I

103D CONGRESS

1ST SESSION H. R. 741

To amend title IV of the Social Security Act to provide welfare families

with the education, training, job search, and work experience needed

to prepare them to leave welfare within 2 years, to authorize States

to conduct demonstration projects to test the effectiveness of policies

designed to help people leave welfare and increase their financial security,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 2, 1993

Mr. SHAW (for himself, Mrs. JOHNSON of Connecticut, Mr. GRANDY, Mr.

SANTORUM, Mr. MICHEL, and Mr. GINGRICH) introduced the following

bill; which was referred jointly to the Committees on Ways and Means,

Agriculture, Education and Labor, Energy and Commerce, Banking, Finance and Urban Affairs, and the Judiciary

A BILL

To amend title IV of the Social Security Act to provide

welfare families with the education, training, job search,

and work experience needed to prepare them to leave

welfare within 2 years, to authorize States to conduct

demonstration projects to test the effectiveness of policies

designed to help people leave welfare and increase their

financial security, and for other purposes.

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

2 This Act may be cited as the ‘‘Responsibility and

3 Empowerment Support Program Providing Employment,

4 Child Care, and Training Act’’.

5 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—AFDC TRANSITION AND WORK PROGRAM

Sec. 101. AFDC transition and work program.

Sec. 102. Community work experience program amendments.

Sec. 103. Work supplementation program amendments.

Sec. 104. Effective date; regulations.

TITLE II—EXPANDED STATE WAIVER AUTHORITY

Sec. 201. Authority to grant waivers to provisions of social welfare statutes to

better enable providers of social services to promote self-sufficiency.

TITLE III—MISCELLANEOUS AMENDMENTS

Sec. 301. AFDC recipients required to undergo necessary substance abuse

treatment as a condition of receiving AFDC.

Sec. 302. Authority of State to modify certain AFDC income disregard rules.

7 TITLE I—AFDC TRANSITION AND

8 WORK PROGRAM

9 SEC. 101. AFDC TRANSITION AND WORK PROGRAM.

10 (a) IN GENERAL.—Section 402(a) of the Social Secu11 rity Act (42 U.S.C. 602(a)) is amended by inserting after

12 paragraph (28) the following:

13 ‘‘(29) provide that—

14 ‘‘(A) the State must have in effect a pro15 gram that—
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1 ‘‘(i) provides qualified individuals with

2 the education, training, and work experi3 ence needed to prepare them for a life

4 without aid under the plan; and

5 ‘‘(ii) consists of—

6 ‘‘(I) a transition component,

7 which must include the job search

8 program established by the State

9 under section 482(g), and which may

10 include any other service, activity, or

11 program of the State that is referred

12 to in section 482(d)(1); and

13 ‘‘(II) a work component, which

14 may include a work supplementation

15 program operated by the State under

16 section 482(e), a community work ex17 perience program established by the

18 State under section 482(f), or any

19 other work program of the State that

20 is approved by the Secretary;

21 ‘‘(B)(i) as used in this paragraph, the term

22 ‘qualified individual’ means—

23 ‘‘(I) on and after October 1, 1994, all

24 individuals eligible for aid under the plan
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1 who applied for such aid on or after such

2 date;

3 ‘‘(II) on and after October 1, 1998,

4 all individuals eligible for aid under the

5 plan; and

6 ‘‘(ii) notwithstanding clause (i), the term

7 ‘qualified individual’ does not include any indi8 vidual—

9 ‘‘(I) who is incapacitated;

10 ‘‘(II) at the option of the State, who

11 is making progress in a substance abuse

12 treatment program, unless this subclause

13 has been applied to the individual for 12

14 months;

15 ‘‘(III) during such 6-month period as

16 the individual may select, in which the in17 dividual gives birth to the first child born

18 alive to the individual after becoming eligi19 ble for aid under this part;

20 ‘‘(IV) during such 4-month period as

21 the individual may select, in which the in22 dividual gives birth to the second or subse23 quent child born alive to the individual

24 after becoming eligible for aid under this

25 part;
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1 ‘‘(V) who is the parent of a child who

2 was returned to the home of the individual

3 during the preceding 2 months after hav4 ing been removed from the home; or

5 ‘‘(VI) who is providing full-time care

6 for a disabled dependent of the individual;

7 ‘‘(C)(i) each qualified individual must par8 ticipate in the transition component, except as

9 otherwise provided in this subparagraph;

10 ‘‘(ii) a qualified individual may not be re11 quired (but may be allowed) to participate in

12 the transition component if, on the basis of de13 mographic criteria, the State finds that it is un14 likely that the individual will be a recipient of

15 aid under the plan during a significant length

16 of time;

17 ‘‘(iii) a qualified individual may not par18 ticipate in the transition component if the indi19 vidual has elected to participate in the work

20 component; and

21 ‘‘(iv) a qualified individual may not partici22 pate in the transition component after the first

23 24 months for which the individual is a quali24 fied individual;
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1 ‘‘(D)(i) each qualified individual participat2 ing in the transition component must partici3 pate in activities under such component for an

4 average of not fewer than 10 hours per week

5 during the first 24 months of such participa6 tion;

7 ‘‘(ii) the State, in consultation with the

8 Secretary, must establish guidelines by which

9 determinations under clause (i) will be made,

10 and which, in the case of educational activities

11 under the transition component, must provide

12 that an individual who is enrolled full-time in a

13 program of study at an educational institution

14 (including a vocational or technical training

15 school), as determined by the institution, and is

16 making satisfactory progress in the program of

17 study, as determined by the institution, is to be

18 regarded as participating in the transition com19 ponent, in accordance with such rules as the

20 Secretary may prescribe (including rules gov21 erning how time spent in such a program of

22 study is to be converted into hours of participa23 tion in the transition component);

24 ‘‘(E)(i) the State must require each quali25 fied individual (or, in the case of a family which
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1 has received aid under the plan by reason of

2 section 407, at least 1 parent (or, at the option

3 of the State, both parents) in the family) who

4 is not participating in the transition component

5 to participate in the work component; and

6 ‘‘(ii) any qualified individual participating

7 in the work component, may, with the approval

8 of the State, discontinue participation in the

9 work component and begin or resume participa10 tion in the transition component, subject to

11 subparagraph (C)(iv);

12 ‘‘(iii) the State may, at its option, exempt

13 a qualified individual, during 12 of the first 24

14 months for which an individual is a qualified in15 dividual, from the requirement to participate in

16 the transition component or the work compo17 nent if the individual is described in paragraph

18 (35)(A) and is in compliance with paragraph

19 (35)(A);

20 ‘‘(F) each qualified individual must cooper21 ate with the State in developing a plan which—

22 ‘‘(i) describes the respective respon23 sibilities of the State and of the individual

24 under the program with the goal of prepar25 ing the individual for work; and
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1 ‘‘(ii) includes a written statement in2 forming the individual that, upon comple3 tion of the transition component, aid under

4 the State plan under this part will be dis5 continued unless the individual finds gain6 ful employment or is participating in the

7 work component;

8 ‘‘(G) at the end of the first 12 months for

9 which an individual is a qualified individual (or,

10 at the option of the State, more frequently), the

11 State must determine whether the individual is

12 making clear and substantial progress toward

13 preparing for work (as defined by the State in

14 consultation with the Secretary);

15 ‘‘(H) if the State determines that a quali16 fied individual has failed to meet any require17 ment imposed under this paragraph—

18 ‘‘(i) in the case of the 1st such failure,

19 subclauses (I) and (II) of section

20 402(a)(19)(G)(i) shall apply until the fail21 ure to comply ceases;

22 ‘‘(ii) in the case of the 2nd such fail23 ure, subclauses (I) and (II) of section

24 402(a)(19)(G)(i) shall apply until the fail-
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1 ure to comply ceases or 3 months, which2 ever is longer; and

3 ‘‘(iii) in the case of the 3rd such fail4 ure, the family of the individual shall not

5 be eligible for aid under the State plan

6 under this part, notwithstanding any other

7 provision of this part;

8 ‘‘(I) at the option of the State, the State

9 may impose a rule under which the family of an

10 individual shall not be eligible for aid under the

11 State plan under this part, notwithstanding any

12 other provision of this part, after the individual

13 has been required to participate in the work

14 component for a period (determined by the

15 State) of not less than 3 years; and

16 ‘‘(J) if a family becomes ineligible for aid

17 under the State plan under this part by reason

18 of subparagraph (H)(iii) or (I), the family shall,

19 for purposes of medical assistance under the

20 State plan under title XIX, be deemed to be a

21 recipient of aid under the State plan under this

22 part for so long as the family is otherwise eligi23 ble for aid under the State plan under this

24 part.’’.
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1 (b) PAYMENTS TO STATES.—Section 403 of such Act

2 (42 U.S.C. 603) is amended by adding at the end the fol3 lowing:

4 ‘‘(o)(1) Each State which has been paid under sub5 section (l) for any fiscal year an amount equal to the limi6 tation determined under subsection (k)(2) for the fiscal

7 year, and which operates a program under section

8 402(a)(29), shall be entitled to payments under paragraph

9 (4) of this subsection for the fiscal year in an amount

10 equal to the lesser of—

11 ‘‘(A) the sum of the applicable percentages

12 (specified in such paragraph (4)) of its expenditures

13 to carry out the program (subject to limitations pre14 scribed by or pursuant to such section or such para15 graph (4) on expenditures that may be included for

16 purposes of determining payment under such para17 graph (4)); or

18 ‘‘(B) the limitation determined under paragraph

19 (2) of this subsection with respect to the State for

20 the fiscal year.

21 ‘‘(2) The limitation determined under this paragraph

22 with respect to a State for any fiscal year is the amount

23 that bears the same ratio to the amount specified in para24 graph (3) for the fiscal year as the average monthly num25 ber of adult recipients (as defined in subsection (k)(4))
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1 in the State in the preceding fiscal year bears to the aver2 age monthly number of such recipients in all the States

3 for such preceding year.

4 ‘‘(3) The amount specified in this paragraph is—

5 ‘‘(A) $50,000,000 for fiscal year 1994;

6 ‘‘(B) $200,000,000 for fiscal year 1995;

7 ‘‘(C) $600,000,000 for fiscal year 1996;

8 ‘‘(D) $1,000,000,000 for fiscal year 1997; and

9 ‘‘(E) $1,500,000,000 for fiscal year 1998.

10 ‘‘(4) Each State which has been paid under sub11 section (l) for a fiscal year an amount equal to the limita12 tion determined under subsection (k)(2) for the fiscal year,

13 and which operates a program under section 402(a)(29)

14 during the fiscal year shall, in addition to any payment

15 under subsection (a) or (l), be entitled to payment from

16 the Secretary of an amount equal to—

17 ‘‘(A) 50 percent of the expenditures of the

18 State for administrative costs incurred in operating

19 the program during the fiscal year (other than per20 sonnel costs for staff employed in the operation of

21 the program); and

22 ‘‘(B) the greater of 70 percent or the Federal

23 medical assistance percentage (as defined in section

24 1118 in the case of a State to which section 1108

25 applies, or as defined in section 1905(b) in the case
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1 of any other State) of the other expenditures of the

2 State incurred in operating the program during the

3 fiscal year.

4 ‘‘(5)(A) Notwithstanding paragraph (4), the Sec5 retary shall pay to a State an amount equal to 50 percent

6 of the expenditures of the State incurred in operating the

7 program under section 402(a)(29) during a fiscal year if

8 the State’s participation rate (determined under subpara9 graph (B)) for the immediately preceding fiscal year is less

10 than—

11 ‘‘(i) 15 percent if the preceding fiscal year is

12 1994;

13 ‘‘(ii) 20 percent if such year is 1995;

14 ‘‘(iii) 30 percent if such year is 1996;

15 ‘‘(iv) 40 percent if such year is 1997;

16 ‘‘(v) 50 percent if such year is 1998;

17 ‘‘(vi) 60 percent if such year is 1999; and

18 ‘‘(vii) 70 percent if such year is 2000.

19 ‘‘(B)(i) The State’s participation rate for a fiscal year

20 shall be the number, expressed as a percentage, equal to—

21 ‘‘(I) the number of individuals who participated

22 in the State’s program under section 402(a)(29) in

23 the year; divided by

24 ‘‘(II) the number of individuals required to par25 ticipate in the program in the year (including indi-
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1 viduals with respect to whom the State has exercised

2 its option to require their participation).

3 ‘‘(ii) For purposes of this subparagraph, an individ4 ual shall not be considered to have satisfactorily partici5 pated in the program under section 402(a)(29) solely by

6 reason of the individual being registered to participate in

7 the program.

8 ‘‘(C) For purposes of this paragraph, an individual

9 shall be considered to have participated in the program

10 under section 402(a)(29) if the individual has participated

11 in accordance with such requirements, consistent with reg12 ulations of the Secretary, as the State shall establish.

13 ‘‘(D) If the Secretary determines that a State has

14 failed to achieve the participation rate for any fiscal year

15 specified in subparagraph (A), the Secretary may waive,

16 in whole or in part, the reduction in the payment rate oth17 erwise required by subparagraph (A) if the Secretary finds

18 that the State—

19 ‘‘(i) is in conformity with section 402(a)(29);

20 ‘‘(ii) has made a good faith effort to achieve the

21 participation rate; and

22 ‘‘(iii) has submitted a proposal which is likely

23 to achieve the applicable participation rates for the

24 current fiscal year and any succeeding fiscal year so

25 specified.’’.
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1 (c) CONFORMING AMENDMENTS.—Section 403(l)(3)

2 of such Act (42 U.S.C. 603(l)(3)) is amended—

3 (1) in subparagraph (A)—

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

5 (v);

6 (B) by striking the period in clause (vi)

7 and inserting a semicolon; and

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

9 ‘‘(vii) 30 percent if such year is 1996;

10 ‘‘(viii) 40 percent if such year is 1997;

11 ‘‘(ix) 50 percent if such year is 1998;

12 ‘‘(x) 60 percent if such year is 1999; and

13 ‘‘(xi) 70 percent if such year is 2000.’’; and

14 (2) in subparagraph (B)(ii)(IV), by striking

15 ‘‘and 1995’’ and inserting ‘‘through 2000’’.

16 SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM

17 AMENDMENTS.

18 Section 482(f)(1)(B) of the Social Security Act (42

19 U.S.C. 682(f)(1)(B)) is amended—

20 (1) in clause (i)—

21 (A) by inserting ‘‘(I)’’ after ‘‘(B)(i)’’; and

22 (B) by striking ‘‘(as determined by the

23 State)’’ and inserting ‘‘in the transition compo24 nent of the program under section 402(a)(29)
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1 who is required to participate in the program

2 established under this subsection’’; and

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

4 ‘‘(II) Each participant in the work component of the

5 program under section 402(a)(29) who is required to par6 ticipate in the program established under this subsection

7 may not be required to work in any month for a number

8 of hours that exceeds 35 (or 30, if the State requires the

9 participant to engage in a job search program established

10 by the State under subsection (g)).’’; and

11 (2) in clause (ii), by inserting ‘‘who is a partici12 pant in the transition component of the program

13 under section 402(a)(29)’’ after ‘‘an individual’’.

14 SEC. 103. WORK SUPPLEMENTATION PROGRAM AMEND15 MENTS.

16 (a) AUTHORITY OF STATES TO ASSIGN PARTICI17 PANTS TO UNFILLED JOBS.—Section 484(c) of the Social

18 Security Act (42 U.S.C. 684(c)) is amended by striking

19 the last sentence.

20 (b) AUTHORITY OF STATES TO USE SUMS THAT

21 WOULD OTHERWISE BE EXPENDED FOR FOOD STAMP

22 BENEFITS TO PROVIDE SUBSIDIZED JOBS FOR PARTICI23 PANTS.—

24 (1) IN GENERAL.—Section 482(e)(1) of such

25 Act (42 U.S.C. 682(e)(1)) is amended—
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1 (A) by inserting ‘‘, and the sums that

2 would otherwise be used to provide participants

3 in the program under this subsection with food

4 stamp benefits under the Food Stamp Act of

5 1977,’’ before ‘‘and use’’; and

6 (B) by inserting ‘‘and the food stamp ben7 efits that would otherwise be so provided to

8 them’’ before the period.

9 (2) SUBSIDIES PROVIDED TO EMPLOYERS AND

10 INCLUDED IN WAGES OF PARTICIPANTS; MINIMUM

11 EMPLOYER CONTRIBUTION.—Section 482(e)(3) of

12 such Act (42 U.S.C. 682(e)(3)) is amended by add13 ing at the end the following:

14 ‘‘(E) Each State operating a work supplementation

15 program under this subsection shall enter into an agree16 ment with the employer who is to provide an eligible indi17 vidual with a supplemented job under the program, under

18 which—

19 ‘‘(i) the State is required to pay the employer

20 an amount specified in the agreement as the sub21 sidized portion of the wages of the eligible individ22 ual; and

23 ‘‘(ii) the employer is required to pay the eligible

24 individual wages which, when added to an amount

25 that will be payable as aid to families with depend-
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1 ent children to the individual if the individual is paid

2 such wages, are not less than 125 percent of the

3 sum of—

4 ‘‘(I) the amount that would otherwise be

5 payable as aid to families with dependent chil6 dren to the eligible individual if the State did

7 not have a work supplementation program

8 under this subsection in effect; and

9 ‘‘(II) if the State elects to subsidize jobs

10 for participants in the program through the res11 ervation of sums that would otherwise be used

12 to provide such participants with food stamp

13 benefits under the Food Stamp Act of 1977,

14 the amount paid to the State by the Secretary

15 of Agriculture that represents the cash value of

16 the food stamp benefits for which the household

17 of the eligible individual is a member is eligible

18 under such Act.

19 ‘‘(F) For purposes of computing the amount of the

20 Federal payment to a State under paragraph (1) or (2)

21 of section 403(a), for expenditures incurred in making

22 payments to individuals and employers under the State’s

23 work supplementation program under this section, the

24 State may claim as such expenditures the maximum
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1 amount payable to the State under paragraph (4) of this

2 subsection.

3 ‘‘(G) Notwithstanding paragraph (1), a State may

4 use for any purpose the sums reserved under paragraph

5 (1) which are not used to subsidize jobs under this sub6 section attributable to savings achieved by operation of

7 subparagraph (E).’’.

8 (3) CONFORMING AMENDMENT.—Section

9 482(e)(3)(A) of such Act (42 U.S.C. 682(e)(3)(A))

10 is amended by striking the 2nd sentence.

11 (4) EMPLOYMENT CASHOUT OF FOOD STAMP

12 BENEFITS.—Section 16 of the Food Stamp Act of

13 1977 (7 U.S.C. 2025) is amended by adding at the

14 end the following:

15 ‘‘(l) If a State agency of a State that makes the elec16 tion described in section 482(e)(3)(E)(ii)(II) of the Social

17 Security Act informs the Secretary that an individual who

18 is participating in the work supplementation program car19 ried out under section 482(e) of such Act is a member

20 of a household that participates in the food stamp pro21 gram and all the members of the household receive bene22 fits under a State plan approved under part A of title IV

23 of such Act—
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1 ‘‘(1) the Secretary shall pay to the State an

2 amount equal to the value of the food stamp benefits

3 the household is eligible to receive under this Act;

4 ‘‘(2) the State shall expend the amount in ac5 cordance with section 482(e)(3) of the Social Secu6 rity Act to make a payment to the individual in lieu

7 of food stamp benefits the household would receive

8 but for the operation of this subsection;

9 ‘‘(3) for purposes of—

10 ‘‘(A) sections 5 and 8(a) of this Act, the

11 amount shall be excluded from household in12 come and resources; and

13 ‘‘(B) section 8(b) of this Act, the amount

14 shall be considered as the value of an allotment

15 provided to the household; and

16 ‘‘(4) the household shall not receive food stamp

17 benefits from the State agency for the period during

18 which the member continues to participate in the

19 work supplementation program.’’.

20 SEC. 104. EFFECTIVE DATE; REGULATIONS.

21 (a) EFFECTIVE DATE.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this Act shall

24 take effect on October 1, 1994.
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1 (2) STATE OPTION FOR EARLY APPLICABIL2 ITY.—If a State formally notifies the Secretary of

3 Health and Human Services of its desire to operate

4 a program pursuant to section 402(a)(29) of the So5 cial Security Act, during any period which begins

6 after the date of the enactment of this Act and ends

7 on September 30, 1994, with respect to 1 or more

8 groups of individuals selected by the State who are

9 eligible for aid under the State plan approved under

10 section 402 of the Social Security Act, and makes

11 such changes in the plan as are required in order to

12 so operate the program (except that, in lieu of the

13 definition contained in section 402(a)(29)(B)(i),

14 there is substituted a definition which describes such

15 group or groups) then—

16 (A) such section 402(a)(29) (with such ex17 ceptions) shall apply to the State during the pe18 riod; and

19 (B) section 403(o)(4)(B) of the Social Se20 curity Act shall be applied to the State for the

21 first 12 months of such period by substituting

22 ‘‘85 percent’’ for ‘‘the greater of 70 percent or

23 the Federal medical assistance percentage (as

24 defined in section 1118 in the case of a State

25 to which section 1108 applies, or as defined in
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1 section 1905(b) in the case of any other

2 State)’’.

3 (b) REGULATIONS.—Not later than 1 year after the

4 effective date of this Act, the Secretary of Health and

5 Human Services shall prescribe such regulations as may

6 be necessary to enable States to establish and operate

7 programs pursuant to section 402(a)(29) of the Social Se8 curity Act.

9 TITLE II—EXPANDED STATE

10 WAIVER AUTHORITY

11 SEC. 201. AUTHORITY TO GRANT WAIVERS TO PROVISIONS

12 OF SOCIAL WELFARE STATUTES TO BETTER

13 ENABLE PROVIDERS OF SOCIAL SERVICES TO

14 PROMOTE SELF-SUFFICIENCY.

15 (a) INTERAGENCY WAIVER REQUEST BOARD.—

16 (1) ESTABLISHMENT AND PURPOSE.—In order

17 to provide a focal point within the Federal Govern18 ment for the development and coordination of waiver

19 requests designed to improve opportunities for low20 income individuals and families, there is established

21 an Interagency Waiver Request Board (in this sub22 section referred to as the ‘‘Board’’) which shall pro23 vide advice to the Chairman of the Board (in this

24 section referred to as the ‘‘Chairman’’) in carrying

25 out this section.
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1 (2) MEMBERSHIP.—

2 (A) PERMANENT MEMBERS.—The Board

3 shall consist of 8 permanent members, as fol4 lows:

5 (i) A Chairman appointed by and

6 serving at the pleasure of the President.

7 (ii) The Secretary of Agriculture (or

8 the designee of the Secretary).

9 (iii) The Secretary of Health and

10 Human Services (or the designee of the

11 Secretary).

12 (iv) The Secretary of Housing and

13 Urban Development (or the designee of the

14 Secretary).

15 (v) The Secretary of Labor (or the

16 designee of the Secretary).

17 (vi) The Secretary of the Interior (or

18 the designee of the Secretary).

19 (vii) The Attorney General of the

20 United States (or the designee of the At21 torney General).

22 (viii) The Director of the Office of

23 Management and Budget (or the designee

24 of the Director).
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1 (B) LIMITED PURPOSE MEMBERS.—In ad2 dition, for the purpose of carrying out the duty

3 of the Board to provide advice to the Chairman

4 with respect to a particular application for

5 waivers under this section, or with respect to

6 the implementation of the reforms proposed in

7 the application, the Board shall include the

8 head of each department or agency (or the des9 ignee of the head) having responsibility for the

10 administration of a program which the applica11 tion proposes to reform.

12 (3) VACANCY.—A vacancy in the position of

13 Chairman shall be filled in the manner in which the

14 original appointment was made.

15 (4) COMPENSATION OF CHAIRMAN.—

16 (A) BASIC PAY.—

17 (i) IN GENERAL.—The Chairman shall

18 be paid at a rate equal to the rate of basic

19 pay payable for level II of the Executive

20 Schedule.

21 (ii) CONFORMING AMENDMENT.—Sec22 tion 5313 of title 5, United States Code, is

23 amended by adding at the end the follow24 ing new item:
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1 ‘‘Chairman, Interagency Waiver Request

2 Board.’’.

3 (B) TRAVEL EXPENSES.—The Chairman

4 shall receive travel expenses, including per diem

5 in lieu of subsistence, in accordance with sec6 tions 5702 and 5703 of title 5, United States

7 Code.

8 (5) APPOINTMENT AND COMPENSATION OF

9 PERSONNEL.—The Chairman may appoint and fix

10 the compensation of personnel as may be necessary

11 to assist the Board in carrying out the responsibil12 ities of the Board, in accordance with chapter 51

13 and subchapters III and VIII of chapter 53 of title

14 5, United States Code.

15 (6) PROHIBITION AGAINST ADDITIONAL COM16 PENSATION OF FEDERAL OFFICERS OR EMPLOY17 EES.—Members of the Board who are full-time offi18 cers or employees of the United States (other than

19 the Chairman) may not be provided additional pay,

20 allowances, or benefits by reason of their service on

21 the Board.

22 (7) MEETINGS.—The Board shall meet not less

23 than twice annually at the call of the Chairman.

24 (8) POWERS.—
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1 (A) ASSISTANCE OF OTHER FEDERAL EN2 TITIES.—The head of each Federal department

3 or agency who is a permanent or other member

4 of the Board shall make available to the Board

5 such assistance as the Board may require to

6 carry out the activities of the Board.

7 (B) USE OF UNITED STATES MAILS.—The

8 Board may use the United States mails in the

9 same manner and under the same conditions as

10 other departments and agencies of the United

11 States.

12 (C) ACCEPTANCE OF GIFTS, BEQUESTS,

13 AND DEVISES.—The Board may accept, use,

14 and dispose of gifts, bequests, or devises of

15 services or property, both real and personal, for

16 the purpose of aiding or facilitating the work of

17 the Board. Gifts, bequests, or devises of money

18 and proceeds from sales of other property re19 ceived as gifts, bequests, or devises shall be de20 posited in the Treasury and shall be available

21 for disbursement upon order of the Chairman.

22 (9) ANNUAL REPORTS.—The Board shall trans23 mit annually to the Congress a report containing a

24 detailed statement of the activities of the Board dur25 ing the year covered by the report.
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1 (b) APPLICATION FOR WAIVERS.—Any entity that is

2 receiving or is eligible to receive Federal funds or other

3 Federal assistance under a program referred to in sub4 section (h) may submit to the Chairman an application

5 which contains—

6 (1) a proposal to reform the conduct of the pro7 gram (and, if appropriate, any other such program)

8 by the entity;

9 (2) a written statement, from each other non10 Federal officer or entity to which the Federal funds

11 or assistance would otherwise be provided (either di12 rectly or through intervening levels of grantees or

13 other recipients) under the program or programs,

14 that such other officer or entity approves of the pro15 posal and will cooperate in the implementation of the

16 proposal by the entity;

17 (3) a list of the provisions of law or regulation

18 which prevent the entity from implementing the pro19 posal; and

20 (4) a request that the Chairman, and the offi21 cer or officers of the Federal Government respon22 sible for the administration of the program or pro23 grams proposed to be reformed, waive the applica24 tion of such provisions of law or regulation, to the
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1 extent necessary to enable the entity to implement

2 the proposal.

3 (c) ADMINISTRATIVE PROVISIONS.—

4 (1) EVALUATION AND RECOMMENDATIONS.—

5 The Chairman shall—

6 (A) evaluate the proposal contained in any

7 application submitted in accordance with sub8 section (b), and make recommendations with re9 spect to the proposal; and

10 (B) transmit the application and rec11 ommendations to the officer or officers referred

12 to in subsection (b)(4).

13 (2) INTERAGENCY COORDINATION.—The Chair14 man shall provide for the coordination of all actions

15 under this section with respect to an application

16 submitted in accordance with subsection (b) that

17 proposes the coordinated implementation of reforms

18 to 2 or more programs referred to in subsection (h).

19 (d) AGENCY REVIEW.—Within 45 days after an offi20 cer of the Federal Government receives an application

21 transmitted pursuant to subsection (c)(1)(B), the officer

22 shall review the application and notify the Chairman of

23 the opinion of the officer as to—

24 (1) whether the program, as proposed to be re25 formed, would—
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1 (A)(i) help certain individuals for whom

2 long-term assistance is necessary to meet basic

3 human welfare needs and improve their living

4 conditions in the most efficient and effective

5 way possible; and

6 (ii) help able-bodied individuals and their

7 families, on a temporary basis, meet basic

8 human welfare needs and improve their living

9 conditions in the most efficient and effective

10 way possible;

11 (B) help individuals and families acquire

12 skills necessary to—

13 (i) improve their living conditions sub14 stantially;

15 (ii) maintain and strengthen family

16 relationships; and

17 (iii) attain or retain the capability for

18 maximum self-support and independence;

19 or

20 (C) promote individual initiative and per21 sonal behavior consistent with progress toward

22 self-sufficiency and a strong family life;

23 (2) whether the program, as proposed to be re24 formed, would reasonably meet the needs of the in25 tended beneficiaries of the program; and
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1 (3) whether granting the requested waiver

2 would unnecessarily or unreasonably affect individ3 uals or families adversely.

4 (e) FINAL ACTION BY CHAIRMAN.—

5 (1) WAIVER AUTHORITY.—The Chairman may

6 approve an application submitted in accordance with

7 subsection (b) and grant the waiver or waivers pro8 posed in the application if the Chairman has deter9 mined that—

10 (A) the program or programs proposed to

11 be reformed in the application, as so reformed,

12 would meet the requirements of any subpara13 graph of subsection (d)(1) and reasonably meet

14 the needs of the intended beneficiaries of the

15 program or programs; and

16 (B) granting the requested waiver would

17 not unnecessarily or unreasonably affect indi18 viduals or families adversely.

19 (2) CONDITIONAL APPROVAL.—The Chairman

20 may condition approval of the application on the ac21 ceptance by the applicant of specified modifications

22 to the application.

23 (3) DEADLINE.—Within 120 days after the

24 Chairman receives an application submitted in ac25 cordance with subsection (b), the Chairman shall ap-
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1 prove, conditionally approve, or disapprove the appli2 cation, and notify the applicant of such action.

3 (4) LIMITATION.—This subsection shall not be

4 construed to authorize the Chairman to waive the

5 application to any entity referred to in subsection

6 (b) of a provision of law or regulation applicable to

7 a program if the waiver would result in net pay8 ments by the Federal Government to the entity

9 under the program for a fiscal year in excess of the

10 net payments which would otherwise be so made to

11 the entity.

12 (f) REVOCATION OF WAIVER.—If, after granting a

13 waiver under subsection (e)(1), the Chairman finds that

14 the applicant has failed to carry out the program in ac15 cordance with any applicable provision of law or regula16 tion, or has failed to implement the reforms proposed in

17 the application for the waiver, the Chairman may revoke

18 the waiver in whole or in part, effective at such time as

19 the Chairman deems appropriate.

20 (g) SPECIAL RULES.—For purposes of this section:

21 (1) INDIAN TRIBES DEEMED TO BE STATES.—

22 In the case of a program referred to in subsection

23 (h) under which assistance is provided with respect

24 to an Indian Tribe, the Indian tribal organization is

25 deemed to be the State.
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1 (2) BOARD OF DIRECTORS OF THE LEGAL

2 SERVICES CORPORATION DEEMED TO BE A FEDERAL

3 OFFICER.—The Board of Directors of the Legal

4 Services Corporation is deemed to be the officer of

5 the Federal Government responsible for the adminis6 tration of the program referred to in subsection

7 (h)(67).

8 (h) PROGRAMS SUBJECT TO WAIVER AUTHORITY.—

9 The programs referred to in this subsection are the follow10 ing:

11 (1) The program of medical assistance under

12 title XIX of the Social Security Act.

13 (2) The Maternal and Child Health Services

14 Block Grant Program under title V of the Social Se15 curity Act.

16 (3) The program established in section 330 of

17 the Public Health Service Act (relating to commu18 nity health centers).

19 (4) The program established in section 1001 of

20 the Public Health Service Act (relating to family

21 planning methods and services).

22 (5) The program of cash and medical assistance

23 to refugees and Cuban/Haitian entrants under sec24 tion 412(e) of the Immigration and Nationality Act

25 (8 U.S.C. 1522(e)) and through the exercise of au-
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1 thority under section 501(a) of the Refugee Edu2 cation Assistance Act of 1980 (Public Law 96–422).

3 (6) The program established in section 329 of

4 the Public Health Service Act (relating to migrant

5 health centers).

6 (7) The program of aid and services to needy

7 families with children under part A of title IV of the

8 Social Security Act.

9 (8) The child welfare services program under

10 part B of title IV of the Social Security Act.

11 (9) The supplemental security income program

12 under title XVI of the Social Security Act.

13 (10) The program of foster care and adoption

14 assistance under part E of title IV of the Social Se15 curity Act.

16 (11) The food stamp program, as defined in

17 section 3(h) of the Food Stamp Act of 1977 (7

18 U.S.C. 2012(h)).

19 (12) The school lunch program carried out

20 under the National School Lunch Act (42 U.S.C.

21 1751 et seq.).

22 (13) The special supplemental food program for

23 women, infants, and children carried out under sec24 tion 17 of the Child Nutrition Act of 1966 (42

25 U.S.C. 1786).
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1 (14) The nutrition programs carried out under

2 part C of title III of the Older Americans Act of

3 1965 (42 U.S.C. 3030e et seq.).

4 (15) The school breakfast program carried out

5 under section 4 of the Child Nutrition Act of 1966

6 (42 U.S.C. 1773).

7 (16) The child and adult care food program

8 carried out under section 17 of the National School

9 Lunch Act (42 U.S.C. 1766).

10 (17) The Emergency Food Assistance Act of

11 1983 (7 U.S.C. 612c note).

12 (18) The summer food service program for chil13 dren carried out under section 13 of the National

14 School Lunch Act (42 U.S.C. 1761).

15 (19) The commodity supplemental food pro16 gram authorized by section 4(a) of the Agriculture

17 and Consumer Protection Act of 1973 (7 U.S.C.

18 612c note).

19 (20) The special milk program carried out

20 under section 3 of the Child Nutrition Act of 1966

21 (42 U.S.C. 1772).

22 (21) The program of rental assistance on behalf

23 of low-income families provided under section 8 of

24 the United States Housing Act of 1937 (42 U.S.C.

25 1437f).
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•HR 741 IH

1 (22) The program of assistance to public hous2 ing under title I of the United States Housing Act

3 of 1937 (42 U.S.C. 1437 et seq.).

4 (23) The loan program under section 502 of the

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

6 (24) The program of interest reduction pay7 ments pursuant to contracts entered into by the Sec8 retary of Housing and Urban Development under

9 section 236 of the National Housing Act (12 U.S.C.

10 1715z–1).

11 (25) The program of loans for rental and coop12 erative housing under section 515 of the Housing

13 Act of 1949 (42 U.S.C. 1485).

14 (26) The program of rental assistance pay15 ments pursuant to contracts entered into under sec16 tion 521(a)(2)(A) of the Housing Act of 1949 (42

17 U.S.C. 1490a(a)(2)(A)).

18 (27) The program of assistance payments on

19 behalf of homeowners under section 235 of the Na20 tional Housing Act (12 U.S.C. 1715z).

21 (28) The program of rent supplement payments

22 on behalf of qualified tenants pursuant to contracts

23 entered into under section 101 of the Housing and

24 Urban Development Act of 1965 (12 U.S.C. 1701s).
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1 (29) The loan and grant programs under sec2 tion 504 of the Housing Act of 1949 (42 U.S.C.

3 1474) for repairs and improvements to rural dwell4 ings.

5 (30) The loan and assistance programs under

6 sections 514 and 516 of the Housing Act of 1949

7 (42 U.S.C. 1484, 1486) for housing for farm labor.

8 (31) The program of grants for preservation

9 and rehabilitation of housing under section 533 of

10 the Housing Act of 1949 (42 U.S.C. 1490m).

11 (32) The program of grants and loans for mu12 tual and self-help housing and technical assistance

13 under section 523 of the Housing Act of 1949 (42

14 U.S.C. 1490c).

15 (33) The program of site loans under section

16 524 of the Housing Act of 1949 (42 U.S.C. 1490d).

17 (34) The program under part B of title IV of

18 the Higher Education Act of 1965.

19 (35) The program under subpart 1 of part A of

20 title IV of the Higher Education Act of 1965.

21 (36) The programs under the Head Start Act

22 (42 U.S.C. 9831 et seq.).

23 (37) The program under part C of title IV of

24 the Higher Education Act of 1965.
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1 (38) The program under subpart 3 of part A of

2 title IV of the Higher Education Act of 1965.

3 (39) The programs under the Carl D. Perkins

4 Vocational and Applied Technology Education Act.

5 (40) The programs for migrant children under

6 sections 1201 through 1203 of the Elementary and

7 Secondary Education Act of 1965 (20 U.S.C. 2781–

8 83).

9 (41) The program under chapter 1 of subpart

10 2 of part A of title IV of the Higher Education Act

11 of 1965.

12 (42) The program under part E of title IV of

13 the Higher Education Act of 1965.

14 (43) The program under subpart 4 of part A of

15 title IV of the Higher Education Act of 1965.

16 (44) The program under title IX of the Higher

17 Education Act of 1965.

18 (45) The program under subpart 5 of part A of

19 title IV of the Higher Education Act of 1965.

20 (46) The program under chapter 1 of title I of

21 the Elementary and Secondary Education Act of

22 1965.

23 (47) The programs under the Follow Through

24 Act (42 U.S.C. 9861–9877).
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1 (48) The programs established in sections 338A

2 and 338B of the Public Health Service Act and the

3 programs established in part A of title VII of such

4 Act (relating to loans and scholarships for education

5 in the health professions).

6 (49) The program established in section

7 317(j)(1) of the Public Health Service Act (relating

8 to grants for immunizations against vaccine-prevent9 able diseases).

10 (50) The program established in section 317A

11 of the Public Health Service Act (relating to grants

12 for screening, referrals, and education regarding

13 leading poisoning in infants and children).

14 (51) The program established in part A of title

15 XIX of the Public Health Service Act (relating to

16 block grants for preventive health and health serv17 ices).

18 (52) The programs established in subparts I

19 and II of part B of title XIX of the Public Health

20 Service Act.

21 (53) The programs under part C of title IV of

22 the Elementary and Secondary Education Act of

23 1965 (20 U.S.C. 3081–3112).
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1 (54) The programs carried out under the Child

2 Development Associate Scholarship Assistance Act

3 of 1985 (42 U.S.C. 10901 et seq.).

4 (55)(A) The program of training for disadvan5 taged adults and youth under part A of title II of

6 the Job Training Partnership Act (29 U.S.C. 1601

7 et seq.), as in effect before July 1, 1993.

8 (B)(i) The program of training for disadvan9 taged adults under part A of title II of the Job

10 Training Partnership Act (29 U.S.C. 1601 et seq.),

11 as in effect on and after July 1, 1993.

12 (ii) The program of training for disadvantaged

13 youth under part C of title II of the Job Training

14 Partnership Act (29 U.S.C. 1641 et seq.), as in ef15 fect on and after July 1, 1993.

16 (56) The Job Corps program under part B of

17 title IV of the Job Training Partnership Act (29

18 U.S.C. 1692 et seq.).

19 (57) The summer youth employment and train20 ing programs under part B of title II of the Job

21 Training Partnership Act (29 U.S.C. 1630 et seq.).

22 (58) The programs carried out under the Older

23 American Community Service Employment Act (42

24 U.S.C. 3001 et seq.).
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•HR 741 IH

1 (59) The programs under title III of the Older

2 Americans Act of 1965.

3 (60) The programs carried out under part B of

4 title II of the Domestic Volunteer Service Act of

5 1973 (42 U.S.C. 5011–5012).

6 (61) The programs carried out under part C of

7 title II of the Domestic Volunteer Service Act of

8 1973 (42 U.S.C. 5013).

9 (62) The State unemployment compensation

10 programs approved under section 303 of the Social

11 Security Act and under section 3304 of the Internal

12 Revenue Code of 1986.

13 (63) The program under the Low-Income En14 ergy Assistance Act of 1981 (42 U.S.C. 8621 et

15 seq.).

16 (64) The weatherization assistance program

17 under title IV of the Energy Conservation and Pro18 duction Act (42 U.S.C. 6851).

19 (65) The program of block grants to States for

20 social services under title XX of the Social Security

21 Act.

22 (66) The programs carried out under the Com23 munity Services Block Grant Act (42 U.S.C. 9901

24 et seq.).
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1 (67) The program of legal assistance to eligible

2 clients and other programs under the Legal Services

3 Corporation Act (42 U.S.C. 2996 et seq.).

4 (68) The program for emergency food and shel5 ter grants under title III of the Stewart B. McKin6 ney Homeless Assistance Act (42 U.S.C. 11331 et

7 seq.).

8 (69) The program of social services for refugees

9 and Cuban/Haitian entrants under section 412(c) of

10 the Immigration and Nationality Act (8 U.S.C.

11 1522(c)) and through the exercise of authority

12 under section 501(a) of the Refugee Education As13 sistance Act of 1980 (Public Law 96–422).

14 (70) The programs carried out under the Child

15 Care and Development Block Grant Act of 1990 (42

16 U.S.C. 9858 et seq.).

17 (71) A State program for providing child care

18 under section 402(i) of the Social Security Act.

19 (72) The program of State legalization impact20 assistance grants (SLIAG) under section 204 of the

21 Immigration Reform and Control Act of 1986.
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•HR 741 IH

1 TITLE III—MISCELLANEOUS

2 AMENDMENTS

3 SEC. 301. AFDC RECIPIENTS REQUIRED TO UNDERGO NEC4 ESSARY SUBSTANCE ABUSE TREATMENT AS A

5 CONDITION OF RECEIVING AFDC.

6 (a) IN GENERAL.—Section 402(a) of the Social Secu7 rity Act (42 U.S.C. 602(a)) is amended by inserting after

8 paragraph (34) the following:

9 ‘‘(35) provide that—

10 ‘‘(A) as a condition of eligibility for aid,

11 each applicant or recipient who the State deter12 mines is addicted to alcohol or drugs must be

13 required to agree to participate, and must

14 maintain satisfactory participation (as deter15 mined by the State), in an appropriate addic16 tion treatment program; and

17 ‘‘(B) each applicant or recipient who fails

18 to comply with any requirement imposed pursu19 ant to subparagraph (A) shall not be eligible for

20 aid during the 2-year period that begins with

21 such failure to comply.’’.

22 (b) EFFECTIVE DATE.—

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the amendment made by subsection (a)

25 shall take effect on the date of the enactment of this
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1 Act, and apply to payments under part A of title IV

2 of the Social Security Act for calendar quarters end3 ing after such date.

4 (2) DELAY PERMITTED IF STATE LEGISLATION

5 REQUIRED.—In the case of a State plan approved

6 under section 402(a) of the Social Security Act

7 which the Secretary of Health and Human Services

8 determines requires State legislation (other than leg9 islation appropriating funds) in order for the plan to

10 meet the additional requirement imposed by the

11 amendment made by subsection (a) of this section,

12 the State plan shall not be regarded as failing to

13 comply with the requirements of such section 402(a)

14 solely on the basis of the failure of the plan to meet

15 such additional requirement before the end of the 2-

16 year period that begins with the date of the enact17 ment of this Act.

18 SEC. 302. AUTHORITY OF STATE TO MODIFY CERTAIN AFDC

19 INCOME DISREGARD RULES.

20 (a) IN GENERAL.—Section 402(a)(8)(B) of the So21 cial Security Act (42 U.S.C. 602(a)(8)(B)) is amended—

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

23 and

24 (2) by adding at the end the following:
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•HR 741 IH

1 ‘‘(iii) notwithstanding clauses (ii) and (iv)

2 of subparagraph (A) and clause (ii) of this sub3 paragraph, may disregard earned income of any

4 child or relative receiving aid to families with

5 dependent children, or of any other individual

6 (living in the same home as such relative and

7 child) whose needs as taken into account in

8 making the determination under paragraph (7),

9 in accordance with any combination of rules

10 which (as determined by the State in accord11 ance with regulations prescribed by the Sec12 retary) is at least as favorable to the recipient

13 of such aid as the combination of rules con14 tained in such clauses, but not more favorable

15 to the recipient than a rule providing for the

16 disregard of the first $200 of the total of such

earned income for such month plus 1 17 ⁄3 of the

18 remainder thereof; and’’.

19 (b) EFFECTIVE DATE.—The amendment made by

20 subsection (a) shall apply to benefits payable for calendar

21 months beginning after the date of the enactment of this

22 Act.

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