs, or both (within the State

14 child protective services system), to provide for—

15 ‘‘(A) coordination and consultation with in16 dividuals designated by and within appropriate

17 health-care facilities;

18 ‘‘(B) prompt notification by individuals

19 designated by and within appropriate health20 care facilities of cases of suspected medical ne21 glect (including instances of withholding of

22 medically indicated treatment from disabled in23 fants with life-threatening conditions); and

24 ‘‘(C) authority, under State law, for the

25 State child protective service system to pursue
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1 any legal remedies, including the authority to

2 initiate legal proceedings in a court of com3 petent jurisdiction, as may be necessary to pre4 vent the withholding of medically indicated

5 treatment from disabled infants with life threat6 ening conditions.

7 ‘‘(c) ADDITIONAL REQUIREMENT.—Not later than 2

8 years after the date of enactment of this section, the State

9 shall provide an assurance or certification that the State

10 has in place provisions, procedures, and mechanisms by

11 which individuals who disagree with an official finding of

12 abuse or neglect can appeal such finding.

13 ‘‘(d) STATE PROGRAM PLAN.—To be eligible to re14 ceive a grant under this section, a State shall submit every

15 5 years a plan to the Secretary that specifies the child

16 protective service system area or areas described in sub17 section (a) that the State intends to address with funds

18 received under the grant. Such plan shall, to the maximum

19 extent practicable, be coordinated with the plan of the

20 State for child welfare services and family preservation

21 and family support services under part B of title IV of

22 the Social Security Act and shall contain an outline of the

23 activities that the State intends to carry out using

24 amounts provided under the grant to achieve the purposes

25 of this Act, including the procedures to be used for—
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1 ‘‘(1) receiving and assessing reports of child

2 abuse or neglect;

3 ‘‘(2) investigating such reports;

4 ‘‘(3) protecting children by removing them from

5 dangerous settings and ensuring their placement in

6 a safe environment;

7 ‘‘(4) providing services or referral for services

8 for families and children where the child is not in

9 danger of harm;

10 ‘‘(5) providing services to individuals, families,

11 or communities, either directly or through referral,

12 aimed at preventing the occurrence of child abuse

13 and neglect;

14 ‘‘(6) providing training to support direct line

15 and supervisory personnel in report-taking, screen16 ing, assessment, decision-making, and referral for

17 investigation; and

18 ‘‘(7) providing training for individuals man19 dated to report suspected cases of child abuse or ne20 glect.

21 ‘‘(e) RESTRICTIONS RELATING TO CHILD WELFARE

22 SERVICES.—Programs or projects relating to child abuse

23 and neglect assisted under part B of title IV of the Social

24 Security Act shall comply with the requirements set forth

25 in paragraphs (1) (A) and (B), and (2) of subsection (b).
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1 ‘‘(f) ANNUAL STATE DATA REPORTS.—Each State to

2 which a grant is made under this part shall annually work

3 with the Secretary to provide, to the maximum extent

4 practicable, 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—

10 ‘‘(A) substantiated;

11 ‘‘(B) unsubstantiated; and

12 ‘‘(C) determined to be false.

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

14 paragraph (2)—

15 ‘‘(A) the number that did not receive serv16 ices during the year under the State program

17 funded under this part or an equivalent State

18 program;

19 ‘‘(B) the number that received services

20 during the year under the State program fund21 ed under this part or an equivalent State pro22 gram; and

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

24 their families during the year by disposition of

25 the case.
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1 ‘‘(4) The number of families that received pre2 ventive services from the State during the year.

3 ‘‘(5) The number of deaths in the State during

4 the year resulting from child abuse or neglect.

5 ‘‘(6) Of the number of children described in

6 paragraph (5), the number of such children who

7 were in foster care.

8 ‘‘(7) The number of child protective service

9 workers responsible for the intake and screening of

10 reports filed in the previous year.

11 ‘‘(8) The agency response time with respect to

12 each such report with respect to initial investigation

13 of reports of child abuse or neglect.

14 ‘‘(9) The response time with respect to the pro15 vision of services to families and children where an

16 allegation of abuse or neglect has been made.

17 ‘‘(10) The number of child protective service

18 workers responsible for intake, assessment, and in19 vestigation of child abuse and neglect reports rel20 ative to the number of reports investigated in the

21 previous year.

22 ‘‘(g) ANNUAL REPORT BY THE SECRETARY.—Within

23 6 months after receiving the State reports under sub24 section (f), the Secretary shall prepare a report based on

25 information provided by the States for the fiscal year
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1 under such subsection and shall make the report and such

2 information available to the Congress and the national

3 clearinghouse for information relating to child abuse.’’.

4 SEC. 1120. REPEAL.

5 Section 108 (42 U.S.C. 5106b) is repealed.

6 SEC. 1121. MISCELLANEOUS REQUIREMENTS.

7 Section 110 (42 U.S.C. 5106d) is amended by strik8 ing subsection (c).

9 SEC. 1122. DEFINITIONS.

10 Section 113 (42 U.S.C. 5106h) is amended—

11 (1) by striking paragraphs (1) and (2);

12 (2) by redesignating paragraphs (3) through

13 (10) as paragraphs (1) through (8), respectively;

14 and

15 (3) in paragraph (2) (as so redesignated), to

16 read as follows:

17 ‘‘(2) the term ‘child abuse and neglect’ means,

18 at a minimum, any recent act or failure to act on

19 the part of a parent or caretaker, which results in

20 death, serious physical or emotional harm, sexual

21 abuse or exploitation, or an act or failure to act

22 which presents an imminent risk of serious harm;’’.

23 SEC. 1123. AUTHORIZATION OF APPROPRIATIONS.

24 Section 114(a) (42 U.S.C. 5106h(a)) is amended to

25 read as follows:
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1 ‘‘(a) IN GENERAL.—

2 ‘‘(1) GENERAL AUTHORIZATION.—There are

3 authorized to be appropriated to carry out this title,

4 $100,000,000 for fiscal year 1996, and such sums

5 as may be necessary for each of the fiscal years

6 1997 through 2000.

7 ‘‘(2) DISCRETIONARY ACTIVITIES.—

8 ‘‘(A) IN GENERAL.—Of the amounts ap9 propriated for a fiscal year under paragraph

(1), the Secretary shall make available 331 10 ⁄3

11 percent of such amounts to fund discretionary

12 activities under this title.

13 ‘‘(B) DEMONSTRATION PROJECTS.—Of the

14 amounts made available for a fiscal year under

15 subparagraph (A), the Secretary make available

16 not more than 40 percent of such amounts to

17 carry out section 106.’’.

18 SEC. 1124. RULE OF CONSTRUCTION.

19 Title I (42 U.S.C. 5101 et seq.) is amended by adding

20 at the end thereof the following new section:

21 ‘‘SEC. 115. RULE OF CONSTRUCTION.

22 ‘‘(a) IN GENERAL.—Nothing in this Act shall be con23 strued—

24 ‘‘(1) as establishing a Federal requirement that

25 a parent or legal guardian provide a child any medi-
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•HR 2915 IH

1 cal service or treatment against the religious beliefs

2 of the parent or legal guardian; and

3 ‘‘(2) to require that a State find, or to prohibit

4 a State from finding, abuse or neglect in cases in

5 which a parent or legal guardian relies solely or par6 tially upon spiritual means rather than medical

7 treatment, in accordance with the religious beliefs of

8 the parent or legal guardian.

9 ‘‘(b) STATE REQUIREMENT.—Notwithstanding sub10 section (a), a State shall, at a minimum, have in place

11 authority under State law to permit the child protective

12 service system of the State to pursue any legal remedies,

13 including the authority to initiate legal proceedings in a

14 court of competent jurisdiction, to provide medical care

15 or treatment for a child when such care or treatment is

16 necessary to prevent or remedy serious harm to the child,

17 or to prevent the withholding of medically indicated treat18 ment from children with life threatening conditions. Case

19 by case determinations concerning the exercise of the au20 thority of this subsection shall be within the sole discretion

21 of the State.’’.

22 SEC. 1125. TECHNICAL AMENDMENT.

23 Section 1404A of the Victims of Crime Act of 1984

24 (42 U.S.C. 10603a) is amended—
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1 (1) by striking ‘‘1402(d)(2)(D) and (d)(3)’’ and

2 inserting ‘‘1402(d)(2)’’; and

3 (2) by striking ‘‘section 4(d)’’ and inserting

4 ‘‘section 109’’.

5 Subtitle B—Community-Based

6 Child Abuse and Neglect Pre7 vention Grants

8 SEC. 1131. ESTABLISHMENT OF PROGRAM.

9 Title II of the Child Abuse Prevention and Treatment

10 Act (42 U.S.C. 5116 et seq) is amended to read as follows:

11 ‘‘TITLE II—COMMUNITY-BASED

12 FAMILY RESOURCE AND SUP13 PORT GRANTS

14 ‘‘SEC. 201. PURPOSE AND AUTHORITY.

15 ‘‘(a) PURPOSE.—It is the purpose of this Act to sup16 port State efforts to develop, operate, expand and enhance

17 a network of community-based, prevention-focused, family

18 resource and support programs that are culturally com19 petent and that coordinate resources among existing edu20 cation, vocational rehabilitation, disability, respite, health,

21 mental health, job readiness, self-sufficiency, child and

22 family development, community action, Head Start, child

23 care, child abuse and neglect prevention, juvenile justice,

24 domestic violence prevention and intervention, housing,

25 and other human service organizations within the State.
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1 ‘‘(b) AUTHORITY.—The Secretary shall make grants

2 under this title on a formula basis to the entity designated

3 by the State as the lead entity (hereafter referred to in

4 this title as the ‘lead entity’) for the purpose of—

5 ‘‘(1) developing, operating, expanding and en6 hancing Statewide networks of community-based,

7 prevention-focused, family resource and support pro8 grams that—

9 ‘‘(A) offer sustained assistance to families;

10 ‘‘(B) provide early, comprehensive, and ho11 listic support for all parents;

12 ‘‘(C) promote the development of parental

13 competencies and capacities, especially in young

14 parents and parents with very young children;

15 ‘‘(D) increase family stability;

16 ‘‘(E) improve family access to other formal

17 and informal resources and opportunities for

18 assistance available within communities;

19 ‘‘(F) support the additional needs of fami20 lies with children with disabilities; and

21 ‘‘(G) decrease the risk of homelessness;

22 ‘‘(2) fostering the development of a continuum

23 of preventive services for children and families

24 through State and community-based collaborations

25 and partnerships both public and private;
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1 ‘‘(3) financing the start-up, maintenance, ex2 pansion, or redesign of specific family resource and

3 support program services (such as respite services,

4 child abuse and neglect prevention activities, disabil5 ity services, mental health services, housing services,

6 transportation, adult education, home visiting and

7 other similar services) identified by the inventory

8 and description of current services required under

9 section 205(a)(3) as an unmet need, and integrated

10 with the network of community-based family re11 source and support program to the extent prac12 ticable given funding levels and community prior13 ities;

14 ‘‘(4) maximizing funding for the financing,

15 planning, community mobilization, collaboration, as16 sessment, information and referral, startup, training

17 and technical assistance, information management,

18 reporting and evaluation costs for establishing, oper19 ating, or expanding a Statewide network of commu20 nity-based, prevention-focused, family resource and

21 support program; and

22 ‘‘(5) financing public information activities that

23 focus on the healthy and positive development of

24 parents and children and the promotion of child

25 abuse and neglect prevention activities.
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1 ‘‘SEC. 202. ELIGIBILITY.

2 ‘‘A State shall be eligible for a grant under this title

3 for a fiscal year if—

4 ‘‘(1)(A) the chief executive officer of the State

5 has designated an entity to administer funds under

6 this title for the purposes identified under the au7 thority of this title, including to develop, implement,

8 operate, enhance or expand a Statewide network of

9 community-based, prevention-focused, family re10 source and support programs, child abuse and ne11 glect prevention activities and access to respite serv12 ices integrated with the Statewide network;

13 ‘‘(B) in determining which entity to designate

14 under subparagraph (A), the chief executive officer

15 should give priority consideration to the trust fund

16 advisory board of the State or an existing entity that

17 leverages Federal, State, and private funds for a

18 broad range of child abuse and neglect prevention

19 activities and family resource programs, and that is

20 directed by an interdisciplinary, public-private struc21 ture, including participants from communities; and

22 ‘‘(C) such lead entity is an existing public,

23 quasi-public, or nonprofit private entity with a dem24 onstrated ability to work with other State and com25 munity-based agencies to provide training and tech26 nical assistance, and that has the capacity and com-
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•HR 2915 IH

1 mitment to ensure the meaningful involvement of

2 parents who are consumers and who can provide

3 leadership in the planning, implementation, and

4 evaluation of programs and policy decisions of the

5 applicant agency in accomplishing the desired out6 comes for such efforts;

7 ‘‘(2) the chief executive officer of the State pro8 vides assurances that the lead entity will provide or

9 will be responsible for providing—

10 ‘‘(A) a network of community-based family

11 resource and support programs composed of

12 local, collaborative, public-private partnerships

13 directed by interdisciplinary structures with bal14 anced representation from private and public

15 sector members, parents, and public and private

16 nonprofit service providers and individuals and

17 organizations experienced in working in part18 nership with families with children with disabil19 ities;

20 ‘‘(B) direction to the network through an

21 interdisciplinary, collaborative, public-private

22 structure with balanced representation from

23 private and public sector members, parents, and

24 public sector and private nonprofit sector serv25 ice providers; and
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1 ‘‘(C) direction and oversight to the net2 work through identified goals and objectives,

3 clear lines of communication and accountability,

4 the provision of leveraged or combined funding

5 from Federal, State and private sources, cen6 tralized assessment and planning activities, the

7 provision of training and technical assistance,

8 and reporting and evaluation functions; and

9 ‘‘(3) the chief executive officer of the State pro10 vides assurances that the lead entity—

11 ‘‘(A) has a demonstrated commitment to

12 parental participation in the development, oper13 ation, and oversight of the Statewide network of

14 community-based, prevention-focused, family re15 source and support programs;

16 ‘‘(B) has a demonstrated ability to work

17 with State and community-based public and pri18 vate nonprofit organizations to develop a con19 tinuum of preventive, family centered, holistic

20 services for children and families through the

21 Statewide network of community-based, preven22 tion-focused, family resource and support pro23 grams;

24 ‘‘(C) has the capacity to provide oper25 ational support (both financial and pro-
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1 grammatic) and training and technical assist2 ance, to the Statewide network of community3 based, prevention-focused, family resource and

4 support programs, through innovative, inter5 agency funding and interdisciplinary service de6 livery mechanisms; and

7 ‘‘(D) will integrate its efforts with individ8 uals and organizations experienced in working

9 in partnership with families with children with

10 disabilities and with the child abuse and neglect

11 prevention activities of the State, and dem12 onstrate a financial commitment to those activi13 ties.

14 ‘‘SEC. 203. AMOUNT OF GRANT.

15 ‘‘(a) RESERVATION.—The Secretary shall reserve 1

16 percent of the amount appropriated under section 210 for

17 a fiscal year to make allotments to Indian tribes and tribal

18 organizations and migrant programs.

19 ‘‘(b) ALLOTMENT.—

20 ‘‘(1) IN GENERAL.—Of the amounts appro21 priated for a fiscal year under section 210 and re22 maining after the reservation under subsection (a),

23 the Secretary shall allot to each State lead entity an

24 amount equal to—
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1 ‘‘(A) the State minor child amount for

2 such State as determined under paragraph (2);

3 and

4 ‘‘(B) the State matchable amount for such

5 State as determined under paragraph (3).

6 ‘‘(2) STATE MINOR CHILD AMOUNT.—The

7 amount determined under this paragraph for a fiscal

8 year for a State shall be equal to an amount that

9 bears the same relationship to 50 percent of the

10 amounts appropriated and remaining under para11 graph (1) for such fiscal year as the number of chil12 dren under 18 residing in the State bears to the

13 total number of children under 18 residing in all

14 States, except that no State shall receive less than

15 $250,000.

16 ‘‘(3) STATE MATCHABLE AMOUNT.—The

17 amount determined under this paragraph for a fiscal

18 year for a State shall be equal to—

19 ‘‘(A)(i) 50 percent of the amounts appro20 priated and remaining under paragraph (1) for

21 such fiscal year; divided by

22 ‘‘(ii) 50 percent of the total amount that

23 all States have directed through the respective

24 lead agencies to the purposes identified under

25 the authority of this title for the fiscal year, in-
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1 cluding foundation, corporate, and other private

2 funding, State revenues, and Federal funds, as

3 determined by the Secretary; multiplied by

4 ‘‘(B) 50 percent of the total amount that

5 the State has directed through the lead agency

6 to the purposes identified under the authority

7 of this title for such fiscal year, including foun8 dation, corporate, and other private funding,

9 State revenues, and Federal funds.

10 ‘‘(c) ALLOCATION.—Funds allotted to a State under

11 this section shall be awarded on a formula basis for a 3-

12 year period. Payment under such allotments shall be made

13 by the Secretary annually on the basis described in sub14 section (a).

15 ‘‘SEC. 204. EXISTING AND CONTINUATION GRANTS.

16 ‘‘(a) EXISTING GRANTS.—Notwithstanding the en17 actment of this title, a State or entity that has a grant,

18 contract, or cooperative agreement in effect, on the date

19 of enactment of this title, under the Family Resource and

20 Support Program, the Community-Based Family Re21 source Program, the Family Support Center Program, the

22 Emergency Child Abuse Prevention Grant Program, or

23 the Temporary Child Care for Children with Disabilities

24 and Crisis Nurseries Programs shall continue to receive

25 funds under such programs, subject to the original terms
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1 under which such funds were granted, through the end

2 of the applicable grant cycle.

3 ‘‘(b) CONTINUATION GRANTS.—The Secretary may

4 continue grants for Family Resource and Support Pro5 gram grantees, and those programs otherwise funded

6 under this Act, on a noncompetitive basis, subject to the

7 availability of appropriations, satisfactory performance by

8 the grantee, and receipt of reports required under this Act,

9 until such time as the grantee no longer meets the original

10 purposes of this Act.

11 ‘‘SEC. 205. APPLICATION.

12 ‘‘(a) IN GENERAL.—A grant may not be made to a

13 State under this title unless an application therefore is

14 submitted by the State to the Secretary and such applica15 tion contains the types of information specified by the Sec16 retary as essential to carrying out the provisions of section

17 202, including—

18 ‘‘(1) a description of the lead entity that will be

19 responsible for the administration of funds provided

20 under this title and the oversight of programs fund21 ed through the Statewide network of community22 based, prevention-focused, family resource and sup23 port programs which meets the requirements of sec24 tion 202;
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1 ‘‘(2) a description of how the network of com2 munity-based, prevention-focused, family resource

3 and support programs will operate and how family

4 resource and support services provided by public and

5 private, nonprofit organizations, including those

6 funded by programs consolidated under this Act, will

7 be integrated into a developing continuum of family

8 centered, holistic, preventive services for children

9 and families;

10 ‘‘(3) an assurance that an inventory of current

11 family resource programs, respite, child abuse and

12 neglect prevention activities, and other family re13 source services operating in the State, and a descrip14 tion of current unmet needs, will be provided;

15 ‘‘(4) a budget for the development, operation

16 and expansion of the State’s network of community17 based, prevention-focused, family resource and sup18 port programs that verifies that the State will ex19 pend an amount equal to not less than 20 percent

20 of the amount received under this title (in cash, not

21 in-kind) for activities under this title;

22 ‘‘(5) an assurance that funds received under

23 this title will supplement, not supplant, other State

24 and local public funds designated for the Statewide
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1 network of community-based, prevention-focused,

2 family resource and support programs;

3 ‘‘(6) an assurance that the State network of

4 community-based, prevention-focused, family re5 source and support programs will maintain cultural

6 diversity, and be culturally competent and socially

7 sensitive and responsive to the needs of families with

8 children with disabilities;

9 ‘‘(7) an assurance that the State has the capac10 ity to ensure the meaningful involvement of parents

11 who are consumers and who can provide leadership

12 in the planning, implementation, and evaluation of

13 the programs and policy decisions of the applicant

14 agency in accomplishing the desired outcomes for

15 such efforts;

16 ‘‘(8) a description of the criteria that the entity

17 will use to develop, or select and fund, individual

18 community-based, prevention-focused, family re19 source and support programs as part of network de20 velopment, expansion or enhancement;

21 ‘‘(9) a description of outreach activities that the

22 entity and the community-based, prevention-focused,

23 family resource and support programs will undertake

24 to maximize the participation of racial and ethnic

25 minorities, new immigrant populations, children and
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1 adults with disabilities, homeless families and those

2 at risk of homelessness, and members of other un3 derserved or underrepresented groups;

4 ‘‘(10) a plan for providing operational support,

5 training and technical assistance to community6 based, prevention-focused, family resource and sup7 port programs for development, operation, expansion

8 and enhancement activities;

9 ‘‘(11) a description of how the applicant entity’s

10 activities and those of the network and its members

11 will be evaluated;

12 ‘‘(12) a description of that actions that the ap13 plicant entity will take to advocate changes in State

14 policies, practices, procedures and regulations to im15 prove the delivery of prevention-focused, family re16 source and support program services to all children

17 and families; and

18 ‘‘(13) an assurance that the applicant entity

19 will provide the Secretary with reports at such time

20 and containing such information as the Secretary

21 may require.

22 ‘‘SEC. 206. LOCAL PROGRAM REQUIREMENTS.

23 ‘‘(a) IN GENERAL.—Grants made under this title

24 shall be used to develop, implement, operate, expand and
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1 enhance community-based, prevention-focused, family re2 source and support programs that—

3 ‘‘(1) assess community assets and needs

4 through a planning process that involves parents

5 and local public agencies, local nonprofit organiza6 tions, and private sector representatives;

7 ‘‘(2) develop a strategy to provide, over time, a

8 continuum of preventive, holistic, family centered

9 services to children and families, especially to young

10 parents and parents with young children, through

11 public-private partnerships;

12 ‘‘(3) provide—

13 ‘‘(A) core family resource and support

14 services such as—

15 ‘‘(i) parent education, mutual support

16 and self help, and leadership services;

17 ‘‘(ii) early developmental screening of

18 children;

19 ‘‘(iii) outreach services;

20 ‘‘(iv) community and social service re21 ferrals; and

22 ‘‘(v) follow-up services;

23 ‘‘(B) other core services, which must be

24 provided or arranged for through contracts or

25 agreements with other local agencies, including
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1 all forms of respite services to the extent prac2 ticable; and

3 ‘‘(C) access to optional services, includ4 ing—

5 ‘‘(i) child care, early childhood devel6 opment and intervention services;

7 ‘‘(ii) services and supports to meet the

8 additional needs of families with children

9 with disabilities;

10 ‘‘(iii) job readiness services;

11 ‘‘(iv) educational services, such as

12 scholastic tutoring, literacy training, and

13 General Educational Degree services;

14 ‘‘(v) self-sufficiency and life manage15 ment skills training;

16 ‘‘(vi) community referral services; and

17 ‘‘(vii) peer counseling;

18 ‘‘(4) develop leadership roles for the meaningful

19 involvement of parents in the development, oper20 ation, evaluation, and oversight of the programs and

21 services;

22 ‘‘(5) provide leadership in mobilizing local pub23 lic and private resources to support the provision of

24 needed family resource and support program serv25 ices; and
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1 ‘‘(6) participate with other community-based,

2 prevention-focused, family resource and support pro3 gram grantees in the development, operation and ex4 pansion of the Statewide network.

5 ‘‘(b) PRIORITY.—In awarding local grants under this

6 title, a lead entity shall give priority to community-based

7 programs serving low income communities and those serv8 ing young parents or parents with young children, and to

9 community-based family resource and support programs

10 previously funded under the programs consolidated under

11 the Child Abuse Prevention and Treatment Act Amend12 ments of 1995, so long as such programs meet local pro13 gram requirements.

14 ‘‘SEC. 207. PERFORMANCE MEASURES.

15 ‘‘A State receiving a grant under this title, through

16 reports provided to the Secretary, shall—

17 ‘‘(1) demonstrate the effective development, op18 eration and expansion of a Statewide network of

19 community-based, prevention-focused, family re20 source and support programs that meets the require21 ments of this title;

22 ‘‘(2) supply an inventory and description of the

23 services provided to families by local programs that

24 meet identified community needs, including core and

25 optional services as described in section 202;
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1 ‘‘(3) demonstrate the establishment of new res2 pite and other specific new family resources services,

3 and the expansion of existing services, to address

4 unmet needs identified by the inventory and descrip5 tion of current services required under section

6 205(a)(3);

7 ‘‘(4) describe the number of families served, in8 cluding families with children with disabilities, and

9 the involvement of a diverse representation of fami10 lies in the design, operation, and evaluation of the

11 Statewide network of community-based, prevention12 focused, family resource and support programs, and

13 in the design, operation and evaluation of the indi14 vidual community-based family resource and support

15 programs that are part of the Statewide network

16 funded under this title;

17 ‘‘(5) demonstrate a high level of satisfaction

18 among families who have used the services of the

19 community-based, prevention-focused, family re20 source and support programs;

21 ‘‘(6) demonstrate the establishment or mainte22 nance of innovative funding mechanisms, at the

23 State or community level, that blend Federal, State,

24 local and private funds, and innovative, interdiscipli25 nary service delivery mechanisms, for the develop-
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1 ment, operation, expansion and enhancement of the

2 Statewide network of community-based, prevention3 focused, family resource and support programs;

4 ‘‘(7) describe the results of a peer review proc5 ess conducted under the State program; and

6 ‘‘(8) demonstrate an implementation plan to en7 sure the continued leadership of parents in the on8 going planning, implementation, and evaluation of

9 such community-based, prevention-focused, family

10 resource and support programs.

11 ‘‘SEC. 208. NATIONAL NETWORK FOR COMMUNITY-BASED

12 FAMILY RESOURCE PROGRAMS.

13 ‘‘The Secretary may allocate such sums as may be

14 necessary from the amount provided under the State allot15 ment to support the activities of the lead entity in the

16 State—

17 ‘‘(1) to create, operate and maintain a peer re18 view process;

19 ‘‘(2) to create, operate and maintain an infor20 mation clearinghouse;

21 ‘‘(3) to fund a yearly symposium on State sys22 tem change efforts that result from the operation of

23 the Statewide networks of community-based, preven24 tion-focused, family resource and support programs;
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1 ‘‘(4) to create, operate and maintain a comput2 erized communication system between lead entities;

3 and

4 ‘‘(5) to fund State-to-State technical assistance

5 through bi-annual conferences.

6 ‘‘SEC. 209. DEFINITIONS.

7 ‘‘For purposes of this title:

8 ‘‘(1) CHILDREN WITH DISABILITIES.—The term

9 ‘children with disabilities’ has the same meaning

10 given such term in section 602(a)(2) of the Individ11 uals with Disabilities Education Act.

12 ‘‘(2) COMMUNITY REFERRAL SERVICES.—The

13 term ‘community referral services’ means services

14 provided under contract or through interagency

15 agreements to assist families in obtaining needed in16 formation, mutual support and community re17 sources, including respite services, health and mental

18 health services, employability development and job

19 training, and other social services through help lines

20 or other methods.

21 ‘‘(3) CULTURALLY COMPETENT.—The term

22 ‘culturally competent’ means services, support, or

23 other assistance that is conducted or provided in a

24 manner that—
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1 ‘‘(A) is responsive to the beliefs, inter2 personal styles, attitudes, languages, and behav3 iors of those individuals and families receiving

4 services; and

5 ‘‘(B) has the greatest likelihood of ensur6 ing maximum participation of such individuals

7 and families.

8 ‘‘(4) FAMILY RESOURCE AND SUPPORT PRO9 GRAM.—The term ‘family resource and support pro10 gram’ means a community-based, prevention-focused

11 entity that—

12 ‘‘(A) provides, through direct service, the

13 core services required under this title, includ14 ing—

15 ‘‘(i) parent education, support and

16 leadership services, together with services

17 characterized by relationships between par18 ents and professionals that are based on

19 equality and respect, and designed to assist

20 parents in acquiring parenting skills, learn21 ing about child development, and respond22 ing appropriately to the behavior of their

23 children;

24 ‘‘(ii) services to facilitate the ability of

25 parents to serve as resources to one an-
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1 other (such as through mutual support and

2 parent self-help groups);

3 ‘‘(iii) early developmental screening of

4 children to assess any needs of children,

5 and to identify types of support that may

6 be provided;

7 ‘‘(iv) outreach services provided

8 through voluntary home visits and other

9 methods to assist parents in becoming

10 aware of and able to participate in family

11 resources and support program activities;

12 ‘‘(v) community and social services to

13 assist families in obtaining community re14 sources; and

15 ‘‘(vi) follow-up services;

16 ‘‘(B) provides, or arranges for the provi17 sion of, other core services through contracts or

18 agreements with other local agencies, including

19 all forms of respite services; and

20 ‘‘(C) provides access to optional services,

21 directly or by contract, purchase of service, or

22 interagency agreement, including—

23 ‘‘(i) child care, early childhood devel24 opment and early intervention services;
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1 ‘‘(ii) self-sufficiency and life manage2 ment skills training;

3 ‘‘(iii) education services, such as scho4 lastic tutoring, literacy training, and Gen5 eral Educational Degree services;

6 ‘‘(iv) job readiness skills;

7 ‘‘(v) child abuse and neglect preven8 tion activities;

9 ‘‘(vi) services that families with chil10 dren with disabilities or special needs may

11 require;

12 ‘‘(vii) community and social service re13 ferral;

14 ‘‘(viii) peer counseling;

15 ‘‘(ix) referral for substance abuse

16 counseling and treatment; and

17 ‘‘(x) help line services.

18 ‘‘(5) NATIONAL NETWORK FOR COMMUNITY19 BASED FAMILY RESOURCE PROGRAMS.—The term

20 ‘network for community-based family resource pro21 gram’ means the organization of State designated

22 entities who receive grants under this title, and in23 cludes the entire membership of the Children’s Trust

24 Fund Alliance and the National Respite Network.
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1 ‘‘(6) OUTREACH SERVICES.—The term ‘out2 reach services’ means services provided to assist con3 sumers, through voluntary home visits or other

4 methods, in accessing and participating in family re5 source and support program activities.

6 ‘‘(7) RESPITE SERVICES.—The term ‘respite

7 services’ means short term care services provided in

8 the temporary absence of the regular caregiver (par9 ent, other relative, foster parent, adoptive parent, or

10 guardian) to children who—

11 ‘‘(A) are in danger of abuse or neglect;

12 ‘‘(B) have experienced abuse or neglect; or

13 ‘‘(C) have disabilities, chronic, or terminal

14 illnesses.

15 Such services shall be provided within or outside the

16 home of the child, be short-term care (ranging from

17 a few hours to a few weeks of time, per year), and

18 be intended to enable the family to stay together and

19 to keep the child living in the home and community

20 of the child.

21 ‘‘SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

22 ‘‘There are authorized to be appropriated to carry out

23 this title, $108,000,000 for each of the fiscal years 1996

24 through 2000.’’.
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1 SEC. 1132. REPEALS.

2 (a) TEMPORARY CHILD CARE FOR CHILDREN WITH

3 DISABILITIES AND CRISIS NURSERIES ACT.—The Tem4 porary Child Care for Children with Disabilities and Crisis

5 Nurseries Act of 1986 (42 U.S.C. 5117 et seq.) is re6 pealed.

7 (b) FAMILY SUPPORT CENTERS.—Subtitle F of title

8 VII of the Stewart B. McKinney Homeless Assistance Act

9 (42 U.S.C. 11481 et seq.) is repealed.

10 Subtitle C—Family Violence

11 Prevention and Services

12 SEC. 1141. REFERENCE.

13 Except as otherwise expressly provided, whenever in

14 this subtitle an amendment or repeal is expressed in terms

15 of an amendment to, or repeal of, a section or other provi16 sion, the reference shall be considered to be made to a

17 section or other provision of the Family Violence Preven18 tion and Services Act (42 U.S.C. 10401 et seq.).

19 SEC. 1142. STATE DEMONSTRATION GRANTS.

20 Section 303(e) (42 U.S.C. 10420(e)) is amended—

21 (1) by striking ‘‘following local share’’ and in22 serting ‘‘following non-Federal matching local

23 share’’; and

24 (2) by striking ‘‘20 percent’’ and all that fol25 lows through ‘‘private sources.’’ and inserting ‘‘with

26 respect to an entity operating an existing program
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1 under this title, not less than 20 percent, and with

2 respect to an entity intending to operate a new pro3 gram under this title, not less than 35 percent.’’.

4 SEC. 1143. ALLOTMENTS.

5 Section 304(a)(1) (42 U.S.C. 10403(a)(1)) is amend6 ed by striking ‘‘$200,000’’ and inserting ‘‘$400,000’’.

7 SEC. 1144. AUTHORIZATION OF APPROPRIATIONS.

8 Section 310 (42 U.S.C. 10409) is amended—

9 (1) in subsection (b), by striking ‘‘80’’ and in10 serting ‘‘70’’; and

11 (2) by adding at the end thereof the following

12 new subsections:

13 ‘‘(d) GRANTS FOR STATE COALITIONS.—Of the

14 amounts appropriated under subsection (a) for each fiscal

15 year, not less than 10 percent of such amounts shall be

16 used by the Secretary for making grants under section

17 311.

18 ‘‘(e) NON-SUPPLANTING REQUIREMENT.—Federal

19 funds made available to a State under this title shall be

20 used to supplement and not supplant other Federal, State,

21 and local public funds expended to provide services and

22 activities that promote the purposes of this title.’’.
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1 Subtitle D—Adoption

2 Opportunities

3 SEC. 1151. REFERENCE.

4 Except as otherwise expressly provided, whenever in

5 this subtitle an amendment or repeal is expressed in terms

6 of an amendment to, or repeal of, a section or other provi7 sion, the reference shall be considered to be made to a

8 section or other provision of the Child Abuse Prevention

9 and Treatment and Adoption Reform Act of 1978 (42

10 U.S.C. 5111 et seq.).

11 SEC. 1152. FINDINGS AND PURPOSE.

12 Section 201 (42 U.S.C. 5111) is amended—

13 (1) in subsection (a)—

14 (A) in paragraph (1)—

15 (i) by striking ‘‘50 percent between

16 1985 and 1990’’ and inserting ‘‘61 percent

17 between 1986 and 1994’’; and

18 (ii) by striking ‘‘400,000 children at

19 the end of June, 1990’’ and inserting

20 ‘‘452,000 as of June, 1994’’; and

21 (B) in paragraph (5), by striking ‘‘local’’

22 and inserting ‘‘legal’’; and

23 (C) in paragraph (7), to read as follows:

24 ‘‘(7)(A) currently, 40,000 children are free for

25 adoption and awaiting placement;
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1 ‘‘(B) such children are typically school aged, in

2 sibling groups, have experienced neglect or abuse, or

3 have a physical, mental, or emotional disability; and

4 ‘‘(C) while the children are of all races, children

5 of color and older children (over the age of 10) are

6 over represented in such group;’’; and

7 (2) in subsection (b)—

8 (A) by striking ‘‘conditions, by—’’ and all

9 that follows through ‘‘providing a mechanism’’

10 and inserting ‘‘conditions, by providing a mech11 anism’’; and

12 (B) by redesignating subparagraphs (A)

13 through (C), as paragraphs (1) through (3), re14 spectively and by realigning the margins of such

15 paragraphs accordingly.

16 SEC. 1153. INFORMATION AND SERVICES.

17 Section 203 (42 U.S.C. 5113) is amended—

18 (1) in subsection (a), by striking the last sen19 tence;

20 (2) in subsection (b)—

21 (A) in paragraph (6), to read as follows:

22 ‘‘(6) study the nature, scope, and effects of the

23 placement of children in kinship care arrangements,

24 pre-adoptive, or adoptive homes;’’;
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1 (B) by redesignating paragraphs (7)

2 through (9) as paragraphs (8) through (10), re3 spectively; and

4 (C) by inserting after paragraph (6), the

5 following new paragraph:

6 ‘‘(7) study the efficacy of States contracting

7 with public or private nonprofit agencies (including

8 community-based and other organizations), or sec9 tarian institutions for the recruitment of potential

10 adoptive and foster families and to provide assist11 ance in the placement of children for adoption;’’; and

12 (3) in subsection (d)—

13 (A) in paragraph (2)—

14 (i) by striking ‘‘Each’’ and inserting

15 ‘‘(A) Each’’;

16 (ii) by striking ‘‘for each fiscal year’’

17 and inserting ‘‘that describes the manner

18 in which the State will use funds during

19 the 3-fiscal years subsequent to the date of

20 the application to accomplish the purposes

21 of this section. Such application shall be’’;

22 and

23 (iii) by adding at the end thereof the

24 following new subparagraph:
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1 ‘‘(B) The Secretary shall provide, directly or by grant

2 to or contract with public or private nonprofit agencies

3 or organizations—

4 ‘‘(i) technical assistance and resource and refer5 ral information to assist State or local governments

6 with termination of parental rights issues, in recruit7 ing and retaining adoptive families, in the successful

8 placement of children with special needs, and in the

9 provision of pre- and post-placement services, includ10 ing post-legal adoption services; and

11 ‘‘(ii) other assistance to help State and local

12 governments replicate successful adoption-related

13 projects from other areas in the United States.’’.

14 SEC. 1154. AUTHORIZATION OF APPROPRIATIONS.

15 Section 205 (42 U.S.C. 5115) is amended—

16 (1) in subsection (a), by striking

17 ‘‘$10,000,000,’’ and all that follows through

18 ‘‘203(c)(1)’’ and inserting ‘‘$20,000,000 for fiscal

19 year 1996, and such sums as may be necessary for

20 each of the fiscal years 1997 through 2000 to carry

21 out programs and activities authorized’’;

22 (2) by striking subsection (b); and

23 (3) by redesignating subsection (c) as sub24 section (b).
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1 Subtitle E—Abandoned Infants

2 Assistance Act of 1986

3 SEC. 1161. REAUTHORIZATION.

4 Section 104(a)(1) of the Abandoned Infants Assist5 ance Act of 1988 (42 U.S.C. 670 note) is amended by

6 striking ‘‘$20,000,000’’ and all that follows through the

7 end thereof and inserting ‘‘$35,000,000 for each of the

8 fiscal years 1995 and 1996, and such sums as may be

9 necessary for each of the fiscal years 1997 through 2000’’.

10 Subtitle F—Reauthorization of

11 Various Programs

12 SEC. 1171. MISSING CHILDREN’S ASSISTANCE ACT.

13 Section 408 of the Missing Children’s Assistance Act

14 (42 U.S.C. 5777) is amended—

15 (1) by striking ‘‘To’’ and inserting ‘‘(a) IN

16 GENERAL.—’’

17 (2) by striking ‘‘and 1996’’ and inserting

18 ‘‘1996, and 1997’’; and

19 (3) by adding at the end thereof the following

20 new subsection:

21 ‘‘(b) EVALUATION.—The Administrator shall use not

22 more than 5 percent of the amount appropriated for a fis23 cal year under subsection (a) to conduct an evaluation of

24 the effectiveness of the programs and activities established

25 and operated under this title.’’.
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1 SEC. 1172. VICTIMS OF CHILD ABUSE ACT OF 1990.

2 Section 214B of the Victims of Child Abuse Act of

3 1990 (42 U.S.C. 13004) is amended—

4 (1) in subsection (a)(2), by striking ‘‘and 1996’’

5 and inserting ‘‘1996, and 1997’’; and

6 (2) in subsection (b)(2), by striking ‘‘and

7 1996’’ and inserting ‘‘1996 and 1997’’.

8 TITLE XII—REDUCTIONS IN FED9 ERAL GOVERNMENT POSI10 TIONS

11 SEC. 1201. REDUCTIONS.

12 (a) DEFINITIONS.—As used in this section:

13 (1) APPROPRIATE EFFECTIVE DATE.—The term

14 ‘‘appropriate effective date’’, used with respect to a

15 Department referred to in this section, means the

16 date on which all provisions of this Act that the De17 partment is required to carry out, and amendments

18 and repeals made by this Act to provisions of Fed19 eral law that the Department is required to carry

20 out, are effective.

21 (2) COVERED ACTIVITY.—The term ‘‘covered

22 activity’’, used with respect to a Department re23 ferred to in this section, means an activity that the

24 Department is required to carry out under—

25 (A) a provision of this Act; or
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1 (B) a provision of Federal law that is

2 amended or repealed by this Act.

3 (b) REPORTS.—

4 (1) CONTENTS.—Not later than December 31,

5 1995, each Secretary referred to in paragraph (2)

6 shall prepare and submit to the relevant committees

7 described in paragraph (3) a report containing—

8 (A) the determinations described in sub9 section (c);

10 (B) appropriate documentation in support

11 of such determinations; and

12 (C) a description of the methodology used

13 in making such determinations.

14 (2) SECRETARY.—The Secretaries referred to in

15 this paragraph are—

16 (A) the Secretary of Agriculture;

17 (B) the Secretary of Education;

18 (C) the Secretary of Labor;

19 (D) the Secretary of Housing and Urban

20 Development; and

21 (E) the Secretary of Health and Human

22 Services.

23 (3) RELEVANT COMMITTEES.—The relevant

24 Committees described in this paragraph are the fol25 lowing:
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1 (A) With respect to each Secretary de2 scribed in paragraph (2), the Committee on

3 Government Reform and Oversight of the

4 House of Representatives and the Committee

5 on Governmental Affairs of the Senate.

6 (B) With respect to the Secretary of Agri7 culture, the Committee on Agriculture and the

8 Committee on Economic and Educational Op9 portunities of the House of Representatives and

10 the Committee on Agriculture, Nutrition, and

11 Forestry of the Senate.

12 (C) With respect to the Secretary of Edu13 cation, the Committee on Economic and Edu14 cational Opportunities of the House of Rep15 resentatives and the Committee on Labor and

16 Human Resources of the Senate.

17 (D) With respect to the Secretary of

18 Labor, the Committee on Economic and Edu19 cational Opportunities of the House of Rep20 resentatives and the Committee on Labor and

21 Human Resources of the Senate.

22 (E) With respect to the Secretary of Hous23 ing and Urban Development, the Committee on

24 Banking and Financial Services of the House of
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1 Representatives and the Committee on Bank2 ing, Housing, and Urban Affairs of the Senate.

3 (F) With respect to the Secretary of

4 Health and Human Services, the Committee on

5 Economic and Educational Opportunities of the

6 House of Representatives, the Committee on

7 Labor and Human Resources of the Senate, the

8 Committee on Ways and Means of the House of

9 Representatives, and the Committee on Finance

10 of the Senate.

11 (4) REPORT ON CHANGES.—Not later than De12 cember 31, 1996, and each December 31 thereafter,

13 each Secretary referred to in paragraph (2) shall

14 prepare and submit to the relevant Committees de15 scribed in paragraph (3), a report concerning any

16 changes with respect to the determinations made

17 under subsection (c) for the year in which the report

18 is being submitted.

19 (c) DETERMINATIONS.—Not later than December 31,

20 1995, each Secretary referred to in subsection (b)(2) shall

21 determine—

22 (1) the number of full-time equivalent positions

23 required by the Department (or the Federal Part24 nership established under section 771) headed by

25 such Secretary to carry out the covered activities of
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1 the Department (or Federal Partnership), as of the

2 day before the date of enactment of this Act;

3 (2) the number of such positions required by

4 the Department (or Federal Partnership) to carry

5 out the activities, as of the appropriate effective date

6 for the Department (or Federal Partnership); and

7 (3) the difference obtained by subtracting the

8 number referred to in paragraph (2) from the num9 ber referred to in paragraph (1).

10 (d) ACTIONS.—Not later than 30 days after the ap11 propriate effective date for the Department involved, each

12 Secretary referred to in subsection (b)(2) shall take such

13 actions as may be necessary, including reduction in force

14 actions, consistent with sections 3502 and 3595 of title

15 5, United States Code, to reduce the number of positions

16 of personnel of the Department by at least the difference

17 referred to in subsection (c)(3).

18 (e) CONSISTENCY.—

19 (1) EDUCATION.—The Secretary of Education

20 shall carry out this section in a manner that enables

21 the Secretary to meet the requirements of this sec22 tion and section 776(i)(2).

23 (2) LABOR.—The Secretary of Labor shall

24 carry out this section in a manner that enables the
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1 Secretary to meet the requirements of this section

2 and section 776(i)(2).

3 (3) HEALTH AND HUMAN SERVICES.—The Sec4 retary of Health and Human Services shall carry out

5 this section in a manner that enables the Secretary

6 to meet the requirements of this section and section

7 1202.

8 (f) CALCULATION.—In determining, under subsection

9 (c), the number of full-time equivalent positions required

10 by a Department to carry out a covered activity, a Sec11 retary referred to in subsection (b)(2), shall include the

12 number of such positions occupied by personnel carrying

13 out program functions or other functions (including budg14 etary, legislative, administrative, planning, evaluation, and

15 legal functions) related to the activity.

16 (g) GENERAL ACCOUNTING OFFICE REPORT.—Not

17 later than July 1, 1996, the Comptroller General of the

18 United States shall prepare and submit to the committees

19 described in subsection (b)(3), a report concerning the de20 terminations made by each Secretary under subsection (c).

21 Such report shall contain an analysis of the determina22 tions made by each Secretary under subsection (c) and

23 a determination as to whether further reductions in full24 time equivalent positions are appropriate.
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1 SEC. 1202. REDUCTIONS IN FEDERAL BUREAUCRACY.

2 (a) IN GENERAL.—The Secretary of Health and

3 Human Services shall reduce the Federal workforce within

4 the Department of Health and Human Services by an

5 amount equal to the sum of—

6 (1) 75 percent of the full-time equivalent posi7 tions at each such Department that relate to any di8 rect spending program, or any program funded

9 through discretionary spending, that has been con10 verted into a block grant program under this Act

11 and the amendments made by this Act; and

12 (2) an amount equal to 75 percent of that por13 tion of the total full-time equivalent departmental

14 management positions at each such Department that

15 bears the same relationship to the amount appro16 priated for the programs referred to in paragraph

17 (1) as such amount relates to the total amount ap18 propriated for use by each such Department.

19 (b) REDUCTIONS IN THE DEPARTMENT OF HEALTH

20 AND HUMAN SERVICES.—Notwithstanding any other pro21 vision of this Act, the Secretary of Health and Human

22 Services shall take such actions as may be necessary, in23 cluding reductions in force actions, consistent with sec24 tions 3502 and 3595 of title 5, United States Code, to

25 reduce the full-time equivalent positions within the De26 partment of Health and Human Services—
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1 (1) by 245 full-time equivalent positions related

2 to the program converted into a block grant under

3 the amendment made by section 101(b); and

4 (2) by 60 full-time equivalent managerial posi5 tions in the Department.

6 SEC. 1203. REDUCING PERSONNEL IN WASHINGTON, DC,

7 AREA.

8 In making reductions in full-time equivalent posi9 tions, the Secretary is encouraged to reduce personnel in

10 the Washington, DC, area office (agency headquarters)

11 before reducing field personnel.

12 TITLE XIII—MISCELLANEOUS

13 PROVISIONS

14 SEC. 1301. EXPENDITURE OF FEDERAL FUNDS IN ACCORD15 ANCE WITH LAWS AND PROCEDURES APPLI16 CABLE TO EXPENDITURE OF STATE FUNDS.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law, any funds received by a State under the provi19 sions of law specified in subsection (b) shall be expended

20 only in accordance with the laws and procedures applicable

21 to expenditures of the State’s own revenues, including ap22 propriation by the State legislature, consistent with the

23 terms and conditions required under such provisions of

24 law.
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1 (b) PROVISIONS OF LAW.—The provisions of law

2 specified in this subsection are the following:

3 (1) Part A of title IV of the Social Security Act

4 (relating to block grants for temporary assistance to

5 needy families).

6 (2) Section 25 of the Food Stamp Act of 1977

7 (relating to the optional State food assistance block

8 grant).

9 (3) The Child Care and Development Block

10 Grant Act of 1990 (relating to block grants for child

11 care).

12 SEC. 1302. ELIMINATION OF HOUSING ASSISTANCE WITH

13 RESPECT TO FUGITIVE FELONS AND PROBA14 TION AND PAROLE VIOLATORS.

15 (a) ELIGIBILITY FOR ASSISTANCE.—The United

16 States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is

17 amended—

18 (1) in section 6(l)—

19 (A) in paragraph (5), by striking ‘‘and’’ at

20 the end;

21 (B) in paragraph (6), by striking the pe22 riod at the end and inserting ‘‘; and’’; and

23 (C) by inserting immediately after para24 graph (6) the following new paragraph:
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1 ‘‘(7) provide that it shall be cause for imme2 diate termination of the tenancy of a public housing

3 tenant if such tenant—

4 ‘‘(A) is fleeing to avoid prosecution, or cus5 tody or confinement after conviction, under the

6 laws of the place from which the individual

7 flees, for a crime, or attempt to commit a

8 crime, which is a felony under the laws of the

9 place from which the individual flees, or which,

10 in the case of the State of New Jersey, is a

11 high misdemeanor under the laws of such State;

12 or

13 ‘‘(2) is violating a condition of probation or pa14 role imposed under Federal or State law.’’; and

15 (2) in section 8(d)(1)(B)—

16 (A) in clause (iii), by striking ‘‘and’’ at the

17 end;

18 (B) in clause (iv), by striking the period at

19 the end and inserting ‘‘; and’’; and

20 (C) by adding after clause (iv) the follow21 ing new clause:

22 ‘‘(v) it shall be cause for termination

23 of the tenancy of a tenant if such tenant—

24 ‘‘(I) is fleeing to avoid prosecu25 tion, or custody or confinement after
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1 conviction, under the laws of the place

2 from which the individual flees, for a

3 crime, or attempt to commit a crime,

4 which is a felony under the laws of

5 the place from which the individual

6 flees, or which, in the case of the

7 State of New Jersey, is a high mis8 demeanor under the laws of such

9 State; or

10 ‘‘(II) is violating a condition of

11 probation or parole imposed under

12 Federal or State law;’’.

13 (b) PROVISION OF INFORMATION TO LAW ENFORCE14 MENT AGENCIES.—Section 28 of the United States Hous15 ing Act of 1937, as added by section 504(c) of this Act,

16 is amended by adding at the end the following new sub17 section:

18 ‘‘(b) EXCHANGE OF INFORMATION WITH LAW EN19 FORCEMENT AGENCIES.—Notwithstanding any other pro20 vision of law, each public housing agency that enters into

21 a contract for assistance under section 6 or 8 of this Act

22 with the Secretary shall furnish any Federal, State, or

23 local law enforcement officer, upon the request of the offi24 cer, with the current address, Social Security number, and
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1 photograph (if applicable) of any recipient of assistance

2 under this Act, if the officer—

3 ‘‘(1) furnishes the public housing agency with

4 the name of the recipient; and

5 ‘‘(2) notifies the agency that—

6 ‘‘(A) such recipient—

7 ‘‘(i) is fleeing to avoid prosecution, or

8 custody or confinement after conviction,

9 under the laws of the place from which the

10 individual flees, for a crime, or attempt to

11 commit a crime, which is a felony under

12 the laws of the place from which the indi13 vidual flees, or which, in the case of the

14 State of New Jersey, is a high mis15 demeanor under the laws of such State; or

16 ‘‘(ii) is violating a condition of proba17 tion or parole imposed under Federal or

18 State law; or

19 ‘‘(iii) has information that is nec20 essary for the officer to conduct the offi21 cer’s official duties;

22 ‘‘(B) the location or apprehension of the

23 recipient is within such officer’s official duties;

24 and
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1 ‘‘(C) the request is made in the proper ex2 ercise of the officer’s official duties.’’.

3 SEC. 1303. SENSE OF THE SENATE REGARDING ENTER4 PRISE ZONES.

5 (a) FINDINGS.—The Senate finds that—

6 (1) many of the Nation’s urban centers are

7 places with high levels of poverty, high rates of wel8 fare dependency, high crime rates, poor schools, and

9 joblessness;

10 (2) Federal tax incentives and regulatory re11 forms can encourage economic growth, job creation

12 and small business formation in many urban centers;

13 (3) encouraging private sector investment in

14 America’s economically distressed urban and rural

15 areas is essential to breaking the cycle of poverty

16 and the related ills of crime, drug abuse, illiteracy,

17 welfare dependency, and unemployment; and

18 (4) the empowerment zones enacted in 1993

19 should be enhanced by providing incentives to in20 crease entrepreneurial growth, capital formation, job

21 creation, educational opportunities, and home owner22 ship in the designated communities and zones.

23 (b) SENSE OF THE SENATE.—Therefore, it is the

24 Sense of the Senate that the Congress should adopt enter25 prise zone legislation in the One Hundred Fourth Con-
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1 gress, and that such enterprise zone legislation provide the

2 following incentives and provisions:

3 (1) Federal tax incentives that expand access to

4 capital, increase the formation and expansion of

5 small businesses, and promote commercial revitaliza6 tion.

7 (2) Regulatory reforms that allow localities to

8 petition Federal agencies, subject to the relevant

9 agencies’ approval, for waivers or modifications of

10 regulations to improve job creation, small business

11 formation and expansion, community development,

12 or economic revitalization objectives of the enterprise

13 zones.

14 (3) Home ownership incentives and grants to

15 encourage resident management of public housing

16 and home ownership of public housing.

17 (4) School reform pilot projects in certain des18 ignated enterprise zones to provide low-income par19 ents with new and expanded educational options for

20 their children’s elementary and secondary schooling.

21 SEC. 1304. SENSE OF THE SENATE REGARDING THE INABIL22 ITY OF THE NON-CUSTODIAL PARENT TO PAY

23 CHILD SUPPORT.

24 It is the sense of the Senate that—
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1 (a) States should diligently continue their efforts to

2 enforce child support payments by the non-custodial par3 ent to the custodial parent, regardless of the employment

4 status or location of the non-custodial parent; and

5 (b) States are encouraged to pursue pilot programs

6 in which the parents of a non-adult, non-custodial parent

7 who refuses to or is unable to pay child support must—

8 (1) pay or contribute to the child support owed

9 by the non-custodial parent; or

10 (2) otherwise fulfill all financial obligations and

11 meet all conditions imposed on the non-custodial

12 parent, such as participation in a work program or

13 other related activity.

14 SEC. 1305. FOOD STAMP ELIGIBILITY.

15 Section 6(f) of the Food Stamp Act of 1977 (7

16 U.S.C. 2015(f)) is amended by striking the third sentence

17 and inserting the following:

18 ‘‘The State agency shall, at its option, consider either

19 all income and financial resources of the individual ren20 dered ineligible to participate in the food stamp program

21 under this subsection, or such income, less a pro rata

22 share, and the financial resources of the ineligible individ23 ual, to determine the eligibility and the value of the allot24 ment of the household of which such individual is a mem25 ber.’’.
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1 SEC. 1306. SENSE OF THE SENATE ON LEGISLATIVE AC2 COUNTABILITY FOR UNFUNDED MANDATES

3 IN WELFARE REFORM LEGISLATION.

4 (a) FINDINGS.—The Senate finds that the purposes

5 of the Unfunded Mandates Reform Act of 1995 are—

6 (1) to strengthen the partnership between the

7 Federal Government and State, local and tribal gov8 ernments;

9 (2) to end the imposition, in the absence of full

10 consideration by Congress, of Federal mandates on

11 State, local and tribal governments without adequate

12 Federal funding, in a manner that may displace

13 other essential State, local and tribal governmental

14 priorities;

15 (3) to assist Congress in its consideration of

16 proposed legislation establishing or revising Federal

17 programs containing Federal mandates affecting

18 State, local and tribal governments, and the private

19 sector by—

20 (A) providing for the development of infor21 mation about the nature and size of mandates

22 in proposed legislation; and

23 (B) establishing a mechanism to bring

24 such information to the attention of the Senate

25 and the House of Representatives before the
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1 Senate and the House of Representatives vote

2 on proposed legislation;

3 (4) to promote informed and deliberate deci4 sions by Congress on the appropriateness of Federal

5 mandates in any particular instance; and

6 (5) to require that Congress consider whether

7 to provide funding to assist State, local and tribal

8 governments in complying with Federal mandates.

9 (b) SENSE OF THE SENATE.—It is the sense of the

10 Senate that prior to the Senate acting on the conference

11 report on either H.R. 4 or any other legislation including

12 welfare reform provisions, the Congressional Budget Of13 fice shall prepare an analysis of the conference report to

14 include—

15 (1) estimates, over each of the next 7 fiscal

16 years, by State and in total, of—

17 (A) the costs to States of meeting all work

18 requirements in the conference report, including

19 those for single-parent families, two-parent

20 families, and those who have received cash as21 sistance for 2 years;

22 (B) the resources available to the States to

23 meet these work requirements, defined as Fed24 eral appropriations authorized in the conference

25 report for this purpose in addition to what
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1 States are projected to spend under current

2 welfare law;

3 (C) the amount of any additional revenue

4 needed by the States to meet the work require5 ments in the conference report, beyond re6 sources available as defined under subpara7 graph (b)(1)(B);

8 (2) an estimate, based on the analysis in para9 graph (b)(1), of how many States would opt to pay

10 any penalty provided for by the conference report

11 rather than raise the additional revenue needed to

12 meet the work requirements in the conference re13 port; and

14 (3) estimates, over each of the next 7 fiscal

15 years, of the costs to States of any other require16 ments imposed on them by such legislation.

17 SEC. 1307. SENSE OF THE SENATE REGARDING COMPETI18 TIVE BIDDING FOR INFANT FORMULA.

19 (a) IN GENERAL.—The Senate finds that—

20 (1) the Federal Supplemental Nutrition Pro21 gram for Women, Infants and Children (WIC) is a

22 proven success story, providing special nutrition and

23 health assistance to at-risk pregnant women, infants

24 and children;
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1 (2) WIC has been shown to reduce the inci2 dence of fetal death, low birthweight, infant mortal3 ity and anemia, to increase the nutritional and

4 health status of pregnant women, infants and chil5 dren and to improve the cognitive development of in6 fants and children;

7 (3) research has shown that each dollar spent

8 on WIC for pregnant women results in savings of

9 $1.92 to $4.21 in medicaid expenditures;

10 (4) because of funding limitations not all indi11 viduals eligible for WIC assistance are served by the

12 program;

13 (5) infant formula is a significant item in the

14 cost of WIC monthly food packages, amounting to

15 approximately 26 percent of WIC food costs after

16 subtracting manufacturer’s rebates, but approxi17 mately 48 percent of food costs prior to applying re18 bates;

19 (6) rebates obtained through competitive bid20 ding for infant formula have reduced the cost of in21 fant formula for WIC participants by approximately

22 $4,100,000,000 through the end of fiscal year 1994,

23 allowing millions of additional pregnant women, in24 fants and children to be served by WIC with the lim25 ited funds available;
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1 (7) the Department of Agriculture has esti2 mated that in fiscal year 1995 rebates obtained

3 through competitive bidding for infant formula will

4 total over $1,000,000,000, which will enable WIC to

5 serve approximately 1,600,000 additional women, in6 fants and children; and

7 (8) because of the very substantial cost savings

8 involved, Congress enacted in 1989 legislation re9 quiring that States administering the WIC program

10 conduct competitive bidding for infant formula.

11 (b) SENSE OF THE SENATE.—It is the sense of the

12 Senate that any legislation enacted by Congress should not

13 eliminate or in any way weaken the present competitive

14 bidding requirements for the purchase of infant formula

15 with respect to any program supported wholly or in part

16 by Federal funds.

17 SEC. 1308. ESTABLISHING NATIONAL GOALS TO PREVENT

18 TEENAGE PREGNANCIES.

19 (a) IN GENERAL.—Not later than January 1, 1997,

20 the Secretary of Health and Human Services shall estab21 lish and implement a strategy for—

22 (1) preventing an additional 2 percent of out23 of-wedlock teenage pregnancies a year, and
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1 (2) assuring that at least 25 percent of the

2 communities in the United States have teenage preg3 nancy prevention programs in place.

4 (b) REPORT.—Not later than June 30, 1998, and an5 nually thereafter, the Secretary shall report to the Con6 gress with respect to the progress that has been made in

7 meeting the goals described in paragraphs (1) and (2) of

8 subsection (a).

9 (c) OUT-OF-WEDLOCK AND TEENAGE PREGNANCY

10 PREVENTION PROGRAMS.—Section 2002 of the Social Se11 curity Act (42 U.S.C. 1397a) is amended by adding at

12 the end the following new subsection:

13 ‘‘(2) The Secretary shall conduct a study with respect

14 to the State programs implemented under paragraph (1)

15 to determine the relative effectiveness of the different ap16 proaches for preventing out-of-wedlock and teenage preg17 nancy utilized in the programs conducted under this sub18 section and the approaches that can be best replicated by

19 other States.

20 ‘‘(3) Each State conducting a program under this

21 subsection shall provide to the Secretary, in such form and

22 with such frequency as the Secretary requires, data from

23 the programs conducted under this subsection. The Sec24 retary shall report to the Congress annually on the

25 progress of the programs and shall, not later than June
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1 30, 1998, submit to the Congress a report on the study

2 required under paragraph (2).’’.

3 SEC. 1309. SENSE OF THE SENATE REGARDING ENFORCE4 MENT OF STATUTORY RAPE LAWS.

5 It is the sense of the Senate that States and local

6 jurisdictions should aggressively enforce statutory rape

7 laws.

8 SEC. 1310. SANCTIONING FOR TESTING POSITIVE FOR CON9 TROLLED SUBSTANCES.

10 Notwithstanding any other provision of law, States

11 shall not be prohibited by the Federal Government from

12 sanctioning welfare recipients who test positive for use of

13 controlled substances.

14 SEC. 1311. ABSTINENCE EDUCATION.

15 (a) INCREASES IN FUNDING.—Section 501(a) of the

16 Social Security Act (42 U.S.C. 701(a)) is amended in the

17 matter preceding paragraph (1) by striking ‘‘Fiscal year

18 1990 and each fiscal year thereafter’’ and inserting ‘‘Fis19 cal years 1990 through 1995 and $761,000,000 for fiscal

20 year 1996 and each fiscal year thereafter’’.

21 (b) ABSTINENCE EDUCATION.—Section 501(a)(1) of

22 such Act (42 U.S.C. 701(a)(1)) is amended—

23 (1) in subparagraph (C), by striking ‘‘and’’ at

24 the end;
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1 (2) in subparagraph (D), by adding ‘‘and’’ at

2 the end; and

3 (3) by adding at the end the following new sub4 paragraph:

5 ‘‘(E) to provide abstinence education, and

6 at the option of the State, where appropriate,

7 mentoring, counseling, and adult supervision to

8 promote abstinence from sexual activity, with a

9 focus on those groups which are most likely to

10 bear children out-of-wedlock.’’.

11 (c) ABSTINENCE EDUCATION DEFINED.—Section

12 501(b) of such Act (42 U.S.C. 701(b)) is amended by add13 ing at the end the following new paragraph:

14 ‘‘(5) ABSTINENCE EDUCATION.—For purposes

15 of this subsection, the term ‘abstinence education’

16 shall mean an educational or motivational program

17 which—

18 ‘‘(A) has as its exclusive purpose, teaching

19 the social, psychological, and health gains to be

20 realized by abstaining from sexual activity;

21 ‘‘(B) teaches abstinence from sexual activ22 ity outside marriage as the expected standard

23 for all school age children;

24 ‘‘(C) teaches that abstinence from sexual

25 activity is the only certain way to avoid out-of-
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1 wedlock pregnancy, sexually transmitted dis2 eases, and other associated health problems;

3 ‘‘(D) teaches that a mutually faithful

4 monogamous relationship in context of marriage

5 is the expected standard of human sexual activ6 ity;

7 ‘‘(E) teaches that sexual activity outside of

8 the context of marriage is likely to have harm9 ful psychological and physical effects;

10 ‘‘(F) teaches that bearing children out-of11 wedlock is likely to have harmful consequences

12 for the child, the child’s parents, and society;

13 ‘‘(G) teaches young people how to reject

14 sexual advances and how alcohol and drug use

15 increases vulnerability to sexual advances; and

16 ‘‘(H) teaches the importance of attaining

17 self-sufficiency before engaging in sexual activ18 ity.’’.

19 (d) SET-ASIDE.—

20 (1) IN GENERAL.—Section 502(c) of such Act

21 (42 U.S.C. 702(c)) is amended in the matter preced22 ing paragraph (1) by striking ‘‘From’’ and inserting

23 ‘‘Except as provided in subsection (e), from’’.
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1 (2) SET-ASIDE.—Section 502 of such Act (42

2 U.S.C. 702) is amended by adding at the end the

3 following new subsection:

4 ‘‘(e) Of the amounts appropriated under section

5 501(a) for any fiscal year, the Secretary shall set aside

6 $75,000,000 for abstinence education in accordance with

7 section 501(a)(1)(E).

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