I

103D CONGRESS

2D SESSION H. R. 4318

To reduce reliance on public assistance by improving education and job

training programs, strengthening support services and case management,

eliminating penalties against two-parent families, allowing welfare recipients to keep more of their earnings and benefits as they move into

the workforce, and increasing child support enforcement.

IN THE HOUSE OF REPRESENTATIVES

APRIL 28, 1994

Ms. WOOLSEY (for herself and Mr. REGULA) introduced the following bill;

which was referred jointly to the Committees on Ways and Means, Education and Labor, and Energy and Commerce

AUGUST 10, 1994

Additional sponsors: Mrs. CLAYTON, Mrs. UNSOELD, Mr. YATES, Mr. FROST,

Ms. ROYBAL-ALLARD, Ms. PELOSI, Mr. BECERRA, Mr. SCOTT, Mr. HAMBURG, Mr. MINETA, Mr. FARR of California, Mr. MATSUI, Mr. MILLER

of California, Mr. GENE GREEN of Texas, Mr. MARTINEZ, Miss COLLINS

of Michigan, Mr. BARLOW, Mr. HEFNER, and Mr. STUDDS

A BILL

To reduce reliance on public assistance by improving education and job training programs, strengthening support

services and case management, eliminating penalties

against two-parent families, allowing welfare recipients

to keep more of their earnings and benefits as they

move into the workforce, and increasing child support

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Working Off Welfare

5 Act of 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—WELFARE REFORM

Subtitle A—Aid To Families With Dependent Children

Sec. 101. Determination of State standard of need.

Sec. 102. Elimination of restrictions on ‘‘fill the gap’’ policies.

Sec. 103. Maintenance of benefit levels.

Sec. 104. Income disregards.

Sec. 105. Elimination of rules that treat families differently based on number

of parents in the home.

Sec. 106. Modification of child support disregard.

Sec. 107. Treatment of stepparent income.

Sec. 108. Availability of child care and medicaid benefits to persons eligible for

but not receiving AFDC.

Sec. 109. Coordination of services.

Sec. 110. Expenditure of JOBS funds for self-initiated activities.

Sec. 111. Emphasis on certain types of jobs.

Sec. 112. Limited class preparation time considered participation in the JOBS

program.

Sec. 113. School attendance by teens considered participation in the JOBS program.

Sec. 114. Performance standards using self-sufficiency standards.

Sec. 115. Activities under the JOBS program.

Sec. 116. Increase in JOBS program funding.

Sec. 117. Increase in JOBS matching rate.

Sec. 118. Increase in required JOBS participation rates.

Sec. 119. Simplification of reporting requirements.

Sec. 120. State caseworker training programs.

Sec. 121. Use of JOBS funds for certain other purposes.

Sec. 122. Case management.

Sec. 123. Child care benefits.

Sec. 124. Extension of transitional child care and medicaid benefits.

Sec. 125. Treatment of certain services for purposes of contract authority.

Subtitle B—Earned Income Tax Credit

Sec. 131. Recommendations for quarterly payments of earned income credit.
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Subtitle C—Microenterprise and Small Business Development

Sec. 141. Disregard of income and resources designated for education, training,

and employability.

Sec. 142. Disregard of income and resources related to self-employment.

Subtitle D—Effective Date

Sec. 151. Effective date.

TITLE II—FEDERAL JOB TRAINING PROGRAM REFORMS

Subtitle A—Studies and Reports

Sec. 201. Departments of Education, Health and Human Services, and Labor

studies and reports.

Sec. 202. General Accounting Office study and report.

Subtitle B—Economic Self-Sufficiency Standards for Federal Job Training

Programs

Sec. 211. Establishment of standards.

Sec. 212. Poverty line and regional housing based formula.

Sec. 213. Family, housing, and related factors based formula.

Sec. 214. Economic self-sufficiency defined.

Subtitle C—Effective Date

Sec. 221. Effective date.

TITLE III—CHILD SUPPORT ENFORCEMENT

Sec. 301. National child support order registry.

Sec. 302. Modification of W–4 reporting requirements to provide for reporting

of child support obligations of employees.

Sec. 303. Collection of child support.

Sec. 304. Distribution of portion of child support collected.

Sec. 305. Outreach and accessibility.

Sec. 306. Commission on Child Support Guidelines.

Sec. 307. Resources.

Sec. 308. Paternity establishment procedures.

Sec. 309. Coordination of collection activities.

Sec. 310. Inclusion in consumer credit reports of information on overdue child

support obligations of the consumer.

Sec. 311. Effective date.

1 TITLE I—WELFARE REFORM

2 Subtitle A—Aid To Families With

3 Dependent Children

4 SEC. 101. DETERMINATION OF STATE STANDARD OF NEED.

5 (a) STATE PLAN REQUIREMENT.—Section 402(a) of

6 the Social Security Act (42 U.S.C. 602(a)) is amended—
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1 (1) in paragraph (44), by striking ‘‘and’’ after

2 the semicolon;

3 (2) in paragraph (45), by striking the period

4 and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (45) the fol6 lowing:

7 ‘‘(46) provide that the State’s standard of need

8 for a family shall be determined in accordance with

9 subsection (d).’’.

10 (b) RULES FOR DETERMINING STANDARD OF

11 NEED.—Section 402 of such Act (42 U.S.C. 602) is

12 amended by inserting after subsection (c) the following:

13 ‘‘(d)(1) At the time of each otherwise required re14 evaluation of a State’s standard of need, the State shall

15 elect to determine its standard of need in accordance with

16 paragraph (2), (3), or (4).

17 ‘‘(2) A State that elects to determine its standard of

18 need in accordance with this paragraph shall set its stand19 ard of need for any family of a certain size and composi20 tion at a level that is not less than the sum of—

21 ‘‘(A) the applicable living standard for such a

22 family; and

23 ‘‘(B) the amount (if any) by which the weighted

24 average housing costs for the State, adjusted by the

25 State (subject to the approval of the Secretary) for
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1 the size of such a family, exceeds 30 percent of the

2 applicable living standard.

3 ‘‘(3) A State that elects to determine its standard of

4 need in accordance with this paragraph shall set its stand5 ard of need for any family of a certain size and composi6 tion that resides in a market area in the State at a level

7 that is not less than the sum of—

8 ‘‘(A) the applicable living standard for such a

9 family; and

10 ‘‘(B) the amount (if any) by which the average

11 housing costs for the market area, adjusted by the

12 State (subject to the approval of the Secretary) for

13 the size of such a family, exceeds 30 percent of the

14 applicable living standard.

15 ‘‘(4) A State that elects to determine its standard of

16 need in accordance with this paragraph shall set its stand17 ard of need for a family of a certain size and composition

18 at a level equal to the greater of—

19 ‘‘(A) the level determined under paragraph (2)

20 for such a family; or

21 ‘‘(B) such level as the State determines is ap22 propriate for such a family, after taking into ac23 count—

24 ‘‘(i) child care costs;

25 ‘‘(ii) health care costs;
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1 ‘‘(iii) transportation costs;

2 ‘‘(iv) fair market rents for a dwelling unit

3 of adequate size;

4 ‘‘(v) food costs; and

5 ‘‘(vi) work-related costs.

6 ‘‘(5) As used in this subsection:

7 ‘‘(A) The term ‘applicable living standard’

8 means, with respect to a family, 130 percent of the

9 income official poverty line (as defined by the Office

10 of Management and Budget, and revised annually in

11 accordance with section 673(2) of the Omnibus

12 Budget Reconciliation Act of 1981) for a family of

13 the same size as the family.

14 ‘‘(B) The term ‘weighted average housing costs’

15 means, with respect to a State, the sum of the

16 weighted average housing costs for each market area

17 part or all of which is in the State.

18 ‘‘(C) The term ‘weighted average housing costs’

19 means, with respect to a market area—

20 ‘‘(i) the average housing costs for the mar21 ket area; multiplied by

22 ‘‘(ii) the percentage of the population of

23 the State that resides in the market area.

24 ‘‘(D) The term ‘average housing costs’ means,

25 with respect to a market area, the fair market rental
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1 established by the Secretary of Housing and Urban

2 Development under section 8(a) of the United States

3 Housing Act of 1937 for the market area.

4 ‘‘(E) The term ‘market area’ shall have the

5 same meaning such term has for purposes of deter6 mining fair market rentals under section 8(a) of the

7 United States Housing Act of 1937.’’.

8 SEC. 102. ELIMINATION OF RESTRICTIONS ON ‘‘FILL THE

9 GAP’’ POLICIES.

10 Section 402(a)(28) of the Social Security Act (42

11 U.S.C. 602(a)) is amended—

12 (1) by inserting ‘‘(A)’’ after ‘‘(28)’’;

13 (2) by adding ‘‘or’’ at the end; and

14 (3) by adding below the end the following:

15 ‘‘(B) at the option of a State to which subpara16 graph (A) does not apply, provide that, in addition

17 to the amount of aid otherwise payable to a family

18 for a month under the State plan, the State may

19 pay to the family the amount collected in the month

20 as child support with respect to a dependent child in

21 the family that is not otherwise disregarded from in22 come pursuant to paragraph (8)(A)(vi), to the extent

23 that the aggregate of such collected amount, the

24 amount of the aid otherwise payable to the family

25 for the month, and an amount equal to the other in-
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1 come of the family not disregarded from income for

2 the month pursuant to paragraph (8) does not ex3 ceed the State’s standard of need for a family of the

4 same composition;’’.

5 SEC. 103. MAINTENANCE OF BENEFIT LEVELS.

6 (a) IN GENERAL.—Section 402(a) of the Social Secu7 rity Act (42 U.S.C. 602(a)), as amended by section 101(a)

8 of this Act, is amended—

9 (1) in paragraph (45), by striking ‘‘and’’ after

10 the semicolon;

11 (2) in paragraph (46), by striking the period

12 and inserting ‘‘; and’’; and

13 (3) by inserting after paragraph (46) the fol14 lowing:

15 ‘‘(47) provide that the maximum amount of aid

16 payable for any month to a family under the State

17 plan shall not be reduced below the maximum

18 amount of aid so payable for January 1994 to a

19 family of the same composition.’’.

20 (b) EXEMPTION FROM WAIVER AUTHORITY.—Sec21 tion 1115(a)(1) of such Act (42 U.S.C. 1315(a)(1)) is

22 amended by inserting ‘‘(other than subsection (a)(47))’’

23 after ‘‘402’’.
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1 SEC. 104. INCOME DISREGARDS.

2 Section 402(a)(8) of the Social Security Act (42

3 U.S.C. 602(a)(8)) is amended—

4 (1) in subparagraph (A)—

5 (A) by striking clause (ii);

6 (B) in clause (iii), by striking ‘‘child, rel7 ative, or other individual specified in clause

8 (ii)’’ and inserting ‘‘child or relative applying

9 for or receiving aid to families with dependent

10 children, or of any other individual living in the

11 same home as such relative and child) whose

12 needs are taken into account in making such

13 determination’’; and

14 (C) in clause (iv)—

15 (i) in subclause (I), by striking ‘‘$30’’

16 and inserting ‘‘$200’’; and

17 (ii) in subclause (II), by striking

18 ‘‘one-third’’ and inserting ‘‘not less than

1⁄3 and not more than 2 19 ⁄3’’; and

20 (2) in subparagraph (B)—

21 (A) by striking clause (ii);

22 (B) by striking ‘‘—’’ and all that follows

23 through ‘‘(i)’’; and

24 (C) by redesignating subclauses (I), (II),

25 and (III) of clause (i) as clauses (i), (ii), and

26 (iii), respectively.
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1 SEC. 105. ELIMINATION OF RULES THAT TREAT FAMILIES

2 DIFFERENTLY BASED ON NUMBER OF PAR3 ENTS IN THE HOME.

4 (a) IN GENERAL.—Section 402(a) of the Social Secu5 rity Act (42 U.S.C. 602(a)) is amended by striking para6 graph (41).

7 (b) CONFORMING AMENDMENTS.—

8 (1) Section 402(a)(19)(B)(i)(II) of such Act

9 (42 U.S.C. 602(a)(19)(B)(i)(II)) is amended by

10 striking ‘‘(and’’ and all that follows through

11 ‘‘407(b)(2)(B)(i))’’.

12 (2) Section 402(a)(19)(D) of such Act (42

13 U.S.C. 602(a)(19)(D)) is amended by striking ‘‘eligi14 ble’’ and all that follows through ‘‘earner’’ and in15 serting ‘‘in which both parents are living at home’’.

16 (3) Section 402(a)(19)(G)(i) of such Act (42

17 U.S.C. 602(a)(19)(G)(i)) is amended—

18 (A) in subclause (I), by striking ‘‘(whether

19 or not section 407 applies)’’; and

20 (B) in subclause (II)—

21 (i) by striking ‘‘which is eligible for

22 aid to families with dependent children by

23 reason of section 407’’ and inserting ‘‘in

24 which both parents are living at home’’;

25 and
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1 (ii) by striking ‘‘the needs of such

2 spouse shall also not’’ and inserting ‘‘the

3 spouse shall be required to participate in

4 the program and, unless the spouse fails

5 without good cause to so participate, the

6 needs of the spouse shall’’.

7 (4) Section 402(a)(38)(B) of such Act (42

8 U.S.C. 602(a)(38)(B)) is amended by striking ‘‘or in

9 section 407(a)’’.

10 (5) Section 402(a) of such Act (42 U.S.C.

11 602(a)) is amended by striking paragraph (42).

12 (6) Section 403(l)(4)(A)(i) of such Act (42

13 U.S.C. 603(l)(4)(A)(i)) is amended by striking

14 ‘‘family eligible’’ and all that follows through ‘‘earn15 er’’ and inserting ‘‘2-parent family’’.

16 (7) Section 406(a)(1) of such Act (42 U.S.C.

17 606(a)(1)) is amended by striking ‘‘who has been

18 deprived’’ and all that follows through ‘‘incapacity of

19 a parent’’.

20 (8) Section 406(b)(1) of such Act (42 U.S.C.

21 606(b)(1)) is amended by striking ‘‘and if such rel22 ative’’ and all that follows through ‘‘section 407’’.

23 (9) Section 407 of such Act (42 U.S.C. 607) is

24 hereby repealed.
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1 (10) Section 472(a) of such Act (42 U.S.C.

2 672(a)) is amended by striking ‘‘or of section 407’’.

3 (11) Section 473(a)(2)(A)(i) of such Act (42

4 U.S.C. 672(a)(2)(A)(i)) is amended by striking ‘‘or

5 section 407’’.

6 (12) Section 1115(b) of such Act (42 U.S.C.

7 1315(b)) is amended by striking paragraph (5).

8 (13) Section 1115 of such Act (42 U.S.C.

9 1315) is amended by striking subsection (d).

10 (14) Section 1902(a)(10)(A)(i) of such Act (42

11 U.S.C. 1396a(a)(10)(A)(i)) is amended by striking

12 subclause (V) and by redesignating subclauses (VI)

13 and (VII) as subclauses (V) and (VI), respectively.

14 (15) Section 1905 of such Act (42 U.S.C.

15 1396d) is amended by striking subsection (m).

16 (16) Section 1905(n)(1) of such Act (42 U.S.C.

17 1396d(n)(1)) is amended—

18 (A) in subparagraph (A)—

19 (i) by striking ‘‘(or’’ and all that fol20 lows through ‘‘407)’’; and

21 (ii) by adding ‘‘or’’ at the end; and

22 (B) by striking subparagraph (B).

23 (17) Section 204(b)(2) of the Family Support

24 Act of 1988 (42 U.S.C. 681 note) is amended by

25 striking ‘‘1998’’ and inserting ‘‘1999’’.
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1 SEC. 106. MODIFICATION OF CHILD SUPPORT DISREGARD.

2 (a) IN GENERAL.—Section 402(a)(8)(A)(vi) of the

3 Social Security Act (42 U.S.C. 602(a)(8)(A)(vi)) is

4 amended to read as follows:

‘‘(vi) shall disregard 1 5 ⁄2 of the amount of

6 any child support payment received with respect

7 to any dependent child in any family applying

8 for or receiving aid under the State plan (and

1 9 ⁄2 of any support payment collected and paid

10 to any such family under section 457(b));’’.

11 (b) CONFORMING AMENDMENTS.—Section 457(b)(1)

12 of such Act (42 U.S.C. 657(b)(1)) is amended by striking

13 ‘‘the first $50’’ each place such term appears and inserting ‘‘a dollar amount equal to 1 14 ⁄2’’.

15 SEC. 107. TREATMENT OF STEPPARENT INCOME.

16 (a) OPTION OF FAMILY TO HAVE NEEDS OF STEP17 PARENT CONSIDERED.—Section 402(a)(7)(A) of the So18 cial Security Act (42 U.S.C. 602(a)(7)(A)) is amended by

19 inserting ‘‘, (at the option of such relative) of any step20 parent of the child (living in the same home as such child

21 and relative),’’ before ‘‘, or of any other individual’’.

22 (b) MODIFICATION OF STEPPARENT INCOME DIS23 REGARD.—Section 402(a)(31) of such Act (42 U.S.C.

24 602(a)(31)) is amended—
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1 (1) by inserting ‘‘if the needs of a stepparent

2 of the dependent child living in the same home as

3 the child are not considered’’ before ‘‘in making’’;

4 (2) by striking ‘‘dependent child’s stepparent

5 living in the same home as such child’’ and inserting

6 ‘‘stepparent’’; and

7 (3) by adding at the end of subparagraph (B)

8 the following: ‘‘or, if greater, 130 percent of the in9 come official poverty line (as defined by the Office

10 of Management and Budget, and revised annually in

11 accordance with section 673(2) of the Omnibus

12 Budget Reconciliation Act of 1981) applicable to

13 such a family,’’.

14 SEC. 108. AVAILABILITY OF CHILD CARE AND MEDICAID

15 BENEFITS TO PERSONS ELIGIBLE FOR BUT

16 NOT RECEIVING AFDC.

17 (a) CHILD CARE.—Section 402(g)(1)(A)(i)(I) of the

18 Social Security Act (42 U.S.C. 602(g)(1)(A)(i)(I)) is

19 amended by inserting ‘‘(whether or not the family is a re20 cipient of aid under the State plan under this part)’’ be21 fore the comma.

22 (b) MEDICAID.—Section 402(a) of such Act (42

23 U.S.C. 602(a)), as amended by sections 101(a) and 103

24 of this Act, is amended—
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1 (1) in paragraph (46), by striking ‘‘and’’ after

2 the semicolon;

3 (2) in paragraph (47), by striking the period

4 and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (47) the fol6 lowing:

7 ‘‘(48) provide that—

8 ‘‘(A) a family eligible for aid under the

9 State plan approved under this part shall be

10 considered eligible for medical assistance under

11 the State plan approved under title XIX,

12 whether or not the family is a recipient of aid

13 under the State plan approved under this part;

14 and

15 ‘‘(B) the State shall make a reasonable ef16 fort to inform all persons who may be eligible

17 for assistance under the State plan approved

18 under this part of the availability of child care

19 under section 402(g), and the availability of

20 medical assistance under the State plan ap21 proved under title XIX without application for

22 aid under the State plan approved under this

23 part.’’.
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1 SEC. 109. COORDINATION OF SERVICES.

2 (a) IN GENERAL.—Section 402(a) of such Act (42

3 U.S.C. 602(a)), as amended by sections 101(a), 103, and

4 108(b) of this Act, is amended—

5 (1) in paragraph (47), by striking ‘‘and’’ after

6 the semicolon;

7 (2) in paragraph (48), by striking the period

8 and inserting ‘‘; and’’; and

9 (3) by inserting after paragraph (48) the fol10 lowing:

11 ‘‘(49) provide that the State agency shall—

12 ‘‘(A) establish at least 1 convenient loca13 tion in each community (if practicable, as de14 fined by the Secretary in regulations) at which

15 a person may apply for and (if appropriate) re16 ceive, directly or through referral to the appro17 priate provider, in appropriate languages and in

18 a culturally sensitive manner—

19 ‘‘(i) aid under the State plan;

20 ‘‘(ii) employment and education coun21 seling;

22 ‘‘(iii) child care;

23 ‘‘(iv) health care;

24 ‘‘(v) transportation assistance;

25 ‘‘(vi) housing assistance;

26 ‘‘(vii) child support services; and
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1 ‘‘(viii) other types of counseling and

2 support services; and

3 ‘‘(B) assign to each recipient of aid under

4 the State plan, and to each applicant for such

5 aid (within 30 days after the date of applica6 tion), a case manager who—

7 ‘‘(i) is knowledgeable about commu8 nity resources;

9 ‘‘(ii) is qualified to refer the applicant

10 or recipient to appropriate education and

11 training opportunities, employment pro12 grams, and needed health and social serv13 ices; and

14 ‘‘(iii) is required to coordinate the

15 provision of benefits and services by the

16 State to the applicant or recipient, until

17 the applicant or recipient is no longer eligi18 ble for—

19 ‘‘(I) aid under the State plan;

20 ‘‘(II) child care guaranteed by

21 the State in accordance with section

22 402(g); and

23 ‘‘(III) medical assistance under

24 the State plan approved under title

25 XIX.’’.
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1 (b) STAFFING GUIDELINES.—Section 402 of such

2 Act (42 U.S.C. 602) is amended by adding at the end the

3 following:

4 ‘‘(j)(1) The Secretary shall establish guidelines for

5 the staffing of the State agencies referred to in subsection

6 (a)(3) that include recommendations for qualifications of

7 personnel employed by such agencies and for appropriate

8 caseload size.

9 ‘‘(2) Every 2 years, each State shall report to the

10 Secretary on—

11 ‘‘(A) the extent to which the State is staffing

12 the State agencies referred to in subsection (a)(3) in

13 accordance with the guidelines established pursuant

14 to paragraph (1) of this subsection; and

15 ‘‘(B) to the extent the State is not doing so,

16 how the State is carrying out the provisions of the

17 State plan required by subsection (a)(49).’’.

18 SEC. 110. EXPENDITURE OF JOBS FUNDS FOR SELF-INITI19 ATED ACTIVITIES.

20 (a) IN GENERAL.—Section 403(l) of the Social Secu21 rity Act (42 U.S.C. 603(l)) is amended by adding at the

22 end the following:

23 ‘‘(5) For purposes of this subsection, to the extent

24 that a State elects to pay, and pays, the costs of school

25 or training described in section 402(a)(19)(F)(i) for an
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1 individual participating in the program of the State under

2 part F, such costs shall be considered expenditures of the

3 State to carry out the program.’’.

4 (b) CONFORMING AMENDMENTS.—Section

5 402(a)(19)(F) of such Act (42 U.S.C. 602(a)(19)(F)) is

6 amended—

7 (1) by adding ‘‘and’’ at the end of clause (ii);

8 (2) by striking clause (iii); and

9 (3) by redesignating clause (iv) as clause (iii).

10 SEC. 111. EMPHASIS ON CERTAIN TYPES OF JOBS.

11 Section 485(e) of the Social Security Act (42 U.S.C.

12 685(e)) is amended by inserting ‘‘, especially jobs in indus13 tries that utilize new technologies, and in environmental

14 engineering, environmental cleanup, advanced tele15 communications, transportation, infrastructure, or com16 puters, jobs that pay wages sufficient to meet or exceed

17 the State’s standard of need, and jobs in fields in which

18 women constitute less than 25 percent of the workforce,’’

19 before the period.

20 SEC. 112. LIMITED CLASS PREPARATION TIME CONSID21 ERED PARTICIPATION IN THE JOBS PRO22 GRAM.

23 Section 403(l)(3)(D) of the Social Security Act (42

24 U.S.C. 603(l)(3)(D)) is amended—

25 (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and
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1 (2) by adding at the end the following:

2 ‘‘(ii) For purposes of this paragraph, for each full

3 hour spent by an individual in a postsecondary course of

4 education, 1 hour spent by the individual preparing for

5 the course shall be determined to be participation by the

6 individual for 1 hour in the program under part F.’’.

7 SEC. 113. SCHOOL ATTENDANCE BY TEENS CONSIDERED

8 PARTICIPATION IN THE JOBS PROGRAM.

9 Section 403(l)(3)(D) of the Social Security Act (42

10 U.S.C. 603(l)(3)(D)), as amended by section 112 of this

11 Act, is amended by adding at the end the following:

12 ‘‘(iii) For purposes of this paragraph, the hours an

13 individual spends in school shall be determined to be hours

14 of participation in the program under part F if the individ15 ual—

16 ‘‘(I) has not attained 20 years of age;

17 ‘‘(II) is a custodial parent or pregnant, or has

18 attained 16 years of age; and

19 ‘‘(III) is attending school in accordance with

20 the employability plan developed for the individual

21 pursuant to section 482(b)(3).’’.

22 SEC. 114. PERFORMANCE STANDARDS USING SELF-SUFFI23 CIENCY STANDARDS.

24 Section 487 of the Social Security Act (42 U.S.C

25 687) is amended—
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1 (1) in subsection (a)(2), by inserting ‘‘, shall re2 quire each State operating a program under this

3 part to measure the extent to which program partici4 pants become self-sufficient (as defined in section

5 481(a)) within 2 years after beginning such partici6 pation,’’ before ‘‘and shall’’; and

7 (2) by adding at the end the following:

8 ‘‘(d) Beginning with fiscal year 1998, each State op9 erating a program under this part shall annually submit

10 to the Secretary a report on the numbers and percentages

11 of program participants who become self-sufficient (as de12 fined in section 481(a)) within 2 years after beginning

13 such participation, and the extent to which the percentage

14 of such participants becoming self-sufficient has reached

15 a target level determined by the Secretary (which shall not

16 be less than 20 percent for fiscal year 1998).’’.

17 SEC. 115. ACTIVITIES UNDER THE JOBS PROGRAM.

18 (a) PURPOSE.—Section 481(a) of the Social Security

19 Act (42 U.S.C. 681(a)) is amended to read as follows:

20 ‘‘(a) PURPOSE.—The purpose of this part is to help

21 needy families with children obtain the education, train22 ing, and employment that will enable them to become self23 sufficient as quickly as possible. For purposes of this part,

24 the term ‘self-sufficient’ means gainfully employed in a job

25 which, together with the family’s other income, provides
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1 income sufficient to meet or exceed the State’s standard

2 of need determined under section 402(d) for a family of

3 the same size and composition as the family.’’.

4 (b) STATE PLAN REQUIRED TO INCLUDE DESCRIP5 TION OF STATE EFFORTS TO HELP CERTAIN PARTICI6 PANTS BECOME SELF-SUFFICIENT.—Section

7 482(a)(1)(B) of such Act (42 U.S.C. 482(a)(1)(B)) is

8 amended by striking ‘‘and (iii)’’ and inserting ‘‘(iii) a de9 scription of the policies and practices of the State designed

10 to ensure that (I) individuals who need educational activi11 ties (within the meaning of subsection (d)(1)(A)(i)(I)) to

12 assist them in becoming self-sufficient are placed in pro13 grams with clear goals, benchmarks and timetables for

14 measuring progress, and periodic reassessments to deter15 mine the continued appropriateness of their participation

16 in such activities, and (II) individuals who need job skills

17 training to become employed in their target occupation are

18 placed in training programs in which the provider of train19 ing provides participants who successfully complete the

20 training program with a certificate of mastery indicating

21 the occupation for which the participant is qualified, and

22 (iv)’’.

23 (c) ASSESSMENT OF NEEDS AND SKILLS OF PARTICI24 PANTS; IDENTIFICATION OF TARGET OCCUPATIONS; DE25 VELOPMENT OF EMPLOYABILITY PLANS.—Section 482(b)
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1 of such Act (42 U.S.C. 682(b)) is amended to read as

2 follows:

3 ‘‘(b) ASSESSMENT OF NEEDS AND SKILLS OF PAR4 TICIPANTS; IDENTIFICATION OF TARGET OCCUPATIONS;

5 DEVELOPMENT OF EMPLOYABILITY PLANS; MONITOR6 ING.—

7 ‘‘(1) ASSESSMENT.—

8 ‘‘(A) ASSIGNMENT OF CASE MANAGER.—

9 The State must assign a case manager to each

10 participant in the program under this part.

11 ‘‘(B) DUTIES OF CASE MANAGER.—The

12 case manager shall be responsible for ensuring

13 that the participant receives an assessment of—

14 ‘‘(i) the educational, child care, and

15 other supportive services needs of the fam16 ily of the participant;

17 ‘‘(ii) the skills, prior work experience,

18 and employability of the participant; and

19 ‘‘(iii) the ability of the participant

20 (with appropriate services) to become self21 sufficient.

22 ‘‘(C) EDUCATIONAL AND VOCATIONAL

23 TESTING.—The assessment must include edu24 cational and vocational testing in order to de25 termine the skills of the participant, if nec-
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1 essary to help identify a target occupation for

2 the participant.

3 ‘‘(2) TARGET OCCUPATION.—

4 ‘‘(A) IDENTIFICATION.—On the basis of

5 the assessment and testing provided for pursu6 ant to paragraph (1), the participant must, in

7 consultation with the State, identify 1 or more

8 target occupations for the participant. The

9 State shall use local labor market information

10 (which shall be provided annually by the State

11 department of labor) to assist the participant in

12 identifying a target occupation.

13 ‘‘(B) DEFINITION.—As used in this sub14 section, the term ‘target occupation’ means,

15 with respect to a participant, an occupation

16 that provides an opportunity for the participant

17 to become self-sufficient.

18 ‘‘(3) EMPLOYABILITY PLAN.—

19 ‘‘(A) IN GENERAL.—On the basis of the

20 assessment and testing provided for pursuant to

21 paragraph (1), the State must, in consultation

22 with the participant, develop (and, for good

23 cause, amend) an employability plan for the

24 participant which must—
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1 ‘‘(i) specify a target occupation for

2 the participant;

3 ‘‘(ii) detail the program of activities,

4 including timetables and benchmarks for

5 progress in and completion of each activity,

6 that the participant and the State will en7 gage in to help the participant become em8 ployed in the target occupation;

9 ‘‘(iii) describe the child care, transpor10 tation, and other supportive services to be

11 provided to the family of the participant,

12 including, for each child of the participant,

13 the child care services to be provided to the

14 child or a statement that sets forth the

15 reasons why child care services are not

16 needed for the child; and

17 ‘‘(iv) be signed by the case manager,

18 the participant, and all providers of serv19 ices identified in the plan.

20 ‘‘(B) PROCEDURES FOR PARTICIPANTS

21 WHO FAIL TO DEMONSTRATE BASIC LIT22 ERACY.—

23 ‘‘(i) TESTING FOR LEARNING DISABIL24 ITIES.—The State agency must develop

25 procedures for screening participants who
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1 fail to demonstrate basic literacy for visual

2 or auditory deficits and such other disabil3 ities as the Secretary may specify in regu4 lations.

5 ‘‘(ii) REGULATIONS.—The Secretary,

6 in consultation with the Secretary of Edu7 cation, shall develop appropriate regula8 tions and guidance to ensure that—

9 ‘‘(I) State assessment and reas10 sessment procedures seek to identify

11 potential learning disabilities that

12 could affect the ability of individuals

13 to participate in the program under

14 this part and become self-sufficient;

15 and

16 ‘‘(II) subject to available re17 sources, the State provides such serv18 ices as may be required to address the

19 employment-related needs of partici20 pants with learning disabilities.

21 ‘‘(C) STATUS OF EMPLOYABILITY

22 PLANS.—The employability plan shall not be

23 considered a contract.

24 ‘‘(4) MONITORING OF PARTICIPANT

25 PROGRESS.—
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1 ‘‘(A) IN GENERAL.—Not less frequently

2 than every 4 months after the development of

3 the employability plan, the case manager shall

4 review with the participant and the providers of

5 services under the plan whether the participant

6 is making good and satisfactory progress in the

7 program of activities under the employability

8 plan.

9 ‘‘(B) GOOD AND SATISFACTORY

10 PROGRESS.—The State shall determine what

11 constitutes good and satisfactory progress for

12 purposes of subparagraph (A), except that a

13 participant shall be considered to be making

14 good and satisfactory progress in a program of

15 activities under an employability plan if the

16 participant has met the requirements of the em17 ployability plan in a timely manner.

18 ‘‘(C) EFFECTS OF FAILURE TO MAKE

19 GOOD AND SATISFACTORY PROGRESS.—If the

20 case manager determines that the participant

21 has failed to make good and satisfactory

22 progress in the program of activities under the

23 employability plan, or that another program of

24 activities would more quickly enable the partici25 pant to become self-sufficient, the case manager
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•HR 4318 SC

1 may, in consultation with the participant and

2 the providers of services to the participant, pro3 pose to amend the employability plan and as4 sign the participant to such other program of

5 activities. If the case manager determines that

6 the failure of the participant is due to a failure

7 of a service provider that was caused by cir8 cumstances within the control of the service

9 provider, the case manager shall consider the

10 appropriateness of assigning the participant to

11 another service provider. If the case manager

12 determines that the failure of the participant is

13 due to the refusal of the participant without

14 good cause to comply with the requirements of

15 the program of activities, then section

16 402(a)(19)(G) shall apply.’’.

17 (d) AVAILABILITY OF ENHANCED ON-THE-JOB

18 TRAINING.—Section 482(d) of such Act (42 U.S.C.

19 682(d)) is amended—

20 (1) in paragraph (1)(A)(ii)—

21 (A) by striking ‘‘and’’ at the end of

22 subclause (III);

23 (B) by striking the period at the end of

24 subclause (IV) and inserting ‘‘; and’’; and

25 (C) by adding at the end the following:
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•HR 4318 SC

1 ‘‘(V) enhanced on-the-job training as de2 scribed in paragraph (4).’’; and

3 (2) by adding at the end the following:

4 ‘‘(4)(A) Any State may offer participants in the pro5 gram under this part the opportunity to receive enhanced

6 on-the-job training consisting of employment by an em7 ployer in a productive capacity at a wage that is not less

8 than the entry-level wage of the employer, under the fol9 lowing conditions:

10 ‘‘(i) The employer must set a target job for the

11 participant in the employer’s firm and will, if at12 tained, allow the participant to be self-sufficient.

13 ‘‘(ii) The employer must agree to participate in

14 a training plan for the participant, developed in col15 laboration with, and approved by, the employer, that

16 will qualify the participant for the target job.

17 ‘‘(iii) The employer must agree to provide up to

18 10 hours per week of release time for the participant

19 for training by an approved education provider, ei20 ther on or off the employer’s premises, in basic or

21 vocational skills required by the target job. For pur22 poses of the preceding sentence, the term ‘approved

23 education provider’ means a provider of educational

24 services that the State agency, after consultation
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1 with the State education agency, has approved as

2 qualified to provide enhanced on-the-job training.

3 ‘‘(iv) The employer must agree to hire the par4 ticipant for the target job or an equivalent job when

5 the participant completes the training plan, and to

6 retain the participant in that job for at least 18

7 months, unless—

8 ‘‘(I) the participant is subject to dismissal

9 for cause; or

10 ‘‘(II) the employer suffers business difficul11 ties that require a reduction in the number of

12 employees including the target job.

13 ‘‘(v) The State shall make payments to the em14 ployer in an amount equal to a percentage (pre15 scribed by the Secretary in regulations) of the ex16 penditures of the employer with respect to the par17 ticipant.

18 ‘‘(B) If the employer violates any condition set forth

19 in subparagraph (A) with respect to a participant, the

20 State agency shall not refer other participants to the em21 ployer for participation in enhanced on-the-job training.’’.

22 (e) RESOLUTION OF DISPUTES OVER TARGET OCCU23 PATIONS AND EMPLOYABILITY PLANS.—Section 482(h) of

24 such Act (42 U.S.C. 682(h)) is amended—

25 (1) by inserting ‘‘(1)’’ before ‘‘Each State’’; and
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1 (2) by adding at the end the following:

2 ‘‘(2)(A) The State shall, where practicable,

3 defer to reasonable determinations of the participant

4 in identifying a target occupation or developing an

5 employability plan for the participant.

6 ‘‘(B) If the participant and the case manager

7 do not agree on a target occupation or on a term or

8 condition of a proposed employability plan for the

9 participant, the case manager shall recommend a

10 target occupation or develop an employability plan

11 for the participant, as the case may be.

12 ‘‘(C) Subject to subparagraph (A) of this para13 graph, the recommendations of the case manager

14 under subparagraph (B) of this paragraph with re15 spect to a matter in disagreement shall be binding

16 upon the participant and the State, unless the mat17 ter is otherwise resolved through the procedures es18 tablished under paragraph (1).

19 ‘‘(D) The State shall ensure that the proce20 dures established under paragraph (1) are available

21 to resolve disputes over the matters described in

22 subparagraph (B) of this paragraph, and shall ad23 vise participants of such availability.’’.
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1 (f) RECORDKEEPING.—Section 482 of such Act (42

2 U.S.C. 682) is amended by adding at the end the

3 following:

4 ‘‘(j) RECORDKEEPING.—The State agency must

5 maintain a computerized recordkeeping system approved

6 by the Secretary that contains compatible information

7 about each participant in the program under this part,

8 including basic demographic data, the employability plan

9 and amendments to it, the results of tests and diagnoses,

10 services received, progress toward the goals of the employ11 ability plan, and job placement.’’.

12 (g) LONG-TERM MONITORING.—Section 482 of such

13 Act (42 U.S.C. 682), as amended by subsection (f) of this

14 section, is amended by adding at the end the following:

15 ‘‘(k) LONG-TERM MONITORING.—The State agency

16 must maintain a system for monitoring the employment

17 status, wages, and benefits of each participant in the pro18 gram under this part for at least 18 months after such

19 participation is terminated in order to determine the suc20 cess of the program in facilitating long-term self-suffi21 ciency.’’.

22 SEC. 116. INCREASE IN JOBS PROGRAM FUNDING.

23 Section 403(k)(3) of the Social Security Act (42

24 U.S.C. 603(k)(3)) is amended by striking subparagraphs

25 (E) and (F) and inserting the following:
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•HR 4318 SC

1 ‘‘(E) $1,540,000,000 in the case of the fiscal

2 year 1995,

3 ‘‘(F) $1,980,000,000 in the case of the fiscal

4 year 1996,

5 ‘‘(G) $2,420,000,000 in the case of the fiscal

6 year 1997,

7 ‘‘(H) $2,860,000,000 in the case of the fiscal

8 year 1998, and

9 ‘‘(I) $3,300,000,000 in the case of the fiscal

10 year 1999.’’.

11 SEC. 117. INCREASE IN JOBS MATCHING RATE.

12 (a) IN GENERAL.—Section 403(l)(1)(A) of the Social

13 Security Act (42 U.S.C. 603(l)(1)(A)) is amended—

14 (1) by striking ‘‘and’’ at the end of clause (i);

15 (2) in clause (ii)—

16 (A) by inserting ‘‘but do not exceed the

17 amount equal to 80 percent of the limitation

18 determined under subsection (k)(2) of this sec19 tion with respect to the State for fiscal year

20 1994’’ after ‘‘clause (i)’’; and

21 (B) by striking the period and inserting ‘‘;

22 and’’; and

23 (3) by adding at the end the following:

24 ‘‘(iii) with respect to so much of such expendi25 tures in a fiscal year as exceed 80 percent of the
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1 limitation determined under subsection (k)(2) of this

2 section with respect to the State for fiscal year

3 1994, the lesser of—

4 ‘‘(I) the percentage described in clause (ii)

5 for the type of expenditures involved, increased

6 by 10 percentage points; or

7 ‘‘(II) 90 percent.’’.

8 (b) INCREASE IN CHILD CARE MATCHING RATE.—

9 Section 402(g)(3)(A)(i) of the Social Security Act (42

10 U.S.C. 602(g)(3)(A)(i)) is amended to read as follows:

11 ‘‘(3)(A)(i) In the case of amounts expended for child

12 care pursuant to paragraph (1)(A) by any State to which

13 section 1108 does not apply, the applicable rate for a fiscal

14 year for purposes of section 403(a) shall be—

15 ‘‘(I) with respect to that portion of the total of

16 such expenditures as does not exceed the total of

17 such expenditures by the State for fiscal year 1994,

18 the Federal medical assistance percentage (as de19 fined in section 1905(b)); and

20 ‘‘(II) with respect to the remainder of such ex21 penditures, the lesser of—

22 ‘‘(aa) the percentage described in section

23 403(l)(1)(A)(ii)(II), increased by 10 percentage

24 points; or

25 ‘‘(bb) 90 percent.’’.
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1 SEC. 118. INCREASE IN REQUIRED JOBS PARTICIPATION

2 RATES.

3 (a) IN GENERAL.—Section 403(l)(3)(A) of the Social

4 Security Act (42 U.S.C. 603(l)(3)(A)) is amended—

5 (1) by striking ‘‘and’’ at the end of clause (v);

6 (2) by striking the period at the end of clause

7 (vi) and inserting ‘‘; and’’; and

8 (3) by adding at the end the following:

9 ‘‘(vii) 25 percent, if such year is 1996;

10 ‘‘(viii) 30 percent, if such year is 1997;

11 ‘‘(ix) 35 percent, if such year is 1998; and

12 ‘‘(x) 40 percent, if such year is 1999.’’.

13 (b) SCHEDULE OF PENALTIES FOR FAILURE TO

14 MEET PARTICIPATION RATES.—Section 403(l)(3) of such

15 Act (42 U.S.C. 603(l)(3)) is amended—

16 (1) in subparagraph (A), by inserting ‘‘, with17 out good cause,’’ before ‘‘the State’s’’; and

18 (2) by amending subparagraph (E) to read as

19 follows:

20 ‘‘(E) The Secretary shall, by regulation, prescribe a

21 schedule of penalties to be applied to a State that fails

22 to comply with subparagraph (A), the severity of which

23 shall be based on the extent of the noncompliance.’’.

24 (c) CONFORMING AMENDMENTS.—Section 204(b)(2)

25 of the Family Support Act of 1988 (42 U.S.C. 681 note)

26 is amended—
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1 (1) by inserting ‘‘, and amended by section

2 118(a) of the Working Off Welfare Act of 1994’’

3 after ‘‘this Act’’; and

4 (2) by striking ‘‘1995’’ and inserting ‘‘1999’’.

5 SEC. 119. SIMPLIFICATION OF REPORTING REQUIREMENTS.

6 Section 402(a) of such Act (42 U.S.C. 602(a)), as

7 amended by sections 101(a), 103, and 108(b) of this Act,

8 is amended—

9 (1) in paragraph (47), by striking ‘‘and’’ after

10 the semicolon;

11 (2) in paragraph (48), by striking the period

12 and inserting ‘‘; and’’; and

13 (3) by inserting after paragraph (48) the fol14 lowing:

15 ‘‘(49) provide that the State—

16 ‘‘(A) may not require a family to report

17 changes in family income until the net amount

18 of such changes, since the most recent such re19 port, equals or exceeds the reporting threshold;

20 ‘‘(B) shall establish the reporting threshold

21 for purposes of subparagraph (A) at an amount

22 which shall be not less than $25 and not more

23 than $100; and

24 ‘‘(C) may not impose a penalty on a family

25 by reason of any failure to report any change
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1 in income that the State, pursuant to subpara2 graph (A), may not require to be reported.’’.

3 SEC. 120. STATE CASEWORKER TRAINING PROGRAMS.

4 Section 402(a) of such Act (42 U.S.C. 602(a)), as

5 amended by sections 101(a), 103, 108(b), and 119 of this

6 Act, is amended—

7 (1) in paragraph (48), by striking ‘‘and’’ after

8 the semicolon;

9 (2) in paragraph (49), by striking the period

10 and inserting ‘‘; and’’; and

11 (3) by inserting after paragraph (49) the fol12 lowing:

13 ‘‘(50) provide that the State agency shall design

14 and implement a program for the training of case15 workers who provide services under the State plan,

16 under which priority is to be given to training indi17 viduals who are caseworkers at the time the program

18 commences, and under which caseworkers should be

19 trained to advise recipients of aid under the State

20 plan of training opportunities in industries that uti21 lize new technologies, or in environmental engineer22 ing, environmental cleanup, advanced telecommuni23 cations, transportation, infrastructure, or computers,

24 employment for wages sufficient to meet or exceed

25 the State’s standard of need, and employment in
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1 fields in which women constitute less than 25 per2 cent of the workforce.’’.

3 SEC. 121. USE OF JOBS FUNDS FOR CERTAIN OTHER PUR4 POSES.

5 (a) IN GENERAL.—Section 403(l)(1) of the Social Se6 curity Act (42 U.S.C. 603(l)(1)) is amended by adding

7 at the end the following:

8 ‘‘(C) Expenditures by a State for any of the following

9 shall be considered an expense of operating the program

10 of the State under part F:

11 ‘‘(i) The outstationing of caseworkers at com12 munity colleges for the purpose of enhancing access

13 of recipients of aid to families with dependent chil14 dren to higher education, and the use of such case15 workers to provide linkage between postsecondary

16 educational institutions and the private and public

17 sectors, including private industry councils, cham18 bers of commerce, and unions.

19 ‘‘(ii) The entering into of contracts with public

20 or private entities for the creation of apprenticeship

21 programs which address the work and training needs

22 of recipients of aid to families with dependent chil23 dren (including the expansion of programs by creat24 ing additional apprenticeship slots with specific sup25 port for such recipients) and under which appren-
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1 tices will be targeted for jobs in industries that uti2 lize new technologies, in environmental engineering,

3 environmental cleanup, advanced telecommuni4 cations, transportation, infrastructure, or computers,

5 for jobs that pay wages sufficient to meet or exceed

6 the State’s standard of need, and for jobs in fields

7 in which women constitute less than 25 percent of

8 the workforce.

9 ‘‘(iii) The identification of recipients of aid to

10 families with dependent children and secondary

11 school students whose parents are recipients of such

12 aid, the provision to such recipients and such stu13 dents of information about opportunities in, and the

14 availability of, programs under the Job Training

15 Partnership Act, the School-to-Work Opportunities

16 Act of 1993, or the Carl D. Perkins Vocational and

17 Applied Technology Education Act in their area, and

18 the facilitation of the preparation of such recipients

19 and such students for such programs.

20 ‘‘(iv) The non-Federal share of the compensa21 tion of students employed in the work-study pro22 gram under part C of title IV of the Higher Edu23 cation Act of 1965, and the establishment and im24 plementation of programs similar to the work-study
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1 program for recipients of aid to families with de2 pendent children.

3 ‘‘(v) The coordination of the program of the

4 State under part F with State and local programs

5 under the School-to-Work Opportunities Act of 1993

6 in order to provide enhanced opportunities for recipi7 ents of aid to families with dependent children to

8 take advantage of such State and local programs.

9 ‘‘(vi) The implementation of programs to reduce

10 pregnancy rates and increase graduation rates at

11 schools for which the combined pregnancy and drop12 out rate is at least 30 percent, under which partici13 pation is required during every month of the year,

14 and under which caseworkers and program adminis15 trators work with schools and community health or16 ganizations in integrating the program with—

17 ‘‘(I) programs under the School-to-Work

18 Opportunities Act of 1993;

19 ‘‘(II) programs under parts B and C of

20 title II of the Job Training Partnership Act;

21 ‘‘(III) programs under the Carl D. Perkins

22 Vocational and Applied Technology Education

23 Act;

24 ‘‘(IV) school-based recreational programs;

25 ‘‘(V) before- and after-school programs;
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1 ‘‘(VI) programs for the discussion of self2 esteem, parenting responsibilities, prenatal care

3 and nutrition, and child support responsibilities;

4 and

5 ‘‘(VII) counseling.

6 ‘‘(vii) The provision of stabilizing services to en7 able parents who have not attained 20 years of age

8 to participate in the integrated program described in

9 clause (vi).’’.

10 (b) ANNUAL REPORTS ON STATE EFFORTS TO FIND

11 EMPLOYMENT FOR WOMEN.—Section 402(a) of such Act

12 (42 U.S.C. 602(a)), as amended by sections 101(a), 103,

13 108(b), 119, and 120 of this Act, is amended—

14 (1) in paragraph (49), by striking ‘‘and’’ after

15 the semicolon;

16 (2) in paragraph (50), by striking the period

17 and inserting ‘‘; and’’; and

18 (3) by inserting after paragraph (50) the

19 following:

20 ‘‘(51) provide that, not later than December 31

21 of each year, the State shall submit to the Secretary

22 a report that details the efforts made by the State

23 to place women in fields in which women constitute

24 less than 25 percent of the workforce, the manner

25 in which the State determines which jobs to train
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1 women for, and the percentages of men and women

2 that are placed in jobs.’’.

3 (c) USE OF WAGE RECORD DATA ON PARTICIPANTS

4 IN THE JOBS PROGRAM.—Section 482(a)(1) of such Act

5 (42 U.S.C. 682(a)(1)) is amended by redesignating sub6 paragraphs (C) and (D) as subparagraphs (D) and (E),

7 respectively, and by inserting after subparagraph (B) the

8 following:

9 ‘‘(C) A State plan under this part must provide

10 that—

11 ‘‘(i) the State agency must enter into an agree12 ment with the State agency responsible for admin13 istering the State unemployment compensation pro14 gram, which provides for the ongoing provision of

15 wage record data (with appropriate assurances to

16 protect confidentiality) on participants in the State

17 program operated under this part;

18 ‘‘(ii) the State must use such wage record data,

19 in accordance with regulations prescribed by the

20 Secretary and the Secretary of Labor, to measure

21 outcomes of the components of the program, out22 comes for providers of services under the program,

23 and the extent to which participants in the program

24 become self-sufficient after such participation;
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1 ‘‘(iii) the State must use such wage record data

2 to report to the Secretary, pursuant to a schedule

3 prescribed by the Secretary, the average wages of

4 men who entered employment after participation in

5 the program, the average wages of women who en6 tered employment after participation in the program;

7 and

8 ‘‘(iv) the State must submit to the Secretary a

9 report that describes the measures that the State

10 has undertaken, since the most recent review and

11 update of the State plan, to reduce any difference

12 between the average wages of such men and the av13 erage wages of such women.’’.

14 SEC. 122. CASE MANAGEMENT.

15 (a) ELIMINATION OF REGULATIONS THAT IMPOSE

16 OBSTACLES TO THE USE OF A CASE MANAGEMENT SYS17 TEM.—Not later than the effective date of this title, the

18 Secretary of Health and Human Services shall amend the

19 regulations prescribed under parts A and F of title IV of

20 the Social Security Act so as to remove any obstacle to

21 the implementation by the States of case management sys22 tems in the program of aid to families with dependent

23 children.

24 (b) FEDERAL PROVISION OF CASE MANAGEMENT

25 SERVICES.—The Office of Adolescent Pregnancy Preven-
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1 tion in the Department of Health and Human Services

2 may provide referral to appropriate programs and services

3 for parents who have not attained 20 years of age and

4 are not recipients of aid to families with dependent chil5 dren under a State plan approved under part A of title

6 IV of the Social Security Act.

7 (c) EFFECTIVE DATE.—This section shall take effect

8 on the date of the enactment of this Act.

9 SEC. 123. CHILD CARE BENEFITS.

10 (a) EXPANSION OF ELIGIBILITY; NOTICE OF ELIGI11 BILITY.—Section 402(g)(1)(A) of the Social Security Act

12 (42 U.S.C. 602(g)(1)(A)) is amended—

13 (1) in clause (ii)—

14 (A) by inserting ‘‘(I)’’ before ‘‘Each’’;

15 (B) by striking all that follows ‘‘children’’

16 and inserting ‘‘and the caretaker relative in the

17 family is working’’; and

18 (C) by adding after and below the end the

19 following:

20 ‘‘(II) Each State agency shall assess the eligibility for

21 child care under this clause of each family who ceases to

22 receive aid to families with dependent children, without

23 regard to whether the family has applied for such care,

24 and in the notice of termination of such aid, shall notify

25 the family, in writing and orally, as appropriate, of its
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1 right to child care under this clause, and include informa2 tion on the steps necessary to obtain such care and on

3 the rights and responsibilities of the family with respect

4 to the provision of such care.’’; and

5 (2) in clause (iii), by striking all that follows

6 ‘‘clause (ii)’’ and inserting ‘‘until the family’s

7 monthly income exceeds 185 percent of the income

8 official poverty line (as defined by the Office of Man9 agement and Budget, and revised annually in ac10 cordance with section 673(2) of the Omnibus Budget

11 Reconciliation Act of 1981) for a family of the same

12 size as the family.’’.

13 (b) ADVANCE PAYMENTS.—Section 402(g)(1)(B) of

14 such Act (42 U.S.C. 602(g)(1)(B)) is amended—

15 (1) by inserting ‘‘(i)’’ after ‘‘(B)’’;

16 (2) by redesignating clauses (i) through (v) as

17 subclauses (I) through (V), respectively; and

18 (3) by striking the 2nd sentence and inserting

19 the following:

20 ‘‘(ii) When the State agency arranges for child care,

21 the agency shall take into account the individual needs of

22 the child.

23 ‘‘(iii) The State agency shall make advance payments

24 for child care assistance to a family eligible for such care

25 if—
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1 ‘‘(I) an advance is required in order for the

2 family to secure or retain such care;

3 ‘‘(II) the provider of such care will not provide

4 such care without payment in advance; or

5 ‘‘(III) there will be a delay in reimbursing the

6 caretaker relative in the family for the cost of such

7 care or in applying subsection (a)(8)(A)(iii) to the

8 family.’’.

9 (c) STATE OPTION TO EXEMPT FAMILIES BELOW

10 POVERTY LEVEL FROM CONTRIBUTION REQUIREMENT.—

11 Section 402(g)(1)(A)(vii) of such Act (42 U.S.C.

12 602(g)(1)(A)(vii)) is amended—

13 (1) by inserting ‘‘(I)’’ after ‘‘(vii)’’; and

14 (2) by adding after and below the end the fol15 lowing:

16 ‘‘(II) The State may elect not to apply subclause (I)

17 to any family whose income does not exceed the income

18 official poverty line (as defined by the Office of Manage19 ment and Budget, and revised annually in accordance with

20 section 673(2) of the Omnibus Budget Reconciliation Act

21 of 1981) for a family of the same size as the family.’’.

22 (d) CHILD CARE FOR FAMILIES INCLUDING A CARE23 TAKER RELATIVE NOT RECEIVING AFDC.—Section

24 402(g)(1)(A) of such Act (42 U.S.C. 602(g)(1)(A)) is

25 amended by adding at the end the following:
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1 ‘‘(viii) In any case in which child care is determined

2 to be necessary for the caretaker relative of a child receiv3 ing aid to families with dependent children to accept or

4 retain employment, the State shall guarantee child care

5 whether or not the caretaker relative is receiving such aid,

6 and if the caretaker relative is not receiving such aid, the

7 State may apply a sliding fee scale to determine the appro8 priate contribution (if any) to the cost of care to be paid

9 by the caretaker.’’.

10 (e) AUTHORITY TO PROVIDE FOR CONTINUITY OF

11 CHILD CARE.—Section 402(g)(1)(A) of such Act (42

12 U.S.C. 602(g)(1)(A)), as amended by subsection (d) of

13 this section, is amended by adding at the end the follow14 ing:

15 ‘‘(ix) A State may continue child care assistance with16 out interruption during breaks between otherwise allow17 able activities, and for a reasonable period of time after

18 any loss of employment, to ensure continuity of child care

19 arrangements for the child or children of a family eligible

20 to receive care under this paragraph.’’.

21 (f) DEPENDENT CARE DISREGARD NOT TO BE RE22 GARDED AS A METHOD OF GUARANTEEING CHILD

23 CARE.—Section 402(g)(1)(B) of such Act (42 U.S.C.

24 602(g)(1)(B)), as amended by subsection (b) of this sec25 tion, is amended by adding at the end the following:
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1 ‘‘(iv) Compliance with subsection (a)(8)(A)(iii) with

2 respect to a family shall not be construed to be a guaran3 tee of child care for the family pursuant to this sub4 section.’’.

5 SEC. 124. EXTENSION OF TRANSITIONAL CHILD CARE AND

6 MEDICAID BENEFITS.

7 (a) TRANSITIONAL CHILD CARE BENEFITS.—Section

8 304(b) of the Family Support Act of 1988 (42 U.S.C. 602

9 note) is amended—

10 (1) by striking ‘‘(1)’’; and

11 (2) by striking paragraph (2).

12 (b) TRANSITIONAL MEDICAID BENEFITS.—Section

13 303(f)(2) of such Act (42 U.S.C. 602 note) is amended—

14 (1) by striking ‘‘(A)’’; and

15 (2) by striking subparagraphs (B) and (C).

16 SEC. 125. TREATMENT OF CERTAIN SERVICES FOR PUR17 POSES OF CONTRACT AUTHORITY.

18 Section 485(b) of the Social Security Act (42 U.S.C.

19 685(b)) is amended by adding at the end the following:

20 ‘‘A service shall not be considered to be otherwise available

21 on a nonreimbursable basis if the service is not appro22 priate to meet the identified needs of the participant to

23 whom the service is to be provided.’’.
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1 Subtitle B—Earned Income Tax

2 Credit

3 SEC. 131. RECOMMENDATIONS FOR QUARTERLY PAYMENTS

4 OF EARNED INCOME CREDIT.

5 Within 6 months after the date of the enactment of

6 this Act, the Secretary of the Treasury shall submit to

7 the Congress recommendations for procedures under

8 which the Federal Government could, not less frequently

9 than quarterly, make advance payments of the earned in10 come credit under section 32 of the Internal Revenue Code

11 of 1986.

12 Subtitle C—Microenterprise and

13 Small Business Development

14 SEC. 141. DISREGARD OF INCOME AND RESOURCES DES15 IGNATED FOR EDUCATION, TRAINING, AND

16 EMPLOYABILITY.

17 (a) DISREGARD FROM RESOURCES.—Section

18 402(a)(7)(B) of the Social Security Act (42 U.S.C.

19 602(a)(7)(B)) is amended—

20 (1) by striking ‘‘or’’ before ‘‘(iv)’’; and

21 (2) by inserting ‘‘, or (v) at the option of the

22 State, in the case of a family receiving aid under the

23 State plan (and a family not receiving such aid but

24 which received such aid in at least 1 of the preced25 ing 4 months or became ineligible for such aid dur-
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1 ing the preceding 12 months because of excessive

2 earnings), any amount not to exceed $8,000 in a

3 qualified asset account (as defined in section 406(i))

4 of such family’’ before ‘‘; and’’.

5 (b) DISREGARD FROM INCOME.—

6 (1) IN GENERAL.—Section 402(a)(8)(A) of such

7 Act (42 U.S.C. 602(a)(8)(A)) is amended—

8 (A) by striking ‘‘and’’ at the end of clause

9 (vii); and

10 (B) by inserting after clause (viii) the fol11 lowing new clause:

12 ‘‘(ix) shall disregard any interest or income

13 earned on a qualified asset account (as defined

14 in section 406(i)); and’’.

15 (2) NONRECURRING LUMP SUM EXEMPT FROM

16 LUMP SUM RULE.—Section 402(a)(17) of such Act

17 (42 U.S.C. 602(a)(17)) is amended by adding at the

18 end the following: ‘‘; and that this paragraph shall

19 not apply to earned or unearned income received in

20 a month on a nonrecurring basis to the extent that

21 such income is placed in a qualified asset account

22 (as defined in section 406(i)) the total amounts in

23 which, after such placement, does not exceed

24 $8,000;’’.
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1 (3) TREATMENT AS INCOME.—Section

2 402(a)(7) of such Act (42 U.S.C. 602(a)(7)) is

3 amended—

4 (A) by striking ‘‘and’’ at the end of sub5 paragraph (B);

6 (B) by striking the semicolon at the end of

7 subparagraph (C) and inserting ‘‘; and’’; and

8 (C) by adding at the end the following new

9 subparagraph:

10 ‘‘(D) shall treat as income any distribu11 tions from a qualified asset account (as defined

12 in section 406(i)(1)) which do not meet the def13 inition of a qualified distribution under section

14 406(i)(2);’’.

15 (c) QUALIFIED ASSET ACCOUNTS.—Section 406 of

16 such Act (42 U.S.C. 606) is amended by adding at the

17 end the following:

18 ‘‘(i)(1) The term ‘qualified asset account’ means a

19 mechanism approved by the State (such as individual re20 tirement accounts, escrow accounts, or savings bonds) that

21 allows savings of a family receiving aid to families with

22 dependent children to be used for qualified distributions.

23 ‘‘(2) The term ‘qualified distributions’ means dis24 tributions for expenses directly related to one or more of

25 the following purposes:
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1 ‘‘(A) The attendance of a member of the family

2 at any education or training program.

3 ‘‘(B) The improvement of the employability (in4 cluding self-employment) of a member of the family

5 (such as through the purchase of an automobile).

6 ‘‘(C) The purchase of a home for the family.

7 ‘‘(D) A change of the family residence.’’.

8 (d) STUDY OF USE OF QUALIFIED ASSET ACCOUNTS;

9 REPORT.—The Secretary of Health and Human Services

10 shall conduct a study of the use of qualified asset accounts

11 established pursuant to the amendments made by this sec12 tion, and shall report on such study and any recommenda13 tions for modifications of such amendments to the Com14 mittee on Finance of the Senate and the Committee on

15 Ways and Means of the House of Representatives not later

16 than January 1, 1996.

17 (e) REPORT ON AFDC ASSET LIMIT ON AUTO18 MOBILES.—Within 3 months after the date of the enact19 ment of this Act, the Secretary of Health and Human

20 Services shall submit to the Congress a report on—

21 (1) the need to revise the limitation, established

22 in regulations pursuant to section 402(a)(7)(B)(i) of

23 the Social Security Act, on the value of a family

24 automobile required to be disregarded by a State in

25 determining the eligibility of the family for aid to
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1 families with dependent children under the State

2 plan approved under part A of title IV of such Act;

3 and

4 (2) the extent to which such a revision would

5 increase the employability of recipients of such aid.

6 SEC. 142. DISREGARD OF INCOME AND RESOURCES RELAT7 ED TO SELF-EMPLOYMENT.

8 (a) STATE PLAN REQUIREMENTS.—Section 402(a)

9 of the Social Security Act (42 U.S.C. 602(a)), as amended

10 by sections 101(a), 103, 108(b), 119, 120, and 121(b) of

11 this Act, is amended—

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

13 (50);

14 (2) by striking the period at the end of para15 graph (51) and inserting ‘‘; and’’; and

16 (3) by inserting after paragraph (51) the

17 following:

18 ‘‘(52) at the option of the State, provide that

19 the State agency—

20 ‘‘(A)(i) shall not include as a resource of

21 the family of which a child referred to in para22 graph (7)(A) is a member, for purposes of

23 paragraph (7)(B), the first $10,000 of the net

24 worth (assets reduced by liabilities with respect

25 thereto) of all microenterprises (as defined in
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1 section 406(j)(1)) owned, in whole or in part,

2 by the child or by a relative or other individual

3 referred to in paragraph (7)(A), for a period

4 not to exceed 2 years; and

5 ‘‘(ii) shall take into consideration as

6 earned income of the family of which the child

7 is a member, only the net profits (as defined in

8 section 406(j)(2)) of such microenterprises, for

9 a period not to exceed 2 years; and

10 ‘‘(B) shall ensure that caseworkers are

11 able to properly advise recipients of aid under

12 the State plan of the option of microenterprise

13 as a legitimate route towards self-sufficiency,

14 and that caseworkers encourage recipients of

15 such aid who are interested in starting a

16 microenterprise to participate in a program de17 signed to assist them in such effort.’’.

18 (b) DEFINITIONS.—Section 406 of such Act (42

19 U.S.C. 606), as amended by section 141(c) of this Act,

20 is amended by adding at the end the following:

21 ‘‘(j)(1) The term ‘microenterprise’ means a commer22 cial enterprise which has 5 or fewer employees, 1 or more

23 of whom owns the enterprise.
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1 ‘‘(2) The term ‘net profits’ means, with respect to

2 a microenterprise, the gross receipts of the business,

3 minus—

4 ‘‘(A) payments of principal or interest on a loan

5 to the microenterprise;

6 ‘‘(B) transportation expenses;

7 ‘‘(C) inventory costs;

8 ‘‘(D) expenditures to purchase capital equip9 ment;

10 ‘‘(E) cash retained by the microenterprise for

11 future use by the business;

12 ‘‘(F) taxes paid by reason of the business;

13 ‘‘(G) if the business is covered under a policy

14 of insurance against loss—

15 ‘‘(i) the premiums paid for such insurance;

16 and

17 ‘‘(ii) the losses incurred by the business

18 that are not reimbursed by the insurer solely by

19 reason of the existence of a deductible with re20 spect to the insurance policy;

21 ‘‘(H) the reasonable costs of obtaining 1 motor

22 vehicle necessary for the conduct of the business;

23 and

24 ‘‘(I) the other expenses of the business.’’.
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1 (c) INCLUSION OF MICROENTERPRISE TRAINING AND

2 ACTIVITIES IN THE JOBS PROGRAM.—

3 (1) IN GENERAL.—Section 482(d)(1) of such

4 Act (42 U.S.C. 682(d)(1)) is amended by adding at

5 the end the following:

6 ‘‘(C) The services and activities referred to in sub7 paragraph (A)—

8 ‘‘(i) in the case that at least 3 percent of the

9 adult recipients of aid under the State plan approved

10 under part A (as of the close of the immediately pre11 ceding fiscal year) elect to participate in

12 microenterprise activities, shall include programs de13 scribed in paragraph (5); or

14 ‘‘(ii) in the case that not more than 3 percent

15 of the adult recipients of such aid elect to partici16 pate in microenterprise activities, may include pro17 grams described in paragraph (5).’’.

18 (2) MICROENTERPRISE PROGRAMS.—Section

19 482(d) of such Act (42 U.S.C. 682(d)), as amended

20 by section 115(d)(2) of this Act, is amended by add21 ing at the end the following:

22 ‘‘(5) The programs described in this paragraph are

23 programs of public and private organizations, agencies,

24 and other entities (including nonprofit and for-profit enti-
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1 ties) to enable such entities to facilitate economic develop2 ment by—

3 ‘‘(A) providing technical assistance, advice, and

4 business support services (including assistance, ad5 vice, and support relating to business planning, fi6 nancing, marketing, and other microenterprise devel7 opment activities) to owners of microenterprises and

8 persons developing microenterprises; and

9 ‘‘(B) providing general support (such as peer

10 support and self-esteem programs) to owners of

11 microenterprises and persons developing

12 microenterprises.’’.

13 Subtitle D—Effective Date

14 SEC. 151. EFFECTIVE DATE.

15 (a) IN GENERAL.—This title and the amendments

16 made by this title shall take effect on October 1, 1995,

17 and shall apply to payments under part A of title IV, and

18 title XIX, of the Social Security Act for quarters begin19 ning on or after such date.

20 (b) EARLY APPLICABILITY AT STATE OPTION.—

21 (1) ELECTION.—Any State may elect for this

22 title and the amendments made by this title to apply

23 to the State for quarters beginning before the end

24 of the date specified in subsection (a).
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1 (2) EARLY APPLICABILITY.—This title and the

2 amendments made by this title shall apply to pay3 ments to a State under part A of title IV, and title

4 XIX, of the Social Security Act for quarters begin5 ning after the Secretary of Health and Human Serv6 ices receives from the State a notice that the State

7 has made the election described in paragraph (1).

8 TITLE II—FEDERAL JOB

9 TRAINING PROGRAM REFORMS

10 Subtitle A—Studies and Reports

11 SEC. 201. DEPARTMENTS OF EDUCATION, HEALTH AND

12 HUMAN SERVICES, AND LABOR STUDIES AND

13 REPORTS.

14 (a) STUDIES.—The Secretary of Education, the Sec15 retary of Health and Human Services, and the Secretary

16 of Labor shall each conduct a study to review the effective17 ness of the Federal job training programs under the juris18 dictions of each such Secretary, respectively, including—

19 (1) the extent to which such programs are suc20 cessful at placing both male and female participants

21 into unsubsidized employment; and

22 (2) the average starting wages and benefits of

23 such participants in such employment.

24 (b) REPORTS.—Not later than 1 year after the date

25 of the enactment of this Act, each Secretary specified in
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1 subsection (a) shall submit to the Congress a report con2 taining—

3 (1) the results of the study carried out by each

4 such Secretary under subsection (a), respectively;

5 and

6 (2) recommendations for legislation to increase

7 the effectiveness of the Federal job training pro8 grams under the jurisdiction of each such Secretary,

9 respectively, including recommendations—

10 (A) to change or eliminate provisions of

11 law or regulations that restrict or prohibit indi12 viduals with low incomes and their families

13 from receiving services under such programs;

14 and

15 (B) to eliminate discrepancies in wages

16 and benefits based on gender.

17 SEC. 202. GENERAL ACCOUNTING OFFICE STUDY AND

18 REPORT.

19 (a) STUDY.—

20 (1) IN GENERAL.—The Comptroller General of

21 the United States shall conduct a study to review

22 the effectiveness of the Federal job training pro23 grams under the jurisdictions of the Secretary of

24 Education, the Secretary of Health and Human

25 Services, and the Secretary of Labor, including the
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1 extent to which such programs are successful at

2 placing both male and female participants into

3 unsubsidized employment at wages which are not

4 less than 130 percent of the income official poverty

5 line (as defined by the Office of Management and

6 Budget, and revised annually in accordance with sec7 tion 673(2) of the Omnibus Budget Reconciliation

8 Act of 1981), applicable to a family of the size

9 involved.

10 (2) CONDUCT OF STUDY.—In carrying out the

11 study under paragraph (1), the Comptroller General

12 of the United States shall—

13 (A) identify the various categories of indi14 viduals that such programs are intended to

15 serve and determine the extent to which such

16 categories of individuals are actually being

17 served under such programs; and

18 (B) identify any outcome measures cur19 rently used by the Department of Education,

20 the Department of Health and Human Services,

21 and the Department of Labor in the Federal

22 job training programs under the jurisdictions of

23 such Departments.

24 (b) REPORT.—Not later than 1 year after the date

25 of the enactment of this Act, the Comptroller General of
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1 the United States shall submit to the Congress a report

2 containing the results of the study carried out under sub3 section (a).

4 Subtitle B—Economic Self-Suffi5 ciency Standards for Federal

6 Job Training Programs

7 SEC. 211. ESTABLISHMENT OF STANDARDS.

8 (a) IN GENERAL.—Not later than 1 year after the

9 date of the enactment of this Act, the Secretary of Edu10 cation, the Secretary of Health and Human Services, and

11 the Secretary of Labor shall, in accordance with either the

12 formula under section 212 or the formula under section

13 213, jointly develop and publish in the Federal Register

14 proposed standards that measure the minimum amount of

15 wages and employment benefits that a participant enrolled

16 in a Federal job training program under the jurisdiction

17 of each such Secretary, respectively, should receive after

18 termination from such program to ensure the long-term

19 economic self-sufficiency of such participant.

20 (b) PUBLIC REVIEW AND COMMENT.—Each Sec21 retary specified in subsection (a) shall provide for public

22 review and comment of the proposed standards developed

23 by each such Secretary, respectively, not later than the

24 60-day period beginning on the date such standards are

25 published in the Federal Register.
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1 (c) FINAL STANDARDS.—Not later than 4 months

2 after the end of the 60-day period described in subsection

3 (b), each Secretary specified in subsection (a) shall develop

4 and publish in the Federal Register final standards.

5 SEC. 212. POVERTY LINE AND REGIONAL HOUSING BASED

6 FORMULA.

7 A Secretary who elects to develop proposed standards

8 in accordance with this section shall make significant

9 progress toward ensuring that each participant enrolled

10 in a Federal job training program receives services under

11 such program so that upon termination from such pro12 gram such participant receives, or is a member of a family

13 which receives, a total income which is not less than the

14 sum of—

15 (1) 130 percent of the income official poverty

16 line (as defined by the Office of Management and

17 Budget, and revised annually in accordance with sec18 tion 673(2) of the Omnibus Budget Reconciliation

19 Act of 1981) applicable to a family of the size in20 volved; and

21 (2) the amount (if any) by which the regional

22 housing costs for a family residing in the State (as

23 determined by the Secretary of Housing and Urban

24 Development) exceed the national average housing

25 costs for a family (as so determined).
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1 SEC. 213. FAMILY, HOUSING, AND RELATED FACTORS

2 BASED FORMULA.

3 A Secretary who elects to develop proposed standards

4 in accordance with this section shall ensure that each par5 ticipant enrolled in a Federal job training program re6 ceives services under such program so that upon termi7 nation from such program such participant receives, or is

8 a member of a family which receives, an appropriate total

9 income which takes into account the following factors:

10 (1) The participant’s family size and composi11 tion, including the number and age of dependent

12 adults and children.

13 (2) 100 percent of the average housing costs,

14 which shall be based on the fair market rental in ef15 fect for the market area in which the participant re16 sides, as established by the Secretary of Housing

17 and Urban Development pursuant to section 8(c) of

18 the United States Housing Act of 1937.

19 (3) 100 percent of the average child care costs

20 (differentiated by the age of each child), which may

21 be based on the actual cost of such care established

22 under section 402(g)(1)(C)(i)(I) the Social Security

23 Act or the applicable local market rate established

24 under clause (ii) of such section.
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1 (4) 100 percent of the average adult dependent

2 care costs, which may be based on local surveys or

3 the local average of such costs.

4 (5) 100 percent of the average health care

5 costs, which shall include costs incurred for full fam6 ily health care coverage (including premiums,

7 deductibles, and copayments), and which may be

8 based on local surveys or the local average of such

9 costs.

10 (6) 100 percent of the average transportation

11 costs, which may be based on local surveys or the

12 local average of such costs.

13 (7) 100 percent of the food costs, which shall

be equal to 1 14 ⁄3 of the official poverty line (as defined

15 by the Office of Management and Budget, and re16 vised annually in accordance with section 673(2) of

17 the Omnibus Budget Reconciliation Act of 1981 (42

18 U.S.C. 9902(2)).

19 (8) 100 percent of the average work-related

20 costs, which shall include the cost of uniforms, tools,

21 and other appropriate work-related costs.

22 SEC. 214. ECONOMIC SELF-SUFFICIENCY DEFINED.

23 For purposes of this subtitle, the term ‘‘economic

24 self-sufficiency’’ means the ability of an individual to meet
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1 the following basic needs for the individual and such indi2 vidual’s family:

3 (1) Housing.

4 (2) Child care.

5 (3) Adult dependent care.

6 (4) Food.

7 (5) Transportation.

8 (6) Health care.

9 (7) Work-related expenses.

10 Subtitle C—Effective Date

11 SEC. 221. EFFECTIVE DATE.

12 This title shall take effect on October 1, 1995.

13 TITLE III—CHILD SUPPORT

14 ENFORCEMENT

15 SEC. 301. NATIONAL CHILD SUPPORT ORDER REGISTRY.

16 (a) ESTABLISHMENT.—

17 (1) IN GENERAL.—The Secretary of the Treas18 ury shall establish in the Internal Revenue Service

19 a national registry of all child support orders.

20 (2) CHILD SUPPORT ORDER DEFINED.—As

21 used in this section, the term ‘‘child support order’’

22 means an order, issued or modified by a State court

23 or an administrative process established under State

24 law, that requires an individual to make payments
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1 for support and maintenance of a child or of a child

2 and the parent with whom the child is living.

3 (b) TRANSMISSION OF COPIES OF CHILD SUPPORT

4 ORDERS TO THE NATIONAL REGISTRY.—Section 466(a)

5 of the Social Security Act (42 U.S.C. 666(a)) is amended

6 by inserting after paragraph (11) the following:

7 ‘‘(12) Procedures to ensure that—

8 ‘‘(A) each child support order issued or

9 modified in the State contains the social secu10 rity account number of each parent with rights

11 or obligations under the order;

12 ‘‘(B) within 5 days after the issuance or

13 modification of a child support order in the

14 State, a copy of the order is transmitted to the

15 national child support order registry established

16 under section 301(a) of the Working Off Wel17 fare Act of 1994;

18 ‘‘(C) within 2 years after the date of the

19 enactment of this paragraph, a copy of each

20 child support order being enforced by the State

21 pursuant to this part which has not been trans22 mitted pursuant to subparagraph (B) is trans23 mitted to the national child support order

24 registry;
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1 ‘‘(D) within 5 years after the date of the

2 enactment of this paragraph, a copy of each

3 child support issued or modified in the State

4 which has not been transmitted pursuant to

5 subparagraph (B) or (C) and which a party to

6 the order has requested be sent to the national

7 child support order registry be transmitted to

8 the registry; and

9 ‘‘(E) with each order transmitted pursuant

10 to subparagraph (B), (C), or (D)—

11 ‘‘(i) a notice is included as to the date

12 the order is required or scheduled to be re13 viewed by a court or an administrative

14 process established under State law; and

15 ‘‘(ii) a certified statement of arrears

16 (if any) owed under the order is included

17 if a party to the order is receiving services

18 under the State plan.’’.

19 (c) MAINTENANCE OF ABSTRACTS OF CHILD SUP20 PORT ORDERS.—The national registry shall maintain an

21 abstract of each child support order, which shall contain

22 the following information:

23 (1) The names, addresses, and social security

24 account numbers of each individual with rights or

25 obligations under the order, to the extent that the
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1 authority that issued the order has not prohibited

2 the release of such information.

3 (2) The name and date of birth of any child

4 with respect to whom payments are to be made

5 under the order.

6 (3) The dollar amount of child support required

7 to be paid on a monthly basis under the order.

8 (4) The date the order was issued or most re9 cently modified, and each date the order is required

10 or scheduled to be reviewed by a court or an admin11 istrative process established under State law.

12 (5) Any orders superseded by the order.

13 (6) Such other information as the Secretary of

14 the Treasury, in consultation with the Secretary of

15 Health and Human Services, shall, by regulation

16 require.

17 (d) PROVISION OF CHILD SUPPORT INFORMATION TO

18 EMPLOYERS.—Upon receipt from an employer of a W–

19 4 form completed pursuant to section 302(b) of this Act

20 by an employee of the employer, the national registry shall

21 report to the employer such information as the national

22 registry may have as to—

23 (1) whether the employee has a legal obligation

24 to provide child support (as defined in section

25 462(b) of the Social Security Act) which is to be col-
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1 lected, in whole or in part, through wage withholding

2 pursuant to an order issued by a State court or an

3 order of an administrative process established under

4 State law; and

5 (2) the aggregate amount of all such obliga6 tions.

7 SEC. 302. MODIFICATION OF W–4 REPORTING REQUIRE8 MENTS TO PROVIDE FOR REPORTING OF

9 CHILD SUPPORT OBLIGATIONS OF EMPLOY10 EES.

11 (a) ESTABLISHMENT OF REPORTING SYSTEM.—The

12 Secretary of the Treasury, in consultation with the Sec13 retary of Labor, shall establish a system for the reporting

14 of information relating to child support obligations of em15 ployees that meets the requirements of this section.

16 (b) EMPLOYEE OBLIGATIONS.—Under the system,

17 each employee shall be required to file with the employer

18 of the employee, within 5 days after the later of the effec19 tive date of this section or the date the employee is hired,

20 a W–4 form that indicates—

21 (1) whether the employee has a legal obligation

22 to provide child support (as defined in section

23 462(b) of the Social Security Act) which is to be col24 lected, in whole or in part, through wage withholding

25 pursuant to an order issued by a State court or an
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1 order of an administrative process established under

2 State law; and

3 (2) if so—

4 (A) the aggregate amount of all such obli5 gations; and

6 (B) the name and address of any person to

7 whom the employee has such an obligation.

8 (c) EMPLOYER OBLIGATIONS.—

9 (1) IN GENERAL.—Subtitle C of the Internal

10 Revenue Code of 1986 (relating to employment

11 taxes) is amended by inserting after chapter 24 the

12 following new chapter:

13 ‘‘CHAPTER 24A—COLLECTION OF CHILD

14 SUPPORT OBLIGATIONS AT SOURCE

15 ON WAGES

‘‘Sec. 3411. Child support obligations collected at source.

16 ‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT

17 SOURCE.

18 ‘‘(a) REQUIREMENT OF WITHHOLDING.—

19 ‘‘(1) WAGE WITHHOLDING AS INDICATED BY

20 THE EMPLOYEE.—Each employer who receives a

21 completed W–4 form from an employee pursuant to

22 section 302(b) of the Working Off Welfare Act of

23 1994 which indicates that the employee has a legal
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1 obligation to provide child support (as defined in

2 section 462(b) of the Social Security Act) shall—

3 ‘‘(A) deduct and withhold from the wages

4 of the employee the amount indicated on the

5 W–4 form as a child support obligation;

6 ‘‘(B) send such amount to Secretary; and

7 ‘‘(C) forward the form to the national child

8 support order registry.

9 ‘‘(2) CORRECTION OF WITHHOLDING INSTRUC10 TIONS.—If the national child support order registry

11 notifies the employer that an employee has an obli12 gation referred to in paragraph (1), the employer

13 shall—

14 ‘‘(A) deduct and withhold from the wages

15 of the employee the greater of—

16 ‘‘(i) the amount indicated on the W–

17 4 form as a child support obligation; or

18 ‘‘(ii) the amount that such registry in19 dicates is to be deducted and withheld

20 from the wages of the employee to satisfy

21 such obligation; and

22 ‘‘(B) send the amount so withheld to the

23 Secretary.

24 ‘‘(b) CERTAIN OBLIGATIONS EXEMPT.—This section

25 shall not apply to a child support obligation if the order
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1 requiring payment of such obligation specifies that such

2 obligation is exempt from the requirements of this section.

3 ‘‘(c) LIABILITY FOR PAYMENT.—The employer shall

4 be liable for the payment of amounts deducted and with5 held under subsection (a) to the Secretary.

6 ‘‘(d) NATIONAL CHILD SUPPORT ORDER REG7 ISTRY.—For purposes of this section, the term ‘national

8 child support order registry’ means the national registry

9 of all child support orders established under section 301

10 of the Working Off Welfare Act of 1994.

11 ‘‘(e) SPECIAL RULES.—For purposes of this chapter

12 (and so much of subtitle F as relates to this chapter), any

13 amount required to be deducted and withheld under this

14 section shall be treated as if it were a tax withheld under

15 chapter 24 and rules similar to the rules of chapter 24

16 shall apply.’’

17 (2) CLERICAL AMENDMENT.—The table of

18 chapters for subtitle C of such Code is amended by

19 inserting after the item relating to chapter 24 the

20 following new item:

‘‘Chapter 24A. Child support obligations collected at source.’’

21 SEC. 303. COLLECTION OF CHILD SUPPORT.

22 (a) IN GENERAL.—Chapter 77 of the Internal Reve23 nue Code of 1986 (relating to miscellaneous provisions)

24 is amended by adding at the end thereof the following new

25 section:
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1 ‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.

2 ‘‘(a) MONTHLY PAYMENTS BY INDIVIDUALS WITH

3 NO OR INSUFFICIENT WAGE WITHHOLDING FOR CHILD

4 SUPPORT.—

5 ‘‘(1) IN GENERAL.—Each individual who has a

6 child support payment shortfall for any month shall

7 pay an amount equal to such shortfall to the Sec8 retary not later than the close of such month or

9 such earlier date specified by the Secretary.

10 ‘‘(2) CHILD SUPPORT PAYMENT SHORTFALL.—

11 For purposes of this subsection, the term ‘child sup12 port payment shortfall’ means, with respect to any

13 month, an amount equal to the excess (if any) of—

14 ‘‘(A) the amount of the applicable child

15 support obligation for such month, over

16 ‘‘(B) the amount (if any) deducted and

17 withheld under section 3411 from the wages

18 paid to such individual during such month.

19 ‘‘(3) CERTAIN OBLIGATIONS EXEMPT.—This

20 subsection shall not apply to a child support obliga21 tion if the order requiring payment of such obliga22 tion specifies that such obligation is exempt from the

23 requirements of this subsection.

24 ‘‘(b) PAYMENTS OF ARREARAGES BY INDIVIDUALS

25 NO LONGER EXEMPT FROM WITHHOLDING OR MONTHLY

26 PAYMENTS.—
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1 ‘‘(1) IN GENERAL.—If—

2 ‘‘(A) for any month ending with or within

3 the taxable year, a child support obligation was

4 exempt from section 3111 and subsection (a) of

5 this section,

6 ‘‘(B) such obligation ceases to be so ex7 empt during such year, and

8 ‘‘(C) such individual failed to pay the full

9 amount of such obligation for any month end10 ing with or within such year for which such ob11 ligation was so exempt,

12 then such individual shall pay (not later than the

13 date specified by the Secretary) an amount equal to

14 the excess of the full amount of such obligation for

15 the months referred to in subparagraph (A) over the

16 amount paid before such date under such obligation

17 for such months.

18 ‘‘(2) DETERMINATION OF AMOUNT REQUIRED

19 TO BE PAID.—Subsection (d) shall apply to an

20 amount required to be paid under this subsection

21 only after the Secretary’s determination of such

22 amount (after a hearing on the record) becomes

23 final.

24 ‘‘(c) RECONCILIATION OF CHILD SUPPORT OBLIGA25 TION AND PAYMENTS ON INCOME TAX RETURN.—
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1 ‘‘(1) IN GENERAL.—Each applicable child sup2 port obligation of any individual for months ending

3 with or within any taxable year shall be paid—

4 ‘‘(A) not later than the last date (deter5 mined without regard to extensions) prescribed

6 for filing the individual’s return of tax imposed

7 by chapter 1 for such taxable year, and

8 ‘‘(B)(i) if such return is filed not later

9 than such date, with such return, or

10 ‘‘(ii) in any case not described in clause (i),

11 in such manner as the Secretary may by regula12 tions prescribe.

13 ‘‘(2) OFFSET FOR WITHHELD CHILD SUPPORT,

14 ETC.—There shall be allowed as a credit against the

15 amount required to be paid under paragraph (1) by

16 an individual the sum of—

17 ‘‘(A) the amount (if any) deducted and

18 withheld under section 3411 from the wages re19 ceived by such individual during the taxable

20 year,

21 ‘‘(B) the amount (if any) paid by such in22 dividual under section 6654 by reason of sub23 section (f)(3) thereof for such taxable year,
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1 ‘‘(C) the amount (if any) paid by such in2 dividual under subsections (a) and (b) for such

3 taxable year, and

4 ‘‘(D) in the case of an obligation which

5 was exempt from the requirements of section

6 3411 and subsection (a) of this section for only

7 a portion of the taxable year, the amount paid

8 (for such portion of the taxable year) by such

9 individual directly to the person to whom the

10 obligation is owed (or, if such person has as11 signed to a State the right to collect the obliga12 tion, the State).

13 ‘‘(3) CREDIT OR REFUND FOR PAYMENTS IN

14 EXCESS OF ACTUAL OBLIGATION.—There shall be al15 lowed as a credit against the tax imposed by subtitle

16 A for the taxable year an amount equal to the excess

17 (if any) of—

18 ‘‘(A) the aggregate of the amounts de19 scribed in subparagraphs (A), (B), (C), and (D)

20 of paragraph (2) for such taxable year, over

21 ‘‘(B) the aggregate of the applicable child

22 support obligations of the taxpayer for such

23 taxable year.
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1 The credit allowed by this paragraph shall be treated

2 for purposes of this title as allowed by subpart C of

3 part IV of subchapter A of chapter 1.

4 ‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi5 vidual fails to pay the full amount required to be paid

6 under subsection (a), (b), or (c) on or before due date for

7 such payment, the Secretary shall assess and collect the

8 unpaid amount in the same manner, with the same pow9 ers, and subject to the same limitations applicable to a

10 tax imposed by subtitle C the collection of which would

11 be jeopardized by delay.

12 ‘‘(e) APPLICATION OF SECTION TO CHILD SUPPORT

13 ORDERS NOT INITIALLY SUBJECT TO SECTION.—

14 ‘‘(1) IN GENERAL.—In the case of a child sup15 port obligation which becomes an applicable child

16 support obligation for any month after January

17 1996, the amount required to be paid under sub18 section (a) for the first such month shall be in19 creased by the excess (if any) of—

20 ‘‘(A) the aggregate amount required to be

21 paid under such obligation for all months before

22 such month (including months in prior taxable

23 years), over
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1 ‘‘(B) the aggregate amount paid under

2 such obligation for all months before such

3 month.

4 ‘‘(2) CROSS REFERENCE.—

‘‘For agreements to pay tax in installments, see

section 6159.

5 ‘‘(f) APPLICABLE CHILD SUPPORT OBLIGATION.—

6 For purposes of this section, the term ‘applicable child

7 support obligation’ means a legal obligation to provide

8 child support (as defined in section 462(b) of the Social

9 Security Act), except that such term shall not include any

10 such obligation for any period during which section

11 466(a)(12) of the Social Security Act (42 U.S.C.

12 666(a)(12)) does not apply to the child support order with

13 respect thereto until the order is registered.’’

14 (b) WITHHELD CHILD SUPPORT TO BE SHOWN ON

15 W–2.—Subsection (a) of section 6051 of such Code is

16 amended by striking ‘‘and’’ at the end of paragraph (8),

17 by striking the period at the end of paragraph (9) and

18 inserting ‘‘, and’’, and by inserting after paragraph (9)

19 the following new paragraph:

20 ‘‘(10) the total amount deducted and withheld

21 as a child support obligation under section 3411.’’

22 (c) APPLICATION OF ESTIMATED TAX PENALTY.—

23 (1) Subsection (f) of section 6654 of such Code

24 (relating to failure by individual to pay estimated in-
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1 come tax) is amended by striking ‘‘minus’’ at the

2 end of paragraph (2) and inserting ‘‘plus’’, by redes3 ignating paragraph (3) as paragraph (4), and by in4 serting after paragraph (2) the following new para5 graph:

6 ‘‘(3) the aggregate applicable child support obli7 gation (as defined in section 7524(a)) of the tax8 payer for months ending with or within the taxable

9 year, minus’’.

10 (2) Paragraph (1) of section 6654(d) of such

11 Code is amended by adding at the end the following

12 new subparagraph:

13 ‘‘(D) DETERMINATION OF REQUIRED AN14 NUAL PAYMENT FOR TAXPAYERS REQUIRED TO

15 PAY CHILD SUPPORT.—In the case of a tax16 payer who is required under section 7524 to

17 pay an applicable child support obligation (as

18 defined in section 7524) for any month ending

19 with or within the taxable year, the required

20 annual payment shall be the sum of—

21 ‘‘(i) the amount determined under

22 subparagraph (B) without regard to sub23 section (f)(3), plus
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1 ‘‘(ii) the aggregate amount of such

2 obligation for all months ending with or

3 within the taxable year.’’

4 (3) CREDIT FOR WITHHELD AMOUNTS, ETC.—

5 Subsection (g) of section 6654 of such Code is

6 amended by adding at the end the following new

7 paragraph:

8 ‘‘(3) CHILD SUPPORT.—For purposes of apply9 ing this section, the sum of—

10 ‘‘(A) amounts deducted and withheld

11 under section 3411, and

12 ‘‘(B) amounts paid under subsections (a)

13 and (b) of section 7524,

14 shall be deemed to be a payment of the amount de15 scribed in subsection (f)(3) on the date such

16 amounts were actually withheld or paid, as the case

17 may be.’’

18 (d) CLERICAL AMENDMENT.—The table of sections

19 for chapter 77 of such Code is amended by adding at the

20 end thereof the following new item:

‘‘Sec. 7524. Collection of child support.’’

21 SEC. 304. DISTRIBUTION OF PORTION OF CHILD SUPPORT

22 COLLECTED.

23 (a) IN GENERAL.—The Secretary of the Treasury

24 shall pay to the appropriate payee the sum of the following
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1 amounts which are received by the Secretary on account

2 of a child support obligation payable to such payee:

3 (1) The amounts deducted and withheld under

4 section 3411 of the Internal Revenue Code of 1986.

5 (2) The amounts paid under section 6654 of

6 such Code (relating to estimated tax payments) by

7 reason of subsection (f)(3) thereof.

8 (3) The amounts paid under section 7524 of

9 such Code (relating to collection of child support).

10 (b) APPROPRIATE PAYEE.—As used in this section,

11 the term ‘‘appropriate payee’’ means, with respect to a

12 child support obligation—

13 (1) the person to whom the obligation is owed;

14 or

15 (2) if such person has assigned to a State the

16 right to collect the obligation, the State.

17 (c) INTEREST PAYABLE ON LATE PAYMENTS BY

18 SECRETARY.—If, within 10 days after the Secretary of the

19 Treasury receives an amount referred to in a paragraph

20 of subsection (a), the Secretary fails to pay any cor21 responding amount required to be paid under subsection

22 (a), the Secretary shall pay, in addition to the amount re23 quired to be paid, to the appropriate payee interest at the

24 underpayment rate (determined under section 6621 of

25 such Code, and compounded daily) on such amount for
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1 the period beginning on such date and ending on the date

2 paid.

3 (d) COORDINATION WITH RULES GOVERNING DIS4 TRIBUTION OF CHILD SUPPORT COLLECTED BY A

5 STATE.—Section 457 of the Social Security Act (42

6 U.S.C. 657) is amended by adding at the end the follow7 ing:

8 ‘‘(e) For purposes of this section, amounts received

9 by a State from the Secretary of the Treasury pursuant

10 to section 304(a) of the Working Off Welfare Act of 1994

11 shall be considered amounts collected by the State as child

12 support pursuant to a plan approved under this part.’’.

13 SEC. 305. OUTREACH AND ACCESSIBILITY.

14 (a) UNIFORM APPLICATION FOR CHILD SUPPORT

15 SERVICES.—

16 (1) REQUIREMENT THAT STATES USE FEDERAL

17 APPLICATION FORM.—Section 454(6)(A) of the So18 cial Security Act (42 U.S.C. 654(6)(A)) is amended

19 by inserting ‘‘(which shall be made on the service

20 application form developed under section

21 452(a)(7))’’ after ‘‘State’’.

22 (2) DUTY TO DEVELOP APPLICATION FORM.—

23 Section 452(a)(7) of such Act (42 U.S.C. 652(a)(7))

24 is amended by inserting ‘‘, and develop a form to be
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1 used to apply for services established under State

2 plans under this part’’ before the semicolon.

3 (b) OUTREACH.—

4 (1) STATE PLAN REQUIREMENT.—Section 454

5 of such Act (42 U.S.C. 654) is amended—

6 (A) in paragraph (23), by striking ‘‘and’’

7 after the semicolon;

8 (B) in paragraph (24), by striking the pe9 riod and inserting ‘‘; and’’; and

10 (C) by inserting after paragraph (24) the

11 following:

12 ‘‘(25) provide for the establishment and conduct

13 of an ongoing program of outreach to persons eligi14 ble for services under the plan, in accordance with

15 regulations issued under section 452(a)(11).’’.

16 (2) REGULATIONS.—Section 452(a) of such Act

17 (42 U.S.C. 652(a)) is amended—

18 (A) in paragraph (9), by striking ‘‘and’’

19 after the semicolon;

20 (B) in paragraph (10), by striking the 2nd

21 period and inserting ‘‘; and’’; and

22 (C) by adding at the end the following:

23 ‘‘(11) issue such regulations as are necessary to

24 ensure that State agencies—
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1 ‘‘(A) develop and implement a plan for

2 serving underserved populations;

3 ‘‘(B) use appropriate personnel and print4 ed material for use by persons who do not

5 speak English or whose hearing is impaired;

6 and

7 ‘‘(C) work in cooperation with other Fed8 eral, State, and local government agencies and

9 private nonprofit organizations which serve low10 income families to publicize the availability of

11 such services and coordinate the delivery of

12 such services.’’.

13 SEC. 306. COMMISSION ON CHILD SUPPORT GUIDELINES.

14 (a) ESTABLISHMENT OF COMMISSION.—There is

15 hereby established a Commission to be known as the Com16 mission on Child Support Guidelines (in this section re17 ferred to as the ‘‘Commission’’) to be composed of 15

18 members appointed in accordance with subsection (b)(1).

19 (b) MEMBERSHIP.—

20 (1) APPOINTMENT.—

21 (A) APPOINTING AUTHORITIES.—Subject

22 to subparagraph (B), the members of the Com23 mission shall be appointed as follows:

24 (i) 4 members shall be appointed

25 jointly by the majority and minority lead-
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1 ers of the Senate, in consultation with the

2 chairman and ranking minority member of

3 the Committee on Finance of the Senate.

4 (ii) 4 members shall be appointed

5 jointly by the Speaker and the minority

6 leader of the House of Representatives, in

7 consultation with the chairman and rank8 ing minority member of the Committee on

9 Ways and Means of the House of Rep10 resentatives.

11 (iii) 7 members shall be appointed by

12 the Secretary of Health and Human Serv13 ices.

14 (B) BALANCED REPRESENTATION.—The

15 persons with authority to make appointments

16 under subparagraph (A) shall, individually and

17 collectively, ensure that the composition of the

18 membership of the Commission reflects a bal19 anced representation of ethnic groups, groups

20 of various economic status, economists, persons

21 familiar with the cost of raising children, custo22 dial and noncustodial parents, judges and hear23 ing officers familiar with the use of guidelines,

24 and persons who have experience with the wel25 fare system.
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1 (2) TERM OF OFFICE.—Members of the Com2 mission shall serve for the life of the Commission.

3 (3) VACANCIES.—A vacancy on the Commission

4 shall be filled in the manner in which the original

5 appointment was made and shall not affect the pow6 ers or duties of the Commission.

7 (4) TRANSACTION OF BUSINESS.—A majority of

8 the members of the Commission shall constitute a

9 quorum for the transaction of business. Decisions of

10 the Commission shall be according to the vote of a

11 simple majority of those present and voting at a

12 properly called meeting.

13 (5) FIRST MEETING.—As promptly as possible

14 after all of the members of the Commission are ap15 pointed, the Secretary of Health and Human Serv16 ices shall call the first meeting of the Commission.

17 (6) CHAIRPERSON.—At the first Commission

18 meeting, the members of the Commission shall select

19 a Chairperson from among such members and shall

20 meet thereafter at the call of the Chairperson or of

21 a majority of the members.

22 (c) COMPENSATION OF COMMISSION MEMBERS.—

23 (1) NO PAY.—Members of the Commission shall

24 serve as such without pay.
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1 (2) TRAVEL EXPENSES AND PER DIEM.—Mem2 bers of the Commission shall be allowed travel ex3 penses, including a per diem allowance in lieu of

4 subsistence, in the same manner as persons serving

5 intermittently in the government service are allowed

6 travel expenses under section 5703 of title 5, United

7 States Code.

8 (d) REPORT TO THE CONGRESS ON RECOMMENDED

9 NATIONAL CHILD SUPPORT GUIDELINES.—The Commis10 sion shall submit to the Congress a report that contains

11 recommendations for national child support guidelines

12 that should be followed by State courts and administrative

13 bodies in setting the amount of child support awards. In

14 developing such guidelines, the Commission shall consider

15 the best interests of the child.

16 (e) POWERS OF THE COMMISSION.—

17 (1) MAILS.—The Commission may use the

18 United States mails in the same manner and upon

19 the same conditions as other departments and agen20 cies of the United States Government.

21 (2) GIFTS.—The Commission may accept, use,

22 and dispose of donations of money and property, and

23 may accept such volunteer services of individuals as

24 it deems appropriate.
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1 (3) CONTRACT AUTHORITY.—The Commission

2 may procure supplies, services, and property, may

3 make contracts, and may procure temporary and

4 intermittent services under section 3109(b) of title

5 5, United States Code, but only to the extent and

6 in such amounts as are provided in appropriation

7 Acts.

8 (4) RULES OF PROCEDURE.—For purposes of

9 carrying out its duties under subsection (d), the

10 Commission may adopt such rules for its organiza11 tion and procedures as it deems appropriate.

12 (5) DIRECTOR AND STAFF.—

13 (A) DIRECTOR.—The Commission shall

14 have a Director who shall be appointed by the

15 Chairperson.

16 (B) STAFF.—The Director may appoint

17 and fix the pay of such additional personnel as

18 the Director considers appropriate.

19 (C) APPLICABILITY OF CERTAIN CIVIL

20 SERVICE LAWS.—The Director and staff of the

21 Commission may be appointed without regard

22 to the provisions of title 5, United States Code,

23 governing appointments in the competitive serv24 ice, and may be paid without regard to the pro25 visions of chapter 51 and subchapter III of
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1 chapter 53 of such title relating to classification

2 and General Schedule pay rates, except that an

3 individual so appointed may not be paid at a

4 rate in excess of the rate for level IV of the Ex5 ecutive Schedule.

6 (6) STAFF OF FEDERAL AGENCIES.—On re7 quest of the Chairperson of the Commission, the

8 head of any Federal department or agency may de9 tail, on a reimbursable basis, any of the personnel

10 of such department or agency to the Commission to

11 assist the Commission in carrying out its duties

12 under this section without regard to section 3341 of

13 title 5, United States Code.

14 (f) EFFECTIVE DATE.—This section shall take effect

15 on the date of the enactment of this Act.

16 (g) TERMINATION OF THE COMMISSION.—

17 (1) TERMINATION DATE.—The Commission

18 shall terminate on the earlier of—

19 (A) the date that the Commission submits

20 to the Congress the report required by sub21 section (d); or

22 (B) the date that is 2 years after the date

23 of the enactment of this section.

24 (2) DISPOSITION OF COMMISSION PROPERTY.—
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1 (A) FUNDS.—Any funds held by the Com2 mission on the date of termination of the Com3 mission shall be deposited in the general fund

4 of the Treasury of the United States and cred5 ited as miscellaneous receipts.

6 (B) OTHER PROPERTY.—Any property

7 (other than funds) held by the Commission on

8 such date shall be disposed of as excess or sur9 plus property.

10 SEC. 307. RESOURCES.

11 (a) DEADLINE FOR ISSUANCE OF STANDARDS FOR

12 STAFFING STATE CHILD SUPPORT PROGRAMS.—Within 1

13 year after the date of the enactment of this Act, the Sec14 retary of Health and Human Services shall establish the

15 staffing requirements required to be established under sec16 tion 452(a)(2) of the Social Security Act, including the

17 requirement that a State shall, to the extent practicable,

18 fill positions created in order to carry out the amendments

19 made by this title with personnel of the organizational unit

20 referred to in section 454(3) of such Act whose positions

21 are eliminated in order to carry out such amendments.

22 (b) INCENTIVE FOR STATES TO IMPROVE CHILD

23 SUPPORT PROGRAMS.—
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1 (1) INCREASE IN FEDERAL MATCHING RATE.—

2 Section 455(a) of the Social Security Act (42 U.S.C.

3 655(a)) is amended—

4 (A) in paragraph (1)(A), by inserting ‘‘(or,

5 if applicable, paragraph (3))’’ after ‘‘paragraph

6 (2)’’; and

7 (B) by adding at the end the following:

8 ‘‘(3)(A) Notwithstanding paragraph (2) of this sub9 section, the percent applicable to a State for a quarter

10 in a fiscal year for purposes of paragraph (1)(A) of this

11 subsection is 90 percent if the most recent review con12 ducted under section 452(a)(4), after the date of the en13 actment of this Act, of the State program operated under

14 this part confirms that—

15 ‘‘(i) the paternity establishment percentage of

16 the State for the fiscal year immediately preceding

17 the fiscal year in which the quarter occurs equals or

18 exceeds the threshold percentage;

19 ‘‘(ii) the State has met the standards included,

20 pursuant to subsections (h) and (i) of section 452,

21 in the standards required by section 452(a)(1), with

22 respect to at least the threshold percentage of the

23 cases in which services are provided under the State

24 plan under this part during the quarter; and
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1 ‘‘(iii) during the quarter, the State has com2 plied with a plan approved by the Secretary for the

3 State to meet the staffing requirements established

4 under section 452(a)(2).

5 ‘‘(B) For purposes of subparagraph (A) of this para6 graph, the threshold percentage for a State with respect

7 to a quarter is the greater of—

8 ‘‘(i) 80 percent; or

9 ‘‘(ii) the lesser of—

10 ‘‘(I) the threshold percentage for the State

11 with respect to the most recent quarter for

12 which the percent applicable to a State for pur13 poses of paragraph (1)(A) is 90 percent by rea14 son of subparagraph (A) of this paragraph, in15 creased by 2 percentage points; or

16 ‘‘(II) 95 percent.’’.

17 (2) EFFECTIVE DATE.—The amendments made

18 by paragraph (1) shall apply to payments under part

19 D of title IV of the Social Security Act for quarters

20 beginning after the 1-year period that begins with

21 the date of the enactment of this Act.

22 (c) DIRECT ACCOUNTABILITY OF CHILD SUPPORT

23 PROGRAMS.—Section 403(h) of such Act (42 U.S.C.

24 603(h))—

25 (1) is amended—
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1 (A) in paragraph (1)—

2 (i) by striking ‘‘part D’’ and inserting

3 ‘‘this part’’; and

4 (ii) by striking ‘‘such part’’ and in5 serting ‘‘this part’’; and

6 (B) in paragraph (3), by striking ‘‘this

7 part’’ and inserting ‘‘part A’’; and

8 (2) as so amended, is hereby transferred to sec9 tion 455 of such Act, inserted after subsection (b)

10 of such section 455 and designated as subsection (c)

11 of such section 455.

12 (d) MAINTENANCE OF EFFORT.—

13 (1) STATE CHILD SUPPORT PROGRAMS.—Sec14 tion 455 of such Act (42 U.S.C. 655) is amended by

15 adding at the end the following:

16 ‘‘(f) Notwithstanding any other provision of this sec17 tion, the amount otherwise payable to a State for a quar18 ter under this section shall be reduced to the extent that

19 the amount expended by the State to carry out the State

20 plan under this part during the most recently completed

21 fiscal year is less than the amount so expended during

22 the fiscal year that immediately precedes such most re23 cently completed fiscal year.’’.
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1 (2) STATE AFDC PROGRAMS.—Section 403 of

2 such Act (42 U.S.C. 603) is amended by inserting

3 after subsection (b) the following:

4 ‘‘(c) Notwithstanding any other provision of this sec5 tion, the amount otherwise payable to a State for a quar6 ter under this section shall be reduced to the extent that

7 the amount expended by the State to carry out the State

8 plan under this part during the most recently completed

9 fiscal year is less than the amount so expended during

10 the fiscal year that immediately precedes such most re11 cently completed fiscal year.’’.

12 (e) STREAMLINING OF CHILD SUPPORT AUDITS.—

13 The Secretary of Health and Human Services shall

14 streamline the process for conducting audits under section

15 452(a)(4) of the Social Security Act in such a way as to—

16 (1) reduce the burden on States with programs

17 that are complying substantially with the require18 ments of part D of title IV of such Act;

19 (2) enable the audit process to produce a timely

20 analysis of State programs that are not complying

21 substantially with such requirements; and

22 (3) enable the Secretary to shift staff resources

23 to technical assistance in order to help States im24 prove their programs under such part.
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1 SEC. 308. PATERNITY ESTABLISHMENT PROCEDURES.

2 (a) IN GENERAL.—Section 466(a)(5)(C) of the Social

3 Security Act (42 U.S.C. 666(a)(5)(C)) is amended—

4 (1) by redesignating the 1st sentence as clause

5 (i)(I);

6 (2) by inserting after such clause the following:

7 ‘‘(II) Such procedures must provide that any

8 such explanation to a mother include the following

9 information:

10 ‘‘(aa) Signing a paternity acknowledgment

11 affidavit is voluntary.

12 ‘‘(bb) Once paternity of a child is estab13 lished, the father of the child has the right to

14 seek custody of the child or visitation rights

15 with respect to the child.

16 ‘‘(cc) Once paternity of a child is estab17 lished, the mother of the child has the right to

18 seek from the father of the child financial and

19 medical support for the child.

20 ‘‘(dd) The effect that the courts of the

21 State will give to a signed paternity acknowl22 edgment affidavit.

23 ‘‘(III) Such procedures must provide that any

24 such explanation to a possible father include the fol25 lowing information:
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1 ‘‘(aa) Signing a paternity acknowledgment

2 affidavit is voluntary.

3 ‘‘(bb) Genetic testing is available and will

4 be provided upon request.

5 ‘‘(cc) The policy of the State with respect

6 to payment for the cost of genetic testing.

7 ‘‘(dd) Once paternity of a child is estab8 lished, the father of the child has the right to

9 seek custody of the child or visitation rights

10 with respect to the child.

11 ‘‘(ee) Once paternity of a child is estab12 lished, the mother of the child has the right to

13 seek from the father of the child financial and

14 medical support for the child.

15 ‘‘(ff) The effect that the courts of the

16 State will give to a signed paternity acknowl17 edgment affidavit.

18 ‘‘(IV) Such procedures must provide that the

19 information required to be provided under subclause

20 (II) or (III) must be provided—

21 ‘‘(aa) orally and in writing;

22 ‘‘(bb) where appropriate, in the language

23 of the individual to whom the information is re24 quired to be provided; and
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1 ‘‘(cc) if the individual is blind or hearing2 impaired, in a manner accessible to the individ3 ual.’’;

4 (3) by indenting the 2nd sentence 2 ems and

5 redesignating such sentence as clause (ii); and

6 (4) by inserting after such clause (ii) the follow7 ing:

8 ‘‘(iii) Such procedures must require the State

9 agency responsible for maintaining birth records to

10 offer voluntary paternity establishment services.

11 ‘‘(iv) Such procedures must require the State to

12 use only the affidavit developed under section

13 452(a)(7) for the voluntary acknowledgment of pa14 ternity, and to give full faith and credit to such an

15 affidavit signed in any other State.

16 ‘‘(v) The Secretary shall prescribe regulations

17 governing voluntary paternity establishment services

18 offered by entities other than hospitals, which shall

19 include a requirement that any State agency that

20 provides such services must use the same materials

21 used by, provide the personnel providing such serv22 ices with the same training provided by, and evalu23 ate the provision of such services in the same man24 ner as hospital-based voluntary paternity establish25 ment programs.’’.
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1 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI2 DAVIT.—Section 452(a)(7) of such Act (42 U.S.C.

3 652(a)(7)), as amended by section 305(a)(2) of this Act,

4 is amended by inserting ‘‘, and develop an affidavit to be

5 used for the voluntary acknowledgment of paternity’’ be6 fore the semicolon.

7 (c) SIGNED PATERNITY ACKNOWLEDGMENT AFFIDA8 VIT CONCLUSIVELY PRESUMED TO ESTABLISH PATER9 NITY.—Section 466(a)(5)(D) of such Act (42 U.S.C.

10 666(a)(5)(D)) is amended—

11 (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and

12 (2) by adding at the end the following:

13 ‘‘(ii)(I) Such procedures shall provide that the

14 written voluntary acknowledgment of the paternity

15 of a child shall, upon the expiration of the challenge

16 period, create a legal finding of paternity—

17 ‘‘(aa) without any further action; or

18 ‘‘(bb) at the option of the State, after a

19 court or administrative agency with which the

20 document containing the acknowledgment has

21 been filed within 5 business days after the expi22 ration of the challenge period issues an order

23 establishing such paternity.
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1 ‘‘(II) As used in subclause (I), the term ‘chal2 lenge period’ means, with respect to an acknowledg3 ment of paternity—

4 ‘‘(aa) the 30-day period that begins on the

5 date of the acknowledgment; or

6 ‘‘(bb) if the person who executed the ac7 knowledgment undergoes genetic testing within

8 30 days after the date of the acknowledgment,

9 the 30-day period that begins with the date the

10 person is notified of the results of the genetic

11 testing.’’.

12 SEC. 309. COORDINATION OF COLLECTION ACTIVITIES.

13 Section 452 of the Social Security Act (42 U.S.C.

14 652) is amended by adding at the end the following:

15 ‘‘(j)(1) Not later than 1 year after the date of the

16 enactment of this subsection, the Secretary and the Sec17 retary of the Treasury shall jointly issue regulations gov18 erning the coordination of State activities in collecting

19 child support pursuant to State plans approved under this

20 part and the activities of the Secretary of the Treasury

21 in collecting child support under section 7524 of the Inter22 nal Revenue Code of 1986.

23 ‘‘(2) The Secretary shall periodically report to the

24 Congress on any legislation needed to facilitate the coordi25 nation of such child support collection activities.’’.
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1 SEC. 310. INCLUSION IN CONSUMER CREDIT REPORTS OF

2 INFORMATION ON OVERDUE CHILD SUPPORT

3 OBLIGATIONS OF THE CONSUMER.

4 (a) PROVISION TO CONSUMER REPORTING AGENCIES

5 OF INFORMATION ON OVERDUE CHILD SUPPORT OBLIGA6 TIONS OF ABSENT PARENTS.—Section 466(a)(7) of the

7 Social Security Act (42 U.S.C. 666(a)(7)) is amended—

8 (1) by striking ‘‘will’’ and inserting ‘‘shall’’;

9 (2) by striking ‘‘upon the request of such

10 agency’’; and

11 (3) by inserting ‘‘and’’ before ‘‘(B)’’; and

12 (4) by striking ‘‘, and (C)’’ and all that follows

13 through ‘‘State’’.

14 (b) OVERDUE SUPPORT DETERMINED WITHOUT RE15 GARD TO AGE OF CHILD.—Section 466(e) of such Act (42

16 U.S.C. 666(e)) is amended—

17 (1) by striking ‘‘minor’’ the 1st place such term

18 appears; and

19 (2) by striking all that follows the 1st sentence.

20 SEC. 311. EFFECTIVE DATE.

21 Except as otherwise provided in this title, this title

22 and the amendments made by this title shall take effect

23 on January 1, 1996, and shall apply to—

24 (1) child support orders issued or modified on

25 or after such date, and, beginning 3 years after such
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1 date, to all orders whether issued before, on, or after

2 such date; and

3 (2) payments under part D of title IV of the

4 Social Security Act for quarters beginning on or

5 after such date.

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