I

103D CONGRESS

2D SESSION H. R. 4667

To allow State and local governments to design their own programs for

moving welfare recipients from dependence to economic self-sufficiency,

and to allow low-income individuals to use personal savings as a foundation for achieving independence.

IN THE HOUSE OF REPRESENTATIVES

JUNE 28, 1994

Mr. ANDREWS of New Jersey (for himself, Mr. WELDON, and Mr. KOLBE)

introduced the following bill; which was referred jointly to the Committees

on Ways and Means, Banking, Finance and Urban Affairs, Agriculture,

Energy and Commerce, and Education and Labor

A BILL

To allow State and local governments to design their own

programs for moving welfare recipients from dependency

to economic self-sufficiency, and to allow low-income individuals to use personal savings as a foundation for

achieving independence.

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 ‘‘Welfare Innovation

5 and Empowerment Act of 1994’’.
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1 TITLE I—STATE AND LOCAL

2 WELFARE-TO-WORK DEM3 ONSTRATION PROJECTS

4 SEC. 101. INTERAGENCY WAIVER REQUEST BOARD.

5 (a) ESTABLISHMENT AND PURPOSE.—In order to

6 streamline and expedite Federal Government approval of

7 State requests to conduct demonstration projects under

8 which eligible Federal programs may be consolidated into

9 a single program or programs designed to move welfare

10 recipients from welfare to work, there is established an

11 Interagency Waiver Request Board.

12 (b) MEMBERSHIP.—The Board shall consist of 8

13 members, as follows:

14 (1) 1 individual appointed by the President

15 from the White House Domestic Policy Council.

16 (2) The Secretary of Health and Human Serv17 ices (or the designee of the Secretary).

18 (3) The Secretary of Agriculture (or the des19 ignee of the Secretary).

20 (4) The Secretary of Labor (or the designee of

21 the Secretary).

22 (5) The Secretary of Housing and Urban Devel23 opment (or the designee of the Secretary).

24 (6) The Secretary of Education (or the designee

25 of the Secretary).
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1 (7) The Secretary of the Interior (or the des2 ignee of the Secretary).

3 (8) The Director of the Office of Management

4 and Budget (or the designee of the Director).

5 (c) CHAIRPERSON.—The member of the Board ap6 pointed under subsection (b)(1) shall serve as Chairperson

7 of the Board.

8 (d) VACANCIES.—A vacancy in the position of Chair9 man shall be filled in the manner in which the original

10 appointment was made.

11 (e) NO ADDITIONAL COMPENSATION.—The members

12 of the Board may not be provided additional pay, allow13 ances, or benefits by reason of their service on the Board.

14 (f) POWERS.—

15 (1) ASSISTANCE OF OTHER FEDERAL ENTI16 TIES.—A member of the Board shall detail to the

17 Chairperson, on a nonreimbursable basis, such offi18 cers and employees of the department or agency

19 headed by the member, and shall make available to

20 the Chairperson such assistance, as the Chairperson

21 may require to carry out the activities of the Chair22 person.

23 (2) USE OF UNITED STATES MAILS.—The

24 Chairperson may use the United States mails in the

25 same manner and under the same conditions as
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1 other departments and agencies of the United

2 States.

3 (g) PROCEDURE.—

4 (1) MEETINGS.—The Board shall meet at the

5 call of the Chairperson or of at least 3 members.

6 (2) NOTICE OF DECISIONS.—The Chairperson

7 shall provide the Board with advance notice of any

8 action that the Chairperson intends to take under

9 this title.

10 (3) POWER OF BOARD MAJORITY TO OVERRULE

11 CHAIRPERSON.—Notwithstanding any other provi12 sion of this title, a majority of the members of the

13 Board with respect to a matter may overrule any de14 cision or nullify any action of the Chairperson under

15 this title with respect to the matter.

16 (h) ANNUAL REPORTS.—The Chairperson shall

17 transmit annually to the Congress a report containing a

18 detailed statement of the activities of the Board during

19 the year covered by the report.

20 SEC. 102. APPLICATION TO IMPLEMENT DEMONSTRATION

21 PROJECTS.

22 Any State desiring to implement a welfare-to-work

23 demonstration project using funds or assistance from eligi24 ble Federal programs may submit to the Chairperson an

25 application that contains the following:
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1 (1) PLAN.—A plan that sets forth the following:

2 (A) GEOGRAPHIC AREA.—The geographic

3 area in which the demonstration project is to be

4 conducted and the rationale for so defining the

5 area.

6 (B) RECIPIENTS.—The particular groups

7 of individuals, by age, service needs, economic

8 circumstances, or other defining factors, who

9 are to receive services and benefits under the

10 plan.

11 (C) OBJECTIVES AND PERFORMANCE CRI12 TERIA.—Specific objectives and criteria for

13 measuring levels of performance, a description

14 of how such objectives and levels of perform15 ance are expected to be achieved, a description

16 of how such criteria are to be used to measure

17 performance, and a system for the comprehen18 sive evaluation of the impact of the demonstra19 tion project on participants, the community,

20 and the costs of conducting the project.

21 (D) COVERED PROGRAMS.—

22 (i) IN GENERAL.—The eligible Fed23 eral programs through which funds or as24 sistance are to be provided to implement

25 the plan, and the specific benefits that are
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1 to be provided under the plan pursuant to

2 the program or programs, including cri3 teria for determining eligibility for benefits

4 under the plan, the services available, the

5 amounts and form (such as cash, in-kind

6 contributions, or financial instruments) of

7 non-service benefits.

8 (ii) TIME-LIMITED AFDC BENEFITS.—

9 If the plan includes the program specified

10 in section 106(4)(A), the plan may include

11 a commitment to deny benefits under the

12 program to any individual who has—

13 (I) received cash assistance under

14 the program for such period of not

15 less than 1 year as the State deems

16 appropriate, and participated in work

17 activities under the program for such

18 additional period of not less than 1

19 year as the State deems appropriate;

20 or

21 (II) received cash assistance

22 under the program for such period of

23 not less than 2 years as the State

24 deems appropriate.
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1 (E) PROVISIONS OF LAW TO BE WAIVED.—

2 A list of the provisions of law or regulation

3 which prevent the State from implementing the

4 plan.

5 (F) SOURCES OF NON-FEDERAL FUNDS.—

6 A description of the sources of all non-Federal

7 funds that are to be used to carry out the pro8 gram or programs referred to in subparagraph

9 (D).

10 (G) FISCAL CONTROL AND ACCOUNTABIL11 ITY.—Fiscal control and related accountability

12 procedures that are to apply under the plan.

13 (2) ASSURANCES.—

14 (A) PROVISION OF PLAN TO AFFECTED OR15 GANS OF GOVERNMENT IN THE STATE.—Assur16 ances that a copy of the plan has been provided

17 to all affected organs of government in the geo18 graphic area referred to in paragraph (1)(A).

19 (B) CONSULTATION WITH POTENTIAL PAR20 TICIPANTS.—Assurances that a committee es21 tablished under section 105 has participated in

22 the development of the plan.

23 (3) REQUEST FOR AUTHORITY TO IMPLEMENT

24 PLAN.—A request that the Chairperson authorize

25 the applicant to implement the plan, and waive the
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1 application of any Federal statutory or regulatory

2 requirement to the extent necessary to enable such

3 implementation.

4 (4) OTHER INFORMATION.—Any other informa5 tion the Chairperson may require to approve the ap6 plication.

7 SEC. 103. REVIEW AND APPROVAL OF APPLICATIONS;

8 WAIVERS.

9 (a) REVIEW.—Upon receipt of an application submit10 ted in accordance with section 102, the Chairperson

11 shall—

12 (1) approve or disapprove the application within

13 90 days after such receipt;

14 (2) notify the applicant in writing of such ap15 proval or disapproval; and

16 (3) if the application is disapproved, include in

17 the notice of disapproval a written justification of

18 the reasons therefor.

19 (b) CONDITIONAL APPROVAL.—The Chairperson may

20 condition approval of such an application on the accept21 ance by the applicant, and by any parties whose consent

22 or approval is required under section 102, of specified

23 modifications to the application.

24 (c) APPROVAL.—
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1 (1) REQUIREMENTS.—The Chairperson shall

2 approve such an application, subject to paragraph

3 (2), if the Chairperson determines that—

4 (A) the plan contained in the application is

5 adequate to ensure that individuals and families

6 who receive benefits under the covered program

7 or programs included in the plan will continue

8 to receive benefits that meet the needs intended

9 to be met under the program or programs, to

10 the extent consistent with a commitment made

11 pursuant to section 102(1)(D)(ii);

12 (B) implementation of the plan will not re13 sult in an increase in the total amount of obli14 gations or outlays of discretionary appropria15 tions or direct spending under the covered pro16 gram or programs included in the plan, over the

17 amounts of such obligations and outlays that

18 would occur under the program or programs

19 without implementation of the plan; and

20 (C) the applicant has designed an evalua21 tion process that is adequate for assessing per22 formance of the demonstration project once im23 plemented.

24 (3) IMPLEMENTATION PERIOD.—Subject to

25 subsections (e)(2) and (f)(1) of section 104(e), a
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1 demonstration project approved by the Chairperson

2 may be conducted for such period as is specified in

3 the application to conduct the project, or for 7

4 years, whichever is of lesser duration.

5 (d) WAIVERS.—

6 (1) IN GENERAL.—Subject to this subsection,

7 the Chairperson may waive any requirement applica8 ble under Federal law to the administration of, or

9 provision of benefits under, any covered program in10 cluded in an application approved under this title, if

11 the waiver is reasonably necessary for the implemen12 tation of the plan contained in the approved applica13 tion.

14 (2) FUNDING LIMITATION.—This subsection

15 shall not be construed to authorize the Chairperson

16 to waive the application to any State of a provision

17 of law or regulation applicable to a program if the

18 waiver would result in net payments by the Federal

19 Government to the State under the program for a

20 fiscal year in excess of the net payments which

21 would otherwise be so made to the State.

22 (3) CIVIL RIGHTS LAWS EXCEPTED.—This sub23 section shall not be construed to authorize the

24 Chairperson to waive any requirement established by

25 statute or regulation under—
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1 (A) title VI of the Civil Rights Act of 1964

2 (42 U.S.C. 2000d et seq.);

3 (B) section 504 of the Rehabilitation Act

4 of 1973 (29 U.S.C. 701 et seq.);

5 (C) title IX of the Education Amendments

6 of 1972 (86 Stat. 373 et seq.);

7 (D) the Age Discrimination Act of 1975

8 (42 U.S.C. 6101 et seq.); or

9 (E) the Americans With Disabilities Act of

10 1990.

11 SEC. 104. IMPLEMENTATION; EVALUATIONS.

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law, benefits under any covered program included

14 in an application approved under this title shall be paid

15 and administered in the manner specified in the approved

16 application.

17 (b) STATE EVALUATIONS.—

18 (1) IN GENERAL.—Any State whose application

19 is approved under this title shall, in accordance with

20 regulations issued by the Chairperson—

21 (A) submit such reports on, and cooperate

22 in such audits of, the implementation of the

23 plan contained in the application; and

24 (B) periodically evaluate the effects that

25 implementation of the plan has had on—
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1 (i) individuals who receive benefits

2 under a covered program included in the

3 plan;

4 (ii) communities where such individ5 uals live; and

6 (iii) costs of administering the covered

7 program or programs included in the plan.

8 (2) ANNUAL REPORTS.—Not later than 90 days

9 after the end of the 1-year period beginning on the

10 date the application of a State is approved under

11 this title, and annually thereafter, the State shall

12 submit to the Chairperson a report on the principal

13 activities and achievements under the demonstration

14 project conducted under the plan contained in the

15 application, during the period covered by the report,

16 and the report shall compare those achievements to

17 the objectives and performance criteria included in

18 the plan pursuant to section 102(1)(C).

19 (c) EXPANSION OF SUCCESSFUL DEMONSTRATION

20 PROJECTS AFTER 2 YEARS.—

21 (1) APPLICATION.—If, at any time after the

22 first 2 years of the period for which the Chairperson,

23 under section 103(c)(3), has authorized a State to

24 conduct a demonstration project under this title, the

25 State determines that the project has demonstrated
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1 its worth and proven to be a superior way to provide

2 benefits under the covered program or programs in3 cluded in the plan under which the project has been

4 conducted, and that the project should be expanded

5 geographically or should be available to a larger pop6 ulation, the State may submit to the Chairperson an

7 application to amend the approved application to

8 conduct the project to provide for the expansion of

9 the project to such area or areas of the State, or the

10 availability of the project to such additional cat11 egories of persons in the State, as the State may se12 lect with such modifications to the project as the

13 State may deem appropriate, which shall include a

14 report on the implementation of the project and a

15 full evaluation of the successes and shortcomings of

16 the project and the effects of the project on individ17 uals who receive benefits under such program or

18 programs.

19 (2) EVALUATION AND APPROVAL BY THE

20 CHAIRPERSON.—Upon receipt of an application

21 under paragraph (1) with respect to a demonstration

22 project, the Chairperson shall evaluate the project

23 based on the report included in the application,

24 using the evaluation criteria set forth in the ap25 proved application to conduct the project, and may
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1 approve such amendments to the application as the

2 Chairperson deems appropriate.

3 (d) FINAL REPORT.—Not later than 45 days after

4 the end of the period for which the Chairperson, under

5 section 103(c)(3), has authorized a State to conduct a

6 demonstration project under this title, the State shall sub7 mit to the Chairperson a report on the implementation of

8 the project, which shall include a full evaluation of the

9 successes and shortcomings of the project and the effects

10 of such implementation on individuals who receive benefits

11 under such program or programs.

12 (e) AUTHORITY TO TEMPORARILY OR PERMANENTLY

13 EXTEND SUCCESSFUL DEMONSTRATION PROJECTS.—

14 (1) APPLICATION.—Any State may submit to

15 the Chairperson an application to conduct a dem16 onstration project under this title after the period

17 referred to in subsection (d), for such additional pe18 riod as the State deems appropriate or for an indefi19 nite period.

20 (2) EVALUATION AND APPROVAL BY THE

21 CHAIRPERSON.—Upon receipt of an application

22 under paragraph (1) of this subsection with respect

23 to a demonstration project, the Chairperson shall

24 evaluate the project based on the report submitted

25 with respect to the project under subsection (d),
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1 using the evaluation criteria set forth in the ap2 proved application to conduct the project, and may

3 authorize the State to conduct the project for such

4 additional definite or indefinite period as the Chair5 person deems appropriate.

6 (f) SUSPENSION AND TERMINATION.—

7 (1) IN GENERAL.—The Chairperson may re8 quire a State to suspend or terminate implementa9 tion of part or all of a plan under an application ap10 proved under this title if—

11 (A) the Chairperson finds that the appli12 cant has failed to carry out a covered program

13 in accordance with any applicable provision of

14 law or regulation; or

15 (B) after consultation with the head of

16 each Federal agency responsible for administer17 ing a covered program included in the approved

18 application, the Chairperson determines that

19 the objectives and performance criteria included

20 in the plan pursuant to section 102(1)(C) have

21 not been met.

22 (2) TIMING.—In requiring the implementation

23 of a plan to be terminated under paragraph (1), the

24 Chairperson shall allow a reasonable period of time

25 for appropriate Federal, State, and local agencies to
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1 resume administration of the covered program or

2 programs included in the application that contains

3 the plan.

4 SEC. 105. CONSULTATION REQUIREMENT.

5 (a) IN GENERAL.—A State desiring to submit an ap6 plication under section 102 shall consult with potential

7 participants in accordance with this section.

8 (b) PURPOSE.—Any State submitting an application

9 under this title shall seek the advice of potential partici10 pants in the development and implementation of the plan

11 contained in the application, including with respect to—

12 (1) conducting public hearings;

13 (2) representing the interest of low-income indi14 viduals and families; and

15 (3) reviewing and commenting on all commu16 nity policies, programs, and actions under the plan

17 which affect low-income individuals and families,

18 with the purpose of assuring maximum coordination

19 and responsiveness of the plan in providing benefits

20 under the plan to those individuals and families.

21 (c) PARTICIPANTS.—The State shall select the par22 ticipants in the consultation process, which shall include—

23 (1) eligible welfare recipients, including minori24 ties, who are participants or who qualify to partici25 pate in eligible Federal programs;
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1 (2) persons with leadership experience in the

2 private and voluntary sectors;

3 (3) local elected officials;

4 (4) members of the general public; and

5 (5) individuals and representatives of commu6 nity and business organizations who will help to en7 hance the leadership role of the State in developing

8 a plan.

9 SEC. 106. DEFINITIONS.

10 As used in this title:

11 (1) BOARD.—The term ‘‘Board’’ means the

12 Interagency Waiver Review Board established by

13 section 101.

14 (2) CHAIRPERSON.—The term ‘‘Chairperson’’

15 means the Chairperson of the Board.

16 (3) COVERED PROGRAM.—The term ‘‘covered

17 program’’ means, with respect to a plan, the eligible

18 Federal programs addressed in the plan.

19 (4) ELIGIBLE FEDERAL PROGRAM.—The term

20 ‘‘eligible Federal program’’ means any of the follow21 ing:

22 (A) The program of aid and services to

23 needy families with children under part A of

24 title IV of the Social Security Act.
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1 (B) The food stamp program, as defined in

2 section 3(h) of the Food Stamp Act of 1977.

3 (C) The supplemental security income pro4 gram under title XVI of the Social Security

5 Act.

6 (D) Any program under the Job Training

7 Partnership Act.

8 (E) The program of rental assistance on

9 behalf of low-income families provided under

10 section 8 of the United States Housing Act of

11 1937 (42 U.S.C. 1437f).

12 (F) The program of assistance to public

13 housing under title I of the United States

14 Housing Act of 1937 (42 U.S.C. 1437 et seq.).

15 (G) The program for assistance for afford16 able housing under the HOME Investment

17 Partnerships Act (42 U.S.C. 12721 et seq.).

18 (H) The program of assistance payments

19 on behalf of homeowners under section 235 of

20 the National Housing Act (12 U.S.C. 1715z).

21 (I) The program of interest reduction pay22 ments pursuant to contracts entered into by the

23 Secretary of Housing and Urban Development

24 under section 236 of the National Housing Act

25 (12 U.S.C. 1715z–1).
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1 (J) The program of rent supplement pay2 ments on behalf of qualified tenants pursuant

3 to contracts entered into under section 101 of

4 the Housing and Urban Development Act of

5 1965 (12 U.S.C. 1701s).

6 (K) The program for community develop7 ment block grants under title I of the Housing

8 and Community Development Act of 1974 (42

9 U.S.C. 5301 et seq.).

10 (L) The loan program under section 502 of

11 the Housing Act of 1949 (42 U.S.C. 1472).

12 (M) The program for grants for housing in

13 remote rural areas under section 502(f)(1) of

14 the Housing Act of 1949 (42 U.S.C.

15 1472(f)(1)).

16 (N) The loan and grant programs under

17 section 504 of the Housing Act of 1949 (42

18 U.S.C. 1474) for repairs and improvements to

19 rural dwellings.

20 (O) The program for project preparation

21 grants for housing in underserved rural areas

22 under section 509(f)(6) of the Housing Act of

23 1949 (42 U.S.C. 1479(f)(6)).
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1 (P) The program of loans for rental and

2 cooperative housing under section 515 of the

3 Housing Act of 1949 (42 U.S.C. 1485).

4 (Q) The loan and assistance programs

5 under sections 514 and 516 of the Housing Act

6 of 1949 (42 U.S.C. 1484, 1486) for housing for

7 farm labor.

8 (R) The program of rental assistance pay9 ments pursuant to contracts entered into under

10 section 521(a)(2)(A) of the Housing Act of

11 1949 (42 U.S.C. 1490a(a)(2)(A)).

12 (S) The program of grants and loans for

13 mutual and self-help housing and technical as14 sistance under section 523 of the Housing Act

15 of 1949 (42 U.S.C. 1490c).

16 (T) The program of site loans under sec17 tion 524 of the Housing Act of 1949 (42

18 U.S.C. 1490d).

19 (U) The program of grants for preserva20 tion and rehabilitation of housing under section

21 533 of the Housing Act of 1949 (42 U.S.C.

22 1490m).

23 (V) The program for rural housing voucher

24 assistance under section 542 of the Housing

25 Act of 1949 (42 U.S.C. 1490r).
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1 (W) The program under the Low-Income

2 Energy Assistance Act of 1981 (42 U.S.C.

3 8621 et seq.).

4 (X) The program of block grants to State

5 for social services under title XX of the Social

6 Security Act.

7 (5) STATE.—

8 (A) IN GENERAL.—The term ‘‘State’’

9 means the 50 States, the District of Columbia,

10 Puerto Rico, American Samoa, Guam, and the

11 Virgin Islands.

12 (B) INDIAN TRIBES.—In the case of an eli13 gible Federal program under which assistance

14 is provided with respect to an Indian tribe, the

15 Indian tribal organization is deemed to be a

16 State.

17 SEC. 107. REPORTS.

18 (a) IN GENERAL.—The Comptroller General of the

19 United States shall submit to the Congress 2 reports

20 that—

21 (1) describe the extent to which plans for dem22 onstration projects have been implemented in ac23 cordance with this title;

24 (2) evaluate the effectiveness of covered Federal

25 assistance programs included in such plans; and
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1 (3) include recommendations with respect to

2 whether to continue activities under this title.

3 (b) TIMING.—The Comptroller General shall submit

4 a report under subsection (a) not later than 3 years after

5 the date of the enactment of this Act, and another such

6 report not later than 7 years after such date of enactment.

7 SEC. 108. PAYMENTS TO STATES FOR MOVING AFDC AND

8 SSI RECIPIENTS TO UNSUBSIDIZED PRIVATE

9 EMPLOYMENT.

10 (a) IN GENERAL.—Subject to section 109, the Sec11 retary of Health and Human Services shall make pay12 ments in accordance with subsection (b) of this section

13 to each State with respect to each State resident who, as

14 a result of participation in a demonstration project or

15 projects conducted by the State under this title, ends the

16 receipt of aid to families with dependent children under

17 the State plan approved under part A of title IV of the

18 Social Security Act, or supplemental security income bene19 fits under title XVI of such Act, and becomes employed

20 in an unsubsidized position in the private sector.

21 (b) AMOUNTS AND TIMING OF PAYMENTS.—

22 (1) 6-MONTH PAYMENT.—The Secretary shall

23 pay the State $500 with respect to a State resident

24 described in subsection (a), on the first day after the
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1 resident has been employed for 6 months as de2 scribed in subsection (a).

3 (2) 1-YEAR PAYMENT.—The Secretary shall pay

4 the State $500 with respect to a State resident de5 scribed in subsection (a), on the first day after the

6 resident has been employed for 1 year as described

7 in subsection (a).

8 (3) SUBSEQUENT PAYMENTS.—The Secretary

9 shall pay the State $1,000 with respect to a State

10 resident described in subsection (a), on the first day

11 after each of the 2nd, 3rd, 4th, and 5th years that

12 the resident has been employed as described in sub13 section (a).

14 SEC. 109. SUNSET.

15 Any authority provided under this title shall expire

16 7 years after the date of the enactment of this Act.

17 TITLE II—EXPANSION OF STATE

18 AUTHORITY

19 SEC. 201. AUTHORITY TO CONTRACT WITH PRIVATE ENTI20 TIES FOR CASE MANAGEMENT.

21 Section 402(a) of the Social Security Act (42 U.S.C.

22 602(a)) is amended—

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

24 (44);
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1 (2) by striking the period at the end of para2 graph (45) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (45) the fol4 lowing:

5 ‘‘(46) at the option of the State, provide that

6 the State agency may enter into contracts with pri7 vate parties approved by the State under which such

8 parties will provide case management services for

9 the State program operated under this part.’’.

10 SEC. 202. AUTHORITY TO DETERMINE BENEFITS PAYABLE

11 WITH RESPECT TO CHILDREN CONCEIVED BY

12 AFDC RECIPIENT.

13 Section 402(a) of the Social Security Act (42 U.S.C.

14 602(a)), as amended by section 201 of this Act, is amend15 ed—

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

17 (45);

18 (2) by striking the period at the end of para19 graph (46) and inserting ‘‘; and’’; and

20 (3) by inserting after paragraph (46) the fol21 lowing:

22 ‘‘(47) at the option of the State, provide that

23 the State may establish the amount (if any) of aid

24 payable under the State plan with respect to a child

25 conceived by a recipient of such aid, in accordance
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1 with such rules (and exceptions to such rules) as the

2 State considers appropriate.’’.

3 SEC. 203. AUTHORITY TO NOT TREAT FAMILIES DIF4 FERENTLY BASED ON THE NUMBER OF PAR5 ENTS IN THE HOME.

6 (a) IN GENERAL.—

7 (1) Section 402(a)(41) of the Social Security

8 Act (42 U.S.C. 602(a)(41)) is amended by inserting

9 ‘‘at the option of the State,’’ after ‘‘(41)’’.

10 (2) Section 407(a) of such Act (42 U.S.C.

11 607(a)) is amended by inserting ‘‘at the option of

12 the State,’’ after ‘‘shall,’’.

13 (b) CONFORMING AMDENDMENTS.—

14 (1) Section 402(a)(38)(B) of such Act (42

15 U.S.C. 602(a)(38)(B)) is amended by inserting ‘‘, if

16 the State exerceises the option provided under para17 graph (41),’’ after ‘‘406(a) or’’.

18 (2) Section 406(a)(1) of such Act (42 U.S.C.

19 606(a)(1)) is amended by inserting ‘‘, if a resident

20 of a State that has exercised the option provided

21 under section 402(a)(41),’’ after ‘‘(1) who’’.

22 (3) Section 406(b)(1) of such Act (42 U.S.C.

23 606(b)(1)) is amended by inserting ‘‘, in the case of

24 a State that has exercised the option provided under
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1 section 402(a)(41), after ‘‘mental incapacity of a

2 parent or’’.

3 (4) Section 472(a) of such Act (42 U.S.C.

4 672(a)) is amended by inserting ‘‘, in the case of a

5 State that has exercised the option provided under

6 section 402(a)(41), after ‘‘406(a) or’’.

7 (5) Section 473(a)(2)(A)(i) of such Act (42

8 U.S.C. 672(a)(2)(A)(i)) is amended by inserting ‘‘,

9 in the case of a State that has exercised the option

10 provided under section 402(a)(41), after ‘‘406(a)

11 or’’.

12 SEC. 204. AUTHORITY TO CONTRACT WITH PRIVATE ENTI13 TIES FOR JOB TRAINING.

14 Section 402(a) of the Social Security Act (42 U.S.C.

15 602(a)), as amended by sections 201 and 202 of this Act,

16 is amended—

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

18 (46);

19 (2) by striking the period at the end of para20 graph (47) and inserting ‘‘; and’’; and

21 (3) by inserting after paragraph (47) the fol22 lowing:

23 ‘‘(48) at the option of the State, provide that

24 any entity approved by the State may provide job
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1 training to recipients of aid under the State plan

2 who are—

3 ‘‘(A) required or allowed to participate in

4 the program established by the State under

5 part F; or

6 ‘‘(B) eligible to participate in a program

7 under the Job Training Partnership Act.’’.

8 TITLE III—INDIVIDUAL

9 DEVELOPMENT ACCOUNTS

10 SEC. 301. INDIVIDUAL DEVELOPMENT ACCOUNTS.

11 (a) IN GENERAL.—Part III of subchapter B of chap12 ter 1 of the Internal Revenue Code of 1986 (relating to

13 items specifically excluded from gross income) is amended

14 by redesignating section 137 as section 138 and by insert15 ing after section 136 the following new section:

16 ‘‘SEC. 137. INDIVIDUAL DEVELOPMENT ACCOUNTS.

17 ‘‘(a) EARNINGS EXEMPT FROM TAX.—Except as oth18 erwise provided in this section, an individual development

19 account is exempt from taxation under this subtitle.

20 ‘‘(b) INDIVIDUAL DEVELOPMENT ACCOUNT.—For

21 purposes of this section, the term ‘individual development

22 account’ means a trust created or organized in the United

23 States exclusively for the purpose of paying the qualified

24 expenses of the individual for whom the trust is main-
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1 tained, but only if the written governing instrument creat2 ing the trust meets the following requirements:

3 ‘‘(1) No contribution will be accepted unless—

4 ‘‘(A) the contribution is made by—

5 ‘‘(i) the individual for whom the trust

6 is maintained, or

7 ‘‘(ii) any entity approved by the State

8 for purposes of making matching contribu9 tions to such account on behalf of such in10 dividual,

11 ‘‘(B) such individual, for the taxable year

12 for which such contribution is made, is an eligi13 ble individual,

14 ‘‘(C) the contributions for such taxable

15 year do not exceed the contribution limitations

16 of subsection (d),

17 ‘‘(D) the contribution is in cash, and

18 ‘‘(E) the contribution is made before Janu19 ary 1, 2001.

20 ‘‘(2) The trustee is a bank (as defined in sec21 tion 408(n)) or another person who demonstrates to

22 the satisfaction of the Secretary that the manner in

23 which such person will administer the trust will be

24 consistent with the requirements of this section.
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1 ‘‘(3) No part of the trust assets will be invested

2 in life insurance contracts.

3 ‘‘(4) The assets of the trust will not be commin4 gled with other property except in a common trust

5 fund or common investment fund.

6 ‘‘(5) Any balance in the account on the day

7 after the date on which the individual for whose ben8 efit the trust is established dies will be distributed

9 within 30 days of such date as directed by such indi10 vidual to another individual development account es11 tablished for the benefit of an eligible individual.

12 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this

13 section—

14 ‘‘(1) IN GENERAL.—The term ‘eligible individ15 ual’ means any individual if the individual is a mem16 ber of a household that meets the following require17 ments:

18 ‘‘(A) INCOME TEST.—The income of the

19 household (for the calendar year preceding the

20 calendar year in which the taxable year begins)

21 is not more than 150 percent of the poverty

22 threshold for such period.

23 ‘‘(B) NET WORTH TEST.—The net worth

24 of the household, as of the close of such preced25 ing calendar year, is not more than $10,000.
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1 ‘‘(2) HOUSEHOLD.—The term ‘household’

2 means all individuals who share use of a dwelling

3 unit as primary quarters for living and eating sepa4 rate from other individuals.

5 ‘‘(3) HOUSEHOLD NET WORTH.—

6 ‘‘(A) IN GENERAL.—The term ‘net worth’

7 means, with respect to a household, the aggre8 gate market value of all assets not excluded

9 under subparagraph (B) that are owned in

10 whole or in part by any member of the house11 hold, minus the obligations or debts of any

12 member of the household.

13 ‘‘(B) ASSETS EXCLUDED.—The following

14 assets (and obligations or debts with respect

15 thereto) shall be excluded in determining the

16 net worth of any household:

17 ‘‘(i) $20,000 OF HOME EQUITY.—The

18 lesser of—

19 ‘‘(I) the equity of the members of

20 the household in the dwelling unit in

21 which the members reside; or

22 ‘‘(II) $20,000.

23 ‘‘(ii) MOTOR VEHICLE.—The most

24 valuable motor vehicle owned by any mem25 ber of the household.
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1 ‘‘(iii) FURNITURE; APPLIANCES;

2 CLOTHING.—All furniture, appliances, and

3 clothing used by any member of the house4 hold in the course of daily living.

5 ‘‘(iv) ART OBJECTS.—All art objects

6 displayed in the dwelling unit in which the

7 members of the household reside.

8 ‘‘(v) JEWELRY.—All jewelry owned by

9 any member of the household.

10 ‘‘(vi) INDIVIDUAL DEVELOPMENT AC11 COUNTS.—All individual development ac12 counts of members of the household.

13 ‘‘(4) POVERTY THRESHOLD.—The term ‘pov14 erty threshold’ means, with respect to a calendar

15 year, the Federal poverty line for the calendar year

16 for the relevant family size, as defined annually by

17 the Bureau of the Census.

18 ‘‘(d) CONTRIBUTION LIMITATIONS.—

19 ‘‘(1) IN GENERAL.—The contributions to an in20 dividual development account do not exceed the limi21 tations of this subsection for any taxable year if the

22 contributions for such year do not exceed the lesser

23 of—

24 ‘‘(A) $2,000, or
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1 ‘‘(B) the excess (if any) of $10,000 over

2 the account balance as of the close of the pre3 ceding taxable year.

4 ‘‘(2) WAIVER OF $2,000 LIMIT IN CERTAIN

5 CASES.—Paragraph (1)(A) shall not apply to con6 tributions of lump-sum gains such as inheritances,

7 proceeds from lotteries, insurance payments, or pay8 ments resulting from court proceedings.

9 ‘‘(e) TAX TREATMENT OF DISTRIBUTIONS.—

10 ‘‘(1) IN GENERAL.—Except as otherwise pro11 vided in this subsection, any amount paid or distrib12 uted out of an individual development account shall

13 be included in the gross income of the payee or dis14 tributee for the taxable year in which the payment

15 or distribution is received.

16 ‘‘(2) DISTRIBUTION USED TO PAY QUALIFIED

17 EXPENSES.—Paragraph (1) shall not apply to any

18 payment or distribution out of an individual develop19 ment account to the extent such payment or dis20 tribution is used exclusively to pay the qualified ex21 penses incurred by the eligible individual for whose

22 benefit the account is established.

23 ‘‘(3) QUALIFIED EXPENSES.—For purposes of

24 this section, the term ‘qualified expenses’ means 1 or

25 more of the following:
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1 ‘‘(A) POST-SECONDARY EDUCATION EX2 PENSES.—Post-secondary educational expenses

3 paid from an individual development account di4 rectly to an eligible educational institution. For

5 purposes of this subparagraph—

6 ‘‘(i) IN GENERAL.—The term ‘post7 secondary educational expenses’ means—

8 ‘‘(I) tuition and fees required for

9 the enrollment or attendance of a stu10 dent at an eligible educational institu11 tion,

12 ‘‘(II) fees, books, supplies, and

13 equipment required for courses of in14 struction at an eligible educational in15 stitution, and

16 ‘‘(III) a reasonable allowance for

17 meals, lodging, transportation, and

18 child care, while attending an eligible

19 educational institution.

20 ‘‘(ii) ELIGIBLE EDUCATIONAL INSTI21 TUTION.—The term ‘eligible educational

22 institution’ means the following:

23 ‘‘(I) INSTITUTION OF HIGHER

24 EDUCATION.—An institution described

25 in section 481(a)(1) or 1201(a) of the
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1 Higher Education Act of 1965 (20

2 U.S.C. 1088(a)(1) or 1141(a)), as

3 such sections are in effect on the date

4 of the enactment of this section.

5 ‘‘(II) POSTSECONDARY VOCA6 TIONAL EDUCATION SCHOOL.—An

7 area vocational education school (as

8 defined in subparagraph (C) or (D) of

9 section 521(4) of the Carl D. Perkins

10 Vocational and Applied Technology

11 Education Act (20 U.S.C. 2471(4)))

12 which is in any State (as defined in

13 section 521(33) of such Act), as such

14 sections are in effect on the date of

15 the enactment of this section.

16 ‘‘(B) FIRST-HOME PURCHASE.—Qualified

17 acquisition costs with respect to a qualified

18 principal residence for a qualified first-time

19 homebuyer, if paid from an individual develop20 ment account directly to the persons to whom

21 the amounts are due. For purposes of this sub22 paragraph—

23 ‘‘(i) QUALIFIED ACQUISITION

24 COSTS.—The term ‘qualified acquisition

25 costs’ means the costs of acquiring, con-
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1 structing, or reconstructing a residence.

2 The term includes any usual or reasonable

3 settlement, financing, or other closing

4 costs.

5 ‘‘(ii) QUALIFIED PRINCIPAL RESI6 DENCE.—The term ‘qualified principal res7 idence’ means a principal residence (within

8 the meaning of section 1034), the qualified

9 acquisition costs of which do not exceed

10 110 percent of the average area purchase

11 price applicable to such residence (deter12 mined in accordance with paragraphs (2)

13 and (3) of section 143(e)).

14 ‘‘(iii) QUALIFIED FIRST-TIME HOME15 BUYER.—

16 ‘‘(I) IN GENERAL.—The term

17 ‘qualified first-time homebuyer’ means

18 a taxpayer (and, if married, the tax19 payer’s spouse) who has no present

20 ownership interest in a principal resi21 dence during the 3-year period ending

22 on the date of acquisition of the prin23 cipal residence to which this subpara24 graph applies.
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1 ‘‘(II) DATE OF ACQUISITION.—

2 The term ‘date of acquisition’ means

3 the date on which a binding contract

4 to acquire, construct, or reconstruct

5 the principal residence to which this

6 subparagraph applies is entered into.

7 ‘‘(C) BUSINESS CAPITALIZATION.—

8 Amounts paid from an individual development

9 account directly to a business capitalization ac10 count which is established in a federally insured

11 financial institution and is restricted to use

12 solely for business capitalization expenses. For

13 purposes of this subparagraph—

14 ‘‘(i) QUALIFIED BUSINESS CAPITAL15 IZATION EXPENSES.—The term ‘qualified

16 business capitalization expenses’ means

17 qualified expenses for the capitalization of

18 a qualified business pursuant to a qualified

19 plan.

20 ‘‘(ii) QUALIFIED EXPENSES.—The

21 term ‘qualified expenses’ means expenses

22 included in a qualified plan, including cap23 ital plant, equipment, working capital, and

24 inventory expenses.
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1 ‘‘(iii) QUALIFIED BUSINESS.—The

2 term ‘qualified business’ means any busi3 ness that does not contravene any law or

4 public policy (as determined by the Sec5 retary).

6 ‘‘(iv) QUALIFIED PLAN.—The term

7 ‘qualified plan’ means a business plan

8 which—

9 ‘‘(I) is approved by a financial in10 stitution, or by a nonprofit loan fund

11 having demonstrated fiduciary integ12 rity,

13 ‘‘(II) includes a description of

14 services or goods to be sold, a market15 ing plan, and projected financial

16 statements, and

17 ‘‘(III) may require the eligible in18 dividual to obtain the assistance of an

19 experienced entrepreneurial advisor.

20 ‘‘(D) RETIREMENT EXPENSES.—Expenses

21 for which amounts may be distributed from an

22 individual retirement plan, subject to the same

23 requirements and limitations as apply to such

24 amounts.
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1 ‘‘(E) TRANSFERS TO IDA’S OF FAMILY

2 MEMBERS.—Amounts paid from an individual

3 development account directly into another such

4 account established for the benefit of an eligible

5 individual who is—

6 ‘‘(i) the taxpayers spouse, or

7 ‘‘(ii) any dependent of the taxpayer

8 with respect to whom the taxpayer is al9 lowed a deduction under section 151.

10 ‘‘(F) EMERGENCY NEEDS.—Expenses as11 sociated with—

12 ‘‘(i) job loss due to workforce reduc13 tion,

14 ‘‘(ii) bankruptcy,

15 ‘‘(iii) business closure,

16 ‘‘(iv) death of a spouse or dependent,

17 and

18 ‘‘(v) medical care for a spouse or de19 pendent who is not eligible to receive as20 sistance under a State plan under title

21 XIX of the Social Security Act (relating to

22 Medicaid).

23 Paragraph (2) shall apply to amounts paid

24 from an individual development account by rea25 son of expenses described in this subparagraph
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1 only to the extent that the aggregate of such

2 amounts does not exceed an amount equal to 20

3 percent of the balance in such account as of the

4 close of the preceding calendar year.

5 ‘‘(f) SPECIAL RULES.—

6 ‘‘(1) ACCOUNT MAY NOT BE ESTABLISHED FOR

7 BENEFIT OF MORE THAN 1 INDIVIDUAL.—An indi8 vidual development account may not be established

9 for the benefit of more than 1 individual.

10 ‘‘(2) ELIGIBLE INDIVIDUAL TREATED AS ELIGI11 BLE INDIVIDUAL ONLY WITH RESPECT TO 1 AC12 COUNT.—If, at any time during a calendar year, 2

13 or more individual development accounts are main14 tained for the benefit of an eligible individual, such

15 individual shall be treated as an eligible individual

16 for the calendar year only with respect to the 1st of

17 such accounts.

18 ‘‘(3) TIME WHEN CONTRIBUTIONS DEEMED

19 MADE.—A taxpayer shall be deemed to have made a

20 contribution on the last day of the preceding taxable

21 year if the contribution is made on account of such

22 taxable year and is made not later than the time

23 prescribed by law for filing the return for such tax24 able year (including extensions thereof).
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1 ‘‘(4) LIMITATION ON EXEMPTION FROM TAX.—

2 Notwithstanding subsection (a), any individual devel3 opment account is subject to the taxes imposed by

4 section 511 (relating to imposition of tax on unre5 lated business income of charitable, etc. organiza6 tions).

7 ‘‘(5) LOSS OF EXEMPTION OF ACCOUNT WHERE

8 INDIVIDUAL ENGAGES IN PROHIBITED TRANS9 ACTION.—

10 ‘‘(A) IN GENERAL.—If the individual for

11 whose benefit an individual development ac12 count is established engages in any transaction

13 prohibited by section 4975 with respect to the

14 account, the account shall cease to be an indi15 vidual development account as of the 1st day of

16 the taxable year (of the individual so engaging

17 in such transaction) during which such trans18 action occurs.

19 ‘‘(B) ACCOUNT TREATED AS DISTRIBUTING

20 ALL ITS ASSETS.—In any case in which any ac21 count ceases to be an individual development

22 account by reason of subparagraph (A) as of

23 the 1st day of any taxable year, paragraph (1)

24 of subsection (e) shall apply as if there were a

25 distribution on such 1st day in an amount equal
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1 to the fair market value of all assets in the ac2 count on such 1st day.

3 ‘‘(6) EFFECT OF PLEDGING ACCOUNT AS SECU4 RITY.—If, during any taxable year, the individual for

5 whose benefit an individual development account is

6 established uses the account or any portion thereof

7 as security for a loan, the portion so used shall be

8 treated as distributed to the individual so using such

9 portion.

10 ‘‘(g) CUSTODIAL ACCOUNTS.—For purposes of this

11 section, a custodial account shall be treated as a trust if

12 the assets of such account are held by a bank (as defined

13 in section 408(n)) or another person who demonstrates,

14 to the satisfaction of the Secretary, that the manner in

15 which he will administer the account will be consistent

16 with the requirements of this section, and if the custodial

17 account would, except for the fact that it is not a trust,

18 constitute an individual development account described in

19 subsection (b). For purposes of this title, in the case of

20 a custodial account treated as a trust by reason of the

21 preceding sentence, the custodian of such account shall be

22 treated as the trustee thereof.

23 ‘‘(h) REPORTS.—The trustee of an individual devel24 opment account shall prepare reports regarding the ac25 count with respect to contributions, distributions, and any
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1 other matter required by the Secretary under regula2 tions.’’

3 (b) TAX ON PROHIBITED TRANSACTIONS.—Section

4 4975 of such Code (relating to prohibited transactions)

5 is amended—

6 (1) by adding at the end of subsection (c) the

7 following new paragraph:

8 ‘‘(4) SPECIAL RULE FOR INDIVIDUAL DEVELOP9 MENT ACCOUNTS.—An individual for whose benefit

10 an individual development account is established and

11 any contributor to such account shall be exempt

12 from the tax imposed by this section with respect to

13 any transaction concerning such account (which

14 would otherwise be taxable under this section) if,

15 with respect to such transaction, the account ceases

16 to be an individual development account by reason

17 of the application of section 137(f)(5)(A) to such ac18 count.’’, and

19 (2) by inserting ‘‘, an individual development

20 account described in section 137(b),’’ in subsection

21 (e)(1) after ‘‘described in section 408(a)’’.

22 (c) FAILURE TO PROVIDE REPORTS ON INDIVIDUAL

23 DEVELOPMENT ACCOUNTS.—Section 6693 of such Code

24 (relating to failure to provide reports on individual retire25 ment accounts or annuities) is amended—
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1 (1) by inserting ‘‘OR ON INDIVIDUAL DEVEL2 OPMENT ACCOUNTS’’ after ‘‘ANNUITIES’’ in the

3 heading of such section, and

4 (2) by adding at the end of subsection (a) the

5 following new sentence: ‘‘The person required by sec6 tion 137(h) to file a report regarding an individual

7 development account at the time and in the manner

8 required by such section shall pay a penalty of $50

9 for each failure, unless it is shown that such failure

10 is due to reasonable cause.’’

11 (d) SPECIAL RULE FOR DETERMINING AMOUNTS OF

12 SUPPORT FOR DEPENDENT.—Subsection (b) of section

13 152 of such Code (relating to definition of dependent) is

14 amended by adding at the end the following new para15 graph:

16 ‘‘(6) A distribution from an individual develop17 ment account described in section 137(b) to the indi18 vidual for whose benefit such account has been es19 tablished shall not be taken into account in deter20 mining support for purposes of this section to the

21 extent such distribution is excluded from gross in22 come of such individual under section 137(e)(2).’’

23 (g) CLERICAL AMENDMENTS.—

24 (1) The table of sections for part III of sub25 chapter B of chapter 1 of such Code is amended by
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1 striking the item relating to section 137 and insert2 ing the following new items:

‘‘Sec. 137. Individual development accounts.

‘‘Sec. 138. Cross references to other Acts.’’

3 (2) The table of sections for subchapter B of

4 chapter 68 of such Code is amended by striking the

5 item relating to section 6693 and inserting the fol6 lowing new item:

‘‘Sec. 6693. Failure to provide reports on individual retirement

accounts or annuities or on individual development

accounts.’’

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

8 this section shall apply to contributions made after De9 cember 31, 1994.

10 TITLE IV—OTHER ASSET

11 REFORMS

12 SEC. 401. INCREASE IN ASSET LIMIT.

13 (a) IN GENERAL.—Section 402(a)(7)(B) of the So14 cial Security Act (42 U.S.C. 602(a)(7)(B)) is amended by

15 striking ‘‘$1,000 or such lower amount as the State may

16 determine’’ and inserting ‘‘the resource threshold (as de17 fined in subsection (d)) for the calendar year in which the

18 month occurs’’.

19 (b) RESOURCE THRESHOLD.—Section 402 of such

20 Act (42 U.S.C. 602) is amended by inserting after sub21 section (c) the following:
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1 ‘‘(d) As used in section 402(a)(7)(B), the term ‘re2 source threshold’ means, with respect to a calendar year,

3 $1,580, multiplied by the percentage (if any) by which—

4 ‘‘(1) the average of the Consumer Price Index

5 (as defined in section 1(f)(5) of the Internal Reve6 nue Code of 1986) for the 12-month period ending

7 on December 31 of the immediately preceding cal8 endar year; exceeds

9 ‘‘(2) the average of the Consumer Price Index

10 (as so defined) for the 12-month period ending on

11 December 31, 1994.

12 SEC. 402. NEW LIMIT ON EQUITY IN AUTOMOBILE.

13 Section 402(a)(7)(B)(i) of the Social Security Act

14 (42 U.S.C. 602(a)(7)(B)(i)) is amended by striking ‘‘such

15 amount as the Secretary may prescribe’’ and inserting

16 ‘‘$5,000’’.

17 SEC. 403. EARNED INCOME AND INDIVIDUAL DEVELOP18 MENT ACCOUNTS OF DEPENDENT CHILDREN

19 TO BE DISREGARDED IN DETERMINING ELI20 GIBILITY FOR AID TO FAMILIES WITH DE21 PENDENT CHILDREN.

22 (a) RESOURCE DISREGARDS.—Section 402(a)(7)(B)

23 of the Social Security Act (42 U.S.C. 602(a)(7)(B)) is

24 amended—
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1 (1) by striking ‘‘or’’ at the end of clause (iii);

2 and

3 (2) by inserting ‘‘(v) any earned income of such

4 child, and any amount in an individual development

5 account established for such child pursuant to sec6 tion 137 of the Internal Revenue Code of 1986’’ be7 fore the semicolon.

8 (b) INCOME DISREGARDS.—Section 402(a)(8)(A) of

9 the Social Security Act (42 U.S.C. 602(a)(8)(A)) is

10 amended—

11 (1) by striking ‘‘and’’ at the end of clause (vii);

12 and

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

14 ‘‘(viii) shall disregard all of the earned in15 come of each dependent child applying for aid

16 under the State plan, all interest earned on

17 amounts deposited in, and all distributions

18 from, an individual development account estab19 lished for a dependent child pursuant to section

20 137 of the Internal Revenue Code of 1986;

21 and’’.
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1 SEC. 404. EXCLUSION OF CERTAIN INCOME FROM CONSID2 ERATION FOR PURPOSES OF PUBLIC HOUS3 ING RENT DETERMINATIONS.

4 Section 3(b)(5) of the United States Housing Act of

5 1937 (42 U.S.C. 1437a(b)(5)) is amended—

6 (1) in subparagraph (F), by striking ‘‘and’’ at

7 the end;

8 (2) in subparagraph (G), by striking the period

9 and inserting ‘‘; and’’; and

10 (3) by adding at the end the following new sub11 paragraph:

12 ‘‘(H) in the case of a family residing in public

13 housing—

14 ‘‘(i) any earned income of any dependent

15 who is less than 18 years of age; and

16 ‘‘(ii) any interest earned on amounts de17 posited in an individual development account

18 established pursuant to section 137 of the In19 ternal Revenue Code of 1986.’’.

20 SEC. 405. INDIVIDUAL DEVELOPMENT ACCOUNTS TO BE

21 DISREGARDED IN DETERMINING ELIGIBILITY

22 FOR AND AMOUNT OF BENEFITS UNDER WEL23 FARE PROGRAMS.

24 Amounts in individual development accounts estab25 lished pursuant to section 137 of the Internal Revenue

26 Code of 1986 shall be disregarded in determining eligi-
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1 bility for, and the amount of benefits or kinds of services

2 to be provided under any Federal or federally assisted pro3 gram eligibility for which is based, in whole or in part,

4 on need.

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