II

104TH CONGRESS

2D SESSION S. 1841

To reform the Nation’s welfare system by requiring work and demanding

personal responsibility.

IN THE SENATE OF THE UNITED STATES

JUNE 5, 1996

Mr. MOYNIHAN (by request) introduced the following bill; which was read

twice and referred to the Committee on Finance

A BILL

To reform the Nation’s welfare system by requiring work

and demanding personal responsibility.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Work First and Per5 sonal Responsibility Act of 1996’’.

6 SEC. 2. TABLE OF CONTENTS; AMENDMENT OF THE SOCIAL

7 SECURITY ACT.

8 (a) TABLE OF CONTENTS.—This Act is organized as

9 follows:

Section 1. Short title.

Sec. 2. Table of contents; amendment of the Social Security Act.
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TITLE I—WORK-BASED ASSISTANCE

Sec. 101. Purpose.

Subtitle A—Temporary Employment Assistance

Sec. 102. State plan.

Sec. 103. Conforming amendments relating to collection of overpayments.

Sec. 104. Territories.

Sec. 105. Effective dates.

Subtitle B—Make Work Pay

Sec. 111. Transitional Medicaid benefits.

Sec. 112. Notice of availability required to be provided to applicants and former

recipients of temporary employment assistance, food stamps,

and Medicaid.

Sec. 113. Advance payment of earned income tax credit through State demonstration programs.

Sec. 114. Consolidated child care development block grant.

Sec. 115. Effective dates.

Subtitle C—Work First

Sec. 121. Work First program.

Sec. 122. Regulations.

Sec. 123. Applicability to States.

Sec. 124. One time increases in Work First program funds.

Subtitle D—Pregnancy and Family Stability

Sec. 131. Supervised living arrangements for minors.

Sec. 132. National Clearinghouse on Adolescent Pregnancy.

Sec. 133. Required completion of high school or other training for teenage parents.

Sec. 134. Second chance homes.

TITLE II—CHILD SUPPORT ENFORCEMENT

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 201. State obligation to provide child support enforcement services.

Sec. 202. Distribution of payments.

Sec. 203. Privacy safeguards.

Sec. 204. Rights to notification.

Subtitle B—Locate and Case Tracking

Sec. 211. State case registry.

Sec. 212. Collection and disbursement of support payments.

Sec. 213. State directory of new hires.

Sec. 214. Amendments concerning income withholding.

Sec. 215. Locator information from interstate networks.

Sec. 216. Expansion of the Federal parent locator service.

Sec. 217. Collection and use of Social Security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures
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Sec. 221. Adoption of uniform State laws.

Sec. 222. Improvements to full faith and credit for child support orders.

Sec. 223. Administrative enforcement in interstate cases.

Sec. 224. Use of forms in interstate enforcement.

Sec. 225. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 231. State laws concerning paternity establishment.

Sec. 232. Outreach for voluntary paternity establishment.

Sec. 233. Cooperation requirement and good cause exception.

Subtitle E—Program Administration and Funding

Sec. 241. Performance-based incentives and penalties.

Sec. 242. Federal and State reviews and audits.

Sec. 243. Required reporting procedures.

Sec. 244. Automated data processing requirements.

Sec. 245. Technical assistance.

Sec. 246. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 251. Simplified process for review and adjustment of child support orders.

Sec. 252. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 253. Nonliability for financial institutions providing financial records to

State child support enforcement agencies in child support

cases.

Subtitle G—Enforcement of Support Orders

Sec. 261. Internal Revenue Service collection of arrearages.

Sec. 262. Authority to collect support from Federal employees.

Sec. 263. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 264. Voiding of fraudulent transfers.

Sec. 265. Work requirement for persons owing past-due child support.

Sec. 266. Definition of support order.

Sec. 267. Reporting arrearages to credit bureaus.

Sec. 268. Liens.

Sec. 269. State law authorizing suspension of licenses.

Sec. 270. Denial of passports for nonpayment of child support.

Sec. 271. International child support enforcement.

Sec. 272. Financial institution data matches.

Sec. 273. Enforcement of orders against paternal or maternal grandparents in

cases of minor parents.

Sec. 274. Nondischargeability in bankruptcy of certain debts for the support of

a child.

Subtitle H—Medical Support

Sec. 276. Correction to ERISA definition of medical child support order.

Sec. 277. Enforcement of orders for healthcare coverage.

Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential

Parents
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Sec. 281. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 291. Effective dates.

TITLE III—FOOD ASSISTANCE

Subtitle A—Food Stamps

Sec. 301. Short Title.

Part 1—Budgetary Proposals

Sec. 311. Include children under 22 years old in their parents’ households.

Sec. 312. Use the cost of the thrifty food plan for allotment adjustments.

Sec. 313. Lower age for excluding students’ earnings.

Sec. 314. Count governmental energy assistance as income.

Sec. 315. Reduce the standard deduction.

Sec. 316. Provide a State option to mandate use of standard utility allowances.

Sec. 317. Revise indexation of vehicle asset limitation.

Sec. 318. Count vendor payments for transitional housing as income.

Sec. 319. Strengthen penalties for noncompliance with work requirements.

Sec. 320. Provide a State option to require cooperation with child support enforcement agencies.

Sec. 321. Provide for disqualification for receipt of multiple food stamp benefits.

Sec. 322. Establish additional work requirement.

Sec. 323. Establish comparable treatment for disqualification.

Sec. 324. Repeal minimum benefit adjustments.

Sec. 325. Prorate benefits on recertification.

Sec. 326. Prohibit allotment increases for penalties under other welfare and

public assistance programs.

Sec. 327. Permit States to determine most useful and reliable means of verification.

Sec. 328. Expand claims collection methods.

Sec. 329. Authorize States to operate simplified food stamp programs.

Sec. 330. Reauthorize appropriations for the food stamp program.

Part 2—Nonbudgetary Proposals

Sec. 341. Expand definition of coupon.

Sec. 342. Clarify definition of homeless individual.

Sec. 343. Provide State option for eligibility standards.

Sec. 344. Double penalties for violating food stamp program requirements.

Sec. 345. Provide State option to lower age of caretaker exemption.

Sec. 346. Revise employment and training.

Sec. 347. Disqualify fleeing felons.

Sec. 348. Encourage electronic benefit transfer systems.

Sec. 349. Authorize exchange of law enforcement information.

Sec. 350. Simplify administration of expedited service.

Part 3—Administrative Flexibility Proposals

Sec. 361. Expand State authority to define certification period.

Sec. 362. Provide State option to combine allotments for expedited service

households.

Sec. 363. Revise treatment of allotments for households residing in centers.
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Sec. 364. Improve operation of food stamp offices.

Sec. 365. Delete Federal requirement for State employee training.

Sec. 366. Authorize oral withdrawal of fair hearing requests.

Sec. 367. Delete redundant Federal standards for administration.

Part 4—Proposals for Strengthening Retailer Management

Sec. 371. Provide authority to establish authorization periods.

Sec. 372. Provide authority to requirement information for verifying eligibility

for authorization.

Sec. 373. Establish waiting period for stores that initially fail to meet authorization criteria.

Sec. 374. Disqualify retailers who intentionally submit falsified applications.

Sec. 375. Disqualify retailers who are disqualified under the WIC program.

Sec. 376. Authorize suspension of stores violating program requirements pending administrative and judicial review.

Sec. 377. Expand civil and criminal forfeiture for violations of the Food Stamp

Act.

Sec. 378. Expand authority for sharing information provided by retail food

stores and wholesale food concerns.

PART 5—CONFORMING AMENDMENTS AND EFFECTIVE DATES

Sec. 381. Conforming amendments.

Sec. 382. Effective dates.

Subtitle B—Child Nutrition

Sec. 391. Family or group day care homes.

Sec. 392. Reimbursement rate adjustments.

Sec. 393. Elimination of start-up and expansion grants.

Sec. 394. Authorization of appropriations.

Sec. 395. Direct Federal expenditures.

TITLE IV—TREATMENT OF ALIENS

Sec. 401. Uniform alien eligibility criteria for public assistance programs.

Sec. 402. Deeming of sponsor’s income and resources to alien under TEA, SSI,

and food stamp programs.

Sec. 403. Continued liability of alien and sponsor for overpayments.

Sec. 404. Requirements for sponsor’s affidavit of support.

TITLE V—SUPPLEMENTAL SECURITY INCOME REFORMS

Sec. 501. Definition and eligibility rules.

Sec. 502. Eligibility redeterminations and continuing disability reviews.

Sec. 503. Dedicated savings accounts.

Sec. 504. Denial of SSI benefits by reason of disability to drug addicts and alcoholics.

Sec. 505. Denial of SSI benefits for 10 years to individuals found to have

fraudulently misrepresented residence in order to obtain benefits simultaneously in two or more States.

Sec. 506. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 507. Allowance under the discretionary spending limits for increased expenditures for continuing disability reviews and disability eligibility redeterminations.
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Sec. 508. Installment payment of large past-due Supplemental Security Income

benefits.

Sec. 509. Recovery of Supplemental Security Income overpayments from Social

Security benefits.

Sec. 510. Allowance under the discretionary spending limits for administrative

expenses to implement changes to Supplemental Security Income program.

Sec. 511. Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by medical insurance.

TITLE VI—SOCIAL SERVICES BLOCK GRANTS

Sec. 601. Reduction in title XX block grants to States for social services.

1 (b) REFERENCES.—Except as otherwise expressly

2 provided, wherever in this Act an amendment or repeal

3 is expressed in terms of an amendment to, or repeal of,

4 a section or other provision, the reference is considered

5 to be made to a section or other provision of the Social

6 Security Act.

7 TITLE I—WORK-BASED ASSISTANCE

8 SEC. 101. PURPOSE.

9 The primary purpose of this title is to provide true

10 welfare reform by repealing the program of Aid to Fami11 lies with Dependent Children and replacing it with a new

12 time-limited, conditional benefit based on work. Subtitle

13 A of this title creates the Temporary Employment Assist14 ance program which requires welfare recipients to work,

15 supports and protects their children, and gives States

16 broad new flexibility to run their welfare programs. The

17 Work First program, established by subtitle C, provides

18 the means to transform the system toward work, and the

19 new consolidated child care block grant, established by
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1 subtitle B, contains sufficient resources to ensure that re2 cipients who work have safe and adequate care for their

3 children. This title offers the reform American taxpayers

4 and welfare recipients alike want and deserve.

5 Subtitle A—Temporary Employment

6 Assistance

7 SEC. 102. STATE PLAN.

8 Title IV (42 U.S.C. 601 et seq.) is amended by strik9 ing part A, except for section 415 which, consistent with

10 section 402 of this Act, is redesignated as section 407,

11 and inserting the following:

12 ‘‘PART A—TEMPORARY EMPLOYMENT

13 ASSISTANCE

14 ‘‘SEC. 400. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘For the purpose of providing assistance to families

16 with needy children and assisting parents of children in

17 such families to obtain and retain private sector work to

18 the extent possible, and public sector or volunteer work

19 if necessary, through the Work First program established

20 under parts F, G, and H, there is authorized to be appro21 priated for each fiscal year a sum sufficient to carry out

22 the purposes of this part.
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1 ‘‘Subpart 1—State Plans for Temporary Employment

2 Assistance

3 ‘‘SEC. 401. ELEMENTS OF STATE PLANS.

4 ‘‘A State plan for temporary employment assistance

5 shall provide a description of the State program which car6 ries out the purposes described in section 400 and shall

7 meet the requirements of the following sections of this

8 subpart.

9 ‘‘SEC. 402. FAMILY ELIGIBILITY FOR TEMPORARY EMPLOY10 MENT ASSISTANCE.

11 ‘‘(a) IN GENERAL.—The State plan shall provide that

12 any family—

13 ‘‘(1) with 1 or more children (or any expectant

14 family, at the option of the State), defined as needy

15 by the State; and

16 ‘‘(2) whose members have assigned their rights

17 to support to the State in accordance with section

18 403(b)(1)(E)(i) and fulfill the conditions set forth in

19 subsection (b),

20 shall be eligible for assistance under the plan, except as

21 otherwise provided under this part.

22 ‘‘(b) WORK REQUIREMENT.—

23 ‘‘(1) PERSONAL RESPONSIBILITY AGREE24 MENT.—The State plan shall provide that not later

25 than 30 days after the approval of an application for

26 temporary employment assistance, a parent qualify-
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1 ing for assistance shall execute a personal respon2 sibility agreement as described in section 403. If a

3 child otherwise eligible for assistance under this part

4 is residing with a needy relative other than a parent,

5 the State plan may require the relative to execute

6 such a plan as a condition of the family receiving

7 such assistance.

8 ‘‘(2) WORK WITHIN TWO YEARS.—The State

9 plan shall provide that a parent or caretaker receiv10 ing assistance under the program will engage in

11 work (as defined by the State) when the State deter12 mines the parent or caretaker is ready to engage in

13 work, or after 24 months (whether or not consecu14 tive) of receiving assistance under the program,

15 whichever is earlier.

16 ‘‘(c) LIMITATIONS ON ELIGIBILITY.—

17 ‘‘(1) REQUIREMENTS TO WORK AND LOOK FOR

18 WORK.—Except as otherwise provided in paragraph

19 (2), the State plan shall limit eligibility of individ20 uals and families as follows:

21 ‘‘(A) REFUSAL TO LOOK FOR WORK.—If

22 an unemployed individual who has attained 18

23 years of age (or at State option, 19) refuses

24 without good cause to look for work—
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1 ‘‘(i) in the case of the first such re2 fusal, assistance shall not be payable with

3 respect to such individual until the date

4 the individual begins to look for work; and

5 ‘‘(ii) in the case of a second or subse6 quent refusal, assistance shall not be pay7 able with respect to the family of such in8 dividual until the later of—

9 ‘‘(I) 6 months after the date of

10 such refusal; or

11 ‘‘(II) the date the individual be12 gins to look for work.

13 ‘‘(B) REFUSAL TO ACCEPT A BONA FIDE

14 OFFER OF EMPLOYMENT.—If an unemployed

15 individual who has attained 18 years of age (or

16 at State option, 19) refuses without good cause

17 to accept a bona fide offer of employment—

18 ‘‘(i) in the case of the first such re19 fusal, assistance shall not be payable with

20 respect to such individual until the date

21 the individual begins to work; and

22 ‘‘(ii) in the case of a second or subse23 quent refusal, assistance shall not be pay24 able with respect to the family of such in25 dividual until the later of—
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1 ‘‘(I) 6 months after the date of

2 such refusal; or

3 ‘‘(II) the date the individual be4 gins to work.

5 ‘‘(C) FAILURE TO COMPLY WITH PER6 SONAL RESPONSIBILITY AGREEMENT OR MU7 TUAL RESPONSIBILITY PLANS.—The State plan

8 shall describe sanctions determined by the State

9 for those circumstances when the individual

10 fails without good cause to comply with a per11 sonal responsibility agreement (or, if the State

12 has established a program under subpart 1 of

13 part F and the individual is required to partici14 pate in the program, a mutual responsibility

15 plan) signed by the individual.

16 ‘‘(i) In the case of the first such fail17 ure, the State shall impose on the individ18 ual a sanction determined by the State

19 which is no more severe than the sanction

20 provided for under subparagraph (A)(i).

21 ‘‘(ii) In the case of a second or subse22 quent failure, the State shall impose on the

23 family of the individual a sanction deter24 mined by the State which is no more se-
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1 vere than the sanction provided for under

2 subparagraph (A)(ii).

3 ‘‘(2) TIME LIMIT ON ASSISTANCE.—

4 ‘‘(A) IN GENERAL.—Except as provided in

5 subparagraphs (B) and (C), the State plan

6 shall provide that the family of an individual

7 who, after attaining age 18 years (or age 19

8 years, at State option), has received assistance

9 under the plan for 60 months, shall no longer

10 be eligible for assistance under the plan.

11 ‘‘(B) HARDSHIP EXCEPTION AFTER EXPI12 RATION OF 60-MONTH PERIOD.—The State plan

13 shall provide for hardship exceptions from the

14 application of subparagraph (A) in accordance

15 with clause (i) (or alternatively, at State option,

16 in accordance with clause (ii)).

17 ‘‘(i) GENERAL EXCEPTION FORMULA18 TION.—Except as provided in clause (ii),

19 the State plan shall provide that eligibility

20 shall not be denied to any family under

21 subparagraph (A) if—

22 ‘‘(I) at the option of the State,

23 the family includes an individual

24 working 20 hours per week (or more,

25 at the option of the State);
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1 ‘‘(II) the family resides in an

2 area with an unemployment rate ex3 ceeding 8 percent; or

4 ‘‘(III) the family is experiencing

5 other special hardship circumstances

6 which make it appropriate for the

7 State to provide an exemption for

8 such month, except that the total

9 number of exemptions under this

10 clause for any month shall not exceed

11 15 percent of the number of families

12 to which the State is providing assist13 ance under the plan.

14 ‘‘(ii) ALTERNATIVE HARDSHIP EXCEP15 TION FORMULATION.—A State may elect,

16 as an alternative to clause (i), to define

17 hardship circumstances, in which case the

18 total number of exemptions under this

19 clause for any month shall not exceed 20

20 percent of the number of families to which

21 the State is providing assistance under the

22 plan.

23 ‘‘(C) EXCLUSION FROM 60-MONTH PE24 RIOD.—With respect to any family, the State

25 plan shall not include in the determination of
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1 the 60-month period under subparagraph (A)

2 any month in which any of the following applies

3 to the family:

4 ‘‘(i) TEEN PARENTS.—The parent—

5 ‘‘(I) is under age 18 (or age 19,

6 at the option of the State); and

7 ‘‘(II) is making satisfactory

8 progress while attending high school

9 or an alternative technical preparation

10 school.

11 ‘‘(ii) INDIVIDUALS EXEMPT FROM

12 WORK REQUIREMENTS.—One parent in a

13 single-parent family or each parent in a

14 two-parent family—

15 ‘‘(I) is seriously ill, incapacitated,

16 or of advanced age;

17 ‘‘(II)(aa) except for a child de18 scribed in subclause (bb), is respon19 sible for a child under age 1 year (or

20 age 6 months, at the option of the

21 State), or

22 ‘‘(bb) in the case of a second or

23 subsequent child born during such pe24 riod, is responsible for a child under

25 age 3 months;
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1 ‘‘(III) is pregnant in the 3d tri2 mester;

3 ‘‘(IV) is caring for a family mem4 ber who is ill or incapacitated; or

5 ‘‘(V) (in the case of a single cus6 todial parent), has a demonstrated in7 ability to obtain needed child care, as

8 determined by the State, for one or

9 more of the following reasons:

10 ‘‘(aa) Unavailability of ap11 propriate child care within a rea12 sonable distance of the individ13 ual’s home or work site.

14 ‘‘(bb) Unavailability or

15 unsuitability of informal child

16 care by a relative or under other

17 arrangements.

18 ‘‘(cc) Unavailability of ap19 propriate and affordable formal

20 child care arrangements.

21 ‘‘(D) CHILD-ONLY CASES.—With respect

22 to any child who has not attained age 18 (or

23 age 19, at the option of the State) and who is

24 eligible for assistance under this part, but not

25 as a member of a family otherwise eligible for
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1 assistance under this part (determined without

2 regard to this paragraph), the State plan shall

3 not include in the determination of the 60-

4 month period under subparagraph (A) any

5 month in which such child has not attained

6 such age.

7 ‘‘(3) TREATMENT OF FAMILY INELIGIBLE FOR

8 CASH ASSISTANCE.—The State plan shall provide

9 that if a family is no longer eligible for cash assist10 ance under the plan due to the application of para11 graph (1) or (2)—

12 ‘‘(A) for purposes of determining eligibility

13 for any other Federal or federally assisted pro14 gram based on need, the family shall continue

15 to be considered eligible for such assistance;

16 and

17 ‘‘(B) in the case of a family ineligible for

18 such assistance due solely to the application of

19 paragraph (2), the State shall, after having as20 sessed the needs of the child or children of the

21 family, provide for such needs with vouchers for

22 such family—

23 ‘‘(i) determined on the same basis as

24 the State would provide assistance under

25 the State plan to such a family with one
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1 less individual or two less individuals, as

2 applicable, in the case of a two-parent fam3 ily,

4 ‘‘(ii) designed appropriately to pay

5 third parties for shelter, goods, and serv6 ices received by the child or children, and

7 ‘‘(iii) payable directly to the third par8 ties.

9 ‘‘(4) INDIVIDUALS ON OLD-AGE ASSISTANCE OR

10 SSI INELIGIBLE FOR TEMPORARY EMPLOYMENT AS11 SISTANCE.—The State plan shall provide that no as12 sistance shall be furnished any individual under the

13 plan with respect to any period with respect to which

14 the individual is receiving old-age assistance under

15 the State plan under title I or supplemental security

16 income under title XVI, and the individual’s income

17 and resources attributable to such sources shall be

18 disregarded in determining the eligibility of the fam19 ily of the individual for temporary employment as20 sistance.

21 ‘‘(5) CHILDREN FOR WHOM FEDERAL, STATE,

22 OR LOCAL FOSTER CARE MAINTENANCE OR ADOP23 TION ASSISTANCE PAYMENTS ARE MADE.—A child

24 with respect to whom foster care maintenance pay25 ments or adoption assistance payments are made
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1 under part E or under State or local law shall not,

2 for the period for which such payments are made, be

3 regarded as a needy child under this part, and such

4 child’s income and resources shall be disregarded in

5 determining the eligibility of the family of such child

6 for temporary employment assistance.

7 ‘‘(6) DENIAL OF ASSISTANCE FOR TEN YEARS

8 TO A PERSON FOUND TO HAVE FRAUDULENTLY MIS9 REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS10 SISTANCE IN TWO OR MORE STATES.—The State

11 plan shall provide that no assistance will be fur12 nished any individual under the plan during the 10-

13 year period that begins on the date the individual is

14 convicted in Federal or State court of having made

15 a fraudulent statement or representation with re16 spect to the place of residence of the individual in

17 order to receive benefits or services simultaneously

18 from 2 or more States under programs that are

19 funded under this part of title XIX, or benefits in

20 2 or more States under the supplemental security in21 come program under title XVI.

22 ‘‘(7) DENIAL OF ASSISTANCE FOR FUGITIVE

23 FELONS AND PROBATION AND PAROLE VIOLA24 TORS.—
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1 ‘‘(A) IN GENERAL.—The State plan shall

2 provide that no assistance will be furnished any

3 individual under the plan for any period if dur4 ing such period the State agency has knowledge

5 that such individual is—

6 ‘‘(i) fleeing to avoid prosecution, or

7 custody or confinement after conviction,

8 under the laws of the place from which the

9 individual flees, for a crime, or an attempt

10 to commit a crime, which is a felony under

11 the laws of the place from which the indi12 vidual flees, or which, in the case of the

13 State of New Jersey, is a high mis14 demeanor under the laws of such State; or

15 ‘‘(ii) violating a condition of probation

16 or parole imposed under Federal or State

17 law.

18 ‘‘(B) EXCHANGE OF INFORMATION WITH

19 LAW ENFORCEMENT AGENCIES.—Notwithstand20 ing any other provision of law, the State plan

21 shall provide that the State shall furnish any

22 Federal, State, or local law enforcement officer,

23 upon the request of the officer, with the current

24 address of any recipient of assistance under the

25 plan, if the officer furnishes the agency with the
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1 name of the recipient and notifies the agency

2 that—

3 ‘‘(i) the recipient is described in

4 clause (i) or (ii) of subparagraph (A); and

5 ‘‘(ii) the location or apprehension of

6 the recipient is within such officer’s official

7 duties.

8 ‘‘(d) DETERMINATION OF ELIGIBILITY AND BENE9 FITS.—

10 ‘‘(1) DETERMINATION OF NEED.—The State

11 plan shall provide that the State agency will take

12 into consideration any income and resources—

13 ‘‘(A) which are legally or actually available

14 to meet the needs of the child or relative claim15 ing temporary employment assistance; and

16 ‘‘(B) which the State determines should be

17 considered in determining the need of such

18 child or relative.

19 ‘‘(2) OPTIONAL DENIAL OF ASSISTANCE TO

20 FAMILIES HAVING ADDITIONAL CHILDREN WHILE

21 RECEIVING ASSISTANCE.—At the option of the State,

22 the State plan may provide that—

23 ‘‘(A)(i) the amount of temporary employ24 ment assistance paid to a family under the plan

25 will not be increased by reason of the birth of
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1 a child (other than as a result of rape or incest)

2 to an individual included in such family if—

3 ‘‘(I) when the individual is a custodial

4 parent of a needy child, the child was con5 ceived in a month for which the individual

6 received aid under the plan, or

7 ‘‘(II) when the individual is a needy

8 child, the individual is the parent of an9 other child who is a member of the same

10 family and whose needs are included for

11 purposes of making such determination;

12 ‘‘(ii) if the value of assistance to a family

13 under the State plan approved under this part

14 is reduced by reason of subclause (I), each

15 member of the family shall be considered to be

16 receiving such assistance for purposes of federal

17 law including but not limited to eligibility for

18 medical assistance under the State plan ap19 proved under title XIX for so long as assistance

20 to the family under the State plan approved

21 under this part would otherwise not be so re22 duced; and

23 ‘‘(B) if the State exercises the option, the

24 State may provide the family with vouchers, in

25 amounts not exceeding the amount of any such
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1 reduction in assistance, that may be used only

2 to pay for particular goods and services speci3 fied by the State as suitable for the care of the

4 child of the parent (such as diapers, clothing, or

5 school supplies). In addition, the State may

6 allow an additional earned income disregard, or

7 disregard of child support received on behalf of

8 a child described by this subsection, in amounts

9 that do not exceed in total the reduction in as10 sistance that occurs as a result of a State exer11 cising the option.

12 ‘‘(C) A family may be subjected to this

13 subparagraph as long as application of this sub14 paragraph, whether alone or together with other

15 provisions of the State plan, does not reduce to

16 zero the maximum assistance level for such a

17 family.

18 ‘‘(3) RESOURCE AND INCOME DETERMINA19 TION.—With respect to the determination of the

20 total resources and income of the family of any

21 needy child, the State plan shall provide the follow22 ing:

23 ‘‘(A) RESOURCES.—The plan shall specify

24 the resource limit, and describe the policy deter25 mined by the State regarding any exclusion al-
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1 lowed for vehicles owned by family members, re2 sources set aside for future needs of a child, in3 dividual development accounts, or other policies

4 established by the State to encourage savings.

5 ‘‘(B) FAMILY INCOME.—The plan shall

6 specify the extent to which earned or unearned

7 income is disregarded in determining eligibility

8 for, and amount of, assistance.

9 ‘‘(C) CHILD SUPPORT.—The plan shall

10 specify whether (and if so, the extent to which)

11 current child support received in excess of $50

12 per month on behalf of a member of the family

13 is disregarded in determining eligibility for, and

14 the amount of, assistance.

15 ‘‘(D) CHILD’S EARNINGS.—The plan shall

16 describe the treatment of earnings of a child liv17 ing in the home.

18 ‘‘(E) EARNED INCOME TAX CREDIT.—The

19 plan shall provide for disregard of any refund

20 of Federal income taxes made to a family re21 ceiving temporary employment assistance by

22 reason of section 32 of the Internal Revenue

23 Code of 1986 (relating to earned income tax

24 credit) and any payment made to such a family

25 by an employer under section 3507 of such
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1 Code (relating to advance payment of earned

2 income credit).

3 ‘‘(4) VERIFICATION SYSTEM.—The State plan

4 shall provide that information is requested and ex5 changed for purposes of income and eligibility ver6 ification in accordance with a State system which

7 meets the requirements of section 1137.

8 ‘‘(e) SERVICES TO NATIVE AMERICANS.—The State

9 plan shall specify the steps that will be taken to ensure

10 that an appropriate share of assistance and services under

11 the plan (and under part F and part G or H) are fur12 nished to eligible Native Americans (including, as applica13 ble, Indians, Alaskan Natives, and Native Hawaiians) liv14 ing in the State.

15 ‘‘(f) SERVICES TO REFUGEES.—The State plan shall

16 provide assurances that assistance and services furnished

17 to refugees under the plan (and under part F and part

18 G or H) shall be furnished in a manner that promotes

19 their economic self-sufficiency and adjustment.

20 ‘‘SEC. 403. PERSONAL RESPONSIBILITY AGREEMENT.

21 ‘‘(a) ASSESSMENT.—The State agency responsible

22 for administering the State plan shall make an initial as23 sessment of the skills, prior work experience, and employ24 ability of each caretaker who applies for, or receives assist25 ance under the State plan who—
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1 ‘‘(1) has attained 18 years of age (or at State

2 option, 19); or

3 ‘‘(2) has not attained the age specified in para4 graph (1), has not completed high school or obtained

5 a certificate of high school equivalency, and is not

6 attending secondary school.

7 ‘‘(b) PERSONAL RESPONSIBILITY AGREEMENTS.—

8 ‘‘(1) IN GENERAL.—On the basis of the assess9 ment made under subsection (a) with respect to an

10 individual, the State agency, in consultation with the

11 individual, shall develop an appropriate personal re12 sponsibility agreement for the individual, which—

13 ‘‘(A) provides that participation by the in14 dividual in job search activities is a condition of

15 eligibility for assistance under the State plan

16 approved under part A, except during any pe17 riod for which the individual is employed full18 time in an unsubsidized job;

19 ‘‘(B) sets forth an employment goal for the

20 individual and a plan for moving the individual

21 immediately into private sector employment;

22 ‘‘(C) sets forth the obligations of the indi23 vidual, which may include a requirement that

24 the individual attend school, maintain certain

25 grades and attendance, keep school age children
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1 of the individual in school, immunize children,

2 attend parenting and money management class3 es, or do other things that will help the individ4 ual become and remain employed in the private

5 sector;

6 ‘‘(D) may require that the individual enter

7 the State program established under part F, if

8 the caseworker determines that the individual

9 will need education, training, job placement as10 sistance, wage enhancement, or other services

11 to become employed in the private sector;

12 ‘‘(E) provides that the individual must—

13 ‘‘(i) assign to the State any rights to

14 support (including, but not limited to,

15 amounts which have accrued at the time

16 such assignment is executed) from any

17 other person the individual may have in

18 such individual’s own behalf or in behalf of

19 any other family member for whom the in20 dividual is applying for or receiving assist21 ance or any other family member who is

22 deemed to be receiving assistance for the

23 purposes of title XIX; provided that the

24 assignment of arrearages that accrued in a

25 month in which the family did not receive
27

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1 assistance under this part shall cease to be

2 effective for any family no longer receiving

3 assistance under this part to which the

4 State applies the amendments made by the

5 Work First and Personal Responsibility

6 Act of 1996 to section 457(c); and

7 ‘‘(ii) cooperate with the State—

8 ‘‘(I) in establishing the paternity

9 of a child born out of wedlock with re10 spect to whom assistance is claimed,

11 and

12 ‘‘(II) in obtaining support pay13 ments for the individual and for a

14 child with respect to whom such as15 sistance is claimed, or in obtaining

16 any other payments or property due

17 the individual or the child, unless (in

18 either case) the individual is found to

19 have good cause for refusing to co20 operate as determined by the State

21 agency administering the program

22 under part D in accordance with

23 standards prescribed by the Secretary,

24 which standards shall take into con25 sideration the best interests of the
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1 child on whose behalf assistance is

2 claimed;

3 ‘‘(F) to the greatest extent possible is de4 signed to move the individual into whatever pri5 vate sector employment the individual is capable

6 of handling as quickly as possible, and to in7 crease the responsibility and amount of work

8 the individual is to handle over time;

9 ‘‘(G) describes the services the State will

10 provide the individual so that the individual can

11 obtain and keep employment in the private sec12 tor, and describes the job counseling and other

13 services that will be provided by the State; and

14 ‘‘(H) at the option of the State, may re15 quire the individual to undergo appropriate sub16 stance abuse treatment.

17 ‘‘(2) TIMING.—The State agency shall comply

18 with paragraph (1) with respect to an individual—

19 ‘‘(A) within 180 days after the effective

20 date of this part, in the case of an individual

21 who, as of such effective date, is a recipient of

22 assistance under the State plan approved under

23 this part; or
29

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1 ‘‘(B) within 90 days after the individual is

2 determined to be eligible for such assistance, in

3 the case of any other individual.

4 ‘‘(c) PROVISION OF PROGRAM AND EMPLOYMENT IN5 FORMATION.—The State shall inform all applicants for

6 and recipients of assistance under the State plan approved

7 under this part of all available services under the State

8 plan for which they are eligible.

9 ‘‘(d) REQUIREMENT THAT RECIPIENTS ENTER THE

10 WORK FIRST PROGRAM.—

11 ‘‘(1) IN GENERAL.—On and after October 1,

12 2003, the State shall place recipients of assistance

13 under the State plan under this part, who have not

14 become employed within 1 year after signing an per15 sonal responsibility agreement, in the first available

16 slot in the State program under part F, except as

17 provided in paragraph (2).

18 ‘‘(2) EXCEPTIONS.—A state shall not require a

19 recipient of such assistance to participate in the pro20 gram if the recipient—

21 ‘‘(A) is ill, incapacitated, or of advanced

22 age;

23 ‘‘(B) except for a child described in sub24 paragraph (C), is responsible for a child under
30

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1 age 1 year (or age 6 months, at the option of

2 the State);

3 ‘‘(C) in the case of a second or subsequent

4 child born since the recipient signed the agree5 ment, is responsible for a child under age 3

6 months;

7 ‘‘(D) is pregnant in the third trimester;

8 ‘‘(E) is caring for a family member who is

9 ill or incapacitated; or

10 ‘‘(F) is a single custodial parent and has

11 a demonstrated inability to obtain needed child

12 care, as determined by the State, for one or

13 more of the following reasons:

14 ‘‘(i) Unavailability of appropriate

15 child care within a reasonable distance of

16 the individual’s home or work site.

17 ‘‘(ii) Unavailability or unsuitability of

18 informal child care by a relative or under

19 other arrangements.

20 ‘‘(iii) Unavailability of appropriate

21 and affordable formal child care arrange22 ments.

23 ‘‘SEC. 404. PAYMENT OF ASSISTANCE.

24 ‘‘(a) STANDARDS OF ASSISTANCE.—The State plan

25 shall specify standards of assistance, including—
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1 ‘‘(1) the composition of the family unit for

2 which assistance will be provided;

3 ‘‘(2) a standard or standards, expressed in a

4 dollar amount or amounts, to be used in determining

5 the need of applicants and recipients;

6 ‘‘(3) a standard or standards, expressed in a

7 dollar amount or amounts, to be used in determining

8 the amount of the assistance payment; and

9 ‘‘(4) the methodology to be used in determining

10 the payment amount received by an assistance unit.

11 ‘‘(b) LEVEL OF ASSISTANCE.—Except as otherwise

12 provided in this title, the State plan shall provide that—

13 ‘‘(1) the determination of need and the amount

14 of assistance for all applicants and recipients shall

15 be made on an objective and equitable basis; and

16 ‘‘(2) families of similar composition with similar

17 needs and circumstances shall be treated similarly.

18 ‘‘(c) FAIR HEARING AND CORRECTION OF PAY19 MENTS.—The State plan shall provide that the State

20 agency shall—

21 ‘‘(1) grant an opportunity for a fair hearing be22 fore the State agency to any individual whose re23 quest for assistance under such plan is denied or is

24 not acted upon with reasonable promptness; and
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1 ‘‘(2) promptly take all necessary steps to cor2 rect any overpayment or underpayment of assistance

3 under such plan, including the request for withhold4 ing from Federal tax refunds as provided under sec5 tion 416.

6 ‘‘(d) OPTIONAL VOLUNTARY DIVERSION PRO7 GRAM.—

8 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

9 and (3), the State plan may provide, with respect to

10 the geographic area or areas of the State that the

11 State may select, that upon the recommendation of

12 the caseworker responsible, the State may offer to

13 an eligible family one-time assistance for a period of

14 not more than three months (which assistance, if ac15 cepted by the family, shall be in lieu of any other

16 assistance under the State plan for such period) in

17 an amount not to exceed—

18 ‘‘(A) the value of the monthly benefits that

19 would otherwise be provided to the family under

20 the State plan; multiplied by

21 ‘‘(B) the number of months in the time pe22 riod.

23 ‘‘(2) ONE-TIME LIMITATION.—Assistance pur24 suant to paragraph (1) shall not be made more than

25 once to any family; and
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1 ‘‘(3) ADJUSTMENT OF ALTERNATIVE BENE2 FITS.—If, during the period with respect to which

3 the State has provided one-time assistance to a fam4 ily pursuant to paragraph (1), the family applies for

5 and (but for the one-time assistance) would be eligi6 ble under the State plan for a monthly benefit great7 er than the value of the amount used in the calcula8 tion under paragraph (1), then, notwithstanding

9 paragraph (1), the State shall, for that part of the

10 time period that remains after the family becomes

11 eligible for the greater monthly benefit, provide

12 monthly benefits to the family in an amount not to

13 exceed—

14 ‘‘(A) the amount by which the value of the

15 greater monthly benefit exceeds the value of the

16 former monthly benefit, multiplied by the num17 ber of months in the time period; divided by

18 ‘‘(B) the whole number of months remain19 ing in the time period.

20 ‘‘SEC. 405. REQUIREMENTS CONCERNING OTHER PRO21 GRAMS.

22 ‘‘(a) WORK FIRST PROGRAM; WORKFORCE OR JOB

23 PLACEMENT VOUCHER PROGRAM.—The State plan shall

24 provide that the State has in effect—
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1 ‘‘(1) a Work First program that meets the re2 quirements of part F; and

3 ‘‘(2) a workfare program that meets the re4 quirements of part G, or a job placement voucher

5 program that meets the requirements of part H, but

6 not both.

7 ‘‘(b) PROVISION OF CASE MANAGEMENT SERV8 ICES.—The State plan shall provide that the State shall

9 furnish to participants in those programs case manage10 ment services that are necessary to ensure the integrated

11 provision of benefits and services under those programs

12 and under this part.

13 ‘‘(c) STATE CHILD SUPPORT AGENCY.—The State

14 plan shall—

15 ‘‘(1) provide that the State has in effect a plan

16 approved under part D and operates a child support

17 program in substantial compliance with such plan;

18 ‘‘(2) provide that the State agency administer19 ing the plan approved under this part is responsible

20 for ensuring that—

21 ‘‘(A) the benefits and services provided

22 under plans under this part and part D are fur23 nished in an integrated manner, including co24 ordination of intake procedures with the agency

25 administering the plan under part D;
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1 ‘‘(B) all applicants for, and recipients of,

2 temporary employment assistance are encour3 aged, assisted, and required (as provided under

4 section 403(b)(1)(E)(ii)) to cooperate in the es5 tablishment and enforcement of paternity and

6 child support obligations and are notified about

7 the services available under the State plan ap8 proved under part D; and

9 ‘‘(C) procedures require referral of pater10 nity and child support enforcement cases to the

11 agency administering the plan approved under

12 part D not later than 10 days after the applica13 tion for temporary employment assistance; and

14 ‘‘(3) provide for prompt notice (including the

15 transmittal of all relevant information) to the State

16 child support collection agency established pursuant

17 to part D of the furnishing of temporary employ18 ment assistance with respect to a child who has been

19 deserted or abandoned by a parent (including a child

20 born out of wedlock, without regard to whether the

21 paternity of the child has been established).

22 ‘‘(d) CHILD WELFARE SERVICES AND FOSTER CARE

23 AND ADOPTION ASSISTANCE.—The State plan shall pro24 vide that the State has in effect—
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1 ‘‘(1) a State plan for child welfare services ap2 proved under part B; and

3 ‘‘(2) a State plan for foster care and adoption

4 assistance approved under part E,

5 and operates such plans in substantial compliance with the

6 requirements of such parts.

7 ‘‘(e) REPORT OF CHILD ABUSE, ETC.—The State

8 plan shall provide that the State agency will—

9 ‘‘(1) report to an appropriate agency or official

10 known or suspected instances of physical or mental

11 injury, sexual abuse or exploitation, or negligent

12 treatment or maltreatment of a child receiving as13 sistance under the State plan under circumstances

14 which indicate that the child’s health or welfare is

15 threatened thereby; and

16 ‘‘(2) provide such information with respect to a

17 situation described in paragraph (1) as the State

18 agency may have.

19 ‘‘(f) AVAILABILITY OF ASSISTANCE IN RURAL AREA

20 OF STATE.—The State plan shall provide that the State

21 agency shall consider and address any special needs of

22 rural areas in the State to ensure that families in such

23 areas receive assistance to become self-sufficient.

24 ‘‘(g) FAMILY PRESERVATION.—
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1 ‘‘(1) IN GENERAL.—The State plan shall de2 scribe the efforts by the State to promote family

3 preservation and stability, including efforts—

4 ‘‘(A) to encourage fathers to stay home

5 and be a part of the family;

6 ‘‘(B) to keep families together to the ex7 tent possible; and

8 ‘‘(C) except to the extent provided in para9 graph (2), to treat 2-parent families and 1-par10 ent families equally with respect to eligibility

11 for assistance.

12 ‘‘(2) MAINTENANCE OF TREATMENT.—The

13 State may impose eligibility limitations relating spe14 cifically to 2-parent families to the extent such limi15 tations are no more restrictive than such limitations

16 in effect in the State plan in fiscal year 1995.

17 ‘‘(h) CHILD CARE.—The State plan shall provide that

18 the State has in effect a plan under its program under

19 the Child Care Development Block Grant Act of 1990.

20 ‘‘SEC. 406. ADMINISTRATIVE REQUIREMENTS FOR STATE

21 PLAN.

22 ‘‘(a) STATEWIDE PLAN.—The State plan shall be in

23 effect in all political subdivisions of the State, and, if ad24 ministered by the subdivisions, be mandatory upon such

25 subdivisions. If such plan is not administered uniformly
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1 throughout the State, the plan shall describe the adminis2 trative variations.

3 ‘‘(b) SINGLE ADMINISTERING AGENCY.—The State

4 plan shall provide for the establishment or designation of

5 a single State agency to administer the plan or supervise

6 the administration of the plan.

7 ‘‘(c) FINANCIAL PARTICIPATION.—The State plan

8 shall provide for financial participation by the State con9 sistent with section 413.

10 ‘‘(d) REASONABLE PROMPTNESS.—The State plan

11 shall provide that all individuals wishing to apply for tem12 porary employment assistance shall have opportunity to

13 do so, and that such assistance shall be furnished with

14 reasonable promptness to all eligible individuals.

15 ‘‘(e) AUTOMATED DATA PROCESSING SYSTEM.—The

16 State plan may provide for the establishment and oper17 ation of an automated statewide management information

18 system designed effectively and efficiently to assist man19 agement in the administration of the State plan approved

20 under this part, so as—

21 ‘‘(1) to control and account for—

22 ‘‘(A) all the factors in the total eligibility

23 determination process under such plan for as24 sistance, and
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1 ‘‘(B) the costs, quality, and delivery of

2 payments and services furnished to applicants

3 for and recipients of assistance; and

4 ‘‘(2) to notify the appropriate officials for child

5 support, food stamp, and social service programs,

6 and the medical assistance program approved under

7 title XIX, whenever a recipient becomes ineligible for

8 such assistance or the amount of assistance provided

9 to a recipient under the State plan is changed.

10 ‘‘(f) DISCLOSURE OF INFORMATION.—The State plan

11 shall provide for safeguards which restrict the use or dis12 closure of information concerning applicants or recipients.

13 ‘‘(g) DETECTION OF FRAUD.—The State plan shall

14 provide, in accordance with regulations issued by the Sec15 retary, for appropriate measures to detect fraudulent ap16 plications for temporary employment assistance before the

17 establishment of eligibility for such assistance.

18 ‘‘(h) AUDITS.—

19 ‘‘(1) IN GENERAL.—Each State shall audit, not

20 less than annually, the State expenditures for the

21 program under this part and parts F, G, and H to

22 determine the extent to which the expenditures were

23 made in accordance with the provisions of this part

24 and parts F, G, and H.
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1 ‘‘(2) AUDIT REPORTS.—Not later than 30 days

2 following the completion of an audit under this sub3 section, a State shall submit a copy of the audit to

4 the State legislature and to the Secretary of Health

5 and Human Services.

6 ‘‘(3) SINGLE AUDITS.—To the extent they are

7 not inconsistent with this section, the provisions of

8 chapter 75 of title 31, United States Code, apply to

9 audit requirements of this section.

10 ‘‘Subpart 2—Administrative Provisions

11 ‘‘SEC. 411. APPROVAL OF PLAN.

12 ‘‘(a) IN GENERAL.—The Secretary shall approve a

13 State plan which fulfills the requirements under subpart

14 1 within 120 days of the submission of the plan by the

15 State to the Secretary.

16 ‘‘(b) DEEMED APPROVAL.—If a State a plan has not

17 been rejected by the Secretary during the period specified

18 in subsection (a), the plan is considered to have been ap19 proved.

20 ‘‘SEC. 412. COMPLIANCE.

21 ‘‘In the case of any State plan for temporary employ22 ment assistance which has been approved under section

23 411, if the Secretary, after reasonable notice and oppor24 tunity for hearing to the State agency administering or

25 supervising the administration of such plan, finds that in
41

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1 the administration of the plan there is a failure to comply

2 substantially with any provision required by subpart 1 to

3 be included in the plan, the Secretary shall notify such

4 State agency that further payments will not be made to

5 the State (or in the Secretary’s discretion, that payments

6 will be limited to categories under or parts of the State

7 plan not affected by such failure) until the Secretary is

8 satisfied that there is no longer any such failure to comply.

9 Until the Secretary is so satisfied the Secretary shall make

10 no further payments to such State (or shall limit payments

11 to categories under or parts of the State plan not affected

12 by such failure).

13 ‘‘SEC. 413. PAYMENTS TO STATES.

14 ‘‘(a) COMPUTATION OF AMOUNT.—

15 ‘‘(1) IN GENERAL.—Subject to section 412, the

16 Secretary of the Treasury shall pay to each State

17 which has an approved plan for temporary employ18 ment assistance, for each quarter, beginning with

19 the quarter commencing October 1, 1996, an

20 amount equal to the Federal medical assistance per21 centage (as defined in section 1905(b) or, as appli22 cable, in section 1118) of the program expenditures

23 by the State under that plan (other than expendi24 tures for administrative costs of that plan and for

25 purposes specified in paragraph (2)(B)).
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1 ‘‘(2) WORK FIRST AND OTHER PROGRAMS.—

2 ‘‘(A) ENTITLEMENT; FEDERAL MATCHING

3 SHARE.—Each State that is operating a pro4 gram in accordance with a plan approved under

5 part F and a program in accordance with part

6 G or H shall be entitled to payment, for each

7 fiscal year, equal to the lesser of—

8 ‘‘(i) the sum of the amounts allotted

9 to the State pursuant to subparagraphs

10 (D) and (E), or

11 ‘‘(ii) the greater of 60 percent or the

12 Federal medical assistance percentage (as

13 defined in section 1905(b) or, as applica14 ble, in section 1118) of State expenditures

15 for the purposes specified in subparagraph

16 (B) (excluding any expenditures from per17 formance bonuses provided under para18 graph (4)).

19 ‘‘(B) USE OF FUNDS.—

20 ‘‘(i) Amounts available to a State pur21 suant to this paragraph may be used by

22 the State—

23 ‘‘(I) for all costs of carrying out

24 programs under part F and part G or

25 part H;
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1 ‘‘(II) for administrative costs of

2 carrying out the program under part

3 A;

4 ‘‘(III) for all costs of providing

5 emergency assistance to needy fami6 lies with children in accordance with

7 paragraph (3); and

8 ‘‘(IV) to supplement amounts

9 otherwise available for child care

10 under section 6580b of the Child Care

11 and Development Block Grant Act of

12 1990, subject to the terms and condi13 tions, including matching require14 ments, under section 6580b of that

15 Act.

16 ‘‘(ii) States shall not allocate to pro17 grams in which Federal financial participa18 tion is available, other than programs spec19 ified in clause (i), administrative costs for

20 activities in fiscal year 1997 and succeed21 ing fiscal years that in fiscal year 1995

22 were allocated to programs under parts A

23 and F.

24 ‘‘(C) AMOUNTS FOR ALLOTMENT.—For

25 purposes of allotment to States under subpara-
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1 graphs (D) and (E), the amount specified in

2 this subparagraph is as follows:

3 ‘‘(i) For fiscal years 1997 through

4 2002, the amount specified is—

5 ‘‘(I) $2,900,000,000 for fiscal

6 year 1997;

7 ‘‘(II) $2,950,000,000 for fiscal

8 year 1998;

9 ‘‘(III) $3,100,000,000 for fiscal

10 year 1999;

11 ‘‘(IV) $3,350,000,000 for fiscal

12 year 2000;

13 ‘‘(V) $3,800,000,000 for fiscal

14 year 2001; and

15 ‘‘(VI) $3,900,000,000 for fiscal

16 year 2002.

17 ‘‘(ii) For fiscal year 2003 and each

18 succeeding fiscal year, the amount speci19 fied is the product of the following:

20 ‘‘(I) The amount specified in this

21 subparagraph for the immediately pre22 ceding fiscal year.

23 ‘‘(II) 1.00 plus the percentage (if

24 any) by which the average of the

25 Consumer Price Index (as defined in
45

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1 section 1(f)(5) of the Internal Reve2 nue Code of 1986) for the most recent

3 12-month period for which such infor4 mation is available exceeds that for

5 the previous 12-month period.

6 ‘‘(III) 1.00 plus the percentage

7 change (if any) in the participation

8 rate required in section 488.

9 ‘‘(IV) 1.00 plus the percentage

10 change in the non-exempt adult recipi11 ent caseload for the most recent quar12 ter for which information is available,

13 compared to that caseload for the

14 same calendar quarter in the previous

15 year.

16 ‘‘(D) BASE ALLOTMENT TO STATES.—

17 From the amount specified in subparagraph (C)

18 for a fiscal year, the Secretary shall first allot

19 to each eligible State an amount equal to the

20 amount paid to the State pursuant to section

21 403(a)(3) for administration of the State pro22 gram under part A in fiscal year 1995.

23 ‘‘(E) ALLOTMENT OF REMAINDER TO

24 STATES.—(i) From the amount specified in sub25 paragraph (C) for a fiscal year remaining after
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1 application of subparagraph (D), the Secretary

2 shall allot to each State an amount bearing the

3 same ratio to such remainder as the average

4 monthly number of non-excempt adult recipi5 ents (as defined in clause (ii)) in the State in

6 the preceding fiscal year bears to the average

7 monthly number of such recipients in all eligible

8 States for such preceding year.

9 ‘‘(ii) For purposes of this subpara10 graph, the term ‘non-exempt adult recipi11 ent’ in the case of any State means an in12 dividual other than a dependent child (un13 less such child is the custodial parent of

14 another dependent child)—

15 ‘‘(I) whose needs are met (in

16 whole or in part) with assistance pro17 vided under the State plan approved

18 under this part, and

19 ‘‘(II) who is required to partici20 pate in a program under part F, G, or

21 H.

22 ‘‘(iii) For purposes of clause (ii), the

23 term ‘dependent child’ means a needy

24 child—
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1 ‘‘(I) who has been deprived of pa2 rental support or care by reason of

3 the death, continued absence from the

4 home (other than absence occasioned

5 solely by reason of the performance of

6 active duty in the uniformed services

7 of the United States), or physical or

8 mental incapacity of a parent, and

9 who is living with his father, mother,

10 grandfather, grandmother, brother,

11 sister, stepfather, stepmother, step12 brother, stepsister, uncle, aunt, first

13 cousin, nephew, or niece, in a place of

14 residence maintained by one or more

15 of such relatives as the relative’s own

16 home, and

17 ‘‘(II) who is—

18 ‘‘(aa) under the age of

19 eighteen, or

20 ‘‘(bb) at the option of the

21 State, under the age of nineteen

22 and a full-time student in a sec23 ondary school (or in the equiva24 lent level of vocational or tech25 nical training), if, before age
48

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1 nineteen, the child reasonably

2 may be expected to complete the

3 secondary school program (or

4 training).

5 ‘‘(iv) For purposes of clause (iii), the

6 term ‘relative with whom any dependent

7 child is living’ means the individual who is

8 one of the relatives specified in clause (iii)

9 and with whom the child is living (within

10 the meaning of such subsection) in a place

11 of residence maintained by the individual

12 (alone or together with any one or more of

13 the other relatives so specified) as the rel14 ative’s own home.

15 ‘‘(F) AMOUNTS FOR INELIGIBLE PARTICI16 PANTS.—Not more than 10 percent of the

17 amount payable to a State under this para18 graph for a calendar quarter may be for ex19 penditures made during the quarter with re20 spect to program participants who are not eligi21 ble for assistance under the State plan ap22 proved under this part.

23 ‘‘(3) EMERGENCY ASSISTANCE.—

24 ‘‘(A) For purposes of paragraph

25 (2)(B)(i)(III), the term ‘emergency assistance
49

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1 to needy families with children’ means any of

2 the items specified in subparagraph (B), fur3 nished for a period not in excess of 30 days in

4 any 12-month period, in the case of a needy

5 child under the age of 21 who is (or, within

6 such period as may be specified by the Sec7 retary, has been) living with any of the relatives

8 specified in paragraph (2)(E)(iii) in a place of

9 residence maintained by one or more of such

10 relatives as the relative’s own home, but only

11 where—

12 ‘‘(i) such child is without available re13 sources,

14 ‘‘(ii) the payments, care, or services

15 involved are necessary to avoid destitution

16 of such child or to provide living arrange17 ments in a home for such child, and

18 ‘‘(iii) the destitution or need for living

19 arrangements did not arise because the

20 child or relative refused without good cause

21 to accept employment or training for em22 ployment.

23 ‘‘(B) For the purposes of subparagraph

24 (A), the items specified include—
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1 ‘‘(i) money payments, payments in

2 kind, or such other payments as the State

3 agency may specify with respect to, or

4 medical care or any other type of remedial

5 care recognized under State law (for which

6 the individual is not entitled to medical as7 sistance under the State plan under title

8 XIX) on behalf of, such child or any other

9 member of the household in which he is liv10 ing, and

11 ‘‘(ii) services the Secretary may speci12 fy, but the term does not include benefits

13 or services provided to children in the juve14 nile justice system.

15 ‘‘(4) PERFORMANCE BONUS.—

16 ‘‘(A) IN GENERAL.—The Secretary, in con17 sultation with State and local government offi18 cials and other interested persons, shall develop

19 a system of performance measures and per20 formance bonuses that rewards States that op21 erate programs established under parts F, G,

22 and H that are effective in moving recipients of

23 assistance under the State plan approved under

24 this part into employment.

25 ‘‘(B) ALLOCATION FORMULA.—
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1 ‘‘(i) IN GENERAL.—Not later than

2 January 1, 1997, the Secretary, in con3 sultation with State and local government

4 officials and other interested persons, shall

5 develop and publish in the Federal Reg6 ister a formula for allocating the limitation

7 amount specified in subparagraph (E) for

8 the performance bonus fund for a fiscal

9 year, based on the effectiveness of State

10 programs established under parts F, G,

11 and H in moving recipients of assistance

12 under the State plan under this part into

13 employment in the preceding fiscal year,

14 including those who remain employed for

15 greater periods of time. In each fiscal year

16 specified in subparagraph (E), a State

17 shall be entitled to receive payments equal

18 to the limitation allocated to such State

19 under the formula developed by the Sec20 retary under this clause.

21 ‘‘(ii) FACTORS TO BE CONSIDERED.—

22 In developing the allocation formula under

23 clause (i), the Secretary shall take into

24 consideration factors that affect a State’s
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S 1841 IS

1 ability to achieve a given level of employ2 ment of recipients, such as—

3 ‘‘(I) the proportion of families

4 who are at greatest risk of long-term

5 welfare dependency, or who have re6 mained unemployed for long periods

7 of time; and

8 ‘‘(II) the unemployment condi9 tions of each State.

10 ‘‘(C) ANNUAL COMPLIANCE REPORTS.—

11 Each State shall submit to the Secretary an12 nual reports on the effectiveness of its program

13 under part F based on the performance meas14 ures established under subparagraph (A).

15 ‘‘(D) USE OF PAYMENTS.—Bonus pay16 ments under this paragraph shall be used for

17 the purposes allowable under subsection

18 (a)(2)(B)(i).

19 ‘‘(E) LIMITATION AMOUNT SPECIFIED.—

20 For purposes of the allocation formula under

21 subparagraph (B), the limitation amount speci22 fied in this subparagraph is—

23 ‘‘(i) $100,000,000 for fiscal year 1997

24 rates, payable in fiscal year 1998;
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1 ‘‘(ii) $100,000,000 for fiscal year

2 1998 rates, payable in fiscal year 1999;

3 ‘‘(iii) $200,000,000 for fiscal year

4 1999 rates, payable in fiscal year 2000;

5 ‘‘(iv) $200,000,000 for fiscal year

6 2000 rates, payable in fiscal year 2001;

7 and

8 ‘‘(v) $200,000,000 for fiscal year

9 2001 rates, payable in fiscal year 2002.

10 ‘‘(b) METHOD OF COMPUTATION AND PAYMENT.—

11 The method of computing and paying amounts pursuant

12 to this section is as follows:

13 ‘‘(1) The Secretary, prior to the beginning of

14 each quarter, shall estimate the amount to be paid

15 to the State for the quarter under subsection (a),

16 the estimate to be based on—

17 ‘‘(A) a report filed by the State containing

18 its estimate of the amount to be expended in

19 the quarter in accordance with each provision of

20 subsection (a) and stating the amounts appro21 priated or made available by the State and its

22 political subdivision for such expenditures in the

23 quarter, and if the sum of those amounts is less

24 than the State’s proportionate share of the total

25 sum of such estimated expenditures, the source
54

S 1841 IS

1 or sources from which the difference is expected

2 to be derived;

3 ‘‘(B) records showing the number of needy

4 children in the State; and

5 ‘‘(C) such other information as the Sec6 retary may find necessary.

7 ‘‘(2) The Secretary of Health and Human Serv8 ices shall then certify to the Secretary of the Treas9 ury the amount so estimated—

10 ‘‘(A) reduced or increased, as the case may

11 be, by any sum by which the Secretary of

12 Health and Human Services finds that the esti13 mate for any prior quarter was greater or less

14 than the amount which should have been paid

15 to the State for such quarter;

16 ‘‘(B) reduced by a sum equivalent to the

17 pro rata share to which the Federal Govern18 ment is equitably entitled, as determined by the

19 Secretary of Health and Human Services, of

20 the net amount recovered during any prior

21 quarter by the State or any political subdivision

22 thereof with respect to temporary employment

23 assistance furnished under the State plan; and

24 ‘‘(C) reduced by such amount as is nec25 essary to provide the appropriate reimburse-
55

S 1841 IS

1 ment to the Federal Government that the State

2 is required to make under section 457 out of

3 that portion of child support collections retained

4 by the State pursuant to such section, except

5 that such increases or reductions shall not be

6 made to the extent that such sums have been

7 applied to make the amount certified for any

8 prior quarter greater or less than the amount

9 estimated by the Secretary of Health and

10 Human Services for such prior quarter.

11 ‘‘(c) METHOD OF PAYMENT.—The Secretary of the

12 Treasury, through the Fiscal Service of the Department

13 of the Treasury and prior to audit or settlement by the

14 General Accounting Office, shall pay to the State, at the

15 time or times fixed by the Secretary of Health and Human

16 Services, the amount so certified.

17 ‘‘SEC. 414. QUALITY ASSURANCE, DATA COLLECTION, AND

18 REPORTING SYSTEM.

19 ‘‘(a) QUALITY ASSURANCE.—

20 ‘‘(1) IN GENERAL.—In order—

21 ‘‘(A) to improve the accuracy of payments

22 of temporary employment assistance and wages

23 under work programs under parts F, G, and H,

24 to assess the accuracy of data reported by each

25 State relating to its work programs and to its
56

S 1841 IS

1 implementation of the time limits established by

2 section 402(c)(2),

3 ‘‘(B) to determine whether participation

4 standards under section 488(a) have been met,

5 ‘‘(C) to assess the effectiveness of the

6 State’s program by applying the performance

7 standards developed under section 413(a)(4),

8 and

9 ‘‘(D) to serve such other purposes as the

10 Secretary finds appropriate for a performance

11 measurement system,

12 the Secretary shall establish and operate a quality

13 assurance system to secure the accurate data needed

14 to measure performance, identify areas in which cor15 rective action is necessary, and determine the

16 amount (if any) of the disallowance required to be

17 repaid to the Secretary because of erroneous aid

18 payments made by the State. A quality assurance

19 system shall be developed based upon a collaborative

20 effort involving the Secretary, the States and other

21 interested parties, and shall include quantifiable pro22 gram outcomes related to self-sufficiency in the cat23 egories of welfare-to-work, payment accuracy, and

24 child support.
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1 ‘‘(2) MODIFICATIONS TO SYSTEM.—As consid2 ered necessary, but not more often than every 2

3 years, the Secretary, in consultation with the States

4 and other interested parties, shall make appropriate

5 changes in the design and administration of the

6 quality assurance system, including changes in

7 benchmarks, measures, and data collection or sam8 pling procedures.

9 ‘‘(b) DATA COLLECTION AND REPORTING.—

10 ‘‘(1) IN GENERAL.—The State plan shall pro11 vide for a quarterly report to the Secretary regard12 ing the data described in paragraphs (2) and (3)

13 and such additional data as the Secretary deter14 mines is needed for the quality assurance system.

15 The data collection and reporting system under this

16 subsection shall promote accountability, continuous

17 improvement, and integrity in the State programs

18 for temporary employment assistance and Work

19 First.

20 ‘‘(2) DISAGGREGATED DATA.—The State shall

21 collect the following data items on a monthly basis

22 from disaggregated case records of applicants for

23 and recipients of temporary employment assistance

24 from the previous month:
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S 1841 IS

1 ‘‘(A) The age of adults and children (in2 cluding pregnant women).

3 ‘‘(B) Marital or familial status of cases:

4 married (2-parent family), widowed, divorced,

5 separated, or never married; or child living with

6 other adult relative.

7 ‘‘(C) The gender, race, educational attain8 ment, work experience, disability status (wheth9 er the individual is seriously ill, incapacitated,

10 or caring for a disabled or incapacitated child)

11 of adults.

12 ‘‘(D) The amount of cash assistance and

13 the amount and reason for any reduction in

14 such assistance. Any other data necessary to

15 determine the timeliness and accuracy of bene16 fits and welfare diversions.

17 ‘‘(E) Whether any member of the family

18 receives benefits under any of the following:

19 ‘‘(i) Any housing program.

20 ‘‘(ii) The program under the Food

21 Stamp Act of 1977.

22 ‘‘(iii) The program under the Head

23 Start Act.

24 ‘‘(iv) Any job training program.
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1 ‘‘(F) The number of months since the most

2 recent application for assistance under the plan.

3 ‘‘(G) The total number of months for

4 which assistance has been provided to the fami5 lies under the plan.

6 ‘‘(H) The employment status, hours

7 worked, and earnings of individuals while re8 ceiving assistance, whether the case was closed

9 due to employment, and other data needed to

10 determine the work performance rate.

11 ‘‘(I) Status in Work First and workfare,

12 including the number of hours an individual

13 participated and the component in which the in14 dividual participated.

15 ‘‘(J) The number of individuals in the as16 sistance unit and their relationship to the

17 youngest child. Nonrecipients in the household

18 and the relationship of each to the youngest

19 child.

20 ‘‘(K) Citizenship status.

21 ‘‘(L) Shelter arrangement.

22 ‘‘(M) Unearned income (not including tem23 porary employment assistance), such as child

24 support, and assets.
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1 ‘‘(N) The number of children who have a

2 parent who is deceased, incapacitated, or unem3 ployed.

4 ‘‘(O) Geographic location.

5 ‘‘(3) AGGREGATED DATA.—The State shall col6 lect the following data items on a monthly basis

7 from aggregated case records of applicants for and

8 recipients of temporary employment assistance from

9 the previous month:

10 ‘‘(A) The number of adults receiving as11 sistance.

12 ‘‘(B) The number of children receiving as13 sistance.

14 ‘‘(C) The number of families receiving as15 sistance.

16 ‘‘(D) The number of assistance units who

17 had grants reduced or terminated and the rea18 son for the reduction or termination, including

19 sanction, employment, and exceeding the time

20 limit for assistance.

21 ‘‘(E) The number of applications for as22 sistance; the number approved and the number

23 denied and the reason for denial.

24 ‘‘(4) LONGITUDINAL STUDIES.—The State shall

25 submit selected data items for a cohort of individ-
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1 uals who are tracked over time. This longitudinal

2 sample shall be used for selected data items de3 scribed in paragraphs (2) and (3), as determined ap4 propriate by the Secretary.

5 ‘‘(c) ADDITIONAL DATA.—The report required by

6 subsection (b) for a fiscal year quarter also shall include

7 the following:

8 ‘‘(1) REPORT ON USE OF FEDERAL FUNDS TO

9 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—A

10 statement of—

11 ‘‘(A) the percentage of the Federal funds

12 paid to the State under Section 413 for the fis13 cal year quarter and used to carry out parts F

14 and G or H that are used to cover administra15 tive costs or overhead; and

16 ‘‘(B) the total amount of State funds that

17 are used to cover such costs or overhead.

18 ‘‘(2) REPORT ON STATE EXPENDITURES ON

19 PROGRAMS FOR NEEDY FAMILIES.—A statement of

20 the total amount expended by the State during the

21 fiscal year quarter on programs for needy families,

22 with the amount spent on the program under this

23 part, and the purposes for which such amount was

24 spent, separately stated.
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1 ‘‘(3) REPORT ON NONCUSTODIAL PARENTS PAR2 TICIPATING IN WORK ACTIVITIES.—The number of

3 noncustodial parents in the State who participated

4 in work activities during the fiscal year quarter.

5 ‘‘(4) REPORT ON CHILD SUPPORT COL6 LECTED.—The total amount of child support col7 lected by the State agency administering the State

8 plan under part D on behalf of a family receiving as9 sistance under this part.

10 ‘‘(5) REPORT ON TRANSITIONAL SERVICES.—

11 The total amount expended by the State for provid12 ing transitional services to families that have ceased

13 to receive assistance under this part because of in14 creased hours of, or increased income from, employ15 ment, together with a description of such services.

16 ‘‘(d) COLLECTION PROCEDURES.—The Secretary

17 shall provide case sampling plans and data collection pro18 cedures as considered necessary to make statistically valid

19 estimates of plan performance.

20 ‘‘(e) VERIFICATION.—The Secretary shall develop

21 and implement procedures for verifying the quality of the

22 data submitted by the State, and shall provide technical

23 assistance, funded by the compliance penalties imposed

24 under section 412, if such data quality falls below accept25 able standards.
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1 ‘‘SEC. 415. COMPILATION AND REPORTING OF DATA.

2 ‘‘(a) CURRENT PROGRAMS.—The Secretary, on the

3 basis of the Secretary’s review of the reports received from

4 the States under section 414, shall compile such data as

5 the Secretary believes necessary, and from time to time,

6 publish the findings as to the effectiveness of the programs

7 developed and administered by the States under this part.

8 The Secretary annually shall report to Congress on the

9 programs developed and administered by each State under

10 this part.

11 ‘‘(b) RESEARCH, DEMONSTRATION AND EVALUA12 TION.—For each fiscal year beginning with fiscal year

13 1996, from the appropriation account providing funds for

14 grants to States for activities funded under section

15 413(a)(1), the Secretary may reserve for obligation, or

16 transfer to other accounts funding research activities, an

17 amount not to exceed 0.19 percent of the total amount

18 paid to States in the previous fiscal year for activities

19 under section 413(a)(1), and may use the reserved

20 amounts to pay costs of the following types of research,

21 demonstrations, and evaluations:

22 ‘‘(1) STATE-INITIATED RESEARCH.—States may

23 apply for grants to cover up to 90 percent of the

24 costs of self-evaluations of programs under State

25 plans approved under this part.

26 ‘‘(2) DEMONSTRATIONS.—
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1 ‘‘(A) IN GENERAL.—The Secretary may

2 implement and evaluate demonstrations of inno3 vative and promising strategies to—

4 ‘‘(i) improve child well-being through

5 reductions in illegitimacy, teen pregnancy,

6 welfare dependency, homelessness, and

7 poverty;

8 ‘‘(ii) test promising strategies by non9 profit and for-profit institutions to increase

10 employment, earnings, child support pay11 ments, and self-sufficiency with respect to

12 temporary employment assistance clients

13 under State plans; and

14 ‘‘(iii) foster the development of child

15 care.

16 ‘‘(B) ADDITIONAL PARAMETERS.—Dem17 onstrations implemented under this para18 graph—

19 ‘‘(i) may provide one-time capital

20 funds to establish, expand, or replicate

21 programs;

22 ‘‘(ii) may test performance-based

23 grant-to-loan financing in which programs

24 meeting performance targets receive grants
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S 1841 IS

1 while programs not meeting such targets

2 repay funding on a pro-rated basis; and

3 ‘‘(iii) should test strategies in multiple

4 States and types of communities.

5 ‘‘(3) FEDERAL EVALUATIONS.—

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

7 conduct research on the effects, benefits, and

8 costs of different approaches to operating wel9 fare programs, including an implementation

10 study based on a representative sample of

11 States and localities, documenting the policies

12 adopted, how such policies were implemented,

13 the types and mix of services provided, and

14 such other factors as the Secretary considers

15 appropriate.

16 ‘‘(B) RESEARCH ON RELATED ISSUES.—

17 The Secretary also shall conduct research on is18 sues related to the purposes of this part, such

19 as strategies for moving welfare recipients into

20 the workforce quickly, reducing teen preg21 nancies and out-of-wedlock births, and provid22 ing adequate child care.

23 ‘‘(C) STATE REIMBURSEMENT.—The Sec24 retary may reimburse a State for any research-
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1 related costs incurred pursuant to research con2 ducted under this paragraph.

3 ‘‘(D) USE OF RANDOM ASSIGNMENT.—

4 Evaluations authorized under this paragraph

5 should use random assignment to the maximum

6 extent feasible and appropriate.

7 ‘‘(c) STUDY BY THE CENSUS BUREAU.—

8 ‘‘(1) IN GENERAL.—The Bureau of the Census

9 shall expand the Survey of Income and Program

10 Participation as necessary to obtain such informa11 tion as will enable interested persons to evaluate the

12 impact of the amendments made by the Work First

13 and Personal Responsibility Act of 1996 on a ran14 dom national sample of recipients of assistance

15 under State programs funded under this part and

16 (as appropriate) other low-income families, and in

17 doing so, shall pay particular attention to the issues

18 of out-of-wedlock birth, welfare dependency, the be19 ginning and end of welfare spells, and the causes of

20 repeat welfare spells.

21 ‘‘(2) APPROPRIATION.—For each of fiscal years

22 1996, 1997, 1998, 1999, 2000, 2001, and 2002,

23 from the appropriation account providing funds for

24 grants to States for activities funded under section

25 413(a)(1), the Secretary shall transfer to the Bu-
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1 reau of the Census $10,000,000 to carry out para2 graph (1). Such funds transferred to the Bureau of

3 the Census shall remain available for obligation by

4 the Bureau of the Census until expended.

5 ‘‘SEC. 416. COLLECTION OF OVERPAYMENTS FROM FED6 ERAL TAX REFUNDS.

7 ‘‘(a) IN GENERAL.—Upon receiving notice from a

8 state agency administering a plan approved under this

9 part that a named individual has been overpaid under the

10 State plan approved under this part, the Secretary of the

11 Treasury shall determine whether any amounts as refunds

12 of Federal taxes paid are payable to such individual, re13 gardless of whether such individual filed a tax return as

14 a married or unmarried individual. If the Secretary of the

15 Treasury finds that any such amount is payable, the Sec16 retary shall withhold from such refunds an amount equal

17 to the overpayment sought to be collected by the State

18 and pay such amount to the State agency.

19 ‘‘(b) REGULATIONS.—The Secretary of the Treasury

20 shall issue regulations, approved by the Secretary of

21 Health and Human Services, that provide—

22 ‘‘(1) that a State may only submit under sub23 section (a) requests for collection of overpayments

24 with respect to individuals—
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1 ‘‘(A) who are no longer receiving tem2 porary employment assistance under the State

3 plan approved under this part,

4 ‘‘(B) with respect to whom the State has

5 already taken appropriate action under State

6 law against the income or resources of the indi7 viduals or families involved; and

8 ‘‘(C) to whom the State agency has given

9 notice of its intent to request withholding by

10 the Secretary of the Treasury from the income

11 tax refunds of such individuals;

12 ‘‘(2) that the Secretary of the Treasury will

13 give a timely and appropriate notice to any other

14 person filing a joint return with the individual whose

15 refund is subject to withholding under subsection

16 (a); and

17 ‘‘(3) the procedures that the State and the Sec18 retary of the Treasury will follow in carrying out

19 this section which, to the maximum extent feasible

20 and consistent with the specific provisions of this

21 section, will be the same as those issued pursuant to

22 section 464(b) applicable to collection of past-due

23 child support.
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1 ‘‘SEC. 417. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

2 ‘‘The programs under this title shall be administered

3 by an Assistant Secretary for Family Support within the

4 Department of Health and Human Services, who shall be

5 appointed by the President, by and with the advice and

6 consent of the Senate, and who shall be in addition to any

7 other Assistant Secretary of Health and Human Services

8 provided for by law. If an individual is the Assistant Sec9 retary for Children and Families on the day before the

10 enactment of this Act, that individual shall become the

11 Assistant Secretary for Family Support.’’.

12 SEC. 103. CONFORMING AMENDMENTS RELATING TO COL13 LECTION OF OVERPAYMENTS.

14 (a) Section 6402 of the Internal Revenue Code of

15 1986 (relating to authority to make credits or refunds)

16 is amended—

17 (1) in subsection (a), by striking ‘‘(c) and (d)’’

18 and inserting ‘‘(c), (d), and (e)’’;

19 (2) by redesignating subsections (e) through (i)

20 as subsections (f) through (j), respectively; and

21 (3) by inserting after subsection (d) the follow22 ing:

23 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

24 IV–A OF THE SOCIAL SECURITY ACT.—The amount of

25 any overpayment to be refunded to the person making the

26 overpayment shall be reduced (after reductions pursuant
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1 to subsections (c) and (d), but before a credit against fu2 ture liability for an internal revenue tax) in accordance

3 with section 416 of the Social Security Act (concerning

4 recovery of overpayments to individuals under State plans

5 approved under part A of title IV of such Act).’’.

6 (b) Paragraph (10) of section 6103(1) of the Internal

7 Revenue Code of 1986 is amended—

8 (1) by striking ‘‘(c) or (d)’’ each place it ap9 pears and inserting ‘‘(c), (d), or (e)’’; and

10 (2) by adding at the end of subparagraph (B)

11 the following new sentence; ‘‘Any return information

12 disclosed with respect to section 6402(e) shall only

13 be disclosed to officers and employees of the State

14 agency requesting such information.’’.

15 (c) The matter preceding subparagraph (A) of section

16 6103(p)(4) of such Code is amended—

17 (1) by striking ‘‘(10),’’ before ‘‘(11)’’ and

18 (2) by inserting ‘‘(10),’’ after ‘‘(9),’’.

19 (d) Section 552a(a)(8)(B)(iv)(III) of title 5, United

20 States Code, is amended by striking ‘‘section 464 or 1137

21 of the Social Security Act’’ and inserting ‘‘section 416,

22 464, or 1137 of the Social Security Act’’.
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1 SEC. 104. TERRITORIES.

2 (a) LIMITATIONS ON FEDERAL PAYMENTS.—Section

3 1108(a)(2) and (3) of the Act is amended to read as fol4 lows:

5 ‘‘(2) for payment to the Virgin Islands shall not

6 exceed—

7 ‘‘(A) $2,800,000 with respect to fiscal

8 years 1994, 1995, and 1996, and

9 ‘‘(B) $3,500,000 or, if greater, such

10 amount adjusted by the CPI (as prescribed in

11 subsection (f)) for fiscal year 1997 and each

12 fiscal year thereafter; and

13 ‘‘(3) for payment to Guam shall not exceed—

14 ‘‘(A) $3,800,000 with respect to fiscal year

15 1994, 1995, and 1996, and

16 ‘‘(B) $4,750,000 or, if greater, such

17 amount adjusted by the CPI (as prescribed in

18 subsection (f)), for fiscal year 1997 and each

19 fiscal year thereafter.’’.

20 (b) CPI ADJUSTMENT.—Section 1108 of the Act is

21 amended by adding at the end the following new sub22 section:

23 ‘‘(f) For purposes of subsection (a), an amount is ‘ad24 justed by the CPI’ for months in a calendar year by mul25 tiplying that amount by the ratio of the Consumer Price

26 Index as prepared by the Department of Labor for—
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S 1841 IS

1 ‘‘(1) the third quarter of the preceding calendar

2 year, to

3 ‘‘(2) the third quarter of calendar year 1996,

4 and rounding the product, if not a multiple of

5 $10,000, to the nearer multiple of $10,000.’’.

6 SEC. 105. EFFECTIVE DATES.

7 (a)(1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by sections 102 and 104

9 of this Act are effective with respect to calendar quarters

10 beginning on or after October 1, 1996.

11 (2)(A) Funds that would be available for obligation

12 in fiscal year 1996 under section 415 of the Social Secu13 rity Act (as amended by this Act) are available upon en14 actment.

15 (B) Amendments made by section 103 of this Act are

16 effective upon enactment.

17 (b) SPECIAL RULE.—In the case of a State that the

18 Secretary of Health and Human Services determines re19 quires State legislation (other than legislation appropriat20 ing funds) in order to meet the requirements imposed by

21 the amendments made by this subtitle, the State shall not

22 be regarded as failing to comply with those requirements

23 before the first day of the first calendar quarter beginning

24 after the close of the first regular session of the State leg25 islature that begins after the date of enactment of this
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S 1841 IS

1 Act. For purposes of this paragraph, in the case of a State

2 that has a 2-year legislative session, each year of the ses3 sion shall be treated as a separate regular session of the

4 State legislature. Such a State, however, shall be subject

5 to the funding provisions in section 413 of the Social Secu6 rity Act (as amended by this Act) on and after October

7 1, 1996.

8 Subtitle B—Make Work Pay

9 SEC. 111. TRANSITIONAL MEDICAID BENEFITS.

10 (a) PERMANENT EXTENSION OF AUTHORITY.—Sub11 section (f) of section 1925 of the Social Security Act (42

12 U.S.C. 1396r–6(f)) is repealed.

13 (b) EFFECTIVE DATE.—The repeal made by sub14 section (a) applies to calendar quarters beginning on or

15 after October 1, 1997, without regard to whether final

16 regulations to carry out the repeal have been promulgated

17 by that date.

18 SEC. 112. NOTICE OF AVAILABILITY REQUIRED TO BE PRO19 VIDED TO APPLICANTS AND FORMER RECIPI20 ENTS OF TEMPORARY EMPLOYMENT ASSIST21 ANCE, FOOD STAMPS, AND MEDICAID.

22 (a) TEMPORARY EMPLOYMENT ASSISTANCE.—Sec23 tion 406, as added by section 102 of this Act, is amended

24 by adding at the end the following:
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1 ‘‘(i) NOTICE OF AVAILABILITY OF EITC.—The State

2 plan shall provide that the State agency shall provide writ3 ten notice of the existence and availability of the earned

4 income credit under section 32 of the Internal Revenue

5 Code of 1986 to—

6 ‘‘(1) any individual who applies for assistance

7 under the State plan, upon receipt of the applica8 tion; and

9 ‘‘(2) any recipient of assistance under the State

10 plan under this part (including any recipient of as11 sistance under the plan in effect before the effective

12 date of the Work First and Personal Responsibility

13 Act of 1996) whose assistance is terminated, in the

14 notice of termination of benefits.’’.

15 (b) FOOD STAMPS.—Section 11(e) of the Food

16 Stamp Act of 1977 (7 U.S.C. 2020(e)), as amended by

17 sections 323(b), 330(c), and 364(1)(C) and (D) of this

18 Act, is amended—

19 (1) in paragraph (24) by striking ‘‘and’’ at the

20 end;

21 (2) in paragraph (25) by striking the period at

22 the end and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (25) the fol24 lowing:
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S 1841 IS

1 ‘‘(26) that whenever a household applies for

2 food stamp benefits, and at other times the Sec3 retary considers appropriate, the State agency shall

4 provide to each member of such household notice

5 of—

6 ‘‘(A) the existence of the earned income

7 tax credit under section 32 of the Internal Rev8 enue Code of 1986; and

9 ‘‘(B) the fact that such credit may be ap10 plicable to such member.’’.

11 (c) The second sentence of section 5(a) of the Food

12 Stamp Act of 1977 (7 U.S.C. 2014(a)) is amended by—

13 (1) striking ‘‘plan approved’’ and inserting

14 ‘‘program funded’’; and

15 (2) inserting before ‘‘, supplemental security in16 come’’ the following: ‘‘that limits receipt of benefits

17 to households whose gross income, as defined by the

18 State, does not exceed the poverty line, as described

19 in subsection (c), by more than 30 per centum’’.

20 (d) MEDICAID.—Section 1902(a) (42 U.S.C.

21 1396(a)) is amended—

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

23 (61);

24 (2) by striking the period at the end of para25 graph (62) and inserting ‘‘; and’’; and
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1 (3) by inserting after paragraph (62) the fol2 lowing new paragraph:

3 ‘‘(63) provide that the State shall provide notice

4 of the existence and availability of the earned income

5 tax credit under section 32 of the Internal Revenue

6 Code of 1986 to each individual applying for medical

7 assistance under the State plan and to each individ8 ual whose eligibility for medical assistance under the

9 State plan is terminated.’’.

10 SEC. 113. ADVANCE PAYMENT OF EARNED INCOME TAX

11 CREDIT THROUGH STATE DEMONSTRATION

12 PROGRAMS.

13 (a) IN GENERAL.—Section 3507 of the Internal Rev14 enue Code of 1986 (relating to the advance payment of

15 the earned income tax credit) is amended by adding at

16 the end the following:

17 ‘‘(g) STATE DEMONSTRATIONS.—

18 ‘‘(1) IN GENERAL.—In lieu of receiving earned

19 income advance amounts from an employer under

20 subsection (a), a participating resident shall receive

21 advance earned income payments from a responsible

22 State agency pursuant to a State Advance Payment

23 Program that is designated pursuant to paragraph

24 (2).

25 ‘‘(2) DESIGNATIONS.—
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1 ‘‘(A) IN GENERAL.—From among the

2 States submitting proposals satisfying the re3 quirements of paragraph (3), the Secretary (in

4 consultation with the Secretary of Health and

5 Human Services and the Secretary of Agri6 culture) may designate not more than 4 State

7 Advance Payment Demonstrations. These

8 States may operate demonstrations in areas

9 that include, in the aggregate, no more than 10

10 percent of the total number of households par11 ticipating in the program under the Food

12 Stamp program in the immediately preceding

13 fiscal year. Administrative costs of a State in

14 conducting a demonstration under this section

15 may be included for matching under section

16 413(a)(2) of the Social Security Act.

17 ‘‘(B) WHEN DESIGNATION MAY BE

18 MADE.—Any designation under this paragraph

19 shall be made no later than December 31,

20 1998.

21 ‘‘(C) PERIOD FOR WHICH DESIGNATION IS

22 IN EFFECT.—

23 ‘‘(i) IN GENERAL.—Designations

24 made under this paragraph shall be effec25 tive for advance earned income payments
78

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1 made after December 31, 1998, and before

2 January 1, 2002.

3 ‘‘(ii) SPECIAL RULES.—

4 ‘‘(I) REVOCATION OF DESIGNA5 TIONS.—The Secretary may revoke

6 any designation made under this

7 paragraph if the Secretary determines

8 that the State is not complying sub9 stantially with the proposal described

10 in paragraph (3) submitted by the

11 State.

12 ‘‘(II) AUTOMATIC TERMINATION

13 OF DESIGNATIONS.—Any failure by a

14 State to comply with the reporting re15 quirements described in paragraphs

16 (3)(F) and (3)(G) shall have the ef17 fect of immediately terminating the

18 designation under this paragraph and

19 rendering paragraph (5)(A)(ii) inap20 plicable to subsequent payments.

21 ‘‘(3) PROPOSALS.—No State may be designated

22 under paragraph (2) unless the State’s proposal for

23 such designation—

24 ‘‘(A) identifies the responsible State agen25 cy,
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1 ‘‘(B) describes how and when the advance

2 earned income payments will be made by that

3 agency, including a description of any other

4 State or Federal benefits with which such pay5 ments will be coordinated,

6 ‘‘(C) describes how the State will obtain

7 the information on which the amount of ad8 vance earned income payments made to each

9 participating resident will be determined in ac10 cordance with paragraph (4),

11 ‘‘(D) describes how State residents who

12 will be eligible to receive advance earned income

13 payments will be selected, notified of the oppor14 tunity to receive advance earned income pay15 ments from the responsible State agency, and

16 given the opportunity to elect to participate in

17 the program,

18 ‘‘(E) describes how the State will verify, in

19 addition to receiving the certifications and

20 statement described in paragraph (7)(D)(iv),

21 the eligibility of participating residents for the

22 earned income tax credit,

23 ‘‘(F) commits the State to furnishing to

24 each participating resident, by January 31 of

25 each year a written statement showing—
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1 ‘‘(i) the name and taxpayer identifica2 tion number of the participating resident

3 and by January 31 the amounts paid to

4 each participating resident, and

5 ‘‘(ii) the total amount of advance

6 earned income payments made to the par7 ticipating resident during the prior cal8 endar year,

9 ‘‘(G) commits the State to furnishing to

10 the Secretary by December 1 of each year a

11 written statement showing the name and tax12 payer identification number of each participat13 ing resident, and by January 31 the amounts

14 paid to each participating resident,

15 ‘‘(H) commits the State to treat any ad16 vance earned income payments as described in

17 paragraph (5) and any repayments of excessive

18 advance earned income payments as described

19 in paragraph (6),

20 ‘‘(I) commits the State to assess the devel21 opment and implementation of its State Ad22 vance Payment Program, including an agree23 ment to share its findings and lessons with

24 other interested States in a manner to be de25 scribed by the Secretary, and
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1 ‘‘(J) is submitted to the Secretary on or

2 before June 30, 1998.

3 ‘‘(4) AMOUNT AND TIMING OF ADVANCE

4 EARNED INCOME PAYMENTS.—

5 ‘‘(A) AMOUNT.—

6 ‘‘(i) IN GENERAL.—The method for

7 determining the amount of advance earned

8 income payments made to each participat9 ing resident shall conform to the fullest ex10 tent possible with the provisions of sub11 section (c).

12 ‘‘(ii) SPECIAL RULE.—A State may,

13 at its election, apply the rules of subsection

14 (c)(2)(B) by substituting ‘between 60 per15 cent and 75 percent of the credit percent16 age in effect under section 32(b)(1) for an

17 individual with the corresponding number

18 of qualifying children’ for ‘60 percent of

19 the credit percentage in effect under sec20 tion 32(b)(1) for such an eligible individual

21 with 1 qualifying child’ in clause (i) and

22 ‘the same percentage (as applied in clause

23 (i))’ for ‘60 percent’ in clause (ii).

24 ‘‘(B) TIMING.—The frequency of advanced

25 earned income payments may be determined on
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1 the basis of the payroll periods of participating

2 residents, on a single statewide schedule, or on

3 any other reasonable basis prescribed by the

4 State in its proposal; however, in no event may

5 advance earned income payments be made to

6 any participating resident less frequently than

7 on a calendar-quarter basis.

8 ‘‘(5) PAYMENTS TO BE TREATED AS PAYMENTS

9 OF WITHHOLDING AND FICA TAXES.—

10 ‘‘(A) IN GENERAL.—For purposes of this

11 title, advance earned income payments during

12 any calendar quarter—

13 ‘‘(i) shall neither be treated as a pay14 ment of compensation nor be included in

15 gross income, and

16 ‘‘(ii) shall be treated as made out of—

17 ‘‘(I) amounts required to be de18 ducted by the State and withheld for

19 the calendar quarter by the State

20 under section 3401 (relating to wage

21 withholding),

22 ‘‘(II) amounts required to be de23 ducted for the calendar quarter under

24 section 3102 (relating to FICA em25 ployee taxes), and
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1 ‘‘(III) amounts of the taxes im2 posed on the State for the calendar

3 quarter under section 3111 (relating

4 to FICA employer taxes), as if the

5 State had paid to the Secretary, on

6 the day on which payments are made

7 to participating residents, an amount

8 equal to such payments.

9 ‘‘(B) IF ADVANCE PAYMENTS EXCEED

10 TAXES DUE.—If for any calendar quarter the

11 aggregate amount of advance earned income

12 payments made by the responsible State agency

13 under a State Advance Payment Program ex14 ceeds the sum of the amounts referred to in

15 subparagraph (A)(ii) (without regard to para16 graph (6)(A)), each such advance earned in17 come payment shall be reduced by an amount

18 which bears the same ratio to such excess as

19 such advance earned income payment bears to

20 the aggregate amount of all such advance

21 earned income payments.

22 ‘‘(6) STATE REPAYMENT OF EXCESSIVE AD23 VANCE EARNED INCOME PAYMENTS.—

24 ‘‘(A) IN GENERAL.—Notwithstanding any

25 other provision of law, in the case of an exces-
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1 sive advance earned income payment a State

2 shall be treated as having deducted and with3 held under section 3401 (relating to wage with4 holding), and as being required to pay to the

5 United States, the repayment amount during

6 the repayment calendar quarter.

7 ‘‘(B) EXCESSIVE ADVANCE EARNED IN8 COME PAYMENT.—For purposes of this section,

9 the term ‘excessive advance income payment’

10 means that portion of any advance earned in11 come payment that, when combined with other

12 advance earned income payments previously

13 made to the same participating resident during

14 the same calendar year, exceeds the amount of

15 earned income tax credit to which that partici16 pating resident is entitled under section 32 for

17 that year.

18 ‘‘(C) REPAYMENT AMOUNT.—For purposes

19 of this subsection, the term ‘repayment amount’

20 means an amount equal to 50 percent of the ex21 cess of—

22 ‘‘(i) excessive advance earned income

23 payments made by a State during a par24 ticular calendar year, over

25 ‘‘(ii) the sum of—
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1 ‘‘(I) 4 percent of all advance

2 earned income payments made by the

3 State during that calendar year, and

4 ‘‘(II) the excessive advance

5 earned income payments made by the

6 State during that calendar year that

7 have been collected from participating

8 residents by the Secretary.

9 ‘‘(D) REPAYMENT CALENDAR QUARTER.—

10 For purposes of this subsection, the term ‘re11 payment calendar quarter’ means the second

12 calendar quarter of the third calendar year be13 ginning after the calendar year in which an ex14 cessive earned income payment is made.

15 ‘‘(7) DEFINITIONS.—For purposes of this subsection:

16 ‘‘(A) STATE ADVANCE PAYMENT PRO17 GRAM.—The term ‘State Advance Payment

18 Program’ means the program described in a

19 proposal submitted for designation under para20 graph (1) and designated by the Secretary

21 under paragraph (2).

22 ‘‘(B) RESPONSIBLE STATE AGENCY.—The

23 term ‘responsible State agency’ means the sin24 gle State agency that will be making the ad25 vance earned income payments to residents of
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1 the State who elect to participate in a State Ad2 vance Payment Program.

3 ‘‘(C) ADVANCE EARNED INCOME PAY4 MENTS.—The term ‘advance earned income

5 payments’ means an amount paid by a respon6 sible State agency to residents of the State pur7 suant to a State Advance Payment Program.

8 ‘‘(D) PARTICIPATING RESIDENT.—The

9 term ‘participating resident’ means an individ10 ual who—

11 ‘‘(i) is a resident of a State that has

12 in effect a designated State Advance Pay13 ment Program,

14 ‘‘(ii) makes the election described in

15 paragraph (3)(D) pursuant to guidelines

16 prescribed by the State,

17 ‘‘(iii) certifies to the State the number

18 of qualifying children the individual has,

19 and

20 ‘‘(iv) provides to the State the certifi21 cations and statement described in sub22 sections (b)(1), (b)(2), (b)(3), and (b)(4)

23 (except that for purposes of this clause,

24 the term ‘any employer’ shall be sub25 stituted for ‘another employer’ in sub-
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1 section (b)(3)), along with any other infor2 mation required by the State.’’.

3 (b) TECHNICAL ASSISTANCE.—The Secretaries of the

4 Treasury and Health and Human Services shall jointly en5 sure that technical assistance is provided to State Advance

6 Payment Programs and that these programs are rigor7 ously evaluated.

8 (c) ANNUAL REPORTS.—The Secretary shall issue

9 annual reports detailing the extent to which—

10 (1) residents participate in the State Advance

11 Payment Programs,

12 (2) participating residents file Federal and

13 State tax returns,

14 (3) participating residents report accurately the

15 amount of the advance earned income payments

16 made to them by the responsible State agency dur17 ing the year, and

18 (4) recipients of excessive advance earned in19 come payments repay those amounts.

20 The report shall also contain an estimate of the amount

21 of advance earned income payments made by each respon22 sible State agency but not reported on the tax returns of

23 a participating resident and the amount of excessive ad24 vance earned income payments.
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—For pur2 poses of providing technical assistance described in sub3 section (b), preparing the reports described in subsection

4 (c), and providing grants to States in support of des5 ignated State Advance Payment Programs, there are au6 thorized to be apppropriated in advance to the Secretary

7 of the Treasury and the Secretary of Health and Human

8 Services a total of $1,400,000 for fiscal years 1999

9 through 2001.

10 SEC. 114. CONSOLIDATED CHILD CARE AND DEVELOPMENT

11 BLOCK GRANT.

12 (a) PURPOSE.—It is the purpose of this section to

13 amend the Child Care and Development Block Grant Act

14 of 1990 (referred to in this section as the ‘‘CCDBG Act’’)

15 and to consolidate other child care programs into the pro16 gram under that Act, in order to—

17 (1) eliminate program fragmentation and create

18 a seamless system of high quality child care that al19 lows for continuity of care for children as parents

20 move from welfare to work;

21 (2) provide for parental choice among high

22 quality child care programs; and

23 (3) increase the availability of high quality af24 fordable child care in order to promote self-suffi25 ciency and support working families.
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1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

2 658B of the CCDBG Act (42 U.S.C. 9858) is amended

3 to read as follows:

4 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

5 ‘‘(a) AUTHORIZATION OF DISCRETIONARY APPRO6 PRIATIONS OF BLOCK GRANT FUNDS.—For the purpose

7 of providing child care services for eligible children

8 through the awarding of grants to States under this sub9 chapter (other than the grants awarded under subsection

10 (b)) by the Secretary, there are authorized to be appro11 priated $2,000,000,000 for fiscal year 1996 and such

12 sums as may be necessary for fiscal years 1997 through

13 2002.

14 ‘‘(b) ENTITLEMENT TO STATES.—For the purpose of

15 providing child care services for eligible children, in addi16 tion to grants from appropriations authorized under sub17 section (a), there are authorized to be appropriated and

18 States shall be entitled to receive matching grants under

19 section 658Ob in amounts not to exceed in total

20 $1,555,000,000 for fiscal year 1997, $1,615,000,000 for

21 fiscal year 1998, $1,800,000,000 for fiscal year 1999,

22 $2,200,000,000 for fiscal year 2000, $2,475,000,000 for

23 fiscal year 2001, and $2,525,000,000 for fiscal year

24 2002.’’.

25 (c) USE OF BLOCK GRANT FUNDS.—
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1 (1) SERVICES TO FAMILIES IN WELFARE-TO2 WORK TRANSITION.—Section 658E(c)(3)(B) of the

3 CCDBG Act (42 U.S.C. 9588(c)(3)(B)) is amend4 ed—

5 (A) by redesignating clauses (i) and (ii) as

6 subclauses (I) and (II), respectively, and re7 aligning the margins accordingly;

8 (B) by striking ‘‘Subject’’ and inserting

9 the following:

10 ‘‘(i) IN GENERAL.—Subject’’; and

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

12 clause:

13 ‘‘(ii) SPECIAL RULES FOR FAMILIES

14 SEEKING TO BECOME OR BECOMING INDE15 PENDENT OF TEMPORARY EMPLOYMENT

16 ASSISTANCE.—

17 ‘‘(I) IN GENERAL.—Each State

18 agency referred to in section 658D

19 shall guarantee child care in accord20 ance with this Act—

21 ‘‘(aa) for any individual who

22 is participating in an education

23 or training activity (including

24 participation in a program estab25 lished under part F, G, or H of
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1 title IV of the Social Security

2 Act) if the State agency admin3 istering the program under part

4 F of that title approves the activ5 ity and determines that the indi6 vidual is participating satisfac7 torily in the activity;

8 ‘‘(bb) for each family with a

9 needy child (as defined in section

10 402(a)(1) of the Social Security

11 Act) requiring such care, to the

12 extent that such care is deter13 mined by the State agency to be

14 necessary to permit an individual

15 in the family to accept employ16 ment or remain employed, includ17 ing in a community service job

18 under part F, G, or H of title IV

19 of the Social Security Act; and

20 ‘‘(cc) to the extent that the

21 State agency determines that

22 such care is necessary for the

23 employment of an individual, if

24 the family of which the individual

25 is a member has ceased to receive
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1 assistance under the State plan

2 approved under part A of title IV

3 of the Social Security Act by rea4 son of increased hours of, or in5 come from, such employment, for

6 12 months after the last month

7 for which the family received as8 sistance described in such para9 graph.’’.

10 (2) SET-ASIDES FOR QUALITY AND EXPAN11 SION.—Section 658E(c)(3)(C) of the CCDBG Act

12 (42 U.S.C. 9858c(c)(3)(C)) is amended by striking

13 ‘‘25 percent’’ and inserting ‘‘10 percent’’.

14 (3) SUPPORT OF WELFARE-TO-WORK.—

15 (A) IN GENERAL.—Section 658E(c) of the

16 CCDBG Act (42 U.S.C. 9858c(c)) is amended

17 by adding the following:

18 ‘‘(6) SIGNIFICANT EXPENDITURES TO SUPPORT

19 WELFARE-TO-WORK TRANSITION.—The State plan

20 shall provide that the State will use significant por21 tions of amounts provided for child care services for

22 each of the following:

23 ‘‘(A) Families containing an individual re24 ceiving assistance under a State plan approved

25 under part A of title IV of the Social Security
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1 Act and participating in education, job search,

2 job training, work, or workforce programs;

3 ‘‘(B) Families containing an individual

4 who—

5 ‘‘(i) has ceased to receive assistance

6 under the temporary employment assist7 ance program under part A of title IV of

8 the Social Security Act as a result of in9 creased hours of, or increased income

10 from, employment, and no longer qualifies

11 for child care assistance on the basis of re12 ceiving such assistance under part A of

13 title IV of the Social Security Act; and

14 ‘‘(ii) the State determines requires

15 such child care assistance in order to con16 tinue such employment.

17 ‘‘(C) Families containing an individual

18 who—

19 ‘‘(i) is not described in subparagraph

20 (A) or (B); and

21 ‘‘(ii) has an annual income for a fiscal

22 year below 75 percent of the State median

23 income.’’.

24 (B) CONFORMING AMENDMENTS.—
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1 (i) Section 658E(c)(3)(B)(i)(I) of the

2 CCDBG Act, as redesignated by paragraph

3 (1), is amended by inserting ‘‘consistent

4 with paragraph (6)’’ after ‘‘child care serv5 ices’’.

6 (ii) Subsection 658F(a) is amended by

7 striking ‘‘Nothing’’ and inserting ‘‘Except

8 as provided in section 658E(c)(B)(ii),

9 nothing’’.

10 (4) SLIDING FEE SCALE.—Section 658E(c)(5)

11 of the CCDBG Act (42 U.S.C. 9858c(c)(5)) is

12 amended by inserting ‘‘described in subparagraphs

13 (B) and (C) of paragraph (6)’’ after ‘‘families’’.

14 (d) LIMITED ENTITLEMENT; ALLOCATION.—

15 (1) IN GENERAL.—The CCDBG Act (42 U.S.C.

16 9858) is amended by adding after section 6580 the

17 following new section:

18 ‘‘SEC. 6580b. ALLOCATION OF LIMITATION ON ENTITLE19 MENT.

20 ‘‘(a) Each State shall be entitled to payment from

21 the Secretary of an amount equal to the lesser of—

22 ‘‘(1) the Federal medical assistance percentage

23 (as defined in section 1905(b) or, as applicable, in

24 section 1118 of the Social Security Act) of the

25 amount of expenditures made by the State in provid-
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1 ing child care services pursuant to this subchapter,

2 other than expenditures of funds appropriated under

3 subsection 658B(a); or

4 ‘‘(2) the limitation determined under subsection

5 (b).

6 ‘‘(b) LIMITATION ON ENTITLEMENT.—Subject to the

7 redistribution procedures under subsection (c), the limita8 tion for a State for a fiscal year under this paragraph shall

9 be an amount equal to the product of—

10 ‘‘(1) the sum of the total amounts of Federal

11 payments for fiscal year 1994 to the State under—

12 ‘‘(A) section 402(g)(3)(A) of the Social Se13 curity Act (as that section was in effect before

14 October 1, 1995) for amounts expended for

15 child care pursuant to paragraph (1) of such

16 subsection;

17 ‘‘(B) section 403(l)(1)(A) of that Act (as

18 so in effect) for amounts expended for child

19 care pursuant to section 402(g)(1)(A) of that

20 Act (as so in effect), in the case of a State with

21 respect to which section 1108 of that Act ap22 plies; and

23 ‘‘(C) section 403(n) of that Act (as so in

24 effect) for child care services pursuant to sec25 tion 402(i) of that Act;
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1 divided by the total amount of such Federal pay2 ments to all States for fiscal year 1994; and

3 ‘‘(2) the total limitation for all States under

4 subsection 658B(b) for such fiscal year, reduced by

5 the amount reserved under subsection (d).

6 ‘‘(c) ADJUSTMENT OF LIMITATION; REALLOT7 MENT.—

8 ‘‘(1) AVAILABILITY OF UNUSED AMOUNTS FOR

9 REALLOTMENT.—If the Secretary determines that a

10 State will not use the full limitation amount avail11 able to it for a fiscal year (as calculated under sub12 section (b)), the Secretary shall—

13 ‘‘(A) reduce that State’s limitation under

14 subsection (b) by the amount the Secretary de15 termines the State will not use; and

16 ‘‘(B) increase by no more than the amount

17 of reductions under subparagraph (A) the limi18 tations available to States under subsection (b)

19 that have requested an increase in their limita20 tions.

21 ‘‘(2) REALLOTMENT FORMULA.—Limitation in22 creases available under paragraph (1) shall be made

23 available to each State requesting an increase in its

24 limitation amount that bears the same ratio to the

25 total available increase in limitations as the State’s
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1 historical expenditures described in subsection (b)(1)

2 bear to the sum of such historical expenditures for

3 all States requesting an increase in their limitations.

4 ‘‘(d) AMOUNTS RESERVED FOR INDIAN TRIBES.—

5 The Secretary shall reserve not more than 3 percent of

6 the amount appropriated under section 658B(b) each fis7 cal year for payments to Indian tribes and tribal organiza8 tions with applications approved under section 658Oa(c).

9 The amounts reserved under the prior sentence shall be

10 available to make grants to or enter into contracts with

11 Indian tribes or tribal organizations consistent with sec12 tion 658Oa(c), without a requirement of matching funds

13 by the Indian tribes or tribal organizations.

14 ‘‘(e) SAME TREATMENT AS ALLOTMENTS.—Amounts

15 paid to a State or Indian tribe under subsections (a) and

16 (d) shall be subject to the same requirements under this

17 subchapter as amounts paid from the allotment under sec18 tion 658Oa, except that section 658J(c) shall not apply.’’.

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

20 658O of the CCDBG Act (42 U.S.C. 9858m) is

21 amended—

22 (i) by striking ‘‘SEC. 658O.’’ and inserting

23 ‘‘SEC. 658Oa. DISCRETIONARY APPROPRIA24 TIONS.’’;

25 (ii) in subsection (a)—
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1 (I) in paragraph (1), by striking

2 ‘‘this subchapter’’ and inserting ‘‘sec3 tion 658B(a)’’; and

4 (II) in paragraph (2), by striking

5 658B’’ and inserting ‘‘658B(a)’’; and

6 (iii) in subsection (b)(1), by striking ‘‘sec7 tion 658B’’ and inserting ‘‘section 658B(a)’’.

8 (B) Subsection 658J(c) of the CCDBG Act (42

9 U.S.C. 985m) is amended by striking ‘‘658O’’ and

10 inserting ‘‘658Oa’’.

11 (e) IMPROVING QUALITY.—

12 (1) INCREASE IN REQUIRED FUNDING.—Section

13 658G of the CCDBG Act (42 U.S.C. 9858e) is

14 amended by striking ‘‘not less than 20 percent of

15 the’’.

16 (2) QUALITY IMPROVEMENT INCENTIVE INITIA17 TIVE.—Section 658G of the CCDBG Act (42 U.S.C.

18 9858e) is further amended—

19 (A) by adding at the end the following new

20 paragraphs:

21 ‘‘(6) BEFORE- AND AFTER-SCHOOL ACTIVI22 TIES.—Increasing the availability of before- and

23 after-school care.

24 ‘‘(7) INFANT CARE.—Increasing the availability

25 of child care for infants under the age of 18 months.
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1 ‘‘(8) NONTRADITIONAL WORK HOURS.—Increas2 ing the availability of child care between the hours

3 of 5:00 p.m. and 8:00 a.m.’’;

4 (B) by striking ‘‘A State’’ and inserting

5 ‘‘(a) IN GENERAL.—A State’’; and

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

7 subsection:

8 ‘‘(b) QUALITY IMPROVEMENT INCENTIVE INITIA9 TIVE.—

10 ‘‘(1) IN GENERAL.—The Secretary shall estab11 lish a child care quality improvement incentive ini12 tiative to make funds available to States that dem13 onstrate progress in the implementation of—

14 ‘‘(A) innovative teacher training programs

15 such as the Department of Defense staff devel16 opment and compensation program for child

17 care personnel; or

18 ‘‘(B) enhanced child care quality standards

19 and licensing and monitoring procedures.

20 ‘‘(2) FUNDING.—From the amounts made

21 available for each fiscal year under subsection (a),

22 the Secretary shall reserve not to exceed

23 $25,000,000 for each such fiscal year to carry out

24 this subsection.’’.

25 (f) PAYMENTS.—
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1 (1) Section 658H of the CCDBG Act (42

2 U.S.C. 9858f) is repealed.

3 (2) Section 658J(a) of the CCDBG Act (42

4 U.S.C. 9858h) is amended to read as follows:

5 ‘‘(a) IN GENERAL.—Subject to the availability of ap6 propriations under Section 658B(a) and the limitations

7 and other requirements under 658Ob, a State that has

8 an application approved by the Secretary under section

9 658E shall be entitled to a payment in a fiscal year in

10 an amount equal to the sum of its allotment under section

11 658Oa for that year and the amount determined for that

12 State for that fiscal year under 658Ob(a).’’.

13 (g) ANNUAL REPORT.—Section 658K(a) of the

14 CCDBG Act (42 U.S.C. 9858i) is amended by adding

15 after paragraph (6) the following new paragraph:

16 ‘‘(7) specifying the total amount expended by

17 the State for child care under part

18 658E(c)(3)(B)(ii), and describing the types of child

19 care provided, such as child care provided in the

20 case of a family that has ceased to receive assistance

21 under part A of title IV of the Social Security Act

22 because of increased hours of, or increased income

23 from, employment; or child care provided in the case

24 of a family that is not receiving assistance under
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1 that part but would be at risk of becoming eligible

2 for such assistance if child care was not provided.’’.

3 (h) PROGRAM REPEALS.—

4 (1) STATE DEPENDENT CARE GRANTS.—Sub5 chapter E of chapter 8 of subtitle A of title VI of

6 the Omnibus Budget Reconciliation Act of 1981 (42

7 U.S.C. 9871 et seq.) is repealed.

8 (2) CHILD DEVELOPMENT ASSOCIATE SCHOLAR9 SHIP ASSISTANCE ACT.—The Child Development As10 sociate Scholarship Assistance Act of 1985 (42

11 U.S.C. 10901 et seq.) is repealed.

12 SEC. 115. EFFECTIVE DATES.

13 The amendments made by this subtitle are effective

14 with respect to calendar quarters beginning on or after

15 October 1, 1996.

16 Subtitle C—Work First

17 SEC. 121. WORK FIRST PROGRAM.

18 (a) ESTABLISHMENT AND OPERATION OF PRO19 GRAM.—Title IV (42 U.S.C. 601 et seq.) is amended by

20 striking part F and inserting the following:

21 ‘‘PART F—WORK FIRST PROGRAM

22 ‘‘SEC. 481. STATE ROLE.

23 ‘‘(a) PROGRAM REQUIREMENTS.—Each State that

24 operates a program under part A shall establish and oper-
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1 ate a Work First program that meets the following re2 quirements:

3 ‘‘(1) OBJECTIVE.—The objective of the pro4 gram is for each program participant to find and

5 hold a full-time unsubsidized paid job, and for this

6 goal to be achieved in a cost-effective fashion.

7 ‘‘(2) METHOD.—the method of the program is

8 to connect recipients of assistance under the State

9 plan under part A with the private sector labor mar10 ket as soon as possible and offer them the support

11 and skills necessary to remain in the labor market.

12 Each component of the program should be per13 meated with an emphasis on employment and with

14 an understanding that minimum wage jobs are a

15 stepping stone to more highly paid employment. The

16 program shall provide recipients with education,

17 training, job search and placement, work

18 supplementation, temporary subsidized jobs, or such

19 other services as the State considers necessary to

20 help a recipient obtain private sector employment.

21 ‘‘(3) JOB CREATION.—The creation of jobs,

22 with an emphasis on private sector jobs, shall be a

23 component of the program and shall be a priority for

24 each State office with responsibilities under the pro25 gram.
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1 ‘‘(4) FORMS OF ASSISTANCE.—The State shall

2 provide assistance to participants in the program in

3 the form of education, training, job placement serv4 ices (including vouchers for job placement services),

5 work supplementation programs, temporary sub6 sidized job creation, job counseling, assistance in es7 tablishing microenterprises, or other services to pro8 vide individuals with the support and skills necessary

9 to obtain and keep employment in the private sector.

10 ‘‘(5) MUTUAL RESPONSIBILITY PLANS.—

11 ‘‘(A) IN GENERAL.—The State agency

12 shall develop a mutual responsibility plan for

13 each program participant, which will be an indi14 vidualized comprehensive plan, developed by the

15 State agency and the participant, to move the

16 participant into a full-time unsubsidized job.

17 The agreement should detail the education,

18 training, or skills that the individual will be re19 ceiving to obtain a full-time unsubsidized job,

20 and the obligations of the individual.

21 ‘‘(B)(i) HOURS OF PARTICIPATION RE22 QUIREMENT.—The agreement shall provide that

23 the individual, except as provided in clause (ii),

24 shall participate in activities in accordance with

25 the agreement for—
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1 ‘‘(I) not fewer than 20 hours per week

2 during fiscal years 1997 and 1998;

3 ‘‘(II) not fewer than 25 hours per

4 week during fiscal year 1999; and

5 ‘‘(III) not fewer than 30 hours per

6 week thereafter.

7 ‘‘(ii) At the option of the State, a parent

8 of a child under age 6 may be required to par9 ticipate in such activities for fewer hours than

10 specified in clause (i) (but not fewer than 20

11 hours per week).

12 ‘‘(6) CASELOAD PARTICIPATION RATES.—The

13 program shall comply with section 488.

14 ‘‘(7) COMMUNITY SERVICE.—On and after the

15 date which is two years after the date of enactment

16 of this part, (unless the State plan under part A

17 specifically opts out of this provision) the State

18 agency shall require a parent or caretaker who—

19 ‘‘(A) is receiving assistance under part A,

20 and has received that assistance for three

21 months;

22 ‘‘(B) is not exempt from work require23 ments; and

24 ‘‘(C) is not participating in the programs

25 established under parts F, G, and H as deter-
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1 mined under section 488, in community service

2 employment,

3 to participate in community service, with minimum

4 hours per week and tasks to be determined by the

5 State (and the State shall offer such employment to

6 the parent or caretaker).

7 ‘‘(8) NONDISPLACEMENT IN WORK ACTIVI8 TIES.—

9 ‘‘(A) IN GENERAL.—A State program

10 under this part or under part G or H may not

11 be operated in a manner that results in—

12 ‘‘(i) the displacement of any currently

13 employed worker or position (including

14 partial displacement such as a reduction in

15 the hours of nonovertime work, wages, or

16 employment benefits), or the impairment

17 of an existing contract for services or a col18 lective bargaining agreement;

19 ‘‘(ii) the employment or assignment of

20 a participant or the filling of a position

21 when—

22 ‘‘(I) any other individual is on

23 layoff from the same or an equivalent

24 position, or
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1 ‘‘(II) the employer has termi2 nated the employment of a regular

3 employee or otherwise reduced its

4 workforce with the effect of filling the

5 vacancy so created with a participant

6 subsidized under the program under

7 this part or under part G or H; or

8 ‘‘(iii) an infringement of the pro9 motional opportunity of a currently em10 ployed individual.

11 Funds available to carry out the program under

12 this part or under part G or H may not be used

13 to assist, promote, or deter union organizing.

14 ‘‘(B) ENFORCING NONDISPLACEMENT PRO15 TECTIONS.—

16 ‘‘(i) GRIEVANCE PROCEDURE.—Each

17 State shall establish and maintain a griev18 ance procedure for resolving complaints al19 leging violation of a prohibition or require20 ment of subparagraph (A). Such a proce21 dure shall include an opportunity for a

22 hearing. The procedure’s remedies shall in23 clude, but are not limited to, termination

24 or suspension of payments to the employer,

25 prohibition of the placement of the pro-
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1 gram participant, reinstatement of an em2 ployee, and other relief to make an ag3 grieved employee whole.

4 ‘‘(ii) OTHER LAWS OR CONTRACTS.—

5 Nothing in clause (i) shall be construed to

6 prohibit a complainant from pursuing a

7 remedy authorized under another Federal,

8 State, or local law or a contract or collec9 tive bargaining agreement for a violation of

10 a prohibition or requirement of subpara11 graph (A).

12 ‘‘(b) ANNUAL REPORTS.—

13 ‘‘(1) COMPLIANCE WITH PERFORMANCE MEAS14 URES.—Each State that operates a program under

15 this part shall submit to the Secretary annual re16 ports on its performance relative to the performance17 based measures established under section 413(a)(4).

18 ‘‘(2) COMPLIANCE WITH PARTICIPATION

19 RATES.—Each State that operates a program under

20 this part for a fiscal year shall submit to the Sec21 retary a report on the participation rate achieved by

22 the State for the fiscal year.

23 ‘‘SEC. 482. REVAMPED JOBS PROGRAM.

24 ‘‘A State that establishes a program under this part

25 may operate a program similar to the program known as
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1 the ‘GAIN Program’ that has been operated by Riverside

2 County, California, under this Act in effect immediately

3 before the date this part (as amended by the Work First

4 and Personal Responsibility Act of 1996) first applies to

5 the State of California.

6 ‘‘SEC. 483. USE OF PLACEMENT COMPANIES.

7 ‘‘(a) IN GENERAL.—A State that establishes a pro8 gram under this part may enter into contracts with private

9 companies (whether operated for profit or not for profit)

10 for the placement of participants in the program in posi11 tions of full-time employment, preferably in the private

12 sector, for wages sufficient to eliminate the need of such

13 participants for cash assistance.

14 ‘‘(b) REQUIRED CONTRACT TERMS.—Each contract

15 entered into under this section with a company shall meet

16 the following requirements:

17 ‘‘(1) PROVISION OF JOB READINESS AND SUP18 PORT SERVICES.—The contract shall require the

19 company to provide, to any program participant who

20 presents to the company, a voucher issued under

21 subsection (d), intensive personalized support and

22 job readiness services designed to prepare the indi23 vidual for employment and ensure the continued suc24 cess of the individual in employment.

25 ‘‘(2) PAYMENTS.—
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1 ‘‘(A) IN GENERAL.—The contract shall

2 provide for payments to be made to the com3 pany with respect to each program participant

4 who presents to the company a voucher issued

5 under subsection (d).

6 ‘‘(B) STRUCTURE.—The contract shall

7 provide for payment of the majority of the

8 amounts under the contract with respect to a

9 program participant after the company has

10 placed the participant in a position of full-time

11 employment and the participant has been em12 ployed in the position for such period of not less

13 than 5 months as the State deems appropriate.

14 ‘‘(c) COMPETITIVE BIDDING REQUIRED.—Contracts

15 under this section shall be awarded only after competitive

16 bidding.

17 ‘‘(d) VOUCHERS.—The State shall issue a voucher to

18 each program participant whose mutual responsibility plan

19 provides for the use of placement companies under this

20 section, indicating that the participant is eligible for the

21 services of such a company.

22 ‘‘SEC. 484. TEMPORARY SUBSIDIZED JOB CREATION.

23 ‘‘A State that establishes a program under this part

24 may establish a program similar to the program known

25 as ‘JOBS Plus’ that has been operated by the State of
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1 Oregon under this Act in effect immediately before the

2 date this part (as amended by the Work First and Per3 sonal Responsibility Act of 1996) first applies to the State

4 of Oregon.

5 ‘‘SEC. 485. MICROENTERPRISE.

6 ‘‘(a) GRANTS AND LOANS TO NONPROFIT ORGANIZA7 TIONS FOR THE PROVISION OF TECHNICAL ASSISTANCE,

8 TRAINING, AND CREDIT TO LOW-INCOME ENTRE9 PRENEURS.—A State that establishes a program under

10 this part may make grants and loans to nonprofit organi11 zations to provide technical assistance, training, and credit

12 to low-income entrepreneurs for the purpose of establish13 ing micro enterprises.

14 ‘‘(b) MICROENTERPRISE DEFINED.—For purposes of

15 this section, the term ‘microenterprise’ means a commer16 cial enterprise which has 5 or fewer employees, 1 or more

17 of whom owns the enterprise.

18 ‘‘SEC. 486. WORK SUPPLEMENTATION PROGRAM.

19 ‘‘(a) IN GENERAL.—A State that establishes a pro20 gram under this part may institute a work supple21 mentation program under which the State, to the extent

22 it considers appropriate, may reserve sums that would oth23 erwise be payable under the State plan under part A to

24 participants in the program and use the sums instead for
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1 the purpose of providing and subsidizing jobs for the par2 ticipants (as described in subsection (c)(3)(A) and (B)).

3 ‘‘(b) STATE FLEXIBILITY.—

4 ‘‘(1) Nothing in this part, or in any State plan

5 approved under part A, shall be construed to prevent

6 a State from operating (on such terms and condi7 tions and in such cases as the State may find to be

8 necessary or appropriate) a work supplementation

9 program in accordance with this section and section

10 484 (as in effect before the date this part (as

11 amended by the Work First and Personal Respon12 sibility Act of 1996) first applies to the State).

13 ‘‘(2) Notwithstanding any other provision of

14 law, a State may adjust the levels of the standards

15 of need under the State plan as the State determines

16 to be necessary and appropriate for carrying out a

17 work supplementation program under this section.

18 ‘‘(3) Notwithstanding any other provision of

19 law, a State operating a work supplementation pro20 gram under this section may provide that the need

21 standards in effect in those areas of the State in

22 which the program is in operation may be different

23 from the need standards in effect in the areas in

24 which the program is not in operation, and the State

25 may provide that the need standards for categories
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1 of recipients may vary among such categories to the

2 extent the State determines to be appropriate on the

3 basis of ability to participate in the work

4 supplementation program.

5 ‘‘(4) Notwithstanding any other provision of

6 law, a State may make such further adjustments in

7 the amounts of assistance provided under the plan

8 to different categories of recipients (as determined

9 under paragraph (3)) in order to offset increases in

10 benefits from needs-related programs (other than

11 the State plan approved under part A) as the State

12 determines to be necessary and appropriate to fur13 ther the purposes of the work supplementation pro14 gram.

15 ‘‘(5) In determining the amounts to be reserved

16 and used for providing and subsidizing jobs under

17 this section as described in subsection (a), the State

18 may use a sampling methodology.

19 ‘‘(6) Notwithstanding any other provision of

20 law, a State operating a work supplementation pro21 gram under this section may reduce or eliminate the

22 amount of earned income to be disregarded under

23 the State pan to the extent the State determines to

24 be necessary and appropriate to further the purposes

25 of the work supplementation program.
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1 ‘‘(c) RULES RELATING TO SUPPLEMENTED JOBS.—

2 ‘‘(1) A work supplementation program operated

3 by a State under this section may require that any

4 individual who is an eligible individual (as deter5 mined under paragraph (2)) shall take a supple6 mented job (as defined in paragraph (3)) to the ex7 tent that supplemented jobs are available under the

8 program. Payments by the State to individuals or to

9 employers under the work supplementation program

10 shall be treated as expenditures incurred by the

11 State for temporary employment assistance under

12 part A except as limited by subsection (d).

13 ‘‘(2) For purposes of this section, an eligible in14 dividual is an individual who is in a category which

15 the State determines should be eligible to participate

16 in the work supplementation program, and who

17 would, at the time of placement in the job involved,

18 be eligible for assistance under an approved State

19 plan if the State did not have a work supple20 mentation program in effect.

21 ‘‘(3) For purposes of this subsection, a supple22 mented job is—

23 ‘‘(A) a job provided to an eligible individ24 ual by the State or local agency administering

25 the State plan under part A; or
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1 ‘‘(B) a job provided to an eligible individ2 ual by any other employer for which all or part

3 of the wages are paid by the State or local

4 agency.

5 A State may provide or subsidize under the program any

6 job which the State determines to be appropriate.

7 ‘‘(d) COST LIMITATION.—The amount of the Federal

8 payment to a State under section 413 for expenditures in9 curred in making payments to individuals and employers

10 under a work supplementation program under this section

11 shall not exceed the amount which would otherwise be pay12 able under section 413 if the family of each individual em13 ployed in the State program under this section had re14 ceived the maximum amount of assistance payable under

15 the State plan under part A to such a family with no in16 come (without regard to adjustments under subsection

17 (b)) for the lesser of—

18 ‘‘(1) 9 months; or

19 ‘‘(2) the number of months in which the indi20 vidual was employed in the program.

21 ‘‘(e) RULES OF INTERPRETATION.—

22 ‘‘(1) This section shall not be construed as re23 quiring the State or local agency administering the

24 State plan under this part to provide employee sta25 tus to an eligible individual to whom the State or
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1 local agency provides a job under the work

2 supplementation program (or with respect to whom

3 the State or local agency provides all or part of the

4 wages paid to the individual by another entity under

5 the program), or as requiring any State or local

6 agency to require that an eligible individual filling a

7 job position provided by another entity under the

8 program be provided employee status by the entity

9 during the first 13 weeks the individual fills the po10 sition.

11 ‘‘(2) Wages paid under a work supplementation

12 program shall be considered to be earned income for

13 purposes of any provision of law.

14 ‘‘(f) PRESERVATION OF MEDICAID ELIGIBILITY.—

15 Any State that chooses to operate a work supplementation

16 program under this section shall provide that any individ17 ual who participates in the program, and any child or rel18 ative of the individual (or other individual) living in the

19 same household as the individual who would be eligible for

20 assistance under the State plan under part A if the State

21 did not have a work supplementation program, shall be

22 considered individuals receiving assistance under the State

23 plan under part A for purposes of eligibility for medical

24 assistance under the State plan approved under title XIX.
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1 ‘‘SEC. 487. PARTICIPATION RULES.

2 ‘‘A State that establishes a program under this part

3 may require any individual receiving assistance under the

4 State plan under part A to participate in the program,

5 except for an individual described in section

6 402(c)(2)(C)(ii).

7 ‘‘SEC. 488. CASELOAD PARTICIPATION RATES.

8 ‘‘(a) REQUIREMENT.—A State that operates a pro9 gram under this part shall achieve a participation rate for

10 the following fiscal years of not less than the following

11 percentage:

‘‘Fiscal year: Percentage:

1997 ......................................................................................... 30

1998 ......................................................................................... 35

1999 ......................................................................................... 40

2000 ......................................................................................... 45

2001 ......................................................................................... 50

2002 ......................................................................................... 50

2003 or later ............................................................................ 52.

12 ‘‘(b) PARTICIPATION RATE DEFINED.—

13 ‘‘(1) IN GENERAL.—As used in this subsection,

14 the term ‘participation rate’ means, with respect to

15 a State and a fiscal year, an amount equal to—

16 ‘‘(A)(i) the average monthly number of

17 families receiving assistance that include an in18 dividual who, during the fiscal year, participate

19 in the State program established under this

20 part or part G or H; plus

21 ‘‘(ii) the average monthly number of fami22 lies receiving assistance that include an individ-
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1 ual working in unsubsidized employment for the

2 number of hours specified in section

3 481(a)(5)(B); plus

4 ‘‘(iii) the average monthly number of fami5 lies receiving assistance subject to a penalty de6 scribed in section 402(c)(1) but who have not

7 been subject to such a penalty for more than

8 three months within the preceding 12-month

9 period; divided by

10 ‘‘(B) the average monthly number of fami11 lies receiving assistance that include an individ12 ual not described in section 402(c)(2)(C)(ii) and

13 for whom a personal responsibility agreement is

14 in effect under section 402 during the fiscal

15 year.

16 ‘‘(2) SPECIAL RULE.—For each of the first six

17 months after an individual ceases to receive assist18 ance under a State plan approved under part A by

19 reason of having become employed in an

20 unsubsidized job, the individual shall be considered

21 to be participating in the State program established

22 under this part for the purposes of subparagraph

23 (A), and to be an adult recipient of such assistance

24 for the purposes of subparagraph (B).
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1 ‘‘(c) STATE COMPLIANCE REPORTS.—Each State

2 that operates a program under this part for a fiscal year

3 shall submit to the Secretary a report on the participation

4 rate of the State for the fiscal year.

5 ‘‘(d) EFFECT OF FAILURE TO MEET PARTICIPATION

6 RATES.—

7 ‘‘(1) IN GENERAL.—If a State reports that the

8 State has failed to achieve the participation rate re9 quired by subsection (a) for the fiscal year, the Sec10 retary may make recommendations for changes in

11 the State programs established under this part and

12 part G or H. The State may elect to follow such

13 recommendations, and shall demonstrate to the Sec14 retary how the State will achieve the required par15 ticipation rates.

16 ‘‘(2) SECOND CONSECUTIVE FAILURE.—Not17 withstanding paragraph (1), if a State fails to

18 achieve the participation rate required by subsection

19 (a) for 2 consecutive fiscal years, the Secretary

20 may—

21 ‘‘(A) require the State to make changes in

22 the State programs established under this part

23 and part G or H; and
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1 ‘‘(B) reduce by up to 5 percent the amount

2 otherwise payable to the State under section

3 413(a)(1).

4 ‘‘SEC. 489. FEDERAL ROLE.

5 ‘‘(a) APPROVAL OF STATE PLANS.—

6 ‘‘(1) IN GENERAL.—Within 60 days after the

7 date a State submits to the Secretary a plan that

8 provides for the establishment and operation of a

9 Work First program that meets the requirements of

10 section 481, the Secretary shall approve the plan.

11 ‘‘(2) AUTHORITY TO EXTEND APPROVAL DEAD12 LINE.—The 60-day deadline established in para13 graph (1) with respect to a State may be extended

14 in accordance with an agreement between the Sec15 retary and the State.

16 ‘‘PART G—WORKFARE PROGRAM

17 ‘‘SEC. 490. ESTABLISHMENT AND OPERATION OF PROGRAM.

18 ‘‘(a) IN GENERAL.—A State that establishes a Work

19 First program under part F shall establish and carry out

20 either a workfare program that meets the requirements

21 of this part or a job placement voucher program under

22 part H.

23 ‘‘(b) OBJECTIVE.—The objective of the workfare pro24 gram is for each program participant to find and hold a
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1 full-time unsubsidized paid job, and for this goal to be

2 achieved in a cost-effective fashion.

3 ‘‘(c) CASE MANAGEMENT TEAMS.—The State shall

4 assign to each program participant a case management

5 team that shall meet with the participant and assist the

6 participant to choose the most suitable workfare job under

7 subsection (e), (f), or (g) and to eventually obtain a full8 time unsubsidized paid job.

9 ‘‘(d) PROVISION OF JOBS.—The State shall provide

10 each participant in the program with a community service

11 job that meets the requirements of subsection (e) or a sub12 sidized job that meets the requirements of subsection (f)

13 or (g).

14 ‘‘(e) COMMUNITY SERVICE JOBS.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graphs (2) and (3) and section 481(a)(5)(B)(ii),

17 each participant shall work for 20 hours per week

18 during fiscal years 1997 and 1998, not fewer than

19 25 hours per week during fiscal year 1999, and not

20 fewer than 30 hours thereafter in a community serv21 ice job, and shall be paid at a rate which is 100 per22 cent of the maximum amount of assistance that may

23 be provided under the State plan approved under

24 part A to a family of the same size and composition

25 with no income.
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1 ‘‘(2) EXCEPTION.—(A) If the participant has

2 obtained unsubsidized part-time employment, the

3 State shall provide the participant with a part-time

4 community service job.

5 ‘‘(B) If the State provides a participant a part6 time community service job under subparagraph (A),

7 the State shall ensure that the participant works for

8 not fewer than the number of hours specified in

9 paragraph (1).

10 ‘‘(3) WAGES NOT CONSIDERED EARNED IN11 COME.—Wages paid under a workfare program shall

12 not be considered to be earned income for purposes

13 of any provision of law.

14 ‘‘(4) COMMUNITY SERVICE JOB DEFINED.—For

15 purposes of this section, the term ‘community serv16 ice job’ means—

17 ‘‘(A) a job provided to a participant by the

18 State administering the State plan under part

19 A; or

20 ‘‘(B) a job provided to a participant by any

21 other employer for which all or part of the

22 wages are paid by the State.

23 A State may provide or subsidize under the program any

24 job which the State determines to be appropriate.
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1 ‘‘(f) TEMPORARY SUBSIDIZED JOB CREATION.—A

2 State that establishes a workfare program under this part

3 may establish a program under this Act similar to the pro4 gram operated by the State of Oregon known as ‘JOBS

5 Plus’.

6 ‘‘(g) WORK SUPPLEMENTATION PROGRAM.—

7 ‘‘(1) IN GENERAL.—A State that establishes a

8 workfare program under this part may institute a

9 work supplementation program under which the

10 State, to the extent it considers appropriate, may re11 serve the sums that would otherwise be payable to

12 participants in the program as a community service

13 minimum wage and use the sums instead for the

14 purpose of providing and subsidizing private sector

15 jobs for the participants.

16 ‘‘(2) EMPLOYER AGREEMENT.—An employer

17 who provides a private sector job to a participant

18 under paragraph (1) shall agree to provide to the

19 participant an amount in wages equal to the poverty

20 threshold for a family of three.

21 ‘‘(h) JOB SEARCH REQUIREMENT.—The State shall

22 require each participant to spend a minimum of 5 hours

23 per week on activities related to securing unsubsidized

24 full-time employment in the private sector.
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1 ‘‘(i) USE OF PLACEMENT COMPANIES.—A State that

2 establishes a workfare program under this part may enter

3 into contracts in accordance with section 483 with private

4 companies (whether operated for profit or not for profit)

5 for the placement of participants in the program in posi6 tions of full-time employment, preferably in the private

7 sector, for wages sufficient to eliminate the need of such

8 participants for cash assistance.

9 ‘‘(j) MAXIMUM OF THREE COMMUNITY SERVICE

10 JOBS.—A program participant may not receive more than

11 3 community service jobs under the program.

12 ‘‘PART H—JOB PLACEMENT VOUCHER PROGRAM

13 ‘‘SEC. 495. JOB PLACEMENT VOUCHER PROGRAM.

14 ‘‘A State that is not operating a workfare program

15 under part G shall establish and operate a job placement

16 voucher program under this part that meets the following

17 requirements:

18 ‘‘(1) The program shall offer each program par19 ticipant a voucher which the participant may use to

20 obtain employment in the private sector.

21 ‘‘(2) An employer who receives a voucher issued

22 under the program from an individual may redeem

23 the voucher at any time after the individual has been

24 employed by the employer for 6 months, unless an-
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1 other employee of the employer was displaced by the

2 employment of the individual.

3 ‘‘(3) Upon presentation of a voucher by an em4 ployer to the State agency responsible for the admin5 istration of the program, the State agency shall pay

6 to the employer an amount equal to 50 percent of

7 that total amount of assistance provided under the

8 State plan under part A to the family of which the

9 individual is a member for the most recent 12

10 months for which the family was eligible for such as11 sistance.’’.

12 (b) CONFORMING AMENDMENTS.—

13 (1) Section 1108 of the Social Security Act (42

14 U.S.C. 1308) is amended—

15 (A) in subsection (a), by striking ‘‘or, in

16 the case of part A of title IV, section 403(k)’’;

17 and

18 (B) in subsection (d), by striking ‘‘(exclu19 sive of any amounts on account of services and

20 items to which, in the case of part A of such

21 title, section 403(k) applies)’’.

22 (2) Section 1902(a)(10)(A)(i)(I) of that Act (42

23 U.S.C. 1396a(a)(19)(A)(i)(I)) is amended—

24 (A) by striking ‘‘402(a)(37), 406(h), or’’;

25 and
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1 (B) by striking ‘‘482(e)(6)’’ and inserting

2 ‘‘486(f)’’.

3 (3) Section 1928(a)(1) of the Act (42 U.S.C.

4 1396s(a)(1)) is amended by striking ‘‘482(e)(6)’’

5 and inserting ‘‘486(f)’’.

6 (c) INTENT OF THE CONGRESS.—The Congress in7 tends for State activities under section 484 of the Social

8 Security Act (as added by section 121(a) of this Act) to

9 emphasize the use of the funds that would otherwise be

10 used to provide individuals with assistance under part A

11 of title IV of the Social Security Act to subsidize the wages

12 of such individuals in temporary jobs.

13 (d) SENSE OF THE CONGRESS.—It is the sense of

14 the Congress that States should focus the resources of the

15 program under part F of title IV of the Social Security

16 Act, as amended by this subtitle, on individuals who have

17 not attained 25 years of age in order to break the cycle

18 of welfare dependency.

19 (e) EFFECTIVE DATE.—This section takes effect Oc20 tober 1, 1996.

21 SEC. 122. REGULATIONS.

22 The Secretary of Health and Human Services shall

23 prescribe such regulations as may be necessary to imple24 ment the amendments made by this subtitle.
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1 SEC. 123. APPLICABILITY TO STATES.

2 (a) STATE OPTION TO ACCELERATE APPLICABIL3 ITY.—If a State formally notifies the Secretary of Health

4 and Human Services that the State desires to accelerate

5 the applicability to the State of the amendments made by

6 this title, the amendments shall apply to the State on and

7 after such earlier date as the State may select; provided,

8 that only funding otherwise provided for grants to States

9 to carry out part F of title IV, as that part as in effect

10 on January 1, 1996, shall be available to States to carry

11 out parts F, G, and H of title IV before October 1, 1996.

12 (b) STATE OPTION TO DELAY APPLICABILITY UNTIL

13 WAIVERS EXPIRE.—The amendments made by this sub14 title, other than participation requirements under sections

15 481(a)(5)(B), 481(a)(6), and 488 of the Social Security

16 Act, shall not apply to areas in a State with respect to

17 which there is in effect a wavier issued under section 1115

18 of that Act for the State program established under part

19 A of title IV of that Act, until the waiver expires, if the

20 State formally notifies the Secretary of Health and

21 Human Services that the State desires to so delay such

22 effective date and the waiver’s terms and conditions have

23 been modified so that all cost comparisons reflect the

24 amendments made to part A of title IV of that Act. States

25 are subject to the funding provisions under parts A, F,
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1 G, and H and the participation requirements under sec2 tions 481(a)(5)(B), 481(a)(6), and 488 of that Act.

3 SEC. 124. ONE TIME INCREASES IN WORK FIRST PROGRAM

4 FUNDS.

5 To the extent that the Congressional Budget Office

6 estimates that amendments made by subtitle A of this title

7 increase the sum of payments to States under section

8 413(a)(1) of the Social Security Act, title XIX of that Act,

9 and the Food Stamp Act of 1977 (excluding—

10 (1) any effects from limitations on funding for

11 activities authorized under section 413(a)(3) of the

12 Social Security Act, as amended by this Act,

13 (2) any savings resulting from the State option

14 under section 402(d)(1)(C) of the Social Security

15 Act, as amended by this Act, and

16 (3) any savings resulting from section 416 of

17 the Social Security Act, as amended by this Act).

18 by less than—

19 $170,000,000 in fiscal year 1997,

20 $405,000,000 in fiscal year 1998,

21 $635,000,000 in fiscal year 1999,

22 $785,000,000 in fiscal year 2000,

23 $775,000,000 in fiscal year 2001, or

24 $825,000,000 in fiscal year 2002
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1 then the amount(s) in section 413(a)(2)(C) of the Social

2 Security Act for such fiscal year(s) shall be adjusted up3 ward by such difference(s).

4 Subtitle D—Pregnancy and Family Stability

5 SEC. 131. SUPERVISED LIVING ARRANGEMENTS FOR MI6 NORS.

7 (a) IN GENERAL.—Section 402(c) of the Social Secu8 rity Act, as amended by section 102 of this Act, is amend9 ed by adding at the end the following:

10 ‘‘(8) SUPERVISED LIVING ARRANGEMENTS FOR

11 MINORS.—

12 ‘‘(A) IN GENERAL.—Except as provided in

13 subparagraph (B), in the case of any individual

14 who is under age 18 and has never married,

15 and who has a needy child in his or her care

16 (or is pregnant and is eligible for temporary

17 employment assistance under the State plan—

18 ‘‘(i) such individual may receive such

19 assistance for the individual and such child

20 (or for herself in the case of a pregnant

21 woman) only if such individual and child

22 (or such pregnant woman) reside in a

23 place of residence maintained by a parent,

24 legal guardian, or other adult relative of
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1 such individual as such parent’s, guard2 ian’s, or adult relative’s own home; and

3 ‘‘(ii) such assistance (where possible)

4 shall be provided to the parent, legal

5 guardian, or other adult relative on behalf

6 of such individual and child.

7 ‘‘(B) ALTERNATIVE APPROPRIATE AR8 RANGEMENTS.—(i) In the case of an individual

9 described in clause (ii)—

10 ‘‘(I) the State agency shall assist such

11 individual in locating an appropriate adult12 supervised supportive living arrangement,

13 taking into consideration the needs and

14 concerns of the individual, unless the State

15 agency determines that the individual’s

16 current living arrangement is appropriate,

17 and thereafter shall require that the indi18 vidual (and child, if any) reside in such liv19 ing arrangement as a condition of the con20 tinued receipt of assistance under the plan

21 (or in an alternative appropriate arrange22 ment, should circumstances change and the

23 current arrangement cease to be appro24 priate), or
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1 ‘‘(II) if the State agency is unable,

2 after making diligent efforts, to locate any

3 such appropriate living arrangement, the

4 State agency shall provide for comprehen5 sive case management, monitoring, and

6 other social services consistent with the

7 best interests of the individual (and child)

8 while living independently (as determined

9 by the State agency).

10 ‘‘(ii) For purposes of clause (i), an individ11 ual is described in this clause if—

12 ‘‘(I) such individual has no parent or

13 legal guardian who is living and whose

14 whereabouts are known;

15 ‘‘(II) no living parent or legal guard16 ian of such individual allows the individual

17 to live in the home of such parent or

18 guardian;

19 ‘‘(III) the State agency determines

20 that the physical or emotional health of

21 such individual or any needy child of the

22 individual would be jeopardized if such in23 dividual and such needy child lived in the

24 same residence with such individual’s own

25 parent or legal guardian; or
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1 ‘‘(IV) the State agency otherwise de2 termines (in accordance with regulations

3 issued by the Secretary) that it is in the

4 best interest of the needy child to waive

5 the requirement of subparagraph (A) with

6 respect to such individual.’’.

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

8 subsection (a) takes effect in the same manner as the

9 amendment made by section 102 takes effect.

10 SEC. 132. NATIONAL CLEARINGHOUSE ON ADOLESCENT

11 PREGNANCY.

12 (a) IN GENERAL.—Title XX of the Social Security

13 Act (42 U.S.C. 1397–1397f), is amended by adding at the

14 end the following:

15 ‘‘SEC. 2008. NATIONAL CLEARINGHOUSE ON ADOLESCENT

16 PREGNANCY.

17 ‘‘(a) NATIONAL CLEARINGHOUSE ON ADOLESCENT

18 PREGNANCY.—

19 ‘‘(1) ESTABLISHMENT.—The Secretary shall es20 tablish, through grant or contract, a national center

21 for the collection and provision of programmatic in22 formation and technical assistance that relates to

23 adolescent pregnancy prevention programs, to be

24 known as the ‘National Clearinghouse on Adolescent

25 Pregnancy Prevention Programs’.
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1 ‘‘(2) FUNCTIONS.—The national center estab2 lished under paragraph (1) shall serve as a national

3 information and data clearinghouse, and as a train4 ing, technical assistance, and material development

5 source for adolescent pregnancy prevention pro6 grams including, but not limited to, abstinence pro7 grams. Such center shall—

8 ‘‘(A) develop and maintain a system for

9 disseminating information on all types of ado10 lescent pregnancy prevention programs, includ11 ing abstinence programs, and on the state of

12 adolescent pregnancy prevention program devel13 opment, including information concerning the

14 most effective model programs;

15 ‘‘(B) develop and sponsor a variety of

16 training institutes and curricula for adolescent

17 pregnancy prevention program staff, including

18 abstinence education;

19 ‘‘(C) identify model programs representing

20 the various types of adolescent pregnancy pre21 vention programs;

22 ‘‘(D) develop technical assistance materials

23 and activities to assist other entities in estab24 lishing and improving adolescent pregnancy
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1 prevention programs, including abstinence edu2 cation;

3 ‘‘(E) develop networks of adolescent preg4 nancy prevention programs for the purpose of

5 sharing and disseminating information; and

6 ‘‘(F) conduct such other activities as the

7 responsible Federal officials find will assist in

8 developing and carrying out programs or activi9 ties to reduce adolescent pregnancy.

10 ‘‘(b) FUNDING.—There are authorized to be appro11 priated $6 million for each of fiscal years 1997 through

12 2001 to carry out this section.’’.

13 (b) EFFECTIVE DATE.—The amendments made by

14 this section become effective October 1, 1996.

15 SEC. 133. REQUIRED COMPLETION OF HIGH SCHOOL OR

16 OTHER TRAINING FOR TEENAGE PARENTS.

17 (a) IN GENERAL.—Section 403(b)(1)(D), as added

18 by section 102 of this Act, is amended—

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

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

21 ‘‘(ii) in the case of a client who is a

22 custodial or expectant parent who is under

23 age 18 (or age 19, at the option of the

24 State), has not successfully completed a

25 high school education (or its equivalent),
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1 and is required to participate in the Work

2 First program (including an individual who

3 would otherwise be exempt from participa4 tion in the program), shall provide that—

5 ‘‘(I) such parent shall participate

6 in—

7 ‘‘(aa) educational activities di8 rected toward the attainment of a

9 high school diploma or its equiva10 lent on a full-time (as defined by

11 the educational provider) basis;

12 or

13 ‘‘(bb) an alternative educational

14 or training program on a full15 time (as defined by the provider)

16 basis; and

17 ‘‘(II) child care will be provided

18 in accordance with section 114 with

19 respect to the family under the Child

20 Care and Development Block Grant

21 Act of 1990.’’.

22 (b) STATE OPTION TO PROVIDE ADDITIONAL INCEN23 TIVES AND PENALTIES TO ENCOURAGE TEEN PARENTS

24 TO COMPLETE HIGH SCHOOL AND PARTICIPATE IN

25 PARENTING ACTIVITIES.—
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1 (1) STATE PLAN.—Section 403(b)(1)(D), as

2 amended by subsection (a) of this section, is amend3 ed further by adding at the end the following:

4 ‘‘(iii) at the option of the State, may

5 provide that the client who is a custodial

6 parent or pregnant woman who is under

7 age 19 (or age 21, at the option of the

8 State) shall participate in a program of

9 monetary incentives and penalties which—

10 ‘‘(I) may, at the option of the

11 State, require full-time participation

12 by such custodial parent or pregnant

13 woman in secondary school or equiva14 lent educational activities, or partici15 pation in a course or program leading

16 to a skills certificate found appro17 priate by the State agency or

18 parenting education activities (or any

19 combination of such activities and sec20 ondary education);

21 ‘‘(II) shall require that the needs

22 of such custodial parent or pregnant

23 woman be reviewed and the program

24 assure that, either the initial develop25 ment or revision of such individual’s
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1 personal responsibility agreement,

2 there will be included a description of

3 the services that will be provided to

4 the client and the way in which the

5 program and service providers will co6 ordinate with the educational or skills

7 training activities in which the client

8 is participating;

9 ‘‘(III) shall provide monetary in10 centives (to be treated as assistance

11 under the State plan) for more than

12 minimally acceptable performance of

13 required educational activities;

14 ‘‘(IV) shall provide penalties

15 (which may be those required by sec16 tion 402(c)(1)(C) or, with the ap17 proval of the Secretary, other mone18 tary penalties that the State finds will

19 better achieve the objectives of the

20 program) for less than minimally ac21 ceptable performance of required ac22 tivities;

23 ‘‘(V) shall provide that when a

24 monetary incentive is payable because

25 of the more than minimally acceptable
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1 performance of required educational

2 activities by a custodial parent or

3 pregnant woman, the incentive be

4 paid directly to the individual, regard5 less of whether the State agency

6 makes payment of assistance under

7 the State plan directly to the individ8 ual; and

9 ‘‘(VI) for purposes of any other

10 Federal or federally assisted program

11 based on need, shall not consider any

12 monetary incentive paid under the

13 State plan as income in determining a

14 family’s eligibility for or amount of

15 benefits under such program, and if

16 assistance is reduced by reason of a

17 penalty under this clause, such other

18 program shall treat the family in19 volved as if no such penalty has been

20 applied.’’.

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

22 this section take effect in the same manner as the amend23 ment made by section 102 takes effect.
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1 SEC. 134. SECOND CHANCE HOMES.

2 (a) IN GENERAL.—Section 402(c) of the Social Secu3 rity Act, as amended by sections 102 and 131 of this Act,

4 is amended by adding after paragraph (8):

5 ‘‘(9) SECOND CHANCE HOMES—

6 ‘‘(A) IN GENERAL.—States may use funds

7 available under section 413(a)(2)(B) for the es8 tablishment, operation, and support of second

9 chance group homes for custodial parents under

10 age 18 (or age 19, at the option of the State)

11 and their children.

12 ‘‘(B) DEFINITION OF SECOND CHANCE

13 HOME.—For purposes of this section, the term

14 ‘second chance home’ means an entity that pro15 vides custodial parents under age 18 (or age

16 19, at the option of the State) and their chil17 dren with a supportive and supervised living ar18 rangement in which the parents are required to

19 learn parenting skills, including child develop20 ment, family budgeting, health and nutrition,

21 and other skills to promote their long-term eco22 nomic independence and the well-being of their

23 children. A second chance home also may serve

24 as a network center for other supportive serv25 ices that are available in the community.
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1 ‘‘(C) TECHNICAL ASSISTANCE.—A State

2 may use a portion of the funds described in

3 subparagraph (A) to purchase technical assist4 ance from public or private entities if the State

5 determines that such assistance is required in

6 developing, implementing, or administering the

7 program funded under this section.

8 ‘‘(D) LOCAL INVOLVEMENT.—Each State

9 shall seek local involvement from the commu10 nity in any area in which a second chance home

11 receiving funds to be expended under this para12 graph is to be established. When providing

13 funds to be expended under this paragraph,

14 each State shall evaluate the community’s com15 mitment to establishment and planning of the

16 home.

17 ‘‘(E) LIMITATIONS ON THE USE OF

18 FUNDS.—

19 ‘‘(i) CONSTRUCTION.—Except as pro20 vided in clause (ii), expenditures author21 ized under this paragraph and section

22 413(a)(2)(B)(i)(V) may not be used by the

23 State, or any person with whom the State

24 makes arrangements to carry out the pur25 poses of this section, for the purchase or
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1 improvement of land, or the purchase, con2 struction, or permanent improvement

3 (other than minor remodeling) of any

4 building or other facility.

5 ‘‘(ii) WAIVER.—The Secretary may

6 waive the limitation in clause (i) upon the

7 State’s request if the Secretary finds that

8 the request describes extraordinary cir9 cumstances to justify such a waiver and

10 that permitting the waiver would contrib11 ute to the State’s ability to carry out the

12 purposes of this section.

13 ‘‘(F) RECEIPT OF PAYMENTS BY SECOND

14 CHANCE HOMES.—Section 402(c)(8)(A)(ii) (as

15 added by section 131(a) of the Work First and

16 Personal Responsibility Act of 1996), is amend17 ed by striking ‘or other adult relative’ and in18 serting ‘other adult relative, or second chance

19 home described under paragraph (9) of this

20 subsection’.’’.

21 (b) FUNDING.—Section 413(a)(2)(B)(i) of the Social

22 Security Act, as added by section 102 of this Act, is

23 amended by adding after subclause (IV) the following new

24 subclause:
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1 ‘‘(V) SECOND CHANCE HOMES.—

2 Costs of establishing and operating

3 Second Chance Homes under section

4 402(a)(9).’’.

5 (c) RECOMMENDATIONS ON USE OF GOVERNMENT

6 SURPLUS PROPERTY.—Not later than 6 months after the

7 date of the enactment of this Act, after consulting with

8 the Secretary of Defense, the Secretary of Housing and

9 Urban Development, and the Administrator of the General

10 Services Administration, the Secretary of Health and

11 Human Services shall submit recommendations to the

12 Congress on the extent to which surplus properties of the

13 United States Government may be used for the establish14 ment of second chance homes receiving funds under sec15 tion 413 of the Social Security Act, as amended by this

16 section.

17 (d) EFFECTIVE DATE.—The amendments made by

18 subsections (a) and (b) take effect October 1, 1996.
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1 TITLE II—CHILD SUPPORT

2 ENFORCEMENT

3 Subtitle A—Eligibility for Services;

4 Distribution of Payments

5 SEC. 201. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

6 ENFORCEMENT SERVICES.

7 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

8 U.S.C. 654) is amended—

9 (1) by striking paragraph (4) and inserting the

10 following new paragraph:

11 ‘‘(4) provide that the State will—

12 ‘‘(A) provide services relating to the estab13 lishment of paternity or the establishment,

14 modification, or enforcement of child support

15 obligations, as appropriate, under the plan with

16 respect to—

17 ‘‘(i) each child for whom—

18 ‘‘(I) assistance is provided under

19 the State program funded under part

20 A of this title,

21 ‘‘(II) benefits or services for fos22 ter care maintenance and adoption as23 sistance are provided under the State

24 program funded under part B of this

25 title, or
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1 ‘‘(III) medical assistance is pro2 vided under the State plan approved

3 under title XIX,

4 unless the State agency administering the

5 plan determines (in accordance with para6 graph (29)) that it is against the best in7 terests of the child to do so; and

8 ‘‘(ii) any other child, if an individual

9 applies for such services with respect to

10 the child; and

11 ‘‘(B) enforce any support obligation estab12 lished with respect to—

13 ‘‘(i) a child with respect to whom the

14 State provides services under the plan; or

15 ‘‘(ii) the custodial parent of such a

16 child;’’; and

17 (2) in paragraph (6)—

18 (A) by striking ‘‘provide that’’ and insert19 ing ‘‘provide that—’’;

20 (B) by striking subparagraph (A) and in21 serting the following new subparagraph:

22 ‘‘(A) services under the plan shall be made

23 available to residents of other States on the

24 same terms as to residents of the State submit25 ting the plan;’’;
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1 (C) in subparagraph (B), by inserting ‘‘on

2 individuals not receiving assistance under any

3 State program funded under part A’’ after

4 ‘‘such services shall be imposed’’;

5 (D) in each of subparagraphs (B), (C),

6 (D), and (E)—

7 (i) by indenting the subparagraph in

8 the same manner as, and aligning the left

9 margin of the subparagraph with the left

10 margin of, the matter inserted by subpara11 graph (B) of this paragraph; and

12 (ii) by striking the final comma and

13 inserting a semicolon; and

14 (E) in subparagraph (E), by indenting

15 each of clauses (i) and (ii) 2 additional ems.

16 (b) CONTINUATION OF SERVICES FOR FAMILIES

17 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

18 PROGRAM FUNDED UNDER PART A.—Section 454 (42

19 U.S.C. 654) is amended—

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

21 (23);

22 (2) by striking the period at the end of para23 graph (24) and inserting ‘‘; and’’; and

24 (3) by adding after paragraph (24) the follow25 ing new paragraph:
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1 ‘‘(25) provide that if a family with respect to

2 which services are provided under the plan ceases to

3 receive assistance under the State program funded

4 under part A, the State shall provide appropriate no5 tice to the family and continue to provide such serv6 ices, subject to the same conditions and on the same

7 basis as in the case of other individuals to whom

8 services are furnished under the plan, except that an

9 application or other request to continue services

10 shall not be required of such a family and paragraph

11 (6)(B) shall not apply to the family.’’.

12 (c) CONFORMING AMENDMENTS.—

13 (1) Section 452(b) (42 U.S.C. 652(b)) is

14 amended by striking ‘‘454(6)’’ and inserting

15 ‘‘454(4)’’.

16 (2) Section 452(g)(2)(A) (42 U.S.C.

17 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

18 place it appears and inserting ‘‘454(4)(A)(ii)’’.

19 (3) Section 446(a)(3)(B) (42 U.S.C.

20 666(a)(3)(B)) is amended by striking ‘‘in the case of

21 overdue support which a State has agreed to collect

22 under section 454(6)’’ and inserting ‘‘in any other

23 case’’.
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1 (4) Section 466(e) (42 U.S.C. 666(e)) is

2 amended by striking ‘‘paragraph (4) or (6) of sec3 tion 454’’ and inserting ‘‘section 454(4)’’.

4 SEC. 202. DISTRIBUTION OF PAYMENTS.

5 (a) DISTRIBUTIONS THROUGH STATE CHILD SUP6 PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE

7 RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is

8 amended—

9 (1) in subparagraph (A)—

10 (A) by striking ‘‘section 402(a)(26) is ef11 fective,’’ and inserting ‘‘section 403(b)(1)(E)(i)

12 is effective, except as otherwise specifically pro13 vided in section 464 or 466(a)(3),’’; and

14 (B) by striking ‘‘except that’’ and all that

15 follows through the semicolon; and

16 (2) in subparagraph (B), by striking ‘‘, except’’

17 and all that follows through ‘‘medical assistance’’.

18 (b) DISTRIBUTION TO A FAMILY CURRENTLY RE19 CEIVING TEMPORARY EMPLOYMENT ASSISTANCE.—Sec20 tion 457 (42 U.S.C. 657) is amended—

21 (1) by striking subsection (a) and redesignating

22 subsection (b) as subsection (a);

23 (2) in subsection (a) (as so redesignated)—

24 (A) in the matter preceding paragraph (2),

25 to read as follows:
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1 ‘‘(a) IN THE CASE OF A FAMILY RECEIVING TEA.—

2 Amounts subject to section 1912 collected under this part

3 during any month as support of a child who is receiving

4 assistance under part A (or a parent or caretaker relative

5 of such a child) shall (except in the case of a State exercis6 ing the option under subsection (b)) be distributed as fol7 lows:

8 ‘‘(1) an amount equal to the amount that will

9 be disregarded pursuant to section 402(d)(2)(C)

10 shall be taken from each of—

11 ‘‘(A) the amounts received in a month

12 which represent payments for that month; and

13 ‘‘(B) the amounts received in a month

14 which represent payments for a prior month

15 which were made by the absent parent in that

16 prior month;

17 and shall be paid to the family without affecting its

18 eligibility for assistance or decreasing any amount

19 otherwise payable as assistance to such family dur20 ing such month;’’;

21 (B) in paragraph (4), by striking ‘‘or (B)’’

22 and all that follows through the period and in23 serting ‘‘; then (B) from any remainder,

24 amounts equal to arrearages of such support

25 obligations assigned, pursuant to part A, to any
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1 other state or States shall be paid to such other

2 State or States and used to pay any such ar3 rearages (with appropriate reimbursement of

4 the Federal Government to the extent of its

5 participation in the financing); and then (C)

6 any remainder shall be paid to the family.’’; and

7 (3) by inserting after subsection (a) (as so re8 designated) the following new subsection:

9 ‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM10 ILY RECEIVING TEA.—In the case of a State electing the

11 option under this subsection, amounts collected as de12 scribed in subsection (a) that are not subject to section

13 1912 shall be distributed as follows:

14 ‘‘(1) An amount equal to the amount that will

15 be disregarded pursuant to section 402(d)(2)(C)

16 shall be taken from each of—

17 ‘‘(A) the amounts received in a month

18 which represent payments for that month; and

19 ‘‘(B) the amounts received in a month

20 which represent payments for a prior month

21 which were made by the absent parent in that

22 prior month;

23 and shall be paid to the family without affecting its

24 eligibility for assistance or decreasing any amount
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1 otherwise payable as assistance to such family dur2 ing such month.

3 ‘‘(2) Second, from any remainder, amounts

4 equal to the balance of support owed for the current

5 month shall be paid to the family.

6 ‘‘(3) Third, from any remainder, amounts equal

7 to arrearages of such support obligations assigned,

8 pursuant to part A, to the State making the collec9 tion shall be retained and used by such State to pay

10 any such arrearages (with appropriate reimburse11 ment of the Federal Government to the extent of its

12 participation in the financing).

13 ‘‘(4) Fourth, from any remainder, amounts

14 equal to arrearages of such support obligation as15 signed, pursuant to part A, to any other State or

16 States shall be paid to such other State or States

17 and used to pay any such arrearages (with appro18 priate reimbursement of the Federal Government to

19 the extent of its participation in the financing).

20 ‘‘(5) Fifth, any remainder shall be paid to the

21 family.’’.

22 (c) DISTRIBUTION TO A FAMILY NOT RECEIVING

23 TEA.—Section 457(c) (42 U.S.C. 657(c)) is amended to

24 read as follows:
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1 ‘‘(c) DISTRIBUTIONS IN CASE OF FAMILY NOT RE2 CEIVING TEA.—Amounts that are not subject to section

3 1912 collected by a State agency under this part during

4 any month as support of a child who is not receiving as5 sistance under part A (or of a parent or caretaker relative

6 of such a child) shall (subject to the remaining provisions

7 of this section) be distributed as follows:

8 ‘‘(1) First, amounts equal to the total of such

9 support owed for such month shall be paid to the

10 family.

11 ‘‘(2) Second, from any remainder, amounts

12 equal to arrearages of such support obligations that

13 have not been assigned to the State for months dur14 ing which such child did not receive assistance under

15 part A shall be paid to the family.

16 ‘‘(3) Third, from any remainder, amounts equal

17 to arrearages of such support obligations assigned to

18 the State making the collection pursuant to part A

19 shall be retained and used by such State to pay any

20 such arrearages (with appropriate reimbursement of

21 the Federal Government to the extent of its partici22 pation in the financing).

23 ‘‘(4) Fourth, from any remainder, amounts

24 equal to arrearges of such support obligations as25 signed to any other State pursuant to part A shall
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1 be paid to such other State or States, and used to

2 pay such arrearages, in the order in which such ar3 rearages accrued (with appropriate reimbursement

4 of the Federal Government to the extent of its par5 ticipation in the financing).’’.

6 (d) DISTRIBUTION TO A CHILD RECEIVING ASSIST7 ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.

8 657(d)) is amended, in the matter preceding paragraph

9 (1), by striking ‘‘Notwithstanding the preceding provisions

10 of this section, amounts’’ and inserting the following:

11 ‘‘(d) DISTRIBUTIONS IN THE CASE OF A CHILD RE12 CEIVING ASSISTANCE UNDER TITLE IV–E.—Amounts’’.

13 (e) REGULATIONS.—The Secretary of Health and

14 Human Services shall promulgate regulations under part

15 A of title IV of the Social Security Act, establishing stand16 ards applicable to the States electing the alternative for17 mula under section 457(b) of such Act for distribution of

18 collections on behalf of families receiving temporary em19 ployment assistance, designed to minimize irregular

20 monthly payments to such families.

21 (f) CONFORMING AMENDMENTS CONCERNING COL22 LECTION OF CHILD SUPPORT ARREARAGES THROUGH IN23 COME TAX REFUND OFFSET.—

24 (1) Section 6402(c) of the Internal Revenue

25 Code of 1986 is amended by striking the third sen-
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1 tence after ‘‘past due support has been paid to the

2 State’’.

3 (2) Section 6402(d)(2) of such Code is amend4 ed in the first sentence by striking ‘‘after’’ and in5 serting ‘‘before’’ and by striking ‘‘with respect to

6 past-due support collected pursuant to an assign7 ment under section 402(a)(26) of the Social Security

8 Act and’’.

9 (3) Section 464(a) (42 U.S.C. 664) is amend10 ed—

11 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

12 OFFSET AUTHORIZED.—’’;

13 (B) in paragraph (1)—

14 (i) in the first sentence, by striking

15 ‘‘which has been assigned to such State

16 pursuant to section 402(a)(26) or section

17 471(a)(17)’’; and

18 (ii) in the second sentence, by striking

19 ‘‘in accordance with section 457(b)(4) or

20 (d)(3)’’ and inserting ‘‘as provided in para21 graph (2)’’;

22 (C) by amending paragraph (2) to read as

23 follows:
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1 ‘‘(2) The State agency shall distribute amounts

2 paid by the Secretary of the Treasury pursuant to

3 paragraph (1)—

4 ‘‘(A) in accordance with section 457(a)(4)

5 or (d)(3), in the case of past-due support as6 signed to a State under part A of title IV of the

7 Social Security Act; and

8 ‘‘(B) to or on behalf of the child to whom

9 the support was owed, in the case of past-due

10 support not so assigned.’’; and

11 (D) in paragraph (3)—

12 (i) by striking ‘‘or (2)’’ each place it

13 appears; and

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

15 ‘‘under paragraph (2)’’ and inserting ‘‘on

16 account of past-due support described in

17 paragraph (2)(B)’’.

18 (4) Section 464(b) is amended—

19 (A) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)

20 REGULATIONS.—’’; and

21 (B) by striking paragraph (2).

22 (5) Section 464(c) is amended—

23 (A) by striking ‘‘(c)(1) Except as provided

24 in paragraph (2), as’’ and inserting ‘‘(c) DEFI25 NITION.—As’’; and
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1 (B) by striking paragraphs (2) and (3).

2 (g) CLERICAL AMENDMENTS.—Section 454 (42

3 U.S.C. 654) is amended—

4 (1) in paragraph (11)—

5 (A) by striking ‘‘(11)’’ and inserting

6 ‘‘(11)(A)’’; and

7 (B) by inserting after the semicolon ‘‘and’’;

8 and

9 (2) by redesignating paragraph (12) as sub10 paragraph (B) of paragraph (11).

11 (h) EFFECTIVE DATES.—

12 (1) IN GENERAL.—Except as otherwise pro13 vided in this subsection, the amendments made by

14 this section become effective on October 1, 1996.

15 (2) FAMILY NOT RECEIVING TEA.—The amend16 ments made by subsections (c) and (f) (3), (4), and

17 (5) become effective on October 1, 1999.

18 (3) SPECIAL RULES.—

19 (A) APPLICABILITY.—A State may elect to

20 have the amendments made by any subsection

21 of this section become effective only with re22 spect to child support cases beginning on or

23 after the effective date of such subsection.

24 (B) DELAYED IMPLEMENTATION.—A State

25 may elect to have the amendments made by this
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1 section (other than subsections (c) and (f)) be2 come effective on a date later than October 1,

3 1996, which date shall coincide with the oper4 ation of the single statewide automated data

5 processing and information retrieval system re6 quired by section 454A of the Social Security

7 Act (as added by section 244(a)(2) of this Act)

8 and the State disbursement unit required by

9 section 454B of the Social Security Act (as

10 added by section 212(b) of this Act).

11 SEC. 203. PRIVACY SAFEGUARDS.

12 (a) STATE PLAN REQUIREMENT.—Section 454 (42

13 U.S.C. 654), as amended by section 201(b) of this Act,

14 is amended—

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

16 (24);

17 (2) by striking the period at the end of para18 graph (25) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (25) the follow20 ing new paragraph:

21 ‘‘(26) will have in effect safeguards, applicable

22 to all confidential information handled by the State

23 agency, that are designed to protect the privacy

24 rights of the parties, including—
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1 ‘‘(A) safeguards against unauthorized use

2 or disclosure of information relating to proceed3 ings or actions to establish paternity, or to es4 tablish or enforce support;

5 ‘‘(B) prohibitions against the release of in6 formation on the whereabouts of one party to

7 another party against whom a protective order

8 with respect to the former party has been en9 tered; and

10 ‘‘(C) prohibitions against the release of in11 formation on the whereabouts of one party to

12 another party if the State has reason to believe

13 that the release of the information may result

14 in physical or emotional harm to the former

15 party.’’.

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

17 subsection (a) becomes effective on October 1, 1997.

18 SEC. 204. RIGHTS TO NOTIFICATION.

19 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

20 amended by section 202(g) of this Act, is amended by in21 serting after paragraph (11) the following new paragraph:

22 ‘‘(12) provide for the establishment of proce23 dures to require the State to provide individuals who

24 are applying for or receiving services under the State
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1 plan, or who are parties to cases in which services

2 are being provided under the State plan—

3 ‘‘(A) with notice of all proceedings in

4 which support obligations might be established

5 or modified; and

6 ‘‘(B) with a copy of any order establishing

7 or modifying a child support obligation, or (in

8 the case of a petition for modification) a notice

9 of determination that there should be no change

10 in the amount of the child support award, with11 in 14 days after issuance of such order or de12 termination;’’.

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

14 subsection (a) becomes effective on October 1, 1997.

15 Subtitle B—Locate and Case Tracking

16 SEC. 211. STATE CASE REGISTRY.

17 Section 454A, as added by section 244(a)(2) of this

18 Act, is amended by adding at the end the following new

19 subsections:

20 ‘‘(e) STATE CASE REGISTRY.—

21 ‘‘(1) CONTENTS.—The automated system re22 quired by this section shall include a registry (which

23 shall be known as the ‘State case registry’) that con24 tains records with respect to—
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1 ‘‘(A) each case in which services are being

2 provided by the State agency under the State

3 plan approved under this part; and

4 ‘‘(B) each support order established or

5 modified in the State on or after October 1,

6 1998.

7 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

8 State case registry may be established by linking

9 local case registries of support orders through an

10 automated information network, subject to this sec11 tion.

12 ‘‘(3) USE OF STANDARDIZED DATA ELE13 MENTS.—Such records shall use standardized data

14 elements for both parents (such as names, social se15 curity numbers and other uniform identification

16 numbers, dates of birth, and case identification

17 numbers), and contain such other information (such

18 as information on case status) as the Secretary may

19 require.

20 ‘‘(4) PAYMENT RECORDS.—Each case record in

21 the State case registry with respect to which services

22 are being provided under the State plan approved

23 under this part and with respect to which a support

24 order has been established shall include a record

25 of—
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1 ‘‘(A) the amount of monthly (or other peri2 odic) support owed under the order, and other

3 amounts (including arrearages, interest or late

4 payment penalties, and fees) due or overdue

5 under the order;

6 ‘‘(B) any amount described in subpara7 graph (A) that has been collected;

8 ‘‘(C) the distribution of such collected

9 amounts;

10 ‘‘(D) the birth date of any child for whom

11 the order requires the provision of support; and

12 ‘‘(E) the amount of any lien imposed with

13 respect to the order pursuant to section

14 466(a)(4).

15 ‘‘(5) UPDATING AND MONITORING.—The State

16 agency operating the automated system required by

17 this section shall promptly establish and maintain,

18 and regularly monitor, case records in the State case

19 registry with respect to which services are being pro20 vided under the State plan approved under this part,

21 on the basis of—

22 ‘‘(A) information on administrative actions

23 and administrative and judicial proceedings and

24 orders relating to paternity and support;
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1 ‘‘(B) information obtained from compari2 son with Federal, State, or local sources of in3 formation;

4 ‘‘(C) information on support collections

5 and distributions; and

6 ‘‘(D) any other relevant information.

7 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS8 CLOSURES OF INFORMATION.—The State shall use the

9 automated system required by this section to extract infor10 mation from (at such times, and in such standardized for11 mat or formats, as may be required by the Secretary), to

12 share and compare information with, and to receive infor13 mation from, other data bases and information compari14 son services, in order to obtain (or provide) information

15 necessary to enable the State agency (or the Secretary or

16 other State or Federal agencies) to carry out this part,

17 subject to section 6103 of the Internal Revenue Code of

18 1986. Such information comparison activities shall include

19 the following:

20 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP21 PORT ORDERS.—Furnishing to the Federal Case

22 Registry of Child Support Orders established under

23 section 453(h) (and update as necessary, with infor24 mation including notice of expiration of orders) the

25 minimum amount of information on child support
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1 cases recorded in the State case registry that is nec2 essary to operate the registry (as specified by the

3 Secretary in regulations).

4 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

5 Exchanging information with the Federal Parent

6 Locator Service for the purposes specified in section

7 453.

8 ‘‘(3) TEMPORARY EMPLOYMENT ASSISTANCE

9 AND MEDICAID AGENCIES.—Exchanging information

10 with State agencies (of the State and of other

11 States) administering programs under part A, pro12 grams under State plans under title XIX, and other

13 programs designated by the Secretary, as necessary

14 to perform State agency responsibilities under this

15 part and under such programs.

16 ‘‘(4) INTRASTATE AND INTERSTATE INFORMA17 TION COMPARISONS.—Exchanging information with

18 other agencies of the State, agencies of other States,

19 and interstate information networks, as necessary

20 and appropriate to carry out (or assist other States

21 to carry out) the purposes of this part.’’.
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1 SEC. 212. COLLECTION AND DISBURSEMENT OF SUPPORT

2 PAYMENTS.

3 (a) STATE PLAN REQUIREMENT.—Section 454 (42

4 U.S.C. 654), as amended by sections 201(b) and 203(a)

5 of this Act, is amended—

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

7 (25);

8 (2) by striking the period at the end of para9 graph (26) and inserting ‘‘; and’’; and

10 (3) by adding after paragraph (26) the follow11 ing new paragraph:

12 ‘‘(27) provide that, on and after October 1,

13 1998, the State agency will—

14 ‘‘(A) operate a State disbursement unit in

15 accordance with section 454B; and

16 ‘‘(B) have sufficient State staff (consisting

17 of State employees) and (at State option) con18 tractors reporting directly to the State agency

19 to—

20 ‘‘(i) monitor and enforce support col21 lections through the unit in cases being en22 forced by the State pursuant to section

23 454(4) (including carrying out the auto24 mated data processing responsibilities de25 scribed in section 454A(g)); and
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1 ‘‘(ii) take the actions described in sec2 tion 466(c)(1) in appropriate cases.’’.

3 (b) ESTABLISHMENT OF STATE DISBURSEMENT

4 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

5 amended by section 245(a)(2) of this Act, is amended by

6 inserting after section 454A the following new section:

7 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP8 PORT PAYMENTS.

9 ‘‘(a) STATE DISBURSEMENT UNIT.—

10 ‘‘(1) IN GENERAL.—In order for a State to

11 meet the requirements of this section, the State

12 agency must establish and operate a unit (which

13 shall be known as the ‘State disbursement unit’) for

14 the collection and disbursement of payments under

15 support orders—

16 ‘‘(A) in all cases being enforced by the

17 State pursuant to section 454(4); and

18 ‘‘(B) in all cases not being enforced by the

19 State under this part in which the support

20 order is initially issued in the State on or after

21 January 1, 1994, and in which the wages of the

22 absent parent are subject to withholding pursu23 ant to section 466(a)(8)(B).

24 ‘‘(2) OPERATION.—The State disbursement

25 unit shall be operated—
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1 ‘‘(A) directly by the State agency (or 2 or

2 more State agencies under a regional coopera3 tive agreement), or (to the extent appropriate)

4 by a contractor responsible directly to the State

5 agency; and

6 ‘‘(B) except in cases described in para7 graph (1)(B), in coordination with the auto8 mated system established by the State pursuant

9 to section 454A.

10 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

11 UNITS.—The State disbursement unit may be estab12 lished by linking local disbursement units through

13 an automated information network, subject to this

14 section, if the Secretary agrees that the system will

15 not cost more nor take more time to establish or op16 erate than a centralized system. In addition, employ17 ers shall be given one location to which income with18 holding is sent.

19 ‘‘(b) REQUIRED PROCEDURES.—The State disburse20 ment unit shall use automated procedures, electronic proc21 esses, and computer-driven technology to the maximum

22 extent feasible, efficient, and economical, for the collection

23 and disbursement of support payments, including proce24 dures—
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1 ‘‘(1) for receipt of payments from parents, em2 ployers, and other States, and for disbursements to

3 custodial parents and other obligees, the States

4 agency, and the agencies of other States;

5 ‘‘(2) for accurate identification of payments;

6 ‘‘(3) to ensure prompt disbursement of the cus7 todial parent’s share of any payment; and

8 ‘‘(4) to furnish to any parent, upon request,

9 timely information on the current status of support

10 payments under an order requiring payments to be

11 made by or to the parent.

12 ‘‘(c) TIMING OF DISBURSEMENTS.—

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), the State disbursement unit shall distrib15 ute all amounts payable under section 457(a) within

16 2 business days after receipt from the employer or

17 other source of periodic income, if sufficient infor18 mation identifying the payee is provided.

19 ‘‘(2) PERMISSIVE RETENTION OF ARREAR20 AGES.—The State disbursement unit may delay the

21 distribution of collections toward arrearages until

22 the resolution of any timely appeal with respect to

23 such arrearages.
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1 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec2 tion, the term ‘business day’ means a day on which State

3 offices are open for regular business.’’.

4 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

5 added by section 245(a)(2) and as amended by section 211

6 of this Act, is amended by adding at the end the following

7 new subsection:

8 COLLECTION AND DISTRIBUTION OF SUPPORT PAY9 MENTS.—

10 ‘‘(1) IN GENERAL.—The State shall use the

11 automated system required by this section, to the

12 maximum extent feasible, to assist and facilitate the

13 collection and disbursement of support payments

14 through the State disbursement unit operated under

15 section 454B, through the performance of functions,

16 including, at a minimum—

17 ‘‘(A) transmission of orders and notices to

18 employers (and other debtors) for the withhold19 ing of wages and other income—

20 ‘‘(i) within 2 business days after re21 ceipt from a court, another State, an em22 ployer, the Federal Parent Locator Service,

23 or another source recognized by the State

24 of notice of, and the income source subject

25 to, such withholding; and
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1 ‘‘(ii) using uniform formats prescribed

2 by the Secretary;

3 ‘‘(B) ongoing monitoring to promptly iden4 tify failures to make timely payment of support;

5 and

6 ‘‘(C) automatic use of enforcement proce7 dures (including procedures authorized pursu8 ant to section 466(c)) if payments are not time9 ly made.

10 ‘‘(2) BUSINESS DAY DEFINED.—As used in

11 paragraph (1), the term ‘business day’ means a day

12 on which State offices are open for regular busi13 ness.’’.

14 (d) EFFECTIVE DATE.—The amendments made by

15 this section become effective on October 1, 1998.

16 SEC. 213. STATE DIRECTORY OF NEW HIRES.

17 (a) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 201(b), 203(a), and

19 212(a) of this Act, is amended—

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

21 (26);

22 (2) by striking the period at the end of para23 graph (27) and inserting ‘‘; and’’; and

24 (3) by adding after paragraph (27) the follow25 ing new paragraph:
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1 ‘‘(28) provide that, on and after October 1,

2 1997, the State will operate a State Directory of

3 New Hires in accordance with section 453A.’’.

4 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

5 title IV (42 U.S.C. 651–669) is amended by inserting

6 after section 453 the following new section:

7 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

8 ‘‘(a) ESTABLISHMENT.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) REQUIREMENT FOR STATES THAT

11 HAVE NO DIRECTORY.—Except as provided in

12 subparagraph (B), not later than October 1,

13 1997, each State shall establish an automated

14 directory (to be known as the ‘State Directory

15 of New Hires’) which shall contain information

16 supplied in accordance with subsection (b) by

17 employers on each newly hired employee.

18 ‘‘(B) STATES WITH NEW HIRE REPORTING

19 IN EXISTENCE.—A State which has a new hire

20 reporting law in existence on the date of the en21 actment of this section may continue to operate

22 under the State law, but the State must meet

23 the requirements of this section (other than

24 subsection (f)) not later than October 1, 1997.

25 ‘‘(2) DEFINITIONS.—As used in this section:
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1 ‘‘(A) EMPLOYEE.—The term ‘employee’—

2 ‘‘(i) means an individual who is an

3 employee within the meaning of chapter 24

4 of the Internal Revenue Code of 1986; and

5 ‘‘(ii) does not include an employee of

6 a Federal or State agency performing in7 telligence or counterintelligence functions,

8 if the head of such agency has determined

9 that reporting pursuant to paragraph (1)

10 with respect to the employee could endan11 ger the safety of the employee or com12 promise an ongoing investigation or intel13 ligence mission.

14 ‘‘(B) EMPLOYER.—

15 ‘‘(i) IN GENERAL.—The term ‘em16 ployer’ has the meaning given such term in

17 section 3401(d) of the Internal Revenue

18 Code of 1996 and includes any govern19 mental entity and any labor organization.

20 ‘‘(ii) LABOR ORGANIZATION.—The

21 term ‘labor organization’ has the meaning

22 given such term in section 2(5) of the Na23 tional Labor Relations Act, and includes

24 any entity (also known as a ‘hiring hall’)

25 which is used by the organization and an
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1 employer to carry out requirements de2 scribed in section 8(f)(3) of such Act of an

3 agreement between the organization and

4 the employer.

5 ‘‘(b) EMPLOYER INFORMATION.—

6 ‘‘(1) REPORTING REQUIREMENT.—

7 ‘‘(A) IN GENERAL.—Except as provided in

8 subparagraphs (B) and (C), each employer shall

9 furnish to the Directory of New Hires of the

10 State in which a newly hired employee works, a

11 report that contains the name, address, and so12 cial security number of the employee, and the

13 name and address of, and identifying number

14 assigned under section 6109 of the Internal

15 Revenue Code of 1986 to, the employer.

16 ‘‘(B) MULTISTATE EMPLOYERS.—An em17 ployer that has employees who are employed in

18 two or more States and that transmits reports

19 magnetically or electronically may comply with

20 subparagraph (A) by designating one State in

21 which such employer has employees to which

22 the employer will transmit the report described

23 in subparagraph (A), and transmitting such re24 port to such State. Any employer that transmits

25 reports pursuant to this subparagraph shall no-
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1 tify the Secretary in writing as to which State

2 such employer designates for the purpose of

3 sending reports.

4 ‘‘(C) FEDERAL GOVERNMENT EMPLOY5 ERS.—Any department, agency, or instrumen6 tality of the United States shall comply with

7 subparagraph (A) by transmitting the report

8 described in subparagraph (A) to the National

9 directory of New Hires established pursuant to

10 section 453.

11 ‘‘(2) TIMING OF REPORT.—Each State may

12 provide the time within which the report required by

13 paragraph (1) shall be made with respect to an em14 ployee, but such report shall be made—

15 ‘‘(A) not later than 20 days after the date

16 the employer hires the employee; or

17 ‘‘(B) in the case of an employer transmit18 ting reports magnetically or electronically, by

19 two monthly transmissions (if necessary) not

20 less than 12 days nor more than 16 days apart.

21 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re22 port required by subsection (b) shall be made on a

23 W–4 form or, at the option of the employer, an equivalent

24 form, and may be transmitted by first class mail, magneti25 cally, or electronically.
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1 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

2 EMPLOYERS.—The State shall have the option to set a

3 State civil money penalty which does not exceed—

4 ‘‘(1) $25; or

5 ‘‘(2) $500 if, under State law, the failure is the

6 result of a conspiracy between the employer and the

7 employee to not supply the required report or to

8 supply a false or incomplete report.

9 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor10 mation shall be entered into the data base maintained by

11 the State Directory of New Hires within 5 business days

12 of receipt from an employer pursuant to subsection (b).

13 ‘‘(f) INFORMATION COMPARISONS.—

14 ‘‘(1) IN GENERAL.—Not later than May 1,

15 1998, an agency designated by the State shall, di16 rectly or by contract, conduct automated compari17 sons of the social security numbers reported by em18 ployers pursuant to subsection (b) and the social se19 curity numbers appearing in the records of the State

20 case registry for cases being enforced under the

21 State plan.

22 ‘‘(2) NOTICE OF MATCH.—When an information

23 comparison conducted under paragraph (1) reveals a

24 match with respect to the social security number of

25 an individual required to provide support under a
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1 support order, the State Directory of New Hires

2 shall provide the agency administering the State

3 plan approved under this part of the appropriate

4 State with the name, address, and social security

5 number of the employee to whom the social security

6 number is assigned, and the name of, and identify7 ing number assigned under section 6109 of the In8 ternal Revenue Code of 1986 to the employer.

9 ‘‘(g) TRANSMISSION OF INFORMATION.—

10 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

11 NOTICES TO EMPLOYERS.—Within 2 business days

12 after the date information regarding a newly hired

13 employee is entered into the State Directory of New

14 Hires, the State agency enforcing the employee’s

15 child support obligation shall transmit a notice to

16 the employer of the employee directing the employer

17 to withhold from the wages of the employee an

18 amount equal to the monthly (or other periodic)

19 child support obligation (including any past due sup20 port obligation) of the employee, unless the employ21 ee’s wages are not subject to withholding pursuant

22 to section 466(b)(3).

23 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC24 TORY OF NEW HIRES.—
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1 ‘‘(A) NEW HIRE INFORMATION.—Within 3

2 business days after the date information re3 garding a newly hired employee is entered into

4 the State Directory of New Hires, the State Di5 rectory of New Hires shall furnish the informa6 tion to the National Directory of New Hires.

7 ‘‘(B) WAGE AND UNEMPLOYMENT COM8 PENSATION.—The State Directory of New

9 Hires shall, on a quarterly basis, furnish to the

10 National Directory of New Hires extracts of the

11 reports required under section 303(a)(6) to be

12 made to the Secretary of Labor concerning the

13 wages and unemployment compensation paid to

14 individuals, by such dates, in such format, and

15 containing such information as the Secretary of

16 Health and Human Services shall specify in

17 regulations.

18 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

19 subsection, the term ‘business day’ means a day on

20 which State offices are open for regular business.

21 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

22 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI23 GORS.—The agency administering the State plan ap24 proved under this part shall use information received

25 pursuant to subsection (f)(2) to locate individuals
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1 for purposes of establishing paternity and establish2 ing, modifying, and enforcing child support obliga3 tions.

4 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER5 TAIN PROGRAMS.—A State agency responsible for

6 administering a program specified in section 1137(b)

7 shall have access to information reported by employ8 ers pursuant to subsection (b) of this section for

9 purposes of verifying eligibility for the program.

10 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU11 RITY AND WORKERS’ COMPENSATION.—State agen12 cies operating employment security and workers’

13 compensation programs shall have access to informa14 tion reported by employers pursuant to subsection

15 (b) for the purposes of administering such pro16 grams.’’.

17 (c) QUARTERLY WAGE REPORTING.—Section

18 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

19 (1) by inserting ‘‘(including State and local gov20 ernmental entities and labor organizations (as de21 fined in section 453A(a)(2)(B)(iii))’’ after ‘‘employ22 ers’’; and

23 (2) by inserting ‘‘, and except that no report

24 shall be filed with respect to an employee of a State

25 or local agency performing intelligence or counter-
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1 intelligence functions, if the head of such agency has

2 determined that filing such a report could endanger

3 the safety of the employee or compromise an ongo4 ing investigation or intelligence mission’’ after

5 ‘‘paragraph (2)’’.

6 SEC. 214. AMENDMENTS CONCERNING INCOME WITHHOLD7 ING.

8 (a) MANDATORY INCOME WITHHOLDING.—

9 (1) IN GENERAL.—Section 466(a)(1) (42

10 U.S.C. 666(a)(1)) is amended to read as follows:

11 ‘‘(1)(A) Procedures described in subsection (b)

12 for the withholding from income of amounts payable

13 as support in cases subject to enforcement under the

14 State plan.

15 ‘‘(B) Procedures under which the wages of a

16 person with a support obligation imposed by a sup17 port order issued (or modified) in the State before

18 October 1, 1996, if not otherwise subject to with19 holding under subsection (b), shall become subject to

20 withholding as provided in subsection (b) if arrear21 ages occur, without the need for a judicial or admin22 istrative hearing.’’.

23 (2) CONFORMING AMENDMENTS.—

24 (A) Section 466(b) (42 U.S.C. 666(b)) is

25 amended in the matter preceding paragraph
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1 (1), by striking ‘‘subsection (a)(1)’’ and insert2 ing ‘‘subsection (a)(1)(A)’’.

3 (B) Section 466(b)(4) (42 U.S.C.

4 666(b)(4)) is amended to read as follows:

5 ‘‘(4)(A) Such withholding must be carried out

6 in full compliance with all procedural due process re7 quirements of the State, and the State must send

8 notice to each noncustodial parent to whom para9 graph (1) applies—

10 ‘‘(i) that the withholding has commenced;

11 and

12 ‘‘(ii) of the procedures to follow if the non13 custodial parent desires to contest such with14 holding on the grounds that the withholding or

15 the amount withheld is improper due to a mis16 take of fact.

17 ‘‘(B) The notice under subparagraph (A) of this

18 paragraph shall include the information provided to

19 the employer under paragraph (6)(A).’’.

20 (C) Section 466(b)(5) (42 U.S.C.

21 666(b)(5)) is amended by striking all that fol22 lows ‘‘administered by’’ and inserting ‘‘the

23 State through the State disbursement unit es24 tablished pursuant to section 454B, in accord25 ance with the requirements of section 454B.’’.
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1 (D) Section 466(b)(6)(A) (42 U.S.C.

2 666(b)(6)(A)) is amended—

3 (i) in clause (i), by striking ‘‘to the

4 appropriate agency’’ and all that follows

5 and inserting ‘‘to the State disbursement

6 unit within 2 business days after the date

7 the amount would (but for this subsection)

8 have been paid or credited to the employee,

9 for distribution in accordance with this

10 part. The employer shall comply with the

11 procedural rules relating to income with12 holding of the State in which the employee

13 works, regardless of the State where the

14 notice originates.’’;

15 (ii) in clause (ii), by inserting ‘‘be in

16 a standard format prescribed by the Sec17 retary, and’’ after ‘‘shall’’; and

18 (iii) by adding at the end the follow19 ing new clause:

20 ‘‘(iii) As used in this subparagraph,

21 the term ‘business day’ means a day on

22 which State offices are open for regular

23 business.’’.

24 (E) Section 466(b)(6)(D) (42 U.S.C.

25 666(b)(6)(D)) is amended by striking ‘‘any em-
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1 ployer’’ and all that follows and inserting ‘‘any

2 employer who—

3 ‘‘(i) discharges from employment, re4 fuses to employ, or takes disciplinary ac5 tion against any noncustodial parent sub6 ject to wage withholding required by this

7 subsection because of the existence of such

8 withholding and the obligations or addi9 tional obligations which it imposes upon

10 the employer; or

11 ‘‘(ii) fails to withhold support from

12 wages, or to pay such amounts to the

13 State disbursement unit in accordance with

14 this subsection.’’.

15 (F) Section 466(b) (42 U.S.C. 666(b)) is

16 amended by adding at the end the following

17 new paragraph:

18 ‘‘(11) Procedures under which the agency ad19 ministering the State plan approved under this part

20 may execute a withholding order without advance

21 notice to the obligor, including issuing the withhold22 ing order through electronic means.’’.

23 (b) CONFORMING AMENDMENT.—Section 466(c) (42

24 U.S.C. 666(c)) is repealed.
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1 SEC. 215. LOCATOR INFORMATION FROM INTERSTATE NET2 WORKS.

3 Section 466(a) (42 U.S.C. 666(a)) is amended by

4 adding at the end the following new paragraph:

5 ‘‘(12) LOCATOR INFORMATION FROM INTER6 STATE NETWORKS.—Procedures to ensure that all

7 Federal and State agencies conducting activities

8 under this part have access to any system used by

9 the State to locate an individual for purposes relat10 ing to motor vehicles or law enforcement.’’.

11 SEC. 216. EXPANSION OF THE FEDERAL PARENT LOCATOR

12 SERVICE.

13 (a) EXPANDED AUTHORITY TO LOCATE INDIVID14 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

15 amended—

16 (1) in subsection (a), by striking all that follows

17 subsection (c)) and inserting ‘‘, for the purposes of

18 establishing parentage, establishing, setting the

19 amount of, modifying, or enforcing child support ob20 ligations, or enforcing child custody or visitation or21 ders—

22 ‘‘(1) information on, or facilitating the discov23 ery of, the location of any individual—

24 ‘‘(A) who is under an obligation to pay

25 child support or provide child custody or visita26 tion rights;
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1 ‘‘(B) against whom such an obligation is

2 sought; or

3 ‘‘(C) to whom such an obligation is owed,

4 including the individual’s social security number (or

5 numbers), most recent address, and the name, ad6 dress, and employer identification number of the in7 dividual’s employer;

8 ‘‘(2) information on the individual’s wages (or

9 other income) from, and benefits of, employment (in10 cluding rights to or enrollment in group health care

11 coverage); and

12 ‘‘(3) information on the type, status, location,

13 and amount of any assets of, or debts owed by or

14 to, any such individual.’’; and

15 (2) in subsection (b)—

16 (A) in the matter preceding paragraph (1),

17 by striking ‘‘social security’’ and all that follows

18 through ‘‘absent parent’’ and inserting ‘‘infor19 mation described in subsection (a)’’; and

20 (B) in the flush paragraph at the end, by

21 adding the following: ‘‘No information shall be

22 disclosed to any person if the State has notified

23 the Secretary that the State has reasonable evi24 dence of domestic violence or child abuse and

25 the disclosure of such information could be
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1 harmful to the custodial parent or the child of

2 such parent. Information received or transmit3 ted pursuant to this section shall be subject to

4 the safeguard provisions contained in section

5 454(26).’’.

6 (b) AUTHORIZED PERSON FOR INFORMATION RE7 GARDING VISITATION RIGHTS.—Section 453(c) (42

8 U.S.C. 653(c)) is amended—

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

10 inserting ‘‘support or to seek to enforce orders pro11 viding child custody or visitation rights’’; and

12 (2) in paragraph (2), by striking ‘‘, or any

13 agent of such court; and’’ and inserting ‘‘or to issue

14 an order against a resident parent for child custody

15 or visitation rights, or any agent of such court;’’.

16 (c) REIMBURSEMENT FOR INFORMATION FROM FED17 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

18 653(e)(2)) is amended in the 4th sentence by inserting

19 ‘‘in an amount which the Secretary determines to be rea20 sonable payment for the information exchange (which

21 amount shall not include payment for the costs of obtain22 ing, compiling, or maintaining the information)’’ before

23 the period.
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1 (d) REIMBURSEMENT FOR REPORTS BY STATE

2 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

3 adding at the end the following new subsection:

4 ‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE

5 AGENCIES.—The Secretary may reimburse Federal and

6 State agencies for the costs incurred by such entities in

7 furnishing information requested by the Secretary under

8 this section in an amount which the Secretary determines

9 to be reasonable payment for the information exchange

10 (which amount shall not include payment for the costs of

11 obtaining, compiling, or maintaining the information).’’.

12 (e) CONFORMING AMENDMENTS.—

13 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

14 463(e), and 463(f), (42 U.S.C. 652(a)(9), 653(a),

15 653(b), 663(a), 663(e), and 663(f)) are each amend16 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

17 place such term appears.

18 (2) Section 453 (42 U.S.C. 653) is amended in

19 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR20 ENT’’.

21 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

22 653), as amended by subsection (d) of this section, is

23 amended by adding at the end the following new sub24 sections:
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1 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

2 ORDERS.—

3 ‘‘(1) IN GENERAL.—Not later than October 1,

4 1998, in order to assist States in administering pro5 grams under State plans approved under this part

6 and programs funded under part A, and for the

7 other purposes specified in this section, the Sec8 retary shall establish and maintain in the Federal

9 Parent Locator Service an automated registry

10 (which shall be known as the ‘Federal Case Registry

11 of Child Support Orders’), which shall contain ab12 stracts of support orders and other information de13 scribed in paragraph (2) with respect to each case

14 in each State case registry maintained pursuant to

15 section 454A(e), as furnished (and regularly up16 dated), pursuant to section 454A(f), by State agen17 cies administering programs under this part.

18 ‘‘(2) CASE INFORMATION.—The information re19 ferred to in paragraph (1) with respect to a case

20 shall be such information as the Secretary may

21 specify in regulations (including the names, social

22 security numbers or other uniform identification

23 numbers, and State case identification numbers)

24 identify the individuals who owe or are owed support

25 (or with respect to or on behalf of whom support ob-
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1 ligations are sought to be established), and the State

2 or States which have the case.

3 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

4 ‘‘(1) IN GENERAL.—In order to assist States in

5 administering programs under State plans approved

6 under this part and programs funded under part A,

7 and for the other purposes specified in this section,

8 the Secretary, not later than April 1, 1997, shall es9 tablish and maintain in the Federal Parent Locator

10 Service an automated directory to be known as the

11 National Directory of New Hires, which shall con12 tain the information supplied pursuant to section

13 453A(g)(2).

14 ‘‘(2) ENTRY OF DATA.—Information shall be

15 entered into the data base maintained by the Na16 tional Directory of New Hires within 2 business

17 days of receipt pursuant to section 453A(g)(2).

18 ‘‘(3) ADMINISTRATION OF FEDERAL TAX

19 LAWS.—The Secretary of the Treasury shall have

20 access to the information in the National Directory

21 of New Hires for purposes of administering section

22 32 of the Internal Revenue Code of 1986, or the ad23 vance payment of the earned income tax credit

24 under section 3507 of such Code, and verifying a

25 claim with respect to employment in a tax return.
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1 ‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The

2 Secretary shall maintain within the National Direc3 tory of New Hires a list of multistate employers that

4 report information regarding newly hired employees

5 pursuant to section 453A(b)(1)(B), and the State

6 which each such employer has designated to receive

7 such information.

8 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS9 CLOSURES.—

10 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD11 MINISTRATION.—

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

13 transmit information on individuals and em14 ployers maintained under this section to the So15 cial Security Administration to the extent nec16 essary for verification in accordance with sub17 paragraph (B).

18 ‘‘(B) VERIFICATION BY SSA.—The Social

19 Security Administration shall verify the accu20 racy of, correct, or supply to the extent pos21 sible, and report to the Secretary, the following

22 information supplied by the Secretary pursuant

23 to subparagraph (A):

24 ‘‘(i) The name, social security num25 ber, and birth date of each such individual.
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1 ‘‘(ii) The employer identification num2 ber of each such employer.

3 ‘‘(2) INFORMATION COMPARISONS.—For the

4 purpose of locating individuals in a parterntiy estab5 lishment case or a case involving the establishment,

6 modification, or enforcement of a support order, the

7 Secretary shall—

8 ‘‘(A) compare information in the National

9 Directory of New Hires against information in

10 the support case abstracts in the Federal Case

11 Registry of Child Support Orders not less often

12 than every 2 business days; and

13 ‘‘(B) within 2 such days after such a com14 parison reveals a match with respect to an indi15 vidual, report the information to the State

16 agency responsible for the case.

17 ‘‘(3) INFORMATION COMPARISONS AND DISCLO18 SURES OF INFORMATION IN ALL REGISTRIES FOR

19 TITLE IV PROGRAM PURPOSES.—To the extent and

20 with the frequency that the Secretary determines to

21 be effective in assisting States to carry out their re22 sponsibilities under programs operated under this

23 part and programs funded under part A, the Sec24 retary shall—
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1 ‘‘(A) compare the information in each com2 ponent of the Federal Parent Locator Service

3 maintained under this section against the infor4 mation in each other such component (other

5 than the comparison required by paragraph

6 (2)), and report instances in which such a com7 parison reveals a match with respect to an indi8 vidual to State agencies operating such pro9 grams; and

10 ‘‘(B) disclosure information in such reg11 istries to such State agencies.

12 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

13 TO THE SOCIAL SECURITY ADMINISTRATION.—The

14 National Directory of New Hires shall provide the

15 Commissioner of Social Security with all information

16 in the National Directory, which shall be used to de17 termine the accuracy of payments under the supple18 mental security income program under title XVI and

19 in connection with benefits under title II.

20 ‘‘(5) RESEARCH.—The Secretary may provide

21 access to information reported by employers pursu22 ant to section 453A(b) for research purposes found

23 by the Secretary to be likely to contribute to achiev24 ing the purposes of part A or this part, but without

25 personal identifiers.
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1 ‘‘(k) FEES.—

2 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

3 shall reimburse the Commissioner of Social Security,

4 at a rate negotiated between the Secretary and the

5 Commissioner, for the costs incurred by the Com6 missioner in performing the verification services de7 scribed in subsection (j).

8 ‘‘(2) FOR INFORMATION FROM STATE DIREC9 TORIES OF NEW HIRES.—The Secretary shall reim10 burse costs incurred by State directories of new

11 hires in furnishing information as required by sub12 section (j)(3), at rates which the Secretary deter13 mines to be reasonable (which rates shall not include

14 payment for the costs of obtaining, compiling, or

15 maintaining such information).

16 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

17 AND FEDERAL AGENCIES.—A State or Federal agen18 cy that receives information from the Secretary pur19 suant to this section shall reimburse the Secretary

20 for costs incurred by the Secretary in furnishing the

21 information, at rates which the Secretary determines

22 to be reasonable (which rates shall include payment

23 for the costs of obtaining, verifying, maintaining,

24 and comparing the information).
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1 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In2 formation in the Federal Parent Locator Service, and in3 formation resulting from comparisons using such informa4 tion, shall not be used or disclosed except as expressly pro5 vided in this section, subject to section 6103 of the Inter6 nal Revenue Code of 1986.

7 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

8 The Secretary shall establish and implement safeguards

9 with respect to the entities established under this section

10 designed to—

11 ‘‘(1) ensure the accuracy and completeness of

12 information in the Federal Parent Locator Service;

13 and

14 ‘‘(2) restrict access to confidential information

15 in the Federal Parent Locator Service to authorized

16 persons, and restrict use of such information to au17 thorized purposes.

18 ‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each

19 department, agency, and instrumentality of the United

20 States on a quarterly basis shall report to the Federal

21 Parent Locator Service the name and social security num22 ber of each employee and the wages paid to the employee

23 during the previous quarter, except that such a report

24 shall not be filed with respect to an employee of a depart25 ment, agency, or instrumentality performing intelligence
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1 or counterintelligence functions, if the head of such de2 partment, agency, or instrumentality has determined that

3 filing such a report could endanger the safety of the em4 ployee or compromise an ongoing investigation or intel5 ligence mission.’’.

6 (g) CONFORMING AMENDMENTS.—

7 (1) TO PART D OF TITLE IV OF THE SOCIAL SE8 CURITY ACT.—

9 (A) Section 454(8)(B) (42 U.S.C.

10 654(8)(B)) is amended to read as follows:

11 ‘‘(B) the Federal Parent Locator Service

12 established under section 453;’’.

13 (B) Section 454(13) (42 U.S.C. 654(13))

14 is amended by inserting ‘‘and provide that in15 formation requests by parents who are residents

16 of other States be treated with the same prior17 ity as requests by parents who are residents of

18 the State submitting the plan’’ before the semi19 colon.

20 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

21 Section 3304(a)(16) of the Internal Revenue Code of

22 1986 is amended—

23 (A) by striking ‘‘Secretary of Health, Edu24 cation, and Welfare’’ each place such term ap-
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1 pears and inserting ‘‘Secretary of Health and

2 Human Services’’;

3 (B) in subparagraph (B), by striking

4 ‘‘such information’’ and all that follows and in5 serting ‘‘information furnished under subpara6 graph (A) or (B) is used only for the purposes

7 authorized under such subparagraph;’’;

8 (C) by striking ‘‘and’’ at the end of sub9 paragraph (A);

10 (D) by redesignating subparagraph (B) as

11 subparagraph (C); and

12 (E) by inserting after subparagraph (A)

13 the following new subparagraph:

14 ‘‘(B) wage and unemployment compensa15 tion information contained in the records of

16 such agency shall be furnished to the Secretary

17 of Health and Human Services (in accordance

18 with regulations promulgated by such Sec19 retary) as necessary for the purposes of the Na20 tional Director of New Hires established under

21 section 453(i) of the Social Security Act, and’’.

22 (3) TO STATE GRANT PROGRAM UNDER TITLE

23 III OF THE SOCIAL SECURITY ACT.—Subsection (h)

24 of section 303 (42 U.S.C. 503) is amended to read

25 as follows:
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1 ‘‘(h)(1) The State agency charged with the adminis2 tration of the State law shall, on a reimbursable basis—

3 ‘‘(A) disclose quarterly, to the Secretary of

4 Health and Human Services, wage and claim infor5 mation, as required pursuant to section 453(i)(1),

6 contained in the records of such agency;

7 ‘‘(B) ensure that information provided pursuant

8 to subparagraph (A) meets such standards relating

9 to correctness and verification as the Secretary of

10 Health and Human Services, with the concurrence

11 of the Secretary of Labor, may find necessary; and

12 ‘‘(C) establish such safeguards as the Secretary

13 of Labor determines are necessary to insure that in14 formation disclosed under subparagraph (A) is used

15 only for purposes of section 453(i)(1) in carrying out

16 the child support enforcement program under title

17 IV.

18 ‘‘(2) Whenever the Secretary of Labor, after reason19 able notice and opportunity for hearing to the State agen20 cy charged with the administration of the State law, finds

21 that there is a failure to comply substantially with the re22 quirements of paragraph (1), the Secretary of Labor shall

23 notify such State agency that further payments will not

24 be made to the State until the Secretary of Labor is satis25 fied that there is no longer any such failure. Until the
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1 Secretary of Labor is so satisfied, the Secretary shall

2 make no future certification to the Secretary of the Treas3 ury with respect to the State.

4 ‘‘(3) For purposes of this subsection—

5 ‘‘(A) the term ‘wage information’ means infor6 mation regarding wages paid to an individual, the

7 social security account number of such individual,

8 and the name, address, State, and the Federal em9 ployer identification number of the employer paying

10 such wages to such individual; and

11 ‘‘(B) the term ‘claim information’ means infor12 mation regarding whether an individual is receiving,

13 has received, or has made application for, unemploy14 ment compensation, the amount of any such com15 pensation being received (or to be received by such

16 individual), and the individual’s current (or most re17 cent) home address.’’.

18 (4) DISCLOSURE OF CERTAIN INFORMATION TO

19 AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN20 CIES.—

21 (A) IN GENERAL.—Paragraph (6) of sec22 tion 6103(l) of the Internal Revenue Code of

23 1986 (relating to disclosure of return informa24 tion to Federal, State, and local child support

25 enforcement agencies) is amended by redesig-
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1 nating subparagraph (B) as subparagraph (C)

2 and by inserting after subparagraph (A) the fol3 lowing new subparagraph:

4 ‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—

5 The following information disclosed to any child

6 support enforcement agency under subpara7 graph (A) with respect to any individual with

8 respect to whom child support obligations are

9 sought to be established or enforced may be dis10 closed by such agency to any agent of such

11 agency which is under contract with such agen12 cy to carry out the purposes described in sub13 paragraph (C):

14 ‘‘(i) The address and social security

15 account number (or numbers) of such indi16 vidual.

17 ‘‘(ii) The amount of any reduction

18 under section 6402(c) (relating to offset of

19 past-due support against overpayments) in

20 any overpayment otherwise payable to such

21 individual.’’.

22 (B) CONFORMING AMENDMENTS.—

23 (i) Paragraph (3) of section 6103(a)

24 of such Code is amended by striking
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1 ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or

2 (12) of subsection (l)’’.

3 (ii) Subparagraph (C) of section

4 6103(l)(6) of such Code, as redesignated

5 by subsection (a), is amended to read as

6 follows:

7 ‘‘(C) RESTRICTION ON DISCLOSURE.—In8 formation may be disclosed under this para9 graph only for purposes of, and to the extent

10 necessary in, establishing and collecting child

11 support obligations from, and locating, individ12 uals owing such obligations.’’.

13 (iii) The material following subpara14 graph (F) of section 6103(p)(4) of such

15 Code is amended by striking ‘‘subsection

16 (l)(12)(B)’’ and inserting ‘‘paragraph

17 (6)(A) or (12)(B) of subsection (l)’’.

18 SEC. 217. COLLECTION AND USE OF SOCIAL SECURITY

19 NUMBERS FOR USE IN CHILD SUPPORT EN20 FORCEMENT.

21 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

22 U.S.C. 666(a)), as amended by section 215 of this Act,

23 is amended by adding at the end the following new para24 graph:
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1 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM2 BERS IN CERTAIN MATTERS.—Procedures requiring

3 that the social security number of—

4 ‘‘(A) any applicant for a professional li5 cense, commercial driver’s license, occupational

6 license, or marriage license be recorded on the

7 application;

8 ‘‘(B) any individual who is subject to a di9 vorce decree, support order, or paternity deter10 mination or acknowledgment be placed in the

11 records relating to the matter; and

12 ‘‘(C) any individual who has died be placed

13 in the records relating to the death and be re14 corded on the death certificate.

15 For purposes of subparagraph (A), if a State allows

16 the use of a number other than the social security

17 number, the State shall so advise any applicants.’’.

18 (b) CONFORMING AMENDMENTS.—Section

19 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C) is amended—

20 (1) in clause (i), by striking ‘‘may require’’ and

21 inserting ‘‘shall require’’;

22 (2) in clause (ii), by inserting after the first

23 sentence the following: ‘‘In the administration of any

24 law involving the issuance of a marriage certificate

25 or license, each State shall require each party named
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1 in the certificate or license to furnish to the State

2 (or political subdivision thereof), or any State agen3 cy having administrative responsibility for the law

4 involved, the social security number of the party.’’;

5 (3) in clause (ii), by inserting ‘‘or marriage cer6 tificate’’ after ‘‘Such numbers shall not be recorded

7 on the birth certificate’’;

8 (4) in clause (vi), by striking ‘‘may’’ and insert9 ing ‘‘shall’’; and

10 (5) by adding at the end the following new

11 clauses:

12 ‘‘(x) An agency of a State (or a political

13 subdivision thereof) charged with the adminis14 tration of any law concerning the issuance or

15 renewal of a license, certificate, permit, or other

16 authorization to engage in a profession, an oc17 cupation, or a commercial activity shall require

18 all applicants for issuance or renewal of the li19 cense, certificate, permit, or other authorization

20 to provide the applicant’s social security num21 ber to the agency for the purpose of administer22 ing such laws, and for the purpose of respond23 ing to requests for information from an agency

24 operating pursuant to part D of title IV.
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1 ‘‘(xi) All divorce decrees, support orders,

2 and paternity determinations issued, and all pa3 ternity acknowledgments made, in each State

4 shall include the social security number of each

5 party to the decree, order, determination, or ac6 knowledgment in the records relating to the

7 matter, for the purpose of responding to re8 quests for information from any agency operat9 ing pursuant to part D of title IV.’’.

10 Subtitle C—Streamlining and Uniformity of

11 Procedures

12 SEC. 221. ADOPTION OF UNIFORM STATE LAWS.

13 Section 466 (42 U.S.C. 666) is amended by adding

14 at the end the following new subsection:

15 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

16 ACT.—

17 ‘‘(1) ENACTMENT AND USE.—In order to

18 satisfy section 454(20)(A), on and after Janu19 ary 1, 1998, each State must have in effect the

20 Uniform Interstate Family Support Act, as ap21 proved by the American Bar Association on

22 February 9, 1993, together with any amend23 ments officially adopted before January 1, 1998

24 by the National Conference of Commissioners

25 on Uniform State Laws.
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1 (2) EMPLOYERS TO FOLLOW PROCEDURAL

2 RULES OF STATE WHERE EMPLOYEE WORKS.—The

3 State law enacted pursuant to paragraph (1) shall

4 provide that an employer that receives an income

5 withholding order or notice pursuant to section 501

6 of the Uniform Interstate Family Support Act shall

7 follow the procedural rules that apply with respect to

8 such order or notice under the laws of the State in

9 which the obligor is employed.

10 SEC. 222. IMPROVEMENTS TO FULL FAITH AND CREDIT

11 FOR CHILD SUPPORT ORDERS.

12 Section 1738B of title 28, United States Code, is

13 amended—

14 (1) in subsection (a)(2), by striking ‘‘subsection

15 (e)’’ and inserting ‘‘subsections (e), (f), and (i);

16 (2) in subsection (b), by inserting after the 2nd

17 undesignated paragraph the following:

18 ‘‘ ‘child’s home State’ means the State in which

19 a child lived with a parent or a person acting as par20 ent for at least 6 consecutive months immediately

21 preceding the time of filing of a petition or com22 parable pleading for support and, if a child is less

23 than 6 months old, the State in which the child lived

24 from birth with any of them. A period of temporary
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1 absence of any of them is counted as part of the 6-

2 month period.’’;

3 (3) in subsection (c), by inserting ‘‘by a court

4 of a State’’ before ‘‘is made’’;

5 (4) in subsection (c)(1), by inserting ‘‘and sub6 sections (e), (f), and (g)’’ after ‘‘located’’;

7 (5) in subsection (d)—

8 (A) by inserting ‘‘individual’’ before ‘‘con9 testant’’; and

10 (B) by striking ‘‘subsection (e)’’ and in11 serting ‘‘subsections (e) and (f)’’;

12 (6) in subsection (e), by striking ‘‘make a modi13 fication of a child support order with respect to a

14 child that is made’’ and inserting ‘‘modify a child

15 support order issued’’;

16 (7) in subsection (e)(1), by inserting ‘‘pursuant

17 to subsection (i)’’ before the semicolon;

18 (8) in subsection (e)(2)—

19 (A) by inserting ‘‘individual’’ before ‘‘con20 testant’’ each place such term appears; and

21 (B) by striking ‘‘to that court’s making the

22 modification and assuming’’ and inserting ‘‘with

23 the State of continuing, exclusive jurisdiction

24 for a court of another State to modify the order

25 and assume’’;
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1 (9) by redesignating subsections (f) and (g) as

2 subsections (g) and (h) respectively;

3 (10) by inserting after subsection (e) the follow4 ing new subsection:

5 (f) RECOGNITION OF CHILD SUPPORT ORDERS.—If

6 1 or more child support orders have been issued in this

7 or another State with regard to an obligor and a child,

8 a court shall apply the following rules in determining

9 which order to recognize for purposes of continuing, exclu10 sive jurisdiction and enforcement:

11 ‘‘(1) If only 1 court has issued a child support

12 order, the order of that court must be recognized.

13 ‘‘(2) If 2 or more courts have issued child sup14 port orders for the same obligor and child, and only

15 1 of the courts would have continuing, exclusive ju16 risdiction under this section, the order of that court

17 must be recognized.

18 ‘‘(3) If 2 of more courts have issued child sup19 port orders for the same obligor and child, and more

20 than 1 of the courts would have continuing, exclusive

21 jurisdiction under this section, an order issued by a

22 court in the current home State of the child must

23 be recognized, but if an order has not been issued

24 in the current home State of the child, the order

25 most recently issued must be recognized.
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1 ‘‘(4) If 2 or more courts have issued child sup2 port orders for the same obligor and child, and none

3 of the courts would have continuing, exclusive juris4 diction under this section, a court may issue a child

5 support order, which must be recognized.

6 ‘‘(5) The court that has issued an order recog7 nized under this subsection is the court having con8 tinuing, exclusive jurisdiction,’’;

9 (11) in subsection (g) (as so redesignated)—

10 (A) by striking ‘‘PRIOR’’ and inserting

11 ‘‘MODIFIED’’; and

12 (B) by striking ‘‘subsection (e)’’ and in13 serting ‘‘subsections (e) and (f)’’;

14 (12) in subsection (h) (as so redesignated)—

15 (A) in paragraph (2), by inserting ‘‘includ16 ing the duration of current payments and other

17 obligations of support’’ before the comma; and

18 (B) in paragraph (3), by inserting ‘‘arrears

19 under’’ after ‘‘enforce’’; and

20 (13) by adding at the end the following new

21 subsection:

22 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

23 no individual contestant or child residing in the issuing

24 State, the party or support enforcement agency seeking

25 to modify, or to modify and enforce, a child support order
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1 issued in another State shall register that order in a State

2 with jurisdiction over the nonmovant for the purpose of

3 modification.’’.

4 SEC. 223. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

5 CASES.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 sections 215 and 217(a) of this Act, is amended by adding

8 at the end the following new paragraph:

9 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

10 INTERSTATE CASES.—Procedures under which—

11 ‘‘(A) the State shall respond within 5 busi12 ness days to a request made by another State

13 to enforce a support order (and for this purpose

14 the term ‘business day’ means a day on which

15 State offices are open for regular business);

16 ‘‘(B) the State may, by electronic or other

17 means, transmit to another State a request for

18 assistance in a case involving the enforcement

19 of a support order, which request—

20 ‘‘(i) shall include such information as

21 will enable the State to which the request

22 is transmitted to compare the information

23 about the case to the information in the

24 data bases of the State; and
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1 ‘‘(ii) shall constitute a certification by

2 the requesting State—

3 ‘‘(I) of the amount of support

4 under the order the payment of which

5 is in arrears; and

6 ‘‘(II) that the requesting State

7 has complied with all procedural due

8 process requirements applicable to the

9 case;

10 ‘‘(C) if the State provides assistance to an11 other State pursuant to this paragraph with re12 spect to a case, neither State shall consider the

13 case to be transferred to the caseload of such

14 other State; and

15 ‘‘(D) the State shall maintain records of—

16 ‘‘(i) the number of such requests for

17 assistance received by the State;

18 ‘‘(ii) the number of cases for which

19 the State collected support in response to

20 such a request; and

21 ‘‘(iii) the amount of such collected

22 support.’’.

23 SEC. 224. USE OF FORMS IN INTERSTATE ENFORCEMENT.

24 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

25 652(a)) is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (9);

3 (2) by striking the period at the end of para4 graph (10) and inserting ‘‘; and’’; and

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

6 paragraph:

7 ‘‘(11) not later than December 31, 1996, after

8 consulting with the State directors of programs

9 under this part, promulgate forms to be used by

10 States in interstate cases for—

11 ‘‘(A) collection of child support through in12 come withholding;

13 ‘‘(B) imposition of liens; and

14 ‘‘(C) administrative subpoenas.’’.

15 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

16 654(9)) is amended—

17 (1) by striking ‘‘and’’ at the end of subpara18 graph (C);

19 (2) by inserting ‘‘and’’ at the end of subpara20 graph (D); and

21 (3) by adding at the end the following new sub22 paragraph:

23 ‘‘(E) no later than April 1, 1997, in using

24 the forms promulgated pursuant to section

25 452(a)(11) for income withholding, imposition
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1 of liens, and issuance of administrative subpoe2 nas in interstate child support cases;’’.

3 SEC. 225. STATE LAWS PROVIDING EXPEDITED PROCE4 DURES.

5 (a) STATE LAW REQUIREMENTS.—Section 466 (42

6 U.S.C. 666), as amended by section 214 of this Act, is

7 amended—

8 (1) in subsection (a)(2), by striking the first

9 sentence and inserting the following: ‘‘Expedited ad10 ministrative and judicial procedures (including the

11 procedures specified in subsection (c)) for establish12 ing paternity and for establishing, modifying, and

13 enforcing support obligations.’’; and

14 (2) by inserting after subsection (b) the follow15 ing new subsection:

16 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

17 specified in this subsection, for purposes of the require18 ment of subsection (a)(2), are the following:

19 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN20 CY.—Procedures which give the State agency the au21 thority to take the following actions relating to es22 tablishment or enforcement of support orders, with23 out the necessity of obtaining an order from any

24 other judicial or administrative tribunal, and to rec-
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1 ognize and enforce the authority of State agencies of

2 other States) to take the following actions:

3 ‘‘(A) GENETIC TESTING.—To order genetic

4 testing for the purpose of paternity establish5 ment as provided in section 466(a)(5).

6 ‘‘(B) FINANCIAL OR OTHER INFORMA7 TION.—To subpoena any financial or other in8 formation needed to establish, modify, or en9 force a support order, and to impose penalties

10 for failure to respond to such a subpoena.

11 ‘‘(C) RESPONSE TO STATE AGENCY RE12 QUEST.—To require all entities in the State (in13 cluding for-profit, nonprofit, and governmental

14 employers) to provide promptly, in response to

15 a request by the State agency of that or any

16 other State administering a program under this

17 part, information on the employment, com18 pensation, and benefits of any individual em19 ployed by such entity as an employee or con20 tractor, and to sanction failure to respond to

21 any such request.

22 ‘‘(D) ACCESS TO CERTAIN RECORDS.—To

23 obtain access, subject to safeguards on privacy

24 and information security, to the following

25 records (including automated access, in the case
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1 of records maintained in automated data

2 bases):

3 ‘‘(i) Records of other State and local

4 government agencies, including—

5 ‘‘(I) vital statistics (including

6 records of marriage, birth, and di7 vorce);

8 ‘‘(II) State and local tax and rev9 enue records (including information

10 on residence address, employer, in11 come and assets);

12 ‘‘(III) records concerning real

13 and titled personal property;

14 ‘‘(IV) records of occupational and

15 professional licenses, and records con16 cerning the ownership and control of

17 corporations, partnerships, and other

18 business entities;

19 ‘‘(V) employment security

20 records;

21 ‘‘(VI) records of agencies admin22 istering public assistance programs;

23 ‘‘(VII) records of the motor vehi24 cle department; and

25 ‘‘(VIII) corrections records.
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1 ‘‘(ii) Certain records held by private

2 entities, including—

3 ‘‘(I) customer records of public

4 utilities and cable television compa5 nies; and

6 ‘‘(II) information (including in7 formation on assets and liabilities) on

8 individuals who owe or are owed sup9 port (or against or with respect to

10 whom a support obligation is sought)

11 held by financial institutions (subject

12 to limitations on liability of such enti13 ties arising from affording such ac14 cess), as provided pursuant to agree15 ments described in subsection (a)(18).

16 ‘‘(E) CHANGE IN PAYEE.—In cases in

17 which support is subject to an assignment in

18 order to comply with a requirement imposed

19 pursuant to part A or section 1912, or to a re20 quirement to pay through the State disburse21 ment unit established pursuant to section

22 454B, upon providing notice to obligor and obli23 gee, to direct the obligor or other payor to

24 change the payee to the appropriate government

25 entity.
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1 ‘‘(F) INCOME WITHHOLDING.—To order

2 income withholding in accordance with sub3 sections (a)(1) and (b) of section 466.

4 ‘‘(G) SECURING ASSETS.—In cases in

5 which there is a support arrearage, to secure

6 assets to satisfy the arrearage by—

7 ‘‘(i) intercepting or seizing periodic or

8 lump-sum payments from—

9 ‘‘(I) a State or local agency, in10 cluding unemployment compensation,

11 workers’ compensation, and other ben12 efits; and

13 ‘‘(II) judgments, settlements, and

14 lotteries;

15 ‘‘(ii) attaching and seizing assets of

16 the obligor held in financial institutions;

17 ‘‘(iii) attaching public and private re18 tirement funds; and

19 ‘‘(iv) imposing liens in accordance

20 with subsection (a)(4) and, in appropriate

21 cases, to force sale of property and dis22 tribution of proceeds.

23 ‘‘(H) INCREASED MONTHLY PAYMENTS.—

24 For the purpose of securing overdue support, to

25 increase the amount of monthly support pay-
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1 ments to include amounts for arrearages, sub2 ject to such conditions or limitations as the

3 State may provide.

4 Such procedures shall be subject to due process safe5 guards, including (as appropriate) requirements for

6 notice, opportunity to contest the action, and oppor7 tunity for an appeal on the record to an independent

8 administrative or judicial tribunal.

9 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

10 The expedited procedures required under subsection

11 (a)(2) shall include the following rules and author12 ity, applicable with respect to all proceedings to es13 tablish paternity or to establish, modify, or enforce

14 support orders:

15 ‘‘(A) LOCATOR INFORMATION; PRESUMP16 TIONS CONCERNING NOTICE.—Procedures

17 under which—

18 ‘‘(i) each party to any paternity or

19 child support proceeding is required (sub20 ject to privacy safeguards) to file with the

21 tribunal and the State case registry upon

22 entry of an order, and to update as appro23 priate, information on location and identity

24 of the party, including social security num25 ber, residential and mailing addresses, tele-
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1 phone number, driver’s license number,

2 and name, address, and name and tele3 phone number of employer; and

4 ‘‘(ii) in any subsequent child support

5 enforcement action between the parties,

6 upon sufficient showing that diligent effort

7 has been made to ascertain the location of

8 such a party, the tribunal may deem State

9 due process requirements for notice and

10 service of process to be met with respect to

11 the party, upon delivery of written notice

12 to the most recent residential or employer

13 address filed with the tribunal pursuant to

14 clause (i).

15 ‘‘(B) STATEWIDE JURISDICTION.—Proce16 dures under which—

17 ‘‘(i) the State agency and any admin18 istrative or judicial tribunal with authority

19 to hear child support and paternity cases

20 exerts statewide jurisdiction over the par21 ties; and

22 ‘‘(ii) in a State in which orders are is23 sued by courts or administrative tribunals,

24 a case may be transferred between local ju25 risdictions in the State without need for
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1 any additional filing by the petitioner, or

2 service of process upon the respondent, to

3 retain jurisdiction over the parties.

4 ‘‘(3) COORDINATION WITH ERISA.—Notwith5 standing subsection (d) of section 514 of the Em6 ployee Retirement Income Security Act of 1974 (re7 lating to effect on other laws), nothing in this sub8 section shall be construed to alter, amend, modify,

9 invalidate, impair, or supersede subsections (a), (b),

10 and (c) of such section 514 as it applies with respect

11 to any procedure referred to in paragraph (1) and

12 any expedited procedure referred to in paragraph

13 (2), except to the extent that such procedure would

14 be consistent with the requirements of section

15 206(d)(3) of such Act (relating to qualified domestic

16 relations orders) or the requirements of section

17 609(a) of such Act (relating to qualified medical

18 child support orders) if the reference in such section

19 206(d)(3) to a domestic relations order and the ref20 erence in such section 609(a) to a medical child sup21 port order were a reference to a support order re22 ferred to in paragraphs (1) and (2) relating to the

23 same matters, respectively.’’.

24 ‘‘(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

25 Section 454A, as added by section 245(a)(2) and as
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1 amended by sections 211 and 212(c) of this Act, is amend2 ed by adding at the end the following new subsection:

3 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

4 The automated system required by this section shall be

5 used, to the maximum extent feasible, to implement the

6 expedited administrative procedures required by section

7 466(c).’’.

8 Subtitle D—Paternity Establishment

9 SEC. 231. STATE LAWS CONCERNING PATERNITY ESTAB10 LISHMENT.

11 ‘‘(a) STATE LAWS REQUIRED.—Section 466(a)(5)

12 (42 U.S.C. 666(a)(5)) is amended to read as follows:

13 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES14 TABLISHMENT.

15 ‘‘(A) ESTABLISHMENT PROCESS AVAIL16 ABLE FROM BIRTH UNTIL AGE 18.—

17 ‘‘(i) Procedures which permit the es18 tablishment of the paternity of a child at

19 any time before the child attains 18 years

20 of age.

21 ‘‘(ii) As of August 16, 1984, clause (i)

22 shall also apply to a child for whom pater23 nity has not been established or for whom

24 a paternity action was brought but dis25 missed because a statute of limitations of
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1 less than 18 years was then in effect in the

2 State.

3 ‘‘(B) PROCEDURES CONCERNING GENETIC

4 TESTING.—

5 ‘‘(i) GENETIC TESTING REQUIRED IN

6 CERTAIN CONTESTED CASES.—Procedures

7 under which the State is required, in a

8 contested paternity case (unless otherwise

9 barred by State law) to require the child

10 and all other parties (other than individ11 uals found under section 454(29) to have

12 good cause for refusing to cooperate) to

13 submit to genetic tests upon the request of

14 any such party, if the request is supported

15 by a sworn statement by the party—

16 ‘‘(I) alleging paternity, and set17 ting forth facts establishing a reason18 able possibility of the requisite sexual

19 contact between the parties; or

20 ‘‘(II) denying paternity, and set21 ting forth facts establishing a reason22 able possibility of the nonexistence of

23 sexual contact between the parties.

24 ‘‘(ii) OTHER REQUIREMENTS.—Proce25 dures which require the State agency, in
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1 any case in which the agency orders ge2 netic testing—

3 ‘‘(I) to pay costs of such tests,

4 subject to recoupment (if the State so

5 elects) from the alleged father if pa6 ternity is established; and

7 ‘‘(II) to obtain additional testing

8 in any case if an original test result is

9 contested, upon request and advance

10 payment by the contestant.

11 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL12 EDGMENT.—

13 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce14 dures for a simple civil process for volun15 tarily acknowledging paternity under which

16 the State must provide that, before a

17 mother and a putative father can sign an

18 acknowledgment of paternity, the mother

19 and the putative father must be given no20 tice, orally and in writing, of the alter21 natives to, the legal consequences of, and

22 the rights (including, if 1 parent is a

23 minor, any rights afforded due to minority

24 status) and responsibilities that arise from,

25 signing the acknowledgment.
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1 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

2 Such procedures must include a hospital3 based program for the voluntary acknowl4 edgment of paternity focusing on the pe5 riod immediately before or after the birth

6 of a child, subject to such good cause ex7 ceptions, taking into account the best in8 terests of the child, as the State may es9 tablish.

10 ‘‘(iii) PATERNITY ESTABLISHMENT

11 SERVICES.—

12 ‘‘(I) STATE-OFFERED SERV13 ICES.—Such procedures must require

14 the State agency responsible for main15 taining birth records to offer vol16 untary paternity establishment serv17 ices.

18 ‘‘(II) REGULATIONS.—

19 ‘‘(aa) SERVICES OFFERED

20 BY HOSPITALS AND BIRTH

21 RECORD AGENCIES.—The Sec22 retary shall prescribe regulations

23 governing voluntary paternity es24 tablishment services offered by
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1 hospitals and birth record agen2 cies.

3 ‘‘(bb) SERVICES OFFERED

4 BY OTHER ENTITIES.—The Sec5 retary shall prescribe regulations

6 specifying the types of other enti7 ties that may offer voluntary pa8 ternity establishment services,

9 and governing the provision of

10 such services, which shall include

11 a requirement that such an entity

12 must use the same notice provi13 sions used by, use the same ma14 terials used by, provide the per15 sonnel providing such services

16 with the same training provided

17 by, and evaluate the provision of

18 such services in the same manner

19 as the provision of such services

20 is evaluated by, voluntary pater21 nity establishment programs of

22 hospitals and birth record agen23 cies.

24 ‘‘(iv) USE OF PATERNITY ACKNOWL25 EDGMENT AFFIDAVIT.—Such procedures
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1 must require the State to develop and use

2 an affidavit for the voluntary acknowledg3 ment of paternity which includes the mini4 mum requirements of the affidavit devel5 oped by the Secretary under section

6 452(a)(7) for the voluntary acknowledg7 ment of paternity, and to give full faith

8 and credit to such an affidavit signed in

9 any other State according to its proce10 dures.

11 ‘‘(D) STATUS OF SIGNED PATERNITY AC12 KNOWLEDGMENT.—

13 ‘‘(i) INCLUSION IN BIRTH RECORDS.—

14 Procedures under which the name of the

15 father shall be included on the record of

16 birth of the child of unmarried parents

17 only if—

18 ‘‘(I) the father and mother have

19 signed a voluntary acknowledgment of

20 paternity; or

21 ‘‘(II) a court or an administrative

22 agency of competent jurisdiction has

23 issued an adjudication of paternity.

24 Nothing in this clause precludes a State

25 agency from obtaining an admission of pa-
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1 ternity from the father for submission in a

2 judicial or administrative proceeding, or

3 prohibit the issuance of an order in a judi4 cial or administrative proceeding which

5 bases a legal finding of paternity on an ad6 mission of paternity by the father and any

7 other additional showing required by State

8 law.

9 ‘‘(ii) LEGAL FINDING OF PATER10 NITY.—Procedures under which a signed

11 voluntary acknowledgement of paternity is

12 considered a legal finding of paternity,

13 subject to the right of any signatory to re14 scind the acknowledgement within the ear15 lier of—

16 ‘‘(I) 60 days; or

17 ‘‘(II) the date of an administra18 tive or judicial proceeding relating to

19 the child (including a proceeding to

20 establish a support order) in which

21 the signatory is a party.

22 ‘‘(iii) CONTEST.—Procedures under

23 which, after the 60-day period referred to

24 in clause (ii), a signed voluntary acknowl25 edgement of paternity may be challenged
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1 in court only on the basis of fraud, duress,

2 or material mistake of fact, with the bur3 den of proof upon the challenger, and

4 under which the legal responsibilities (in5 cluding child support obligations) of any

6 signatory arising from the acknowledgment

7 may not be suspended during the chal8 lenge, except for good cause shown.

9 ‘‘(E) BAR ON ACKNOWLEDGEMENT RATIFI10 CATION PROCEEDINGS.—Procedures under

11 which judicial or administrative proceedings are

12 not required or permitted to ratify an unchal13 lenged acknowledgement of paternity.

14 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

15 RESULTS.—Procedures—

16 ‘‘(i) requiring the admission into evi17 dence, for purposes of establishing pater18 nity, of the results of any genetic test that

19 is—

20 ‘‘(I) of a type generally acknowl21 edged as reliable by accreditation bod22 ies designated by the Secretary; and

23 ‘‘(II) performed by a laboratory

24 approved by such an accreditation

25 body;
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1 ‘‘(ii) requiring an objection to genetic

2 testing results to be made in writing not

3 later than a specified number of days be4 fore any hearing at which the results may

5 be introduced into evidence (or, at State

6 option, not later than a specified number

7 of days after receipt of the results); and

8 ‘‘(iii) making the test results admissi9 ble as evidence of paternity without the

10 need for foundation testimony or other

11 proof of authenticity or accuracy, unless

12 objection is made.

13 ‘‘(G) PRESUMPTION OF PATERNITY IN

14 CERTAIN CASES.—Procedures which create a re15 buttable or, at the option of the State, conclu16 sive presumption of paternity upon genetic test17 ing results indicating a threshold probability

18 that the alleged father is the father of the child.

19 ‘‘(H) DEFAULT ORDERS.—Procedures re20 quiring a default order to be entered in a pater21 nity case upon a showing of service of process

22 on the defendant and any additional showing

23 required by State law.

24 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce25 dures providing that the parties to an action to
224

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1 establish paternity are not entitled to a trial by

2 jury.

3 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

4 ON PROBABLE PATERNITY IN CONTESTED

5 CASES.—Procedures which require that a tem6 porary order be issued, upon motion by a party,

7 requiring the provision of child support pending

8 an administrative or judicial determination of

9 parentage, if there is clear and convincing evi10 dence of paternity (on the basis of genetic tests

11 or other evidence).

12 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

13 PATERNITY ESTABLISHMENT COSTS.—Proce14 dures under which bills for pregnancy, child15 birth, and genetic testing are admissible as evi16 dence without requiring third-party foundation

17 testimony, and shall constitute prima facie evi18 dence of amounts incurred for such services or

19 for testing on behalf of the child.

20 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

21 Procedures ensuring that the putative father

22 has a reasonable opportunity to initiate a pater23 nity action.

24 ‘‘(M) FILING OF ACKNOWLEDGEMENTS

25 AND ADJUDICATIONS IN STATE REGISTRY OF
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1 BIRTH RECORDS.—Procedures under which vol2 untary acknowledgements and adjudications of

3 paternity by judicial or administrative processes

4 are filed with the State registry of birth records

5 for comparison with information in the State

6 case registry.’’.

7 (b) NATIONAL PATERNITY ACKNOWLEDGEMENT AF8 FIDAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

9 amended by inserting ‘‘, and develop an affidavit to be

10 used for the voluntary acknowledgment of paternity which

11 shall include the social security number of each parent

12 and, after consultation with the States, other common ele13 ments as determined by such designee’’ before the semi14 colon.

15 (c) CONFORMING AMENDMENT.—Section 468 (42

16 U.S.C. 668) is amended by striking ‘‘a simple civil process

17 for voluntarily acknowledging paternity and’’.

18 SEC. 232. OUTREACH FOR VOLUNTARY PATERNITY ESTAB19 LISHMENT.

20 Section 454(23) (42 U.S.C. 654(23)) is amended by

21 inserting ‘‘and will publicize the availability and encourage

22 the use of procedures for voluntary establishment of pater23 nity and child support by means the State deems appro24 priate’’ before the semicolon.
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1 SEC. 233. COOPERATION REQUIREMENT AND GOOD CAUSE

2 EXCEPTION.

3 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

4 amended by sections 201(b), 203(a), 212(a), and 213(a)

5 of this Act, is amended—

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

7 (27);

8 (2) by striking the period at the end of para9 graph (28 and inserting ‘‘; and’’; and

10 (3) by inserting after paragraph (28) the fol11 lowing new paragraph:

12 ‘‘(29) provide that the State agency administer13 ing the plan under this part—

14 ‘‘(A) will make the determination specified

15 under paragraph (4), as to whether an individ16 ual is cooperating with efforts to establish pa17 ternity and secure support (or has good cause

18 not to cooperate with such efforts) for purposes

19 of the requirements of sections 403(b)(1)(E)(i)

20 and 1912;

21 ‘‘(B) will advise individuals, both orally

22 and in writing, of the grounds for good cause

23 exceptions to the requirement to cooperate with

24 such efforts;

25 ‘‘(C) will take the best interests of the

26 child into consideration in making the deter-
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1 mination whether such individual has good

2 cause not to cooperate with such efforts;

3 ‘‘(D)(i) will make the initial determination

4 as to whether an individual is cooperating (or

5 has good cause not to cooperate) with efforts to

6 establish paternity within 10 days after such in7 dividual is referred to such State agency by the

8 State agency administering the program under

9 part A or title XIX;

10 ‘‘(ii) will make redeterminations as to co11 operation or good cause at appropriate inter12 vals; and

13 ‘‘(iii) will promptly notify the individual,

14 and the State agencies administering such pro15 grams, of each such determination and redeter16 mination;

17 ‘‘(E) with respect to any child born on or

18 after the date 10 months after enactment of

19 this provision, will not determine (or redeter20 mine) the mother (or other custodial relative) of

21 such child to be cooperating with efforts to es22 tablish paternity unless such individual fur23 nishes—

24 ‘‘(i) the name of the putative father

25 (or fathers); and
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1 ‘‘(ii) sufficient additional information

2 to enable the State agency, if reasonable

3 efforts were made, to verify the identity of

4 the person named as the putative father

5 (including such information as the putative

6 father’s present address, telephone num7 ber, date of birth, past or present place of

8 employment, school previously or currently

9 attended, names and addresses of parents,

10 friends, or relatives able to provide location

11 information, or other information that

12 could enable service of process on such per13 son); and

14 ‘‘(F)(i) (where a custodial parent who was

15 initially determined not to be cooperating (or to

16 have good cause not to cooperate) is later deter17 mined to be cooperating or to have good cause

18 not to cooperate) will immediately notify the

19 State agencies administering the programs

20 under part A and title XIX that this eligibility

21 condition has been met; and

22 ‘‘(ii) (where a custodial parent was initially

23 determined to be cooperating (or to have good

24 cause not to cooperate)) will not later determine

25 such individual not to be cooperating (or not to
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1 have good cause not to cooperate) until such in2 dividual has been afforded an opportunity for a

3 hearing.’’.

4 (b) MEDICAID AMENDMENTS.—Section 1912(a) (42

5 U.S.C. 1396k(a)) is amended—

6 (1) in paragraph (1)(B), by inserting ‘‘(except

7 as provided in paragraph (2))’’ after ‘‘to cooperate

8 with the State’’;

9 (2) in subparagraphs (B) and (C) of paragraph

10 (1) by striking ‘‘, unless’’ and all that follows and

11 inserting a semicolon; and

12 (3) by redesignating paragraph (2) as para13 graph (6), and inserting after paragraph (1) the fol14 lowing new paragraphs:

15 ‘‘(2) provide that the State agency will imme16 diately refer each applicant or recipient requiring

17 paternity establishment services to the State agency

18 administering the program under part D of title IV;

19 ‘‘(3) provide that an individual will not be re20 quired to cooperate with the State, as provided

21 under paragraph (1), if the individual is found to

22 have good cause for refusing to cooperate, as deter23 mined in accordance with standards prescribed by

24 the Secretary, which standards shall take into con-
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1 sideration the best interests of the individuals in2 volved—

3 ‘‘(A) to the satisfaction of the State agency

4 administering the program under part D, as de5 termined in accordance with section 454(29),

6 with respect to the requirements to cooperate

7 with efforts to establish paternity and to obtain

8 support (including medical support) from a par9 ent; and

10 ‘‘(B) to the satisfaction of the State agen11 cy administering the program under this title,

12 with respect to other requirements to cooperate

13 under paragraph (1);

14 ‘‘(4) provide that (except as provided in para15 graph (5)) an applicant requiring paternity estab16 lishment services (other than an individual presump17 tively eligible pursuant to section 1920) shall not be

18 eligible for medical assistance under this title until

19 such applicant—

20 ‘‘(i) has furnished to the agency admin21 istering the State plan under part D of title IV

22 the information specified in section 454(29)(E);

23 or

24 ‘‘(ii) has been determined by such agency

25 to have good cause not to cooperate; and
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1 ‘‘(5) provide that the provisions of paragraph

2 (4) shall not apply with respect to an applicant—

3 ‘‘(i) if such agency has not, within 10 days

4 after such individual was referred to such agen5 cy, provided the notification required by section

6 454(29)(D)(iii), until such notification is re7 ceived); and

8 ‘‘(ii) if such individual appeals a deter9 mination that the individual lacks good cause

10 for noncooperation, until after such determina11 tion is affirmed after notice and opportunity for

12 a hearing.’’.

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

14 this section are effective with respect to applications filed

15 in or after the first calendar quarter beginning 10 months

16 or more after the date of the enactment of this amendment

17 (or such earlier quarter as the State may select) for assist18 ance under a State plan approved under part A of title

19 IV of the Social Security Act or for medical assistance

20 under a State plan approved under title XIX of such Act.
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1 Subtitle E—Program Administration and

2 Funding

3 SEC. 241. PERFORMANCE-BASED INCENTIVES AND PEN4 ALTIES.

5 (a) DEVELOPMENT OF NEW SYSTEM.—The Sec6 retary of Health and Human Services, in consultation with

7 State directors of programs under part D of title IV of

8 the Social Security Act, shall develop a new incentive sys9 tem to replace, in a cost neutral manner, the system under

10 section 458 of such Act. The new system shall provide ad11 ditional payments to any State based on such State’s per12 formance under such a program. The Secretary shall in13 clude procedures that ensure that the total incentives paid

14 to all States for a fiscal year under the new incentive sys15 tem do not exceed the total incentives that would have

16 been paid to all States for such fiscal year under the sys17 tem that was in effect during fiscal year 1995. Not later

18 than October 1, 1996, the Secretary shall report on the

19 new system to the Committee on Ways and Means of the

20 House of Representatives and the Committee on Finance

21 of the Senate.

22 (b) CONFORMING AMENDMENTS TO PRESENT SYS23 TEM.—Section 458 (42 U.S.C. 658) is amended—

24 (1) in subsection (a), by striking ‘‘aid to fami25 lies with dependent children under a State plan ap-
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1 proved under part A of this title’’ and inserting ‘‘as2 sistance under a program funded under part A’’;

3 (2) in subsection (b)(1)(A), by striking ‘‘section

4 402(a)(26)’’ and inserting ‘‘section 402(a)(2)’’;

5 (3) in subsections (b) and (c)—

6 (A) by striking ‘‘AFDC collections’’ each

7 place it appears and inserting ‘‘title IV–A col8 lections’’, and

9 (B) by striking ‘‘non-AFDC collections’’

10 each place it appears and inserting ‘‘non-title

11 IV–A collections’’; and

12 (4) in subsection (c), by striking ‘‘combined

13 AFDC/non-AFDC administrative costs’’ both places

14 it appears and inserting ‘‘combined title IV–A/non15 title IV–A administrative costs’’.

16 (c) CALCULATION OF IV–D PATERNITY ESTABLISH17 MENT PERCENTAGE.—

18 (1) Section 452(g)(1)(A) (42 U.S.C.

19 652(g)(1)(A)) is amended by striking ‘‘75’’ and in20 serting ‘‘90’’.

21 (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

22 amended by redesignating subparagraphs (B)

23 through (E) as subparagraphs (C) through (F), re24 spectively, and by inserting after subparagraph (A)

25 the following new subparagraph:
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1 ‘‘(B) for a State with a paternity establish2 ment percentage of not less than 75 percent but

3 less than 90 percent for such fiscal year, the

4 paternity establishment percentage of the State

5 for the immediately preceding fiscal year plus 2

6 percentage points;’’.

7 (3) Section 452(g)(2)(A) (42 U.S.C.

8 652(g)(2)(A)) is amended in the matter preceding

9 clause (i)—

10 (A) by striking ‘‘paternity establishment

11 percentage’’ and inserting ‘‘IV–D paternity es12 tablishment percentage’’; and

13 (B) by striking ‘‘(or all States, as the case

14 may be)’’.

15 (4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

16 amended by adding at the end the following new

17 sentence: ‘‘In meeting the 90 percent paternity es18 tablishment requirement, a State may calculate ei19 ther the paternity establishment rate of cases in the

20 program funded under this part or the paternity es21 tablishment rate of all out-of-wedlock births in the

22 State.’’.

23 (5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

24 amended—
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1 (A) by striking subparagraph (A) and re2 designating subparagraphs (B) and (C) as sub3 paragraphs (A) and (B), respectively;

4 (B) in subparagraph (A) (as so redesig5 nated), by striking ‘‘the percentage of children

6 born out-of-wedlock in a State’’ and inserting

7 ‘‘the percentage of children in a State who are

8 born out of wedlock or for whom support has

9 not been established’’; and

10 (C) in subparagraph (B) (as so redesig11 nated) by inserting ‘‘and securing support’’ be12 fore the period.

13 (d) EFFECTIVE DATES.—

14 (1) INCENTIVE ADJUSTMENTS.—

15 (A) IN GENERAL.—The system developed

16 under subsection (a) and the amendments made

17 by subsection (b) become effective on October 1,

18 1997, except to the extent provided in subpara19 graph (B).

20 (B) APPLICATION OF SECTION 458.—Sec21 tion 458 of the Social Security Act, as in effect

22 on the day before the date of the enactment of

23 this section, shall be effective for purposes of

24 incentive payments to States for fiscal years be25 fore fiscal year 1999.
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1 (2) PENALTY REDUCTIONS.—The amendments

2 made by subsection (c) become effective with respect

3 to calendar quarters beginning on or after the date

4 of the enactment of this Act.

5 SEC. 242. FEDERAL AND STATE REVIEWS AND AUDITS.

6 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

7 U.S.C. 654) is amended—

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

9 inserting ‘‘(14)(A)’’;

10 (2) by redesignating paragraph (15) as sub11 paragraph (B) of paragraph (14); and

12 (3) by inserting after paragraph (14) the fol13 lowing new paragraph:

14 ‘‘(15) provide for—

15 ‘‘(A) a process for annual reviews of and

16 reports to the Secretary on the State program

17 operated under the State plan approved under

18 this part, including such information as may be

19 necessary to measure State compliance with

20 Federal requirements for expedited procedures,

21 using such standards and procedures as are re22 quired by the Secretary, under which the State

23 agency will determine the extent to which the

24 program is operated in compliance with this

25 part; and
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1 ‘‘(B) a process of extracting from the auto2 mated data processing system required by para3 graph (16) and transmitting to the Secretary

4 data and calculations concerning the levels of

5 accomplishment (and rates of improvement)

6 with respect to applicable performance indica7 tors (including IV–D paternity establishment

8 percentages to the extent necessary for pur9 poses of sections 452(g) and 458).’’.

10 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

11 U.S.C. 652 (a)(4)) is amended to read as follows:

12 ‘‘(4)(A) review data and calculations transmit13 ted by State agencies pursuant to section

14 454(15)(B) on State program accomplishments with

15 respect to performance indicators for purposes of

16 subsection (g) of this section and section 458;

17 ‘‘(B) review annual reports submitted pursuant

18 to section 454(15)(A) and, as appropriate, provide

19 to the State comments, recommendations for addi20 tional or alternative corrective actions, and technical

21 assistance; and

22 ‘‘(C) conduct audits, in accordance with the

23 Government auditing standards of the Comptroller

24 General of the United States—
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1 ‘‘(i) at least once every 3 years (or more

2 frequently, in the case of a State which fails to

3 meet the requirements of this part concerning

4 performance standards and reliability of pro5 gram data) to assess the completeness, reliabil6 ity, and security of the data, and the accuracy

7 of the reporting systems, used in calculating

8 performance indicators under subsection (g) of

9 this section and section 458;

10 ‘‘(ii) of the adequacy of financial manage11 ment of the State program operated under the

12 State plan approved under this part, including

13 assessments of—

14 ‘‘(I) whether Federal and other funds

15 made available to carry out the State pro16 gram are being appropriately expended,

17 and are properly and fully accounted for;

18 and

19 ‘‘(II) whether collections and disburse20 ments of support payments are carried out

21 correctly and are fully accounted for; and

22 ‘‘(iii) for such other purposes as the Sec23 retary may find necessary;’’.

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

25 this section shall be effective with respect to calendar
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1 quarters beginning 12 months or more after the date of

2 the enactment of this Act.

3 SEC. 243. REQUIRED REPORTING PROCEDURES.

4 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

5 652(a)(5)) is amended by inserting ‘‘, and establish proce6 dures to be followed by States for collecting and reporting

7 information required to be provided under this part, and

8 establish uniform definitions (including those necessary to

9 enable the measurement of State compliance with the re10 quirements of this part relating to expedited processes) to

11 be applied in following such procedures’’ before the semi12 colon.

13 (b) STATE PLAN REQUIREMENT.—Section 454 (42

14 U.S.C. 654), as amended by sections 201(b), 203(a),

15 212(a), 213(a), and 233 of this Act, is amended—

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

17 (28);

18 (2) by striking the period at the end of para19 graph (29) and inserting ‘‘; and’’; and

20 (3) by adding after paragraph (29) the follow21 ing new paragraph:

22 ‘‘(30) provide that the State shall use the defi23 nitions established under section 452(a)(5) in col24 lecting and reporting information as required under

25 this part.’’.
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1 SEC. 244. AUTOMATED DATA PROCESSING REQUIREMENTS.

2 (a) REVISED REQUIREMENTS.—

3 (1) IN GENERAL. Section 454(16) (42 U.S.C.

4 654(16)) is amended—

5 (A) by striking ‘‘, at the option of the

6 State,’’;

7 (B) by inserting ‘‘and operation by the

8 State agency’’ after ‘‘for the establishment’’;

9 (C) by inserting ‘‘meeting the requirements

10 of section 454A’’ after ‘‘information retrieval

11 system’’;

12 (D) by striking ‘‘in the State and localities

13 thereof, so as (A)’’ and inserting ‘‘so as’’;

14 (E) by striking ‘‘(i)’’; and

15 (F) by striking ‘‘(including’’ and all that

16 follows and inserting a semicolon.

17 (2) AUTOMATED DATA PROCESSING.—Part D of

18 title IV (42 U.S.C. 651–669) is amended by insert19 ing after section 454 the following new section:

20 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

21 ‘‘(a) IN GENERAL.—In order for a State to meet the

22 requirements of this section, the State agency administer23 ing the State program under this part shall have in oper24 ation a single statewide automated data processing and

25 information retrieval system which has the capability to
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1 perform the tasks specified in this section with the fre2 quency and in the manner required by or under this part.

3 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys4 tem required by this section shall perform such functions

5 as the Secretary may specify relating to management of

6 the State program under this part, including—

7 ‘‘(1) controlling and accounting for use of Fed8 eral, State, and local funds in carrying out the pro9 gram; and

10 ‘‘(2) maintaining the data necessary to meet

11 Federal reporting requirements under this part on a

12 timely basis.

13 ‘‘(c) CALCULATION OF PERFORMANCE INDICA14 TORS.—In order to enable the Secretary to determine the

15 incentive payments and penalty adjustments required by

16 sections 452(g) and 458, the State agency shall—

17 ‘‘(1) use the automated system—

18 ‘‘(A) to maintain the requisite data on

19 State performance with respect to paternity es20 tablishment and child support enforcement in

21 the State; and

22 ‘‘(B) to calculate the IV–D paternity es23 tablishment percentage for the State for each

24 fiscal year; and
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1 ‘‘(2) have in place systems controls to ensure

2 the completeness and reliability of, and ready access

3 to, the data described in paragraph (1)(A), and the

4 accuracy of the calculations described in paragraph

5 (1)(B).

6 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

7 State agency shall have in effect safeguards on the integ8 rity, accuracy, and completeness of, access to, and use of

9 data in the automated system required by this section,

10 which shall include the following (in addition to such other

11 safeguards as the Secretary may specify in regulations):

12 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

13 policies concerning access to data by State agency

14 personnel, and sharing of data with other persons,

15 which—

16 ‘‘(A) permit access to and use of data only

17 to the extent necessary to carry out the State

18 program under this part; and

19 ‘‘(B) specify the data which may be used

20 for particular program purposes, and the per21 sonnel permitted access to such data.

22 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

23 (such as passwords or blocking of fields) to ensure

24 strict adherence to the policies described in para25 graph (1).
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1 ‘‘(3) MONITORING OF ACCESS.—Routine mon2 itoring of access to and use of the automated sys3 tem, through methods such as audit trails and feed4 back mechanisms, to guard against and promptly

5 identify unauthorized access or use.

6 ‘‘(4) TRAINING AND INFORMATION.—Proce7 dures to ensure that all personnel (including State

8 and local agency staff and contractors) who may

9 have access to or be required to use confidential pro10 gram data are informed of applicable requirements

11 and penalties (including those in section 6103 of the

12 Internal Revenue Code of 1986), and are adequately

13 trained in security procedures.

14 ‘‘(5) PENALTIES.—Administrative penalties (up

15 to and including dismissal from employment) for un16 authorized access to, or disclosure or use of, con17 fidential data.’’.

18 (3) REGULATIONS.—The Secretary of Health

19 and Human Services shall prescribe final regulations

20 for implementation of section 454A of the Social Se21 curity Act no later than 2 years after the date of the

22 enactment of this Act.

23 (4) IMPLEMENTATION TIMETABLE.—Section

24 454(24) (42 U.S.C. 654(24)), as amended by section

25 203(a)(1) of this Act, is amended to read as follows:
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1 ‘‘(24) provide that the State will have in effect

2 an automated data processing and information re3 trieval system—

4 ‘‘(A) by October 1, 1997, which meets all

5 requirements of this part which were enacted on

6 or before the date of enactment of the Family

7 Support Act of 1988, and

8 ‘‘(B) by October 1, 1999, which meets all

9 requirements of this part enacted on or before

10 the date of the enactment of this Act, except

11 that such deadline shall be extended by 1 day

12 for each day (if any) by which the Secretary

13 fails to meet the deadline imposed by section

14 244(a)(3) of the Work First and Personal Re15 sponsibility Act of 1996;’’.

16 (b) SPECIAL FEDERAL MATCHING RATE FOR DE17 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

18 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

19 655(a)) is amended—

20 (A) in paragraph (1)(B)—

21 (i) by striking ‘‘90 percent’’ and in22 serting ‘‘the percent specified in paragraph

23 (3)’’;

24 (ii) by striking ‘‘so much of’’; and
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1 (iii) by striking ‘‘which the Secretary’’

2 and all that follows and inserting ‘‘, and’’;

3 and

4 (B) by adding at the end the following new

5 paragraph:

6 ‘‘(3)(A) Subject to the limitation in subpara7 graph (C), the Secretary shall pay to each State, for

8 each quarter in fiscal years 1996 and 1997, 90 per9 cent of so much of the State expenditures described

10 in paragraph (1)(B) as the Secretary finds are for

11 a system meeting the requirements specified in sec12 tion 454(16) (as in effect on September 30, 1995),

13 but limited to the amount approved for States in the

14 advance planning documents of such States submit15 ted on or before May 1, 1995.

16 ‘‘(B) Subject to the limitation in subparagraph

17 (C), the Secretary shall pay to each State, for each

18 quarter in fiscal years 1996 through 2001, 80 per19 cent of so much of the State expenditures described

20 in paragraph (1)(B) (other than expenditures with

21 respect to which payment is made under subpara22 graph (A)) as the Secretary finds are for a system

23 meeting the requirements of sections 454(16) and

24 454A.
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1 ‘‘(C) LIMITATION ON PAYMENTS UNDER TEM2 PORARY SPECIAL FEDERAL MATCHING RATE.—

3 ‘‘(i) IN GENERAL.—The Secretary of

4 Health and Human Services may not pay more

5 than $400,000,000 in the aggregate under this

6 paragraph for fiscal years 1996 through 2001,

7 which is the maximum amount to which States

8 may be entitled under this paragraph for such

9 fiscal period.

10 ‘‘(ii) ALLOCATION OF LIMITATION AMONG

11 STATES.—The total amount payable to a State

12 under this paragraph for fiscal years 1996

13 through 2001 shall not exceed the limitation de14 termined for the State by the Secretary of

15 Health and Human Services in regulations.

16 ‘‘(iii) ALLOCATION FORMULA.—The regula17 tions referred to in clause (ii) shall prescribe a

18 formula for allocating the amount specified in

19 clause (i) among States with plans approved

20 under part D of title IV of the Social Security

21 Act, which shall take into account—

22 ‘‘(I) the relative size of State case23 loads under such part; and
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1 ‘‘(II) the level of automation needed

2 to meet the automated data processing re3 quirements of such part.’’.

4 (c) Subsection (b) of this section is repealed effective

5 September 30, 2001.

6 (d) CONFORMING AMENDMENT.—Section 123(c) of

7 the Family Support Act of 1988 (102 Stat. 2352; Public

8 Law 100–485) is amended by striking ‘‘1995’’ and insert9 ing ‘‘2001’’.

10 SEC. 245. TECHNICAL ASSISTANCE.

11 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

12 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE13 CIAL PROJECTS OF REGIONAL OR NATIONAL PROGRAMS,

14 AND SPECIAL PROJECTS OF REGIONAL OR NATIONAL

15 SIGNIFICANCE.—Section 452 (42 U.S.C. 652) is amended

16 by adding at the end the following new subsection:

17 ‘‘(j) From the appropriation account providing funds

18 for payments to States under section 455(a) for a fiscal

19 year, the Secretary may use an amount not to exceed 0.5

20 percent of reimbursements by States to the Federal Gov21 ernment pursuant to section 457(a) during the preceding

22 fiscal year (as determined on the basis of the most recent

23 reliable data available to the Secretary as of the end of

24 the 3rd calendar quarter following the end of such preced-
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1 ing fiscal year), to cover costs incurred by the Secretary

2 for—

3 ‘‘(1) information dissemination and technical

4 assistance to States, training of State and Federal

5 staff, staffing studies, and related activities needed

6 to improve programs under this part (including tech7 nical assistance concerning State automated systems

8 required by this part); and

9 ‘‘(2) research, demonstration, and special

10 projects of regional or national significance relating

11 to the operation of State programs under this

12 part.’’.

13 (b) OPERATION OF FEDERAL PARENT LOCATOR

14 SERVICE.—Section 453 (42 U.S.C. 653), as amended by

15 section 216 of this Act, is amended by adding at the end

16 the following new subsection:

17 ‘‘(o) RECOVERY OF COSTS.—From the appropriation

18 account providing funds for payments to States for under

19 section 455(a), the Secretary may use an amount not to

20 exceed 2 percent of the total reimbursements by States

21 to the Federal Government pursuant to section 457(a)

22 during the preceding fiscal year (as determined on the

23 basis of the most recent reliable data available to the Sec24 retary as of the end of the 3rd calendar quarter following

25 the end of such preceding fiscal year), to cover costs in-
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1 curred by the Secretary for operation of the Federal Par2 ent Locator Service under this section, to the extent such

3 costs are not recovered through user fees.’’.

4 SEC. 246. REPORTS AND DATA COLLECTION BY THE SEC5 RETARY.

6 (a) ANNUAL REPORT TO CONGRESS.—

7 (1) Section 452(a)(10)(A) (42 U.S.C.

8 652(a)(10)(A)) is amended—

9 (A) by striking ‘‘this part;’’ and inserting

10 ‘‘this part, including—’’; and

11 (B) by adding at the end the following new

12 clauses:

13 ‘‘(i) the total amount of child support

14 payments collected as a result of services

15 furnished during the fiscal year to individ16 uals receiving services under this part;

17 ‘‘(ii) the cost to the States and to the

18 Federal Government of so furnishing the

19 services; and

20 ‘‘(iii) the number of cases involving

21 families—

22 ‘‘(I) who became ineligible for as23 sistance under State programs funded

24 under part A during a month in the

25 fiscal year; and
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1 ‘‘(II) with respect to whom a

2 child support payment was received in

3 the month;’’.

4 (2) Section 452(a)(10)(C) (42 U.S.C.

5 652(a)(10)(C)) is amended—

6 (A) in the matter preceding clause (i)—

7 (i) by striking ‘‘with the data required

8 under each clause being separately stated

9 for cases’’ and inserting ‘‘separately stated

10 for (1) cases’’;

11 (ii) by striking ‘‘cases where the child

12 was formerly receiving’’ and inserting ‘‘or

13 formerly received’’;

14 (iii) by inserting ‘‘or 1912’’ after

15 ‘‘471(a)(17)’’; and

16 (iv) by inserting ‘‘(2)’’ before ‘‘all

17 other’’;

18 (B) in each of clauses (i) and (ii), by strik19 ing ‘‘, and the total amount of such obliga20 tions’’;

21 (C) in clause (iii), by striking ‘‘described

22 in’’ and all that follows and inserting ‘‘in which

23 support was collected during the fiscal year;’’;

24 (D) by striking clause (iv); and
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1 (E) by redesignating clause (v) as clause

2 (vii), and inserting after clause (iii) the follow3 ing new clauses:

4 ‘‘(iv) the total amount of support col5 lected during such fiscal year and distrib6 uted as current support;

7 ‘‘(v) the total amount of support col8 lected during such fiscal year and distrib9 uted as arrearages;

10 ‘‘(vi) the total amount of support due

11 and unpaid for all fiscal years; and’’.

12 (3) Section 452(a)(10)(G) (42 U.S.C.

13 652(a)(10)(G)) is amended by striking ‘‘on the use

14 of Federal courts and’’.

15 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

16 is amended—

17 (A) in subparagraph (H), by striking

18 ‘‘and’’;

19 (B) in subparagraph (I), by striking the

20 period and inserting ‘‘; and’’; and

21 (C) by inserting after subparagraph (I) the

22 following new subparagraph:

23 ‘‘(J) compliance, by State, with the stand24 ards established pursuant to subsections (h)

25 and (i).’’.
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1 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10))

2 is amended by striking all that follows subparagraph

3 (J), as added by paragraph (4).

4 (b) EFFECTIVE DATE.—The amendments made by

5 subsection (a) are effective with respect to fiscal year 1996

6 and succeeding fiscal years.

7 Subtitle F—Establishment and Modification

8 of Support Orders

9 SEC. 251. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST10 MENT OF CHILD SUPPORT ORDERS.

11 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend12 ed to read as follows:

13 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

14 ORDERS UPON REQUEST.—Procedures under which

15 the State shall review and adjust each support order

16 being enforced under this part if there is an assign17 ment under part A or upon the request of either

18 parent. Such procedures shall provide the following:

19 ‘‘(A) IN GENERAL.—

20 ‘‘(i) 3-YEAR CYCLE.—Except as pro21 vided in subparagraphs (B) and (C), the

22 State shall review and, as appropriate, ad23 just the support order every 3 years, tak24 ing into account the best interests of the

25 child involved.
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1 ‘‘(ii) METHODS OF ADJUSTMENT.—

2 The State may elect to review and, if ap3 propriate, adjust an order pursuant to

4 clause (i) by—

5 ‘‘(I) reviewing and, if appro6 priate, adjusting the order in accord7 ance with the guidelines established

8 pursuant to section 467(a) if the

9 amount of the child support award

10 under the order differs from the

11 amount that would be awarded in ac12 cordance with the guidelines; or

13 ‘‘(II) applying a cost-of-living ad14 justment to the order in accordance

15 with a formula developed by the State

16 and permit either party to contest the

17 adjustment, within 30 days after the

18 date of the notice of the adjustment,

19 by making a request for review and, if

20 appropriate, adjustment of the order

21 in accordance with the child support

22 guidelines established pursuant to sec23 tion 467(a).

24 ‘‘(iii) NO PROOF OF CHANGE IN CIR25 CUMSTANCES NECESSARY.—Any adjust-
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1 ment under this subparagraph (A) shall be

2 made without a requirement for proof or

3 showing of a change in circumstances.

4 ‘‘(B) AUTOMATED METHOD.—The State

5 may use automated methods (including auto6 mated comparisons with wage or State income

7 tax data) to identify orders eligible for review,

8 conduct the review, identify orders eligible for

9 adjustment, and apply the appropriate adjust10 ment to the orders eligible for adjustment

11 under the threshold established by the State.

12 ‘‘(C) REQUEST UPON SUBSTANTIAL

13 CHANGE IN CIRCUMSTANCES.—The State shall,

14 at the request of either parent subject to such

15 an order or of any State child support enforce16 ment agency, review and, if appropriate, adjust

17 the order in accordance with the guidelines es18 tablished pursuant to section 467(a) based

19 upon a substantial change in the circumstances

20 of either parent.

21 ‘‘(D) NOTICE OF RIGHT TO REVIEW.—The

22 State shall provide notice not less than once

23 every 3 years to the parents subject to such an

24 order informing them of their right to request

25 the State to review and, if appropriate, adjust
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1 the order pursuant to this paragraph. The no2 tice may be included in the order.’’.

3 SEC. 252. FURNISHING CONSUMER REPORTS FOR CERTAIN

4 PURPOSES RELATING TO CHILD SUPPORT.

5 Section 604 of the Fair Credit Reporting Act (15

6 U.S.C. 1681b) is amended by adding at the end the follow7 ing new paragraphs:

8 ‘‘(4) In response to a request by the head of a

9 State or local child support enforcement agency (or

10 a State or local government official authorized by

11 the head of such an agency), if the person making

12 the request certifies to the consumer reporting agen13 cy that—

14 ‘‘(A) the consumer report is needed for the

15 purpose of establishing an individual’s capacity

16 to make child support payments or determining

17 the appropriate level of such payments;

18 ‘‘(B) the paternity of the consumer for the

19 child to which the obligation relates has been

20 established or acknowledged by the consumer in

21 accordance with State laws under which the ob22 ligation arises (if required by those laws);

23 ‘‘(C) the person has provided at least 10

24 days’ prior notice to the consumer whose report

25 is requested, by certified or registered mail to
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1 the last known address of the consumer, that

2 the report will be requested; and

3 ‘‘(D) the consumer report will be kept con4 fidential, will be used solely for a purpose de5 scribed in subparagraph (A), and will not be

6 used in connection with any other civil, admin7 istrative, or criminal proceeding, or for any

8 other purpose.

9 ‘‘(5) To an agency administering a State plan

10 under section 454 of the Social Security Act (42

11 U.S.C. 654) for use to set an initial or modified

12 child support award.’’.

13 SEC. 253. NONLIABILITY FOR FINANCIAL INSTITUTIONS

14 PROVIDING FINANCIAL RECORDS TO STATE

15 CHILD SUPPORT ENFORCEMENT AGENCIES

16 IN CHILD SUPPORT CASES.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of Federal or State law, a financial institution shall

19 not be liable under any Federal or State law to any person

20 for disclosing any financial record of an individual to a

21 State child support enforcement agency attempting to es22 tablish, modify, or enforce a child support obligation of

23 such individual.

24 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

25 RECORD OBTAINED BY STATE CHILD SUPPORT EN-
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1 FORCEMENT AGENCY.—A State child support enforcement

2 agency which obtains a financial record of an individual

3 from a financial institution pursuant to subsection (a)

4 may disclose such financial record only for the purpose

5 of establishing, modifying, or enforcing a child support ob6 ligation of that individual.

7 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO8 SURE.—

9 (1) DISCLOSURE BY STATE OFFICER OR EM10 PLOYEE.—If any person knowingly or negligently

11 discloses a financial record of an individual in viola12 tion of subsection (b), such individual may bring a

13 civil action for damages against such person in a

14 district court of the United States.

15 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO16 NEOUS INTERPRETATION.—No liability shall arise

17 under this subsection with respect to any disclosure

18 which results from a good faith, but erroneous, in19 terpretation of subsection (b).

20 (3) DAMAGES.—In any action brought under

21 paragraph (1), upon a finding of liability on the part

22 of the defendant, the defendant shall be liable to the

23 plaintiff in an amount equal to the sum of—

24 (A) the greater of—
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1 (i) $1,000 for each act of unauthor2 ized disclosure of a financial record with

3 respect to which such defendant is found

4 liable; or

5 (ii) the sum of—

6 (I) the actual damages sustained

7 by the plaintiff as a result of such un8 authorized disclosure; plus

9 (II) in the case of a willful disclo10 sure or a disclosure which is the re11 sult of gross negligence, punitive dam12 ages; plus

13 (B) the costs (including attorney’s fees) of

14 the action.

15 (d) DEFINITIONS.—For purposes of this section—

16 (1) FINANCIAL INSTITUTION.—The term ‘‘fi17 nancial institution’’ means—

18 (A) a depository institution, as defined in

19 section 3(c) of the Federal Deposit Insurance

20 Act (12 U.S.C. 1813(c));

21 (B) an institution-affiliated party, as de22 fined in section 3(u) of such Act (12 U.S.C.

23 1813(v));

24 (C) any Federal credit union or State cred25 it union, as defined in section 101 of the Fed-
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1 eral Credit Union Act (12 U.S.C. 1752), includ2 ing an institution-affiliated party of such a

3 credit union, as defined in section 206(r) of

4 such Act (12 U.S.C. 1786(r)); and

5 (D) any benefit association, insurance com6 pany, safe deposit company, money-market mu7 tual fund, or similar entity authorized to do

8 business in the State.

9 (2) FINANCIAL RECORD.—The term ‘‘financial

10 record’’ has the meaning given such term in section

11 1101 of the Right to Financial Privacy Act of 1978

12 (12 U.S.C. 3401).

13 (3) STATE CHILD SUPPORT ENFORCEMENT

14 AGENCY.—The term ‘‘State child support enforce15 ment agency’’ means a State agency which admin16 isters a State program for establishing and enforcing

17 child support obligations.

18 Subtitle G—Enforcement of Support Orders

19 SEC. 261. INTERNAL REVENUE SERVICE COLLECTION OF

20 ARREARAGES.

21 (a) COLLECTION OF FEES.—Section 6305(a) of the

22 Internal Revenue Code of 1986 (relating to collection of

23 certain liability) is amended—

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

25 (3);
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1 (2) by striking the period at the end of para2 graph (4) and inserting ‘‘, and’’;

3 (3) by adding at the end the following new

4 paragraph:

5 ‘‘(5) no additional fee may be assessed for ad6 justments to an amount previously certified pursu7 ant to such section 452(b) with respect to the same

8 obligor.’’; and

9 (4) by striking ‘‘Secretary of Health, Edu10 cation, and Welfare’’ each place it appears and in11 serting ‘‘Secretary of Health and Human Services’’.

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

13 this section become effective October 1, 1997.

14 SEC. 262. AUTHORITY TO COLLECT SUPPORT FROM FED15 ERAL EMPLOYEES.

16 (a) CONSOLIDATION AND STREAMLINING OF AU17 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

18 read as follows:

19 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

20 WITHHOLDING, GARNISHMENT, AND SIMILAR

21 PROCEEDINGS FOR ENFORCEMENT OF CHILD

22 SUPPORT AND ALIMONY OBLIGATIONS.

23 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not24 withstanding any other provision of law (including section

25 207 of this Act and section 5301 of title 38, United States
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1 Code), effective January 1, 1975, moneys (the entitlement

2 to which is based upon remuneration for employment) due

3 from, or payable by, the United States or the District of

4 Columbia (including any agency, subdivision, or instru5 mentality thereof) to any individual, including members

6 of the Armed Forces of the United States, shall be subject,

7 in like manner and to the same extent as if the United

8 States or the District of Columbia were a private person,

9 to withholding in accordance with State law enacted pur10 suant to subsections (a)(1) and (b) of section 466 and reg11 ulations of the Secretary under such subsections, and to

12 any other legal process brought, by a State agency admin13 istering a program under a State plan approved under this

14 part or by an individual obligee, to enforce the legal obliga15 tion of the individual to provide child support or alimony.

16 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

17 PRIVATE PERSON.—With respect to notice to withhold in18 come pursuant to subsection (a)(1) or (b) of section 466,

19 or any other order or process to enforce support obliga20 tions against an individual (if the order or process con21 tains or is accompanied by sufficient data to permit

22 prompt identification of the individual and the moneys in23 volved), each governmental entity specified in subsection

24 (a) shall be subject to the same requirements as would
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1 apply if the entity were a private person, except as other2 wise provided in this section.

3 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

4 OR PROCESS.—

5 ‘‘(1) DESIGNATION OF AGENT.—The head of

6 each agency subject to this section shall—

7 ‘‘(A) designate an agent or agents to re8 ceive orders and accept service of process in

9 matters relating to child support or alimony;

10 and

11 ‘‘(B) annually publish in the Federal Reg12 ister the designation of the agent or agents,

13 identified by title or position, mailing address,

14 and telephone number.

15 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

16 agent designated pursuant to paragraph (1) of this

17 subsection receives notice pursuant to State proce18 dures in effect pursuant to subsection (a)(1) or (b)

19 of section 466, or is effectively served with any

20 order, process, or interrogatory, with respect to an

21 individual’s child support or alimony payment obli22 gations, the agent shall—

23 ‘‘(A) as soon as possible (but not later

24 than 15 days) thereafter, send written notice of

25 the notice or service (together with a copy of
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1 the notice or service) to the individual at the

2 duty station or last-known home address of the

3 individual;

4 ‘‘(B) within 30 days (or such longer period

5 as may be prescribed in applicable State law)

6 after receipt of a notice pursuant to such State

7 procedures, comply with all applicable provi8 sions of section 466; and

9 ‘‘(C) within 30 days (or such longer period

10 as may be prescribed by applicable State law)

11 after effective service of any other such order,

12 process, or interrogatory, respond to the order,

13 process, or interrogatory.

14 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

15 specified in subsection (a) receives notice or is served with

16 process, as provided in this section, concerning amounts

17 owed by an individual to more than 1 person—

18 ‘‘(1) support collection under section 466(b)

19 must be given priority over any other process, as

20 provided in section 466(b)(7);

21 ‘‘(2) allocation of moneys due or payable to an

22 individual among claimants under section 466(b)

23 shall be governed by section 466(b) and the regula24 tions prescribed under such section; and
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1 ‘‘(3) such moneys as remain after compliance

2 with paragraphs (1) and (2) shall be available to

3 satisfy any other such processes on a first-come,

4 first-served basis, with any such process being satis5 fied out of such moneys as remain after the satisfac6 tion of all such processes which have been previously

7 served.

8 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

9 governmental entity that is affected by legal process

10 served for the enforcement of an individual’s child support

11 or alimony payment obligations shall not be required to

12 vary its normal pay and disbursement cycle in order to

13 comply with the legal process.

14 ‘‘(f) RELIEF FROM LIABILITY.—

15 ‘‘(1) Neither the United States, nor the govern16 ment of the District of Columbia, nor any disbursing

17 officer shall be liable with respect to any payment

18 made from moneys due or payable from the United

19 States to any individual pursuant to legal process

20 regular on its face, if the payment is made in ac21 cordance with this section and the regulations issued

22 to carry out this section.

23 ‘‘(2) No Federal employee whose duties include

24 taking actions necessary to comply with the require25 ments of subsection (a) with regard to any individ-
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1 ual shall be subject under any law to any discipli2 nary action or civil or criminal liability or penalty

3 for, or on account of, any disclosure of information

4 made by the employee in connection with the carry5 ing out of such actions.

6 ‘‘(g) REGULATIONS.—Authority to promulgate regu7 lations for the implementation of this section shall, insofar

8 as this section applies to moneys due from (or payable

9 by)—

10 ‘‘(1) the United States (other than the legisla11 tive or judicial branches of the Federal Government)

12 or the government of the District of Columbia, be

13 vested in the President (or the designee of the Presi14 dent);

15 ‘‘(2) the legislative branch of the Federal Gov16 ernment, be vested jointly in the President pro tem17 pore of the Senate and the Speaker of the House of

18 Representatives (or their designees), and

19 ‘‘(3) the judicial branch of the Federal Govern20 ment, be vested in the Chief Justice of the United

21 States (or the designee of the Chief Justice).

22 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

24 moneys paid or payable to an individual which are
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1 considered to be based upon remuneration for em2 ployment, for purposes of this section—

3 ‘‘(A) consist of—

4 ‘‘(i) compensation paid or payable for

5 personal services of the individual, whether

6 the compensation is denominated as wages,

7 salary, commission, bonus, pay, allowances,

8 or otherwise (including severance pay, sick

9 pay, and incentive pay);

10 ‘‘(ii) periodic benefits (including a

11 periodic benefit as defined in section

12 228(h)(3)) or other payments—

13 ‘‘(I) under the insurance system

14 established by title II;

15 ‘‘(II) under any other system or

16 fund established by the United States

17 which provides for the payment of

18 pensions, retirement or retired pay,

19 annuities, dependents’ or survivors’

20 benefits, or similar amounts payable

21 on account of personal services per22 formed by the individual or any other

23 individual;

24 ‘‘(III) as compensation for death

25 under any Federal program;
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1 ‘‘(IV) under any Federal pro2 gram established to provide ‘black

3 lung’ benefits; or

4 ‘‘(V) by the Secretary of Veter5 ans Affairs as compensation for a

6 service-connected disability paid by

7 the Secretary to a former member of

8 the Armed Forces who is in receipt of

9 retired or retainer pay if the former

10 member has waived a portion of the

11 retired or retainer pay in order to re12 ceive such compensation; and

13 ‘‘(iii) worker’s compensation benefits

14 paid under Federal or State law but

15 ‘‘(B) do not include any payment—

16 ‘‘(i) by way of reimbursement or oth17 erwise, to defray expenses incurred by the

18 individual in carrying out duties associated

19 with the employment of the individual; or

20 ‘‘(ii) as allowances for members of the

21 uniformed services payable pursuant to

22 chapter 7 of title 37, United States Code,

23 as prescribed by the Secretaries concerned

24 (defined by section 101(5) of such title) as
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1 necessary for the efficient performance of

2 duty.

3 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter4 mining the amount of any moneys due from, or pay5 able by, the United States to any individual, there

6 shall be excluded amounts which—

7 ‘‘(A) are owned by the individual to the

8 United States;

9 ‘‘(B) are required by law to be, and are,

10 deducted from the remuneration or other pay11 ment involved, including Federal employment

12 taxes, and fines and forfeitures ordered by

13 court-martial;

14 ‘‘(C) are properly withheld for Federal,

15 State, or local income tax purposes, if the with16 holding of the amounts is authorized or re17 quired by law and if amounts withheld are not

18 greater than would be the case if the individual

19 claimed all dependents to which he was entitled

20 (the withholding or additional amounts pursu21 ant to section 3402(i) of the Internal Revenue

22 Code of 1986 may be permitted only when the

23 individual presents evidence of a tax obligation

24 which supports the additional withholding);
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1 ‘‘(D) are deducted as health insurance pre2 miums;

3 ‘‘(E) are deducted as normal retirement

4 contributions (not including amounts deducted

5 for supplementary coverage); or

6 ‘‘(F) are deducted as normal life insurance

7 premiums from salary or other remuneration

8 for employment (not including amounts de9 ducted for supplementary coverage).

10 ‘‘(i) DEFINTIONS.—For purposes of this section—

11 ‘‘(1) UNITED STATES.—The term ‘United

12 States’ includes any department, agency, or instru13 mentality of the legislative, judicial, or executive

14 branch of the Federal Government, the United

15 States Postal Service, the Postal Rate Commission,

16 any Federal corporation created by an Act of Con17 gress that is wholly owned by the Federal Govern18 ment, and the governments of the territories and

19 possessions of the United States.

20 ‘‘(2) CHILD SUPPORT.—The term ‘child sup21 port’, when used in reference to the legal obligations

22 of an individual to provide such support, means

23 amounts required to be paid under a judgment, de24 cree, or order, whether temporary, final, or subject

25 to modification, issued by a court or an administra-
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1 tive agency of competent jurisdiction, for the sup2 port and maintenance of a child, including a child

3 who has attained the age of majority under the law

4 of the issuing State, or a child and the parent with

5 whom the child is living, which provides for mone6 tary support, health care, arrearages or reimburse7 ment, and which may include other related costs and

8 fees, interest and penalties, income withholding, at9 torney’s fees, and other relief.

10 ‘‘(3) ALIMONY.—

11 ‘‘(A) IN GENERAL.—The term ‘alimony’,

12 when used in reference to the legal obligations

13 of an individual to provide the same, means

14 periodic payments of funds for the support and

15 maintenance of the spouse (or former spouse)

16 of the individual, and (subject to and in accord17 ance with State law) includes separate mainte18 nance, alimony pendente lite, maintenance, and

19 spousal support, and includes attorney’s fees,

20 interest, and court costs when and to the extent

21 that the same are expressly made recoverable as

22 such pursuant to a decree, order, or judgment

23 issued in accordance with applicable State law

24 by a court of competent jurisdiction.
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1 ‘‘(B) EXCEPTIONS.—Such term does not

2 include—

3 ‘‘(i) any child support; or

4 ‘‘(ii) any payment or transfer of prop5 erty or its value by an individual to the

6 spouse or a former spouse of the individual

7 in compliance with any community prop8 erty settlement, equitable distribution of

9 property, or other division of property be10 tween spouses or former spouses.

11 ‘‘(4) PRIVATE PERSON.—The term ‘private per12 son’ means a person who does not have sovereign or

13 other special immunity or privilege which causes the

14 person not to be subject to legal process.

15 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc16 ess’ means any writ, order, summons, or other simi17 lar process in the nature of garnishment—

18 ‘‘(A) which is issued by—

19 ‘‘(i) a court or an administrative

20 agency of competent jurisdiction in any

21 State, territory, or possession of the Unit22 ed States;

23 ‘‘(ii) a court or an administrative

24 agency of competent jurisdiction in any

25 foreign country with which the United
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1 States has entered into an agreement

2 which requires the United States to honor

3 the process; or

4 ‘‘(iii) an authorized official pursuant

5 to an order of such a court or an adminis6 trative agency of competent jurisdiction or

7 pursuant to State or local law; and

8 ‘‘(B) which is directed to, and the purpose

9 of which is to compel, a governmental entity

10 which holds moneys which are otherwise pay11 able to an individual to make a payment from

12 the moneys to another party in order to satisfy

13 a legal obligation of the individual to provide

14 child support or make alimony payments.’’.

15 (b) CONFORMING AMENDMENTS.—

16 (1) TO PART D OF TITLE IV.—Sections 461 and

17 462 (42 U.S.C. 661 and 662) are repealed.

18 (2) TO TITLE 5, UNITED STATES CODE.—Sec19 tion 5520a of title 5, United States Code, is amend20 ed, in subsections (h)(2) and (i), by striking ‘‘sec21 tions 459, 461, and 462 of the Social Security Act

22 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec23 tion 459 of the Social Security Act (42 U.S.C.

24 659)’’.

25 (c) MILITARY RETIRED AND RETAINER PAY.—
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1 (1) DEFINITION OF COURT.—Section

2 1408(a)(1) of title 10, United States Code, is

3 amended—

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

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

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

8 (C) by adding after subparagraph (C) the

9 following: new subparagraph:

10 ‘‘(D) any administrative or judicial tribu11 nal of a State competent to enter orders for

12 support or maintenance (including a State

13 agency administering a program under a State

14 plan approved under part D of title IV of the

15 Social Security Act), and, for purposes of this

16 subparagraph, the term ‘State’ includes the

17 District of Columbia, the Commonwealth of

18 Puerto Rico, the Virgin Islands, Guam, and

19 American Samoa.’’.

20 (2) DEFINITION OF COURT ORDER.—Section

21 1408(a)(2) of such title is amended—

22 (A) by inserting ‘‘or a support order, as

23 defined in section 453(p) of the Social Security

24 Act (42 U.S.C. 653(p)),’’ before ‘‘which—’’;
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1 (B) in subparagraph (B)(i), by striking

2 ‘‘(as defined in section 462(b) of the Social Se3 curity Act (42 U.S.C. 662(b)))’’ and inserting

4 ‘‘(as defined in section 459(i)(2) of the Social

5 Security Act (42 U.S.C. 662(i)(2)))’’; and

6 (C) in subparagraph (B)(ii), by striking

7 ‘‘(as defined in section 462(c) of the Social Se8 curity Act (42 U.S.C. 662(c)))’’ and inserting

9 ‘‘(as defined in section 459(i)(3) of the Social

10 Security Act (42 U.S.C. 662(i)(3)))’’.

11 (3) PUBLIC PAYEE.—Section 1408(d) of such

12 title is amended—

13 (A) in the heading, by inserting ‘‘(OR

14 FOR BENEFIT OF)’’ before ‘‘SPOUSE OR’’;

15 and

16 (B) in paragraph (1), in the 1st sentence,

17 by inserting ‘‘(or for the benefit of such spouse

18 or former spouse to a State disbursement unit

19 established pursuant to section 454B of the So20 cial Security Act or other public payee des21 ignated by a State, in accordance with part D

22 of title IV of the Social Security Act, as di23 rected by court order, or as otherwise directed

24 in accordance with such part D)’’ before ‘‘in an

25 amount sufficient’’.
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1 (4) RELATIONSHIP TO PART D OF TITLE IV.—

2 Section 1408 of such title is amended by adding at

3 the end the following new subsection:

4 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

5 involving an order providing for payment of child support

6 (as defined in section 459(i)(2) of the Social Security Act)

7 by a member who has never been married to the other

8 parent of the child, the provisions of this section shall not

9 apply, and the case shall be subject to the provisions of

10 section 459 of such Act.’’.

11 (d) EFFECTIVE DATE.—The amendments made by

12 this section become effective 6 months after the date of

13 the enactment of this Act.

14 SEC. 263. ENFORCEMENT OF CHILD SUPPORT OBLIGA15 TIONS OF MEMBERS OF THE ARMED FORCES.

16 (a) AVAILABILITY OF LOCATOR INFORMATION.—

17 (1) MAINTENANCE OF ADDRESS INFORMA18 TION.—The Secretary of Defense shall establish a

19 centralized personnel locator service that includes

20 the address of each member of the Armed Forces

21 under the jurisdiction of the Secretary. Upon re22 quest of the Secretary of Transportation, addresses

23 for members of the Coast Guard shall be included in

24 the centralized personnel locator service.

25 (2) TYPE OF ADDRESS.—
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1 (A) RESIDENTIAL ADDRESS.—Except as

2 provided in subparagraph (B), the address for

3 a member of the Armed Forces shown in the lo4 cator service shall be the residential address of

5 that member.

6 (B) DUTY ADDRESS.—The address for a

7 member of the Armed Forces shown in the loca8 tor service shall be the duty address of that

9 member in the case of a member—

10 (i) who is permanently assigned over11 seas, to a vessel, or to a routinely

12 deployable unit; or

13 (ii) with respect to whom the Sec14 retary concerned makes a determination

15 that the member’s residential address

16 should not be disclosed due to national se17 curity or safety concerns.

18 (3) UPDATING OF LOCATOR INFORMATION.—

19 Within 30 days after a member listed in the locator

20 service establishes a new residential address (or a

21 new duty address, in the case of a member covered

22 by paragraph (2)(B)), the Secretary concerned shall

23 update the locator service to indicate the new ad24 dress of the member.
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1 (4) AVAILABILITY OF INFORMATION.—The Sec2 retary of Defense shall make information regarding

3 the address of a member of the Armed Forces listed

4 in the locator service available, on request, to the

5 Federal Parent Locator Service established under

6 section 453 of the Social Security Act.

7 (b) FACILITATING GRANTING OF LEAVE FOR AT8 TENDANCE AT HEARINGS.—

9 (1) REGULATIONS.—The Secretary of each

10 military department, and the Secretary of transpor11 tation with respect to the Coast Guard when it is

12 not operating as a service in the Navy, shall pre13 scribe regulations to facilitate the granting of leave

14 to a member of the Armed Forces under the juris15 diction of that Secretary in a case in which—

16 (A) the leave is needed for the member to

17 attend a hearing described in paragraph (2);

18 (B) the member is not serving in or with

19 a unit deployed in a contingency operation (as

20 defined in section 101 of title 10, United States

21 Code); and

22 (C) the exigencies of military service (as

23 determined by the Secretary concerned) do not

24 otherwise require that such leave not be grant25 ed.
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1 (2) COVERED HEARINGS.—Paragraph (1) ap2 plies to a hearing that is conducted by a court or

3 pursuant to an administrative process established

4 under State law, in connection with a civil action—

5 (A) to determine whether a member of the

6 Armed Forces is a natural parent of a child; or

7 (B) to determine an obligation of a mem8 ber of the Armed Forces to provide child sup9 port.

10 (3) DEFINITIONS.—For purposes of this sub11 section—

12 (A) The term ‘‘court’’ has the meaning

13 given that term in section 1408(a) of title 10,

14 United States Code.

15 (B) the term ‘‘child support’’ has the

16 meaning given such term in section 459(i) of

17 the Social Security Act (42 U.S.C. 659(i)).

18 (c) PAYMENT OF MILITARY RETIRED PAY IN COM19 PLIANCE WITH CHILD SUPPORT ORDERS.—

20 (1) DATE OF CERTIFICATION OF COURT

21 ORDER.—Section 1408 of title 10, United States

22 Code, as amended by section 262(c)(4) of this Act,

23 is amended—

24 (A) by redesignating subsections (i) and (j)

25 as subsections (j) and (k), respectively; and
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1 ‘‘(B) by inserting after subsection (h) the

2 following new subsection:

3 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

4 the date of a certification of the authenticity or complete5 ness of a copy of a court order for child support received

6 by the Secretary concerned for the purposes of this section

7 be recent in relation to the date of receipt by the Sec8 retary.’’

9 (2) PAYMENTS CONSISTENT WITH ASSIGNMENT

10 OF RIGHTS TO STATES.—Section 1408(d)(1) of such

11 title is amended by inserting after the 1st sentence

12 the following new sentence: ‘‘In the case of a spouse

13 or former spouse who, pursuant to section 402(a)(2)

14 of the Social Security Act (42 U.S.C. 602(a)(2)), as15 signs to a State the rights of the spouse or former

16 spouse to receive support, the Secretary concerned

17 may make the child support payments referred to

18 in the preceding sentence to that State in amounts

19 consistent with that assignment of rights.’’.

20 (3) ARREARAGES OWED BY MEMBERS OF THE

21 UNIFORMED SERVICES.—Section 1408(d) of such

22 title is amended by adding at the end the following

23 new paragraph:

24 ‘‘(6) In the case of a court order for which ef25 fective service is made on the Secretary concerned
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1 on or after the date of the enactment of this para2 graph and which provides for payments from the

3 disposable retired pay of a member to satisfy the

4 amount of child support set forth in the order, the

5 authority provided in paragraph (1) to make pay6 ments from the disposable retired pay of a member

7 to satisfy the amount of child support set forth in

8 a court order shall apply to payment of any amount

9 of child support arrearages set forth in that order as

10 well as to amounts of child support that currently

11 become due.’’.

12 (4) PAYROLL DEDUCTIONS.—The Secretary of

13 Defense shall begin payroll deductions within 30

14 days after receiving notice of withholding, or for the

15 1st pay period that begins after such 30-day period.

16 SEC. 264. VOIDING OF FRAUDULENT TRANSFERS.

17 Section 466 (42 U.S.C. 666), as amended by section

18 221 of this Act, is amended by adding at the end the fol19 lowing new subsection:

20 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

21 order to satisfy section 454(20)(A), each State must have

22 in effect—

23 ‘‘(1)(A) the Uniform Fraudulent Conveyance

24 Act of 1981;
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1 ‘‘(B) the Uniform Fraudulent Transfer Act of

2 1984; or

3 ‘‘(C) another law, specifying indicia or fraud

4 which create a prima facie case that a debtor trans5 ferred income or property to avoid payment to a

6 child support creditor, which the Secretary finds af7 fords comparable rights to child support creditors;

8 and

9 ‘‘(2) procedures under which, in any case in

10 which the State knows of a transfer by a child sup11 port debtor with respect to which such a prima facie

12 case is established, the State must—

13 ‘‘(A) seek to void such transfer; or

14 ‘‘(B) obtain a settlement in the best inter15 ests of the child support creditor.’’.

16 SEC. 265. WORK REQUIREMENT FOR PERSONS OWING

17 PAST-DUE CHILD SUPPORT.

18 (a) IN GENERAL.—Section 466(a) of the Social Secu19 rity Act (42 U.S.C. 666(a)), as amended by sections 215,

20 217(a), and 223 of this Act, is amended by adding at the

21 end the following new paragraph:

22 ‘‘(15) PROCEDURES TO ENSURE THAT PERSONS

23 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

24 FOR PAYMENT OF SUCH SUPPORT.—
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1 ‘‘(A) IN GENERAL.—Procedures under

2 which the State has the authority, in any case

3 in which an individual owes past-due support

4 with respect to a child receiving assistance

5 under a State program funded under part A, to

6 seek a court order that requires the individual

7 to—

8 ‘‘(i) pay such support in accordance

9 with a plan approved by the court, or, at

10 the option of the State, a plan approved by

11 the State agency administering the State

12 program under this part; or

13 ‘‘(ii) if the individual is subject to

14 such a plan and is not incapacitated, par15 ticipate in such work activities (as defined

16 in section 407(d)) as the court, or, at the

17 option of the State, the State agency ad18 ministering the State program under this

19 part, deems appropriate.

20 ‘‘(B) PAST-DUE SUPPORT DEFINED.—For

21 purposes of subparagraph (A), the term ‘past22 due support’ means the amount whose payment

23 is overdue as determined under a court order,

24 or an order of an administrative process estab25 lished under State law, for support and mainte-
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1 nance of a child, or of a child and the parent

2 with whom the child is living.’’.

3 (b) CONFORMING AMENDMENT.—The flush para4 graph at the end of section 466(a) (42 U.S.C. 666(a)) is

5 amended by striking ‘‘and (7)’’ and inserting ‘‘(7), and

6 (15)’’.

7 SEC. 266. DEFINITION OF SUPPORT ORDER.

8 Section 453 (42 U.S.C. 653) as amended by sections

9 216 and 246(b) of this Act, is amended by adding at the

10 end the following new subsection:

11 ‘‘(p) SUPPORT ORDER DEFINED.—As used in this

12 part, the term ‘support order’ means a judgment, decree,

13 or order, whether temporary, final, or subject to modifica14 tion, issued by a court or an administrative agency of com15 petent jurisdiction, for the support and maintenance of a

16 child, including a child who has attained the age of major17 ity under the law of the issuing State, or a child and the

18 parent with whom the child is living, which provides for

19 monetary support, health care, arrearages, or reimburse20 ment, and which may include related costs and fees, inter21 est and penalties, income withholding, attorneys’ fees, and

22 other relief.’’.

23 SEC. 267. REPORTING ARREARAGES TO CREDIT BUREAUS.

24 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

25 to read as follows:
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1 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU2 REAUS.—

3 ‘‘(A) IN GENERAL.—Procedures (subject to

4 safeguards pursuant to subparagraph (B)) re5 quiring the State to report periodically to

6 consumer reporting agencies (as defined in sec7 tion 603(f) of the Fair Credit Reporting Act

8 (15 U.S.C. 1681a(f)) the name of any non9 custodial parent who is delinquent in the pay10 ment of support, and the amount of overdue

11 support owed by such parent.

12 ‘‘(B) SAFEGUARDS.—Procedures ensuring

13 that, in carrying out subparagraph (A), infor14 mation with respect to a noncustodial parent is

15 reported—

16 ‘‘(i) only after such parent has been

17 afforded all due process required under

18 State law, including notice and a reason19 able opportunity to contest the accuracy of

20 such information; and

21 ‘‘(ii) only to an entity that has fur22 nished evidence satisfactory to the State

23 that the entity is a consumer reporting

24 agency (as so defined).’’.
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1 SEC. 268. LIENS.

2 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

3 to read as follows:

4 ‘‘(4) LIENS.—Procedures under which—

5 ‘‘(A) liens arise by operation of law against

6 real and personal property for amounts of over7 due support owed by a noncustodial parent who

8 resides or owns property in the State; and

9 ‘‘(B) the State accords full faith and credit

10 to liens described in subparagraph (A) arising

11 in another State, without registration of the un12 derlying order.’’.

13 SEC. 269. STATE LAW AUTHORIZING SUSPENSION OF LI14 CENSES.

15 Section 466(a) (42 U.S.C. 666(a)), as amended by

16 sections 215, 217(a), 223, and 265 of this Act, is amended

17 by adding at the end the following:

18 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

19 LICENSES.—Procedures under which the State has

20 (and uses in appropriate cases) authority to withhold

21 or suspend, or to restrict the use of, driver’s li22 censes, professional and occupational licenses, and

23 recreational licenses of individuals owing overdue

24 support or failing, after receiving appropriate notice,

25 to comply with subpoenas or warrants relating to

26 paternity or child support proceedings.’’.
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1 SEC. 270. DENIAL OF PASSPORTS FOR NONPAYMENT OF

2 CHILD SUPPORT.

3 (a) HHS CERTIFICATION PROCEDURE.—

4 (1) SECRETARIAL RESPONSIBILITY.—Section

5 452 (42 U.S.C. 652), as amended by section 246 of

6 this Act, is amended by adding at the end the fol7 lowing new subsection:

8 ‘‘(k)(1) If the Secretary receives a certification by a

9 State agency in accordance with the requirements of sec10 tion 454(31) that an individual owes arrearages of child

11 support in an amount exceeding $5,000, the Secretary

12 shall transmit such certification to the Secretary of State

13 for action (with respect to denial, revocation, limitation

14 of passports) pursuant to section 270(b) of the Work First

15 and Personal Responsibility Act of 1996.

16 ‘‘(2) The Secretary shall not be liable to an individual

17 for any action with respect to a certification by a State

18 agency under this section.’’.

19 (2) STATE AGENCY RESPONSIBILITY.—Section

20 454 (42 U.S.C. 654) as amended by sections 201(b),

21 203(a), 212(b), 213(a), 233, and 244(b) of this Act,

22 is amended—

23 (A) by striking ‘‘and’’ at the end of para24 graph (29);

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

26 paragraph (30) and inserting ‘‘; and’’; and
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1 (C) by adding after paragraph (30) the fol2 lowing new paragraph:

3 ‘‘(31) provide that the State agency will have in

4 effect a procedure for certifying to the Secretary, for

5 purposes of the procedure under section 452(k), de6 terminations that individuals owe arrearages of child

7 support in an amount exceeding $5,000, under

8 which procedure—

9 ‘‘(A) each individual concerned is afforded

10 notice of such determination and the con11 sequences thereof, and an opportunity to con12 test the determination; and

13 ‘‘(B) the certification by the State agency

14 is furnished to the Secretary in such format,

15 and accompanied by such supporting docu16 mentation, as the Secretary may require.’’.

17 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

18 OF PASSPORTS.—

19 (1) IN GENERAL.—The Secretary of State shall,

20 upon certification by the Secretary of Health and

21 Human Services transmitted under section 452(k) of

22 the Social Security Act, refuse to issue a passport to

23 such individual, and may revoke, restrict, or limit a

24 passport issued previously to such individual.
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1 (2) LIMIT ON LIABILITY.—The Secretary of

2 State shall not be liable to an individual for any ac3 tion with respect to a certification by a State agency

4 under this section.

5 (c) EFFECTIVE DATE.—This section and the amend6 ments made by this section become effective October 1,

7 1996.

8 SEC. 271. INTERNATIONAL CHILD SUPPORT ENFORCE9 MENT.

10 (a) AUTHORITY FOR INTERNATIONAL AGREE11 MENTS.—Part D of title IV, as amended by section 262(a)

12 of this Act, is amended by adding after section 459 the

13 following new section:

14 ‘‘SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCE15 MENT.

16 ‘‘(a) AUTHORITY FOR DECLARATIONS.—

17 ‘‘(1) DECLARATION.—The Secretary of State,

18 with the concurrence of the Secretary of Health and

19 Human Services, is authorized to declare any foreign

20 country (or a political subdivision thereof) to be a

21 foreign reciprocating country if the foreign country

22 has established, or undertakes to establish, proce23 dures for the establishment and enforcement of du24 ties of support owed to obligees who are residents of

25 the United States, and such procedures are substan-
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1 tially in conformity with the standards prescribed

2 under subsection (b).

3 ‘‘(2) REVOCATION.—A declaration with respect

4 to a foreign country made pursuant to paragraph

5 (1) may be revoked if the Secretaries of State and

6 Health and Human Services determine that—

7 ‘‘(A) the procedures established by the for8 eign nation regarding the establishment and en9 forcement of duties of support have been so

10 changed, or the foreign nation’s implementation

11 of such procedures is so unsatisfactory, that

12 such procedures do not meet the criteria for

13 such a declaration; or

14 ‘‘(B) continued operation of the declaration

15 is not consistent with the purposes of this part.

16 ‘‘(3) FORM OF DECLARATION.—A declaration

17 under paragraph (1) may be made in the form of an

18 international agreement or corresponding foreign

19 declaration, or on a unilateral basis.

20 ‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE21 MENT PROCEDURES.—

22 ‘‘(1) MANDATORY ELEMENTS.—Child support

23 enforcement procedures of a foreign country which

24 may be the subject of a declaration pursuant to sub25 section (a)(1) shall include the following elements:
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1 ‘‘(A) The foreign country (or political sub2 division thereof) has in effect procedures, avail3 able to residents of the United States—

4 ‘‘(i) for establishment of paternity,

5 and for establishment of orders of support

6 for children and custodial parents; and

7 ‘‘(ii) for enforcement of orders to pro8 vide support to children and custodial par9 ents, including procedures for collection

10 and appropriate distribution of support

11 payments under such orders.

12 ‘‘(B) The procedures described in subpara13 graph (A), including legal and administrative

14 assistance, are provided to residents of the

15 United States at no cost.

16 ‘‘(C) An agency of the foreign country is

17 designated as a Central Authority responsible

18 for—

19 ‘‘(i) facilitating child support enforce20 ment in cases involving residents of the

21 foreign nation and residents of the United

22 States; and

23 ‘‘(ii) ensuring compliance with the

24 standards established pursuant to this sub25 section.
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1 ‘‘(2) ADDITIONAL ELEMENTS.—The Secretary

2 of Health and Human Services and the Secretary of

3 State, in consultation with the States, may establish

4 such additional standards as may be considered nec5 essary to further the purposes of this section.

6 ‘‘(c) DESGINATION OF UNITED STATES CENTRAL

7 AUTHORITY.—It shall be the responsibility of the Sec8 retary of Health and Human Services to facilitate child

9 support enforcement in cases involving residents of the

10 United States and residents of foreign nations that are

11 the subject of a declaration under this section, by activities

12 including—

13 ‘‘(1) development of uniform forms and proce14 dures for use in such cases;

15 ‘‘(2) notification of foreign reciprocating coun16 tries of the State of residence of individuals sought

17 for support enforcement purposes, on the basis of in18 formation provided by the Federal Parent Locator

19 Service; and

20 ‘‘(3) such other oversight, assistance, and co21 ordination activities as the Secretary may find nec22 essary and appropriate.

23 ‘‘(d) EFFECT ON OTHER LAWS.—States may enter

24 into reciprocal arrangements for the establishment and en25 forcement of child support obligations with foreign coun-
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1 tries that are not the subject of a declaration pursuant

2 to subsection (a), to the extent consistent with Federal

3 law.’’.

4 ‘‘(b) STATE PLAN REQUIREMENT.—Section 454 (42

5 U.S.C. 654), as amended by sections 201(b), 203(a),

6 212(b), 213(a), 233, 244(b), and 270(a)(2) of this Act,

7 is amended—

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

9 (30);

10 (2) by striking the period at the end of para11 graph (31) and inserting ‘‘; and’’; and

12 (3) by adding after paragraph (31) the follow13 ing new paragraph:

14 ‘‘(32)(A) provide that any request for services

15 under this part by a foreign reciprocating country or

16 a foreign country with which the State has an ar17 rangement described in section 459A(d)(2) shall be

18 treated as a request by a State;

19 ‘‘(B) provide, at State option, notwithstanding

20 paragraph (4) or any other provision of this part,

21 for services under the plan for enforcement of a

22 spousal support order not described in paragraph

23 (4)(B) entered by such a country (or subdivision);

24 and
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1 ‘‘(C) provide that no applications will be re2 quired from, and no costs will be assessed for such

3 services against, the foreign reciprocating country of

4 foreign obligee (but costs may at State option be as5 sessed against the obligor).’’.

6 SEC. 272. FINANCIAL INSTITUTION DATA MATCHES.

7 Section 466(a) (42 U.S.C. 666(a)), as amended by

8 sections 215, 217(a), 223, 265, and 269 of this Act, is

9 amended by adding at the end the following new para10 graph:

11 ‘‘(17) FINANCIAL INSTITUTION DATA

12 MATCHES.—

13 ‘‘(A) IN GENERAL.—Procedures under

14 which the State agency shall enter into agree15 ments with financial institutions doing business

16 in the State—

17 ‘‘(i) to develop and operate, in coordi18 nation with such financial institutions, a

19 data match system, using automated data

20 exchanges to the maximum extent feasible,

21 in which each such financial institution is

22 required to provide for each calendar quar23 ter the name, record address, social secu24 rity number or other taxpayer identifica25 tion number, and other identifying infor-
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1 mation for each noncustodial parent who

2 maintains an account at such institution

3 and who owes past-due support, as identi4 fied by the State by name and social secu5 rity number or other taxpayer identifica6 tion number; and

7 ‘‘(ii) in response to a notice of lien or

8 levy, encumber or surrender, as the case

9 may be, assets held by such institution on

10 behalf of any noncustodial parent who is

11 subject to a child support lien pursuant to

12 paragraph (4).

13 ‘‘(B) REASONABLE FEES.—The State

14 agency may pay a reasonable fee to a financial

15 institution for conducting the data match pro16 vided for in subparagraph (A)(i), not to exceed

17 the actual costs incurred by such financial insti18 tution.

19 ‘‘(C) LIABILITY.—A financial institution

20 shall not be liable under any Federal or State

21 law to any person—

22 ‘‘(i) for any disclosure of information

23 to the State agency under subparagraph

24 (A)(i);
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1 ‘‘(ii) for encumbering or surrendering

2 any assets held by such financial institu3 tion in response to a notice of lien or levy

4 issued by the State agency as provided in

5 subparagraph (A)(ii); or

6 ‘‘(iii) for any other action taken in

7 good faith to comply with the requirements

8 of subparagraph (A).

9 ‘‘(D) DEFINITIONS.—For purposes of this

10 paragraph—

11 ‘‘(i) FINANCIAL INSTITUTION.—The

12 term ‘financial institution’ means any Fed13 eral or State commercial savings bank, in14 cluding savings association or cooperative

15 bank, Federal- or State-chartered credit

16 union, benefit association, insurance com17 pany, safe deposit company, money-market

18 mutual fund, or any similar entity author19 ized to do business in the State; and

20 ‘‘(ii) ACCOUNT.—The term ‘account’

21 means a demand deposit account, checking

22 or negotiable withdrawal order account,

23 savings account, time deposit account, or

24 money-market mutual fund account.’’.
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1 SEC. 273. ENFORCEMENT OF ORDERS AGAINST PATERNAL

2 OR MATERNAL GRANDPARENTS IN CASES OF

3 MINOR PARENTS.

4 Section 466(a) (42 U.S.C. 666(a)), as amended by

5 sections 215, 217(a), 223, 265, 269, and 272 of this Act,

6 is amended by adding at the end the following new para7 graph:

8 ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA9 TERNAL OR MATERNAL GRANDPARENTS.—Proce10 dures under which, at the State’s option, any child

11 support order enforced under this part with respect

12 to a child of minor parents, if the custodial parents

13 of such child is receiving assistance under the State

14 program under part A, shall be enforceable, joint

15 and severally, against the parents of the noncusto16 dial parents of such child.’’.

17 SEC. 274. NONDISCHARGEABILITY IN BANKRUPTCY OF

18 CERTAIN DEBTS FOR THE SUPPORT OF A

19 CHILD.

20 (a) AMENDMENT TO TITLE 11 OF THE UNITED

21 STATES CODE.—Section 523(a) of title 11, United States

22 Code, is amended—

23 (1) in paragraph (16) by striking the period at

24 the end and inserting ‘‘; or’’,

25 (2) by adding at the end the following:
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1 ‘‘(17) to a State or municipality for assistance

2 provided by such State or municipality under a

3 State program funded under part A of title IV of the

4 Social Security Act to the extent that such assist5 ance is provided for the support of a child of the

6 debtor.’’, and

7 (3) in paragraph (5), by striking ‘‘(26)’’ and in8 serting ‘‘(2)’’.

9 (b) AMENDMENT TO THE SOCIAL SECURITY ACT.—

10 Section 456(b) of the Social Security Act (42 U.S.C.

11 656(b)) is amended to read as follows:

12 ‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in

13 section 101 of title 11 of the United States Code) to a

14 State (as defined in such section) or municipality (as de15 fined in such section) for assistance provided by such

16 State or municipality under a State program funded under

17 part A of title IV is not dischargeable under section 727,

18 1141, 1228(a), 1228(b), or 1328(b) of title 11 of the Unit19 ed States Code to the extent that such assistance is pro20 vided for the support of a child of the debtor (as defined

21 in such section).’’.

22 (c) APPLICATION OF AMENDMENTS.—The amend23 ments made by this section apply only with respect to

24 cases commenced under title 11 of the United State Code

25 after the effective date of this section.
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1 Subtitle H—Medical Support

2 SEC. 276. CORRECTION TO ERISA DEFINITION OF MEDICAL

3 CHILD SUPPORT ORDER.

4 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em5 ployee Retirement Income Security Act of 1974 (29

6 U.S.C. 1169(a)(2)(B)) is amended—

7 (1) by striking ‘‘issued by a court of competent

8 jurisdiction’’;

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

10 (ii) and inserting a comma; and

11 (3) by adding, after and below clause (ii), the

12 following: ‘‘if such judgment, decree, or order (I) is

13 issued by a court of competent jurisdiction or (II) is

14 issued through an administrative process established

15 under State law and has the force and effect of law

16 under applicable State law.’’.

17 (b) EFFECTIVE DATE.—

18 (1) IN GENERAL.—The amendments made by

19 this section take effect on the date of the enactment

20 of this Act.

21 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

22 JULY 1, 1996.—Any amendment to a plan required to

23 be made by an amendment made by this section

24 shall not be required to be made before the first plan

25 year beginning on or after July 1, 1996, if—
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1 (A) during the period following the day be2 fore the date of enactment of this Act and be3 fore the first plan year, the plan is operated in

4 accordance with the requirements of the amend5 ments made by this section; and

6 (B) the plan amendment applies retro7 actively to the period specified in subparagraph

8 (A).

9 A plan shall not be treated as failing to be op10 erated in accordance with the provisions of the plan

11 merely because it operates in accordance with this

12 paragraph.

13 SEC. 277. ENFORCEMENT OF ORDERS FOR HEALTH CARE

14 COVERAGE.

15 Section 466(a) (42 U.S.C. 666(a)), as amended by

16 sections 215, 217(a), 223, 265, 269, 272, and 273 of this

17 Act, is amended by adding at the end the following new

18 paragraph:

19 ‘‘(19) HEALTH CARE COVERAGE.—Procedures

20 under which all child support orders established or

21 modified pursuant to this part shall include a provi22 sion for the health care coverage of the child, and

23 in the case in which a noncustodial parent provides

24 such coverage and changes employment, and the new

25 employer provides health care coverage, the State
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1 agency shall transfer notice of the provision to the

2 employer, which notice shall operate to enroll the

3 child in the noncustodial parent’s health plan, unless

4 the noncustodial parent contests the notice.’’.

5 Subtitle I—Enhancing Responsibility and

6 Opportunity for Non-Residential Parents

7 SEC. 281. GRANTS TO STATES FOR ACCESS AND VISITATION

8 PROGRAMS.

9 Part D of title IV (42 U.S.C. 651–669) is amended

10 by adding at the end the following:

11 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA12 TION PROGRAMS.

13 ‘‘(a) IN GENERAL.—The Secretary shall make grants

14 under this section to enable States to establish and admin15 ister programs to support and facilitate noncustodial par16 ents’ access to and visitation of their children, by means

17 of activities including mediation (both voluntary and man18 datory), counseling, education, development of parenting

19 plans, visitation enforcement (including monitoring, super20 vision and neutral drop-off and pickup), and development

21 of guidelines for visitation and alternative custody ar22 rangements.

23 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

24 to be made to a State under this section for a fiscal year

25 shall be an amount equal to the lesser of—
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1 ‘‘(1) 90 percent of State expenditures during

2 the fiscal year for activities described in subsection

3 (a); or

4 ‘‘(2) the allotment of the State under sub5 section (c) for the fiscal year.

6 ‘‘(c) ALLOTMENTS TO STATES.—

7 ‘‘(1) IN GENERAL.—The allotment of a State

8 for a fiscal year is the amount that bears the same

9 ratio to the amount appropriated for grants under

10 this section for the fiscal year as the number of chil11 dren in the State living with only 1 biological parent

12 bears to the total number of such children in all

13 States.

14 ‘‘(2) MINIMUM ALLOTMENT.—The Administra15 tion for Children and Families shall adjust allot16 ments to States under paragraph (1) as necessary to

17 ensure that no State is allotted less than—

18 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

19 or

20 ‘‘(B) $100,000 for any succeeding fiscal

21 year.

22 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

23 FOR SIMILAR ACTIVITIES.—A State to which a grant is

24 made under this section may not use the grant to supplant

25 expenditures by the State for activities specified in sub-
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1 section (a), but shall use the grant to supplement such

2 expenditures at a level at least equal to the level of such

3 expenditures for fiscal year 1995.

4 ‘‘(e) STATE ADMINISTRATION.—Each State to which

5 a grant is made under this section—

6 ‘‘(1) may administer State programs funded

7 with the grant, directly or through grants to or con8 tracts with courts, local public agencies, or non-prof9 it private entities;

10 ‘‘(2) shall not be required to operate such pro11 grams on a statewide basis; and

12 ‘‘(3) shall monitor, evaluate, and report on such

13 programs in accordance with regulations prescribed

14 by the Secretary.’’.

15 Subtitle J—Effect of Enactment

16 SEC. 291. EFFECTIVE DATES.

17 (a) IN GENERAL.—Except as otherwise specifically

18 provided (but subject to subsections (b) and (c))—

19 (1) the provisions of this title requiring the en20 actment or amendment of State laws under section

21 466 of the Social Security Act, or revision of State

22 plans under section 454 of such Act, are effective

23 with respect to periods beginning on and after Octo24 ber 1, 1996; and
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1 (2) all other provisions of this title are effective

2 upon the date of the enactment of this Act.

3 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

4 provisions of this title shall become effective with respect

5 to a State on the later of—

6 (1) the date specified in this title, or

7 (2) the effective date of laws enacted by the leg8 islature of such State implementing such provisions,

9 but in no event later than the 1st day of the 1st cal10 endar quarter beginning after the close of the 1st

11 regular session of the State legislature that begins

12 after the date of the enactment of this Act. For pur13 poses of the previous sentence, in the case of a State

14 that has a 2-year legislative session, each year of

15 such session shall be deemed to be a separate regu16 lar session of the State legislature.

17 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

18 AMENDMENT.—A State shall not be found out of compli19 ance with any requirement enacted by this title if the State

20 is unable to so comply without amending the State con21 stitution until the earlier of—

22 (1) 1 year after the effective date of the nec23 essary State constitutional amendment; or

24 (2) 5 years after the date of the enactment of

25 this Act.
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1 TITLE III—FOOD ASSISTANCE

2 Subtitle A—Food Stamps

3 SEC. 301. SHORT TITLE.

4 This subtitle may be cited as ‘‘The Food Stamp Act

5 Amendments of 1996’’.

6 PART 1—BUDGETARY PROPOSALS

7 SEC. 311. INCLUDE CHILDREN UNDER 22 YEARS OLD IN

8 THEIR PARENTS’ HOUSEHOLDS.

9 Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.

10 2012(i)) is amended by striking the first parenthetical

11 phrase in the second sentence.

12 SEC. 312. USE THE COST OF THE THRIFTY FOOD PLAN FOR

13 ALLOTMENT ADJUSTMENTS.

14 Section 3(o) of the Food Stamp Act of 1977 (7

15 U.S.C. 2012(o)) is amended—

16 (1) in clause (11), by inserting ‘‘until October

17 1, 1996,’’ after ‘‘thereafter,’’; and

18 (2) by adding a new third sentence at the end

19 as follows: ‘‘On October 1, 1996, and each October

20 1 thereafter, adjust the cost of such diet to reflect

21 the cost of the thrifty food plan in the preceding

22 June, and round the result to the nearest lower dol23 lar increment for each household size.’’.
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1 SEC. 313. LOWER AGE FOR EXCLUDING STUDENTS’ EARN2 INGS.

3 Section 5(d)(7) of the Food Stamp Act of 1977 (7

4 U.S.C. 2014(d)(7)) is amended by striking ‘‘is 21 years

5 of age or younger’’ and inserting ‘‘has not reached the

6 age of 18’’.

7 SEC. 314. COUNT GOVERNMENTAL ENERGY ASSISTANCE AS

8 INCOME.

9 (a) Section 5(d)(11) of the Food Stamp Act of 1977

10 (7 U.S.C. 2014(d)) is amended to read as follows:

11 ‘‘(11) a 1-time payment or allowance made

12 under a Federal or State law for the costs of weath13 erization or emergency repair or replacement of an

14 unsafe or inoperative furnace or other heating or

15 cooling device,’’.

16 (b) Section 5(e) of the Food Stamp Act of 1977 (7

17 U.S.C. 2104(e)) is amended by striking ‘‘If a State agency

18 elects’’ and all that follows through ‘‘season for which it

19 was provided.’’.

20 (c) Section 5(k) of the Food Stamp Act of 1977 (7

21 U.S.C. 2014(k)) is amended by—

22 (1) striking, in paragraph (1)(B), ‘‘, not includ23 ing energy or utility-cost assistance,’’;

24 (2) striking paragraph (2)(C); and

25 (3) adding at the end the following:
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1 ‘‘(4)(A) For purposes of subsection (d)(1), a

2 payment made under a Federal or State law to pro3 vide energy assistance to a household shall be con4 sidered money payable directly to the household.

5 ‘‘(B) For purposes of subsection (e), an expense

6 paid on behalf of a household under a Federal or

7 State law to provide energy assistance shall be con8 sidered an out-of-pocket expense incurred and paid

9 by the household.’’.

10 (d) Section 2605(f) of the Low-Income Home Energy

11 Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended

12 by—

13 (1) striking ‘‘(1) Notwithstanding any other

14 provision of law unless’’ and inserting ‘‘Notwith15 standing any other provision of law except the Food

16 Stamp Act of 1977 (7 U.S.C. 2011 et seq.), and

17 any’’;

18 (2) striking, in paragraph (1), ‘‘food stamps,’’;

19 and

20 (3) striking paragraph (2).

21 SEC. 315. REDUCE THE STANDARD DEDUCTION.

22 Section 5(e) of the Food Stamp Act of 1977 (7

23 U.S.C. 2014(e)) is amended by striking the first two sen24 tences and inserting ‘‘The Secretary shall allow a standard

25 deduction for each household in the 48 contiguous States
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1 and the District of Columbia, Alaska, Hawaii, Guam, and

2 the Virgin Islands of the United States of—

3 ‘‘(1) for fiscal year 1996, $130, $222, $183,

4 $260, and $114, respectively;

5 ‘‘(2) for fiscal years 1997 through 2000, $122,

6 $208, $171, $244, and $106, respectively; and

7 ‘‘(3) on October 1, 2000, and each October 1

8 thereafter, the Secretary shall adjust the standard

9 deduction to the nearest lower dollar increment to

10 reflect changes in the Consumer Price Index for all

11 urban consumers published by the Bureau of Labor

12 Statistics, for items other than food, for the 12-

13 month period ending the preceding June 30.’’.

14 SEC. 316. PROVIDE A STATE OPTION TO MANDATE USE OF

15 STANDARD UTILITY ALLOWANCES.

16 Section 5(e) of the Food Stamp Act of 1977 (7

17 U.S.C. 2014(e)) is amended by inserting before ‘‘No such

18 allowance may be used‘‘ the following new sentence ‘‘A

19 State agency may make the use of a standard utility allow20 ance mandatory for all households with qualifying utility

21 costs if (1) the State agency has developed one or more

22 standards that include the cost of heating and cooling and

23 one or more standards that do not include the cost of heat24 ing and cooling; and (2) the Secretary finds that the

25 standards will not result in increased program costs.’’.
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1 SEC. 317. REVISE INDEXATION OF VEHICLE ASSET LIMITA2 TION.

3 The first sentence of section 5(g)(2) of the Food

4 Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by

5 striking ‘‘through September 30, 1996’’ and all that fol6 lows through ‘‘such date and on’’ and inserting ‘‘and shall

7 be adjusted on October 1, 1996, and’’.

8 SEC. 318. COUNT VENDOR PAYMENTS FOR TRANSITIONAL

9 HOUSING AS INCOME.

10 Section 5(k)(2) of the Food Stamp Act of 1977 (7

11 U.S.C. 2014(k)(2)) is amended by—

12 (1) striking subparagraph (F); and

13 (2) redesignating subparagraphs (G) and (H)

14 as subparagraphs (F) and (G), respectively.

15 SEC. 319. STRENGTHEN PENALTIES FOR NONCOMPLIANCE

16 WITH WORK REQUIREMENTS.

17 (a) Section 6(d) of the Food Stamp Act of 1977 (7

18 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1) Unless

19 otherwise exempted by the provisions’’ and all that follows

20 through the end of paragraph (1) and inserting the follow21 ing:

22 ‘‘(d)(1)(A) No physically and mentally fit individual

23 over the age of 15 and under the age of 60 shall be eligible

24 to participate in the food stamp program if the individ25 ual—
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1 ‘‘(i) refuses, at the time of application and

2 every 12 months thereafter, to register for employ3 ment in a manner prescribed by the Secretary;

4 ‘‘(ii) refuses without good cause to participate

5 in an employment and training program under para6 graph (4), to the extent required by the State agen7 cy;

8 ‘‘(iii) refuses without good cause to accept an

9 offer of employment, at a site or plant not subject

10 to a strike or lockout at the time of the refusal, at

11 a wage not less than the higher of—

12 ‘‘(I) the applicable Federal or State mini13 mum wage; or

14 ‘‘(II) 80 percent of the wage that would

15 have governed had the minimum hourly rate

16 under section 6(a)(1) of the Fair Labor Stand17 ards Act of 1938 (29 U.S.C. 206(a)(1)) been

18 applicable to the offer of employment;

19 ‘‘(iv) refuses without good cause to provide a

20 State agency with sufficient information to allow the

21 State agency to determine the employment status or

22 the job availability of the individual;

23 ‘‘(v) voluntarily and without good cause—

24 ‘‘(I) quits a job; or
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1 ‘‘(II) reduces work effort and, after the re2 duction, the individual is working less than 30

3 hours per week; or

4 ‘‘(vi) fails to comply with section 20.

5 ‘‘(B) If an individual who is the head of a household

6 becomes ineligible to participate in the food stamp pro7 gram under subparagraph (A), the household shall, at the

8 option of the State agency, become ineligible to participate

9 in the food stamp program for a period, determined by

10 the State agency, that does not exceed the lesser of—

11 ‘‘(i) the duration of the ineligibility of the indi12 vidual determined under subparagraph (C); or

13 ‘‘(ii) 180 days.

14 ‘‘(C)(i) The first time that an individual becomes in15 eligible to participate in the food stamp program under

16 subparagraph (A), the individual shall remain ineligible

17 until the later of—

18 ‘‘(I) the date the individual becomes eligible

19 under subparagraph (A);

20 ‘‘(II) the date that is 1 month after the date

21 the individual became ineligible; or

22 ‘‘(III) a date determined by the State agency

23 that is not later than 3 months after the date the

24 individual became ineligible.
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1 ‘‘(ii) The second time that an individual becomes in2 eligible to participate in the food stamp program under

3 subparagraph (A), the individual shall remain ineligible

4 until the later of—

5 ‘‘(I) the date the individual becomes eligible

6 under subparagraph (A);

7 ‘‘(II) the date that is 3 months after the date

8 the individual became ineligible; or

9 ‘‘(III) a date determined by the State agency

10 that is not later than 6 months after the date the

11 individual became ineligible.

12 ‘‘(iii) The third or subsequent time that an individual

13 becomes ineligible to participate in the food stamp pro14 gram under subparagraph (A), the individual shall remain

15 ineligible until the later of—

16 ‘‘(I) the date the individual becomes eligible

17 under subparagraph (A);

18 ‘‘(II) the date that is 6 months after the date

19 the individual became ineligible;

20 ‘‘(III) a date determined by the State agency;

21 or

22 ‘‘(IV) at the option of the State agency, perma23 nently.

24 ‘‘(D)(i) The Secretary shall determine the meaning

25 of ‘good cause’ for the purpose of this paragraph.
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1 ‘‘(ii) The Secretary shall determine the meaning of

2 ‘voluntarily quitting’ and ‘reduces work effort’ for the pur3 pose of this paragraph.

4 ‘‘(iii)(I) Subject to subclause (II) and clauses (i) and

5 (ii), a State agency shall determine—

6 ‘‘(aa) the meaning of any term in subparagraph

7 (A);

8 ‘‘(bb) the procedures for determining whether

9 an individual is in compliance with a requirement

10 under subparagraph (A); and

11 ‘‘(cc) whether an individual is in compliance

12 with a requirement under subparagraph (A).

13 ‘‘(II) A State agency may not determine a meaning,

14 procedure, or determination under subclause (I) to be less

15 restrictive than a comparable meaning, procedure, or de16 termination under a State program funded under part A

17 of title IV of the Social Security Act (42 U.S.C. 601 et

18 seq.).

19 ‘‘(iv) For the purpose of subparagraph (A)(v), an em20 ployee of the Federal Government, a State, or a political

21 subdivision of a State, who is dismissed for participating

22 in a strike against the Federal Government, the State, or

23 the political subdivision of the State shall be considered

24 to have voluntarily quit without good cause.
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1 ‘‘(v)(I) For the purpose of this paragraph, the State

2 agency shall allow the household to select any adult parent

3 of a child in the household as the head of the household

4 if all adult household members making application under

5 the food stamp program agree to the selection.

6 ‘‘(II) A household may designate the head of the

7 household under subclause (I) each time the household is

8 certified for participation in the food stamp program, but

9 may not change the designation during a certification pe10 riod unless there is a change in the composition of the

11 household.

12 ‘‘(vi) If the head of a household leaves the household

13 during a period in which the household is ineligible to par14 ticipate in the food stamp program under subparagraph

15 (B)—

16 ‘‘(I) the household shall, if otherwise eligible,

17 become eligible to participate in the food stamp pro18 gram; and

19 ‘‘(II) if the head of the household becomes the

20 head of another household, the household that be21 comes headed by the individual shall become ineli22 gible to participate in the food stamp program for

23 the remaining period of ineligibility.’’.
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1 (b)(1) The second sentence of section 17(b)(2) of the

2 Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amend3 ed by striking ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.

4 (2) Section 20 of the Food Stamp Act of 1977 (7

5 U.S.C. 2029) is amended by striking subsection (f) and

6 inserting the following:

7 ‘‘(f) An individual or a household may become ineli8 gible under section 6(d)(1) to participate in the food

9 stamp program for failing to comply with this section.’’.

10 SEC. 320. PROVIDE A STATE OPTION TO REQUIRE CO11 OPERATION WITH CHILD SUPPORT ENFORCE12 MENT AGENCIES.

13 (a) Section 6 of the Food Stamp Act of 1977 (7

14 U.S.C. 2015) is amended by adding new subsections (i)

15 and (j) at the end as follows:

16 ‘‘(i) At the option of the State, no natural or adoptive

17 parent or other individual who is living with and exercising

18 parental control over a child under the age of eighteen

19 who has an absent parent shall be eligible to participate

20 in the food stamp program unless the natural or adoptive

21 parent or individual cooperates with the State agency ad22 ministering the program under part D of title IV of the

23 Social Security Act (or is determined by such State agency

24 to have good cause not to cooperate) in (1) establishing

25 the paternity of such child (if born out of wedlock), and
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1 (2) obtaining support for such child or for the parent or

2 individual and for such child. Notwithstanding any provi3 sion of part D of title IV of the Social Security Act, no

4 person required under this subsection to cooperate with

5 the State agency administering the program under part

6 D of title IV of the Social Security Act may be required

7 to pay a fee or other costs for services provided under such

8 program.

9 ‘‘(j)(1) At the option of a State agency, subject to

10 paragraphs (2) and (3), a putative or identified non-custo11 dial parent of a child under the age of 18 (referred to

12 in this subsection as ‘the individual’) shall not be eligible

13 to participate in the food stamp program if the individual

14 refuses to cooperate with the State agency administering

15 the program established under part D of title IV of the

16 Social Security Act (42 U.S.C. 651 et seq.)—

17 ‘‘(A) in establishing the paternity of the child

18 (if the child is born out of wedlock); and

19 ‘‘(B) in providing support for the child.

20 ‘‘(2)(A) The Secretary, in consultation with the Sec21 retary of Health and Human Services, shall develop guide22 lines on what constitutes a refusal to cooperate under

23 paragraph (1).

24 ‘‘(B) The State agency shall develop procedures,

25 using guidelines developed under subparagraph (A), for
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1 determining whether an individual is refusing to cooperate

2 under paragraph (1).

3 ‘‘(3) Paragraph (1) shall not require the payment of

4 a fee or other cost for services provided under part D of

5 title IV of the Social Security Act (42 U.S.C. 651 et seq.).

6 ‘‘(4) The State agency shall have in effect, with re7 spect to information collected by the State agency admin8 istering the program established under part D of title IV

9 of the Social Security Act (42 U.S.C. 651 et seq.)—

10 ‘‘(A) procedures for obtaining such information

11 which are compatible with procedures established

12 under and consistent with the requirements of that

13 part; and

14 ‘‘(B) safeguards on the maintenance, disclosure,

15 and use of such information which comply with

16 standards and requirements of that part with re17 spect to such safeguards.’’.

18 SEC. 321. PROVIDE FOR DISQUALIFICATION FOR RECEIPT

19 OF MULTIPLE FOOD STAMP BENEFITS.

20 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

21 2015), as amended by this Act, is further amended by

22 adding at the end the following new subsection:

23 ‘‘(k) An individual shall be ineligible to participate

24 in the food stamp program as a member of any household

25 for a 10-year period if the individual is found by a State
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1 agency to have made, or is convicted in Federal or State

2 court of having made, a fraudulent statement or represen3 tation with respect to the identity or place of residence

4 of the individual in order to receive multiple benefits si5 multaneously under the food stamp program.’’.

6 SEC. 322. ESTABLISH ADDITIONAL WORK REQUIREMENTS.

7 (a) Section 6 of the Food Stamp Act of 1977 (7

8 U.S.C. 2015), as amended by this Act, is further amended

9 by adding at the end the following new subsection:

10 ‘‘(l)(1) In this subsection, the term ‘work program’

11 means—

12 ‘‘(A) a program under the Job Training Part13 nership Act (29 U.S.C. 1501 et seq.);

14 ‘‘(B) a program under section 236 of the Trade

15 Act of 1974 (19 U.S.C. 2296); or

16 ‘‘(C) a program of employment or training op17 erated or supervised by a State or local government

18 which meets standards deemed appropriate by the

19 Governor, including a program under section

20 6(d)(4).

21 ‘‘(2) An individual is not eligible to participate in the

22 food stamp program as a member of any household if, dur23 ing the preceding 12 months, the individual received food

24 stamp benefits for not less than 6 months during which

25 the individual did not—
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1 ‘‘(A) work 20 hours or more per week, averaged

2 monthly;

3 ‘‘(B) participate in a workfare program under

4 section 20 or a comparable State or local workfare

5 program;

6 ‘‘(C) participate in and comply with the require7 ments of an approved employment and training pro8 gram under subsection (d)(4); or

9 ‘‘(D) participate in and comply with the re10 quirements of a work program for 20 hours or more

11 per week.

12 ‘‘(3) Paragraph (2) shall not apply to an individual

13 if the individual is—

14 ‘‘(A) under 18 or over 50 years of age;

15 ‘‘(B) medically certified as physically or men16 tally unfit for employment;

17 ‘‘(C) a parent or other member of a household

18 with a dependent child under 18 years of age;

19 ‘‘(D) a pregnant woman;

20 ‘‘(E) unable to participate in an employment

21 and training program because the State in which the

22 individual resides does not provide sufficient oppor23 tunities for participation in such programs; or

24 ‘‘(F) otherwise exempt under section 6(d)(2).
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1 ‘‘(4)(A) The Secretary may waive the applicability of

2 paragraph (2) to any group of individuals in the State if

3 the Secretary makes a determination that the area in

4 which the individual reside—

5 ‘‘(i) has an unemployment rate of over 7 per6 cent; or

7 ‘‘(ii) does not have a sufficient number of jobs

8 to provide employment for the individuals.

9 ‘‘(B) The Secretary shall report the basis for a waiver

10 under subparagraph (A) the Committee on Agriculture of

11 the House of Representatives and the Committee on Agri12 culture, Nutrition, and Forestry of the Senate.’’.

13 (b) Section 16(h) of the Food Stamp Act of 1977

14 (7 U.S.C. 2025(h)) is amended by striking paragraph (1)

15 and inserting the following:

16 ‘‘(1)(A) To carry out employment and training

17 programs, the Secretary shall reserve for allocation

18 to State agencies from funds made available for each

19 fiscal year under section 18(a)(1) the amount of—

20 ‘‘(i) for fiscal year 1996, $75,000,000;

21 ‘‘(ii) for fiscal year 1997, $80,000,000;

22 ‘‘(iii) for fiscal year 1998, $90,000,000;

23 ‘‘(iv) for fiscal year 1999, $95,000,000;

24 ‘‘(v) for fiscal year 2000, $95,000,000;
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1 ‘‘(vi) for fiscal year 2001, $95,000,000;

2 and

3 ‘‘(vii) for fiscal year 2002, $95,000,000.

4 ‘‘(B) A State agency shall not reduce non-fed5 eral expenditures to carry out employment and

6 training programs during any fiscal year after fiscal

7 year 1995 from the level of State agency expendi8 tures to carry out employment and training pro9 grams in fiscal year 1995.

10 ‘‘(C) The Secretary shall allocate the amounts

11 reserved under subparagraph (A) among the State

12 agencies using a reasonable formula (as determined

13 by the Secretary) that considers the population in

14 each State affected by section 6(d)(4)(O).

15 ‘‘(D)(i) A State agency promptly shall notify

16 the Secretary if the State agency determines that

17 the State agency will not expend all of the funds al18 located to the State agency under subparagraph (C).

19 ‘‘(ii) On notification under clause (i), the Sec20 retary shall reallocate the funds that the State agen21 cy will not expend as the Secretary considers appro22 priate and equitable.

23 ‘‘(E) Notwithstanding subparagraphs (A)

24 through (D), the Secretary shall ensure that each

25 State agency operating an employment and training
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1 program shall receive not less than $50,000 in each

2 fiscal year.’’.

3 (c) Section 16(h)(2) of the Food Stamp Act of 1977

4 (7 U.S.C. 2025(h)(2)) is amended by inserting before the

5 period at the end the following: ‘‘, including the costs for

6 case management and casework to facilitate the transition

7 from economic dependency to self-sufficiency through

8 work’’.

9 SEC. 323. ESTABLISH COMPARABLE TREATMENT FOR DIS10 QUALIFICATION.

11 (a) Section 6 of the Food Stamp Act of 1977 (7

12 U.S.C. 2015), as amended by this Act, is further amended

13 by adding at the end the following new subsection:

14 ‘‘(m)(1) If a disqualification is imposed on a member

15 of a household for a failure of the member to perform an

16 action required under a Federal, State, or local law relat17 ing to a means tested public assistance program, the State

18 agency may impose the same disqualification on the mem19 ber of the household under the food stamp program.

20 ‘‘(2) If a disqualification is imposed under

21 paragraph (1) for a failure of an individual to per22 form an action required under part A of title IV of

23 the Social Security Act (42 U.S.C. 601 et seq.), the

24 State agency may use the rules and procedures that

25 apply under part A of title IV of the Social Security
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1 Act (42 U.S.C. 601 et seq.) to impose the same dis2 qualification under the food stamp program.

3 ‘‘(3) A member of a household disqualified under

4 paragraph (1) may, after the disqualification period has

5 expired, apply for benefits under this Act and shall be

6 treated as a new applicant, except that a prior disquali7 fication under subsection (d) shall be considered in deter8 mining eligibility.’’.

9 (b) Section 11(e) of the Food Stamp Act of 1977 (7

10 U.S.C. 2020(e)) is amended—

11 (1) in paragraph (24), by striking ‘‘and’’ at the

12 end;

13 (2) in paragraph (25), by striking the period at

14 the end and inserting a semicolon; and

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

16 ‘‘(26) the guidelines the State agency uses in

17 carrying out section 6(m); and’’.

18 (c) Section 6(d)(2)(A) of the Food Stamp Act of

19 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking

20 ‘‘that is comparable to a requirement of paragraph (1)’’.

21 SEC. 324. REPEAL MINIMUM BENEFIT ADJUSTMENTS.

22 Section 8(a) of the Food Stamp Act of 1977 (7

23 U.S.C. 2017(a)) is amended by striking in the proviso

24 ‘‘, and shall be adjusted’’ and all that follows through

25 ‘‘$5’’.
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1 SEC. 325. PRORATE BENEFITS ON RECERTIFICATION.

2 Section 8(c)(2)(B) of the Food Stamp Act of 1977

3 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

4 than one month’’.

5 SEC. 326. PROHIBIT ALLOTMENT INCREASES FOR PEN6 ALTIES UNDER OTHER WELFARE AND PUB7 LIC ASSISTANCE PROGRAMS.

8 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

9 2017) is amended by striking subsection (d) and inserting

10 the following:

11 ‘‘(d) If the benefits of a household are reduced under

12 a Federal, State, or local law relating to a welfare or pub13 lic assistance program because of a penalty or for the fail14 ure to perform an action required under the law or pro15 gram, for the duration of the reduction the household may

16 not receive an increased allotment as the result of a de17 crease is the income of the household to the extent that

18 the decrease is the result of the reduction. The State agen19 cy may reduce the allotment of the household by not more

20 than 25 percent.’’.

21 SEC. 327. PERMIT STATES TO DETERMINE MOST USEFUL

22 AND RELIABLE MEANS OF VERIFICATION.

23 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

24 2020) is amended by—

25 (1) striking in subsection (e)(3) all that follows

26 ‘‘, and that the State agency shall’’ through ‘‘(E)’’;
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1 (2) inserting after the paragraph designation

2 (19) of subsection (e) ‘‘at the option of the State

3 agency,’’; and

4 (3) adding at the end the following new sub5 section:

6 ‘‘(p) Notwithstanding any other provision of law,

7 State agencies (described in section 3(n)(1) of this Act)

8 shall not be required to use an income and eligibility ver9 ification system established under section 1137 of the So10 cial Security Act (42 U.S.C. 1320b–7) or the immigration

11 status verification system established under section

12 1137(d) of the Social Security Act (42 U.S.C. 1320b–

13 7Id)).’’.

14 SEC. 328. EXPAND CLAIMS COLLECTION METHODS.

15 (a) Section 13 of the Food Stamp Act of 1977 (7

16 U.S.C. 2022) is amended by—

17 (1) striking subsection (b) and inserting the fol18 lowing:

19 ‘‘(b)(1) Except as otherwise provided in this sub20 section, a State agency shall collect any overissuance of

21 coupons issued to a household by—

22 ‘‘(A) reducing the allotment of the household;

23 ‘‘(B) withholding amounts from unemployment

24 compensation from a member of the household

25 under subsection (c);
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1 ‘‘(C) recovering from Federal pay or a Federal

2 income tax refund under subsection (d); or

3 ‘‘(D) any other means.

4 ‘‘(2) Paragraph (1) shall not apply if the State agen5 cy demonstrates to the satisfaction of the Secretary that

6 all of the means referred to in paragraph (1) are not cost

7 effective.

8 ‘‘(3) If a household received an overissuance of cou9 pons without any member of the household being found

10 ineligible to participate in the program under section

11 6(b)(1) and a State agency elects to reduce the allotment

12 of the household under paragraph (1)(A), the State agen13 cy shall reduce the monthly allotment of the household

14 under paragraph (1)(A) by the greater of—

15 ‘‘(A) 10 percent of the monthly allotment of the

16 household; or

17 ‘‘(B) $10.

18 ‘‘(4) A State agency shall collect an overissuance of

19 coupons issued to a household under paragraph (1) in ac20 cordance with requirements established by the State agen21 cy for providing notice, electing a means of payment, and

22 establishing a time schedule for payment.’’; and

23 (2) in subsection (d) by—

24 (A) striking ‘‘as determined under sub25 section (b) and except for claims arising from
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1 an error of the State agency,’’ and inserting

2 ‘‘, as determined under subsection (b)(1),’’; and

3 (B) inserting before the period at the end

4 the following: ‘‘or a Federal income tax refund

5 as authorized by section 3720A of title 31,

6 United States Code’’.

7 (b) Section 11(e)(8) of the Food Stamp Act of 1977

8 (7 U.S.C. 2020(e)(8)) is amended by—

9 (1) striking ‘‘and excluding claims’’ and all that

10 follows through ‘‘such section’’; and

11 (2) inserting before the semicolon at the end

12 the following: ‘‘or a Federal income tax refund as

13 authorized by section 3720A of title 31, United

14 States Code’’.

15 (c) Section 16(a) of the Food Stamp Act of 1977 (7

16 U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur17 ing the period beginning October 1, 1990’’ and all that

18 follows through ‘‘error of a State agency’’ and inserting

19 the following:

20 ‘‘25 percent of the overissuances collected by

21 the State agency under section 13, except those

22 overissuances arising from an error of the State

23 agency’’.

24 (d) Section 6402(d) of the Internal Revenue Code (26

25 U.S.C. 6402(d)) is amended by—
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1 (1) inserting in paragraph (1) after ‘‘any Fed2 eral agency’’ the following: ‘‘(or any State agency

3 that has the responsibility for the administration of

4 the food stamp program operated pursuant to the

5 Food Stamp Act of 1977)’’; and

6 (2) inserting in the second sentence of para7 graph (2) after ‘‘a Federal agency’’ the following:

8 ‘‘(or a State agency that has the responsibility for

9 the administration of the food stamp program oper10 ated pursuant to the Food Stamp Act of 1977)’’.

11 SEC. 329. AUTHORIZE STATES TO OPERATE SIMPLIFIED

12 FOOD STAMP PROGRAMS.

13 (a) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

14 seq.) is amended by adding the following new section 24:

15 ‘‘SIMPLIFIED FOOD STAMP PROGRAM

16 ‘‘SEC. 24. (a) In this section, the term ‘Federal costs’

17 does not include any Federal costs incurred under section

18 17.

19 ‘‘(b) Subject to subsection (d), a State may elect to

20 carry out a Simplified Food Stamp Program (referred to

21 in this section as ‘Simplified Program’) for households de22 scribed in paragraph (c)(1), statewide or in a political sub23 division of the state, in accordance with this section.

24 ‘‘(c) If a State elects to carry out a Simplified Pro25 gram, within the State or a political subdivision of the

26 State—
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1 ‘‘(1) only households in which all members re2 ceive assistance under a State program funded

3 under part A of title IV of the Social Security Act

4 (42 U.S.C. 601 et seq.) shall receive benefits under

5 this section. Such households shall be eligible auto6 matically to participate in the Simplified Program;

7 and

8 ‘‘(2) subject to subsection (f), benefits under

9 the Simplified Program shall be determined under

10 rules and procedures established by the State

11 under—

12 ‘‘(A) a State program funded under part A

13 of title IV of the Social Security Act (42 U.S.C.

14 601 et seq.);

15 ‘‘(B) the food stamp program; or

16 ‘‘(C) a combination of a State program

17 funded under part A of title IV of the Social

18 Security Act (42 U.S.C. 601 et seq.) and the

19 food stamp program.

20 ‘‘(d)(1) A State agency may not operate a Simplified

21 Program unless the Secretary approves a State plan for

22 the operation of the Simplified Program under paragraph

23 (2).
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1 ‘‘(2) The Secretary may approve any State plan to

2 carry our a Simplified Program if the Secretary deter3 mines that the plan—

4 ‘‘(A) simplifies program administration while

5 fulfilling the goals of the food stamp program to

6 permit low-income households to obtain a more nu7 tritious diet;

8 ‘‘(B) complies with this section;

9 ‘‘(C) would not increase Federal costs for any

10 fiscal year; and

11 ‘‘(D) would not substantially alter, as deter12 mined by the Secretary, the appropriate distribution

13 of benefits according to household need.

14 ‘‘(e)(1) During each fiscal year and not later than

15 90 days after the end of each fiscal year, the Secretary

16 shall determine, using data provided by the State agency

17 and which the Secretary considers appropriate, whether

18 a Simplified Program being carried out by a State agency

19 is increasing Federal costs under this Act above what the

20 costs would have been for the same population had they

21 been subject to the rules of the Food Stamp Program.

22 ‘‘(2) If the Secretary determines that the Simplified

23 Program has increased Federal costs under this Act for

24 any fiscal year or any portion of any fiscal year, the Sec25 retary shall notify the State not later than 30 days after
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1 the Secretary makes the determination under paragraph

2 (1).

3 ‘‘(3)(A) Not later than 90 days after the date of a

4 notification under paragraph (2), the State shall submit

5 a plan for approval by the Secretary for prompt corrective

6 action that is designed to prevent the Simplified Program

7 from increasing Federal costs under this Act.

8 ‘‘(B) If the State does not submit a plan under sub9 paragraph (A) or carry out a plan approved by the Sec10 retary, the Secretary shall terminate the approval of the

11 State agency operating the Simplified Program and the

12 State agency shall be ineligible to operate a future Sim13 plified Program.

14 ‘‘(f)(1) In operating a Simplified Program, a State

15 or political subdivision of a State may follow the rules and

16 procedures established by the State or political subdivision

17 under a State program funded part A of title IV of the

18 Social Security Act (42 U.S.C. 601 et seq.) or under the

19 food stamp program.

20 ‘‘(2) In operating a Simplified Program, a State or

21 political subdivision shall comply with the requirements

22 of—

23 ‘‘(A) subsection 5(e) to the extent that it re24 quires an excess shelter expense deduction;

25 ‘‘(B) section 7 (a) through (g);
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1 ‘‘(C) section 8(a) (except that the income of a

2 household may be determined under a State pro3 gram funded under part A of title IV of the Social

4 Security Act (42 U.S.C. 601 et seq.));

5 ‘‘(D) section 8 (b) and (d);

6 ‘‘(E) section 11 (a), (c), (d), and (n);

7 ‘‘(F) section 11(e) (8), (9), (12), (15), (17),

8 (19), (23), and (24);

9 ‘‘(G) section 11(e)(2), to the extent that it re10 quires the State agency to provide an application to

11 households on the first day they contact a food

12 stamp office in person during office hours to make

13 what reasonably may be interpreted as an oral or

14 written request for food stamp assistance and to

15 allow those households to file the application on the

16 same day.

17 ‘‘(H) section 11(e)(3), to the extent that it re18 quires the State agency to complete certification of

19 an eligible household and provide an allotment retro20 active to the period of application to an eligible

21 household not later than 30 days following the filing

22 of an application;

23 ‘‘(I) section 11(e)(10) (or a comparable require24 ment established by the State under a State pro-
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1 gram funded under part A of title IV of the Social

2 Security Act (42 U.S.C. 601 et seq.)); and

3 ‘‘(J) section 16.

4 ‘‘(3) Notwithstanding any other provision of this sec5 tion, a household may not receive benefits under this sec6 tion as a result of the eligibility of the household under

7 a State program funded under part A of title IV of the

8 Social Security Act (42 U.S.C. 601 et seq.), unless the

9 Secretary determines that any household with income

10 above 130 percent of the poverty guidelines is not eligible

11 for the Program.’’.

12 (b) Section 8 of the Food Stamp Act of 1977 (7

13 U.S.C. 2017), as amended by this Act, is further amended

14 by striking subsection (e) and redesignating subsection (f)

15 as subsection (e).

16 (c) Section 11(e) of the Food Stamp Act of 1977 (7

17 U.S.C. 2020(e)), as amended by this Act, is further

18 amended by adding after paragraph (26), as added by sec19 tion 323(b) of this Act, the following new paragraph:

20 ‘‘(27) if a State elects to carry out a Simplified

21 Food Stamp Program under section 24, the plans of

22 the State agency for operating the Simplified Pro23 gram, including—
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1 ‘‘(A) the rules and procedures to be fol2 lowed by the State to determine food stamp

3 benefits; and

4 ‘‘(B) a description of the method by which

5 the State will carry out a quality control system

6 under section 16(c).’’.

7 (d) Section 17 of the Food Stamp Act of 1977 (7

8 U.S.C. 2026) is amended by—

9 (1) striking subsection (i); and

10 (2) redesignating subsections (j) through (l) as

11 subjections (i) through (k), respectively.

12 SEC. 330. REAUTHORIZE APPROPRIATIONS FOR THE FOOD

13 STAMP PROGRAM.

14 The first sentence of section 18(a)(1) of the Food

15 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

16 striking ‘‘1997’’ and inserting ‘‘2002’’.

17 PART 2—NONBUDGETARY PROPOSALS

18 SEC. 341. EXPAND DEFINITION OF COUPON.

19 Section 3(d) of the Food Stamp Act of 1977 (7

20 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi21 cate’’ and inserting ‘‘type of certificate, authorization

22 card, cash or check issued in lieu of a coupon, or an access

23 device, including an electronic benefits transfer card or a

24 personal identification number,’’.
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1 SEC. 342. CLARIFY DEFINITION OF HOMELESS INDIVIDUAL.

2 Section 3(s)(2)(C) of the Food Stamp Act of 1977

3 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

4 more than 90 days’’ after ‘‘temporary accommodation’’.

5 SEC. 343. PROVIDE STATE OPTION FOR ELIGIBILITY STAND6 ARDS.

7 Section 5(b) of the Food Stamp Act of 1977 (7

8 U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec9 retary’’ and inserting the following:

10 ‘‘(b) Except as otherwise provided in this Act, the

11 Secretary.’’.

12 SEC. 344. DOUBLE PENALTIES FOR VIOLATING FOOD

13 STAMP PROGRAM REQUIREMENTS.

14 Section 6(b)(1) of the Food Stamp Act of 1977 (7

15 U.S.C. 2015(b)(1)) is amended—

16 (1) in clause (i), by striking ‘‘six months upon’’

17 and inserting ‘‘1 year on’’; and

18 (2) in clause (ii), by striking ‘‘1 year’’ and in19 serting ‘‘2 years’’.

20 SEC. 345. PROVIDE STATE OPTION TO LOWER AGE OF

21 CARETAKER EXEMPTION.

22 Section 6(d)(2) of the Food Stamp Act of 1977 (7

23 U.S.C. 2015(d)(2)) is amended by striking subparagraph

24 (B) and inserting the following:

25 ‘‘(B) a parent or other member of a house26 hold with responsibility for the care of (i) a de-
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1 pendent child under the age of 6 or any lower

2 age designated by the State agency that is not

3 under the age of 1 if adequate child care is not

4 available, or (ii) an incapacitated person;’’.

5 SEC. 346. REVISE EMPLOYMENT AND TRAINING.

6 (a) IN GENERAL.—Section 6(d)(4) of the Food

7 Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—

8 (1) in subparagraph (A)—

9 (A) by striking ‘‘Not later than April 1,

10 1987, each’’ and inserting ‘‘Each’’;

11 (B) by inserting ‘‘work,’’ after ‘‘skills,

12 training,’’; and

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

14 ‘‘Each component of an employment and train15 ing program carried out under this paragraph

16 may be delivered through a statewide workforce

17 development system, unless the component is

18 not available locally through the statewide

19 workforce development system.’’;

20 (2) in subparagraph (B)—

21 (A) in the matter preceding clause (i), by

22 striking the colon at the end and inserting the

23 following: ‘‘, except that the State agency shall

24 retain the option to apply employment require-
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1 ments prescribed under this subparagraph to a

2 program applicant at the time of application:’’;

3 (B) in clause (i), by striking ‘‘with terms

4 and conditions’’ and all that follows through

5 ‘‘time of application’’; and

6 (C) in clause (iv)—

7 (i) by striking subclauses (I) and (II);

8 and

9 (ii) by redesignating subclauses (III)

10 and (IV) as subclauses (I) and (II), respec11 tively;

12 (3) in subparagraph (D)—

13 (A) in clause (i), by striking ‘‘to which the

14 application’’ and all that follows through ‘‘30

15 days or less’’;

16 (B) in clause (ii), by striking ‘‘but with re17 spect’’ and all that follows through ‘‘child

18 care’’; and

19 (C) in clause (iii), by striking ‘‘, on the

20 basis of’’ and all that follows through ‘‘clause

21 (ii)’’ and inserting ‘‘the exemption continues to

22 be valid’’;

23 (4) in subparagraph (E), by striking the third

24 sentence;

25 (5) in subparagraph (G)—
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1 (A) by striking ‘‘(G)(i) The State’’ and in2 serting ‘‘(G) The State’’; and

3 (B) by striking clause (ii);

4 (6) in subparagraph (H), by striking ‘‘(H)(i)

5 The Secretary’’ and all that follows through ‘‘(ii)

6 Federal funds’’ and inserting ‘‘(H) Federal funds’’;

7 (7)(A) by striking subparagraphs (K) and (L)

8 and inserting the following:

9 ‘‘(K) Notwithstanding any other provision

10 of this paragraph, the amount of funds a State

11 agency uses to carry out this paragraph (includ12 ing under subparagraph (I)) for participants

13 who are receiving benefits under a State pro14 gram funded under part A of title IV of the So15 cial Security Act (42 U.S.C. 601 et seq.) shall

16 not exceed the amount of funds the State agen17 cy used in fiscal year 1995 to carry out this

18 paragraph for participants who were receiving

19 benefits in fiscal year 1995 under a State pro20 gram funded under part A of title IV of the So21 cial Security Act (42 U.S.C. 601 et seq.).’’; and

22 (B) by redesignating subparagraphs (M) and

23 (N) as subparagraphs (L) and (M), respectively; and

24 (8) in subparagraph (L) (as redesignated by

25 paragraph (8)(B))—
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1 (A) by striking ‘‘(L)(i) The Secretary’’ and

2 inserting ‘‘(L) The Secretary’’; and

3 (B) by striking clause (ii).

4 (b) Section 16(h) of the Food Stamp Act of 1977

5 (7 U.S.C. 2025(h)) is amended—

6 (1) in paragraph (5)—

7 (A) by striking ‘‘(5)(A) The Secretary’’

8 and inserting ‘‘(5) The Secretary’’; and

9 (B) by striking subparagraph (B); and

10 (2) by striking paragraph (6).

11 SEC. 347. DISQUALIFY FLEEING FELONS.

12 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

13 2015), as amended by this Act, is further amended by

14 adding at the end the following new subsection:

15 ‘‘(k) No member of a household who is otherwise eli16 gible to participate in the food stamp program shall be

17 eligible to participate in the program as a member of that

18 or any other household during any period during which

19 the individual is—

20 ‘‘(1) fleeing to avoid prosecution, or custody or

21 confinement after conviction, under the law of the

22 place from which the individual is fleeing, for a

23 crime, or attempt to commit a crime, that is a felony

24 under the law of the place from which the individual
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1 fleeing or that, in the case of New Jersey, is a high

2 misdemeanor under the law of New Jersey; or

3 ‘‘(2) violating a condition of probation or parole

4 imposed under Federal or State law.’’.

5 SEC. 348. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

6 SYSTEMS.

7 (a) Section 7(g) of the Food Stamp Act of 1977 (7

8 U.S.C. 2016(g)) is amended by—

9 (1) striking ‘‘(1)’’;

10 (2) striking paragraph (2); and

11 (3) striking ‘‘(A)’’ and ‘‘(B)’’ and inserting in

12 lieu thereof ‘‘(1)’’ and ‘‘(2)’’, respectively.

13 (b) Section 7(i) of the Food Stamp Act of 1977 (7

14 U.S.C. 2016(i)) is amended by—

15 (1) striking paragraph (1) and inserting the fol16 lowing:

17 ‘‘(1)(A) Each State agency shall implement an

18 electronic benefit transfer system in which household

19 benefits determined under section 8(a) or 24 are is20 sued from and stored in a central databank before

21 October 1, 2002, unless the Secretary provides a

22 waiver for a State agency that faces unusual bar23 riers to implementing an electronic benefit transfer

24 system.
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1 ‘‘(B) Subject to paragraph (2), a State agency

2 may procure and implement an electronic benefit

3 transfer system under the terms, conditions, and de4 sign that the State agency considers appropriate.

5 ‘‘(C) An electronic benefit transfer system

6 should take into account generally accepted standard

7 operating rules based on—

8 ‘‘(i) commercial electronic funds transfer

9 technology;

10 ‘‘(ii) the need to permit interstate oper11 ation and law enforcement monitoring; and

12 ‘‘(iii) the need to permit monitoring and

13 investigations by authorized law enforcement

14 agencies.’’;

15 (2) striking subparagraph (2)(A) and redesig16 nating subparagraphs (B) through (H) as (A)

17 through (G), respectively; and

18 (3) adding at the end the following:

19 ‘‘(7) A State agency may collect a charge for

20 replacement of an electronic benefit transfer card by

21 reducing the monthly allotment of the household re22 ceiving the replacement card.

23 ‘‘(8)(A) A State agency may require that an

24 electronic benefit card contain a photograph of 1 or

25 more members of a household.
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1 ‘‘(B) If a State agency requires a photograph

2 on an electronic benefit card under subparagraph

3 (A), the State agency shall establish procedures to

4 ensure that any other appropriate member of the

5 household or any authorized representative of the

6 household may utilize the card.’’; and

7 (c) Section 10 of the Food Stamp Act of 1977 (7

8 U.S.C. 2019) is amended by inserting before the period

9 at the end of the first sentence the following: ‘‘unless such

10 centers, organizations, institutions, shelters, group living

11 arrangements, and establishments are equipped with

12 point-of-sale devices for the purpose of participating in

13 electronic benefit transfer delivery systems’’.

14 SEC. 349. AUTHORIZE EXCHANGE OF LAW ENFORCEMENT

15 INFORMATION.

16 Section 11(e)(8) of the Food Stamp Act of 1977 (7

17 U.S.C. 2020(e)(8)), as amended by this Act, is further

18 amended as follows—

19 (1) by striking ‘‘and’’ before ‘‘(C)’’; and

20 (2) by adding at the end the following: ‘‘and

21 (D) notwithstanding any other law, the address, so22 cial security number, and, if available, photograph of

23 any member of a household shall be made available,

24 on request, to any Federal, State, or local law en25 forcement officer if the officer furnishes the State
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1 agency with the name of the member and notifies

2 the agency that—

3 ‘‘(i) the member—

4 ‘‘(I) is fleeing to avoid prosecution, or

5 custody or confinement after conviction,

6 for a crime (or attempt to commit a crime)

7 that, under the law of the place the mem8 ber is fleeing, is a felony (or, in the case

9 of New Jersey, a high misdemeanor), or is

10 violating a condition of probation or parole

11 imposed under Federal or State law; or

12 ‘‘(II) has information that is nec13 essary for the officer to conduct an official

14 duty related to subclause (I);

15 ‘‘(ii) locating or apprehending the member

16 is an official duty; and

17 ‘‘(iii) the request is being made in the

18 proper exercise of an official duty; and

19 ‘‘(E) the safeguards shall not prevent compli20 ance with paragraph (16);’’.

21 SEC. 350. SIMPLIFY ADMINISTRATION OF EXPEDITED SERV22 ICE.

23 Section 11(e)(9) of the Food Stamp Act of 1977 (7

24 U.S.C. 2020(e)(9)) is amended—

25 (1) in subparagraph (A)—
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1 (A) by striking ‘‘five days’’ and inserting

2 ‘‘7 days’’; and

3 (B) by inserting ‘‘and’’ at the end;

4 (2) by striking subparagraphs (B) and (C);

5 (3) by redesignating subparagraph (D) as sub6 paragraph (B); and

7 (4) in subparagraph (B), as redesignated by

8 paragraph (3), by striking ‘‘, (B), or (C)’’.

9 PART 3—ADMINISTRATIVE FLEXIBILITY

10 PROPOSALS

11 SEC. 361. EXPAND STATE AUTHORITY TO DEFINE CERTIFI12 CATION PERIOD.

13 Section 3(c) of the Food Stamp Act of 1977 (7

14 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro15 vided’’ and all that follows and inserting the following:

16 ‘‘The certification period shall not exceed 12 months, ex17 cept that the certification period may be up to 24 months

18 if all adult household members are elderly or disabled. A

19 State agency shall have at least 1 contact with each cer20 tified household every 12 months.’’.
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1 SEC. 362. PROVIDE STATE OPTION TO COMBINE ALLOT2 MENTS FOR EXPEDITED SERVICE HOUSE3 HOLDS.

4 Section 8(c) of the Food Stamp Act of 1977 (7

5 U.S.C. 2017(c)) is amended by striking paragraph (3) and

6 inserting the following:

7 ‘‘(3) A State agency may provide to an eligible

8 household applying after the 15th day of the month,

9 in lieu of the initial allotment of the household and

10 the regular allotment of the household for the follow11 ing month, an allotment that is equal to the total

12 amount of the initial allotment and the first regular

13 allotment. The allotment shall be provided in accord14 ance with section 11(e)(3) in the case of a household

15 that is not entitled to expedited service and in ac16 cordance with paragraphs (3) and (9) of section

17 11(e) in the case of a household that is entitled to

18 expedited service.’’.

19 SEC. 363. REVISE TREATMENT OF ALLOTMENTS FOR

20 HOUSEHOLDS RESIDING IN CENTERS.

21 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

22 2017) is amended by adding at the end the following:

23 ‘‘(f)(1) In the case of an individual who resides in

24 a center for the purpose of a drug or alcoholic treatment

25 program described in the last sentence of section 3(i), a

26 State may provide an allotment for the individual to—
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1 ‘‘(A) the center as an authorized representative

2 of the individual for a period that is less than 1

3 month; and

4 ‘‘(B) the individual, if the individual leaves the

5 center.

6 ‘‘(2) A State agency may require an individual re7 ferred to in paragraph (1) to designate the center in which

8 the individual resides as the authorized representative of

9 the individual for the purpose of receiving an allotment.’’.

10 SEC. 364. IMPROVE OPERATION OF FOOD STAMP OFFICES.

11 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

12 2020) is amended—

13 (1) in subsection (e)—

14 (A) by striking paragraph (2) and insert15 ing the following:

16 ‘‘(2)(A) that the State agency shall establish

17 procedures governing the operation of food stamp of18 fices that the State agency determines best serve

19 households in the State, including households with

20 special needs, such as households with elderly or dis21 abled members, households with low-income mem22 bers who reside in rural areas, homeless individuals,

23 households residing on reservations, and households

24 in which a substantial number of members speak a

25 language other than English.
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1 ‘‘(B) In carrying out subparagraph (A), a State

2 agency—

3 ‘‘(i) shall provide timely, accurate, and fair

4 service to applicants for, and participants in,

5 the food stamp program;

6 ‘‘(ii) shall develop an application contain7 ing the information necessary to comply with

8 this Act;

9 ‘‘(iii) shall permit an applicant household

10 to apply to participate in the program on the

11 same day that the household first contacts a

12 food stamp office in person during office hours;

13 ‘‘(iv) shall consider an application that

14 contains the name, address, and signature of

15 the applicant filed on the date the applicant

16 submits the application; and

17 ‘‘(v) shall require that an adult representa18 tive of each applicant household certify in writ19 ing, under penalty of perjury, that—

20 ‘‘(I) the information contained in the

21 application is true; and

22 ‘‘(II) all members of the household

23 are citizens or are aliens eligible to receive

24 food stamps under section 6(f);
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1 ‘‘(vi) shall provide a method of certifying

2 and issuing coupons to eligible homeless individ3 uals, to ensure that participation in the food

4 stamp program is limited to eligible households;

5 and

6 ‘‘(vii) may establish operating procedures

7 that vary for local food stamp offices to reflect

8 regional and local differences within the State.

9 ‘‘(C) Nothing in this Act shall prohibit the use

10 of signatures provided and maintained electronically,

11 storage of records using automated retrieval systems

12 only, or any other features of a State agency’s appli13 cation system that does not rely exclusively on the

14 collection and retention of paper applications or

15 other records.

16 ‘‘(D) The signature of any adult under this

17 paragraph shall be sufficient to comply with any

18 provision of Federal law requiring a household mem19 ber to sign an application or statement.’’;

20 (B) in paragraph (3) by striking ‘‘and that

21 the State agency shall provide the household’’

22 and all that follows through ‘‘representative of

23 the State agency.’’;

24 (C) by striking paragraphs (14) and (25);

25 and
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1 (D)(i) by redesignating paragraphs (15)

2 through (27) as paragraphs (14) through (25),

3 respectively; and

4 (2) in subsection (i)—

5 (A) by striking ‘‘(i) Notwithstanding’’ and

6 all that follows through ‘‘(2) and inserting the

7 following:

8 ‘‘(i)(1) Notwithstanding any other

9 provision of law,’’; and

10 (B) by striking ‘‘; (3) households’’ and all

11 that follows through ‘‘title IV of the Social Se12 curity Act. No’’ and inserting a period and the

13 following:

14 ‘‘(2) Other than in a case of disqualification as

15 a penalty for failure to comply with a public assist16 ance program rule or regulation, no.’’.

17 SEC. 365. DELETE FEDERAL REQUIREMENT FOR STATE EM18 PLOYEE TRAINING.

19 Section 11(e)(6) of the Food Stamp Act of 1977 (7

20 U.S.C. 2020(e)(6)) is amended by—

21 (1) inserting ‘‘and’’ at the end of subparagraph

22 (B);

23 (2) striking in subparagraph (B), ‘‘United

24 States Civil Service Commission’’ and inserting ‘‘Of25 fice of Personnel Management’’; and
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1 (3) striking subparagraphs (C) through (E).

2 SEC. 366. AUTHORIZE ORAL WITHDRAWAL OF FAIR HEAR3 ING REQUESTS.

4 Section 11(e)(10) of the Food Stamp Act of 1977 (7

5 U.S.C. 2020(e)(10)) is amended by inserting before the

6 semicolon at the end a period and the following: ‘‘At the

7 option of a State, at any time prior to a fair hearing deter8 mination under this paragraph, a household may with9 draw, orally or in writing, a request by the household for

10 a fair hearing. If the withdrawal request is an oral request,

11 the State agency shall provide a written notice to the

12 household confirming the withdrawal request and provid13 ing the household with an opportunity to request a hear14 ing.’’.

15 SEC. 367. DELETE REDUNDANT FEDERAL STANDARDS FOR

16 ADMINISTRATION.

17 (a) Section 16 of the Food Stamp Act of 1977 (7

18 U.S.C. 2025) is amended by striking subsection (b).

19 (b) The first sentence of section 11(g) of the Food

20 Stamp Act of 1977 (7 U.S.C. 2020(g)) is amended by

21 striking ‘‘the Secretary’s standards for the efficient and

22 effective administration of the program established under

23 section 16(b)(1) or’’.
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1 (c) Section 16(c)(1)(B) of the Food Stamp Act of

2 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by striking

3 ‘‘pursuant to subsection (b)’’.

4 PART 4—PROPOSALS FOR STRENGTHENING

5 RETAILER MANAGEMENT

6 SEC. 371. PROVIDE AUTHORITY TO ESTABLISH AUTHORIZA7 TION PERIODS.

8 Section 9(a) of the Food Stamp Act of 1977 (7

9 U.S.C. 2018(a)) is amended by adding at the end the fol10 lowing—

11 ‘‘(3) The Secretary shall establish specific time

12 periods during which authorization to accept and re13 deem coupons or to redeem benefits through an elec14 tronic benefit transfer system shall be valid under

15 the food stamp program.’’.

16 SEC. 372. PROVIDE AUTHORITY TO REQUIRE INFORMATION

17 FOR VERIFYING ELIGIBILITY FOR AUTHOR18 IZATION.

19 Section 9(c) of the Food Stamp Act of 1977 (7

20 U.S.C. 2018(c)) is amended—

21 (1) in the first sentence, by inserting ‘‘, which

22 may include relevant income and sales tax filing doc23 uments,’’ after ‘‘submit information’’; and

24 (2) by inserting after the first sentence the fol25 lowing: ‘‘The regulations may require retail food
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1 stores and wholesale food concerns to provide writ2 ten authorization for the Secretary to verify all rel3 evant tax filings with appropriate agencies and to

4 obtain corroborating documentation from other

5 sources so that the accuracy of information provided

6 by the stores and concerns may be verified.’’.

7 SEC. 373. ESTABLISH WAITING PERIOD FOR STORES THAT

8 INITIALLY FAIL TO MEET AUTHORIZATION

9 CRITERIA.

10 Section 9(d) of the Food Stamp Act of 1977 (7

11 U.S.C. 2018(d)) is amended by adding at the end the fol12 lowing: ‘‘A retail food store or wholesale food concern that

13 is denied approval to accept and redeem coupons because

14 the store or concern does not meet criteria for approval

15 established by the Secretary may not, for at least 6

16 months, submit a new application to participate in the

17 program. The Secretary may establish a longer time pe18 riod under the preceding sentence, including permanent

19 disqualification, that reflects the severity of the basis of

20 the denial.’’.

21 SEC. 374. DISQUALIFY RETAILERS WHO INTENTIONALLY

22 SUBMIT FALSIFIED APPLICATIONS.

23 Section 12(b) of the Food Stamp Act of 1977 (7

24 U.S.C. 2021(b)) is amended by—

25 (1) striking at the end of paragraph (2) ‘‘and’’;
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1 (2) striking in paragraph (3) the period at the

2 end and inserting ‘‘, and’’; and

3 (3) adding at the end the following:

4 ‘‘(4) for a reasonable period of time to be deter5 mined by the Secretary, including permanent dis6 qualification, on the knowing submission of an appli7 cation for the approval or reauthorization to accept

8 and redeem coupons that contain false information

9 about a substantive matter that was a part of the

10 application.’’.

11 SEC. 375. DISQUALIFY RETAILERS WHO ARE DISQUALIFIED

12 UNDER THE WIC PROGRAM.

13 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

14 2021) is amended by adding at the end the following:

15 ‘‘(g)(1) The Secretary shall issue regulations provid16 ing criteria for the disqualification under this Act of an

17 approved retail food store and a wholesale food concern

18 that is disqualified from accepting benefits under the spe19 cial supplemental nutrition program for women, infants,

20 and children established under section 17 of the Child Nu21 trition Act of 1966 (7 U.S.C. 1786).

22 ‘‘(2) A disqualification under paragraph (1)—

23 ‘‘(A) shall be for the same period as the dis24 qualification from the program referred to in para25 graph (1);
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1 ‘‘(B) may begin at a later date than the dis2 qualification from the program referred to in para3 graph (1); and

4 ‘‘(C) notwithstanding section 14, shall not be

5 subject to judicial or administrative review.’’.

6 SEC. 376. AUTHORIZE SUSPENSION OF STORES VIOLATING

7 PROGRAM REQUIREMENTS PENDING ADMIN8 ISTRATIVE AND JUDICIAL REVIEW.

9 Section 14(a) of the Food Stamp Act of 1977 (7

10 U.S.C. 2023(a)) is amended by—

11 (1) redesignating the first through seventeenth

12 sentences as paragraphs (1) through (17), respec13 tively; and

14 (2) adding at the end the following:

15 ‘‘(18) Notwithstanding any other provision of

16 this subsection, any permanent disqualification of a

17 retail food store or wholesale food concern under

18 paragraph (3) or (4) of section 12(b) shall be effec19 tive from the date of receipt of the notice of dis20 qualification. If the disqualification is reversed

21 through administrative or judicial review, the Sec22 retary shall not be liable for the value of any sales

23 lost during the disqualification period.’’.
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1 SEC. 377. EXPAND CIVIL AND CRIMINAL FORFEITURE FOR

2 VIOLATIONS OF THE FOOD STAMP ACT.

3 (a) The first sentence of section 15(g) of the Food

4 Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended by

5 striking ‘‘or intended to be furnished’’.

6 (b) Section 15 of the Food Stamp Act of 1977 (7

7 U.S.C. 2024) is amended by adding the following new sub8 sections:

9 ‘‘(h) CIVIL FORFEITURE.—

10 ‘‘(1) any property, real or personal,

11 ‘‘(A) constituting, derived from, or trace12 able to any proceeds obtained directly or indi13 rectly from, or

14 ‘‘(B) used, or intended to be used, to com15 mit or to facilitate,

16 the commission of a violation (other than a mis17 demeanor) of subsection (b) or (c) of this section,

18 shall be subject to forfeiture to the United States.

19 ‘‘(2) The provisions of chapter 46 of title 18,

20 relating to civil forfeitures shall extend to a seizure

21 or forfeiture under this subsection, insofar as appli22 cable and not inconsistent with the provisions of this

23 subsection, except that such duties as are imposed

24 upon the Secretary of the Treasury under chapter

25 46 shall be performed with respect to seizures and

26 forfeitures under this section by such officers,
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1 agents, and other persons as designated for that

2 purpose by the Secretary, U.S. Department of Agri3 culture.

4 ‘‘(3) Forfeitures imposed under this subsection

5 shall be in addition to any criminal sanctions im6 posed against the owner of the forfeited property.

7 ‘‘(i) CRIMINAL FORFEITURE.—

8 ‘‘(1) In imposing sentence upon any person con9 victed of a violation (other than a misdemeanor) of

10 subsection (b) or subsection (c) of this section, the

11 court shall order that the person forfeit to the

12 United States, irrespective of any State law—

13 ‘‘(A) any property, real or personal, con14 stituting, derived from, or traceable to any pro15 ceeds such person obtained directly or indirectly

16 as a result of such violation; and

17 ‘‘(B) any of such person’s property used,

18 or intended to be used, to commit or to facili19 tate the commission of such violation.

20 ‘‘(2) All property subject to forfeiture under

21 this subsection, any seizure and disposition thereof,

22 and any proceeding relating thereto, shall be gov23 erned by section 413 of the Comprehensive Drug

24 Abuse Prevention and Control Act of 1970 (21

25 U.S.C. 853), with the exception of section 413(d),
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1 insofar as applicable and not inconsistent with the

2 provisions of this subsection.

3 ‘‘(3) Restraining orders available under section

4 413(e) of the Comprehensive Drug Abuse Prevention

5 and Control Act of 1970 (21 U.S.C. 853(e)) shall

6 apply to assets otherwise subject to forfeiture under

7 section 413(p) of that Act (21 U.S.C. 853(p)), as in8 corporated in this subsection.’’.

9 SEC. 378. EXPAND AUTHORITY FOR SHARING INFORMA10 TION PROVIDED BY RETAIL FOOD STORES

11 AND WHOLESALE FOOD CONCERNS.

12 (a) Section 205(c)(2)(C)(iii) of the Social Security

13 Act (42 U.S.C. 405(c)(2)(C)(iii)) as amended by section

14 316(a) of the Social Security Administrative Reform Act

15 of 1994 (P.L. 103–296; 108 Stat. 1464), is amended by—

16 (1) inserting in the first sentence of subclause

17 (II) after ‘‘instrumentality of the United States’’ the

18 following: ‘‘, or State government officers and em19 ployees with law enforcement or investigative respon20 sibilities, or State agencies that have the responsibil21 ity for administering the Special Supplemental Nu22 trition Program for Women, Infants and Children

23 (WIC)’’;

24 (2) inserting in the last sentence of subclause

25 (II) ‘‘or State’’ after ‘‘other Federal’’; and
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1 (3) inserting in subclause (III) ‘‘or a State’’

2 after ‘‘United States’’.

3 (b) Section 6109(f)(2) of the Internal Revenue Code

4 of 1986 (26 U.S.C. 6109(f)(2)) (as added by section

5 316(b) of the Social Security Administrative Reform Act

6 of 1994 (P.L. 103–296; 108 Stat. 1464), is amended by—

7 (1) inserting in paragraph (A) after ‘‘instru8 mentality of the United States’’ the following ‘‘, or

9 State government officers and employees with law

10 enforcement or investigative responsibilities, or State

11 agencies that have the responsibility for administer12 ing the Special Supplemental Nutrition Program for

13 Women, Infants and Children (WIC)’’;

14 (2) inserting in the last sentence of subpara15 graph (A) ‘‘or State’’ after ‘‘other Federal’’; and

16 (3) inserting in subparagraph (B) ‘‘or a State’’

17 after ‘‘United States’’.

18 PART 5—CONFORMING AMENDMENTS AND

19 EFFECTIVE DATES

20 SEC. 381. CONFORMING AMENDMENTS.

21 (a) Section 5(k)(1)(A) of the Food Stamp Act of

22 1977 (7 U.S.C. 2014(k)(1)(A)) is amended by striking

23 ‘‘for aid to families with dependent children’’.
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1 (b) Section 6(e)(6) of the Food Stamp Act of 1977

2 (7 U.S.C. 2015(e)(6)) is amended by striking ‘‘aid to fam3 ilies with dependent children’’ and inserting ‘‘assistance’’.

4 (c) Section 11 of the Food Stamp Act of 1977 (7

5 U.S.C. 2020) is amended by—

6 (1) striking in the first complete sentence of

7 subsection (e)(2) ‘‘aid to families with dependent

8 children’’; and

9 (2) striking in subsection (i) ‘‘aid to families

10 with dependent children’’.

11 (d) Section 16(g) of the Food Stamp Act of 1977

12 (7 U.S.C. 2025(g)) is amended in item (4) by striking

13 ‘‘Aid to Families with Dependent Children Program’’ and

14 inserting ‘‘program’’.

15 (e) Section 17(b) of the Food Stamp Act of 1977 (7

16 U.S.C. 2026(b)) is amended by—

17 (1) striking in the first sentence of paragraph

18 (1)(A) ‘‘aid to families with dependent children’’ and

19 inserting ‘‘assistance’’;

20 (2) striking in paragraph (3)(B) ‘‘for recipients

21 of aid to families with dependent children’’;

22 (3) inserting before the period at the end of the

23 first sentence in paragraph (3)(B) the following:

24 ‘‘for recipients of assistance under part A of title IV
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1 of the Social Security Act (42 U.S.C. 601 et seq.)’’;

2 and

3 (4) striking in paragraph (3)(C) ‘‘ ‘aid to fami4 lies with dependent children’ ’’ and inserting the fol5 lowing: ‘‘assistance under part A of title IV of the

6 Social Security Act (42 U.S.C. 601 et seq.)’’.

7 SEC. 382. EFFECTIVE DATES.

8 Except as otherwise provided in this subtitle, the pro9 visions of this subtitle become effective on the first day

10 of the second month after the month of enactment.

11 Subtitle B—Child Nutrition

12 SEC. 391. FAMILY OR GROUP DAY CARE HOMES.

13 (a) RESTRUCTURED DAY CARE HOME REIMBURSE14 MENTS.—Section 17(f)(3) of the National School Lunch

15 Act (42 U.S.C. 1766(f)(3)) is amended by striking ‘‘(3)(A)

16 Institutions’’ and all that follows through the end of sub17 paragraph (A) and inserting the following:

18 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

19 DAY CARE HOME SPONSORING ORGANIZATION.—

20 ‘‘(A) REIMBURSEMENT FACTOR.—

21 ‘‘(i) IN GENERAL.—An institution

22 that participates in the program under this

23 section as a family or group day care home

24 sponsoring organization shall be provided,

25 for payment to a home sponsored by the
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1 organization, reimbursement factors in ac2 cordance with this subparagraph for the

3 cost of obtaining and preparing food and

4 prescribed labor costs involved in providing

5 meals under this section.

6 ‘‘(ii) TIER I FAMILY OR GROUP DAY

7 CARE HOMES.—

8 ‘‘(I) DEFINITION.—In this para9 graph, the term ‘tier I family or group

10 day care home’ means—

11 ‘‘(aa) a family or group day

12 care home that is located in a ge13 ographic area, as defined by the

14 Secretary based on census data,

15 in which at least 50 percent of

16 the children residing in the area

17 are members of households whose

18 incomes meet the income eligi19 bility guidelines for free or re20 duced price meals under section

21 9;

22 ‘‘(bb) a family or group day

23 care home that is located in an

24 area served by a school enrolling

25 elementary students in which at
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1 least 50 percent of the total num2 ber of children enrolled are cer3 tified eligible to receive free or

4 reduced price school meals under

5 this Act or the Child Nutrition

6 Act of 1966 (42 U.S.C. 1771 et

7 seq.); or

8 ‘‘(cc) a family or group day

9 care home that is operated by a

10 provider whose household meets

11 the eligibility requirements for

12 free or reduced price meals under

13 section 9 and whose eligibility is

14 verified by the sponsoring organi15 zation of the home under regula16 tions established by the Sec17 retary.

18 ‘‘(II) REIMBURSEMENT.—Except

19 as provided in subclause (III), a tier

20 I family or group day care home shall

21 be provided reimbursement factors

22 under this clause without a require23 ment for documentation of the costs

24 described in clause (i), except that re25 imbursement shall not be provided
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1 under this subclause for meals or sup2 plements served to the children of a

3 person acting as a family or group

4 day care home provider unless the

5 children meet the eligibility require6 ments for free or reduced price meals

7 under section 9.

8 ‘‘(III) FACTORS.—Except as pro9 vided in subclause (IV), the reim10 bursement factors applied to a home

11 referred to in subclause (II) shall be

12 the factors in effect on the date of en13 actment of this subclause.

14 ‘‘(IV) ADJUSTMENTS.—The re15 imbursement factors under this sub16 paragraph shall be adjusted on Octo17 ber 1, 1996, July 1, 1997, and each

18 July 1 thereafter, to reflect changes in

19 the Consumer Price Index for food at

20 home for the most recent 12-month

21 period for which the data are avail22 able. The reimbursement factors

23 under this subparagraph shall be

24 rounded to the nearest lower cent in25 crement and based on the unrounded
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1 adjustment in effect on June 30 of

2 the preceding school year.

3 ‘‘(iii) TIER II FAMILY OR GROUP DAY

4 CARE HOMES.—

5 ‘‘(I) IN GENERAL.—

6 ‘‘(aa) FACTORS.—Except as

7 provided in subclause (II), with

8 respect to meals or supplements

9 served under this clause by a

10 family or group day care home

11 that does not meet the criteria

12 set forth in clause (ii)(I), the re13 imbursement factors shall be $1

14 for lunches and suppers, 30 cents

15 for breakfasts, and 15 cents for

16 supplements.

17 ‘‘(bb) ADJUSTMENTS.—The

18 factors shall be adjusted on July

19 1, 1997, and each July 1 there20 after, to reflect changes in the

21 Consumer Price Index for food at

22 home for the most recent 12-

23 month period for which the data

24 are available. The reimbursement

25 factors under this item shall be
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1 rounded down to the nearest

2 lower cent increment and based

3 on the unrounded adjustment for

4 the preceding 12-month period.

5 ‘‘(cc) REIMBURSEMENT.—A

6 family or group day care home

7 shall be provided reimbursement

8 factors under this subclause with9 out a requirement for docu10 mentation of the costs described

11 in clause (i), except that reim12 bursement shall not be provided

13 under this subclause for meals or

14 supplements served to the chil15 dren of a person acting as a fam16 ily or group day care home pro17 vider unless the children meet the

18 eligibility requirements for free

19 or reduced price meals under sec20 tion 9.

21 ‘‘(II) OTHER FACTORS.—A fam22 ily or group day care home that does

23 not meet the criteria set forth in

24 clause (ii)(I) may elect to be provided

25 reimbursement factors determined in
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1 accordance with the following require2 ments:

3 ‘‘(aa) CHILDREN ELIGIBLE

4 FOR FREE OR REDUCED PRICE

5 MEALS.—In the case of meals or

6 supplements served under this

7 subsection to children who meet

8 the eligibility requirements for

9 free or reduce price meals under

10 section 9, the family or group

11 day care home shall be provided

12 reimbursement factors set by the

13 Secretary in accordance with

14 clause (ii)(III).

15 ‘‘(bb) INELIGIBLE CHIL16 DREN.—In the case of meals or

17 supplements served under this

18 subsection to children who do not

19 meet the eligibility requirements

20 for free or reduced price meals

21 under section 9, the family or

22 group day care home shall be

23 provided reimbursement factors

24 in accordance with subclause (I).
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1 ‘‘(III) INFORMATION AND DE2 TERMINATIONS.—

3 ‘‘(aa) IN GENERAL.—If a

4 family or group day care home

5 elects to claim the factors de6 scribe in subclause (II), the fam7 ily or group day care home spon8 soring organization serving the

9 home shall collect the necessary

10 eligibility information, as deter11 mined by the Secretary, from any

12 parent or other caretaker to

13 make the determinations speci14 fied in subclause (II) and shall

15 make the determinations in ac16 cordance with rules prescribed by

17 the Secretary.

18 ‘‘(bb) CATEGORICAL ELIGI19 BILITY.—In making a determina20 tion under item (aa), a family or

21 group day care home sponsoring

22 organization may consider a child

23 participating in or subsidized

24 under, or a child with a parent

25 participating in or subsidized
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1 under, a federally or State sup2 ported child care or other benefit

3 program with an income eligi4 bility limit that does not exceed

5 the income eligibility guidelines

6 standard for free or reduced

7 price meals under section 9 to be

8 a child who is eligible for free or

9 reduced price meals under section

10 9.

11 ‘‘(cc) FACTORS FOR CHIL12 DREN ONLY.—A family or group

13 day care home may elect to re14 ceive the reimbursement factors

15 prescribed under clause (ii)(III)

16 solely for the children participat17 ing in a program referred to in

18 item (bb) if the home elects not

19 to have eligibility information col20 lected from parents or other care21 takers.’’.

22 (b) GRANTS TO STATES TO PROVIDE ASSISTANCE TO

23 FAMILY OR GROUP DAY CARE HOMES.—Section 17(f)(3)

24 of the National School Lunch Act (42 U.S.C. 1766(f)(3))

25 is amended by adding at the end the following:
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1 ‘‘(D) GRANTS TO STATES TO PROVIDE AS2 SISTANCE TO FAMILY OR GROUP DAY CARE

3 HOMES.—

4 ‘‘(i) IN GENERAL.—

5 ‘‘(I) RESERVATION.—The Sec6 retary shall reserve $5,000,000 of the

7 amount made available to carry out

8 this section for fiscal year 1996.

9 ‘‘(II) PURPOSE.—The Secretary

10 shall use the funds made available

11 under subclause (I) to provide grants

12 to States for the purpose of provid13 ing—

14 ‘‘(aa) assistance, including

15 grants, to family and day care

16 home sponsoring organizations

17 and other appropriate organiza18 tions, in securing and providing

19 training, materials, automated

20 data processing assistance, and

21 other assistance for the staff of

22 the sponsoring organizations; and

23 ‘‘(bb) training and other as24 sistance to family and group day

25 care homes in the implementation
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1 of the amendments to subpara2 graph (A) made by section

3 391(a) of the Work First and

4 Personal Responsibility Act of

5 1996.

6 ‘‘(ii) ALLOCATION.—The Secretary

7 shall allocate from the funds reserved

8 under clause (i)(I)—

9 ‘‘(I) $30,000 in base funding to

10 each State; and

11 ‘‘(II) any remaining amount

12 among the States, based on the num13 ber of family day care homes partici14 pating in the program in a State dur15 ing fiscal year 1994 as a percentage

16 of the number of all family day care

17 homes participating in the program

18 during fiscal year 1994.

19 ‘‘(iii) RETENTION OF FUNDS.—Of the

20 amount of funds made available to a State

21 for fiscal year 1996 under clause (i), the

22 State may retain not to exceed 30 percent

23 of the amount to carry out this subpara24 graph.
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1 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

2 payments received under this subpara3 graph shall be in addition to payments

4 that a State receives under subparagraph

5 (A) (as amended by section 391(a) of the

6 Work First and Personal Responsibility

7 Act of 1996).’’.

8 (c) PROVISION OF DATA.—Section 17(f)(3) of the

9 National School Lunch Act (42 U.S.C. 1766(f)(3)), as

10 amended by subsection (b), is further amended by adding

11 at the end the following:

12 ‘‘(E) PROVISION OF DATA TO FAMILY OR

13 GROUP DAY CARE HOME SPONSORING ORGANI14 ZATIONS.—

15 ‘‘(i) CENSUS DATA.—The Secretary

16 shall provide to each State agency admin17 istering a child and adult care food pro18 gram under this section data from the

19 most recent decennial census survey or

20 other appropriate census survey for which

21 the data are available showing which areas

22 in the State meet the requirements of sub23 paragraph (A)(ii)(I)(aa). The State agency

24 shall provide the data to family or group
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1 day care home sponsoring organizations lo2 cated in the State.

3 ‘‘(ii) SCHOOL DATA.—

4 ‘‘(I) IN GENERAL.—A State

5 agency administering the school lunch

6 program under this Act or the school

7 breakfast program under the Child

8 Nutrition Act of 1966 (42 U.S.C.

9 1771 et seq.) shall provide data for

10 each elementary school in the State,

11 or shall direct each school within the

12 State to provide data for the school,

13 to approve family or group day care

14 home sponsoring organizations that

15 request the data, on the percentage of

16 entrolled children who are certified eli17 gible for free or reduced price meals.

18 ‘‘(II) USE OF DATA FROM PRE19 CEDING SCHOOL YEAR.—In determin20 ing for a fiscal year or other annual

21 period whether a home qualifies as a

22 tier I family or group day care home

23 under subparagraph (A)(ii)(I), the

24 State agency administering the pro25 gram under this section, and a family
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1 or group day care home sponsoring

2 organization, shall use the most cur3 rent available data at the time of the

4 determination.

5 ‘‘(iii) DURATION OF DETERMINA6 TION.—For purposes of this section, a de7 termination that a family or group day

8 care home is located in an area that quali9 fies the home as a tier I family or group

10 day care home (as the term is defined in

11 subparagraph (A)(ii)(I)), shall be in effect

12 for 3 years (unless the determination is

13 made on the basis of census data, in which

14 case the determination shall remain in ef15 fect until more recent census data are

16 available) unless the State agency deter17 mines that the area in which the home is

18 located no longer qualifies the home as a

19 tier I family or group day care home.’’.

20 (d) CONFORMING AMENDMENTS.—Section 17(c) of

21 the National School Lunch act is amended by inserting

22 ‘‘except as provided in subsection (f)(3),’’ after ‘‘For pur23 poses of this section,’’ each place it appears in paragraphs

24 (1), (2), and (3).

25 (e) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section be3 come effective on the date of enactment of this sub4 title.

5 (2) IMPROVED TARGETING OF DAY CARE HOME

6 REIMBURSEMENTS.—The amendments made by sub7 sections (a), (c), and (d) become effective on October

8 1, 1996.

9 SEC. 392. REIMBURSEMENT RATE ADJUSTMENTS.

10 (a) IN GENERAL.—

11 (1) COMMODITY RATE.—Section 6(e)(1)(B) of

12 the National School Lunch Act (42 U.S.C.

1755(e)(1)(B)) is amended by striking ‘‘1 13 ⁄4 cent’’

14 and inserting ‘‘lower cent increment’’.

15 (2) LUNCH, BREAKFAST, AND SUPPLEMENT

16 RATES.—Section 11(a)(3)(B) of the National School

17 Lunch Act (42 U.S.C. 1759(a)(3)(B)) is amended

18 by striking ‘‘one fourth cent’’ and inserting ‘‘lower

19 cent increment’’.

20 (3) SUMMER PROGRAM RATES.—Section

21 13(b)(1) of the National School Lunch Act (42

22 U.S.C. 1761(b)(1)) is amended by striking ‘‘one

23 fourth cent’’ and inserting ‘‘lower cent increment’’.

24 (4) SPECIAL MILK PROGRAM RATES.—Section

25 3(a)(8) of the Child Nutrition Act of 1966 (42
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1 U.S.C. 1772(a)(8)) is amended by striking ‘‘one2 fourth cent’’ and inserting ‘‘lower cent increment’’.

3 (5) REDUCED PRICE BREAKFAST RATES.—Sec4 tion 4(b)(1)(B) of the Child Nutrition Act of 1966

5 (42 U.S.C. 1773(b)(1)(B)) is amended by striking

6 ‘‘one fourth cent’’ and inserting ‘‘lower cent incre7 ment’’.

8 (6) SEVERE NEED RATES.—Section

9 4(b)(2)(B)(ii) of the Child Nutrition Act of 1966

10 (42 U.S.C. 1773(b)(2)(B)(ii)) is amended by strik11 ing ‘‘one-fourth cent’’ and inserting ‘‘lower cent in12 crement’’.

13 (b) EFFECTIVE DATES.—The amendments made by

14 subsection (a) become effective on July 1, 1996.

15 SEC. 393. ELIMINATION OF START-UP AND EXPANSION

16 GRANTS.

17 (a) Section 4 of the Child Nutrition Act of 1996 (42

18 U.S.C. 1773) is amended by striking subsection (g).

19 (b) The amendment made by this subsection (a) be20 comes effective on October 1, 1996.

21 SEC. 394. AUTHORIZATION OF APPROPRIATIONS.

22 Section 19(i) of the Child Nutrition Act (42 U.S.C.

23 1788(i)) is amended—

24 (a) in the first sentence of paragraph (2)(A), by

25 striking ‘‘and each succeeding fiscal Year’’;
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1 (b) by redesignating paragraphs (3) and (4) as

2 paragraphs (4) and (5), respectively; and

3 (c) by inserting after paragraph (2) the follow4 ing:

5 ‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

6 ‘‘(A) IN GENERAL.—There are authorized

7 to be appropriated to carry out this section

8 $10,000,000 for each of the fiscal years 1997

9 through 2002.

10 ‘‘(B) GRANTS.—

11 ‘‘(i) IN GENERAL.—Grants to each

12 State from the amounts made available

13 under subparagraph (A) shall be based on

14 a rate of 50 cents for each child enrolled

15 in schools or institutions within the State,

16 except that no State shall receive an

17 amount less than $75,000 per fiscal year.

18 ‘‘(ii) INSUFFICIENT FUNDS.—If an

19 amount made available for any fiscal year

20 is insufficient to pay the amount to which

21 each State is entitled under clause (i), the

22 amount of each grant, including minimum

23 grants, shall be ratably reduced.’’.
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1 SEC. 395. DIRECT FEDERAL EXPENDITURES.

2 (a) COMMODITY ASSISTANCE.—Section 6(g) of the

3 National School Lunch Act (42 U.S.C. 1755(g)) is amend4 ed by striking ‘‘12 percent’’ and inserting ‘‘8 percent’’.

5 (b) The amendment made by this section becomes ef6 fective on July 1, 1996.

7 TITLE D—TREATMENT OF ALIENS

8 SEC. 401. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUB9 LIC ASSISTANCE PROGRAMS.

10 (a) FEDERAL AND FEDERALLY-ASSISTED PRO11 GRAMS.—

12 (1) PROGRAM ELIGIBILITY CRITERIA.—

13 (A) TEMPORARY EMPLOYMENT ASSIST14 ANCE.—Section 402(c), as amended by sections

15 101(a) and 112 of this Act, is further amended

16 by adding at the end the following paragraph:

17 ‘‘(9) RESTRICTION OF ELIGIBILITY TO CITIZENS

18 AND LEGAL IMMIGRANTS.—The State plan shall pro19 vide that, in order to be eligible for assistance under

20 the State plan, an individual must be either—

21 ‘‘(A) a citizen or national of the United

22 States, or

23 ‘‘(B) a qualified alien (as defined in section

24 1145(a)), provided that such alien is not dis25 qualified from receiving assistance under a

26 State plan approved under this part by or pur-
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1 suant to section 210(f) or 245A(h) of the Immi2 gration and Nationality Act or any other provi3 sion of law;’’.

4 (B) SUPPLEMENTAL SECURITY INCOME.—

5 Section 1614(a)(1)(B)(i) is amended to read as

6 follows:

7 ‘‘(B)(i) is a resident of the United States,

8 and is either (I) a citizen or national of the

9 United States, or (II) a qualified alien (as de10 fined in section 1145(a)), or’’.

11 (C) MEDICAID.—

12 (i) Section 1903(v)(1) is amended to

13 read as follows:

14 ‘‘(v)(1) Notwithstanding the preceding provisions of

15 this section—

16 ‘‘(A) no payment may be made to a State under

17 this section for medical assistance furnished to an

18 individual who is disqualified from receiving such as19 sistance by or pursuant to section 210(f) or 245A(h)

20 of the Immigration and Nationality Act or any other

21 provision of law, and

22 ‘‘(B) except as provided in paragraph (2), no

23 such payment may be made for medical assistance

24 furnished to an individual who is not—
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1 ‘‘(i) a citizen or national of the United

2 States, or

3 ‘‘(ii) a qualified alien (as defined in section

4 1145(a)).’’.

5 (ii) Section 1903(v)(2) is amended—

6 (I) by striking ‘‘paragraph (1)’’

7 and inserting ‘‘paragraph (1)(B)’’;

8 and

9 (II) by striking ‘‘alien’’ each

10 place it appears and inserting ‘‘indi11 vidual’’.

12 (iii) Section 1902(a) is amended in

13 the last sentence by striking ‘‘alien’’ and

14 all that follows and inserting ‘‘individual

15 who is not (A) a citizen or national of the

16 United States, or (B) a qualified alien (as

17 defined in section 1145(a)) only in accord18 ance with section 1903(v).’’.

19 (iv) Section 1902(b)(3) is amended by

20 inserting ‘‘or national’’ after ‘‘citizen’’.

21 (2) DEFINITION OF ‘‘QUALIFIED ALIEN’’.—Title

22 XI is amended by adding at the end the following

23 new section:
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1 ‘‘UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUBLIC

2 ASSISTANCE PROGRAMS

3 ‘‘SEC. 1145. (a) DEFINITIONS.—For purposes of the

4 programs under part A of title IV and titles XVI and XIX

5 of this Act—

6 ‘‘(1) QUALIFIED ALIEN.—The term ‘qualified

7 alien’ means an alien—

8 ‘‘(A) who is lawfully admitted for perma9 nent residence within the meaning of section

10 101(a)(20) of the Immigration and Nationality

11 Act;

12 ‘‘(B) who is admitted as a refugee pursu13 ant to section 207 of such Act;

14 ‘‘(C) who is granted asylum pursuant to

15 section 208 of such Act;

16 ‘‘(D) who is a Cuban or Haitian entrant,

17 as defined in section 501(e) of the Refugee

18 Education Assistance Act of 1980 (Public Law

19 96–422);

20 ‘‘(E) whose deportation is withheld pursu21 ant to section 243(h) of the Immigration and

22 Nationality Act;

23 ‘‘(F) whose deportation is suspended pur24 suant to section 244 of such Act;
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1 ‘‘(G) who is granted conditional entry pur2 suant to section 203(a)(7) of such Act as in ef3 fect prior to April 1, 1980;

4 ‘‘(H) who is lawfully admitted for tem5 porary residence pursuant to section 210 or

6 245A of such Act;

7 ‘‘(I) who is paroled into the United States

8 under section 212(d)(5) of such Act for a pe9 riod of at least 1 year;

10 ‘‘(J) who is within a class of aliens lawfully

11 present within the United States pursuant to

12 any other provision of such Act, provided

13 that—

14 ‘‘(i) the Attorney General determines

15 (and such determination shall not be judi16 cially reviewable) that the continued pres17 ence of such class of aliens serves a hu18 manitarian or other compelling public in19 terest, and

20 ‘‘(ii) the Secretary of Health and

21 Human Services and the Commissioner of

22 Social Security determine (and such deter23 mination shall not be judicially reviewable)

24 that such interest would be further served

25 by treating each alien within such class as
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1 a ‘qualified alien’ for purposes of this Act;

2 or

3 ‘‘(K) who is the spouse or unmarried child

4 under 21 years of age of a citizen of the United

5 States, or the parent of such a citizen if the cit6 izen is 21 years of age or older, and with re7 spect to whom an application for adjustment to

8 lawful permanent residence is pending;

9 such status not having changed.

10 ‘‘(2) SPONSOR.—The term ‘sponsor’ means,

11 with respect to a qualified alien, an individual who—

12 ‘‘(A) is a citizen or national of the United

13 States or an alien who is lawfully admitted to

14 the United States for permanent residence;

15 ‘‘(B) is 18 years of age or over;

16 ‘‘(C) is domiciled in any State, the District

17 of Columbia, or any territory or possession of

18 the United States; and

19 ‘‘(D) has executed an affidavit of support

20 for such alien in accordance with section 213 of

21 the Immigration and Nationality Act.’’.

22 (3) CONFORMING AMENDMENT.—Section

23 244A(f)(1) of the Immigration and Nationality Act

24 is amended by inserting ‘‘and shall not be considered

25 to be a ‘qualified alien’ within the meaning of sec-
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1 tion 1145(a) of the Social Security Act’’ immediately

2 before the semicolon.

3 (b) STATE AND LOCAL PROGRAMS.—A State, or a

4 political subdivision of a State, may provide that an alien

5 is not eligible for any program of cash assistance (other

6 than assistance related to pre-school, elementary, or sec7 ondary education) or medical assistance (other than emer8 gency medical assistance) based on need that is furnished

9 by such State or political subdivision unless such alien is

10 a ‘‘qualified alien’’ within the meaning of section 1145(a)

11 of the Social Security Act (as added by subsection (a)(2)

12 of this section).

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

14 this section are effective with respect to benefits furnished

15 on the basis of any application filed after the date of en16 actment of this Act.

17 SEC. 402. DEEMING OF SPONSOR’S INCOME AND RE18 SOURCES TO ALIEN UNDER TEA, SSI, AND

19 FOOD STAMP PROGRAMS.

20 (a) EXTENSION OF DEEMING PERIOD TO DATE OF

21 NATURALIZED CITIZENSHIP.—Section 1145 of the Social

22 Security Act, as added by section 401 of this Act, is

23 amended by adding at the end the following new sub24 section:
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1 ‘‘(b) DEEMING OF INCOME TO SPONSORED ALIEN

2 UNTIL NATURALIZATION FOR PURPOSES OF CERTAIN AS3 SISTANCE PROGRAMS.—

4 ‘‘(1) IN GENERAL.—Except as otherwise pro5 vided in this subsection, for purposes of the pro6 grams under titles IV–A and XVI and the program

7 under the Food Stamp Act of 1977, the income and

8 resources of the sponsor of a qualified alien, and of

9 the sponsor’s spouse, shall be deemed to be available

10 to such alien, in accordance with the applicable pro11 visions of each such program, until the date on

12 which the alien achieves United States citizenship

13 through naturalization pursuant to the Immigration

14 and Nationality Act.

15 ‘‘(2) EXCEPTIONS.—The income and resources

16 of a sponsor shall not be deemed available to a

17 qualified alien in the following circumstances:

18 ‘‘(A) ELDERLY ALIEN AFTER 5 YEARS’

19 RESIDENCE.—The alien has been lawfully ad20 mitted to the United States for permanent resi21 dence, has attained 75 years of age, and has re22 sided in the United States for at least 5 years.

23 ‘‘(B) ALIEN A VETERAN.—The alien—

24 ‘‘(i) is a veteran (as defined in section

25 101 of title 38, United States Code) with
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1 a discharge characterized as an honorable

2 discharge,

3 ‘‘(ii) is on active duty (other than ac4 tive duty for training) in the Armed Forces

5 of the United States, or

6 ‘‘(iii) is the spouse (other than a di7 vorced spouse), surviving spouse, or un8 married minor dependent child of an indi9 vidual described in clause (i) or (ii).

10 ‘‘(C) ALIEN A TAXPAYER.—(i) Taxes have

11 been paid (as determined in accordance with

12 clause (ii)) under chapter 2 or chapter 21 of

13 the Internal Revenue Code of 1986 for each of

14 20 different calendar quarters with respect to

15 the self-employment income or employment of

16 the alien, or spouse of the alien, or parent of

17 the alien (in the case of an alien under age 25).

18 ‘‘(ii) For purposes of clause (i), the taxes

19 described in such clause shall, in the absence

20 of any evidence to the contrary, be assumed to

21 have been paid with respect to any wages and

22 self-employment income for which such alien,

23 parent, or spouse has been credited in the

24 records maintained by the Commissioner of So25 cial Security for purposes of the administration
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1 of the Federal Old-Age, Survivors, and Disabil2 ity Insurance program authorized by title II of

3 this Act.

4 ‘‘(iii) The Social Security Administration,

5 by regulation, shall provide a simplified method

6 for assigning an individual’s annual earnings in

7 a year to a given calendar quarter. Earnings as8 signed to a given calendar quarter are consid9 ered to be acquired as of the first day of that

10 quarter.

11 ‘‘(D) ALIEN WHOSE SPONSOR RECEIVES

12 TEA OR SSI BENEFITS.—The provisions of para13 graph (1) shall not apply to any alien for any

14 month for which such alien’s sponsor receives

15 any of the following benefits—

16 ‘‘(i) temporary employment assistance

17 under part A of title IV;

18 ‘‘(ii) supplemental security income

19 under title XVI; or

20 ‘‘(iii) federally administered State

21 supplementary payments pursuant to sec22 tion 1616(a) of this Act or to section

23 212(b) of Public Law 93–66.

24 ‘‘(E) FOOD STAMPS EXEMPTION FOR

25 BLIND OR DISABLED ALIEN.—The provisions of
386

S 1841 IS

1 paragraph (1) shall not apply to the program

2 under the Food Stamp Act of 1977 with respect

3 to an alien for any month for which such alien

4 receives supplemental security income under

5 title XVI by reason of blindness (as determined

6 under section 1614(a)(2)) or disability (as de7 termined under section 1614(a)(3)), provided

8 that such blindness or disability commenced

9 after the date of such individual’s admission

10 into the United States for permanent residence.

11 ‘‘(3) REGULATIONS PROVIDING FOR HARDSHIP

12 EXCEPTIONS.—The Secretary of Health and Human

13 Services, the Commissioner of Social Security, and

14 the Secretary of Agriculture, after consultation to15 gether, may each promulgate regulations providing

16 for alteration or suspension of the application of

17 paragraph (1) in cases (including cases in which the

18 sponsored alien is the subject of domestic violence or

19 other abuse by the sponsor) where such application

20 to a qualified alien, for purposes of determining eli21 gibility for a program administered by such official,

22 would be inequitable in the circumstances.

23 ‘‘(4) INAPPLICABILITY TO MEDICAID.—The pro24 visions of paragraph (1) shall be inapplicable to the
387

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1 determination of the eligibility of a qualified alien

2 for benefits under title XIX.’’.

3 (b) AMENDMENTS TO PROGRAM STATUTES.—

4 (1) TEMPORARY EMPLOYMENT ASSISTANCE.—

5 Section 415 of the Social Security Act is redesig6 nated as section 407, and is amended—

7 (A) in subsection (a)—

8 (i) by striking ‘‘an alien described in

9 clause (B) of section 402(a)(33)’’ and in10 serting ‘‘a qualified alien (as defined in

11 section 1145(a))’’; and

12 (ii) by striking ‘‘for a period of three

13 years after the individual’s entry into the

14 United States’’ and inserting ‘‘, subject to

15 the exceptions in subsection (f), during the

16 period (if any) determined pursuant to sec17 tion 1145(b) with respect to such alien’’;

18 (B) in subsection (b)—

19 (i) in paragraph (1)(B)(ii), by striking

20 ‘‘section 402(a)(7)’’ and inserting ‘‘section

21 402(d)’’;

22 (ii) in paragraph (2)(A), by striking

23 ‘‘aid’’ and inserting ‘‘assistance’’; and

24 (iii) in paragraph (2)(B), by striking

25 ‘‘$1,500’’ and inserting ‘‘$2,000’’; and
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1 (C) in subsection (c)(1), in the first and

2 second sentences, and in subsection (d)—

3 (i) by striking ‘‘aid’’ each place it ap4 pears and inserting ‘‘assistance’’; and

5 (ii) by striking ‘‘during the period of

6 three years after his or her entry into the

7 United States’’ and inserting ‘‘during the

8 period (if any) determined pursuant to sec9 tion 1145(b) with respect to such alien’’.

10 (2) SUPPLEMENTAL SECURITY INCOME.—

11 (A) Section 1621(a) of the Social Security

12 Act is amended by striking ‘‘for a period of 5

13 years after the individual’s entry into the

14 United States’’ and inserting ‘‘during the pe15 riod (if any) determined pursuant to section

16 1145(b) with respect to such alien’’.

17 (B) Section 1621(c) of the Social Security

18 Act is amended by striking ‘‘during the period

19 of 5 years after such alien’s entry into the

20 United States’’ and inserting ‘‘during the pe21 riod (if any) determined pursuant to section

22 1145 with respect to such alien’’.

23 (C) Section 1621(d) of the Social Security

24 Act is amended by striking ‘‘during the period

25 of 5 years after entry into the United States’’
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1 and inserting ‘‘during the period (if any) deter2 mined pursuant to section 1145(b) with respect

3 to such alien’’.

4 (D) Section 1621(e) of the Social Security

5 Act is amended by striking ‘‘during the period

6 of 5 years after such alien’s entry into the

7 United States’’ and inserting ‘‘during the pe8 riod (if any) determined pursuant to section

9 1145(b) with respect to such alien’’.

10 (3) FOOD STAMPS.—Section 5(i) of the Food

11 Stamp Act of 1977 is amended—

12 (A) in paragraph (1), by striking ‘‘for a

13 period of three years after the individual’s entry

14 into the United States’’ and inserting ‘‘for the

15 period (if any) determined pursuant to section

16 1145(b) of the Social Security Act with respect

17 to such alien’’;

18 (B) in paragraph (2)(B)(ii), by striking

19 ‘‘$1,500’’ and inserting ‘‘$2,000’’;

20 (C) in paragraph (2)(C), by striking ‘‘dur21 ing the period of three years after entry into

22 the United States’’ and inserting ‘‘during the

23 period (if any) determined pursuant to section

24 1145(b) of the Social Security Act with respect

25 to such alien’’; and
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1 (D) in paragraph (2)(D), by striking ‘‘dur2 ing the period of three years after such alien’s

3 entry into the United States’’ and inserting

4 ‘‘during the period (if any) determined pursu5 ant to section 1145(b) of the Social Security

6 Act with respect to such alien’’.

7 (c) STATE AND LOCAL PROGRAMS.—A State, or a po8 litical subdivision of a State, may provide that an alien

9 is not eligible for any program of cash assistance (other

10 than assistance related to pre-school, elementary, or sec11 ondary education) based on need that is furnished by such

12 State or political subdivision for any month if such alien

13 has been determined to be ineligible for such month for

14 benefits under—

15 (1) the program of temporary employment as16 sistance under part A of title IV of the Social Secu17 rity Act, as a result of the application of section 407

18 of such Act;

19 (2) the program of supplemental security in20 come under title XVI of the Social Security Act, as

21 a result of the application of section 1611(e)(4) or

22 1621 of such Act; or

23 (3) the Food Stamp Act of 1977, as a result of

24 the application of section 5(i) or 6(i) of such Act.

25 (d) EFFECTIVE DATE.—
391

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1 (1) The amendments made by this section are

2 effective with respect to benefits under the program

3 of temporary employment assistance authorized by

4 part A of title IV of the Social Security Act, the pro5 gram of supplemental security income authorized by

6 title XVI of the Social Security Act, and the pro7 gram authorized by the Food Stamp Act of 1977,

8 payable for months beginning on or after the date

9 60 days after enactment of this Act, on the basis

10 of—

11 (A) an application filed after such date, or

12 (B) an application filed on or before such

13 date by or on behalf of an individual subject to

14 the provisions of section 1621(a) or section 415

15 (which is renumbered as section 407 by sub16 section (b) of this section and section 102 of

17 this Act, effective as of October 1, 1996) of the

18 Social Security Act or section 5(i)(1) of the

19 Food Stamp Act of 1977 (as the case may be)

20 on such date.

21 SEC. 403. CONTINUED LIABILITY OF ALIEN AND SPONSOR

22 FOR OVERPAYMENTS.

23 (a) TEMPORARY EMPLOYMENT ASSISTANCE.—Sec24 tion 407(d) (as redesignated and amended by section

25 402(b) of this Act) is amended by adding at the end the
392

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1 following sentence: ‘‘If an individual who is an alien sub2 ject to this subsection is naturalized as a citizen of the

3 United States, such naturalization shall have no effect

4 upon the continued application of this subsection to such

5 individual or to such individual’s sponsor.’’.

6 (b) SUPPLEMENTAL SECURITY INCOME.—Section

7 1621(e) is amended by adding at the end the following

8 sentence: ‘‘If an individual who is an alien subject to this

9 subsection is naturalized as a citizen of the United States,

10 such naturalization shall have no effect upon the contin11 ued application of this subsection to such individual or to

12 such individual’s sponsor.’’.

13 (c) FOOD STAMPS.—Section 5(i)(2)(D) of the Food

14 Stamp Act of 1977 is amended by adding at the end the

15 following sentence: ‘‘If an individual who is an alien sub16 ject to this subsection is naturalized as a citizen of the

17 United States, such naturalization shall have no effect

18 upon the continued application of this subsection to such

19 individual or to such individual’s sponsor.’’.

20 SEC. 404. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

21 SUPPORT.

22 (a) SPONSOR’S AFFIDAVIT OF SUPPORT.—Section

23 213 of the Immigration and Nationality Act (8 U.S.C.

24 1183) is amended—
393

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1 (1) in the heading, by striking ‘‘ON GIVING

2 BOND’’ and inserting ‘‘UPON PROVISION OF BOND OR

3 GUARANTEE OF FINANCIAL RESPONSIBILITY’’;

4 (2) by designating the existing matter as sub5 section (a); and

6 (3) by adding at the end a new subsection as

7 follows:

8 ‘‘(b)(1) ATTORNEY GENERAL’S DISCRETION TO

9 ADMIT ALIEN.—An alien excludable under paragraph (4)

10 of section 212(a) may, if otherwise admissible, be admitted

11 in the discretion of the Attorney General upon a finding

12 by the Attorney General that—

13 ‘‘(A) the alien has received a guarantee of fi14 nancial responsibility in such form as may be pre15 scribed pursuant to paragraph (4) and meeting the

16 conditions described in paragraph (2); and

17 ‘‘(B) taking into consideration all relevant cir18 cumstances, it is reasonable to expect that the spon19 sor has the financial capacity to meet the obligations

20 of the guarantee.’’

21 ‘‘(2) SUBSTANCE OF GUARANTEE OF SUPPORT.—A

22 guarantee of financial responsibility for an alien must—

23 ‘‘(A) be signed in the presence of an immigra24 tion officer or consular officer (or in the presence of

25 a notary public) by an individual (referred to in this
394

S 1841 IS

1 subsection as the ‘sponsor’) who is 18 years of age

2 or older, is of good moral character, and is a citizen

3 or national of the United States or an alien lawfully

4 admitted for permanent residence domiciled in any

5 of the several States of the United States, the Dis6 trict of Columbia, or any territory or possession of

7 the United States; and

8 ‘‘(B) provide that the sponsor enters into a le9 gally binding commitment to furnish to or on behalf

10 of the alien financial support sufficient to meet the

11 alien’s basic subsistence needs until the alien

12 achieves United States citizenship through natu13 ralization pursuant to the Immigration and Nation14 ality Act.

15 ‘‘(3) ENFORCEABILITY OF GUARANTEE OF SUP16 PORT.—Any guarantee of financial support executed on

17 behalf of an alien pursuant to this subsection must be en18 forceable against the sponsor and may be enforced against

19 the sponsor in a civil suit brought by the sponsored alien

20 or by the Federal government, any State, district, terri21 tory, or possession of the United States (or any subdivi22 sion of such State, district, territory, or possession of the

23 United States) which provides benefits to the alien in any

24 court of competent jurisdiction, except that no action may
395

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1 be brought against a sponsor if the sponsor is receiving

2 cash or food stamp benefits (as defined in paragraph (7)).

3 ‘‘(4) FORM OF GUARANTEE OF SUPPORT.—Not later

4 than 90 days after the date of enactment of this section,

5 the Secretary of State, the Attorney General, the Sec6 retary of Health and Human Services, the Secretary of

7 Agriculture, and the Commissioner of Social Security shall

8 jointly establish the form of the guarantee of financial

9 support described in this section.

10 ‘‘(5) LIMITATION OF LIABILITY.—The guarantee of

11 financial support established pursuant to this section shall

12 only apply with respect to cash or food stamp benefits (as

13 defined in paragraph (7)) provided to an alien before the

14 earliest of the following:

15 ‘‘(A) CITIZENSHIP.—The date the alien be16 comes a citizen of the United States.

17 ‘‘(B) VETERAN.—The first date the alien is de18 scribed in section 1145(b)(2)(B) of the Social Secu19 rity Act.

20 ‘‘(C) PAYMENT OF SOCIAL SECURITY TAXES.—

21 The first date as of which the condition described in

22 section 1145(b)(2)(C) of the Social Security Act is

23 met with respect to the alien.
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1 ‘‘(D) ELDERLY ALIEN.—The first date the

2 alien is described in section 1145(b)(2)(A) of the So3 cial Security Act.

4 ‘‘(6) NONAPPLICATION DURING CERTAIN PERIODS.—

5 The contract established by this section shall not apply

6 with respect to cash or food stamp benefits (as defined

7 in paragraph (7)) provided to an alien during any period

8 in which the sponsor is receiving such benefits.

9 ‘‘(7) DEFINITION OF CASH OR FOOD STAMP BENE10 FITS.—For the purposes of this section the term ‘cash or

11 food stamp benefits’ means Federal assistance provided

12 under title IV–A or XVI of the Social Security Act, under

13 the Food Stamp Act of 1977, or under similar programs

14 of a State or a political subdivision of a State that provides

15 direct cash (or cash equivalent) assistance for the purpose

16 of income maintenance and in which the eligibility of an

17 individual, household, or family unit for such benefits

18 under the program, or the amount of such benefits, or

19 both, are determined on the basis of income, resources,

20 or financial need of the individual, household, or unit.

21 Such term does not include any program insofar as it pro22 vides medical, housing, education, job training, food, or

23 in-kind assistance or social services.’’.

24 (b) EFFECTIVE DATE.—The amendments made by

25 this section apply to affidavits of support executed on or
397

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1 after the date 90 days after the date of establishment of

2 the form for such affidavits under section 213(b)(4) of the

3 Immigration and Nationality Act, as added by this section.

4 TITLE V—SUPPLEMENTAL SECURITY

5 INCOME REFORMS

6 SEC. 501. DEFINITION AND ELIGIBILITY RULES.

7 (a) DEFINITION OF CHILDHOOD DISABILITY.—Sec8 tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is amended—

9 (1) in subparagraph (A), by striking ‘‘An indi10 vidual’’ and inserting ‘‘Except as provided in sub11 paragraph (C), an individual’’;

12 (2) in subparagraph (A), by striking ‘‘(or, in

13 the case of an individual under the age of 18, if he

14 suffers from any medically determinable physical or

15 mental impairment of comparable severity)’’;

16 (3) by redesignating subparagraphs (C) through

17 (H) as subparagraphs (D) through (I), respectively;

18 (4) by inserting after subparagraph (B) the fol19 lowing new subparagraph:

20 ‘‘(C) An individual under the age of 18 shall be con21 sidered disabled for the purposes of this title if that indi22 vidual has a medically determinable physical or mental im23 pairment, which results in marked and severe functional

24 limitations, and which can be expected to result in death

25 or which has lasted or can be expected to last for a contin-
398

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1 uous period of not less than 12 months. Notwithstanding

2 the preceding sentence, no individual under the age of 18

3 who engages in substantial gainful activity (determined in

4 accordance with regulations prescribed pursuant to sub5 paragraph (E)) may be considered to be disabled.’’; and

6 (5) in subparagraph (F), as so redesignated by

7 paragraph (3) of this subsection, by striking ‘‘(D)’’

8 and inserting ‘‘(E)’’.

9 (b) CHANGES RESPECTING CHILDHOOD SSI REGU10 LATIONS.—

11 (1) MODIFICATION TO MEDICAL CRITERIA FOR

12 EVALUATION OF MENTAL AND EMOTIONAL DIS13 ORDERS.—The Commissioner of Social Security

14 shall modify sections 112.00C.2. and

15 112.02B.2.c.(2) of appendix 1 to subpart P of part

16 404 of title 20, Code of Federal Regulations, to

17 eliminate references to maladaptive behavior in the

18 domain of personal/behavioral function.

19 (2) DISCONTINUANCE OF INDIVIDUALIZED

20 FUNCTIONAL ASSESSMENT.—The Commissioner of

21 Social Security shall discontinue the individualized

22 functional assessment for children set forth in sec23 tions 416.924d and 416.924e of title 20, Code of

24 Federal Regulations.
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1 (c) CONFORMING AMENDMENT TO MEDICAL IM2 PROVEMENT REVIEW STANDARD AS IT APPLIES TO INDI3 VIDUALS UNDER THE AGE OF 18.—

4 (1) IN GENERAL.—Section 1614(a)(4) (42

5 U.S.C. 1382c(a)(4)) is amended—

6 (A) by redesignating subclauses (I) and

7 (II) of clauses (i) and (ii) of subparagraph (B)

8 as subclauses (aa) and (bb), respectively;

9 (B) by redesignating clauses (i) and (ii) of

10 subparagraphs (A) and (B) as subclauses (I)

11 and (II), respectively;

12 (C) by redesignating subparagraphs (A)

13 through (D) as clauses (i) through (iv), respec14 tively, and by moving their left hand margin 2

15 ems to the right;

16 (D) by inserting before clause (i) (as redes17 ignated by subparagraph (C)) the following:

18 ‘‘(A) in the case of an individual who is

19 age 18 or older—’’;

20 (E) at the end of subparagraph (A)(iv) (as

21 redesignated by subparagraphs (C) and (D)),

22 by striking the period and inserting ‘‘; or’’;

23 (F) by inserting after and below subpara24 graph (A)(iv) (as so redesignated) the following:
400

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1 ‘‘(B) in the case of an individual who is

2 under the age of 18—

3 ‘‘(i) substantial evidence which dem4 onstrates that there has been any medical

5 improvement in the individual’s impair6 ment or combination of impairments, and

7 that such impairment or combination of

8 impairments no longer results in marked

9 and severe functional limitations; or

10 ‘‘(ii) substantial evidence which dem11 onstrates that, as determined on the basis

12 of new or improved diagnostic techniques

13 or evaluations, the individual’s impairment

14 or combination of impairments is not as

15 disabling as it was considered to be at the

16 time of the most recent prior decision that

17 he or she was under a disability or contin18 ued to be under a disability, and such im19 pairment or combination of impairments

20 does not result in marked and severe func21 tional limitations; or

22 ‘‘(iii) substantial evidence (which may

23 be evidence on the record at the time any

24 prior determination of eligibility for bene25 fits based on disability was made, or newly
401

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1 obtained evidence which relates to that de2 termination) which demonstrates that a

3 prior determination was in error.’’; and

4 (G) in the first sentence following subpara5 graph (B) (as added by subparagraph (F)),

6 by—

7 (i) inserting ‘‘(i)’’ before ‘‘to restore’’;

8 and

9 (ii) inserting ‘‘, or (ii) in the case of

10 an individual under the age of 18, to elimi11 nate or improve the individual’s impair12 ment or combination of impairments so

13 that it no longer results in marked and se14 vere functional limitations’’ before the pe15 riod.

16 (2) EFFECTIVE DATE.—The amendments made

17 by this subsection are effective upon enactment.

18 (d) EFFECTIVE DATE; REGULATIONS; APPLICATION

19 TO CURRENT RECIPIENTS.—

20 (1) IN GENERAL.—Except where otherwise

21 specified, subsections (a) and (b) apply to applica22 tions filed on or after the date of the enactment of

23 this Act, without regard to whether implementing

24 regulations have been issued.
402

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1 (2) REGULATIONS.—The Commissioner of So2 cial Security shall issue regulations implementing

3 subsections (a), (b), and (c).

4 (3) APPLICATION TO CURRENT RECIPIENTS.—

5 (A) ELIGIBILITY DETERMINATIONS.—Be6 ginning on January 1, 1997, and ending not

7 later than January 1, 1998, the Commissioner

8 of Social Security shall redetermine the eligi9 bility of any individual under age 18 who is eli10 gible for supplemental security income benefits

11 based on a disability under title XVI of the So12 cial Security Act as of the date of the enact13 ment of this Act and whose eligibility for such

14 benefits may terminate by reason of subsections

15 (a) or (b) of this section. With respect to any

16 redetermination under this subparagraph—

17 (i) section 1614(a)(4) of the Social

18 Security Act (42 U.S.C. 1382c(a)(4)) shall

19 not apply;

20 (ii) the Commissioner of Social Secu21 rity shall apply the eligibility criteria for

22 new applicants for benefits under title XVI

23 of such Act;

24 (iii) the Commissioner shall give such

25 redetermination priority over all continuing
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1 eligibility reviews and other reviews under

2 such title; and

3 (iv) such redetermination shall be

4 counted as a review or redetermination

5 otherwise required to be made under sec6 tion 208 of the Social Security Independ7 ence and Program Improvements Act of

8 1994 or any other provision of title XVI

9 of the Social Security Act.

10 (B) GRANDFATHER PROVISION.—Sub11 sections (a) and (b) of this section and the re12 determination under subparagraph (A) of this

13 paragraph only apply with respect to the bene14 fits of an individual described in subparagraph

15 (A) for months beginning on or after January

16 1, 1998.

17 (C) NOTICE.—Not later than January 1,

18 1997, the Commissioner of Social Security shall

19 notify an individual described in subparagraph

20 (A) of the provisions of this paragraph.

21 SEC. 502. ELIGIBILITY REDETERMINATIONS AND CONTINU22 ING DISABILITY REVIEWS.

23 (a) CONTINUING DISABILITY REVIEWS RELATING TO

24 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.
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1 1382c(a)(3)(H)), as so redesignated by section 501(a)(3)

2 of this Act, is amended—

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

4 (2) by adding at the end the following new

5 clause:

6 ‘‘(ii)(I) Not less frequently than once every 3 years,

7 the Commissioner shall review in accordance with para8 graph (4) the continued eligibility for benefits under this

9 title of each individual who has not attained 18 years of

10 age and is eligible for such benefits by reason of an im11 pairment (or combination of impairments) which may im12 prove (or, which is unlikely to improve, at the option of

13 the Commissioner).

14 ‘‘(II) A parent or guardian of a recipient whose case

15 is reviewed under this clause shall present, at the time

16 of review, evidence demonstrating that the recipient is,

17 and has been, receiving treatment, to the extent consid18 ered medically necessary and available, of the condition

19 which was the basis for providing benefits under this

20 title.’’.

21 (b) DISABILITY ELIGIBILITY REDETERMINATIONS

22 REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS

23 OF AGE.—

24 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

25 U.S.C. 1382c(a)(3)(H)), as so redesignated by sec-
405

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1 tion 501(a)(3) of this Act and as amended by sub2 section (a) of this section, is amended by adding at

3 the end the following new clause:

4 ‘‘(iii) If an individual is eligible for benefits under this

5 title by reason of disability for the month preceding the

6 month in which the individual attains the age of 18 years,

7 the Commissioner shall redetermine such eligibility—

8 ‘‘(I) during the 1-year period beginning on the

9 individual’s 18th birthday; and

10 ‘‘(II) by applying the criteria used in determin11 ing the initial eligibility for applicants who have at12 tained the age of 18 years.

13 With respect to a redetermination under this clause, para14 graph (4) shall not apply and such redetermination shall

15 be considered a substitute for a review or redetermination

16 otherwise required under any other provision of this sub17 paragraph during that 1-year period.’’.

18 (2) CONFORMING REPEAL.—Section 207 of the

19 Social Security Independence and Program Improve20 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

21 1516) is repealed.

22 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

23 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)

24 (42 U.S.C. 1382c(a)(3)(H)), as so redesignated by section

25 501(a)(3) of this Act and as amended by subsections (a)
406

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1 and (b) of this section, is amended by adding at the end

2 the following new clause:

3 ‘‘(iv)(I) Not later than 12 months after the first

4 month of eligibility based on an application of an in5 dividual for benefits under this title, the Commis6 sioner shall review in accordance with paragraph (4)

7 the continuing eligibility for benefits by reason of

8 disability of such individual whose low birth weight

9 is a contributing factor material to the Commis10 sioner’s determination that the individual is dis11 abled.

12 ‘‘(II) A review under subclause (I) shall be con13 sidered a substitute for a review otherwise required

14 under any other provision of this subparagraph dur15 ing that 12-month period.

16 ‘‘(III) A parent or guardian of a recipient

17 whose case is reviewed under this clause shall

18 present, at the time of review, evidence demonstrat19 ing that the recipient is, and has been, receiving

20 treatment, to the extent considered medically nec21 essary and available, for the condition which was the

22 basis for proving benefits under this title.’’.

23 (d) EFFECTIVE DATE.—The amendments made by

24 this section apply to benefits for months beginning on or

25 after the date of the enactment of this Act, without regard
407

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1 to whether regulations have been issued to implement such

2 amendments.

3 SEC. 503. DEDICATED SAVINGS ACCOUNTS.

4 (a) IN GENERAL.—Section 1631(a)(2)(B) (42 U.S.C.

5 1383(a)(2)(B)) is amended by adding at the end the fol6 lowing:

7 ‘‘(xiv) A representative payee may pay any lump sum

8 payment equal to or greater than 6 times the Federal ben9 efit rate for the benefit of a child into a dedicated savings

10 account that must only be used to purchase for such child,

11 or an individual for whom such an account was established

12 prior to his attainment of age 18—

13 ‘‘(I) education and job skills training;

14 ‘‘(II) special equipment or housing modifica15 tions or both specifically related to, and required by

16 the nature of, the child’s disability; and

17 ‘‘(III) appropriate therapy and rehabilitation.’’.

18 (b) EXCLUSION OF DEDICATED SAVINGS AC19 COUNTS.—

20 (1) Section 1613(a) (42 U.S.C. 1382b(a)) is

21 amended—

22 (A) by striking ‘‘and’’ at the end of para23 graph (10),

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

25 paragraph (11) and inserting ‘‘; and’’, and
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1 (C) by inserting after paragraph (11) the

2 following:

3 ‘‘(12) the initial and any subsequent lump sum

4 payment deposited in, or interest credited to, a dedi5 cated savings account described in section

6 1631(a)(2)(B)(xiv), so long as such monies are being

7 used for a purpose listed in that section.’’.

8 (2) Section 1612(b) (42 U.S.C. 1382a(b)) is

9 amended:

10 (A) by striking ‘‘and’’ at the end of para11 graph (19),

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

13 paragraph (20) and inserting thereafter ‘‘and,’’,

14 and

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

16 following new paragraph:

17 ‘‘(21) interest earned on a dedicated savings ac18 count as described in section 1631(a)(2)(B)(xiv) so

19 long as monies in such account are used for a pur20 pose listed in such section.’’.

21 (c) PENALTIES FOR MISUSE OF FUNDS.—Knowing

22 and willful use of funds in a dedicated savings account

23 by the representative payee for any purpose other than

24 those listed in subsection (a) constitutes fraud and is sub25 ject to penalties under section 1632.
409

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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section apply to payments made after the date of en3 actment of this Act.

4 SEC. 504. DENIAL OF SSI BENEFITS BY REASON OF DISABIL5 ITY TO DRUG ADDICTS AND ALCOHOLICS.

6 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

7 1382c(a)(3)), as amended by section 501(a)(3) of this Act,

8 is amended by adding at the end the following:

9 ‘‘(J) Notwithstanding subparagraph (A), an individ10 ual shall not be considered to be disabled for purposes of

11 this title if alcoholism or drug addiction would (but for

12 this subparagraph) be a contributing factor material to

13 the Commissioner’s determination that the individual is

14 disabled.’’.

15 (b) CONFORMING AMENDMENTS.—

16 (1) Section 1611(e) (42 U.S.C. 1382(e)) is

17 amended by striking paragraph (3).

18 (2) Section 1631(a)(2)(A)(ii) (42 U.S.C.

19 1383(a)(2)(A)(ii)) is amended—

20 (A) by striking ‘‘(I)’’; and

21 (B) by striking subclause (II).

22 (3) Section 1631(a)(2)(B) (42 U.S.C.

23 1383(a)(2)(B)) is amended—

24 (A) by striking clause (vii);
410

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1 (B) in clause (viii), by striking ‘‘(ix)’’ and

2 inserting ‘‘(viii)’’;

3 (C) in clause (ix)—

4 (i) in subclause (I), by striking

5 ‘‘(viii)’’; and inserting ‘‘(vii)’’; and

6 (ii) in subclause (II),

7 (I) by striking the comma after

8 ‘‘incompetent’’ and inserting ‘‘or’’;

9 and

10 (II) by striking all that follows

11 ‘‘15 years’’ and inserting a period;

12 (D) in clause (xiii)—

13 (i) by striking ‘‘(xii)’’ and inserting

14 ‘‘(xi)’’; and

15 (ii) by striking ‘‘(xi)’’ and inserting

16 ‘‘(x)’’; and

17 (E) by redesignating clauses (viii) through

18 (xiv) as clauses (vii) through (xiii), respectively.

19 (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

20 1383(a)(2)(D)(i)(II)) is amended by striking all that

21 follows ‘‘$25.00 per month’’ and inserting a period.

22 (5) Section 1634 (42 U.S.C. 1383c) is amended

23 by striking subsection (e).
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1 (6) Section 201(c)(1) of the Social Security

2 Independence and Program Improvements Act of

3 1994 (42 U.S.C. 425 note) is amended—

4 (A) by striking ‘‘—’’ and all that follows

5 through ‘‘(A)’’ the 1st place such term appears;

6 (B) by striking ‘‘and’’ the 3rd place such

7 term appears;

8 (C) by striking subparagraph (B);

9 (D) by striking ‘‘either subparagraph (A)

10 or subparagraph (B)’’ and inserting ‘‘the pre11 ceding sentence’’; and

12 (E) by striking ‘‘subparagraph (A) or (B)’’

13 and inserting ‘‘the preceding sentence’’.

14 (c) EFFECTIVE DATE.—(1) The amendments made

15 by this section apply to applications filed on or after the

16 date of the enactment of this Act, without regard to

17 whether regulations have been issued to implement such

18 amendments.

19 (2) APPLICATION AND NOTICE TO CURRENT RECIPI20 ENTS.—Notwithstanding any other provision of law, in the

21 case of an individual who is eligible for supplemental secu22 rity income benefits under title XVI of the Social Security

23 Act as of the date of the enactment of this Act and whose

24 eligibility for such benefits would terminate by reason of

25 the amendments made by this section, such amendments
412

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1 shall apply with respect to the benefits of such individual

2 for months beginning on or after January 1, 1997, and

3 the Commissioner of Social Security shall so notify the in4 dividual not later than 90 days after the date of the enact5 ment of this Act. As used in the preceding sentence, the

6 phrase ‘‘supplemental security income benefits under title

7 XVI’’ includes supplementary payments pursuant to an

8 agreement for federal administration under section

9 1616(a) of the Social Security Act and payments pursuant

10 to an agreement for federal administration under section

11 212(b) of Public Law 93–66.

12 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

13 SUBSTANCE ABUSE TREATMENT PROGRAMS.—

14 (1) IN GENERAL.—Out of any money in the

15 Treasury not otherwise appropriated, there are here16 by appropriated to supplement State and Tribal pro17 grams funded under section 1933 of the Public

18 Health Service Act (42 U.S.C. 300x–33),

19 $50,000,000 for each of the fiscal years 1997 and

20 1998.

21 (2) ADDITIONAL FUNDS.—Amounts appro22 priated under paragraph (1) shall be in addition to

23 any funds otherwise appropriated for allotments

24 under section 1933 of the Public Health Service Act
413

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1 (42 U.S.C. 300x–33) and shall be allocated pursuant

2 to that section.

3 (3) USE OF FUNDS.—A State or Tribal govern4 ment receiving an allotment under this subsection

5 shall consider as priorities, for purposes of expend6 ing funds allotted under this subsection, activities

7 relating to the treatment of the abuse of alcohol and

8 other drugs.

9 SEC. 505. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI10 VIDUALS FOUND TO HAVE FRAUDULENTLY

11 MISREPRESENTED RESIDENCE IN ORDER TO

12 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

13 MORE STATES.

14 Section 1632 (42 U.S.C. 1383a) is amended by add15 ing at the end the following:

16 ‘‘(c)(1) If any individual is convicted of fraudulently

17 misrepresenting residence in order to obtain benefits si18 multaneously in two or more States, then the court may,

19 in addition to all other penalties provided by law, impose

20 a penalty that an individual shall not be considered an

21 eligible individual for purposes of this title during the 10-

22 year period beginning on the date the individual is found

23 by a State to have made, or is convicted in Federal or

24 State court of having made, a fraudulent statement or rep25 resentation with respect to the place of residence of the
414

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1 individual in order to receive benefits simultaneously from

2 2 or more States under programs that are funded under

3 part A of title IV, or title XIX of this Act, the consolidated

4 program of food assistance under title III of the Work

5 First and Personal Responsibility Act of 1996, or the

6 Food Stamp Act of 1977 (as in effect before the effective

7 date of title III of the Work First and Personal Respon8 sibility Act of 1996), or benefits in 2 or more States under

9 the supplemental security income program under title XVI

10 of this Act.

11 ‘‘(2) As soon as practicable after an additional pen12 alty has, pursuant to paragraph (1), been imposed with

13 respect to any individual, an official of a court making

14 such imposition shall notify the Commissioner of such im15 position.

16 ‘‘(3) If any individual with respect to whom an addi17 tional penalty has been imposed pursuant to paragraph

18 (1) is granted a pardon by the President of the United

19 States, such additional penalty shall not apply for any

20 month beginning after the date on which such pardon was

21 granted.’’.
415

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1 SEC. 506. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

2 AND PROBATION AND PAROLE VIOLATORS.

3 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

4 1382(e)), as amended by section 504(b)(1) of this Act,

5 is amended by inserting after paragraph (2) the following:

6 ‘‘(3) A court of law may, in addition to all other

7 penalties provided by law, impose on the individual

8 ineligibility for benefits under this title with respect

9 to any month if, throughout the month, the person

10 is—

11 ‘‘(A) fleeing custody or confinement after

12 conviction, under the laws of the place from

13 which the person flees, for a crime which is a

14 felony under the laws of the place from which

15 the person flees, or which, in the case of the

16 State of New Jersey, is a high misdemeanor

17 under the laws of such State; or

18 ‘‘(B) violating a condition of probation or

19 parole imposed under Federal or State law.

20 ‘‘(4) As soon as practicable after the additional

21 penalty has been imposed pursuant to paragraph (3)

22 with respect to any individual, an official of the

23 court making such imposition shall notify the Com24 missioner of such imposition.’’.

25 (b) EXCHANGE OF INFORMATION WITH LAW EN26 FORCEMENT AGENCIES.—Section 1631(e) (42 U.S.C.
416

S 1841 IS

1 1383(e)) is amended by inserting after paragraph (3) the

2 following:

3 ‘‘(4) Notwithstanding any other provision of

4 law (other than section 6103 of the Internal Reve5 nue Code of 1986), the Commissioner shall furnish

6 any Federal, State, or local law enforcement agency,

7 upon the written request of the head of the agency,

8 with the current address of any recipient of benefits

9 under this title, if the agency furnishes the Commis10 sioner with the name of the recipient, and other

11 identifying information as required by the Commis12 sioner reasonably to establish the unique identity of

13 the recipient, and a statement from a court of com14 petent jurisdiction and notifies the Commissioner

15 that the recipient—

16 ‘‘(A) has been found by a court of com17 petent jurisdiction to be fleeing to avoid pros18 ecution, or custody or confinement after convic19 tion, under the laws of the place from which the

20 person flees, for a crime, or an attempt to com21 mit a crime, which is a felony under the laws

22 of the place from which the person flees, or

23 which, in the case of the State of New Jersey,

24 is a high misdemeanor under the laws of such

25 State; or
417

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1 ‘‘(B) has been found by a court of com2 petent jurisdiction to be violating a condition of

3 probation or parole imposed for a crime as in

4 (A) above under Federal or State law.’’.

5 SEC. 507. ALLOWANCE UNDER THE DISCRETIONARY

6 SPENDING LIMITS FOR INCREASED EXPENDI7 TURES FOR CONTINUING DISABILITY RE8 VIEWS AND DISABILITY ELIGIBILITY RE9 DETERMINATIONS.

10 (a) Section 251(b)(2) of the Balanced Budget and

11 Emergency Deficit Control Act of 1985 is amended by

12 adding the following new subparagraph:

13 ‘‘(H) CONTINUING DISABILITY REVIEWS AND

14 DISABILITY ELIGIBILITY REDETERMINATIONS.—(i)

15 When an appropriations Act is enacted for fiscal

16 year 1996, 1997, 1998, 1999, 2000, 2001, or 2002

17 that specifies, under the heading ‘‘Limitation on Ad18 ministrative Expenses’’ for the Social Security Ad19 ministration, an amount for expenses for continuing

20 disability reviews or disability eligibility redetermina21 tions conducted pursuant to section 221(i) of the So22 cial Security Act (42 U.S.C. 421(i)), section

23 1614(a)(3)(H) of the Social Security Act (42 U.S.C.

24 1382c(a)(3)(H)), section 1633 of the Social Security

25 Act (42 U.S.C. 1383(b), or section 208 of the Social
418

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1 Security Independence and Program Improvements

2 Act of 1994 (Public Law 103–296), to the extent

3 that appropriations are enacted that provide new

4 budget authority, provide additional obligations limi5 tation, or result in additional outlays, the discre6 tionary spending limits for that fiscal year under

7 section 601(a)(2) of the Congressional Budget Act

8 of 1974 shall be adjusted by the new budget author9 ity and the additional outlays for that purpose, but

10 shall not exceed the amounts set forth below—

11 ‘‘(I) for fiscal year 1996, $60,000,000 in

12 new budget authority and additional obligations

13 limitation and $60,000,000 in additional out14 lays;

15 ‘‘(II) for fiscal year 1997, $260,000,000 in

16 new budget authority and additional obligations

17 limitation and $250,000,000 in additional out18 lays;

19 ‘‘(III) for fiscal year 1998, $475,000,000

20 in new budget authority and additional obliga21 tions limitation and $460,000,000 in additional

22 outlays;

23 ‘‘(IV) for fiscal year 1999, $715,000,000

24 in new budget authority and additional obliga-
419

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1 tions limitation and $700,000,000 in additional

2 outlays;

3 ‘‘(V) for fiscal year 2000, $760,000,000 in

4 new budget authority and additional obligations

5 limitation and $760,000,000 in outlays;

6 ‘‘(VI) for fiscal year 2001, $715,000,000

7 in new budget authority and additional obliga8 tions limitation and $715,000,000 in outlays;

9 ‘‘(VII) for fiscal year 2002, $665,000,000

10 in new budget authority and additional obliga11 tions limitation and $665,000,000 in outlays;

12 ‘‘(ii) As used in this subparagraph—

13 ‘‘(I) the term ‘new budget authority’ shall

14 mean budget authority, in any fiscal year, in

15 excess of $100 million;

16 ‘‘(II) the term ‘additional obligations limi17 tation’ shall mean obligations limitation, in any

18 fiscal year, in excess of $100 million; and

19 ‘‘(III) the term ‘additional outlays’ shall

20 mean outlays, in any fiscal year, in excess of

21 $200 million.’’.

22 (b) Section 606 of the Congressional Budget and Im23 poundment Control Act of 1974 is amended by adding the

24 following new subsection:
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1 ‘‘(e) DISABILITY REVIEW AND ELIGIBILITY REDE2 TERMINATION ADJUSTMENT.—(1) For purposes of points

3 of order under this Act and concurrent resolutions on the

4 budget, when the Appropriations Committee reports an

5 appropriations measure for fiscal year 1996, 1997, 1988,

6 1999, 2000, 2001, or 2002 that specifies, under the head7 ing ‘Limitation on Administrative Expenses’ for the Social

8 Security Administration, an amount for expenses for con9 tinuing disability reviews or disability eligibility redeter10 minations pursuant to section 221(i) of the Social Security

11 Act (42 U.S.C. 421(i)), section 1614(a)(3)(H) of the So12 cial Security Act (42 U.S.C. 1382c(a)(3)(H)), section

13 1633 of the Social Security Act (42 U.S.C. 1383b), or sec14 tion 208 of the Social Security Independence and Program

15 Improvements Act of 1994 (Public Law 103–296), or

16 when a conference committee submits a conference report

17 thereon—

18 ‘‘(A) the discretionary spending limits for that

19 fiscal year—

20 ‘‘(i) under section 601(a)(2), or

21 ‘‘(ii) as set forth in the most recently

22 adopted concurrent resolution on the budget;

23 ‘‘(B) the allocations to the Committee on Ap24 propriations of the Senate and the House for that

25 fiscal year under sections 302(a) and 602(a); and
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1 ‘‘(C) the appropriate budgetary aggregates for

2 that fiscal year in the most recently adopted concur3 rent resolution on the budget

4 shall be adjusted in accordance with paragraph (2).

5 ‘‘(2) ADJUSTMENT OF BUDGETARY LEVELS.—The

6 adjustments required by paragraph (1) shall be made by

7 the Chairman of the Committee on the Budget of the Sen8 ate or the House of Representatives (as the case may be)

9 and shall reflect the new budget authority and the addi10 tional outlays for continuing disability reviews and disabil11 ity eligibility redeterminations provided in that measure

12 or conference report, but shall not exceed the levels set

13 forth in section 251(b)(2)(H) of the Balanced Budget and

14 Emergency Deficit Control Act of 1985, for any year.

15 These adjusted discretionary spending limits, allocations,

16 and aggregates shall be considered the appropriate limits,

17 allocations, and aggregates for purposes of congressional

18 enforcement of this Act and concurrent budget resolutions

19 under this Act.

20 ‘‘(3) REPORTING REVISED SUBALLOCATIONS.—Fol21 lowing the adjustments made under paragraph (2), the

22 Committees on Appropriations of the Senate and the

23 House of Representatives may report appropriately revised

24 suballocations pursuant to sections 302(b) and 602(b) of

25 this Act to carry out this subsection.
422

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1 ‘‘(4) ADDITIONAL AMOUNTS.—As used in this sec2 tion, the term ‘new budget authority’ shall mean budget

3 authority for a fiscal year in excess of $100 million, and

4 the term ‘additional outlays’ shall mean outlays for a fiscal

5 year in excess of $200 million.’’.

6 SEC. 508. INSTALLMENT PAYMENT OF LARGE PAST-DUE

7 SUPPLEMENTAL SECURITY INCOME BENE8 FITS.

9 (a) IN GENERAL.—Section 1631(a) is amended by

10 adding at the end a new paragraph as follows:

11 ‘‘(10)(A) If an individual is eligible for past-due

12 monthly benefits under this title (which includes, for pur13 poses of this paragraph, State supplementary payments

14 made by the Commissioner pursuant to an agreement

15 under section 1616(a) of this title or section 212(b) of

16 Public Law 93–66) in an amount that (after any withhold17 ing for reimbursement to a State for interim assistance

18 under subsection (g)) equals or exceeds the product of—

19 ‘‘(i) twelve, and

20 ‘‘(ii) the maximum monthly benefit payable

21 under this title to an eligible individual (or, if appro22 priate, to an eligible individual and eligible spouse),

23 then the payment of such past-due benefits (after any such

24 reimbursement to a State) shall be made in installments

25 as provided in subparagraph (B).
423

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1 ‘‘(B)(i) The payment of past-due benefits subject to

2 this subparagraph shall be made in not to exceed three

3 installments that are made at six-month intervals.

4 ‘‘(ii) Except as provided in clause (iii), the amount

5 of each of the first and second installments may not exceed

6 an amount equal to the product of clauses (i) and (ii) of

7 subparagraph (A).

8 ‘‘(iii) In the case of an individual who has—

9 ‘‘(I) outstanding debt attributable to—

10 ‘‘(aa) food,

11 ‘‘(bb) clothing,

12 ‘‘(cc) shelter, or

13 ‘‘(dd) medically necessary services, supplies

14 or equipment, or medicine; or

15 ‘‘(II) current expenses or expenses anticipated

16 in the near term attributable to—

17 ‘‘(aa) medically necessary services, supplies

18 or equipment, or medicine; or

19 ‘‘(bb) the purchase of a home, and

20 such debt or expenses are not subject to reimbursement

21 by a public assistance program, the Secretary of Health

22 and Human Services under title XVIII, a State plan ap23 proved under title XIX, or any private entity legally liable

24 to provide payment pursuant to an insurance policy, pre25 paid plan, or other arrangement, the limitation specified
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1 in clause (ii) may be exceeded by an amount equal to the

2 total of such debt and expenses.

3 ‘‘(C) This paragraph shall not apply to any individual

4 who, at the time of the Commissioner’s determination that

5 such individual is eligible for the payment of past-due

6 monthly benefits under this title—

7 ‘‘(i) is afflicted with a medically determinable

8 impairment that is expected to result in death within

9 twelve months; or

10 ‘‘(ii) is ineligible for benefits under this title

11 and the Commissioner determines that such individ12 ual is likely to remain ineligible for the next 12

13 months.’’.

14 (b) CONFORMING AMENDMENT.—Section 1631(a)(1)

15 is amended by inserting ‘‘(subject to paragraph (10))’’ be16 fore ‘‘in such installments’’.

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

18 this section are effective with respect to past-due benefits

19 payable under title XVI of the Social Security Act (includ20 ing State supplementary payments made by the Commis21 sioner of Social Security pursuant to an agreement under

22 section 1616(a) of such Act or section 212(b) of Public

23 Law 93–66) after the third month following the month

24 in which this Act is enacted.
425

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1 SEC. 509. RECOVERY OF SUPPLEMENTAL SECURITY IN2 COME OVERPAYMENTS FROM SOCIAL SECU3 RITY BENEFITS.

4 ‘‘(a) IN GENERAL.—Title XI is amended by adding

5 after section 1145 (as added by section 401 and amended

6 by section 402 of this Act) a new section as follows:

7 ‘‘SEC. 1146. RECOVERY OF SSI OVERPAYMENTS FROM SO8 CIAL SECURITY BENEFITS.

9 ‘‘(a) IN GENERAL.—Whenever the Commissioner of

10 Social Security determines that more than the correct

11 amount of any payment has been made to any person

12 under the supplemental security income program author13 ized by title XVI of this Act (which includes, for purposes

14 of this section, State supplementary payments which are

15 made by the Commissioner under an agreement pursuant

16 to section 1616(a) of this Act or section 212(b) of Public

17 Law 93–66), and the Commissioner is unable to make

18 proper adjustment or recovery of the amount so incor19 rectly paid as provided in section 1631(b) of this Act, the

20 Commissioner (notwithstanding section 207 of this Act)

21 may recover the amount incorrectly paid by decreasing any

22 amount which is payable under the Federal Old-Age and

23 Survivors Insurance program or the Federal Disability In24 surance program authorized by title II of this Act to that

25 person or his estate.
426

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1 ‘‘(b) NO EFFECT ON SSI BENEFIT ELIGIBILITY OR

2 AMOUNT.—Notwithstanding sections 1611 (a) and (b) of

3 this Act, in any case in which the Commissioner takes ac4 tion in accordance with subsection (a) to recover an over5 payment from any person, neither that person, nor any

6 individual whose eligibility or benefit amount is deter7 mined by considering any part of that person’s income,

8 shall, as a result of such action—

9 ‘‘(1) become eligible under the program of sup10 plemental security income benefits under title XVI

11 of this Act, or

12 ‘‘(2) if such person or individual is already so

13 eligible, become eligible for increased benefits there14 under.’’.

15 (b) CONFORMING CHANGES.—

16 (1) Section 204 is amended by adding at the

17 end a new subsection as follows:

18 ‘‘(g) For payments which are adjusted or withheld

19 to recover an overpayment of supplemental security in20 come benefits paid under title XVI of this Act (including

21 State supplementary payments which were paid under an

22 agreement pursuant to section 1616(a) of this Act or sec23 tion 212(b) of Public Law 93–66), see section 1146.’’.

24 (2) Section 1631(b) is amended by adding at

25 the end a new paragraph as follows:
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1 ‘‘(5) For the recovery of overpayments of benefits

2 under this title from benefits payable under title II, see

3 section 1146.’’.

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

5 this section take effect upon the date of the enactment

6 of this Act and shall apply to overpayments outstanding

7 on or after such date.

8 SEC. 510. ALLOWANCE UNDER THE DISCRETIONARY

9 SPENDING LIMITS FOR ADMINISTRATIVE EX10 PENSES TO IMPLEMENT CHANGES TO SUP11 PLEMENTAL SECURITY INCOME PROGRAM.

12 (a) Section 251(b)(2) of the Balanced Budget and

13 Emergency Deficit Control Act of 1985, as amended by

14 section 507 of this Act, is further amended by adding at

15 the end the following new subparagraph:

16 ‘‘(I) ADMINISTRATIVE EXPENSES TO IMPLE17 MENT REFORMS TO SUPPLEMENTAL SECURITY IN18 COME PROGRAM MADE BY THE WORK FIRST AND

19 PERSONAL RESPONSIBILITY ACT OF 1996.—When an

20 appropriations Act is enacted for fiscal year 1996,

21 1997, or 1998 that specifies, under the heading

22 ‘Limitation on Administrative Expenses’ for the So23 cial Security Administration, an amount for ex24 penses to implement reforms to the supplemental se25 curity income program made by the Work First and
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1 Personal Responsibility Act of 1996, to the extent

2 that appropriations are enacted that provide budget

3 authority and result in outlays, the discretionary

4 spending limits for that fiscal year under section

5 601(a)(2) of the Congressional Budget Act of 1974

6 shall be adjusted by the budget authority and the

7 outlays for that purpose, but shall not exceed the

8 amounts set forth below—

9 ‘‘(i) for fiscal year 1996, $50,000,000 in

10 budget authority and $47,000,000 in outlays;

11 ‘‘(ii) for fiscal year 1997, $250,000,000 in

12 budget authority and $238,000,000 in outlays;

13 ‘‘(iii) for fiscal year 1998, $0 in budget au14 thority and $15,000,000 in outlays.’’.

15 (b) Section 606 of the Congressional Budget and Im16 poundment Control Act of 1974 is amended by adding the

17 following new subsection:

18 ‘‘(f) ADMINISTRATIVE EXPENSES TO IMPLEMENT

19 REFORMS TO SUPPLEMENTAL SECURITY INCOME PRO20 GRAM ADJUSTMENT.—(1) For purposes of points of order

21 under this Act and concurrent resolutions on the budget,

22 when the Appropriations Committee reports an appropria23 tions measure for fiscal year 1996, 1997, or 1998 that

24 specifies, under the heading ‘Limitation on Administrative

25 Expenses’ for the Social Security Administration, an
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1 amount for expenses to implement reforms to the supple2 mental security income program made by the Work First

3 and Personal Responsibility Act of 1996, or when a con4 ference committee submits a conference report thereon—

5 ‘‘(A) the discretionary spending limits for that

6 fiscal year—

7 ‘‘(i) under section 601(a)(2), or

8 ‘‘(ii) as set forth in the most recently

9 adopted concurrent resolution on the budget;

10 ‘‘(B) the allocations to the Committees on Ap11 propriations of the Senate and the House for that

12 fiscal year under sections 302(a) and 602(a); and

13 ‘‘(C) the appropriate budgetary aggregates for

14 that fiscal year in the most recently adopted concur15 rent resolution on the budget

16 shall be adjusted in accordance with paragraph (2).

17 ‘‘(2) ADJUSTMENT OF BUDGETARY LEVELS.—The

18 adjustments required by paragraph (1) shall be made by

19 the chairman of the Committee on the Budget of the Sen20 ate or the House of Representatives (as the case may be)

21 and shall reflect the budget authority and the outlays for

22 expenses to implement reforms to the supplemental secu23 rity income program made by the Work First and Per24 sonal Responsibility Act of 1996 provided in that measure

25 or conference report, but shall not exceed the levels set
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1 forth in section 251(b)(2)(I) of the Balanced Budget and

2 Emergency Deficit Control Act of 1985, for any year.

3 These adjusted discretionary spending limits, allocations,

4 and aggregates shall be considered the appropriate limits,

5 allocations, and aggregates for purposes of congressional

6 enforcement of this Act and concurrent budget resolutions

7 under this Act.

8 ‘‘(3) REPORTING REVISED SUBALLOCATIONS.—Fol9 lowing the adjustments made under paragraph (2), the

10 Committees on Appropriations of the Senate and the

11 House of Representatives may report appropriately revised

12 suballocations pursuant to sections 302(b) and 602(b) of

13 this Act to carry out this subsection.’’.

14 SEC. 511. REDUCTION IN CASH BENEFITS PAYABLE TO IN15 STITUTIONALIZED INDIVIDUALS WHOSE MED16 ICAL COSTS ARE COVERED BY PRIVATE IN17 SURANCE.

18 (a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.

19 1382(e)(1)(B)) is amended—

20 (1) by striking ‘‘or’’ after ‘‘XIX,’’; and

21 (2) by inserting ‘‘or, in the case of an eligible

22 individual under the age of 18 receiving payments

23 (with respect to such individual) under any health

24 insurance policy issued by a private provider of such

25 insurance’’ after ‘‘section 1614(f)(2)(B),’’.
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1 (b) EFFECTIVE DATE.—The amendments made by

2 this section apply to benefits for months beginning 90 or

3 more days after the date of the enactment of this Act,

4 without regard to whether regulations have been issued

5 to implement such amendments.

6 TITLE F—SOCIAL SERVICES BLOCK

7 GRANTS

8 SEC. 601. REDUCTION IN TITLE XX BLOCK GRANTS TO

9 STATES FOR SOCIAL SERVICES.

10 Section 2003(c) of the Social Security Act (42 U.S.C.

11 1397b(c)) is amended—

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

13 (4);

14 (2) in paragraph (5), by striking ‘‘fiscal year

15 after fiscal year 1989.’’ and inserting ‘‘of fiscal

16 years 1990 through 1995;’’; and

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

18 ‘‘(6) $2,730,000,000 for fiscal year 1996; and

19 ‘‘(7) $2,520,000,000 for fiscal year 1997 and

20 each succeeding fiscal year.’’.

Æ