I

103D CONGRESS

1ST SESSION H. R. 3500

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 increase the rate

of paternity establishment for children receiving welfare benefits, to provide States with greater flexibility in providing welfare, to authorize

States to conduct demonstration projects to test the effectiveness of

policies designed to help people leave welfare and increase their financial

security, to strengthen child support enforcement, and to eliminate welfare payments for most groups of noncitizens.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 10, 1993

Mr. MICHEL (for himself, Mr. GINGRICH, Mr. SANTORUM, Mr. DELAY, Mr.

SHAW, Mrs. JOHNSON of Connecticut, Mr. GRANDY, Mr. CAMP, Mr. CASTLE, Mr. HERGER, Mr. HUTCHINSON, Mr. INGLIS of South Carolina, Mr.

KNOLLENBERG, Mr. KOLBE, Mrs. ROUKEMA, Mr. ALLARD, Mr. ARCHER,

Mr. ARMEY, Mr. BACHUS of Alabama, Mr. BAKER of California, Mr.

BAKER of Louisiana, Mr. BALLENGER, Mr. BARRETT of Nebraska, Mr.

BARTLETT of Maryland, Mr. BARTON of Texas, Mr. BATEMAN, Mrs.

BENTLEY, Mr. BEREUTER, Mr. BILIRAKIS, Mr. BLILEY, Mr. BLUTE, Mr.

BOEHNER, Mr. BONILLA, Mr. BUNNING, Mr. BURTON of Indiana, Mr.

BUYER, Mr. CALLAHAN, Mr. CALVERT, Mr. CANADY, Mr. CLINGER, Mr.

COBLE, Mr. COLLINS of Georgia, Mr. COX, Mr. CRANE, Mr. CRAPO, Mr.

CUNNINGHAM, Mr. DICKEY, Mr. DOOLITTLE, Mr. DORNAN, Mr. DREIER,

Mr. DUNCAN, Ms. DUNN, Mr. EMERSON, Mr. EVERETT, Mr. EWING, Mr.

FAWELL, Mr. FIELDS of Texas, Mrs. FOWLER, Mr. FRANKS of New Jersey, Mr. FRANKS of Connecticut, Mr. GALLEGLY, Mr. GALLO, Mr.

GEKAS, Mr. GILCHREST, Mr. GILMAN, Mr. GOODLATTE, Mr. GOODLING,

Mr. GOSS, Mr. GRAMS, Mr. GREENWOOD, Mr. GUNDERSON, Mr. HANCOCK, Mr. HANSEN, Mr. HASTERT, Mr. HEFLEY, Mr. HOBSON, Mr.

HOEKSTRA, Mr. HOKE, Mr. HORN, Mr. HOUGHTON, Mr. HUFFINGTON,

Mr. HUNTER, Mr. HYDE, Mr. INHOFE, Mr. ISTOOK, Mr. SAM JOHNSON

of Texas, Mr. KASICH, Mr. KIM, Mr. KING, Mr. KINGSTON, Mr. KLUG,

Mr. KYL, Mr. LAZIO, Mr. LEACH, Mr. LEVY, Mr. LEWIS of California,

Mr. LEWIS of Florida, Mr. LIGHTFOOT, Mr. LINDER, Mr. LIVINGSTON,

Mr. MCCANDLESS, Mr. MCCOLLUM, Mr. MCCRERY, Mr. MCDADE, Mr.

MCHUGH, Mr. MCINNIS, Mr. MCKEON, Mr. MCMILLAN, Mr. MACHTLEY,

Mr. MANZULLO, Mr. MICA, Mr. MILLER of Florida, Mr. MOORHEAD, Mr.
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NUSSLE, Mr. OXLEY, Mr. PACKARD, Mr. PAXON, Mr. PETRI, Mr.

POMBO, Mr. PORTER, Mr. PORTMAN, Ms. PRYCE of Ohio, Mr. QUILLEN,

Mr. QUINN, Mr. RAMSTAD, Mr. RAVENEL, Mr. REGULA, Mr. RIDGE, Mr.

ROBERTS, Mr. ROGERS, Mr. ROHRABACHER, Mr. ROTH, Mr. ROYCE, Mr.

SAXTON, Mr. SCHAEFER, Mr. SENSENBRENNER, Mr. SHUSTER, Mr.

SKEEN, Mr. SMITH of Texas, Mr. SMITH of Michigan, Mr. SMITH of Oregon, Mr. SOLOMON, Mr. SPENCE, Mr. STEARNS, Mr. STUMP, Mr. SUNDQUIST, Mr. TALENT, Mr. TAYLOR of North Carolina, Mr. THOMAS of Wyoming, Mr. THOMAS of California, Mr. TORKILDSEN, Mr. UPTON, Mr.

WALKER, Mr. WALSH, Mr. WELDON, Mr. WOLF, Mr. YOUNG of Florida,

Mr. YOUNG of Alaska, Mr. ZELIFF, and Mr. ZIMMER) introduced the following bill; which was referred jointly to the Committees on Ways and

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

and Rules

AUGUST 8, 1994

Additional sponsors: Mr. MYERS of Indiana and Mr. FISH

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 increase the rate of paternity

establishment for children receiving welfare benefits, to

provide States with greater flexibility in providing welfare, to authorize States to conduct demonstration

projects to test the effectiveness of policies designed to

help people leave welfare and increase their financial

security, to strengthen child support enforcement, and

to eliminate welfare payments for most groups of

noncitizens.

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—PATERNITY ESTABLISHMENT

Sec. 201. Reduction or denial of AFDC for children whose paternity is not established.

Sec. 202. Teens receiving AFDC required to live at home.

Sec. 203. Earlier paternity establishment efforts by States.

Sec. 204. Increase in paternity establishment percentage.

Sec. 205. Effective date.

TITLE III—EXPANSION OF STATUTORY FLEXIBILITY OF STATES

Sec. 301. Option to convert AFDC into a block grant program.

Sec. 302. Option to deny AFDC if either parent is a minor.

Sec. 303. Option to treat interstate immigrants under rules of former State.

Sec. 304. Option to impose penalty for failure to attend school.

Sec. 305. Option to deny AFDC for additional children.

Sec. 306. Option to modify certain AFDC income disregard rules.

Sec. 307. Option to provide married couple transition benefit.

Sec. 308. Option to disregard income and resources designated for education,

training, and employability, or related to self-employment.

Sec. 309. Option to require attendance at parenting and money managment

classes, and prior approval of any action that would result in

a change of school for a dependent child.

Sec. 310. Effective date.

TITLE IV—EXPANSION OF STATE AND LOCAL FLEXIBILITY

Sec. 401. Interagency Waiver Request Board.

Sec. 402. Application to implement assistance plans.

Sec. 403. Review and approval of applications; waivers.

Sec. 404. Implementation of assistance plans; evaluations.

Sec. 405. Public-Private Partnership Committees.

Sec. 406. Definitions.

Sec. 407. Reports.
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Sec. 408. Sunset.

TITLE V—CHILD SUPPORT ENFORCEMENT

Sec. 501. National reporting of information relating to child support with respect to certain employees.

Sec. 502. State information systems.

Sec. 503. National information systems.

Sec. 504. Income withholding.

Sec. 505. Uniform terms in orders.

Sec. 506. Work requirement for noncustodial parents with child support arrearages.

TITLE VI—WELFARE RESTRICTIONS FOR ALIENS

Sec. 601. Ineligibility of aliens for public welfare assistance.

Sec. 602. State AFDC agencies required to provide information on illegal aliens

to the Immigration and Naturalization Service.

TITLE VII—CONTROLLING WELFARE COSTS

Sec. 701. Caps on certain means-tested programs.

Sec. 702. Sequestration of Federal spending to enforce spending caps on

means-tested programs.

TITLE VIII—CONSOLIDATED BLOCK GRANT TO STATES FOR

FOOD ASSISTANCE

Sec. 801. Food assistance block grant program.

Sec. 802. Availability of Federal coupon program to States.

Sec. 803. Authority to sell Federal surplus commodities.

Sec. 804. Definitions.

Sec. 805. Repealers and amendments.

Sec. 806. Effective date; application of repealers and amendments.

TITLE IX—MISCELLANEOUS

Sec. 901. AFDC recipients required to undergo necessary substance abuse

treatment as a condition of receiving AFDC.

Sec. 902. SSI benefits for drug and alcohol addicts.

Sec. 903. Evaluation of education and training programs.

Sec. 904. Job search required while AFDC application is pending.

Sec. 905. Fraud and administrative efficiency.

Sec. 906. Public housing rent reform.

Sec. 907. Required immunizations for children.

1 TITLE I—AFDC TRANSITION AND

2 WORK PROGRAM

3 SEC. 101. AFDC TRANSITION AND WORK PROGRAM.

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

5 Act (42 U.S.C. 681(a)) is amended by striking all that
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1 follows ‘‘and’’ and inserting ‘‘work experience needed to

2 prepare them for a life without welfare.’’.

3 (b) ESTABLISHMENT AND OPERATION OF PRO4 GRAM.—

5 (1) TRANSITION AND WORK COMPONENTS.—

6 Section 482 of such Act (42 U.S.C. 682) is amended

7 by adding at the end the following:

8 ‘‘(j) The program under this part must include—

9 ‘‘(1) a transition component that—

10 ‘‘(A) must include the job search program

11 established by the State under subsection (g);

12 and

13 ‘‘(B) may include any other service, activ14 ity, or program of the State that is referred to

15 in subsection (d)(1); and

16 ‘‘(2) a work component that may include—

17 ‘‘(A) a work supplementation program op18 erated by the State under subsection (e);

19 ‘‘(B) a community work experience pro20 gram established by the State under subsection

21 (f); or

22 ‘‘(C) any other work program of the State

23 that is approved by the Secretary.’’.
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1 (2) PARTICIPATION REQUIREMENTS.—Section

2 402(a)(19) of such Act (42 U.S.C. 602(a)(19)) is

3 amended by adding at the end the following:

4 ‘‘(I)(i) as used in this subparagraph, the

5 term ‘qualified individual’ means—

6 ‘‘(I) all individuals eligible for aid

7 under the plan who applied for such aid on

8 or after October 1, 1994, and are not de9 scribed in subparagraph (C); and

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

11 all individuals eligible for aid under the

12 plan who are not described in subpara13 graph (C);

14 ‘‘(ii)(I) each qualified individual must par15 ticipate in the transition component of the pro16 gram of the State under part F, except that—

17 ‘‘(aa) a qualified individual may not

18 be required (but may be allowed) to par19 ticipate in the transition component if, on

20 the basis of demographic criteria, the State

21 finds that it is unlikely that the individual

22 will be a recipient of aid under the plan

23 during a significant length of time;

24 ‘‘(bb) a qualified individual may not

25 participate in the transition component if
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1 the individual has elected to participate in

2 the work component; and

3 ‘‘(cc) a qualified individual may not

4 participate in the transition component

5 after the first 24 months (or, at the option

6 of the State with respect to some or all

7 qualified individuals based on their desire

8 to work or on their readiness for employ9 ment, any period of lesser duration) for

10 which the individual is a qualified individ11 ual; and

12 ‘‘(dd) the State may, at its option, ex13 empt a qualified individual, during 12 of

14 the first 24 months for which an individual

15 is a qualified individual, from any require16 ment to participate in the transition com17 ponent if the individual is described in

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

19 with paragraph (35)(A);

20 ‘‘(II)(aa) each qualified individual partici21 pating in the transition component must par22 ticipate in activities under such component for

23 an average of not fewer than 10 hours per week

24 during the first 24 months of such participa25 tion;
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1 ‘‘(bb) the State, in consultation with the

2 Secretary, must establish guidelines by which

3 determinations under item (aa) will be made,

4 and which, in the case of educational activities,

5 must provide that an individual who is enrolled

6 full-time in a program of study at an edu7 cational institution (including a vocational or

8 technical training school), as determined by the

9 institution, and is making satisfactory progress

10 in the program of study, as determined by the

11 institution, is to be regarded as participating in

12 the transition component, in accordance with

13 such rules as the Secretary may prescribe (in14 cluding rules governing how time spent in such

15 a program of study is to be converted into

16 hours of participation in the transition compo17 nent);

18 ‘‘(iii)(I) if a qualified individual (other

19 than a qualified individual who is a member of

20 a family receiving aid under the plan by reason

21 of section 407) is not participating in the tran22 sition component of the program, the State

23 must require the qualified individual to partici24 pate in the work component of the program for

25 35 hours per week (or 30 hours per week, if the
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1 State requires the participant to engage in a

2 job search program established by the State

3 under section 482(g));

4 ‘‘(II) in the case of a family which has re5 ceived aid under the plan by reason of section

6 407—

7 ‘‘(aa) the State must require at least

8 1 parent in the family to participate in the

9 work component by engaging in work ac10 tivities for 32 hours per week and by en11 gaging in job search activities for 8 hours

12 per week;

13 ‘‘(bb) the State must combine the aid

14 payable to the family under the plan, and

15 any food stamp benefits payable under the

16 Food Stamp Act of 1977 to a household

17 that includes a member of the family, into

18 a single cash payment to the family, which

19 shall be reduced pro rata with respect to

20 any period for which the family has not

21 complied with item (aa); and

22 ‘‘(III) any qualified individual participating

23 in the work component, may, with the approval

24 of the State, discontinue participation in the

25 work component and begin or resume participa-
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1 tion in the transition component, subject to

2 clause (ii)(I)(cc);

3 ‘‘(iv) each qualified individual must cooper4 ate with the State in developing a plan which—

5 ‘‘(I) describes the respective respon6 sibilities of the State and of the individual

7 under the program with the goal of prepar8 ing the individual for work; and

9 ‘‘(II) includes a written statement in10 forming the individual that, upon comple11 tion of the transition component of the

12 program, aid under the State plan under

13 this part will be discontinued unless the in14 dividual finds gainful employment or is

15 participating in the work component of the

16 program;

17 ‘‘(v) if the State determines that a quali18 fied individual has failed to comply with any re19 quirement imposed under this subparagraph—

20 ‘‘(I) in the case of the 1st such fail21 ure, the State shall reduce the amount of

22 aid otherwise payable under this part to

23 the family of the individual by an amount

24 equal to 25 percent of the sum of such

25 otherwise payable amount and any food
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1 stamp benefits payable under the Food

2 Stamp Act of 1977 to a household that in3 cludes a member of the family, and shall

4 apply such reduction until the failure to

5 comply ceases;

6 ‘‘(II) in the case of the 2nd such fail7 ure or a 1st such failure that continues for

8 more than 1 calendar month, the State

9 shall reduce the amount of aid otherwise

10 payable under this part to the family of

11 the individual by an amount equal to 25

12 percent of the sum of such otherwise pay13 able amount and any food stamp benefits

14 payable under the Food Stamp Act of

15 1977 to a household that includes a mem16 ber of the family, and shall apply such re17 duction until the failure to comply ceases;

18 ‘‘(III) in the case of the 3rd such fail19 ure, the family of the individual shall not

20 be eligible for aid under the State plan

21 under this part, notwithstanding any other

22 provision of this part; and

23 ‘‘(IV) any 1st such failure that contin24 ues for more than 1 calendar month shall

25 be considered the 2nd such failure, and
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1 any 2nd such failure that continues for

2 more than 3 calendar months shall be con3 sidered the 3rd such failure;

4 ‘‘(vi) at the option of the State, the State

5 may impose a rule under which the family of an

6 individual shall not be eligible for aid under the

7 State plan under this part, notwithstanding any

8 other provision of this part, after the individual

9 has been required to participate in the work

10 component of the program for a period (deter11 mined by the State) of not less than 3 years;

12 and

13 ‘‘(vii) if a family becomes ineligible for aid

14 under the State plan under this part by reason

15 of clause (v)(II) or (vi), the family shall, for

16 purposes of medical assistance under the State

17 plan under title XIX, be deemed to be a recipi18 ent of aid under the State plan under this part

19 for so long as the family is otherwise eligible for

20 aid under the State plan under this part.’’.

21 (3) PERSONS EXEMPTED FROM PARTICIPA22 TION.—Section 402(a)(19)(C) of such Act (42

23 U.S.C. 602(a)(19)(C)) is amended by striking all

24 that follows ‘‘—’’ and inserting the following:
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1 ‘‘(C) that an individual may not be re2 quired to participate in the program—

3 ‘‘(i) if the individual is incapacitated;

4 ‘‘(ii) if the individual works 30 or

5 more hours per week;

6 ‘‘(iii) if the individual attends, full7 time, an elementary, secondary, or voca8 tional (or technical) school;

9 ‘‘(iv) if the individual is the parent of

10 a child who was returned to the home of

11 the individual during the preceding 2

12 months after having been removed from

13 the home;

14 ‘‘(v) if the individual is providing full15 time care for a disabled dependent of the

16 individual;

17 ‘‘(vi) at the option of the State, if the

18 individual is making progress in a sub19 stance abuse treatment program, unless

20 this clause has been applied to the individ21 ual for 12 months;

22 ‘‘(vii) during such 6-month period as

23 the individual may select, in which the in24 dividual gives birth to the first child born
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1 to the individual after becoming eligible for

2 aid under this part; or

3 ‘‘(viii) during such 4-month period as

4 the individual may select, in which the in5 dividual gives birth to the second or subse6 quent child born to the individual after be7 coming eligible for aid under this part;’’.

8 (4) EXTENSION TO ALL STATES OF OPTION TO

9 LIMIT AFDC–UP.—Section 407(b)(2)(B) of such Act

10 (42 U.S.C. 607(b)(2)(B)) is amended by striking

11 clause (iii).

12 (5) INCREASE IN REQUIRED JOBS PARTICIPA13 TION RATES.—Section 403(l)(3) of such Act (42

14 U.S.C. 603(l)(3)) is amended—

15 (A) in subparagraph (A)—

16 (i) by striking all that follows ‘‘—’’

17 and inserting the following:

18 ‘‘(i) with respect to all individuals eligible for

19 aid under the State plan who applied for such aid

20 before October 1, 1994, and are not described in

21 section 402(a)(19)(C)—

22 ‘‘(I) 7 percent if the preceding fiscal year

23 is 1990;

24 ‘‘(II) 7 percent if such year is 1991;

25 ‘‘(III) 11 percent if such year is 1992;
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1 ‘‘(IV) 11 percent if such year is 1993;

2 ‘‘(V) 15 percent if such year is 1994;

3 ‘‘(VI) 20 percent if such year is 1995;

4 ‘‘(VII) 20 percent if such year is 1996;

5 ‘‘(VIII) 20 percent if such year is 1997;

6 and

7 ‘‘(IX) 20 percent if such year is 1998;

8 ‘‘(ii) with respect to all individuals eligible for

9 aid under the State plan who applied for such aid

10 on or after October 1, 1994, and are not described

11 in section 402(a)(19)(C)—

12 ‘‘(I) 30 percent if such year is 1996;

13 ‘‘(II) 40 percent if such year is 1997; and

14 ‘‘(III) 50 percent if such year is 1998; and

15 ‘‘(iii) with respect to all individuals eligible for

16 aid under the State plan who are not described in

17 section 402(a)(19)(C)—

18 ‘‘(I) 60 percent if such year is 1999;

19 ‘‘(II) 70 percent if such year is 2000;

20 ‘‘(III) 80 percent if such year is 2001; and

21 ‘‘(IV) 90 percent if such year is 2002.’’;

22 and

23 (B) in subparagraph (B)(ii)(IV), by strik24 ing ‘‘and 1995’’ and inserting ‘‘through 2002’’.
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1 (6) INCREASE IN REQUIRED WORK PROGRAM

2 PARTICIPATION RATES OF UNEMPLOYED PAR3 ENTS.—Section 403(l)(4)(B) of such Act (42 U.S.C.

4 603(l)(4)(B)) is amended—

5 (A) in clause (iii), by striking ‘‘and’’;

6 (B) in clause (iv), by striking ‘‘each of the

7 fiscal years 1997 and 1998.’’ and inserting ‘‘fis8 cal year 1997; and’’; and

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

10 ‘‘(v) 90 percent in the case of the average of

11 each month in fiscal year 1998.’’.

12 (c) PAYMENTS TO STATES.—Section 403 of such Act

13 (42 U.S.C. 603) is amended by adding at the end the fol14 lowing:

15 ‘‘(o)(1) Each State which has been paid under sub16 section (l) of this section for any fiscal year an amount

17 equal to the limitation determined under subsection (k)(2)

18 of this section for the fiscal year shall be entitled to pay19 ments under paragraph (4) of this subsection for the fiscal

20 year in an amount equal to the lesser of—

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

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

23 to carry out the program of the State under part F

24 (subject to limitations prescribed by or pursuant to

25 such part or such paragraph (4) on expenditures
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1 that may be included for purposes of determining

2 payment under such paragraph (4)); or

3 ‘‘(B) the limitation determined under paragraph

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

5 the fiscal year.

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

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

8 that bears the same ratio to the amount specified in para9 graph (3) of this subsection for the fiscal year as the aver10 age monthly number of adult recipients (as defined in sub11 section (k)(4)) in the State in the preceding fiscal year

12 bears to the average monthly number of such recipients

13 in all the States for such preceding year.

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

15 ‘‘(A) $300,000,000 for fiscal year 1996;

16 ‘‘(B) $1,000,000,000 for fiscal year 1997; and

17 ‘‘(C) $1,900,000,000 for fiscal year 1998.

18 ‘‘(4) Each State which has been paid under sub19 section (l) of this section for a fiscal year an amount equal

20 to the limitation determined under subsection (k)(2) of

21 this section for the fiscal year shall, in addition to any

22 payment under subsection (a) or (l) of this section, be en23 titled to payment from the Secretary of an amount equal

24 to—
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1 ‘‘(A) 50 percent of the expenditures of the

2 State for administrative costs incurred in operating

3 the program under part F during the fiscal year

4 (other than personnel costs for staff employed in the

5 operation of the program) with respect to which pay6 ment has not been made under subsection (l); and

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

8 medical assistance percentage (as defined in section

9 1118 in the case of a State to which section 1108

10 applies, or as defined in section 1905(b) in the case

11 of any other State) of the other expenditures of the

12 State incurred in operating the program during the

13 fiscal year with respect to which payment has not

14 been made under subsection (l).

15 ‘‘(5)(A) Notwithstanding paragraph (4) of this sub16 section, the Secretary shall pay to a State an amount

17 equal to 50 percent of the expenditures of the State in18 curred in operating the program under part F during a

19 fiscal year and with respect to which payment has not

20 been made under subsection (l) if the State’s participation

21 rate (determined under subparagraph (B) of this para22 graph) for the immediately preceding fiscal year is less

23 than—

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

25 1994;
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1 ‘‘(ii) 20 percent if such year is 1995;

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

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

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

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

6 ‘‘(vii) 70 percent if such year is 2000;

7 ‘‘(viii) 80 percent if such year is 2001; and

8 ‘‘(ix) 90 percent if such year is 2002.

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

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

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

12 in the State’s program under part F in the year; di13 vided by

14 ‘‘(II) the number of individuals required to par15 ticipate in the program in the year (including indi16 viduals with respect to whom the State has exercised

17 its option to require their participation).

18 ‘‘(ii) For purposes of this subparagraph, an individ19 ual shall not be considered to have satisfactorily partici20 pated in the program under part F solely by reason of

21 the individual being registered to participate in the pro22 gram.

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

24 shall be considered to have participated in the program

25 under part F if the individual has participated in accord-
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1 ance with such requirements, consistent with regulations

2 of the Secretary, as the State shall establish.

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

4 failed to achieve the participation rate for any fiscal year

5 specified in subparagraph (A) of this paragraph, then,

6 subject to clause (ii), the Secretary may waive, in whole

7 or in part, the reduction in the payment rate otherwise

8 required by such subparagraph (A) if the Secretary finds

9 that the State—

10 ‘‘(I) is in conformity with section 402(a)(19)

11 and part F;

12 ‘‘(II) has made a good faith effort to achieve

13 the participation rate; and

14 ‘‘(III) has submitted a proposal which is likely

15 to achieve the applicable participation rates for the

16 current fiscal year and any succeeding fiscal year so

17 specified.

18 ‘‘(ii) The Secretary may not grant a waiver to any

19 State under clause (i) for more than 12 months (whether

20 or not consecutive) in any 48-month period.’’.

21 (d) CONFORMING AMENDMENT.—Section

22 403(l)(3)(D) of such Act (42 U.S.C. 603(l)(3)(D)) is

23 amended—

24 (1) by inserting ‘‘(i)’’ after (D)’’;
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1 (2) by inserting ‘‘who is eligible for aid under

2 the State plan, who applied for such aid on or after

3 October 1, 1994, and who is not described in section

4 402(a)(19)(C)’’ after ‘‘an individual’’; and

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

6 ‘‘(ii) For purposes of this paragraph, an individual

7 who is eligible for aid under the State plan, who applied

8 for such aid before October 1, 1994, and is not described

9 in section 402(a)(19)(C) shall not be determined to have

10 participated in the program under part F for a week, if

11 such individual has participated in such program for less

12 than 10 hours during the week.’’.

13 (e) SENSE OF THE CONGRESS.—Each State that op14 erates a program under section 402(a)(19), and part F

15 of title IV, of the Social Security Act is encouraged to

16 begin with families that include older preschool or school17 age children.

18 SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM

19 AMENDMENTS.

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

21 U.S.C. 682(f)(1)(B)) is amended—

22 (1) in clause (i)—

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

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

25 State)’’ and inserting ‘‘in the transition compo-
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1 nent of the program under this part who is re2 quired to participate in the program established

3 under this subsection’’; and

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

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

6 program under this part who is required to participate in

7 the program established under this subsection must be re8 quired to work for exactly 35 hours per week (or 30 hours

9 per week, if the State requires the participant to engage

10 in a job search program established by the State under

11 subsection (g)).’’; and

12 (2) in clause (ii), by inserting ‘‘who is a partici13 pant in the transition component of the program

14 under this part’’ after ‘‘an individual’’.

15 SEC. 103. WORK SUPPLEMENTATION PROGRAM AMEND16 MENTS.

17 (a) AUTHORITY OF STATES TO ASSIGN PARTICI18 PANTS TO UNFILLED JOBS.—Section 484(c) of the Social

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

20 the last sentence.

21 (b) AUTHORITY OF STATES TO USE SUMS THAT

22 WOULD OTHERWISE BE EXPENDED FOR FOOD STAMP

23 BENEFITS TO PROVIDE SUBSIDIZED JOBS FOR PARTICI24 PANTS.—
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1 (1) IN GENERAL.—Section 482(e)(1) of such

2 Act (42 U.S.C. 682(e)(1)) is amended—

3 (A) by inserting ‘‘, and the sums that

4 would otherwise be used to provide participants

5 in the program under this subsection with food

6 stamp benefits under the Food Stamp Act of

7 1977,’’ before ‘‘and use’’; and

8 (B) by inserting ‘‘and the food stamp ben9 efits that would otherwise be so provided to

10 them’’ before the period.

11 (2) SUBSIDIES PROVIDED TO EMPLOYERS AND

12 INCLUDED IN WAGES OF PARTICIPANTS; MINIMUM

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

14 such Act (42 U.S.C. 682(e)(3)) is amended by add15 ing at the end the following:

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

17 program under this subsection shall enter into an agree18 ment with the employer who is to provide an eligible indi19 vidual with a supplemented job under the program, under

20 which—

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

22 an amount specified in the agreement as the sub23 sidized portion of the wages of the eligible individ24 ual; and
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1 ‘‘(ii) the employer is required to pay the eligible

2 individual wages which, when added to an amount

3 that will be payable as aid to families with depend4 ent children to the individual if the individual is paid

5 such wages, are not less than 100 percent of the

6 sum of—

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

8 payable as aid to families with dependent chil9 dren to the eligible individual if the State did

10 not have a work supplementation program

11 under this subsection in effect; and

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

13 for participants in the program through the res14 ervation of sums that would otherwise be used

15 to provide such participants with food stamp

16 benefits under the Food Stamp Act of 1977,

17 the amount paid to the State by the Secretary

18 of Agriculture that represents the cash value of

19 the food stamp benefits for which the household

20 of the eligible individual is a member is eligible

21 under such Act.

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

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

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

25 payments to individuals and employers under the State’s
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1 work supplementation program under this section, the

2 State may claim as such expenditures the maximum

3 amount payable to the State under paragraph (4) of this

4 subsection.

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

6 use for any purpose the sums reserved under paragraph

7 (1) which are not used to subsidize jobs under this sub8 section attributable to savings achieved by operation of

9 subparagraph (E).’’.

10 (3) CONFORMING AMENDMENT.—Section

11 482(e)(3)(A) of such Act (42 U.S.C. 682(e)(3)(A))

12 is amended by striking the 2nd sentence.

13 (4) EMPLOYMENT CASHOUT OF FOOD STAMP

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

15 1977 (7 U.S.C. 2025) is amended by adding at the

16 end the following:

17 ‘‘(l) If a State agency of a State that makes the elec18 tion described in section 482(e)(3)(E)(ii)(II) of the Social

19 Security Act informs the Secretary that an individual who

20 is participating in the work supplementation program car21 ried out under section 482(e) of such Act is a member

22 of a household that participates in the food stamp pro23 gram and all the members of the household receive bene24 fits under a State plan approved under part A of title IV

25 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 title 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 under section 402(a)(19) and part F of

5 title IV of the Social Security Act (as amended by

6 this title), during any period which begins after the

7 date of the enactment of this Act and ends on Sep8 tember 30, 1994, with respect to 1 or more groups

9 of individuals selected by the State who are eligible

10 for aid under the State plan approved under section

11 402 of the Social Security Act, and makes such

12 changes in the plan as are required in order to so

13 operate the program (except that, in lieu of the defi14 nition contained in section 402(a)(19)(I)(i) of the

15 Social Security Act, there is substituted a definition

16 which describes such group or groups) then—

17 (A) section 402(a)(19)(I) of the Social Se18 curity Act (with such substituted definition)

19 shall apply to the State during the period; and

20 (B) section 403(o)(4)(B) of the Social Se21 curity Act shall be applied to the State for the

22 first 12 months of such period by substituting

23 ‘‘85 percent’’ for ‘‘the greater of 70 percent or

24 the Federal medical assistance percentage (as

25 defined in section 1118 in the case of a State
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1 to which section 1108 applies, or as defined in

2 section 1905(b) in the case of any other

3 State)’’.

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

5 date of the enactment of this Act, the Secretary of Health

6 and Human Services shall prescribe such regulations as

7 may be necessary to enable States to establish and operate

8 programs pursuant to the amendments made by this title.

9 TITLE II—PATERNTIY

10 ESTABLISHMENT

11 SEC. 201. REDUCTION OR DENIAL OF AFDC FOR CHILDREN

12 WHOSE PATERNITY IS NOT ESTABLISHED.

13 (a) FAMILIES APPLYING FOR AFDC.—

14 (1) IN GENERAL.—Section 402(a) of the Social

15 Security Act (42 U.S.C. 602(a)) is amended—

16 (A) by striking ‘‘and’’ at the end of para17 graph (44);

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

19 paragraph (45) and inserting ‘‘; and’’; and

20 (C) by inserting after paragraph (45) the

21 following:

22 ‘‘(46) unless the State has enacted a law ex23 empting itself from the application of this para24 graph, provide that—
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1 ‘‘(A) except as provided in subparagraph

2 (B), aid under the State plan shall not be pay3 able to a family applying for such aid with re4 spect to a dependent child whose paternity has

5 not been established, unless—

6 ‘‘(i) the child was conceived as a re7 sult of rape or incest; or

8 ‘‘(ii) the State determines that efforts

9 to establish such paternity would result in

10 physical danger to the relative claiming

11 such aid;

12 ‘‘(B) if the paternity of a dependent child

13 has not been established, the relative claiming

14 such aid alleges that any of not more than 3

15 named individuals may be the father of the

16 child and provides the address of each of the

17 named individuals or of the immediate relatives

18 of each of the named individuals, and the State

19 has not disproved the allegation, then—

20 ‘‘(i) aid under the State plan shall be

21 payable to the family in the amount pay22 able family whose size is determined with23 out regard to the dependent child; and
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1 ‘‘(ii) the entire family shall be eligible

2 for medical assistance under the State plan

3 approved under title XIX; and

4 ‘‘(C) the relative claiming such aid shall

5 have the burden of proving any allegation of pa6 ternity of a dependent child by an individual

7 who is deceased, in accordance with procedures

8 established by the State in consultation with

9 the Secretary.’’.

10 (2) EFFECTIVE DATE.—The amendments made

11 by paragraph (1) shall take effect on October 1,

12 1993, and shall apply to payments under part A of

13 title IV of the Social Security Act for calendar quar14 ters beginning on or after such date.

15 (b) ALL FAMILIES.—

16 (1) IN GENERAL.—Section 402(a)(46) of such

17 Act (42 U.S.C. 602(a)(46)), as added by subsection

18 (a) of this section, is amended by striking ‘‘applying

19 for such aid’’.

20 (2) EFFECTIVE DATE.—The amendment made

21 by paragraph (1) shall take effect on October 1,

22 1994, and shall apply to payments under part A of

23 title IV of the Social Security Act for calendar quar24 ters beginning on or after such date.
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1 SEC. 202. TEENS RECEIVING AFDC REQUIRED TO LIVE AT

2 HOME.

3 Section 402(a)(43) of the Social Security Act (42

4 U.S.C. 602(a)(43)) is amended—

5 (1) by striking ‘‘at the option of the State,’’;

6 and

7 (2) by striking ‘‘18’’ and inserting ‘‘19’’.

8 SEC. 203. EARLIER PATERNITY ESTABLISHMENT EFFORTS

9 BY STATES.

10 (a) IN GENERAL.—Section 466(a)(5)(C) of the Social

11 Security Act (42 U.S.C. 666(a)(5)(C)) is amended by re12 designating clauses (i) and (ii) as clauses (ii) and (iii) and

13 by inserting before clause (ii) (as so redesignated) the fol14 lowing: ‘‘(i) a requirement that, as soon as an officer or

15 employee of the State becomes aware, in the performance

16 of official duties, of a pregnant, unmarried individual, the

17 officer or employee (I) inform the individual, orally and

18 in writing, that she will be ineligible for aid under the

19 State plan under part A unless she informs the State of

20 the identity of the prospective father and, after the child

21 is born, cooperates in establishing the paternity of the

22 child, and (II) encourage the individual to urge the pro23 spective father to acknowledge paternity,’’.

24 (b) CONFORMING AMENDMENTS.—Section 466(a)(5)

25 of such Act (42 U.S.C. 666(a)(5)) is amended in each of
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1 subparagraphs (D) and (E) by striking ‘‘(C)(ii)’’ and in2 serting ‘‘(C)(iii)’’.

3 (c) SENSE OF THE CONGRESS.—The Congress en4 courages the States to develop procedures in public hos5 pitals and clinics to facilitate the acknowledgement of

6 paternity.

7 SEC. 204. INCREASE IN PATERNITY ESTABLISHMENT PER8 CENTAGE.

9 Section 452(g)(1) of the Social Security Act (42

10 U.S.C. 652(g)(1)) is amended by striking all that follows

11 ‘‘—’’ and inserting the following:

12 ‘‘(A) 90 percent;

13 ‘‘(B) for a State with a paternity establishment

14 percentage of not less than 50 percent but less than

15 90 percent for such fiscal year, the paternity estab16 lishment percentage of the State for the immediately

17 preceding fiscal year plus 6 percentage points; or

18 ‘‘(C) for a State with a paternity establishment

19 percentage of less than 50 percent for such fiscal

20 year, the paternity establishment percentage of the

21 State for the immediately preceding fiscal year plus

22 10 percentage points.’’.

23 SEC. 205. EFFECTIVE DATE.

24 Except as provided in section 201, the amendments

25 made by this title shall take effect on October 1, 1993,
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1 and shall apply to payments under part A of title IV of

2 the Social Security Act for calendar quarters ending be3 ginning on or after such date.

4 TITLE III—EXPANSION OF STAT5 UTORY FLEXIBILITY OF

6 STATES

7 SEC. 301. OPTION TO CONVERT AFDC INTO A BLOCK GRANT

8 PROGRAM.

9 Section 403 of the Social Security Act (42 U.S.C.

10 603) is amended by inserting after subsection (b) the fol11 lowing:

12 ‘‘(c)(1) Any State may elect to receive payments

13 under this subsection in lieu of receiving payments under

14 the other subsections of this section.

15 ‘‘(2) If a State makes an election under paragraph

16 (1), then, in lieu of any payment under any other sub17 section of this section, the Secretary shall make payments

18 to the State under this subsection for each fiscal year in

19 an amount equal to 103 percent of the total amount to

20 which the State was entitled under this section for fiscal

21 year 1992, subject to paragraph (5).

22 ‘‘(3) Each State to which an amount is paid under

23 paragraph (2) for a fiscal year shall expend the amount

24 to carry out any program established by the State to pro25 vide benefits to needy families with dependent children.
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1 ‘‘(4) Within 3 months after the end of each fiscal

2 year, each State that has made an election under para3 graph (1) shall submit to the Secretary a report that ac4 counts for all expenditures of amounts paid to the State

5 under this subsection for the fiscal year.

6 ‘‘(5) The Secretary shall reduce by 20 percent the

7 amount that would otherwise be payable to a State under

8 this subsection for a fiscal year if the Secretary finds that

9 the State has expended any amount provided under this

10 subsection for any purpose other than to carry out a pro11 gram of cash benefits to needy families with children.

12 ‘‘(6) The regulations issued with respect to State

13 plans and the operation of State programs under this part

14 (other than under this subsection) shall not apply to any

15 State that makes an election under paragraph (1).’’.

16 SEC. 302. OPTION TO DENY AFDC IF EITHER PARENT IS A

17 MINOR.

18 (a) IN GENERAL.—Section 402(a) of the Social Secu19 rity Act (42 U.S.C. 602(a)), as amended by section

20 201(a)(1) of this Act, is amended—

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

22 (45);

23 (2) by striking the period at the end of para24 graph (46) and inserting ‘‘; and’’; and
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1 (3) by inserting after paragraph (46) the fol2 lowing:

3 ‘‘(47) unless the State has enacted a law ex4 empting itself from the application of this para5 graph, provide that aid under the plan shall not be

6 payable with respect to a child if either parent of the

7 child is a minor (as defined by the State).’’.

8 (b) AVAILABILITY OF AFDC–UP BENEFITS.—Sec9 tion 407(b)(1)(A) of such Act (42 U.S.C. 607(b)(1)(A))

10 is amended by inserting ‘‘, notwithstanding section

11 402(a)(50),’’ before ‘‘when—’’.

12 (c) EFFECTIVE DATE.—The amendments made by

13 this section shall take effect on October 1, 1993, and shall

14 apply with respect to applications for aid under a State

15 plan approved under part A of title IV of the Social Secu16 rity Act that are made on or after such date.

17 SEC. 303. OPTION TO TREAT INTERSTATE IMMIGRANTS

18 UNDER RULES OF FORMER STATE.

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

20 602(a)), as amended by sections 201(a)(1) and 302 of this

21 Act, is amended—

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

23 (46);

24 (2) by striking the period at the end of para25 graph (47) and inserting ‘‘; and’’; and
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1 (3) by inserting after paragraph (47) the fol2 lowing:

3 ‘‘(48) at the option of the State, in the case of

4 a family applying for aid under the State plan that

5 has moved to the State from another jurisdiction of

6 the United States with a State plan approved under

7 this part, and has resided in the State for less than

8 12 months consecutively, apply the rules that would

9 have been applied by such other jurisdiction if the

10 family had not moved from such other jurisdiction,

11 in determining the eligibility of the family for bene12 fits, and the amount of benefits payable to the fam13 ily, under the State plan.’’.

14 SEC. 304. OPTION TO IMPOSE PENALTY FOR FAILURE TO

15 ATTEND SCHOOL.

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

17 602(a)), as amended by sections 201(a)(1), 302, and 303

18 of this Act, is amended—

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

20 (47);

21 (2) by striking the period at the end of para22 graph (48) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (48) the fol24 lowing:
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1 ‘‘(49) at the option of the State, provide that

2 the aid otherwise payable under the plan to a family

3 may be reduced by not more than $75 per month for

4 each parent under 21 years of age who has not com5 pleted secondary school (or the equivalent) and each

6 dependent child in the family who, during the imme7 diately preceding month, has failed, without good

8 cause (as defined by the State in consultation with

9 the Secretary), to maintain minimum attendance (as

10 defined by the State in consultation with the Sec11 retary) at an educational institution.’’.

12 SEC. 305. OPTION TO DENY AFDC FOR ADDITIONAL CHIL13 DREN.

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

15 602(a)), as amended by sections 201(a)(1), 302, 303, and

16 304 of this Act, is amended—

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

18 (48);

19 (2) by striking the period at the end of para20 graph (49) and inserting ‘‘; and’’; and

21 (3) by inserting after paragraph (49) the fol22 lowing:

23 ‘‘(50) unless the State has enacted a law ex24 empting itself from the application of this para-
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1 graph, provide that aid under the plan shall not be

2 payable with respect to a child born to—

3 ‘‘(A) a recipient of aid under the plan; or

4 ‘‘(B) an individual who received such aid

5 at any time during the 10-month period ending

6 with the birth of the child.’’.

7 SEC. 306. OPTION TO MODIFY CERTAIN AFDC INCOME DIS8 REGARD RULES.

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

10 U.S.C. 602(a)(8)(B)) is amended—

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

12 and

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

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

15 of subparagraph (A) and clause (ii) of this sub16 paragraph, may disregard earned income of any

17 child or relative receiving aid to families with

18 dependent children, or of any other individual

19 (living in the same home as such relative and

20 child) whose needs as taken into account in

21 making the determination under paragraph (7),

22 in accordance with any combination of rules

23 which (as determined by the State in accord24 ance with regulations prescribed by the Sec25 retary) is at least as favorable to the recipient
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1 of such aid as the combination of rules con2 tained in such clauses, but not more favorable

3 to the recipient than a rule providing for the

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

earned income for such month plus 1 5 ⁄2 of the

6 remainder thereof; and’’.

7 SEC. 307. OPTION TO PROVIDE MARRIED COUPLE TRANSI8 TION BENEFIT.

9 (a) IN GENERAL.—Section 402(a) of the Social Secu10 rity Act (42 U.S.C. 602(a)), as amended by sections

11 201(a)(1), 302, 303, 304, and 305 of this Act, is amend12 ed—

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

14 (49);

15 (2) by striking the period at the end of para16 graph (50) and inserting ‘‘; and’’; and

17 (3) by inserting after paragraph (50) the fol18 lowing:

19 ‘‘(51) at the option of the State, provide that—

20 ‘‘(A) if a recipient of aid under the plan

21 marries an individual who is not a parent of a

22 child of the recipient and (but for this para23 graph) the resulting family would have become

24 ineligible for such aid by reason of the mar25 riage, then the family shall remain eligible for
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1 aid under the plan, in an amount equal to 50

2 percent of the aid payable to the recipient im3 mediately before the marriage, for a period

4 (specified by the State) of not more than 12

5 months, but only for so long as the income of

6 the family is less than 150 percent of the in7 come official poverty line (as defined by the Of8 fice of Management and Budget, and revised

9 annually in accordance with section 673(2) of

10 the Omnibus Budget Reconciliation Act of

11 1981) applicable to a family of the size in12 volved; and

13 ‘‘(B) if a recipient of aid under the plan

14 marries an individual who is not a parent of a

15 child of the recipient and the resulting family

16 would (in the absence of this subparagraph) be

17 eligible for such aid by reason of section 407,

18 then the State may provide aid to the family in

19 accordance with section 407 or subparagraph

20 (A) of this paragraph, but not both.’’.

21 (b) APPLICABILITY.—The amendments made by sub22 section (a) shall apply only with respect to individuals who

23 first become recipients of aid under State plans approved

24 under part A of title IV of the Social Security Act on or

25 after October 1, 1993.
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1 SEC. 308. OPTION TO DISREGARD INCOME AND RESOURCES

2 DESIGNATED FOR EDUCATION, TRAINING,

3 AND EMPLOYABILITY, OR RELATED TO SELF4 EMPLOYMENT.

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

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

7 amended—

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

9 (2) by inserting ‘‘(v) at the option of the State,

10 in the case of a family receiving aid under the State

11 plan (and a family not receiving such aid but which

12 received such aid in at least 1 of the preceding 4

13 months or became ineligible for such aid during the

14 preceding 12 months because of excessive earnings),

15 any amount (determined by the State) not to exceed

16 $10,000 in a qualified asset account (as defined in

17 section 406(i)) of the family, or (vi) at the option of

18 the State, the first $10,000 of the net worth (assets

19 reduced by liabilities with respect thereto) of all

20 microenterprises (as defined in section 406(j)(1))

21 owned, in whole or in part, by such child, relative,

22 or other individual, for a period not to exceed 2

23 years’’ before ‘‘; and’’.

24 (b) DISREGARD OF INCOME FROM QUALIFIED ASSET

25 ACCOUNTS.—Section 402(a)(8)(A) of such Act (42 U.S.C.

26 602(a)(8)(A)) is amended—
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1 (1) by striking ‘‘and’’ at the end of clause (vii);

2 and

3 (2) by inserting after clause (viii) the following

4 new clause:

5 ‘‘(ix) at the option of the State, may

6 disregard any interest or income earned on

7 a qualified asset account (as defined in

8 section 406(i)), and any qualified distribu9 tion (as defined in section 406(i)(2)) from

10 a qualified asset account (as defined in

11 section 406(i)(1)); and’’.

12 (c) NONRECURRING LUMP SUM EXEMPT FROM

13 LUMP SUM RULE.—Section 402(a)(17) of such Act (42

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

15 following: ‘‘; and, at the option of the State, that this para16 graph shall not apply to earned or unearned income re17 ceived in a month on a nonrecurring basis to the extent

18 that such income is placed in a qualified asset account

19 (as defined in section 406(i)) the total amounts in which,

20 after such placement, does not exceed $10,000;’’.

21 (d) ONLY NET PROFITS OF MICROENTERPRISE

22 TREATED AS INCOME.—Section 402(a)(7) of such Act (42

23 U.S.C. 602(a)(7)), as amended by subsection (a) of this

24 section, is amended—
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (B);

3 (2) by striking the semicolon at the end of sub4 paragraph (C) and inserting ‘‘; and’’; and

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

6 ‘‘(D) at the option of the State, may take

7 into consideration as earned income of the fam8 ily of which the child is a member, only the net

9 profits (as defined in section 406(j)(2)) of

10 microenterprises (as defined in section

11 406(j)(1)) owned, in whole or in part, by such

12 child, relative, or other individual, for a period

13 not to exceed 2 years.’’.

14 (e) DEFINITIONS.—Section 406 of such Act (42

15 U.S.C. 606) is amended by adding at the end the follow16 ing:

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

18 mechanism approved by the State (such as individual re19 tirement accounts, escrow accounts, or savings bonds) that

20 allows savings of a family receiving aid to families with

21 dependent children to be used for qualified distributions.

22 ‘‘(2) The term ‘qualified distribution’ means a dis23 tribution from a qualified asset account for expenses di24 rectly related to 1 or more of the following purposes:
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1 ‘‘(A) The attendance of a member of the family

2 at any education or training program.

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

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

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

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

8 ‘‘(j)(1) The term ‘microenterprise’ means a commer9 cial enterprise which has 5 or fewer employees, 1 or more

10 of whom owns the enterprise.

11 ‘‘(2) The term ‘net profits’ means, with respect to

12 a microenterprise, the gross receipts of the business,

13 minus—

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

15 to the microenterprise;

16 ‘‘(B) transportation expenses;

17 ‘‘(C) inventory costs;

18 ‘‘(D) expenditures to purchase capital equip19 ment;

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

21 future use by the business;

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

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

24 of insurance against loss—
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1 ‘‘(i) the premiums paid for such insurance;

2 and

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

4 that are not reimbursed by the insurer solely by

5 reason of the existence of a deductible with re6 spect to the insurance policy;

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

8 vehicle necessary for the conduct of the business;

9 and

10 ‘‘(I) the other expenses of the business.’’.

11 SEC. 309. OPTION TO REQUIRE ATTENDANCE AT

12 PARENTING AND MONEY MANAGEMENT

13 CLASSES, AND PRIOR APPROVAL OF ANY AC14 TION THAT WOULD RESULT IN A CHANGE OF

15 SCHOOL FOR A DEPENDENT CHILD.

16 (a) IN GENERAL.—Section 402(a) of the Social Secu17 rity Act (42 U.S.C. 602(a)), as amended by sections

18 201(a)(1), 302, 303, 304, 305, and 307 of this Act, is

19 amended—

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

21 (50);

22 (2) by striking the period at the end of para23 graph (51) and inserting ‘‘; and’’; and

24 (3) by inserting after paragraph (51) the fol25 lowing:
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1 ‘‘(52) at the option of the State, provide that,

2 as a condition of receiving aid under the State plan,

3 the receipient must attend parenting and money

4 management classes, and must receive the permis5 sion of the State agency before taking any action

6 that would require a change in the educational insti7 tution attended by a dependent child of the

8 recipient.’’.

9 SEC. 310. EFFECTIVE DATE.

10 The amendments made by this title shall take effect

11 on October 1, 1993, and shall apply to payments under

12 part A of title IV of the Social Security Act for calendar

13 quarters beginning on or after such date.

14 TITLE IV—EXPANSION OF STATE

15 AND LOCAL FLEXIBILITY

16 SEC. 401. INTERAGENCY WAIVER REQUEST BOARD.

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

18 provide a focal point within the Federal Government for

19 the development and coordination of waiver requests de20 signed to improve opportunities for low-income individuals

21 and families, there is established an Interagency Waiver

22 Request Board.

23 (b) MEMBERSHIP.—

24 (1) PERMANENT MEMBERS.—The Board shall

25 consist of 9 permanent members, as follows:
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1 (A) The Secretary of Agriculture (or the

2 designee of the Secretary).

3 (B) The Secretary of Health and Human

4 Services (or the designee of the Secretary).

5 (C) The Secretary of Housing and Urban

6 Development (or the designee of the Secretary).

7 (D) The Secretary of Labor (or the des8 ignee of the Secretary).

9 (E) The Secretary of Education (or the

10 designee of the Secretary).

11 (F) The Attorney General of the United

12 States (or the designee of the Attorney Gen13 eral).

14 (G) The Secretary of the Interior (or the

15 designee of the Secretary).

16 (H) The Director of the Office of Manage17 ment and Budget (or the designee of the Direc18 tor).

19 (I) 1 individual appointed by the Presi20 dent.

21 (2) LIMITED PURPOSE MEMBERS.—

22 (A) IN GENERAL.—With respect to an ap23 plication submitted under this title, the Board

24 shall include the head of each department or

25 agency (or the designee of the head) having re-
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1 sponsibility for the administration of a program

2 included in the assistance plan contained in the

3 application.

4 (B) BOARD OF DIRECTORS OF THE LEGAL

5 SERVICES CORPORATION.—The Board of Direc6 tors of the Legal Services Corporation is

7 deemed to be the head of the department or

8 agency having responsibility for the administra9 tion of the program of legal assistance to eligi10 ble clients and other programs under the Legal

11 Services Corporation Act (42 U.S.C. 2996

12 et seq.).

13 (c) CHAIRPERSON.—The member of the Board ap14 pointed under subsection (b)(1)(I) shall serve as Chair15 person of the Board.

16 (d) VACANCIES.—A vacancy in the position of Chair17 man shall be filled in the manner in which the original

18 appointment was made.

19 (e) NO ADDITIONAL COMPENSATION.—The members

20 of the Board may not be provided additional pay, allow21 ances, or benefits by reason of their service on the Board.

22 (f) POWERS.—

23 (1) ASSISTANCE OF OTHER FEDERAL ENTI24 TIES.—A member of the Board shall detail to the

25 Chairperson, on a nonreimbursable basis, such offi-
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1 cers and employees of the department or agency

2 headed by the member, and shall make available to

3 the Chairperson such assistance, as the Chairperson

4 may require to carry out the activities of the

5 Chairperson.

6 (2) USE OF UNITED STATES MAILS.—The

7 Chairperson may use the United States mails in the

8 same manner and under the same conditions as

9 other departments and agencies of the United

10 States.

11 (3) ACCEPTANCE OF GIFTS, BEQUESTS, AND

12 DEVISES.—The Chairperson may accept, use, and

13 dispose of gifts, bequests, or devises of services or

14 property, both real and personal, for the purpose of

15 aiding or facilitating the work of the Chairperson.

16 Gifts, bequests, or devises of money and proceeds

17 from sales of other property received as gifts, be18 quests, or devises shall be deposited in the Treasury

19 and shall be available for disbursement upon order

20 of the Chairperson.

21 (g) PROCEDURE.—

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

23 than twice annually at the call of the Chairperson,

24 or of at least 3 permanent members.
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1 (2) NOTICE OF DECISIONS.—The Chairperson

2 shall provide the Board with advance notice of any

3 action that the Chairperson intends to take under

4 this title.

5 (3) POWER OF BOARD MAJORITY TO OVERRULE

6 CHAIRPERSON.—Notwithstanding any other provi7 sion of this title, a majority of the members of the

8 Board with respect to a matter may overrule any de9 cision or nullify any action of the Chairperson under

10 this title with respect to the matter.

11 (h) ANNUAL REPORTS.—The Chairperson shall

12 transmit annually to the Congress a report containing a

13 detailed statement of the activities of the Board during

14 the year covered by the report.

15 SEC. 402. APPLICATION TO IMPLEMENT ASSISTANCE

16 PLANS.

17 (a) IN GENERAL.—Any entity that is receiving or is

18 eligible to receive funds or other assistance under an eligi19 ble Federal program and desires to reform any number

20 of such programs may submit to the Chairperson an appli21 cation that contains the following:

22 (1) ASSISTANCE PLAN.—An assistance plan

23 that sets forth the following:
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1 (A) GEOGRAPHIC AREA.—The geographic

2 area to which the plan applies and the rationale

3 for so defining the area.

4 (B) RECIPIENTS.—The particular groups

5 of individuals, by age, service needs, economic

6 circumstances, or other defining factors, who

7 are to receive services and benefits under the

8 plan.

9 (C) OBJECTIVES AND PERFORMANCE CRI10 TERIA.—Specific objectives and criteria for

11 measuring levels of performance, a description

12 of how such objectives and levels of perform13 ance are expected to be achieved, a description

14 of how such criteria are to be used to measure

15 performance, and a system for the comprehen16 sive evaluation of the impact of the plan on par17 ticipants, the community, and program costs.

18 (D) COVERED PROGRAMS.—The eligible

19 Federal programs through which assistance is

20 to be improved in accordance with the plan, and

21 the specific benefits that are to be provided

22 under the plan pursuant to the program or pro23 grams, including criteria for determining eligi24 bility for benefits under the plan, the services

25 available, the amounts and form (such as cash,
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1 in-kind contributions, or financial instruments)

2 of non-service benefits.

3 (E) SOURCES OF NON-FEDERAL FUNDS.—

4 A description of the sources of all non-Federal

5 funds that are to be used to carry out the pro6 gram or programs referred to in subparagraph

7 (D).

8 (F) FISCAL CONTROL AND ACCOUNTABIL9 ITY.—Fiscal control and related accountability

10 procedures that are to apply under the plan.

11 (G) CONSENT OF QUALIFIED ORGANIZA12 TIONS.—Written consent from each qualified

13 organization for which consent is required

14 under section 403(e)(2)(B).

15 (H) APPROVAL OF AFFECTED STATE AND

16 LOCAL PUBLIC ENTITIES.—A written statement,

17 from each State or local public entity to which

18 the Federal funds or assistance would otherwise

19 be provided under the program or programs,

20 that the entity approves of the proposal and will

21 cooperate in the implementation of the proposal

22 by the applicant.

23 (2) ASSURANCES.—

24 (A) PROVISION OF PLAN TO AFFECTED OR25 GANS OF GOVERNMENT IN THE STATE.—Assur-
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1 ances that a copy of the plan has been provided

2 to all affected organs of government in the geo3 graphic area referred to in paragraph (1)(A).

4 (B) CONSULTATION WITH PUBLIC-PRIVATE

5 PARTNERSHIP COMMITTEE.—Assurances that a

6 committee established under section 405 has

7 participated in the development of the plan.

8 (3) REQUEST FOR AUTHORITY TO IMPLEMENT

9 PLAN.—A request that the Chairperson authorize

10 the applicant to implement the plan, and waive the

11 application of any Federal statutory or regulatory

12 requirement to the extent necessary to enable such

13 implementation.

14 (4) OTHER INFORMATION.—Any other informa15 tion the Chairperson may require to approve the

16 application.

17 (b) OPTION TO SUBMIT STREAMLINED APPLICATION

18 TO IMPLEMENT ASSISTANCE PLAN REFORMING 3 OR

19 FEWER PROGRAMS.—Any entity that is receiving or is eli20 gible to receive funds or other assistance under an eligible

21 Federal program and desires to reform 3 or fewer such

22 programs may submit to the Chairperson an application

23 that contains the following:

24 (1) ASSISTANCE PLAN.—An assistance plan

25 that sets forth the eligible Federal programs through
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1 which assistance is to be improved in accordance

2 with the plan.

3 (2) APPROVAL OF AFFECTED ENTITIES.—A

4 written statement, from each non-Federal officer or

5 entity to which the Federal funds or assistance

6 would otherwise be provided (either directly or

7 through intervening levels of grantees or other re8 cipients) under the program or programs, that such

9 other officer or entity approves of the plan and will

10 cooperate in the implementation of the plan by the

11 entity.

12 (3) PROVISIONS OF LAW TO BE WAIVED.—A list

13 of the provisions of law or regulation which prevent

14 the entity from implementing the plan.

15 (4) REQUEST FOR AUTHORITY TO IMPLEMENT

16 PLAN.—A request that the Chairperson authorize

17 the applicant to implement the plan, and waive the

18 application of any Federal statutory or regulatory

19 requirement to the extent necessary to enable such

20 implementation.

21 SEC. 403. REVIEW AND APPROVAL OF APPLICATIONS; WAIV22 ERS.

23 (a) REVIEW.—Upon receipt of an application submit24 ted in accordance with section 402, the Chairperson

25 shall—
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1 (1) approve or disapprove the application within

2 90 days after such receipt;

3 (2) notify the applicant in writing of such ap4 proval or disapproval; and

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

6 the notice of disapproval a written justification of

7 the reasons therefor.

8 (b) CONDITIONAL APPROVAL.—The Chairperson may

9 condition approval of such an application on the accept10 ance by the applicant, and by any parties whose consent

11 or approval is required under section 402, of specified

12 modifications to the application.

13 (c) APPROVAL.—

14 (1) REQUIREMENTS.—The Chairperson may

15 approve such an application, subject to paragraph

16 (2), if the Chairperson determines that—

17 (A) the implementation of the assistance

18 plan contained in the application will improve

19 the effectiveness and efficiency of providing

20 benefits under the covered program or pro21 grams included in the plan, by reducing admin22 istrative rigidity, duplication, and unnecessary

23 expenditures;

24 (B) the applicant has adequately consid25 ered, and the application appropriately address-
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1 es, the effects that the administration of each

2 covered program included in the plan will have

3 on the administration of any other such pro4 gram;

5 (C) the applicant has or is developing data

6 bases, planning, and evaluation processes that

7 are adequate for implementing the plan;

8 (D) implementation of the plan will ade9 quately achieve the purposes of this title and of

10 such covered program or programs; and

11 (E) the plan is adequate to ensure that in12 dividuals and families that receive benefits

13 under the covered program or programs in14 cluded in the plan will continue to receive bene15 fits that meet the needs intended to be met

16 under the program or programs.

17 (2) LIMITATIONS.—The Chairperson may not

18 approve such an application if—

19 (A) implementation of the assistance plan

20 contained in the application would result in an

21 increase in the total amount of obligations or

22 outlays of discretionary appropriations or direct

23 spending under the covered program or pro24 grams included in the plan, over the amounts of

25 such obligations and outlays that would occur
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1 under the program or programs without imple2 mentation of the plan; or

3 (B) if the plan applies to assistance to a

4 qualified organization under an eligible Federal

5 program, the qualified organization does not

6 consent in writing to the receipt of such assist7 ance in accordance with the plan.

8 (3) IMPLEMENTATION PERIOD.—In approving

9 such an application, the Chairperson shall specify

10 the period during which the assistance plan con11 tained in the application may be implemented.

12 (d) WAIVERS.—

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

14 the Chairperson may waive any requirement applica15 ble under Federal law to the administration of, or

16 provision of benefits under, any covered program in17 cluded in an application approved under this title, if

18 the waiver is reasonably necessary for the implemen19 tation of the assistance plan contained in the ap20 proved application.

21 (2) FUNDING LIMITATION.—This subsection

22 shall not be construed to authorize the Chairperson

23 to waive the application to any entity of a provision

24 of law or regulation applicable to a program if the

25 waiver would result in net payments by the Federal
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1 Government to the entity under the program for a

2 fiscal year in excess of the net payments which

3 would otherwise be so made to the entity.

4 (3) CIVIL RIGHTS LAWS EXCEPTED.—This sub5 section shall not be construed to authorize the

6 Chairperson to waive any requirement established by

7 statute or regulation under—

8 (A) title VI of the Civil Rights Act of 1964

9 (42 U.S.C. 2000d et seq.);

10 (B) section 504 of the Rehabilitation Act

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

12 (C) title IX of the Education Amendments

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

14 (D) the Age Discrimination Act of 1975

15 (42 U.S.C. 6101 et seq.); or

16 (E) the Americans With Disabilities Act of

17 1990.

18 SEC. 404. IMPLEMENTATION OF ASSISTANCE PLANS; EVAL19 UATIONS.

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law, benefits under any covered program included

22 in an application approved under this title shall be paid

23 and administered in the manner specified in the approved

24 application.

25 (b) EVALUATIONS.—
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1 (1) IN GENERAL.—Any entity whose application

2 is approved under this title shall, in accordance with

3 regulations issued by the Chairperson—

4 (A) submit such reports on, and cooperate

5 in such audits of, the implementation of the as6 sistance plan contained in the application; and

7 (B) periodically evaluate the effects that

8 implementation of the plan has had on—

9 (i) individuals who receive benefits

10 under a covered program included in the

11 plan;

12 (ii) communities where such individ13 uals live; and

14 (iii) costs of administering the covered

15 program or programs included in the plan.

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

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

18 date the application of an entity is approved under

19 this title, and annually thereafter, the entity shall

20 submit to the Chairperson a report on the principal

21 activities and achievements under the assistance

22 plan contained in the application, during the period

23 covered by the report, and, if the application was

24 submitted under section 402(a), the report shall

25 compare those achievements to the objectives and
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1 performance criteria included in the plan pursuant

2 to section 402(a)(1)(C).

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

4 the end of the period for which the Chairperson has ini5 tially authorized an entity to implement an assistance

6 plan, or at any time that the entity determines that the

7 plan has demonstrated its worth and proven to be a supe8 rior way to provide benefits under the covered program

9 or programs included in the plan, the entity shall submit

10 to the Chairperson a final report on such implementation,

11 including a full evaluation of the successes and short12 comings of the plan and the effects of such implementa13 tion on individuals who receive benefits under such pro14 gram or programs.

15 (d) EXTENSION OF PLANS.—The Chairperson may

16 extend, for such period as may be appropriate, the period

17 for which an entity may implement an approved assistance

18 plan, based on the report of the entity under subsection

19 (c).

20 (e) SUSPENSION AND TERMINATION.—

21 (1) IN GENERAL.—The Chairperson may re22 quire an entity to suspend or terminate implementa23 tion of part or all of an assistance plan under—

24 (A) any approved application under this

25 title if the Chairperson finds that the applicant
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1 has failed to carry out a covered program in ac2 cordance with any applicable provision of law or

3 regulation; or

4 (B) an approved application that was sub5 mitted under section 402(a), if, after consulta6 tion with the head of each Federal agency re7 sponsible for administering a covered program

8 included in the approved application, the Chair9 person determines that the objectives and per10 formance criteria included in the plan pursuant

11 to section 402(a)(1)(C) have not been met.

12 (2) TIMING.—In requiring the implementation

13 of an assistance plan to be terminated under para14 graph (1), the Chairperson shall allow a reasonable

15 period of time for appropriate Federal, State, and

16 local agencies, and qualified organizations to resume

17 administration of the covered program or programs

18 included in the application that contains the plan.

19 SEC. 405. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.

20 (a) ESTABLISHMENT.—An entity desiring to submit

21 an application under section 402(a) shall establish a Pub22 lic-Private Partnership Committee in accordance with this

23 section.

24 (b) FUNCTIONS.—A Public-Private Partnership Com25 mittee shall advise an entity in the development and imple-
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1 mentation of an assistance plan, including with respect

2 to—

3 (1) conducting public hearings;

4 (2) representing the interest of low-income indi5 viduals and families; and

6 (3) reviewing and commenting on all commu7 nity policies, programs, and actions under the plan

8 which affect low-income individuals and families,

9 with the purpose of assuring maximum coordination

10 and responsiveness of the plan in providing benefits

11 under the plan to those individuals and families.

12 (c) MEMBERSHIP.—The membership of a Public-Pri13 vate Partnership Committee shall—

14 (1) consist of—

15 (A) low-income individuals, who shall—

(i) comprise at least 1 16 ⁄3 of the mem17 bership; and

18 (ii) include minority individuals who

19 are participants or who qualify to partici20 pate in eligible Federal programs;

21 (B) representatives of low-income individ22 uals and families;

23 (C) persons with leadership experience in

24 the private and voluntary sectors;

25 (D) local elected officials; and
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1 (E) the general public; and

2 (2) include individuals and representatives of

3 community and business organizations who will help

4 to enhance the leadership role of the entity in devel5 oping an assistance plan.

6 SEC. 406. DEFINITIONS.

7 As used in this title:

8 (1) ASSISTANCE PLAN.—The term ‘‘assistance

9 plan’’ means a plan for improving the provision of

10 assistance under 1 or more eligible Federal pro11 grams.

12 (2) BOARD.—The term ‘‘Board’’ means the

13 Interagency Waiver Request Board established by

14 section 401.

15 (3) CHAIRPERSON.—The term ‘‘Chairperson’’

16 means the Chairperson of the Board.

17 (4) COVERED PROGRAM.—The term ‘‘covered

18 program’’ means, with respect to an assistance plan,

19 the eligible Federal programs included in the plan.

20 (5) ELIGIBLE FEDERAL PROGRAM.—The term

21 ‘‘eligible Federal program’’ means any Federal pro22 gram which, directly or indirectly, provides cash as23 sistance to individuals, or under which assistance is

24 available for—

25 (A) education;
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1 (B) employment training;

2 (C) health;

3 (D) housing;

4 (E) nutrition; or

5 (F) other social services.

6 (6) QUALIFIED ORGANIZATION.—The term

7 ‘‘qualified organization’’ means any private, not-for8 profit organization that is exempt from taxation

9 under section 501(c)(3) of the Internal Revenue

10 Code of 1986 (26 U.S.C. 501(c)(3)).

11 (7) STATE.—

12 (A) IN GENERAL.—The term ‘‘State’’

13 means the 50 States, the District of Columbia,

14 Puerto Rico, American Samoa, Guam, and the

15 Virgin Islands.

16 (B) INDIAN TRIBES.—In the case of an eli17 gible Federal program under which assistance

18 is provided with respect to an Indian tribe, the

19 Indian tribal organization is deemed to be a

20 State.

21 SEC. 407. REPORTS.

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

23 United States shall submit to the Congress 2 reports

24 that—
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1 (1) describe the extent to which assistance

2 plans have been implemented in accordance with this

3 title;

4 (2) evaluate the effectiveness of covered Federal

5 assistance programs included in such plans; and

6 (3) include recommendations with respect to

7 whether to continue activities under this title.

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

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

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

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

12 SEC. 408. SUNSET.

13 Any authority provided under this title shall expire

14 7 years after the date of the enactment of this Act.

15 TITLE V—CHILD SUPPORT

16 ENFORCEMENT

17 SEC. 501. NATIONAL REPORTING OF INFORMATION RELAT18 ING TO CHILD SUPPORT WITH RESPECT TO

19 CERTAIN EMPLOYEES.

20 (a) MODIFIED W–4 REPORTING.—

21 (1) ESTABLISHMENT OF REPORTING SYSTEM.—

22 The Secretary of the Treasury, in consultation with

23 the Secretary of Labor, shall establish a system for

24 the reporting of information relating to child support
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1 obligations of employees, that meets the require2 ments of this subsection.

3 (2) EMPLOYEE OBLIGATIONS.—

4 (A) EMPLOYEES SUBJECT TO CHILD SUP5 PORT WAGE WITHHOLDING.—The system shall

6 require each employee who owes a qualified

7 child support obligation to indicate on a W–4

8 form that the employee is otherwise required to

9 file with the employer—

10 (i) the existence of the obligation;

11 and

12 (ii) the amount of the obligation;

13 (iii) the name and address of the

14 person to whom the obligation is

15 owed; and

16 (iv) whether health care insur17 ance is available through the employer

18 to the family of the employee.

19 (B) EMPLOYEES IN DESIGNATED INDUS20 TRIES.—The system shall require each em21 ployee, who is employed in a State in an indus22 try that the State has designated pursuant to

23 section 466(a)(12)(A) of the Social Security Act

24 as one with respect to which universal employ25 ment reporting would improve child support en-
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1 forcement in a cost-effective manner, to file

2 with the employer a W–4 form indicating—

3 (i) whether the employee owes a quali4 fied child support obligation; and

5 (ii) if so—

6 (I) the amount of the obligation;

7 (II) the name and address of the

8 person to whom the obligation is

9 owed; and

10 (III) whether health care insur11 ance is available through the employer

12 to the family of the employee.

13 (C) ONE-TIME UPDATING OF W–4 INFOR14 MATION OF ALL EMPLOYEES.—The system shall

15 require each employee to file with the employer,

16 during a period that the State in which the em17 ployee is employed has prescribed pursuant to

18 section 466(a)(12)(B) of the Social Security

19 Act, a W–4 form indicating—

20 (i) whether the employee owes a quali21 fied child support obligation; and

22 (ii) if so—

23 (I) the amount of each such obli24 gation;
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1 (II) the name and address of

2 each person to whom the obligation is

3 owed; and

4 (III) whether health care insur5 ance is available through the employer

6 to the family of the employee.

7 (D) QUALIFIED CHILD SUPPORT OBLIGA8 TION.—As used in this subsection, the term

9 ‘‘qualified child support obligation’’ means a

10 legal obligation to provide child support (as de11 fined in section 462(b) of the Social Security

12 Act) which is to be collected, in whole or in

13 part, through wage withholding pursuant to an

14 order issued by a court of any State or an order

15 of an administrative process established under

16 the law of any State.

17 (3) EMPLOYER OBLIGATIONS.—Each employer

18 who receives information from an employee pursuant

19 to paragraph (2) of this subsection shall—

20 (A) within 10 days after such receipt, for21 ward the information to the agency, designated

22 pursuant to section 466(a)(11)(A) of the Social

23 Security Act, of the State in which the em24 ployee is employed by the employer; and
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1 (B) withhold from the income of the em2 ployee the amount indicated on the W–4 form

3 (or, if the employer has received from the State

4 a notice that the amount is incorrect, such

5 other amount as the State indicates is to be so

6 withheld), in the manner described in section

7 466(b)(6)(A)(i) of such Act.

8 (4) NEW HIRES IN CERTAIN STATES EX9 CEPTED.—This subsection shall not apply with re10 spect to the employment in a State of any employee

11 not described in paragraph (2)(B) if the Secretary

12 of Health and Human Services determines that the

13 State—

14 (A) requires all employers in the State to

15 report to the State all basic employment infor16 mation on new hires;

17 (B) requires such information to be com18 pared with information in the State registry of

19 child support orders established pursuant to

20 section 466(a)(13) of the Social Security Act

21 and with requests from other States for infor22 mation on the location of noncustodial parents;

23 (C) maintains updated employment infor24 mation on all individuals employed in the State
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1 in a manner that enables the State to effec2 tively respond to such requests; and

3 (D) requires all employers in the State, on

4 receipt of a notice from the State that an em5 ployee owes a qualified child support obligation,

6 to begin withholding from the income of the

7 employee the amount of the obligation, in the

8 manner described in section 466(b)(6)(A)(i) of

9 the Social Security Act.

10 (b) STATE ROLE.—Section 466(a) of the Social Secu11 rity Act (42 U.S.C. 666(a)) is amended by inserting after

12 paragraph (10) the following:

13 ‘‘(11) Procedures under which the State shall

14 designate a public agency to—

15 ‘‘(A) maintain the information provided by

16 employers pursuant to section 501(a)(3) of the

17 Responsibility and Empowerment Support Pro18 gram Providing Employment, Child Care, and

19 Training Act in accordance with regulations

20 prescribed by the Secretary which allow other

21 States easy access to the information through

22 the Interstate Locate Network established

23 under section 453(g) of this Act; and

24 ‘‘(B) determine whether or not the infor25 mation described in subparagraph (A) of this
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1 paragraph provided by an employer with respect

2 to an employee is accurate by comparing the in3 formation with the information on file in the

4 State registry of child support orders estab5 lished pursuant to section 466(a)(13) of this

6 Act, and—

7 ‘‘(i) if the information is confirmed by

8 the information on file in the registry, no9 tify any individual who resides in the State

10 and to whom the employee has a legal obli11 gation to provide child support (or such in12 dividual’s designee) of such information;

13 ‘‘(ii) if the information is not so con14 firmed due to a discrepancy between the

15 information and a copy of a child support

16 order in the registry, notify the employer

17 of the discrepancy and the correct informa18 tion using the order developed under sec19 tion 452(a)(12) of this Act; or

20 ‘‘(iii) if the information is not so con21 firmed because the registry does not con22 tain a copy of an order that imposes a

23 child support obligation on the employee,

24 search the child support order registries

25 established pursuant to section 466(a)(13)
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1 of this Act of the States in which the obli2 gation is most likely to have been imposed.

3 ‘‘(12) Procedures under which the State shall—

4 ‘‘(A) designate at least 1 industry, for pur5 poses of section 501(a)(2)(B) of the Respon6 sibility and Empowerment Support Program

7 Providing Employment, Child Care, and Train8 ing Act, as an industry with respect to which

9 universal employment reporting would improve

10 child support enforcement in a cost-effective

11 manner;

12 ‘‘(B) prescribe the period during which in13 dividuals employed in the State are to be re14 quired to file with their employers updated W–

15 4 forms as required by section 501(a)(2)(C) of

16 such Act; and

17 ‘‘(C) impose a fine—

18 ‘‘(i) against any individual employed

19 in the State who is required by section

20 501(a)(2) of such Act to file a W–4 form

21 with any employer of the individual and

22 fails to do so; and

23 ‘‘(ii) in an amount equal to the aver24 age cost of noncompliance (as determined

25 by the State) or $25, whichever is the less-
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1 er, on any employer who fails to comply

2 with section 501(a)(3) of such Act for any

3 month.’’.

4 SEC. 502. STATE INFORMATION SYSTEMS.

5 (a) STATE REGISTRIES OF CHILD SUPPORT OR6 DERS.—Section 466(a) of the Social Security Act (42

7 U.S.C. 666(a)), as amended by section 501(b) of this Act,

8 is amended by inserting after paragraph (12) the follow9 ing:

10 ‘‘(13) Procedures requiring the State agency

11 designated pursuant to paragraph (16) to maintain

12 a child support order registry, which must include—

13 ‘‘(A) a copy of each child support order

14 being enforced under the State plan; and

15 ‘‘(B) at the request of an individual who

16 has or is owed a legal obligation to provide child

17 support (within the meaning of section 462(b)),

18 a copy of the order that imposes the obliga19 tion.’’.

20 (b) ACCESSIBILITY OF STATE INFORMATION RELAT21 ED TO CHILD SUPPORT.—

22 (1) TO OTHER STATES.—Section 466(a) of the

23 Social Security Act (42 U.S.C. 666(a)), as amended

24 by section 501(b)(1) of this Act and subsection (a)
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1 of this section, is amended by inserting after para2 graph (13) the following:

3 ‘‘(14)(A) Procedures requiring all records of the

4 State to which the agency administering the plan

5 has access and determines may be useful in locating

6 noncustodial parents or collecting child support to be

7 made accessible to any agency of any State for such

8 purpose, through the Interstate Locate Network es9 tablished under section 453(g), in accordance with

10 safeguards established to prevent release of informa11 tion if the release might jeopardize the safety of any

12 individual.

13 ‘‘(B) The State may impose reasonable fees for

14 access to State records provided pursuant to sub15 paragraph (A).’’.

16 (2) TO PRIVATE PARTIES.—Section 466(a) of

17 such Act (42 U.S.C. 666(a)), as amended by section

18 501(b)(1) of this Act, subsection (a) of this section,

19 and paragraph (1) of this subsection, is amended by

20 inserting after paragraph (14) the following:

21 ‘‘(15) Procedures under which—

22 ‘‘(A) noncustodial parents (and their des23 ignees) must be given access to State parent lo24 cator services, to aid in the establishment or en25 forcement of visitation rights, in accordance
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1 with safeguards established to prevent release

2 of information if the release might jeopardize

3 the safety of any individual; and

4 ‘‘(B) custodial parents (and their des5 ignees) must be given access to State parent lo6 cator services to aid in the establishment and

7 enforcement of child support obligations against

8 noncustodial parents.’’.

9 SEC. 503. NATIONAL INFORMATION SYSTEMS.

10 (a) EXPANSION OF PARENT LOCATOR SERVICE.—

11 Section 453 of the Social Security Act (42 U.S.C. 653)

12 is amended—

13 (1) in subsection (a)—

14 (A) by inserting ‘‘(1)’’ after ‘‘transmit’’;

15 (B) by striking ‘‘enforcing support obliga16 tions against such parent’’ and inserting ‘‘es17 tablishing parentage, establishing, modifying,

18 and enforcing child support obligations, and (2)

19 to any noncustodial parent (or the designee of

20 the noncustodial parent) information as to the

21 whereabouts of the custodial parent when such

22 information is to be used to locate such parent

23 for the purpose of enforcing child visitation

24 rights and obligations’’;
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1 (2) in subsection (b), by inserting after the 2nd

2 sentence the following: ‘‘Information shall not be

3 disclosed to a custodial parent or a noncustodial par4 ent if the disclosure would jeopardize the safety of

5 the child or either of such parents.’’;

6 (3) in subsection (d), by inserting ‘‘and such

7 reasonable fees’’ after ‘‘such documents’’; and

8 (4) by striking ‘‘absent parent’’ each place such

9 term appears and inserting ‘‘noncustodial parent’’.

10 (b) ESTABLISHMENT OF INTERSTATE LOCATE NET11 WORK.—Section 453 of such Act (42 U.S.C. 653) is

12 amended by adding at the end the following:

13 ‘‘(g) The Secretary shall establish an Interstate Lo14 cate Network linking the Parent Locator Service and all

15 State databases relating to child support enforcement,

16 which—

17 ‘‘(1) any State may use to—

18 ‘‘(A) locate any noncustodial parent who

19 has a legal obligation to provide child support

20 (as defined in section 462(b)), with respect to

21 whom such an obligation is being sought, or

22 against whom visitation rights are being en23 forced, by accessing the records of any Federal,

24 State, or other source of locate or child support
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1 information, directly from one computer system

2 to another; or

3 ‘‘(B) direct a locate request to another

4 State or a Federal agency, or, if the source of

5 locate information is unknown, broadcast such

6 a request to selected States or to all States;

7 ‘‘(2) allows on-line and batch processing of lo8 cate requests, with on-line access restricted to cases

9 in which the information is needed immediately

10 (such as for court appearances), and batch process11 ing used to ‘troll’ data bases to locate individuals or

12 update information periodically; and

13 ‘‘(3) enables courts to access information on the

14 Network through a computer terminal located in the

15 court.’’.

16 (c) INFORMATION SHARING REGULATIONS.—Section

17 452(a) of such Act (42 U.S.C. 652(a)) is amended—

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

19 (9);

20 (2) by striking the period at the end of the 2nd

21 sentence of paragraph (10) and inserting ‘‘; and’’;

22 and

23 (3) by inserting after paragraph (10) the fol24 lowing:
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1 ‘‘(11) prescribe regulations governing informa2 tion sharing among States, within States, and be3 tween the States and the Parent Locator Service—

4 ‘‘(A) to ensure that a State may broadcast

5 a request for information for the purpose of lo6 cating a noncustodial parent or collecting child

7 support, and receive a response to the request

8 in not more than 48 hours; and

9 ‘‘(B) to require a State that is attempting

10 to locate a noncustodial parent—

11 ‘‘(i) to compare all outstanding cases

12 with information in the employment

13 records of the State;

14 ‘‘(ii) if, after complying with clause

15 (i), the State is unable to locate the

16 noncustodial parent, then—

17 ‘‘(I) if the State has reason to

18 believe that the noncustodial parent is

19 in another particular State or States,

20 to request such State or States for in21 formation on the noncustodial parent;

22 and

23 ‘‘(II) if not, to broadcast all

24 States a request for such informa25 tion.’’.
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1 SEC. 504. INCOME WITHHOLDING.

2 (a) STATE ROLE.—Section 466(a) of the Social Secu3 rity Act (42 U.S.C. 666(a)), as amended by sections

4 501(b)(1) and 502 of this Act, is amended by inserting

5 after paragraph (15) the following:

6 ‘‘(16) Procedures under which the State shall

7 designate a public agency to—

8 ‘‘(A) collect child support pursuant to the

9 State plan; and

10 ‘‘(B) distribute, in accordance with section

11 457, and with all due deliberate speed, the

12 amounts collected as child support.

13 ‘‘(17) Procedures under which the State shall

14 require any court of the State that establishes or

15 modifies a child support order to transmit a copy of

16 the order to the State agency designated pursuant to

17 paragraph (18), unless the order does not provide

18 for income withholding, and the noncustodial parent

19 and the custodial parent object.

20 ‘‘(18) Procedures under which the State shall

21 designate a State agency to use the uniform income

22 withholding order developed under section

23 452(a)(12) to notify the agency administering the

24 State plan, any employer of an individual required to

25 pay child support through income withholding pursu26 ant to an order issued or modified in the State, and
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1 the agency designated pursuant to paragraph (16) of

2 this subsection of each State in which such an em3 ployer is located, of—

4 ‘‘(A) the identity of the individual;

5 ‘‘(B) the amount to be withheld; and

6 ‘‘(C) the State agency to which the with7 held amount is to be paid.’’.

8 (b) UNIFORM WITHHOLDING ORDER.—Section

9 452(a) of such Act (42 U.S.C. 652(a)), as amended by

10 section 503(c) of this Act, is amended—

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

12 (10);

13 (2) by striking the period at the end of para14 graph (11) and inserting ‘‘; and’’; and

15 (3) by inserting after paragraph (11) the fol16 lowing:

17 ‘‘(12) develop a uniform order to be used in all

18 cases in which income is to be withheld for the pay19 ment of child support, which shall contain the name

20 of the individual whose income is to be withheld, the

21 number of children covered by the order, and the in22 dividual or State to whom the withheld income is to

23 be paid, and be generic to allow for the service of

24 the order on all sources of income.’’.
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1 (c) STATES REQUIRED TO HAVE LAWS REQUIRING

2 EMPLOYERS TO WITHHOLD CHILD SUPPORT PURSUANT

3 TO UNIFORM INCOME WITHHOLDING ORDERS.—Section

4 466(b) of such Act (42 U.S.C. 666(b)(1)) is amended—

5 (1) in paragraph (1), by inserting ‘‘and in the

6 case of each individual employed in the State,’’ be7 fore ‘‘so much’’;

8 (2) in paragraph (6)(C), by inserting ‘‘of this

9 paragraph and paragraph (9)(B) of this subsection’’

10 after ‘‘(A)’’; and

11 (3) in paragraph (9)—

12 (A) by inserting ‘‘(A)’’ after ‘‘(9)’’; and

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

14 ‘‘(B)(i) Any individual or entity engaged in

15 commerce, as a condition of doing business in the

16 State, on receipt of an income withholding order de17 veloped under section 452(a)(12) with respect to an

18 employee of the individual or entity, that is regular

19 on its face and has been issued by a court or State

20 agency of any State, shall—

21 ‘‘(I) immediately provide a copy of the

22 order to the employee subject to the order; and

23 ‘‘(II) within 10 days after receipt of the

24 order, withhold income from the employee in

25 the manner described in paragraph (6)(A)(i) of
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1 this subsection, notwithstanding paragraph (4)

2 of this subsection.

3 ‘‘(ii) Such an order may be served on the indi4 vidual or entity directly or by first-class mail.

5 ‘‘(iii) Any individual or entity who complies

6 with such an order may not be held liable for wrong7 ful withholding of income from the employee subject

8 to the order.

9 ‘‘(iv) The State shall impose a civil fine in an

10 amount equal to the average cost of noncompliance

11 (as determined by the State) or $25, whichever is

12 the lesser, on any such individual or entity who re13 ceives such an order with respect to an employee of

14 the individual or entity, and who, due to negligence,

15 fails to comply with the order within 10 days after

16 receipt.

17 ‘‘(v) Any individual or entity who imposes a fee

18 for the administration of child support income with19 holding and related reporting of information shall

20 not collect more than the average cost of such ad21 ministration, as determined by the State.’’.

22 SEC. 505. UNIFORM TERMS IN ORDERS.

23 (a) IN GENERAL.—Section 452(a) of the Social Secu24 rity Act (42 U.S.C. 652(a)), as amended by sections

25 503(c) and 504(b) of this Act, is amended—
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1 (1) in paragraph (11), by striking ‘‘and’’ after

2 the semicolon;

3 (2) in paragraph (12), by striking the period at

4 the end of the 2nd sentence and inserting ‘‘; and’’;

5 and

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

7 ‘‘(13) develop, in conjunction with State execu8 tive and judicial organizations, a uniform abstract of

9 a child support order, for use by all State courts to

10 record, with respect to each child support order in

11 the child support order registry established under

12 section 466(a)(12)—

13 ‘‘(A) the date support payments are to

14 begin under the order;

15 ‘‘(B) the circumstances upon which sup16 port payments are to end under the order;

17 ‘‘(C) the amount of child support payable

18 pursuant to the order expressed as a sum cer19 tain to be paid on a monthly basis, arrearages

20 expressed as a sum certain as of a certain date,

21 and any payback schedule for the arrearages;

22 ‘‘(D) whether the order awards support in

23 a lump sum (nonallocated) or per child;
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1 ‘‘(E) if the award is in a lump sum, the

2 event causing a change in the support award

3 and the amount of any change;

4 ‘‘(F) other expenses covered by the order;

5 ‘‘(G) the names of the parents subject to

6 the order;

7 ‘‘(H) the social security account numbers

8 of the parents;

9 ‘‘(I) the name, date of birth, and social se10 curity account number (if any) of each child

11 covered by the order;

12 ‘‘(K) the identification (FIPS code, name,

13 and address) of the court that issued the order;

14 ‘‘(L) any information on health care sup15 port required by the order; and

16 ‘‘(M) the party to contact if additional in17 formation is obtained.’’.

18 SEC. 506. WORK REQUIREMENT FOR NONCUSTODIAL PAR19 ENTS WITH CHILD SUPPORT ARREARAGES.

20 (a) IN GENERAL.—Section 466(a) of the Social Secu21 rity Act (42 U.S.C. 666(a)), as amended by sections

22 501(b)(1), 502, and 504(a) of this Act, is amended by in23 serting after paragraph (18) the following:

24 ‘‘(19) Procedures requiring that—
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1 ‘‘(A) upon a determination by the State

2 agency referred to in section 402(a)(3) that the

3 noncustodial parent of any child who is apply4 ing for or receiving aid under the State plan ap5 proved under part A owes child support (as de6 fined in section 462(b)) with respect to the

7 child, is in arrears in the payment of such sup8 port in an amount that is not less than twice

9 the amount of the monthly child support obliga10 tion, is not incapacitated, and is not subject to

11 a court-approved plan for payment of such ar12 rearage, the State agency referred to in section

13 402(a)(3) send to the noncustodial parent a let14 ter notifying the noncustodial parent that the

15 noncustodial parent—

16 ‘‘(i) is required to pay child support

17 with respect to the child; and

18 ‘‘(ii) is subject to fines and other pen19 alties for failure to pay the full amount of

20 such support in a timely manner; and

21 ‘‘(B) if, by the end of the 30-day period

22 that begins with the date the letter is sent pur23 suant to subparagraph (A), the amount of the

24 arrearage has not decreased by at least a per25 centage amount specified by the State agency,
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1 the State seek a court order requiring the

2 noncustodial parent—

3 ‘‘(i) to participate in a job search pro4 gram established by the State, for not less

5 than 2 weeks and not more than 4 weeks;

6 and

7 ‘‘(ii) if, by the end of the 30-day pe8 riod beginning on the date the order is en9 tered, the amount of the arrearage has not

10 decreased by at least a percentage amount

11 specified by the State agency, to partici12 pate in a work program established by the

13 State, for not less than 35 hours per week

14 (or, if the program also requires job

15 search, for not less than 30 hours per

16 week).’’.

17 TITLE VI—WELFARE

18 RESTRICTIONS FOR ALIENS

19 SEC. 601. INELIGIBILITY OF ALIENS FOR PUBLIC WELFARE

20 ASSISTANCE.

21 (a) IN GENERAL.—Notwithstanding any other provi22 sion of law and except as provided in subsections (b) and

23 (c), no alien shall be eligible for any program referred to

24 in subsection (d).

25 (b) EXCEPTIONS.—
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1 (1) REFUGEE EXCEPTION.—Subsection (a)

2 shall not apply to an alien admitted to the United

3 States as a refugee under section 207 of the Immi4 gration and Nationality Act until 6 years after the

5 date of such alien’s arrival into the United States.

6 (2) AGED EXCEPTION.—Subsection (a) shall

7 not apply to an alien who—

8 (A) has been lawfully admitted to the

9 United States for permanent residence;

10 (B) is over 75 years of age; and

11 (C) has resided in the United States for at

12 least 5 years.

13 (3) CURRENT RESIDENT EXCEPTION.—Sub14 section (a) shall not apply to the eligibility of an

15 alien for a program referred to in subsection (d)

16 until 1 year after the date of the enactment of this

17 Act if, on such date of enactment, the alien is resid18 ing in the United States and is eligible for the pro19 gram.

20 (c) PROGRAMS FOR WHICH ALIENS MAY BE ELIGI21 BLE.—The limitation under subsection (a) shall not apply

22 to the following programs: Medical assistance with respect

23 to emergency services (as defined for purposes of section

24 1916(a)(2)(D) of the Social Security Act).
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1 (d) PROGRAMS FOR WHICH ALIENS ARE INELI2 GIBLE.—The programs referred to in this subsection are

3 the following:

4 (1) The program of medical assistance under

5 title XIX of the Social Security Act, except emer6 gency services as provided in subsection (c).

7 (2) The Maternal and Child Health Services

8 Block Grant Program under title V of the Social Se9 curity Act.

10 (3) The program established in section 330 of

11 the Public Health Service Act (relating to commu12 nity health centers).

13 (4) The program established in section 1001 of

14 the Public Health Service Act (relating to family

15 planning methods and services).

16 (5) The program established in section 329 of

17 the Public Health Service Act (relating to migrant

18 health centers).

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

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

21 Social Security Act.

22 (7) The child welfare services program under

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

24 (8) The supplemental security income program

25 under title XVI of the Social Security Act.
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1 (9) The program of foster care and adoption

2 assistance under part E of title IV of the Social Se3 curity Act.

4 (10) The food stamp program, as defined in

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

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

7 (11) The school lunch program carried out

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

9 1751 et seq.).

10 (12) The special supplemental food program for

11 women, infants, and children carried out under sec12 tion 17 of the Child Nutrition Act of 1966 (42

13 U.S.C. 1786).

14 (13) The nutrition programs carried out under

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

16 1965 (42 U.S.C. 3030e et seq.).

17 (14) The school breakfast program carried out

18 under section 4 of the Child Nutrition Act of 1966

19 (42 U.S.C. 1773).

20 (15) The child and adult care food program

21 carried out under section 17 of the National School

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

23 (16) The Emergency Food Assistance Act of

24 1983 (7 U.S.C. 612c note).
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1 (17) The summer food service program for chil2 dren carried out under section 13 of the National

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

4 (18) The commodity supplemental food pro5 gram authorized by section 4(a) of the Agriculture

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

7 612c note).

8 (19) The special milk program carried out

9 under section 3 of the Child Nutrition Act of 1966

10 (42 U.S.C. 1772).

11 (20) The program of rental assistance on behalf

12 of low-income families provided under section 8 of

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

14 1437f).

15 (21) The program of assistance to public hous16 ing under title I of the United States Housing Act

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

18 (22) The loan program under section 502 of the

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

20 (23) The program of interest reduction pay21 ments pursuant to contracts entered into by the Sec22 retary of Housing and Urban Development under

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

24 1715z–1).
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1 (24) The program of loans for rental and coop2 erative housing under section 515 of the Housing

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

4 (25) The program of rental assistance pay5 ments pursuant to contracts entered into under sec6 tion 521(a)(2)(A) of the Housing Act of 1949 (42

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

8 (26) The program of assistance payments on

9 behalf of homeowners under section 235 of the Na10 tional Housing Act (12 U.S.C. 1715z).

11 (27) The program of rent supplement payments

12 on behalf of qualified tenants pursuant to contracts

13 entered into under section 101 of the Housing and

14 Urban Development Act of 1965 (12 U.S.C. 1701s).

15 (28) The loan and grant programs under sec16 tion 504 of the Housing Act of 1949 (42 U.S.C.

17 1474) for repairs and improvements to rural dwell18 ings.

19 (29) The loan and assistance programs under

20 sections 514 and 516 of the Housing Act of 1949

21 (42 U.S.C. 1484, 1486) for housing for farm labor.

22 (30) The program of grants for preservation

23 and rehabilitation of housing under section 533 of

24 the Housing Act of 1949 (42 U.S.C. 1490m).
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1 (31) The program of grants and loans for mu2 tual and self-help housing and technical assistance

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

4 U.S.C. 1490c).

5 (32) The program of site loans under section

6 524 of the Housing Act of 1949 (42 U.S.C. 1490d).

7 (33) The program under part B of title IV of

8 the Higher Education Act of 1965.

9 (34) The program under subpart 1 of part A of

10 title IV of the Higher Education Act of 1965.

11 (35) The program under part C of title IV of

12 the Higher Education Act of 1965.

13 (36) The program under subpart 3 of part A of

14 title IV of the Higher Education Act of 1965.

15 (37) The program under part E of title IV of

16 the Higher Education Act of 1965.

17 (38) The program under subpart 4 of part A of

18 title IV of the Higher Education Act of 1965.

19 (39) The program under title IX of the Higher

20 Education Act of 1965.

21 (40) The program under subpart 5 of part A of

22 title IV of the Higher Education Act of 1965.

23 (41) The programs established in sections 338A

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

25 programs established in part A of title VII of such
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1 Act (relating to loans and scholarships for education

2 in the health professions).

3 (42) The program established in section

4 317(j)(1) of the Public Health Service Act (relating

5 to grants for immunizations against vaccine-prevent6 able diseases).

7 (43) The program established in section 317A

8 of the Public Health Service Act (relating to grants

9 for screening, referrals, and education regarding

10 lead poisoning in infants and children).

11 (44) The program established in part A of title

12 XIX of the Public Health Service Act (relating to

13 block grants for preventive health and health serv14 ices).

15 (45) The programs established in subparts I

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

17 Service Act.

18 (46)(A) The program of training for disadvan19 taged adults and youth under part A of title II of

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

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

22 (B)(i) The program of training for disadvan23 taged adults under part A of title II of the Job

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

25 as in effect on and after July 1, 1993.
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1 (ii) The program of training for disadvantaged

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

3 Partnership Act (29 U.S.C. 1641 et seq.), as in ef4 fect on and after July 1, 1993.

5 (47) The Job Corps program under part B of

6 title IV of the Job Training Partnership Act (29

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

8 (48) The summer youth employment and train9 ing programs under part B of title II of the Job

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

11 (49) The programs carried out under the Older

12 American Community Service Employment Act (42

13 U.S.C. 3001 et seq.).

14 (50) The programs under title III of the Older

15 Americans Act of 1965.

16 (51) The programs carried out under part B of

17 title II of the Domestic Volunteer Service Act of

18 1973 (42 U.S.C. 5011–5012).

19 (52) The programs carried out under part C of

20 title II of the Domestic Volunteer Service Act of

21 1973 (42 U.S.C. 5013).

22 (53) The program under the Low-Income En23 ergy Assistance Act of 1981 (42 U.S.C. 8621 et

24 seq.).
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1 (54) The weatherization assistance program

2 under title IV of the Energy Conservation and Pro3 duction Act (42 U.S.C. 6851).

4 (55) The program of block grants to States for

5 social services under title XX of the Social Security

6 Act.

7 (56) The programs carried out under the Com8 munity Services Block Grant Act (42 U.S.C. 9901

9 et seq.).

10 (57) The program of legal assistance to eligible

11 clients and other programs under the Legal Services

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

13 (58) The program for emergency food and shel14 ter grants under title III of the Stewart B. McKin15 ney Homeless Assistance Act (42 U.S.C. 11331 et

16 seq.).

17 (59) The programs carried out under the Child

18 Care and Development Block Grant Act of 1990 (42

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

20 (60) A State program for providing child care

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

22 (61) The program of State legalization impact23 assistance grants (SLIAG) under section 204 of the

24 Immigration Reform and Control Act of 1986.
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1 (e) NOTIFICATION OF ALIENS.—Any Federal agency

2 that administers a program referred to in subsection (d)

3 shall, directly or through the States, notify each alien re4 ceiving benefits under the program whose eligibility for the

5 program is or will be terminated by reason of this section.

6 SEC. 602. STATE AFDC AGENCIES REQUIRED TO PROVIDE

7 INFORMATION ON ILLEGAL ALIENS TO THE

8 IMMIGRATION AND NATURALIZATION SERV9 ICE.

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

11 602(a)), as amended by sections 201(a)(1), 302, 303, 304,

12 305, 307, and 309(a) of this Act, is amended—

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

14 (51);

15 (2) by striking the period at the end of para16 graph (52) and inserting ‘‘; and’’; and

17 (3) by inserting after paragraph (52) the fol18 lowing:

19 ‘‘(53) require the State agency to provide to the

20 Immigration and Naturalization Service the name,

21 address, and other identifying information that the

22 agency has with respect to any individual unlawfully

23 in the United States any of whose children is a citi24 zen of the United States.’’.
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1 TITLE VII—CONTROLLING

2 WELFARE COSTS

3 SEC. 701. CAPS ON CERTAIN MEANS-TESTED PROGRAMS.

4 (a) CONTENT OF BUDGET RESOLUTIONS.—Section

5 301(a) of the Congressional Budget Act of 1974 is amend6 ed by adding at the end the following new sentence: ‘‘The

7 concurrent resolution shall also include an aggregate out8 lay figure for all covered means-tested programs and an

9 outlay limit for each such means-tested program that re10 stricts the aggregate rate of growth, adjusted for inflation,

11 for all such means-tested programs to 2 percent per fiscal

12 year. Inflation shall be measured by the average of the

13 estimated consumer price index for all urban consumers

14 for a fiscal year divided by the average index for the prior

15 fiscal year.’’.

16 (b) COMMITTEE ALLOCATIONS.—(1) Section

17 602(a)(1)(A) of the Congressional Budget Act of 1974 is

18 amended by striking ‘‘and’’ at the end of clause (ii), by

19 striking the semicolon and inserting ‘‘, and’’ at the end

20 of clause (iii), and by adding after clause (iii) the following

21 new clause:

22 ‘‘(iv) total outlays for all covered

23 means-tested programs (as defined by sec24 tion 253A of the Balanced Budget and

25 Emergency Deficit Control Act of 1985);’’.
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1 (2) Section 602(a)(2) of the Congressional Budget

2 Act of 1974 is amended by striking ‘‘and’’ at the end of

3 subparagraph (B), by inserting ‘‘and’’ at the end of sub4 paragraph (C), and by adding after subparagraph (C) the

5 following new subparagraph:

6 ‘‘(D) total outlays for all covered means7 tested programs (as defined by section 253A of

8 the Balanced Budget and Emergency Deficit

9 Control Act of 1985);’’.

10 (c) PRESIDENT’S BUDGET.—Section 1105(a) of title

11 31, United States Code, is amended by adding at the end

12 the following new paragraph:

13 ‘‘(29) an aggregate outlay figure for all covered

14 means-tested programs (as defined by section 253A

15 of the Balanced Budget and Emergency Deficit Con16 trol Act of 1985) and an outlay limit for each such

17 means-tested program that restricts the aggregate

18 rate of growth, adjusted for inflation, for all such

19 means-tested programs to 2 percent per fiscal

20 year.’’.

21 SEC. 702. SEQUESTRATION OF FEDERAL SPENDING TO EN22 FORCE SPENDING CAPS ON MEANS-TESTED

23 PROGRAMS.

24 (a) SEQUESTRATION TO ENFORCE SPENDING CAPS

25 ON MEANS-TESTED PROGRAMS.—Part C of the Balanced
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1 Budget and Emergency Deficit Control Act of 1985 is

2 amended by adding after section 253 the following new

3 section:

4 ‘‘SEC. 253A. SEQUESTRATION TO ENFORCE SPENDING CAPS

5 ON MEANS-TESTED PROGRAMS.

6 ‘‘(a) SEQUESTRATION.—

7 ‘‘(1) IN GENERAL.—Within 15 days after Con8 gress adjourns to end a session, and on the same

9 day as a sequestration (if any) under sections 251,

10 252, and 253, but after any sequestration required

11 by those sections, following the procedures set forth

12 under section 252 there shall be a sequestration of

13 all accounts for covered means-tested programs to

14 achieve reductions in the fiscal year 1994, 1995,

15 1996, 1997, or 1998 outlays, as the case may be,

16 sufficient to eliminate a budget-year breach (if any)

17 of the aggregate spending cap on covered means18 tested programs for that fiscal year as calculated

19 under paragraph (2).

20 ‘‘(2) COMPUTATION OF AGGREGATE SPENDING

21 CAP ON COVERED MEANS-TESTED PROGRAMS.—

22 Within 5 days after Congress adjourns to end a ses23 sion, OMB shall calculate an aggregate outlay figure

24 for all covered means-tested programs and an outlay

25 limit for each such means-tested program that re-
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1 stricts the aggregate rate of growth, adjusted for in2 flation, for all such means-tested programs to 2 per3 cent per fiscal year. Inflation shall be measured by

4 the average of the estimated consumer price index

5 for all urban consumers for a fiscal year divided by

6 the average index for the prior fiscal year.’’.

7 ‘‘(b) APPLICABILITY.—Following the procedures set

8 forth under section 252, each account for a covered

9 means-tested program shall be reduced by a dollar amount

10 calculated by multiplying the level of budgetary resources

11 in that account at that time by the uniform percentage

12 necessary to carry out subsection (a).

13 ‘‘(c) DEFINITION.—As used in this section, the term

14 ‘covered means-tested program’ refers to the following:

15 ‘‘(1) Payments to States under the program of

16 aid to families with dependent children under part A

17 of title IV of the Social Security Act.

18 ‘‘(2) The program of supplemental security in19 come benefits under title XVI of the Social Security

20 Act.

21 ‘‘(3) The food stamp program.

22 ‘‘(4) The rental assistance program under sec23 tion 8 of the United States Housing Act of 1937.

24 ‘‘(5) Assistance for public housing under the

25 United States Housing Act of 1937.
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1 ‘‘(6) The earned income tax credit.

2 ‘‘(d) OMB REPORT.—On the date specified in sub3 section (a), OMB shall issue a special sequestration report

4 that sets forth the sequestration percentage necessary to

5 achieve the required reduction in accounts under this

6 section.

7 ‘‘(e) PRESIDENTIAL ORDER.—On the date specified

8 in subsection (a), the President shall issue an order fully

9 implementing without change all sequestrations required

10 by the OMB calculations set forth in that report. This

11 order shall be effective on issuance.’’.

12 (b) SCOREKEEPING.—None of the changes in receipts

13 and direct spending resulting from this Act shall be en14 tered on the paygo scorecard under section 252 of the Bal15 anced Budget and Emergency Deficit Control Act of 1985

16 and none of the savings in fiscal year 1994 discretionary

17 outlays made by this Act shall be counted for the purposes

18 of section 251 of that Act.

19 TITLE VIII—CONSOLIDATED

20 BLOCK GRANT TO STATES

21 FOR FOOD ASSISTANCE

22 SEC. 801. FOOD ASSISTANCE BLOCK GRANT PROGRAM.

23 (a) AUTHORITY TO MAKE BLOCK GRANTS.—The

24 Secretary of Agriculture shall make grants in accordance

25 with this section to States to provide food assistance to
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1 individuals who are economically disadvantaged and to in2 dividuals who are members of economically disadvantaged

3 families.

4 (b) DISTRIBUTION OF FUNDS.—

5 (1) ALLOTMENTS TO STATES.—Subject to para6 graph (2), the funds appropriated to carry out this

7 section for any fiscal year shall be allotted among

8 the States as follows:

9 (A) Of the aggregate amount to be distrib10 uted under this section, .21 percent shall be re11 served for grants to Guam, the Virgin Islands

12 of the United States, American Samoa, the

13 Commonwealth of the Northern Mariana Is14 lands, the Republic of the Marshall Islands, the

15 Federated States of Micronesia, Palau.

16 (B) Of the aggregate amount to be distrib17 uted under this section, .24 percent shall be re18 served for grants to tribal organizations that

19 have governmental jurisdiction over geographi20 cally defined areas and shall be allocated equi21 tably by the Secretary among such organiza22 tions.

23 (C) The remainder of such aggregate

24 amount shall be allocated among the remaining

25 States. The amount allocated to each of the re-
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1 maining States shall bear the same proportion

2 to such remainder as the number of resident in3 dividuals in such State who are economically

4 disadvantaged separately or as members of eco5 nomically disadvantaged families bears to the

6 aggregate number of resident individuals in all

7 such remaining States who are economically

8 disadvantaged separately or as members of eco9 nomically disadvantaged families.

10 (2) LIMITATION.—After September 30, 1995,

11 the aggregate amount allotted under paragraph (1)

12 for any fiscal year shall not exceed the aggregate

13 amount allotted under paragraph (1) for the then

14 preceding fiscal year adjusted by the Secretary to re15 flect—

16 (A) the percentage change in population

17 during the 1-year period ending June 30 of

18 such preceding fiscal year, determined on the

19 basis of the most current information available

20 in the Current Population Reports, P25 series

21 (as adjusted to include overseas members of the

22 armed forces of the United States), published

23 by the Bureau of the Census, and

24 (B) the percentage change in the food at

25 home component of the Consumer Price Index
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1 For All Urban Consumers for the 1-year period

2 ending May 31 of such preceding fiscal year,

3 (b) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi4 ble to receive a grant in the amount allotted to a State

5 for a fiscal year, such State shall submit to the Secretary

6 an application in such form, and containing such informa7 tion and assurances as the Secretary may require by rule,

8 including—

9 (1) an assurance that such grant will be ex10 pended by the State to provide food assistance to

11 resident individuals in such State who are economi12 cally disadvantaged separately or as members of eco13 nomically disadvantaged families,

14 (2) not more than 5 percent of such grant will

15 be expended by the State for administrative costs in16 curred to provide assistance under this section,

17 (3) not less than 12 percent of each grant re18 ceived from funds allotted for fiscal years 1995

19 through 1999 will be expended to provide food as20 sistance and nutrition education to pregnant women,

21 postpartum women, breastfeeding women, infants,

22 and young children, and

23 (4) not less than 20 percent of each grant re24 ceived from funds allotted for fiscal years 1995

25 through 1999 will be expended to provide—
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1 (A) nonprofit school breakfast programs

2 for students from economically disadvantaged

3 families,

4 (B) milk in nonprofit schools and in non5 profit nursery schools, child care centers, settle6 ment houses, summer camps, and similar insti7 tutions devoted to the care and training of chil8 dren, to children from economically disadvan9 taged families,

10 (C) nonprofit school lunch programs for

11 students from economically disadvantaged fami12 lies,

13 (D) expanded food service programs in in14 stitutions providing child care for children from

15 economically disadvantaged families, and

16 (E) summer food service programs carried

17 out by nonprofit food authorities, local govern18 ments, nonprofit higher education insititutions

19 participating in the National Youth Sports Pro20 gram, and residential nonprofit summer camps,

21 to provide meals to children from economically

22 disadvantaged families.

23 (c) AUTHORITY TO REDUCE CERTAIN GRANTS RE24 QUIREMENTS.—At the request of a State for a particular

25 fiscal year, the Secretary may reduce a percentage require-
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1 ment specified in paragraph (3) or (4) of subsection (b)

2 if the Secretary determines that the purpose described in

3 such paragraph will be adequately carried out by such

4 State without expending the full amount of funds required

5 by such paragraph.

6 (d) AUTHORIZATION OF APPROPRIATIONS.—(1)

7 There are authorized to be appropriated to carry out this

8 section $35,600,000,000 for fiscal year 1995 and such

9 sums as may be necessary for fiscal years 1996, 1997,

10 1998, and 1999.

11 (2) For the purpose of affording adequate notice of

12 funding available under this section, an appropriation to

13 carry out this section is authorized to be included in an

14 appropriation Act for the fiscal year preceding the fiscal

15 year for which such appropriation is available for obliga16 tion.

17 SEC. 802. AVAILABILITY OF FEDERAL COUPON SYSTEM TO

18 STATES.

19 (a) ISSUANCE, PURCHASE, AND USE OF COUPONS.—

20 The Secretary shall issue, and make available for purchase

21 by States, coupons for the retail purchase of food from

22 retail food stores that are approved in accordance with

23 subsection (b). Coupons issued, purchased, and used as

24 provided in this section shall be redeemable at face value

25 by the Secretary through the facilities of the Treasury of
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1 the United States. The purchase price of each coupon is2 sued under this subsection shall be the face value of such

3 coupon.

4 (b) APPROVAL OF RETAIL FOOD STORES AND

5 WHOLESALE FOOD CONCERNS.—(1) Regulations issued

6 pursuant to this section shall provide for the submission

7 of applications for approval by retail food stores and

8 wholesale food concerns which desire to be authorized to

9 accept and redeem coupons under this section. In deter10 mining the qualifications of applicants, there shall be con11 sidered among such other factors as may be appropriate,

12 the following:

13 (A) The nature and extent of the food business

14 conducted by the applicant.

15 (B) The volume of coupon business which may

16 reasonably be expected to be conducted by the appli17 cant food store or wholesale food concern.

18 (C) The business integrity and reputation of

19 the applicant.

20 Approval of an applicant shall be evidenced by the issu21 ance to such applicant of a nontransferable certificate of

22 approval. The Secretary is authorized to issue regulations

23 providing for a periodic reauthorization of retail food

24 stores and wholesale food concerns.
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1 (2) A buyer or transferee (other than a bona fide

2 buyer or transferee) of a retail food store or wholesale food

3 concern that has been disqualified under subsection (d)

4 may not accept or redeem coupons until the Secretary re5 ceives full payment of any penalty imposed on such store

6 or concern.

7 (3) Regulations issued pursuant to this section shall

8 require an applicant retail food store or wholesale food

9 concern to submit information which will permit a deter10 mination to be made as to whether such applicant quali11 fies, or continues to qualify, for approval under this sec12 tion or the regulations issued pursuant to this section.

13 Regulations issued pursuant to this section shall provide

14 for safeguards which limit the use or disclosure of infor15 mation obtained under the authority granted by this sub16 section to purposes directly connected with administration

17 and enforcement of this section or the regulations issued

18 pursuant to this section, except that such information may

19 be disclosed to and used by States that purchase such

20 coupons.

21 (4) Any retail food store or wholesale food concern

22 which has failed upon application to receive approval to

23 participate in the food stamp program may obtain a hear24 ing on such refusal as provided in subsection (f).
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1 (c) REDEMPTION OF COUPONS.—Regulations issued

2 under this section shall provide for the redemption of cou3 pons accepted by retail food stores through approved

4 wholesale food concerns or through financial institutions

5 which are insured by the Federal Deposit Insurance Cor6 poration, or which are insured under the Federal Credit

7 Union Act (12 U.S.C. 1751 et seq.) and have retail food

8 stores or wholesale food concerns in their field of member9 ship, with the cooperation of the Treasury Department,

10 except that retail food stores defined in section 804(9)(D)

11 shall be authorized to redeem their members’ food coupons

12 prior to receipt by the members of the food so purchased,

13 and publicly operated community mental health centers or

14 private nonprofit organizations or institutions which serve

15 meals to narcotics addicts or alcoholics in drug addiction

16 or alcoholic treatment and rehabilitation programs, public

17 and private nonprofit shelters that prepare and serve

18 meals for battered women and children, public or private

19 nonprofit group living arrangements that serve meals to

20 disabled or blind residents, and public or private nonprofit

21 establishments, or public or private nonprofit shelters that

22 feed individuals who do not reside in permanent dwellings

23 and individuals who have no fixed mailing addresses shall

24 not be authorized to redeem coupons through financial in25 stitutions which are insured by the Federal Deposit Insur-
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1 ance Corporation or the Federal Credit Union Act. No fi2 nancial institution may impose on or collect from a retail

3 food store a fee or other charge for the redemption of cou4 pons that are submitted to the financial institution in a

5 manner consistent with the requirements, other than any

6 requirements relating to cancellation of coupons, for the

7 presentation of coupons by financial institutions to the

8 Federal Reserve banks.

9 (d) CIVIL MONEY PENALTIES AND DISQUALIFICA10 TION OF RETAIL FOOD STORES AND WHOLESALE FOOD

11 CONCERNS.—(1) Any approved retail food store or whole12 sale food concern may be disqualified for a specified period

13 of time from further participation in the coupon program

14 under this section, or subjected to a civil money penalty

15 of up to $10,000 for each violation if the Secretary deter16 mines that its disqualification would cause hardship to in17 dividuals who receive coupons, on a finding, made as speci18 fied in the regulations, that such store or concern has vio19 lated this section or the regulations issued pursuant to this

20 section.

21 (2) Disqualification under paragraph (1) shall be—

22 (A) for a reasonable period of time, of no less

23 than 6 months nor more than 5 years, upon the first

24 occasion of disqualification;
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1 (B) for a reasonable period of time, of no less

2 than 12 months nor more than 10 years, upon the

3 second occasion of disqualification; and

4 (C) permanent upon—

5 (i) the third occasion of disqualification,

6 (ii) the first occasion or any subsequent oc7 casion of a disqualification based on the pur8 chase of coupons or trafficking in coupons by a

9 retail food store or wholesale food concern, ex10 cept that the Secretary shall have the discretion

11 to impose a civil money penalty of up to

12 $20,000 for each violation (except that the

13 amount of civil money penalties imposed for

14 violations occurring during a single investiga15 tion may not exceed $40,000) in lieu of dis16 qualification under this subparagraph, for such

17 purchase of coupons or trafficking in coupons

18 that constitutes a violation of this section or the

19 regulations issued pursuant to this section, if

20 the Secretary determines that there is substan21 tial evidence (including evidence that neither

22 the ownership nor management of the store or

23 food concern was aware of, approved, benefited

24 from, or was involved in the conduct or ap25 proval of the violation) that such store or food
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1 concern had an effective policy and program in

2 effect to prevent violations of this section and

3 such regulations, or

4 (iii) a finding of the sale of firearms, am5 munition, explosives, or controlled substance (as

6 defined in section 802 of title 21, United States

7 Code) for coupons, except that the Secretary

8 shall have the discretion to impose a civil money

9 penalty of up to $20,000 for each violation (ex10 cept that the amount of civil money penalties

11 imposed for violations occurring during a single

12 investigation may not exceed $40,000) in lieu of

13 disqualification under this subparagraph if the

14 Secretary determines that there is substantial

15 evidence (including evidence that neither the

16 ownership nor management of the store or food

17 concern was aware of, approved, benefited from,

18 or was involved in the conduct or approval of

19 the violation) that the store or food concern had

20 an effective policy and program in effect to pre21 vent violations of this section.

22 (3) The action of disqualification or the imposition

23 of a civil money penalty shall be subject to review as pro24 vided in subsection (f).
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1 (4) As a condition of authorization to accept and re2 deem coupons issued under subsection (a), the Secretary

3 may require a retail food store or wholesale food concern

4 which has been disqualified or subjected to a civil penalty

5 pursuant to paragraph (1) to furnish a bond to cover the

6 value of coupons which such store or concern may in the

7 future accept and redeem in violation of this section. The

8 Secretary shall, by regulation, prescribe the amount,

9 terms, and conditions of such bond. If the Secretary finds

10 that such store or concern has accepted and redeemed cou11 pons in violation of this section after furnishing such bond,

12 such store or concern shall forfeit to the Secretary an

13 amount of such bond which is equal to the value of cou14 pons accepted and redeemed by such store or concern in

15 violation of this section. Such store or concern may obtain

16 a hearing on such forfeiture pursuant to subsection (f).

17 (5)(A) In the event any retail food store or wholesale

18 food concern that has been disqualified under paragraph

19 (1) is sold or the ownership thereof is otherwise trans20 ferred to a purchaser or transferee, the person or persons

21 who sell or otherwise transfer ownership of the retail food

22 store or wholesale food concern shall be subjected to a civil

23 money penalty in an amount established by the Secretary

24 through regulations to reflect that portion of the disquali25 fication period that has not yet expired. If the retail food
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1 store or wholesale food concern has been disqualified per2 manently, the civil money penalty shall be double the pen3 alty for a ten-year disqualification period, as calculated

4 under regulations issued by the Secretary. The disquali5 fication period imposed under paragraph (2) shall con6 tinue in effect as to the person or persons who sell or oth7 erwise transfer ownership of the retail food store or whole8 sale food concern notwithstanding the imposition of a civil

9 money penalty under this paragraph.

10 (B) At any time after a civil money penalty imposed

11 under subparagraph (A) has become final under sub12 section (f)(1), the Secretary may request the Attorney

13 General to institute a civil action against the person or

14 persons subject to the penalty in a district court of the

15 United States for any district in which such person or per16 sons are found, reside, or transact business to collect the

17 penalty and such court shall have jurisdiction to hear and

18 decide such action. In such action, the validity and amount

19 of such penalty shall not be subject to review.

20 (C) The Secretary may impose a fine against any re21 tail food store or wholesale food concern that accepts cou22 pons that are not accompanied by the corresponding book

23 cover, other than the denomination of coupons used for

24 making change as specified in regulations issued under

25 this section. The amount of any such fine shall be estab-
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1 lished by the Secretary and may be assessed and collected

2 in accordance with regulations issued under this section

3 separately or in combination with any fiscal claim estab4 lished by the Secretary. The Attorney General of the Unit5 ed States may institute judicial action in any court of com6 petent jurisdiction against the store or concern to collect

7 the fine.

8 (6) The Secretary may impose a fine against any per9 son not approved by the Secretary to accept and redeem

10 coupons who violates this section or a regulation issued

11 under this section, including violations concerning the ac12 ceptance of coupons. The amount of any such fine shall

13 be established by the Secretary and may be assessed and

14 collected in accordance with regulations issued under this

15 section separately or in combination with any fiscal claim

16 established by the Secretary. The Attorney General of the

17 United States may institute judicial action in any court

18 of competent jurisdiction against the person to collect the

19 fine.

20 (e) COLLECTION AND DISPOSITION OF CLAIMS.—The

21 Secretary shall have the power to determine the amount

22 of and settle and adjust any claim and to compromise or

23 deny all or part of any such claim or claims arising under

24 this section or the regulations issued pursuant to this sec25 tion, including, but not limited to, claims arising from
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1 fraudulent and nonfraudulent overissuances to recipients,

2 including the power to waive claims if the Secretary deter3 mines that to do so would serve the purposes of this sec4 tion. Such powers with respect to claims against recipients

5 may be delegated by the Secretary to State agencies.

6 (f) ADMINISTRATIVE AND JUDICIAL REVIEW.—(1)

7 Whenever—

8 (A) an application of a retail food store or

9 wholesale food concern for approval to accept and

10 redeem coupons issued under subsection (a) is de11 nied pursuant to this section,

12 (B) a retail food store or wholesale food con13 cern is disqualified or subjected to a civil money

14 penalty under subsection (d),

15 (C) all or part of any claim of a retail food

16 store or wholesale food concern is denied under sub17 section (e), or

18 (D) a claim against a State is stated pursuant

19 to subsection (e),

20 notice of such administrative action shall be issued to the

21 retail food store, wholesale food concern, or State involved.

22 Such notice shall be delivered by certified mail or personal

23 service. If such store, concern, or State is aggrieved by

24 such action, it may, in accordance with regulations pro25 mulgated under this section, within 10 days of the date
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1 of delivery of such notice, file a written request for an

2 opportunity to submit information in support of its posi3 tion to such person or persons as the regulations may des4 ignate. If such a request is not made or if such store, con5 cern, or State fails to submit information in support of

6 its position after filing a request, the administrative deter7 mination shall be final. If such request is made by such

8 store, concern, or State such information as may be sub9 mitted by such store, concern, or State as well as such

10 other information as may be available, shall be reviewed

11 by the person or persons designated by the Secretary, who

12 shall, subject to the right of judicial review hereinafter

13 provided, make a determination which shall be final and

14 which shall take effect 30 days after the date of the deliv15 ery or service of such final notice of determination. If such

16 store, concern, or State feels aggrieved by such final deter17 mination, it may obtain judicial review thereof by filing

18 a complaint against the United States in the United

19 States court for the district in which it resides or is en20 gaged in business, or, in the case of a retail food store

21 or wholesale food concern, in any court of record of the

22 State having competent jurisdiction, within 30 days after

23 the date of delivery or service of the final notice of deter24 mination upon it, requesting the court to set aside such

25 determination. The copy of the summons and complaint
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1 required to be delivered to the official or agency whose

2 order is being attacked shall be sent to the Secretary or

3 such person or persons as the Secretary may designate

4 to receive service of process. The suit in the United States

5 district court or State court shall be a trial de novo by

6 the court in which the court shall determine the validity

7 of the questioned administrative action in issue. If the

8 court determines that such administrative action is in9 valid, it shall enter such judgment or order as it deter10 mines is in accordance with the law and the evidence. Dur11 ing the pendency of such judicial review, or any appeal

12 therefrom, the administrative action under review shall be

13 and remain in full force and effect, unless on application

14 to the court on not less than ten days’ notice, and after

15 hearing thereon and a consideration by the court of the

16 applicant’s likelihood of prevailing on the merits and of

17 irreparable injury, the court temporarily stays such ad18 ministrative action pending disposition of such trial or

19 appeal.

20 (g) VIOLATIONS AND ENFORCEMENT.—(1) Subject

21 to paragraph (2), whoever knowingly uses, transfers, ac22 quires, alters, or possesses coupons in any manner con23 trary to this section or the regulations issued pursuant

24 to this section shall, if such coupons are of a value of

25 $5,000 or more, be guilty of a felony and shall be fined
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1 not more than $250,000 or imprisoned for not more than

2 20 years, or both, and shall, if such coupons are of a value

3 of $100 or more, but less than $5,000, be guilty of a fel4 ony and shall, upon the first conviction thereof, be fined

5 not more than $10,000 or imprisoned for not more than

6 5 years, or both, and, upon the second and any subsequent

7 conviction thereof, shall be imprisoned for not less than

8 6 months nor more than 5 years and may also be fined

9 not more than $10,000 or, if such coupons are of a value

10 of less than $100, shall be guilty of a misdemeanor, and,

11 upon the first conviction thereof, shall be fined not more

12 than $1,000 or imprisoned for not more than one year,

13 or both, and upon the second and any subsequent convic14 tion thereof, shall be imprisoned for not more than one

15 year and may also be fined not more than $1,000.

16 (2) In the case of any individual convicted of an of17 fense under paragraph (1), the court may permit such in18 dividual to perform work approved by the court for the

19 purpose of providing restitution for losses incurred by the

20 United States and the State as a result of the offense for

21 which such individual was convicted. If the court permits

22 such individual to perform such work and such individual

23 agrees thereto, the court shall withhold the imposition of

24 the sentence on the condition that such individual perform
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1 the assigned work. Upon the successful completion of the

2 assigned work the court may suspend such sentence.

3 (3) Whoever presents, or causes to be presented, cou4 pons for payment or redemption of the value of $100 or

5 more, knowing the same to have been received, trans6 ferred, or used in any manner in violation of this section

7 or the regulations issued under to this section, shall be

8 guilty of a felony and, upon the first conviction thereof,

9 shall be fined not more than $20,000 or imprisoned for

10 not more than 5 years, or both, and, upon the second and

11 any subsequent conviction thereof, shall be imprisoned for

12 not less than one year nor more than 5 years and may

13 also be fined not more than $20,000, or, if such coupons

14 are of a value of less than $100, shall be guilty of a mis15 demeanor and, upon the first conviction thereof, shall be

16 fined not more than $1,000 or imprisoned for not more

17 than one year, or both, and, upon the second and any sub18 sequent conviction thereof, shall be imprisoned for not

19 more than one year and may also be fined not more than

20 $1,000.

21 SEC. 803. AUTHORITY TO SELL FEDERAL SURPLUS COM22 MODITIES.

23 Notwithstanding any other provision of law, the Sec24 retary of Agriculture and the Commodity Credit Corpora25 tion may sell surplus commodities and surplus foodstuffs
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1 to the States to provide food assistance to individuals who

2 are economically disadvantaged and to individuals who are

3 members of economically disadvantaged families.

4 SEC. 804. DEFINITIONS.

5 For purposes of this title—

6 (1) the term ‘‘breastfeeding woman’’ means

7 women up to 1 year postpartum who are

8 breastfeeding their infants,

9 (2) the term ‘‘coupon’’ means any coupon,

10 stamp, or type of certificate, but does not include

11 currency,

12 (3) the term ‘‘economically disadvantaged’’

13 means an individual or a family, as the case may be,

14 whose income does not exceed the most recent lower

15 living standard income level published by the De16 partment of Labor,

17 (4) the term ‘‘elderly or disabled individual’’

18 means an individual who—

19 (A) is 60 years of age or older,

20 (B)(i) receives supplemental security in21 come benefits under title XVI of the Social Se22 curity Act (42 U.S.C. 1381 et seq.), or Feder23 ally or State administered supplemental benefits

24 of the type described in section 212(a) of Public

25 Law 93–66 (42 U.S.C. 1382 note), or
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1 (ii) receives Federally or State adminis2 tered supplemental assistance of the type de3 scribed in section 1616(a) of the Social Security

4 Act (42 U.S.C. 1382e(a)), interim assistance

5 pending receipt of supplemental security in6 come, disability-related medical assistance

7 under title XIX of the Social Security Act (42

8 U.S.C. 1396 et seq.), or disability-based State

9 general assistance benefits, if the Secretary de10 termines that such benefits are conditioned on

11 meeting disability or blindness criteria at least

12 as stringent as those used under title XVI of

13 the Social Security Act,

14 (C) receives disability or blindness pay15 ments under title I, II, X, XIV, or XVI of the

16 Social Security Act (42 U.S.C. 301 et seq.) or

17 receives disability retirement benefits from a

18 governmental agency because of a disability

19 considered permanent under section 221(i) of

20 the Social Security Act (42 U.S.C. 421(i)),

21 (D) is a veteran who—

22 (i) has a service-connected or non23 service-connected disability which is rated

24 as total under title 38, United States Code,

25 or
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1 (ii) is considered in need of regular

2 aid and attendance or permanently house3 bound under such title,

4 (E) is a surviving spouse of a veteran

5 and—

6 (i) is considered in need of regular aid

7 and attendance or permanently house8 bound under title 38, United States Code,

9 or

10 (ii) is entitled to compensation for a

11 service-connected death or pension benefits

12 for a non-service-connected death under

13 title 38, United States Code, and has a

14 disability considered permanent under sec15 tion 221(i) of the Social Security Act (42

16 U.S.C. 421(i)),

17 (F) is a child of a veteran and—

18 (i) is considered permanently incapa19 ble of self-support under section 414 of

20 title 38, United States Code, or

21 (ii) is entitled to compensation for a

22 service-connected death or pension benefits

23 for a non-service-connected death under

24 title 38, United States Code, and has a

25 disability considered permanent under sec-
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1 tion 221(i) of the Social Security Act (42

2 U.S.C. 421(i)), or

3 (G) is an individual receiving an annuity

4 under section 2(a)(1)(iv) or 2(a)(1)(v) of the

5 Railroad Retirement Act of 1974 (45 U.S.C.

6 231a(a)(1)(iv) or 231a(a)(1)(v)), if the individ7 ual’s service as an employee under the Railroad

8 Retirement Act of 1974, after December 31,

9 1936, had been included in the term ‘‘employ10 ment’’ as defined in the Social Security Act (42

11 U.S.C. 301 et seq.), and if an application for

12 disability benefits had been filed,

13 (5) the term ‘‘food’’ means, for purposes of sec14 tion 3 only—

15 (A) any food or food product for home con16 sumption except alcoholic beverages, tobacco,

17 and hot foods or hot food products ready for

18 immediate consumption other than those au19 thorized pursuant to subparagraphs (C), (D),

20 (E), (G), (H), and (I),

21 (B) seeds and plants for use in gardens to

22 produce food for the personal consumption of

23 the eligible individuals,

24 (C) in the case of those persons who are

25 60 years of age or over or who receive supple-
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1 mental security income benefits or disability or

2 blindness payments under title I, II, X, XIV, or

3 XVI of the Social Security Act (42 U.S.C. 1381

4 et seq.), and their spouses, meals prepared by

5 and served in senior citizens’ centers, apart6 ment buildings occupied primarily by such per7 sons, public or private nonprofit establishments

8 (eating or otherwise) that feed such persons,

9 private establishments that contract with the

10 appropriate agency of the State to offer meals

11 for such persons at concessional prices, and

12 meals prepared for and served to residents of

13 federally subsidized housing for the elderly,

14 (D) in the case of persons 60 years of age

15 or over and persons who are physically or men16 tally handicapped or otherwise so disabled that

17 they are unable adequately to prepare all of

18 their meals, meals prepared for and delivered to

19 them (and their spouses) at their home by a

20 public or private nonprofit organization or by a

21 private establishment that contracts with the

22 appropriate State agency to perform such serv23 ices at concessional prices,

24 (E) in the case of narcotics addicts or alco25 holics, and their children, served by drug addic-
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1 tion or alcoholic treatment and rehabilitation

2 programs, meals prepared and served under

3 such programs,

4 (F) in the case of eligible individuals living

5 in Alaska, equipment for procuring food by

6 hunting and fishing, such as nets, hooks, rods,

7 harpoons, and knives (but not equipment for

8 purposes of transportation, clothing, or shelter,

9 and not firearms, ammunition, and explosives)

10 if the Secretary determines that such individ11 uals are located in an area of the State where

12 it is extremely difficult to reach stores selling

13 food and that such individuals depend to a sub14 stantial extent upon hunting and fishing for

15 subsistence,

16 (G) in the case of disabled or blind recipi17 ents of benefits under title I, II, X, XIV, or

18 XVI of the Social Security Act, or are individ19 uals described in subparagraphs (B) through

20 (G) of paragraph (4), who are residents in a

21 public or private nonprofit group living arrange22 ment that serves no more than 16 residents and

23 is certified by the appropriate State agency or

24 agencies under regulations issued under section

25 1616(e) of the Social Security Act or under
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1 standards determined by the Secretary to be

2 comparable to standards implemented by appro3 priate State agencies under such section (42

4 U.S.C. 1382e(e)), meals prepared and served

5 under such arrangement,

6 (H) in the case of women and children

7 temporarily residing in public or private non8 profit shelters for battered women and children,

9 meals prepared and served, by such shelters,

10 and

11 (I) in the case of individuals that do not

12 reside in permanent dwellings and individuals

13 that have no fixed mailing addresses, meals pre14 pared for and served by a public or private non15 profit establishment (approved by an appro16 priate State or local agency) that feeds such in17 dividuals and by private establishments that

18 contract with the appropriate agency of the

19 State to offer meals for such individuals at

20 concessional prices,

21 (6) the term ‘‘infants’’ means individuals under

22 1 year of age,

23 (7) the term ‘‘postpartum women’’ means

24 women during the 180-day period after the end of

25 their pregnancy,
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1 (8) the term ‘‘pregnant women’’ means women

2 who have one or more fetuses in utero,

3 (9) the term ‘‘retail food store’’ means—

4 (A) an establishment or recognized depart5 ment thereof or house-to-house trade route,

6 over 50 percent of whose food sales volume, as

7 determined by visual inspection, sales records,

8 purchase records, or other inventory or account9 ing recordkeeping methods that are customary

10 or reasonable in the retail food industry, con11 sists of staple food items for home preparation

12 and consumption, such as meat, poultry, fish,

13 bread, cereals, vegetables, fruits, dairy prod14 ucts, and the like, but not including accessory

15 food items, such as coffee, tea, cocoa, carbon16 ated and uncarbonated drinks, candy, con17 diments, and spices,

18 (B) an establishment, organization, pro19 gram, or group living arrangement referred to

20 in subparagraph (C), (D), (E), (G), (H), or (I)

21 of paragraph (5),

22 (C) a store purveying the hunting and fish23 ing equipment described in paragraph (5)(F),

24 or
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1 (D) any private nonprofit cooperative food

2 purchasing venture, including those in which

3 the members pay for food purchased prior to

4 the receipt of such food,

5 (10) the term ‘‘school’’ means an elementary,

6 intermediate, or secondary school,

7 (11) the term ‘‘Secretary’’ means the Secretary

8 of Agriculture,

9 (12) the term ‘‘State’’ means any of the several

10 States, the District of Columbia, the Commonwealth

11 of Puerto Rico, Guam, the Virgin Islands of the

12 United States, American Samoa, the Commonwealth

13 of the Northern Mariana Islands, the Republic of

14 the Marshall Islands, the Federated States of Micro15 nesia, Palau, or a tribal organization that exercises

16 governmental jurisdiction over a geographically de17 fined area,

18 (13) the term ‘‘tribal organization’’ has the

19 meaning given it in section 4(l) of the Indian Self20 Determination and Education Assistance Act (25

21 U.S.C. 450b(l)), and

22 (14) the term ‘‘young children’’ means individ23 uals who are not less than 1 year of age and not

24 more than 5 years of age.
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1 SEC. 805. REPEALERS; AMENDMENTS.

2 (a) REPEALERS.—The following Acts are repealed:

3 (1) The Food Stamp Act of 1977 (7 U.S.C.

4 2011 et seq.).

5 (2) The Child Nutrition Act (42 U.S.C. 1771 et

6 seq.).

7 (3) The National School Lunch Act (42 U.S.C.

8 1751 et seq.)

9 (4) The Emergency Food Assistance Act of

10 1983 (7 U.S.C. 612c note).

11 (5) The Hunger Prevention Act of 1988 (Public

12 Law 100–435; 102 Stat. 1645).

13 (6) The Commodity Distribution Reform Act

14 and WIC Amendments of 1987 (Public Law 100–

15 237; 101 Stat. 1733).

16 (7) The Child Nutrition and WIC Reauthoriza17 tion Act of 1989 (Public Law 101–147; 103 Stat.

18 877).

19 (b) AMENDMENTS.—

20 (1) The Older Americans Act of 1965 (42

21 U.S.C. 3030a et seq.) is amended by striking sec22 tions 303(b) and 311, and part C of title III.

23 (2) Section 32 of the Act of August 24, 1935

24 (Public Law 320; 7 U.S.C. 612C) is amended—

25 (A) in the first undesignated paragraph—
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1 (i) by striking ‘‘30 per centum’’ and

2 inserting ‘‘1.5 per centum’’, and

3 (ii) by striking ‘‘; (2)’’ and all that

4 follows through ‘‘Agriculture;’’, and

5 (B) by striking the last sentence.

6 (3) The Agriculture and Consumer Protection

7 Act of 1973 (7 U.S.C. 612c note) is amended by

8 striking sections 4 and 5.

9 (4) The Agriculture and Food Act of 1981 (7

10 U.S.C. 1431) is amended by striking section 1114.

11 (5) Section 402 of the Mutual Security Act of

12 1954 (22 U.S.C. 1922) is amended by striking the

13 last sentence.

14 (6) The Act of September 6, 1958 (Public Law

15 83–931; 7 U.S.C. 1431b) is amended by striking

16 section 9.

17 (7) The Agricultural Act of 1965 (7 U.S.C.

18 1446a-1) is amended by striking section 709.

19 SEC. 806. EFFECTIVE DATE; APPLICATION OF REPEALERS

20 AND AMENDMENTS.

21 (a) EFFECTIVE DATES.—

22 (1) GENERAL EFFECTIVE DATE.—Except as

23 provided in subsection (b), this title and the amend24 ments made by this title shall take effect on the date

25 of the enactment of this Act.
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1 (2) SPECIAL EFFECTIVE DATE.—The repeals

2 made by section 805 shall not take effect until the

3 first day of the first fiscal year for which funds are

4 appropriated more than 180 days in advance of such

5 fiscal year to carry out section 801.

6 (b) APPLICATION OF REPEALERS AND AMEND7 MENTS.—The repeals and amendments made by section

8 805 shall not apply with respect to—

9 (1) powers, duties, functions, rights, claims,

10 penalties, or obligations applicable to financial as11 sistance provided under the Acts repealed before the

12 effective date of such section, and

13 (2) administrative actions and proceedings com14 menced before such date, or authorized before such

15 date to be commenced, under such Acts.

16 TITLE IX—MISCELLANEOUS

17 SEC. 901. AFDC RECIPIENTS REQUIRED TO UNDERGO NEC18 ESSARY SUBSTANCE ABUSE TREATMENT AS A

19 CONDITION OF RECEIVING AFDC.

20 (a) IN GENERAL.—Section 402(a) of the Social Secu21 rity Act (42 U.S.C. 602(a)) is amended by inserting after

22 paragraph (34) the following:

23 ‘‘(35) provide that—

24 ‘‘(A) as a condition of eligibility for aid

25 under the State plan, each applicant or recipi-
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1 ent who the State determines is addicted to al2 cohol or drugs must be required to agree to

3 participate, and must maintain satisfactory par4 ticipation (as determined by the State), in an

5 appropriate addiction treatment program (if

6 available), and must be required to agree to

7 submit to tests for the presence of alcohol or

8 drugs, without advance notice, during and after

9 such participation; and

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

11 to comply with any requirement imposed pursu12 ant to subparagraph (A) shall not be eligible for

13 such aid during the 2-year period that begins

14 with such failure to comply, but shall be consid15 ered to be receiving such aid for purposes of eli16 gibility for medical assistance under the State

17 plan approved under title XIX.’’.

18 (b) EFFECTIVE DATE.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendment made by subsection (a)

21 shall take effect on the date of the enactment of this

22 Act, and shall apply to payments under part A of

23 title IV of the Social Security Act for calendar quar24 ters ending after such date.
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1 (2) DELAY PERMITTED IF STATE LEGISLATION

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

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

4 which the Secretary of Health and Human Services

5 determines requires State legislation (other than leg6 islation appropriating funds) in order for the plan to

7 meet the additional requirement imposed by the

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

9 the State plan shall not be regarded as failing to

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

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

12 such additional requirement before the end of the 2-

13 year period that begins with the date of the enact14 ment of this Act.

15 SEC. 902. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.

16 (a) IN GENERAL.—Section 1614(a) of the Social Se17 curity Act (42 U.S.C. 1382c(a)) is amended by adding at

18 the end the following:

19 ‘‘(5)(A) The Secretary shall identify all recipients of

20 benefits under this title by reason of disability whose dis21 ability is a result of addiction to illegal drugs.

22 ‘‘(B) The Secretary shall periodically, on a random

23 basis, test each recipient identified under subparagraph

24 (A) to determine whether the recipient is using illegal

25 drugs.
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1 ‘‘(C) Notwithstanding any other provision of this

2 title, any individual who is determined under subpara3 graph (B) to be using illegal drugs, or who refuses to sub4 mit to testing as provided for under subparagraph (B),

5 shall not be eligible for benefits under this title.’’.

6 (b) REPRESENTATIVE PAYEE REFORMS.—

7 (1) AUTHORITY OF GOVERNMENT AGENCIES TO

8 BECOME PAID REPRESENTATIVE PAYEES.—Section

9 1631(a)(2)(D)(ii) of such Act (42 U.S.C.

10 1383(a)(2)(D)(ii)) is amended by adding at the end

11 the following: ‘‘The term ‘qualified organization’ also

12 includes any government agency that meets the re13 quirements of items (aa) and (bb) of subclause

14 (II).’’.

15 (2) MAXIMUM FEE PAYABLE TO REPRESENTA16 TIVE PAYEES.—Section 1631(a)(2)(D)(i) of such Act

17 (42 U.S.C. 1383(a)(2)(D)(i)) is amended by striking

18 ‘‘the lesser of—’’ and all that follows and inserting

19 ‘‘10 percent of the monthly benefit involved.’’.

20 SEC. 903. EVALUATION OF EDUCATION AND TRAINING PRO21 GRAMS.

22 (a) IN GENERAL.—The Secretary of Health and

23 Human Services shall conduct research projects to exam24 ine the impact of education and training programs on the

25 ability of individuals to end participation in the program
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1 of aid to families with dependent children under part A

2 of title IV of the Social Security Act, expenditures under

3 such program, wage rates, employment histories, and the

4 resumption of participation in such program of individuals

5 who had ended such participation. The Secretary shall col6 lect information with respect to any individual during a

7 period of not less than 5 years.

8 (b) SPECIAL RULE.—At least 1 research project con9 ducted under subsection (a) shall involve the random as10 signment of adult recipients of aid to families with depend11 ent children under part A of title IV of the Social Security

12 Act among—

13 (1) a group that is not required to participate

14 in any special activity;

15 (2) a group that is required to participate in

16 education or job training programs; and

17 (3) a group that is required to participate in a

18 job search program, or in a job search and a work

19 program.

20 SEC. 904. JOB SEARCH REQUIRED WHILE AFDC APPLICA21 TION IS PENDING.

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

23 602(a)), as amended by sections 201(a)(1), 302, 303, 304,

24 305, 307, 309(a), and 602 of this Act, is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (52);

3 (2) by striking the period at the end of para4 graph (53) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (53) the fol6 lowing:

7 ‘‘(54) unless the State has enacted a law ex8 empting itself from the application of this para9 graph, provide that—

10 ‘‘(A) each applicant for aid under the

11 State plan must participate in job search activi12 ties while the application is pending; and

13 ‘‘(B) the State agency must reimburse the

14 applicant for necessary transportation and child

15 care expenses incurred as a result of such par16 ticipation.’’.

17 SEC. 905. FRAUD AND ADMINISTRATIVE EFFICIENCY.

18 (a) DEMONSTRATION PROJECTS.—

19 (1) IN GENERAL.—The Secretary of Health and

20 Human Services may conduct demonstration

21 projects in several States to determine whether pro22 viding benefits based on need through the use of

23 electronic cards and automatic teller machines would

24 reduce administrative costs and fraud.
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1 (2) REPORT TO THE CONGRESS.—Within 5

2 years after the date of the enactment of this Act, the

3 Secretary shall submit to the Congress a report

4 that—

5 (A) summarizes the results of the projects;

6 and

7 (B) makes recommendations with respect

8 to whether and how more States might be re9 quired or encouraged to use electronic funds

10 transfer in providing benefits based on need.

11 (b) COMMISSION.—

12 (1) IN GENERAL.—The Secretary of Health and

13 Human Services (in this subsection referred to as

14 the ‘‘Secretary’’) shall establish a commission (in

15 this subsection referred to as the ‘‘Commission’’)

16 composed of heads of executive departments, expert

17 private individuals, and State administrators, to de18 termine the cost and feasibility of creating an inter19 state system to compare the social security account

20 numbers of all recipients of aid to families with de21 pendent children under State plans approved under

22 part A of title IV of the Social Security Act, so as

23 to identify any such recipients who are receiving

24 such aid from 2 or more States.

25 (2) BASIC PAY.—
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1 (A) RATES OF PAY.—Except as provided

2 in paragraph (2), members of the Commission

3 shall each be paid at a rate not to exceed $200

4 for each day (including travel time) during

5 which they are engaged in the actual perform6 ance of duties of the Commission.

7 (B) PROHIBITION OF COMPENSATION OF

8 FEDERAL EMPLOYEES.—Each member of the

9 Commission who is a full-time officer or em10 ployee of the United States may not receive ad11 ditional pay, allowances, or benefits by reason

12 of their service on the Commission.

13 (3) TRAVEL EXPENSES.—Each member of the

14 Commission 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 (4) STAFF OF FEDERAL AGENCIES.—Upon re19 quest of the Secretary, the head of any Federal de20 partment or agency may detail, on a reimbursable

21 basis, any of the personnel of that department or

22 agency to the Commission to assist it in carrying out

23 its duties under this subsection.

24 (5) OBTAINING OFFICIAL DATA.—The Commis25 sion may secure directly from any department or
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1 agency of the United States information necessary

2 to enable it to carry out this subsection. Upon re3 quest of the Secretary, the head of that department

4 or agency shall furnish that information to the Com5 mission.

6 (6) MAILS.—The Commission may use the

7 United States mails in the same manner and under

8 the same conditions as other departments and agen9 cies of the United States.

10 (7) ADMINISTRATIVE SUPPORT SERVICES.—

11 Upon request of the Secretary, the Administrator of

12 General Services shall provide to the Commission, on

13 a reimbursable basis, the administrative support

14 services necessary for the Commission to carry out

15 its responsibilities under this subsection.

16 (8) REPORT.—Within 2 years after the date of

17 the enactment of this Act, the Secretary shall submit

18 to the Congress a report that contains the findings

19 of the Commission.

20 (9) TERMINATION OF COMMISSION.—The Com21 mission shall terminate upon submission of the re22 port required by paragraph (8).

23 SEC. 906. PUBLIC HOUSING RENT REFORM.

24 (a) SHORT TITLE.—This section may be cited as the

25 ‘‘Public Housing Rent Reform and Empowerment Act’’.
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1 (b) DETERMINATION OF INCOME AND RENT

2 CHARGES.—

3 (1) EXCLUSION FROM INCOME OF TAXES ON

4 EARNINGS.—Section 3(b)(5) of the United States

5 Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is

6 amended—

7 (A) by redesignating subparagraphs (A)

8 through (G) as subparagraphs (B) through (H),

9 respectively; and

10 (B) by inserting before subparagraph (B)

11 (as so redesignated by subparagraph (A) of this

12 paragraph) the following new subparagraph:

13 ‘‘(A) with respect only to families residing

14 in public housing, the amount of any Federal,

15 State, and local income taxes paid on earned in16 come by members of the family and the amount

17 paid on earned income by members of the fam18 ily for the taxes imposed under sections 3101

19 and 3201(a) of the Internal Revenue Code of

20 1986;’’.

21 (2) PHA OPTION TO EXCLUDE EARNED IN22 COME.—Section 3(b)(5) of the United States Hous23 ing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended

24 by adding at the end the following new flush

25 sentence:
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1 ‘‘At the option of a public housing agency, the agency may

2 (for all families residing in public housing administered

3 by the agency) exclude from consideration as income for

4 purposes of determining any limitation on the amount of

5 rent paid by a family, all or part of any increases in the

6 earned income of a family that results from the employ7 ment of a previously unemployed family member; except

8 that such increases in earned income may be excluded only

9 during the 2-year period beginning on the employment of

10 the family member.’’.

11 (3) APPLICABILITY TO INDIAN PUBLIC HOUS12 ING.—In accordance with section 201(b)(2) of the

13 United States Housing Act of 1937, the provisions

14 of this subsection shall apply to public housing de15 veloped or operated pursuant to a contract between

16 the Secretary and an Indian housing authority.

17 (c) PUBLIC HOUSING AUTHORITY MARKET RENT

18 DEMONSTRATION.—

19 (1) AUTHORITY.—At the request of a public

20 housing agency or resident management corporation,

21 the Secretary of Housing and Urban Development

22 may authorize the agency or corporation to carry out

23 a demonstration program under this subsection to

24 determine the feasibility and desirability of providing

25 public housing agencies and resident management
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•HR 3500 SC

1 corporations the authority to establish policies for

2 the operation, maintenance, management, and devel3 opment (including modernization) of public housing

4 projects administered by the agency, without regard

5 to the requirements under the United States Hous6 ing Act of 1937 applicable to public housing. In es7 tablishing such policies, public housing agencies and

8 resident management corporations shall be subject

9 to the provisions of any applicable State and local

10 laws.

11 (2) REQUIRED FINDINGS.—The Secretary may

12 authorize a public housing agency or resident man13 agement corporation to carry out a demonstration

14 program under this subsection only if the Secretary

15 determines, with respect to the particular dem16 onstration program, that—

17 (A) the program is likely to assist in pro18 moting the objectives of the United States

19 Housing Act of 1937, encourage resident

20 empowerment, and reduce poverty in public

21 housing by improving the means by which eco22 nomic self-sufficiency may be achieved;

23 (B) the program, taken as a whole, will not

24 result in higher costs to the Federal Govern-
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1 ment than would be incurred absent the pro2 gram;

3 (C) the results of the program will be eval4 uated and reported to the Secretary by inde5 pendent entities;

6 (D) no fewer very low-income families will

7 be assisted under the program than would oth8 erwise have been assisted; and

9 (E) the program is consistent with the

10 Fair Housing Act, title VI of the Civil Rights

11 Act of 1964, section 504 of the Rehabilitation

12 Act of 1973, and the Age Discrimination Act of

13 1975.

14 (3) EXCEPTIONS TO PROVISIONS OF UNITED

15 STATES HOUSING ACT OF 1937.—

16 (A) MANDATORY.—Notwithstanding any

17 other provision of law, during the period of the

18 demonstration program (pursuant to subsection

19 (i)) section 3(a) of the United States Housing

20 Act of 1937 (relating to rental amounts for

21 dwelling units in public housing projects), sec22 tions 3(b) (4) and (5) of such Act (relating to

23 determination of income and adjusted income),

24 and section 16 of such Act (relating to income

25 eligibility) shall not apply to any public housing
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1 projects involved in a demonstration program

2 under this subsection or any families residing in

3 such projects. Each public housing authority

4 and resident management corporation carrying

5 out a demonstration program under this sub6 section shall establish rents for dwelling units

7 in projects involved in the demonstration pro8 gram at the discretion of the agency or corpora9 tion.

10 (B) DISCRETIONARY.—The Secretary may

11 exempt a public housing agency or resident

12 management corporation carrying out a dem13 onstration program under this subsection from

14 any other requirements of the United States

15 Housing Act of 1937, and modify the require16 ments of such sections and other provisions

17 with respect to such agencies, that the Sec18 retary determines are not consistent with the

19 purposes of a demonstration program.

20 (4) INCOME ELIGIBILITY.—Not less than 30

21 percent of the total number of dwelling units in pub22 lic housing projects involved in a demonstration pro23 gram carried out under this subsection by a public

24 housing agency or resident management corporation
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•HR 3500 SC

1 shall be available for leasing only to very low-income

2 families.

3 (5) EFFECT ON OPERATING SUBSIDIES.—Not4 withstanding any requirement pursuant to section 9

5 of the United States Housing Act of 1937, the

6 amount of annual contributions provided for a fiscal

7 year under such section to any public housing agen8 cy or resident management corporation carrying out

9 a demonstration program in such fiscal year may

10 not exceed the amount of such annual contributions

11 provided under such section to the agency or cor12 poration for the last fiscal year concluding before

13 the commencement of the demonstration program by

14 the agency or corporation, as adjusted for inflation

15 (as determined by the Secretary).

16 (6) TREATMENT OF FAMILIES UNABLE TO PAY

17 RENTAL CHARGES IN PUBLIC HOUSING.—

18 (A) AUTHORITY TO PROVIDE SECTION 8

19 ASSISTANCE.—Notwithstanding any other provi20 sion of law, in connection with carrying out a

21 demonstration program under this subsection a

22 public housing agency may provide assistance

23 under section 8 of the United States Housing

24 Act of 1937 (to the extent sufficient amounts

25 for such assistance are available to such agen-
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•HR 3500 SC

1 cy) on behalf of any family that (A) resides in

2 a dwelling unit in a public housing project in3 volved in the demonstration program upon the

4 commencement of the demonstration, (B) is

5 otherwise eligible for such assistance, and (C)

6 under section 3(a)(1) of such Act would pay as

7 rent for a dwelling unit assisted under such sec8 tion an amount that is less than the rental

9 charge for the public housing dwelling unit

10 under the demonstration program. Any such as11 sistance provided for such family shall be sub12 ject to the provisions of section 3(a)(1) or 8(o)

13 of such Act, as applicable.

14 (B) USE.—Such assistance may be used in

15 connection with the rental of a public housing

16 dwelling unit or any other dwelling unit eligible

17 for rental using such assistance.

18 (C) PREFERENCE.—Notwithstanding any

19 other provision of law, a public housing agency

20 carrying out a demonstration program under

21 this subsection may give preference in providing

22 assistance under such section 8 to families de23 scribed in subparagraph (A) of this paragraph.

24 (7) SCOPE OF DEMONSTRATIONS.—In authoriz25 ing public housing agencies and resident manage-
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1 ment corporations to carry out demonstration pro2 grams under this subsection, the Secretary shall pro3 vide that the demonstration is carried out with re4 spect to one or more specific public housing projects.

5 (8) NUMBER OF DEMONSTRATIONS.—The Sec6 retary may authorize not more than 50 public hous7 ing agencies or resident management corporations to

8 carry out demonstration programs under this sub9 section.

10 (9) DURATION.—A public housing agency or

11 resident management corporation authorized to

12 carry out a demonstration program under this sub13 section may carry out the demonstration for a pe14 riod, determined by the agency or corporation, of not

15 more than 5 years.

16 (10) LIMITATION.—The number and duration

17 of demonstration programs authorized by the Sec18 retary may not exceed the number and duration nec19 essary to achieve the objectives of this subsection.

20 (11) ADDITIONAL REQUIREMENTS.—In author21 izing a demonstration program under this sub22 section, the Secretary may impose such requirements

23 on the program as the Secretary considers to be ap24 propriate to further its purposes.

25 (12) REPORTS.—
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1 (A) TO SECRETARY.—Each public housing

2 agency and resident management corporation

3 carrying out a demonstration program under

4 this subsection shall submit a report to the Sec5 retary regarding the demonstration for each

6 year in which the demonstration is carried out,

7 as shall be required by the Secretary.

8 (B) TO CONGRESS.—Not later than 6

9 years after the date of the enactment of this

10 Act, the Secretary shall submit a report to the

11 Congress describing and evaluating the dem12 onstration programs carried out under this sub13 section.

14 (13) DEFINITIONS.—For purposes of this sub15 section:

16 (A) PUBLIC HOUSING.—The terms ‘‘public

17 housing’’ and ‘‘project’’ have the meanings

18 given such terms in section 3(b) of the United

19 States Housing Act of 1937.

20 (B) PUBLIC HOUSING AGENCY.—The

21 terms ‘‘public housing agency’’ and ‘‘agency’’

22 have the meanings given the term ‘‘public hous23 ing agency’’ in section 3(b) of the United States

24 Housing Act of 1937.
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1 (C) RESIDENT MANAGEMENT CORPORA2 TION.—The terms ‘‘resident management cor3 poration’’ and ‘‘corporation’’ mean a resident

4 management corporation established in accord5 ance with requirements of the Secretary under

6 section 20 of the United States Housing Act of

7 1937.

8 (D) SECRETARY.—The term ‘‘Secretary’’

9 means the Secretary of Housing and Urban De10 velopment.

11 (E) VERY LOW-INCOME FAMILIES.—The

12 term ‘‘very low-income families’’ has the mean13 ing given the term in section 3(b) of the United

14 States Housing Act of 1937.

15 (14) APPLICABILITY TO INDIAN HOUSING.—In

16 accordance with section 201(b)(2) of the United

17 States Housing Act of 1937, the provisions of this

18 subsection shall apply to public housing developed or

19 operated pursuant to a contract between the Sec20 retary and an Indian housing authority.

21 (d) REGULATIONS.—The Secretary may issue any

22 regulations necessary to carry out this section and the

23 amendments made by this section.

24 (e) BUDGET COMPLIANCE AND EFFECTIVE DATE.—
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1 (1) BUDGET COMPLIANCE.—Notwithstanding

2 subsection (b), this section and the amendments

3 made by this section shall be effective only to the ex4 tent approved, or in such amounts as are provided,

5 in appropriation Acts.

6 (2) EFFECTIVE DATE.—The provisions of this

7 section shall take effect and the amendments under

8 this section shall be made on October 1, 1995.

9 SEC. 907. REQUIRED IMMUNIZATIONS FOR CHILDREN.

10 (a) AFDC BENEFITS DENIED FOR CHILDREN WHO

11 HAVE NOT RECEIVED PREVENTIVE HEALTH CARE OR

12 IMMUNIZATIONS.—

13 (1) IN GENERAL.—Section 402(a) of the Social

14 Security Act (42 U.S.C. 602(a)), as amended by sec15 tions 201(a)(1), 302, 303, 304, 305, 307, 309(a),

16 602, and 904 of this Act, is amended—

17 (A) by striking ‘‘and’’ at the end of para18 graph (53);

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

20 paragraph (54) and inserting ‘‘; and’’; and

21 (C) by inserting after paragraph (54) the

22 following:

23 ‘‘(55) provide that—

24 ‘‘(A) aid under the plan shall not be pay25 able with respect to any child who has not at-
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1 tained the age of 6 years, unless the State

2 agency has received from 1 or more physicians

3 written verification (on a form prescribed by the

4 State)—

5 ‘‘(i) that the child has been examined

6 by a physician not less frequently than—

7 ‘‘(I) in the case of a child who

8 has not attained the age of 19

9 months, every 6 months since the

10 child was born; and

11 ‘‘(II) in the case of any other

12 child, every 6 months until the child

13 attained the age of 19 months, and

14 every year thereafter;

15 ‘‘(ii) that the child has been immu16 nized in accordance with recommendations

17 issued by the Surgeon General of the Pub18 lic Health Service; and

19 ‘‘(iii) of any contraindication which

20 exempts the child from receiving an immu21 nization;

22 ‘‘(B) the State will conduct appropriate

23 education and outreach activities designed to—
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1 ‘‘(i) increase public awareness of the

2 importance of preventive health care and

3 immunizations for pre-school children; and

4 ‘‘(ii) inform the public about—

5 ‘‘(I) the availability of preventive

6 health care and immunization services

7 for pre-school children;

8 ‘‘(II) any transportation, child

9 care, or other support services that

10 may be available to assist parents in

11 obtaining such services for their chil12 dren; and

13 ‘‘(III) the clinics at which any

14 child may receive immunizations free

15 or at a reduced charge.’’.

16 (2) APPLICABILITY.—The amendments made

17 by paragraph (1) shall apply to—

18 (A) payments to individuals under State

19 plan approved under part A of title IV of the

20 Social Security Act, for months beginning on or

21 after October 1, 1995; and

22 (B) payments to States under such part

23 for calendar quarters beginning on or after Oc24 tober 1, 1995.
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1 (b) AMENDMENTS TO THE CHILD CARE AND DEVEL2 OPMENT BLOCK GRANT.—

3 (1) IN GENERAL.—Section 658E(2) of the

4 Child Care and Development Block Grant Act (42

5 U.S.C. 9858c(2)) is amended—

6 (A) in subparagraph (F)—

7 (i) in clause (ii) by striking ‘‘and’’ at

8 the end;

9 (ii) in clause (iii) by striking the pe10 riod at the end and inserting ‘‘; and’’;

11 (iii) by inserting after subclause (III),

12 as so redesignated, the following:

13 ‘‘(iv) a requirement that such provid14 ers require with respect to each child who

15 receives child care services from any of

16 such providers that certificates signed by a

17 physician who verifies that such child has

18 been immunized in accordance with rec19 ommendations issued by the Surgeon Gen20 eral of the Public Health Service be sub21 mitted, at required intervals and in accord22 ance with rules issued by the Secretary, to

23 the child care provider involved.’’; and

24 (iv) by striking the last sentence; and

25 (B) in subparagraph (G)—
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1 (i) by inserting ‘‘(i)’’ before ‘‘Pro2 vide’’; and

3 (ii) by adding at the end the follow4 ing:

5 ‘‘(ii) For the purpose of enforcing the re6 quirement described in subparagraph (F)(iv),

7 such procedures shall ensure that each of such

8 providers gives to parents of each child who re9 ceives child care services from the provider in10 volved written notice of—

11 ‘‘(I) each immunization requirement

12 applicable to such child;

13 ‘‘(II) an opportunity of not less than

14 30 days, and not more than 45 days, to

15 correct the failure to satisfy such require16 ment; and

17 ‘‘(III) the fact that child care services

18 for such child will be terminated for failure

19 to satisfy such requirement before the expi20 ration of the 45-day period beginning on

21 the date such notice is received.’’.

22 (2) APPLICABILITY.—The amendments made

23 by paragraph (1) shall not apply with respect to fis24 cal years beginning before October 1, 1995.
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1 (c) ISSUANCE OF IMMUNIZATION RECOMMENDA2 TIONS BY THE SURGEON GENERAL OF THE PUBLIC

3 HEALTH SERVICE.—After taking into consideration the

4 then most recent report of the Committee on Infectious

5 Diseases of the American Academy of Pediatrics, the Sur6 geon General of the Public Health Service shall issue, and

7 revise from time to time, recommendations for the immu8 nization of children under 6 years of age. With respect

9 to each recommended immunization, such recommenda10 tion shall include—

11 (1) contraindications (if any) that should be

12 identified to exempt a child from receiving such im13 munization, and

14 (2) remedial action that may be taken to mini15 mize the adverse effect of failure to administer such

16 immunization to a child at the recommended age.

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