I

103D CONGRESS

2D SESSION H. R. 4767

To reform the welfare system.

IN THE HOUSE OF REPRESENTATIVES

JULY 14, 1994

Mr. MATSUI (for himself, Mr. MILLER of California, Mr. BECERRA, Mrs.

CLAYTON, Mr. CLYBURN, Mr. FILNER, Mr. FRANK of Massachusetts, Ms.

E.B. JOHNSON of Texas, Mr. KOPETSKI, Mr. MCDERMOTT, Ms. MCKINNEY, Mr. MINETA, Ms. NORTON, Mr. RAHALL, Mr. RANGEL, Ms. ROYBAL-ALLARD, Mr. RUSH, Mr. SABO, Ms. VELA ́ZQUEZ, and Mr. WAXMAN)

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

on Ways and Means, Education and Labor, Energy and Commerce,

Banking, Finance and Urban Affairs, Foreign Affairs, Veterans’ Affairs,

and Agriculture

A BILL

To reform the welfare system.

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 ‘‘Family Self-Sufficiency

5 Act of 1994’’.

6 SEC. 2. AMENDMENT OF SOCIAL SECURITY ACT.

7 Except as otherwise expressly provided, wherever in

8 this Act an amendment or repeal is expressed in terms
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1 of an amendment to, or repeal of, a section or other provi2 sion, the reference shall be considered to be made to a

3 section or other provision of the Social Security Act.

4 SEC. 3. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Amendment of Social Security Act.

Sec. 3. Table of contents.

TITLE I—PROMOTION OF WORK AND SELF-SUFFICIENCY

Subtitle A—Expansion of Funding for, and Participation in, the JOBS

Program

Sec. 101. Increase in JOBS program funding.

Sec. 102. Increase in JOBS matching rate.

Sec. 103. JOBS participation requirements.

Sec. 104. Preliminary assessment of self-sufficiency needs within 30 days after

approval of AFDC application.

Subtitle B—Job Creation, Job Placement and Development, and Work

Requirements

Sec. 111. Public jobs creation program.

Sec. 112. Expansion of job placement, job development, and job retention activities.

Sec. 113. Self-employment programs.

Sec. 114. Provisions generally applicable to the JOBS program.

Subtitle C—Support for Working Families

Sec. 121. End dollar-for-dollar work penalty.

Sec. 122. Increase in limitation on total family income.

Sec. 123. Availability of health care for poor working families.

Sec. 124. Elimination of different treatment of 2-parent families.

Sec. 125. Increase in stepparent income disregard.

Subtitle D—Child Care

Sec. 131. Increase in child care funds.

Sec. 132. Payments to encourage use of entire State allotment for at-risk child

care.

Sec. 133. Limitation on carryforward of unused at-risk child care allotments.

Sec. 134. Payment of local market rates.

Sec. 135. Set-aside for improvement of infrastructure and quality.

Sec. 136. Child care for working AFDC parents.

Sec. 137. Health and safety standards; continuity of care.

Sec. 138. Periodic identification of child care needs; ensuring that families understand child care alternatives.

Sec. 139. Ensuring that reimbursement mechanisms meet family needs.

Sec. 140. Facilitation of seamless services.
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Sec. 141. Authority to provide for continuity of child care.

Sec. 142. Child care for families including a caretaker relative not receiving

AFDC.

Sec. 143. State option to extend transitional child care benefits.

Sec. 144. State option to provide transitional child care benefits to families who

have received AFDC for fewer than 3 months.

Sec. 145. Limitation of at-risk child care to families ineligible for recipient or

transitional child care.

Sec. 146. Elimination of requirement that family receiving transitional child

care benefits include a dependent child.

Sec. 147. State option to waive contribution requirement for families with income below the poverty level.

Sec. 148. Continuation of child care during dispute resolution.

Sec. 149. Option to consolidate State responsibility for child care.

TITLE II—STRENGTHENING PARENTAL RESPONSIBILITY AND

FAMILY STABILITY

Subtitle A—Federal Responsibilities

Sec. 201. Expansion of functions of Federal Parent Locator Service.

Sec. 202. Expansion of Federal parent locator systems.

Sec. 203. Federal child support order registry.

Sec. 204. National reporting of employees and child support information.

Sec. 205. Federal matching payments.

Sec. 206. Performance-based incentives and penalties.

Sec. 207. Increased Federal financial participation for States with unified child

support enforcement programs.

Sec. 208. New child support audit process.

Sec. 209. National Child Support Guidelines Commission.

Sec. 210. Child Support Audit Advisory Committee.

Subtitle B—Paternity Establishment

Sec. 211. Paternity establishment procedures.

Sec. 212. Enhancing outreach to encourage paternity establishment.

Sec. 213. Strengthening civil procedures for paternity establishment.

Sec. 214. Penalty for failure to establish paternity promptly.

Subtitle C—Enforcement

Sec. 221. Access to financial records.

Sec. 222. Presumed address of obligor and obligee.

Sec. 223. Fair Credit Reporting Act amendment.

Sec. 224. Additional benefits subject to garnishment.

Sec. 225. Hold on occupational, professional, and business licenses.

Sec. 226. Driver’s licenses and vehicle registrations denied to persons failing to

appear in child support cases.

Sec. 227. Liens.

Sec. 228. Fraudulent transfer pursuit.

Sec. 229. Reporting of child support arrearages to credit bureaus.

Sec. 230. Denial of passports to noncustodial parents subject to State arrest

warrants in cases of nonpayment of child support.

Sec. 231. Statutes of limitation.

Sec. 232. Collection of past-due support using tax collection authority.

Subtitle D—State Responsibilities
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Sec. 241. State role.

Sec. 242. Uniform terms in orders.

Sec. 243. States required to enact the Uniform Interstate Family Support Act.

Sec. 244. Expedited processes and administrative procedures.

Sec. 245. Due process.

Sec. 246. Outreach and accessibility.

Sec. 247. Cost-of-living adjustment of child support awards.

Sec. 248. Simplified process for review and adjustment of certain child support

orders.

Sec. 249. Prevention of conflicts of interest.

Sec. 250. Staffing.

Sec. 251. Training.

Sec. 252. Priorities in distribution of collected child support.

Sec. 253. Teen noncustodial parents and child support.

Subtitle E—Demonstrations

Sec. 261. Establishment of child support assurance demonstration projects.

Subtitle F—Miscellaneous

Sec. 271. Technical correction to ERISA definition of medical child support

order.

TITLE III—TEEN PARENTS AND WELFARE REFORM

Subtitle A—Family

Sec. 301. Minor teen parent residency requirement.

Sec. 302. Benefits increased by $50 for paternity establishment or establishment of child support order.

Subtitle B—Education and Employment

Sec. 311. Schooling and employment requirements.

Sec. 312. Summer activities and teen earnings.

Sec. 313. Planning, startup, and reporting.

Sec. 314. Child care for non-AFDC teen parents.

Subtitle C—Case Management

Sec. 321. Case management.

Subtitle D—Demonstration Projects

Sec. 331. Adolescent pregnancy prevention grants.

Sec. 332. Demonstration projects to provide comprehensive services to prevent

adolescent pregnancy in high-risk communities.

TITLE IV—WAIVERS

Sec. 401. Funding for waivers that are not cost neutral.

TITLE V—IMPROVING GOVERNMENT ASSISTANCE

Subtitle A—AFDC Amendments

Sec. 501. Requirement that needs standards reflect the cost of essential items.

Sec. 502. Maintenance of minimum benefit levels.
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Sec. 503. Optional supplementation of benefits for families subject to retrospective budgeting.

Sec. 504. Income disregards.

Sec. 505. Increase in resource limit.

Sec. 506. Exclusions from resources.

Sec. 507. Verification of status of citizens and aliens.

Sec. 508. Calculation of 185 percent of need standard.

Sec. 509. Payments to the territories.

Subtitle B—Food Stamp Act Amendments

Sec. 511. Inconsequential income.

Sec. 512. Educational assistance.

Sec. 513. Training stipends and allowances; income from on-the-job training

programs.

Sec. 514. Earned income tax credits.

Sec. 515. Resources necessary for self-employment.

Sec. 516. Lump-sum payments for medical expenses or replacement of lost resources.

Sec. 517. Conforming amendment.

TITLE VI—EFFECTIVE DATE

Sec. 601. Effective date.

1 TITLE I—PROMOTION OF WORK

2 AND SELF-SUFFICIENCY

3 Subtitle A—Expansion of Funding

4 for, and Participation in, the

5 JOBS Program

6 SEC. 101. INCREASE IN JOBS PROGRAM FUNDING.

7 Section 403(k)(3) (42 U.S.C. 603(k)(3)) is amended

8 by striking subparagraphs (E) and (F) and inserting the

9 following:

10 ‘‘(E) $1,590,000,000 in the case of the fiscal

11 year 1995,

12 ‘‘(F) $2,080,000,000 in the case of the fiscal

13 year 1996,
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1 ‘‘(G) $2,620,000,000 in the case of the fiscal

2 year 1997,

3 ‘‘(H) $3,160,000,000 in the case of the fiscal

4 year 1998, and

5 ‘‘(I) $3,700,000,000 in the case of the fiscal

6 year 1999.’’.

7 SEC. 102. INCREASE IN JOBS MATCHING RATE.

8 (a) AMOUNT OF STATE’S ENTITLEMENT FOR

9 JOBS.—Paragraphs (1) and (2) of section 403(k) (42

10 U.S.C. 603(k)) are amended to read as follows:

11 ‘‘(k)(1) In addition to payments under subsection (a),

12 the Secretary shall pay to each State with a plan approved

13 under part F an amount equal to the product of—

14 ‘‘(A) the State’s enhanced Federal medical as15 sistance percentage as defined in paragraph (7), and

16 ‘‘(B) the State’s expenditures to carry out the

17 program under part F (other than expenditures re18 quired by section 402(g)(1)(A) in the case of the 50

19 States and the District of Columbia),

20 but payments to a State under this title for any fiscal year

21 for such activities may not exceed the limitation under

22 paragraph (2) with respect to such State.

23 ‘‘(2) The limitation under this paragraph with re24 spect to a State for any fiscal year is the amount that

25 bears the same ratio to the amount specified in paragraph
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1 (3) for the fiscal year as the average monthly number of

2 adult recipients (as defined in paragraph (4)) in the State

3 in the immediately preceding fiscal year bears to the aver4 age monthly number of such recipients in all the States

5 for the immediately preceding year.’’.

6 (b) PROVISIONS APPLICABLE TO JOBS AND CHILD

7 CARE FUNDING.—Section 403(k) (42 U.S.C. 603(k)) is

8 amended by adding at the end the following:

9 ‘‘(6) If the sum of the amount specified in any fiscal

10 year under paragraph (3) exceeds (or if the Secretary esti11 mates that it will exceed) the total amount paid (or esti12 mated to be payable) under paragraph (1) for the fiscal

13 year, then the Secretary shall adjust the maximums appli14 cable to payments to those States to which the limits

15 under such subsections have made additional payment un16 available under paragraph (1), and to which payments for

17 such fiscal year under either or both such paragraphs

18 would be greater but for the applicability to such States

19 of such limits. The Secretary shall by regulation provide

20 for the equitable adjustment of such limits in the case

21 where all States’ requests for adjustment of limits, and

22 additional payments, for a fiscal year under this para23 graph exceed the amount available for reallotment.

24 ‘‘(7) As used in this part, a ‘State’s enhanced Federal

25 medical assistance percentage’ with respect to expendi-
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1 tures for a fiscal year means such State’s Federal medical

2 assistance percentage as defined in section 1905(b) (or,

3 where applicable as defined in the last sentence of section

4 1118), plus

5 ‘‘(A) 5 percentage points, but not less than 65

6 percent, with respect to fiscal years 1996 and 1997,

7 ‘‘(B) 7 percentage points, but not less than 67

8 percent, with respect to fiscal year 1998,

9 ‘‘(C) 9 percentage points, but not less than 69

10 percent, with respect to fiscal year 1999, and

11 ‘‘(D) 10 percentage points, but not less than 70

12 percent, with respect to fiscal year 2000, and each

13 fiscal year thereafter.’’.

14 (c) SPECIAL RULE.—Section 403 (42 U.S.C. 603),

15 as amended by section 132 of this Act, is amended by add16 ing at the end the following:

17 ‘‘(p) Notwithstanding the preceding provisions of this

18 section, the percentage applicable to a State for purposes

19 of section 402(g)(3)(A) and subsections (k)(1)(A) and

20 (n)(1)(A) (for determining the Federal payment with re21 spect to a State’s expenditures under part F and its child

22 care expenditures, respectively) shall be the State’s Fed23 eral medical assistance percentage, but not less than 60

24 percent (or, in the case of section 402(g)(3)(A) and sub25 section (n)(1)(A), the State’s Federal medical assistance
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1 percentage) for any fiscal year in which the nonfederal

2 share of the sum of its expenditures that may be included

3 for purposes of subsection (a)(3) and its expenditures for

4 its program under part F and child care services under

5 subsections (g) and (i) of section 402 (not included under

6 subsection (a)(3)) is less than the nonfederal share of ex7 penditures for purposes of subsection (a)(3) and of ex8 penditures (for which Federal matching was provided)

9 under its program under part F and child care services

10 (not included under subsection (a)(3)) under subsections

11 (g) and (i) of section 402 for fiscal year 1994 (or fiscal

12 year 1993 if such nonfederal share were greater for such

13 year).

14 (d) CONFORMING AMENDMENTS.—

15 (1) Section 402(g)(3)(A)(i) (42 U.S.C.

16 602(g)(3)(A)(i) is amended by striking ‘‘Federal

17 medical assistance percentage (as defined in section

18 1905(b))’’ and inserting ‘‘State’s enhanced Federal

19 medical assistance percentage (as defined in section

20 403(k)(7))’’.

21 (2) Section 402(g)(3)(A)(ii) (42 U.S.C.

22 602(g)(3)(A)(ii)) is amended by striking ‘‘Federal

23 medical assistance percentage (as defined in section

24 1118)’’ and inserting ‘‘State’s enhanced Federal
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1 medical assistance percentage (as defined in section

2 403(k)(7))’’.

3 (3) Section 403(n)(1)(A) (42 U.S.C.

4 603(n)(1)(A)) is amended by striking ‘‘the Federal

5 medical assistance percentage as defined in section

6 1905(b))’’ and inserting ‘‘the State’s enhanced Fed7 eral medical assistance percentage (as defined in

8 subsection (k)(7))’’.

9 SEC. 103. JOBS PARTICIPATION REQUIREMENTS.

10 (a) PARTICIPATION RATES COMBINED.—

11 (1) IN GENERAL.—Section 403(l)(3)(A) (42

12 U.S.C. 603(l)(3)(A)) is amended—

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

14 (v);

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

16 clause (vi) and inserting ‘‘; and’’; and

17 (C) by adding at the end the following:

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

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

20 ‘‘(ix) 40 percent, if such year is 1998; and

21 ‘‘(x) 50 percent, if such year is 1999.’’.

22 (2) ELIMINATION OF SEPARATE AFDC-UP PAR23 TICIPATION RATES.—Section 403(l) (42 U.S.C.

24 603(l)) is amended by striking paragraph (4).
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1 (b) DEFINITION OF PARTICIPATION.—Section

2 403(l)(3)(D) (42 U.S.C. 603(l)(3)(D)) is amended—

3 (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and

4 (2) by adding after and below the end the fol5 lowing:

6 ‘‘(ii) Each hour of classroom instruction of an indi7 vidual who is enrolled in a degree program offered by an

8 institution of higher education (as defined in section

9 1201(a) of the Higher Education Act of 1965) or in such

10 other education or training programs that require sub11 stantial outside classroom preparation (which programs

12 shall be designated by the Secretary in regulations) shall

13 be considered 2 hours of participation in the State pro14 gram established under part F.

15 ‘‘(iii) Each hour spent by an individual in

16 unsubsidized employment shall be considered 1 hour of

17 participation by the individual in the State program estab18 lished under part F.

19 ‘‘(iv) Each hour of employment of an individual who

20 has become ineligible for aid under the State plan ap21 proved under this part and whose income (plus the other

22 income of the family of the individual) are sufficient to

23 make the individual ineligible for such aid shall be consid24 ered 1 hour of participation by the individual in the State

25 program established under part F, until the end of the
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1 6-month period that begins with the date the ineligibility

2 begins.

3 ‘‘(v) Each hour spent by an individual in a self-em4 ployment program referred to in section

5 482(d)(1)(A)(ii)(VI) shall be considered 1 hour of partici6 pation by the individual in the State program established

7 under part F.

8 ‘‘(vi) Each hour spent by an individual in a parenting

9 education program approved by the State shall be consid10 ered 1 hour of participation by the individual in the State

11 program established under part F.’’.

12 (c) SCHEDULE OF PENALTIES FOR FAILURE TO

13 MEET REQUIRED PARTICIPATION RATE.—Section

14 403(l)(3) (42 U.S.C. 603(l)(3)) is amended—

15 (1) in subparagraph (A), by striking all that

16 precedes clause (i) and inserting the following:

17 ‘‘(3)(A) Each State’s participation rate (determined

18 under subparagraph (B)) for a fiscal year shall be not less

19 than—’’; and

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

21 follows:

22 ‘‘(E)(i) The Secretary shall, by regulation, prescribe

23 a set of penalties for noncompliance with subparagraph

24 (A), which shall take into consideration—

25 ‘‘(I) the extent of the noncompliance;
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1 ‘‘(II) whether the job entry rate (as defined by

2 the Secretary in regulations) of the State exceeds

3 the average job entry rate for the States operating

4 programs under part F); and

5 ‘‘(III) any special circumstances.

6 ‘‘(ii) Notwithstanding any regulation prescribed

7 under clause (i) of this subparagraph, if a State substan8 tially fails to comply with subparagraph (A) of this para9 graph for a fiscal year, then the Secretary—

10 ‘‘(I) shall pay to a State an amount equal to 50

11 percent (in lieu of any different percentage specified

12 in paragraph (1)(A)) of the expenditures made by

13 the State in the immediately succeeding fiscal year

14 in operating its program under part F; and

15 ‘‘(II) until the Secretary determines that the

16 substantial failure to comply has ceased—

17 ‘‘(aa) may suspend or terminate any waiv18 er granted under section 1115 of compliance by

19 the State with a requirement of section 402 ;

20 and

21 ‘‘(bb) may not grant any such waiver to

22 the State under section 1115.’’.

23 (d) SEPARATE PARTICIPATION REQUIREMENT FOR

24 WORK ACTIVITIES.—Section 403(l) (42 U.S.C. 603(l)) is

25 amended by inserting after paragraph (3) the following:
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1 ‘‘(4)(A)(i) Notwithstanding paragraph (1), the Sec2 retary shall pay to a State an amount equal to 50 percent

3 of the expenditures made by such State in a fiscal year

4 in operating its program established under part F (in lieu

5 of any different percentage specified in paragraph (1)(A))

if less than 1 6 ⁄2 of the State’s participation rate (deter7 mined under paragraph (3)(B)) for the preceding fiscal

8 year is attributable to individuals engaged in—

9 ‘‘(I) unsubsidized employment;

10 ‘‘(II) on-the-job training;

11 ‘‘(III) activities under a work supplementation

12 program operated under section 482(e);

13 ‘‘(IV) public service employment;

14 ‘‘(V) a community work experience program es15 tablished in accordance with section 482(f);

16 ‘‘(VI) an alternative work experience program;

17 or

18 ‘‘(VII) a self-employment program referred to

19 in section 482(d)(1)(A)(ii)(VI).

20 ‘‘(ii)(I) Not more than 6 months of participation in

21 a program referred to in subclause (V) or (VI) of clause

22 (i) may be taken into account under clause (i) in the case

23 of a participant who has little or no recent work history.

24 ‘‘(II) Not more than 90 days of participation in a

25 program referred to in subclause (V) or (VI) of clause (i)
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1 may be taken into account under clause (i) if the work

2 experience provided by the program is designed to provide

3 experience in a specific occupation in accordance with the

4 employability plan developed for the participant.

5 ‘‘(B) Subparagraph (A) shall not apply to a State for

a fiscal year if the State demonstrates that at least 1 6 ⁄3

7 of the expenditures made by the State in the fiscal year

8 in operating its program established under part F were

9 for work activities specified in subparagraph (A) and for

10 job placement, job development, and job retention activi11 ties.’’.

12 (e) GOOD CAUSE EXEMPTIONS.—Section

13 402(a)(19)(G)(iv) (42 U.S.C. 602(a)(19)(G)(iv)) is

14 amended—

15 (1) by striking ‘‘or’’ at the end of subclause (I);

16 (2) by striking ‘‘and’’ at the end of subclause

17 (II) and inserting ‘‘or’’; and

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

19 ‘‘(III) on the basis of the refusal

20 of an individual to participate in the

21 program or accept employment if

22 child care is necessary for the individ23 ual to accept such employment, and—
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1 ‘‘(aa) child care suited for

2 the needs of a dependent child of

3 the individual is not available; or

4 ‘‘(bb) placement of a de5 pendent child of the individual

6 into available child care would

7 pose a significant risk of physical

8 or developmental harm to the

9 child; and’’.

10 (f) REPORTS ON JOB ENTRIES.—Section 403(l)(3)

11 (42 U.S.C. 603(l)(3)) is amended by adding at the end

12 the following:

13 ‘‘(F)(i) Each State operating a program under part

14 F shall submit to the Secretary, with such frequency as

15 the Secretary may require by regulation, reports on the

16 following aspects of the program:

17 ‘‘(I) The number of job entries (as defined by

18 the Secretary in regulations, subject to clause (ii))

19 by program participants.

20 ‘‘(II) Job retention by program participants.

21 ‘‘(III) Wage rates of program participants.

22 ‘‘(IV) Hours of employment of program partici23 pants.
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1 ‘‘(V) The extent to which the jobs into which

2 program participants are placed offer health bene3 fits.

4 ‘‘(VI) Such other information relating to job en5 tries by program participants as the Secretary may

6 require by regulation.

7 ‘‘(ii) The definition of job entry shall, at a minimum

8 provide that—

9 ‘‘(I) the employment must be obtained after the

10 individual has been referred for participation in the

11 program established by the State under part F and

12 after the individual has registered or received ori13 entation for the program;

14 ‘‘(II) not more than 1 employment entry per

15 participant per month may be counted;

16 ‘‘(III) the employment must be at or above the

17 greater of the State or Federal minimum wage, and

18 must be for at least 15 hours per week;

19 ‘‘(IV) employment paid solely by commissions,

20 and self-employment, may not be counted until the

21 participant has earned income of at least the mini22 mum wage for at least 15 hours per week;

23 ‘‘(V) changes from part-time to full-time em24 ployment with the same employer shall not count as

25 an additional job entry; and
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1 ‘‘(VI) job entries shall not include jobs known

2 by the State to be of extremely short duration.’’.

3 (g) CONFORMING AMENDMENTS.—Section 204(b)(2)

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

5 is amended—

6 (1) by inserting ‘‘, and amended by section 103

7 of the Family Self-Sufficiency Act of 1994’’ after

8 ‘‘this Act’’; and

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

10 SEC. 104. PRELIMINARY ASSESSMENT OF SELF-SUFFI11 CIENCY NEEDS WITHIN 30 DAYS AFTER AP12 PROVAL OF AFDC APPLICATION.

13 Section 402(a) (42 U.S.C. 602(a)) is amended—

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

15 (44);

16 (2) by striking the period at the end of para17 graph (45) and inserting ‘‘; and’’; and

18 (3) by inserting after paragraph (45) the fol19 lowing:

20 ‘‘(46) provide that, not later than 30 days after

21 approving the application of a family for aid under

22 the State plan approved under this part, the State

23 shall—

24 ‘‘(A) conduct a preliminary assessment of

25 the self-sufficiency needs of the family;
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1 ‘‘(B) determine whether it would be appro2 priate to require any member of the family who

3 may be required to participate in the program

4 of the State under part F to immediately begin

5 participation in the program; and

6 ‘‘(C) advise the family of the availability of

7 child care assistance under section 402(g) for

8 participation in education, training, and em9 ployment.’’.

10 Subtitle B—Job Creation, Job

11 Placement and Development,

12 and Work Requirements

13 SEC. 111. PUBLIC JOBS CREATION PROGRAM.

14 (a) IN GENERAL.—Section 482 (42 U.S.C. 682) is

15 amended by adding at the end the following:

16 ‘‘(j) PUBLIC JOBS CREATION PROGRAM.—

17 ‘‘(1) IN GENERAL.—Any State may establish a

18 public jobs creation program in accordance with this

19 subsection.

20 ‘‘(2) GENERAL REQUIREMENTS.—A public jobs

21 creation program is a program that provides employ22 ment in the public sector or in private nonprofit or23 ganizations in accordance with the following require24 ments:
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1 ‘‘(A) ELIGIBILITY.—A State may elect to

2 make a job available to an individual under this

3 paragraph if the individual—

4 ‘‘(i) is eligible to receive aid under the

5 State plan approved under part A; and

6 ‘‘(ii) has not, during the immediately

7 preceding 6 months, voluntarily termi8 nated, without good cause, full-time em9 ployment of the individual at a wage rate

10 of at least the minimum wage rate then in

11 effect under section 6 of the Fair Labor

12 Standards Act of 1938.

13 ‘‘(B) PERIODIC JOB SEARCH REQUIRED.—

14 As a continuing condition of eligibility to par15 ticipate in the program, each participant in the

16 program shall periodically engage in job search.

17 ‘‘(C) ENTRY-LEVEL POSITIONS.—

18 ‘‘(i) IN GENERAL.—Subject to clause

19 (ii), the program shall provide entry-level

20 positions, to the extent practicable.

21 ‘‘(ii) NO INFRINGEMENT ON PRO22 MOTIONAL OPPORTUNITIES.—A job shall

23 not be created in a promotional line that

24 will infringe in any way upon the pro25 motional opportunities of persons employed
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1 in jobs not subsidized under this sub2 section.

3 ‘‘(D) MAXIMUM PERIOD OF SUBSIDIZED

4 EMPLOYMENT AT SAME POSITION.—The pro5 gram shall not permit an individual to remain

6 in the same position of subsidized employment

7 for more than 24 months.

8 ‘‘(3) WAGES TREATED AS EARNED INCOME.—

9 Wages paid under a program established under this

10 subsection shall be considered to be earned income

11 for purposes of any provision of law.

12 ‘‘(4) PRESERVATION OF ELIGIBILITY FOR

13 CHILD CARE ASSISTANCE AND MEDICAID BENE14 FITS.—Any individual who becomes ineligible to re15 ceive aid under a State plan approved under part A

16 by reason of income from employment provided

17 under a program established under this subsection

18 to the caretaker relative of the family of which the

19 individual is a member shall for purposes of eligi20 bility for child care benefits under section

21 402(g)(1)(A)(i) and for purposes of eligibility for

22 medical assistance under the State plan approved

23 under title XIX, be considered to be receiving such

24 aid for so long as the subsidized employment pro-
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1 vided to the individual under this subsection contin2 ues.

3 ‘‘(5) TARGETED INDIVIDUALS.—At least 50

4 percent of the amounts expended by a State under

5 this subsection shall be expended with respect to in6 dividuals who have received aid under the State plan

7 approved under part A for any 36 of the most recent

8 60 months, or with respect to such other groups of

9 individuals as the State may select and are approved

10 by the Secretary.’’.

11 (b) OPTIONAL COMPONENT OF JOBS PROGRAM.—

12 Section 482(d)(1)(A)(ii) (42 U.S.C. 682(d)(1)(A)(ii)) is

13 amended—

14 (1) by striking ‘‘and’’ at the end of subclause

15 (III);

16 (2) by striking the period and inserting ‘‘;

17 and’’; and

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

19 ‘‘(V) a publicly funded jobs creation pro20 gram as described in subsection (j).’’.

21 SEC. 112. EXPANSION OF JOB PLACEMENT, JOB DEVELOP22 MENT, AND JOB RETENTION ACTIVITIES.

23 (a) IN GENERAL.—Section 403(l) (42 U.S.C. 603(l))

24 is amended by adding at the end the following:
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1 ‘‘(5) Each State shall expend for job placement, job

2 development, and job retention activities in each fiscal

3 year not less than 10 percent of the total amount ex4 pended by the State for the operation of the State pro5 gram established under part F in the fiscal year.’’.

6 (b) CASE MANAGEMENT SERVICES REQUIRED TO BE

7 OFFERED TO JOBS PARTICIPANTS.—Section

8 482(a)(1)(B) (42 U.S.C. 682(a)(1)(B)) is amended by

9 adding at the end the following: ‘‘In addition, such plan

10 must provide that the State shall offer case management

11 services to each participant in the program for a period

12 of not fewer than 90 days after the participant becomes

13 employed, and, at the option of the State, the State may

14 extend such period to not more than 365 days.’’.

15 SEC. 113. SELF-EMPLOYMENT PROGRAMS.

16 Section 482(d)(1)(A)(ii) (42 U.S.C.

17 682(d)(1)(A)(ii)), as amended by section 111(b) of this

18 Act, is amended—

19 (1) by striking ‘‘and’’ at the end of subclause

20 (IV);

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

22 and’’; and

23 (3) by adding at the end the following:
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1 ‘‘(VI) programs to prepare for self-employ2 ment or to enable individuals to establish a

3 microenterprise.’’.

4 SEC. 114. PROVISIONS GENERALLY APPLICABLE TO THE

5 JOBS PROGRAM.

6 Section 484 (42 U.S.C. 684) is amended by striking

7 subsections (b), (c), and (d) and inserting the following:

8 ‘‘(b)(1)(A) Funds provided for a program established

9 under section 482 may be used only for programs that

10 do not duplicate any employment activity otherwise avail11 able in the locality of the program.

12 ‘‘(B) Funds provided for a program established under

13 section 482 shall not be paid to a private nonprofit entity

14 to conduct activities that are the same or substantially

15 equivalent to activities provided by a State in which the

16 entity is located or by an agency of local government with

17 jurisdiction over the locality in which the entity is located,

18 unless the requirements of paragraph (2) are met.

19 ‘‘(2)(A) An employer shall not displace an employee

20 or position, including partial displacement such as reduc21 tion in hours, wages, or employment benefits, as a result

22 of the use by the employer of a participant in a program

23 established under section 482.

24 ‘‘(B) No work assignment under a program estab25 lished under section 482 shall result in any infringement
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1 of the promotional opportunities of any employed individ2 ual.

3 ‘‘(C)(i) A participant in a program established under

4 section 482(f) or an alternative work experience program

5 shall not perform any services or duties or engage in ac6 tivities that would otherwise be performed by an employee

7 as part of the assigned duties of the employee.

8 ‘‘(ii) A participant in a program established under

9 section 482 shall not perform any services or duties or

10 engage in activities that—

11 ‘‘(I) will supplant the hiring of employed work12 ers; or

13 ‘‘(II) are services, duties or activities with re14 spect to which an individual has recall rights pursu15 ant to a collective bargaining agreement or applica16 ble personnel procedures.

17 ‘‘(iii) A participant in a program established under

18 section 482 shall not perform services or duties that have

19 been performed by or were assigned to any—

20 ‘‘(I) presently employed worker if the partici21 pant is in a program established under section

22 482(f);

23 ‘‘(II) employee who recently resigned or was

24 discharged;

25 ‘‘(III) employee who—
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1 ‘‘(aa) is the subject of a reduction in force;

2 or

3 ‘‘(bb) has recall rights pursuant to a col4 lective bargaining agreement or applicable per5 sonnel procedures;

6 ‘‘(IV) employee who is on leave (terminal, tem7 porary, vacation, emergency, or sick); or

8 ‘‘(V) employee who is on strike or is being

9 locked out.

10 ‘‘(c)(1) Sections 142(a), 143(a)(4), 143(a)(5), and

11 143(c)(2) of the Job Training Partnership Act shall apply

12 to employment provided through any program established

13 under section 482 of this Act.

14 ‘‘(2) Sections 130(f) and 176(f) of the National and

15 Community Service Act of 1990 shall apply to employment

16 provided through any program established under section

17 482 of this Act.

18 ‘‘(d)(1) A participant in a program established under

19 subsection (e), (f), or (j) of section 482 may not be as20 signed to fill any established unfilled position vacancy.

21 ‘‘(2)(A) A program established under section 482

22 may not be used to assist, promote, or deter union orga23 nizing.
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1 ‘‘(B) A program established under section 482 may

2 not be used to impair existing contracts for services or

3 collective bargaining agreements.’’.

4 Subtitle C—Support for Working

5 Families

6 SEC. 121. END DOLLAR-FOR-DOLLAR WORK PENALTY.

7 (a) IN GENERAL.—Section 402(a)(8)(A)(ii) (42

8 U.S.C. 602(a)(8)(A)(ii)) is amended to read as follows:

9 ‘‘(ii) shall disregard from the earned in10 come of any child or relative receiving aid under

11 the State plan, or of any other individual (living

12 in the same home as the relative and child)

13 whose needs are taken into account in making

14 the determination, an amount equal to—

15 ‘‘(I) not less than the first $120 (ad16 justed pursuant to section 406(i) for the

17 calendar quarter in which the month oc18 curs) and not more than the first $200

19 (adjusted pursuant to section 406(i) for

20 the calendar quarter in which the month

21 occurs) of the total of such earned income

22 for the month; plus

‘‘(II) not less than 1 23 ⁄3 and not more

than 1 24 ⁄2 of the remainder of such earned

25 income;’’.
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1 (b) INFLATION ADJUSTMENT.—Section 406 (42

2 U.S.C. 606) is amended by adding at the end the follow3 ing:

4 ‘‘(i) The Secretary shall adjust each dollar amount

5 required to be adjusted pursuant to this subsection for any

6 month in a calendar quarter by—

7 ‘‘(1) multiplying the amount by the ratio of—

8 ‘‘(A) the Consumer Price Index (as pre9 pared by the Department of Labor) for the 3rd

10 quarter of the calendar year that immediately

11 precedes the calendar year in which the cal12 endar quarter occurs, to

13 ‘‘(B) the Consumer Price Index for the 3rd

14 quarter of calendar year 1995; and

15 ‘‘(2) rounding the product, if not a multiple of

16 $10, to the nearer multiple of $10.’’.

17 (c) CONFORMING AMENDMENTS.—

18 (1) Section 402(a)(8)(A) (42 U.S.C.

19 602(a)(8)(A)) is amended by striking clause (iv).

20 (2) Section 402(a)(8)(B) (42 U.S.C.

21 602(a)(8)(B)) is amended—

22 (A) by striking ‘‘—’’ the first place such

23 term appears and all that follows through ‘‘(i)’’;

24 (B) by striking ‘‘, (iii), or (iv)’’ and insert25 ing ‘‘or (iii)’’;
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1 (C) by redesignating subclauses (I), (II),

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

3 (iii), respectively; and

4 (D) by striking clause (ii).

5 (3) Section 402(a)(37) (42 U.S.C. 602(a)(37))

6 is amended by striking ‘‘or because of paragraph

7 (8)(B)(ii)(II)’’.

8 (4) Section 402(g)(1)(A)(ii) (42 U.S.C.

9 602(g)(1)(A)(ii)) is amended by striking ‘‘or by rea10 son of subsection (a)(8)(B)(ii)(II)’’.

11 (5) Section 1925(a) (42 U.S.C. 1396r–6(a)) is

12 amended by striking ‘‘or because of section

13 402(a)(8)(B)(ii)(II) (providing for a time-limited

14 earned income disregard)’’.

15 (d) RESEARCH AND ANALYSIS CONCERNING EF16 FECTS OF IMPROVED EARNINGS TREATMENT.—The Sec17 retary shall establish State reporting requirements de18 signed to improve Federal data concerning employment

19 entries by recipients of aid under a State plan approved

20 under part A of title IV of the Social Security Act, and

21 designed to calculate monthly employment entry rates by

22 States. The Secretary shall also solicit from States appli23 cations under section 1115 of such Act for a structured

24 set of waivers designed to identify the extent to which
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1 earnings disregard rules affect the employment entry and

2 employment retention rates of such recipients.

3 SEC. 122. INCREASE IN LIMITATION ON TOTAL FAMILY IN4 COME.

5 Section 402(a)(18) (42 U.S.C. 602(a)(18)) is amend6 ed by inserting ‘‘the greater of 130 percent of the income

7 official poverty line (as defined by the Office of Manage8 ment and Budget, and revised annually in accordance with

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

10 of 1981) for a family of the same composition or’’ before

11 ‘‘185’’.

12 SEC. 123. AVAILABILITY OF HEALTH CARE FOR POOR

13 WORKING FAMILIES.

14 (a) OPTIONAL EXTENSION OF MEDICAID ENROLL15 MENT FOR FORMER AFDC RECIPIENTS FOR 1 ADDI16 TIONAL YEAR.—

17 (1) IN GENERAL.—Section 1925(b)(1) (42

18 U.S.C. 1396r–6(b)(1)) is amended by striking the

19 period at the end and inserting the following: ‘‘, and

20 may provide that the State shall offer to each such

21 family the option of extending coverage under this

22 subsection for any of the first 2 succeeding 6-month

23 periods, in the same manner and under the same

24 conditions as the option of extending coverage under
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1 this subsection for the first succeeding 6-month pe2 riod.’’.

3 (2) CONFORMING AMENDMENTS.—Section

4 1925(b) (42 U.S.C. 1396r–6(b)) is amended—

5 (A) in the heading, by striking ‘‘EXTEN6 SION’’ and inserting ‘‘EXTENSIONS’’;

7 (B) in the heading of paragraph (1), by

8 striking ‘‘REQUIREMENT’’ and inserting ‘‘IN

9 GENERAL’’;

10 (C) in paragraph (2)(B)(ii)—

11 (i) in the heading, by striking ‘‘PE12 RIOD’’ and inserting ‘‘PERIODS’’; and

13 (ii) by striking ‘‘in the period’’ and in14 serting ‘‘in each of the 6-month periods’’;

15 (D) in paragraph (3)(A), by striking ‘‘the

16 6-month period’’ and inserting ‘‘any 6-month

17 period’’;

18 (E) in paragraph (4)(A), by striking ‘‘the

19 extension period’’ and inserting ‘‘any extension

20 period’’; and

21 (F) in paragraph (5)(D)(i), by striking ‘‘is

22 a 3-month period’’ and all that follows and in23 serting the following: ‘‘is, with respect to a par24 ticular 6-month additional extension period pro25 vided under this subsection, a 3-month period
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1 beginning with the 1st or 4th month of such ex2 tension period.’’.

3 (b) PERMITTING STATES TO PROVIDE TRANSI4 TIONAL COVERAGE TO ANY INDIVIDUAL RECEIVING

5 AFDC DURING PREVIOUS 6 MONTHS.—Section

6 1925(a)(1) (42 U.S.C. 1396r–6(a)(1)) is amended by

7 striking ‘‘such aid,’’ and inserting ‘‘such aid (or, at the

8 option of the State, in any of the 6 months immediately

9 preceding such month),’’.

10 (c) REPEAL OF REPORTING REQUIREMENT DURING

11 EXTENSION PERIODS.—

12 (1) IN GENERAL.—Section 1925(b)(2) (42

13 U.S.C. 1396r–6(b)(2)) is amended by striking sub14 paragraph (B).

15 (2) CONFORMING AMENDMENTS.—(A) Section

16 1925(b)(1) (42 U.S.C. 1396r–6(b)(1)) is amended

17 by striking ‘‘and which meets the requirement of

18 paragraph (2)(B)(i)’’.

19 (B) Section 1925(b)(2) (42 U.S.C. 1396r–

20 6(b)(2)) is amended—

21 (i) in the heading for such paragraph, by

22 striking ‘‘AND REPORTING’’;

23 (ii) by striking ‘‘(A) NOTICE’’;

24 (iii) by redesignating clauses (i) and (ii) as

25 subparagraphs (A) and (B);
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1 (iv) in the second sentence of subpara2 graph (A) (as so redesignated)—

3 (I) by striking ‘‘in the 3rd month’’

4 and all that follows through ‘‘(II)’’; and

5 (II) by striking ‘‘(III)’’ and inserting

6 ‘‘(II)’’; and

7 (v) in subparagraph (B) (as so redesig8 nated)—

9 (I) in the heading, by striking ‘‘RE10 PORTING REQUIREMENTS AND’’; and

11 (II) by striking ‘‘the reporting re12 quirement’’ and all that follows through

13 ‘‘statement of’’.

14 (C) Section 1925(b)(3) (42 U.S.C. 1396r–

15 6(b)(3)) is amended—

16 (i) in subparagraph (A)—

17 (I) by striking subclause (I);

18 (II) by redesignating subclauses (II)

19 and (III) as subclauses (I) and (II); and

20 (III) by striking the matter following

21 subclause (II) (as so redesignated); and

22 (ii) in subparagraph (B), by striking

23 ‘‘(A)(iii)(II)’’ and inserting ‘‘(A)(iii)(I)’’.

24 (d) EFFECTIVE DATE.—(1) Except as provided in

25 paragraph (2), the amendments made by subsections (a)
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1 and (b) shall apply to calendar quarters beginning on or

2 after October 1, 1995, without regard to whether final

3 regulations to carry out such amendments have been pro4 mulgated by such date.

5 (2) In the case of a State plan for medical assistance

6 under title XIX of the Social Security Act which the Sec7 retary of Health and Human Services determines requires

8 State legislation (other than legislation appropriating

9 funds) in order for the plan to meet the additional require10 ments imposed by the amendments made by subsections

11 (a) and (b), the State plan shall not be regarded as failing

12 to comply with the requirements of such title solely on the

13 basis of its failure to meet these additional requirements

14 before the first day of the first calendar quarter beginning

15 after the close of the first regular session of the State leg16 islature that begins after the date of the enactment of this

17 Act. For purposes of the previous sentence, in the case

18 of a State that has a 2-year legislative session, each year

19 of such session shall be deemed to be a separate regular

20 session of the State legislature.

21 SEC. 124. ELIMINATION OF DIFFERENT TREATMENT OF 2-

22 PARENT FAMILIES.

23 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

24 602(a)) is amended by striking paragraph (41).

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 402(a)(19)(B)(i)(II) (42 U.S.C.

2 602(a)(19)(B)(i)(II)) is amended by striking ‘‘(and’’

3 and all that follows through ‘‘407(b)(2)(B)(i))’’.

4 (2) Section 402(a)(19)(D) (42 U.S.C.

5 602(a)(19)(D)) is amended by striking ‘‘eligible’’

6 and all that follows through ‘‘earner’’ and inserting

7 ‘‘in which both parents are living at home’’.

8 (3) Section 402(a)(19)(G)(i) (42 U.S.C.

9 602(a)(19)(G)(i)) is amended—

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

11 or not section 407 applies)’’; and

12 (B) in subclause (II)—

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

14 aid to families with dependent children by

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

16 which both parents are living at home’’;

17 and

18 (ii) by striking ‘‘the needs of such

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

20 spouse shall be required to participate in

21 the program unless exempt by reason of

22 subparagraph (C) (other than clause (iii)

23 thereof), or by reason of subparagraph

24 (C)(iii) if the individual demonstrates to

25 the satisfaction of the State that it is in
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1 the best interest of the child or children

2 not to impose such requirement, and if the

3 spouse fails without good cause to so par4 ticipate, the needs of the spouse shall’’.

5 (4) Section 402(a)(38)(B) (42 U.S.C.

6 602(a)(38)(B)) is amended by striking ‘‘or in section

7 407(a)’’.

8 (5) Section 402(a) (42 U.S.C. 602(a)) is

9 amended by striking paragraph (42).

10 (6) Section 402(g)(1)(A)(ii) (42 U.S.C.

11 602(g)(1)(A)(ii)) is amended by striking ‘‘hours of,

12 or increased income from,’’ and inserting ‘‘income

13 from’’.

14 (7) Section 406(a)(1) (42 U.S.C. 606(a)(1)) is

15 amended by striking ‘‘who has been deprived’’ and

16 all that follows through ‘‘incapacity of a parent’’.

17 (8) Section 406(b)(1) (42 U.S.C. 606(b)(1)) is

18 amended by striking ‘‘and if such relative’’ and all

19 that follows through ‘‘section 407’’.

20 (9) Section 407 (42 U.S.C. 607) is hereby re21 pealed.

22 (10) Section 472(a) (42 U.S.C. 672(a)) is

23 amended by striking ‘‘or of section 407’’.
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1 (11) Section 473(a)(2)(A)(i) (42 U.S.C.

2 672(a)(2)(A)(i)) is amended by striking ‘‘or section

3 407’’.

4 (12) Section 1115(b) (42 U.S.C. 1315(b)) is

5 amended by striking paragraph (5).

6 (13) Section 1115 (42 U.S.C. 1315) is amended

7 by striking subsection (d).

8 (14) Section 1902(a)(10)(A)(i) (42 U.S.C.

9 1396a(a)(10)(A)(i)) is amended by striking

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

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

12 (15) Section 1905 (42 U.S.C. 1396d) is amend13 ed by striking subsection (m).

14 (16) Section 1905(n)(1) (42 U.S.C.

15 1396d(n)(1)) is amended—

16 (A) in subparagraph (A)—

17 (i) by striking ‘‘(or’’ and all that fol18 lows through ‘‘407)’’; and

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

20 (B) by striking subparagraph (B).

21 (17) Section 1925(a) (42 U.S.C. 1396r–6(a)) is

22 amended by striking ‘‘hours of, or income from,’’

23 and inserting ‘‘income from’’.

24 (18) Section 204(b)(2) of the Family Support

25 Act of 1988 (42 U.S.C. 681 note) is amended by
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1 striking the semicolon and all that follows through

2 ‘‘1998’’.

3 SEC. 125. INCREASE IN STEPPARENT INCOME DISREGARD.

4 Section 402(a)(31)(B) (42 U.S.C. 602(a)(31)(B)) is

5 amended by striking ‘‘the State’s standard of need under

6 such plan’’ and inserting ‘‘the greatest of (i) the State’s

7 standard of need under such plan, (ii) 130 percent of the

8 income official poverty line (as defined by the Office of

9 Management and Budget, and revised annually in accord10 ance with section 673(2) of the Omnibus Budget Rec11 onciliation Act of 1981), or (iii) such amount as the State

12 may establish,’’.

13 Subtitle D—Child Care

14 SEC. 131. INCREASE IN CHILD CARE FUNDS.

15 Section 403(n)(2)(B) (42 U.S.C. 603(n)(2)(B)) is

16 amended—

17 (1) by striking ‘‘and’’ at the end of clause (iv);

18 (2) in clause (v), by striking the comma and all

19 that follows and inserting a semicolon; and

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

21 ‘‘(vi) $800,000,000 for fiscal year 1996;

22 ‘‘(vii) $1,300,000,000 for fiscal year 1997;

23 ‘‘(viii) $1,800,000,000 for fiscal year 1998; and

24 ‘‘(ix) $2,300,000,000 for fiscal year 1999.’’.
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1 SEC. 132. PAYMENTS TO ENCOURAGE USE OF ENTIRE

2 STATE ALLOTMENT FOR AT-RISK CHILD

3 CARE.

4 Section 403 (42 U.S.C. 603) is amended—

5 (1) in subsection (n)—

6 (A) in paragraph (1)(B), by inserting ‘‘95

7 percent of’’ before ‘‘the limitation’’; and

8 (B) in paragraph (3)—

9 (i) by inserting ‘‘(A)’’ after ‘‘(3)’’; and

10 (ii) by adding at the end the follow11 ing:

12 ‘‘(B) Notwithstanding subparagraph (A), the Sec13 retary shall reserve for payments under subsection (o) an

14 amount equal to the sum of—

15 ‘‘(i) 5 percent of the amounts made available

16 for payments under this subsection for each fiscal

17 year; and

18 ‘‘(ii) the amount of any excess referred to in

19 paragraph (2)(C)(ii) with respect to a State for a

20 fiscal year that is not used to increase the limitation

21 determined under paragraph (2) with respect to the

22 State for the 3rd succeeding fiscal year.’’; and

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

24 ‘‘(o)(1)(A) In addition to any other payment under

25 this section, each State that is a qualified State for a fiscal
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1 year shall be entitled to payment from the Secretary of

2 an amount equal to the sum of—

3 ‘‘(i) 5 percent of the aggregate of the amounts

4 paid to the State under subsection (n) for the imme5 diately preceding fiscal year; and

6 ‘‘(ii)(I) the amount reserved under subsection

7 (n)(3)(B) for the immediately preceding fiscal year

8 that remains after applying clause (i) of this sub9 paragraph to each qualified State; multiplied by

10 ‘‘(II) the ratio of—

11 ‘‘(aa) the number of children residing in

12 the State in the immediately preceding fiscal

13 year, to

14 ‘‘(bb) the number of children residing in a

15 qualified State in the immediately preceding fis16 cal year.

17 ‘‘(B) As used in subparagraph (A) of this paragraph,

18 the term ‘qualified State’ means, with respect to a fiscal

19 year, a State with respect to which the amount described

20 in subsection (n)(1)(A) for the immediately preceding fis21 cal year equals the amount described in subsection

22 (n)(1)(B) for the immediately preceding fiscal year.

23 ‘‘(2) The Secretary may not apply any amount to

24 which a State is entitled under paragraph (1) as an offset
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1 against any amount owed by the State to any department

2 or agency of the Federal Government.

3 ‘‘(3)(A) Within 1 year after a State receives an

4 amount paid under paragraph (1) of this subsection, the

5 State shall obligate the amount for—

6 ‘‘(i) services under section 402(i) directly to

7 families eligible therefor; or

8 ‘‘(ii) improvements in the quality of services,

9 and the building of infrastructure, under subsection

10 (g) or (i) of section 402.

11 ‘‘(B) Amounts paid under this section may not be

12 used to supplant State or local expenditures for staff or

13 administration.’’.

14 SEC. 133. LIMITATION ON CARRYFORWARD OF UNUSED AT15 RISK CHILD CARE ALLOTMENTS.

16 Section 403(n)(2)(C) (42 U.S.C. 603(n)(2)(C)) is

17 amended—

18 (1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

19 (2) by adding after and below the end the fol20 lowing:

21 ‘‘(ii) The amount of such excess with respect to

22 a State for a fiscal year shall not be used to increase

23 the limitation determined under this paragraph with

24 respect to the State for any fiscal year after the 2nd

25 succeeding fiscal year.’’.
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1 SEC. 134. PAYMENT OF LOCAL MARKET RATES.

2 Section 402(g)(1)(C) (42 U.S.C. 602(g)(1)(C)) is

3 amended to read as follows:

4 ‘‘(C) The State agency shall make payment for the

5 actual cost of child care provided with respect to a family,

6 in an amount that may not exceed the 75th percentile of

7 the local cost of care (as determined by the State in ac8 cordance with regulations prescribed by the Secretary), or

9 such other payment schedule (under which payment rates

10 are not less than the 75th percentile of the local cost of

11 care) as the State may establish.’’.

12 SEC. 135. SET-ASIDE FOR IMPROVEMENT OF INFRASTRUC13 TURE AND QUALITY.

14 Section 403(n) (42 U.S.C. 603(n)) is amended by

15 adding at the end the following:

16 ‘‘(4) Not less than 10 percent and not more than 12

17 percent of the total amount obligated by a State from

18 amounts provided under this subsection for fiscal year

19 1995 and for each succeeding fiscal year shall be used for

20 improvement of the quality of services and the building

21 of infrastructure to serve low-income children, the develop22 ment of on-site or near-site facilities for parents who have

23 not attained 20 years of age and are attending educational

24 or vocational institutions, and for State licensing and reg25 istration requirements, monitoring, and assistance to child
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1 care providers in meeting applicable standards under sub2 section (g) or (i) of section 402.’’.

3 SEC. 136. CHILD CARE FOR WORKING AFDC PARENTS.

4 (a) DEPENDENT CARE DISREGARD NOT TO BE RE5 GARDED AS SUFFICIENT TO GUARANTEE CHILD CARE.—

6 Section 402(g)(1)(B) (42 U.S.C. 602(g)(1)(B)) is amend7 ed by adding at the end the following: ‘‘Compliance with

8 subsection (a)(8)(A)(iii) with respect to a family shall not

9 be construed to be a guarantee of child care for the family

10 pursuant to this subsection, unless the family has been

11 offered, and has declined, payment through at least 1 of

12 the methods authorized by this subparagraph (other than

13 clause (iv) of the 1st sentence of this subparagraph).’’.

14 (b) ELIMINATION OF AUTHORITY TO DECREASE THE

15 DEPENDENT CARE DISREGARD FOR PARENTS NOT

16 WORKING FULL-TIME.—Section 402(a)(8)(A)(iii) (42

17 U.S.C. 602(a)(8)(A)(iii)) is amended by striking ‘‘(or’’

18 and all that follows through ‘‘month)’’.

19 (c) INCREASE IN THE AMOUNT OF THE DEPENDENT

20 CARE DISREGARDS.—Section 402(a)(8)(A)(iii) (42 U.S.C.

21 602(a)(8)(A)(iii)) is amended—

22 (1) by striking ‘‘$175’’ and inserting ‘‘$200 (or,

23 if greater, the dollar amount in effect under sub24 section (d))’’; and
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1 (2) by striking ‘‘$200’’ and inserting ‘‘$250 (or,

2 if greater, the dollar amount in effect under sub3 section (d))’’.

4 (d) COST-OF-LIVING ADJUSTMENT OF THE DEPEND5 ENT CARE DISREGARDS.—Section 402 (42 U.S.C. 602)

6 is amended by inserting after subsection (c) the following:

7 ‘‘(d) Whenever benefits under title II for a month are

8 increased by a percentage by reason of section 215(i)—

9 ‘‘(1) each dollar amount in effect under sub10 section (a)(8)(A)(iii) of this section for the month

11 and for each subsequent month shall be increased by

12 the amount (if any) by which—

13 ‘‘(A) the amount which would have been in

14 effect for the month under such subsection but

15 for rounding of the amount pursuant to para16 graph (3) of this subsection; exceeds

17 ‘‘(B) the amount in effect for the month

18 under such subsection (a)(8)(A)(iii);

19 ‘‘(2) the amount obtained under paragraph (1)

20 of this subsection shall be further increased by the

21 greater of—

22 ‘‘(A) if the increase under title II was de23 termined on the basis of the CPI increase per24 centage, the percentage of the increase; or
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•HR 4767 IH

1 ‘‘(B) if not, the percentage by which bene2 fits under title II would have been increased if

3 the increase under title II was determined on

4 the basis of the CPI increase percentage; and

5 ‘‘(3) if the amount obtained under paragraph

6 (2) of this subsection is not a multiple of $10, the

7 amount shall be rounded to the nearest multiple of

8 $10.’’.

9 SEC. 137. HEALTH AND SAFETY STANDARDS; CONTINUITY

10 OF CARE.

11 (a) FOR RECIPIENTS.—Section 402(g)(1)(A) (42

12 U.S.C. 602(g)(1)(A)) is amended by adding at the end the

13 following:

14 ‘‘(viii) Child care guaranteed under this section,

15 whether provided by a method permitted under subpara16 graph (B) or by means of an agreement under subsection

17 (j) with the lead agency designated under the Child Care

18 and Development Block Grant Act of 1990 (in this section

19 referred to as the ‘CCDBG Act’), must meet all health

20 and safety standards established by the lead agency (for

21 purposes of the CCDBG Act), and, in addition to any

22 other requirements imposed pursuant to that Act, the

23 State agency must establish immunization requirements

24 and assure (and any such agreement must provide) that,

25 consistent with regulations of the Secretary—
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1 ‘‘(I) children whose child care is paid for, in

2 whole or in part, under this subsection will be re3 quired to have received all immunizations, at the ap4 propriate times, as currently recommended by the

5 Advisory Committee on Immunization Practices (an

6 advisory committee established by the Secretary, act7 ing through the director of the Centers for Disease

8 Control and Prevention) as specified on the pediatric

9 vaccines list referred to in section 1928(e); and

10 ‘‘(II) child care providers used will take steps to

11 assure that toxic substances, weapons, and any other

12 items at the location where the child care is provided

13 that could be harmful to young children, will be se14 cured and unobtainable by the children.

15 ‘‘(ix)(I) The State shall provide information about the

16 immunization requirements imposed pursuant to clause

17 (viii) and about where free immunizations may be ob18 tained, to parents upon application for child care assist19 ance and to child care providers.

20 ‘‘(II) The State shall take needed action to ensure

21 that immunizations are available and accessible to all re22 cipients of such aid to whom clause (viii) applies, and, with

23 respect to each such recipient, shall offer assistance in

24 meeting such requirements, shall provide assistance in re25 sponse to a parent’s request for assistance, may not deny
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•HR 4767 IH

1 child care to any parent who is seeking immunizations for

2 his or her child or children during a reasonable grace pe3 riod, and may not deny or terminate such child care to

4 a family by reason of the failure of the family to receive

5 required immunizations until the State has identified the

6 reason for the failure and addressed any barriers to ac7 cess. The State shall allow for exceptions in cases where

8 good cause can be shown.

9 ‘‘(III) The State shall provide information about eli10 gibility for medical assistance under the State plan ap11 proved under title XIX to all child care providers receiving

12 Federal child care funds and shall suggest strategies for

13 informing parents about such eligibility.

14 ‘‘(IV) The State shall work with public health clinics

15 to provide immunizations at child care clinics during ap16 propriate times.

17 ‘‘(x) The State plan must assure that child care pro18 vided under this subsection will conform in all ways to the

19 provisions for parental choice, unlimited parental access,

20 handling of parental complaints, and consumer education,

21 as well as to all the other standards, criteria, and require22 ments applicable to child care provided under the CCDBG

23 Act.’’.

24 (b) FOR AT-RISK FAMILIES.—Section 402(i) (42

25 U.S.C. 602(i)) is amended by redesignating paragraphs
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1 (5) and (6) as paragraphs (6) and (7), respectively, and

2 by inserting after paragraph (4) the following:

3 ‘‘(5)(A) Child care provided under this subsection,

4 whether provided by a method permitted under paragraph

5 (2) of this subsection or by means of an agreement under

6 subsection (j) with the lead agency designated under the

7 CCDBG Act, must meet all health and safety standards

8 established by the lead agency (for purposes of the

9 CCDBG Act), and, in addition to any other requirements

10 imposed pursuant to that Act, the State agency must es11 tablish immunization requirements and assure (and any

12 such agreement must provide) that, consistent with the

13 regulations of the Secretary—

14 ‘‘(i) children whose child care is paid for, in

15 whole or in part, under this subsection will be re16 quired to have received all immunizations, at the ap17 propriate times, as currently recommended by the

18 Advisory Committee on Immunization Practices (as

19 advisory committee established by the Secretary, act20 ing through the director of the Centers for Disease

21 Control and Prevention) as specified on the pediatric

22 vaccines list referred to in section 1928(e); and

23 ‘‘(ii) child care providers used will take steps to

24 assure that toxic substances, weapons, and any other

25 items at the location where the child care is provided
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1 that could be harmful to young children, will be se2 cured and unobtainable by the children.

3 ‘‘(B)(i) The State shall provide information about the

4 immunization requirements imposed pursuant to subpara5 graph (A) and about where free immunizations may be

6 obtained, to parents upon application for child care assist7 ance and to child care providers.

8 ‘‘(ii) The State shall provide information about eligi9 bility for medical assistance under the State plan approved

10 under title XIX to all child care providers receiving Fed11 eral child care funds and shall suggest strategies for in12 forming parents about such eligibility.

13 ‘‘(iii) The State shall work with public health clinics

14 to provide immunizations at child care clinics during ap15 propriate times.

16 ‘‘(6) The State plan must assure that child care pro17 vided under this subsection will conform in all ways to the

18 provisions for parental choice, unlimited parental access,

19 handling of parental complaints, and consumer education,

20 as well as to all other standards, criteria, and require21 ments applicable to child care provided under the CCDBG

22 Act.’’.

23 (c) CONFORMING AMENDMENTS.—

24 (1) CHILD CARE FOR PARTICIPANTS IN THE

25 JOBS OR WORK PROGRAM, AND TRANSITIONAL
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1 CHILD CARE.—Section 402(g) (42 U.S.C. 602(g)) is

2 amended—

3 (A) in paragraph (3)(B)—

4 (i) by adding ‘‘and’’ at the end of

5 clause (i);

6 (ii) in clause (ii), by striking ‘‘applica7 ble standards’’ and all that follows and in8 serting ‘‘all requirements, standards, and

9 criteria applicable to child care funded

10 under the CCDBG Act.’’; and

11 (iii) by striking clause (iii); and

12 (B) by striking paragraphs (4) and (5).

13 (2) AT-RISK CHILD CARE.—Section 402(i) (42

14 U.S.C. 602(i)), as amended by subsection (b) of this

15 section, is amended—

16 (A) in paragraph (6)—

17 (i) in subparagraph (B), by striking

18 ‘‘applicable standards of State and local

19 law;’’ and inserting ‘‘all requirements,

20 standards, and other criteria applicable to

21 child care funded under the CCDBG Act;’’;

22 and

23 (ii) by striking subparagraphs (C) and

24 (D); and
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1 (B) by amending paragraph (7) to read as

2 follows:

3 ‘‘(8) In order to facilitate more accurate analy4 sis of the supply and quality of child care resources,

5 the demand for such resources that cannot currently

6 be satisfied, and the effectiveness and relationship of

7 Federal programs providing support for child care

8 and child development activities, the Secretary shall

9 specify by regulation a core set of consistently de10 fined data elements for child care which must be

11 used by each State with respect to all reports relat12 ing to child care or child development activities sup13 ported in whole or in part under this Act or under

14 the CCDBG Act.’’.

15 SEC. 138. PERIODIC IDENTIFICATION OF CHILD CARE

16 NEEDS; ENSURING THAT FAMILIES UNDER17 STAND CHILD CARE ALTERNATIVES.

18 Section 402(a) (42 U.S.C. 602(a)), as amended by

19 section 104 of this Act, is amended—

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

21 (45);

22 (2) by striking the period at the end of para23 graph (46) and inserting ‘‘; and’’; and

24 (3) by inserting after paragraph (46) the fol25 lowing:
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1 ‘‘(47) provide that the State agency shall en2 sure that—

3 ‘‘(A)(i) a qualified individual assesses the

4 child care needs of and provide counseling to

5 each individual applying for or receiving aid

6 under the State plan, unless the individual de7 clines counseling, when—

8 ‘‘(I) the State makes an assessment of

9 the individual under section 482(b)(1)(A);

10 ‘‘(II) the individual begins participa11 tion in the program established by the

12 State under part F;

13 ‘‘(III) the individual enters employ14 ment; and

15 ‘‘(IV) the employment or training

16 placement of the recipient changes; and

17 ‘‘(ii) as used in clause (i), the term ‘quali18 fied individual’ means, with respect to an appli19 cant or recipient, an individual knowledgeable

20 about child care options in the community in

21 which the applicant or recipient resides, includ22 ing any Head Start program and wraparound

23 programs that enable families needing full-time,

24 full-year care to participate in the Head Start

25 program; and
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1 ‘‘(B) if an employability plan has been de2 veloped for the individual, the employability

3 plan shall include a notation with respect to

4 how the child care needs of the individual are

5 to be met, and, if child care is not to be pro6 vided by or through the State, the reasons

7 therefor.’’.

8 SEC. 139. ENSURING THAT REIMBURSEMENT MECHANISMS

9 MEET FAMILY NEEDS.

10 Section 402(g)(1)(B) (42 U.S.C. 602(g)(1)(B)) is

11 amended—

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

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

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

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

16 the following:

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

18 the agency shall take into account the individual needs of

19 the child.

20 ‘‘(iii) The State agency may make advance payments

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

22 in any appropriate case, and shall make advance payment

23 if—
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1 ‘‘(I) an advance is needed in order for the fam2 ily to secure or retain such care from the provider

3 chosen by the individual;

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

5 such care without payment in advance; or

6 ‘‘(III) the family has elected to have dependent

7 care expenses disregarded under subsection

8 (a)(8)(A)(iii), and the cost of child care is not re9 flected in the amount of aid payable to the family

10 under the State plan approved under this part due

11 to the use by the State of retrospective budgeting.’’.

12 SEC. 140. FACILITATION OF SEAMLESS SERVICES.

13 (a) AFDC CHILD CARE.—Section 402(g)(1)(A) (42

14 U.S.C. 602(g)(1)(A)), as amended by section 137(a) of

15 this Act, is amended by adding at the end the following:

16 ‘‘(xi) Each State agency shall assess the eligibility for

17 child care under this paragraph of each family who ceases

18 to receive aid to families with dependent children, and if

19 the family is eligible for child care benefits under clause

20 (ii), shall provide such care without requiring a separate

21 application for such benefits.’’.

22 (b) TRANSITIONAL CHILD CARE.—Section

23 402(g)(1)(A)(ii) (42 U.S.C. 602(g)(1)(A)(ii)) is

24 amended—

25 (1) by inserting ‘‘(I)’’ after ‘‘(ii)’’; and
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1 (2) by adding after and below the end the fol2 lowing:

3 ‘‘(II) Before the exhaustion of child care benefits by

4 a family for whom the State is guaranteeing child care

5 under subclause (I), the State must assist the family in

6 obtaining information about, and referral to, other pro7 grams under which, or providers from which, the family

8 may receive child care on a continuing basis upon such

9 ineligibility.

10 ‘‘(III) The State must consider any family whose

11 child care benefits under subclause (I) are about to be ex12 hausted for eligibility for other child care benefits offered

13 by the State.’’.

14 SEC. 141. AUTHORITY TO PROVIDE FOR CONTINUITY OF

15 CHILD CARE.

16 Section 402(g)(1)(A) (42 U.S.C. 602(g)(1)(A)), as

17 amended by sections 137(a) and 140(a) of this Act, is

18 amended by adding at the end the following:

19 ‘‘(xii) A State may continue child care assistance

20 without interruption during breaks between otherwise al21 lowable activities, and for a reasonable period of time after

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

23 arrangements for the child or children of a family eligible

24 to receive care under this paragraph.’’.
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1 SEC. 142. CHILD CARE FOR FAMILIES INCLUDING A CARE2 TAKER RELATIVE NOT RECEIVING AFDC.

3 Section 402(g)(1)(A) (42 U.S.C. 602(g)(1)(A)), as

4 amended by sections 137(a), 140(a), and 141 of this Act,

5 is amended by adding at the end the following:

6 ‘‘(xiii) In any case in which child care is determined

7 to be necessary for the caretaker relative of a child receiv8 ing aid to families with dependent children to accept or

9 retain employment, the State shall guarantee child care

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

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

12 State may apply a sliding fee scale to determine the appro13 priate contribution (if any) to the cost of care to be paid

14 by the caretaker.’’.

15 SEC. 143. STATE OPTION TO EXTEND TRANSITIONAL CHILD

16 CARE BENEFITS.

17 Section 402(g)(1)(A)(iii) (42 U.S.C.

18 602(g)(1)(A)(iii)) is amended—

19 (1) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and

20 (2) by adding after and below the end the fol21 lowing:

22 ‘‘(II) At the option of the State, the State may, uni23 formly for all families—

24 ‘‘(aa) elect to extend the period described in

25 subclause (I) by 12 months; or
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1 ‘‘(bb) elect to extend the period described in

2 subclause (I) until the income of the family exceeds

3 185 percent (or such lower figure as the State may

4 establish) of the income official poverty line (as de5 fined by the Office of Management and Budget, and

6 revised annually in accordance with section 673(2)

7 of the Omnibus Budget Reconciliation Act of 1981)

8 for a family of the same composition.’’.

9 SEC. 144. STATE OPTION TO PROVIDE TRANSITIONAL

10 CHILD CARE BENEFITS TO FAMILIES WHO

11 HAVE RECEIVED AFDC FOR FEWER THAN 3

12 MONTHS.

13 Section 402(g)(1)(A)(iv) (42 U.S.C.

14 602(g)(1)(A)(iv)) is amended by striking ‘‘A family’’ and

15 inserting ‘‘At the option of the State, a family’’.

16 SEC. 145. LIMITATION OF AT-RISK CHILD CARE TO FAMI17 LIES INELIGIBLE FOR RECIPIENT OR TRANSI18 TIONAL CHILD CARE.

19 Section 402(i)(1)(A) (42 U.S.C. 602(i)(1)(A)) is

20 amended to read as follows:

21 ‘‘(A) is not eligible for child care under

22 subsection (g);’’.
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1 SEC. 146. ELIMINATION OF REQUIREMENT THAT FAMILY

2 RECEIVING TRANSITIONAL CHILD CARE BEN3 EFITS INCLUDE A DEPENDENT CHILD.

4 Section 402(g)(1)(A) (42 U.S.C. 602(g)(1)(A)) is

5 amended by striking clause (v).

6 SEC. 147. STATE OPTION TO WAIVE CONTRIBUTION RE7 QUIREMENT FOR FAMILIES WITH INCOME

8 BELOW THE POVERTY LEVEL.

9 Section 402(g)(1)(A)(vii) (42 U.S.C.

10 602(g)(1)(A)(vii)) is amended by striking ‘‘a sliding’’ and

11 all that follows and inserting ‘‘the sliding fee scale estab12 lished by the State under the Child Care and Development

13 Block Grant Act of 1990.’’.

14 SEC. 148. CONTINUATION OF CHILD CARE DURING DISPUTE

15 RESOLUTION.

16 (a) AFDC AND TRANSITIONAL CHILD CARE.—Sec17 tion 402(g)(1) (42 U.S.C. 602(g)(1)) is amended by redes18 ignating subparagraph (E) as subparagraph (F) and by

19 inserting after subparagraph (D) the following:

20 ‘‘(E) While the State and an individual are seeking

21 to resolve any dispute over whether the individual qualifies

22 for the provision of child care under this paragraph, the

23 State shall ensure the continued provision of such care

24 with respect to the family of the individual.’’.

25 (b) AT-RISK CHILD CARE.—Section 402(i) (42

26 U.S.C. 602(i)), as amended by subsections (b) and (c)(2)
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1 of section 137 of this Act, is amended by redesignating

2 paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),

3 (7), and (8), respectively, and by inserting after paragraph

4 (3) the following:

5 ‘‘(4) While the State and an individual are seeking

6 to resolve any dispute over whether the individual qualifies

7 for the provision of child care under this subsection, the

8 State shall ensure the continued provision of such care

9 with respect to the family of the individual.’’.

10 SEC. 149. OPTION TO CONSOLIDATE STATE RESPONSIBIL11 ITY FOR CHILD CARE.

12 Section 402 (42 U.S.C. 602) is amended by adding

13 at the end the following:

14 ‘‘(j)(1) In order to provide the child care which must

15 be guaranteed pursuant to subsection (g) of this section

16 or which may be furnished pursuant to subsection (i) of

17 this section, the State agency may enter into an agreement

18 with the lead agency designated under section 658D of

19 the CCDBG Act under which—

20 ‘‘(A) subject to paragraph (2) of this sub21 section, the State agency will pay (either in advance

22 or as reimbursement) the lead agency for the cost of

23 providing child care for any child with respect to

24 whom care must be guaranteed under such sub25 section (g) or is to be furnished under such sub-
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1 section (i), and the lead agency agrees that care for

2 all such children will only be paid for from such re3 imbursement; and

4 ‘‘(B) all child care provided by the lead agency

5 under the agreement, whether directly or by contrac6 tual or other arrangements, will be subject to the

7 same requirements, standards, payment rates, and

8 other criteria as are applicable to child care funded

9 under the CCDBG Act; and

10 ‘‘(C) parents and children to whom such care is

11 provided will be offered all the same protections and

12 procedural safeguards as are applicable to child care

13 furnished under the CCDBG Act.

14 ‘‘(2) The State agency shall pay the lead agency for

15 care provided to a child the amount established by the

16 State pursuant to subsection (g)(1)(C) or (i)(3)(B),

17 whichever may be applicable to the child involved, and,

18 with respect to children to whom subsection (i)(3)(B) ap19 plies, the State agency shall be obligated to pay the lead

20 agency for child care furnished in a fiscal year only to

21 the extent of appropriations available for such purpose for

22 such fiscal year.

23 ‘‘(3) This subsection shall not be construed as pre24 cluding the designation of the agency established or des25 ignated under section 402(a)(3) as the lead agency for
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1 purposes of the CCDBG Act. An agreement shall not be

2 necessary in the case where the same agency is designated

3 under both the CCDBG Act and this Act, but the agency

4 shall, as lead agency, comply with all the provisions of this

5 subsection.’’.

6 TITLE II—STRENGTHENING PA7 RENTAL RESPONSIBILITY

8 AND FAMILY STABILITY

9 Subtitle A—Federal

10 Responsibilities

11 SEC. 201. EXPANSION OF FUNCTIONS OF FEDERAL PARENT

12 LOCATOR SERVICE.

13 Section 453(a) (42 U.S.C. 653(a)) is amended by

14 striking ‘‘enforcing support obligations against such par15 ent’’ and inserting ‘‘establishing parentage, or establish16 ing, modifying, and enforcing child support obligations,

17 and which shall use safeguards to prevent the disclosure

18 of information in cases that would jeopardize the safety

19 of the custodial parent, the noncustodial parent, or any

20 child of either such parent’’.

21 SEC. 202. EXPANSION OF FEDERAL PARENT LOCATOR SYS22 TEMS.

23 (a) ACCESS TO ADDITIONAL DATA BASES.—Section

24 453 (42 U.S.C. 653) is amended—
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1 (1) in subsection (b), by striking ‘‘the most re2 cent address and place of employment’’ and insert3 ing ‘‘the most recent residential address, employer

4 name and address, and amounts and nature of in5 come and assets’’; and

6 (2) in subsection (e), by adding at the end the

7 following:

8 ‘‘(4) The Secretary of the Treasury shall enter into

9 an agreement with the Secretary to provide prompt access

10 by the Secretary (in accordance with this subsection and

11 section 6103(l)(6) of the Internal Revenue Code of 1986)

12 to all Federal income tax returns filed by individuals with

13 the Internal Revenue Service.’’.

14 (b) EXPANSION OF ACCESS TO THE NATIONAL PAR15 ENT LOCATOR NETWORK.—Section 453 (42 U.S.C. 653)

16 is amended by adding at the end the following:

17 ‘‘(g) The Secretary shall expand the Parent Locator

18 Service to establish a national network based on the com19 prehensive statewide child support enforcement systems

20 developed by the States, to—

21 ‘‘(1) allow each State to—

22 ‘‘(A) locate any absent parent who owes

23 child support or for whom a child support obli24 gation is being established, by—
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1 ‘‘(i) accessing the records of other

2 State agencies and sources of locate infor3 mation directly from one computer system

4 to another; and

5 ‘‘(ii) accessing Federal sources of lo6 cate information in the same fashion;

7 ‘‘(B) access the files of other States to de8 termine whether there are other child support

9 orders and obtain the details of those orders;

10 ‘‘(C) provide for both on-line and batch

11 processing of locate requests, with on-line ac12 cess restricted to cases in which the information

13 is needed immediately (for such reasons as

14 court appearances) and batch processing used

15 to access data bases to locate individuals or up16 date information periodically; and

17 ‘‘(D) direct locate requests to individual

18 States or Federal agencies, broadcast requests

19 to selected States, or broadcast cases to all

20 States when there is no indication of the source

21 of needed information;

22 ‘‘(2) provide for a maximum of 48-hour turn23 around time for information to be broadcast and re24 turned to a requesting State;
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1 ‘‘(3) provide ready access to courts and admin2 istrative agencies of the information on the network

3 by location of a computer terminal in each court;

4 and

5 ‘‘(4) access the registries of child support or6 ders maintained by States pursuant to section

7 466(a)(20)(A).’’.

8 SEC. 203. FEDERAL CHILD SUPPORT ORDER REGISTRY.

9 (a) ESTABLISHMENT.—Not later than October 1,

10 1995, the Secretary shall establish a Federal registry of

11 all child support orders recorded in State registries estab12 lished pursuant to section 466(a)(20)(A) of the Social Se13 curity Act.

14 (b) COMPARISON OF INFORMATION ON W–4 FORMS

15 WITH INFORMATION IN CHILD SUPPORT ORDERS.—With16 in 10 days after the registry established under subsection

17 (a) receives a W–4 form of an employee, the registry

18 shall—

19 (1) compare the information on the form with

20 the information in the registry on the child support

21 obligations of the employee; and

22 (2) transmit to the registry established pursu23 ant to section 466(a)(20)(A) of the Social Security

24 Act of the State that is collecting and disbursing the

25 child support payment—
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1 (A) a notice as to whether the amount

2 specified on the W–4 form as the monthly child

3 support obligation of the employee is accurate

4 or not; and

5 (B) the name and address of the employee.

6 (c) REGULATIONS.—The Secretary shall prescribe

7 such regulations as may be necessary to carry out this

8 section, especially in cases involving an employee who has

9 2 or more employers or child support obligations.

10 (d) STATE ACCESS TO THE REGISTRY.—The Sec11 retary shall, upon request of any State, provide the State

12 with access to the information contained in the registry

13 established under subsection (a).

14 (e) SAFEGUARDS.—The Secretary shall implement

15 such safeguards as may be necessary to prevent the disclo16 sure of information of the registry established under sub17 section (a) in cases that would jeopardize the safety of

18 a custodial parent, a noncustodial parent, or a child of

19 such a parent.

20 (f) DEFINITIONS.—As used in this section:

21 (1) CHILD SUPPORT ORDER.—The term ‘‘child

22 support order’’ means an order requiring payments

23 for support (including medical support) and mainte24 nance of a child or of a child and the parent with

25 whom the child is living.
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1 (2) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Health and Human Services.

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

4 several States, the District of Columbia, the Com5 monwealth of Puerto Rico, the Commonwealth of the

6 Northern Mariana Islands, the United States Virgin

7 Islands, Guam, American Samoa, and the Trust

8 Territory of the Pacific Islands.

9 SEC. 204. NATIONAL REPORTING OF EMPLOYEES AND

10 CHILD SUPPORT INFORMATION.

11 (a) IN GENERAL.—The Secretary of the Treasury, in

12 consultation with the Secretary of Labor, shall establish

13 a system of reporting of employees by requiring employers

14 to provide a copy of every employee’s W–4 form to the

15 Federal child support order registry established pursuant

16 to section 203(a) of this Act—

17 (1) in the case of employees hired on or after

18 the effective date of this section, on the date the em19 ployee is hired; or

20 (2) in the case of employees hired before such

21 effective date, within 10 days after such effective

22 date.

23 (b) INCLUSION OF CHILD SUPPORT INFORMATION

24 ON W–4 FORMS.—The Secretary of the Treasury shall
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1 modify the W–4 form to enable the employee to indicate

2 on the form—

3 (1) whether the employee owes child support,

4 and if so—

5 (A) the amount of the support payable;

6 (B) whether the support is to be paid

7 through wage withholding; and

8 (C) to whom the support is to be paid; and

9 (2) whether health care insurance is available to

10 the new employee, and, if so, whether the employee

11 has obtained such insurance for the dependent chil12 dren of the employee.

13 SEC. 205. FEDERAL MATCHING PAYMENTS.

14 (a) INCREASED BASE MATCHING RATE.—Section

15 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

16 follows:

17 ‘‘(2) The percent described in this paragraph

18 for a quarter in a fiscal year is—

19 ‘‘(A) 69 percent, for fiscal year 1996;

20 ‘‘(B) 72 percent, for fiscal year 1997; and

21 ‘‘(C) 75 percent, for fiscal year 1998 and

22 each succeeding fiscal year.’’.

23 (b) MAINTENANCE OF EFFORT.—Section 455 (42

24 U.S.C. 655) is amended—
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1 (1) in subsection (a)(1), in the matter preced2 ing subparagraph (A), by striking ‘‘From’’ and in3 serting ‘‘Subject to subsection (c), from’’; and

4 (2) by inserting after subsection (b) the follow5 ing:

6 ‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding

7 subsection (a), the total expenditures for the State pro8 gram under this part for each fiscal year, reduced by the

9 percent specified in subsection (a)(2) for the fiscal year,

10 shall not be less than such total expenditures for fiscal

11 year 1995, reduced by 66 percent.’’

12 (c) CONFORMING AMENDMENT.—Section

13 455(a)(1)(A) (42 U.S.C. 655(a)(1)(A)) is amended by

14 striking ‘‘specified’’ and inserting ‘‘described’’.

15 SEC. 206. PERFORMANCE-BASED INCENTIVES AND PEN16 ALTIES.

17 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH18 ING RATE.—

19 (1) IN GENERAL.—Section 458 (42 U.S.C. 658)

20 is amended to read as follows:

21 ‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE

22 ‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—

23 ‘‘(1) IN GENERAL.—In order to encourage and

24 reward State child support enforcement programs

25 which perform in an effective manner, the Federal

26 matching rate for payments to a State under section
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1 455(a)(1)(A), for each fiscal year beginning on or

2 after October 1, 1997, shall be increased by a factor

3 reflecting the sum of the applicable incentive adjust4 ments (if any) determined in accordance with regu5 lations under this section with respect to Statewide

6 paternity establishment and to overall performance

7 in child support enforcement.

8 ‘‘(2) STANDARDS.—

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

10 specify in regulations—

11 ‘‘(i) the levels of accomplishment, and

12 rates of improvement as alternatives to

13 such levels, which States must attain to

14 qualify for incentive adjustments under

15 this section; and

16 ‘‘(ii) the amounts of incentive adjust17 ment that shall be awarded to States

18 achieving specified accomplishment or im19 provement levels, which amounts shall be

20 graduated, ranging up to—

21 ‘‘(I) 5 percentage points, in con22 nection with Statewide paternity es23 tablishment; and
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1 ‘‘(II) 10 percentage points, in

2 connection with overall performance in

3 child support enforcement.

4 ‘‘(B) LIMITATION.—In setting performance

5 standards pursuant to subparagraph (A)(i) and

6 adjustment amounts pursuant to subparagraph

7 (A)(ii), the Secretary shall ensure that the ag8 gregate number of percentage point increases as

9 incentive adjustments to all States do not ex10 ceed such aggregate increases as assumed by

11 the Secretary in estimates of the cost of this

12 section as of June 1994, unless the aggregate

13 performance of all States exceeds the projected

14 aggregate performance of all States in such cost

15 estimates.

16 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST17 MENT.—The Secretary shall determine the amount

18 (if any) of incentive adjustment due each State on

19 the basis of the data submitted by the State through

20 the system prescribed by the Secretary in regula21 tions issued pursuant to section 259 of the Family

22 Self-Sufficiency Act of 1994, concerning the levels of

23 accomplishment (and rates of improvement) with re24 spect to performance indicators specified by the Sec25 retary pursuant to this section.
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1 ‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE AD2 JUSTMENT.—The total percentage point increase de3 termined pursuant to this section with respect to a

4 State program in a fiscal year shall apply as an ad5 justment to the percent described in section

6 455(a)(2) for payments to such State for the suc7 ceeding fiscal year.

8 ‘‘(b) MEANING OF TERMS.—For purposes of this sec9 tion—

10 ‘‘(1) the term ‘Statewide paternity establish11 ment percentage’ means, with respect to a fiscal

12 year, the ratio (expressed as a percentage) of—

13 ‘‘(A) the total number of out-of-wedlock

14 children in the State under one year of age for

15 whom paternity is established or acknowledged

16 during the fiscal year, to

17 ‘‘(B) the total number of children born out

18 of wedlock in the State during such fiscal year;

19 and

20 ‘‘(2) the term ‘overall performance in child sup21 port enforcement’ means a measure or measures of

22 the effectiveness of the State agency in a fiscal year

23 which takes into account factors including—
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1 ‘‘(A) the percentage of cases requiring a

2 child support order in which such an order was

3 established;

4 ‘‘(B) the percentage of cases in which child

5 support is being paid;

6 ‘‘(C) the ratio of child support collected to

7 child support due; and

8 ‘‘(D) the cost-effectiveness of the State

9 program, as determined in accordance with

10 standards established by the Secretary in regu11 lations.’’.

12 (b) TITLE IV–D PAYMENT ADJUSTMENT.—Section

13 455(a)(2) (42 U.S.C. 655(a)(2)), as amended by section

14 205 of this Act, is amended—

15 (1) by striking the period at the end of sub16 paragraph (C) and inserting a comma; and

17 (2) by adding after and below subparagraph

18 (C), flush with the left margin of the subsection, the

19 following: ‘‘increased by the incentive adjustment

20 factor (if any) determined by the Secretary pursuant

21 to section 458.’’.

22 (c) CONFORMING AMENDMENTS.—Section 454(22)

23 (42 U.S.C. 654(22)) is amended—
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1 (1) by striking ‘‘incentive payments’’ the first

2 place such term appears and inserting ‘‘incentive ad3 justments’’; and

4 (2) by striking ‘‘any such incentive payments

5 made to the State for such period’’ and inserting

6 ‘‘any increases in Federal payments to the State re7 sulting from such incentive adjustments’’.

8 (d) CALCULATION OF IV–D PATERNITY ESTABLISH9 MENT PERCENTAGE.—

10 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

11 amended in the matter preceding subparagraph (A),

12 by inserting ‘‘its overall performance in child sup13 port enforcement is satisfactory (as defined in sec14 tion 458(b) and regulations of the Secretary), and’’

15 after ‘‘1994,’’.

16 (2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

17 amended—

18 (A) in subparagraph (A), in the matter

19 preceding clause (i)—

20 (i) by striking ‘‘paternity establish21 ment percentage’’ and inserting ‘‘IV–D pa22 ternity establishment percentage’’; and

23 (ii) by striking ‘‘(or all States, as the

24 case may be)’’;
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1 (B) in subparagraph (A)(i), by striking

2 ‘‘during the fiscal year’’;

3 (C) in subparagraph (A)(ii)(I), by striking

4 ‘‘as of the end of the fiscal year’’ and inserting

5 ‘‘in the fiscal year or, at the option of the

6 State, as of the end of such year’’;

7 (D) in subparagraph (A)(ii)(II), by strik8 ing ‘‘or (E) as of the end of the fiscal year’’

9 and inserting ‘‘in the fiscal year or, at the op10 tion of the State, as of the end of such year’’;

11 (E) in subparagraph (A)(iii)—

12 (i) by striking ‘‘during the fiscal

13 year’’; and

14 (ii) by striking ‘‘and’’ at the end; and

15 (F) in the matter following subparagraph

16 (A)—

17 (i) by striking ‘‘who were born out of

18 wedlock during the immediately preceding

19 fiscal year’’ and inserting ‘‘born out of

20 wedlock’’;

21 (ii) by striking ‘‘such preceding fiscal

22 year’’ both places such term appears and

23 inserting ‘‘the preceding fiscal year’’; and

24 (iii) by striking ‘‘or (E)’’ the 2nd

25 place such term appears.
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1 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

2 amended—

3 (A) by striking subparagraph (A) and re4 designating subparagraphs (B) and (C) as sub5 paragraphs (A) and (B), respectively;

6 (B) in subparagraph (A), as so redesig7 nated, by striking ‘‘the percentage of children

8 born out-of-wedlock in the State’’ and inserting

9 ‘‘the percentage of children in the State who

10 are born out of wedlock or for whom support

11 has not been established’’; and

12 (C) in subparagraph (B), as so redesig13 nated—

14 (i) by inserting ‘‘and overall perform15 ance in child support enforcement’’ after

16 ‘‘paternity establishment percentages’’; and

17 (ii) by inserting ‘‘and securing sup18 port’’ before the period.

19 (e) TITLE IV–A PAYMENT REDUCTION.—Section

20 403 (42 U.S.C. 603) is amended—

21 (1) in subsection (a), by striking ‘‘1958—’’ and

22 inserting ‘‘1958—(subject to subsection (h))—’’;

23 (2) in subsection (h), by striking all that pre24 cedes paragraph (3) and inserting the following:
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1 ‘‘(h)(1) If the Secretary finds, with respect to a State

2 program under this part in a fiscal year beginning on or

3 after October 1, 1996—

4 ‘‘(A)(i) on the basis of data submitted by a

5 State through the system referred to in section

6 458(a)(3), that the State program in such fiscal

7 year failed to achieve the reqired paternity establish8 ment percentage (as defined in section 452(g)(2)(A))

9 or the appropriate level of overall performance in

10 child support enforcement (as defined in section

11 458(b)(2)), or to meet other performance measures

12 that may be established by the Secretary; or

13 ‘‘(ii) on the basis of an audit or audits of such

14 State data conducted pursuant to section

15 452(a)(4)(C), that the State data submitted through

16 the system referred to in section 458(a)(3) is incom17 plete or unreliable; and

18 ‘‘(B) that, with respect to the succeeding fiscal

19 year—

20 ‘‘(i) the State failed to take sufficient cor21 rective action to achieve the appropriate per22 formance levels as described in subparagraph

23 (A)(i); or
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1 ‘‘(ii) the data submitted by the State

2 through the system referred to in section

3 458(a)(3) is incomplete or unreliable,

4 the amounts otherwise payable to the State under this

5 part for quarters after the end of the immediately succeed6 ing fiscal year, before quarters occurring after the end of

7 the 1st quarter throughout which the State program is

8 in compliance with the performance requirement, shall be

9 reduced by the percentage specified in paragraph (2) of

10 this subsection.

11 ‘‘(2) The reductions required under paragraph (1)

12 shall be—

13 ‘‘(A) not less than 1 nor more than 2 percent;

14 or

15 ‘‘(B) not less than 2 nor more than 3 percent,

16 if the finding is the 2nd consecutive finding made

17 pursuant to paragraph (1); or

18 ‘‘(C) not less than 3 nor more than 5 percent,

19 if the finding is the 3rd or a subsequent consecutive

20 such finding.’’; and

21 (3) in subsection (h)(3), by striking ‘‘not in full com22 pliance’’ and all that follows and inserting ‘‘determined as

23 a result of an audit to have submitted incomplete or unre24 liable data through the system referred to in section

25 458(a)(3), shall be determined to have submitted adequate
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1 data if the Secretary determines that the extent of the

2 incompleteness or unreliability of the data is of a technical

3 nature which does not adversely affect the determination

4 of the level of the State’s performance.’’.

5 (f) TEMPORARY CONTINUED APPLICABILITY OF

6 FORMER INCENTIVE SYSTEM.—Section 458 of the Social

7 Security Act, as in effect immediately before the enact8 ment of this section, shall remain in effect for purposes

9 of incentive payments to States for fiscal years before fis10 cal year 1998.

11 SEC. 207. INCREASED FEDERAL FINANCIAL PARTICIPATION

12 FOR STATES WITH UNIFIED CHILD SUPPORT

13 ENFORCEMENT PROGRAMS.

14 (a) IN GENERAL.—Section 455(a)(2) (42 U.S.C.

15 655(a)(2)), as amended by sections 205(a) and 206(b) of

16 this Act, is amended—

17 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’;

18 (2) by redesignating subparagraphs (A), (B),

19 and (C) as clauses (i), (ii), and (iii), respectively;

20 and

21 (3) by adding after and below the end the fol22 lowing:

23 ‘‘(B) The percent described in this paragraph for a

24 State for a quarter in a fiscal year shall be the percent

25 specified in subparagraph (A) for the fiscal year increased
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1 by 5 percentage points if the following apply to the State

2 child support enforcement program:

3 ‘‘(i) All authority, accountability, and respon4 sibility for the program is centered at the State level

5 in a unified State agency.

6 ‘‘(ii) The program is administered by a single

7 agency, and policymaking for the program is central8 ized.

9 ‘‘(iii) There is statewide uniformity of case10 processing procedures and forms.

11 ‘‘(iv) There is a uniform hearing and appeal

12 process.

13 ‘‘(v) All financing decisions are made at the

14 State level.

15 ‘‘(vi) All non-Federal funding is appropriated at

16 the State level.

17 ‘‘(vii) All personnel and contracting decision

18 making is made by the State agency, and all person19 nel are employees of the State agency, except that

20 the Secretary may by regulation establish exceptions

21 with respect to not more than 10 percent of person22 nel.’’.

23 (b) CONFORMING AMENDMENT.—Section 455(c) (42

24 U.S.C. 655(c)), as added by section 205 of this Act, is

25 amended by striking ‘‘(a)(2)’’ and inserting ‘‘(a)(2)(A)’’.
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1 SEC. 208. NEW CHILD SUPPORT AUDIT PROCESS.

2 (a) IN GENERAL.—After consultation with the Child

3 Support Audit Advisory Committee, the Secretary of

4 Health and Human Services shall—

5 (1) in accordance with subsection (b), promul6 gate new criteria and standards for conducting re7 views under section 452(a)(4) of the Social Security

8 Act and establishing a system for the reporting of

9 data relevant to such reviews, which emphasize pro10 gram outcomes; and

11 (2) not later than the 1st day of the 12th cal12 endar month beginning after the date of the enact13 ment of this Act, recommend to the Congress such

14 legislation as may be necessary, with respect to the

15 financing of State child support programs under

16 part D of title IV of the Social Security Act, to en17 hance the effectiveness of such audits and the asso18 ciated penalty process under section 403(h) of the

19 Social Security Act.

20 (b) TIMING.—

21 (1) NOTICE OF PROPOSED RULEMAKING.—Not

22 later than 270 days after the date of the enactment

23 of this Act, the Secretary of Health and Human

24 Services shall issue a notice of proposed rulemaking

25 with respect to the audit criteria and standards re26 quired by subsection (a)(1).
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1 (2) FINAL REGULATIONS.—Not later than the

2 first day of the 12th calendar month beginning after

3 the date of the enactment of this Act, and after al4 lowing not less than 45 days for public comment on

5 the proposed rulemaking required by paragraph (1)

6 of this subsection, the Secretary of Health and

7 Human Services shall issue final regulations with re8 spect to the audit criteria and standards required by

9 subsection (a)(1).

10 SEC. 209. NATIONAL CHILD SUPPORT GUIDELINES COMMIS11 SION.

12 (a) ESTABLISHMENT.—There is hereby established a

13 commission to be known as the ‘‘National Child Support

14 Guidelines Commission’’ (in this section referred to as the

15 ‘‘Commission’’).

16 (b) GENERAL DUTIES.—The Commission shall de17 velop a national child support guideline for consideration

18 by the Congress that is based on a study of various guide19 line models, the benefits and deficiencies of such models,

20 and any needed improvements.

21 (c) MEMBERSHIP.—

22 (1) NUMBER; APPOINTMENT.—

23 (A) IN GENERAL.—The Commission shall

24 be composed of 12 individuals appointed jointly

25 by the Secretary of Health and Human Services
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1 and the Congress, not later than January 15,

2 1996, of which—

3 (i) 2 shall be appointed by the Chair4 man of the Committee on Finance of the

5 Senate, and 1 shall be appointed by the

6 ranking minority member of the Commit7 tee;

8 (ii) 2 shall be appointed by the Chair9 man of the Committee on Ways and Means

10 of the House of Representatives, and 1

11 shall be appointed by the ranking minority

12 member of the Committee; and

13 (iii) 6 shall be appointed by the Sec14 retary of Health and Human Services.

15 (B) QUALIFICATIONS OF MEMBERS.—

16 Members of the Commission shall have exper17 tise and experience in the evaluation and devel18 opment of child support guidelines. At least 1

19 member shall represent advocacy groups for

20 custodial parents, at least 1 member shall rep21 resent advocacy groups for noncustodial par22 ents, and at least 1 member shall be the direc23 tor of a State program under part D of title IV

24 of the Social Security Act.
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1 (2) TERMS OF OFFICE.—Each member shall be

2 appointed for a term of 2 years. A vacancy in the

3 Commission shall be filled in the manner in which

4 the original appointment was made.

5 (d) COMMISSION POWERS, COMPENSATION, ACCESS

6 TO INFORMATION, AND SUPERVISION.—The first sentence

7 of subparagraph (C), the first and third sentences of sub8 paragraph (D), subparagraph (F) (except with respect to

9 the conduct of medical studies), clauses (ii) and (iii) of

10 subparagraph (G), and subparagraph (H) of section

11 1886(e)(6) of the Social Security Act shall apply to the

12 Commission in the same manner in which such provisions

13 apply to the Prospective Payment Assessment Commis14 sion.

15 (e) REPORT.—Not later than 2 years after the ap16 pointment of members, the Commission shall submit to

17 the President, the Committee on Ways and Means of the

18 House of Representatives, and the Committee on Finance

19 of the Senate, a recommended national child support

20 guideline and a final assessment of issues relating to such

21 a proposed national child support guideline.

22 (f) TERMINATION.—The Commission shall terminate

23 6 months after the submission of the report described in

24 subsection (e).
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1 SEC. 210. CHILD SUPPORT AUDIT ADVISORY COMMITTEE.

2 (a) ESTABLISHMENT.—Not later than 60 days after

3 the date of the enactment of this Act, the Secretary of

4 Health and Human Services (in this section referred to

5 as the ‘‘Secretary’’) shall establish a committee which

6 shall be known as the Child Support Audit Advisory Com7 mittee (in this section referred to as the ‘‘Committee’’).

8 (b) DUTIES.—The Committee shall assist the Sec9 retary in—

10 (1) developing revised audit criteria and stand11 ards to be used pursuant to section 452(a)(4) of the

12 Social Security Act based on—

13 (A) common data elements which are de14 fined, collected, and reported in a uniform man15 ner from each State;

16 (B) numeric measures of the outcomes of

17 the child support enforcement program under

18 part D of title IV of such Act; and

19 (C) numeric measures for assessing com20 pliance with the regulations issued by the Sec21 retary pursuant to subsections (h) and (i) of

22 section 452 of such Act;

23 (2) formulating a definition of substantial com24 pliance that is based on such revised audit criteria

25 and standards;
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1 (3) determining the period of time after interim

2 or final Federal regulations are issued implementing

3 such revised audit criteria and standards after which

4 a State may be audited to determine compliance

5 with such regulations; and

6 (4) recommending to the Congress such legisla7 tion as may be necessary, with respect to the financ8 ing of child support programs under part D of title

9 IV of such Act, to enhance the effectiveness of au10 dits required to be conducted under section

11 452(a)(4) of such Act and the associated penalty

12 process under section 403(h) of such Act.

13 (c) MEMBERSHIP.—The Committee shall be com14 posed of not less than 6 members appointed by the Sec15 retary, including—

16 (1) at least 1 director of a State child support

17 enforcement program operating under part D of title

18 IV of the Social Security Act;

19 (2) at least 1 commissioner of a State human

20 services agency;

21 (3) individuals who have demonstrated expertise

22 in the development of quantitative and qualitative

23 measures for performance-based audits; and

24 (4) at least 2 representatives of recipients of

25 child support enforcement services.
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1 (d) PROCEDURE.—

2 (1) PARTICIPATION OF THE SECRETARY.—The

3 Secretary (or a designee of the Secretary) shall be

4 an ex officio member of the Committee, and shall

5 not vote on matters before the Committee.

6 (2) MEETINGS.—The Committee shall meet at

7 the call of the Secretary or a designee of the Sec8 retary.

9 (e) COMPENSATION.—

10 (1) IN GENERAL.—No member of the Commit11 tee may receive compensation for service on the

12 Committee.

13 (2) TRAVEL EXPENSES.—Each member of the

14 Committee shall receive travel expenses, including

15 per diem in lieu of subsistence, in accordance with

16 sections 5702 and 5703 of title 5, United States

17 Code.

18 (f) ADMINISTRATIVE SUPPORT.—Upon request of the

19 Committee, the Secretary shall provide to the Committee

20 the administrative support services necessary for the Com21 mittee to carry out its duties under this Act.

22 (g) INAPPLICABILITY OF THE FEDERAL ADVISORY

23 COMMITTEE ACT.—The Federal Advisory Committee Act

24 shall not apply to the Committee.
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1 (h) REPORT.—Within 180 days after the date of the

2 enactment of this Act, the Committee shall submit to the

3 Secretary a report that contains proposed criteria and

4 standards for conducting audits under section 452(a)(4)

5 of the Social Security Act, which emphasize program out6 comes.

7 Subtitle B—Paternity

8 Establishment

9 SEC. 211. PATERNITY ESTABLISHMENT PROCEDURES.

10 (a) IN GENERAL.—Section 466(a)(5) (42 U.S.C.

11 666(a)(5)) is amended by striking subparagraphs (C) and

12 (D) and inserting the following:

13 ‘‘(C)(i) Procedures for a simple civil process for

14 voluntarily acknowledging paternity under which the

15 State must provide that, before a mother and a pu16 tative father can sign an acknowledgment of pater17 nity, the putative father and the mother must be

18 given notice, orally, in writing, and in a language

19 that each can understand, of the alternatives to, the

20 legal consequences of, and the rights (including, if 1

21 parent is a minor, any rights afforded due to minor22 ity status) and responsibilities that arise from, sign23 ing the acknowledgment.

24 ‘‘(ii) Such procedures must include a hospital25 based program for the voluntary acknowledgment of
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1 paternity focusing on the period immediately before

2 or after the birth of a child.

3 ‘‘(iii) Such procedures must require the State

4 agency responsible for maintaining birth records to

5 offer voluntary paternity establishment services.

6 ‘‘(iv) The Secretary shall prescribe regulations

7 governing voluntary paternity establishment services

8 offered by hospitals and birth record agencies. The

9 Secretary shall prescribe regulations specifying the

10 types of other entities that may offer voluntary pa11 ternity establishment services, and governing the

12 provision of such services, which shall include a re13 quirement that such an entity must use the same

14 notice provisions used by, the same materials used

15 by, provide the personnel providing such services

16 with the same training provided by, and evaluate the

17 provision of such services in the same manner as,

18 voluntary paternity establishment programs of hos19 pitals and birth record agencies.

20 ‘‘(v) Such procedures must require the State

21 and those required to establish paternity to use only

22 the affidavit developed under section 452(a)(7) for

23 the voluntary acknowledgment of paternity, and to

24 give full faith and credit to such an affidavit signed

25 in any other State.
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1 ‘‘(D)(i) Procedures under which a signed ac2 knowledgment of paternity is considered a legal find3 ing of paternity, subject to the right of any signa4 tory to rescind the acknowledgment within 30 days.

5 ‘‘(ii)(I) Procedures under which, after the 30-

6 day period referred to in clause (i), a signed ac7 knowledgment of paternity may be challenged in

8 court only on the basis of fraud, duress, or material

9 mistake of fact, with the burden of proof upon the

10 challenger, and under which the legal responsibilities

11 (including child support obligations) of any signatory

12 arising from the acknowledgment may not be sus13 pended during the challenge, except for good cause

14 shown.

15 ‘‘(II) Procedures under which, after the 30-day

16 period referred to in clause (i), a minor who signs

17 an acknowledgment of paternity other than in the

18 presence of a parent or court-appointed guardian ad

19 litem may rescind the acknowledgment in a judicial

20 or administrative proceeding, until the earlier of—

21 ‘‘(aa) attaining the age of majority; or

22 ‘‘(bb) the date of the first judicial or ad23 ministrative proceeding brought (after the sign24 ing) to establish a child support obligation, visi25 tation rights, or custody rights with respect to
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1 the child whose paternity is the subject of the

2 acknowledgment, and at which the minor is rep3 resented by a parent, guardian ad litem, or at4 torney.’’.

5 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI6 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

7 amended by inserting ‘‘, and develop an affidavit to be

8 used for the voluntary acknowledgment of paternity which

9 shall include the social security account number of each

10 parent’’ before the semicolon.

11 SEC. 212. ENHANCING OUTREACH TO ENCOURAGE PATER12 NITY ESTABLISHMENT.

13 (a) IN GENERAL.—Section 454 (42 U.S.C. 654) is

14 amended—

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

16 (23);

17 (2) by striking the period at the end of para18 graph (24) and inserting ‘‘; and’’; and

19 (3) by inserting after paragraph (24) the fol20 lowing:

21 ‘‘(25) in order to encourage voluntary paternity

22 acknowledgement, provide for—

23 ‘‘(A) the development and distribution of

24 material at schools, hospitals, agencies admin25 istering programs under part A of this title and
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1 title XIX, prenatal health-care providers, WIC

2 programs, health departments, clinics, and

3 other appropriate locations, that describe the

4 benefits and responsibilities of paternity estab5 lishment and the process by which paternity

6 services may be obtained; and

7 ‘‘(B) outreach programs at hospitals and

8 birthing facilities and programs for prenatal

9 care, child birth, and parenting, in accordance

10 with regulations which shall be prescribed by

11 the Secretary not later than 1 year after such

12 effective date.’’.

13 (b) ENHANCED FEDERAL MATCH.—Section

14 455(a)(1) (42 U.S.C. 655(a)(1)) is amended—

15 (1) by striking ‘‘and’’ at the end of subpara16 graph (B);

17 (2) by inserting ‘‘and’’ at the end of subpara18 graph (C); and

19 (3) by inserting after subparagraph (C) the fol20 lowing:

21 ‘‘(D) equal to 90 percent (rather than the

22 percentage specified in subparagraph (A)) of so

23 much of the sums expended during such quar24 ter as are attributable to costs incurred in car25 rying out section 454(25);’’.
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1 SEC. 213. STRENGTHENING CIVIL PROCEDURES FOR PA2 TERNITY ESTABLISHMENT.

3 Section 466(a) (42 U.S.C. 666(a)) is amended by in4 serting after paragraph (11) the following:

5 ‘‘(12) As part of the State’s civil procedures for

6 establishment of paternity, the State shall—

7 ‘‘(A) allow for expedited procedures for or8 dering genetic tests upon the birth of a child if

9 the putative father of the child has not ac10 knowledged paternity of the child;

11 ‘‘(B) authorize the State agency to order

12 all parties to a paternity action to submit to ge13 netic testing upon request of any party or if the

14 putative father denies paternity or fails to ap15 pear at any scheduled conference to respond to

16 the allegation of paternity;

17 ‘‘(C)(i) advance the costs of genetic tests,

18 subject to recoupment from the putative father

19 of a child if he is determined to be the biologi20 cal father of the child; and

21 ‘‘(ii) if the result of genetic testing done by

22 a laboratory is disputed, then, upon reasonable

23 request of any party, order that additional test24 ing be done by the same laboratory or by an

25 independent laboratory at the expense of the re26 questing party;
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1 ‘‘(D) authorize the State to forgive costs

2 incurred by the State for delivery medical ex3 penses or payments of aid under the State plan

4 approved under part A (but not forgive debts

5 owed to the mother) if the father of the child

6 cooperates or acknowledges paternity before or

7 after the completion of a genetic test;

8 ‘‘(E) authorize the State agency to enter

9 default orders to establish paternity if a party

10 refuses to comply with an order to submit to

11 genetic testing;

12 ‘‘(F) prohibit the use of hearings by a

13 court or administrative agency to ratify an ac14 knowledgement of paternity;

15 ‘‘(G) allow a putative father of a child (if

16 not presumed to be the father under State law)

17 standing to bring paternity actions;

18 ‘‘(H) after paternity of a child is estab19 lished by affidavit, and until an action for cus20 tody of the child is brought and heard by a tri21 bunal, presume that the primary caretaker of a

22 child born out of wedlock has physical custody

23 of the child (with the mother presumed to be

24 the primary caretaker of a newborn child whose

25 paternity is established by affidavit in a hos-
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1 pital), unless the mother and father of the child

2 agree that physical custody should be with an3 other individual;

4 ‘‘(I) upon motion by a party, require a tri5 bunal in contested cases to order the absent

6 parent of a child to provide child support with

7 respect to the child on a temporary basis in ac8 cordance with State law if—

9 ‘‘(i) the results of parentage testing

10 create a rebuttable presumption that the

11 putative parent is a parent of the child;

12 ‘‘(ii) the person from whom support is

13 sought has signed a verified statement of

14 parentage of the child; or

15 ‘‘(iii) there is other clear and convinc16 ing evidence that the person from whom

17 support is sought is a parent of the child;

18 ‘‘(J) repeal any law that provides for pa19 ternity cases to be tried by a jury, except to the

20 extent that such a trial is required by the State

21 constitution; and

22 ‘‘(K) have and use laws that provide for

23 the introduction and admission into evidence,

24 without need for third-party foundation testi25 mony, of pre-natal and post-natal birth-related
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1 and parentage-testing bills, under which such a

2 bill shall be regarded as prima facie evidence of

3 the amount incurred on behalf of the child for

4 the procedures included in the bill.’’.

5 SEC. 214. PENALTY FOR FAILURE TO ESTABLISH PATER6 NITY PROMPTLY.

7 Section 403 (42 U.S.C. 603) is amended by inserting

8 after subsection (h) the following:

9 ‘‘(i) PENALTY FOR FAILURE TO ESTABLISH PATER10 NITY PROMPTLY.—

11 ‘‘(1) IN GENERAL.—The amounts otherwise

12 payable under subsection (a) to a State for any cal13 endar quarter beginning 10 months or more after

14 the date of the enactment of this subsection shall be

15 reduced by an amount, determined pursuant to regu16 lations in accordance with paragraph (2), for certain

17 children for whom paternity has not been estab18 lished.

19 ‘‘(2) REDUCTION FORMULA.—The Secretary

20 shall promulgate regulations specifying the formula

21 for the reduction required under this subsection,

22 which formula shall provide for a reduction in Fed23 eral matching payments to a State under this sec24 tion by an amount equal to the product of—
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1 ‘‘(A) the number (after allowing for the

2 tolerance level established under paragraph (3))

3 of children born on or after the date that is 10

4 months after the date of the enactment of this

5 subsection—

6 ‘‘(i) who are receiving aid under the

7 State plan approved under part A;

8 ‘‘(ii) whose custodial relatives have,

9 throughout the preceding 12-month period,

10 complied with the cooperation require11 ments specified in section

12 402(a)(26)(B)(i); and

13 ‘‘(iii) for whom paternity has not been

14 established;

15 ‘‘(B) the average monthly assistance pay16 ment under the State plan approved under this

17 part; and

18 ‘‘(C) the Federal matching rate applicable

19 to the assistance payment.

20 ‘‘(3) TOLERANCE LEVEL.—

21 ‘‘(A) IN GENERAL.—For purposes of para22 graph (2)(A), the tolerance level shall not be

23 higher than the applicable percentage of chil24 dren in the State described in paragraph (1),

25 and may decrease over time to make allowance
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1 for a State’s inability to establish paternity in

2 all cases.

3 ‘‘(B) APPLICABLE PERCENTAGE.—As used

4 in subparagraph (A), the term ‘applicable per5 centage’ means—

6 ‘‘(i) 25 percent for fiscal years 1997

7 and 1998;

8 ‘‘(ii) 20 percent for fiscal years 1999

9 and 2000;

10 ‘‘(iii) 15 percent for fiscal years 2001

11 and 2002; and

12 ‘‘(iv) 10 percent for fiscal year 2003

13 and each succeeding fiscal year.’’.

14 Subtitle C—Enforcement

15 SEC. 221. ACCESS TO FINANCIAL RECORDS.

16 Section 466(a) (42 U.S.C. 666(a)), as amended by

17 section 213 of this Act, is amended by inserting after

18 paragraph (12) the following:

19 ‘‘(13) Procedures under which the State may

20 obtain access to financial records maintained by any

21 financial institution doing business in the State, for

22 the purpose of establishing, modifying, or enforcing

23 a child support obligation of the person.’’.
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1 SEC. 222. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

2 Section 466(a) (42 U.S.C. 666(a)), as amended by

3 sections 213 and 221 of this Act, is amended by inserting

4 after paragraph (13) the following:

5 ‘‘(14) Procedures under which the State shall—

6 ‘‘(A) require the court or administrative

7 agency with authority to issue the final order in

8 a child support or parentage case to require

9 each party subject to the order to file with the

10 court or administrative agency, on or before the

11 date the order is issued—

12 ‘‘(i) the party’s residential address or

13 addresses;

14 ‘‘(ii) the party’s mailing address or

15 addresses;

16 ‘‘(iii) the party’s home telephone num17 ber or numbers;

18 ‘‘(iv) the party’s driver’s license num19 ber and the State that issued the license;

20 ‘‘(v) the party’s social security ac21 count number;

22 ‘‘(vi) the name of each employer of

23 the party;

24 ‘‘(vii) the addresses of each place of

25 employment of the party; and
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1 ‘‘(viii) the party’s work telephone

2 number or numbers; and

3 ‘‘(B) require the court or administrative

4 agency in any action related to child support to

5 presume, for the purpose of providing sufficient

6 notice (other than the initial notice in an action

7 to establish parentage or a child support order),

8 that the parent resides at the last residential

9 address given by the parent to the court or

10 agency.’’.

11 SEC. 223. FAIR CREDIT REPORTING ACT AMENDMENT.

12 Section 604 of the Consumer Credit Protection Act

13 (15 U.S.C. 1681b) is amended by adding at the end the

14 following:

15 ‘‘(4) To a State agency administering a State plan

16 under section 454 of the Social Security Act, for use to

17 establish, modify, or enforce a child support award.’’.

18 SEC. 224. ADDITIONAL BENEFITS SUBJECT TO GARNISH19 MENT.

20 (a) FEDERAL DEATH BENEFITS, BLACK LUNG BEN21 EFITS, AND VETERANS BENEFITS.—Section 462(f)(2) (42

22 U.S.C. 662(f)(2)) is amended by striking ‘‘(not including’’

23 and all that follows through ‘‘compensation)’’.

24 (b) WORKERS’ COMPENSATION.—Section 462(f) (42

25 U.S.C. 662(f)) is amended—
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1 (1) by striking ‘‘or’’ at the end of paragraph

2 (1);

3 (2) by striking the period at the end of para4 graph (2) and inserting ‘‘, or’’; and

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

6 ‘‘(3) workers’ compensation benefits.’’.

7 SEC. 225. HOLD ON OCCUPATIONAL, PROFESSIONAL, AND

8 BUSINESS LICENSES.

9 (a) STATE HOLD BASED ON WARRANT OR SUPPORT

10 DELINQUENCY.—Section 466(a) (42 U.S.C. 666(a)), as

11 amended by sections 213, 221, and 222 of this Act, is

12 amended by inserting after paragraph (14) the following:

13 ‘‘(15) Procedures under which the State occu14 pational licensing and regulating departments and

15 agencies (other than the department or agency re16 sponsible for licensing the operation of motor vehi17 cles) may not issue or renew any occupational, pro18 fessional, or business license of—

19 ‘‘(A) a noncustodial parent who is the sub20 ject of an outstanding failure to appear war21 rant, capias, or bench warrant related to a child

22 support proceeding that appears on the State’s

23 crime information system, until removed from

24 the system; or
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1 ‘‘(B) an individual who is delinquent in the

2 payment of child support, until the obligee or a

3 State entity responsible for child support en4 forcement consents to, or a court or administra5 tive agency that is responsible for the order’s

6 enforcement orders, the release of the hold on

7 the license, or an expedited inquiry and review

8 is completed while the individual is granted a

9 60-day temporary license.’’.

10 (b) FEDERAL HOLD BASED ON SUPPORT DELIN11 QUENCY.—A Federal agency may not issue or renew any

12 occupational, professional, or business license of an indi13 vidual who is delinquent in the payment of child support,

14 until the obligee, the obligee’s attorney or a State entity

15 responsible for child support enforcement consents to, or

16 a court or administrative agency that is responsible for

17 the order’s enforcement orders, the release of the hold on

18 the license, or an expedited inquiry and review is com19 pleted while the individual is granted a 60-day temporary

20 license.
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1 SEC. 226. DRIVER’S LICENSES AND VEHICLE REGISTRA2 TIONS DENIED TO PERSONS FAILING TO AP3 PEAR IN CHILD SUPPORT CASES.

4 Section 466(a) (42 U.S.C. 666(a)), as amended by

5 sections 213, 221, 222, and 225 of this Act, is amended

6 by inserting after paragraph (15) the following:

7 ‘‘(16) Procedures under which—

8 ‘‘(A) the State motor vehicle department—

9 ‘‘(i) may not issue or renew the driv10 er’s license or any vehicle registration

11 (other than temporary) of any noncustodial

12 parent who is the subject of an outstand13 ing failure to appear warrant, capias, or

14 bench warrant related to a child support

15 proceeding that appears on the State’s

16 crime information system, until removed

17 from the system; and

18 ‘‘(ii) in any case in which a show

19 cause order has been issued as described in

20 subparagraph (B), may grant a temporary

21 license or vehicle registration to the indi22 vidual pending the show cause hearing or

23 the removal of the warrant, whichever oc24 curs first; and

25 ‘‘(B) a State court, upon receiving notice

26 that an individual to whom a State driver’s li-
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1 cense or vehicle registration has been issued is

2 the subject of a warrant related to a child sup3 port proceeding, shall issue a show cause order

4 to the individual requesting the individual to

5 demonstrate why the individual’s driver’s li6 cense or vehicle registration should not be sus7 pended until the warrant is removed by the

8 State responsible for issuing the warrant.’’.

9 SEC. 227. LIENS.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by

11 sections 213, 221, 222, 225, and 226 of this Act, is

12 amended by inserting after paragraph (16) the following:

13 ‘‘(17) Procedures under which the State shall

14 systematically place liens on all nonexempt real and

15 titled personal property for child support arrearages

16 determined under a court order or an order of an

17 administrative process established under State law,

18 using a method for updating the value of the lien on

19 a regular basis or allowing for an expedited inquiry

20 to and response from a State child support order

21 registry established pursuant to paragraph (20)(A)

22 for proof of the amount of arrears, with an expe23 dited method for the titleholder or the individual

24 owing the arrearage to contest the arrearage or to

25 request a release upon fulfilling the support obliga-
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1 tion, and under which such a lien has precedence

2 over all other encumbrances on a title to personal

3 property other than a purchase money security inter4 est, and that the individual owed the arrearage may

5 execute on, seize, and sell the property in accordance

6 with State law.’’.

7 SEC. 228. FRAUDULENT TRANSFER PURSUIT.

8 Section 466(a) (42 U.S.C. 666(a)), as amended by

9 sections 213, 221, 222, 225, 226, and 227 of this Act,

10 is amended by inserting after paragraph (17) the follow11 ing:

12 ‘‘(18) Procedures requiring that, in any case re13 lated to child support, any transfer of property for

14 significantly less than the fair market value of the

15 property by an individual who owes a child support

16 arrearage shall be presumed to be made with the in17 tent to avoid payment of the arrearage, and may be

18 rebutted by evidence to the contrary.’’.

19 SEC. 229. REPORTING OF CHILD SUPPORT ARREARAGES TO

20 CREDIT BUREAUS.

21 Section 466(a)(7)(A) (42 U.S.C. 666(a)(7)(A)) is

22 amended by striking ‘‘$1,000’’ and inserting ‘‘the amount

23 of the monthly support obligation’’.
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1 SEC. 230. DENIAL OF PASSPORTS TO NONCUSTODIAL PAR2 ENTS SUBJECT TO STATE ARREST WARRANTS

3 IN CASES OF NONPAYMENT OF CHILD SUP4 PORT.

5 The Secretary of State is authorized to refuse a pass6 port or revoke, restrict, or limit a passport in any case

7 in which the Secretary of State determines or is informed

8 by competent authority that the applicant or passport

9 holder is a noncustodial parent who is the subject of an

10 outstanding State warrant of arrest for nonpayment of

11 child support, where the amount in controversy is not less

12 than $10,000.

13 SEC. 231. STATUTES OF LIMITATION.

14 (a) IN GENERAL.—Section 466(a) (42 U.S.C.

15 666(a)), as amended by sections 213, 221, 222, 225, 226,

16 227, and 228 of this Act, is amended by inserting after

17 paragraph (18) the following:

18 ‘‘(19) Procedures which permit the enforcement

19 of any child support order until the child attains at

20 least 30 years of age.’’.

21 (b) APPLICABILITY.—The amendment made by this

22 section shall apply to orders entered before, on, and after

23 the date of the enactment of this Act.
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1 SEC. 232. COLLECTION OF PAST-DUE SUPPORT USING TAX

2 COLLECTION AUTHORITY.

3 (a) EXPANDED ROLE OF THE INTERNAL REVENUE

4 SERVICE.—

5 (1) IN GENERAL.—Section 6305 of the Internal

6 Revenue Code of 1986 (relating to collection of cer7 tain liability) is amended by redesignating sub8 sections (a) and (b) as subsections (b) and (c), re9 spectively, and by inserting before subsection (b) (as

10 so redesignated) the following new subsection:

11 ‘‘(a) IN GENERAL.—The head of any State child sup12 port order registry established pursuant to section

13 466(a)(20)(A) of the Social Security Act may certify to

14 the Secretary for collection under this subsection the

15 amount of any child support obligation. No amount may

16 be certified under the preceding sentence except the

17 amount of the delinquency under a court or administrative

18 order for support and upon a showing by such agency head

19 that such State has made reasonable efforts to collect such

20 amount using its own collection mechanisms.’’

21 (2) CONFORMING AMENDMENTS.—

22 (A) Subsection (b) of section 6305 of such

23 Code (as redesignated by subsection (a)) is

24 amended by striking ‘‘Upon receiving’’ and all

25 that follows through ‘‘Welfare’’ the second place
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1 it appears and inserting ‘‘Upon receiving a cer2 tification referred to in subsection (a)’’.

3 (B) Subsection (c) of section 6305 of such

4 Code (as redesignated by subsection (a)) is

5 amended by striking ‘‘subsection (a)’’ and in6 serting ‘‘subsection (b)’’.

7 (b) COLLECTION OF PAST-DUE SUPPORT USING RE8 FUND OFFSET.—

9 (1) IN GENERAL.—Subsection (c) of section

10 6402 of such Code is amended to read as follows:

11 ‘‘(c) OFFSET OF PAST-DUE SUPPORT AGAINST

12 OVERPAYMENTS.—

13 ‘‘(1) IN GENERAL.—Upon receiving notice from

14 any State registry that an individual owes past-due

15 support, the Secretary shall determine whether any

16 amounts, as refunds of Federal taxes paid, are pay17 able to such individual (regardless of whether such

18 individual filed a tax return as a married or unmar19 ried individual). If the Secretary finds that any such

20 amount is payable, the Secretary—

21 ‘‘(A) shall withhold from such refunds an

22 amount equal to the past-due support,

23 ‘‘(B) shall concurrently send a notice to

24 such individual that the withholding has been

25 made (including in or with such notice a notifi-
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1 cation to any other individual who may have

2 filed a joint return with such individual of the

3 steps which such other individual may take in

4 order to secure his or her proper share of the

5 refund), and

6 ‘‘(C) shall pay such amount to such reg7 istry (together with notice of the individual’s

8 home address).

9 ‘‘(2) PROCEDURE.—

10 ‘‘(A) IN GENERAL.—Prior to notifying the

11 Secretary under paragraph (1) that an individ12 ual owes past-due support, the head of the

13 State registry shall send notice to such individ14 ual that a withholding will be made from any

15 refund otherwise payable to such individual.

16 The notice shall also (i) instruct the individual

17 owing the past-due support of the steps which

18 may be taken to contest the State registry’s de19 termination that past-due support is owed or

20 the amount of the past-due support, and (ii)

21 provide information, as may be prescribed by

22 the Secretary of Health and Human Services by

23 regulation in consultation with the Secretary,

24 with respect to procedures to be followed, in the

25 case of a joint return, to protect the share of
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1 the refund which may be payable to another in2 dividual.

3 ‘‘(B) SPECIAL RULES FOR OFFSETS AGAINST

4 OVERPAYMENTS ON JOINT RETURNS.—

5 ‘‘(i) IN GENERAL.—If the Secretary

6 determines that an amount should be with7 held under paragraph (1), and that the re8 fund from which it should be withheld is

9 based upon a joint return, the Secretary

10 shall notify the State registry that the

11 withholding is being made from a refund

12 based upon a joint return, and shall fur13 nish to the State registry the names and

14 addresses of each spouse filing such joint

15 return.

16 ‘‘(ii) SHARE OF REFUND PAYABLE TO

17 SPOUSE NOT OWING PAST-DUE SUPPORT.—

18 If the other individual filing the joint re19 turn with the named individual owing the

20 past-due support takes appropriate action

21 to secure his or her proper share of a re22 fund from which a withholding was made

23 under paragraph (1), the Secretary shall

24 pay such share to such other individual.

25 The Secretary shall deduct the amount of
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1 such payment from amounts subsequently

2 payable to the State registry to which the

3 amount originally withheld from such re4 fund was paid.

5 ‘‘(C) ERRONEOUS OFFSETS.—In any case

6 in which an amount was withheld under para7 graph (1) and paid to a State registry, and the

8 State registry subsequently determines that the

9 amount certified as past-due support was in ex10 cess of the amount actually owed at the time

11 the amount withheld is to be distributed to or

12 on behalf of the child, the State registry shall

13 pay the excess amount withheld to the named

14 individual thought to have owed the past-due

15 support (or, in the case of amounts withheld on

16 the basis of a joint return, jointly to the parties

17 filing such return).

18 ‘‘(3) REGULATIONS; CONTENTS, ETC.—The

19 Secretary shall issue regulations, approved by the

20 Secretary of Health and Human Services, prescrib21 ing the time or times at which State registries must

22 submit notices of past-due support, the manner in

23 which such notices must be submitted, and the nec24 essary information that must be contained in or ac25 company the notices. The regulations—
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1 ‘‘(A) shall be consistent with the provisions

2 of paragraph (2),

3 ‘‘(B) shall specify the minimum amount of

4 past-due support to which the offset procedure

5 established by paragraph (1) may be applied,

6 and

7 ‘‘(C) shall provide that the Secretary will

8 advise the Secretary of Health and Human

9 Services, not less frequently than annually, of—

10 ‘‘(i) the State registries which have

11 furnished notices of past-due support

12 under paragraph (1) of this subsection,

13 ‘‘(ii) the number of cases in each

14 State with respect to which such notices

15 have been furnished,

16 ‘‘(iii) the amount of support sought to

17 be collected under this subsection by each

18 State registry, and

19 ‘‘(iv) the amount of such collections

20 actually made in the case of each State

21 registry.

22 ‘‘(4) STATE REGISTRY.—For purposes of this

23 subsection, the term ‘State registry’ means any

24 State child support order registry established pursu-
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1 ant to section 466(a)(20)(A) of the Social Security

2 Act.

3 ‘‘(5) PAST-DUE SUPPORT.—For purposes of

4 this subsection, the term ‘past-due support’ means

5 the amount of a delinquency, determined under a

6 court order, or an order of an administrative process

7 established under State law, for support (including

8 medical support) and maintenance of a child, or of

9 a child and the parent with whom the child is living.

10 ‘‘(6) SUBSECTION APPLIED BEFORE CREDITING

11 TO FUTURE LIABILITY.—This subsection shall be ap12 plied to an overpayment prior to its being credit to

13 a taxpayer’s future liability for any internal revenue

14 tax.’’

15 (2) CONFORMING AMENDMENT.—Paragraph (2)

16 of section 6402(d) of such Code is amended by strik17 ing ‘‘with respect to past-due support collected pur18 suant to an assignment under section 402(a)(26) of

19 the Social Security Act’’.

20 (c) ELIMINATION OF THE ROLE OF THE SECRETARY

21 OF HEALTH AND HUMAN SERVICES.—

22 (1) Section 464 (42 U.S.C. 664) is hereby re23 pealed.

24 (2) Section 452 (42 U.S.C. 652) is amended by

25 striking subsections (b) and (c).
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1 Subtitle D—State Responsibilities

2 SEC. 241. STATE ROLE.

3 (a) STATE CHILD SUPPORT ORDER REGISTRIES,

4 ETC.—

5 (1) IN GENERAL.—Section 466(a) (42 U.S.C.

6 666(a)), as amended by subtitle C of this title, is

7 amended by inserting after paragraph (19) the fol8 lowing:

9 ‘‘(20) Procedures under which—

10 ‘‘(A) the State child support enforcement

11 agency shall—

12 ‘‘(i) establish an automated central

13 child support order registry (including, at

14 State option, by integrating local registries

15 through computers, if the cost of such inte16 gration does not exceed the cost of a single

17 centralized registry) which shall maintain a

18 current record of—

19 ‘‘(I) each child support order is20 sued, modified, or registered in the

21 State under the State plan;

22 ‘‘(II) each child support order is23 sued, modified, or being enforced in

24 the State after the effective date of

25 this paragraph; and
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1 ‘‘(III) any other child support

2 order, at the request of a party to the

3 order;

4 ‘‘(ii) for each such child support

5 order, record the amount of support or6 dered and maintain a record of payments

7 under the order;

8 ‘‘(iii) prepare a support abstract that

9 conforms to the child support order ab10 stract developed pursuant to section

11 452(a)(1)), forward the abstract to the

12 Federal child support order registry estab13 lished under section 203 of the Family

14 Self-Sufficiency Act of 1994, and enter the

15 abstract into the State registry for pur16 poses of matching against other data bases

17 on a regular basis;

18 ‘‘(iv) program the statewide auto19 mated system to extract weekly updates

20 automatically of all case records included

21 in the State registry;

22 ‘‘(v) provide a central point of access

23 to the Federal new-hire reporting directory

24 and other Federal data bases, statewide

25 data bases, and interstate case activity;
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1 ‘‘(vi) routinely match information in

2 the State registry against other State data

3 bases to which the agency has access;

4 ‘‘(vii) use a national identification

5 number, preferably the social security ac6 count number, for all individuals or cases

7 as determined by the Secretary;

8 ‘‘(viii) maintain procedures (such as

9 notification to parents) to ensure that ar10 rearages do not accrue after the child for

11 whom support is ordered is no longer eligi12 ble for support or the order becomes in13 valid;

14 ‘‘(ix) use technology and automated

15 procedures in operating the State registry

16 wherever feasible and cost-effective;

17 ‘‘(x) ensure that the amount of any

18 interest due with respect to delinquent

19 child support obligations can be automati20 cally calculated;

21 ‘‘(xi) ensure that the State registry

22 has access to vital statistics or other infor23 mation necessary to provide the Secretary

24 with such information as the Secretary
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1 may require in order to apply the formula

2 provided for in section 403(i);

3 ‘‘(xii) use the State registry (whether

4 centralized or established through the inte5 gration of local registries)—

6 ‘‘(I) as a clearinghouse for the

7 centralized collection and disburse8 ment of child support payments, ena9 bling the functions to be carried out

10 (by the State or a private entity) at 1

11 location within the State, and through

12 a fully automated process (including,

13 at State option, through multi-State

14 regional cooperative agreements

15 through 1 ‘drop box’ location with

16 computer linkage to the individual

17 State registries); and

18 ‘‘(II) as the central payment cen19 ter—

20 ‘‘(aa) for all employers re21 mitting child support withheld

22 from wages; and

23 ‘‘(bb) for all payments not

24 made through wage withholding,

25 through the use of payment cou-
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1 pons or stubs or electronic

2 means, unless otherwise agreed

3 by the parties to the order and

4 the court or administrative agen5 cy that issued or modified the

6 order (which agreement may be

7 unilaterally rescinded by the indi8 vidual to whom child support is

9 payable under the order or by the

10 individual obligated to pay child

11 support under the order, without

12 permission of any court or ad13 ministrative agency), and, at

14 State option, payments may be

15 made at local offices or financial

16 institutions only if the payments

17 are remitted to the State registry

18 by the local office or financial in19 stitution for payment processing

20 by electronic funds transfer with21 in 24 hours after receipt; and

22 ‘‘(xiii) require the State registry to—

23 ‘‘(I) accept all payments for child

24 support by any means of transfer;
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1 ‘‘(II) generate bills which provide

2 for accurate payment identification,

3 such as return stubs or coupons, for

4 cases with respect to which wage with5 holding is not required;

6 ‘‘(III) identify all payments made

7 to the State registry and match the

8 payment to the correct child support

9 case record;

10 ‘‘(IV) distribute all collections as

11 required by law;

12 ‘‘(V) disburse to custodial par13 ents child support payments that are

14 payable to such parents, including

15 through the use of direct deposit upon

16 the request of the custodial parent;

17 ‘‘(VI) process and send to custo18 dial parents child support payments

19 that are payable to such parents with20 in 24 hours after receipt;

21 ‘‘(VII) maintain records of trans22 actions and the status of all accounts,

23 including arrears, and monitor all

24 payments of support;
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1 ‘‘(VIII) develop automatic mon2 itoring procedures for all cases where

3 a disruption in payments triggers

4 automatic enforcement mechanisms;

5 ‘‘(IX) accept and transmit inter6 state collections to other States, when7 ever possible, using electronic funds

8 transfer technology; and

9 ‘‘(X) when necessary, change

10 payees in child support cases adminis11 tratively, with notice to both parties;

12 ‘‘(B) each child support order issued or

13 modified in the State is required to be transmit14 ted to the registry within such period of time

15 after the issuance or modification as the Sec16 retary shall prescribe in regulations; and

17 ‘‘(C) the State shall—

18 ‘‘(i) prohibit any State agency from

19 imposing a fee on any custodial or

20 noncustodial parent for inclusion in the

21 State registry, or imposing any new fee on

22 a custodial parent for routine establish23 ment, enforcement, or modification of

24 cases handled through the State registry;
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1 ‘‘(ii) have automated procedures to

2 monitor cases and impose those enforce3 ment measures that can be handled on a

4 mass or group basis using computer auto5 mation technology, by—

6 ‘‘(I) monitoring all cases within

7 the State registry on a regular basis,

8 determining on at least a monthly

9 basis whether the child support pay10 ment has been made;

11 ‘‘(II) maintaining automation ca12 pability whereby a disruption in pay13 ments triggers automatic enforcement

14 mechanisms; and

15 ‘‘(III) administratively imposing

16 measures such as—

17 ‘‘(aa) ordering wages to be

18 withheld automatically for the

19 purposes of satisfying child sup20 port obligations, and directing

21 wage withholding orders to em22 ployers immediately upon notifi23 cation by the Federal child sup24 port order registry established
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1 under section 203(a) of the Fam2 ily Self-Sufficiency Act of 1990;

3 ‘‘(bb) attaching accounts at

4 financial institutions, including,

5 at State option, freezing with6 drawals from such accounts and,

7 if the freeze is not challenged,

8 turning over the part of the ac9 count subject to the freeze up to

10 the amount of the child support

11 debt to the person or State seek12 ing the support;

13 ‘‘(cc) intercepting certain

14 lump-sum monies such as lottery

15 winnings and settlements to be

16 turned over to the State to sat17 isfy pending arrearages;

18 ‘‘(dd) attaching public and

19 private retirement funds in ap20 propriate cases, as determined by

21 the Secretary;

22 ‘‘(ee) attaching unemploy23 ment compensation, worker’s

24 compensation, and other State

25 benefits;
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1 ‘‘(ff) increasing required

2 payments to cover arrearages;

3 ‘‘(gg) intercepting State tax

4 refunds; and

5 ‘‘(hh) submitting cases for

6 Federal tax refund offset; and

7 ‘‘(iii) be able to provide parents with

8 up-do-date information on payments that

9 are not past due, payments that are past

10 due, and general information on available

11 child support services;

12 ‘‘(D) child support arrears with respect to

13 cases in the State registry are considered judg14 ments by operation of law, and reducing the

15 amount of such arrears to money judgments is

16 not a prerequisite to enforcement;

17 ‘‘(E) all cases in the State registry shall

18 receive services offered by the registry without

19 regard to whether an application for such serv20 ices has been made; and

21 ‘‘(F) the State agency referred to in sec22 tion 402(a)(3) shall notify the State child sup23 port enforcement agency of the commencement

24 or termination of aid under the State plan ap25 proved under part A to any individual or fam-
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1 ily, within 10 days after the commencement or

2 termination.’’.

3 (2) CONFORMING AMENDMENT.—Section

4 466(b) (42 U.S.C. 666(b)) is amended by striking

5 paragraph (5).

6 (b) WAGE WITHHOLDING.—

7 (1) IN GENERAL.—Section 466(b) (42 U.S.C.

8 666(b)) is amended by adding at the end the follow9 ing:

10 ‘‘(11)(A)(i) Upon the issuance or modification

11 by a State court or administrative agency of an

12 order imposing a child support obligation on an indi13 vidual, the State shall transmit to any employer of

14 the individual a wage withholding order developed

15 under section 452(a)(11) directing the employer to

16 withhold amounts from the wages of the individual

17 pursuant to the order, or such greater amount as

18 the State child support order registry established

19 pursuant to subsection (a)(20)(A) may determine is

20 the total amount of the child support obligations of

21 the individual.

22 ‘‘(ii) Clause (i) shall not apply to an order upon

23 agreement of the parties to the order and the court

24 or administrative agency that issued or modified the

25 order.
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1 ‘‘(iii) An agreement referred to in clause (ii)

2 may be unilaterally rescinded by the individual to

3 whom child support is payable under the order or by

4 the individual obligated to pay child support under

5 the order, without permission of any court or admin6 istrative agency.

7 ‘‘(B) Any individual or entity engaged in com8 merce, as a condition of doing business in the State,

9 shall, on receipt of a wage withholding order devel10 oped under section 452(a)(11) that is regular on its

11 face and has been issued by a court or administra12 tive agency of any State—

13 ‘‘(i) immediately provide a copy of the

14 order to the employee subject to the order;

15 ‘‘(ii) comply with the order by forwarding

16 to the State registry established pursuant to

17 subsection (a)(20)(A) of this section, within 5

18 days after the end of each payroll period ending

19 after receipt of the order, the greater of—

20 ‘‘(I) the amount required to be with21 held pursuant to the order; or

22 ‘‘(II) the amount that the State reg23 istry has notified the individual or family

24 is the amount required to be withheld from

25 the wages of the employee for payment of
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1 child support obligations of the employee;

2 and

3 ‘‘(iii) keep records of the amounts so with4 held and the dates of such withholding.

5 ‘‘(C) Such an order may be served on the indi6 vidual or entity directly or by first-class mail.

7 ‘‘(D) An individual or entity who complies with

8 subparagraph (B)(ii) with respect to such an order

9 may not be held liable for wrongful withholding of

10 income from the employee subject to the order.

11 ‘‘(E) The State shall impose a civil fine of

12 $1,000 on any individual or entity who receives such

13 an order for each failure to comply with subpara14 graph (B)(ii) with respect to the order.

15 ‘‘(F) The State shall have in effect such proce16 dures as the Secretary may require by regulation for

17 carrying out this paragraph in cases involving an

18 employee who has 2 or more employers or child sup19 port obligations.

20 ‘‘(12) If the State transmits to an individual or

21 entity engaged in commerce only outside the State

22 a wage withholding order issued by the State with

23 respect to an employee of the individual or entity,

24 and the individual or entity refuses to comply with

25 the order, the State shall send an informational copy
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1 of the order to the registry established pursuant to

2 subsection (a)(20)(A) of any other State in which

3 the individual or entity is engaged in commerce.

4 ‘‘(13) If an employee requests a hearing to con5 test wage withholding based on claim of a mistake

6 of fact, the hearing may be held in the State from

7 which the child support is collected, and, within 45

8 days after the income source receives the withhold9 ing order, the entity conducting the hearing must

10 adjudicate the claim. The State in which the hearing

11 is held shall provide appropriate services in cases en12 forced under the State plan to ensure that the inter13 ests of the individual to whom the withheld income

14 is to be paid are adequately represented.’’.

15 (2) CONFORMING AMENDMENT.—Section

16 466(b)(6)(A)(i) (42 U.S.C. 666(b)(6)(A)(i)) is

17 amended by striking ‘‘(which may include’’ and all

18 that follows through ‘‘paragraph (5))’’ and inserting

19 ‘‘and pay such amount to the State registry estab20 lished under subsection (a)(12)’’.

21 (c) PRIORITIES IN APPLICATION OF WITHHELD

22 WAGES.—Section 466(b) (42 U.S.C. 666(b)), as amended

23 by subsection (b)(1) of this section, is amended by insert24 ing after paragraph (13) the following:
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•HR 4767 IH

1 ‘‘(14) Procedures under which the amounts

2 withheld pursuant to a child support or wage with3 holding order are to be applied in the following

4 order:

5 ‘‘(A) To payments of support due during

6 the month of withholding.

7 ‘‘(B) To payments of premiums for health

8 care insurance coverage for dependent children.

9 ‘‘(C) To payments of support due before

10 the month of withholding or collection, and of

11 unreimbursed health-care expenses.’’.

12 (d) ACCESS TO VARIOUS DATA BASES.—Section

13 466(a) (42 U.S.C. 666(a)), as amended by subtitle C of

14 this title and by subsection (a) of this section, is amended

15 by inserting after paragraph (20) the following:

16 ‘‘(21) Procedures under which the State child

17 support enforcement agency shall have automated

18 on-line or batch access (or, if necessary,

19 nonautomated access) to information regarding resi20 dential addresses, employers and employer address21 es, income and assets, and medical insurance bene22 fits with respect to absent parents that is available

23 through any data base maintained by—

24 ‘‘(A) any agency of the State or any politi25 cal subdivision thereof, that contains informa-
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1 tion on residential addresses, or on employers

2 and employer addresses;

3 ‘‘(B) any publicly regulated utility com4 pany located in the State; and

5 ‘‘(C) any credit reporting agency.’’.

6 (e) EXPANDED INTERACTION WITH THE NATIONAL

7 PARENT LOCATOR NETWORK.—Section 454(16) (42

8 U.S.C. 654(16)) is amended—

9 (1) by striking ‘‘and (E)’’ and inserting ‘‘(E)’’;

10 and

11 (2) by striking ‘‘enforcement;’’ and inserting

12 ‘‘enforcement, and (F) to provide access to the na13 tional network developed pursuant to section

14 453(g);’’.

15 (f) STATE PLAN REQUIREMENT.—Section 454 (42

16 U.S.C. 654), as amended by section 212(a) of this Act,

17 is amended—

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

19 (24);

20 (2) by striking the period at the end of para21 graph (25) and inserting ‘‘; and’’; and

22 (3) by inserting after paragraph (25) the fol23 lowing:

24 ‘‘(26) will have in effect safeguards applicable

25 to all sensitive and confidential information handled
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1 by the State agency designed to protect the privacy

2 rights of the parties, including—

3 ‘‘(A) safeguards against unauthorized use

4 or disclosure of information relating to proceed5 ings or actions to establish paternity, or to es6 tablish or enforce support; and

7 ‘‘(B) prohibitions against the release of in8 formation on the whereabouts of a party to an9 other party against whom a protective order

10 with respect to the party has been entered.’’.

11 SEC. 242. UNIFORM TERMS IN ORDERS.

12 Section 452(a) (42 U.S.C. 652(a)) is amended—

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

14 the semicolon;

15 (2) in paragraph (10), by striking the period at

16 the end of the 2nd sentence and inserting ‘‘; and’’;

17 and

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

19 ‘‘(11) not later than 12 months after the date

20 of the enactment of this paragraph, develop a uni21 form abstract of a child support order, for use by

22 the child support order registry established pursuant

23 to section 466(a)(20)(A), in which may be re24 corded—
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1 ‘‘(A) the date support payments are to

2 begin under the order;

3 ‘‘(B) the circumstances upon which sup4 port payments are to end under the order;

5 ‘‘(C) the amount of child support payable

6 pursuant to the order expressed as a sum cer7 tain to be paid on a monthly basis, arrearages

8 expressed as a sum certain as of a certain date,

9 and any payback schedule for the arrearages;

10 ‘‘(D) whether the order awards support in

11 a lump sum (nonallocated) or per child;

12 ‘‘(E) if the award is in a lump sum, the

13 event causing a change in the support award

14 and the amount of any change;

15 ‘‘(F) other expenses covered by the order;

16 ‘‘(G) the names of the parents subject to

17 the order;

18 ‘‘(H) the social security account numbers

19 of the parents;

20 ‘‘(I) the name, date of birth, and social se21 curity account number (if any) of each child

22 covered by the order;

23 ‘‘(J) the identification (FIPS code, name,

24 and address) of the court or administrative

25 agency that issued the order;
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1 ‘‘(K) any information on health care sup2 port required by the order;

3 ‘‘(L) the party to contact if additional in4 formation is obtained; and

5 ‘‘(M) such other information as the Sec6 retary deems appropriate.’’.

7 SEC. 243. STATES REQUIRED TO ENACT THE UNIFORM

8 INTERSTATE FAMILY SUPPORT ACT.

9 (a) IN GENERAL.—Section 466 (42 U.S.C. 666) is

10 amended by adding at the end the following:

11 ‘‘(f) In order to satisfy section 454(20)(A), each

12 State must have in effect laws which adopt the officially

13 approved version of the Uniform Interstate Family Sup14 port Act adopted by the National Conference of Commis15 sioners on Uniform State Laws in August 1992.’’.

16 (b) APPLICABILITY.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2) of this subsection, the amendment made

19 by subsection (a) shall apply to calendar quarters

20 beginning on or after October 1, 1995, without re21 gard to whether regulations to implement such

22 amendments are promulgated by such date.

23 (2) DELAY PERMITTED IF STATE LEGISLATION

24 REQUIRED.—In the case of a State plan approved

25 under part D of title IV of the Social Security Act
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1 which the Secretary of Health and Human Services

2 determines requires State legislation (other than leg3 islation appropriating funds) in order for the plan to

4 meet the additional requirement imposed by the

5 amendment made by subsection (a) of this section,

6 the State plan shall not be regarded as failing to

7 comply with such additional requirement solely on

8 the basis of the failure of the plan to meet such ad9 ditional requirement before the 1st day of the 1st

10 calendar quarter beginning after the close of the 1st

11 regular session of the State legislature that begins

12 after the date of the enactment of this Act. For pur13 poses of the previous sentence, in the case of a State

14 that has a 2-year legislative session, each year of

15 such session shall be deemed to be a separate regu16 lar session of the State legislature.

17 SEC. 244. EXPEDITED PROCESSES AND ADMINISTRATIVE

18 PROCEDURES.

19 (a) MONITORING OF COMPLIANCE.—Section

20 452(a)(4) (42 U.S.C. 652(a)(4)) is amended by inserting

21 ‘‘and to determine whether the expedited processes re22 quired under section 466(a)(2)(A) are in effect’’ before ‘‘,

23 and, not less’’.

24 (b) NONCOMPLIANT STATES WITH JUDICIAL SYS25 TEM FOR PROCESSING CHILD SUPPORT CASES REQUIRED
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•HR 4767 IH

1 TO CONVERT TO ADMINISTRATIVE SYSTEM.—Section

2 466(a)(2) (42 U.S.C. 666(a)(2)) is amended by inserting

3 after the 1st sentence the following: ‘‘If the Secretary

4 finds that the processes for obtaining and modifying child

5 support orders under the State judicial system has not

6 met the standards established in such regulations, such

7 procedures shall provide for the use of State administra8 tive processes for obtaining and modifying such orders.’’.

9 SEC. 245. DUE PROCESS.

10 Section 454 (42 U.S.C. 654), as amended by sections

11 212(a) and 241(f) of this Act, is amended—

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

13 (25);

14 (2) by striking the period at the end of para15 graph (26) and inserting ‘‘; and’’; and

16 (3) by inserting after paragraph (26) the fol17 lowing:

18 ‘‘(27) provide for procedures to ensure that—

19 ‘‘(A) individuals who are parties to cases

20 in which services are being provided under this

21 part—

22 ‘‘(i) receive notice of all proceedings in

23 which support obligations might be estab24 lished or modified; and
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•HR 4767 IH

1 ‘‘(ii) receive a copy of any order estab2 lishing or modifying a child support obliga3 tion within 14 days after issuance of such

4 order; and

5 ‘‘(B) individuals receiving services under

6 this part have timely access to a fair hearing or

7 other formal complaint procedure, meeting

8 standards established by the Secretary, that en9 sures prompt consideration and resolution of

10 complaints (but the resort to the procedure

11 shall not stay the enforcement of any support

12 order);’’.

13 SEC. 246. 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) (42 U.S.C.

18 654(6)(A)) is amended by inserting ‘‘(which shall be

19 made on the service application form developed

20 under section 452(a)(7))’’ after ‘‘State’’.

21 (2) DUTY TO DEVELOP APPLICATION FORM.—

22 Section 452(a)(7) (42 U.S.C. 652(a)(7)), as amend23 ed by section 211(b) of this Act, is amended by in24 serting ‘‘, and develop a form to be used to apply
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1 for services established under State plans under this

2 part’’ before the semicolon.

3 (b) OUTREACH.—

4 (1) STATE PLAN REQUIREMENT.—Section 454

5 (42 U.S.C. 654), as amended by sections 212(a),

6 241(f), and 245 of this Act, is amended—

7 (A) by striking ‘‘and’’ at the end of para8 graph (26);

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

10 paragraph (27) and inserting ‘‘; and’’; and

11 (C) by inserting after paragraph (27) the

12 following:

13 ‘‘(28) provide for the establishment and conduct

14 of an ongoing program of outreach to persons eligi15 ble for services under the plan, in accordance with

16 regulations issued under section 452(a)(11).’’.

17 (2) REGULATIONS.—Section 452(a) (42 U.S.C.

18 652(a)), as amended by section 242 of this Act, is

19 amended—

20 (A) in paragraph (10), by striking ‘‘and’’

21 after the semicolon;

22 (B) in paragraph (11), by striking the pe23 riod and inserting ‘‘; and’’; and

24 (C) by adding at the end the following:
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•HR 4767 IH

1 ‘‘(12) issue such regulations as are necessary to

2 ensure that State agencies—

3 ‘‘(A) develop and implement a plan for

4 serving underserved populations;

5 ‘‘(B) use appropriate personnel and print6 ed material for use by persons who do not

7 speak English or whose hearing is impaired;

8 and

9 ‘‘(C) work in cooperation with other Fed10 eral, State, and local government agencies and

11 private nonprofit organizations which serve low12 income families to publicize the availability of

13 such services and coordinate the delivery of

14 such services.’’.

15 SEC. 247. COST-OF-LIVING ADJUSTMENT OF CHILD SUP16 PORT AWARDS.

17 Part D of title IV (42 U.S.C. 651–669) is amended

18 by inserting after section 467 the following:

19 ‘‘SEC. 467A. COST-OF-LIVING ADJUSTMENT OF CHILD SUP20 PORT AWARDS.

21 ‘‘(a) IN GENERAL.—Each State, as a condition for

22 having its State plan approved under this part, shall have

23 in effect such laws and procedures as are necessary to en24 sure that each child support order issued or modified in

25 the State after the effective date of this section provides
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•HR 4767 IH

1 that amount of child support payable under the order dur2 ing the 12-month period that begins on each anniversary

3 of the date the order was issued or most recently so modi4 fied shall be an amount equal to—

5 ‘‘(1) the amount of the award specified in the

6 order; multiplied by

7 ‘‘(2) the percentage (if any) by which—

8 ‘‘(A) the average of the Consumer Price

9 Index (as defined in section 1(f)(5) of the Inter10 nal Revenue Code of 1986) for the most recent

11 12-month period for which such information is

12 available; exceeds

13 ‘‘(B) the average of the Consumer Price

14 Index (as so defined) for the 12-month period

15 that ends on the date the order was issued or

16 most recently so modified.

17 ‘‘(b) NOTICE REQUIREMENTS.—The laws and proce18 dures described in subsection (a) shall include a require19 ment that notice of the cost-of-living adjustment of a child

20 support award be provided to—

21 ‘‘(1) the individual obligated to pay the child

22 support, and if wages are to be withheld to pay such

23 support, to each employer of the individual; and

24 ‘‘(2) the individual to whom the child support

25 is owed.
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1 ‘‘(c) RULE OF INTERPRETATION.—Subsection (a)

2 shall not be construed to affect other grounds for modify3 ing a child support award.’’.

4 SEC. 248. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST5 MENT OF CERTAIN CHILD SUPPORT ORDERS.

6 (a) IN GENERAL.—Section 466(a)(10) (42 U.S.C.

7 666(a)(10)) is amended by adding at the end the follow8 ing:

9 ‘‘(D)(i) Procedures under which—

10 ‘‘(I) every 3 years, at the request of either

11 parent subject to a child support order, the

12 State shall review and, as appropriate, adjust

13 the order in accordance with the guidelines es14 tablished under section 467(a) if the amount of

15 the child support award under the order differs

16 from the amount that would be awarded in ac17 cordance with such guidelines by more than the

18 total of the adjustments required to be made in

19 the amount of the award pursuant to section

20 467A during the 3 year period ending on the

21 date of the request; and

22 ‘‘(II) upon request of either parent subject

23 to a child support order, the State shall review

24 and, as appropriate, adjust the order in accord25 ance with the guidelines established under sec-
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•HR 4767 IH

1 tion 467(a) based on a significant change in the

2 circumstances of either such parent.

3 ‘‘(ii) Such procedures shall require both parents

4 subject to a child support order to be notified of

5 their rights provided for under clause (i) at the time

6 the order is issued and in the annual information ex7 change form provided under subparagraph (E).

8 ‘‘(E) Procedures under which each child sup9 port order issued or modified in the State after the

10 effective date of this subparagraph shall require the

11 parents subject to the order to provide each other

12 with a complete statement of their respective finan13 cial condition annually on a form which shall be es14 tablished by the Secretary and provided by the

15 State.’’.

16 (b) CONFORMING AMENDMENT.—Section 466(a) (42

17 U.S.C. 666(a)) is amended by striking paragraph (10).

18 SEC. 249. PREVENTION OF CONFLICTS OF INTEREST.

19 Section 466(a)(10) (42 U.S.C. 666(a)(10)), as

20 amended by section 248 of this Act, is amended by adding

21 at the end the following:

22 ‘‘(F) Procedures to ensure that the State does

23 not provide to any noncustodial parent of a child

24 representation relating to the review or adjustment

25 of an order for the payment of child support with re-
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1 spect to the child, unless the State makes provision

2 for such representation outside the State agency.’’.

3 SEC. 250. STAFFING.

4 (a) STUDIES.—The Secretary of Health and Human

5 Services shall conduct and, not later than 1 year after the

6 date of the enactment of this Act, complete staffing stud7 ies for each State child support enforcement program, in8 cluding each agency and court involved in the child sup9 port process.

10 (b) REPORT TO THE CONGRESS.—Within 90 days

11 after the end of the 1-year period described in subsection

12 (a), the Secretary shall report to the Committee on Ways

13 and Means of the House of Representatives and the Com14 mittee on Finance of the Senate, and to each State, the

15 results of the studies required by subsection (a).

16 (c) IMPLEMENTATION.—Section 455(a) (42 U.S.C.

17 655(a)) is amended by adding at the end the following:

18 ‘‘(3) The Secretary shall reduce by 2 percent the

19 amount otherwise payable to a State pursuant to para20 graph (1)(A) for any calendar quarter ending 2 or more

21 years after the State receives a report transmitted pursu22 ant to section 250(b) of the Family Self-Sufficiency Act

23 of 1994, if the Secretary determines that, during the quar24 ter, the State has not met performance standards and has
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1 not implemented the staffing levels recommended in the

2 report.’’.

3 SEC. 251. TRAINING.

4 (a) FEDERAL TRAINING ASSISTANCE.—Section

5 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting

6 ‘‘and training’’ after ‘‘technical assistance’’.

7 (b) STATE TRAINING PROGRAM.—Section 454 (42

8 U.S.C. 654), as amended by sections 212(a), 241(f), 245,

9 and 246(b)(1) of this Act, is amended—

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

11 (27);

12 (2) by striking the period at the end of para13 graph (28) and inserting ‘‘; and’’; and

14 (3) by inserting after paragraph (28) the fol15 lowing:

16 ‘‘(29) provide that the State will develop and

17 implement a training program under which training

18 is to be provided not less frequently than annually

19 to all personnel performing functions under the

20 State plan.’’.

21 (c) REPORT.—Section 452(a)(10) (42 U.S.C.

22 652(a)(10)) is amended by redesignating subparagraphs

23 (H) and (I) as subparagraphs (I) and (J), respectively,

24 and by inserting after subparagraph (G) the following:
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1 ‘‘(H) the training activities at the Federal

2 and State levels, the training audit, and the

3 amounts expended on training;’’.

4 (d) RESOURCES.—For technical assistance, training,

5 operational research, demonstrations, and staffing studies

6 under part D of title IV of the Social Security Act, there

7 are authorized to be appropriated to the Secretary of

8 Health and Human Services for each fiscal year an

9 amount equal to not more than 2 percent of the total

10 amount paid to the Federal Government pursuant to sec11 tion 457(b) of such Act during the immediately preceding

12 fiscal year.

13 SEC. 252. PRIORITIES IN DISTRIBUTION OF COLLECTED

14 CHILD SUPPORT.

15 (a) IN GENERAL.—Section 457(a) (42 U.S.C.

16 657(a)) is amended to read as follows:

17 ‘‘(a) Amounts collected as support by a State pursu18 ant to a child support or wage withholding order are to

19 be allocated as follows:

20 ‘‘(1) First, for support payments for the month

21 that are not past due, as follows:

22 ‘‘(A) First, for cash support payments.

23 ‘‘(B) Then, for payments related to pre24 miums for health care insurance coverage of

25 children covered by the order.
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1 ‘‘(2) Then, for payments of support that are

2 past due, and for payment of unreimbursed health

3 care expenses.’’.

4 (b) INCREASE IN PASS-THROUGH OF COLLECTED

5 CHILD SUPPORT.—

6 (1) IN GENERAL.—Section 457(b)(1) (42

7 U.S.C. 657(b)(1)) is amended—

8 (A) by inserting ‘‘or such greater amount

9 of such child support payments as the State

10 may establish and provide for in the State plan,

or if greater, 1 11 ⁄2’’ after ‘‘the first $50’’ each

12 place such term appears; and

13 (B) by inserting ‘‘less the amount of any

14 payment made to the family under section

15 402(a)(48) in the month in which the child sup16 port was received,’’ before ‘‘shall’’.

17 (2) INCREASE IN DISREGARD OF PASSED

18 THROUGH CHILD SUPPORT.—Section

19 402(a)(8)(A)(vi) (42 U.S.C. 602(a)(8)(A)(vi)) is

20 amended to read as follows:

21 ‘‘(vi) shall disregard—

22 ‘‘(I) the first $50 (adjusted pursuant

23 to section 406(i) for the calendar quarter

24 in which the month occurs) or such greater

25 amount of such child support payments as
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1 the State may establish and provide for in

the State plan, or, if greater, 1 2 ⁄2 of any

3 child support payments for the month re4 ceived in the month;

5 ‘‘(II) the first $50 (as so adjusted) or

6 such greater amount of such child support

7 payments as the State may establish and

8 provide for in the State plan, or if greater,

1 9 ⁄2 of child support payments for each

10 prior month received in the month if the

11 payments were made by the absent parent

12 in the month in which due; and

13 ‘‘(III) any amount paid to the family

14 under section 457(b)(1), with respect to

15 the dependent child or children in the fam16 ily;’’.

17 (c) PERSONS NO LONGER RECEIVING AFDC.—Sec18 tion 457(c) (42 U.S.C. 657(c)) is amended—

19 (1) by striking ‘‘any amount of support col20 lected’’ and all that follows through ‘‘the individ21 uals’’ and inserting ‘‘to the family any amount of

22 support collected in payment of current or future

23 support obligations or arrears accrued for a month

24 for which the family did not receive such assistance,

25 subject to the same conditions and on the same
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1 basis as in the case of payments made to families’’;

2 and

3 (2) by adding at the end the following: ‘‘If col4 lections are received in a month with respect to a

5 family which has ceased to receive such assistance,

6 the collections shall be credited first as payments for

7 the month that are not past due, then to payments

8 of arrears accrued in months for which the family

9 did not receive such assistance, then to any other

10 unpaid arrears, and then against future support ob11 ligations.’’.

12 (d) MARRIED COUPLES.—Section 457 (42 U.S.C.

13 657) is amended by adding at the end the following:

14 ‘‘(e) If an individual obligor and obligee join house15 holds by marrying or remarrying each other, or (if married

16 to each other) by reuniting after a period of legal separa17 tion, the State shall suspend or forgive collection of child

18 support arrearages owed to the State if the income of the

19 resulting family is less than 200 percent of the poverty

20 line (as determined by the Secretary).’’.

21 SEC. 253. TEEN NONCUSTODIAL PARENTS AND CHILD SUP22 PORT.

23 (a) AUTHORITY OF STATES TO TEMPORARILY WAIVE

24 RIGHT TO COLLECT CHILD SUPPORT OBLIGATIONS OF

25 TEEN NONCUSTODIAL PARENTS WHO ARE PARTICIPAT-
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1 ING IN A STATE EDUCATIONAL OR EMPLOYMENT PREPA2 RATION PROGRAM.—

3 (1) IN GENERAL.—Section 454 (42 U.S.C.

4 454), as amended by sections 212(a), 241(f), 245,

5 246(b)(1), and 251(b) of this Act, is amended—

6 (A) by striking ‘‘and’’ at the end of para7 graph (28);

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

9 paragraph (29) and inserting ‘‘; and’’; and

10 (C) by inserting after paragraph (29) the

11 following:

12 ‘‘(30) at the option of the State, provide that,

13 if the State agency determines that a noncustodial

14 parent who has not attained 20 years of age owes

15 but is unable to pay child support, then the State

16 may, in lieu of enforcing the right to such support

17 for such period as the State considers appropriate,

18 allow the parent to choose to comply with an edu19 cational or job training program.’’.

20 (2) CONFORMITY OF STATE GUIDELINES FOR

21 CHILD SUPPORT AWARDS.—Section 467 (42 U.S.C.

22 667) is amended by adding at the end the following:

23 ‘‘(d) The guidelines established pursuant to sub24 section (a) shall provide that if the State agency deter25 mines that a noncustodial parent who has not attained 20
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1 years of age owes but is unable to pay child support, then

2 the State may, in lieu of enforcing the right to such sup3 port for such period as the State considers appropriate,

4 allow the parent to choose to comply with an educational

5 or job training program.’’.

6 (b) LIMITATION ON USE OF JOBS FUNDS.—Section

7 403(l) (42 U.S.C. 603(l)), as amended by section 112(a)

8 of this Act, is amended by adding at the end the following:

9 ‘‘(6) The Secretary shall not make a payment to a

10 State under this section with respect to amounts expended

11 by a State to carry out section 454(30), to the extent that

12 such expenditures exceed 5 percent of the total amount

13 expended by the State to operate the State program estab14 lished under part F.’’.

15 Subtitle E—Demonstrations

16 SEC. 261. ESTABLISHMENT OF CHILD SUPPORT ASSUR17 ANCE DEMONSTRATION PROJECTS.

18 (a) IN GENERAL.—In order to encourage States to

19 provide a guaranteed minimum level of child support for

20 every eligible child not receiving such support, the Sec21 retary of Health and Human Services (in this section re22 ferred to as the ‘‘Secretary’’) shall make grants to not

23 more than 6 States to conduct demonstration projects for

24 the purpose of establishing or improving a system of as-
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1 sured minimum child support payments in accordance

2 with this section.

3 (b) CONTENTS OF APPLICATION.—An application for

4 grants under this section shall be submitted by the Gov5 ernor of a State and shall—

6 (1) contain a description of the proposed child

7 support assurance project to be established, imple8 mented, or improved using amounts provided under

9 this section, including the level of the assured bene10 fit to be provided, the specific activities to be under11 taken, and the agencies that will be involved;

12 (2) specify whether the project will be carried

13 out throughout the State or in limited areas of the

14 State;

15 (3) estimate the number of children who will be

16 eligible for assured minimum child support payments

17 under the project, and the amounts to which they

18 will be entitled on average as individuals and in the

19 aggregate;

20 (4) describe the child support guidelines and re21 view procedures which are in use in the State and

22 any expected modifications;

23 (5) contain a commitment by the State to carry

24 out the project during a period of not less than 7
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1 and not more than 10 consecutive fiscal years begin2 ning with fiscal year 1996;

3 (6) contain assurances that the State—

4 (A) is currently at or above the national

5 median paternity establishment rate (as defined

6 in section 452(g)(2) of the Social Security Act);

7 (B) will improve the performance of the

8 agency designated by the State to carry out the

9 requirements under part D of title IV of the

10 Social Security Act by at least 4 percent each

11 year in which the State operates a child support

12 assurance project under this section in—

13 (i) the number of cases in which pa14 ternity is established when required;

15 (ii) the number of cases in which child

16 support orders are obtained; and

17 (iii) the number of cases with child

18 support orders in which collections are

19 made; and

20 (C) to the maximum extent possible under

21 current law, will use Federal, State, and local

22 job training assistance to assist obligors who

23 have been determined to be unable to meet

24 their child support obligations;
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1 (7) describe the extent to which multiple agen2 cies, including those responsible for administering

3 the program of aid to families with dependent chil4 dren under part A of title IV of the Social Security

5 Act and child support collection, enforcement, and

6 payment under part D of such title, will be involved

7 in the design and operation of the child support as8 surance project; and

9 (8) contain such other information as the Sec10 retary may require by regulation.

11 (c) USE OF FUNDS.—A State shall use amounts pro12 vided under a grant awarded under this section to carry

13 out a child support assurance project designed to provide

14 a minimum monthly child support benefit for each eligible

15 child in the State to the extent that such minimum child

16 support is not paid in a month by the noncustodial parent.

17 (d) REQUIREMENTS.—(1) A child support assurance

18 project funded under this section shall provide that—

19 (A) a child shall be eligible for the assured child

20 support benefit if—

21 (i) the child has a living noncustodial par22 ent for whom—

23 (I) a child support order has been

24 sought (as defined in paragraph (3)); or
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1 (II) a child support order has been

2 obtained and is being enforced by the

3 State child support order registry estab4 lished pursuant to section 466(a)(12) of

5 the Social Security Act; or

6 (ii) a parent of the child has good cause

7 for not seeking or enforcing a support order;

8 (B) the assured child support benefit shall be

9 paid promptly to the custodial parent at least once

10 a month and shall be—

11 (i) an amount determined by the State

12 which is—

13 (I) not less than $1,500 per year for

14 the first child, $1,000 per year for the sec15 ond child, and $500 per year for the third

16 and each subsequent child, and

17 (II) not more than $3,000 per year

18 for the first child and $1,000 per year for

19 the second and each subsequent child;

20 (ii) indexed and adjusted for inflation; and

21 (iii) in the case of a family of children with

22 multiple noncustodial parents, calculated in the

23 same manner as if all such children were full

24 siblings;
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1 (C) when child support is collected for a child

2 in a month in which the child has received a child

3 support assurance benefit, the amount due to the

4 child from the child support collection shall be re5 duced by the child support assurance already paid to

6 the child for the month, and if the child is receiving

7 child support assurance benefits in common with sib8 lings or half-siblings, the amount of the child sup9 port assurance benefits attributable to the child shall

10 be not more than the child’s pro rata share of the

11 total benefits.

12 (D) for purposes of determining the need of a

13 child or relative and the level of assistance under

part A of title IV of the Social Security Act, 1 14 ⁄2 of

15 the amount received as a child support assurance

16 benefit shall be disregarded from income until the

17 total amount of child support and aid to families

18 with dependent children benefit received under part

19 A of title IV of the Social Security Act equals the

20 Federal poverty level for a family of comparable size;

21 (E) in determining need and the amount of as22 sistance under part A of title IV of the Social Secu23 rity Act, the needs of any family member not receiv24 ing an assured child support benefit shall be deter-
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1 mined without consideration of the assured child

2 support benefits;

3 (F) the consideration under a State plan under

4 part A of title IV of the Social Security Act of any

5 child support payment received by a family other

6 than a child support assurance benefit shall be gov7 erned by section 402(a)(8)(A)(vi) of such Act; and

8 (G) in order to participate in the child support

9 assurance project, the child’s caretaker shall apply

10 for or be receiving services of the State’s child sup11 port enforcement program under part D of title IV

12 of the Social Security Act.

13 (2) For purposes of this section, the term ‘‘child’’

14 means an individual who is of such an age, disability, or

15 educational status as to be eligible for child support as

16 provided for by the law of the State in which such individ17 ual resides.

18 (3) For purposes of this section, a child support order

19 shall be deemed to have been ‘‘sought’’ where an individual

20 has applied for or is receiving services from the State child

21 support agency, or has sought a child support order

22 through representation by private or public counsel or pro

23 se.

24 (e) CONSIDERATION AND PRIORITY OF APPLICA25 TIONS.—(1) The Secretary shall consider all applications
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1 received from States desiring to conduct demonstration

2 projects under this section and shall approve not more

3 than 6 applications which appear likely to contribute sig4 nificantly to the achievement of the purpose of this sec5 tion. In selecting States to conduct demonstration projects

6 under this section, the Secretary shall—

7 (A) ensure that the applications selected rep8 resent a diversity of minimum benefits distributed

9 throughout the range specified in subsection

10 (d)(1)(B)(i);

11 (B) consider the geographic dispersion and vari12 ation in population of the applicants;

13 (C) give priority to States the applications of

14 which demonstrate—

15 (i) significant recent improvements in—

16 (I) establishing paternity and child

17 support awards,

18 (II) enforcement of child support

19 awards, and

20 (III) collection of child support pay21 ments;

22 (ii) a record of effective automation; and

23 (iii) that efforts will be made to link child

24 support systems with other service delivery sys25 tems;
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1 (D) ensure that the proposed projects will be of

2 a size sufficient to obtain a meaningful measure of

3 the effects of child support assurance;

4 (E) give priority, first, to States intending to

5 operate a child support assurance project on a state6 wide basis, and, second, to States that are commit7 ted to phasing in an expansion of such project to the

8 entire State, if interim evaluations suggest such ex9 pansion is warranted; and

10 (F) ensure that, if feasible, the States selected

11 use a variety of approaches for child support guide12 lines.

13 (2) The Secretary shall, if feasible, require at least

14 2 of the States selected to participate in the demonstration

15 projects conducted under this section to provide intensive

16 integrated social services for low-income participants in

17 the child support assurance project, for the purpose of as18 sisting such participants in improving their employment,

19 housing, health, and educational status.

20 (f) DURATION.—During fiscal year 1995, the Sec21 retary shall develop criteria, select the States to partici22 pate in the demonstration, and plan for the evaluation re23 quired under subsection (h). The demonstration projects

24 conducted under this section shall commence on October

25 1, 1995, and shall be conducted for not less than 7 and
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1 not more than 10 consecutive fiscal years, except that the

2 Secretary may terminate a project before the end of such

3 period if the Secretary determines that the State conduct4 ing the project is not in substantial compliance with the

5 terms of the application approved by the Secretary under

6 this section. The Secretary shall determine from interim

7 reports required under subsection (i) whether a project

8 may be extended beyond such period, and Federal finan9 cial participation shall be available for such an extension.

10 (g) COST SAVINGS RECOVERY.—The Secretary shall

11 develop a methodology to identify any State cost savings

12 realized in connection with the implementation of a child

13 support assurance project conducted under this section.

14 Any such savings realized as a result of the implementa15 tion of a child support assurance project shall be utilized

16 for child support enforcement improvements or expansions

17 and improvements in the program of aid to families with

18 dependent children conducted under part A of title IV of

19 the Social Security Act within the participating State.

20 (h) EVALUATION AND REPORT TO CONGRESS.—(1)

21 The Secretary shall conduct an evaluation of the effective22 ness of the demonstration projects funded under this sec23 tion and determine whether to recommend that such

24 projects be phased in on a national basis. The evaluation
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1 shall include an assessment of the effect of an assured

2 benefit on—

3 (A) parental income from nongovernment

4 sources and the number of hours worked;

5 (B) the use and amount of government sup6 ports by the parents;

7 (C) the ability of the parents to accumulate re8 sources;

9 (D) the well-being of the children receiving

10 child support assurance benefits, including edu11 cational attainment and school behavior; and

12 (E) the State’s rates of establishing paternity

13 and support orders and of collecting support.

14 (2) 4 years after commencement of the demonstration

15 projects, and at the completion of the designated duration

16 of a demonstration project, the Secretary shall submit an

17 interim and final report based on the evaluation to the

18 Committee on Finance and the Committee on Labor and

19 Human Resources of the Senate, and the Committee on

20 Ways and Means and the Committee on Education and

21 Labor of the House of Representatives concerning the ef22 fectiveness of the child support assurance projects funded

23 under this section.

24 (i) STATE REPORTS.—The Secretary shall require

25 each State that conducts a demonstration project under
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1 this section to annually report such information on the

2 project’s operation as the Secretary may require, except

3 that all such information shall be reported according to

4 a uniform format prescribed by the Secretary. Each such

5 State shall provide an opportunity for the public to com6 ment on the demonstration project during such period as

7 the State may establish, and shall include any such com8 ments in the annual report.

9 (j) RESTRICTIONS ON MATCHING AND USE OF

10 FUNDS.—(1) A State conducting a demonstration project

11 under this section shall be required—

12 (A) except as provided in paragraph (2), to pro13 vide not less than 20 percent of the total amounts

14 expended in each calendar year of the project to pay

15 the costs associated with the project funded under

16 this section;

17 (B) to maintain its level of expenditures for

18 child support collection, enforcement, and payment

19 at the same level, or at a higher level, than such ex20 penditures were prior to such State’s participation in

21 a demonstration project provided by this section;

22 and

23 (C) to maintain the aid to families with depend24 ent children benefits provided under part A of title

25 IV of the Social Security Act at the same level, or
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1 at a higher level, as the level of such benefits on the

2 date of the enactment of this Act.

3 (2) A State participating in a demonstration project

4 under this section may provide no less than 10 percent

5 of the total amounts expended to pay the costs associated

6 with the project funded under this section in years after

7 the first year such project is conducted in a State if the

8 State meets the improvements specified in subsection

9 (b)(6)(B).

10 (k) COORDINATION WITH CERTAIN MEANS-TESTED

11 PROGRAMS.—For purposes of—

12 (1) the United States Housing Act of 1937;

13 (2) title V of the Housing Act of 1949;

14 (3) section 101 of the Housing and Urban De15 velopment Act of 1965;

16 (4) sections 221(d)(3), 235, and 236 of the Na17 tional Housing Act;

18 (5) the Food Stamp Act of 1977;

19 (6) title XIX of the Social Security Act; and

20 (7) child care assistance provided through part

21 A of title IV of the Social Security Act, the Child

22 Care and Development Block Grant, or title XX of

23 the Social Security Act,

24 any payment made to an individual within the demonstra25 tion project area for child support up to the amount which
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1 an assured child support benefit would provide shall not

2 be treated as income and shall not be taken into account

3 in determining resources for the month of its receipt and

4 the following month.

5 (l) TREATMENT OF CHILD SUPPORT BENEFIT.—Any

6 assured child support benefit received by an individual

7 under this section shall be considered child support for

8 purposes of the Internal Revenue Code of 1986.

9 (m) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated such sums as may be

11 necessary in each of the fiscal years 1995, 1996, 1997,

12 1998, 1999, and 2000 to carry out this section.

13 Subtitle F—Miscellaneous

14 SEC. 271. TECHNICAL CORRECTION TO ERISA DEFINITION

15 OF MEDICAL CHILD SUPPORT ORDER.

16 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em17 ployee Retirement Income Security Act of 1974 (29

18 U.S.C. 1169(a)(2)(B)) is amended—

19 (1) by striking ‘‘issued by a court of competent

20 jurisdiction’’;

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

22 (ii) and inserting a comma; and

23 (3) by adding, after and below clause (ii), the

24 following:
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1 ‘‘if such judgment, decree, or order (I) is issued

2 by a court of competent jurisdiction or (II) is

3 issued by an administrative adjudicator and has

4 the force and effect of law under applicable

5 State law.’’.

6 (b) PLAN AMENDMENTS NOT REQUIRED UNTIL OC7 TOBER 1, 1996.—

8 (1) IN GENERAL.—Any amendment to a plan

9 required to be made by an amendment made by this

10 section shall not be required to be made before the

11 first plan year beginning on or after October 1,

12 1996, if—

13 (A) during the period after the date before

14 the effective date of this Act and before such

15 first plan year, the plan is operated in accord16 ance with the requirements of the amendments

17 made by this section; and

18 (B) the plan amendment applies retro19 actively to the period after the date before the

20 effective date of this Act and before such first

21 plan year.

22 (2) HOLD HARMLESS PROVISION.—A plan shall

23 not be treated as failing to be operated in accord24 ance with the provisions of the plan merely because

25 it operates in accordance with paragraph (1).
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1 TITLE III—TEEN PARENTS AND

2 WELFARE REFORM

3 Subtitle A—Family

4 SEC. 301. MINOR TEEN PARENT RESIDENCY REQUIREMENT.

5 Section 402(a)(43) (42 U.S.C. 602(a)(43)) is amend6 ed to read as follows:

7 ‘‘(43) provide that—

8 ‘‘(A) aid under the State plan shall not be

9 provided to an individual who has not attained

10 18 years of age, has never married, and has a

11 dependent child in his or her care or is preg12 nant and eligible for such aid, for the individual

13 and the dependent child (or for herself in the

14 case of a pregnant woman), if the case manager

15 for the individual determines that—

16 ‘‘(i) the individual is not residing in a

17 place of residence maintained by a parent,

18 legal guardian, or other adult relative of

19 the individual as the home of the parent,

20 legal guardian, or other adult relative, or

21 in a foster home, maternity home, or other

22 adult-supervised supportive living arrange23 ment;

24 ‘‘(ii) an appropriate adult-supervised

25 living arrangement is available for the indi-
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1 vidual and the dependent child (or for her2 self in the case of a pregnant woman); and

3 ‘‘(iii) the individual should be required

4 to relocate to such a place of residence;

5 and

6 ‘‘(B) subparagraph (A) shall not apply to

7 an individual if—

8 ‘‘(i) the circumstances described in

9 subparagraph (A) have persisted for less

10 than 2 months since the case manager

11 made the determination described in sub12 paragraph (A);

13 ‘‘(ii) the individual does not have a

14 parent or legal guardian who is living in

15 the State and whose whereabouts are

16 known;

17 ‘‘(iii) the individual has been living

18 independently from any parent or legal

19 guardian of the individual for at least 1

20 year before the date the child was born or

21 the date the individual applied for aid

22 under the State plan;

23 ‘‘(iv) the individual is a ward of the

24 court or of the State, and the court or the
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1 State (as the case may be) has approved

2 the individual for independent living; or

3 ‘‘(v) the individual has been emanci4 pated by court order;

5 ‘‘(C) subparagraph (A) shall not apply to

6 an individual if the case manager for the indi7 vidual determines—

8 ‘‘(i) that the individual does not have

9 a parent or legal guardian who will allow

10 the individual to live in the home of the

11 parent or legal guardian;

12 ‘‘(ii) that the physical or emotional

13 health or safety of the individual or the de14 pendent child would be jeopardized if the

15 individual and the child lived in the same

16 residence with the parent or legal guardian

17 of the individual;

18 ‘‘(iii) that the application of subpara19 graph (A) would prevent the continued

20 participation of the individual in—

21 ‘‘(I) a substance abuse treatment

22 program approved by the State; or

23 ‘‘(II) an education or training

24 program, or in employment, without

25 providing an equivalent alternative; or
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1 ‘‘(iv) in accordance with regulations

2 issued by the Secretary, that there is other

3 good cause for not applying subparagraph

4 (A) to the individual;

5 ‘‘(D) in making the determinations de6 scribed in subparagraphs (A), (B), and (C), the

7 case manager for an individual shall—

8 ‘‘(i) consider all relevant factors, in9 cluding—

10 ‘‘(I) whether there is evidence

11 that the individual or the child has

12 suffered or is at risk of suffering

13 physical or emotional abuse by some14 one in the place;

15 ‘‘(II) whether illegal activity oc16 curs at the place; and

17 ‘‘(III) whether a mandatory relo18 cation of the individual would result

19 in overcrowding, violation of the terms

20 of a lease, or a violation of local

21 health or safety standards;

22 ‘‘(ii) if the case manager is not a fam23 ily counselor, consult with a family coun24 selor who has specialized training or dem25 onstrated experience serving individuals
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1 and families, and the written recommenda2 tions of the counselor shall be included in

3 the case record;

4 ‘‘(E) if the case manager determines that

5 the individual should be required to relocate,

6 the State agency shall offer the individual coun7 seling and other services designed to help the

8 individual make the transition from independ9 ent to supervised living; and

10 ‘‘(F) the case manager shall determine in

11 all cases in which aid under the State plan is

12 payable to an individual who is pregnant or a

13 parent, and has not attained 20 years of age,

14 for the needs of the individual and for the needs

15 of a dependent child of the individual, whether

16 such aid should be paid to another individual in

17 the manner described in section 406(b)(2).’’.

18 SEC. 302. BENEFITS INCREASED BY $50 FOR PATERNITY ES19 TABLISHMENT OR ESTABLISHMENT OF

20 CHILD SUPPORT ORDER.

21 Section 402(a) (42 U.S.C. 602(a)), as amended by

22 sections 104 and 138 of this Act, is amended—

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

24 (46);
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1 (2) by striking the period at the end of para2 graph (47) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (47) the fol4 lowing:

5 ‘‘(48) provide that the amount of aid otherwise

6 payable under the State plan for a month to a fam7 ily that includes an individual who has not attained

8 20 years of age and is the parent of a child whose

9 paternity has been established or with respect to

10 whom a child support order is in effect shall be in11 creased by $50.’’.

12 Subtitle B—Education and

13 Employment

14 SEC. 311. SCHOOLING AND EMPLOYMENT REQUIREMENTS.

15 (a) IN GENERAL.—Section 482 (42 U.S.C. 682), as

16 amended by section 111(a) of this Act, is amended by add17 ing at the end the following:

18 ‘‘(k) Each State program established under this part

19 shall impose only the following requirements with respect

20 to each participant who has not attained 20 years of age,

21 has not completed secondary school or received a certifi22 cate of high school equivalency, and is a custodial parent

23 or pregnant:

24 ‘‘(1) The participant shall participate in an

25 educational program or an employment preparation
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1 program that leads to a high school diploma or the

2 equivalent unless—

3 ‘‘(A) the participant has a need for child

4 care or other supportive services that cannot be

5 addressed by the program; or

6 ‘‘(B) the case manager determines, after

7 consultation with the school or training pro8 gram, that the recipient would not benefit from

9 direct placement in any such program, in which

10 case the recipient shall participate in appro11 priate alternative activities specified in an indi12 vidualized plan developed for the individual by

13 the case manager which may include a plan for

14 subsequent placement in such a program.

15 ‘‘(2)(A) If an individual required to participate

16 in a program referred to in paragraph (1) fails to

17 meet a standard (established by the State in accord18 ance with subparagraph (B)) for minimum perform19 ance in the program, the amount of aid otherwise

20 payable to the individual on a monthly basis under

21 the State plan approved under part A shall be re22 duced by the lesser of—

23 ‘‘(i) $60;

24 ‘‘(ii) 20 percent of such otherwise payable

25 amount; or
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1 ‘‘(iii) the difference between such otherwise

2 payable amount and the amount of such aid

3 that would be so payable if the family of the in4 dividual included 1 less person.

5 ‘‘(B) The minimum performance standard re6 ferred to in subparagraph (A)—

7 ‘‘(i) shall be based on the achievement of

8 satisfactory progress in the program or on ful9 fillment of an attendance standard established

10 by the State; and

11 ‘‘(ii) if based on the achievement of satis12 factory progress—

13 ‘‘(I) shall not require maintenance of

14 a grade that is higher than a passing

15 grade in the school district in which the

16 program is located, or if the program does

17 not award grades, of a performance level

18 higher than a level prescribed by the Sec19 retary in regulations; and

20 ‘‘(II) shall provide for consideration,

21 under a plan approved by the Secretary, of

22 whether the failure of an individual to

23 achieve a specified grade or other applica24 ble performance level is due to limitations

25 on the ability of the individual to learn or
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1 other circumstances that limit the ability

2 of the individual to perform up to his or

3 her capacities, or shall provide for deeming

4 progress to be satisfactory if the individual

5 meets a specified attendance standard.

6 ‘‘(C) Subparagraph (A) shall not apply to an

7 individual who has good cause (as determined by the

8 State in accordance with regulations prescribed by

9 the Secretary) for failing to meet the standard of

10 minimum performance.

11 ‘‘(D) The State may place in an escrow account

12 with respect to an individual whose aid is reduced

13 pursuant to subparagraph (A) of this paragraph an

14 amount equal to the amount of the reduction in such

15 aid, and may pay to the individual all amounts

16 placed in an escrow account with respect to the indi17 vidual, upon a demonstration by the individual of a

18 satisfactory effort (as defined by the State in accord19 ance with regulations prescribed by the Secretary) in

20 the program.

21 ‘‘(E) The State shall monitor the percentage of

22 the persons attending each school upon whom sanc23 tions are imposed pursuant to subparagraph (A),

24 and, if the State determines that the percentage for

25 any school significantly exceeds such percentage at
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1 similar schools, the State shall determine the rea2 sons for the excessive sanction percentage, and shall

3 suspend the imposition of sanctions upon the per4 sons attending the school until the State determines

5 that the sanction percentage is not excessive.

6 ‘‘(3)(A) If an individual required to participate

7 in a program referred to in paragraph (1) meets a

8 standard (established by the State in accordance

9 with subparagraph (B) of this paragraph) for suffi10 cient performance in the program, the amount of aid

11 otherwise payable to the individual on a monthly

12 basis under the State plan approved under part A

13 shall be increased by not less than the lesser of—

14 ‘‘(i) $60;

15 ‘‘(ii) 20 percent of such otherwise payable

16 amount; or

17 ‘‘(iii) the difference between such otherwise

18 payable amount and the amount of such aid

19 that would be so payable if the family of the in20 dividual included 1 less person.

21 ‘‘(B) The sufficient performance standard re22 ferred to in subparagraph (A) of this paragraph

23 shall be based on measurement of the same factors

24 used to determine whether the minimum perform25 ance standard referred to in paragraph (2)(B)(i) has
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1 been met, and may require a higher degree of per2 formance (subject to such limits as the Secretary

3 shall prescribe in regulations) than the minimum

4 performance standard.’’.

5 (b) CONFORMING AMENDMENTS.—Section

6 402(a)(19) (42 U.S.C. 602(a)(19)) is amended—

7 (1) in subparagraph (C)—

8 (A) in clause (iii), by inserting ‘‘, is not de9 scribed by clause (viii), and’’ before ‘‘—’’;

10 (B) in clause (v)—

11 (i) by inserting a comma after ‘‘16’’;

12 and

13 (ii) by inserting ‘‘and is not a custo14 dial parent or pregnant’’ before the semi15 colon; and

16 (C) by striking ‘‘or’’ at the end of clause

17 (vi);

18 (D) by adding ‘‘or’’ at the end of clause

19 (vii); and

20 (E) by adding at the end the following:

21 ‘‘(viii)(I) has not attained 20 years of

22 age,

23 ‘‘(II) has not completed secondary

24 school or received a certificate of high

25 school equivalency, and
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1 ‘‘(III) is pregnant, or is a custodial

2 parent of a child who has not attained 4

3 months of age and is personally providing

4 care for the child;’’; and

5 (2) by striking subparagraph (E).

6 SEC. 312. SUMMER ACTIVITIES AND TEEN EARNINGS.

7 (a) GRANT BONUS FOR PARTICIPATION IN APPRO8 PRIATE SUMMER ACTIVITIES.—Section 482 (42 U.S.C.

9 682), as amended by sections 111(a) and 301 of this Act,

10 is amended by adding at the end the following:

11 ‘‘(l) Each State with a program established under

12 this part—

13 ‘‘(1) may increase the aid otherwise payable on

14 a monthly basis under the State plan approved

15 under part A to any participant described in sub16 section (k) who participates in appropriate summer

17 activities (as determined by the case manager in ac18 cordance with State guidelines), by the lesser of $60

19 or 20 percent of such otherwise payable aid; and

20 ‘‘(2) shall make available to any such partici21 pant who participates in a summer educational pro22 gram or other activities approved by the State the

23 same child care and other supportive services that

24 are made available to participants in the program of

25 the State under this part.’’.
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1 (b) EARNED INCOME DISREGARD.—Section

2 402(a)(8)(A) (42 U.S.C. 602(a)(8)) is amended—

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

4 and

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

6 ‘‘(ix) shall disregard all earned income of

7 any individual applying for or receiving aid

8 under the State plan who has not attained 20

9 years of age and to whom section 482(k) ap10 plies;’’.

11 SEC. 313. PLANNING, STARTUP, AND REPORTING.

12 (a) REQUIRED PARTICIPATION RATES.—Section

13 403(l) (42 U.S.C. 603(l)), as amended by sections 112(a)

14 and 256(b) of this Act, is amended by adding at the end

15 the following:

16 ‘‘(7)(A) Notwithstanding paragraph (1), the Sec17 retary shall pay to a State an amount equal to 50 percent

18 of the expenditures made by such State in a fiscal year

19 in operating its program established under part F (in lieu

20 of any different percentage specified in paragraph (1)(A))

21 if the State’s teen participation rate (determined under

22 subparagraph (B)) for the preceding fiscal year does not

23 exceed or equal—

24 ‘‘(i) 15 percent if the preceding fiscal year is

25 1996;
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1 ‘‘(ii) 40 percent if such year is 1997;

2 ‘‘(iii) 70 percent if such year is 1998; or

3 ‘‘(iv) 90 percent if such year is 1999.

4 ‘‘(B) The State’s teen participation rate for a fiscal

5 year shall be the average of its teen participation rates

6 for each month in such fiscal year.

7 ‘‘(C) The State’s teen participation rate for a month

8 shall be the number, expressed as a percentage, equal to—

9 ‘‘(i) the average monthly number of individuals

10 required to comply with section 482(k) for the

11 month who have received aid under the State plan

12 approved under part A for at least 60 days, and—

13 ‘‘(I) are in an assigned or individualized

14 activity or in the midst of a regularly scheduled

15 school break;

16 ‘‘(II) have good cause for not participating

17 in a program under such section;

18 ‘‘(III) are in conciliation or whose aid

19 under the State plan approved under this part

20 has been reduced pursuant to such section; or

21 ‘‘(IV) are former recipients of such aid

22 who are receiving case management services

23 under the State plan; divided by

24 ‘‘(ii) the number of individuals required to com25 ply with section 482(k) for the month, plus the num-
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1 ber of former recipients of such aid who are receiv2 ing case management services under the State plan.

3 ‘‘(D) Subparagraphs (D) and (E) of paragraph (3)

4 shall apply in like manner to this paragraph.

5 ‘‘(E) The State shall submit to the Secretary a report

6 on the number of individuals in each category or sub7 category of participants in programs under section 482(k)

8 as the Secretary may define.

9 ‘‘(F) The Secretary shall develop such procedures as

10 may be necessary to ensure that participation rates re11 ported by States are accurate, and shall annually submit

12 to the Congress a compilation of the State reports made

13 pursuant to subparagraph (E).’’.

14 (b) STATE PLAN REQUIREMENT.—Section

15 482(a)(1)(B) (42 U.S.C. 682(a)(1)(B)) is amended by

16 striking ‘‘and (iii)’’ and inserting ‘‘(iii) a description of

17 the plans of the State for ensuring that, within 5 years

18 after the effective date of this clause, all individuals re19 quired to comply with subsection (k) do so, including the

20 strategy for phasing in the requirements of subsection (k),

21 which shall reflect the finding of a needs assessment that

22 identifies the current and projected numbers of recipients

23 of aid under the State plan in different regions of the

24 State who have not attained 20 years of age, the availabil25 ity of appropriate educational institutions and alternatives
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1 (including parenting education capacity) and the availabil2 ity of support services, and of the plans of the State for

3 ensuring that service providers have agreed to cooperate

4 in supplying necessary data (such as reports on attend5 ance, satisfactory participation, and performance), and a

6 commitment by the State to make annual reports to the

7 Secretary on progress in carrying out this clause and sub8 section (k), and (iv).’’.

9 SEC. 314. CHILD CARE FOR NON-AFDC TEEN PARENTS.

10 (a) ELIGIBILITY FOR AFDC CHILD CARE.—

11 (1) IN GENERAL.—Section 402(g)(1)(A)(i) (42

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

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

14 subclause (I);

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

16 subclause (II) and inserting ‘‘; and’’; and

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

18 following:

19 ‘‘(III) at the option of the State, for each indi20 vidual who has not attained 20 years of age, whose

21 income is less than 150 percent of the income offi22 cial poverty line (as defined by the Office of Man23 agement and Budget, and revised annually in ac24 cordance with section 673(2) of the Omnibus Budget

25 Reconciliation Act of 1981) applicable to the family
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1 of the individual, who is a custodial parent of a

2 child, and who requires such care in order to attend

3 an educational institution or such training programs

4 as the State deems appropriate.’’.

5 (2) AUTHORITY OF STATE TO REQUIRE CON6 TRIBUTION BY NON-AFDC TEEN PARENTS IN AC7 CORDANCE WITH A SLIDING FEE SCALE CONSISTENT

8 WITH THAT ESTABLISHED BY THE STATE UNDER

9 THE CCDBG.—Section 402(g)(1)(A) (42 U.S.C.

10 602(g)(1)(A)), as amended by sections 137(a),

11 140(a), 141, and 142 of this Act, is amended by

12 adding at the end the following:

13 ‘‘(xiv) The State may elect to require a family to con14 tribute to the cost of child care provided under clause

15 (i)(III) in accordance with a sliding fee scale that is con16 sistent with the sliding fee scale established by the State

17 under the Child Care and Development Block Grant Act

18 of 1990.’’.

19 (b) STATE OPTION TO PROVIDE CHILD CARE FOR

20 TEEN PARENTS PARTICIPATING IN AN EDUCATIONAL

21 PROGRAM AND ACCEPTING CASE MANAGEMENT SERV22 ICES.—Section 402(g)(1)(A) (42 U.S.C. 602(g)(1)(A)), as

23 amended by sections 137(a), 140(a), 141, and 142 of this

24 Act, and by subsection (a)(2) of this section, is amended

25 by adding at the end the following:
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1 ‘‘(xv) Each State may guarantee child care in accord2 ance with subparagraph (B) of this paragraph for each

3 individual described in subparagraph (A)(ii) or (B)(ii) of

4 subsection (a)(48) whose income does not exceed 150 per5 cent of the poverty line and who is participating in an

6 educational program pursuant to section 482(k), if and

7 for so long as the individual accepts case management as

8 provided for in such subsection.’’.

9 (c) ELIGIBILITY FOR AT-RISK CHILD CARE.—Sec10 tion 402(i)(1)(B) (42 U.S.C. 602(i)(1)(B)) is amended—

11 (1) by inserting ‘‘(i)’’ after ‘‘(B)’’ and

12 (2) by striking ‘‘and’’ and inserting ‘‘or’’; and

13 (3) by adding after and below the end the fol14 lowing:

15 ‘‘(ii) in the case of a family that includes a indi16 vidual who has not attained 20 years of age and is

17 a custodial parent, needs such care in order to par18 ticipate in an education or training program ap19 proved by the State; and’’.

20 Subtitle C—Case Management

21 SEC. 321. CASE MANAGEMENT.

22 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

23 602(a)), as amended by sections 104 and 138 of this Act,

24 is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (46);

3 (2) by striking the period at the end of para4 graph (47) and inserting ‘‘; and’’; and

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

7 ‘‘(48) provide that the State agency—

8 ‘‘(A) shall assign a case manager—

9 ‘‘(i) to each recipient of aid under the

10 State plan who—

11 ‘‘(I) is a custodial parent of a

12 child or pregnant; and

13 ‘‘(II) has not attained 20 years

14 of age;

15 ‘‘(ii) for 1 year, to each former recipi16 ent of such aid who—

17 ‘‘(I) is a custodial parent;

18 ‘‘(II) has not attained 20 years

19 of age; and

20 ‘‘(III) has not declined such as21 signment; and

22 ‘‘(B) may assign a case manager to any in23 dividual—

24 ‘‘(i) who—
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1 ‘‘(I) is a noncustodial parent re2 ceiving aid under the State plan; and

3 ‘‘(II) has not attained 20 years

4 of age; or

5 ‘‘(ii)(I) who is a parent not receiving

6 aid under the State plan;

7 ‘‘(II) who has not attained 20 years of

8 age;

9 ‘‘(III) whose income does not exceed

10 150 percent of the income official poverty

11 line (as defined by the Office of Manage12 ment and Budget, and revised annually in

13 accordance with section 673(2) of the Om14 nibus Budget Reconciliation Act of 1981)

15 applicable to a family of the size involved;

16 and

17 ‘‘(IV) who has not declined the as18 signment;

19 ‘‘(C) shall require each case manager to

20 improve the capacity of any individual to whom

21 assigned to assume greater responsibility for

22 the individual and the family of the individual,

23 by—

24 ‘‘(i) in the case of an individual re25 ceiving aid under the State plan who is a
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1 custodial parent and has not attained 18

2 years of age, assessing the appropriateness

3 of the living arrangement of the individual;

4 ‘‘(ii) providing referrals to appropriate

5 services (such as prenatal care, pre-and

6 post-partum school reentry, child care,

7 well-baby care (including immunizations),

8 and home visits if appropriate) needed for

9 the individual to complete educational pro10 grams or employment preparation pro11 grams;

12 ‘‘(iii) facilitating paternity establish13 ment through contacts with the putative

14 father during the mother’s pregnancy, if

15 appropriate, and if paternity is not estab16 lished at birth, exploring ways to establish

17 paternity;

18 ‘‘(iv) explaining the rights and respon19 sibilities of such individuals as established

20 under the State plans approved under this

21 part and part D, and helping such individ22 uals meet their responsibilities;

23 ‘‘(v) developing and monitoring the

24 case plan and service provision in order to
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1 assess progress and make necessary

2 changes;

3 ‘‘(vi) ensuring that the case plan in4 corporates education, health, and employ5 ment goals during and after the completion

6 of secondary school or the training pro7 gram, and if the individual is required or

8 allowed to participate in the program es9 tablished by the State under part F, ensur10 ing that the case plan is the employability

11 plan for purposes of the State program es12 tablished under part F;

13 ‘‘(vii) attempting to identify the cause

14 of, and address, any problems that are

15 causing those of such individuals who are

16 receiving aid under the State plan to be in

17 danger of a reduction in aid;

18 ‘‘(viii) recommending to the State

19 agency that those of such individuals who

20 are involved in an educational activity pur21 suant to a program established under sec22 tion 482(k) receive bonuses, or that the

23 State apply sanctions, as appropriate,

24 under the State plan, or that there be ex-
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1 emptions from a requirement imposed by

2 or under the State plan; and

3 ‘‘(ix) in the case of an individual who

4 has not attained 20 years of age and is a

5 parent or pregnant, providing the individ6 ual with health agency information and

7 family planning materials, and facilitating

8 appointments with respect to such matters

9 on request;

10 ‘‘(D) shall, to the extent feasible, require

11 each case manager to work with such individ12 uals to identify appropriate opportunities for

13 volunteer activities;

14 ‘‘(E) shall locate case managers in State

15 offices that administer the State plan, or allow

16 such offices to subcontract the duties of case

17 managers to community-based organizations or

18 other agencies of State government such as

19 health or education agencies; and

20 ‘‘(F)(i) shall ensure that the case load of

21 a case manager assigned full-time to teen par22 ent case management does not exceed 65 cases,

23 and that the average number of cases managed

24 by such full-time case managers does not exceed

25 50, and the Secretary shall prescribe regula-
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1 tions to address situations in which a case man2 ager works less than full-time with teen par3 ents.’’.

4 (b) STATE OPTION TO PROVIDE CHILD CARE FOR

5 TEEN PARENTS WHO PERFORM VOLUNTARY COMMUNITY

6 SERVICE.—Section 402(g)(1)(A) (42 U.S.C.

7 602(g)(1)(A)), as amended by sections 137(a), 140(a),

8 141, 142, 314(a)(2), and 314(b) of this Act, is amended

9 by adding at the end the following:

10 ‘‘(xvi) Each State may guarantee child care in ac11 cordance with subparagraph (B) of this paragraph for

12 each individual required to comply with section 482(k)

13 who voluntarily engages in community service activities

14 approved by the State.’’.

15 Subtitle D—Demonstration

16 Projects

17 SEC. 331. ADOLESCENT PREGNANCY PREVENTION GRANTS.

18 Title XX (42 U.S.C. 1397–1397f) is amended by

19 adding at the end the following:

20 ‘‘SEC. 2008. ADOLESCENT PREGNANCY PREVENTION

21 GRANTS.

22 ‘‘(a) PURPOSE.—The purpose of this section is to en23 courage and provide financial assistance for the develop24 ment of intensive and sustained school-linked and school25 based pregnancy prevention programs for adolescents and
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1 their families in areas of high poverty or high unmarried

2 adolescent birth rates that build upon other Federal,

3 State, and local pregnancy prevention and youth develop4 ment programs.

5 ‘‘(b) GENERAL AUTHORITY.—Notwithstanding sec6 tion 2005(a)(6), the Secretary, the Secretary of Edu7 cation, and the Chief Executive Officer of the Corporation

8 for National and Community Service (in this section re9 ferred to as the ‘responsible Federal officials’), in con10 sultation with other relevant Federal agencies, shall jointly

11 make grants to eligible entities, to carry out programs in

12 accordance with this section.

13 ‘‘(c) FEDERAL ADMINISTRATION.—

14 ‘‘(1) Notwithstanding the Department of Edu15 cation Organization Act (20 U.S.C. 3401 et seq.)

16 and the General Education Provisions Act (20

17 U.S.C. 1221 et seq.), the responsible Federal offi18 cials shall jointly provide for the administration of

19 this section, and shall jointly issue whatever regula20 tions, procedures, and guidelines, the responsible

21 Federal officials consider necessary and appropriate

22 to administer and enforce the provisions of this sec23 tion.

24 ‘‘(2) The responsible Federal officials may enter

25 into agreements with any other Federal entity with
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1 expertise in youth development activities to admin2 ister the program under this section and may pro3 vide such entity with appropriate reimbursement.

4 ‘‘(d) FUNDING.—

5 ‘‘(1) IN GENERAL.—To achieve the purposes of

6 this section, the responsible Federal officials shall

7 make grants to eligible entities under subsection (b)

8 and conduct activities under subsections (m) and (n)

9 so that in the aggregate the expenditures for such

10 grants and activities do not exceed $20,000,000 for

11 fiscal year 1995, $40,000,000 for fiscal year 1996,

12 $60,000,000 for fiscal year 1997, $80,000,000 for

13 fiscal year 1998, and $100,000,000 for fiscal year

14 1999 and each subsequent fiscal year.

15 ‘‘(2) PAYMENTS TO GRANTEES.—Upon approval

16 by the responsible Federal officials, each grant appli17 cant shall be entitled to payment of at least $50,000

18 and not more than $400,000 for each fiscal year

19 based on an assessment by the responsible Federal

20 officials of the scope and quality of the proposed

21 program and the number of adolescents to be served

22 by the program. Payments to a grantee for any fis23 cal year shall be available for expenditure by such

24 grantee in such fiscal year or the succeeding fiscal

25 year.
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1 ‘‘(3) RESERVATION FOR EVALUATION, TRAIN2 ING, TECHNICAL ASSISTANCE, AND NATIONAL

3 CLEARINGHOUSE.—The responsible Federal officials

4 shall reserve, with respect to each fiscal year, up to

5 10 percent of the aggregate amount described in

6 paragraph (1) for expenditure by the responsible

7 Federal officials for evaluation, training, and tech8 nical assistance related to the programs under this

9 section, and for the establishment and operation of

10 a National Clearinghouse on Adolescent Pregnancy

11 Prevention Programs under subsection (n).

12 ‘‘(4) EXCESS AMOUNT.—If in any fiscal year

13 the aggregate amount specified in paragraph (1) for

14 such fiscal year exceeds the amount required to

15 carry out approved grant applications and other

16 functions under paragraph (3), then the amount

17 specified in section 2003(c)(5) shall be increased by

18 the excess.

19 ‘‘(e) DEFINITIONS.—As used in this section:

20 ‘‘(1) ADOLESCENTS.—The term ‘adolescents’

21 means youth who have attained 10 years of age but

22 have not attained 20 years of age.

23 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en24 tity’ means a partnership that includes—
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1 ‘‘(A) a local education agency, acting on

2 behalf of one or more schools, together with

3 ‘‘(B) one or more community-based organi4 zations, institutions of higher education, or

5 public or private agencies or organizations.

6 ‘‘(3) ELIGIBLE AREA.—The term ‘eligible area’

7 means a school attendance area in which—

8 ‘‘(A) at least 75 percent of the children are

9 from low-income families as that term is used

10 in part A of title I of the Elementary and Sec11 ondary Education Act of 1965;

12 ‘‘(B) the number of children receiving aid

13 to families with dependent children under a

14 State plan approved part A of title IV is sub15 stantial as determined by the responsible Fed16 eral officials; or

17 ‘‘(C) the unmarried adolescent birth rate is

18 high, as determined by the responsible Federal

19 officials.

20 ‘‘(4) SCHOOL.—The term ‘school’ means a pub21 lic elementary, middle, or secondary school.

22 ‘‘(5) RESPONSIBLE FEDERAL OFFICIALS.—The

23 term ‘responsible Federal officials’ means the Sec24 retary of Education, the Secretary, and the Chief
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1 Executive Officer of the Corporation for National

2 and Community Service.

3 ‘‘(f) USES OF FUNDS.—Grants under this section—

4 ‘‘(1) shall be used to—

5 ‘‘(A) develop, operate, expand, and improve

6 a sequential, age-appropriate program of in7 struction and counseling services for adolescents

8 designed to promote personal responsibility and

9 a healthy drug free lifestyle, and to prevent ad10 olescent pregnancy, through such activities as

11 counseling and instruction in the full range of

12 consequences of premature sexual behavior and

13 adolescent pregnancy, training in decision-mak14 ing, and activities to promote involvement of

15 parents and families in adolescent development

16 and personal responsibility; and

17 ‘‘(B) provide opportunities for youth at18 risk to develop sustained contact with one or

19 more volunteer or professionally trained adults

20 to provide character development, through such

21 activities as mentoring, group coaching, or

22 after-school activities; and

23 ‘‘(2) may be used to conduct other related ac24 tivities that promote the purposes of this section.
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1 ‘‘(g) APPLICATION.—Each applicant for a grant

2 under subsection (b) must submit an application that—

3 ‘‘(1) includes a plan, based on local needs, for

4 accomplishing the purposes of this section that—

5 ‘‘(A) sets forth specific, measurable goals

6 intended to be accomplished under the program,

7 and describes the methods to be used in meas8 uring progress toward accomplishment of such

9 goals;

10 ‘‘(B) describes the components of the pro11 gram, including—

12 ‘‘(i) the role in the program of any

13 national service participants supported by

14 the National and Community Service Act

15 of 1990 or by any other national service

16 law as defined in such Act, and

17 ‘‘(ii) the activities, in accordance with

18 subsection (f), that will be made available

19 under the program,

20 and the manner in which such components will

21 be implemented, including the extent to which

22 activities will take place after school, on week23 ends, or during the summer;

24 ‘‘(C) describes the manner in which one or

25 more professional staff will administer the pro-
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1 gram, and, where appropriate or feasible, the

2 manner in which national service participants

3 will be involved in the development or delivery

4 of services and in the coordination of during or

5 after-school activities;

6 ‘‘(2) demonstrates the manner in which the pro7 gram will be based on research concerning effective

8 means of reducing adolescent pregnancy, including

9 reducing risk-taking behaviors correlated with ado10 lescent pregnancy;

11 ‘‘(3) demonstrates that the program will serve

12 male and female adolescents and, where feasible,

13 out-of-school adolescents, and describes the steps the

14 applicant will take to serve such adolescents;

15 ‘‘(4) demonstrates the manner in which the ap16 plicant will provide, to the extent feasible, a continu17 ity of services for adolescents through age 19;

18 ‘‘(5) demonstrates the extent to which school

19 personnel, parents, community organizations, and

20 the adolescents to be served have participated in the

21 development of the application and will participate

22 in the planning and implementation of the program;

23 ‘‘(6) describes the applicant’s partnership, in24 cluding the relationship of the partners, the role of

25 each partner in the development and implementation
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1 of the program, and the manner in which the part2 ners will coordinate their resources;

3 ‘‘(7) describes the nature and scope of commit4 ment to the program by other community institu5 tions, such as religious organizations, community

6 groups, institutions of higher education, business,

7 and labor;

8 ‘‘(8) describes the methods to be used in coordi9 nating the provision of services under the program

10 with the provision of services or benefits under other

11 Federal or federally assisted programs, State and

12 local programs, and private programs serving the

13 same population;

14 ‘‘(9) demonstrates that the area to be served is

15 an eligible area;

16 ‘‘(10) contains assurances that at least one ac17 tivity will be located in a school in the area to be

18 served and describes the activities that will be

19 school-based;

20 ‘‘(11) contains assurances that the amounts

21 provided under this section will not be used to sup22 plant Federal, State, or local funds for services and

23 activities that promote the purposes of this section;

24 ‘‘(12) contains assurances that the applicant

25 will provide a non-Federal share, in cash or in kind,
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1 of at least 20 percent of the cost of carrying out the

2 approved program;

3 ‘‘(13) describes the applicant’s plan for continu4 ation of the program following completion of the

5 grant period and termination of Federal support

6 under this section;

7 ‘‘(14) contains assurances that the applicant

8 will furnish such reports, containing such informa9 tion, and participate in such evaluations, as the re10 sponsible Federal officials may require; and

11 ‘‘(15) includes such other information and as12 surances as the responsible Federal officials may

13 reasonably require.

14 ‘‘(h) PRIORITIES.—In making awards under this sec15 tion, the responsible Federal officials shall give priority to

16 applicants that—

17 ‘‘(1) provide for non-Federal resources signifi18 cantly in excess of those required in subsection

19 (g)(12) or for an increasing ratio of non-Federal re20 sources over the term of the grant; and

21 ‘‘(2) participate in other Federal and non-Fed22 eral programs that relate to the purposes of this sec23 tion.

24 ‘‘(i) TREATMENT AS NON-FEDERAL SHARE.—For

25 purposes of the National and Community Service Act of
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1 1990, the funds provided to a grantee under this section

2 shall not be considered Federal funds.

3 ‘‘(j) PROHIBITION ON USE OF FUNDS.—No assist4 ance made available under this section shall be used to

5 provide religious instruction, to conduct worship services,

6 or to promote any religious view or teaching in any man7 ner.

8 ‘‘(k) GEOGRAPHIC DIVERSITY.—The responsible

9 Federal officials shall, to the extent feasible, ensure that

10 applications are approved from both urban and rural areas

11 and reflect nationwide geographic diversity.

12 ‘‘(l) APPLICATION PERIOD.—An application approved

13 under this section shall be for a term of 5 years; except

14 that approval may be terminated before the end of such

15 period if the responsible Federal officials determine that

16 the grantee conducting the program has failed substan17 tially to carry out the program as described in the ap18 proved application.

19 ‘‘(m) EVALUATION, TRAINING, AND TECHNICAL AS20 SISTANCE.—

21 ‘‘(1) EVALUATION.—The responsible Federal

22 officials shall evaluate the effectiveness of programs

23 conducted under this section, directly or by grant or

24 contract, and may require each grantee conducting

25 such a program to provide such information as the
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1 responsible Federal officials determine is necessary

2 for such evaluations.

3 ‘‘(2) TRAINING AND TECHNICAL ASSISTANCE.—

4 The responsible Federal officials may provide train5 ing and technical assistance with respect to the de6 velopment, implementation, or operation of programs

7 under this section.

8 ‘‘(3) COORDINATION WITH NATIONAL CLEAR9 INGHOUSE.—The responsible Federal officials shall

10 coordinate the activities conducted under this sub11 section with the activities conducted by the National

12 Clearinghouse on Adolescent Pregnancy Prevention

13 Programs under subsection (n).

14 ‘‘(n) NATIONAL CLEARINGHOUSE ON ADOLESCENT

15 PREGNANCY.—

16 ‘‘(1) ESTABLISHMENT.—The responsible Fed17 eral officials shall establish, through grant or con18 tract, a national center for the collection and provi19 sion of programmatic information and technical as20 sistance that relates to adolescent pregnancy preven21 tion programs, to be known as the ‘National Clear22 inghouse on Adolescent Pregnancy Prevention Pro23 grams’.

24 ‘‘(2) FUNCTIONS.—The national center estab25 lished under paragraph (1) shall serve as a national
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1 information and data clearinghouse, and as a train2 ing, technical assistance, and material development

3 source for adolescent pregnancy prevention pro4 grams. Such center shall—

5 ‘‘(A) develop and maintain a system for

6 disseminating information on all types of ado7 lescent pregnancy prevention program and on

8 the state of adolescent pregnancy prevention

9 program development, including information

10 concerning the most effective model programs;

11 ‘‘(B) develop and sponsor a variety of

12 training institutes and curricula for adolescent

13 pregnancy prevention program staff;

14 ‘‘(C) identify model programs representing

15 the various types of adolescent pregnancy pre16 vention programs;

17 ‘‘(D) develop technical assistance materials

18 and activities to assist other entities in estab19 lishing and improving adolescent pregnancy

20 prevention programs;

21 ‘‘(E) develop networks of adolescent preg22 nancy prevention programs for the purpose of

23 sharing and disseminating information; and

24 ‘‘(F) conduct such other activities as the

25 responsible Federal officials find will assist in
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1 developing and carrying out programs or activi2 ties to reduce adolescent pregnancy.’’.

3 SEC. 332. DEMONSTRATION PROJECTS TO PROVIDE COM4 PREHENSIVE SERVICES TO PREVENT ADO5 LESCENT PREGNANCY IN HIGH-RISK COMMU6 NITIES.

7 Title XX (42 U.S.C. 1397–1397f), as amended by

8 section 331 of this Act, is amended by adding at the end

9 the following:

10 ‘‘SEC. 2009. DEMONSTRATION PROJECTS TO PROVIDE COM11 PREHENSIVE SERVICES TO PREVENT ADO12 LESCENT PREGNANCY IN HIGH-RISK COMMU13 NITIES.

14 ‘‘(a)(1) PURPOSE.—In order to stimulate the develop15 ment of innovative approaches for the effective delivery of

16 comprehensive services, with particular emphasis on preg17 nancy prevention, to certain youth and their families in

18 high-risk communities and the promotion of community

19 involvement in improving the environment in which such

20 youth live, the Secretary shall conduct demonstration

21 projects in accordance with this section.

22 ‘‘(2) APPROVAL OF PROJECTS.—The Secretary, in

23 consultation with the Secretary of Education, the Sec24 retary of Housing and Urban Development, the Attorney

25 General, the Director of the Office of National Drug Con-
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1 trol Policy, and the Secretary of Labor, shall approve at

2 least 5 and not more than 7 projects, in accordance with

3 subsection (c). Upon approval by the Secretary, each

4 project applicant shall be entitled to payment of up to

5 $3,600,000 for each of fiscal years 1995 through 1999

6 for the purpose of conducting approved demonstration

7 projects.

8 ‘‘(b) FUNDING.—

9 ‘‘(1) IN GENERAL.—There shall be made avail10 able to the Secretary not to exceed $20,000,000 for

11 each of fiscal years 1995 through 1999 for carrying

12 out the projects under this section. Payments to a

13 grantee for any fiscal year must be expended by the

14 grantee in such fiscal year or the succeeding fiscal

15 year.

16 ‘‘(2) EVALUATION, TRAINING, AND TECHNICAL

17 ASSISTANCE.—The Secretary shall reserve, with re18 spect to each fiscal year, 10 percent of the amount

19 described in paragraph (1) for expenditure by the

20 Secretary for training and technical assistance relat21 ed to the demonstration projects under this section

22 and for evaluation of such projects. The amount so

23 reserved shall remain available for obligation

24 through fiscal year 1999.
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1 ‘‘(3) EXCESS AMOUNTS.—If in any fiscal year

2 the amount specified in paragraph (1) of this sub3 section for such fiscal year exceeds the amount re4 quired to carry out approved projects and evalua5 tion, training, and technical assistance under this

6 section, then the amount specified in section

7 2003(c)(5) shall be increased by the excess.

8 ‘‘(c) APPLICATION; ELIGIBILITY CRITERIA.—A local

9 public or private nonprofit organization, including a unit

10 of government, or any combination of such entities, shall

11 be eligible to submit a project application. In order that

12 an application be approved under subsection (a), the appli13 cation must—

14 ‘‘(1) demonstrate that the geographic area to be

15 served by the project satisfies the following criteria:

16 ‘‘(A) it includes a population of 20,000 to

17 35,000 residents,

18 ‘‘(B) it has an identifiable boundary and is

19 recognizable as a community by its residents,

20 and

21 ‘‘(C) within the community, there is a pov22 erty rate of not less than 20 percent;

23 ‘‘(2) include a plan for accomplishing the pur24 poses of this section that—
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1 ‘‘(A) describes the comprehensive, inte2 grated services, in accordance with subsection

3 (e), that will be made available under the

4 project;

5 ‘‘(B)(i) sets forth the goals intended to be

6 accomplished under the project, and

7 ‘‘(ii) describes the methods to be used in

8 measuring progress toward accomplishment of

9 such goals and the outcomes to be measured,

10 including unmarried adolescent birth rates,

11 rates of youth alcohol and drug use, rates of

12 youth violence, high school graduation rates,

13 and such other outcomes as the Secretary finds

14 appropriate;

15 ‘‘(C) describes the process by which the af16 fected community (including parents, the youth

17 to be served, schools, local government, religious

18 organizations, community groups, business, and

19 labor) is a full partner in the process of devel20 oping and implementing the project and the ex21 tent to which parents, the youth to be served,

22 and local institutions and organizations have

23 contributed to the planning process;

24 ‘‘(D) identifies the private and public part25 nerships to be used;
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1 ‘‘(E) describes the methods to be used in

2 coordinating the provision of services under the

3 project and the provision of services or benefits

4 under other Federal or federally assisted pro5 grams, State and local programs, and private

6 programs serving the same population; and

7 ‘‘(F) describes the manner in which other

8 Federal funds and non-Federal funds will be

9 used to further the purpose of the program;

10 ‘‘(3) demonstrate strong State and local govern11 ment commitment to the project and involvement in

12 the planning and implementation of the project;

13 ‘‘(4) demonstrate the ability of the applicant to

14 carry out the project;

15 ‘‘(5) describe the methods to be used for main16 taining accurate records regarding the activities car17 ried out with funds under this section;

18 ‘‘(6) contain assurances that the amounts pro19 vided under this section will not be used to supplant

20 Federal, State, and local funds for services and ac21 tivities that promote the purposes of this section;

22 ‘‘(7) contain assurances that the applicant will

23 provide a non-Federal share, in cash or in kind, of

24 10 percent of the cost of carrying out the approved
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1 project and describe the capacity of the applicant to

2 provide the non-Federal share;

3 ‘‘(8) contain assurances that the applicant will

4 furnish such reports, containing such information,

5 and participate in such evaluations, as the Secretary

6 may require; and

7 ‘‘(9) include such other information as the Sec8 retary may require.

9 ‘‘(d) PRIORITY.—In making awards under this sec10 tion, the Secretary shall give priority to applicants that

11 provide for non-Federal resources significantly in excess

12 of those required in subsection (c)(7).

13 ‘‘(e) USE OF GRANTS.—Under each demonstration

14 project conducted under this section, the grantee shall de15 velop a community-wide strategy to address the causes

16 and factors of risk-taking tendencies among youth, to

17 positively affect community norms, to increase community

18 health and safety, and to generally improve the social envi19 ronment to enhance the life choice of community youth.

20 The strategy shall be used to provide a comprehensive set

21 of coordinated services designed to saturate the commu22 nity and shall include, but not be limited to, the following

23 areas:

24 ‘‘(1) Health education and access services de25 signed to promote physical and mental well-being
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1 and personal responsibility (with particular emphasis

2 on pregnancy prevention), such as school health

3 services, family planning services, alcohol and drug

4 abuse prevention services and referral for treatment,

5 life skills training, and decision-making skills train6 ing.

7 ‘‘(2) Educational and employability development

8 services designed to promote educational advance9 ment leading to a high school diploma or its equiva10 lent and opportunities for high skill, high wage job

11 attainment and productive employment, to establish

12 a lifelong commitment to learning and achievement,

13 and to increase self-confidence, such as academic tu14 toring, literacy training, drop-out prevention pro15 grams, career and college counseling, mentoring pro16 grams, job skills training, apprenticeships, and part17 time paid work opportunities.

18 ‘‘(3) Social support services designed to provide

19 youth with a stable environment, opportunities for a

20 sustained relationship with one or more adults, and

21 opportunities for participation in safe and productive

22 activities, such as cultural, recreational and sports

23 activities, leadership development, peer counseling

24 and crisis intervention, mentoring programs,

25 parenting skills training, and family counseling.
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1 ‘‘(4) Community activities designed to improve

2 community stability, and to encourage youth to par3 ticipate in community service and establish a stake

4 in the community, such as community policing, com5 munity service programs, community activities in

6 partnership with less distressed neighborhoods, local

7 media campaigns, and establishment of community

8 advisory councils with youth representation.

9 ‘‘(5) Employment opportunity development ac10 tivities designed to be coordinated with educational

11 and employability development services, social sup12 port services, and community activities described in

13 paragraphs (2) through (4). Emphasis shall be on

14 development of linkages with employers within and

15 outside the community to help create employment

16 opportunities and foster an understanding by com17 munity youth of the relationship between productive

18 employment, healthy development, and sound life

19 choices.

20 ‘‘(f) EVALUATION, TRAINING, AND TECHNICAL AS21 SISTANCE.—

22 ‘‘(1) EVALUATION.—The Secretary shall evalu23 ate the effectiveness of each demonstration project

24 conducted under this section and may require each

25 grantee conducting such a project to provide such
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1 information as the Secretary determines is necessary

2 for such evaluations.

3 ‘‘(2) TRAINING AND TECHNICAL ASSISTANCE.—

4 The Secretary shall provide training and technical

5 assistance with respect to the development, imple6 mentation, or operation of projects under this sec7 tion.

8 ‘‘(3) COORDINATION WITH NATIONAL CLEAR9 INGHOUSE.—The Secretary shall coordinate the ac10 tivities conducted under this subsection with activi11 ties conducted by the National Clearinghouse on Ad12 olescent Pregnancy Prevention Programs under sec13 tion 2008(n).

14 ‘‘(g) FUNDING PERIOD.—Each demonstration

15 project supported under this section shall be conducted for

16 a 5-year period; except that the Secretary may terminate

17 a project before the end of such period if the Secretary

18 determines that the grantee conducting the project has

19 failed substantially to carry out the project as described

20 in the approved application.

21 ‘‘(h) DEFINITIONS AND SPECIAL RULES.—As used in

22 this section:

23 ‘‘(1) YOUTH.—The term ‘youth’ means an indi24 vidual who has attained 10 years of age but has not

25 attained 22 years of age.
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1 ‘‘(2) USE OF CENSUS DATA.—Population and

2 poverty rate shall be determined by the most recent

3 decennial census data available.’’.

4 TITLE IV—WAIVERS

5 SEC. 401. FUNDING FOR WAIVERS THAT ARE NOT COST

6 NEUTRAL.

7 (a) IN GENERAL.—Section 1115 (42 U.S.C. 1315)

8 is amended by adding at the end the following:

9 ‘‘(e)(1) Any State seeking a waiver under subsection

10 (a) of this section of compliance with a requirement of

11 section 402 may apply to the Secretary for the waiver,

12 and the Secretary may approve the waiver, without regard

13 to the cost neutrality of the waiver, and for payment of—

14 ‘‘(A) a percentage of State expenditures to

15 carry out the activities under the waiver that is

16 greater than the otherwise applicable percentage of

17 such expenditures for which payment otherwise may

18 be made;

19 ‘‘(B) 90 percent of the cost of evaluating activi20 ties pursuant to applications approved under this

21 subsection.

22 ‘‘(2)(A) After appropriate consultation with the Con23 gress, the States, and representatives of interested groups,

24 the Secretary shall annually issue an announcement of the

25 availability of Federal funds to assist in operating State
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1 programs pursuant to waivers issued under this sub2 section, specify a timeframe within which applications for

3 such waivers may be submitted, and specify areas of par4 ticular Federal interest with respect to such waivers.

5 ‘‘(B) At the end of the annual period for submitting

6 applications under this subsection, the Secretary shall

7 publish in the Federal Register a notice that—

8 ‘‘(i) describes the waivers proposed in applica9 tions so submitted, including estimated costs; and

10 ‘‘(ii) provides for a period during which mem11 bers of the public may comment on the applications.

12 ‘‘(C) The Secretary may not approve an application

13 submitted under this subsection before the end of the com14 ment period provided pursuant to subparagraph (B)(ii)

15 with respect to the application.

16 ‘‘(3) The Secretary shall establish an advisory com17 mittee to review and comment on pending applications

18 under this subsection.

19 ‘‘(4) For waivers under this subsection, there are au20 thorized to be appropriated to the Secretary not more

21 than—

22 ‘‘(A) $100,000,000 for fiscal year 1996;

23 ‘‘(B) $200,000,000 for fiscal year 1997;

24 ‘‘(C) $300,000,000 for fiscal year 1998; and

25 ‘‘(D) $400,000,000 for fiscal year 1999.’’.
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1 (b) ANNUAL WAIVER STATUS REPORTS.—

2 (1) IN GENERAL.—Section 1115 (42 U.S.C.

3 1315), as amended by subsection (a) of this section,

4 is amended by adding at the end the following:

5 ‘‘(f) On January 1 of each fiscal year, the Secretary

6 shall submit to the Congress a report that identifies each

7 waiver approved under this section, describes the status

8 of each such waiver, and summarizes the evaluation find9 ings relating to activities under waivers issued under this

10 section that became available during the immediately pre11 ceding fiscal year.’’.

12 (2) APPLICABILITY.—The amendment made by

13 paragraph (1) shall apply to fiscal year 1997 and

14 each succeeding fiscal year.

15 (c) NOTICE AND COMMENT PERIOD.—Section 1115

16 (42 U.S.C. 1315), as amended by subsections (a) and (b)

17 of this section, is amended by adding at the end the follow18 ing:

19 ‘‘(g) The Secretary may not issue a waiver under this

20 section before—

21 ‘‘(1) the Secretary has published in the Federal

22 Register a notice of the proposed waiver; and

23 ‘‘(2) 30 days have elapsed since the beginning

24 of the comment period with respect to the proposed

25 waiver.’’.
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1 (d) PROHIBITION AGAINST WAIVERS RESULTING IN

2 REDUCTION IN AFDC PAYMENTS.—Section 1115 (42

3 U.S.C. 1315), as amended by subsections (a), (b), and (c)

4 of this section, is amended by adding at the end the follow5 ing:

6 ‘‘(h)(1) Notwithstanding any other provision of this

7 section, the Secretary may not issue a waiver under this

8 section that provides for reduction of the levels at which

9 aid is payable to a family under a State plan approved

10 under part A of title IV, unless the reduction is to be im11 posed for failure without good cause to comply with a rule

12 imposed under the State program operated under part A

13 or F of title IV.

14 ‘‘(2) Any reduced expenditures resulting from the re15 duction by a State of the levels at which aid to families

16 with dependent children is payable shall not be considered

17 in determining whether granting the waiver would be cost18 neutral to the Federal Government.’’.

19 TITLE V—IMPROVING

20 GOVERNMENT ASSISTANCE

21 Subtitle A—AFDC Amendments

22 SEC. 501. REQUIREMENT THAT NEEDS STANDARDS RE23 FLECT THE COST OF ESSENTIAL ITEMS.

24 Section 402(h)(1) (42 U.S.C. 602(h)(1)) is amended

25 to read as follows:
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1 ‘‘(h)(1) Each State shall—

2 ‘‘(A) identify clearly the items provided for in

3 the State’s standard of need to meet basic needs, the

4 items provided for in the State’s standard of need to

5 meet special needs, and the amount allowed for each

6 such item;

7 ‘‘(B) not less frequently than every 3 years, in

8 accordance with a schedule established by the Sec9 retary, reexamine the basis for such allowances in

10 the State’s standard of need, including whether the

11 items provided for are sufficient to meet all essential

12 needs and whether the allowances for the items re13 flect prevailing prices; and

14 ‘‘(C) report to the Secretary and the public (at

15 such time and in such form and manner as the Sec16 retary may require) the conclusions resulting from

17 the reexamination, any changes that the State is

18 considering making in the standard of need as a re19 sult of the reexamination, and an explanation of how

20 the reexamination was conducted.’’.

21 SEC. 502. MAINTENANCE OF MINIMUM BENEFIT LEVELS.

22 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

23 602(a)), as amended by sections 104, 138, and 321(a) of

24 this Act, is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (47);

3 (2) by striking the period at the end of para4 graph (48) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (48) the fol6 lowing:

7 ‘‘(49) provide that the maximum amount of aid

8 payable for any month to a family under the State

9 plan shall not be reduced below the maximum

10 amount of aid payable under the State plan in effect

11 for October 1994 to a family of the same size.’’.

12 SEC. 503. OPTIONAL SUPPLEMENTATION OF BENEFITS FOR

13 FAMILIES SUBJECT TO RETROSPECTIVE

14 BUDGETING.

15 (a) IN GENERAL.—Section 402(a)(13) (42 U.S.C.

16 602(a)(13)) is amended—

17 (1) by striking ‘‘and’’ at the end of subpara18 graph (A);

19 (2) by adding ‘‘and’’ at the end of subpara20 graph (B); and

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

22 ‘‘(C) the State may increase the amount of

23 aid otherwise payable under the State plan to

24 a family to whom the State applies this para25 graph for any month if, due to changed cir-
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1 cumstances, the sum of such otherwise payable

2 aid and the other income of the family for the

3 month would be less than the maximum amount

4 of aid otherwise payable under the State plan to

5 a family of the same size;’’.

6 (b) CONFORMING AMENDMENT.—Section 403(a) (42

7 U.S.C. 603(a)) is amended by striking the 2nd sentence.

8 SEC. 504. INCOME DISREGARDS.

9 (a) STUDENT EARNINGS.—

10 (1) IN GENERAL.—Section 402(a)(8)(A)(i) (42

11 U.S.C. 602(a)(8)(A)(i)) is amended by striking ‘‘de12 pendent child’’ and all that follows and inserting

13 ‘‘individual who has not attained 20 years of age

14 and is an elementary or secondary school student’’.

15 (2) CONFORMING AMENDMENTS.—Section

16 402(a) (42 U.S.C. 602(a)) is amended—

17 (A) in paragraph (8)(A)(vii)—

18 (i) by striking ‘‘a dependent child who

19 is a full-time student’’ and inserting ‘‘an

20 individual who has not attained 20 years of

21 age, who is an elementary or secondary

22 school student or is participating in a pro23 gram intended to lead to a certificate of

24 high school equivalency or in other State25 approved education or training in accord-
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1 ance with an employability plan developed

2 under section 482(b),’’; and

3 (ii) by striking ‘‘such child’’ and in4 serting ‘‘the individual’’; and

5 (B) in paragraph (18), by striking ‘‘of a

6 dependent child who’’ and inserting ‘‘of an indi7 vidual who has not attained 20 years of age

8 and’’.

9 (b) TRAINING STIPENDS.—Section 402(a)(8)(A)(v)

10 (42 U.S.C. 602(a)(8)(A)(v)) is amended to read as follows:

11 ‘‘(v) shall disregard from the income of

12 any individual applying for or receiving aid to

13 families with dependent children any amount

14 received as a stipend or allowance under the

15 Job Training Partnership Act or under any

16 other training or similar program;’’.

17 (c) LUMP-SUM INCOME.—

18 (1) IN GENERAL.—Section 402(a)(8)(A) (42

19 U.S.C. 602(a)(8)(A)), as amended by section 312(b)

20 of this Act, is amended—

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

22 (viii); and

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

24 ‘‘(x) shall disregard from the income of

25 any family member any amounts of income re-
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1 ceived in the form of nonrecurring lump-sum

2 payments;’’.

3 (2) REPEAL.—Section 402(a) (42 U.S.C.

4 602(a)) is amended by striking paragraph (17).

5 (d) EDUCATIONAL ASSISTANCE.—Section

6 402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)), as amended by

7 section 312(b) of this Act and subsection (c)(1) of this

8 section, is amended—

9 (1) by striking ‘‘and’’ at the end of clause (ix);

10 and

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

12 ‘‘(xi) shall disregard all educational assist13 ance provided to a family member;’’.

14 (e) IN-KIND INCOME.—Section 402(a)(8)(A) (42

15 U.S.C. 602(a)(8)(A)), as amended by section 312(b) of

16 this Act and subsections (c)(1) and (d) of this section, is

17 amended—

18 (1) by striking ‘‘and’’ at the end of clause (x);

19 and

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

21 ‘‘(xii) shall disregard all in-kind income

22 provided to a family member;’’.

23 (f) BENEFITS UNDER THE NATIONAL AND COMMU24 NITY SERVICE ACT.—Section 402(a)(8)(A) (42 U.S.C.

25 602(a)(8)(A)), as amended by section 312(b) of this Act
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1 and subsections (c)(1), (d), and (e) of the section, is

2 amended—

3 (1) by striking ‘‘and’’ at the end of clause (xi);

4 and

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

6 ‘‘(xiii) shall disregard any living allowance,

7 child care allowance, stipend, or educational

8 award paid under section 140 of the National

9 and Community Service Act of 1990 to a family

10 member participating in a national service pro11 gram carried out with assistance from the Cor12 poration for National and Community Serv13 ice;’’.

14 (g) ‘‘FILL-THE-GAP’’ DISREGARDS.—Section

15 402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)), as amended by

16 section 312(b) of this Act and subsections (c)(1), (d), (e),

17 and (f) of this section, is amended—

18 (1) by striking ‘‘and’’ at the end of clause (xii);

19 and

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

21 ‘‘(xiv) after applying paragraph (28) and

22 the other clauses of this subparagraph, may dis23 regard such categories of income as are pro24 vided for in the State plan in an amount not

25 exceeding the difference between the State’s
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1 standard of need applicable to the family in2 volved and the State’s payment amount for a

3 family of the same size with no other income;’’.

4 SEC. 505. INCREASE IN RESOURCE LIMIT.

5 Section 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)) is

6 amended by striking ‘‘$1000 or such lower amount as the

7 State may determine’’ and inserting ‘‘$2000 (or, in the

8 case of a family with a member who has attained 60 years

9 of age, $3000)’’.

10 SEC. 506. EXCLUSIONS FROM RESOURCES.

11 (a) LIFE INSURANCE.—Section 402(a)(7)(B)(ii) (42

12 U.S.C. 602(a)(7)(B)(ii)) is amended by striking ‘‘and fu13 neral agreements’’ and inserting ‘‘funeral agreements, and

14 the cash value of life insurance policies,’’.

15 (b) REAL PROPERTY WHICH MUST BE DISPOSED

16 OF.—Section 402(a)(7)(B)(iii) (42 U.S.C.

17 602(a)(7)(B)(iii)) is amended to read as follows: ‘‘(iii) real

18 property which the family is making a good faith effort

19 to dispose of at a reasonable price, or’’.

20 (c) EXCLUSION OF EITC PAYMENTS.—Section

21 402(a)(7)(B)(iv) (42 U.S.C. 602(a)(7)(B)) is amended—

22 (1) by inserting ‘‘12-month period that begins

23 with’’ before ‘‘the month of receipt’’; and

24 (2) by inserting ‘‘and any lump-sum payment of

25 State earned income tax credits and any payments
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1 described in this clause are deemed to be expended

2 before other resources that are so included’’ before

3 the semicolon.

4 (d) LUMP-SUM PAYMENTS FOR MEDICAL EXPENSES

5 OR REPLACEMENT OF LOST RESOURCES.—Section

6 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)), as amended by

7 subsections (b) and (c) of this section, is amended—

8 (1) by striking ‘‘or’’ at the end of clause (iii);

9 and

10 (2) by inserting ‘‘, or (v) for the month of re11 ceipt and the following 11-month period, amounts

12 that have been paid as reimbursement (or payment

13 in advance) for medical expenses or for the cost of

14 repairing or replacing resources of the family’’ be15 fore the semicolon.

16 (e) RESOURCES FOR SELF-EMPLOYMENT.—Section

17 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)), as amended by

18 subsections (b), (c), and (d) of this section, is amended—

19 (1) by striking ‘‘or’’ at the end of clause (v);

20 and

21 (2) by inserting ‘‘, or (vii) liquid and nonliquid

22 resources that are or will be used for the self-em23 ployment of a family member, to the extent and

24 under the circumstances allowed by the State agency

25 in accordance with regulations issued by the Sec-
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1 retary after consultation with the Secretary of Agri2 culture’’ before the semicolon.

3 SEC. 507. VERIFICATION OF STATUS OF CITIZENS AND

4 ALIENS.

5 Section 1137(d) (42 U.S.C. 1320b–7(d)) is amended

6 by adding at the end the following:

7 ‘‘(6) A State is deemed to meet the require8 ments of paragraph (1) with respect to the eligibility

9 of each member of a family applying for aid under

10 the State plan approved under part A of title IV, if

11 the State requires, as a condition for such eligibility,

12 a declaration in writing by an adult member of the

13 family, under penalty of perjury, that each family

14 member is a citizen of the United States or an alien

15 eligible for aid under the State plan (and, with re16 spect to a child born into a family receiving such

17 aid, the declaration must be made no later than the

18 next redetermination of the eligibility of the family

19 after the birth of the child).’’.

20 SEC. 508. CALCULATION OF 185 PERCENT OF NEED STAND21 ARD.

22 Section 402(a)(18) (42 U.S.C. 602(a)(18)) is amend23 ed by striking ‘‘without application’’ and all that follows

24 through ‘‘exceeds’’ and inserting ‘‘after applying clauses

25 (v), (viii), (x), (xi), (xii), and (xiii) of paragraph (8)(A)’’.
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1 SEC. 509. PAYMENTS TO THE TERRITORIES.

2 (a) IN GENERAL.—Section 1108(a) (42 U.S.C.

3 1308(a)) is amended in the 1st sentence by striking all

4 that follows ‘‘—’’ and inserting the following:

5 ‘‘(1) for payment to Puerto Rico shall not ex6 ceed—

7 ‘‘(A) $82,000,000 with respect to fiscal

8 years 1994, 1995, and 1996; and

9 ‘‘(B) $102,500,000 for fiscal year 1997,

10 and $102,500,000 (adjusted pursuant to sub11 section (f)) for each fiscal year thereafter;

12 ‘‘(2) for payment to the Virgin Islands shall not

13 exceed—

14 ‘‘(A) $2,800,000 with respect to fiscal

15 years 1994, 1995, and 1996; and

16 ‘‘(B) $3,500,000 for fiscal year 1997, and

17 $3,500,000 (adjusted pursuant to subsection

18 (f)) for each fiscal year thereafter; and

19 ‘‘(3) for payment to Guam shall not exceed—

20 ‘‘(A) $3,800,000 with respect to fiscal year

21 1994, 1995, and 1996; and

22 ‘‘(B) $4,750,000 for fiscal year 1997, and

23 $4,750,000 (adjusted pursuant to subsection

24 (f)) for each fiscal year thereafter.’’.
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1 (b) INFLATION ADJUSTMENT.—Section 406 (42

2 U.S.C. 606) is amended by adding at the end the follow3 ing:

4 ‘‘(f) The Secretary shall adjust each dollar amount

5 required to be adjusted pursuant to this subsection for any

6 fiscal year by—

7 ‘‘(1) multiplying the amount by the ratio of—

8 ‘‘(A) the Consumer Price Index (as pre9 pared by the Department of Labor) for the 3rd

10 quarter of the calendar year in which the fiscal

11 year begins, to

12 ‘‘(B) the Consumer Price Index for the 3rd

13 quarter of calendar year 1996; and

14 ‘‘(2) rounding the product, if not a multiple of

15 $10,000, to the nearer multiple of $10,000.’’.

16 Subtitle B—Food Stamp Act

17 Amendments

18 SEC. 511. INCONSEQUENTIAL INCOME.

19 Section 5(d)(2) of the Food Stamp Act of 1977 (7

20 U.S.C. 2014(d)(2)) is amended to read as follows: ‘‘(2)

21 any inconsequential payments, as defined by the Sec22 retary, received during the certification period, but not to

23 exceed a total of such payments of $30 per household

24 member in any quarter, whether the household’s income

25 is calculated on a prospective or retrospective basis,’’.
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1 SEC. 512. EDUCATIONAL ASSISTANCE.

2 Section 5 of the Food Stamp Act of 1977 (7 U.S.C.

3 2014) is amended—

4 (1) by striking clause (3) of subsection (d) and

5 inserting the following:

6 ‘‘(3) all educational assistance provided to a

7 household member,’’;

8 (2) in the proviso of clause (5) of subsection

9 (d), by striking ‘‘and no portion of any educational

10 loan’’ and all that follows through ‘‘provided for liv11 ing expenses,’’; and

12 (3) striking clause (3) of subsection (k).

13 SEC. 513. TRAINING STIPENDS AND ALLOWANCES; INCOME

14 FROM ON-THE-JOB TRAINING PROGRAMS.

15 Section 5 of the Food Stamp Act of 1977 (7 U.S.C.

16 2014) is amended—

17 (1) by striking ‘‘and (16)’’ in subsection (d)

18 and inserting ‘‘(16)’’;

19 (2) by inserting before the period at the end of

20 subsection (d) ‘‘, and (17) any amount received by

21 any member of a household as a stipend or allow22 ance under the Job Training Partnership Act (29

23 U.S.C. 1501 et seq.) or under any other training or

24 similar program’’; and

25 (3) by striking subsection (l).
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1 SEC. 514. EARNED INCOME TAX CREDITS.

2 Effective on and after September 1, 1994, the second

3 sentence of section (5)(g)(3) of the Food Stamp Act of

4 1977 (7 U.S.C. 2014(g)(3)) is amended—

5 (1) by inserting ‘‘Federal or State lump-sum’’

6 immediately preceding ‘‘earned income tax credits’’;

7 and

8 (2) by striking ‘‘if such member was participat9 ing’’ and all that follows through ‘‘the 12-month pe10 riod’’.

11 SEC. 515. RESOURCES NECESSARY FOR SELF-EMPLOY12 MENT.

13 Section 5(g)(3) of the Food Stamp Act of 1977 (7

14 U.S.C. 2014(g)(3)) is amended by adding at the end the

15 following: ‘‘The Secretary shall also exclude from financial

16 resources loans obtained for the purposes of starting or

17 operating a business. The Secretary may exclude from fi18 nancial resources liquid or nonliquid resources that are or

19 will be used for the self-employment of any member of a

20 household to the extent and under the circumstances al21 lowed in regulations issued by the Secretary after con22 sultation with and the Secretary of Health and Human

23 Services.’’.
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1 SEC. 516. LUMP-SUM PAYMENTS FOR MEDICAL EXPENSES

2 OR REPLACEMENT OF LOST RESOURCES.

3 Section 5(g)(3) of the Food Stamp Act of 1977 (7

4 U.S.C. 2014(g)(3)), as amended by the preceding provi5 sions of this subtitle, is amended by adding at the end

6 the following: ‘‘The Secretary shall also exclude from fi7 nancial resources, for a period of one year from their re8 ceipt, amounts that have been paid as reimbursements (or

9 payment in advance) for medical expenses or for the cost

10 of repairing or replacing resources of the family.’’.

11 SEC. 517. CONFORMING AMENDMENT.

12 Section 5(d)(8) of the Food Stamp Act of 1977 (7

13 U.S.C. 2014(d)(8)) is amended in the proviso by inserting

14 ‘‘paragraph (3) of subsection (g) of this section or’’ before

15 ‘‘other laws’’.

16 TITLE VI—EFFECTIVE DATE

17 SEC. 601. EFFECTIVE DATE.

18 Except as otherwise provided in this Act, this Act and

19 the amendments made by this Act shall take effect on Oc20 tober 1, 1995.

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