II

104TH CONGRESS

2D SESSION S. 1867

To restore the American family, enhance support and work opportunities

for families with children, reduce out-of-wedlock pregnancies, reduce welfare dependence, and control welfare spending.

IN THE SENATE OF THE UNITED STATES

JUNE 12, 1996

Mr. BIDEN (for himself and Mr. SPECTER) introduced the following bill; which

was read twice and referred to the Committee on Finance

A BILL

To restore the American family, enhance support and work

opportunities for families with children, reduce out-ofwedlock pregnancies, reduce welfare dependence, and

control welfare spending.

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 ‘‘Bipartisan Welfare Re5 form Act of 1996’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.
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TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 101. Findings.

Sec. 102. Reference to Social Security Act.

Sec. 103. Block grants to States.

Sec. 104. Services provided by charitable, religious, or private organizations.

Sec. 105. Census data on grandparents as primary caregivers for their grandchildren.

Sec. 106. Report on data processing.

Sec. 107. Study on alternative outcomes measures.

Sec. 108. Conforming amendments to the Social Security Act.

Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related

provisions.

Sec. 110. Conforming amendments to other laws.

Sec. 111. Development of prototype of counterfeit-resistant social security card

required.

Sec. 112. Disclosure of receipt of Federal funds.

Sec. 113. Modifications to the job opportunities for certain low-income individuals program.

Sec. 114. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 115. Effective date; transition rule.

TITLE II—SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

Subtitle A—Eligibility Restrictions

Sec. 201. Denial of SSI benefits for 10 years to individuals found to have

fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.

Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 203. Verification of eligibility for certain SSI disability benefits.

Sec. 204. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics.

Subtitle B—Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.

Sec. 212. Eligibility redeterminations and continuing disability reviews.

Sec. 213. Additional accountability requirements.

Sec. 214. Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by private insurance.

Subtitle C—State Supplementation Programs

Sec. 221. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Subtitle D—Studies Regarding Supplemental Security Income Program

Sec. 231. Annual report on the supplemental security income program.

Sec. 232. Study of disability determination process.

Sec. 233. Study by General Accounting Office.
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Subtitle E—National Commission on the Future of Disability

Sec. 241. Establishment.

Sec. 242. Duties of the Commission.

Sec. 243. Membership.

Sec. 244. Staff and support services.

Sec. 245. Powers of Commission.

Sec. 246. Reports.

Sec. 247. Termination.

Sec. 248. Authorization of appropriations.

TITLE III—CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 301. State obligation to provide child support enforcement services.

Sec. 302. Distribution of child support collections.

Sec. 303. Privacy safeguards.

Sec. 304. Rights to notification and hearings.

Subtitle B—Locate and Case Tracking

Sec. 311. State case registry.

Sec. 312. Collection and disbursement of support payments.

Sec. 313. State directory of new hires.

Sec. 314. Amendments concerning income withholding.

Sec. 315. Locator information from interstate networks.

Sec. 316. Expansion of the Federal parent locator service.

Sec. 317. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 321. Adoption of uniform State laws.

Sec. 322. Improvements to full faith and credit for child support orders.

Sec. 323. Administrative enforcement in interstate cases.

Sec. 324. Use of forms in interstate enforcement.

Sec. 325. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 331. State laws concerning paternity establishment.

Sec. 332. Outreach for voluntary paternity establishment.

Sec. 333. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.

Sec. 342. Federal and State reviews and audits.

Sec. 343. Required reporting procedures.

Sec. 344. Automated data processing requirements.

Sec. 345. Technical assistance.

Sec. 346. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders
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Sec. 351. Simplified process for review and adjustment of child support orders.

Sec. 352. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 353. Nonliability for financial institutions providing financial records to

State child support enforcement agencies in child support

cases.

Subtitle G—Enforcement of Support Orders

Sec. 361. Internal Revenue Service collection of arrearages.

Sec. 362. Authority to collect support from Federal employees.

Sec. 363. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 364. Voiding of fraudulent transfers.

Sec. 365. Work requirement for persons owing past-due child support.

Sec. 366. Definition of support order.

Sec. 367. Reporting arrearages to credit bureaus.

Sec. 368. Liens.

Sec. 369. State law authorizing suspension of licenses.

Sec. 370. Denial of passports for nonpayment of child support.

Sec. 371. International child support enforcement.

Sec. 372. Financial institution data matches.

Sec. 373. Enforcement of orders against paternal or maternal grandparents in

cases of minor parents.

Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of

a child.

Subtitle H—Medical Support

Sec. 376. Correction to ERISA definition of medical child support order.

Sec. 377. Enforcement of orders for health care coverage.

Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential

Parents

Sec. 381. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 391. Effective dates.

TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR

ALIENS

Sec. 400. Statements of national policy concerning welfare and immigration.

Subtitle A—Eligibility for Federal Benefits

Sec. 401. Aliens who are not qualified aliens ineligible for Federal public benefits.

Sec. 402. Limited eligibility of certain qualified aliens for certain Federal programs.

Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-tested public benefit.

Sec. 404. Notification and information reporting.

Subtitle B—Eligibility for State and Local Public Benefits Programs
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Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for

State and local public benefits.

Sec. 412. State authority to limit eligibility of qualified aliens for State public

benefits.

Subtitle C—Attribution of Income and Affidavits of Support

Sec. 421. Federal attribution of sponsor’s income and resources to alien for

purposes of medicaid eligibility.

Sec. 422. Authority for States to provide for attribution of sponsor’s income

and resources to the alien with respect to State programs.

Sec. 423. Requirements for sponsor’s affidavit of support.

Sec. 424. Cosignature of alien student loans.

Subtitle D—General Provisions

Sec. 431. Definitions.

Sec. 432. Reapplication for SSI benefits.

Sec. 433. Verification of eligibility for Federal public benefits.

Sec. 434. Statutory construction.

Sec. 435. Communication between State and local government agencies and the

Immigration and Naturalization Service.

Sec. 436. Qualifying quarters.

Sec. 437. Title inapplicable to programs specified by Attorney General.

Sec. 438. Title inapplicable to programs of nonprofit charitable organizations.

Subtitle E—Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

TITLE V—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 501. Reductions.

Sec. 502. Reductions in Federal bureaucracy.

Sec. 503. Reducing personnel in Washington, D.C. area.

TITLE VI—REFORM OF PUBLIC HOUSING

Sec. 601. Failure to comply with other welfare and public assistance programs.

Sec. 602. Fraud under means-tested welfare and public assistance programs.

Sec. 603. Effective date.

TITLE VII—CHILD CARE

Sec. 701. Short title and references.

Sec. 702. Goals.

Sec. 703. Authorization of appropriations.

Sec. 704. Lead agency.

Sec. 705. Application and plan.

Sec. 706. Limitation on State allotments.

Sec. 707. Activities to improve the quality of child care.

Sec. 708. Repeal of early childhood development and before- and after-school

care requirement.

Sec. 709. Administration and enforcement.

Sec. 710. Payments.

Sec. 711. Annual report and audits.

Sec. 712. Report by the Secretary.

Sec. 713. Allotments.
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Sec. 714. Definitions.

Sec. 715. Repeals.

TITLE VIII—CHILD NUTRITION PROGRAMS

Subtitle A—National School Lunch Act

Sec. 801. Value of food assistance.

Sec. 802. Commodity assistance.

Sec. 803. State disbursement to schools.

Sec. 804. Nutritional and other program requirements.

Sec. 805. Free and reduced price policy statement.

Sec. 806. Special assistance.

Sec. 807. Miscellaneous provisions and definitions.

Sec. 808. Summer food service program for children.

Sec. 809. Commodity distribution.

Sec. 810. Child care food program.

Sec. 811. Pilot projects.

Sec. 812. Reduction of paperwork.

Sec. 813. Information on income eligibility.

Sec. 814. Nutrition guidance for child nutrition programs.

Sec. 815. Information clearinghouse.

Subtitle B—Child Nutrition Act of 1966

Sec. 821. Special milk program.

Sec. 822. Reimbursement rates for free and reduced price breakfasts.

Sec. 823. Free and reduced price policy statement.

Sec. 824. School breakfast program authorization.

Sec. 825. State administrative expenses.

Sec. 826. Regulations.

Sec. 827. Prohibitions.

Sec. 828. Miscellaneous provisions and definitions.

Sec. 829. Accounts and records.

Sec. 830. Special supplemental nutrition program for women, infants, and children.

Sec. 831. Cash grants for nutrition education.

Sec. 832. Nutrition education and training.

Sec. 833. Breastfeeding promotion program.

TITLE IX—FOOD STAMP AND RELATED PROGRAMS

Sec. 901. Definition of certification period.

Sec. 902. Expanded definition of ‘‘coupon’’.

Sec. 903. Treatment of children living at home.

Sec. 904. Adjustment of thrifty food plan.

Sec. 905. Definition of homeless individual.

Sec. 906. Energy assistance.

Sec. 907. Deductions from income.

Sec. 908. Vehicle allowance.

Sec. 909. Vendor payments for transitional housing counted as income.

Sec. 910. Increased penalties for violating food stamp program requirements.

Sec. 911. Disqualification of convicted individuals.

Sec. 912. Disqualification.

Sec. 913. Caretaker exemption.

Sec. 914. Employment and training.

Sec. 915. Comparable treatment for disqualification.
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Sec. 916. Disqualification for receipt of multiple food stamp benefits.

Sec. 917. Disqualification of fleeing felons.

Sec. 918. Cooperation with child support agencies.

Sec. 919. Disqualification relating to child support arrears.

Sec. 920. Work requirement for able-bodied recipients.

Sec. 921. Encourage electronic benefit transfer systems.

Sec. 922. Value of minimum allotment.

Sec. 923. Benefits on recertification.

Sec. 924. Optional combined allotment for expedited households.

Sec. 925. Failure to comply with other means-tested public assistance programs.

Sec. 926. Allotments for households residing in centers.

Sec. 927. Authority to establish authorization periods.

Sec. 928. Specific period for prohibiting participation of stores based on lack

of business integrity.

Sec. 929. Information for verifying eligibility for authorization.

Sec. 930. Waiting period for stores that initially fail to meet authorization criteria.

Sec. 931. Operation of food stamp offices.

Sec. 932. Mandatory claims collection methods.

Sec. 933. Exchange of law enforcement information.

Sec. 934. Expedited coupon service.

Sec. 935. Withdrawing fair hearing requests.

Sec. 936. Income, eligibility, and immigration status verification systems.

Sec. 937. Bases for suspensions and disqualifications.

Sec. 938. Authority to suspend stores violating program requirements pending

administrative and judicial review.

Sec. 939. Disqualification of retailers who are disqualified from the WIC program.

Sec. 940. Permanent debarment of retailers who intentionally submit falsified

applications.

Sec. 941. Expanded civil and criminal forfeiture for violations of the food

stamp act.

Sec. 942. Expanded authority for sharing information provided by retailers.

Sec. 943. Limitation of Federal match.

Sec. 944. Collection of overissuances.

Sec. 945. Standards for administration.

Sec. 946. Response to waivers.

Sec. 947. Authorization of appropriations.

Sec. 948. Authorize States to operate simplified food stamp programs.

Sec. 949. Emergency food assistance program.

Sec. 950. Food bank demonstration project.

Sec. 951. Report on entitlement commodity processing.

TITLE X—MISCELLANEOUS

Subtitle A—General Provisions

Sec. 1001. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds.

Sec. 1002. Elimination of housing assistance with respect to fugitive felons and

probation and parole violators.

Sec. 1003. Sense of the Senate regarding enterprise zones.

Sec. 1004. Sense of the Senate regarding the inability of the non-custodial parent to pay child support.

Sec. 1005. Food stamp eligibility.
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Sec. 1006. Establishing national goals to prevent teenage pregnancies.

Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws.

Sec. 1008. Sanctioning for testing positive for controlled substances.

Sec. 1009. Abstinence education.

Sec. 1010. Provisions to encourage electronic benefit transfer systems.

Sec. 1011. Reduction in block grants to States for social services.

Sec. 1012. Efficient use of Federal transportation funds.

1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE

3 FOR NEEDY FAMILIES

4 SEC. 101. FINDINGS.

5 The Congress makes the following findings:

6 (1) Marriage is the foundation of a successful

7 society.

8 (2) Marriage is an essential institution of a suc9 cessful society which promotes the interests of chil10 dren.

11 (3) Promotion of responsible fatherhood and

12 motherhood is integral to successful child rearing

13 and the well-being of children.

14 (4) In 1992, only 54 percent of single-parent

15 families with children had a child support order es16 tablished and, of that 54 percent, only about one17 half received the full amount due. Of the cases en18 forced through the public child support enforcement

19 system, only 18 percent of the caseload has a collec20 tion.

21 (5) The number of individuals receiving aid to

22 families with dependent children (in this section re-
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1 ferred to as ‘‘AFDC’’) has more than tripled since

2 1965. More than two-thirds of these recipients are

3 children. Eighty-nine percent of children receiving

4 AFDC benefits now live in homes in which no father

5 is present.

6 (A)(i) The average monthly number of

7 children receiving AFDC benefits—

8 (I) was 3,300,000 in 1965;

9 (II) was 6,200,000 in 1970;

10 (III) was 7,400,000 in 1980; and

11 (IV) was 9,300,000 in 1992.

12 (ii) While the number of children receiving

13 AFDC benefits increased nearly threefold be14 tween 1965 and 1992, the total number of chil15 dren in the United States aged 0 to 18 has de16 clined by 5.5 percent.

17 (B) The Department of Health and

18 Human Services has estimated that 12,000,000

19 children will receive AFDC benefits within 10

20 years.

21 (C) The increase in the number of children

22 receiving public assistance is closely related to

23 the increase in births to unmarried women. Be24 tween 1970 and 1991, the percentage of live
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1 births to unmarried women increased nearly

2 threefold, from 10.7 percent to 29.5 percent.

3 (6) The increase of out-of-wedlock pregnancies

4 and births is well documented as follows:

5 (A) It is estimated that the rate of non6 marital teen pregnancy rose 23 percent from 54

7 pregnancies per 1,000 unmarried teenagers in

8 1976 to 66.7 pregnancies in 1991. The overall

9 rate of nonmarital pregnancy rose 14 percent

10 from 90.8 pregnancies per 1,000 unmarried

11 women in 1980 to 103 in both 1991 and 1992.

12 In contrast, the overall pregnancy rate for mar13 ried couples decreased 7.3 percent between

14 1980 and 1991, from 126.9 pregnancies per

15 1,000 married women in 1980 to 117.6 preg16 nancies in 1991.

17 (B) The total of all out-of-wedlock births

18 between 1970 and 1991 has risen from 10.7

19 percent to 29.5 percent and if the current trend

20 continues, 50 percent of all births by the year

21 2015 will be out-of-wedlock.

22 (7) The negative consequences of an out-of-wed23 lock birth on the mother, the child, the family, and

24 society are well documented as follows:
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1 (A) Young women 17 and under who give

2 birth outside of marriage are more likely to go

3 on public assistance and to spend more years

4 on welfare once enrolled. These combined ef5 fects of ‘‘younger and longer’’ increase total

6 AFDC costs per household by 25 percent to 30

7 percent for 17-year olds.

8 (B) Children born out-of-wedlock have a

9 substantially higher risk of being born at a very

10 low or moderately low birth weight.

11 (C) Children born out-of-wedlock are more

12 likely to experience low verbal cognitive attain13 ment, as well as more child abuse, and neglect.

14 (D) Children born out-of-wedlock were

15 more likely to have lower cognitive scores, lower

16 educational aspirations, and a greater likelihood

17 of becoming teenage parents themselves.

18 (E) Being born out-of-wedlock significantly

19 reduces the chances of the child growing up to

20 have an intact marriage.

21 (F) Children born out-of-wedlock are 3

22 times more likely to be on welfare when they

23 grow up.

24 (8) Currently 35 percent of children in single25 parent homes were born out-of-wedlock, nearly the
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1 same percentage as that of children in single-parent

2 homes whose parents are divorced (37 percent).

3 While many parents find themselves, through divorce

4 or tragic circumstances beyond their control, facing

5 the difficult task of raising children alone, neverthe6 less, the negative consequences of raising children in

7 single-parent homes are well documented as follows:

8 (A) Only 9 percent of married-couple fami9 lies with children under 18 years of age have

10 income below the national poverty level. In con11 trast, 46 percent of female-headed households

12 with children under 18 years of age are below

13 the national poverty level.

14 (B) Among single-parent families, nearly

1 15 ⁄2 of the mothers who never married received

AFDC while only 1 16 ⁄5 of divorced mothers re17 ceived AFDC.

18 (C) Children born into families receiving

19 welfare assistance are 3 times more likely to be

20 on welfare when they reach adulthood than chil21 dren not born into families receiving welfare.

22 (D) Mothers under 20 years of age are at

23 the greatest risk of bearing low-birth-weight ba24 bies.
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1 (E) The younger the single parent mother,

2 the less likely she is to finish high school.

3 (F) Young women who have children be4 fore finishing high school are more likely to re5 ceive welfare assistance for a longer period of

6 time.

7 (G) Between 1985 and 1990, the public

8 cost of births to teenage mothers under the aid

9 to families with dependent children program,

10 the food stamp program, and the medicaid pro11 gram has been estimated at $120,000,000,000.

12 (H) The absence of a father in the life of

13 a child has a negative effect on school perform14 ance and peer adjustment.

15 (I) Children of teenage single parents have

16 lower cognitive scores, lower educational aspira17 tions, and a greater likelihood of becoming teen18 age parents themselves.

19 (J) Children of single-parent homes are 3

20 times more likely to fail and repeat a year in

21 grade school than are children from intact 2-

22 parent families.

23 (K) Children from single-parent homes are

24 almost 4 times more likely to be expelled or sus25 pended from school.
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1 (L) Neighborhoods with larger percentages

2 of youth aged 12 through 20 and areas with

3 higher percentages of single-parent households

4 have higher rates of violent crime.

5 (M) Of those youth held for criminal of6 fenses within the State juvenile justice system,

7 only 29.8 percent lived primarily in a home with

8 both parents. In contrast to these incarcerated

9 youth, 73.9 percent of the 62,800,000 children

10 in the Nation’s resident population were living

11 with both parents.

12 (9) Therefore, in light of this demonstration of

13 the crisis in our Nation, it is the sense of the Con14 gress that prevention of out-of-wedlock pregnancy

15 and reduction in out-of-wedlock birth are very im16 portant Government interests and the policy con17 tained in part A of title IV of the Social Security

18 Act (as amended by section 103 of this Act) is in19 tended to address the crisis.

20 SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

21 Except as otherwise specifically provided, wherever in

22 this title an amendment is expressed in terms of an

23 amendment to or repeal of a section or other provision,

24 the reference shall be considered to be made to that sec25 tion or other provision of the Social Security Act.
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1 SEC. 103. BLOCK GRANTS TO STATES.

2 Part A of title IV (42 U.S.C. 601 et seq.) is amended

3 to read as follows:

4 ‘‘PART A—BLOCK GRANTS TO STATES FOR

5 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

6 ‘‘SEC. 401. PURPOSE.

7 ‘‘(a) IN GENERAL.—The purpose of this part is to

8 increase the flexibility of States in operating a program

9 designed to—

10 ‘‘(1) provide assistance to needy families so that

11 children may be cared for in their own homes or in

12 the homes of relatives;

13 ‘‘(2) end the dependence of needy parents on

14 government benefits by promoting job preparation,

15 work, and marriage;

16 ‘‘(3) prevent and reduce the incidence of out-of17 wedlock pregnancies and establish annual numerical

18 goals for preventing and reducing the incidence of

19 these pregnancies; and

20 ‘‘(4) encourage the formation and maintenance

21 of two-parent families.

22 ‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part

23 shall not be interpreted to entitle any individual or family

24 to assistance under any State program funded under this

25 part.
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1 ‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.

2 ‘‘(a) IN GENERAL.—As used in this part, the term

3 ‘eligible State’ means, with respect to a fiscal year, a State

4 that, during the 2-year period immediately preceding the

5 fiscal year, has submitted to the Secretary a plan that

6 meets the requirements of subsection (b) and has been ap7 proved by the Secretary with respect to the fiscal year.

8 ‘‘(b) CONTENTS OF STATE PLANS.—A plan meets

9 the requirements of this subsection if the plan includes

10 the following:

11 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO12 GRAM.—

13 ‘‘(A) GENERAL PROVISIONS.—A written

14 document that outlines how the State will do

15 the following:

16 ‘‘(i) Conduct a program, designed to

17 serve all political subdivisions in the State,

18 that provides assistance to needy families

19 with (or expecting) children and provides

20 parents with job preparation, work, and

21 support services to enable them to leave

22 the program and become self-sufficient.

23 ‘‘(ii) Determine, on an objective and

24 equitable basis, the needs of and the

25 amount of assistance to be provided to

26 needy families, and treat families of similar
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1 needs and circumstances similarly, subject

2 to subparagraph (B).

3 ‘‘(iii) Require a parent or caretaker

4 receiving assistance under the program to

5 engage in work (as defined by the State)

6 once the State determines the parent or

7 caretaker is ready to engage in work, or

8 once the parent or caretaker has received

9 assistance under the program for 24

10 months (whether or not consecutive),

11 whichever is earlier.

12 ‘‘(iv) Ensure that parents and care13 takers receiving assistance under the pro14 gram engage in work activities in accord15 ance with section 407.

16 ‘‘(v) Grant an opportunity for a fair

17 hearing before the State agency to any in18 dividual to whom assistance under the pro19 gram is denied, reduced, or terminated, or

20 whose request for such assistance is not

21 acted on with reasonable promptness.

22 ‘‘(vi) Take such reasonable steps as

23 the State deems necessary to restrict the

24 use and disclosure of information about in25 dividuals and families receiving assistance
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1 under the program attributable to funds

2 provided by the Federal Government.

3 ‘‘(vii) Establish goals and take action

4 to prevent and reduce the incidence of out5 of-wedlock pregnancies, with special em6 phasis on teenage pregnancies, and estab7 lish numerical goals for reducing the ille8 gitimacy ratio of the State (as defined in

9 section 403(a)(2)(B)) for calendar years

10 1996 through 2005.

11 ‘‘(B) SPECIAL PROVISIONS.—

12 ‘‘(i) The plan shall indicate whether

13 the State intends to treat families moving

14 into the State from another State dif15 ferently than other families under the pro16 gram, and if so, how the State intends to

17 treat such families under the program.

18 ‘‘(ii) The plan shall indicate whether

19 the State intends to provide assistance

20 under the program to individuals who are

21 not citizens of the United States, and if so,

22 shall include an overview of such assist23 ance.

24 ‘‘(2) CERTIFICATION THAT THE STATE WILL

25 OPERATE A CHILD SUPPORT ENFORCEMENT PRO-
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1 GRAM.—The plan shall include a certification by the

2 chief executive officer of the State that, during the

3 fiscal year, the State will operate a child support en4 forcement program under the State plan approved

5 under part D.

6 ‘‘(3) CERTIFICATION THAT THE STATE WILL

7 OPERATE A CHILD PROTECTION PROGRAM.—The

8 plan shall include a certification by the chief execu9 tive officer of the State that, during the fiscal year,

10 the State will operate a child protection program

11 under the State plan approved under part B.

12 ‘‘(4) CERTIFICATION OF THE ADMINISTRATION

13 OF THE PROGRAM.—The plan shall include a certifi14 cation by the chief executive officer of the State

15 specifying which State agency or agencies will ad16 minister and supervise the program referred to in

17 paragraph (1) for the fiscal year, which shall include

18 assurances that local governments and private sector

19 organizations—

20 ‘‘(A) have been working jointly with the

21 State in all phases of the plan and design of

22 welfare services in the State so that services are

23 provided in a manner appropriate to local popu24 lations;
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1 ‘‘(B) have had at least 60 days to submit

2 comments on the final plan and the design of

3 such services; and

4 ‘‘(C) will not have unfunded mandates im5 posed on them under such plan.

6 Such certification shall also include assurance that

7 when local elected officials are currently responsible

8 for the administration of welfare services, the local

9 elected officials will be able to plan, design, and ad10 minister for their jurisdictions the programs estab11 lished pursuant to this Act.

12 ‘‘(5) CERTIFICATION THAT THE STATE WILL

13 PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS14 SISTANCE.—The plan shall include a certification by

15 the chief executive officer of the State that, during

16 the fiscal year, the State will provide each Indian

17 who is a member of an Indian tribe in the State that

18 does not have a tribal family assistance plan ap19 proved under section 412 with equitable access to

20 assistance under the State program funded under

21 this part attributable to funds provided by the Fed22 eral Government.

23 ‘‘(6) CERTIFICATION OF NONDISPLACEMENT

24 AND NONREPLACEMENT OF EMPLOYEES.—The plan
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1 shall include a certification that the implementation

2 of the plan will not result in—

3 ‘‘(A) the displacement of a currently em4 ployed worker or position by an individual to

5 whom assistance is provided under the State

6 program funded under this part;

7 ‘‘(B) the replacement of an employee who

8 has been terminated with an individual to whom

9 assistance is provided under the State program

10 funded under this part; or

11 ‘‘(C) the replacement of an employee who

12 is on layoff from the same position filled by an

13 individual to whom assistance is provided under

14 the State program funded under this part or

15 any equivalent position.

16 ‘‘(c) APPROVAL OF STATE PLANS.—The Secretary

17 shall approve any State plan that meets the requirements

18 of subsection (b) if the Secretary determines that operat19 ing a State program pursuant to the plan will contribute

20 to achieving the purposes of this part.

21 ‘‘(d) PUBLIC AVAILABILITY OF STATE PLAN SUM22 MARY.—The State shall make available to the public a

23 summary of any plan submitted by the State under this

24 section.
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1 ‘‘SEC. 403. GRANTS TO STATES.

2 ‘‘(a) GRANTS.—

3 ‘‘(1) FAMILY ASSISTANCE GRANT.—

4 ‘‘(A) IN GENERAL.—Each eligible State

5 shall be entitled to receive from the Secretary,

6 for each of fiscal years 1996, 1997, 1998,

7 1999, 2000, and 2001 a grant in an amount

8 equal to the State family assistance grant.

9 ‘‘(B) STATE FAMILY ASSISTANCE GRANT

10 DEFINED.—As used in this part, the term

11 ‘State family assistance grant’ means the great12 est of—

‘‘(i) 1 13 ⁄3 of the total amount required

14 to be paid to the State under former sec15 tion 403 (as in effect on September 30,

16 1995) for fiscal years 1992, 1993, and

17 1994 (other than with respect to amounts

18 expended by the State for child care under

19 subsection (g) or (i) of former section 402

20 (as so in effect));

21 ‘‘(ii)(I) the total amount required to

22 be paid to the State under former section

23 403 for fiscal year 1994 (other than with

24 respect to amounts expended by the State

25 for child care under subsection (g) or (i) of

26 former section 402 (as so in effect)); plus
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1 ‘‘(II) an amount equal to 85 percent

2 of the amount (if any) by which the total

3 amount required to be paid to the State

4 under former section 403(a)(5) for emer5 gency assistance for fiscal year 1995 ex6 ceeds the total amount required to be paid

7 to the State under former section

8 403(a)(5) for fiscal year 1994, if, during

9 fiscal year 1994, the Secretary approved

10 under former section 402 an amendment

11 to the former State plan with respect to

12 the provision of emergency assistance in

13 the context of family preservation; or

‘‘(iii) 3 14 ⁄4 of the total amount required

15 to be paid to the State under former sec16 tion 403 (as in effect on September 30,

17 1995) for the 1st 3 quarters of fiscal year

18 1995 (other than with respect to amounts

19 expended by the State under the State

20 plan approved under part F (as so in ef21 fect) or for child care under subsection (g)

22 or (i) of former section 402 (as so in ef23 fect)), plus the total amount required to be

24 paid to the State for fiscal year 1995
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1 under former section 403(l) (as so in ef2 fect).

3 ‘‘(C) TOTAL AMOUNT REQUIRED TO BE

4 PAID TO THE STATE UNDER FORMER SECTION

5 403 DEFINED.—As used in this part, the term

6 ‘total amount required to be paid to the State

7 under former section 403’ means, with respect

8 to a fiscal year—

9 ‘‘(i) in the case of a State to which

10 section 1108 does not apply, the sum of—

11 ‘‘(I) the Federal share of mainte12 nance assistance expenditures for the

13 fiscal year, before reduction pursuant

14 to subparagraph (B) or (C) of section

15 403(b)(2) (as in effect on September

16 30, 1995), as reported by the State on

17 ACF Form 231;

18 ‘‘(II) the Federal share of admin19 istrative expenditures (including ad20 ministrative expenditures for the de21 velopment of management information

22 systems) for the fiscal year, as re23 ported by the State on ACF Form

24 231;
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1 ‘‘(III) the Federal share of emer2 gency assistance expenditures for the

3 fiscal year, as reported by the State

4 on ACF Form 231;

5 ‘‘(IV) the Federal share of ex6 penditures for the fiscal year with re7 spect to child care pursuant to sub8 sections (g) and (i) of former section

9 402 (as in effect on September 30,

10 1995), as reported by the State on

11 ACF Form 231; and

12 ‘‘(V) the aggregate amount re13 quired to be paid to the State for the

14 fiscal year with respect to the State

15 program operated under part F (as in

16 effect on September 30, 1995), as de17 termined by the Secretary, including

18 additional obligations or reductions in

19 obligations made after the close of the

20 fiscal year; and

21 ‘‘(ii) in the case of a State to which

22 section 1108 applies, the lesser of—

23 ‘‘(I) the sum described in clause

24 (i); or
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1 ‘‘(II) the total amount certified

2 by the Secretary under former section

3 403 (as in effect during the fiscal

4 year) with respect to the territory.

5 ‘‘(D) INFORMATION TO BE USED IN DE6 TERMINING AMOUNTS.—

7 ‘‘(i) FOR FISCAL YEARS 1992 AND

8 1993.—

9 ‘‘(I) In determining the amount

10 described in subclauses (I) through

11 (IV) of subparagraph (C)(i) for any

12 State for each of fiscal years 1992

13 and 1993, the Secretary shall use in14 formation available as of April 28,

15 1995.

16 ‘‘(II) In determining the amount

17 described in subparagraph (C)(i)(V)

18 for any State for each of fiscal years

19 1992 and 1993, the Secretary shall

20 use information available as of Janu21 ary 6, 1995.

22 ‘‘(ii) FOR FISCAL YEAR 1994.—In de23 termining the amounts described in sub24 paragraph (C)(i) for any State for fiscal
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1 year 1994, the Secretary shall use informa2 tion available as of April 28, 1995.

3 ‘‘(iii) FOR FISCAL YEAR 1995.—

4 ‘‘(I) In determining the amount

5 described in subparagraph (B)(ii)(II)

6 for any State for fiscal year 1995, the

7 Secretary shall use the information

8 which was reported by the States and

9 estimates made by the States with re10 spect to emergency assistance expend11 itures and was available as of August

12 11, 1995.

13 ‘‘(II) In determining the amounts

14 described in subclauses (I) through

15 (IV) of subparagraph (C)(i) for any

16 State for fiscal year 1995, the Sec17 retary shall use information available

18 as of October 2, 1995.

19 ‘‘(III) In determining the amount

20 described in subparagraph (C)(i)(V)

21 for any State for fiscal year 1995, the

22 Secretary shall use information avail23 able as of October 5, 1995.

24 ‘‘(E) APPROPRIATION.—Out of any money

25 in the Treasury of the United States not other-
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1 wise appropriated, there are appropriated for

2 fiscal years 1996, 1997, 1998, 1999, 2000, and

3 2001 such sums as are necessary for grants

4 under this paragraph.

5 ‘‘(2) GRANT TO REWARD STATES THAT REDUCE

6 OUT-OF-WEDLOCK BIRTHS.—

7 ‘‘(A) IN GENERAL.—In addition to any

8 grant under paragraph (1), each eligible State

9 shall be entitled to receive from the Secretary

10 for fiscal year 1998 or any succeeding fiscal

11 year, a grant in an amount equal to the State

12 family assistance grant multiplied by—

13 ‘‘(i) 5 percent if—

14 ‘‘(I) the illegitimacy ratio of the

15 State for the fiscal year is at least 1

16 percentage point lower than the ille17 gitimacy ratio of the State for fiscal

18 year 1995; and

19 ‘‘(II) the rate of induced preg20 nancy terminations in the State for

21 the fiscal year is less than the rate of

22 induced pregnancy terminations in the

23 State for fiscal year 1995; or

24 ‘‘(ii) 10 percent if—
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1 ‘‘(I) the illegitimacy ratio of the

2 State for the fiscal year is at least 2

3 percentage points lower than the ille4 gitimacy ratio of the State for fiscal

5 year 1995; and

6 ‘‘(II) the rate of induced preg7 nancy terminations in the State for

8 the fiscal year is less than the rate of

9 induced pregnancy terminations in the

10 State for fiscal year 1995.

11 ‘‘(B) ILLEGITIMACY RATIO.—As used in

12 this paragraph, the term ‘illegitimacy ratio’

13 means, with respect to a State and a fiscal

14 year—

15 ‘‘(i) the number of out-of-wedlock

16 births that occurred in the State during

17 the most recent fiscal year for which such

18 information is available; divided by

19 ‘‘(ii) the number of births that oc20 curred in the State during the most recent

21 fiscal year for which such information is

22 available.

23 ‘‘(C) DISREGARD OF CHANGES IN DATA

24 DUE TO CHANGED REPORTING METHODS.—For
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1 purposes of subparagraph (A), the Secretary

2 shall disregard—

3 ‘‘(i) any difference between the illegit4 imacy ratio of a State for a fiscal year and

5 the illegitimacy ratio of the State for fiscal

6 year 1995 which is attributable to a

7 change in State methods of reporting data

8 used to calculate the illegitimacy ratio; and

9 ‘‘(ii) any difference between the rate

10 of induced pregnancy terminations in a

11 State for a fiscal year and such rate for

12 fiscal year 1995 which is attributable to a

13 change in State methods of reporting data

14 used to calculate such rate.

15 ‘‘(D) APPROPRIATION.—Out of any money

16 in the Treasury of the United States not other17 wise appropriated, there are appropriated for

18 fiscal year 1998 and for each succeeding fiscal

19 year such sums as are necessary for grants

20 under this paragraph.

21 ‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION

22 INCREASES IN CERTAIN STATES.—

23 ‘‘(A) IN GENERAL.—Each qualifying State

24 shall, subject to subparagraph (F), be entitled

25 to receive from the Secretary—
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1 ‘‘(i) for fiscal year 1997 a grant in an

2 amount equal to 2.5 percent of the total

3 amount required to be paid to the State

4 under former section 403 (as in effect dur5 ing fiscal year 1994) for fiscal year 1994;

6 and

7 ‘‘(ii) for each of fiscal years 1998,

8 1999, and 2000, a grant in an amount

9 equal to the sum of—

10 ‘‘(I) the amount (if any) required

11 to be paid to the State under this

12 paragraph for the immediately preced13 ing fiscal year; and

14 ‘‘(II) 2.5 percent of the sum of—

15 ‘‘(aa) the total amount re16 quired to be paid to the State

17 under former section 403 (as in

18 effect during fiscal year 1994)

19 for fiscal year 1994; and

20 ‘‘(bb) the amount (if any)

21 required to be paid to the State

22 under this paragraph for the fis23 cal year preceding the fiscal year

24 for which the grant is to be

25 made.
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1 ‘‘(B) PRESERVATION OF GRANT WITHOUT

2 INCREASES FOR STATES FAILING TO REMAIN

3 QUALIFYING STATES.—Each State that is not a

4 qualifying State for a fiscal year specified in

5 subparagraph (A)(ii) but was a qualifying State

6 for a prior fiscal year shall, subject to subpara7 graph (F), be entitled to receive from the Sec8 retary for the specified fiscal year, a grant in

9 an amount equal to the amount required to be

10 paid to the State under this paragraph for the

11 most recent fiscal year for which the State was

12 a qualifying State.

13 ‘‘(C) QUALIFYING STATE.—

14 ‘‘(i) IN GENERAL.—For purposes of

15 this paragraph, a State is a qualifying

16 State for a fiscal year if—

17 ‘‘(I) the level of welfare spending

18 per poor person by the State for the

19 immediately preceding fiscal year is

20 less than the national average level of

21 State welfare spending per poor per22 son for such preceding fiscal year; and

23 ‘‘(II) the population growth rate

24 of the State (as determined by the

25 Bureau of the Census for the most re-
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1 cent fiscal year for which information

2 is available) exceeds the average popu3 lation growth rate for all States (as so

4 determined) for such most recent fis5 cal year.

6 ‘‘(ii) STATE MUST QUALIFY IN FISCAL

7 YEAR 1997.—Notwithstanding clause (i), a

8 State shall not be a qualifying State for

9 any fiscal year after 1997 by reason of

10 clause (i) if the State is not a qualifying

11 State for fiscal year 1997 by reason of

12 clause (i).

13 ‘‘(iii) CERTAIN STATES DEEMED

14 QUALIFYING STATES.—For purposes of

15 this paragraph, a State is deemed to be a

16 qualifying State for fiscal years 1997,

17 1998, 1999, and 2000 if—

18 ‘‘(I) the level of welfare spending

19 per poor person by the State for fiscal

20 year 1996 is less than 35 percent of

21 the national average level of State

22 welfare spending per poor person for

23 fiscal year 1996; or

24 ‘‘(II) the population of the State

25 increased by more than 10 percent
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1 from April 1, 1990, to July 1, 1994,

2 as determined by the Bureau of the

3 Census.

4 ‘‘(D) DEFINITIONS.—As used in this para5 graph:

6 ‘‘(i) LEVEL OF WELFARE SPENDING

7 PER POOR PERSON.—The term ‘level of

8 State welfare spending per poor person’

9 means, with respect to a State and a fiscal

10 year—

11 ‘‘(I) the sum of—

12 ‘‘(aa) the total amount re13 quired to be paid to the State

14 under former section 403 (as in

15 effect during fiscal year 1994)

16 for fiscal year 1994; and

17 ‘‘(bb) the amount (if any)

18 paid to the State under this

19 paragraph for the immediately

20 preceding fiscal year; divided by

21 ‘‘(II) the number of individuals,

22 according to the 1990 decennial cen23 sus, who were residents of the State

24 and whose income was below the pov25 erty line.
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1 ‘‘(ii) NATIONAL AVERAGE LEVEL OF

2 STATE WELFARE SPENDING PER POOR

3 PERSON.—The term ‘national average level

4 of State welfare spending per poor person’

5 means, with respect to a fiscal year, an

6 amount equal to—

7 ‘‘(I) the total amount required to

8 be paid to the States under former

9 section 403 (as in effect during fiscal

10 year 1994) for fiscal year 1994; di11 vided by

12 ‘‘(II) the number of individuals,

13 according to the 1990 decennial cen14 sus, who were residents of any State

15 and whose income was below the pov16 erty line.

17 ‘‘(iii) STATE.—The term ‘State’

18 means each of the 50 States of the United

19 States and the District of Columbia.

20 ‘‘(E) APPROPRIATION.—Out of any money

21 in the Treasury of the United States not other22 wise appropriated, there are appropriated for

23 fiscal years 1997, 1998, 1999, and 2000 such

24 sums as are necessary for grants under this
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1 paragraph, in a total amount not to exceed

2 $800,000,000.

3 ‘‘(F) GRANTS REDUCED PRO RATA IF IN4 SUFFICIENT APPROPRIATIONS.—If the amount

5 appropriated pursuant to this paragraph for a

6 fiscal year is less than the total amount of pay7 ments otherwise required to be made under this

8 paragraph for the fiscal year, then the amount

9 otherwise payable to any State for the fiscal

10 year under this paragraph shall be reduced by

11 a percentage equal to the amount so appro12 priated divided by such total amount.

13 ‘‘(G) BUDGET SCORING.—Notwithstanding

14 section 257(b)(2) of the Balanced Budget and

15 Emergency Deficit Control Act of 1985, the

16 baseline shall assume that no grant shall be

17 made under this paragraph after fiscal year

18 2000.

19 ‘‘(4) SUPPLEMENTAL GRANT FOR OPERATION

20 OF WORK PROGRAM.—

21 ‘‘(A) APPLICATION REQUIREMENTS.—An

22 eligible State may submit to the Secretary an

23 application for additional funds to meet the re24 quirements of section 407 with respect to a fis25 cal year if the Secretary determines that—
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1 ‘‘(i) the total expenditures of the

2 State to meet such requirements for the

3 fiscal year exceed the total expenditures of

4 the State during fiscal year 1994 to carry

5 out part F (as in effect on September 30,

6 1994);

7 ‘‘(ii) the work programs of the State

8 under section 407 are coordinated with the

9 job training programs established by title

10 II of the Job Training Partnership Act, or

11 (if such title is repealed by the Consoli12 dated and Reformed Education, Employ13 ment, and Rehabilitation Systems Act) the

14 Consolidated and Reformed Education,

15 Employment, and Rehabilitation Systems

16 Act; and

17 ‘‘(iii) the State needs additional funds

18 to meet such requirements or certifies that

19 it intends to exceed such requirements.

20 ‘‘(B) GRANTS.—The Secretary may make

21 a grant to any eligible State which submits an

22 application in accordance with subparagraph

23 (A) of this paragraph for a fiscal year in an

24 amount equal to the Federal medical assistance

25 percentage of the amount (if any) by which the
38

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1 total expenditures of the State to meet or ex2 ceed the requirements of section 407 for the fis3 cal year exceeds the total expenditures of the

4 State during fiscal year 1994 to carry out part

5 F (as in effect on September 30, 1994).

6 ‘‘(C) REGULATIONS.—The Secretary shall

7 issue regulations providing for the equitable dis8 tribution of funds under this paragraph.

9 ‘‘(D) APPROPRIATIONS.—

10 ‘‘(i) IN GENERAL.—Out of any money

11 in the Treasury of the United States not

12 otherwise appropriated, there are appro13 priated to the Secretary for grants under

14 this paragraph $3,000,000,000 for fiscal

15 year 1999.

16 ‘‘(ii) AVAILABILITY.—Amounts appro17 priated pursuant to clause (i) shall remain

18 available until expended.

19 ‘‘(b) CONTINGENCY FUND.—

20 ‘‘(1) ESTABLISHMENT.—There is hereby estab21 lished in the Treasury of the United States a fund

22 which shall be known as the ‘Contingency Fund for

23 State Welfare Programs’ (in this section referred to

24 as the ‘Fund’).

25 ‘‘(2) DEPOSITS INTO FUND.—
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1 ‘‘(A) Out of any money in the Treasury of

2 the United States not otherwise appropriated,

3 there are appropriated for fiscal years 1997,

4 1998, 1999, 2000, 2001 and 2002 such sums

5 as are necessary for payment to the Fund in a

6 total amount not to exceed $2,000,000,000, ex7 cept as provided in subparagraphs (B) and (C).

8 ‘‘(B) If—

9 ‘‘(i) the average rate of total unem10 ployment in the United States for the most

11 recent 3 months for which data for all

12 States are available is not less than 7 per13 cent; and

14 ‘‘(ii) there are insufficient amounts in

15 the Fund to pay all State claims under

16 paragraph (3) for a quarter in that fiscal

17 year;

18 then there are appropriated for that fiscal year,

19 in addition to amounts appropriated under

20 paragraph (2)(A), such sums as equal the dif21 ference between the amount needed to pay all

22 State claims for that quarter and the amount

23 remaining in the Fund.

24 ‘‘(C) If—
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1 ‘‘(i)(I) the average rate of total unem2 ployment in a State (seasonally adjusted)

3 for the period consisting of the most recent

4 3 months for which data for all States are

5 published is not less than 9 percent;

6 ‘‘(II) the average rate of total unem7 ployment in such State (seasonally ad8 justed) for the 3-month period is not less

9 than 120 percent of such average rate for

10 either 1994 or 1995; or

11 ‘‘(III) the average number of persons

12 in the State receiving assistance under the

13 food stamp program, as defined in section

14 3(h) of the Food Stamp Act of 1977, for

15 the most recent 3-month period for which

16 data are available is not less than 110 per17 cent of such average monthly number for

18 fiscal year 1994 or for fiscal year 1995;

19 and

20 ‘‘(ii) there are insufficient amounts in

21 the Fund to pay all State claims under

22 paragraph (3) for a quarter in that fiscal

23 year; then

24 there are appropriated for payment to the Fund

25 for that fiscal year, in addition to amounts ap-
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1 propriated pursuant to paragraph (2)(A), for

2 payments to States described in this subpara3 graph, the amount by which payments to such

4 States under paragraph (3) would otherwise be

5 reduced under paragraph (6).

6 ‘‘(3) GRANTS.—From amounts appropriated

7 pursuant to paragraph (2), the Secretary of the

8 Treasury shall pay to each eligible State for a fiscal

9 year an amount equal to the lesser of—

10 ‘‘(A) the Federal medical assistance per11 centage for the State for the fiscal year (as de12 fined in section 1905(b), as in effect on Sep13 tember 30, 1995) of the amount, if any, by

14 which the expenditures of the State in the fiscal

15 year under the State program funded under

16 this part and expenditures on cash assistance

17 under other State programs with respect to eli18 gible families (as defined in section

19 409(a)(5)(B)(i)(III)) exceed historic State ex20 penditures (as defined in section

21 409(a)(5)(B)(iii)); or

22 ‘‘(B) the number of percentage points (if

23 any) by which 40 percent of the State family

24 assistance grant for the fiscal year exceeds any
42

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1 payment to the State for the fiscal year under

2 section 403(a)(3).

3 ‘‘(4) ELIGIBLE STATE.—For purposes of this

4 subsection, a State is an eligible State for a fiscal

5 year, if—

6 ‘‘(A)(i) the average rate of total unemploy7 ment in such State (seasonally adjusted) for the

8 period consisting of the most recent 3 months

9 for which data for all States are published is

10 not less than 6.5 percent; or

11 ‘‘(ii) the average rate of total unemploy12 ment in such State (seasonally adjusted) for the

13 3-month period is not less than 110 percent of

14 such average rate for either 1994 or 1995; or

15 ‘‘(B)(i) the average number of persons in

16 the State receiving assistance under the food

17 stamp program, as defined in section 3(h) of

18 the Food Stamp Act of 1977, for the most re19 cent 3-month period for which data are avail20 able is not less than 104 percent of the product

21 of—

22 ‘‘(I) such average monthly number for

23 either fiscal year 1994 or fiscal year 1995;

24 and
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1 ‘‘(II) the number of percentage points

2 (if any) by which 100 percent exceeds the

3 percentage by which the Bipartisan Wel4 fare Reform Act of 1996, had it been in ef5 fect, would have reduced such average

6 monthly number in such State in such fis7 cal year, as most recently estimated by the

8 Congressional Budget Office before the

9 date of the enactment of such Act; and

10 ‘‘(ii) the State is not participating in the

11 program established under section 23(b) of the

12 Food Stamp Act of 1977.

13 ‘‘(5) STATE.—As used in this subsection, the

14 term ‘State’ means each of the 50 States of the

15 United States and the District of Columbia.

16 ‘‘(6) PAYMENT PRIORITY.—Claims by States

17 for payment from the Fund shall be filed quarterly.

18 If the total amount of claims for any quarter exceeds

19 the amount available for payment from the fund,

20 claims shall be paid on a pro rata basis in a manner

21 to be determined by the Secretary, except in the case

22 of a State described in paragraph (2)(C).

23 ‘‘(7) ANNUAL REPORTS.—The Secretary of the

24 Treasury shall annually report to Congress on the

25 status of the Fund.
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1 ‘‘SEC. 404. USE OF GRANTS.

2 ‘‘(a) GENERAL RULES.—Subject to this part, a State

3 to which a grant is made under section 403 may use the

4 grant—

5 ‘‘(1) in any manner that is reasonably cal6 culated to accomplish the purpose of this part, in7 cluding to provide low income households with as8 sistance in meeting home heating and cooling costs;

9 or

10 ‘‘(2) in any manner that the State was author11 ized to use amounts received under part A or F, as

12 such parts were in effect on September 30, 1995.

13 ‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINIS14 TRATIVE PURPOSES.—

15 ‘‘(1) LIMITATION.—A State to which a grant is

16 made under section 403 shall not expend more than

17 15 percent of the grant for administrative purposes.

18 ‘‘(2) EXCEPTION.—Paragraph (1) shall not

19 apply to the use of a grant for information tech20 nology and computerization needed for tracking or

21 monitoring required by or under this part.

22 ‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMI23 GRANTS UNDER RULES OF FORMER STATE.—A State op24 erating a program funded under this part may apply to

25 a family the rules (including benefit amounts) of the pro26 gram funded under this part of another State if the family
45

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1 has moved to the State from the other State and has re2 sided in the State for less than 12 months.

3 ‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR

4 OTHER PURPOSES.—

5 ‘‘(1) IN GENERAL.—A State may use not more

6 than 20 percent of the amount of the grant made to

7 the State under section 403 for a fiscal year to carry

8 out a State program pursuant to the Child Care and

9 Development Block Grant Act of 1990.

10 ‘‘(2) APPLICABLE RULES.—Any amount paid to

11 the State under this part that is used to carry out

12 a State program pursuant to the Child Care and De13 velopment Block Grant Act of 1990 shall not be sub14 ject to the requirements of this part, but shall be

15 subject to the requirements that apply to Federal

16 funds provided directly under such Act to carry out

17 the program.

18 ‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS

19 FOR ASSISTANCE.—A State may reserve amounts paid to

20 the State under this part for any fiscal year for the pur21 pose of providing, without fiscal year limitation, assistance

22 under the State program funded under this part.

23 ‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACE24 MENT PROGRAM.—A State to which a grant is made under

25 section 403 may use the grant to make payments (or pro-
46

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1 vide job placement vouchers) to State-approved public and

2 private job placement agencies that provide employment

3 placement services to individuals who receive assistance

4 under the State program funded under this part.

5 ‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT

6 TRANSFER SYSTEM.—A State to which a grant is made

7 under section 403 is encouraged to implement an elec8 tronic benefit transfer system for providing assistance

9 under the State program funded under this part, and may

10 use the grant for such purpose.

11 ‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.

12 ‘‘(a) QUARTERLY.—The Secretary shall pay each

13 grant payable to a State under section 403 in quarterly

14 installments.

15 ‘‘(b) NOTIFICATION.—Not later than 3 months before

16 the payment of any such quarterly installment to a State,

17 the Secretary shall notify the State of the amount of any

18 reduction determined under section 412(a)(1)(B) with re19 spect to the State.

20 ‘‘(c) COMPUTATION AND CERTIFICATION OF PAY21 MENTS TO STATES.—

22 ‘‘(1) COMPUTATION.—The Secretary shall esti23 mate the amount to be paid to each eligible State for

24 each quarter under this part, such estimate to be

25 based on a report filed by the State containing an
47

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1 estimate by the State of the total sum to be ex2 pended by the State in the quarter under the State

3 program funded under this part and such other in4 formation as the Secretary may find necessary.

5 ‘‘(2) CERTIFICATION.—The Secretary of Health

6 and Human Services shall certify to the Secretary of

7 the Treasury the amount estimated under paragraph

8 (1) with respect to a State, reduced or increased to

9 the extent of any overpayment or underpayment

10 which the Secretary of Health and Human Services

11 determines was made under this part to the State

12 for any prior quarter and with respect to which ad13 justment has not been made under this paragraph.

14 ‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi15 cation under subsection (c)(2) with respect to a State, the

16 Secretary of the Treasury shall, through the Fiscal Service

17 of the Department of the Treasury and before audit or

18 settlement by the General Accounting Office, pay to the

19 State, at the time or times fixed by the Secretary of

20 Health and Human Services, the amount so certified.

21 ‘‘(e) COLLECTION OF STATE OVERPAYMENTS TO

22 FAMILIES FROM FEDERAL TAX REFUNDS.—

23 ‘‘(1) IN GENERAL.—Upon receiving notice from

24 the Secretary of Health and Human Services that a

25 State agency administering a program funded under
48

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1 this part has notified the Secretary that a named

2 individual has been overpaid under the State pro3 gram funded under this part, the Secretary of the

4 Treasury shall determine whether any amounts as

5 refunds of Federal taxes paid are payable to such

6 individual, regardless of whether the individual filed

7 a tax return as a married or unmarried individual.

8 If the Secretary of the Treasury finds that any such

9 amount is so payable, the Secretary shall withhold

10 from such refunds an amount equal to the overpay11 ment sought to be collected by the State and pay

12 such amount to the State agency.

13 ‘‘(2) REGULATIONS.—The Secretary of the

14 Treasury shall issue regulations, after review by the

15 Secretary of Health and Human Services, that pro16 vide—

17 ‘‘(A) that a State may only submit under

18 paragraph (1) requests for collection of over19 payments with respect to individuals—

20 ‘‘(i) who are no longer receiving as21 sistance under the State program funded

22 under this part;

23 ‘‘(ii) with respect to whom the State

24 has already taken appropriate action under

25 State law against the income or resources
49

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1 of the individuals or families involved to

2 collect the past-due legally enforceable

3 debt; and

4 ‘‘(iii) to whom the State agency has

5 given notice of its intent to request with6 holding by the Secretary of the Treasury

7 from the income tax refunds of such indi8 viduals;

9 ‘‘(B) that the Secretary of the Treasury

10 will give a timely and appropriate notice to any

11 other person filing a joint return with the indi12 vidual whose refund is subject to withholding

13 under paragraph (1); and

14 ‘‘(C) the procedures that the State and the

15 Secretary of the Treasury will follow in carrying

16 out this subsection which, to the maximum ex17 tent feasible and consistent with the provisions

18 of this subsection, will be the same as those is19 sued pursuant to section 464(b) applicable to

20 collection of past-due child support.

21 ‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PRO22 GRAMS.

23 ‘‘(a) LOAN AUTHORITY.—
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•S 1867 IS

1 ‘‘(1) IN GENERAL.—The Secretary shall make

2 loans to any loan-eligible State, for a period to ma3 turity of not more than 3 years.

4 ‘‘(2) LOAN-ELIGIBLE STATE.—As used in para5 graph (1), the term ‘loan-eligible State’ means a

6 State against which a penalty has not been imposed

7 under section 409(e).

8 ‘‘(b) RATE OF INTEREST.—The Secretary shall

9 charge and collect interest on any loan made under this

10 section at a rate equal to the current average market yield

11 on outstanding marketable obligations of the United

12 States with remaining periods to maturity comparable to

13 the period to maturity of the loan.

14 ‘‘(c) USE OF LOAN.—A State shall use a loan made

15 to the State under this section only for any purpose for

16 which grant amounts received by the State under section

17 403(a) may be used, including—

18 ‘‘(1) welfare anti-fraud activities; and

19 ‘‘(2) the provision of assistance under the State

20 program to Indian families that have moved from

21 the service area of an Indian tribe with a tribal fam22 ily assistance plan approved under section 412.

23 ‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO

24 A STATE.—The cumulative dollar amount of all loans

25 made to a State under this section during fiscal years
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•S 1867 IS

1 1997 through 2001 shall not exceed 10 percent of the

2 State family assistance grant.

3 ‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTAND4 ING LOANS.—The total dollar amount of loans outstand5 ing under this section may not exceed $1,700,000,000.

6 ‘‘(f) APPROPRIATION.—Out of any money in the

7 Treasury of the United States not otherwise appropriated,

8 there are appropriated such sums as may be necessary for

9 the cost of loans under this section.

10 ‘‘SEC. 407. MANDATORY WORK REQUIREMENTS; INDIVID11 UAL RESPONSIBILITY PLANS.

12 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

13 ‘‘(1) ALL FAMILIES.—A State to which a grant

14 is made under section 403 for a fiscal year shall

15 achieve the minimum participation rate specified in

16 the following table for the fiscal year with respect to

17 all families receiving assistance under the State pro18 gram funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 15

1997 ............................................................... 20

1998 ............................................................... 25

1999 ............................................................... 30

2000 ............................................................... 35

2001 ............................................................... 40

2002 or thereafter ......................................... 50.

19 ‘‘(2) 2-PARENT FAMILIES.—A State to which a

20 grant is made under section 403 for a fiscal year
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•S 1867 IS

1 shall achieve the minimum participation rate speci2 fied in the following table for the fiscal year with re3 spect to 2-parent families receiving assistance under

4 the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 50

1997 ............................................................... 75

1998 ............................................................... 75

1999 or thereafter ......................................... 90.

5 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—

6 ‘‘(1) ALL FAMILIES.—

7 ‘‘(A) AVERAGE MONTHLY RATE.—For pur8 poses of subsection (a)(1), the participation

9 rate for all families of a State for a fiscal year

10 is the average of the participation rates for all

11 families of the State for each month in the fis12 cal year.

13 ‘‘(B) MONTHLY PARTICIPATION RATES.—

14 The participation rate of a State for all families

15 of the State for a month, expressed as a per16 centage, is—

17 ‘‘(i) the number of families receiving

18 assistance under the State program funded

19 under this part that include an adult who

20 is engaged in work for the month; divided

21 by

22 ‘‘(ii) the amount by which—
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•S 1867 IS

1 ‘‘(I) the number of families re2 ceiving such assistance during the

3 month that include an adult receiving

4 such assistance; exceeds

5 ‘‘(II) the number of families re6 ceiving such assistance that are sub7 ject in such month to a penalty de8 scribed in subsection (e)(1) but have

9 not been subject to such penalty for

10 more than 3 months within the pre11 ceding 12-month period (whether or

12 not consecutive).

13 ‘‘(C) SPECIAL RULE.—An individual shall

14 be considered to be engaged in work and to be

15 an adult recipient of assistance under a State

16 program funded under this part for purposes of

17 subparagraph (B) for the first 6 months

18 (whether or not consecutive) after the first ces19 sation of assistance to an individual under the

20 program during which the individual is em21 ployed for an average of more than 25 hours

22 per week in an unsubsidized job in the private

23 sector.

24 ‘‘(2) 2-PARENT FAMILIES.—
54

•S 1867 IS

1 ‘‘(A) AVERAGE MONTHLY RATE.—For pur2 poses of subsection (a)(2), the participation

3 rate for 2-parent families of a State for a fiscal

4 year is the average of the participation rates for

5 2-parent families of the State for each month in

6 the fiscal year.

7 ‘‘(B) MONTHLY PARTICIPATION RATES.—

8 The participation rate of a State for 2-parent

9 families of the State for a month shall be cal10 culated by use of the formula set forth in para11 graph (1)(B), except that in the formula the

12 term ‘number of 2-parent families’ shall be sub13 stituted for the term ‘number of families’ each

14 place such latter term appears.

15 ‘‘(3) PRO RATA REDUCTION OF PARTICIPATION

16 RATE DUE TO CASELOAD REDUCTIONS NOT RE17 QUIRED BY FEDERAL LAW.—

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

19 prescribe regulations for reducing the minimum

20 participation rate otherwise required by this

21 section for a fiscal year by the number of per22 centage points equal to the number of percent23 age points (if any) by which—

24 ‘‘(i) the number of families receiving

25 assistance during the fiscal year under the
55

•S 1867 IS

1 State program funded under this part is

2 less than

3 ‘‘(ii) the number of families that re4 ceived aid under the State plan approved

5 under part A (as in effect on September

6 30, 1995) during fiscal year 1995.

7 The minimum participation rate shall not be re8 duced to the extent that the Secretary deter9 mines that the reduction in the number of fami10 lies receiving such assistance is required by

11 Federal law.

12 ‘‘(B) ELIGIBILITY CHANGES NOT COUNT13 ED.—The regulations described in subpara14 graph (A) shall not take into account families

15 that are diverted from a State program funded

16 under this part as a result of differences in eli17 gibility criteria under a State program funded

18 under this part and eligibility criteria under the

19 State program operated under the State plan

20 approved under part A (as such plan and such

21 part were in effect on September 30, 1995).

22 Such regulations shall place the burden on the

23 Secretary to prove that such families were di24 verted as a direct result of differences in such

25 eligibility criteria.
56

•S 1867 IS

1 ‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS

2 RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY

3 ASSISTANCE PLAN.—For purposes of paragraphs

4 (1)(B) and (2)(B), a State may, at its option, in5 clude families receiving assistance under a tribal

6 family assistance plan approved under section 412.

7 ‘‘(5) STATE OPTION FOR PARTICIPATION RE8 QUIREMENT EXEMPTIONS.—For any fiscal year, a

9 State may, at its option, not require an individual

10 who is a single custodial parent caring for a child

11 who has not attained 12 months of age to engage in

12 work and may disregard such an individual in deter13 mining the participation rates under subsection (a).

14 ‘‘(c) ENGAGED IN WORK.—

15 ‘‘(1) ALL FAMILIES.—For purposes of sub16 section (b)(1)(B)(i), a recipient is engaged in work

17 for a month in a fiscal year if the recipient is par18 ticipating in such activities for at least the minimum

19 average number of hours per week specified in the

20 following table during the month, not fewer than 20

21 hours per week of which are attributable to an activ22 ity described in paragraph (1), (2), (3), (4), (5), (7),

23 or (8) of subsection (d) (or, if the participation of

24 the recipient in an activity described in subsection

25 (d)(6) has been taken into account for purposes of
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•S 1867 IS

1 paragraph (1) or (2) of subsection (b) for fewer than

2 4 weeks in the fiscal year, an activity described in

3 subsection (d)(6)):

The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

1996 ............................................................... 20

1997 ............................................................... 20

1998 ............................................................... 20

1999 or thereafter ......................................... 25.

4 ‘‘(2) 2-PARENT FAMILIES.—For purposes of

5 subsection (b)(2)(B)(i), an adult is engaged in work

6 for a month in a fiscal year if the adult is making

7 progress in such activities for at least 25 hours per

8 week during the month, not fewer than 20 hours per

9 week of which are attributable to an activity de10 scribed in paragraph (1), (2), (3), (4), (5), (7), or

11 (8) of subsection (d) (or, if the participation of the

12 recipient in an activity described in subsection (d)(6)

13 has been taken into account for purposes of para14 graph (1) or (2) of subsection (b) for fewer than 4

15 weeks in the fiscal year, an activity described in sub16 section (d)(6)).

17 ‘‘(3) LIMITATION ON VOCATIONAL EDUCATION

18 ACTIVITIES COUNTED AS WORK.—For purposes of

19 determining monthly participation rates under para20 graphs (1)(B)(i) and (2)(B)(i) of subsection (b), not

21 more than 20 percent of adults in all families and

22 in 2-parent families determined to be engaged in
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•S 1867 IS

1 work in the State for a month may meet the work

2 activity requirement through participation in voca3 tional educational training.

4 ‘‘(4) OPTION TO REDUCE NUMBER OF HOURS

5 OF WORK REQUIRED OF SINGLE PARENTS WITH A

6 CHILD UNDER AGE 6.—Notwithstanding paragraph

7 (1), a State may reduce to 20 the number of hours

8 per week during which a single custodial parent is

9 required pursuant to this section to engage in work

10 activities if the family of the parent includes an indi11 vidual who has not attained 6 years of age.

12 ‘‘(d) WORK ACTIVITIES DEFINED.—As used in this

13 section, the term ‘work activities’ means—

14 ‘‘(1) unsubsidized employment;

15 ‘‘(2) subsidized private sector employment;

16 ‘‘(3) subsidized public sector employment;

17 ‘‘(4) work experience (including work associated

18 with the refurbishing of publicly assisted housing) if

19 sufficient private sector employment is not available;

20 ‘‘(5) on-the-job training;

21 ‘‘(6) job search and job readiness assistance;

22 ‘‘(7) community service programs;

23 ‘‘(8) vocational educational training (not to ex24 ceed 12 months with respect to any individual);
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•S 1867 IS

1 ‘‘(9) job skills training directly related to em2 ployment;

3 ‘‘(10) education directly related to employment,

4 in the case of a recipient who has not attained 20

5 years of age, and has not received a high school di6 ploma or a certificate of high school equivalency; and

7 ‘‘(11) satisfactory attendance at secondary

8 school, in the case of a recipient who—

9 ‘‘(A) has not completed secondary school;

10 and

11 ‘‘(B) is a dependent child, or a head of

12 household who has not attained 20 years of age.

13 ‘‘(e) PENALTIES AGAINST INDIVIDUALS.—

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), if an adult in a family receiving assist16 ance under the State program funded under this

17 part refuses to engage in work required in accord18 ance with this section, the State shall—

19 ‘‘(A) reduce the amount of assistance oth20 erwise payable to the family pro rata (or more,

21 at the option of the State) with respect to any

22 period during a month in which the adult so re23 fuses; or

24 ‘‘(B) terminate such assistance,
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•S 1867 IS

1 subject to such good cause and other exceptions as

2 the State may establish.

3 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

4 (1), a State may not reduce or terminate assistance

5 under the State program funded under this part

6 based on a refusal of an adult to work if the adult

7 is a single custodial parent caring for a child who

8 has not attained 6 years of age, and the adult proves

9 that the adult has a demonstrated inability (as de10 termined by the State) to obtain needed child care,

11 for 1 or more of the following reasons:

12 ‘‘(A) Unavailability of appropriate child

13 care within a reasonable distance from the indi14 vidual’s home or work site.

15 ‘‘(B) Unavailability or unsuitability of in16 formal child care by a relative or under other

17 arrangements.

18 ‘‘(C) Unavailability of appropriate and af19 fordable formal child care arrangements.

20 ‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

22 an adult in a family receiving assistance under a

23 State program funded under this part attributable to

24 funds provided by the Federal Government may fill
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•S 1867 IS

1 a vacant employment position in order to engage in

2 a work activity described in subsection (d).

3 ‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No

4 adult in a work activity described in subsection (d)

5 which is funded, in whole or in part, by funds pro6 vided by the Federal Government shall be employed

7 or assigned—

8 ‘‘(A) when any other individual is on layoff

9 from the same or any substantially equivalent

10 job; or

11 ‘‘(B) if the employer has terminated the

12 employment of any regular employee or other13 wise caused an involuntary reduction of its

14 workforce in order to fill the vacancy so created

15 with an adult described in paragraph (1).

16 ‘‘(3) NO PREEMPTION.—Nothing in this sub17 section shall preempt or supersede any provision of

18 State or local law that provides greater protection

19 for employees from displacement.

20 ‘‘(g) INDIVIDUAL RESPONSIBILITY PLANS.—

21 ‘‘(1) ASSESSMENT.—The State agency respon22 sible for administering the State program funded

23 under this part shall make an initial assessment of

24 the skills, prior work experience, and employability
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•S 1867 IS

1 of each applicant for, or recipient of, assistance

2 under the program who—

3 ‘‘(A) has attained 18 years of age; or

4 ‘‘(B) has not completed high school or ob5 tained a certificate of high school equivalency,

6 and is not attending secondary school.

7 ‘‘(2) CONTENTS OF PLANS.—

8 ‘‘(A) IN GENERAL.—On the basis of the

9 assessment made under paragraph (1) with re10 spect to an individual, the State agency, in con11 sultation with the individual, shall develop an

12 individual responsibility plan for the individual,

13 which—

14 ‘‘(i) shall provide that participation by

15 the individual in job search activities shall

16 be a condition of eligibility for assistance

17 under the State program funded under this

18 part, except during any period for which

19 the individual is employed full-time in an

20 unsubsidized job in the private sector;

21 ‘‘(ii) sets forth an employment goal

22 for the individual and a plan for moving

23 the individual immediately into private sec24 tor employment;
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•S 1867 IS

1 ‘‘(iii) sets forth the obligations of the

2 individual, which may include a require3 ment that the individual attend school,

4 maintain certain grades and attendance,

5 keep school age children of the individual

6 in school, immunize children, attend

7 parenting and money management classes,

8 or do other things that will help the indi9 vidual become and remain employed in the

10 private sector;

11 ‘‘(iv) to the greatest extent possible

12 shall be designed to move the individual

13 into whatever private sector employment

14 the individual is capable of handling as

15 quickly as possible, and to increase the re16 sponsibility and amount of work the indi17 vidual is to handle over time;

18 ‘‘(v) shall describe the services the

19 State will provide the individual so that the

20 individual will be able to obtain and keep

21 employment in the private sector, and de22 scribe the job counseling and other services

23 that will be provided by the State; and
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•S 1867 IS

1 ‘‘(vi) at the option of the State, may

2 require the individual to undergo appro3 priate substance abuse treatment.

4 ‘‘(B) TIMING.—The State agency shall

5 comply with subparagraph (A) with respect to

6 an individual—

7 ‘‘(i) within 90 days (or, at the option

8 of the State, 180 days) after the effective

9 date of this part, in the case of an individ10 ual who, as of such effective date, is a re11 cipient of aid under the State plan ap12 proved under part A (as in effect imme13 diately before such effective date); or

14 ‘‘(ii) within 30 days (or, at the option

15 of the State, 90 days) after the individual

16 is determined to be eligible for such assist17 ance, in the case of any other individual.

18 ‘‘(3) PROVISION OF PROGRAM AND EMPLOY19 MENT INFORMATION.—The State shall inform all ap20 plicants for and recipients of assistance under the

21 State program funded under this part of all avail22 able services under the program for which they are

23 eligible.

24 ‘‘(4) PENALTY FOR NONCOMPLIANCE BY INDI25 VIDUAL.—The State shall reduce, by such amount
65

•S 1867 IS

1 as the State considers appropriate, the amount of

2 assistance otherwise payable under the State pro3 gram funded under this part to a family that in4 cludes an individual who fails without good cause to

5 comply with an individual responsibility plan signed

6 by the individual.

7 ‘‘(h) SENSE OF THE CONGRESS.—It is the sense of

8 the Congress that in complying with this section, each

9 State that operates a program funded under this part is

10 encouraged to assign the highest priority to requiring

11 adults in 2-parent families and adults in single-parent

12 families that include older preschool or school-age children

13 to be engaged in work activities.

14 ‘‘(i) SENSE OF THE CONGRESS THAT STATES

15 SHOULD IMPOSE CERTAIN REQUIREMENTS ON NON16 CUSTODIAL, NONSUPPORTING MINOR PARENTS.—It is the

17 sense of the Congress that the States should require non18 custodial, nonsupporting parents who have not attained 18

19 years of age to fulfill community work obligations and at20 tend appropriate parenting or money management classes

21 after school.

22 ‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

23 ‘‘(a) IN GENERAL.—

24 ‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A

25 MINOR CHILD.—A State to which a grant is made
66

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1 under section 403 shall not use any part of the

2 grant to provide assistance to a family, unless the

3 family includes—

4 ‘‘(A) a minor child who resides with a cus5 todial parent or other adult caretaker relative of

6 the child; or

7 ‘‘(B) a pregnant individual.

8 ‘‘(2) NO ADDITIONAL CASH ASSISTANCE FOR

9 CHILDREN BORN TO FAMILIES RECEIVING ASSIST10 ANCE.—

11 ‘‘(A) GENERAL RULE.—A State to which a

12 grant is made under section 403 shall not use

13 any part of the grant to provide cash benefits

14 for a minor child who is born to—

15 ‘‘(i) a recipient of assistance under

16 the program operated under this part; or

17 ‘‘(ii) a person who received such as18 sistance at any time during the 10-month

19 period ending with the birth of the child.

20 ‘‘(B) EXCEPTION FOR CHILDREN BORN

21 INTO FAMILIES WITH NO OTHER CHILDREN.—

22 Subparagraph (A) shall not apply to a minor

23 child who is born into a family that does not in24 clude any other children.
67

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1 ‘‘(C) EXCEPTION FOR VOUCHERS.—Sub2 paragraph (A) shall not apply to vouchers

3 which are provided in lieu of cash benefits and

4 which may be used only to pay for particular

5 goods and services specified by the State as

6 suitable for the care of the child involved.

7 ‘‘(D) EXCEPTION FOR RAPE OR INCEST.—

8 Subparagraph (A) shall not apply with respect

9 to a child who is born as a result of rape or in10 cest.

11 ‘‘(E) STATE ELECTION TO OPT OUT.—Sub12 paragraph (A) shall not apply to a State if

13 State law specifically exempts the State pro14 gram funded under this part from the applica15 tion of subparagraph (A).

16 ‘‘(F) SUBSTITUTION OF FAMILY CAPS IN

17 EFFECT UNDER WAIVERS.—Subparagraph (A)

18 shall not apply to a State—

19 ‘‘(i) if, as of the date of the enactment

20 of this part, there is in effect a waiver ap21 proved by the Secretary under section

22 1115 which permits the State to deny aid

23 under the State plan approved under part

24 A of this title (as in effect without regard

25 to the amendments made by title I of the
68

•S 1867 IS

1 Bipartisan Welfare Reform Act of 1996) to

2 a family by reason of the birth of a child

3 to a family member otherwise eligible for

4 such aid; and

5 ‘‘(ii) for so long as the State contin6 ues to implement such policy under the

7 State program funded under this part,

8 under rules prescribed by the State.

9 ‘‘(3) REDUCTION OR ELIMINATION OF ASSIST10 ANCE FOR NONCOOPERATION IN CHILD SUPPORT.—

11 If the agency responsible for administering the State

12 plan approved under part D determines that an indi13 vidual is not cooperating with the State in establish14 ing, modifying, or enforcing a support order with re15 spect to a child of the individual, then the State—

16 ‘‘(A) shall deduct from the assistance that

17 would otherwise be provided to the family of the

18 individual under the State program funded

19 under this part the share of such assistance at20 tributable to the individual; and

21 ‘‘(B) may deny the family any assistance

22 under the State program.

23 ‘‘(4) NO ASSISTANCE FOR FAMILIES NOT AS24 SIGNING CERTAIN SUPPORT RIGHTS TO THE

25 STATE.—
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•S 1867 IS

1 ‘‘(A) IN GENERAL.—A State to which a

2 grant is made under section 403 shall require,

3 as a condition of providing assistance to a fam4 ily under the State program funded under this

5 part, that a member of the family assign to the

6 State any rights the family member may have

7 (on behalf of the family member or of any other

8 person for whom the family member has applied

9 for or is receiving such assistance) to support

10 from any other person, not exceeding the total

11 amount of assistance so provided to the family,

12 which accrue (or have accrued) before the date

13 the family leaves the program, which assign14 ment, on and after the date the family leaves

15 the program, shall not apply with respect to any

16 support (other than support collected pursuant

17 to section 464) which accrued before the family

18 received such assistance and which the State

19 has not collected by—

20 ‘‘(i) September 30, 2000, if the as21 signment is executed on or after October 1,

22 1997, and before October 1, 2000; or

23 ‘‘(ii) the date the family leaves the

24 program, if the assignment is executed on

25 or after October 1, 2000.
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•S 1867 IS

1 ‘‘(B) LIMITATION.—A State to which a

2 grant is made under section 403 shall not re3 quire, as a condition of providing assistance to

4 any family under the State program funded

5 under this part, that a member of the family

6 assign to the State any rights to support de7 scribed in subparagraph (A) which accrue after

8 the date the family leaves the program, except

9 to the extent necessary to enable the State to

10 comply with section 457.

11 ‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS

12 WHO DO NOT ATTEND HIGH SCHOOL OR OTHER

13 EQUIVALENT TRAINING PROGRAM.—A State to

14 which a grant is made under section 403 shall not

15 use any part of the grant to provide assistance to an

16 individual who has not attained 18 years of age, is

17 not married, has a minor child at least 12 weeks of

18 age in his or her care, and has not successfully com19 pleted a high-school education (or its equivalent), if

20 the individual does not participate in—

21 ‘‘(A) educational activities directed toward

22 the attainment of a high school diploma or its

23 equivalent; or

24 ‘‘(B) an alternative educational or training

25 program that has been approved by the State.
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•S 1867 IS

1 ‘‘(6) NO ASSISTANCE FOR TEENAGE PARENTS

2 NOT LIVING IN ADULT-SUPERVISED SETTINGS.—

3 ‘‘(A) IN GENERAL.—

4 ‘‘(i) REQUIREMENT.—Except as pro5 vided in subparagraph (B), a State to

6 which a grant is made under section 403

7 shall not use any part of the grant to pro8 vide assistance to an individual described

9 in clause (ii) of this subparagraph if the

10 individual and the minor child referred to

11 in clause (ii)(II) do not reside in a place of

12 residence maintained by a parent, legal

13 guardian, or other adult relative of the in14 dividual as such parent’s, guardian’s, or

15 adult relative’s own home.

16 ‘‘(ii) INDIVIDUAL DESCRIBED.—For

17 purposes of clause (i), an individual de18 scribed in this clause is an individual

19 who—

20 ‘‘(I) has not attained 18 years of

21 age; and

22 ‘‘(II) is not married, and has a

23 minor child in his or her care.

24 ‘‘(B) EXCEPTION.—
72

•S 1867 IS

1 ‘‘(i) PROVISION OF, OR ASSISTANCE IN

2 LOCATING, ADULT-SUPERVISED LIVING AR3 RANGEMENT.—In the case of an individual

4 who is described in clause (ii), the State

5 agency referred to in section 402(a)(4)

6 shall provide, or assist the individual in lo7 cating, a second chance home, maternity

8 home, or other appropriate adult-super9 vised supportive living arrangement, taking

10 into consideration the needs and concerns

11 of the individual, unless the State agency

12 determines that the individual’s current

13 living arrangement is appropriate, and

14 thereafter shall require that the individual

15 and the minor child referred to in subpara16 graph (A)(ii)(II) reside in such living ar17 rangement as a condition of the continued

18 receipt of assistance under the State pro19 gram funded under this part attributable

20 to funds provided by the Federal Govern21 ment (or in an alternative appropriate ar22 rangement, should circumstances change

23 and the current arrangement cease to be

24 appropriate).
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•S 1867 IS

1 ‘‘(ii) INDIVIDUAL DESCRIBED.—For

2 purposes of clause (i), an individual is de3 scribed in this clause if the individual is

4 described in subparagraph (A)(ii), and—

5 ‘‘(I) the individual has no parent,

6 legal guardian or other appropriate

7 adult relative described in subclause

8 (II) of his or her own who is living

9 or whose whereabouts are known;

10 ‘‘(II) no living parent, legal

11 guardian, or other appropriate adult

12 relative, who would otherwise meet

13 applicable State criteria to act as the

14 individual’s legal guardian, of such in15 dividual allows the individual to live in

16 the home of such parent, guardian, or

17 relative;

18 ‘‘(III) the State agency deter19 mines that—

20 ‘‘(aa) the individual or the

21 minor child referred to in sub22 paragraph (A)(ii)(II) is being or

23 has been subjected to serious

24 physical or emotional harm, sex25 ual abuse, or exploitation in the
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•S 1867 IS

1 residence of the individual’s own

2 parent or legal guardian; or

3 ‘‘(bb) substantial evidence

4 exists of an act or failure to act

5 that presents an imminent or se6 rious harm if the individual and

7 the minor child lived in the same

8 residence with the individual’s

9 own parent or legal guardian; or

10 ‘‘(IV) the State agency otherwise

11 determines that it is in the best inter12 est of the minor child to waive the re13 quirement of subparagraph (A) with

14 respect to the individual or the minor

15 child.

16 ‘‘(iii) SECOND-CHANCE HOME.—For

17 purposes of this subparagraph, the term

18 ‘second-chance home’ means an entity that

19 provides individuals described in clause (ii)

20 with a supportive and supervised living ar21 rangement in which such individuals are

22 required to learn parenting skills, including

23 child development, family budgeting, health

24 and nutrition, and other skills to promote
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•S 1867 IS

1 their long-term economic independence and

2 the well-being of their children.

3 ‘‘(7) NO MEDICAL SERVICES.—

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

5 subparagraph (B), a State to which a grant is

6 made under section 403 shall not use any part

7 of the grant to provide medical services.

8 ‘‘(B) EXCEPTION FOR FAMILY PLANNING

9 SERVICES.—As used in subparagraph (A), the

10 term ‘medical services’ does not include family

11 planning services.

12 ‘‘(8) NO ASSISTANCE FOR MORE THAN 5

13 YEARS.—

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

15 subparagraphs (B) and (C), a State to which a

16 grant is made under section 403 shall not use

17 any part of the grant to provide cash assistance

18 to a family that includes an adult who has re19 ceived assistance under any State program

20 funded under this part attributable to funds

21 provided by the Federal Government, for 60

22 months (whether or not consecutive) after the

23 date the State program funded under this part

24 commences.
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1 ‘‘(B) MINOR CHILD EXCEPTION.—In deter2 mining the number of months for which an in3 dividual who is a parent or pregnant has re4 ceived assistance under the State program

5 funded under this part, the State shall dis6 regard any month for which such assistance

7 was provided with respect to the individual and

8 during which the individual was—

9 ‘‘(i) a minor child; and

10 ‘‘(ii) not the head of a household or

11 married to the head of a household.

12 ‘‘(C) HARDSHIP EXCEPTION.—

13 ‘‘(i) IN GENERAL.—The State may ex14 empt a family from the application of sub15 paragraph (A) by reason of hardship or if

16 the family includes an individual who has

17 been battered or subjected to extreme cru18 elty.

19 ‘‘(ii) LIMITATION.—The number of

20 families with respect to which an exemp21 tion made by a State under clause (i) is in

22 effect for a fiscal year shall not exceed 20

23 percent of the average monthly number of

24 families to which assistance is provided
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•S 1867 IS

1 under the State program funded under this

2 part.

3 ‘‘(iii) BATTERED OR SUBJECT TO EX4 TREME CRUELTY DEFINED.—For purposes

5 of clause (i), an individual has been bat6 tered or subjected to extreme cruelty if the

7 individual has been subjected to—

8 ‘‘(I) physical acts that resulted

9 in, or threatened to result in, physical

10 injury to the individual;

11 ‘‘(II) sexual abuse;

12 ‘‘(III) sexual activity involving a

13 dependent child;

14 ‘‘(IV) being forced as the care15 taker relative of a dependent child to

16 engage in nonconsensual sexual acts

17 or activities;

18 ‘‘(V) threats of, or attempts at,

19 physical or sexual abuse;

20 ‘‘(VI) mental abuse; or

21 ‘‘(VII) neglect or deprivation of

22 medical care.

23 ‘‘(D) RULE OF INTERPRETATION.—Sub24 paragraph (A) shall not be interpreted to re25 quire any State to provide assistance to any in-
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•S 1867 IS

1 dividual for any period of time under the State

2 program funded under this part.

3 ‘‘(9) DENIAL OF ASSISTANCE FOR 10 YEARS TO

4 A PERSON FOUND TO HAVE FRAUDULENTLY MIS5 REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS6 SISTANCE IN 2 OR MORE STATES.—A State to which

7 a grant is made under section 403 shall not use any

8 part of the grant to provide cash assistance to an in9 dividual during the 10-year period that begins on

10 the date the individual is convicted in Federal or

11 State court of having made a fraudulent statement

12 or representation with respect to the place of resi13 dence of the individual in order to receive assistance

14 simultaneously from 2 or more States under pro15 grams that are funded under this title, title XIX, or

16 the Food Stamp Act of 1977, or benefits in 2 or

17 more States under the supplemental security income

18 program under title XVI.

19 ‘‘(10) DENIAL OF ASSISTANCE FOR FUGITIVE

20 FELONS AND PROBATION AND PAROLE VIOLA21 TORS.—

22 ‘‘(A) IN GENERAL.—A State to which a

23 grant is made under section 403 shall not use

24 any part of the grant to provide assistance to

25 any individual who is—
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1 ‘‘(i) fleeing to avoid prosecution, or

2 custody or confinement after conviction,

3 under the laws of the place from which the

4 individual flees, for a crime, or an attempt

5 to commit a crime, which is a felony under

6 the laws of the place from which the indi7 vidual flees, or which, in the case of the

8 State of New Jersey, is a high mis9 demeanor under the laws of such State; or

10 ‘‘(ii) violating a condition of probation

11 or parole imposed under Federal or State

12 law.

13 ‘‘(B) EXCHANGE OF INFORMATION WITH

14 LAW ENFORCEMENT AGENCIES.—If a State to

15 which a grant is made under section 403 estab16 lishes safeguards against the use or disclosure

17 of information about applicants or recipients of

18 assistance under the State program funded

19 under this part, the safeguards shall not pre20 vent the State agency administering the pro21 gram from furnishing a Federal, State, or local

22 law enforcement officer, upon the request of the

23 officer, with the current address of any recipi24 ent if the officer furnishes the agency with the
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•S 1867 IS

1 name of the recipient and notifies the agency

2 that—

3 ‘‘(i) the recipient—

4 ‘‘(I) is described in subparagraph

5 (A); or

6 ‘‘(II) has information that is nec7 essary for the officer to conduct the

8 official duties of the officer; and

9 ‘‘(ii) the location or apprehension of

10 the recipient is within such official duties.

11 ‘‘(11) DENIAL OF ASSISTANCE FOR MINOR

12 CHILDREN WHO ARE ABSENT FROM THE HOME FOR

13 A SIGNIFICANT PERIOD.—

14 ‘‘(A) IN GENERAL.—A State to which a

15 grant is made under section 403 shall not use

16 any part of the grant to provide assistance for

17 a minor child who has been, or is expected by

18 a parent (or other caretaker relative) of the

19 child to be, absent from the home for a period

20 of 45 consecutive days or, at the option of the

21 State, such period of not less than 30 and not

22 more than 90 consecutive days as the State

23 may provide for in the State plan submitted

24 pursuant to section 402.
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•S 1867 IS

1 ‘‘(B) STATE AUTHORITY TO ESTABLISH

2 GOOD CAUSE EXCEPTIONS.—The State may es3 tablish such good cause exceptions to subpara4 graph (A) as the State considers appropriate if

5 such exceptions are provided for in the State

6 plan submitted pursuant to section 402.

7 ‘‘(C) DENIAL OF ASSISTANCE FOR REL8 ATIVE WHO FAILS TO NOTIFY STATE AGENCY

9 OF ABSENCE OF CHILD.—A State to which a

10 grant is made under section 403 shall not use

11 any part of the grant to provide assistance for

12 an individual who is a parent (or other care13 taker relative) of a minor child and who fails

14 to notify the agency administering the State

15 program funded under this part of the absence

16 of the minor child from the home for the period

17 specified in or provided for pursuant to sub18 paragraph (A), by the end of the 5-day period

19 that begins with the date that it becomes clear

20 to the parent (or relative) that the minor child

21 will be absent for such period so specified or

22 provided for.

23 ‘‘(12) INCOME SECURITY PAYMENTS NOT TO BE

24 DISREGARDED IN DETERMINING THE AMOUNT OF

25 ASSISTANCE TO BE PROVIDED TO A FAMILY.—If a
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•S 1867 IS

1 State to which a grant is made under section 403

2 uses any part of the grant to provide assistance for

3 any individual who is receiving a payment under a

4 State plan for old-age assistance approved under

5 section 2, a State program funded under part B that

6 provides cash payments for foster care, or the sup7 plemental security income program under title XVI,

8 then the State shall not disregard the payment in

9 determining the amount of assistance to be provided

10 under the State program funded under this part,

11 from funds provided by the Federal Government, to

12 the family of which the individual is a member.

13 ‘‘(13) PROVISION OF VOUCHERS TO FAMILIES

14 DENIED CASH ASSISTANCE DUE TO STATE-IMPOSED

15 TIME LIMITS.—

16 ‘‘(A) REQUIREMENT.—If a family is denied

17 assistance under the State program funded

18 under this part by reason of a time limit im19 posed by the State other than pursuant to para20 graph (8), the State shall provide vouchers to

21 the family in accordance with subparagraph

22 (B).

23 ‘‘(B) CHARACTERISTICS OF VOUCHERS.—

24 The vouchers referred to in subparagraph (A)

25 shall be—
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•S 1867 IS

1 ‘‘(i) in an amount equal to the

2 amount determined by the State to meet

3 the needs of only the child or children in

4 the family, which shall be determined in

5 the same manner as the State would other6 wise determines the needs of the child or

7 children under the program;

8 ‘‘(ii) designed appropriately to pay a

9 third party for goods and services to be

10 provided by the third party to the child or

11 children in the family; and

12 ‘‘(iii) redeemable by a third party de13 scribed in clause (ii) for a dollar amount

14 equal to the amount of the voucher.

15 ‘‘(b) ALIENS.—For special rules relating to the treat16 ment of aliens, see section 402 of the Bipartisan Welfare

17 Reform Act of 1996.

18 ‘‘SEC. 409. PENALTIES.

19 ‘‘(a) IN GENERAL.—Subject to this section:

20 ‘‘(1) FAILURE TO SUBMIT REQUIRED RE21 PORT.—

22 ‘‘(A) IN GENERAL.—If the Secretary deter23 mines that a State has not, within 1 month

24 after the end of a fiscal quarter, submitted the

25 report required by section 411(a) for the quar-
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•S 1867 IS

1 ter year, the Secretary shall reduce the grant

2 payable to the State under section 403(a)(1) for

3 the immediately succeeding fiscal year by an

4 amount equal to 4 percent of the State family

5 assistance grant.

6 ‘‘(B) RESCISSION OF PENALTY.—The Sec7 retary shall rescind a penalty imposed on a

8 State under subparagraph (A) with respect to a

9 report for a fiscal quarter if the State submits

10 the report before the end of the immediately

11 succeeding fiscal quarter.

12 ‘‘(2) FAILURE TO PARTICIPATE IN THE INCOME

13 AND ELIGIBILITY VERIFICATION SYSTEM.—If the

14 Secretary determines that a State program funded

15 under this part is not participating during a fiscal

16 year in the income and eligibility verification system

17 required by section 1137, the Secretary shall reduce

18 the grant payable to the State under section

19 403(a)(1) for the immediately succeeding fiscal year

20 by an amount equal to not more than 2 percent of

21 the State family assistance grant.

22 ‘‘(3) FAILURE TO COMPLY WITH PATERNITY ES23 TABLISHMENT AND CHILD SUPPORT ENFORCEMENT

24 REQUIREMENTS UNDER PART D.—Notwithstanding

25 any other provision of this Act, if the Secretary de-
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•S 1867 IS

1 termines that the State agency that administers a

2 program funded under this part does not enforce the

3 penalties requested by the agency administering part

4 D against recipients of assistance under the State

5 program who fail to cooperate in establishing pater6 nity in accordance with such part, the Secretary

7 shall reduce the grant payable to the State under

8 section 403(a)(1) for the immediately succeeding fis9 cal year (without regard to this section) by not more

10 than 5 percent.

11 ‘‘(4) FAILURE TO TIMELY REPAY A FEDERAL

12 LOAN FUND FOR STATE WELFARE PROGRAMS.—If

13 the Secretary determines that a State has failed to

14 repay any amount borrowed from the Federal Loan

15 Fund for State Welfare Programs established under

16 section 406 within the period of maturity applicable

17 to the loan, plus any interest owed on the loan, the

18 Secretary shall reduce the grant payable to the State

19 under section 403(a)(1) for the immediately succeed20 ing fiscal year quarter (without regard to this sec21 tion) by the outstanding loan amount, plus the inter22 est owed on the outstanding amount. The Secretary

23 shall not forgive any outstanding loan amount or in24 terest owed on the outstanding amount.
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•S 1867 IS

1 ‘‘(5) FAILURE OF ANY STATE TO MAINTAIN

2 CERTAIN LEVEL OF HISTORIC EFFORT.—

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

4 reduce the grant payable to the State under

5 section 403(a)(1) for fiscal year 1997, 1998,

6 1999, 2000, 2001, or 2002 by the amount (if

7 any) by which qualified State expenditures for

8 the then immediately preceding fiscal year is

9 less than the applicable percentage of historic

10 State expenditures with respect to the fiscal

11 year.

12 ‘‘(B) DEFINITIONS.—As used in this para13 graph:

14 ‘‘(i) QUALIFIED STATE EXPENDI15 TURES.—

16 ‘‘(I) IN GENERAL.—The term

17 ‘qualified State expenditures’ means,

18 with respect to a State and a fiscal

19 year, the total expenditures by the

20 State during the fiscal year, under all

21 State programs, for any of the follow22 ing with respect to eligible families:

23 ‘‘(aa) Cash assistance.

24 ‘‘(bb) Child care assistance.
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•S 1867 IS

1 ‘‘(cc) Educational activities

2 designed to increase self-suffi3 ciency, job training, and work,

4 excluding any expenditure for

5 public education in the State ex6 cept expenditures which involve

7 the provision of services or assist8 ance to a member of an eligible

9 family which is not generally

10 available to persons who are not

11 members of eligible families.

12 ‘‘(dd) Administrative costs

13 in connection with the matters

14 described in items (aa), (bb),

15 (cc), and (ee), but only to the ex16 tent that such costs do not ex17 ceed 15 percent of the total

18 amount of qualified State ex19 penditures for the fiscal year.

20 ‘‘(ee) Any other use of funds

21 allowable under section

22 404(a)(1).

23 ‘‘(II) EXCLUSION OF TRANSFERS

24 FROM OTHER STATE AND LOCAL PRO25 GRAMS.—Such term does not include
88

•S 1867 IS

1 expenditures under any State or local

2 program during a fiscal year, except

3 to the extent that—

4 ‘‘(aa) such expenditures ex5 ceed the amount expended under

6 the State or local program in the

7 fiscal year most recently ending

8 before the date of the enactment

9 of this part; or

10 ‘‘(bb) the State is entitled to

11 a payment under former section

12 403 (as in effect immediately be13 fore such date of enactment) with

14 respect to such expenditures.

15 ‘‘(III) ELIGIBLE FAMILIES.—As

16 used in subclause (I), the term ‘eligi17 ble families’ means families eligible

18 for assistance under the State pro19 gram funded under this part, and

20 families who would be eligible for such

21 assistance but for the application of

22 paragraph (2) or (8) of section 408(a)

23 of this Act or section 402 of the Bi24 partisan Welfare Reform Act of 1996.
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•S 1867 IS

1 ‘‘(ii) APPLICABLE PERCENTAGE.—The

2 term ‘applicable percentage’ means—

3 ‘‘(I) for fiscal year 1996, 85 per4 cent; and

5 ‘‘(II) for fiscal years 1997, 1998,

6 1999, 2000, and 2001, 85 percent ad7 justed (if appropriate) in accordance

8 with subparagraph (C).

9 ‘‘(iii) HISTORIC STATE EXPENDI10 TURES.—The term ‘historic State expendi11 tures’ means, with respect to a State and

12 a fiscal year specified in subparagraph (A),

13 the lesser of—

14 ‘‘(I) the expenditures by the

15 State under parts A and F (as in ef16 fect during fiscal year 1994) for fiscal

17 year 1994; or

18 ‘‘(II) the amount which bears the

19 same ratio to the amount described in

20 subclause (I) as—

21 ‘‘(aa) the State family as22 sistance grant for the fiscal year

23 immediately preceding the fiscal

24 year specified in subparagraph

25 (A), plus the total amount re-
90

•S 1867 IS

1 quired to be paid to the State

2 under former section 403 for fis3 cal year 1994 with respect to

4 amounts expended by the State

5 for child care under subsection

6 (g) or (i) of section 402 (as in ef7 fect during fiscal year 1994);

8 bears to

9 ‘‘(bb) the total amount re10 quired to be paid to the State

11 under former section 403 (as in

12 effect during fiscal year 1994)

13 for fiscal year 1994.

14 Such term does not include any expendi15 tures under the State plan approved under

16 part A (as so in effect) on behalf of indi17 viduals covered by a tribal family assist18 ance plan approved under section 412, as

19 determined by the Secretary.

20 ‘‘(iv) EXPENDITURES BY THE

21 STATE.—The term ‘expenditures by the

22 State’ does not include—

23 ‘‘(I) any expenditures from

24 amounts made available by the Fed25 eral Government;
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•S 1867 IS

1 ‘‘(II) State funds expended for

2 the medicaid program under title

3 XIX; or

4 ‘‘(III) any State funds which are

5 used to match Federal funds or are

6 expended as a condition of receiving

7 Federal funds under Federal pro8 grams other than under this part.

9 ‘‘(C) PERFORMANCE-BASED ADJUSTMENTS

10 TO APPLICABLE PERCENTAGE.—

11 ‘‘(i) INCREASE IN MAINTENANCE OF

12 EFFORT THRESHOLD FOR FAILURE TO

13 MEET PARTICIPATION RATES.—If the Sec14 retary determines that a State has failed

15 to achieve the participation rate required

16 by section 407 for a fiscal year, the Sec17 retary shall increase the applicable per18 centage for the State for the immediately

19 succeeding fiscal year by not more than 5

20 percentage points.

21 ‘‘(ii) REDUCTION IN MAINTENANCE OF

22 EFFORT THRESHOLD FOR HIGH PERFORM23 ANCE STATES.—

24 ‘‘(I) CRITERIA.—The Secretary

25 shall, by regulation, establish meas-
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•S 1867 IS

1 ures of the effectiveness of the State

2 program funded under this part in

3 moving recipients of assistance under

4 the program into full-time

5 unsubsidized employment. In develop6 ing the regulations, the Secretary

7 shall take into account the length of

8 time former recipients of assistance

9 under the program remain employed,

10 the earnings of such former recipients

11 who obtain private sector employment,

12 the total State caseload under the

13 program, and the rate of unemploy14 ment in the State.

15 ‘‘(II) REDUCTION OF THRESH16 OLD.—The Secretary shall reduce the

17 applicable percentage for a State for a

18 fiscal year by not more than 5 per19 centage points if the Secretary deter20 mines that the State achieved the par21 ticipation rate required by section 407

22 for the immediately preceding fiscal

23 year and exceeded such performance

24 threshold as the Secretary may estab25 lish under subclause (I) of this clause.
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•S 1867 IS

1 ‘‘(6) SUBSTANTIAL NONCOMPLIANCE OF STATE

2 CHILD SUPPORT ENFORCEMENT PROGRAM WITH RE3 QUIREMENTS OF PART D.—

4 ‘‘(A) IN GENERAL.—If a State program

5 operated under part D is found as a result of

6 a review conducted under section 452(a)(4) not

7 to have complied substantially with the require8 ments of such part for any quarter, and the

9 Secretary determines that the program is not

10 complying substantially with such requirements

11 at the time the finding is made, the Secretary

12 shall reduce the grant payable to the State

13 under section 403(a)(1) for the quarter and

14 each subsequent quarter that ends before the

15 1st quarter throughout which the program is

16 found to be in substantial compliance with such

17 requirements by—

18 ‘‘(i) not less than 1 nor more than 2

19 percent;

20 ‘‘(ii) not less than 2 nor more than 3

21 percent, if the finding is the 2nd consecu22 tive such finding made as a result of such

23 a review; or

24 ‘‘(iii) not less than 3 nor more than 5

25 percent, if the finding is the 3rd or a sub-
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•S 1867 IS

1 sequent consecutive such finding made as a

2 result of such a review.

3 ‘‘(B) DISREGARD OF NONCOMPLIANCE

4 WHICH IS OF A TECHNICAL NATURE.—For pur5 poses of subparagraph (A) of this paragraph

6 and section 452(a)(4), a State which is not in

7 full compliance with the requirements of this

8 part shall be determined to be in substantial

9 compliance with such requirements only if the

10 Secretary determines that any noncompliance

11 with such requirements is of a technical nature

12 which does not adversely affect the performance

13 of the State’s program operated under part D.

14 ‘‘(7) FAILURE OF STATE RECEIVING AMOUNTS

15 FROM CONTINGENCY FUND TO MAINTAIN 100 PER16 CENT OF HISTORIC EFFORT.—If, at the end of any

17 fiscal year during which amounts from the Contin18 gency Fund for State Welfare Programs have been

19 paid to a State, the Secretary finds that the State

20 has failed, during the fiscal year, to expend under

21 the State program funded under this part an

22 amount equal to at least 100 percent of the level of

23 historic State expenditures (as defined in paragraph

24 (7)(B)(iii) of this subsection) with respect to the fis25 cal year, the Secretary shall reduce the grant pay-
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•S 1867 IS

1 able to the State under section 403(a)(1) for the im2 mediately succeeding fiscal year by the total of the

3 amounts so paid to the State.

4 ‘‘(8) FAILURE TO EXPEND ADDITIONAL STATE

5 FUNDS TO REPLACE GRANT REDUCTIONS.—If the

6 grant payable to a State under section 403(a)(1) for

7 a fiscal year is reduced by reason of this subsection,

8 the State shall, during the immediately succeeding

9 fiscal year, expend under the State program funded

10 under this part an amount equal to the total amount

11 of such reductions.

12 ‘‘(9) FAILURE TO PROVIDE VOUCHER ASSIST13 ANCE.—If the Secretary determines that a State

14 program funded under this part has failed to comply

15 with section 408(a)(13) during a fiscal year, the

16 Secretary shall reduce the grant payable to the State

17 under section 403(a)(1) for the immediately succeed18 ing fiscal year by an amount equal to the difference

19 between the amount the State would have expended

20 on voucher assistance pursuant to section

21 408(a)(13) during the fiscal year in the absence of

22 such noncompliance and the amount the State ex23 pended on such voucher assistance during the fiscal

24 year.

25 ‘‘(b) REASONABLE CAUSE EXCEPTION.—
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•S 1867 IS

1 ‘‘(1) IN GENERAL.—The Secretary may not im2 pose a penalty on a State under subsection (a) with

3 respect to a requirement if the Secretary determines

4 that the State has reasonable cause for failing to

5 comply with the requirement.

6 ‘‘(2) EXCEPTION.—Paragraph (1) of this sub7 section shall not apply to any penalty under sub8 section (a)(5).

9 ‘‘(c) CORRECTIVE COMPLIANCE PLAN.—

10 ‘‘(1) IN GENERAL.—

11 ‘‘(A) NOTIFICATION OF VIOLATION.—Be12 fore imposing a penalty against a State under

13 subsection (a) with respect to a violation of this

14 part, the Secretary shall notify the State of the

15 violation and allow the State the opportunity to

16 enter into a corrective compliance plan in ac17 cordance with this subsection which outlines

18 how the State will correct the violation and how

19 the State will insure continuing compliance with

20 this part.

21 ‘‘(B) 60-DAY PERIOD TO PROPOSE A COR22 RECTIVE COMPLIANCE PLAN.—During the 60-

23 day period that begins on the date the State re24 ceives a notice provided under subparagraph

25 (A) with respect to a violation, the State may
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•S 1867 IS

1 submit to the Federal Government a corrective

2 compliance plan to correct the violation.

3 ‘‘(C) CONSULTATION ABOUT MODIFICA4 TIONS.—During the 60-day period that begins

5 with the date the Secretary receives a corrective

6 compliance plan submitted by a State in accord7 ance with subparagraph (B), the Secretary may

8 consult with the State on modifications to the

9 plan.

10 ‘‘(D) ACCEPTANCE OF PLAN.— A correc11 tive compliance plan submitted by a State in ac12 cordance with subparagraph (B) is deemed to

13 be accepted by the Secretary if the Secretary

14 does not accept or reject the plan during 60-day

15 period that begins on the date the plan is sub16 mitted.

17 ‘‘(2) EFFECT OF CORRECTING VIOLATION.—

18 The Secretary may not impose any penalty under

19 subsection (a) with respect to any violation covered

20 by a State corrective compliance plan accepted by

21 the Secretary if the State corrects the violation pur22 suant to the plan.

23 ‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA24 TION.—The Secretary shall assess some or all of a

25 penalty imposed on a State under subsection (a)
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•S 1867 IS

1 with respect to a violation if the State does not, in

2 a timely manner, correct the violation pursuant to a

3 State corrective compliance plan accepted by the

4 Secretary.

5 ‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—

6 ‘‘(1) IN GENERAL.—In imposing the penalties

7 described in subsection (a), the Secretary shall not

8 reduce any quarterly payment to a State by more

9 than 25 percent.

10 ‘‘(2) CARRYFORWARD OF UNRECOVERED PEN11 ALTIES.—To the extent that paragraph (1) of this

12 subsection prevents the Secretary from recovering

13 during a fiscal year the full amount of penalties im14 posed on a State under subsection (a) of this section

15 for a prior fiscal year, the Secretary shall apply any

16 remaining amount of such penalties to the grant

17 payable to the State under section 403(a)(1) for the

18 immediately succeeding fiscal year.

19 ‘‘(e) OTHER PENALTIES.—If, after reasonable notice

20 and opportunity for hearing to the State agency admin21 istering or supervising the administration of a State pro22 gram funded under this part, the Secretary finds that the

23 State has failed to comply substantially with any provision

24 of this part or of the State plan approved under section

25 402, the Secretary shall, if subsection (a) does not apply
99

•S 1867 IS

1 to the failure, notify the State agency that further pay2 ments will not be made to the State under this part (or,

3 in the Secretary’s discretion, that the payments will be re4 duced or limited to categories under, or parts of, the State

5 program not affected by the failure) until the Secretary

6 is satisfied that there is no longer any such failure to com7 ply. Until the Secretary is so satisfied, the Secretary shall

8 make no further payments to the State (or shall reduce

9 or limit payments to categories under or parts of the State

10 program not affected by the failure).

11 ‘‘SEC. 410. APPEAL OF ADVERSE DECISION.

12 ‘‘(a) IN GENERAL.—Within 5 days after the date the

13 Secretary takes any adverse action under this part with

14 respect to a State, the Secretary shall notify the chief ex15 ecutive officer of the State of the adverse action, including

16 any action with respect to the State plan submitted under

17 section 402 or the imposition of a penalty under section

18 409.

19 ‘‘(b) ADMINISTRATIVE REVIEW.—

20 ‘‘(1) IN GENERAL.—Within 60 days after the

21 date a State receives notice under subsection (a) of

22 an adverse action, the State may appeal the action,

23 in whole or in part, to the Departmental Appeals

24 Board established in the Department of Health and
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•S 1867 IS

1 Human Services (in this section referred to as the

2 ‘Board’) by filing an appeal with the Board.

3 ‘‘(2) PROCEDURAL RULES.—The Board shall

4 consider an appeal filed by a State under paragraph

5 (1) on the basis of such documentation as the State

6 may submit and as the Board may require to sup7 port the final decision of the Board. In deciding

8 whether to uphold an adverse action or any portion

9 of such an action, the Board shall conduct a thor10 ough review of the issues and take into account all

11 relevant evidence. The Board shall make a final de12 termination with respect to an appeal filed under

13 paragraph (1) not less than 60 days after the date

14 the appeal is filed.

15 ‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—

16 ‘‘(1) IN GENERAL.—Within 90 days after the

17 date of a final decision by the Board under this sec18 tion with respect to an adverse action taken against

19 a State, the State may obtain judicial review of the

20 final decision (and the findings incorporated into the

21 final decision) by filing an action in—

22 ‘‘(A) the district court of the United States

23 for the judicial district in which the principal or

24 headquarters office of the State agency is lo25 cated; or
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•S 1867 IS

1 ‘‘(B) the United States District Court for

2 the District of Columbia.

3 ‘‘(2) PROCEDURAL RULES.—The district court

4 in which an action is filed under paragraph (1) shall

5 review the final decision of the Board on the record

6 established in the administrative proceeding, in ac7 cordance with the standards of review prescribed by

8 subparagraphs (A) through (E) of section 706(2) of

9 title 5, United States Code. The review shall be on

10 the basis of the documents and supporting data sub11 mitted to the Board.

12 ‘‘SEC. 411. DATA COLLECTION AND REPORTING.

13 ‘‘(a) QUARTERLY REPORTS BY STATES.—

14 ‘‘(1) GENERAL REPORTING REQUIREMENT.—

15 ‘‘(A) CONTENTS OF REPORT.—Beginning

16 July 1, 1996, each State shall collect on a

17 monthly basis, and report to the Secretary on

18 a quarterly basis, the following disaggregated

19 case record information on the families receiv20 ing assistance under the State program funded

21 under this part:

22 ‘‘(i) The county of residence of the

23 family.
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•S 1867 IS

1 ‘‘(ii) Whether a child receiving such

2 assistance or an adult in the family is dis3 abled.

4 ‘‘(iii) The ages of the members of

5 such families.

6 ‘‘(iv) The number of individuals in the

7 family, and the relation of each family

8 member to the youngest child in the fam9 ily.

10 ‘‘(v) The employment status and earn11 ings of the employed adult in the family.

12 ‘‘(vi) The marital status of the adults

13 in the family, including whether such

14 adults have never married, are widowed, or

15 are divorced.

16 ‘‘(vii) The race and educational status

17 of each adult in the family.

18 ‘‘(viii) The race and educational sta19 tus of each child in the family.

20 ‘‘(ix) Whether the family received sub21 sidized housing, medical assistance under

22 the State plan approved under title XIX,

23 food stamps, or subsidized child care, and

24 if the latter 2, the amount received.
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1 ‘‘(x) The number of months that the

2 family has received each type of assistance

3 under the program.

4 ‘‘(xi) If the adults participated in, and

5 the number of hours per week of participa6 tion in, the following activities:

7 ‘‘(I) Education.

8 ‘‘(II) Subsidized private sector

9 employment.

10 ‘‘(III) Unsubsidized employment.

11 ‘‘(IV) Public sector employment,

12 work experience, or community serv13 ice.

14 ‘‘(V) Job search.

15 ‘‘(VI) Job skills training or on16 the-job training.

17 ‘‘(VII) Vocational education.

18 ‘‘(xii) Information necessary to cal19 culate participation rates under section

20 407.

21 ‘‘(xiii) The type and amount of assist22 ance received under the program, including

23 the amount of and reason for any reduc24 tion of assistance (including sanctions).
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1 ‘‘(xiv) From a sample of closed cases,

2 whether the family left the program, and if

3 so, whether the family left due to—

4 ‘‘(I) employment;

5 ‘‘(II) marriage;

6 ‘‘(III) the prohibition set forth in

7 section 408(a)(8);

8 ‘‘(IV) sanction; or

9 ‘‘(V) State policy.

10 ‘‘(xv) Any amount of unearned income

11 received by any member of the family.

12 ‘‘(xvi) The citizenship of the members

13 of the family.

14 ‘‘(B) USE OF ESTIMATES.—

15 ‘‘(i) AUTHORITY.—A State may com16 ply with subparagraph (A) by submitting

17 an estimate which is obtained through the

18 use of scientifically acceptable sampling

19 methods approved by the Secretary.

20 ‘‘(ii) SAMPLING AND OTHER METH21 ODS.—The Secretary shall provide the

22 States with such case sampling plans and

23 data collection procedures as the Secretary

24 deems necessary to produce statistically

25 valid estimates of the performance of State
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1 programs funded under this part. The Sec2 retary may develop and implement proce3 dures for verifying the quality of data sub4 mitted by the States.

5 ‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO

6 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—

7 The report required by paragraph (1) for a fiscal

8 quarter shall include a statement of the percentage

9 of the funds paid to the State under this part for

10 the quarter that are used to cover administrative

11 costs or overhead.

12 ‘‘(3) REPORT ON STATE EXPENDITURES ON

13 PROGRAMS FOR NEEDY FAMILIES.—The report re14 quired by paragraph (1) for a fiscal quarter shall in15 clude a statement of the total amount expended by

16 the State during the quarter on programs for needy

17 families.

18 ‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR19 TICIPATING IN WORK ACTIVITIES.—The report re20 quired by paragraph (1) for a fiscal quarter shall in21 clude the number of noncustodial parents in the

22 State who participated in work activities (as defined

23 in section 407(d)) during the quarter.

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

25 The report required by paragraph (1) for a fiscal
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1 quarter shall include the total amount expended by

2 the State during the quarter to provide transitional

3 services to a family that has ceased to receive assist4 ance under this part because of employment, along

5 with a description of such services.

6 ‘‘(6) REGULATIONS.—The Secretary shall pre7 scribe such regulations as may be necessary to de8 fine the data elements with respect to which reports

9 are required by this subsection.

10 ‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE

11 SECRETARY.—Not later than 6 months after the end of

12 fiscal year 1997, and each fiscal year thereafter, the Sec13 retary shall transmit to the Congress a report describ14 ing—

15 ‘‘(1) whether the States are meeting—

16 ‘‘(A) the participation rates described in

17 section 407(a); and

18 ‘‘(B) the objectives of—

19 ‘‘(i) increasing employment and earn20 ings of needy families, and child support

21 collections; and

22 ‘‘(ii) decreasing out-of-wedlock preg23 nancies and child poverty;

24 ‘‘(2) the demographic and financial characteris25 tics of families applying for assistance, families re-
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1 ceiving assistance, and families that become ineli2 gible to receive assistance;

3 ‘‘(3) the characteristics of each State program

4 funded under this part; and

5 ‘‘(4) the trends in employment and earnings of

6 needy families with minor children living at home.

7 ‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN8 DIAN TRIBES.

9 ‘‘(a) GRANTS FOR INDIAN TRIBES.—

10 ‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—

11 ‘‘(A) IN GENERAL.—For each of fiscal

12 years 1997, 1998, 1999, and 2000, the Sec13 retary shall pay to each Indian tribe that has

14 an approved tribal family assistance plan a trib15 al family assistance grant for the fiscal year in

16 an amount equal to the amount determined

17 under subparagraph (B), and shall reduce the

18 grant payable under section 403(a)(1) to any

19 State in which lies the service area or areas of

20 the Indian tribe by that portion of the amount

21 so determined that is attributable to expendi22 tures by the State.

23 ‘‘(B) AMOUNT DETERMINED.—

24 ‘‘(i) IN GENERAL.—The amount de25 termined under this subparagraph is an
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1 amount equal to the total amount of the

2 Federal payments to a State or States

3 under section 403 (as in effect during such

4 fiscal year) for fiscal year 1994 attrib5 utable to expenditures (other than child

6 care expenditures) by the State or States

7 under parts A and F (as so in effect) for

8 fiscal year 1994 for Indian families resid9 ing in the service area or areas identified

10 by the Indian tribe pursuant to subsection

11 (b)(1)(C) of this section.

12 ‘‘(ii) USE OF STATE SUBMITTED

13 DATA.—

14 ‘‘(I) IN GENERAL.—The Sec15 retary shall use State submitted data

16 to make each determination under

17 clause (i).

18 ‘‘(II) DISAGREEMENT WITH DE19 TERMINATION.—If an Indian tribe or

20 tribal organization disagrees with

21 State submitted data described under

22 subclause (I), the Indian tribe or trib23 al organization may submit to the

24 Secretary such additional information

25 as may be relevant to making the de-
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1 termination under clause (i) and the

2 Secretary may consider such informa3 tion before making such determina4 tion.

5 ‘‘(2) GRANTS FOR INDIAN TRIBES THAT RE6 CEIVED JOBS FUNDS.—

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

8 pay to each eligible Indian tribe for each of fis9 cal years 1996, 1997, 1998, 1999, and 2000 a

10 grant in an amount equal to the amount re11 ceived by the Indian tribe in fiscal year 1994

12 under section 482(i) (as in effect during fiscal

13 year 1994).

14 ‘‘(B) ELIGIBLE INDIAN TRIBE.—For pur15 poses of subparagraph (A), the term ‘eligible

16 Indian tribe’ means an Indian tribe or Alaska

17 Native organization that conducted a job oppor18 tunities and basic skills training program in fis19 cal year 1995 under section 482(i) (as in effect

20 during fiscal year 1995).

21 ‘‘(C) USE OF GRANT.—Each Indian tribe

22 to which a grant is made under this paragraph

23 shall use the grant for the purpose of operating

24 a program to make work activities available to

25 members of the Indian tribe.
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1 ‘‘(D) APPROPRIATION.—Out of any money

2 in the Treasury of the United States not other3 wise appropriated, there are appropriated

4 $7,638,474 for each fiscal year specified in sub5 paragraph (A) for grants under subparagraph

6 (A).

7 ‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—

8 ‘‘(1) IN GENERAL.—Any Indian tribe that de9 sires to receive a tribal family assistance grant shall

10 submit to the Secretary a 3-year tribal family assist11 ance plan that—

12 ‘‘(A) outlines the Indian tribe’s approach

13 to providing welfare-related services for the 3-

14 year period, consistent with this section;

15 ‘‘(B) specifies whether the welfare-related

16 services provided under the plan will be pro17 vided by the Indian tribe or through agree18 ments, contracts, or compacts with intertribal

19 consortia, States, or other entities;

20 ‘‘(C) identifies the population and service

21 area or areas to be served by such plan;

22 ‘‘(D) provides that a family receiving as23 sistance under the plan may not receive duplica24 tive assistance from other State or tribal pro25 grams funded under this part;
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1 ‘‘(E) identifies the employment opportuni2 ties in or near the service area or areas of the

3 Indian tribe and the manner in which the In4 dian tribe will cooperate and participate in en5 hancing such opportunities for recipients of as6 sistance under the plan consistent with any ap7 plicable State standards; and

8 ‘‘(F) applies the fiscal accountability provi9 sions of section 5(f)(1) of the Indian Self-De10 termination and Education Assistance Act (25

11 U.S.C. 450c(f)(1)), relating to the submission

12 of a single-agency audit report required by

13 chapter 75 of title 31, United States Code.

14 ‘‘(2) APPROVAL.—The Secretary shall approve

15 each tribal family assistance plan submitted in ac16 cordance with paragraph (1).

17 ‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this

18 section shall preclude the development and submis19 sion of a single tribal family assistance plan by the

20 participating Indian tribes of an intertribal consor21 tium.

22 ‘‘(c) MINIMUM WORK PARTICIPATION REQUIRE23 MENTS AND TIME LIMITS.—The Secretary, with the par24 ticipation of Indian tribes, shall establish for each Indian

25 tribe receiving a grant under this section minimum work
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1 participation requirements, appropriate time limits for re2 ceipt of welfare-related services under the grant, and pen3 alties against individuals—

4 ‘‘(1) consistent with the purposes of this sec5 tion;

6 ‘‘(2) consistent with the economic conditions

7 and resources available to each tribe; and

8 ‘‘(3) similar to comparable provisions in section

9 407(d).

10 ‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec11 tion shall preclude an Indian tribe from seeking emergency

12 assistance from any Federal loan program or emergency

13 fund.

14 ‘‘(e) ACCOUNTABILITY.—Nothing in this section shall

15 be construed to limit the ability of the Secretary to main16 tain program funding accountability consistent with—

17 ‘‘(1) generally accepted accounting principles;

18 and

19 ‘‘(2) the requirements of the Indian Self-Deter20 mination and Education Assistance Act (25 U.S.C.

21 450 et seq.).

22 ‘‘(f) PENALTIES.—Subsections (a)(4), (b), and (e) of

23 section 409 shall apply to an Indian tribe with an ap24 proved tribal assistance plan in the same manner as such

25 subsections apply to a State.
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1 ‘‘(g) DATA COLLECTION AND REPORTING.—Section

2 411 shall apply to an Indian tribe with an approved tribal

3 family assistance plan.

4 ‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS5 KA.—

6 ‘‘(1) IN GENERAL.—Notwithstanding any other

7 provision of this section, and except as provided in

8 paragraph (2), an Indian tribe in the State of Alas9 ka that receives a tribal family assistance grant

10 under this section shall use the grant to operate a

11 program in accordance with requirements com12 parable to the requirements applicable to the pro13 gram of the State of Alaska funded under this part.

14 Comparability of programs shall be established on

15 the basis of program criteria developed by the Sec16 retary in consultation with the State of Alaska and

17 such Indian tribes.

18 ‘‘(2) WAIVER.—An Indian tribe described in

19 paragraph (1) may apply to the appropriate State

20 authority to receive a waiver of the requirement of

21 paragraph (1).

22 ‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD23 IES.

24 ‘‘(a) RESEARCH.—The Secretary shall conduct re25 search on the benefits, effects, and costs of operating dif-
114

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1 ferent State programs funded under this part, including

2 time limits relating to eligibility for assistance. The re3 search shall include studies on the effects of different pro4 grams and the operation of such programs on welfare de5 pendency, illegitimacy, teen pregnancy, employment rates,

6 child well-being, and any other area the Secretary deems

7 appropriate. The Secretary shall also conduct research on

8 the costs and benefits of State activities under section

9 409.

10 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA11 TIVE APPROACHES TO REDUCING WELFARE DEPEND12 ENCY AND INCREASING CHILD WELL-BEING.—

13 ‘‘(1) IN GENERAL.—The Secretary may assist

14 States in developing, and shall evaluate, innovative

15 approaches for reducing welfare dependency and in16 creasing the well-being of minor children living at

17 home with respect to recipients of assistance under

18 programs funded under this part. The Secretary

19 may provide funds for training and technical assist20 ance to carry out the approaches developed pursuant

21 to this paragraph.

22 ‘‘(2) EVALUATIONS.—In performing the evalua23 tions under paragraph (1), the Secretary shall, to

24 the maximum extent feasible, use random assign25 ment as an evaluation methodology.
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1 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec2 retary shall develop innovative methods of disseminating

3 information on any research, evaluations, and studies con4 ducted under this section, including the facilitation of the

5 sharing of information and best practices among States

6 and localities through the use of computers and other

7 technologies.

8 ‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF

9 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

10 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec11 retary shall rank annually the States to which

12 grants are paid under section 403 in the order of

13 their success in placing recipients of assistance

14 under the State program funded under this part into

15 long-term private sector jobs, reducing the overall

16 welfare caseload, and, when a practicable method for

17 calculating this information becomes available, di18 verting individuals from formally applying to the

19 State program and receiving assistance. In ranking

20 States under this subsection, the Secretary shall

21 take into account the average number of minor chil22 dren living at home in families in the State that

23 have incomes below the poverty line and the amount

24 of funding provided each State for such families.
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1 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST

2 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

3 review the programs of the 3 States most recently

4 ranked highest under paragraph (1) and the 3

5 States most recently ranked lowest under paragraph

6 (1) that provide parents with work experience, as7 sistance in finding employment, and other work

8 preparation activities and support services to enable

9 the families of such parents to leave the program

10 and become self-sufficient.

11 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF

12 ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

13 ‘‘(1) ANNUAL RANKING OF STATES.—

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

15 annually rank States to which grants are made

16 under section 403 based on the following rank17 ing factors:

18 ‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA19 TIOS.—The ratio represented by—

20 ‘‘(I) the total number of out-of21 wedlock births in families receiving as22 sistance under the State program

23 under this part in the State for the

24 most recent fiscal year for which in25 formation is available; over
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•S 1867 IS

1 ‘‘(II) the total number of births

2 in families receiving assistance under

3 the State program under this part in

4 the State for such year.

5 ‘‘(ii) NET CHANGES IN THE OUT-OF6 WEDLOCK RATIO.—The difference between

7 the ratio described in subparagraph (A)(i)

8 with respect to a State for the most recent

9 fiscal year for which such information is

10 available and the ratio with respect to the

11 State for the immediately preceding year.

12 ‘‘(2) ANNUAL REVIEW.—The Secretary shall re13 view the programs of the 5 States most recently

14 ranked highest under paragraph (1) and the 5

15 States most recently ranked the lowest under para16 graph (1).

17 ‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall

18 be eligible to receive funding to evaluate the State pro19 gram funded under this part if—

20 ‘‘(1) the State submits a proposal to the Sec21 retary for the evaluation;

22 ‘‘(2) the Secretary determines that the design

23 and approach of the evaluation is rigorous and is

24 likely to yield information that is credible and will

25 be useful to other States; and
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•S 1867 IS

1 ‘‘(3) unless otherwise waived by the Secretary,

2 the State contributes to the cost of the evaluation,

3 from non-Federal sources, an amount equal to at

4 least 10 percent of the cost of the evaluation.

5 ‘‘(g) FUNDING OF STUDIES AND DEMONSTRA6 TIONS.—

7 ‘‘(1) IN GENERAL.—Out of any money in the

8 Treasury of the United States not otherwise appro9 priated, there are appropriated $15,000,000 for each

10 fiscal year specified in section 403(a)(1) for the pur11 pose of paying—

12 ‘‘(A) the cost of conducting the research

13 described in subsection (a);

14 ‘‘(B) the cost of developing and evaluating

15 innovative approaches for reducing welfare de16 pendency and increasing the well-being of minor

17 children under subsection (b);

18 ‘‘(C) the Federal share of any State-initi19 ated study approved under subsection (f); and

20 ‘‘(D) an amount determined by the Sec21 retary to be necessary to operate and evaluate

22 demonstration projects, relating to this part,

23 that are in effect or approved under section

24 1115 as of September 30, 1995, and are contin25 ued after such date.
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1 ‘‘(2) ALLOCATION.—Of the amount appro2 priated under paragraph (1) for a fiscal year—

3 ‘‘(A) 50 percent shall be allocated for the

4 purposes described in subparagraphs (A) and

5 (B) of paragraph (1), and

6 ‘‘(B) 50 percent shall be allocated for the

7 purposes described in subparagraphs (C) and

8 (D) of paragraph (1).

9 ‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.

10 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

11 expand the Survey of Income and Program Participation

12 as necessary to obtain such information as will enable in13 terested persons to evaluate the impact of the amendments

14 made by title I of the Bipartisan Welfare Reform Act of

15 1996 on a random national sample of recipients of assist16 ance under State programs funded under this part and

17 (as appropriate) other low income families, and in doing

18 so, shall pay particular attention to the issues of out-of19 wedlock birth, welfare dependency, the beginning and end

20 of welfare spells, and the causes of repeat welfare spells.

21 ‘‘(b) APPROPRIATION.—Out of any money in the

22 Treasury of the United States not otherwise appropriated,

23 there are appropriated $10,000,000 for each of fiscal

24 years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for
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•S 1867 IS

1 payment to the Bureau of the Census to carry out sub2 section (a).

3 ‘‘SEC. 415. WAIVERS.

4 ‘‘(a) CONTINUATION OF WAIVERS.—

5 ‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT6 MENT OF WELFARE REFORM.—Except as provided

7 in paragraph (3), if any waiver granted to a State

8 under section 1115 or otherwise which relates to the

9 provision of assistance under a State plan under this

10 part (as in effect on September 30, 1995) is in ef11 fect as of the date of the enactment of the Biparti12 san Welfare Reform Act of 1996, the amendments

13 made by such Act shall not apply with respect to the

14 State before the expiration (determined without re15 gard to any extensions) of the waiver to the extent

16 such amendments are inconsistent with the waiver.

17 ‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex18 cept as provided in paragraph (3), if any waiver

19 granted to a State under section 1115 or otherwise

20 which relates to the provision of assistance under a

21 State plan under this part (as in effect on Septem22 ber 30, 1995) is submitted to the Secretary before

23 the date of the enactment of the Bipartisan Welfare

24 Reform Act of 1996 and approved by the Secretary

25 before the effective date of this title, and the State
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1 demonstrates to the satisfaction of the Secretary

2 that the waiver will not result in Federal expendi3 tures under title IV of this Act (as in effect without

4 regard to the amendments made by the Bipartisan

5 Welfare Reform Act of 1996) that are greater than

6 would occur in the absence of the waiver, such

7 amendments shall not apply with respect to the

8 State before the expiration (determined without re9 gard to any extensions) of the waiver to the extent

10 such amendments are inconsistent with the waiver.

11 ‘‘(3) FINANCING LIMITATION.—Notwithstand12 ing any other provision of law, beginning with fiscal

13 year 1996, a State operating under a waiver de14 scribed in paragraph (1) shall be entitled to payment

15 under section 403 for the fiscal year, in lieu of any

16 other payment provided for in the waiver.

17 ‘‘(b) STATE OPTION TO TERMINATE WAIVER.—

18 ‘‘(1) IN GENERAL.—A State may terminate a

19 waiver described in subsection (a) before the expira20 tion of the waiver.

21 ‘‘(2) REPORT.—A State which terminates a

22 waiver under paragraph (1) shall submit a report to

23 the Secretary summarizing the waiver and any avail24 able information concerning the result or effect of

25 the waiver.
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1 ‘‘(3) HOLD HARMLESS PROVISION.—

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

3 other provision of law, a State that, not later

4 than the date described in subparagraph (B),

5 submits a written request to terminate a waiver

6 described in subsection (a) shall be held harm7 less for accrued cost neutrality liabilities in8 curred under the waiver.

9 ‘‘(B) DATE DESCRIBED.—The date de10 scribed in this subparagraph is the later of—

11 ‘‘(i) January 1, 1996; or

12 ‘‘(ii) 90 days following the adjourn13 ment of the first regular session of the

14 State legislature that begins after the date

15 of the enactment of the Bipartisan Welfare

16 Reform Act of 1996.

17 ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT

18 WAIVERS.—The Secretary shall encourage any State oper19 ating a waiver described in subsection (a) to continue the

20 waiver and to evaluate, using random sampling and other

21 characteristics of accepted scientific evaluations, the result

22 or effect of the waiver.

23 ‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A

24 State may elect to continue 1 or more individual waivers

25 described in subsection (a).
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1 ‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

2 ‘‘The programs under this part and part D shall be

3 administered by an Assistant Secretary for Family Sup4 port within the Department of Health and Human Serv5 ices, who shall be appointed by the President, by and with

6 the advice and consent of the Senate, and who shall be

7 in addition to any other Assistant Secretary of Health and

8 Human Services provided for by law.

9 ‘‘SEC. 417. DEFINITIONS.

10 ‘‘As used in this part:

11 ‘‘(1) ADULT.—The term ‘adult’ means an indi12 vidual who is not a minor child.

13 ‘‘(2) MINOR CHILD.—The term ‘minor child’

14 means an individual who—

15 ‘‘(A) has not attained 18 years of age; or

16 ‘‘(B) has not attained 19 years of age and

17 is a full-time student in a secondary school (or

18 in the equivalent level of vocational or technical

19 training).

20 ‘‘(3) FISCAL YEAR.—The term ‘fiscal year’

21 means any 12-month period ending on September 30

22 of a calendar year.

23 ‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA24 NIZATION.—

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

26 subparagraph (B), the terms ‘Indian’, ‘Indian
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•S 1867 IS

1 tribe’, and ‘tribal organization’ have the mean2 ing given such terms by section 4 of the Indian

3 Self-Determination and Education Assistance

4 Act (25 U.S.C. 450b).

5 ‘‘(B) SPECIAL RULE FOR INDIAN TRIBES

6 IN ALASKA.—The term ‘Indian tribe’ means,

7 with respect to the State of Alaska, only the

8 Metlakatla Indian Community of the Annette

9 Islands Reserve and the following Alaska Native

10 regional nonprofit corporations:

11 ‘‘(i) Arctic Slope Native Association.

12 ‘‘(ii) Kawerak, Inc.

13 ‘‘(iii) Maniilaq Association.

14 ‘‘(iv) Association of Village Council

15 Presidents.

16 ‘‘(v) Tanana Chiefs Conference.

17 ‘‘(vi) Cook Inlet Tribal Council.

18 ‘‘(vii) Bristol Bay Native Association.

19 ‘‘(viii) Aleutian and Pribilof Island

20 Association.

21 ‘‘(ix) Chugachmuit.

22 ‘‘(x) Tlingit Haida Central Council.

23 ‘‘(xi) Kodiak Area Native Association.

24 ‘‘(xii) Copper River Native Associa25 tion.
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1 ‘‘(5) STATE.—Except as otherwise specifically

2 provided, the term ‘State’ means the 50 States of

3 the United States, the District of Columbia, the

4 Commonwealth of Puerto Rico, the United States

5 Virgin Islands, Guam, and American Samoa.’’.

6 SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELI7 GIOUS, OR PRIVATE ORGANIZATIONS.

8 (a) IN GENERAL.—

9 (1) STATE OPTIONS.—A State may—

10 (A) administer and provide services under

11 the programs described in subparagraphs (A)

12 and (B)(i) of paragraph (2) through contracts

13 with charitable, religious, or private organiza14 tions; and

15 (B) provide beneficiaries of assistance

16 under the programs described in subparagraphs

17 (A) and (B)(ii) of paragraph (2) with certifi18 cates, vouchers, or other forms of disbursement

19 which are redeemable with such organizations.

20 (2) PROGRAMS DESCRIBED.—The programs de21 scribed in this paragraph are the following pro22 grams:

23 (A) A State program funded under part A

24 of title IV of the Social Security Act (as amend25 ed by section 103 of this Act).
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1 (B) Any other program established or

2 modified under title I, II, or VI of this Act,

3 that—

4 (i) permits contracts with organiza5 tions; or

6 (ii) permits certificates, vouchers, or

7 other forms of disbursement to be provided

8 to beneficiaries, as a means of providing

9 assistance.

10 (b) RELIGIOUS ORGANIZATIONS.—The purpose of

11 this section is to allow States to contract with religious

12 organizations, or to allow religious organizations to accept

13 certificates, vouchers, or other forms of disbursement

14 under any program described in subsection (a)(2), on the

15 same basis as any other nongovernmental provider without

16 impairing the religious character of such organizations,

17 and without diminishing the religious freedom of bene18 ficiaries of assistance funded under such program.

19 (c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA20 NIZATIONS.—In the event a State exercises its authority

21 under subsection (a), religious organizations are eligible,

22 on the same basis as any other private organization, as

23 contractors to provide assistance, or to accept certificates,

24 vouchers, or other forms of disbursement, under any pro25 gram described in subsection (a)(2) so long as the pro-
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1 grams are implemented consistent with the Establishment

2 Clause of the United States Constitution. Except as pro3 vided in subsection (k), neither the Federal Government

4 nor a State receiving funds under such programs shall dis5 criminate against an organization which is or applies to

6 be a contractor to provide assistance, or which accepts cer7 tificates, vouchers, or other forms of disbursement, on the

8 basis that the organization has a religious character.

9 (d) RELIGIOUS CHARACTER AND FREEDOM.—

10 (1) RELIGIOUS ORGANIZATIONS.—A religious

11 organization with a contract described in subsection

12 (a)(1)(A), or which accepts certificates, vouchers, or

13 other forms of disbursement under subsection

14 (a)(1)(B), shall retain its independence from Fed15 eral, State, and local governments, including such

16 organization’s control over the definition, develop17 ment, practice, and expression of its religious beliefs.

18 (2) ADDITIONAL SAFEGUARDS.—Neither the

19 Federal Government nor a State shall require a reli20 gious organization to—

21 (A) alter its form of internal governance;

22 or

23 (B) remove religious art, icons, scripture,

24 or other symbols;
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1 in order to be eligible to contract to provide assist2 ance, or to accept certificates, vouchers, or other

3 forms of disbursement, funded under a program de4 scribed in subsection (a)(2).

5 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—

6 (1) IN GENERAL.—If an individual described in

7 paragraph (2) has an objection to the religious char8 acter of the organization or institution from which

9 the individual receives, or would receive, assistance

10 funded under any program described in subsection

11 (a)(2), the State in which the individual resides shall

12 provide such individual (if otherwise eligible for such

13 assistance) within a reasonable period of time after

14 the date of such objection with assistance from an

15 alternative provider that is accessible to the individ16 ual and the value of which is not less than the value

17 of the assistance which the individual would have re18 ceived from such organization.

19 (2) INDIVIDUAL DESCRIBED.—An individual de20 scribed in this paragraph is an individual who re21 ceives, applies for, or requests to apply for, assist22 ance under a program described in subsection (a)(2).

23 (f) EMPLOYMENT PRACTICES.—A religious organiza24 tion’s exemption provided under section 702 of the Civil

25 Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding em-
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1 ployment practices shall not be affected by its participa2 tion in, or receipt of funds from, programs described in

3 subsection (a)(2).

4 (g) NONDISCRIMINATION AGAINST BENE5 FICIARIES.—Except as otherwise provided in law, a reli6 gious organization shall not discriminate against an indi7 vidual in regard to rendering assistance funded under any

8 program described in subsection (a)(2) on the basis of reli9 gion, a religious belief, or refusal to actively participate

10 in a religious practice.

11 (h) FISCAL ACCOUNTABILITY.—

12 (1) IN GENERAL.—Except as provided in para13 graph (2), any religious organization contracting to

14 provide assistance funded under any program de15 scribed in subsection (a)(2) shall be subject to the

16 same regulations as other contractors to account in

17 accord with generally accepted auditing principles

18 for the use of such funds provided under such pro19 grams.

20 (2) LIMITED AUDIT.—If such organization seg21 regates Federal funds provided under such programs

22 into separate accounts, then only the financial as23 sistance provided with such funds shall be subject to

24 audit.
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1 (i) COMPLIANCE.—Any party which seeks to enforce

2 its rights under this section may assert a civil action for

3 injunctive relief exclusively in an appropriate State court

4 against the entity or agency that allegedly commits such

5 violation.

6 (j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN

7 PURPOSES.—No funds provided directly to institutions or

8 organizations to provide services and administer programs

9 under subsection (a)(1)(A) shall be expended for sectarian

10 worship, instruction, or proselytization.

11 (k) PREEMPTION.—Nothing in this section shall be

12 construed to preempt any provision of a State constitution

13 or State statute that prohibits or restricts the expenditure

14 of State funds in or by religious organizations.

15 SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

16 CAREGIVERS FOR THEIR GRANDCHILDREN.

17 (a) IN GENERAL.—Not later than 90 days after the

18 date of the enactment of this Act, the Secretary of Com19 merce, in carrying out section 141 of title 13, United

20 States Code, shall expand the data collection efforts of the

21 Bureau of the Census (in this section referred to as the

22 ‘‘Bureau’’) to enable the Bureau to collect statistically sig23 nificant data, in connection with its decennial census and

24 its mid-decade census, concerning the growing trend of
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1 grandparents who are the primary caregivers for their

2 grandchildren.

3 (b) EXPANDED CENSUS QUESTION.—In carrying out

4 subsection (a), the Secretary of Commerce shall expand

5 the Bureau’s census question that details households

6 which include both grandparents and their grandchildren.

7 The expanded question shall be formulated to distinguish

8 between the following households:

9 (1) A household in which a grandparent tempo10 rarily provides a home for a grandchild for a period

11 of weeks or months during periods of parental dis12 tress.

13 (2) A household in which a grandparent pro14 vides a home for a grandchild and serves as the pri15 mary caregiver for the grandchild.

16 SEC. 106. REPORT ON DATA PROCESSING.

17 (a) IN GENERAL.—Within 6 months after the date

18 of the enactment of this Act, the Secretary of Health and

19 Human Services shall prepare and submit to the Congress

20 a report on—

21 (1) the status of the automated data processing

22 systems operated by the States to assist manage23 ment in the administration of State programs under

24 part A of title IV of the Social Security Act (wheth25 er in effect before or after October 1, 1995); and
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1 (2) what would be required to establish a sys2 tem capable of—

3 (A) tracking participants in public pro4 grams over time; and

5 (B) checking case records of the States to

6 determine whether individuals are participating

7 in public programs of 2 or more States.

8 (b) PREFERRED CONTENTS.—The report required by

9 subsection (a) should include—

10 (1) a plan for building on the automated data

11 processing systems of the States to establish a sys12 tem with the capabilities described in subsection

13 (a)(2); and

14 (2) an estimate of the amount of time required

15 to establish such a system and of the cost of estab16 lishing such a system.

17 SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

18 (a) STUDY.—The Secretary shall, in cooperation with

19 the States, study and analyze outcomes measures for eval20 uating the success of the States in moving individuals out

21 of the welfare system through employment as an alter22 native to the minimum participation rates described in

23 section 407 of the Social Security Act. The study shall

24 include a determination as to whether such alternative

25 outcomes measures should be applied on a national or a
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1 State-by-State basis and a preliminary assessment of the

2 effects of section 409(a)(5)(C) of such Act.

3 (b) REPORT.—Not later than September 30, 1998,

4 the Secretary shall submit to the Committee on Finance

5 of the Senate and the Committee on Ways and Means of

6 the House of Representatives a report containing the find7 ings of the study required by subsection (a).

8 SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SE9 CURITY ACT.

10 (a) AMENDMENTS TO TITLE II.—

11 (1) Section 205(c)(2)(C)(vi) (42 U.S.C.

12 405(c)(2)(C)(vi)), as so redesignated by section

13 321(a)(9)(B) of the Social Security Independence

14 and Program Improvements Act of 1994, is amend15 ed—

16 (A) by inserting ‘‘an agency administering

17 a program funded under part A of title IV or’’

18 before ‘‘an agency operating’’; and

19 (B) by striking ‘‘A or D of title IV of this

20 Act’’ and inserting ‘‘D of such title’’.

21 (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is

22 amended by inserting ‘‘under a State program fund23 ed under’’ before ‘‘part A of title IV’’.

24 (b) AMENDMENT TO PART B OF TITLE IV.—Section

25 422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking
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•S 1867 IS

1 ‘‘under the State plan approved’’ and inserting ‘‘under the

2 State program funded.’’.

3 (c) AMENDMENTS TO PART D OF TITLE IV.—

4 (1) Section 451 (42 U.S.C. 651) is amended by

5 striking ‘‘aid’’ and inserting ‘‘assistance under a

6 State program funded’’.

7 (2) Section 452(a)(10)(C) (42 U.S.C.

8 652(a)(10)(C)) is amended—

9 (A) by striking ‘‘aid to families with de10 pendent children’’ and inserting ‘‘assistance

11 under a State program funded under part A’’;

12 (B) by striking ‘‘such aid’’ and inserting

13 ‘‘such assistance’’; and

14 (C) by striking ‘‘under section 402(a)(26)

15 or’’ and inserting ‘‘pursuant to section

16 408(a)(4) or under section’’.

17 (3) Section 452(a)(10)(F) (42 U.S.C.

18 652(a)(10)(F)) is amended—

19 (A) by striking ‘‘aid under a State plan ap20 proved’’ and inserting ‘‘assistance under a State

21 program funded’’; and

22 (B) by striking ‘‘in accordance with the

23 standards referred to in section

24 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

25 State’’.
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1 (4) Section 452(b) (42 U.S.C. 652(b)) is

2 amended in the first sentence by striking ‘‘aid under

3 the State plan approved under part A’’ and inserting

4 ‘‘assistance under the State program funded under

5 part A’’.

6 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

7 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

8 and inserting ‘‘1115(b)’’.

9 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

10 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

11 being paid under the State’s plan approved under

12 part A or E’’ and inserting ‘‘assistance is being pro13 vided under the State program funded under part

14 A’’.

15 (7) Section 452(g)(2)(A) (42 U.S.C.

16 652(g)(2)(A)) is amended in the matter following

17 clause (iii) by striking ‘‘aid was being paid under the

18 State’s plan approved under part A or E’’ and in19 serting ‘‘assistance was being provided under the

20 State program funded under part A’’.

21 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

22 amended in the matter following subparagraph

23 (B)—

24 (A) by striking ‘‘who is a dependent child’’

25 and inserting ‘‘with respect to whom assistance
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1 is being provided under the State program

2 funded under part A’’;

3 (B) by inserting ‘‘by the State agency ad4 ministering the State plan approved under this

5 part’’ after ‘‘found’’; and

6 (C) by striking ‘‘under section 402(a)(26)’’

7 and inserting ‘‘with the State in establishing

8 paternity’’.

9 (9) Section 452(h) (42 U.S.C. 652(h)) is

10 amended by striking ‘‘under section 402(a)(26)’’ and

11 inserting ‘‘pursuant to section 408(a)(4)’’.

12 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

13 amended by striking ‘‘aid under part A of this title’’

14 and inserting ‘‘assistance under a State program

15 funded under part A’’.

16 (11) Section 454(5)(A) (42 U.S.C. 654(5)(A))

17 is amended—

18 (A) by striking ‘‘under section 402(a)(26)’’

19 and inserting ‘‘pursuant to section 408(a)(4)’’;

20 and

21 (B) by striking ‘‘; except that this para22 graph shall not apply to such payments for any

23 month following the first month in which the

24 amount collected is sufficient to make such

25 family ineligible for assistance under the State
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1 plan approved under part A;’’ and inserting a

2 comma.

3 (12) Section 454(6)(D) (42 U.S.C. 654(6)(D))

4 is amended by striking ‘‘aid under a State plan ap5 proved’’ and inserting ‘‘assistance under a State pro6 gram funded’’.

7 (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is

8 amended by striking ‘‘under section 402(a)(26)’’.

9 (14) Section 466(a)(3)(B) (42 U.S.C.

10 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’

11 and inserting ‘‘408(a)(4)’’.

12 (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

13 amended by striking ‘‘aid’’ and inserting ‘‘assistance

14 under a State program funded’’.

15 (16) Section 469(a) (42 U.S.C. 669(a)) is

16 amended—

17 (A) by striking ‘‘aid under plans approved’’

18 and inserting ‘‘assistance under State programs

19 funded’’; and

20 (B) by striking ‘‘such aid’’ and inserting

21 ‘‘such assistance’’.

22 (d) AMENDMENTS TO PART E OF TITLE IV.—

23 (1) Section 470 (42 U.S.C. 670) is amended—

24 (A) by striking ‘‘would be’’ and inserting

25 ‘‘would have been’’; and
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1 (B) by inserting ‘‘(as such plan was in ef2 fect on March 1, 1996)’’ after ‘‘part A’’.

3 (2) Section 471(17) (42 U.S.C. 671(17)) is

4 amended by striking ‘‘plans approved under parts A

5 and D’’ and inserting ‘‘program funded under part

6 A and plan approved under part D’’.

7 (3) Section 472(a) (42 U.S.C. 672(a)) is

8 amended—

9 (A) in the matter preceding paragraph

10 (1)—

11 (i) by striking ‘‘would meet’’ and in12 serting ‘‘would have met’’;

13 (ii) by inserting ‘‘(as such sections

14 were in effect on June 1, 1995)’’ after

15 ‘‘407’’; and

16 (iii) by inserting ‘‘(as so in effect)’’

17 after ‘‘406(a)’’; and

18 (B) in paragraph (4)—

19 (i) in subparagraph (A)—

20 (I) by inserting ‘‘would have’’

21 after ‘‘(A)’’; and

22 (II) by inserting ‘‘(as in effect on

23 June 1, 1995)’’ after ‘‘section 402’’;

24 and
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1 (ii) in subparagraph (B)(ii), by insert2 ing ‘‘(as in effect on June 1, 1995)’’ after

3 ‘‘406(a)’’.

4 (4) Section 472(h) (42 U.S.C. 672(h)) is

5 amended to read as follows:

6 ‘‘(h)(1) For purposes of title XIX, any child with re7 spect to whom foster care maintenance payments are

8 made under this section shall be deemed to be a dependent

9 child as defined in section 406 (as in effect as of June

10 1, 1995) and shall be deemed to be a recipient of aid to

11 families with dependent children under part A of this title

12 (as so in effect). For purposes of title XX, any child with

13 respect to whom foster care maintenance payments are

14 made under this section shall be deemed to be a minor

15 child in a needy family under a State program funded

16 under part A and shall be deemed to be a recipient of

17 assistance under such part.

18 ‘‘(2) For purposes of paragraph (1), a child whose

19 costs in a foster family home or child care institution are

20 covered by the foster care maintenance payments being

21 made with respect to the child’s minor parent, as provided

22 in section 475(4)(B), shall be considered a child with re23 spect to whom foster care maintenance payments are

24 made under this section.’’.
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1 (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is

2 amended—

3 (A) in subparagraph (A)(i)—

4 (i) by inserting ‘‘(as such sections

5 were in effect on June 1, 1995)’’ after

6 ‘‘407’’;

7 (ii) by inserting ‘‘(as so in effect)’’

8 after ‘‘specified in section 406(a)’’; and

9 (iii) by inserting ‘‘(as such section was

10 in effect on June 1, 1995)’’ after ‘‘403’’;

11 (B) in subparagraph (B)(i)—

12 (i) by inserting ‘‘would have’’ after

13 ‘‘(B)(i)’’; and

14 (ii) by inserting ‘‘(as in effect on June

15 1, 1995)’’ after ‘‘section 402’’; and

16 (C) in subparagraph (B)(ii)(II), by insert17 ing ‘‘(as in effect on June 1, 1995)’’ after

18 ‘‘406(a)’’.

19 (6) Section 473(b) (42 U.S.C. 673(b)) is

20 amended to read as follows:

21 ‘‘(b)(1) For purposes of title XIX, any child who is

22 described in paragraph (3) shall be deemed to be a de23 pendent child as defined in section 406 (as in effect as

24 of June 1, 1995) and shall be deemed to be a recipient

25 of aid to families with dependent children under part A
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1 of this title (as so in effect) in the State where such child

2 resides.

3 ‘‘(2) For purposes of title XX, any child who is de4 scribed in paragraph (3) shall be deemed to be a minor

5 child in a needy family under a State program funded

6 under part A and shall be deemed to be a recipient of

7 assistance under such part.

8 ‘‘(3) A child described in this paragraph is any

9 child—

10 ‘‘(A)(i) who is a child described in subsection

11 (a)(2), and

12 ‘‘(ii) with respect to whom an adoption assist13 ance agreement is in effect under this section

14 (whether or not adoption assistance payments are

15 provided under the agreement or are being made

16 under this section), including any such child who has

17 been placed for adoption in accordance with applica18 ble State and local law (whether or not an interlocu19 tory or other judicial decree of adoption has been is20 sued), or

21 ‘‘(B) with respect to whom foster care mainte22 nance payments are being made under section 472.

23 ‘‘(4) For purposes of paragraphs (1) and (2), a child

24 whose costs in a foster family home or child-care institu25 tion are covered by the foster care maintenance payments
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1 being made with respect to the child’s minor parent, as

2 provided in section 475(4)(B), shall be considered a child

3 with respect to whom foster care maintenance payments

4 are being made under section 472.’’.

5 (e) REPEAL OF PART F OF TITLE IV.—Part F of

6 title IV (42 U.S.C. 681–687) is repealed.

7 (f) AMENDMENT TO TITLE X.—Section 1002(a)(7)

8 (42 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to

9 families with dependent children under the State plan ap10 proved under section 402 of this Act’’ and inserting ‘‘as11 sistance under a State program funded under part A of

12 title IV’’.

13 (g) AMENDMENTS TO TITLE XI.—

14 (1) Section 1108 (42 U.S.C. 1308) is amend15 ed—

16 (A) by redesignating subsection (c) as sub17 section (g);

18 (B) by striking all that precedes subsection

19 (c) and inserting the following:

20 ‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE

21 VIRGIN ISLANDS, GUAM, AND AMERICAN

22 SAMOA; LIMITATION ON TOTAL PAYMENTS.

23 ‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH

24 TERRITORY.—Notwithstanding any other provision of this

25 Act, the total amount certified by the Secretary of Health
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•S 1867 IS

1 and Human Services under titles I, X, XIV, and XVI,

2 under parts A and B of title IV, and under subsection

3 (b) of this section, for payment to any territory for a fiscal

4 year shall not exceed the ceiling amount for the territory

5 for the fiscal year.

6 ‘‘(b) ENTITLEMENT TO MATCHING GRANT.—

7 ‘‘(1) IN GENERAL.—Each territory shall be en8 titled to receive from the Secretary for each fiscal

9 year a grant in an amount equal to 75 percent of

10 the amount (if any) by which—

11 ‘‘(A) the total expenditures of the territory

12 during the fiscal year under the territory pro13 grams funded under parts A and B of title IV;

14 exceeds

15 ‘‘(B) the sum of—

16 ‘‘(i) the total amount required to be

17 paid to the territory (other than with re18 spect to child care) under former section

19 403 (as in effect on September 30, 1995)

20 for fiscal year 1995, which shall be deter21 mined by applying subparagraphs (C) and

22 (D) of section 403(a)(1) to the territory;

23 ‘‘(ii) the total amount required to be

24 paid to the territory under former section
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•S 1867 IS

1 434 (as so in effect) for fiscal year 1995;

2 and

3 ‘‘(iii) the total amount expended by

4 the territory during fiscal year 1995 pur5 suant to parts A, B, and F of title IV (as

6 so in effect), other than for child care.

7 ‘‘(2) USE OF GRANT.—Any territory to which a

8 grant is made under paragraph (1) may expend the

9 amount under any program operated or funded

10 under any provision of law specified in subsection

11 (a).

12 ‘‘(c) DEFINITIONS.—As used in this section:

13 ‘‘(1) TERRITORY.—The term ‘territory’ means

14 Puerto Rico, the Virgin Islands, Guam, and Amer15 ican Samoa.

16 ‘‘(2) CEILING AMOUNT.—The term ‘ceiling

17 amount’ means, with respect to a territory and a fis18 cal year, the mandatory ceiling amount with respect

19 to the territory plus the discretionary ceiling amount

20 with respect to the territory, reduced for the fiscal

21 year in accordance with subsection (f).

22 ‘‘(3) MANDATORY CEILING AMOUNT.—The term

23 ‘mandatory ceiling amount’ means—

24 ‘‘(A) $105,538,000 with respect to Puerto

25 Rico;
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1 ‘‘(B) $4,902,000 with respect to Guam;

2 ‘‘(C) $3,742,000 with respect to the Virgin

3 Islands; and

4 ‘‘(D) $1,122,000 with respect to American

5 Samoa.

6 ‘‘(4) DISCRETIONARY CEILING AMOUNT.—The

7 term ‘discretionary ceiling amount’ means, with re8 spect to a territory and a fiscal year, the total

9 amount appropriated pursuant to subsection (d)(3)

10 for the fiscal year for payment to the territory.

11 ‘‘(5) TOTAL AMOUNT EXPENDED BY THE TER12 RITORY.—The term ‘total amount expended by the

13 territory’—

14 ‘‘(A) does not include expenditures during

15 the fiscal year from amounts made available by

16 the Federal Government; and

17 ‘‘(B) when used with respect to fiscal year

18 1995, also does not include—

19 ‘‘(i) expenditures during fiscal year

20 1995 under subsection (g) or (i) of section

21 402 (as in effect on September 30, 1995);

22 or

23 ‘‘(ii) any expenditures during fiscal

24 year 1995 for which the territory (but for

25 section 1108, as in effect on September 30,
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•S 1867 IS

1 1995) would have received reimbursement

2 from the Federal Government.

3 ‘‘(d) DISCRETIONARY GRANTS.—

4 ‘‘(1) IN GENERAL.—The Secretary shall make a

5 grant to each territory for any fiscal year in the

6 amount appropriated pursuant to paragraph (3) for

7 the fiscal year for payment to the territory.

8 ‘‘(2) USE OF GRANT.—Any territory to which a

9 grant is made under paragraph (1) may expend the

10 amount under any program operated or funded

11 under any provision of law specified in subsection

12 (a).

13 ‘‘(3) LIMITATION ON AUTHORIZATION OF AP14 PROPRIATIONS.—For grants under paragraph (1),

15 there are authorized to be appropriated to the Sec16 retary for each fiscal year—

17 ‘‘(A) $7,951,000 for payment to Puerto

18 Rico;

19 ‘‘(B) $345,000 for payment to Guam;

20 ‘‘(C) $275,000 for payment to the Virgin

21 Islands; and

22 ‘‘(D) $190,000 for payment to American

23 Samoa.

24 ‘‘(e) AUTHORITY TO TRANSFER FUNDS AMONG PRO25 GRAMS.—Notwithstanding any other provision of this Act,
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•S 1867 IS

1 any territory to which an amount is paid under any provi2 sion of law specified in subsection (a) may use part or

3 all of the amount to carry out any program operated by

4 the territory, or funded, under any other such provision

5 of law.

6 ‘‘(f) MAINTENANCE OF EFFORT.—The ceiling

7 amount with respect to a territory shall be reduced for

8 a fiscal year by an amount equal to the amount (if any)

9 by which—

10 ‘‘(1) the total amount expended by the territory

11 under all programs of the territory operated pursu12 ant to the provisions of law specified in subsection

13 (a) (as such provisions were in effect for fiscal year

14 1995) for fiscal year 1995; exceeds

15 ‘‘(2) the total amount expended by the territory

16 under all programs of the territory that are funded

17 under the provisions of law specified in subsection

18 (a) for the fiscal year that immediately precedes the

19 fiscal year referred to in the matter preceding para20 graph (1).’’; and

21 (C) by striking subsections (d) and (e).

22 (2) Section 1109 (42 U.S.C. 1309) is amended

23 by striking ‘‘or part A of title IV,’’.

24 (3) Section 1115 (42 U.S.C. 1315) is amend25 ed—
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1 (A) in subsection (a)(2)—

2 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

3 (ii) by striking ‘‘403,’’;

4 (iii) by striking the period at the end

5 and inserting ‘‘, and’’; and

6 (iv) by adding at the end the following

7 new subparagraph:

8 ‘‘(B) costs of such project which would not oth9 erwise be a permissible use of funds under part A

10 of title IV and which are not included as part of the

11 costs of projects under section 1110, shall to the ex12 tent and for the period prescribed by the Secretary,

13 be regarded as a permissible use of funds under

14 such part.’’; and

15 (B) in subsection (c)(3), by striking

16 ‘‘under the program of aid to families with de17 pendent children’’ and inserting ‘‘part A of

18 such title’’.

19 (4) Section 1116 (42 U.S.C. 1316) is amend20 ed—

21 (A) in each of subsections (a)(1), (b), and

22 (d), by striking ‘‘or part A of title IV,’’; and

23 (B) in subsection (a)(3), by striking

24 ‘‘404,’’.
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•S 1867 IS

1 (5) Section 1118 (42 U.S.C. 1318) is amend2 ed—

3 (A) by striking ‘‘403(a),’’;

4 (B) by striking ‘‘and part A of title IV,’’;

5 and

6 (C) by striking ‘‘, and shall, in the case of

7 American Samoa, mean 75 per centum with re8 spect to part A of title IV’’.

9 (6) Section 1119 (42 U.S.C. 1319) is amend10 ed—

11 (A) by striking ‘‘or part A of title IV’’; and

12 (B) by striking ‘‘403(a),’’.

13 (7) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

14 amended by striking ‘‘or part A of title IV,’’.

15 (8) Section 1136 (42 U.S.C. 1320b–6) is re16 pealed.

17 (9) Section 1137 (42 U.S.C. 1320b–7) is

18 amended—

19 (A) in subsection (b), by striking para20 graph (1) and inserting the following:

21 ‘‘(1) any State program funded under part A of

22 title IV of this Act;’’; and

23 (B) in subsection (d)(1)(B)—
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•S 1867 IS

1 (i) by striking ‘‘In this subsection—’’

2 and all that follows through ‘‘(ii) in’’ and

3 inserting ‘‘In this subsection, in’’;

4 (ii) by redesignating subclauses (I),

5 (II), and (III) as clauses (i), (ii), and (iii);

6 and

7 (iii) by moving such redesignated ma8 terial 2 ems to the left.

9 (h) AMENDMENT TO TITLE XIV.—Section

10 1402(a)(7) (42 U.S.C. 1352(a)(7)) is amended by striking

11 ‘‘aid to families with dependent children under the State

12 plan approved under section 402 of this Act’’ and insert13 ing ‘‘assistance under a State program funded under part

14 A of title IV’’.

15 (i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

16 RESPECT TO THE TERRITORIES.—Section 1602(a)(11),

17 as in effect without regard to the amendment made by

18 section 301 of the Social Security Amendments of 1972

19 (42 U.S.C. 1382 note), is amended by striking ‘‘aid under

20 the State plan approved’’ and inserting ‘‘assistance under

21 a State program funded’’.

22 (j) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

23 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42

24 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

25 a State program funded under part A of title IV,’’.
151

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1 (k) AMENDMENT TO TITLE XIX.—Section 1902(j)

2 (42 U.S.C. 1396a(j)) is amended by striking ‘‘1108(c)’’

3 and inserting ‘‘1108(g)’’.

4 SEC. 109. CONFORMING AMENDMENTS TO THE FOOD

5 STAMP ACT OF 1977 AND RELATED PROVI6 SIONS.

7 (a) Section 5 of the Food Stamp Act of 1977 (7

8 U.S.C. 2014) is amended—

9 (1) in the second sentence of subsection (a), by

10 striking ‘‘plan approved’’ and all that follows

11 through ‘‘title IV of the Social Security Act’’ and in12 serting ‘‘program funded under part A of title IV of

13 the Social Security Act (42 U.S.C. 601 et seq.)’’;

14 (2) in subsection (d)—

15 (A) in paragraph (5), by striking ‘‘assist16 ance to families with dependent children’’ and

17 inserting ‘‘assistance under a State program

18 funded’’; and

19 (B) by striking paragraph (13) and redes20 ignating paragraphs (14), (15), and (16) as

21 paragraphs (13), (14), and (15), respectively;

22 (3) in subsection (j), by striking ‘‘plan approved

23 under part A of title IV of such Act (42 U.S.C. 601

24 et seq.)’’ and inserting ‘‘program funded under part
152

•S 1867 IS

1 A of title IV of the Act (42 U.S.C. 601 et seq.)’’;

2 and

3 (4) by striking subsection (m).

4 (b) Section 6 of such Act (7 U.S.C. 2015) is amend5 ed—

6 (1) in subsection (c)(5), by striking ‘‘the State

7 plan approved’’ and inserting ‘‘the State program

8 funded’’; and

9 (2) in subsection (e)(6), by striking ‘‘aid to

10 families with dependent children’’ and inserting

11 ‘‘benefits under a State program funded’’.

12 (c) Section 16(g)(4) of such Act (7 U.S.C.

13 2025(g)(4)) is amended by striking ‘‘State plans under the

14 Aid to Families with Dependent Children Program under’’

15 and inserting ‘‘State programs funded under part A of’’.

16 (d) Section 17 of such Act (7 U.S.C. 2026) is amend17 ed—

18 (1) in the first sentence of subsection (b)(1)(A),

19 by striking ‘‘to aid to families with dependent chil20 dren under part A of title IV of the Social Security

21 Act’’ and inserting ‘‘or are receiving assistance

22 under a State program funded under part A of title

23 IV of the Social Security Act (42 U.S.C. 601 et

24 seq.)’’; and
153

•S 1867 IS

1 (2) in subsection (b)(3), by adding at the end

2 the following new subparagraph:

3 ‘‘(I) The Secretary may not grant a waiver

4 under this paragraph on or after October 1, 1995.

5 Any reference in this paragraph to a provision of

6 title IV of the Social Security Act shall be deemed

7 to be a reference to such provision as in effect on

8 September 30, 1995.’’;

9 (e) Section 20 of such Act (7 U.S.C. 2029) is amend10 ed—

11 (1) in subsection (a)(2)(B) by striking ‘‘operat12 ing—’’ and all that follows through ‘‘(ii) any other’’

13 and inserting ‘‘operating any’’; and

14 (2) in subsection (b)—

15 (A) in paragraph (1)—

16 (i) by striking ‘‘(b)(1) A household’’

17 and inserting ‘‘(b) A household’’; and

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

19 ‘‘training program’’ and inserting ‘‘activ20 ity’’;

21 (B) by striking paragraph (2); and

22 (C) by redesignating subparagraphs (A)

23 through (F) as paragraphs (1) through (6), re24 spectively.
154

•S 1867 IS

1 (f) Section 5(h)(1) of the Agriculture and Consumer

2 Protection Act of 1973 (Public Law 93–186; 7 U.S.C.

3 612c note) is amended by striking ‘‘the program for aid

4 to families with dependent children’’ and inserting ‘‘the

5 State program funded’’.

6 (g) Section 9 of the National School Lunch Act (42

7 U.S.C. 1758) is amended—

8 (1) in subsection (b)—

9 (A) in paragraph (2)(C)(ii)(II)—

10 (i) by striking ‘‘program for aid to

11 families with dependent children’’ and in12 serting ‘‘State program funded’’; and

13 (ii) by inserting before the period at

14 the end the following: ‘‘that the Secretary

15 determines complies with standards estab16 lished by the Secretary that ensure that

17 the standards under the State program are

18 comparable to or more restrictive than

19 those in effect on March 1, 1996’’; and

20 (B) in paragraph (6)—

21 (i) in subparagraph (A)(ii)—

22 (I) by striking ‘‘an AFDC assist23 ance unit (under the aid to families

24 with dependent children program au25 thorized’’ and inserting ‘‘a family
155

•S 1867 IS

1 (under the State program funded’’;

2 and

3 (II) by striking ‘‘, in a State’’

4 and all that follows through

5 ‘‘9902(2)))’’ and inserting ‘‘that the

6 Secretary determines complies with

7 standards established by the Secretary

8 that ensure that the standards under

9 the State program are comparable to

10 or more restrictive than those in effect

11 on March 1, 1996’’; and

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

13 ‘‘aid to families with dependent children’’

14 and inserting ‘‘assistance under the State

15 program funded under part A of title IV of

16 the Social Security Act (42 U.S.C. 601 et

17 seq.) that the Secretary determines com18 plies with standards established by the

19 Secretary that ensure that the standards

20 under the State program are comparable

21 to or more restrictive than those in effect

22 on March 1, 1996’’; and

23 (2) in subsection (d)(2)(C)—
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•S 1867 IS

1 (A) by striking ‘‘program for aid to fami2 lies with dependent children’’ and inserting

3 ‘‘State program funded’’; and

4 (B) by inserting before the period at the

5 end the following: ‘‘that the Secretary deter6 mines complies with standards established by

7 the Secretary that ensure that the standards

8 under the State program are comparable to or

9 more restrictive than those in effect on June 1,

10 1995’’.

11 (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition

12 Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amend13 ed—

14 (1) by striking ‘‘program for aid to families

15 with dependent children established’’ and inserting

16 ‘‘State program funded’’; and

17 (2) by inserting before the semicolon the follow18 ing: ‘‘that the Secretary determines complies with

19 standards established by the Secretary that ensure

20 that the standards under the State program are

21 comparable to or more restrictive than those in ef22 fect on June 1, 1995’’.

23 SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

24 (a) Subsection (b) of section 508 of the Unemploy25 ment Compensation Amendments of 1976 (42 U.S.C.
157

•S 1867 IS

1 603a; Public Law 94–566; 90 Stat. 2689) is amended to

2 read as follows:

3 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX4 PENSES.—For purposes of section 455 of the Social Secu5 rity Act, expenses incurred to reimburse State employment

6 offices for furnishing information requested of such of7 fices—

8 ‘‘(1) pursuant to the third sentence of section

9 3(a) of the Act entitled ‘An Act to provide for the

10 establishment of a national employment system and

11 for cooperation with the States in the promotion of

12 such system, and for other purposes’, approved June

13 6, 1933 (29 U.S.C. 49b(a)), or

14 ‘‘(2) by a State or local agency charged with

15 the duty of carrying a State plan for child support

16 approved under part D of title IV of the Social Se17 curity Act,

18 shall be considered to constitute expenses incurred in the

19 administration of such State plan.’’.

20 (b) Section 9121 of the Omnibus Budget Reconcili21 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

22 (c) Section 9122 of the Omnibus Budget Reconcili23 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

24 (d) Section 221 of the Housing and Urban-Rural Re25 covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
158

•S 1867 IS

1 ment under AFDC of certain rental payments for federally

2 assisted housing, is repealed.

3 (e) Section 159 of the Tax Equity and Fiscal Respon4 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.

5 (f) Section 202(d) of the Social Security Amendments

6 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

7 (g) Section 903 of the Stewart B. McKinney Home8 less Assistance Amendments Act of 1988 (42 U.S.C.

9 11381 note), relating to demonstration projects to reduce

10 number of AFDC families in welfare hotels, is amended—

11 (1) in subsection (a), by striking ‘‘aid to fami12 lies with dependent children under a State plan ap13 proved’’ and inserting ‘‘assistance under a State pro14 gram funded’’; and

15 (2) in subsection (c), by striking ‘‘aid to fami16 lies with dependent children in the State under a

17 State plan approved’’ and inserting ‘‘assistance in

18 the State under a State program funded’’.

19 (h) The Higher Education Act of 1965 (20 U.S.C.

20 1001 et seq.) is amended—

21 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

22 23(c)(3)), by striking ‘‘(Aid to Families with De23 pendent Children)’’; and

24 (2) in section 480(b)(2) (20 U.S.C.

25 1087vv(b)(2)), by striking ‘‘aid to families with de-
159

•S 1867 IS

1 pendent children under a State plan approved’’ and

2 inserting ‘‘assistance under a State program fund3 ed’’.

4 (i) The Carl D. Perkins Vocational and Applied Tech5 nology Education Act (20 U.S.C. 2301 et seq.) is amend6 ed—

7 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

8 2341(d)(3)(A)(ii)), by striking ‘‘the program for aid

9 to dependent children’’ and inserting ‘‘the State pro10 gram funded’’;

11 (2) in section 232(b)(2)(B) (20 U.S.C.

12 2341a(b)(2)(B)), by striking ‘‘the program for aid to

13 families with dependent children’’ and inserting ‘‘the

14 State program funded’’; and

15 (3) in section 521(14)(B)(iii) (20 U.S.C.

16 2471(14)(B)(iii)), by striking ‘‘the program for aid

17 to families with dependent children’’ and inserting

18 ‘‘the State program funded’’.

19 (j) The Elementary and Secondary Education Act of

20 1965 (20 U.S.C. 2701 et seq.) is amended—

21 (1) in section 1113(a)(5) (20 U.S.C.

22 6313(a)(5)), by striking ‘‘Aid to Families with De23 pendent Children Program’’ and inserting ‘‘State

24 program funded under part A of title IV of the So25 cial Security Act’’;
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•S 1867 IS

1 (2) in section 1124(c)(5) (20 U.S.C.

2 6333(c)(5)), by striking ‘‘the program of aid to fam3 ilies with dependent children under a State plan ap4 proved under’’ and inserting ‘‘a State program fund5 ed under part A of’’; and

6 (3) in section 5203(b)(2) (20 U.S.C.

7 7233(b)(2))—

8 (A) in subparagraph (A)(xi), by striking

9 ‘‘Aid to Families with Dependent Children ben10 efits’’ and inserting ‘‘assistance under a State

11 program funded under part A of title IV of the

12 Social Security Act’’; and

13 (B) in subparagraph (B)(viii), by striking

14 ‘‘Aid to Families with Dependent Children’’ and

15 inserting ‘‘assistance under the State program

16 funded under part A of title IV of the Social

17 Security Act’’.

18 (k) Chapter VII of title I of Public Law 99–88 (25

19 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided

20 further, That general assistance payments made by the

21 Bureau of Indian Affairs shall be made—

22 ‘‘(1) after April 29, 1985, and before October

23 1, 1995, on the basis of Aid to Families with De24 pendent Children (AFDC) standards of need; and
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•S 1867 IS

1 ‘‘(2) on and after October 1, 1995, on the basis

2 of standards of need established under the State

3 program funded under part A of title IV of the So4 cial Security Act,

5 except that where a State ratably reduces its AFDC or

6 State program payments, the Bureau shall reduce general

7 assistance payments in such State by the same percentage

8 as the State has reduced the AFDC or State program pay9 ment.’’.

10 (l) The Internal Revenue Code of 1986 (26 U.S.C.

11 1 et seq.) is amended—

12 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

13 striking all that follows ‘‘agency as’’ and inserting

14 ‘‘being eligible for financial assistance under part A

15 of title IV of the Social Security Act and as having

16 continually received such financial assistance during

17 the 90-day period which immediately precedes the

18 date on which such individual is hired by the em19 ployer.’’;

20 (2) in section 3304(a)(16) (26 U.S.C.

21 3304(a)(16)), by striking ‘‘eligibility for aid or serv22 ices,’’ and all that follows through ‘‘children ap23 proved’’ and inserting ‘‘eligibility for assistance, or

24 the amount of such assistance, under a State pro25 gram funded’’;
162

•S 1867 IS

1 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

2 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

3 dependent children provided under a State plan ap4 proved’’ and inserting ‘‘a State program funded’’;

5 (4) in section 6103(l)(10) (26 U.S.C.

6 6103(l)(10))—

7 (A) by striking ‘‘(c) or (d)’’ each place it

8 appears and inserting ‘‘(c), (d), or (e)’’; and

9 (B) by adding at the end of subparagraph

10 (B) the following new sentence: ‘‘Any return in11 formation disclosed with respect to section

12 6402(e) shall only be disclosed to officers and

13 employees of the State agency requesting such

14 information.’’;

15 (5) in section 6103(p)(4) (26 U.S.C.

16 6103(p)(4)), in the matter preceding subparagraph

17 (A)—

18 (A) by striking ‘‘(5), (10)’’ and inserting

19 ‘‘(5)’’; and

20 (B) by striking ‘‘(9), or (12)’’ and insert21 ing ‘‘(9), (10), or (12)’’;

22 (6) in section 6334(a)(11)(A) (26 U.S.C.

23 6334(a)(11)(A)), by striking ‘‘(relating to aid to

24 families with dependent children)’’;

25 (7) in section 6402 (26 U.S.C. 6402)—
163

•S 1867 IS

1 (A) in subsection (a), by striking ‘‘(c) and

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

3 (B) by redesignating subsections (e)

4 through (i) as subsections (f) through (j), re5 spectively; and

6 (C) by inserting after subsection (d) the

7 following:

8 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

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

10 any overpayment to be refunded to the person making the

11 overpayment shall be reduced (after reductions pursuant

12 to subsections (c) and (d), but before a credit against fu13 ture liability for an internal revenue tax) in accordance

14 with section 405(e) of the Social Security Act (concerning

15 recovery of overpayments to individuals under State plans

16 approved under part A of title IV of such Act).’’; and

17 (8) in section 7523(b)(3)(C) (26 U.S.C.

18 7523(b)(3)(C)), by striking ‘‘aid to families with de19 pendent children’’ and inserting ‘‘assistance under a

20 State program funded under part A of title IV of the

21 Social Security Act’’.

22 (m) Section 3(b) of the Wagner-Peyser Act (29

23 U.S.C. 49b(b)) is amended by striking ‘‘State plan ap24 proved under part A of title IV’’ and inserting ‘‘State pro25 gram funded under part A of title IV’’.
164

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1 (n) The Job Training Partnership Act (29 U.S.C.

2 1501 et seq.) is amended—

3 (1) in section 4(29)(A)(i) (29 U.S.C.

4 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et

5 seq.)’’;

6 (2) in section 106(b)(6)(C) (29 U.S.C.

7 1516(b)(6)(C)), by striking ‘‘State aid to families

8 with dependent children records,’’ and inserting

9 ‘‘records collected under the State program funded

10 under part A of title IV of the Social Security Act,’’;

11 (3) in section 121(b)(2) (29 U.S.C.

12 1531(b)(2))—

13 (A) by striking ‘‘the JOBS program’’ and

14 inserting ‘‘the work activities required under

15 title IV of the Social Security Act’’; and

16 (B) by striking the second sentence;

17 (4) in section 123(c) (29 U.S.C. 1533(c))—

18 (A) in paragraph (1)(E), by repealing

19 clause (vi); and

20 (B) in paragraph (2)(D), by repealing

21 clause (v);

22 (5) in section 203(b)(3) (29 U.S.C.

23 1603(b)(3)), by striking ‘‘, including recipients

24 under the JOBS program’’;
165

•S 1867 IS

1 (6) in subparagraphs (A) and (B) of section

2 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by

3 striking ‘‘(such as the JOBS program)’’ each place

4 it appears;

5 (7) in section 205(a) (29 U.S.C. 1605(a)), by

6 striking paragraph (4) and inserting the following:

7 ‘‘(4) the portions of title IV of the Social Secu8 rity Act relating to work activities;’’;

9 (8) in section 253 (29 U.S.C. 1632)—

10 (A) in subsection (b)(2), by repealing sub11 paragraph (C); and

12 (B) in paragraphs (1)(B) and (2)(B) of

13 subsection (c), by striking ‘‘the JOBS program

14 or’’ each place it appears;

15 (9) in section 264 (29 U.S.C. 1644)—

16 (A) in subparagraphs (A) and (B) of sub17 section (b)(1), by striking ‘‘(such as the JOBS

18 program)’’ each place it appears; and

19 (B) in subparagraphs (A) and (B) of sub20 section (d)(3), by striking ‘‘and the JOBS pro21 gram’’ each place it appears;

22 (10) in section 265(b) (29 U.S.C. 1645(b)), by

23 striking paragraph (6) and inserting the following:

24 ‘‘(6) the portion of title IV of the Social Secu25 rity Act relating to work activities;’’;
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•S 1867 IS

1 (11) in the second sentence of section 429(e)

2 (29 U.S.C. 1699(e)), by striking ‘‘and shall be in an

3 amount that does not exceed the maximum amount

4 that may be provided by the State pursuant to sec5 tion 402(g)(1)(C) of the Social Security Act (42

6 U.S.C. 602(g)(1)(C))’’;

7 (12) in section 454(c) (29 U.S.C. 1734(c)), by

8 striking ‘‘JOBS and’’;

9 (13) in section 455(b) (29 U.S.C. 1735(b)), by

10 striking ‘‘the JOBS program,’’;

11 (14) in section 501(1) (29 U.S.C. 1791(1)), by

12 striking ‘‘aid to families with dependent children

13 under part A of title IV of the Social Security Act

14 (42 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance

15 under the State program funded under part A of

16 title IV of the Social Security Act’’;

17 (15) in section 506(1)(A) (29 U.S.C.

18 1791e(1)(A)), by striking ‘‘aid to families with de19 pendent children’’ and inserting ‘‘assistance under

20 the State program funded’’;

21 (16) in section 508(a)(2)(A) (29 U.S.C.

22 1791g(a)(2)(A)), by striking ‘‘aid to families with

23 dependent children’’ and inserting ‘‘assistance under

24 the State program funded’’; and
167

•S 1867 IS

1 (17) in section 701(b)(2)(A) (29 U.S.C.

2 1792(b)(2)(A))—

3 (A) in clause (v), by striking the semicolon

4 and inserting ‘‘; and’’; and

5 (B) by striking clause (vi).

6 (o) Section 3803(c)(2)(C)(iv) of title 31, United

7 States Code, is amended to read as follows:

8 ‘‘(iv) assistance under a State pro9 gram funded under part A of title IV of

10 the Social Security Act’’.

11 (p) Section 2605(b)(2)(A)(i) of the Low-Income

12 Home Energy Assistance Act of 1981 (42 U.S.C.

13 8624(b)(2)(A)(i)) is amended to read as follows:

14 ‘‘(i) assistance under the State pro15 gram funded under part A of title IV of

16 the Social Security Act;’’.

17 (q) Section 303(f)(2) of the Family Support Act of

18 1988 (42 U.S.C. 602 note) is amended—

19 (1) by striking ‘‘(A)’’; and

20 (2) by striking subparagraphs (B) and (C).

21 (r) The Balanced Budget and Emergency Deficit

22 Control Act of 1985 (2 U.S.C. 900 et seq.) is amended—

23 (1) in the first section 255(h) (2 U.S.C.

24 905(h)), by striking ‘‘Aid to families with dependent

25 children (75–0412–0–1–609);’’ and inserting ‘‘Block
168

•S 1867 IS

1 grants to States for temporary assistance for needy

2 families;’’; and

3 (2) in section 256 (2 U.S.C. 906)—

4 (A) by striking subsection (k); and

5 (B) by redesignating subsection (l) as sub6 section (k).

7 (s) The Immigration and Nationality Act (8 U.S.C.

8 1101 et seq.) is amended—

9 (1) in section 210(f) (8 U.S.C. 1160(f)), by

10 striking ‘‘aid under a State plan approved under’’

11 each place it appears and inserting ‘‘assistance

12 under a State program funded under’’;

13 (2) in section 245A(h) (8 U.S.C. 1255a(h))—

14 (A) in paragraph (1)(A)(i), by striking

15 ‘‘program of aid to families with dependent chil16 dren’’ and inserting ‘‘State program of assist17 ance’’; and

18 (B) in paragraph (2)(B), by striking ‘‘aid

19 to families with dependent children’’ and insert20 ing ‘‘assistance under a State program funded

21 under part A of title IV of the Social Security

22 Act’’; and

23 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)),

24 by striking ‘‘State plan approved’’ and inserting

25 ‘‘State program funded’’.
169

•S 1867 IS

1 (t) Section 640(a)(4)(B)(i) of the Head Start Act (42

2 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘pro3 gram of aid to families with dependent children under a

4 State plan approved’’ and inserting ‘‘State program of as5 sistance funded’’.

6 (u) Section 9 of the Act of April 19, 1950 (64 Stat.

7 47, chapter 92; 25 U.S.C. 639) is repealed.

8 (v) Subparagraph (E) of section 213(d)(6) of the

9 School-To-Work Opportunities Act of 1994 (20 U.S.C.

10 6143(d)(6)) is amended to read as follows:

11 ‘‘(E) part A of title IV of the Social Secu12 rity Act (42 U.S.C. 601 et seq.) relating to

13 work activities;’’.

14 (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United

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

16 of the Social Security Act’’ and inserting ‘‘section 404(e),

17 464, or 1137 of the Social Security Act.’’.

18 SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTER19 FEIT-RESISTANT SOCIAL SECURITY CARD RE20 QUIRED.

21 (a) DEVELOPMENT.—

22 (1) IN GENERAL.—The Commissioner of Social

23 Security (in this section referred to as the ‘‘Commis24 sioner’’) shall, in accordance with this section, de-
170

•S 1867 IS

1 velop a prototype of a counterfeit-resistant social se2 curity card. Such prototype card shall—

3 (A) be made of a durable, tamper-resistant

4 material such as plastic or polyester,

5 (B) employ technologies that provide secu6 rity features, such as magnetic stripes,

7 holograms, and integrated circuits, and

8 (C) be developed so as to provide individ9 uals with reliable proof of citizenship or legal

10 resident alien status.

11 (2) ASSISTANCE BY ATTORNEY GENERAL.—The

12 Attorney General of the United States shall provide

13 such information and assistance as the Commis14 sioner deems necessary to enable the Commissioner

15 to comply with this section.

16 (b) STUDY AND REPORT.—

17 (1) IN GENERAL.—The Commissioner shall con18 duct a study and issue a report to Congress which

19 examines different methods of improving the social

20 security card application process.

21 (2) ELEMENTS OF STUDY.—The study shall in22 clude an evaluation of the cost and work load impli23 cations of issuing a counterfeit-resistant social secu24 rity card for all individuals over a 3-, 5-, and 10-

25 year period. The study shall also evaluate the fea-
171

•S 1867 IS

1 sibility and cost implications of imposing a user fee

2 for replacement cards and cards issued to individ3 uals who apply for such a card prior to the sched4 uled 3-, 5-, and 10-year phase-in options.

5 (3) DISTRIBUTION OF REPORT.—The Commis6 sioner shall submit copies of the report described in

7 this subsection along with a facsimile of the proto8 type card as described in subsection (a) to the Com9 mittees on Ways and Means and Judiciary of the

10 House of Representatives and the Committees on Fi11 nance and Judiciary of the Senate within 1 year

12 after the date of the enactment of this Act.

13 SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

14 (a) IN GENERAL.—Whenever an organization that

15 accepts Federal funds under this Act or the amendments

16 made by this Act makes any communication that in any

17 way intends to promote public support or opposition to

18 any policy of a Federal, State, or local government

19 through any broadcasting station, newspaper, magazine,

20 outdoor advertising facility, direct mailing, or any other

21 type of general public advertising, such communication

22 shall state the following: ‘‘This was prepared and paid for

23 by an organization that accepts taxpayer dollars.’’.

24 (b) FAILURE TO COMPLY.—If an organization makes

25 any communication described in subsection (a) and fails
172

•S 1867 IS

1 to provide the statement required by that subsection, such

2 organization shall be ineligible to receive Federal funds

3 under this Act or the amendments made by this Act.

4 (c) DEFINITION.—For purposes of this section, the

5 term ‘‘organization’’ means an organization described in

6 section 501(c) of the Internal Revenue Code of 1986.

7 (d) EFFECTIVE DATES.—This section shall take ef8 fect—

9 (1) with respect to printed communications 1

10 year after the date of enactment of this Act; and

11 (2) with respect to any other communication on

12 the date of enactment of this Act.

13 SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES

14 FOR CERTAIN LOW-INCOME INDIVIDUALS

15 PROGRAM.

16 Section 505 of the Family Support Act of 1988 (42

17 U.S.C. 1315 note) is amended—

18 (1) in the heading, by striking ‘‘DEM19 ONSTRATION’’;

20 (2) by striking ‘‘demonstration’’ each place such

21 term appears;

22 (3) in subsection (a), by striking ‘‘in each of

23 fiscal years’’ and all that follows through ‘‘10’’ and

24 inserting ‘‘shall enter into agreements with’’;
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1 (4) in subsection (b)(3), by striking ‘‘aid to

2 families with dependent children under part A of

3 title IV of the Social Security Act’’ and inserting

4 ‘‘assistance under the program funded part A of title

5 IV of the Social Security Act of the State in which

6 the individual resides’’;

7 (5) in subsection (c)—

8 (A) in paragraph (1)(C), by striking ‘‘aid

9 to families with dependent children under part

10 A of title IV of the Social Security Act’’ and in11 serting ‘‘assistance under a State program

12 funded part A of title IV of the Social Security

13 Act’’;

14 (B) in paragraph (2), by striking ‘‘aid to

15 families with dependent children under title IV

16 of such Act’’ and inserting ‘‘assistance under a

17 State program funded part A of title IV of the

18 Social Security Act’’;

19 (6) in subsection (d), by striking ‘‘job opportu20 nities and basic skills training program (as provided

21 for under title IV of the Social Security Act)’’ and

22 inserting ‘‘the State program funded under part A

23 of title IV of the Social Security Act’’; and

24 (7) by striking subsections (e) through (g) and

25 inserting the following:
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1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the

2 purpose of conducting projects under this section, there

3 is authorized to be appropriated an amount not to exceed

4 $25,000,000 for any fiscal year.’’.

5 SEC. 114. SECRETARIAL SUBMISSION OF LEGISLATIVE

6 PROPOSAL FOR TECHNICAL AND CONFORM7 ING AMENDMENTS.

8 Not later than 90 days after the date of the enact9 ment of this Act, the Secretary of Health and Human

10 Services and the Commissioner of Social Security, in con11 sultation, as appropriate, with the heads of other Federal

12 agencies, shall submit to the appropriate committees of

13 Congress a legislative proposal proposing such technical

14 and conforming amendments as are necessary to bring the

15 law into conformity with the policy embodied in this title.

16 SEC. 115. EFFECTIVE DATE; TRANSITION RULE.

17 (a) IN GENERAL.—Except as otherwise provided in

18 this title, this title and the amendments made by this title

19 shall take effect on October 1, 1996.

20 (b) TRANSITION RULES.—

21 (1) STATE OPTION TO ACCELERATE EFFECTIVE

22 DATE.—

23 (A) IN GENERAL.—If, within 3 months

24 after the date of the enactment of this Act, the

25 Secretary of Health and Human Services re-
175

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1 ceives from a State, a plan described in section

2 402(a) of the Social Security Act (as added by

3 the amendment made by section 103 of this

4 Act), this title and the amendments made by

5 this title (except section 409(a)(5) of the Social

6 Security Act, as added by the amendment made

7 by such section 103) shall also apply with re8 spect to the State during the period that begins

9 on the date the Secretary approves the plan and

10 ends on September 30, 1996, except that the

11 State shall be considered an eligible State for

12 fiscal year 1996 for purposes of part A of title

13 IV of the Social Security Act (as in effect pur14 suant to the amendment made by such section

15 103).

16 (B) LIMITATIONS ON FEDERAL OBLIGA17 TIONS.—

18 (i) UNDER AFDC PROGRAM.—If the

19 Secretary receives from a State the plan

20 referred to in subparagraph (A), the total

21 obligations of the Federal Government to

22 the State under part A of title IV of the

23 Social Security Act (as in effect on Sep24 tember 30, 1995) with respect to expendi25 tures by the State after the date of the en-
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•S 1867 IS

1 actment of this Act shall not exceed an

2 amount equal to—

3 (I) the State family assistance

4 grant (as defined in section

5 403(a)(1)(B) of the Social Security

6 Act (as in effect pursuant to the

7 amendment made by section 103 of

8 this Act)); minus

9 (II) any obligations of the Fed10 eral Government to the State under

11 part A of title IV of the Social Secu12 rity Act (as in effect on September

13 30, 1995) with respect to expendi14 tures by the State during the period

15 that begins on October 1, 1995, and

16 ends on the day before the date of the

17 enactment of this Act.

18 (ii) UNDER TEMPORARY FAMILY AS19 SISTANCE PROGRAM.—Notwithstanding

20 section 403(a)(1) of the Social Security

21 Act (as in effect pursuant to the amend22 ment made by section 103 of this Act), the

23 total obligations of the Federal Govern24 ment to a State under such section

25 403(a)(1) for fiscal year 1996 after the
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1 termination of the State AFDC program

2 shall not exceed an amount equal to—

3 (I) the amount described in

4 clause (i)(I) of this subparagraph;

5 minus

6 (II) any obligations of the Fed7 eral Government to the State under

8 part A of title IV of the Social Secu9 rity Act (as in effect on September

10 30, 1995) with respect to expendi11 tures by the State on or after October

12 1, 1995.

13 (iii) CHILD CARE OBLIGATIONS EX14 CLUDED IN DETERMINING FEDERAL AFDC

15 OBLIGATIONS.—As used in this subpara16 graph, the term ‘‘obligations of the Federal

17 Government to the State under part A of

18 title IV of the Social Security Act’’ does

19 not include any obligation of the Federal

20 Government with respect to child care ex21 penditures by the State.

22 (C) SUBMISSION OF STATE PLAN FOR FIS23 CAL YEAR 1996 DEEMED ACCEPTANCE OF

24 GRANT LIMITATIONS AND FORMULA.—The sub25 mission of a plan by a State pursuant to sub-
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•S 1867 IS

1 paragraph (A) is deemed to constitute the

2 State’s acceptance of the grant reductions

3 under subparagraph (B)(ii) (including the for4 mula for computing the amount of the reduc5 tion).

6 (D) DEFINITIONS.—As used in this para7 graph:

8 (i) STATE AFDC PROGRAM.—The term

9 ‘‘State AFDC program’’ means the State

10 program under parts A and F of title IV

11 of the Social Security Act (as in effect on

12 September 30, 1995).

13 (ii) STATE.—The term ‘‘State’’ means

14 the 50 States and the District of Colum15 bia.

16 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—

17 The amendments made by this title shall not apply

18 with respect to—

19 (A) powers, duties, functions, rights,

20 claims, penalties, or obligations applicable to

21 aid, assistance, or services provided before the

22 effective date of this title under the provisions

23 amended; and

24 (B) administrative actions and proceedings

25 commenced before such date, or authorized be-
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1 fore such date to be commenced, under such

2 provisions.

3 (3) CLOSING OUT ACCOUNT FOR THOSE PRO4 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED

5 BY THIS TITLE.—In closing out accounts, Federal

6 and State officials may use scientifically acceptable

7 statistical sampling techniques. Claims made with

8 respect to State expenditures under a State plan ap9 proved under part A of title IV of the Social Secu10 rity Act (as in effect before the effective date of this

11 Act) with respect to assistance or services provided

12 on or before September 30, 1995, shall be treated as

13 claims with respect to expenditures during fiscal

14 year 1995 for purposes of reimbursement even if

15 payment was made by a State on or after October

16 1, 1995. Each State shall complete the filing of all

17 claims under the State plan (as so in effect) no later

18 than September 30, 1997. The head of each Federal

19 department shall—

20 (A) use the single audit procedure to re21 view and resolve any claims in connection with

22 the close out of programs under such State

23 plans; and

24 (B) reimburse States for any payments

25 made for assistance or services provided during
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•S 1867 IS

1 a prior fiscal year from funds for fiscal year

2 1995, rather than from funds authorized by

3 this title.

4 (4) CONTINUANCE IN OFFICE OF ASSISTANT

5 SECRETARY FOR FAMILY SUPPORT.—The individual

6 who, on the day before the effective date of this title,

7 is serving as Assistant Secretary for Family Support

8 within the Department of Health and Human Serv9 ices shall, until a successor is appointed to such po10 sition—

11 (A) continue to serve in such position; and

12 (B) except as otherwise provided by law—

13 (i) continue to perform the functions

14 of the Assistant Secretary for Family Sup15 port under section 417 of the Social Secu16 rity Act (as in effect before such effective

17 date); and

18 (ii) have the powers and duties of the

19 Assistant Secretary for Family Support

20 under section 416 of the Social Security

21 Act (as in effect pursuant to the amend22 ment made by section 103 of this Act).
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•S 1867 IS

1 TITLE II—SUPPLEMENTAL

2 SECURITY INCOME

3 SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

4 Except as otherwise specifically provided, wherever in

5 this title an amendment is expressed in terms of an

6 amendment to or repeal of a section or other provision,

7 the reference shall be considered to be made to that sec8 tion or other provision of the Social Security Act.

9 Subtitle A—Eligibility Restrictions

10 SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI11 VIDUALS FOUND TO HAVE FRAUDULENTLY

12 MISREPRESENTED RESIDENCE IN ORDER TO

13 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

14 MORE STATES.

15 (a) IN GENERAL.—Section 1614(a) (42 U.S.C.

16 1382c(a)) is amended by adding at the end the following

17 new paragraph:

18 ‘‘(5) An individual shall not be considered an eligible

19 individual for the purposes of this title during the 10-year

20 period that begins on the date the individual is convicted

21 in Federal or State court of having made a fraudulent

22 statement or representation with respect to the place of

23 residence of the individual in order to receive assistance

24 simultaneously from 2 or more States under programs

25 that are funded under title IV, title XIX, or the Food
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•S 1867 IS

1 Stamp Act of 1977, or benefits in 2 or more States under

2 the supplemental security income program under this

3 title.’’.

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

5 this section shall take effect on the date of the enactment

6 of this Act.

7 SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

8 AND PROBATION AND PAROLE VIOLATORS.

9 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

10 1382(e)) is amended by inserting after paragraph (3) the

11 following new paragraph:

12 ‘‘(4) A person shall not be considered an eligible indi13 vidual or eligible spouse for purposes of this title with re14 spect to any month if during such month the person is—

15 ‘‘(A) fleeing to avoid prosecution, or custody or

16 confinement after conviction, under the laws of the

17 place from which the person flees, for a crime, or an

18 attempt to commit a crime, which is a felony under

19 the laws of the place from which the person flees, or

20 which, in the case of the State of New Jersey, is a

21 high misdemeanor under the laws of such State; or

22 ‘‘(B) violating a condition of probation or pa23 role imposed under Federal or State law.’’.

24 (b) EXCHANGE OF INFORMATION WITH LAW EN25 FORCEMENT AGENCIES.—Section 1611(e) (42 U.S.C.
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•S 1867 IS

1 1382(e)), as amended by subsection (a), is amended by

2 inserting after paragraph (4) the following new paragraph:

3 ‘‘(5) Notwithstanding any other provision of law, the

4 Commissioner shall furnish any Federal, State, or local

5 law enforcement officer, upon the request of the officer,

6 with the current address, Social Security number, and

7 photograph (if applicable) of any recipient of benefits

8 under this title, if the officer furnishes the Commissioner

9 with the name of the recipient and notifies the Commis10 sioner that—

11 ‘‘(A) the recipient—

12 ‘‘(i) is described in subparagraph (A) or

13 (B) of paragraph (4); or

14 ‘‘(ii) has information that is necessary for

15 the officer to conduct the officer’s official du16 ties; and

17 ‘‘(B) the location or apprehension of the recipi18 ent is within the officer’s official duties.’’.

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

20 this section shall take effect on the date of the enactment

21 of this Act.

22 SEC. 203. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI

23 DISABILITY BENEFITS.

24 Section 1631 (42 U.S.C. 1383) is amended by adding

25 at the end the following new subsection:
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•S 1867 IS

1 ‘‘(o)(1) Notwithstanding any other provision of law,

2 if the Commissioner of Social Security determines that an

3 individual, who is 18 years of age or older, is eligible to

4 receive benefits pursuant to section 1614(a)(3), the Com5 missioner shall, at the time of the determination, either

6 exempt the individual from an eligibility review or estab7 lish a schedule for reviewing the individual’s continuing

8 eligibility in accordance with paragraph (2).

9 ‘‘(2)(A) The Commissioner shall establish a periodic

10 review with respect to the continuing eligibility of an indi11 vidual to receive benefits, unless the individual is exempt

12 from review under subparagraph (C) or is subject to a

13 scheduled review under subparagraph (B). A periodic re14 view under this subparagraph shall be initiated by the

15 Commissioner not later than 30 months after the date a

16 determination is made that the individual is eligible for

17 benefits and every 30 months thereafter, unless a waiver

18 is granted under section 221(i)(2). However, the Commis19 sioner shall not postpone the initiation of a periodic review

20 for more than 12 months in any case in which such waiver

21 has been granted unless exigent circumstances require

22 such postponement.

23 ‘‘(B)(i) In the case of an individual, other than an

24 individual who is exempt from review under subparagraph

25 (C) or with respect to whom subparagraph (A) applies,
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•S 1867 IS

1 the Commissioner shall schedule a review regarding the

2 individual’s continuing eligibility to receive benefits at any

3 time the Commissioner determines, based on the evidence

4 available, that there is a significant possibility that the

5 individual may cease to be entitled to such benefits.

6 ‘‘(ii) The Commissioner may establish classifications

7 of individuals for whom a review of continuing eligibility

8 is scheduled based on the impairments that are the basis

9 for such individuals’ eligibility for benefits. A review of

10 an individual covered by a classification shall be scheduled

11 in accordance with the applicable classification, unless the

12 Commissioner determines that applying such schedule is

13 inconsistent with the purpose of this Act or the integrity

14 of the supplemental security income program.

15 ‘‘(C)(i) The Commissioner may exempt an individual

16 from review under this subsection, if the individual’s eligi17 bility for benefits is based on a condition that, as a prac18 tical matter, has no substantial likelihood of improving to

19 a point where the individual will be able to perform sub20 stantial gainful activity.

21 ‘‘(ii) The Commissioner may establish classifications

22 of individuals who are exempt from review under this sub23 section based on the impairments that are the basis for

24 such individuals’ eligibility for benefits. Notwithstanding

25 any such classification, the Commissioner may, at the time
186

•S 1867 IS

1 of determining an individual’s eligibility, schedule a review

2 of such individual’s continuing eligibility if the Commis3 sioner determines that a review is necessary to preserve

4 the integrity of the supplemental security income program.

5 ‘‘(3) The Commissioner may revise a determination

6 made under paragraph (1) and schedule a review under

7 paragraph (2)(B), if the Commissioner obtains credible

8 evidence that an individual may no longer be eligible for

9 benefits or the Commissioner determines that a review is

10 necessary to maintain the integrity of the supplemental

11 security income program. Information obtained under sec12 tion 1137 may be used as the basis to schedule a review.

13 ‘‘(4)(A) The requirements of sections 1614(a)(4) and

14 1633 shall apply to reviews conducted under this sub15 section.

16 ‘‘(B) Such reviews may be conducted by the applica17 ble State agency or the Commissioner, whichever is appro18 priate.

19 ‘‘(5) Not later than 3 months after the date of the

20 enactment of this subsection, the Commissioner shall es21 tablish a schedule for reviewing the continuing eligibility

22 of each individual who is receiving benefits pursuant to

23 section 1614(a)(3) on such date of enactment and who

24 has attained 18 years of age, unless such individual is ex25 empt under paragraph (2)(C). Such review shall be sched-
187

•S 1867 IS

1 uled under the procedures prescribed by or under para2 graph (2), except that the reviews shall be scheduled so

that the eligibility of 1 3 ⁄3 of all such nonexempt individuals

4 is reviewed within 1 year after such date of enactment,

the eligibility of 1 5 ⁄3 of such nonexempt individuals is re6 viewed within 1 year after such date of enactment, and

7 all remaining nonexempt individuals who continue receiv8 ing benefits shall have their eligibility reviewed within 3

9 years after such date of enactment. Each individual deter10 mined eligible to continue receiving benefits in a review

11 scheduled under this paragraph shall, at the time of the

12 determination, be subject to paragraph (2).’’.

13 SEC. 204. DENIAL OF SUPPLEMENTAL SECURITY INCOME

14 BENEFITS BY REASON OF DISABILITY TO

15 DRUG ADDICTS AND ALCOHOLICS.

16 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

17 1382c(a)(3)) is amended by adding at the end the follow18 ing:

19 ‘‘(I) Notwithstanding subparagraph (A), an individ20 ual shall not be considered to be disabled for purposes of

21 this title if alcoholism or drug addiction would (but for

22 this subparagraph) be a contributing factor material to

23 the Commissioner’s determination that the individual is

24 disabled.’’.

25 (b) REPRESENTATIVE PAYEE REQUIREMENTS.—
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•S 1867 IS

1 (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C.

2 1383(a)(2)(A)(ii)(II)) is amended to read as follows:

3 ‘‘(II) In the case of an individual eligible for benefits

4 under this title by reason of disability, the payment of

5 such benefits shall be made to a representative payee if

6 the Commissioner of Social Security determines that such

7 payment would serve the interest of the individual because

8 the individual also has an alcoholism or drug addiction

9 condition that prevents the individual from managing such

10 benefits.’’.

11 (2) Section 1631(a)(2)(B)(vii) (42 U.S.C.

12 1383(a)(2)(B)(vii)) is amended by striking ‘‘eligible

13 for benefits’’ and all that follows through ‘‘is dis14 abled’’ and inserting ‘‘described in subparagraph

15 (A)(ii)(II)’’.

16 (3) Section 1631(a)(2)(B)(ix)(II) (42 U.S.C.

17 1383(a)(2)(B)(ix)(II)) is amended by striking all

18 that follows ‘‘15 years, or’’ and inserting ‘‘described

19 in subparagraph (A)(ii)(II)’’.

20 (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

21 1383(a)(2)(D)(i)(II)) is amended by striking ‘‘eligi22 ble for benefits’’ and all that follows through ‘‘is dis23 abled’’ and inserting ‘‘described in subparagraph

24 (A)(ii)(II)’’.
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•S 1867 IS

1 (c) TREATMENT REFERRALS FOR INDIVIDUALS

2 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI3 TION.—Title XVI (42 U.S.C. 1381 et seq.) is amended

4 by adding at the end the following new section:

5 ‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN

6 ALCOHOLISM OR DRUG ADDICTION CONDITION

7 ‘‘SEC. 1636. In the case of any eligible individual

8 whose benefits under this title by reason of disability are

9 paid to a representative payee pursuant to section

10 1631(a)(2)(A)(ii)(II), the Commissioner of Social Security

11 shall refer such individual to the appropriate State agency

12 administering the State plan for substance abuse treat13 ment services approved under subpart II of part B of title

14 XIX of the Public Health Service Act (42 U.S.C. 300x–

15 21 et seq.).’’.

16 (d) CONFORMING AMENDMENTS.—

17 (1) Section 1611(e) (42 U.S.C. 1382(e)) is

18 amended by striking paragraph (3).

19 (2) Section 1634 (42 U.S.C. 1383c) is amended

20 by striking subsection (e).

21 (3) Section 201(c)(1) of the Social Security

22 Independence and Program Improvements Act of

23 1994 (42 U.S.C. 425 note) is amended—

24 (A) by striking ‘‘to—’’ and all that follows

25 through ‘‘in cases in which’’ and inserting ‘‘to

26 individuals who are entitled to disability insur-
190

•S 1867 IS

1 ance benefits or child’s, widow’s, or widower’s

2 insurance benefits based on disability under

3 title II of the Social Security Act, in cases in

4 which’’;

5 (B) by striking ‘‘either subparagraph (A)

6 or subparagraph (B)’’ and inserting ‘‘the pre7 ceding sentence’’; and

8 (C) by striking ‘‘subparagraph (A) or (B)’’

9 and inserting ‘‘the preceding sentence’’.

10 (e) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

11 SUBSTANCE ABUSE TREATMENT PROGRAMS.—

12 (1) IN GENERAL.—Out of any money in the

13 Treasury not otherwise appropriated, there are here14 by appropriated to supplement State and Tribal pro15 grams funded under section 1933 of the Public

16 Health Service Act (42 U.S.C. 300x–33),

17 $50,000,000 for each of the fiscal years 1997 and

18 1998.

19 (2) ADDITIONAL FUNDS.—Amounts appro20 priated under paragraph (1) shall be in addition to

21 any funds otherwise appropriated for allotments

22 under section 1933 of the Public Health Service Act

23 (42 U.S.C. 300x–33) and shall be allocated pursuant

24 to such section 1933.
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•S 1867 IS

1 (3) USE OF FUNDS.—A State or tribal govern2 ment receiving an allotment under this subsection

3 shall consider as priorities, for purposes of expend4 ing funds allotted under this subsection, activities

5 relating to the treatment of the abuse of alcohol and

6 other drugs.

7 (f) EFFECTIVE DATES.—

8 (1) IN GENERAL.—Except as provided in para9 graphs (2) and (3), the amendments made by this

10 section shall apply to applicants for benefits for

11 months beginning on or after the date of the enact12 ment of this Act, without regard to whether regula13 tions have been issued to implement such amend14 ments.

15 (2) APPLICATION TO CURRENT RECIPIENTS.—

16 (A) APPLICATION AND NOTICE.—Notwith17 standing any other provision of law, in the case

18 of an individual who is receiving supplemental

19 security income benefits under title XVI of the

20 Social Security Act as of the date of the enact21 ment of this Act and whose eligibility for such

22 benefits would terminate by reason of the

23 amendments made by this section, such amend24 ments shall apply with respect to the benefits of

25 such individual, including such individual’s
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•S 1867 IS

1 treatment (if any) provided pursuant to such

2 title as in effect on the day before the date of

3 such enactment, for months beginning on or

4 after January 1, 1997, and the Commissioner

5 of Social Security shall so notify the individual

6 not later than 90 days after the date of the en7 actment of this Act.

8 (B) REAPPLICATION.—

9 (i) IN GENERAL.—Not later than 120

10 days after the date of the enactment of

11 this Act, each individual notified pursuant

12 to subparagraph (A) who desires to re13 apply for benefits under title XVI of the

14 Social Security Act, as amended by this

15 title, may reapply to the Commissioner of

16 Social Security.

17 (ii) DETERMINATION OF ELIGI18 BILITY.—Not later than January 1, 1997,

19 the Commissioner of Social Security shall

20 complete the eligibility redetermination of

21 each individual who reapplies for benefits

22 under clause (i) pursuant to the proce23 dures of title XVI of such Act.

24 (3) ADDITIONAL APPLICATION OF PAYEE REP25 RESENTATIVE AND TREATMENT REFERRAL RE-
193

•S 1867 IS

1 QUIREMENTS.—The amendments made by sub2 sections (b) and (c) shall also apply—

3 (A) in the case of any individual who is re4 ceiving supplemental security income benefits

5 under title XVI of the Social Security Act as of

6 the date of the enactment of this Act, on and

7 after the date of such individual’s first continu8 ing disability review occurring after such date

9 of enactment, and

10 (B) in the case of any individual who re11 ceives supplemental security income benefits

12 under title XVI of the Social Security Act and

13 has attained age 65, in such manner as deter14 mined appropriate by the Commissioner of So15 cial Security.

16 Subtitle B—Benefits for Disabled

17 Children

18 SEC. 211. DEFINITION AND ELIGIBILITY RULES.

19 (a) DEFINITION OF CHILDHOOD DISABILITY.—Sec20 tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is amended—

21 (1) in subparagraph (A), by striking ‘‘An indi22 vidual’’ and inserting ‘‘Except as provided in sub23 paragraph (C), an individual’’;

24 (2) in subparagraph (A), by striking ‘‘(or, in

25 the case of an individual under the age of 18, if he
194

•S 1867 IS

1 suffers from any medically determinable physical or

2 mental impairment of comparable severity)’’;

3 (3) by redesignating subparagraphs (C) through

4 (H) as subparagraphs (D) through (I), respectively;

5 (4) by inserting after subparagraph (B) the fol6 lowing new subparagraph:

7 ‘‘(C) An individual under the age of 18 shall be con8 sidered disabled for the purposes of this title if that indi9 vidual has a medically determinable physical or mental im10 pairment, which results in marked and severe functional

11 limitations, and which can be expected to result in death

12 or which has lasted or can be expected to last for a contin13 uous period of not less than 12 months.’’; and

14 (5) in subparagraph (F), as so redesignated by

15 paragraph (3) of this subsection, by striking ‘‘(D)’’

16 and inserting ‘‘(E)’’.

17 (b) CHANGES TO CHILDHOOD SSI REGULATIONS.—

18 (1) MODIFICATION TO MEDICAL CRITERIA FOR

19 EVALUATION OF MENTAL AND EMOTIONAL DIS20 ORDERS.—The Commissioner of Social Security

21 shall modify sections 112.00C.2. and

22 112.02B.2.c.(2) of appendix 1 to subpart P of part

23 404 of title 20, Code of Federal Regulations, to

24 eliminate references to maladaptive behavior in the

25 domain of personal/behavorial function.
195

•S 1867 IS

1 (2) DISCONTINUANCE OF INDIVIDUALIZED

2 FUNCTIONAL ASSESSMENT.—The Commissioner of

3 Social Security shall discontinue the individualized

4 functional assessment for children set forth in sec5 tions 416.924d and 416.924e of title 20, Code of

6 Federal Regulations.

7 (c) EFFECTIVE DATE; REGULATIONS; APPLICATION

8 TO CURRENT RECIPIENTS.—

9 (1) IN GENERAL.—The amendments made by

10 subsections (a) and (b) shall apply to applicants for

11 benefits for months beginning on or after the date

12 of the enactment of this Act, without regard to

13 whether regulations have been issued to implement

14 such amendments.

15 (2) REGULATIONS.—The Commissioner of So16 cial Security shall issue such regulations as the

17 Commissioner determines to be necessary to imple18 ment the amendments made by subsections (a) and

19 (b) not later than 60 days after the date of the en20 actment of this Act.

21 (3) APPLICATION TO CURRENT RECIPIENTS.—

22 (A) ELIGIBILITY DETERMINATIONS.—Not

23 later than 1 year after the date of the enact24 ment of this Act, the Commissioner of Social

25 Security shall redetermine the eligibility of any
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•S 1867 IS

1 individual under age 18 who is receiving supple2 mental security income benefits based on a dis3 ability under title XVI of the Social Security

4 Act as of the date of the enactment of this Act

5 and whose eligibility for such benefits may ter6 minate by reason of the amendments made by

7 subsection (a) or (b). With respect to any rede8 termination under this subparagraph—

9 (i) section 1614(a)(4) of the Social

10 Security Act (42 U.S.C. 1382c(a)(4)) shall

11 not apply;

12 (ii) the Commissioner of Social Secu13 rity shall apply the eligibility criteria for

14 new applicants for benefits under title XVI

15 of such Act;

16 (iii) the Commissioner shall give such

17 redetermination priority over all continuing

18 eligibility reviews and other reviews under

19 such title; and

20 (iv) such redetermination shall be

21 counted as a review or redetermination

22 otherwise required to be made under sec23 tion 208 of the Social Security Independ24 ence and Program Improvements Act of
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•S 1867 IS

1 1994 or any other provision of title XVI of

2 the Social Security Act.

3 (B) GRANDFATHER PROVISION.—The

4 amendments made by subsections (a) and (b),

5 and the redetermination under subparagraph

6 (A), shall only apply with respect to the benefits

7 of an individual described in subparagraph (A)

8 for months beginning on or after January 1,

9 1997.

10 (C) NOTICE.—Not later than 90 days after

11 the date of the enactment of this Act, the Com12 missioner of Social Security shall notify an indi13 vidual described in subparagraph (A) of the

14 provisions of this paragraph.

15 SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU16 ING DISABILITY REVIEWS.

17 (a) CONTINUING DISABILITY REVIEWS RELATING TO

18 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

19 1382c(a)(3)(H)), as so redesignated by section 211(a)(3)

20 of this Act, is amended—

21 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

22 (2) by adding at the end the following new

23 clause:

24 ‘‘(ii)(I) Not less frequently than once every 3 years,

25 the Commissioner shall review in accordance with para-
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1 graph (4) the continued eligibility for benefits under this

2 title of each individual who has not attained 18 years of

3 age and is eligible for such benefits by reason of an im4 pairment (or combination of impairments) which may im5 prove (or, which is unlikely to improve, at the option of

6 the Commissioner).

7 ‘‘(II) A parent or guardian of a recipient whose case

8 is reviewed under this clause shall present, at the time

9 of review, evidence demonstrating that the recipient is,

10 and has been, receiving treatment, to the extent consid11 ered medically necessary and available, of the condition

12 which was the basis for providing benefits under this

13 title.’’.

14 (b) DISABILITY ELIGIBILITY REDETERMINATIONS

15 REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS

16 OF AGE.—

17 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

18 U.S.C. 1382c(a)(3)(H)), as so redesignated by sec19 tion 211(a)(3) of this Act and as amended by sub20 section (a) of this section, is amended by adding at

21 the end the following new clause:

22 ‘‘(iii) If an individual is eligible for benefits under this

23 title by reason of disability for the month preceding the

24 month in which the individual attains the age of 18 years,

25 the Commissioner shall redetermine such eligibility—
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1 ‘‘(I) during the 1-year period beginning on the

2 individual’s 18th birthday; and

3 ‘‘(II) by applying the criteria used in determin4 ing the initial eligibility for applicants who have at5 tained the age of 18 years.

6 With respect to a redetermination under this clause, para7 graph (4) shall not apply and such redetermination shall

8 be considered a substitute for a review or redetermination

9 otherwise required under any other provision of this sub10 paragraph during that 1-year period.’’.

11 (2) CONFORMING REPEAL.—Section 207 of the

12 Social Security Independence and Program Improve13 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

14 1516) is hereby repealed.

15 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

16 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)

17 (42 U.S.C. 1382c(a)(3)(H)), as so redesignated by section

18 211(a)(3) of this Act and as amended by subsections (a)

19 and (b) of this section, is amended by adding at the end

20 the following new clause:

21 ‘‘(iv)(I) Not later than 12 months after the birth of

22 an individual, the Commissioner shall review in accordance

23 with paragraph (4) the continuing eligibility for benefits

24 under this title by reason of disability of such individual

25 whose low birth weight is a contributing factor material
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1 to the Commissioner’s determination that the individual

2 is disabled.

3 ‘‘(II) A review under subclause (I) shall be considered

4 a substitute for a review otherwise required under any

5 other provision of this subparagraph during that 12-

6 month period.

7 ‘‘(III) A parent or guardian of a recipient whose case

8 is reviewed under this clause shall present, at the time

9 of review, evidence demonstrating that the recipient is,

10 and has been, receiving treatment, to the extent consid11 ered medically necessary and available, of the condition

12 which was the basis for providing benefits under this

13 title.’’.

14 (d) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to benefits for months beginning

16 on or after the date of the enactment of this Act, without

17 regard to whether regulations have been issued to imple18 ment such amendments.

19 SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

20 (a) TIGHTENING OF REPRESENTATIVE PAYEE RE21 QUIREMENTS.—

22 (1) CLARIFICATION OF ROLE.—Section

23 1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is

24 amended by striking ‘‘and’’ at the end of subclause

25 (II), by striking the period at the end of subclause
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1 (IV) and inserting ‘‘; and’’, and by adding after sub2 clause (IV) the following new subclause:

3 ‘‘(V) advise such person through the notice of

4 award of benefits, and at such other times as the

5 Commissioner of Social Security deems appropriate,

6 of specific examples of appropriate expenditures of

7 benefits under this title and the proper role of a rep8 resentative payee.’’.

9 (2) DOCUMENTATION OF EXPENDITURES RE10 QUIRED.—

11 (A) IN GENERAL.—Subparagraph (C)(i) of

12 section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is

13 amended to read as follows:

14 ‘‘(C)(i) In any case where payment is made to a rep15 resentative payee of an individual or spouse, the Commis16 sioner of Social Security shall—

17 ‘‘(I) require such representative payee to docu18 ment expenditures and keep contemporaneous

19 records of transactions made using such payment;

20 and

21 ‘‘(II) implement statistically valid procedures

22 for reviewing a sample of such contemporaneous

23 records in order to identify instances in which such

24 representative payee is not properly using such pay25 ment.’’.
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1 (B) CONFORMING AMENDMENT WITH RE2 SPECT TO PARENT PAYEES.—Clause (ii) of sec3 tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C))

4 is amended by striking ‘‘Clause (i)’’ and insert5 ing ‘‘Subclauses (II) and (III) of clause (i)’’.

6 (3) EFFECTIVE DATE.—The amendments made

7 by this subsection shall apply to benefits paid after

8 the date of the enactment of this Act.

9 (b) DEDICATED SAVINGS ACCOUNTS.—

10 (1) IN GENERAL.—Section 1631(a)(2)(B) (42

11 U.S.C. 1383(a)(2)(B)) is amended by adding at the

12 end the following:

13 ‘‘(xiv) Notwithstanding clause (x), the Commissioner

14 of Social Security may, at the request of the representative

15 payee, pay any lump sum payment for the benefit of a

16 child into a dedicated savings account that could only be

17 used to purchase for such child—

18 ‘‘(I) education and job skills training;

19 ‘‘(II) special equipment or housing modifica20 tions or both specifically related to, and required by

21 the nature of, the child’s disability; and

22 ‘‘(III) appropriate therapy and rehabilitation.’’.

23 (2) DISREGARD OF TRUST FUNDS.—Section

24 1613(a) (42 U.S.C. 1382b(a)) is amended—
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1 (A) by striking ‘‘and’’ at the end of para2 graph (10),

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

4 paragraph (11) and inserting ‘‘; and’’, and

5 (C) by inserting after paragraph (11) the

6 following:

7 ‘‘(12) all amounts deposited in, or interest cred8 ited to, a dedicated savings account described in sec9 tion 1631(a)(2)(B)(xiv).’’.

10 (3) EFFECTIVE DATE.—The amendments made

11 by this subsection shall apply to payments made

12 after the date of the enactment of this Act.

13 SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO IN14 STITUTIONALIZED INDIVIDUALS WHOSE MED15 ICAL COSTS ARE COVERED BY PRIVATE IN16 SURANCE.

17 (a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.

18 1382(e)(1)(B)) is amended—

19 (1) by striking ‘‘title XIX, or’’ and inserting

20 ‘‘title 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 amendment made by

2 this section shall apply to benefits for months beginning

3 90 or more days after the date of the enactment of this

4 Act, without regard to whether regulations have been is5 sued to implement such amendments.

6 SEC. 215. MODIFICATION RESPECTING PARENTAL INCOME

7 DEEMED TO DISABLED CHILDREN.

8 (a) IN GENERAL.—Section 1614(f)(2) (42 U.S.C.

9 1382c(f)(2)) is amended—

10 (1) by adding at the end of subparagraph (A)

11 the following: ‘‘For purposes of the preceding sen12 tence, the income of such parent or spouse of such

13 parent shall be reduced by—

14 ‘‘(A) the allocation for basic needs described in

15 subparagraph (C)(i); and

16 ‘‘(B) the earned income disregard described in

17 subparagraph (C)(ii).’’; and

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

19 ‘‘(C)(i) The allocation for basic needs described by

20 this clause is—

21 ‘‘(I) in the case of an eligible individual who

22 does not have an eligible spouse, an amount equal to

23 50 percent of the maximum monthly benefit payable

24 under this title to an eligible individual who does not

25 have an eligible spouse; or
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1 ‘‘(II) in the case of an eligible individual who

2 has an eligible spouse, an amount equal to 50 per3 cent of the maximum monthly benefit payable under

4 this title to an eligible individual who has an eligible

5 spouse.

6 ‘‘(ii) The earned income disregard described by this

7 clause is an amount determined by deducting the first

8 $780 per year (or proportionally smaller amounts for

9 shorter periods) plus 64 percent of the remainder from

10 the earned income (determined in accordance with section

11 1612(a)(1)) of the parent (and spouse, if any).’’.

12 (b) PRESERVATION OF MEDICAID ELIGIBILITY.—

13 Section 1634 (42 U.S.C. 1383c) is amended by adding

14 at the end the following:

15 ‘‘(f) Any child who has not attained 18 years of age

16 and who would be eligible for a payment under this title

17 but for the amendment made by section 215(a) of the Per18 sonal Responsibility and Work Opportunity Act of 1996

19 shall be deemed to be receiving such payment for purposes

20 of eligibility of the child for medical assistance under a

21 State plan approved under title XIX of this Act.’’.

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

23 this section shall apply to months after 1996.
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1 Subtitle C—State Supplementation

2 Programs

3 SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIRE4 MENTS APPLICABLE TO OPTIONAL STATE

5 PROGRAMS FOR SUPPLEMENTATION OF SSI

6 BENEFITS.

7 Section 1618 (42 U.S.C. 1382g) is hereby repealed.

8 Subtitle D—Studies Regarding

9 Supplemental Security Income

10 Program

11 SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU12 RITY INCOME PROGRAM.

13 Title XVI (42 U.S.C. 1381 et seq.), as amended by

14 section 201(c) of this Act, is amended by adding at the

15 end the following new section:

16 ‘‘ANNUAL REPORT ON PROGRAM

17 ‘‘SEC. 1637. (a) Not later than May 30 of each year,

18 the Commissioner of Social Security shall prepare and de19 liver a report annually to the President and the Congress

20 regarding the program under this title, including—

21 ‘‘(1) a comprehensive description of the pro22 gram;

23 ‘‘(2) historical and current data on allowances

24 and denials, including number of applications and

25 allowance rates at initial determinations, reconsider-
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1 ations, administrative law judge hearings, council of

2 appeals hearings, and Federal court appeal hearings;

3 ‘‘(3) historical and current data on characteris4 tics of recipients and program costs, by recipient

5 group (aged, blind, work disabled adults, and chil6 dren);

7 ‘‘(4) projections of future number of recipients

8 and program costs, through at least 25 years;

9 ‘‘(5) number of redeterminations and continu10 ing disability reviews, and the outcomes of such re11 determinations and reviews;

12 ‘‘(6) data on the utilization of work incentives;

13 ‘‘(7) detailed information on administrative and

14 other program operation costs;

15 ‘‘(8) summaries of relevant research undertaken

16 by the Social Security Administration, or by other

17 researchers;

18 ‘‘(9) State supplementation program operations;

19 ‘‘(10) a historical summary of statutory

20 changes to this title; and

21 ‘‘(11) such other information as the Commis22 sioner deems useful.

23 ‘‘(b) Each member of the Social Security Advisory

24 Board shall be permitted to provide an individual report,

25 or a joint report if agreed, of views of the program under
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1 this title, to be included in the annual report under this

2 section.’’.

3 SEC. 232. STUDY OF DISABILITY DETERMINATION PROC4 ESS.

5 (a) IN GENERAL.—Not later than 90 days after the

6 date of the enactment of this Act, and from funds other7 wise appropriated, the Commissioner of Social Security

8 shall make arrangements with the National Academy of

9 Sciences, or other independent entity, to conduct a study

10 of the disability determination process under titles II and

11 XVI of the Social Security Act. This study shall be under12 taken in consultation with professionals representing ap13 propriate disciplines.

14 (b) STUDY COMPONENTS.—The study described in

15 subsection (a) shall include—

16 (1) an initial phase examining the appropriate17 ness of, and making recommendations regarding—

18 (A) the definitions of disability in effect on

19 the date of the enactment of this Act and the

20 advantages and disadvantages of alternative

21 definitions; and

22 (B) the operation of the disability deter23 mination process, including the appropriate

24 method of performing comprehensive assess-
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1 ments of individuals under age 18 with physical

2 and mental impairments;

3 (2) a second phase, which may be concurrent

4 with the initial phase, examining the validity, reli5 ability, and consistency with current scientific knowl6 edge of the standards and individual listings in the

7 Listing of Impairments set forth in appendix 1 of

8 subpart P of part 404 of title 20, Code of Federal

9 Regulations, and of related evaluation procedures as

10 promulgated by the Commissioner of Social Security;

11 and

12 (3) such other issues as the applicable entity

13 considers appropriate.

14 (c) REPORTS AND REGULATIONS.—

15 (1) REPORTS.—The Commissioner of Social Se16 curity shall request the applicable entity, to submit

17 an interim report and a final report of the findings

18 and recommendations resulting from the study de19 scribed in this section to the President and the Con20 gress not later than 18 months and 24 months, re21 spectively, from the date of the contract for such

22 study, and such additional reports as the Commis23 sioner deems appropriate after consultation with the

24 applicable entity.
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1 (2) REGULATIONS.—The Commissioner of So2 cial Security shall review both the interim and final

3 reports, and shall issue regulations implementing

4 any necessary changes following each report.

5 SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

6 Not later than January 1, 1998, the Comptroller

7 General of the United States shall study and report on—

8 (1) the impact of the amendments made by,

9 and the provisions of, this title on the supplemental

10 security income program under title XVI of the So11 cial Security Act; and

12 (2) extra expenses incurred by families of chil13 dren receiving benefits under such title that are not

14 covered by other Federal, State, or local programs.

15 Subtitle E—National Commission

16 on the Future of Disability

17 SEC. 241. ESTABLISHMENT.

18 There is established a commission to be known as the

19 National Commission on the Future of Disability (referred

20 to in this subtitle as the ‘‘Commission’’).

21 SEC. 242. DUTIES OF THE COMMISSION.

22 (a) IN GENERAL.—The Commission shall develop

23 and carry out a comprehensive study of all matters related

24 to the nature, purpose, and adequacy of all Federal pro25 grams serving individuals with disabilities. In particular,
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1 the Commission shall study the disability insurance pro2 gram under title II of the Social Security Act and the sup3 plemental security income program under title XVI of

4 such Act.

5 (b) MATTERS STUDIED.—The Commission shall pre6 pare an inventory of Federal programs serving individuals

7 with disabilities, and shall examine—

8 (1) trends and projections regarding the size

9 and characteristics of the population of individuals

10 with disabilities, and the implications of such analy11 ses for program planning;

12 (2) the feasibility and design of performance

13 standards for the Nation’s disability programs;

14 (3) the adequacy of Federal efforts in rehabili15 tation research and training, and opportunities to

16 improve the lives of individuals with disabilities

17 through all manners of scientific and engineering re18 search; and

19 (4) the adequacy of policy research available to

20 the Federal Government, and what actions might be

21 undertaken to improve the quality and scope of such

22 research.

23 (c) RECOMMENDATIONS.—The Commission shall

24 submit to the appropriate committees of the Congress and
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1 to the President recommendations and, as appropriate,

2 proposals for legislation, regarding—

3 (1) which (if any) Federal disability programs

4 should be eliminated or augmented;

5 (2) what new Federal disability programs (if

6 any) should be established;

7 (3) the suitability of the organization and loca8 tion of disability programs within the Federal Gov9 ernment;

10 (4) other actions the Federal Government

11 should take to prevent disabilities and disadvantages

12 associated with disabilities; and

13 (5) such other matters as the Commission con14 siders appropriate.

15 SEC. 243. MEMBERSHIP.

16 (a) NUMBER AND APPOINTMENT.—

17 (1) IN GENERAL.—The Commission shall be

18 composed of 15 members, of whom—

19 (A) five shall be appointed by the Presi20 dent, of whom not more than 3 shall be of the

21 same major political party;

22 (B) three shall be appointed by the Major23 ity Leader of the Senate;

24 (C) two shall be appointed by the Minority

25 Leader of the Senate;
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1 (D) three shall be appointed by the Speak2 er of the House of Representatives; and

3 (E) two shall be appointed by the Minority

4 Leader of the House of Representatives.

5 (2) REPRESENTATION.—The Commission mem6 bers shall be chosen based on their education, train7 ing, or experience. In appointing individuals as

8 members of the Commission, the President and the

9 Majority and Minority Leaders of the Senate and

10 the Speaker and Minority Leader of the House of

11 Representatives shall seek to ensure that the mem12 bership of the Commission reflects the general inter13 ests of the business and taxpaying community and

14 the diversity of individuals with disabilities in the

15 United States.

16 (b) COMPTROLLER GENERAL.—The Comptroller

17 General of the United States shall advise the Commission

18 on the methodology and approach of the study of the Com19 mission.

20 (c) TERM OF APPOINTMENT.—The members shall

21 serve on the Commission for the life of the Commission.

22 (d) MEETINGS.—The Commission shall locate its

23 headquarters in the District of Columbia, and shall meet

24 at the call of the Chairperson, but not less than 4 times

25 each year during the life of the Commission.
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1 (e) QUORUM.—Ten members of the Commission shall

2 constitute a quorum, but a lesser number may hold hear3 ings.

4 (f) CHAIRPERSON AND VICE CHAIRPERSON.—Not

5 later than 15 days after the members of the Commission

6 are appointed, such members shall designate a Chair7 person and Vice Chairperson from among the members of

8 the Commission.

9 (g) CONTINUATION OF MEMBERSHIP.—If a member

10 of the Commission becomes an officer or employee of any

11 government after appointment to the Commission, the in12 dividual may continue as a member until a successor mem13 ber is appointed.

14 (h) VACANCIES.—A vacancy on the Commission shall

15 be filled in the manner in which the original appointment

16 was made not later than 30 days after the Commission

17 is given notice of the vacancy.

18 (i) COMPENSATION.—Members of the Commission

19 shall receive no additional pay, allowances, or benefits by

20 reason of their service on the Commission.

21 (j) TRAVEL EXPENSES.—Each member of the Com22 mission shall receive travel expenses, including per diem

23 in lieu of subsistence, in accordance with sections 5702

24 and 5703 of title 5, United States Code.
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1 SEC. 244. STAFF AND SUPPORT SERVICES.

2 (a) DIRECTOR.—

3 (1) APPOINTMENT.—Upon consultation with

4 the members of the Commission, the Chairperson

5 shall appoint a Director of the Commission.

6 (2) COMPENSATION.—The Director shall be

7 paid the rate of basic pay for level V of the Execu8 tive Schedule.

9 (b) STAFF.—With the approval of the Commission,

10 the Director may appoint such personnel as the Director

11 considers appropriate.

12 (c) APPLICABILITY OF CIVIL SERVICE LAWS.—The

13 staff of the Commission shall be appointed without regard

14 to the provisions of title 5, United States Code, governing

15 appointments in the competitive service, and shall be paid

16 without regard to the provisions of chapter 51 and sub17 chapter III of chapter 53 of such title relating to classi18 fication and General Schedule pay rates.

19 (d) EXPERTS AND CONSULTANTS.—With the ap20 proval of the Commission, the Director may procure tem21 porary and intermittent services under section 3109(b) of

22 title 5, United States Code.

23 (e) STAFF OF FEDERAL AGENCIES.—Upon the re24 quest of the Commission, the head of any Federal agency

25 may detail, on a reimbursable basis, any of the personnel
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1 of such agency to the Commission to assist in carrying

2 out the duties of the Commission under this subtitle.

3 (f) OTHER RESOURCES.—The Commission shall have

4 reasonable access to materials, resources, statistical data,

5 and other information from the Library of Congress and

6 agencies and elected representatives of the executive and

7 legislative branches of the Federal Government. The

8 Chairperson of the Commission shall make requests for

9 such access in writing when necessary.

10 (g) PHYSICAL FACILITIES.—The Administrator of

11 the General Services Administration shall locate suitable

12 office space for the operation of the Commission. The fa13 cilities shall serve as the headquarters of the Commission

14 and shall include all necessary equipment and incidentals

15 required for proper functioning of the Commission.

16 SEC. 245. POWERS OF COMMISSION.

17 (a) HEARINGS.—The Commission may conduct pub18 lic hearings or forums at the discretion of the Commission,

19 at any time and place the Commission is able to secure

20 facilities and witnesses, for the purpose of carrying out

21 the duties of the Commission under this subtitle.

22 (b) DELEGATION OF AUTHORITY.—Any member or

23 agent of the Commission may, if authorized by the Com24 mission, take any action the Commission is authorized to

25 take by this section.
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1 (c) INFORMATION.—The Commission may secure di2 rectly from any Federal agency information necessary to

3 enable the Commission to carry out its duties under this

4 subtitle. Upon request of the Chairperson or Vice Chair5 person of the Commission, the head of a Federal agency

6 shall furnish the information to the Commission to the ex7 tent permitted by law.

8 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis9 sion may accept, use, and dispose of gifts, bequests, or

10 devises of services or property, both real and personal, for

11 the purpose of aiding or facilitating the work of the Com12 mission. Gifts, bequests, or devises of money and proceeds

13 from sales of other property received as gifts, bequests,

14 or devises shall be deposited in the Treasury and shall be

15 available for disbursement upon order of the Commission.

16 (e) MAILS.—The Commission may use the United

17 States mails in the same manner and under the same con18 ditions as other Federal agencies.

19 SEC. 246. REPORTS.

20 (a) INTERIM REPORT.—Not later than 1 year prior

21 to the date on which the Commission terminates pursuant

22 to section 247, the Commission shall submit an interim

23 report to the President and to the Congress. The interim

24 report shall contain a detailed statement of the findings

25 and conclusions of the Commission, together with the
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1 Commission’s recommendations for legislative and admin2 istrative action, based on the activities of the Commission.

3 (b) FINAL REPORT.—Not later than the date on

4 which the Commission terminates, the Commission shall

5 submit to the Congress and to the President a final report

6 containing—

7 (1) a detailed statement of final findings, con8 clusions, and recommendations; and

9 (2) an assessment of the extent to which rec10 ommendations of the Commission included in the in11 terim report under subsection (a) have been imple12 mented.

13 (c) PRINTING AND PUBLIC DISTRIBUTION.—Upon

14 receipt of each report of the Commission under this sec15 tion, the President shall—

16 (1) order the report to be printed; and

17 (2) make the report available to the public upon

18 request.

19 SEC. 247. TERMINATION.

20 The Commission shall terminate on the date that is

21 2 years after the date on which the members of the Com22 mission have met and designated a Chairperson and Vice

23 Chairperson.
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1 SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated such sums

3 as are necessary to carry out the purposes of the Commis4 sion.

5 TITLE III—CHILD SUPPORT

6 SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

7 Except as otherwise specifically provided, where ever

8 in this title an amendment is expressed in terms of an

9 amendment to or repeal of a section or other provision,

10 the reference shall be considered to be made to that sec11 tion or other provision of the Social Security Act.

12 Subtitle A—Eligibility for Services;

13 Distribution of Payments

14 SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUP15 PORT ENFORCEMENT SERVICES.

16 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

17 U.S.C. 654) is amended—

18 (1) by striking paragraph (4) and inserting the

19 following new paragraph:

20 ‘‘(4) provide that the State will—

21 ‘‘(A) provide services relating to the estab22 lishment of paternity or the establishment,

23 modification, or enforcement of child support

24 obligations, as appropriate, under the plan with

25 respect to—
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1 ‘‘(i) each child for whom (I) assist2 ance is provided under the State program

3 funded under part A of this title, (II) ben4 efits or services for foster care mainte5 nance and adoption assistance are provided

6 under the State program funded under

7 part B of this title, or (III) medical assist8 ance is provided under the State plan ap9 proved under title XIX, unless the State

10 agency administering the plan determines

11 (in accordance with paragraph (29)) that

12 it is against the best interests of the child

13 to do so; and

14 ‘‘(ii) any other child, if an individual

15 applies for such services with respect to

16 the child; and

17 ‘‘(B) enforce any support obligation estab18 lished with respect to—

19 ‘‘(i) a child with respect to whom the

20 State provides services under the plan; or

21 ‘‘(ii) the custodial parent of such a

22 child.’’; and

23 (2) in paragraph (6)—

24 (A) by striking ‘‘provide that’’ and insert25 ing ‘‘provide that—’’;
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1 (B) by striking subparagraph (A) and in2 serting the following new subparagraph:

3 ‘‘(A) services under the plan shall be made

4 available to residents of other States on the

5 same terms as to residents of the State submit6 ting the plan;’’;

7 (C) in subparagraph (B), by inserting ‘‘on

8 individuals not receiving assistance under any

9 State program funded under part A’’ after

10 ‘‘such services shall be imposed’’;

11 (D) in each of subparagraphs (B), (C),

12 (D), and (E)—

13 (i) by indenting the subparagraph in

14 the same manner as, and aligning the left

15 margin of the subparagraph with the left

16 margin of, the matter inserted by subpara17 graph (B) of this paragraph; and

18 (ii) by striking the final comma and

19 inserting a semicolon; and

20 (E) in subparagraph (E), by indenting

21 each of clauses (i) and (ii) 2 additional ems.

22 (b) CONTINUATION OF SERVICES FOR FAMILIES

23 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

24 PROGRAM FUNDED UNDER PART A.—Section 454 (42

25 U.S.C. 654) is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (23);

3 (2) by striking the period at the end of para4 graph (24) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (24) the follow6 ing new paragraph:

7 ‘‘(25) provide that if a family with respect to

8 which services are provided under the plan ceases to

9 receive assistance under the State program funded

10 under part A, the State shall provide appropriate no11 tice to the family and continue to provide such serv12 ices, subject to the same conditions and on the same

13 basis as in the case of other individuals to whom

14 services are furnished under the plan, except that an

15 application or other request to continue services

16 shall not be required of such a family and paragraph

17 (6)(B) shall not apply to the family.’’.

18 (c) CONFORMING AMENDMENTS.—

19 (1) Section 452(b) (42 U.S.C. 652(b)) is

20 amended by striking ‘‘454(6)’’ and inserting

21 ‘‘454(4)’’.

22 (2) Section 452(g)(2)(A) (42 U.S.C.

23 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

24 place it appears and inserting ‘‘454(4)(A)(ii)’’.
223

•S 1867 IS

1 (3) Section 466(a)(3)(B) (42 U.S.C.

2 666(a)(3)(B)) is amended by striking ‘‘in the case of

3 overdue support which a State has agreed to collect

4 under section 454(6)’’ and inserting ‘‘in any other

5 case’’.

6 (4) Section 466(e) (42 U.S.C. 666(e)) is

7 amended by striking ‘‘paragraph (4) or (6) of sec8 tion 454’’ and inserting ‘‘section 454(4)’’.

9 SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLEC10 TIONS.

11 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

12 amended to read as follows:

13 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

14 ‘‘(a) IN GENERAL.—An amount collected on behalf

15 of a family as support by a State pursuant to a plan ap16 proved under this part shall be distributed as follows:

17 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

18 case of a family receiving assistance from the State,

19 the State shall—

20 ‘‘(A) pay to the Federal Government the

21 Federal share of the amount so collected; and

22 ‘‘(B) retain, or distribute to the family, the

23 State share of the amount so collected.
224

•S 1867 IS

1 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS2 SISTANCE.—In the case of a family that formerly re3 ceived assistance from the State:

4 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

5 the extent that the amount so collected does not

6 exceed the amount required to be paid to the

7 family for the month in which collected, the

8 State shall distribute the amount so collected to

9 the family.

10 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

11 extent that the amount so collected exceeds the

12 amount required to be paid to the family for

13 the month in which collected, the State shall

14 distribute the amount so collected as follows:

15 ‘‘(i) DISTRIBUTION OF ARREARAGES

16 THAT ACCRUED AFTER THE FAMILY

17 CEASED TO RECEIVE ASSISTANCE.—

18 ‘‘(I) PRE-OCTOBER 1997.—The

19 provisions of this section (other than

20 subsection (b)(1)) as in effect and ap21 plied on the day before the date of the

22 enactment of section 302 of the Bi23 partisan Welfare Reform Act of 1996

24 shall apply with respect to the dis25 tribution of support arrearages that—
225

•S 1867 IS

1 ‘‘(aa) accrued after the fam2 ily ceased to receive assistance,

3 and

4 ‘‘(bb) are collected before

5 October 1, 1997.

6 ‘‘(II) POST-SEPTEMBER 1997.—

7 With respect the amount so collected

8 on or after October 1, 1997, or before

9 such date, at the option of the

10 State—

11 ‘‘(aa) IN GENERAL.—The

12 State shall first distribute the

13 amount so collected (other than

14 any amount described in clause

15 (iv)) to the family to the extent

16 necessary to satisfy any support

17 arrearages with respect to the

18 family that accrued after the

19 family ceased to receive assist20 ance from the State.

21 ‘‘(bb) REIMBURSEMENT OF

22 GOVERNMENTS FOR ASSISTANCE

23 PROVIDED TO THE FAMILY.—

24 After the application of division

25 (aa) and clause (ii)(II)(aa) with
226

•S 1867 IS

1 respect to the amount so col2 lected, the State shall retain the

3 State share of the amount so col4 lected, and pay to the Federal

5 Government the Federal share

6 (as defined in subsection

7 (c)(2)(A)) of the amount so col8 lected, but only to the extent nec9 essary to reimburse amounts paid

10 to the family as assistance by the

11 State.

12 ‘‘(cc) DISTRIBUTION OF THE

13 REMAINDER TO THE FAMILY.—

14 To the extent that neither divi15 sion (aa) nor division (bb) applies

16 to the amount so collected, the

17 State shall distribute the amount

18 to the family.

19 ‘‘(ii) DISTRIBUTION OF ARREARAGES

20 THAT ACCRUED BEFORE THE FAMILY RE21 CEIVED ASSISTANCE.—

22 ‘‘(I) PRE-OCTOBER 2000.—The

23 provisions of this section (other than

24 subsection (b)(1)) as in effect and ap25 plied on the day before the date of the
227

•S 1867 IS

1 enactment of section 302 of the Bi2 partisan Welfare Reform Act of 1996

3 shall apply with respect to the dis4 tribution of support arrearages that—

5 ‘‘(aa) accrued before the

6 family received assistance, and

7 ‘‘(bb) are collected before

8 October 1, 2000.

9 ‘‘(II) POST-SEPTEMBER 2000.—

10 Unless, based on the report required

11 by paragraph (4), the Congress deter12 mines otherwise, with respect to the

13 amount so collected on or after Octo14 ber 1, 2000, or before such date, at

15 the option of the State—

16 ‘‘(aa) IN GENERAL.—The

17 State shall first distribute the

18 amount so collected (other than

19 any amount described in clause

20 (iv)) to the family to the extent

21 necessary to satisfy any support

22 arrearages with respect to the

23 family that accrued before the

24 family received assistance from

25 the State.
228

•S 1867 IS

1 ‘‘(bb) REIMBURSEMENT OF

2 GOVERNMENTS FOR ASSISTANCE

3 PROVIDED TO THE FAMILY.—

4 After the application of clause

5 (i)(II)(aa) and division (aa) with

6 respect to the amount so col7 lected, the State shall retain the

8 State share of the amount so col9 lected, and pay to the Federal

10 Government the Federal share

11 (as defined in subsection (c)(2))

12 of the amount so collected, but

13 only to the extent necessary to

14 reimburse of the amounts paid to

15 the family as assistance by the

16 State.

17 ‘‘(cc) DISTRIBUTION OF THE

18 REMAINDER TO THE FAMILY.—

19 To the extent that neither divi20 sion (aa) nor division (bb) applies

21 to the amount so collected, the

22 State shall distribute the amount

23 to the family.

24 ‘‘(iii) DISTRIBUTION OF ARREARAGES

25 THAT ACCRUED WHILE THE FAMILY RE-
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•S 1867 IS

1 CEIVED ASSISTANCE.—In the case of a

2 family described in this subparagraph, the

3 provisions of paragraph (1) shall apply

4 with respect to the distribution of support

5 arrearages that accrued while the family

6 received assistance.

7 ‘‘(iv) AMOUNTS COLLECTED PURSU8 ANT TO SECTION 464.—Notwithstanding

9 any other provision of this section, any

10 amount of support collected pursuant to

11 section 464 shall be retained by the State

12 to the extent necessary to reimburse

13 amounts paid to the family as assistance

14 by the State. The State shall pay to the

15 Federal Government the Federal share of

16 the amounts so retained. To the extent the

17 amount collected pursuant to section 464

18 exceeds the amount so retained, the State

19 shall distribute the excess to the family.

20 ‘‘(v) ORDERING RULES FOR DISTRIBU21 TIONS.—For purposes of this subpara22 graph, the State shall treat any support

23 arrearages collected as accruing in the fol24 lowing order:
230

•S 1867 IS

1 ‘‘(I) to the period after the fam2 ily ceased to receive assistance;

3 ‘‘(II) to the period before the

4 family received assistance; and

5 ‘‘(III) to the period while the

6 family was receiving assistance.

7 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST8 ANCE.—In the case of any other family, the State

9 shall distribute the amount so collected to the fam10 ily.

11 ‘‘(4) STUDY AND REPORT.—Not later than Oc12 tober 1, 1998, the Secretary shall report to the Con13 gress the Secretary’s findings with respect to—

14 ‘‘(A) whether the distribution of post-as15 sistance arrearages to families has been effec16 tive in moving people off of welfare and keeping

17 them off of welfare;

18 ‘‘(B) whether early implementation of a

19 pre-assistance arrearage program by some

20 States has been effective in moving people off

21 of welfare and keeping them off of welfare;

22 ‘‘(C) what the overall impact has been of

23 the amendments made by the Bipartisan Wel24 fare Reform Act of 1996 with respect to child
231

•S 1867 IS

1 support enforcement in moving people off of

2 welfare and keeping them off of welfare; and

3 ‘‘(D) based on the information and data

4 the Secretary has obtained, what changes, if

5 any, should be made in the policies related to

6 the distribution of child support arrearages.

7 ‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights

8 to support obligations, which were assigned to a State as

9 a condition of receiving assistance from the State under

10 part A and which were in effect on the day before the

11 date of the enactment of the Bipartisan Welfare Reform

12 Act of 1996, shall remain assigned after such date.

13 ‘‘(c) DEFINITIONS.—As used in subsection (a):

14 ‘‘(1) ASSISTANCE.—The term ‘assistance from

15 the State’ means—

16 ‘‘(A) assistance under the State program

17 funded under part A or under the State plan

18 approved under part A of this title (as in effect

19 on the day before the date of the enactment of

20 the Bipartisan Welfare Reform Act of 1996); or

21 ‘‘(B) benefits under the State plan ap22 proved under part E of this title (as in effect

23 on the day before the date of the enactment of

24 the Bipartisan Welfare Reform Act of 1996).
232

•S 1867 IS

1 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

2 share’ means that portion of the amount collected

3 resulting from the application of the Federal medical

4 percentage in effect for the fiscal year in which the

5 amount is collected.

6 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT7 AGE.—The term ‘Federal medical assistance per8 centage’ means—

9 ‘‘(A) the Federal medical assistance per10 centage (as defined in section 1118), in the case

11 of Puerto Rico, the Virgin Islands, Guam, and

12 American Samoa; or

13 ‘‘(B) the Federal medical assistance per14 centage (as defined in section 1905(b)) in the

15 case of any other State.

16 ‘‘(4) STATE SHARE.—The term ‘State share’

17 means 100 percent minus the Federal share.

18 ‘‘(d) HOLD HARMLESS PROVISION.—If the amounts

19 collected which could be retained by the State in the fiscal

20 year (to the extent necessary to reimburse the State for

21 amounts paid to families as assistance by the State) are

22 less than the State share of the amounts collected in fiscal

23 year 1995 (determined in accordance with section 457 as

24 in effect on the day before the date of the enactment of

25 the Bipartisan Welfare Reform Act of 1996), the State
233

•S 1867 IS

1 share for the fiscal year shall be an amount equal to the

2 State share in fiscal year 1995.’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is

5 amended by striking ‘‘section 457(b)(4) or (d)(3)’’

6 and inserting ‘‘section 457’’.

7 (2) Section 454 (42 U.S.C. 654) is amended—

8 (A) in paragraph (11)—

9 (i) by striking ‘‘(11)’’ and inserting

10 ‘‘(11)(A)’’; and

11 (ii) by inserting after the semicolon

12 ‘‘and’’; and

13 (B) by redesignating paragraph (12) as

14 subparagraph (B) of paragraph (11).

15 (c) EFFECTIVE DATES.—

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by this section

18 shall be effective on October 1, 1996, or earlier at

19 the State’s option.

20 (2) CONFORMING AMENDMENTS.—The amend21 ments made by subsection (b)(2) shall become effec22 tive on the date of the enactment of this Act.
234

•S 1867 IS

1 SEC. 303. PRIVACY SAFEGUARDS.

2 (a) STATE PLAN REQUIREMENT.—Section 454 (42

3 U.S.C. 654), as amended by section 301(b) of this Act,

4 is amended—

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

6 (24);

7 (2) by striking the period at the end of para8 graph (25) and inserting ‘‘; and’’; and

9 (3) by adding after paragraph (25) the follow10 ing new paragraph:

11 ‘‘(26) will have in effect safeguards, applicable

12 to all confidential information handled by the State

13 agency, that are designed to protect the privacy

14 rights of the parties, including—

15 ‘‘(A) safeguards against unauthorized use

16 or disclosure of information relating to proceed17 ings or actions to establish paternity, or to es18 tablish or enforce support;

19 ‘‘(B) prohibitions against the release of in20 formation on the whereabouts of 1 party to an21 other party against whom a protective order

22 with respect to the former party has been en23 tered; and

24 ‘‘(C) prohibitions against the release of in25 formation on the whereabouts of 1 party to an26 other party if the State has reason to believe
235

•S 1867 IS

1 that the release of the information may result

2 in physical or emotional harm to the former

3 party.’’.

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

5 subsection (a) shall become effective on October 1, 1997.

6 SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

7 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

8 amended by section 302(b)(2) of this Act, is amended by

9 inserting after paragraph (11) the following new para10 graph:

11 ‘‘(12) provide for the establishment of proce12 dures to require the State to provide individuals who

13 are applying for or receiving services under the State

14 plan, or who are parties to cases in which services

15 are being provided under the State plan—

16 ‘‘(A) with notice of all proceedings in

17 which support obligations might be established

18 or modified; and

19 ‘‘(B) with a copy of any order establishing

20 or modifying a child support obligation, or (in

21 the case of a petition for modification) a notice

22 of determination that there should be no change

23 in the amount of the child support award, with24 in 14 days after issuance of such order or de25 termination;’’.
236

•S 1867 IS

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

2 subsection (a) shall become effective on October 1, 1997.

3 Subtitle B—Locate and Case

4 Tracking

5 SEC. 311. STATE CASE REGISTRY.

6 Section 454A, as added by section 344(a)(2) of this

7 Act, is amended by adding at the end the following new

8 subsections:

9 ‘‘(e) STATE CASE REGISTRY.—

10 ‘‘(1) CONTENTS.—The automated system re11 quired by this section shall include a registry (which

12 shall be known as the ‘State case registry’) that con13 tains records with respect to—

14 ‘‘(A) each case in which services are being

15 provided by the State agency under the State

16 plan approved under this part; and

17 ‘‘(B) each support order established or

18 modified in the State on or after October 1,

19 1998.

20 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

21 State case registry may be established by linking

22 local case registries of support orders through an

23 automated information network, subject to this sec24 tion.
237

•S 1867 IS

1 ‘‘(3) USE OF STANDARDIZED DATA ELE2 MENTS.—Such records shall use standardized data

3 elements for both parents (such as names, social se4 curity numbers and other uniform identification

5 numbers, dates of birth, and case identification

6 numbers), and contain such other information (such

7 as on-case status) as the Secretary may require.

8 ‘‘(4) PAYMENT RECORDS.—Each case record in

9 the State case registry with respect to which services

10 are being provided under the State plan approved

11 under this part and with respect to which a support

12 order has been established shall include a record

13 of—

14 ‘‘(A) the amount of monthly (or other peri15 odic) support owed under the order, and other

16 amounts (including arrearages, interest or late

17 payment penalties, and fees) due or overdue

18 under the order;

19 ‘‘(B) any amount described in subpara20 graph (A) that has been collected;

21 ‘‘(C) the distribution of such collected

22 amounts;

23 ‘‘(D) the birth date of any child for whom

24 the order requires the provision of support; and
238

•S 1867 IS

1 ‘‘(E) the amount of any lien imposed with

2 respect to the order pursuant to section

3 466(a)(4).

4 ‘‘(5) UPDATING AND MONITORING.—The State

5 agency operating the automated system required by

6 this section shall promptly establish and maintain,

7 and regularly monitor, case records in the State case

8 registry with respect to which services are being pro9 vided under the State plan approved under this part,

10 on the basis of—

11 ‘‘(A) information on administrative actions

12 and administrative and judicial proceedings and

13 orders relating to paternity and support;

14 ‘‘(B) information obtained from compari15 son with Federal, State, or local sources of in16 formation;

17 ‘‘(C) information on support collections

18 and distributions; and

19 ‘‘(D) any other relevant information.

20 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS21 CLOSURES OF INFORMATION.—The State shall use the

22 automated system required by this section to extract infor23 mation from (at such times, and in such standardized for24 mat or formats, as may be required by the Secretary), to

25 share and compare information with, and to receive infor-
239

•S 1867 IS

1 mation from, other data bases and information compari2 son services, in order to obtain (or provide) information

3 necessary to enable the State agency (or the Secretary or

4 other State or Federal agencies) to carry out this part,

5 subject to section 6103 of the Internal Revenue Code of

6 1986. Such information comparison activities shall include

7 the following:

8 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP9 PORT ORDERS.—Furnishing to the Federal Case

10 Registry of Child Support Orders established under

11 section 453(h) (and update as necessary, with infor12 mation including notice of expiration of orders) the

13 minimum amount of information on child support

14 cases recorded in the State case registry that is nec15 essary to operate the registry (as specified by the

16 Secretary in regulations).

17 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

18 Exchanging information with the Federal Parent

19 Locator Service for the purposes specified in section

20 453.

21 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

22 MEDICAID AGENCIES.—Exchanging information with

23 State agencies (of the State and of other States) ad24 ministering programs funded under part A, pro25 grams operated under State plans under title XIX,
240

•S 1867 IS

1 and other programs designated by the Secretary, as

2 necessary to perform State agency responsibilities

3 under this part and under such programs.

4 ‘‘(4) INTRASTATE AND INTERSTATE INFORMA5 TION COMPARISONS.—Exchanging information with

6 other agencies of the State, agencies of other States,

7 and interstate information networks, as necessary

8 and appropriate to carry out (or assist other States

9 to carry out) the purposes of this part.’’.

10 SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT

11 PAYMENTS.

12 (a) STATE PLAN REQUIREMENT.—Section 454 (42

13 U.S.C. 654), as amended by sections 301(b) and 303(a)

14 of this Act, is amended—

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

16 (25);

17 (2) by striking the period at the end of para18 graph (26) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (26) the follow20 ing new paragraph:

21 ‘‘(27) provide that, on and after October 1,

22 1998, the State agency will—

23 ‘‘(A) operate a State disbursement unit in

24 accordance with section 454B; and
241

•S 1867 IS

1 ‘‘(B) have sufficient State staff (consisting

2 of State employees) and (at State option) con3 tractors reporting directly to the State agency

4 to—

5 ‘‘(i) monitor and enforce support col6 lections through the unit in cases being en7 forced by the State pursuant to section

8 454(4) (including carrying out the auto9 mated data processing responsibilities de10 scribed in section 454A(g)); and

11 ‘‘(ii) take the actions described in sec12 tion 466(c)(1) in appropriate cases.’’.

13 (b) ESTABLISHMENT OF STATE DISBURSEMENT

14 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

15 amended by section 344(a)(2) of this Act, is amended by

16 inserting after section 454A the following new section:

17 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP18 PORT PAYMENTS.

19 ‘‘(a) STATE DISBURSEMENT UNIT.—

20 ‘‘(1) IN GENERAL.—In order for a State to

21 meet the requirements of this section, the State

22 agency must establish and operate a unit (which

23 shall be known as the ‘State disbursement unit’) for

24 the collection and disbursement of payments under

25 support orders—
242

•S 1867 IS

1 ‘‘(A) in all cases being enforced by the

2 State pursuant to section 454(4); and

3 ‘‘(B) in all cases not being enforced by the

4 State under this part in which the support

5 order is initially issued in the State on or after

6 January 1, 1994, and in which the wages of the

7 absent parent are subject to withholding pursu8 ant to section 466(a)(8)(B).

9 ‘‘(2) OPERATION.—The State disbursement

10 unit shall be operated—

11 ‘‘(A) directly by the State agency (or 2 or

12 more State agencies under a regional coopera13 tive agreement), or (to the extent appropriate)

14 by a contractor responsible directly to the State

15 agency; and

16 ‘‘(B) except in cases described in para17 graph (1)(B), in coordination with the auto18 mated system established by the State pursuant

19 to section 454A.

20 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

21 UNITS.—The State disbursement unit may be estab22 lished by linking local disbursement units through

23 an automated information network, subject to this

24 section, if the Secretary agrees that the system will

25 not cost more nor take more time to establish or op-
243

•S 1867 IS

1 erate than a centralized system. In addition, employ2 ers shall be given 1 location to which income with3 holding is sent.

4 ‘‘(b) REQUIRED PROCEDURES.—The State disburse5 ment unit shall use automated procedures, electronic proc6 esses, and computer-driven technology to the maximum

7 extent feasible, efficient, and economical, for the collection

8 and disbursement of support payments, including proce9 dures—

10 ‘‘(1) for receipt of payments from parents, em11 ployers, and other States, and for disbursements to

12 custodial parents and other obligees, the State agen13 cy, and the agencies of other States;

14 ‘‘(2) for accurate identification of payments;

15 ‘‘(3) to ensure prompt disbursement of the cus16 todial parent’s share of any payment; and

17 ‘‘(4) to furnish to any parent, upon request,

18 timely information on the current status of support

19 payments under an order requiring payments to be

20 made by or to the parent.

21 ‘‘(c) TIMING OF DISBURSEMENTS.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the State disbursement unit shall distrib24 ute all amounts payable under section 457(a) within

25 2 business days after receipt from the employer or
244

•S 1867 IS

1 other source of periodic income, if sufficient infor2 mation identifying the payee is provided.

3 ‘‘(2) PERMISSIVE RETENTION OF ARREAR4 AGES.—The State disbursement unit may delay the

5 distribution of collections toward arrearages until

6 the resolution of any timely appeal with respect to

7 such arrearages.

8 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec9 tion, the term ‘business day’ means a day on which State

10 offices are open for regular business.’’.

11 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

12 added by section 344(a)(2) and as amended by section 311

13 of this Act, is amended by adding at the end the following

14 new subsection:

15 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

16 PAYMENTS.—

17 ‘‘(1) IN GENERAL.—The State shall use the

18 automated system required by this section, to the

19 maximum extent feasible, to assist and facilitate the

20 collection and disbursement of support payments

21 through the State disbursement unit operated under

22 section 454B, through the performance of functions,

23 including, at a minimum—
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•S 1867 IS

1 ‘‘(A) transmission of orders and notices to

2 employers (and other debtors) for the withhold3 ing of wages and other income—

4 ‘‘(i) within 2 business days after re5 ceipt from a court, another State, an em6 ployer, the Federal Parent Locator Service,

7 or another source recognized by the State

8 of notice of, and the income source subject

9 to, such withholding; and

10 ‘‘(ii) using uniform formats prescribed

11 by the Secretary;

12 ‘‘(B) ongoing monitoring to promptly iden13 tify failures to make timely payment of support;

14 and

15 ‘‘(C) automatic use of enforcement proce16 dures (including procedures authorized pursu17 ant to section 466(c)) if payments are not time18 ly made.

19 ‘‘(2) BUSINESS DAY DEFINED.—As used in

20 paragraph (1), the term ‘business day’ means a day

21 on which State offices are open for regular busi22 ness.’’.

23 (d) EFFECTIVE DATE.—The amendments made by

24 this section shall become effective on October 1, 1998.
246

•S 1867 IS

1 SEC. 313. STATE DIRECTORY OF NEW HIRES.

2 (a) STATE PLAN REQUIREMENT.—Section 454 (42

3 U.S.C. 654), as amended by sections 301(b), 303(a) and

4 312(a) of this Act, is amended—

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

6 (26);

7 (2) by striking the period at the end of para8 graph (27) and inserting ‘‘; and’’; and

9 (3) by adding after paragraph (27) the follow10 ing new paragraph:

11 ‘‘(28) provide that, on and after October 1,

12 1997, the State will operate a State Directory of

13 New Hires in accordance with section 453A.’’.

14 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

15 title IV (42 U.S.C. 651–669) is amended by inserting

16 after section 453 the following new section:

17 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

18 ‘‘(a) ESTABLISHMENT.—

19 ‘‘(1) IN GENERAL.—

20 ‘‘(A) REQUIREMENT FOR STATES THAT

21 HAVE NO DIRECTORY.—Except as provided in

22 subparagraph (B), not later than October 1,

23 1997, each State shall establish an automated

24 directory (to be known as the ‘State Directory

25 of New Hires’) which shall contain information
247

•S 1867 IS

1 supplied in accordance with subsection (b) by

2 employers on each newly hired employee.

3 ‘‘(B) STATES WITH NEW HIRE REPORTING

4 IN EXISTENCE.—A State which has a new hire

5 reporting law in existence on the date of the en6 actment of this section may continue to operate

7 under the State law, but the State must meet

8 the requirements of this section (other than

9 subsection (f)) not later than October 1, 1997.

10 ‘‘(2) DEFINITIONS.—As used in this section:

11 ‘‘(A) EMPLOYEE.—The term ‘employee’—

12 ‘‘(i) means an individual who is an

13 employee within the meaning of chapter 24

14 of the Internal Revenue Code of 1986; and

15 ‘‘(ii) does not include an employee of

16 a Federal or State agency performing in17 telligence or counterintelligence functions,

18 if the head of such agency has determined

19 that reporting pursuant to paragraph (1)

20 with respect to the employee could endan21 ger the safety of the employee or com22 promise an ongoing investigation or intel23 ligence mission.

24 ‘‘(B) EMPLOYER.—
248

•S 1867 IS

1 ‘‘(i) IN GENERAL.—The term ‘em2 ployer’ has the meaning given such term in

3 section 3401(d) of the Internal Revenue

4 Code of 1996 and includes any govern5 mental entity and any labor organization.

6 ‘‘(ii) LABOR ORGANIZATION.—The

7 term ‘labor organization’ shall have the

8 meaning given such term in section 2(5) of

9 the National Labor Relations Act, and in10 cludes any entity (also known as a ‘hiring

11 hall’) which is used by the organization

12 and an employer to carry out requirements

13 described in section 8(f)(3) of such Act of

14 an agreement between the organization

15 and the employer.

16 ‘‘(b) EMPLOYER INFORMATION.—

17 ‘‘(1) REPORTING REQUIREMENT.—

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

19 subparagraphs (B) and (C), each employer shall

20 furnish to the Directory of New Hires of the

21 State in which a newly hired employee works, a

22 report that contains the name, address, and so23 cial security number of the employee, and the

24 name and address of, and identifying number
249

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1 assigned under section 6109 of the Internal

2 Revenue Code of 1986 to, the employer.

3 ‘‘(B) MULTISTATE EMPLOYERS.—An em4 ployer that has employees who are employed in

5 2 or more States and that transmits reports

6 magnetically or electronically may comply with

7 subparagraph (A) by designating 1 State in

8 which such employer has employees to which

9 the employer will transmit the report described

10 in subparagraph (A), and transmitting such re11 port to such State. Any employer that transmits

12 reports pursuant to this subparagraph shall no13 tify the Secretary in writing as to which State

14 such employer designates for the purpose of

15 sending reports.

16 ‘‘(C) FEDERAL GOVERNMENT EMPLOY17 ERS.—Any department, agency, or instrumen18 tality of the United States shall comply with

19 subparagraph (A) by transmitting the report

20 described in subparagraph (A) to the National

21 Directory of New Hires established pursuant to

22 section 453.

23 ‘‘(2) TIMING OF REPORT.—Each State may

24 provide the time within which the report required by
250

•S 1867 IS

1 paragraph (1) shall be made with respect to an em2 ployee, but such report shall be made—

3 ‘‘(A) not later than 20 days after the date

4 the employer hires the employee; or

5 ‘‘(B) in the case of an employer transmit6 ting reports magnetically or electronically, by 2

7 monthly transmissions (if necessary) not less

8 than 12 days nor more than 16 days apart.

9 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re10 port required by subsection (b) shall be made on a W–

11 4 form or, at the option of the employer, an equivalent

12 form, and may be transmitted by 1st class mail, magneti13 cally, or electronically.

14 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

15 EMPLOYERS.—The State shall have the option to set a

16 State civil money penalty which shall be less than—

17 ‘‘(1) $25; or

18 ‘‘(2) $500 if, under State law, the failure is the

19 result of a conspiracy between the employer and the

20 employee to not supply the required report or to

21 supply a false or incomplete report.

22 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor23 mation shall be entered into the data base maintained by

24 the State Directory of New Hires within 5 business days

25 of receipt from an employer pursuant to subsection (b).
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•S 1867 IS

1 ‘‘(f) INFORMATION COMPARISONS.—

2 ‘‘(1) IN GENERAL.—Not later than May 1,

3 1998, an agency designated by the State shall, di4 rectly or by contract, conduct automated compari5 sons of the social security numbers reported by em6 ployers pursuant to subsection (b) and the social se7 curity numbers appearing in the records of the State

8 case registry for cases being enforced under the

9 State plan.

10 ‘‘(2) NOTICE OF MATCH.—When an information

11 comparison conducted under paragraph (1) reveals a

12 match with respect to the social security number of

13 an individual required to provide support under a

14 support order, the State Directory of New Hires

15 shall provide the agency administering the State

16 plan approved under this part of the appropriate

17 State with the name, address, and social security

18 number of the employee to whom the social security

19 number is assigned, and the name of, and identify20 ing number assigned under section 6109 of the In21 ternal Revenue Code of 1986 to the employer.

22 ‘‘(g) TRANSMISSION OF INFORMATION.—

23 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

24 NOTICES TO EMPLOYERS.—Within 2 business days

25 after the date information regarding a newly hired
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•S 1867 IS

1 employee is entered into the State Directory of New

2 Hires, the State agency enforcing the employee’s

3 child support obligation shall transmit a notice to

4 the employer of the employee directing the employer

5 to withhold from the wages of the employee an

6 amount equal to the monthly (or other periodic)

7 child support obligation (including any past due sup8 port obligation) of the employee, unless the employ9 ee’s wages are not subject to withholding pursuant

10 to section 466(b)(3).

11 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC12 TORY OF NEW HIRES.—

13 ‘‘(A) NEW HIRE INFORMATION.—Within 3

14 business days after the date information re15 garding a newly hired employee is entered into

16 the State Directory of New Hires, the State Di17 rectory of New Hires shall furnish the informa18 tion to the National Directory of New Hires.

19 ‘‘(B) WAGE AND UNEMPLOYMENT COM20 PENSATION INFORMATION.—The State Direc21 tory of New Hires shall, on a quarterly basis,

22 furnish to the National Directory of New Hires

23 extracts of the reports required under section

24 303(a)(6) to be made to the Secretary of Labor

25 concerning the wages and unemployment com-
253

•S 1867 IS

1 pensation paid to individuals, by such dates, in

2 such format, and containing such information

3 as the Secretary of Health and Human Services

4 shall specify in regulations.

5 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

6 subsection, the term ‘business day’ means a day on

7 which State offices are open for regular business.

8 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

9 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI10 GORS.—The agency administering the State plan ap11 proved under this part shall use information received

12 pursuant to subsection (f)(2) to locate individuals

13 for purposes of establishing paternity and establish14 ing, modifying, and enforcing child support obliga15 tions.

16 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER17 TAIN PROGRAMS.—A State agency responsible for

18 administering a program specified in section 1137(b)

19 shall have access to information reported by employ20 ers pursuant to subsection (b) of this section for

21 purposes of verifying eligibility for the program.

22 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU23 RITY AND WORKERS’ COMPENSATION.—State agen24 cies operating employment security and workers’

25 compensation programs shall have access to informa-
254

•S 1867 IS

1 tion reported by employers pursuant to subsection

2 (b) for the purposes of administering such pro3 grams.’’.

4 (c) QUARTERLY WAGE REPORTING.—Section

5 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

6 (1) by inserting ‘‘(including State and local gov7 ernmental entities and labor organizations (as de8 fined in section 453A(a)(2)(B)(iii))’’ after ‘‘employ9 ers’’; and

10 (2) by inserting ‘‘, and except that no report

11 shall be filed with respect to an employee of a State

12 or local agency performing intelligence or counter13 intelligence functions, if the head of such agency has

14 determined that filing such a report could endanger

15 the safety of the employee or compromise an ongo16 ing investigation or intelligence mission’’ after

17 ‘‘paragraph (2)’’.

18 SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLD19 ING.

20 (a) MANDATORY INCOME WITHHOLDING.—

21 (1) IN GENERAL.—Section 466(a)(1) (42

22 U.S.C. 666(a)(1)) is amended to read as follows:

23 ‘‘(1)(A) Procedures described in subsection (b)

24 for the withholding from income of amounts payable
255

•S 1867 IS

1 as support in cases subject to enforcement under the

2 State plan.

3 ‘‘(B) Procedures under which the wages of a

4 person with a support obligation imposed by a sup5 port order issued (or modified) in the State before

6 October 1, 1996, if not otherwise subject to with7 holding under subsection (b), shall become subject to

8 withholding as provided in subsection (b) if arrear9 ages occur, without the need for a judicial or admin10 istrative hearing.’’.

11 (2) CONFORMING AMENDMENTS.—

12 (A) Section 466(b) (42 U.S.C. 666(b)) is

13 amended in the matter preceding paragraph

14 (1), by striking ‘‘subsection (a)(1)’’ and insert15 ing ‘‘subsection (a)(1)(A)’’.

16 (B) Section 466(b)(4) (42 U.S.C.

17 666(b)(4)) is amended to read as follows:

18 ‘‘(4)(A) Such withholding must be carried out

19 in full compliance with all procedural due process re20 quirements of the State, and the State must send

21 notice to each noncustodial parent to whom para22 graph (1) applies—

23 ‘‘(i) that the withholding has commenced;

24 and
256

•S 1867 IS

1 ‘‘(ii) of the procedures to follow if the non2 custodial parent desires to contest such with3 holding on the grounds that the withholding or

4 the amount withheld is improper due to a mis5 take of fact.

6 ‘‘(B) The notice under subparagraph (A) of this

7 paragraph shall include the information provided to

8 the employer under paragraph (6)(A).’’.

9 (C) Section 466(b)(5) (42 U.S.C.

10 666(b)(5)) is amended by striking all that fol11 lows ‘‘administered by’’ and inserting ‘‘the

12 State through the State disbursement unit es13 tablished pursuant to section 454B, in accord14 ance with the requirements of section 454B.’’.

15 (D) Section 466(b)(6)(A) (42 U.S.C.

16 666(b)(6)(A)) is amended—

17 (i) in clause (i), by striking ‘‘to the

18 appropriate agency’’ and all that follows

19 and inserting ‘‘to the State disbursement

20 unit within 2 business days after the date

21 the amount would (but for this subsection)

22 have been paid or credited to the employee,

23 for distribution in accordance with this

24 part. The employer shall comply with the

25 procedural rules relating to income with-
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•S 1867 IS

1 holding of the State in which the employee

2 works, regardless of the State where the

3 notice originates.’’.

4 (ii) in clause (ii), by inserting ‘‘be in

5 a standard format prescribed by the Sec6 retary, and’’ after ‘‘shall’’; and

7 (iii) by adding at the end the follow8 ing new clause:

9 ‘‘(iii) As used in this subparagraph, the term

10 ‘business day’ means a day on which State offices

11 are open for regular business.’’.

12 (E) Section 466(b)(6)(D) (42 U.S.C.

13 666(b)(6)(D)) is amended by striking ‘‘any em14 ployer’’ and all that follows and inserting ‘‘any

15 employer who—

16 ‘‘(i) discharges from employment, refuses

17 to employ, or takes disciplinary action against

18 any noncustodial parent subject to wage with19 holding required by this subsection because of

20 the existence of such withholding and the obli21 gations or additional obligations which it im22 poses upon the employer; or

23 ‘‘(ii) fails to withhold support from wages,

24 or to pay such amounts to the State disburse25 ment unit in accordance with this subsection.’’.
258

•S 1867 IS

1 (F) Section 466(b) (42 U.S.C. 666(b)) is

2 amended by adding at the end the following

3 new paragraph:

4 ‘‘(11) Procedures under which the agency ad5 ministering the State plan approved under this part

6 may execute a withholding order without advance

7 notice to the obligor, including issuing the withhold8 ing order through electronic means.’’.

9 (b) CONFORMING AMENDMENT.—Section 466(c) (42

10 U.S.C. 666(c)) is repealed.

11 SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NET12 WORKS.

13 Section 466(a) (42 U.S.C. 666(a)) is amended by

14 adding at the end the following new paragraph:

15 ‘‘(12) LOCATOR INFORMATION FROM INTER16 STATE NETWORKS.—Procedures to ensure that all

17 Federal and State agencies conducting activities

18 under this part have access to any system used by

19 the State to locate an individual for purposes relat20 ing to motor vehicles or law enforcement.’’.

21 SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR

22 SERVICE.

23 (a) EXPANDED AUTHORITY TO LOCATE INDIVID24 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

25 amended—
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•S 1867 IS

1 (1) in subsection (a), by striking all that follows

2 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

3 establishing parentage, establishing, setting the

4 amount of, modifying, or enforcing child support ob5 ligations, or enforcing child custody or visitation or6 ders—

7 ‘‘(1) information on, or facilitating the discov8 ery of, the location of any individual—

9 ‘‘(A) who is under an obligation to pay

10 child support or provide child custody or visita11 tion rights;

12 ‘‘(B) against whom such an obligation is

13 sought;

14 ‘‘(C) to whom such an obligation is owed,

15 including the individual’s social security number (or

16 numbers), most recent address, and the name, ad17 dress, and employer identification number of the in18 dividual’s employer;

19 ‘‘(2) information on the individual’s wages (or

20 other income) from, and benefits of, employment (in21 cluding rights to or enrollment in group health care

22 coverage); and

23 ‘‘(3) information on the type, status, location,

24 and amount of any assets of, or debts owed by or

25 to, any such individual.’’; and
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•S 1867 IS

1 (2) in subsection (b)—

2 (A) in the matter preceding paragraph (1),

3 by striking ‘‘social security’’ and all that follows

4 through ‘‘absent parent’’ and inserting ‘‘infor5 mation described in subsection (a)’’; and

6 (B) in the flush paragraph at the end, by

7 adding the following: ‘‘No information shall be

8 disclosed to any person if the State has notified

9 the Secretary that the State has reasonable evi10 dence of domestic violence or child abuse and

11 the disclosure of such information could be

12 harmful to the custodial parent or the child of

13 such parent. Information received or transmit14 ted pursuant to this section shall be subject to

15 the safeguard provisions contained in section

16 454(26).’’.

17 (b) AUTHORIZED PERSON FOR INFORMATION RE18 GARDING VISITATION RIGHTS.—Section 453(c) (42

19 U.S.C. 653(c)) is amended—

20 (1) in paragraph (1), by striking ‘‘support’’ and

21 inserting ‘‘support or to seek to enforce orders pro22 viding child custody or visitation rights’’; and

23 (2) in paragraph (2), by striking ‘‘, or any

24 agent of such court; and’’ and inserting ‘‘or to issue
261

•S 1867 IS

1 an order against a resident parent for child custody

2 or visitation rights, or any agent of such court;’’.

3 (c) REIMBURSEMENT FOR INFORMATION FROM FED4 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

5 653(e)(2)) is amended in the 4th sentence by inserting

6 ‘‘in an amount which the Secretary determines to be rea7 sonable payment for the information exchange (which

8 amount shall not include payment for the costs of obtain9 ing, compiling, or maintaining the information)’’ before

10 the period.

11 (d) REIMBURSEMENT FOR REPORTS BY STATE

12 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

13 adding at the end the following new subsection:

14 ‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE

15 AGENCIES.—The Secretary may reimburse Federal and

16 State agencies for the costs incurred by such entities in

17 furnishing information requested by the Secretary under

18 this section in an amount which the Secretary determines

19 to be reasonable payment for the information exchange

20 (which amount shall not include payment for the costs of

21 obtaining, compiling, or maintaining the information).’’.

22 (e) CONFORMING AMENDMENTS.—

23 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

24 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

25 653(b), 663(a), 663(e), and 663(f)) are each amend-
262

•S 1867 IS

1 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

2 place such term appears.

3 (2) Section 453 (42 U.S.C. 653) is amended in

4 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR5 ENT’’.

6 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

7 653), as amended by subsection (d) of this section, is

8 amended by adding at the end the following new sub9 sections:

10 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

11 ORDERS.—

12 ‘‘(1) IN GENERAL.—Not later than October 1,

13 1998, in order to assist States in administering pro14 grams under State plans approved under this part

15 and programs funded under part A, and for the

16 other purposes specified in this section, the Sec17 retary shall establish and maintain in the Federal

18 Parent Locator Service an automated registry

19 (which shall be known as the ‘Federal Case Registry

20 of Child Support Orders’), which shall contain ab21 stracts of support orders and other information de22 scribed in paragraph (2) with respect to each case

23 in each State case registry maintained pursuant to

24 section 454A(e), as furnished (and regularly up-
263

•S 1867 IS

1 dated), pursuant to section 454A(f), by State agen2 cies administering programs under this part.

3 ‘‘(2) CASE INFORMATION.—The information re4 ferred to in paragraph (1) with respect to a case

5 shall be such information as the Secretary may

6 specify in regulations (including the names, social

7 security numbers or other uniform identification

8 numbers, and State case identification numbers) to

9 identify the individuals who owe or are owed support

10 (or with respect to or on behalf of whom support ob11 ligations are sought to be established), and the State

12 or States which have the case.

13 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

14 ‘‘(1) IN GENERAL.—In order to assist States in

15 administering programs under State plans approved

16 under this part and programs funded under part A,

17 and for the other purposes specified in this section,

18 the Secretary shall, not later than October 1, 1996,

19 establish and maintain in the Federal Parent Loca20 tor Service an automated directory to be known as

21 the National Directory of New Hires, which shall

22 contain the information supplied pursuant to section

23 453A(g)(2).

24 ‘‘(2) ENTRY OF DATA.—Information shall be

25 entered into the data base maintained by the Na-
264

•S 1867 IS

1 tional Directory of New Hires within 2 business

2 days of receipt pursuant to section 453A(g)(2).

3 ‘‘(3) ADMINISTRATION OF FEDERAL TAX

4 LAWS.—The Secretary of the Treasury shall have

5 access to the information in the National Directory

6 of New Hires for purposes of administering section

7 32 of the Internal Revenue Code of 1986, or the ad8 vance payment of the earned income tax credit

9 under section 3507 of such Code, and verifying a

10 claim with respect to employment in a tax return.

11 ‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The

12 Secretary shall maintain within the National Direc13 tory of New Hires a list of multistate employers that

14 report information regarding newly hired employees

15 pursuant to section 453A(b)(1)(B), and the State

16 which each such employer has designated to receive

17 such information.

18 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS19 CLOSURES.—

20 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD21 MINISTRATION.—

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

23 transmit information on individuals and em24 ployers maintained under this section to the So25 cial Security Administration to the extent nec-
265

•S 1867 IS

1 essary for verification in accordance with sub2 paragraph (B).

3 ‘‘(B) VERIFICATION BY SSA.—The Social

4 Security Administration shall verify the accu5 racy of, correct, or supply to the extent pos6 sible, and report to the Secretary, the following

7 information supplied by the Secretary pursuant

8 to subparagraph (A):

9 ‘‘(i) The name, social security num10 ber, and birth date of each such individual.

11 ‘‘(ii) The employer identification num12 ber of each such employer.

13 ‘‘(2) INFORMATION COMPARISONS.—For the

14 purpose of locating individuals in a paternity estab15 lishment case or a case involving the establishment,

16 modification, or enforcement of a support order, the

17 Secretary shall—

18 ‘‘(A) compare information in the National

19 Directory of New Hires against information in

20 the support case abstracts in the Federal Case

21 Registry of Child Support Orders not less often

22 than every 2 business days; and

23 ‘‘(B) within 2 such days after such a com24 parison reveals a match with respect to an indi-
266

•S 1867 IS

1 vidual, report the information to the State

2 agency responsible for the case.

3 ‘‘(3) INFORMATION COMPARISONS AND DISCLO4 SURES OF INFORMATION IN ALL REGISTRIES FOR

5 TITLE IV PROGRAM PURPOSES.—To the extent and

6 with the frequency that the Secretary determines to

7 be effective in assisting States to carry out their re8 sponsibilities under programs operated under this

9 part and programs funded under part A, the Sec10 retary shall—

11 ‘‘(A) compare the information in each com12 ponent of the Federal Parent Locator Service

13 maintained under this section against the infor14 mation in each other such component (other

15 than the comparison required by paragraph

16 (2)), and report instances in which such a com17 parison reveals a match with respect to an indi18 vidual to State agencies operating such pro19 grams; and

20 ‘‘(B) disclose information in such registries

21 to such State agencies.

22 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

23 TO THE SOCIAL SECURITY ADMINISTRATION.—The

24 National Directory of New Hires shall provide the

25 Commissioner of Social Security with all information
267

•S 1867 IS

1 in the National Directory, which shall be used to de2 termine the accuracy of payments under the supple3 mental security income program under title XVI and

4 in connection with benefits under title II.

5 ‘‘(5) RESEARCH.—The Secretary may provide

6 access to information reported by employers pursu7 ant to section 453A(b) for research purposes found

8 by the Secretary to be likely to contribute to achiev9 ing the purposes of part A or this part, but without

10 personal identifiers.

11 ‘‘(k) FEES.—

12 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

13 shall reimburse the Commissioner of Social Security,

14 at a rate negotiated between the Secretary and the

15 Commissioner, for the costs incurred by the Com16 missioner in performing the verification services de17 scribed in subsection (j).

18 ‘‘(2) FOR INFORMATION FROM STATE DIREC19 TORIES OF NEW HIRES.—The Secretary shall reim20 burse costs incurred by State directories of new

21 hires in furnishing information as required by sub22 section (j)(3), at rates which the Secretary deter23 mines to be reasonable (which rates shall not include

24 payment for the costs of obtaining, compiling, or

25 maintaining such information).
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•S 1867 IS

1 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

2 AND FEDERAL AGENCIES.—A State or Federal agen3 cy that receives information from the Secretary pur4 suant to this section shall reimburse the Secretary

5 for costs incurred by the Secretary in furnishing the

6 information, at rates which the Secretary determines

7 to be reasonable (which rates shall include payment

8 for the costs of obtaining, verifying, maintaining,

9 and comparing the information).

10 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In11 formation in the Federal Parent Locator Service, and in12 formation resulting from comparisons using such informa13 tion, shall not be used or disclosed except as expressly pro14 vided in this section, subject to section 6103 of the Inter15 nal Revenue Code of 1986.

16 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

17 The Secretary shall establish and implement safeguards

18 with respect to the entities established under this section

19 designed to—

20 ‘‘(1) ensure the accuracy and completeness of

21 information in the Federal Parent Locator Service;

22 and

23 ‘‘(2) restrict access to confidential information

24 in the Federal Parent Locator Service to authorized
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•S 1867 IS

1 persons, and restrict use of such information to au2 thorized purposes.

3 ‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each

4 department, agency, and instrumentality of the United

5 States shall on a quarterly basis report to the Federal

6 Parent Locator Service the name and social security num7 ber of each employee and the wages paid to the employee

8 during the previous quarter, except that such a report

9 shall not be filed with respect to an employee of a depart10 ment, agency, or instrumentality performing intelligence

11 or counterintelligence functions, if the head of such de12 partment, agency, or instrumentality has determined that

13 filing such a report could endanger the safety of the em14 ployee or compromise an ongoing investigation or intel15 ligence mission.’’.

16 (g) CONFORMING AMENDMENTS.—

17 (1) TO PART D OF TITLE IV OF THE SOCIAL SE18 CURITY ACT.—

19 (A) Section 454(8)(B) (42 U.S.C.

20 654(8)(B)) is amended to read as follows:

21 ‘‘(B) the Federal Parent Locator Service

22 established under section 453;’’.

23 (B) Section 454(13) (42 U.S.C.654(13)) is

24 amended by inserting ‘‘and provide that infor25 mation requests by parents who are residents of
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•S 1867 IS

1 other States be treated with the same priority

2 as requests by parents who are residents of the

3 State submitting the plan’’ before the semi4 colon.

5 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

6 Section 3304(a)(16) of the Internal Revenue Code of

7 1986 is amended—

8 (A) by striking ‘‘Secretary of Health, Edu9 cation, and Welfare’’ each place such term ap10 pears and inserting ‘‘Secretary of Health and

11 Human Services’’;

12 (B) in subparagraph (B), by striking

13 ‘‘such information’’ and all that follows and in14 serting ‘‘information furnished under subpara15 graph (A) or (B) is used only for the purposes

16 authorized under such subparagraph;’’;

17 (C) by striking ‘‘and’’ at the end of sub18 paragraph (A);

19 (D) by redesignating subparagraph (B) as

20 subparagraph (C); and

21 (E) by inserting after subparagraph (A)

22 the following new subparagraph:

23 ‘‘(B) wage and unemployment compensa24 tion information contained in the records of

25 such agency shall be furnished to the Secretary
271

•S 1867 IS

1 of Health and Human Services (in accordance

2 with regulations promulgated by such Sec3 retary) as necessary for the purposes of the Na4 tional Directory of New Hires established under

5 section 453(i) of the Social Security Act, and’’.

6 (3) TO STATE GRANT PROGRAM UNDER TITLE

7 III OF THE SOCIAL SECURITY ACT.—Subsection (h)

8 of section 303 (42 U.S.C. 503) is amended to read

9 as follows:

10 ‘‘(h)(1) The State agency charged with the adminis11 tration of the State law shall, on a reimbursable basis—

12 ‘‘(A) disclose quarterly, to the Secretary of

13 Health and Human Services, wage and claim infor14 mation, as required pursuant to section 453(i)(1),

15 contained in the records of such agency;

16 ‘‘(B) ensure that information provided pursuant

17 to subparagraph (A) meets such standards relating

18 to correctness and verification as the Secretary of

19 Health and Human Services, with the concurrence

20 of the Secretary of Labor, may find necessary; and

21 ‘‘(C) establish such safeguards as the Secretary

22 of Labor determines are necessary to insure that in23 formation disclosed under subparagraph (A) is used

24 only for purposes of section 453(i)(1) in carrying out
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•S 1867 IS

1 the child support enforcement program under title

2 IV.

3 ‘‘(2) Whenever the Secretary of Labor, after reason4 able notice and opportunity for hearing to the State agen5 cy charged with the administration of the State law, finds

6 that there is a failure to comply substantially with the re7 quirements of paragraph (1), the Secretary of Labor shall

8 notify such State agency that further payments will not

9 be made to the State until the Secretary of Labor is satis10 fied that there is no longer any such failure. Until the

11 Secretary of Labor is so satisfied, the Secretary shall

12 make no future certification to the Secretary of the Treas13 ury with respect to the State.

14 ‘‘(3) For purposes of this subsection—

15 ‘‘(A) the term ‘wage information’ means infor16 mation regarding wages paid to an individual, the

17 social security account number of such individual,

18 and the name, address, State, and the Federal em19 ployer identification number of the employer paying

20 such wages to such individual; and

21 ‘‘(B) the term ‘claim information’ means infor22 mation regarding whether an individual is receiving,

23 has received, or has made application for, unemploy24 ment compensation, the amount of any such com25 pensation being received (or to be received by such
273

•S 1867 IS

1 individual), and the individual’s current (or most re2 cent) home address.’’.

3 (4) DISCLOSURE OF CERTAIN INFORMATION TO

4 AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN5 CIES.—

6 (A) IN GENERAL.—Paragraph (6) of sec7 tion 6103(l) of the Internal Revenue Code of

8 1986 (relating to disclosure of return informa9 tion to Federal, State, and local child support

10 enforcement agencies) is amended by redesig11 nating subparagraph (B) as subparagraph (C)

12 and by inserting after subparagraph (A) the fol13 lowing new subparagraph:

14 ‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—

15 The following information disclosed to any child

16 support enforcement agency under subpara17 graph (A) with respect to any individual with

18 respect to whom child support obligations are

19 sought to be established or enforced may be dis20 closed by such agency to any agent of such

21 agency which is under contract with such agen22 cy to carry out the purposes described in sub23 paragraph (C):
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1 ‘‘(i) The address and social security

2 account number (or numbers) of such indi3 vidual.

4 ‘‘(ii) The amount of any reduction

5 under section 6402(c) (relating to offset of

6 past-due support against overpayments) in

7 any overpayment otherwise payable to such

8 individual.’’

9 (B) CONFORMING AMENDMENTS.—

10 (i) Paragraph (3) of section 6103(a)

11 of such Code is amended by striking

12 ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or

13 (12) of subsection (l)’’.

14 (ii) Subparagraph (C) of section

15 6103(l)(6) of such Code, as redesignated

16 by subsection (a), is amended to read as

17 follows:

18 ‘‘(C) RESTRICTION ON DISCLOSURE.—In19 formation may be disclosed under this para20 graph only for purposes of, and to the extent

21 necessary in, establishing and collecting child

22 support obligations from, and locating, individ23 uals owing such obligations.’’

24 (iii) The material following subpara25 graph (F) of section 6103(p)(4) of such
275

•S 1867 IS

1 Code is amended by striking ‘‘subsection

2 (l)(12)(B)’’ and inserting ‘‘paragraph

3 (6)(A) or (12)(B) of subsection (l)’’.

4 SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY

5 NUMBERS FOR USE IN CHILD SUPPORT EN6 FORCEMENT.

7 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

8 U.S.C. 666(a)), as amended by section 315 of this Act,

9 is amended by adding at the end the following new para10 graph:

11 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM12 BERS IN CERTAIN FAMILY MATTERS.—Procedures

13 requiring that the social security number of—

14 ‘‘(A) any applicant for a professional li15 cense, commercial driver’s license, occupational

16 license, or marriage license be recorded on the

17 application;

18 ‘‘(B) any individual who is subject to a di19 vorce decree, support order, or paternity deter20 mination or acknowledgment be placed in the

21 records relating to the matter; and

22 ‘‘(C) any individual who has died be placed

23 in the records relating to the death and be re24 corded on the death certificate.
276

•S 1867 IS

1 For purposes of subparagraph (A), if a State allows

2 the use of a number other than the social security

3 number, the State shall so advise any applicants.’’.

4 (b) CONFORMING AMENDMENTS.—Section

5 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

6 section 321(a)(9) of the Social Security Independence and

7 Program Improvements Act of 1994, is amended—

8 (1) in clause (i), by striking ‘‘may require’’ and

9 inserting ‘‘shall require’’;

10 (2) in clause (ii), by inserting after the 1st sen11 tence the following: ‘‘In the administration of any

12 law involving the issuance of a marriage certificate

13 or license, each State shall require each party named

14 in the certificate or license to furnish to the State

15 (or political subdivision thereof), or any State agen16 cy having administrative responsibility for the law

17 involved, the social security number of the party.’’;

18 (3) in clause (ii), by inserting ‘‘or marriage cer19 tificate’’ after ‘‘Such numbers shall not be recorded

20 on the birth certificate’’.

21 (4) in clause (vi), by striking ‘‘may’’ and insert22 ing ‘‘shall’’; and

23 (5) by adding at the end the following new

24 clauses:
277

•S 1867 IS

1 ‘‘(x) An agency of a State (or a politi2 cal subdivision thereof) charged with the

3 administration of any law concerning the

4 issuance or renewal of a license, certificate,

5 permit, or other authorization to engage in

6 a profession, an occupation, or a commer7 cial activity shall require all applicants for

8 issuance or renewal of the license, certifi9 cate, permit, or other authorization to pro10 vide the applicant’s social security number

11 to the agency for the purpose of admin12 istering such laws, and for the purpose of

13 responding to requests for information

14 from an agency operating pursuant to part

15 D of title IV.

16 ‘‘(xi) All divorce decrees, support or17 ders, and paternity determinations issued,

18 and all paternity acknowledgments made,

19 in each State shall include the social secu20 rity number of each party to the decree,

21 order, determination, or acknowledgment

22 in the records relating to the matter, for

23 the purpose of responding to requests for

24 information from an agency operating pur25 suant to part D of title IV.’’.
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•S 1867 IS

1 Subtitle C—Streamlining and

2 Uniformity of Procedures

3 SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

4 Section 466 (42 U.S.C. 666) is amended by adding

5 at the end the following new subsection:

6 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

7 ACT.—

8 ‘‘(1) ENACTMENT AND USE.—In order to sat9 isfy section 454(20)(A), on and after January 1,

10 1998, each State must have in effect the Uniform

11 Interstate Family Support Act, as approved by the

12 American Bar Association on February 9, 1993, to13 gether with any amendments officially adopted be14 fore January 1, 1998, by the National Conference of

15 Commissioners on Uniform State Laws.

16 ‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL

17 RULES OF STATE WHERE EMPLOYEE WORKS.—The

18 State law enacted pursuant to paragraph (1) shall

19 provide that an employer that receives an income

20 withholding order or notice pursuant to section 501

21 of the Uniform Interstate Family Support Act follow

22 the procedural rules that apply with respect to such

23 order or notice under the laws of the State in which

24 the obligor works.’’.
279

•S 1867 IS

1 SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT

2 FOR CHILD SUPPORT ORDERS.

3 Section 1738B of title 28, United States Code, is

4 amended—

5 (1) in subsection (a)(2), by striking ‘‘subsection

6 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

7 (2) in subsection (b), by inserting after the 2d

8 undesignated paragraph the following:

9 ‘‘ ‘child’s home State’ means the State in which

10 a child lived with a parent or a person acting as par11 ent for at least 6 consecutive months immediately

12 preceding the time of filing of a petition or com13 parable pleading for support and, if a child is less

14 than 6 months old, the State in which the child lived

15 from birth with any of them. A period of temporary

16 absence of any of them is counted as part of the 6-

17 month period.’’;

18 (3) in subsection (c), by inserting ‘‘by a court

19 of a State’’ before ‘‘is made’’;

20 (4) in subsection (c)(1), by inserting ‘‘and sub21 sections (e), (f), and (g)’’ after ‘‘located’’;

22 (5) in subsection (d)—

23 (A) by inserting ‘‘individual’’ before ‘‘con24 testant’’; and

25 (B) by striking ‘‘subsection (e)’’ and in26 serting ‘‘subsections (e) and (f)’’;
280

•S 1867 IS

1 (6) in subsection (e), by striking ‘‘make a modi2 fication of a child support order with respect to a

3 child that is made’’ and inserting ‘‘modify a child

4 support order issued’’;

5 (7) in subsection (e)(1), by inserting ‘‘pursuant

6 to subsection (i)’’ before the semicolon;

7 (8) in subsection (e)(2)—

8 (A) by inserting ‘‘individual’’ before ‘‘con9 testant’’ each place such term appears; and

10 (B) by striking ‘‘to that court’s making the

11 modification and assuming’’ and inserting ‘‘with

12 the State of continuing, exclusive jurisdiction

13 for a court of another State to modify the order

14 and assume’’;

15 (9) by redesignating subsections (f) and (g) as

16 subsections (g) and (h), respectively;

17 (10) by inserting after subsection (e) the follow18 ing new subsection:

19 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

20 If 1 or more child support orders have been issued in this

21 or another State with regard to an obligor and a child,

22 a court shall apply the following rules in determining

23 which order to recognize for purposes of continuing, exclu24 sive jurisdiction and enforcement:
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•S 1867 IS

1 ‘‘(1) If only 1 court has issued a child support

2 order, the order of that court must be recognized.

3 ‘‘(2) If 2 or more courts have issued child sup4 port orders for the same obligor and child, and only

5 1 of the courts would have continuing, exclusive ju6 risdiction under this section, the order of that court

7 must be recognized.

8 ‘‘(3) If 2 or more courts have issued child sup9 port orders for the same obligor and child, and more

10 than 1 of the courts would have continuing, exclusive

11 jurisdiction under this section, an order issued by a

12 court in the current home State of the child must

13 be recognized, but if an order has not been issued

14 in the current home State of the child, the order

15 most recently issued must be recognized.

16 ‘‘(4) If 2 or more courts have issued child sup17 port orders for the same obligor and child, and none

18 of the courts would have continuing, exclusive juris19 diction under this section, a court may issue a child

20 support order, which must be recognized.

21 ‘‘(5) The court that has issued an order recog22 nized under this subsection is the court having con23 tinuing, exclusive jurisdiction.’’;

24 (11) in subsection (g) (as so redesignated)—
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•S 1867 IS

1 (A) by striking ‘‘PRIOR’’ and inserting

2 ‘‘MODIFIED’’; and

3 (B) by striking ‘‘subsection (e)’’ and in4 serting ‘‘subsections (e) and (f)’’;

5 (12) in subsection (h) (as so redesignated)—

6 (A) in paragraph (2), by inserting ‘‘includ7 ing the duration of current payments and other

8 obligations of support’’ before the comma; and

9 (B) in paragraph (3), by inserting ‘‘arrears

10 under’’ after ‘‘enforce’’; and

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

12 subsection:

13 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

14 no individual contestant or child residing in the issuing

15 State, the party or support enforcement agency seeking

16 to modify, or to modify and enforce, a child support order

17 issued in another State shall register that order in a State

18 with jurisdiction over the nonmovant for the purpose of

19 modification.’’.

20 SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

21 CASES.

22 Section 466(a) (42 U.S.C. 666(a)), as amended by

23 sections 315 and 317(a) of this Act, is amended by adding

24 at the end the following new paragraph:
283

•S 1867 IS

1 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

2 INTERSTATE CASES.—Procedures under which—

3 ‘‘(A)(i) the State shall respond within 5

4 business days to a request made by another

5 State to enforce a support order; and

6 ‘‘(ii) the term ‘business day’ means a day

7 on which State offices are open for regular

8 business;

9 ‘‘(B) the State may, by electronic or other

10 means, transmit to another State a request for

11 assistance in a case involving the enforcement

12 of a support order, which request—

13 ‘‘(i) shall include such information as

14 will enable the State to which the request

15 is transmitted to compare the information

16 about the case to the information in the

17 data bases of the State; and

18 ‘‘(ii) shall constitute a certification by

19 the requesting State—

20 ‘‘(I) of the amount of support

21 under the order the payment of which

22 is in arrears; and

23 ‘‘(II) that the requesting State

24 has complied with all procedural due
284

•S 1867 IS

1 process requirements applicable to the

2 case;

3 ‘‘(C) if the State provides assistance to an4 other State pursuant to this paragraph with re5 spect to a case, neither State shall consider the

6 case to be transferred to the caseload of such

7 other State; and

8 ‘‘(D) the State shall maintain records of—

9 ‘‘(i) the number of such requests for

10 assistance received by the State;

11 ‘‘(ii) the number of cases for which

12 the State collected support in response to

13 such a request; and

14 ‘‘(iii) the amount of such collected

15 support.’’.

16 SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

17 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

18 652(a)) is amended—

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

20 (9);

21 (2) by striking the period at the end of para22 graph (10) and inserting ‘‘; and’’; and

23 (3) by adding at the end the following new

24 paragraph:
285

•S 1867 IS

1 ‘‘(11) not later than June 30, 1996, after con2 sulting with the State directors of programs under

3 this part, promulgate forms to be used by States in

4 interstate cases for—

5 ‘‘(A) collection of child support through in6 come withholding;

7 ‘‘(B) imposition of liens; and

8 ‘‘(C) administrative subpoenas.’’.

9 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

10 654(9)) is amended—

11 (1) by striking ‘‘and’’ at the end of subpara12 graph (C);

13 (2) by inserting ‘‘and’’ at the end of subpara14 graph (D); and

15 (3) by adding at the end the following new sub16 paragraph:

17 ‘‘(E) no later than October 1, 1996, in

18 using the forms promulgated pursuant to sec19 tion 452(a)(11) for income withholding, imposi20 tion of liens, and issuance of administrative

21 subpoenas in interstate child support cases;’’.
286

•S 1867 IS

1 SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCE2 DURES.

3 (a) STATE LAW REQUIREMENTS.—Section 466 (42

4 U.S.C. 666), as amended by section 314 of this Act, is

5 amended—

6 (1) in subsection (a)(2), by striking the first

7 sentence and inserting the following: ‘‘Expedited ad8 ministrative and judicial procedures (including the

9 procedures specified in subsection (c)) for establish10 ing paternity and for establishing, modifying, and

11 enforcing support obligations.’’; and

12 (2) by inserting after subsection (b) the follow13 ing new subsection:

14 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

15 specified in this subsection are the following:

16 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN17 CY.—Procedures which give the State agency the au18 thority to take the following actions relating to es19 tablishment or enforcement of support orders, with20 out the necessity of obtaining an order from any

21 other judicial or administrative tribunal, and to rec22 ognize and enforce the authority of State agencies of

23 other States) to take the following actions:

24 ‘‘(A) GENETIC TESTING.—To order genetic

25 testing for the purpose of paternity establish26 ment as provided in section 466(a)(5).
287

•S 1867 IS

1 ‘‘(B) FINANCIAL OR OTHER INFORMA2 TION.—To subpoena any financial or other in3 formation needed to establish, modify, or en4 force a support order, and to impose penalties

5 for failure to respond to such a subpoena.

6 ‘‘(C) RESPONSE TO STATE AGENCY RE7 QUEST.—To require all entities in the State (in8 cluding for-profit, nonprofit, and governmental

9 employers) to provide promptly, in response to

10 a request by the State agency of that or any

11 other State administering a program under this

12 part, information on the employment, com13 pensation, and benefits of any individual em14 ployed by such entity as an employee or con15 tractor, and to sanction failure to respond to

16 any such request.

17 ‘‘(D) ACCESS TO CERTAIN RECORDS.—To

18 obtain access, subject to safeguards on privacy

19 and information security, to the following

20 records (including automated access, in the case

21 of records maintained in automated data

22 bases):

23 ‘‘(i) Records of other State and local

24 government agencies, including—
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•S 1867 IS

1 ‘‘(I) vital statistics (including

2 records of marriage, birth, and di3 vorce);

4 ‘‘(II) State and local tax and rev5 enue records (including information

6 on residence address, employer, in7 come and assets);

8 ‘‘(III) records concerning real

9 and titled personal property;

10 ‘‘(IV) records of occupational and

11 professional licenses, and records con12 cerning the ownership and control of

13 corporations, partnerships, and other

14 business entities;

15 ‘‘(V) employment security

16 records;

17 ‘‘(VI) records of agencies admin18 istering public assistance programs;

19 ‘‘(VII) records of the motor vehi20 cle department; and

21 ‘‘(VIII) corrections records.

22 ‘‘(ii) Certain records held by private

23 entities, including—
289

•S 1867 IS

1 ‘‘(I) customer records of public

2 utilities and cable television compa3 nies; and

4 ‘‘(II) information (including in5 formation on assets and liabilities) on

6 individuals who owe or are owed sup7 port (or against or with respect to

8 whom a support obligation is sought)

9 held by financial institutions (subject

10 to limitations on liability of such enti11 ties arising from affording such ac12 cess), as provided pursuant to agree13 ments described in subsection (a)(18).

14 ‘‘(E) CHANGE IN PAYEE.—In cases in

15 which support is subject to an assignment in

16 order to comply with a requirement imposed

17 pursuant to part A or section 1912, or to a re18 quirement to pay through the State disburse19 ment unit established pursuant to section

20 454B, upon providing notice to obligor and obli21 gee, to direct the obligor or other payor to

22 change the payee to the appropriate government

23 entity.
290

•S 1867 IS

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) INCREASE MONTHLY PAYMENTS.—

24 For the purpose of securing overdue support, to

25 increase the amount of monthly support pay-
291

•S 1867 IS

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-
292

•S 1867 IS

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
293

•S 1867 IS

1 for any additional filing by the petitioner,

2 or service of process upon the respondent,

3 to 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 344(a)(2) and as
294

•S 1867 IS

1 amended by sections 311 and 312(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

9 Establishment

10 SEC. 331. STATE LAWS CONCERNING PATERNITY ESTAB11 LISHMENT.

12 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

13 U.S.C. 666(a)(5)) is amended to read as follows:

14 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES15 TABLISHMENT.—

16 ‘‘(A) ESTABLISHMENT PROCESS AVAIL17 ABLE FROM BIRTH UNTIL AGE 18.—

18 ‘‘(i) Procedures which permit the es19 tablishment of the paternity of a child at

20 any time before the child attains 18 years

21 of age.

22 ‘‘(ii) As of August 16, 1984, clause (i)

23 shall also apply to a child for whom pater24 nity has not been established or for whom

25 a paternity action was brought but dis-
295

•S 1867 IS

1 missed because a statute of limitations of

2 less than 18 years was then in effect in the

3 State.

4 ‘‘(B) PROCEDURES CONCERNING GENETIC

5 TESTING.—

6 ‘‘(i) GENETIC TESTING REQUIRED IN

7 CERTAIN CONTESTED CASES.—Procedures

8 under which the State is required, in a

9 contested paternity case (unless otherwise

10 barred by State law) to require the child

11 and all other parties (other than individ12 uals found under section 454(29) to have

13 good cause for refusing to cooperate) to

14 submit to genetic tests upon the request of

15 any such party, if the request is supported

16 by a sworn statement by the party—

17 ‘‘(I) alleging paternity, and set18 ting forth facts establishing a reason19 able possibility of the requisite sexual

20 contact between the parties; or

21 ‘‘(II) denying paternity, and set22 ting forth facts establishing a reason23 able possibility of the nonexistence of

24 sexual contact between the parties.
296

•S 1867 IS

1 ‘‘(ii) OTHER REQUIREMENTS.—Proce2 dures which require the State agency, in

3 any case in which the agency orders ge4 netic testing—

5 ‘‘(I) to pay costs of such tests,

6 subject to recoupment (if the State so

7 elects) from the alleged father if pa8 ternity is established; and

9 ‘‘(II) to obtain additional testing

10 in any case if an original test result is

11 contested, upon request and advance

12 payment by the contestant.

13 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL14 EDGMENT.—

15 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce16 dures for a simple civil process for volun17 tarily acknowledging paternity under which

18 the State must provide that, before a

19 mother and a putative father can sign an

20 acknowledgment of paternity, the mother

21 and the putative father must be given no22 tice, orally and in writing, of the alter23 natives to, the legal consequences of, and

24 the rights (including, if 1 parent is a

25 minor, any rights afforded due to minority
297

•S 1867 IS

1 status) and responsibilities that arise from,

2 signing the acknowledgment.

3 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

4 Such procedures must include a hospital5 based program for the voluntary acknowl6 edgment of paternity focusing on the pe7 riod immediately before or after the birth

8 of a child, subject to such good cause ex9 ceptions, taking into account the best in10 terests of the child, as the State may es11 tablish.

12 ‘‘(iii) PATERNITY ESTABLISHMENT

13 SERVICES.—

14 ‘‘(I) STATE-OFFERED SERV15 ICES.—Such procedures must require

16 the State agency responsible for main17 taining birth records to offer vol18 untary paternity establishment serv19 ices.

20 ‘‘(II) REGULATIONS.—

21 ‘‘(aa) SERVICES OFFERED

22 BY HOSPITALS AND BIRTH

23 RECORD AGENCIES.—The Sec24 retary shall prescribe regulations

25 governing voluntary paternity es-
298

•S 1867 IS

1 tablishment services offered by

2 hospitals and birth record agen3 cies.

4 ‘‘(bb) SERVICES OFFERED

5 BY OTHER ENTITIES.—The Sec6 retary shall prescribe regulations

7 specifying the types of other enti8 ties that may offer voluntary pa9 ternity establishment services,

10 and governing the provision of

11 such services, which shall include

12 a requirement that such an entity

13 must use the same notice provi14 sions used by, use the same ma15 terials used by, provide the per16 sonnel providing such services

17 with the same training provided

18 by, and evaluate the provision of

19 such services in the same manner

20 as the provision of such services

21 is evaluated by, voluntary pater22 nity establishment programs of

23 hospitals and birth record agen24 cies.
299

•S 1867 IS

1 ‘‘(iv) USE OF PATERNITY ACKNOWL2 EDGMENT AFFIDAVIT.—Such procedures

3 must require the State to develop and use

4 an affidavit for the voluntary acknowledg5 ment of paternity which includes the mini6 mum requirements of the affidavit devel7 oped by the Secretary under section

8 452(a)(7) for the voluntary acknowledg9 ment of paternity, and to give full faith

10 and credit to such an affidavit signed in

11 any other State according to its proce12 dures.

13 ‘‘(D) STATUS OF SIGNED PATERNITY AC14 KNOWLEDGMENT.—

15 ‘‘(i) INCLUSION IN BIRTH RECORDS.—

16 Procedures under which the name of the

17 father shall be included on the record of

18 birth of the child of unmarried parents

19 only if—

20 ‘‘(I) the father and mother have

21 signed a voluntary acknowledgment of

22 paternity; or

23 ‘‘(II) a court or an administrative

24 agency of competent jurisdiction has

25 issued an adjudication of paternity.
300

•S 1867 IS

1 Nothing in this clause shall preclude a

2 State agency from obtaining an admission

3 of paternity from the father for submission

4 in a judicial or administrative proceeding,

5 or prohibit the issuance of an order in a

6 judicial or administrative proceeding which

7 bases a legal finding of paternity on an ad8 mission of paternity by the father and any

9 other additional showing required by State

10 law.

11 ‘‘(ii) LEGAL FINDING OF PATER12 NITY.—Procedures under which a signed

13 voluntary acknowledgment of paternity is

14 considered a legal finding of paternity,

15 subject to the right of any signatory to re16 scind the acknowledgment within the ear17 lier of—

18 ‘‘(I) 60 days; or

19 ‘‘(II) the date of an administra20 tive or judicial proceeding relating to

21 the child (including a proceeding to

22 establish a support order) in which

23 the signatory is a party.

24 ‘‘(iii) CONTEST.—Procedures under

25 which, after the 60-day period referred to
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1 in clause (ii), a signed voluntary acknowl2 edgment of paternity may be challenged in

3 court only on the basis of fraud, duress,

4 or material mistake of fact, with the bur5 den of proof upon the challenger, and

6 under which the legal responsibilities (in7 cluding child support obligations) of any

8 signatory arising from the acknowledgment

9 may not be suspended during the chal10 lenge, except for good cause shown.

11 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI12 CATION PROCEEDINGS.—Procedures under

13 which judicial or administrative proceedings are

14 not required or permitted to ratify an unchal15 lenged acknowledgment of paternity.

16 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

17 RESULTS.—Procedures—

18 ‘‘(i) requiring the admission into evi19 dence, for purposes of establishing pater20 nity, of the results of any genetic test that

21 is—

22 ‘‘(I) of a type generally acknowl23 edged as reliable by accreditation bod24 ies designated by the Secretary; and
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1 ‘‘(II) performed by a laboratory

2 approved by such an accreditation

3 body;

4 ‘‘(ii) requiring an objection to genetic

5 testing results to be made in writing not

6 later than a specified number of days be7 fore any hearing at which the results may

8 be introduced into evidence (or, at State

9 option, not later than a specified number

10 of days after receipt of the results); and

11 ‘‘(iii) making the test results admissi12 ble as evidence of paternity without the

13 need for foundation testimony or other

14 proof of authenticity or accuracy, unless

15 objection is made.

16 ‘‘(G) PRESUMPTION OF PATERNITY IN

17 CERTAIN CASES.—Procedures which create a re18 buttable or, at the option of the State, conclu19 sive presumption of paternity upon genetic test20 ing results indicating a threshold probability

21 that the alleged father is the father of the child.

22 ‘‘(H) DEFAULT ORDERS.—Procedures re23 quiring a default order to be entered in a pater24 nity case upon a showing of service of process
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1 on the defendant and any additional showing

2 required by State law.

3 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce4 dures providing that the parties to an action to

5 establish paternity are not entitled to a trial by

6 jury.

7 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

8 ON PROBABLE PATERNITY IN CONTESTED

9 CASES.—Procedures which require that a tem10 porary order be issued, upon motion by a party,

11 requiring the provision of child support pending

12 an administrative or judicial determination of

13 parentage, if there is clear and convincing evi14 dence of paternity (on the basis of genetic tests

15 or other evidence).

16 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

17 PATERNITY ESTABLISHMENT COSTS.—Proce18 dures under which bills for pregnancy, child19 birth, and genetic testing are admissible as evi20 dence without requiring third-party foundation

21 testimony, and shall constitute prima facie evi22 dence of amounts incurred for such services or

23 for testing on behalf of the child.

24 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

25 Procedures ensuring that the putative father
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1 has a reasonable opportunity to initiate a pater2 nity action.

3 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

4 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

5 RECORDS.—Procedures under which voluntary

6 acknowledgments and adjudications of paternity

7 by judicial or administrative processes are filed

8 with the State registry of birth records for com9 parison with information in the State case reg10 istry.’’.

11 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI12 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

13 amended by inserting ‘‘, and develop an affidavit to be

14 used for the voluntary acknowledgment of paternity which

15 shall include the social security number of each parent

16 and, after consultation with the States, other common ele17 ments as determined by such designee’’ before the semi18 colon.

19 (c) CONFORMING AMENDMENT.—Section 468 (42

20 U.S.C. 668) is amended by striking ‘‘a simple civil process

21 for voluntarily acknowledging paternity and’’.

22 SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTAB23 LISHMENT.

24 Section 454(23) (42 U.S.C. 654(23)) is amended by

25 inserting ‘‘and will publicize the availability and encourage
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1 the use of procedures for voluntary establishment of pater2 nity and child support by means the State deems appro3 priate’’ before the semicolon.

4 SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPI5 ENTS OF TEMPORARY FAMILY ASSISTANCE.

6 Section 454 (42 U.S.C. 654), as amended by sections

7 301(b), 303(a), 312(a), and 313(a) of this Act, is amend8 ed—

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

10 (27);

11 (2) by striking the period at the end of para12 graph (28) and inserting ‘‘; and’’; and

13 (3) by inserting after paragraph (28) the fol14 lowing new paragraph:

15 ‘‘(29) provide that the State agency responsible

16 for administering the State plan—

17 ‘‘(A) shall make the determination (and re18 determination at appropriate intervals) as to

19 whether an individual who has applied for or is

20 receiving assistance under the State program

21 funded under part A or the State program

22 under title XIX is cooperating in good faith

23 with the State in establishing the paternity of,

24 or in establishing, modifying, or enforcing a

25 support order for, any child of the individual by
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1 providing the State agency with the name of,

2 and such other information as the State agency

3 may require with respect to, the noncustodial

4 parent of the child, subject to such good cause

5 exceptions, taking into account the best inter6 ests of the child, as the State may establish

7 through the State agency, or at the option of

8 the State, through the State agencies admin9 istering the State programs funded under part

10 A and title XIX;

11 ‘‘(B) shall require the individual to supply

12 additional necessary information and appear at

13 interviews, hearings, and legal proceedings;

14 ‘‘(C) shall require the individual and the

15 child to submit to genetic tests pursuant to ju16 dicial or administrative order;

17 ‘‘(D) may request that the individual sign

18 a voluntary acknowledgment of paternity, after

19 notice of the rights and consequences of such

20 an acknowledgment, but may not require the in21 dividual to sign an acknowledgment or other22 wise relinquish the right to genetic tests as a

23 condition of cooperation and eligibility for as24 sistance under the State program funded under
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1 part A or the State program under title XIX;

2 and

3 ‘‘(E) shall promptly notify the individual

4 and the State agency administering the State

5 program funded under part A and the State

6 agency administering the State program under

7 title XIX of each such determination, and if

8 noncooperation is determined, the basis there9 fore.’’.

10 Subtitle E—Program

11 Administration and Funding

12 SEC. 341. PERFORMANCE-BASED INCENTIVES AND PEN13 ALTIES.

14 (a) DEVELOPMENT OF NEW SYSTEM.—The Sec15 retary of Health and Human Services, in consultation with

16 State directors of programs under part D of title IV of

17 the Social Security Act, shall develop a new incentive sys18 tem to replace, in a revenue neutral manner, the system

19 under section 458 of such Act. The new system shall pro20 vide additional payments to any State based on such

21 State’s performance under such a program. Not later than

22 June 1, 1996, the Secretary shall report on the new sys23 tem to the Committee on Ways and Means of the House

24 of Representatives and the Committee on Finance of the

25 Senate.
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1 (b) CONFORMING AMENDMENTS TO PRESENT SYS2 TEM.—Section 458 (42 U.S.C. 658) is amended—

3 (1) in subsection (a), by striking ‘‘aid to fami4 lies with dependent children under a State plan ap5 proved under part A of this title’’ and inserting ‘‘as6 sistance under a program funded under part A’’;

7 (2) in subsection (b)(1)(A), by striking ‘‘section

8 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’;

9 (3) in subsections (b) and (c)—

10 (A) by striking ‘‘AFDC collections’’ each

11 place it appears and inserting ‘‘title IV–A col12 lections’’, and

13 (B) by striking ‘‘non-AFDC collections’’

14 each place it appears and inserting ‘‘non-title

15 IV–A collections’’; and

16 (4) in subsection (c), by striking ‘‘combined

17 AFDC/non-AFDC administrative costs’’ both places

18 it appears and inserting ‘‘combined title IV–A/non19 title IV–A administrative costs’’.

20 (c) CALCULATION OF IV–D PATERNITY ESTABLISH21 MENT PERCENTAGE.—

22 (1) Section 452(g)(1)(A) (42 U.S.C.

23 652(g)(1)(A)) is amended by striking ‘‘75’’ and in24 serting ‘‘90’’.
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1 (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

2 amended by redesignating subparagraphs (B)

3 through (E) as subparagraphs (C) through (F), re4 spectively, and by inserting after subparagraph (A)

5 the following new subparagraph:

6 ‘‘(B) for a State with a paternity establish7 ment percentage of not less than 75 percent but

8 less than 90 percent for such fiscal year, the

9 paternity establishment percentage of the State

10 for the immediately preceding fiscal year plus 2

11 percentage points;’’.

12 (3) Section 452(g)(2)(A) (42 U.S.C.

13 652(g)(2)(A)) is amended in the matter preceding

14 clause (i)—

15 (A) by striking ‘‘paternity establishment

16 percentage’’ and inserting ‘‘IV–D paternity es17 tablishment percentage’’; and

18 (B) by striking ‘‘(or all States, as the case

19 may be)’’.

20 (4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

21 amended by adding at the end the following new

22 sentence: ‘‘In meeting the 90 percent paternity es23 tablishment requirement, a State may calculate ei24 ther the paternity establishment rate of cases in the

25 program funded under this part or the paternity es-
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1 tablishment rate of all out-of-wedlock births in the

2 State.’’.

3 (5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

4 amended—

5 (A) by striking subparagraph (A) and re6 designating subparagraphs (B) and (C) as sub7 paragraphs (A) and (B), respectively;

8 (B) in subparagraph (A) (as so redesig9 nated), by striking ‘‘the percentage of children

10 born out-of-wedlock in a State’’ and inserting

11 ‘‘the percentage of children in a State who are

12 born out of wedlock or for whom support has

13 not been established’’; and

14 (C) in subparagraph (B) (as so redesig15 nated) by inserting ‘‘and securing support’’ be16 fore the period.

17 (d) EFFECTIVE DATES.—

18 (1) INCENTIVE ADJUSTMENTS.—

19 (A) IN GENERAL.—The system developed

20 under subsection (a) and the amendments made

21 by subsection (b) shall become effective on Oc22 tober 1, 1997, except to the extent provided in

23 subparagraph (B).

24 (B) APPLICATION OF SECTION 458.—Sec25 tion 458 of the Social Security Act, as in effect
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1 on the day before the date of the enactment of

2 this section, shall be effective for purposes of

3 incentive payments to States for fiscal years be4 fore fiscal year 1999.

5 (2) PENALTY REDUCTIONS.—The amendments

6 made by subsection (c) shall become effective with

7 respect to calendar quarters beginning on or after

8 the date of the enactment of this Act.

9 SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

10 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

11 U.S.C. 654) is amended—

12 (1) in paragraph (14), by striking ‘‘(14)’’ and

13 inserting ‘‘(14)(A)’’;

14 (2) by redesignating paragraph (15) as sub15 paragraph (B) of paragraph (14); and

16 (3) by inserting after paragraph (14) the fol17 lowing new paragraph:

18 ‘‘(15) provide for—

19 ‘‘(A) a process for annual reviews of and

20 reports to the Secretary on the State program

21 operated under the State plan approved under

22 this part, including such information as may be

23 necessary to measure State compliance with

24 Federal requirements for expedited procedures,

25 using such standards and procedures as are re-
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1 quired by the Secretary, under which the State

2 agency will determine the extent to which the

3 program is operated in compliance with this

4 part; and

5 ‘‘(B) a process of extracting from the auto6 mated data processing system required by para7 graph (16) and transmitting to the Secretary

8 data and calculations concerning the levels of

9 accomplishment (and rates of improvement)

10 with respect to applicable performance indica11 tors (including IV–D paternity establishment

12 percentages to the extent necessary for pur13 poses of sections 452(g) and 458.’’.

14 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

15 U.S.C. 652(a)(4)) is amended to read as follows:

16 ‘‘(4)(A) review data and calculations transmit17 ted by State agencies pursuant to section

18 454(15)(B) on State program accomplishments with

19 respect to performance indicators for purposes of

20 subsection (g) of this section and section 458;

21 ‘‘(B) review annual reports submitted pursuant

22 to section 454(15)(A) and, as appropriate, provide

23 to the State comments, recommendations for addi24 tional or alternative corrective actions, and technical

25 assistance; and
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1 ‘‘(C) conduct audits, in accordance with the

2 Government auditing standards of the Comptroller

3 General of the United States—

4 ‘‘(i) at least once every 3 years (or more

5 frequently, in the case of a State which fails to

6 meet the requirements of this part concerning

7 performance standards and reliability of pro8 gram data) to assess the completeness, reliabil9 ity, and security of the data, and the accuracy

10 of the reporting systems, used in calculating

11 performance indicators under subsection (g) of

12 this section and section 458;

13 ‘‘(ii) of the adequacy of financial manage14 ment of the State program operated under the

15 State plan approved under this part, including

16 assessments of—

17 ‘‘(I) whether Federal and other funds

18 made available to carry out the State pro19 gram are being appropriately expended,

20 and are properly and fully accounted for;

21 and

22 ‘‘(II) whether collections and disburse23 ments of support payments are carried out

24 correctly and are fully accounted for; and
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•S 1867 IS

1 ‘‘(iii) for such other purposes as the Sec2 retary may find necessary;’’.

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

4 this section shall be effective with respect to calendar

5 quarters beginning 12 months or more after the date of

6 the enactment of this Act.

7 SEC. 343. REQUIRED REPORTING PROCEDURES.

8 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

9 652(a)(5)) is amended by inserting ‘‘, and establish proce10 dures to be followed by States for collecting and reporting

11 information required to be provided under this part, and

12 establish uniform definitions (including those necessary to

13 enable the measurement of State compliance with the re14 quirements of this part relating to expedited processes) to

15 be applied in following such procedures’’ before the semi16 colon.

17 (b) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 301(b), 303(a),

19 312(a), 313(a), and 333 of this Act, is amended—

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

21 (28);

22 (2) by striking the period at the end of para23 graph (29) and inserting ‘‘; and’’; and

24 (3) by adding after paragraph (29) the follow25 ing new paragraph:
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1 ‘‘(30) provide that the State shall use the defi2 nitions established under section 452(a)(5) in col3 lecting and reporting information as required under

4 this part.’’.

5 SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

6 (a) REVISED REQUIREMENTS.—

7 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

8 654(16)) is amended—

9 (A) by striking ‘‘, at the option of the

10 State,’’;

11 (B) by inserting ‘‘and operation by the

12 State agency’’ after ‘‘for the establishment’’;

13 (C) by inserting ‘‘meeting the requirements

14 of section 454A’’ after ‘‘information retrieval

15 system’’;

16 (D) by striking ‘‘in the State and localities

17 thereof, so as (A)’’ and inserting ‘‘so as’’;

18 (E) by striking ‘‘(i)’’; and

19 (F) by striking ‘‘(including’’ and all that

20 follows and inserting a semicolon.

21 (2) AUTOMATED DATA PROCESSING.—Part D of

22 title IV (42 U.S.C. 651–669) is amended by insert23 ing after section 454 the following new section:
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1 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

2 ‘‘(a) IN GENERAL.—In order for a State to meet the

3 requirements of this section, the State agency administer4 ing the State program under this part shall have in oper5 ation a single statewide automated data processing and

6 information retrieval system which has the capability to

7 perform the tasks specified in this section with the fre8 quency and in the manner required by or under this part.

9 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys10 tem required by this section shall perform such functions

11 as the Secretary may specify relating to management of

12 the State program under this part, including—

13 ‘‘(1) controlling and accounting for use of Fed14 eral, State, and local funds in carrying out the pro15 gram; and

16 ‘‘(2) maintaining the data necessary to meet

17 Federal reporting requirements under this part on a

18 timely basis.

19 ‘‘(c) CALCULATION OF PERFORMANCE INDICA20 TORS.—In order to enable the Secretary to determine the

21 incentive payments and penalty adjustments required by

22 sections 452(g) and 458, the State agency shall—

23 ‘‘(1) use the automated system—

24 ‘‘(A) to maintain the requisite data on

25 State performance with respect to paternity es-
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1 tablishment and child support enforcement in

2 the State; and

3 ‘‘(B) to calculate the IV–D paternity es4 tablishment percentage for the State for each

5 fiscal year; and

6 ‘‘(2) have in place systems controls to ensure

7 the completeness and reliability of, and ready access

8 to, the data described in paragraph (1)(A), and the

9 accuracy of the calculations described in paragraph

10 (1)(B).

11 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

12 State agency shall have in effect safeguards on the integ13 rity, accuracy, and completeness of, access to, and use of

14 data in the automated system required by this section,

15 which shall include the following (in addition to such other

16 safeguards as the Secretary may specify in regulations):

17 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

18 policies concerning access to data by State agency

19 personnel, and sharing of data with other persons,

20 which—

21 ‘‘(A) permit access to and use of data only

22 to the extent necessary to carry out the State

23 program under this part; and
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1 ‘‘(B) specify the data which may be used

2 for particular program purposes, and the per3 sonnel permitted access to such data.

4 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

5 (such as passwords or blocking of fields) to ensure

6 strict adherence to the policies described in para7 graph (1).

8 ‘‘(3) MONITORING OF ACCESS.—Routine mon9 itoring of access to and use of the automated sys10 tem, through methods such as audit trails and feed11 back mechanisms, to guard against and promptly

12 identify unauthorized access or use.

13 ‘‘(4) TRAINING AND INFORMATION.—Proce14 dures to ensure that all personnel (including State

15 and local agency staff and contractors) who may

16 have access to or be required to use confidential pro17 gram data are informed of applicable requirements

18 and penalties (including those in section 6103 of the

19 Internal Revenue Code of 1986), and are adequately

20 trained in security procedures.

21 ‘‘(5) PENALTIES.—Administrative penalties (up

22 to and including dismissal from employment) for un23 authorized access to, or disclosure or use of, con24 fidential data.’’.
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1 (3) REGULATIONS.—The Secretary of Health

2 and Human Services shall prescribe final regulations

3 for implementation of section 454A of the Social Se4 curity Act not later than 2 years after the date of

5 the enactment of this Act.

6 (4) IMPLEMENTATION TIMETABLE.—Section

7 454(24) (42 U.S.C. 654(24)), as amended by section

8 303(a)(1) of this Act, is amended to read as follows:

9 ‘‘(24) provide that the State will have in effect

10 an automated data processing and information re11 trieval system—

12 ‘‘(A) by October 1, 1997, which meets all

13 requirements of this part which were enacted on

14 or before the date of enactment of the Family

15 Support Act of 1988, and

16 ‘‘(B) by October 1, 1999, which meets all

17 requirements of this part enacted on or before

18 the date of the enactment of the Bipartisan

19 Welfare Reform Act of 1996, except that such

20 deadline shall be extended by 1 day for each

21 day (if any) by which the Secretary fails to

22 meet the deadline imposed by section 344(a)(3)

23 of the Bipartisan Welfare Reform Act of

24 1996;’’.
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1 (b) SPECIAL FEDERAL MATCHING RATE FOR DE2 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

3 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

4 655(a)) is amended—

5 (A) in paragraph (1)(B)—

6 (i) by striking ‘‘90 percent’’ and in7 serting ‘‘the percent specified in paragraph

8 (3)’’;

9 (ii) by striking ‘‘so much of’’; and

10 (iii) by striking ‘‘which the Secretary’’

11 and all that follows and inserting ‘‘, and’’;

12 and

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

14 paragraph:

15 ‘‘(3)(A) The Secretary shall pay to each State, for

16 each quarter in fiscal years 1996 and 1997, 90 percent

17 of so much of the State expenditures described in para18 graph (1)(B) as the Secretary finds are for a system meet19 ing the requirements specified in section 454(16) (as in

20 effect on September 30, 1995) but limited to the amount

21 approved for States in the advance planning documents

22 of such States submitted on or before May 1, 1995.

23 ‘‘(B)(i) The Secretary shall pay to each State, for

24 each quarter in fiscal years 1996 through 2001, the per25 centage specified in clause (ii) of so much of the State
321

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1 expenditures described in paragraph (1)(B) as the Sec2 retary finds are for a system meeting the requirements

3 of sections 454(16) and 454A.

4 ‘‘(ii) The percentage specified in this clause is 80 per5 cent.’’.

6 (2) TEMPORARY LIMITATION ON PAYMENTS

7 UNDER SPECIAL FEDERAL MATCHING RATE.—

8 (A) IN GENERAL.—The Secretary of

9 Health and Human Services may not pay more

10 than $400,000,000 in the aggregate under sec11 tion 455(a)(3)(B) of the Social Security Act for

12 fiscal years 1996 through 2001.

13 (B) ALLOCATION OF LIMITATION AMONG

14 STATES.—The total amount payable to a State

15 under section 455(a)(3)(B) of such Act for fis16 cal years 1996 through 2001 shall not exceed

17 the limitation determined for the State by the

18 Secretary of Health and Human Services in

19 regulations.

20 (C) ALLOCATION FORMULA.—The regula21 tions referred to in subparagraph (B) shall pre22 scribe a formula for allocating the amount spec23 ified in subparagraph (A) among States with

24 plans approved under part D of title IV of the
322

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1 Social Security Act, which shall take into ac2 count—

3 (i) the relative size of State caseloads

4 under such part; and

5 (ii) the level of automation needed to

6 meet the automated data processing re7 quirements of such part.

8 (c) CONFORMING AMENDMENT.—Section 123(c) of

9 the Family Support Act of 1988 (102 Stat. 2352; Public

10 Law 100–485) is repealed.

11 SEC. 345. TECHNICAL ASSISTANCE.

12 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

13 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE14 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI15 CANCE.—Section 452 (42 U.S.C. 652) is amended by add16 ing at the end the following new subsection:

17 ‘‘(j) Out of any money in the Treasury of the United

18 States not otherwise appropriated, there is hereby appro19 priated to the Secretary for each fiscal year an amount

20 equal to 1 percent of the total amount paid to the Federal

21 Government pursuant to section 457(a) during the imme22 diately preceding fiscal year (as determined on the basis

23 of the most recent reliable data available to the Secretary

24 as of the end of the 3rd calendar quarter following the
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1 end of such preceding fiscal year), to cover costs incurred

2 by the Secretary 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 part.

12 The amount appropriated under this subsection shall re13 main available until expended.’’.

14 (b) OPERATION OF FEDERAL PARENT LOCATOR

15 SERVICE.—Section 453 (42 U.S.C. 653), as amended by

16 section 316 of this Act, is amended by adding at the end

17 the following new subsection:

18 ‘‘(o) RECOVERY OF COSTS.—Out of any money in the

19 Treasury of the United States not otherwise appropriated,

20 there is hereby appropriated to the Secretary for each fis21 cal year an amount equal to 2 percent of the total amount

22 paid to the Federal Government pursuant to section

23 457(a) during the immediately preceding fiscal year (as

24 determined on the basis of the most recent reliable data

25 available to the Secretary as of the end of the 3rd calendar
324

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1 quarter following the end of such preceding fiscal year),

2 to cover costs incurred by the Secretary for operation of

3 the Federal Parent Locator Service under this section, to

4 the extent such costs are not recovered through user

5 fees.’’.

6 SEC. 346. REPORTS AND DATA COLLECTION BY THE SEC7 RETARY.

8 (a) ANNUAL REPORT TO CONGRESS.—

9 (1) Section 452(a)(10)(A) (42 U.S.C.

10 652(a)(10)(A)) is amended—

11 (A) by striking ‘‘this part;’’ and inserting

12 ‘‘this part, including—’’; and

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

14 clauses:

15 ‘‘(i) the total amount of child support

16 payments collected as a result of services

17 furnished during the fiscal year to individ18 uals receiving services under this part;

19 ‘‘(ii) the cost to the States and to the

20 Federal Government of so furnishing the

21 services; and

22 ‘‘(iii) the number of cases involving

23 families—

24 ‘‘(I) who became ineligible for as25 sistance under State programs funded
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1 under part A during a month in the

2 fiscal year; and

3 ‘‘(II) with respect to whom a

4 child support payment was received in

5 the month;’’.

6 (2) Section 452(a)(10)(C) (42 U.S.C.

7 652(a)(10)(C)) is amended—

8 (A) in the matter preceding clause (i)—

9 (i) by striking ‘‘with the data required

10 under each clause being separately stated

11 for cases’’ and inserting ‘‘separately stated

12 for (1) case’’;

13 (ii) by striking ‘‘cases where the child

14 was formerly receiving’’ and inserting ‘‘or

15 formerly received’’;

16 (iii) by inserting ‘‘or 1912’’ after

17 ‘‘471(a)(17)’’; and

18 (iv) by inserting ‘‘(2)’’ before ‘‘all

19 other’’;

20 (B) in each of clauses (i) and (ii), by strik21 ing ‘‘, and the total amount of such obliga22 tions’’;

23 (C) in clause (iii), by striking ‘‘described

24 in’’ and all that follows and inserting ‘‘in which

25 support was collected during the fiscal year;’’;
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1 (D) by striking clause (iv); and

2 (E) by redesignating clause (v) as clause

3 (vii), and inserting after clause (iii) the follow4 ing new clauses:

5 ‘‘(iv) the total amount of support col6 lected during such fiscal year and distrib7 uted as current support;

8 ‘‘(v) the total amount of support col9 lected during such fiscal year and distrib10 uted as arrearages;

11 ‘‘(vi) the total amount of support due

12 and unpaid for all fiscal years; and’’.

13 (3) Section 452(a)(10)(G) (42 U.S.C.

14 652(a)(10)(G)) is amended by striking ‘‘on the use

15 of Federal courts and’’.

16 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

17 is amended—

18 (A) in subparagraph (H), by striking

19 ‘‘and’’;

20 (B) in subparagraph (I), by striking the

21 period and inserting ‘‘; and’’; and

22 (C) by inserting after subparagraph (I) the

23 following new subparagraph:
327

•S 1867 IS

1 ‘‘(J) compliance, by State, with the stand2 ards established pursuant to subsections (h)

3 and (i).’’.

4 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10))

5 is amended by striking all that follows subparagraph

6 (J), as added by paragraph (4).

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

8 subsection (a) shall be effective with respect to fiscal year

9 1996 and succeeding fiscal years.

10 Subtitle F—Establishment and

11 Modification of Support Orders

12 SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST13 MENT OF CHILD SUPPORT ORDERS.

14 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend15 ed to read as follows:

16 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

17 ORDERS UPON REQUEST.—Procedures under which

18 the State shall review and adjust each support order

19 being enforced under this part upon the request of

20 either parent or the State if there is an assignment.

21 Such procedures shall provide the following:

22 ‘‘(A) IN GENERAL.—

23 ‘‘(i) 3-YEAR CYCLE.—Except as pro24 vided in subparagraphs (B) and (C), the

25 State shall review and, as appropriate, ad-
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•S 1867 IS

1 just the support order every 3 years, tak2 ing into account the best interests of the

3 child involved.

4 ‘‘(ii) METHODS OF ADJUSTMENT.—

5 The State may elect to review and, if ap6 propriate, adjust an order pursuant to

7 clause (i) by—

8 ‘‘(I) reviewing and, if appro9 priate, adjusting the order in accord10 ance with the guidelines established

11 pursuant to section 467(a) if the

12 amount of the child support award

13 under the order differs from the

14 amount that would be awarded in ac15 cordance with the guidelines; or

16 ‘‘(II) applying a cost-of-living ad17 justment to the order in accordance

18 with a formula developed by the State

19 and permit either party to contest the

20 adjustment, within 30 days after the

21 date of the notice of the adjustment,

22 by making a request for review and, if

23 appropriate, adjustment of the order

24 in accordance with the child support
329

•S 1867 IS

1 guidelines established pursuant to sec2 tion 467(a).

3 ‘‘(iii) NO PROOF OF CHANGE IN CIR4 CUMSTANCES NECESSARY.—Any adjust5 ment under this subparagraph (A) shall be

6 made without a requirement for proof or

7 showing of a change in circumstances.

8 ‘‘(B) AUTOMATED METHOD.—The State

9 may use automated methods (including auto10 mated comparisons with wage or State income

11 tax data) to identify orders eligible for review,

12 conduct the review, identify orders eligible for

13 adjustment, and apply the appropriate adjust14 ment to the orders eligible for adjustment

15 under the threshold established by the State.

16 ‘‘(C) REQUEST UPON SUBSTANTIAL

17 CHANGE IN CIRCUMSTANCES.—The State shall,

18 at the request of either parent subject to such

19 an order or of any State child support enforce20 ment agency, review and, if appropriate, adjust

21 the order in accordance with the guidelines es22 tablished pursuant to section 467(a) based

23 upon a substantial change in the circumstances

24 of either parent.
330

•S 1867 IS

1 ‘‘(D) NOTICE OF RIGHT TO REVIEW.—The

2 State shall provide notice not less than once

3 every 3 years to the parents subject to such an

4 order informing them of their right to request

5 the State to review and, if appropriate, adjust

6 the order pursuant to this paragraph. The no7 tice may be included in the order.’’.

8 SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN

9 PURPOSES RELATING TO CHILD SUPPORT.

10 Section 604 of the Fair Credit Reporting Act (15

11 U.S.C. 1681b) is amended by adding at the end the follow12 ing new paragraphs:

13 ‘‘(4) In response to a request by the head of a

14 State or local child support enforcement agency (or

15 a State or local government official authorized by

16 the head of such an agency), if the person making

17 the request certifies to the consumer reporting agen18 cy that—

19 ‘‘(A) the consumer report is needed for the

20 purpose of establishing an individual’s capacity

21 to make child support payments or determining

22 the appropriate level of such payments;

23 ‘‘(B) the paternity of the consumer for the

24 child to which the obligation relates has been

25 established or acknowledged by the consumer in
331

•S 1867 IS

1 accordance with State laws under which the ob2 ligation arises (if required by those laws);

3 ‘‘(C) the person has provided at least 10

4 days’ prior notice to the consumer whose report

5 is requested, by certified or registered mail to

6 the last known address of the consumer, that

7 the report will be requested; and

8 ‘‘(D) the consumer report will be kept con9 fidential, will be used solely for a purpose de10 scribed in subparagraph (A), and will not be

11 used in connection with any other civil, admin12 istrative, or criminal proceeding, or for any

13 other purpose.

14 ‘‘(5) To an agency administering a State plan

15 under section 454 of the Social Security Act (42

16 U.S.C. 654) for use to set an initial or modified

17 child support award.’’.

18 SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS

19 PROVIDING FINANCIAL RECORDS TO STATE

20 CHILD SUPPORT ENFORCEMENT AGENCIES

21 IN CHILD SUPPORT CASES.

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of Federal or State law, a financial institution shall

24 not be liable under any Federal or State law to any person

25 for disclosing any financial record of an individual to a
332

•S 1867 IS

1 State child support enforcement agency attempting to es2 tablish, modify, or enforce a child support obligation of

3 such individual.

4 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

5 RECORD OBTAINED BY STATE CHILD SUPPORT EN6 FORCEMENT AGENCY.—A State child support enforcement

7 agency which obtains a financial record of an individual

8 from a financial institution pursuant to subsection (a)

9 may disclose such financial record only for the purpose

10 of, and to the extent necessary in, establishing, modifying,

11 or enforcing a child support obligation of such individual.

12 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO13 SURE.—

14 (1) DISCLOSURE BY STATE OFFICER OR EM15 PLOYEE.—If any person knowingly, or by reason of

16 negligence, discloses a financial record of an individ17 ual in violation of subsection (b), such individual

18 may bring a civil action for damages against such

19 person in a district court of the United States.

20 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO21 NEOUS INTERPRETATION.—No liability shall arise

22 under this subsection with respect to any disclosure

23 which results from a good faith, but erroneous, in24 terpretation of subsection (b).
333

•S 1867 IS

1 (3) DAMAGES.—In any action brought under

2 paragraph (1), upon a finding of liability on the part

3 of the defendant, the defendant shall be liable to the

4 plaintiff in an amount equal to the sum of—

5 (A) the greater of—

6 (i) $1,000 for each act of unauthor7 ized disclosure of a financial record with

8 respect to which such defendant is found

9 liable; or

10 (ii) the sum of—

11 (I) the actual damages sustained

12 by the plaintiff as a result of such un13 authorized disclosure; plus

14 (II) in the case of a willful disclo15 sure or a disclosure which is the re16 sult of gross negligence, punitive dam17 ages; plus

18 (B) the costs (including attorney’s fees) of

19 the action.

20 (d) DEFINITIONS.—For purposes of this section—

21 (1) FINANCIAL INSTITUTION.—The term ‘‘fi22 nancial institution’’ means—

23 (A) a depository institution, as defined in

24 section 3(c) of the Federal Deposit Insurance

25 Act (12 U.S.C. 1813(c));
334

•S 1867 IS

1 (B) an institution-affiliated party, as de2 fined in section 3(u) of such Act (12 U.S.C.

3 1813(v));

4 (C) any Federal credit union or State cred5 it union, as defined in section 101 of the Fed6 eral Credit Union Act (12 U.S.C. 1752), includ7 ing an institution-affiliated party of such a

8 credit union, as defined in section 206(r) of

9 such Act (12 U.S.C. 1786(r)); and

10 (D) any benefit association, insurance com11 pany, safe deposit company, money-market mu12 tual fund, or similar entity authorized to do

13 business in the State.

14 (2) FINANCIAL RECORD.—The term ‘‘financial

15 record’’ has the meaning given such term in section

16 1101 of the Right to Financial Privacy Act of 1978

17 (12 U.S.C. 3401).

18 (3) STATE CHILD SUPPORT ENFORCEMENT

19 AGENCY.—The term ‘‘State child support enforce20 ment agency’’ means a State agency which admin21 isters a State program for establishing and enforcing

22 child support obligations.
335

•S 1867 IS

1 Subtitle G—Enforcement of

2 Support Orders

3 SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF

4 ARREARAGES.

5 (a) COLLECTION OF FEES.—Section 6305(a) of the

6 Internal Revenue Code of 1986 (relating to collection of

7 certain liability) is amended—

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

9 (3);

10 (2) by striking the period at the end of para11 graph (4) and inserting ‘‘, and’’;

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(5) no additional fee may be assessed for ad15 justments to an amount previously certified pursu16 ant to such section 452(b) with respect to the same

17 obligor.’’; and

18 (4) by striking ‘‘Secretary of Health, Edu19 cation, and Welfare’’ each place it appears and in20 serting ‘‘Secretary of Health and Human Services’’.

21 (b) EFFECTIVE DATE.—The amendments made by

22 this section shall become effective October 1, 1997.
336

•S 1867 IS

1 SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FED2 ERAL EMPLOYEES.

3 (a) CONSOLIDATION AND STREAMLINING OF AU4 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

5 read as follows:

6 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

7 WITHHOLDING, GARNISHMENT, AND SIMILAR

8 PROCEEDINGS FOR ENFORCEMENT OF CHILD

9 SUPPORT AND ALIMONY OBLIGATIONS.

10 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not11 withstanding any other provision of law (including section

12 207 of this Act and section 5301 of title 38, United States

13 Code), effective January 1, 1975, moneys (the entitlement

14 to which is based upon remuneration for employment) due

15 from, or payable by, the United States or the District of

16 Columbia (including any agency, subdivision, or instru17 mentality thereof) to any individual, including members

18 of the Armed Forces of the United States, shall be subject,

19 in like manner and to the same extent as if the United

20 States or the District of Columbia were a private person,

21 to withholding in accordance with State law enacted pur22 suant to subsections (a)(1) and (b) of section 466 and reg23 ulations of the Secretary under such subsections, and to

24 any other legal process brought, by a State agency admin25 istering a program under a State plan approved under this
337

•S 1867 IS

1 part or by an individual obligee, to enforce the legal obliga2 tion of the individual to provide child support or alimony.

3 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

4 PRIVATE PERSON.—With respect to notice to withhold in5 come pursuant to subsection (a)(1) or (b) of section 466,

6 or any other order or process to enforce support obliga7 tions against an individual (if the order or process con8 tains or is accompanied by sufficient data to permit

9 prompt identification of the individual and the moneys in10 volved), each governmental entity specified in subsection

11 (a) shall be subject to the same requirements as would

12 apply if the entity were a private person, except as other13 wise provided in this section.

14 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

15 OR PROCESS—

16 ‘‘(1) DESIGNATION OF AGENT.—The head of

17 each agency subject to this section shall—

18 ‘‘(A) designate an agent or agents to re19 ceive orders and accept service of process in

20 matters relating to child support or alimony;

21 and

22 ‘‘(B) annually publish in the Federal Reg23 ister the designation of the agent or agents,

24 identified by title or position, mailing address,

25 and telephone number.
338

•S 1867 IS

1 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

2 agent designated pursuant to paragraph (1) of this

3 subsection receives notice pursuant to State proce4 dures in effect pursuant to subsection (a)(1) or (b)

5 of section 466, or is effectively served with any

6 order, process, or interrogatory, with respect to an

7 individual’s child support or alimony payment obli8 gations, the agent shall—

9 ‘‘(A) as soon as possible (but not later

10 than 15 days) thereafter, send written notice of

11 the notice or service (together with a copy of

12 the notice or service) to the individual at the

13 duty station or last-known home address of the

14 individual;

15 ‘‘(B) within 30 days (or such longer period

16 as may be prescribed by applicable State law)

17 after receipt of a notice pursuant to such State

18 procedures, comply with all applicable provi19 sions of section 466; and

20 ‘‘(C) within 30 days (or such longer period

21 as may be prescribed by applicable State law)

22 after effective service of any other such order,

23 process, or interrogatory, respond to the order,

24 process, or interrogatory.
339

•S 1867 IS

1 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

2 specified in subsection (a) receives notice or is served with

3 process, as provided in this section, concerning amounts

4 owed by an individual to more than 1 person—

5 ‘‘(1) support collection under section 466(b)

6 must be given priority over any other process, as

7 provided in section 466(b)(7);

8 ‘‘(2) allocation of moneys due or payable to an

9 individual among claimants under section 466(b)

10 shall be governed by section 466(b) and the regula11 tions prescribed under such section; and

12 ‘‘(3) such moneys as remain after compliance

13 with paragraphs (1) and (2) shall be available to

14 satisfy any other such processes on a first-come,

15 first-served basis, with any such process being satis16 fied out of such moneys as remain after the satisfac17 tion of all such processes which have been previously

18 served.

19 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

20 governmental entity that is affected by legal process

21 served for the enforcement of an individual’s child support

22 or alimony payment obligations shall not be required to

23 vary its normal pay and disbursement cycle in order to

24 comply with the legal process.

25 ‘‘(f) RELIEF FROM LIABILITY.—
340

•S 1867 IS

1 ‘‘(1) Neither the United States, nor the govern2 ment of the District of Columbia, nor any disbursing

3 officer shall be liable with respect to any payment

4 made from moneys due or payable from the United

5 States to any individual pursuant to legal process

6 regular on its face, if the payment is made in ac7 cordance with this section and the regulations issued

8 to carry out this section.

9 ‘‘(2) No Federal employee whose duties include

10 taking actions necessary to comply with the require11 ments of subsection (a) with regard to any individ12 ual shall be subject under any law to any discipli13 nary action or civil or criminal liability or penalty

14 for, or on account of, any disclosure of information

15 made by the employee in connection with the carry16 ing out of such actions.

17 ‘‘(g) REGULATIONS.—Authority to promulgate regu18 lations for the implementation of this section shall, insofar

19 as this section applies to moneys due from (or payable

20 by)—

21 ‘‘(1) the United States (other than the legisla22 tive or judicial branches of the Federal Government)

23 or the government of the District of Columbia, be

24 vested in the President (or the designee of the Presi25 dent);
341

•S 1867 IS

1 ‘‘(2) the legislative branch of the Federal Gov2 ernment, be vested jointly in the President pro tem3 pore of the Senate and the Speaker of the House of

4 Representatives (or their designees), and

5 ‘‘(3) the judicial branch of the Federal Govern6 ment, be vested in the Chief Justice of the United

7 States (or the designee of the Chief Justice).

8 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

10 moneys paid or payable to an individual which are

11 considered to be based upon remuneration for em12 ployment, for purposes of this section—

13 ‘‘(A) consist of—

14 ‘‘(i) compensation paid or payable for

15 personal services of the individual, whether

16 the compensation is denominated as wages,

17 salary, commission, bonus, pay, allowances,

18 or otherwise (including severance pay, sick

19 pay, and incentive pay);

20 ‘‘(ii) periodic benefits (including a

21 periodic benefit as defined in section

22 228(h)(3)) or other payments—

23 ‘‘(I) under the insurance system

24 established by title II;
342

•S 1867 IS

1 ‘‘(II) under any other system or

2 fund established by the United States

3 which provides for the payment of

4 pensions, retirement or retired pay,

5 annuities, dependents’ or survivors’

6 benefits, or similar amounts payable

7 on account of personal services per8 formed by the individual or any other

9 individual;

10 ‘‘(III) as compensation for death

11 under any Federal program;

12 ‘‘(IV) under any Federal pro13 gram established to provide ‘black

14 lung’ benefits; or

15 ‘‘(V) by the Secretary of Veter16 ans Affairs as compensation for a

17 service-connected disability paid by

18 the Secretary to a former member of

19 the Armed Forces who is in receipt of

20 retired or retainer pay if the former

21 member has waived a portion of the

22 retired or retainer pay in order to re23 ceive such compensation; and

24 ‘‘(iii) worker’s compensation benefits

25 paid under Federal or State law but
343

•S 1867 IS

1 ‘‘(B) do not include any payment—

2 ‘‘(i) by way of reimbursement or oth3 erwise, to defray expenses incurred by the

4 individual in carrying out duties associated

5 with the employment of the individual; or

6 ‘‘(ii) as allowances for members of the

7 uniformed services payable pursuant to

8 chapter 7 of title 37, United States Code,

9 as prescribed by the Secretaries concerned

10 (defined by section 101(5) of such title) as

11 necessary for the efficient performance of

12 duty.

13 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter14 mining the amount of any moneys due from, or pay15 able by, the United States to any individual, there

16 shall be excluded amounts which—

17 ‘‘(A) are owed by the individual to the

18 United States;

19 ‘‘(B) are required by law to be, and are,

20 deducted from the remuneration or other pay21 ment involved, including Federal employment

22 taxes, and fines and forfeitures ordered by

23 court-martial;

24 ‘‘(C) are properly withheld for Federal,

25 State, or local income tax purposes, if the with-
344

•S 1867 IS

1 holding of the amounts is authorized or re2 quired by law and if amounts withheld are not

3 greater than would be the case if the individual

4 claimed all dependents to which he was entitled

5 (the withholding of additional amounts pursu6 ant to section 3402(i) of the Internal Revenue

7 Code of 1986 may be permitted only when the

8 individual presents evidence of a tax obligation

9 which supports the additional withholding);

10 ‘‘(D) are deducted as health insurance pre11 miums;

12 ‘‘(E) are deducted as normal retirement

13 contributions (not including amounts deducted

14 for supplementary coverage); or

15 ‘‘(F) are deducted as normal life insurance

16 premiums from salary or other remuneration

17 for employment (not including amounts de18 ducted for supplementary coverage).

19 ‘‘(i) DEFINITIONS.—For purposes of this section—

20 ‘‘(1) UNITED STATES.—The term ‘United

21 States’ includes any department, agency, or instru22 mentality of the legislative, judicial, or executive

23 branch of the Federal Government, the United

24 States Postal Service, the Postal Rate Commission,

25 any Federal corporation created by an Act of Con-
345

•S 1867 IS

1 gress that is wholly owned by the Federal Govern2 ment, and the governments of the territories and

3 possessions of the United States.

4 ‘‘(2) CHILD SUPPORT.—The term ‘child sup5 port’, when used in reference to the legal obligations

6 of an individual to provide such support, means

7 amounts required to be paid under a judgment, de8 cree, or order, whether temporary, final, or subject

9 to modification, issued by a court or an administra10 tive agency of competent jurisdiction, for the sup11 port and maintenance of a child, including a child

12 who has attained the age of majority under the law

13 of the issuing State, or a child and the parent with

14 whom the child is living, which provides for mone15 tary support, health care, arrearages or reimburse16 ment, and which may include other related costs and

17 fees, interest and penalties, income withholding, at18 torney’s fees, and other relief.

19 ‘‘(3) ALIMONY.—

20 ‘‘(A) IN GENERAL.—The term ‘alimony’,

21 when used in reference to the legal obligations

22 of an individual to provide the same, means

23 periodic payments of funds for the support and

24 maintenance of the spouse (or former spouse)

25 of the individual, and (subject to and in accord-
346

•S 1867 IS

1 ance with State law) includes separate mainte2 nance, alimony pendente lite, maintenance, and

3 spousal support, and includes attorney’s fees,

4 interest, and court costs when and to the extent

5 that the same are expressly made recoverable as

6 such pursuant to a decree, order, or judgment

7 issued in accordance with applicable State law

8 by a court of competent jurisdiction.

9 ‘‘(B) EXCEPTIONS.—Such term does not

10 include—

11 ‘‘(i) any child support; or

12 ‘‘(ii) any payment or transfer of prop13 erty or its value by an individual to the

14 spouse or a former spouse of the individual

15 in compliance with any community prop16 erty settlement, equitable distribution of

17 property, or other division of property be18 tween spouses or former spouses.

19 ‘‘(4) PRIVATE PERSON.—The term ‘private per20 son’ means a person who does not have sovereign or

21 other special immunity or privilege which causes the

22 person not to be subject to legal process.

23 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc24 ess’ means any writ, order, summons, or other simi25 lar process in the nature of garnishment—
347

•S 1867 IS

1 ‘‘(A) which is issued by—

2 ‘‘(i) a court or an administrative

3 agency of competent jurisdiction in any

4 State, territory, or possession of the Unit5 ed States;

6 ‘‘(ii) a court or an administrative

7 agency of competent jurisdiction in any

8 foreign country with which the United

9 States has entered into an agreement

10 which requires the United States to honor

11 the process; or

12 ‘‘(iii) an authorized official pursuant

13 to an order of such a court or an adminis14 trative agency of competent jurisdiction or

15 pursuant to State or local law; and

16 ‘‘(B) which is directed to, and the purpose

17 of which is to compel, a governmental entity

18 which holds moneys which are otherwise pay19 able to an individual to make a payment from

20 the moneys to another party in order to satisfy

21 a legal obligation of the individual to provide

22 child support or make alimony payments.’’.

23 (b) CONFORMING AMENDMENTS.—

24 (1) TO PART D OF TITLE IV.—Sections 461 and

25 462 (42 U.S.C. 661 and 662) are repealed.
348

•S 1867 IS

1 (2) TO TITLE 5, UNITED STATES CODE.—Sec2 tion 5520a of title 5, United States Code, is amend3 ed, in subsections (h)(2) and (i), by striking ‘‘sec4 tions 459, 461, and 462 of the Social Security Act

5 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec6 tion 459 of the Social Security Act (42 U.S.C.

7 659)’’.

8 (c) MILITARY RETIRED AND RETAINER PAY.—

9 (1) DEFINITION OF COURT.—Section

10 1408(a)(1) of title 10, United States Code, is

11 amended—

12 (A) by striking ‘‘and’’ at the end of sub13 paragraph (B);

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

15 subparagraph (C) and inserting ‘‘; and’’; and

16 (C) by adding after subparagraph (C) the

17 following: new subparagraph:

18 ‘‘(D) any administrative or judicial tribu19 nal of a State competent to enter orders for

20 support or maintenance (including a State

21 agency administering a program under a State

22 plan approved under part D of title IV of the

23 Social Security Act), and, for purposes of this

24 subparagraph, the term ‘State’ includes the

25 District of Columbia, the Commonwealth of
349

•S 1867 IS

1 Puerto Rico, the Virgin Islands, Guam, and

2 American Samoa.’’.

3 (2) DEFINITION OF COURT ORDER.—Section

4 1408(a)(2) of such title is amended—

5 (A) by inserting ‘‘or a support order, as

6 defined in section 453(p) of the Social Security

7 Act (42 U.S.C. 653(p)),’’ before ‘‘which—’’;

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

9 ‘‘(as defined in section 462(b) of the Social Se10 curity Act (42 U.S.C. 662(b)))’’ and inserting

11 ‘‘(as defined in section 459(i)(2) of the Social

12 Security Act (42 U.S.C. 662(i)(2)))’’; and

13 (C) in subparagraph (B)(ii), by striking

14 ‘‘(as defined in section 462(c) of the Social Se15 curity Act (42 U.S.C. 662(c)))’’ and inserting

16 ‘‘(as defined in section 459(i)(3) of the Social

17 Security Act (42 U.S.C. 662(i)(3)))’’.

18 (3) PUBLIC PAYEE.—Section 1408(d) of such

19 title is amended—

20 (A) in the heading, by inserting ‘‘(OR FOR

21 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

22 (B) in paragraph (1), in the 1st sentence,

23 by inserting ‘‘(or for the benefit of such spouse

24 or former spouse to a State disbursement unit

25 established pursuant to section 454B of the So-
350

•S 1867 IS

1 cial Security Act or other public payee des2 ignated by a State, in accordance with part D

3 of title IV of the Social Security Act, as di4 rected by court order, or as otherwise directed

5 in accordance with such part D)’’ before ‘‘in an

6 amount sufficient’’.

7 (4) RELATIONSHIP TO PART D OF TITLE IV.—

8 Section 1408 of such title is amended by adding at

9 the end the following new subsection:

10 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

11 involving an order providing for payment of child support

12 (as defined in section 459(i)(2) of the Social Security Act)

13 by a member who has never been married to the other

14 parent of the child, the provisions of this section shall not

15 apply, and the case shall be subject to the provisions of

16 section 459 of such Act.’’.

17 (d) EFFECTIVE DATE.—The amendments made by

18 this section shall become effective 6 months after the date

19 of the enactment of this Act.

20 SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGA21 TIONS OF MEMBERS OF THE ARMED FORCES.

22 (a) AVAILABILITY OF LOCATOR INFORMATION.—

23 (1) MAINTENANCE OF ADDRESS INFORMA24 TION.—The Secretary of Defense shall establish a

25 centralized personnel locator service that includes
351

•S 1867 IS

1 the address of each member of the Armed Forces

2 under the jurisdiction of the Secretary. Upon re3 quest of the Secretary of Transportation, addresses

4 for members of the Coast Guard shall be included in

5 the centralized personnel locator service.

6 (2) TYPE OF ADDRESS.—

7 (A) RESIDENTIAL ADDRESS.—Except as

8 provided in subparagraph (B), the address for

9 a member of the Armed Forces shown in the lo10 cator service shall be the residential address of

11 that member.

12 (B) DUTY ADDRESS.—The address for a

13 member of the Armed Forces shown in the loca14 tor service shall be the duty address of that

15 member in the case of a member—

16 (i) who is permanently assigned over17 seas, to a vessel, or to a routinely

18 deployable unit; or

19 (ii) with respect to whom the Sec20 retary concerned makes a determination

21 that the member’s residential address

22 should not be disclosed due to national se23 curity or safety concerns.

24 (3) UPDATING OF LOCATOR INFORMATION.—

25 Within 30 days after a member listed in the locator
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1 service establishes a new residential address (or a

2 new duty address, in the case of a member covered

3 by paragraph (2)(B)), the Secretary concerned shall

4 update the locator service to indicate the new ad5 dress of the member.

6 (4) AVAILABILITY OF INFORMATION.—The Sec7 retary of Defense shall make information regarding

8 the address of a member of the Armed Forces listed

9 in the locator service available, on request, to the

10 Federal Parent Locator Service established under

11 section 453 of the Social Security Act.

12 (b) FACILITATING GRANTING OF LEAVE FOR AT13 TENDANCE AT HEARINGS.—

14 (1) REGULATIONS.—The Secretary of each

15 military department, and the Secretary of Transpor16 tation with respect to the Coast Guard when it is

17 not operating as a service in the Navy, shall pre18 scribe regulations to facilitate the granting of leave

19 to a member of the Armed Forces under the juris20 diction of that Secretary in a case in which—

21 (A) the leave is needed for the member to

22 attend a hearing described in paragraph (2);

23 (B) the member is not serving in or with

24 a unit deployed in a contingency operation (as
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1 defined in section 101 of title 10, United States

2 Code); and

3 (C) the exigencies of military service (as

4 determined by the Secretary concerned) do not

5 otherwise require that such leave not be grant6 ed.

7 (2) COVERED HEARINGS.—Paragraph (1) ap8 plies to a hearing that is conducted by a court or

9 pursuant to an administrative process established

10 under State law, in connection with a civil action—

11 (A) to determine whether a member of the

12 Armed Forces is a natural parent of a child; or

13 (B) to determine an obligation of a mem14 ber of the Armed Forces to provide child sup15 port.

16 (3) DEFINITIONS.—For purposes of this sub17 section—

18 (A) The term ‘‘court’’ has the meaning

19 given that term in section 1408(a) of title 10,

20 United States Code.

21 (B) The term ‘‘child support’’ has the

22 meaning given such term in section 459(i) of

23 the Social Security Act (42 U.S.C. 659(i)).

24 (c) PAYMENT OF MILITARY RETIRED PAY IN COM25 PLIANCE WITH CHILD SUPPORT ORDERS.—
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1 (1) DATE OF CERTIFICATION OF COURT

2 ORDER.—Section 1408 of title 10, United States

3 Code, as amended by section 362(c)(4) of this Act,

4 is amended—

5 (A) by redesignating subsections (i) and (j)

6 as subsections (j) and (k), respectively; and

7 (B) by inserting after subsection (h) the

8 following new subsection:

9 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

10 the date of a certification of the authenticity or complete11 ness of a copy of a court order for child support received

12 by the Secretary concerned for the purposes of this section

13 be recent in relation to the date of receipt by the Sec14 retary.’’.

15 (2) PAYMENTS CONSISTENT WITH ASSIGN16 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

17 of such title is amended by inserting after the 1st

18 sentence the following new sentence: ‘‘In the case of

19 a spouse or former spouse who, pursuant to section

20 408(a)(4) of the Social Security Act, assigns to a

21 State the rights of the spouse or former spouse to

22 receive support, the Secretary concerned may make

23 the child support payments referred to in the preced24 ing sentence to that State in amounts consistent

25 with that assignment of rights.’’.
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1 (3) ARREARAGES OWED BY MEMBERS OF THE

2 UNIFORMED SERVICES.—Section 1408(d) of such

3 title is amended by adding at the end the following

4 new paragraph:

5 ‘‘(6) In the case of a court order for which effective

6 service is made on the Secretary concerned on or after

7 the date of the enactment of this paragraph and which

8 provides for payments from the disposable retired pay of

9 a member to satisfy the amount of child support set forth

10 in the order, the authority provided in paragraph (1) to

11 make payments from the disposable retired pay of a mem12 ber to satisfy the amount of child support set forth in a

13 court order shall apply to payment of any amount of child

14 support arrearages set forth in that order as well as to

15 amounts of child support that currently become due.’’.

16 (4) PAYROLL DEDUCTIONS.—The Secretary of

17 Defense shall begin payroll deductions within 30

18 days after receiving notice of withholding, or for the

19 1st pay period that begins after such 30-day period.

20 SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

21 Section 466 (42 U.S.C. 666), as amended by section

22 321 of this Act, is amended by adding at the end the fol23 lowing new subsection:
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1 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

2 order to satisfy section 454(20)(A), each State must have

3 in effect—

4 ‘‘(1)(A) the Uniform Fraudulent Conveyance

5 Act of 1981;

6 ‘‘(B) the Uniform Fraudulent Transfer Act

7 of 1984; or

8 ‘‘(C) another law, specifying indicia of

9 fraud which create a prima facie case that a

10 debtor transferred income or property to avoid

11 payment to a child support creditor, which the

12 Secretary finds affords comparable rights to

13 child support creditors; and

14 ‘‘(2) procedures under which, in any case in

15 which the State knows of a transfer by a child sup16 port debtor with respect to which such a prima facie

17 case is established, the State must—

18 ‘‘(A) seek to void such transfer; or

19 ‘‘(B) obtain a settlement in the best inter20 ests of the child support creditor.’’.

21 SEC. 365. WORK REQUIREMENT FOR PERSONS OWING

22 PAST-DUE CHILD SUPPORT.

23 (a) IN GENERAL.—Section 466(a) of the Social Secu24 rity Act (42 U.S.C. 666(a)), as amended by sections 315,
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•S 1867 IS

1 317(a), and 323 of this Act, is amended by adding at the

2 end the following new paragraph:

3 ‘‘(15) PROCEDURES TO ENSURE THAT PERSONS

4 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

5 FOR PAYMENT OF SUCH SUPPORT.—

6 ‘‘(A) IN GENERAL.—Procedures under

7 which the State has the authority, in any case

8 in which an individual owes past-due support

9 with respect to a child receiving assistance

10 under a State program funded under part A, to

11 seek a court order that requires the individual

12 to—

13 ‘‘(i) pay such support in accordance

14 with a plan approved by the court, or, at

15 the option of the State, a plan approved by

16 the State agency administering the State

17 program under this part; or

18 ‘‘(ii) if the individual is subject to

19 such a plan and is not incapacitated, par20 ticipate in such work activities (as defined

21 in section 407(d)) as the court, or, at the

22 option of the State, the State agency ad23 ministering the State program under this

24 part, deems appropriate.
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1 ‘‘(B) PAST-DUE SUPPORT DEFINED.—For

2 purposes of subparagraph (A), the term ‘past3 due support’ means the amount of a delin4 quency, determined under a court order, or an

5 order of an administrative process established

6 under State law, for support and maintenance

7 of a child, or of a child and the parent with

8 whom the child is living.’’.

9 (b) CONFORMING AMENDMENT.—The flush para10 graph at the end of section 466(a) (42 U.S.C.666(a)) is

11 amended by striking ‘‘and (7)’’ and inserting ‘‘(7), and

12 (15)’’.

13 SEC. 366. DEFINITION OF SUPPORT ORDER.

14 Section 453 (42 U.S.C. 653) as amended by sections

15 316 and 345(b) of this Act, is amended by adding at the

16 end the following new subsection:

17 ‘‘(p) SUPPORT ORDER DEFINED.—As used in this

18 part, the term ‘support order’ means a judgment, decree,

19 or order, whether temporary, final, or subject to modifica20 tion, issued by a court or an administrative agency of com21 petent jurisdiction, for the support and maintenance of a

22 child, including a child who has attained the age of major23 ity under the law of the issuing State, or a child and the

24 parent with whom the child is living, which provides for

25 monetary support, health care, arrearages, or reimburse-
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1 ment, and which may include related costs and fees, inter2 est and penalties, income withholding, attorneys’ fees, and

3 other relief.’’.

4 SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

5 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

6 to read as follows:

7 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU8 REAUS.—

9 ‘‘(A) IN GENERAL.—Procedures (subject to

10 safeguards pursuant to subparagraph (B)) re11 quiring the State to report periodically to

12 consumer reporting agencies (as defined in sec13 tion 603(f) of the Fair Credit Reporting Act

14 (15 U.S.C. 1681a(f)) the name of any non15 custodial parent who is delinquent in the pay16 ment of support, and the amount of overdue

17 support owed by such parent.

18 ‘‘(B) SAFEGUARDS.—Procedures ensuring

19 that, in carrying out subparagraph (A), infor20 mation with respect to a noncustodial parent is

21 reported—

22 ‘‘(i) only after such parent has been

23 afforded all due process required under

24 State law, including notice and a reason-
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•S 1867 IS

1 able opportunity to contest the accuracy of

2 such information; and

3 ‘‘(ii) only to an entity that has fur4 nished evidence satisfactory to the State

5 that the entity is a consumer reporting

6 agency (as so defined).’’.

7 SEC. 368. LIENS.

8 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

9 to read as follows:

10 ‘‘(4) LIENS.—Procedures under which—

11 ‘‘(A) liens arise by operation of law against

12 real and personal property for amounts of over13 due support owed by a noncustodial parent who

14 resides or owns property in the State; and

15 ‘‘(B) the State accords full faith and credit

16 to liens described in subparagraph (A) arising

17 in another State, without registration of the un18 derlying order.’’.

19 SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LI20 CENSES.

21 Section 466(a) (42 U.S.C. 666(a)), as amended by

22 sections 315, 317(a), 323, and 365 of this Act, is amended

23 by adding at the end the following:

24 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

25 LICENSES.—Procedures under which the State has
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1 (and uses in appropriate cases) authority to withhold

2 or suspend, or to restrict the use of driver’s licenses,

3 professional and occupational licenses, and rec4 reational licenses of individuals owing overdue sup5 port or failing, after receiving appropriate notice, to

6 comply with subpoenas or warrants relating to pa7 ternity or child support proceedings.’’.

8 SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF

9 CHILD SUPPORT.

10 (a) HHS CERTIFICATION PROCEDURE.—

11 (1) SECRETARIAL RESPONSIBILITY.—Section

12 452 (42 U.S.C. 652), as amended by section 345 of

13 this Act, is amended by adding at the end the fol14 lowing new subsection:

15 ‘‘(k)(1) If the Secretary receives a certification by a

16 State agency in accordance with the requirements of sec17 tion 454(31) that an individual owes arrearages of child

18 support in an amount exceeding $5,000, the Secretary

19 shall transmit such certification to the Secretary of State

20 for action (with respect to denial, revocation, or limitation

21 of passports) pursuant to section 370(b) of the Bipartisan

22 Welfare Reform Act of 1996.

23 ‘‘(2) The Secretary shall not be liable to an individual

24 for any action with respect to a certification by a State

25 agency under this section.’’.
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•S 1867 IS

1 (2) STATE CASE AGENCY RESPONSIBILITY.—

2 Section 454 (42 U.S.C. 654), as amended by sec3 tions 301(b), 303(a), 312(b), 313(a), 333, and

4 343(b) of this Act, is amended—

5 (A) by striking ‘‘and’’ at the end of para6 graph (29);

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

8 paragraph (30) and inserting ‘‘; and’’; and

9 (C) by adding after paragraph (30) the fol10 lowing new paragraph:

11 ‘‘(31) provide that the State agency will have in

12 effect a procedure for certifying to the Secretary, for

13 purposes of the procedure under section 452(k), de14 terminations that individuals owe arrearages of child

15 support in an amount exceeding $5,000, under

16 which procedure—

17 ‘‘(A) each individual concerned is afforded

18 notice of such determination and the con19 sequences thereof, and an opportunity to con20 test the determination; and

21 ‘‘(B) the certification by the State agency

22 is furnished to the Secretary in such format,

23 and accompanied by such supporting docu24 mentation, as the Secretary may require.’’.
363

•S 1867 IS

1 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

2 OF PASSPORTS.—

3 (1) IN GENERAL.—The Secretary of State shall,

4 upon certification by the Secretary of Health and

5 Human Services transmitted under section 452(k) of

6 the Social Security Act, refuse to issue a passport to

7 such individual, and may revoke, restrict, or limit a

8 passport issued previously to such individual.

9 (2) LIMIT ON LIABILITY.—The Secretary of

10 State shall not be liable to an individual for any ac11 tion with respect to a certification by a State agency

12 under this section.

13 (c) EFFECTIVE DATE.—This section and the amend14 ments made by this section shall become effective October

15 1, 1996.

16 SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCE17 MENT.

18 (a) AUTHORITY FOR INTERNATIONAL AGREE19 MENTS.—Part D of title IV, as amended by section 362(a)

20 of this Act, is amended by adding after section 459 the

21 following new section:

22 ‘‘SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCE23 MENT.

24 ‘‘(a) AUTHORITY FOR DECLARATIONS.—
364

•S 1867 IS

1 ‘‘(1) DECLARATION.—The Secretary of State,

2 with the concurrence of the Secretary of Health and

3 Human Services, is authorized to declare any foreign

4 country (or a political subdivision thereof) to be a

5 foreign reciprocating country if the foreign country

6 has established, or undertakes to establish, proce7 dures for the establishment and enforcement of du8 ties of support owed to obligees who are residents of

9 the United States, and such procedures are substan10 tially in conformity with the standards prescribed

11 under subsection (b).

12 ‘‘(2) REVOCATION.—A declaration with respect

13 to a foreign country made pursuant to paragraph

14 (1) may be revoked if the Secretaries of State and

15 Health and Human Services determine that—

16 ‘‘(A) the procedures established by the for17 eign nation regarding the establishment and en18 forcement of duties of support have been so

19 changed, or the foreign nation’s implementation

20 of such procedures is so unsatisfactory, that

21 such procedures do not meet the criteria for

22 such a declaration; or

23 ‘‘(B) continued operation of the declaration

24 is not consistent with the purposes of this part.
365

•S 1867 IS

1 ‘‘(3) FORM OF DECLARATION.—A declaration

2 under paragraph (1) may be made in the form of an

3 international agreement, in connection with an inter4 national agreement or corresponding foreign declara5 tion, or on a unilateral basis.

6 ‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE7 MENT PROCEDURES.—

8 ‘‘(1) MANDATORY ELEMENTS.—Child support

9 enforcement procedures of a foreign country which

10 may be the subject of a declaration pursuant to sub11 section (a)(1) shall include the following elements:

12 ‘‘(A) The foreign country (or political sub13 division thereof) has in effect procedures, avail14 able to residents of the United States—

15 ‘‘(i) for establishment of paternity,

16 and for establishment of orders of support

17 for children and custodial parents; and

18 ‘‘(ii) for enforcement of orders to pro19 vide support to children and custodial par20 ents, including procedures for collection

21 and appropriate distribution of support

22 payments under such orders.

23 ‘‘(B) The procedures described in subpara24 graph (A), including legal and administrative
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1 assistance, are provided to residents of the

2 United States at no cost.

3 ‘‘(C) An agency of the foreign country is

4 designated as a Central Authority responsible

5 for—

6 ‘‘(i) facilitating child support enforce7 ment in cases involving residents of the

8 foreign nation and residents of the United

9 States; and

10 ‘‘(ii) ensuring compliance with the

11 standards established pursuant to this sub12 section.

13 ‘‘(2) ADDITIONAL ELEMENTS.—The Secretary

14 of Health and Human Services and the Secretary of

15 State, in consultation with the States, may establish

16 such additional standards as may be considered nec17 essary to further the purposes of this section.

18 ‘‘(c) DESIGNATION OF UNITED STATES CENTRAL

19 AUTHORITY.—It shall be the responsibility of the Sec20 retary of Health and Human Services to facilitate child

21 support enforcement in cases involving residents of the

22 United States and residents of foreign nations that are

23 the subject of a declaration under this section, by activities

24 including—
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1 ‘‘(1) development of uniform forms and proce2 dures for use in such cases;

3 ‘‘(2) notification of foreign reciprocating coun4 tries of the State of residence of individuals sought

5 for support enforcement purposes, on the basis of in6 formation provided by the Federal Parent Locator

7 Service; and

8 ‘‘(3) such other oversight, assistance, and co9 ordination activities as the Secretary may find nec10 essary and appropriate.

11 ‘‘(d) EFFECT ON OTHER LAWS.—States may enter

12 into reciprocal arrangements for the establishment and en13 forcement of child support obligations with foreign coun14 tries that are not the subject of a declaration pursuant

15 to subsection (a), to the extent consistent with Federal

16 law.’’.

17 (b) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 301(b), 303(a),

19 312(b), 313(a), 333, 343(b), and 370(a)(2) of this Act,

20 is amended—

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

22 (30);

23 (2) by striking the period at the end of para24 graph (31) and inserting ‘‘; and’’; and
368

•S 1867 IS

1 (3) by adding after paragraph (31) the follow2 ing new paragraph:

3 ‘‘(32)(A) provide that any request for services

4 under this part by a foreign reciprocating country or

5 a foreign country with which the State has an ar6 rangement described in section 459A(d)(2) shall be

7 treated as a request by a State;

8 ‘‘(B) provide, at State option, notwithstanding

9 paragraph (4) or any other provision of this part,

10 for services under the plan for enforcement of a

11 spousal support order not described in paragraph

12 (4)(B) entered by such a country (or subdivision);

13 and

14 ‘‘(C) provide that no applications will be re15 quired from, and no costs will be assessed for such

16 services against, the foreign reciprocating country or

17 foreign obligee (but costs may at State option be as18 sessed against the obligor).’’.

19 SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

20 Section 466(a) (42 U.S.C. 666(a)), as amended by

21 sections 315, 317(a), 323, 365, and 369 of this Act, is

22 amended by adding at the end the following new para23 graph:

24 ‘‘(17) FINANCIAL INSTITUTION DATA

25 MATCHES.—
369

•S 1867 IS

1 ‘‘(A) IN GENERAL.—Procedures under

2 which the State agency shall enter into agree3 ments with financial institutions doing business

4 in the State—

5 ‘‘(i) to develop and operate, in coordi6 nation with such financial institutions, a

7 data match system, using automated data

8 exchanges to the maximum extent feasible,

9 in which each such financial institution is

10 required to provide for each calendar quar11 ter the name, record address, social secu12 rity number or other taxpayer identifica13 tion number, and other identifying infor14 mation for each noncustodial parent who

15 maintains an account at such institution

16 and who owes past-due support, as identi17 fied by the State by name and social secu18 rity number or other taxpayer identifica19 tion number; and

20 ‘‘(ii) in response to a notice of lien or

21 levy, encumber or surrender, as the case

22 may be, assets held by such institution on

23 behalf of any noncustodial parent who is

24 subject to a child support lien pursuant to

25 paragraph (4).
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•S 1867 IS

1 ‘‘(B) REASONABLE FEES.—The State

2 agency may pay a reasonable fee to a financial

3 institution for conducting the data match pro4 vided for in subparagraph (A)(i), not to exceed

5 the actual costs incurred by such financial insti6 tution.

7 ‘‘(C) LIABILITY.—A financial institution

8 shall not be liable under any Federal or State

9 law to any person—

10 ‘‘(i) for any disclosure of information

11 to the State agency under subparagraph

12 (A)(i);

13 ‘‘(ii) for encumbering or surrendering

14 any assets held by such financial institu15 tion in response to a notice of lien or levy

16 issued by the State agency as provided for

17 in subparagraph (A)(ii); or

18 ‘‘(iii) for any other action taken in

19 good faith to comply with the requirements

20 of subparagraph (A).

21 ‘‘(D) DEFINITIONS.—For purposes of this

22 paragraph—

23 ‘‘(i) FINANCIAL INSTITUTION.—The

24 term ‘financial institution’ means any Fed25 eral or State commercial savings bank, in-
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•S 1867 IS

1 cluding savings association or cooperative

2 bank, Federal- or State-chartered credit

3 union, benefit association, insurance com4 pany, safe deposit company, money-market

5 mutual fund, or any similar entity author6 ized to do business in the State; and

7 ‘‘(ii) ACCOUNT.—The term ‘account’

8 means a demand deposit account, checking

9 or negotiable withdrawal order account,

10 savings account, time deposit account, or

11 money-market mutual fund account.’’.

12 SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL

13 OR MATERNAL GRANDPARENTS IN CASES OF

14 MINOR PARENTS.

15 Section 466(a) (42 U.S.C. 666(a)), as amended by

16 sections 315, 317(a), 323, 365, 369, and 372 of this Act,

17 is amended by adding at the end the following new para18 graph:

19 ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA20 TERNAL OR MATERNAL GRANDPARENTS.—Proce21 dures under which, at the State’s option, any child

22 support order enforced under this part with respect

23 to a child of minor parents, if the custodial parents

24 of such child is receiving assistance under the State

25 program under part A, shall be enforceable, jointly
372

•S 1867 IS

1 and severally, against the parents of the noncusto2 dial parents of such child.’’.

3 SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF

4 CERTAIN DEBTS FOR THE SUPPORT OF A

5 CHILD.

6 (a) AMENDMENT TO TITLE 11 OF THE UNITED

7 STATES CODE.—Section 523(a) of title 11, United States

8 Code, is amended—

9 (1) in paragraph (16) by striking the period at

10 the end and inserting ‘‘; or’’,

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

12 ‘‘(17) to a State or municipality for assistance

13 provided by such State or municipality under a

14 State program funded under section 403 of the So15 cial Security Act to the extent that such assistance

16 is provided for the support of a child of the debtor.’’,

17 and

18 (3) in paragraph (5), by inserting ‘‘ or section

19 408’’ after ‘‘section 402(a)(26).

20 (b) AMENDMENT TO THE SOCIAL SECURITY ACT.—

21 Section 456(b) of the Social Security Act (42 U.S.C.

22 656(b)) is amended to read as follows:

23 ‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in

24 section 101 of title 11 of the United States Code) to a

25 State (as defined in such section) or municipality (as de-
373

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1 fined in such section) for assistance provided by such

2 State or municipality under a State program funded under

3 section 403 is not dischargeable under section 727, 1141,

4 1228(a), 1228(b), or 1328(b) of title 11 of the United

5 States Code to the extent that such assistance is provided

6 for the support of a child of the debtor (as defined in such

7 section).’’.

8 (c) APPLICATION OF AMENDMENTS.—The amend9 ments made by this section shall apply only with respect

10 to cases commenced under title 11 of the United States

11 Code after the effective date of this section.

12 Subtitle H—Medical Support

13 SEC. 376. CORRECTION TO ERISA DEFINITION OF MEDICAL

14 CHILD SUPPORT ORDER.

15 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em16 ployee Retirement Income Security Act of 1974 (29

17 U.S.C. 1169(a)(2)(B)) is amended—

18 (1) by striking ‘‘issued by a court of competent

19 jurisdiction’’;

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

21 (ii) and inserting a comma; and

22 (3) by adding, after and below clause (ii), the

23 following:

24 ‘‘if such judgment, decree, or order (I) is issued

25 by a court of competent jurisdiction or (II) is
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1 issued through an administrative process estab2 lished under State law and has the force and

3 effect of law under applicable State law.’’.

4 (b) EFFECTIVE DATE.—

5 (1) IN GENERAL.—The amendments made by

6 this section shall take effect on the date of the en7 actment of this Act.

8 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

9 JANUARY 1, 1997.—Any amendment to a plan re10 quired to be made by an amendment made by this

11 section shall not be required to be made before the

12 1st plan year beginning on or after January 1,

13 1997, if—

14 (A) during the period after the date before

15 the date of the enactment of this Act and be16 fore such 1st plan year, the plan is operated in

17 accordance with the requirements of the amend18 ments made by this section; and

19 (B) such plan amendment applies retro20 actively to the period after the date before the

21 date of the enactment of this Act and before

22 such 1st plan year.

23 A plan shall not be treated as failing to be operated

24 in accordance with the provisions of the plan merely
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•S 1867 IS

1 because it operates in accordance with this para2 graph.

3 SEC. 377. ENFORCEMENT OF ORDERS FOR HEALTH CARE

4 COVERAGE.

5 Section 466(a) (42 U.S.C. 666(a)), as amended by

6 sections 315, 317(a), 323, 365, 369, 372, and 373 of this

7 Act, is amended by adding at the end the following new

8 paragraph:

9 ‘‘(19) HEALTH CARE COVERAGE.—Procedures

10 under which all child support orders enforced pursu11 ant to this part shall include a provision for the

12 health care coverage of the child, and in the case in

13 which a noncustodial parent provides such coverage

14 and changes employment, and the new employer pro15 vides health care coverage, the State agency shall

16 transfer notice of the provision to the employer,

17 which notice shall operate to enroll the child in the

18 noncustodial parent’s health plan, unless the non19 custodial parent contests the notice.’’.
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1 Subtitle I—Enhancing Responsibil2 ity and Opportunity for Non3 Residential Parents

4 SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITA5 TION PROGRAMS.

6 Part D of title IV (42 U.S.C. 651–669) is amended

7 by adding at the end the following:

8 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA9 TION PROGRAMS.

10 ‘‘(a) IN GENERAL.—The Administration for Children

11 and Families shall make grants under this section to en12 able States to establish and administer programs to sup13 port and facilitate noncustodial parents’ access to and visi14 tation of their children, by means of activities including

15 mediation (both voluntary and mandatory), counseling,

16 education, development of parenting plans, visitation en17 forcement (including monitoring, supervision and neutral

18 drop-off and pickup), and development of guidelines for

19 visitation and alternative custody arrangements.

20 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

21 to be made to a State under this section for a fiscal year

22 shall be an amount equal to the lesser of—

23 ‘‘(1) 90 percent of State expenditures during

24 the fiscal year for activities described in subsection

25 (a); or
377

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1 ‘‘(2) the allotment of the State under sub2 section (c) for the fiscal year.

3 ‘‘(c) ALLOTMENTS TO STATES.—

4 ‘‘(1) IN GENERAL.—The allotment of a State

5 for a fiscal year is the amount that bears the same

6 ratio to the amount appropriated for grants under

7 this section for the fiscal year as the number of chil8 dren in the State living with only 1 biological parent

9 bears to the total number of such children in all

10 States.

11 ‘‘(2) MINIMUM ALLOTMENT.—The Administra12 tion for Children and Families shall adjust allot13 ments to States under paragraph (1) as necessary to

14 ensure that no State is allotted less than—

15 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

16 or

17 ‘‘(B) $100,000 for any succeeding fiscal

18 year.

19 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

20 FOR SIMILAR ACTIVITIES.—A State to which a grant is

21 made under this section may not use the grant to supplant

22 expenditures by the State for activities specified in sub23 section (a), but shall use the grant to supplement such

24 expenditures at a level at least equal to the level of such

25 expenditures for fiscal year 1995.
378

•S 1867 IS

1 ‘‘(e) STATE ADMINISTRATION.—Each State to which

2 a grant is made under this section—

3 ‘‘(1) may administer State programs funded

4 with the grant, directly or through grants to or con5 tracts with courts, local public agencies, or non-prof6 it private entities;

7 ‘‘(2) shall not be required to operate such pro8 grams on a statewide basis; and

9 ‘‘(3) shall monitor, evaluate, and report on such

10 programs in accordance with regulations prescribed

11 by the Secretary.’’.

12 Subtitle J—Effect of Enactment

13 SEC. 391. EFFECTIVE DATES.

14 (a) IN GENERAL.—Except as otherwise specifically

15 provided (but subject to subsections (b) and (c))—

16 (1) the provisions of this title requiring the en17 actment or amendment of State laws under section

18 466 of the Social Security Act, or revision of State

19 plans under section 454 of such Act, shall be effec20 tive with respect to periods beginning on and after

21 October 1, 1996; and

22 (2) all other provisions of this title shall become

23 effective upon the date of the enactment of this Act.
379

•S 1867 IS

1 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

2 provisions of this title shall become effective with respect

3 to a State on the later of—

4 (1) the date specified in this title, or

5 (2) the effective date of laws enacted by the leg6 islature of such State implementing such provisions,

7 but in no event later than the 1st day of the 1st calendar

8 quarter beginning after the close of the 1st regular session

9 of the State legislature that begins after the date of the

10 enactment of this Act. For purposes of the previous sen11 tence, in the case of a State that has a 2-year legislative

12 session, each year of such session shall be deemed to be

13 a separate regular session of the State legislature.

14 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

15 AMENDMENT.—A State shall not be found out of compli16 ance with any requirement enacted by this title if the State

17 is unable to so comply without amending the State con18 stitution until the earlier of—

19 (1) 1 year after the effective date of the nec20 essary State constitutional amendment; or

21 (2) 5 years after the date of the enactment of

22 this Act.
380

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1 TITLE IV—RESTRICTING WEL2 FARE AND PUBLIC BENEFITS

3 FOR ALIENS

4 SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERN5 ING WELFARE AND IMMIGRATION.

6 The Congress makes the following statements con7 cerning national policy with respect to welfare and immi8 gration:

9 (1) Self-sufficiency has been a basic principle of

10 United States immigration law since this country’s

11 earliest immigration statutes.

12 (2) It continues to be the immigration policy of

13 the United States that—

14 (A) aliens within the nation’s borders not

15 depend on public resources to meet their needs,

16 but rather rely on their own capabilities and the

17 resources of their families, their sponsors, and

18 private organizations, and

19 (B) the availability of public benefits not

20 constitute an incentive for immigration to the

21 United States.

22 (3) Despite the principle of self-sufficiency,

23 aliens have been applying for and receiving public

24 benefits from Federal, State, and local governments

25 at increasing rates.
381

•S 1867 IS

1 (4) Current eligibility rules for public assistance

2 and unenforceable financial support agreements have

3 proved wholly incapable of assuring that individual

4 aliens not burden the public benefits system.

5 (5) It is a compelling government interest to

6 enact new rules for eligibility and sponsorship agree7 ments in order to assure that aliens be self-reliant

8 in accordance with national immigration policy.

9 (6) It is a compelling government interest to re10 move the incentive for illegal immigration provided

11 by the availability of public benefits.

12 (7) With respect to the State authority to make

13 determinations concerning the eligibility of qualified

14 aliens for public benefits in this title, a State that

15 chooses to follow the Federal classification in deter16 mining the eligibility of such aliens for public assist17 ance shall be considered to have chosen the least re18 strictive means available for achieving the compelling

19 governmental interest of assuring that aliens be self20 reliant in accordance with national immigration pol21 icy.
382

•S 1867 IS

1 Subtitle A—Eligibility for Federal

2 Benefits

3 SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI4 GIBLE FOR FEDERAL PUBLIC BENEFITS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law and except as provided in subsection (b), an

7 alien who is not a qualified alien (as defined in section

8 431) is not eligible for any Federal public benefit (as de9 fined in subsection (c)).

10 (b) EXCEPTIONS.—

11 (1) Subsection (a) shall not apply with respect

12 to the following Federal public benefits:

13 (A) Emergency medical services under title

14 XIX or XXI of the Social Security Act.

15 (B) Short-term, non-cash, in-kind emer16 gency disaster relief.

17 (C)(i) Public health assistance for immuni18 zations.

19 (ii) Public health assistance for testing and

20 treatment of a serious communicable disease if

21 the Secretary of Health and Human Services

22 determines that it is necessary to prevent the

23 spread of such disease.

24 (D) Programs, services, or assistance (such

25 as soup kitchens, crisis counseling and interven-
383

•S 1867 IS

1 tion, and short-term shelter) specified by the

2 Attorney General, in the Attorney General’s

3 sole and unreviewable discretion after consulta4 tion with appropriate Federal agencies and de5 partments, which (i) deliver in-kind services at

6 the community level, including through public

7 or private nonprofit agencies; (ii) do not condi8 tion the provision of assistance, the amount of

9 assistance provided, or the cost of assistance

10 provided on the individual recipient’s income or

11 resources; and (iii) are necessary for the protec12 tion of life or safety.

13 (E) Programs for housing or community

14 development assistance or financial assistance

15 administered by the Secretary of Housing and

16 Urban Development, any program under title V

17 of the Housing Act of 1949, or any assistance

18 under section 306C of the Consolidated Farm

19 and Rural Development Act, to the extent that

20 the alien is receiving such a benefit on the date

21 of the enactment of this Act.

22 (F) The program of medical assistance

23 under title XIX and title XXI of the Social Se24 curity Act.
384

•S 1867 IS

1 (G) Assistance or benefits under the Na2 tional School Lunch Act or the Child Nutrition

3 Act of 1966.

4 (2) Subsection (a) shall not apply to any benefit

5 payable under title II of the Social Security Act to

6 an alien who is lawfully present in the United States

7 as determined by the Attorney General, to any bene8 fit if nonpayment of such benefit would contravene

9 an international agreement described in section 233

10 of the Social Security Act, to any benefit if nonpay11 ment would be contrary to section 202(t) of the So12 cial Security Act, or to any benefit payable under

13 title II of the Social Security Act to which entitle14 ment is based on an application filed in or before the

15 month in which this Act becomes law.

16 (3) Subsection (a) shall not apply—

17 (A) for up to 48 months if the alien can

18 demonstrate that (i) the alien has been battered

19 or subject to extreme cruelty in the United

20 States by a spouse or parent, or by a member

21 of the spouse or parent’s family residing in the

22 same household as the alien and the spouse or

23 parent consented or acquiesced to such battery

24 or cruelty, or (ii) the alien’s child has been bat25 tered or subject to extreme cruelty in the Unit-
385

•S 1867 IS

1 ed States by a spouse or parent of the alien

2 (without the active participation of the alien in

3 the battery or extreme cruelty), or by a member

4 of the spouse or parent’s family residing in the

5 same household as the alien when the spouse

6 or parent consented or acquiesced to and the

7 alien did not actively participate in such battery

8 or cruelty, and (iii) the need for the public ben9 efits applied for has a substantial connection to

10 the battery or cruelty described in subclause (I)

11 or (II); and

12 (B) for more than 48 months if the alien

13 can demonstrate that any battery or cruelty

14 under subparagraph (A) is ongoing, has led to

15 the issuance of an order of a judge or an ad16 ministrative law judge or a prior determination

17 of the Service, and that the need for such bene18 fits has a substantial connection to such battery

19 or cruelty.

20 (c) FEDERAL PUBLIC BENEFIT DEFINED.—

21 (1) Except as provided in paragraph (2), for

22 purposes of this title the term ‘‘Federal public bene23 fit’’ means—

24 (A) any grant, contract, loan, professional

25 license, or commercial license provided by an
386

•S 1867 IS

1 agency of the United States or by appropriated

2 funds of the United States; and

3 (B) any retirement, welfare, health, dis4 ability, public or assisted housing, post-second5 ary education, food assistance, unemployment

6 benefit, or any other similar benefit for which

7 payments or assistance are provided to an indi8 vidual, household, or family eligibility unit by

9 an agency of the United States or by appro10 priated funds of the United States.

11 (2) Such term shall not apply—

12 (A) to any contract, professional license, or

13 commercial license for a nonimmigrant whose

14 visa for entry is related to such employment in

15 the United States; or

16 (B) with respect to benefits for an alien

17 who as a work authorized nonimmigrant or as

18 an alien lawfully admitted for permanent resi19 dence under the Immigration and Nationality

20 Act qualified for such benefits and for whom

21 the United States under reciprocal treaty agree22 ments is required to pay benefits, as determined

23 by the Attorney General, after consultation with

24 the Secretary of State.
387

•S 1867 IS

1 SEC. 402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED

2 ALIENS FOR CERTAIN FEDERAL PROGRAMS.

3 (a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL

4 PROGRAMS.—

5 (1) IN GENERAL.—Notwithstanding any other

6 provision of law and except as provided in paragraph

7 (2), an alien who is a qualified alien (as defined in

8 section 431) is not eligible for any specified Federal

9 program (as defined in paragraph (3)).

10 (2) EXCEPTIONS.—

11 (A) TIME-LIMITED EXCEPTION FOR REFU12 GEES AND ASYLEES.—Paragraph (1) shall not

13 apply to an alien until 5 years after the date—

14 (i) an alien is admitted to the United

15 States as a refugee under section 207 of

16 the Immigration and Nationality Act;

17 (ii) an alien is granted asylum under

18 section 208 of such Act; or

19 (iii) an alien’s deportation is withheld

20 under section 243(h) of such Act.

21 (B) CERTAIN PERMANENT RESIDENT

22 ALIENS.—Paragraph (1) shall not apply to an

23 alien who—

24 (i) is lawfully admitted to the United

25 States for permanent residence under the

26 Immigration and Nationality Act; and
388

•S 1867 IS

1 (ii)(I) has worked 40 qualifying quar2 ters of coverage as defined under title II of

3 the Social Security Act or can be credited

4 with such qualifying quarters as provided

5 under section 436, and (II) did not receive

6 any Federal means-tested public benefit

7 (as defined in section 403(c)) during any

8 such quarter.

9 (C) VETERAN AND ACTIVE DUTY EXCEP10 TION.—Paragraph (1) shall not apply to an

11 alien who is lawfully residing in any State and

12 is—

13 (i) a veteran (as defined in section

14 101 of title 38, United States Code) with

15 a discharge characterized as an honorable

16 discharge and not on account of alienage,

17 (ii) on active duty (other than active

18 duty for training) in the Armed Forces of

19 the United States, or

20 (iii) the spouse or unmarried depend21 ent child of an individual described in

22 clause (i) or (ii).

23 (D) TRANSITION FOR ALIENS CURRENTLY

24 RECEIVING BENEFITS.—Paragraph (1) shall

25 apply to the eligibility of an alien for a program
389

•S 1867 IS

1 for months beginning on or after January 1,

2 1997, if, on the date of the enactment of this

3 Act, the alien is lawfully residing in any State

4 and is receiving benefits under such program on

5 the date of the enactment of this Act.

6 (E) FICA EXCEPTION.—Paragraph (1)

7 shall not apply to an alien if there has been

8 paid with respect to the self-employment income

9 or employment of the alien, or of a parent or

10 spouse of the alien, taxes under chapter 2 or

11 chapter 21 of the Internal Revenue Code of

12 1986 in each of 20 different calendar quarters.

13 (F) EXCEPTION FOR BATTERED WOMEN

14 AND CHILDREN.—Paragraph (1) shall not

15 apply—

16 (i) for up to 48 months if the alien

17 can demonstrate that (I) the alien has

18 been battered or subject to extreme cruelty

19 in the United States by a spouse or parent,

20 or by a member of the spouse or parent’s

21 family residing in the same household as

22 the alien and the spouse or parent con23 sented or acquiesced to such battery or

24 cruelty, or (II) the alien’s child has been

25 battered or subject to extreme cruelty in
390

•S 1867 IS

1 the United States by a spouse or parent of

2 the alien (without the active participation

3 of the alien in the battery or extreme cru4 elty), or by a member of the spouse or par5 ent’s family residing in the same household

6 as the alien when the spouse or parent

7 consented or acquiesced to and the alien

8 did not actively participate in such battery

9 or cruelty, and (III) the need for the public

10 benefits applied for has a substantial con11 nection to the battery or cruelty described

12 in this clause; and

13 (ii) for more than 48 months if the

14 alien can demonstrate that any battery or

15 cruelty under clause (i) is ongoing, has led

16 to the issuance of an order of a judge or

17 an administrative law judge or a prior de18 termination of the Service, and that need

19 for such benefits has a substantial connec20 tion to such battery or cruelty.

21 (G) SSI DISABILITY EXCEPTION.—Para22 graph (1) shall not apply to an alien who has

23 not attained 18 years of age and is eligible by

24 reason of disability for supplemental security
391

•S 1867 IS

1 income benefits under title XVI of the Social

2 Security Act.

3 (H) FOOD STAMP EXCEPTION FOR CHIL4 DREN.—Paragraph (1) shall not apply to the

5 eligibility of an alien who has not attained 18

6 years of age for the food stamp program under

7 paragraph (3)(B).

8 (3) SPECIFIED FEDERAL PROGRAM DEFINED.—

9 For purposes of this title, the term ‘‘specified Fed10 eral program’’ means any of the following:

11 (A) SSI.—The supplemental security in12 come program under title XVI of the Social Se13 curity Act.

14 (B) FOOD STAMPS.—The food stamp pro15 gram as defined in section 3(h) of the Food

16 Stamp Act of 1977.

17 (b) LIMITED ELIGIBILITY FOR DESIGNATED FED18 ERAL PROGRAMS.—

19 (1) IN GENERAL.—Notwithstanding any other

20 provision of law and except as provided in section

21 403 and paragraph (2), a State is authorized to de22 termine the eligibility of an alien who is a qualified

23 alien (as defined in section 431) for any designated

24 Federal program (as defined in paragraph (3)).
392

•S 1867 IS

1 (2) EXCEPTIONS.—Qualified aliens under this

2 paragraph shall be eligible for any designated Fed3 eral program.

4 (A) TIME-LIMITED EXCEPTION FOR REFU5 GEES AND ASYLEES.—

6 (i) An alien who is admitted to the

7 United States as a refugee under section

8 207 of the Immigration and Nationality

9 Act until 5 years after the date of an

10 alien’s entry into the United States.

11 (ii) An alien who is granted asylum

12 under section 208 of such Act until 5 years

13 after the date of such grant of asylum.

14 (iii) An alien whose deportation is

15 being withheld under section 243(h) of

16 such Act until 5 years after such withhold17 ing.

18 (B) CERTAIN PERMANENT RESIDENT

19 ALIENS.—An alien who—

20 (i) is lawfully admitted to the United

21 States for permanent residence under the

22 Immigration and Nationality Act; and

23 (ii)(I) has worked 40 qualifying quar24 ters of coverage as defined under title II of

25 the Social Security Act or can be credited
393

•S 1867 IS

1 with such qualifying quarters as provided

2 under section 436, and (II) did not receive

3 any Federal means-tested public benefit

4 (as defined in section 403(c)) during any

5 such quarter.

6 (C) VETERAN AND ACTIVE DUTY EXCEP7 TION.—An alien who is lawfully residing in any

8 State and is—

9 (i) a veteran (as defined in section

10 101 of title 38, United States Code) with

11 a discharge characterized as an honorable

12 discharge and not on account of alienage,

13 (ii) on active duty (other than active

14 duty for training) in the Armed Forces of

15 the United States, or

16 (iii) the spouse or unmarried depend17 ent child of an individual described in

18 clause (i) or (ii).

19 (D) TRANSITION FOR THOSE CURRENTLY

20 RECEIVING BENEFITS.—An alien who on the

21 date of the enactment of this Act is lawfully re22 siding in any State and is receiving benefits

23 under such program on the date of the enact24 ment of this Act shall continue to be eligible to

25 receive such benefits until January 1, 1997.
394

•S 1867 IS

1 (E) FICA EXCEPTION.—Paragraph (1)

2 shall not apply to an alien if there has been

3 paid with respect to the self-employment income

4 or employment of the alien, or of a parent or

5 spouse of the alien, taxes under chapter 2 or

6 chapter 21 of the Internal Revenue Code of

7 1986 in each of 20 different calendar quarters.

8 (F) TIME-LIMITED EXCEPTION FOR BAT9 TERED WOMEN AND CHILDREN.—Paragraph

10 (1) shall not apply—

11 (i) for up to 48 months if the alien

12 can demonstrate that (I) the alien has

13 been battered or subject to extreme cruelty

14 in the United States by a spouse or parent,

15 or by a member of the spouse or parent’s

16 family residing in the same household as

17 the alien and the spouse or parent con18 sented or acquiesced to such battery or

19 cruelty, or (II) the alien’s child has been

20 battered or subject to extreme cruelty in

21 the United States by a spouse or parent of

22 the alien (without the active participation

23 of the alien in the battery or extreme cru24 elty), or by a member of the spouse or par25 ent’s family residing in the same household
395

•S 1867 IS

1 as the alien when the spouse or parent

2 consented or acquiesced to and the alien

3 did not actively participate in such battery

4 or cruelty, and (III) the need for the public

5 benefits applied for has a substantial con6 nection to the battery or cruelty described

7 in subclause (I) or (II); and

8 (ii) for more than 48 months if the

9 alien can demonstrate that any battery or

10 cruelty under clause (i) is ongoing, has led

11 to the issuance of an order of a judge or

12 an administrative law judge or a prior de13 termination of the Service, and that the

14 need for such benefits has a substantial

15 connection to such battery or cruelty.

16 (G) SSI DISABILITY EXCEPTION.—Para17 graph (1) shall not apply to an alien who has

18 not attained 18 years of age and is eligible by

19 reason of disability for supplemental security

20 income benefits under title XVI of the Social

21 Security Act.

22 (3) DESIGNATED FEDERAL PROGRAM DE23 FINED.—For purposes of this title, the term ‘‘des24 ignated Federal program’’ means any of the follow25 ing:
396

•S 1867 IS

1 (A) TEMPORARY ASSISTANCE FOR NEEDY

2 FAMILIES.—The program of block grants to

3 States for temporary assistance for needy fami4 lies under part A of title IV of the Social Secu5 rity Act.

6 (B) SOCIAL SERVICES BLOCK GRANT.—

7 The program of block grants to States for so8 cial services under title XX of the Social Secu9 rity Act.

10 SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

11 ALIENS FOR FEDERAL MEANS-TESTED PUB12 LIC BENEFIT.

13 (a) IN GENERAL.—Notwithstanding any other provi14 sion of law and except as provided in subsection (b), an

15 alien who is a qualified alien (as defined in section 431)

16 and who enters the United States on or after the date

17 of the enactment of this Act is not eligible for any Federal

18 means-tested public benefit (as defined in subsection (c))

19 for a period of five years beginning on the date of the

20 alien’s entry into the United States with a status within

21 the meaning of the term ‘‘qualified alien’’.

22 (b) EXCEPTIONS.—The limitation under subsection

23 (a) shall not apply to the following aliens:

24 (1) EXCEPTION FOR REFUGEES AND

25 ASYLEES.—
397

•S 1867 IS

1 (A) An alien who is admitted to the United

2 States as a refugee under section 207 of the

3 Immigration and Nationality Act.

4 (B) An alien who is granted asylum under

5 section 208 of such Act.

6 (C) An alien whose deportation is being

7 withheld under section 243(h) of such Act.

8 (2) VETERAN AND ACTIVE DUTY EXCEPTION.—

9 An alien who is lawfully residing in any State and

10 is—

11 (A) a veteran (as defined in section 101 of

12 title 38, United States Code) with a discharge

13 characterized as an honorable discharge and not

14 on account of alienage,

15 (B) on active duty (other than active duty

16 for training) in the Armed Forces of the United

17 States, or

18 (C) the spouse or unmarried dependent

19 child of an individual described in subparagraph

20 (A) or (B).

21 (3) FICA EXCEPTION.—An alien if there has

22 been paid with respect to the self-employment in23 come or employment of the alien, or of a parent or

24 spouse of the alien, taxes under chapter 2 or chapter
398

•S 1867 IS

1 21 of the Internal Revenue Code of 1986 in each of

2 20 different calendar quarters.

3 (4) EXCEPTION FOR BATTERED WOMEN AND

4 CHILDREN.—An alien—

5 (A) for up to 48 months if the alien can

6 demonstrate that (i) the alien has been battered

7 or subject to extreme cruelty in the United

8 States by a spouse or parent, or by a member

9 of the spouse or parent’s family residing in the

10 same household as the alien and the spouse or

11 parent consented or acquiesced to such battery

12 or cruelty, or (ii) the alien’s child has been bat13 tered or subject to extreme cruelty in the Unit14 ed States by a spouse or parent of the alien

15 (without the active participation of the alien in

16 the battery or extreme cruelty), or by a member

17 of the spouse or parent’s family residing in the

18 same household as the alien when the spouse or

19 parent consented or acquiesced to and the alien

20 did not actively participate in such battery or

21 cruelty, and (iii) the need for the public benefits

22 applied for has a substantial connection to the

23 battery or cruelty described in clause (i) or (ii);

24 and
399

•S 1867 IS

1 (B) for more than 48 months if the alien

2 can demonstrate that any battery or cruelty

3 under subparagraph (A) is ongoing, has led to

4 the issuance of an order of a judge or an ad5 ministrative law judge or a prior determination

6 of the Service, and that need for such benefits

7 has a substantial connection to such battery or

8 cruelty.

9 (5) SSI DISABILITY EXCEPTION.—An alien who

10 has not attained 18 years of age and is eligible by

11 reason of disability for supplemental security income

12 benefits under title XVI of the Social Security Act.

13 (6) FOOD STAMP EXCEPTION FOR CHILDREN.—

14 An alien who has not attained 18 years of age only

15 for purposes of eligibility for the food stamp pro16 gram as defined in section 3(h) of the Food Stamp

17 Act of 1977.

18 (c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE19 FINED.—

20 (1) Except as provided in paragraph (2), for

21 purposes of this title, the term ‘‘Federal means-test22 ed public benefit’’ means a public benefit (including

23 cash, medical, housing, and food assistance and so24 cial services) of the Federal Government in which

25 the eligibility of an individual, household, or family
400

•S 1867 IS

1 eligibility unit for benefits, or the amount of such

2 benefits, or both are determined on the basis of in3 come, resources, or financial need of the individual,

4 household, or unit.

5 (2) Such term does not include the following:

6 (A) Emergency medical services under title

7 XIX or XXI of the Social Security Act.

8 (B) Short-term, non-cash, in-kind emer9 gency disaster relief.

10 (C) Assistance or benefits under the Na11 tional School Lunch Act.

12 (D) Assistance or benefits under the Child

13 Nutrition Act of 1966.

14 (E)(i) Public health assistance for immuni15 zations.

16 (ii) Public health assistance for testing and

17 treatment of a serious communicable disease if

18 the Secretary of Health and Human Services

19 determines that it is necessary to prevent the

20 spread of such disease.

21 (F) Payments for foster care and adoption

22 assistance under part B of title IV of the Social

23 Security Act for a child who would, in the ab24 sence of subsection (a), be eligible to have such

25 payments made on the child’s behalf under such
401

•S 1867 IS

1 part, but only if the foster or adoptive parent

2 or parents of such child are not described under

3 subsection (a).

4 (G) Programs, services, or assistance (such

5 as soup kitchens, crisis counseling and interven6 tion, and short-term shelter) specified by the

7 Attorney General, in the Attorney General’s

8 sole and unreviewable discretion after consulta9 tion with appropriate Federal agencies and de10 partments, which (i) deliver in-kind services at

11 the community level, including through public

12 or private nonprofit agencies; (ii) do not condi13 tion the provision of assistance, the amount of

14 assistance provided, or the cost of assistance

15 provided on the individual recipient’s income or

16 resources; and (iii) are necessary for the protec17 tion of life or safety.

18 (H) Programs of student assistance under

19 titles IV, V, IX, and X of the Higher Education

20 Act of 1965.

21 (I) Means-tested programs under the Ele22 mentary and Secondary Education Act of 1965.

23 (J) The program of medical assistance

24 under title XIX and title XXI of the Social Se25 curity Act.
402

•S 1867 IS

1 SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

2 (a) NOTIFICATION.—Each Federal agency that ad3 ministers a program to which section 401, 402, or 403

4 applies shall, directly or through the States, post informa5 tion and provide general notification to the public and to

6 program recipients of the changes regarding eligibility for

7 any such program pursuant to this title.

8 (b) INFORMATION REPORTING UNDER TITLE IV OF

9 THE SOCIAL SECURITY ACT.—Part A of title IV of the

10 Social Security Act is amended by inserting the following

11 new section after section 411:

12 ‘‘SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFOR13 MATION.

14 ‘‘Each State to which a grant is made under section

15 403 of the Social Security Act shall, at least 4 times annu16 ally and upon request of the Immigration and Naturaliza17 tion Service, furnish the Immigration and Naturalization

18 Service with the name and address of, and other identify19 ing information on, any individual who the State knows

20 is unlawfully in the United States.’’.

21 (c) SSI.—Section 1631(e) of such Act (42 U.S.C.

22 1383(e)) is amended—

23 (1) by redesignating paragraphs (6) and (7) in24 serted by sections 206(d)(2) and 206(f)(1) of the

25 Social Security Independence and Programs Im26 provement Act of 1994 (Public Law 103–296; 108
403

•S 1867 IS

1 Stat. 1514, 1515) as paragraphs (7) and (8), re2 spectively; and

3 (2) by adding at the end the following new

4 paragraph:

5 ‘‘(9) Notwithstanding any other provision of

6 law, the Commissioner shall, at least 4 times annu7 ally and upon request of the Immigration and Natu8 ralization Service (hereafter in this paragraph re9 ferred to as the ‘Service’), furnish the Service with

10 the name and address of, and other identifying in11 formation on, any individual who the Commissioner

12 knows is unlawfully in the United States, and shall

13 ensure that each agreement entered into under sec14 tion 1616(a) with a State provides that the State

15 shall furnish such information at such times with re16 spect to any individual who the State knows is un17 lawfully in the United States.’’.

18 (d) INFORMATION REPORTING FOR HOUSING PRO19 GRAMS.—Title I of the United States Housing Act of 1937

20 (42 U.S.C. 1437 et seq.), as amended by this Act, is fur21 ther amended by adding at the end the following new sec22 tion:
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1 ‘‘SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCE2 MENT AND OTHER AGENCIES.

3 ‘‘Notwithstanding any other provision of law, the Sec4 retary shall, at least 4 times annually and upon request

5 of the Immigration and Naturalization Service (hereafter

6 in this section referred to as the ‘Service’), furnish the

7 Service with the name and address of, and other identify8 ing information on, any individual who the Secretary

9 knows is unlawfully in the United States, and shall ensure

10 that each contract for assistance entered into under sec11 tion 6 or 8 of this Act with a public housing agency pro12 vides that the public housing agency shall furnish such

13 information at such times with respect to any individual

14 who the public housing agency knows is unlawfully in the

15 United States.’’.

16 Subtitle B—Eligibility for State

17 and Local Public Benefits Pro18 grams

19 SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR

20 NONIMMIGRANTS INELIGIBLE FOR STATE

21 AND LOCAL PUBLIC BENEFITS.

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law and except as provided in subsections (b) and

24 (d), an alien who is not described under a paragraph of

25 this subsection is not eligible for any State or local public

26 benefit (as defined in subsection (c)):
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1 (1) A qualified alien (as defined in section 431).

2 (2) A nonimmigrant under the Immigration and

3 Nationality Act.

4 (3) An alien who is paroled into the United

5 States under section 212(d)(5) of such Act for less

6 than one year.

7 (4) An alien—

8 (A) for up to 48 months if the alien can

9 demonstrate that (i) the alien has been battered

10 or subject to extreme cruelty in the United

11 States by a spouse or parent, or by a member

12 of the spouse or parent’s family residing in the

13 same household as the alien and the spouse or

14 parent consented or acquiesced to such battery

15 or cruelty, or (ii) the alien’s child has been bat16 tered or subject to extreme cruelty in the Unit17 ed States by a spouse or parent of the alien

18 (without the active participation of the alien in

19 the battery or extreme cruelty), or by a member

20 of the spouse or parent’s family residing in the

21 same household as the alien when the spouse or

22 parent consented or acquiesced to and the alien

23 did not actively participate in such battery or

24 cruelty, and (iii) the need for the public benefits

25 applied for has a substantial connection to the
406

•S 1867 IS

1 battery or cruelty described in clause (i) or (ii),

2 and

3 (B) for more than 48 months if the alien

4 can demonstrate that any battery or cruelty

5 under subparagraph (A) is ongoing, has led to

6 the issuance of an order of a judge or an ad7 ministrative law judge or a prior determination

8 of the Service, and that the need for such bene9 fits has a substantial connection to such battery

10 or cruelty.

11 (b) EXCEPTIONS.—Subsection (a) shall not apply

12 with respect to the following State or local public benefits:

13 (1) Emergency medical services under title XIX

14 or XXI of the Social Security Act.

15 (2) Short-term, noncash, in-kind emergency dis16 aster relief.

17 (3)(A) Public health assistance for immuniza18 tions.

19 (B) Public health assistance for testing and

20 treatment of a serious communicable disease if the

21 Secretary of Health and Human Services determines

22 that it is necessary to prevent the spread of such

23 disease.

24 (4) Programs, services, or assistance (such as

25 soup kitchens, crisis counseling and intervention,
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1 and short-term shelter) specified by the Attorney

2 General, in the Attorney General’s sole and

3 unreviewable discretion after consultation with ap4 propriate Federal agencies and departments, which

5 (A) deliver in-kind services at the community level,

6 including through public or private nonprofit agen7 cies; (B) do not condition the provision of assistance,

8 the amount of assistance provided, or the cost of as9 sistance provided on the individual recipient’s in10 come or resources; and (C) are necessary for the

11 protection of life or safety.

12 (c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.—

13 (1) Except as provided in paragraph (2), for

14 purposes of this subtitle the term ‘‘State or local

15 public benefit’’ means—

16 (A) any grant, contract, loan, professional

17 license, or commercial license provided by an

18 agency of a State or local government or by ap19 propriated funds of a State or local govern20 ment; and

21 (B) any retirement, welfare, health, dis22 ability, public or assisted housing, post-second23 ary education, food assistance, unemployment

24 benefit, or any other similar benefit for which

25 payments or assistance are provided to an indi-
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1 vidual, household, or family eligibility unit by

2 an agency of a State or local government or by

3 appropriated funds of a State or local govern4 ment.

5 (2) Such term shall not apply—

6 (A) to any contract, professional license, or

7 commercial license for a nonimmigrant whose

8 visa for entry is related to such employment in

9 the United States; or

10 (B) with respect to benefits for an alien

11 who as a work authorized nonimmigrant or as

12 an alien lawfully admitted for permanent resi13 dence under the Immigration and Nationality

14 Act qualified for such benefits and for whom

15 the United States under reciprocal treaty agree16 ments is required to pay benefits, as determined

17 by the Secretary of State, after consultation

18 with the Attorney General.

19 (d) STATE AUTHORITY TO PROVIDE FOR ELIGI20 BILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL PUB21 LIC BENEFITS.—A State may provide that an alien who

22 is not lawfully present in the United States is eligible for

23 any State or local public benefit for which such alien would

24 otherwise be ineligible under subsection (a) only through

25 the enactment of a State law after the date of the enact-
409

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1 ment of this Act which affirmatively provides for such eli2 gibility.

3 SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF

4 QUALIFIED ALIENS FOR STATE PUBLIC BENE5 FITS.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law and except as provided in subsection (b), a

8 State is authorized to determine the eligibility for any

9 State public benefits (as defined in subsection (c) of an

10 alien who is a qualified alien (as defined in section 431),

11 a nonimmigrant under the Immigration and Nationality

12 Act, or an alien who is paroled into the United States

13 under section 212(d)(5) of such Act for less than one year.

14 (b) EXCEPTIONS.—Qualified aliens under this sub15 section shall be eligible for any State public benefits.

16 (1) TIME-LIMITED EXCEPTION FOR REFUGEES

17 AND ASYLEES.—

18 (A) An alien who is admitted to the United

19 States as a refugee under section 207 of the

20 Immigration and Nationality Act until 5 years

21 after the date of an alien’s entry into the Unit22 ed States.

23 (B) An alien who is granted asylum under

24 section 208 of such Act until 5 years after the

25 date of such grant of asylum.
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1 (C) An alien whose deportation is being

2 withheld under section 243(h) of such Act until

3 5 years after such withholding.

4 (2) CERTAIN PERMANENT RESIDENT ALIENS.—

5 An alien who—

6 (A) is lawfully admitted to the United

7 States for permanent residence under the Im8 migration and Nationality Act; and

9 (B)(i) has worked 40 qualifying quarters

10 of coverage as defined under title II of the So11 cial Security Act or can be credited with such

12 qualifying quarters as provided under section

13 436, and (ii) did not receive any Federal

14 means-tested public benefit (as defined in sec15 tion 403(c)) during any such quarter.

16 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

17 An alien who is lawfully residing in any State and

18 is—

19 (A) a veteran (as defined in section 101 of

20 title 38, United States Code) with a discharge

21 characterized as an honorable discharge and not

22 on account of alienage,

23 (B) on active duty (other than active duty

24 for training) in the Armed Forces of the United

25 States, or
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1 (C) the spouse or unmarried dependent

2 child of an individual described in subparagraph

3 (A) or (B).

4 (4) TRANSITION FOR THOSE CURRENTLY RE5 CEIVING BENEFITS.—An alien who on the date of

6 the enactment of this Act is lawfully residing in any

7 State and is receiving benefits on the date of the en8 actment of this Act shall continue to be eligible to

9 receive such benefits until January 1, 1997.

10 (5) EXCEPTION FOR BATTERED WOMEN AND

11 CHILDREN.—An alien—

12 (A) for up to 48 months if the alien can

13 demonstrate that (i) the alien has been battered

14 or subject to extreme cruelty in the United

15 States by a spouse or parent, or by a member

16 of the spouse or parent’s family residing in the

17 same household as the alien and the spouse or

18 parent consented or acquiesced to such battery

19 or cruelty, or (ii) the alien’s child has been bat20 tered or subject to extreme cruelty in the Unit21 ed States by a spouse or parent of the alien

22 (without the active participation of the alien in

23 the battery or extreme cruelty), or by a member

24 of the spouse or parent’s family residing in the

25 same household as the alien when the spouse or
412

•S 1867 IS

1 parent consented or acquiesced to and the alien

2 did not actively participate in such battery or

3 cruelty, and (iii) the need for the public benefits

4 applied for has a substantial connection to the

5 battery or cruelty described in clause (i) or (ii);

6 and

7 (B) for more than 48 months if the alien

8 can demonstrate that any battery or cruelty

9 under subparagraph (A) is ongoing, has led to

10 the issuance of an order of a judge or an ad11 ministrative law judge or a prior determination

12 of the Service, and that the need for such bene13 fits has a substantial connection to such battery

14 or cruelty.

15 (c) STATE PUBLIC BENEFITS DEFINED.—The term

16 ‘‘State public benefits’’ means any means-tested public

17 benefit of a State or political subdivision of a State under

18 which the State or political subdivision specifies the stand19 ards for eligibility, and does not include any Federal public

20 benefit.
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1 Subtitle C—Attribution of Income

2 and Affidavits of Support

3 SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR’S INCOME

4 AND RESOURCES TO ALIEN FOR PURPOSES

5 OF MEDICAID ELIGIBILITY.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, in determining the eligibility and the amount

8 of benefits of an alien (other than an alien who has not

9 attained 18 years of age or an alien who is pregnant) for

10 the program of medical assistance under title XIX and

11 title XXI of the Social Security Act, the income and re12 sources of the alien shall be deemed to include the follow13 ing:

14 (1) The income and resources of any person

15 who executed an affidavit of support pursuant to

16 section 213A of the Immigration and Nationality

17 Act (as added by section 423) on behalf of such

18 alien.

19 (2) The income and resources of the spouse (if

20 any) of the person.

21 (b) APPLICATION.—Subsection (a) shall apply with

22 respect to an alien (other than an alien who has not at23 tained 18 years of age or an alien who is pregnant) until

24 such time as the alien—
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1 (1) achieves United States citizenship through

2 naturalization pursuant to chapter 2 of title III of

3 the Immigration and Nationality Act; or

4 (2)(A) has worked 40 qualifying quarters of

5 coverage as defined under title II of the Social Secu6 rity Act or can be credited with such qualifying

7 quarters as provided under section 436, and (B) did

8 not receive any Federal means-tested public benefit

9 (as defined in section 403(c)) during any such quar10 ter.

11 (c) REVIEW OF INCOME AND RESOURCES OF ALIEN

12 UPON REAPPLICATION.—Whenever an alien (other than

13 an alien who has not attained 18 years of age or an alien

14 who is pregnant) is required to reapply for benefits under

15 any Federal means-tested public benefits program, the ap16 plicable agency shall review the income and resources at17 tributed to the alien under subsection (a).

18 SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR AT19 TRIBUTION OF SPONSOR’S INCOME AND RE20 SOURCES TO THE ALIEN WITH RESPECT TO

21 STATE PROGRAMS.

22 (a) OPTIONAL APPLICATION TO STATE PROGRAMS.—

23 Except as provided in subsection (b), in determining the

24 eligibility and the amount of benefits of an alien for any

25 State public benefits (as defined in section 412(c)), the
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•S 1867 IS

1 State or political subdivision that offers the benefits is au2 thorized to provide that the income and resources of the

3 alien shall be deemed to include—

4 (1) the income and resources of any individual

5 who executed an affidavit of support pursuant to

6 section 213A of the Immigration and Nationality

7 Act (as added by section 423) on behalf of such

8 alien, and

9 (2) the income and resources of the spouse (if

10 any) of the individual.

11 (b) EXCEPTIONS.—Subsection (a) shall not apply

12 with respect to the following State public benefits:

13 (1) Emergency medical services.

14 (2) Short-term, noncash, in-kind emergency dis15 aster relief.

16 (3) Programs comparable to assistance or bene17 fits under the National School Lunch Act.

18 (4) Programs comparable to assistance or bene19 fits under the Child Nutrition Act of 1966.

20 (5)(A) Public health assistance for immuniza21 tions.

22 (B) Public health assistance for testing and

23 treatment of a serious communicable disease if the

24 appropriate chief State health official determines
416

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1 that it is necessary to prevent the spread of such

2 disease.

3 (6) Payments for foster care and adoption as4 sistance.

5 (7) Programs, services, or assistance (such as

6 soup kitchens, crisis counseling and intervention,

7 and short-term shelter) specified by the Attorney

8 General of a State, after consultation with appro9 priate agencies and departments, which (A) deliver

10 in-kind services at the community level, including

11 through public or private nonprofit agencies; (B) do

12 not condition the provision of assistance, the amount

13 of assistance provided, or the cost of assistance pro14 vided on the individual recipient’s income or re15 sources; and (C) are necessary for the protection of

16 life or safety.

17 SEC. 423. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

18 SUPPORT.

19 (a) IN GENERAL.—Title II of the Immigration and

20 Nationality Act is amended by inserting after section 213

21 the following new section:

22 ‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

23 ‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit

24 of support may be accepted by the Attorney General or

25 by any consular officer to establish that an alien is not
417

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1 excludable as a public charge under section 212(a)(4) un2 less such affidavit is executed as a contract—

3 ‘‘(A) which is legally enforceable against the

4 sponsor by the sponsored alien, the Federal Govern5 ment, and by any State (or any political subdivision

6 of such State) which provides any means-tested pub7 lic benefits program, but not later than 10 years

8 after the alien last receives any such benefit;

9 ‘‘(B) in which the sponsor agrees to financially

10 support the alien, so that the alien will not become

11 a public charge; and

12 ‘‘(C) in which the sponsor agrees to submit to

13 the jurisdiction of any Federal or State court for the

14 purpose of actions brought under subsection (e)(2).

15 ‘‘(2) A contract under paragraph (1) shall be enforce16 able with respect to benefits provided to the alien until

17 such time as the alien achieves United States citizenship

18 through naturalization pursuant to chapter 2 of title III.

19 ‘‘(b) FORMS.—Not later than 90 days after the date

20 of enactment of this section, the Attorney General, in con21 sultation with the Secretary of State and the Secretary

22 of Health and Human Services, shall formulate an affida23 vit of support consistent with the provisions of this sec24 tion.
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1 ‘‘(c) REMEDIES.—Remedies available to enforce an

2 affidavit of support under this section include any or all

3 of the remedies described in sections 3201, 3203, 3204,

4 or 3205 of title 28, United States Code, as well as an

5 order for specific performance and payment of legal fees

6 and other costs of collection, and include corresponding

7 remedies available under State law. A Federal agency may

8 seek to collect amounts owed under this section in accord9 ance with the provisions of subchapter II of chapter 37

10 of title 31, United States Code.

11 ‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—

12 ‘‘(1) IN GENERAL.—The sponsor shall notify

13 the Attorney General and the State in which the

14 sponsored alien is currently resident within 30 days

15 of any change of address of the sponsor during the

16 period specified in subsection (a)(2).

17 ‘‘(2) PENALTY.—Any person subject to the re18 quirement of paragraph (1) who fails to satisfy such

19 requirement shall be subject to a civil penalty of—

20 ‘‘(A) not less than $250 or more than

21 $2,000, or

22 ‘‘(B) if such failure occurs with knowledge

23 that the alien has received any means-tested

24 public benefit, not less than $2,000 or more

25 than $5,000.
419

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1 ‘‘(e) REIMBURSEMENT OF GOVERNMENT EX2 PENSES.—(1)(A) Upon notification that a sponsored alien

3 has received any benefit under any means-tested public

4 benefits program, the appropriate Federal, State, or local

5 official shall request reimbursement by the sponsor in the

6 amount of such assistance.

7 ‘‘(B) The Attorney General, in consultation with the

8 Secretary of Health and Human Services, shall prescribe

9 such regulations as may be necessary to carry out sub10 paragraph (A).

11 ‘‘(2) If within 45 days after requesting reimburse12 ment, the appropriate Federal, State, or local agency has

13 not received a response from the sponsor indicating a will14 ingness to commence payments, an action may be brought

15 against the sponsor pursuant to the affidavit of support.

16 ‘‘(3) If the sponsor fails to abide by the repayment

17 terms established by such agency, the agency may, within

18 60 days of such failure, bring an action against the spon19 sor pursuant to the affidavit of support.

20 ‘‘(4) No cause of action may be brought under this

21 subsection later than 10 years after the alien last received

22 any benefit under any means-tested public benefits pro23 gram.

24 ‘‘(5) If, pursuant to the terms of this subsection, a

25 Federal, State, or local agency requests reimbursement
420

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1 from the sponsor in the amount of assistance provided,

2 or brings an action against the sponsor pursuant to the

3 affidavit of support, the appropriate agency may appoint

4 or hire an individual or other person to act on behalf of

5 such agency acting under the authority of law for purposes

6 of collecting any moneys owed. Nothing in this subsection

7 shall preclude any appropriate Federal, State, or local

8 agency from directly requesting reimbursement from a

9 sponsor for the amount of assistance provided, or from

10 bringing an action against a sponsor pursuant to an affi11 davit of support.

12 ‘‘(f) DEFINITIONS.—For the purposes of this sec13 tion—

14 ‘‘(1) SPONSOR.—The term ‘sponsor’ means an

15 individual who—

16 ‘‘(A) is a citizen or national of the United

17 States or an alien who is lawfully admitted to

18 the United States for permanent residence;

19 ‘‘(B) has attained the age of 18 years;

20 ‘‘(C) is domiciled in any of the 50 States

21 or the District of Columbia; and

22 ‘‘(D) is the person petitioning for the ad23 mission of the alien under section 204.

24 ‘‘(2) MEANS-TESTED PUBLIC BENEFITS PRO25 GRAM.—The term ‘means-tested public benefits pro-
421

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1 gram’ means a program of public benefits (including

2 cash, medical, housing, and food assistance and so3 cial services) of the Federal Government or of a

4 State or political subdivision of a State in which the

5 eligibility of an individual, household, or family eligi6 bility unit for benefits under the program, or the

7 amount of such benefits, or both are determined on

8 the basis of income, resources, or financial need of

9 the individual, household, or unit.’’.

10 (b) CLERICAL AMENDMENT.—The table of contents

11 of such Act is amended by inserting after the item relating

12 to section 213 the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

13 (c) EFFECTIVE DATE.—Subsection (a) of section

14 213A of the Immigration and Nationality Act, as inserted

15 by subsection (a) of this section, shall apply to affidavits

16 of support executed on or after a date specified by the

17 Attorney General, which date shall not be earlier than 60

18 days (and not later than 90 days) after the date the Attor19 ney General formulates the form for such affidavits under

20 subsection (b) of such section.

21 (d) BENEFITS NOT SUBJECT TO REIMBURSE22 MENT.—Requirements for reimbursement by a sponsor for

23 benefits provided to a sponsored alien pursuant to an affi24 davit of support under section 213A of the Immigration
422

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1 and Nationality Act shall not apply with respect to the

2 following:

3 (1) Emergency medical services under title XIX

4 or XXI of the Social Security Act.

5 (2) Short-term, noncash, in-kind emergency dis6 aster relief.

7 (3) Assistance or benefits under the National

8 School Lunch Act.

9 (4) Assistance or benefits under the Child Nu10 trition Act of 1966.

11 (5)(A) Public health assistance for immuniza12 tions.

13 (B) Public health assistance for testing and

14 treatment of a serious communicable disease if the

15 Secretary of Health and Human Services determines

16 that it is necessary to prevent the spread of such

17 disease.

18 (6) Payments for foster care and adoption as19 sistance under part B of title IV of the Social Secu20 rity Act for a child, but only if the foster or adoptive

21 parent or parents of such child are not otherwise in22 eligible pursuant to section 403 of this Act.

23 (7) Programs, services, or assistance (such as

24 soup kitchens, crisis counseling and intervention,

25 and short-term shelter) specified by the Attorney
423

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1 General, in the Attorney General’s sole and

2 unreviewable discretion after consultation with ap3 propriate Federal agencies and departments, which

4 (A) deliver in-kind services at the community level,

5 including through public or private nonprofit agen6 cies; (B) do not condition the provision of assistance,

7 the amount of assistance provided, or the cost of as8 sistance provided on the individual recipient’s in9 come or resources; and (C) are necessary for the

10 protection of life or safety.

11 (8) Programs of student assistance under titles

12 IV, V, IX, and X of the Higher Education Act of

13 1965.

14 SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

15 Section 484(b) of the Higher Education Act of 1965

16 (20 U.S.C. 1091(b)) is amended by adding at the end the

17 following new paragraph:

18 ‘‘(6) Notwithstanding sections 427(a)(2)(A),

19 428B(a), 428C(b)(4)(A), and 464(c)(1)(E), or any

20 other provision of this title, a student who is an

21 alien lawfully admitted for permanent residence

22 under the Immigration and Nationality Act shall not

23 be eligible for a loan under this title unless the loan

24 is endorsed and cosigned by the alien’s sponsor

25 under section 213A of the Immigration and Nation-
424

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1 ality Act or by another creditworthy individual who

2 is a United States citizen.’’.

3 Subtitle D—General Provisions

4 SEC. 431. DEFINITIONS.

5 (a) IN GENERAL.—Except as otherwise provided in

6 this title, the terms used in this title have the same mean7 ing given such terms in section 101(a) of the Immigration

8 and Nationality Act.

9 (b) QUALIFIED ALIEN.—For purposes of this title,

10 the term ‘‘qualified alien’’ means an alien who, at the time

11 the alien applies for, receives, or attempts to receive a

12 Federal public benefit, is—

13 (1) an alien who is lawfully admitted for perma14 nent residence under the Immigration and National15 ity Act,

16 (2) an alien who is granted asylum under sec17 tion 208 of such Act,

18 (3) a refugee who is admitted to the United

19 States under section 207 of such Act,

20 (4) an alien who is paroled into the United

21 States under section 212(d)(5) of such Act for a pe22 riod of at least 1 year,

23 (5) an alien whose deportation is being withheld

24 under section 243(h) of such Act, or
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1 (6) an alien who is granted conditional entry

2 pursuant to section 203(a)(7) of such Act as in ef3 fect prior to April 1, 1980.

4 SEC. 432. REAPPLICATION FOR SSI BENEFITS.

5 (a) APPLICATION AND NOTICE.—Notwithstanding

6 any other provision of law, in the case of an individual

7 who is receiving supplemental security income benefits

8 under title XVI of the Social Security Act as of the date

9 of the enactment of this Act and whose eligibility for such

10 benefits would terminate by reason of the application of

11 section 402(a)(D), the Commissioner of Social Security

12 shall so notify the individual not later than 90 days after

13 the date of the enactment of this Act.

14 (b) REAPPLICATION.—

15 (1) IN GENERAL.—Not later than 120 days

16 after the date of the enactment of this Act, each in17 dividual notified pursuant to subsection (a) who de18 sires to reapply for benefits under title XVI of the

19 Social Security Act shall reapply to the Commis20 sioner of Social Security.

21 (2) DETERMINATION OF ELIGIBILITY.—Not

22 later than 1 year after the date of the enactment of

23 this Act, the Commissioner of Social Security shall

24 determine the eligibility of each individual who re-
426

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1 applies for benefits under paragraph (1) pursuant to

2 the procedures of such title XVI.

3 SEC. 433. VERIFICATION OF ELIGIBILITY FOR FEDERAL

4 PUBLIC BENEFITS.

5 (a) IN GENERAL.—Not later than 18 months after

6 the date of the enactment of this Act, the Attorney Gen7 eral of the United States, after consultation with the Sec8 retary of Health and Human Services, shall promulgate

9 regulations requiring verification that a person applying

10 for a Federal public benefit (as defined in section 401(c)),

11 to which the limitation under section 401 applies, is a

12 qualified alien and is eligible to receive such benefit. Such

13 regulations shall, to the extent feasible, require that infor14 mation requested and exchanged be similar in form and

15 manner to information requested and exchanged under

16 section 1137 of the Social Security Act.

17 (b) STATE COMPLIANCE.—Not later than 24 months

18 after the date the regulations described in subsection (a)

19 are adopted, a State that administers a program that pro20 vides a Federal public benefit shall have in effect a ver21 ification system that complies with the regulations.

22 (c) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated such sums as may be

24 necessary to carry out the purpose of this section.
427

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1 SEC. 434. STATUTORY CONSTRUCTION.

2 (a) LIMITATION.—

3 (1) Nothing in this title may be construed as an

4 entitlement or a determination of an individual’s eli5 gibility or fulfillment of the requisite requirements

6 for any Federal, State, or local governmental pro7 gram, assistance, or benefits. For purposes of this

8 title, eligibility relates only to the general issue of

9 eligibility or ineligibility on the basis of alienage.

10 (2) Nothing in this title may be construed as

11 addressing alien eligibility for a basic public edu12 cation as determined by the Supreme Court of the

13 United States under Plyler v. Doe (457 U.S.

14 202)(1982).

15 (b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—

16 This title does not apply to any Federal, State, or local

17 governmental program, assistance, or benefits provided to

18 an alien under any program of foreign assistance as deter19 mined by the Secretary of State in consultation with the

20 Attorney General.

21 (c) SEVERABILITY.—If any provision of this title or

22 the application of such provision to any person or cir23 cumstance is held to be unconstitutional, the remainder

24 of this title and the application of the provisions of such

25 to any person or circumstance shall not be affected there26 by.
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•S 1867 IS

1 SEC. 435. COMMUNICATION BETWEEN STATE AND LOCAL

2 GOVERNMENT AGENCIES AND THE IMMIGRA3 TION AND NATURALIZATION SERVICE.

4 Notwithstanding any other provision of Federal,

5 State, or local law, no State or local government entity

6 may be prohibited, or in any way restricted, from sending

7 to or receiving from the Immigration and Naturalization

8 Service information regarding the immigration status,

9 lawful or unlawful, of an alien in the United States.

10 SEC. 436. QUALIFYING QUARTERS.

11 For purposes of this title, in determining the number

12 of qualifying quarters of coverage under title II of the So13 cial Security Act an alien shall be credited with—

14 (1) all of the qualifying quarters of coverage as

15 defined under title II of the Social Security Act

16 worked by a parent of such alien while the alien was

17 under age 18 if the parent did not receive any Fed18 eral means-tested public benefit (as defined in sec19 tion 403(c)) during any such quarter, and

20 (2) all of the qualifying quarters worked by a

21 spouse of such alien during their marriage if the

22 spouse did not receive any Federal means-tested

23 public benefit (as defined in section 403(c)) during

24 any such quarter and the alien remains married to

25 such spouse or such spouse is deceased.
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1 SEC. 437. TITLE INAPPLICABLE TO PROGRAMS SPECIFIED

2 BY ATTORNEY GENERAL.

3 Notwithstanding any other provision of this title, this

4 title or any provision of this title shall not apply to pro5 grams, services, or assistance (such as soup kitchens, cri6 sis counseling and intervention, and short term shelter)

7 specified by the Attorney General, in the Attorney Gen8 eral’s sole and unreviewable discretion after consultation

9 with appropriate Federal agencies and departments, which

10 (1) deliver services at the community level, including

11 through public or private nonprofit agencies; (2) do not

12 condition the provision of assistance, the amount of assist13 ance provided, or the cost of assistance provided on the

14 individual recipient’s income or resources; and (3) are nec15 essary for the protection of life, safety or the public health.

16 SEC. 438. TITLE INAPPLICABLE TO PROGRAMS OF NON17 PROFIT CHARITABLE ORGANIZATIONS.

18 Notwithstanding any other provision of this title, this

19 title or any provision of this title shall not apply to pro20 grams, services, or assistance of a nonprofit charitable or21 ganization, regardless of whether such programs, services,

22 or assistance are funded, in whole or in part, by the Fed23 eral Government or the government of any State or politi24 cal subdivision of a State.
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1 Subtitle E—Conforming

2 Amendments

3 SEC. 441. CONFORMING AMENDMENTS RELATING TO AS4 SISTED HOUSING.

5 (a) LIMITATIONS ON ASSISTANCE.—Section 214 of

6 the Housing and Community Development Act of 1980

7 (42 U.S.C. 1436a) is amended—

8 (1) by striking ‘‘Secretary of Housing and

9 Urban Development’’ each place it appears and in10 serting ‘‘applicable Secretary’’;

11 (2) in subsection (b), by inserting after ‘‘Na12 tional Housing Act,’’ the following: ‘‘the direct loan

13 program under section 502 of the Housing Act of

14 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or

15 542 of such Act, subtitle A of title III of the Cran16 ston-Gonzalez National Affordable Housing Act,’’;

17 (3) in paragraphs (2) through (6) of subsection

18 (d), by striking ‘‘Secretary’’ each place it appears

19 and inserting ‘‘applicable Secretary’’;

20 (4) in subsection (d), in the matter following

21 paragraph (6), by striking ‘‘the term ‘Secretary’ ’’

22 and inserting ‘‘the term ‘applicable Secretary’ ’’; and

23 (5) by adding at the end the following new sub24 section:
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•S 1867 IS

1 ‘‘(h) For purposes of this section, the term ‘applicable

2 Secretary’ means—

3 ‘‘(1) the Secretary of Housing and Urban De4 velopment, with respect to financial assistance ad5 ministered by such Secretary and financial assist6 ance under subtitle A of title III of the Cranston7 Gonzalez National Affordable Housing Act; and

8 ‘‘(2) the Secretary of Agriculture, with respect

9 to financial assistance administered by such Sec10 retary.’’.

11 (b) CONFORMING AMENDMENTS.—Section 501(h) of

12 the Housing Act of 1949 (42 U.S.C. 1471(h)) is amend13 ed—

14 (1) by striking ‘‘(1)’’;

15 (2) by striking ‘‘by the Secretary of Housing

16 and Urban Development’’; and

17 (3) by striking paragraph (2).

18 TITLE V—REDUCTIONS IN FED19 ERAL GOVERNMENT POSI20 TIONS

21 SEC. 501. REDUCTIONS.

22 (a) DEFINITIONS.—As used in this section:

23 (1) APPROPRIATE EFFECTIVE DATE.—The term

24 ‘‘appropriate effective date’’, used with respect to a

25 Department referred to in this section, means the
432

•S 1867 IS

1 date on which all provisions of this Act (other than

2 title II) that the Department is required to carry

3 out, and amendments and repeals made by such Act

4 to provisions of Federal law that the Department is

5 required to carry out, are effective.

6 (2) COVERED ACTIVITY.—The term ‘‘covered

7 activity’’, used with respect to a Department re8 ferred to in this section, means an activity that the

9 Department is required to carry out under—

10 (A) a provision of this Act (other than title

11 II); or

12 (B) a provision of Federal law that is

13 amended or repealed by this Act (other than

14 title II).

15 (b) REPORTS.—

16 (1) CONTENTS.—Not later than December 31,

17 1995, each Secretary referred to in paragraph (2)

18 shall prepare and submit to the relevant committees

19 described in paragraph (3) a report containing—

20 (A) the determinations described in sub21 section (c);

22 (B) appropriate documentation in support

23 of such determinations; and

24 (C) a description of the methodology used

25 in making such determinations.
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1 (2) SECRETARY.—The Secretaries referred to in

2 this paragraph are—

3 (A) the Secretary of Agriculture;

4 (B) the Secretary of Education;

5 (C) the Secretary of Labor;

6 (D) the Secretary of Housing and Urban

7 Development; and

8 (E) the Secretary of Health and Human

9 Services.

10 (3) RELEVANT COMMITTEES.—The relevant

11 Committees described in this paragraph are the fol12 lowing:

13 (A) With respect to each Secretary de14 scribed in paragraph (2), the Committee on

15 Government Reform and Oversight of the

16 House of Representatives and the Committee

17 on Governmental Affairs of the Senate.

18 (B) With respect to the Secretary of Agri19 culture, the Committee on Agriculture and the

20 Committee on Economic and Educational Op21 portunities of the House of Representatives and

22 the Committee on Agriculture, Nutrition, and

23 Forestry of the Senate.

24 (C) With respect to the Secretary of Edu25 cation, the Committee on Economic and Edu-
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•S 1867 IS

1 cational Opportunities of the House of Rep2 resentatives and the Committee on Labor and

3 Human Resources of the Senate.

4 (D) With respect to the Secretary of

5 Labor, the Committee on Economic and Edu6 cational Opportunities of the House of Rep7 resentatives and the Committee on Labor and

8 Human Resources of the Senate.

9 (E) With respect to the Secretary of Hous10 ing and Urban Development, the Committee on

11 Banking and Financial Services of the House of

12 Representatives and the Committee on Bank13 ing, Housing, and Urban Affairs of the Senate.

14 (F) With respect to the Secretary of

15 Health and Human Services, the Committee on

16 Economic and Educational Opportunities of the

17 House of Representatives, the Committee on

18 Labor and Human Resources of the Senate, the

19 Committee on Ways and Means of the House of

20 Representatives, and the Committee on Finance

21 of the Senate.

22 (4) REPORT ON CHANGES.—Not later than De23 cember 31, 1996, and each December 31 thereafter,

24 each Secretary referred to in paragraph (2) shall

25 prepare and submit to the relevant Committees de-
435

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1 scribed in paragraph (3), a report concerning any

2 changes with respect to the determinations made

3 under subsection (c) for the year in which the report

4 is being submitted.

5 (c) DETERMINATIONS.—Not later than October 1,

6 1996, each Secretary referred to in subsection (b)(2) shall

7 determine—

8 (1) the number of full-time equivalent positions

9 required by the Department headed by such Sec10 retary to carry out the covered activities of the De11 partment, as of the day before the date of enactment

12 of this Act;

13 (2) the number of such positions required by

14 the Department to carry out the activities, as of the

15 appropriate effective date for the Department; and

16 (3) the difference obtained by subtracting the

17 number referred to in paragraph (2) from the num18 ber referred to in paragraph (1).

19 (d) ACTIONS.—Each Secretary referred to in sub20 section (b)(2) shall take such actions as may be necessary,

21 including reduction in force actions, consistent with sec22 tions 3502 and 3595 of title 5, United States Code, to

23 reduce the number of positions of personnel of the Depart24 ment—
436

•S 1867 IS

1 (1) not later than 30 days after the appropriate

2 effective date for the Department involved, by at

3 least 50 percent of the difference referred to in sub4 section (c)(3); and

5 (2) not later than 13 months after such appro6 priate effective date, by at least the remainder of

7 such difference (after the application of paragraph

8 (1)).

9 (e) CONSISTENCY.—

10 (1) EDUCATION.—The Secretary of Education

11 shall carry out this section in a manner that enables

12 the Secretary to meet the requirements of this sec13 tion.

14 (2) LABOR.—The Secretary of Labor shall

15 carry out this section in a manner that enables the

16 Secretary to meet the requirements of this section.

17 (3) HEALTH AND HUMAN SERVICES.—The Sec18 retary of Health and Human Services shall carry out

19 this section in a manner that enables the Secretary

20 to meet the requirements of this section and sections

21 502 and 503.

22 (f) CALCULATION.—In determining, under subsection

23 (c), the number of full-time equivalent positions required

24 by a Department to carry out a covered activity, a Sec25 retary referred to in subsection (b)(2) shall include the
437

•S 1867 IS

1 number of such positions occupied by personnel carrying

2 out program functions or other functions (including budg3 etary, legislative, administrative, planning, evaluation, and

4 legal functions) related to the activity.

5 (g) GENERAL ACCOUNTING OFFICE REPORT.—Not

6 later than July 1, 1996, the Comptroller General of the

7 United States shall prepare and submit to the committees

8 described in subsection (b)(3), a report concerning the de9 terminations made by each Secretary under subsection (c).

10 Such report shall contain an analysis of the determina11 tions made by each Secretary under subsection (c) and

12 a determination as to whether further reductions in full13 time equivalent positions are appropriate.

14 SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

15 (a) IN GENERAL.—The Secretary of Health and

16 Human Services shall reduce the Federal workforce within

17 the Department of Health and Human Services by an

18 amount equal to the sum of—

19 (1) 75 percent of the full-time equivalent posi20 tions at such Department that relate to any direct

21 spending program, or any program funded through

22 discretionary spending, that has been converted into

23 a block grant program under this Act and the

24 amendments made by this Act; and
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•S 1867 IS

1 (2) an amount equal to 75 percent of that por2 tion of the total full-time equivalent departmental

3 management positions at such Department that

4 bears the same relationship to the amount appro5 priated for the programs referred to in paragraph

6 (1) as such amount relates to the total amount ap7 propriated for use by such Department.

8 (b) REDUCTIONS IN THE DEPARTMENT OF HEALTH

9 AND HUMAN SERVICES.—Notwithstanding any other pro10 vision of this Act, the Secretary of Health and Human

11 Services shall take such actions as may be necessary, in12 cluding reductions in force actions, consistent with sec13 tions 3502 and 3595 of title 5, United States Code, to

14 reduce the full-time equivalent positions within the De15 partment of Health and Human Services—

16 (1) by 245 full-time equivalent positions related

17 to the program converted into a block grant under

18 the amendment made by section 103; and

19 (2) by 60 full-time equivalent managerial posi20 tions in the Department.

21 SEC. 503. REDUCING PERSONNEL IN WASHINGTON, D.C.

22 AREA.

23 In making reductions in full-time equivalent posi24 tions, the Secretary of Health and Human Services is en25 couraged to reduce personnel in the Washington, D.C.,
439

•S 1867 IS

1 area office (agency headquarters) before reducing field

2 personnel.

3 TITLE VI—REFORM OF PUBLIC

4 HOUSING

5 SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE

6 AND PUBLIC ASSISTANCE PROGRAMS.

7 Title I of the United States Housing Act of 1937 (42

8 U.S.C. 1437 et seq.) is amended by adding at the end

9 the following new section:

10 ‘‘SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE

11 AND PUBLIC ASSISTANCE PROGRAMS.

12 ‘‘(a) IN GENERAL.—If the benefits of a family are

13 reduced under a Federal, State, or local law relating to

14 welfare or a public assistance program for the failure of

15 any member of the family to perform an action required

16 under the law or program, the family may not, for the

17 duration of the reduction, receive any increased assistance

18 under this Act as the result of a decrease in the income

19 of the family to the extent that the decrease in income

20 is the result of the benefits reduction.

21 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply in

22 any case in which the benefits of a family are reduced be23 cause the welfare or public assistance program to which

24 the Federal, State, or local law relates limits the period
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•S 1867 IS

1 during which benefits may be provided under the pro2 gram.’’.

3 SEC. 602. FRAUD UNDER MEANS-TESTED WELFARE AND

4 PUBLIC ASSISTANCE PROGRAMS.

5 (a) IN GENERAL.—If an individual’s benefits under

6 a Federal, State, or local law relating to a means-tested

7 welfare or a public assistance program are reduced be8 cause of an act of fraud by the individual under the law

9 or program, the individual may not, for the duration of

10 the reduction, receive an increased benefit under any other

11 means-tested welfare or public assistance program for

12 which Federal funds are appropriated as a result of a de13 crease in the income of the individual (determined under

14 the applicable program) attributable to such reduction.

15 (b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS

16 FOR WHICH FEDERAL FUNDS ARE APPROPRIATED.—For

17 purposes of subsection (a), the term ‘‘means-tested welfare

18 or public assistance program for which Federal funds are

19 appropriated’’ includes the food stamp program under the

20 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any

21 program of public or assisted housing under title I of the

22 United States Housing Act of 1937 (42 U.S.C. 1437 et

23 seq.), and State programs funded under part A of title

24 IV of the Social Security Act (42 U.S.C. 601 et seq.).
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1 SEC. 603. EFFECTIVE DATE.

2 This title and the amendment made by this title shall

3 become effective on the date of enactment of this Act.

4 TITLE VII—CHILD CARE

5 SEC. 701. SHORT TITLE AND REFERENCES.

6 (a) SHORT TITLE.—This title may be cited as the

7 ‘‘Child Care and Development Block Grant Amendments

8 of 1995’’.

9 (b) REFERENCES.—Except as otherwise expressly

10 provided, whenever in this title an amendment or repeal

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

12 a section or other provision, the reference shall be consid13 ered to be made to a section or other provision of the Child

14 Care and Development Block Grant Act of 1990 (42

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

16 SEC. 702. GOALS.

17 (a) GOALS.—Section 658A (42 U.S.C. 9801 note) is

18 amended—

19 (1) in the section heading by inserting ‘‘AND

20 GOALS’’ after ‘‘TITLE’’;

21 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

22 ‘‘This’’; and

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

24 ‘‘(b) GOALS.—The goals of this subchapter are—

25 ‘‘(1) to allow each State maximum flexibility in

26 developing child care programs and policies that best
442

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1 suit the needs of children and parents within such

2 State;

3 ‘‘(2) to promote parental choice to empower

4 working parents to make their own decisions on the

5 child care that best suits their family’s needs;

6 ‘‘(3) to encourage States to provide consumer

7 education information to help parents make in8 formed choices about child care;

9 ‘‘(4) to assist States to provide child care to

10 parents trying to achieve independence from public

11 assistance; and

12 ‘‘(5) to assist States in implementing the

13 health, safety, licensing, and registration standards

14 established in State regulations.’’.

15 SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND EN16 TITLEMENT AUTHORITY.

17 (a) IN GENERAL.—Section 658B (42 U.S.C. 9858)

18 is amended to read as follows:

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

20 ‘‘There is authorized to be appropriated to carry out

21 this subchapter $1,000,000,000 for each of the fiscal

22 years 1996 through 2002.’’.

23 (b) SOCIAL SECURITY ACT.—Part A of title IV of

24 the Social Security Act (as amended by section 103 of this
443

•S 1867 IS

1 Act) is amended by redesignating section 417 as section

2 418 and inserting after section 416 the following:

3 ‘‘SEC. 417. FUNDING FOR CHILD CARE.

4 ‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—

5 ‘‘(1) GENERAL ENTITLEMENT.—Subject to the

6 amount appropriated under paragraph (3), each

7 State shall, for the purpose of providing child care

8 assistance, be entitled to payments under a grant

9 under this subsection for a fiscal year in an amount

10 equal to the greatest of—

11 ‘‘(A) the sum of—

12 ‘‘(i) the total amount required to be

13 paid to the State under former section 403

14 for fiscal year 1994 with respect to

15 amounts expended for child care under sec16 tion 402(g) of this Act (as such section

17 was in effect before October 1, 1995); and

18 ‘‘(ii) such total amount with respect

19 to amounts expended for child care under

20 section 403(i) of this Act (as so in effect);

21 or

22 ‘‘(B) the sum described in subparagraph

23 (A) for fiscal year 1995; or

24 ‘‘(C) the average of the total amounts re25 quired to be paid to the State for fiscal years
444

•S 1867 IS

1 1992 through 1994 under the sections referred

2 to in subparagraph (A).

3 ‘‘(2) REMAINDER.—

4 ‘‘(A) GRANTS.—The Secretary shall use

5 any amounts appropriated for a fiscal year

6 under paragraph (3), and remaining after the

7 reservation described in paragraph (5) and

8 after grants are awarded under paragraph (1),

9 to make grants to States under this paragraph.

10 ‘‘(B) AMOUNT.—Subject to subparagraph

11 (C), the amount of a grant awarded to a State

12 for a fiscal year under this paragraph shall be

13 based on the formula used for determining the

14 amount of Federal payments to the State under

15 section 403(n) (as such section was in effect be16 fore October 1, 1995).

17 ‘‘(C) MATCHING REQUIREMENT.—The Sec18 retary shall pay to each eligible State in a fiscal

19 year an amount, under a grant under subpara20 graph (A), equal to the Federal medical assist21 ance percentage for such State for fiscal year

22 1995 (as defined in section 1905(b)) of so

23 much of the expenditures by the State for child

24 care in such year as exceed the State set-aside

25 for such State under subsection (a)(1) for such
445

•S 1867 IS

1 year and the amount of State expenditures in

2 fiscal year 1995 that equal the non-Federal

3 share for the programs described in subpara4 graphs (A), (B) and (C) of paragraph (1).

5 ‘‘(3) APPROPRIATION.—There are authorized to

6 be appropriated, and there are appropriated, to

7 carry out this section—

8 ‘‘(A) $1,967,000,000 for fiscal year 1997;

9 ‘‘(B) $2,067,000,000 for fiscal year 1998;

10 ‘‘(C) $2,167,000,000 for fiscal year 1999;

11 ‘‘(D) $2,367,000,000 for fiscal year 2000;

12 ‘‘(E) $2,567,000,000 for fiscal year 2001;

13 and

14 ‘‘(F) $2,767,000,000 for fiscal year 2002.

15 ‘‘(4) REDISTRIBUTION.—With respect to any

16 fiscal year, if the Secretary determines that amounts

17 under any grant awarded to a State under this sub18 section for such fiscal year will not be used by such

19 State for carrying out the purpose for which the

20 grant is made, the Secretary shall make such

21 amounts available for carrying out such purpose to

22 1 or more other States which apply for such funds

23 to the extent the Secretary determines that such

24 other States will be able to use such additional

25 amounts for carrying out such purpose. Such avail-
446

•S 1867 IS

1 able amounts shall be redistributed to a State pursu2 ant to section 402(i) (as such section was in effect

3 before October 1, 1995) by substituting ‘the number

4 of children residing in all States applying for such

5 funds’ for ‘the number of children residing in the

6 United States in the second preceding fiscal year’.

7 Any amount made available to a State from an ap8 propriation for a fiscal year in accordance with the

9 preceding sentence shall, for purposes of this part,

10 be regarded as part of such State’s payment (as de11 termined under this subsection) for such year.

12 ‘‘(5) INDIAN TRIBES.—The Secretary shall re13 serve not more than 1 percent of the aggregate

14 amount appropriated to carry out this section in

15 each fiscal year for payments to Indian tribes and

16 tribal organizations.

17 ‘‘(b) USE OF FUNDS.—

18 ‘‘(1) IN GENERAL.—Amounts received by a

19 State under this section shall only be used to provide

20 child care assistance.

21 ‘‘(2) USE FOR CERTAIN POPULATIONS.—A

22 State shall ensure that not less than 70 percent of

23 the total amount of funds received by the State in

24 a fiscal year under this section are used to provide

25 child care assistance to families who are receiving
447

•S 1867 IS

1 assistance under a State program under this part,

2 families who are attempting through work activities

3 to transition off of such assistance program, and

4 families who are at risk of becoming dependent on

5 such assistance program.

6 ‘‘(c) APPLICATION OF CHILD CARE AND DEVELOP7 MENT BLOCK GRANT ACT of 1990.—Notwithstanding any

8 other provision of law, amounts provided to a State under

9 this section shall be transferred to the lead agency under

10 the Child Care and Development Block Grant Act of 1990,

11 integrated by the State into the programs established by

12 the State under such Act, and be subject to requirements

13 and limitations of such Act.

14 ‘‘(d) DEFINITION.—As used in this section, the term

15 ‘State’ means each of the 50 States or the District of Co16 lumbia.’’.

17 SEC. 704. LEAD AGENCY.

18 Section 658D(b) (42 U.S.C. 9858b(b)) is amended—

19 (1) in paragraph (1)—

20 (A) in subparagraph (A), by striking

21 ‘‘State’’ the first place that such appears and

22 inserting ‘‘governmental or nongovernmental’’;

23 and

24 (B) in subparagraph (C), by inserting

25 ‘‘with sufficient time and Statewide distribution
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1 of the notice of such hearing,’’ after ‘‘hearing in

2 the State’’; and

3 (2) in paragraph (2), by striking the second

4 sentence.

5 SEC. 705. APPLICATION AND PLAN.

6 Section 658E (42 U.S.C. 9858c) is amended—

7 (1) in subsection (b)—

8 (A) by striking ‘‘implemented—’’ and all

9 that follows through ‘‘(2)’’ and inserting ‘‘im10 plemented’’; and

11 (B) by striking ‘‘for subsequent State

12 plans’’;

13 (2) in subsection (c)—

14 (A) in paragraph (2)—

15 (i) in subparagraph (A)—

16 (I) in clause (i) by striking

17 ‘‘, other than through assistance pro18 vided under paragraph (3)(C),’’; and

19 (II) by striking ‘‘except’’ and all

20 that follows through ‘‘1992’’, and in21 serting ‘‘and provide a detailed de22 scription of the procedures the State

23 will implement to carry out the re24 quirements of this subparagraph’’;

25 (ii) in subparagraph (B)—
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1 (I) by striking ‘‘Provide assur2 ances’’ and inserting ‘‘Certify’’; and

3 (II) by inserting before the pe4 riod at the end ‘‘and provide a de5 tailed description of such procedures’’;

6 (iii) in subparagraph (C)—

7 (I) by striking ‘‘Provide assur8 ances’’ and inserting ‘‘Certify’’; and

9 (II) by inserting before the pe10 riod at the end ‘‘and provide a de11 tailed description of how such record

12 is maintained and is made available’’;

13 (iv) by amending subparagraph (D) to

14 read as follows:

15 ‘‘(D) CONSUMER EDUCATION INFORMA16 TION.—Certify that the State will collect and

17 disseminate to parents of eligible children and

18 the general public, consumer education informa19 tion that will promote informed child care

20 choices.’’;

21 (v) in subparagraph (E), to read as

22 follows:

23 ‘‘(E) COMPLIANCE WITH STATE LICENSING

24 REQUIREMENTS.—
450

•S 1867 IS

1 ‘‘(i) IN GENERAL.—Certify that the

2 State has in effect licensing requirements

3 applicable to child care services provided

4 within the State, and provide a detailed de5 scription of such requirements and of how

6 such requirements are effectively enforced.

7 Nothing in the preceding sentence shall be

8 construed to require that licensing require9 ments be applied to specific types of pro10 viders of child care services.

11 ‘‘(ii) INDIAN TRIBES AND TRIBAL OR12 GANIZATIONS.—In lieu of any licensing

13 and regulatory requirements applicable

14 under State and local law, the Secretary,

15 in consultation with Indian tribes and trib16 al organizations, shall develop minimum

17 child care standards (that appropriately re18 flect tribal needs and available resources)

19 that shall be applicable to Indian tribes

20 and tribal organizations receiving assist21 ance under this subchapter.’’;

22 (vi) by striking ‘‘Provide assurances’’

23 and inserting ‘‘Certify’’; and

24 (vii) by striking subparagraphs (H),

25 (I), and (J) and inserting the following:
451

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1 ‘‘(G) MEETING THE NEEDS OF CERTAIN

2 POPULATIONS.—Demonstrate the manner in

3 which the State will meet the specific child care

4 needs of families who are receiving assistance

5 under a State program under part A of title IV

6 of the Social Security Act, families who are at7 tempting through work activities to transition

8 off of such assistance program, and families

9 who are at risk of becoming dependent on such

10 assistance program.

11 ‘‘(H) PRESERVING PARENTAL CHOICE.—

12 Certify that the State will not implement any

13 policy or practice which has the effect of signifi14 cantly restricting parental choice by—

15 ‘‘(i) expressly or effectively excluding

16 any category of care or type of provider

17 within a category of care;

18 ‘‘(ii) limiting parental access to or

19 choices from among various categories of

20 care or types of providers; or

21 ‘‘(iii) excluding a significant number

22 of providers in any category of care.

23 ‘‘(I) INFORMING PARENTS OF OPTIONS.—

24 Provides assurances that parents will be in25 formed regarding their options under this sec-
452

•S 1867 IS

1 tion, including the option to receive a child care

2 certificate or voucher.’’;

3 (B) in paragraph (3)—

4 (i) in subparagraph (A), by striking

5 ‘‘(B) and (C)’’ and inserting ‘‘(B) through

6 (D)’’;

7 (ii) in subparagraph (B)—

8 (I) by striking ‘‘.—Subject to the

9 reservation contained in subparagraph

10 (C), the’’ and inserting ‘‘AND RELAT11 ED ACTIVITIES.—The’’;

12 (II) in clause (i) by striking ‘‘;

13 and’’ at the end and inserting a pe14 riod;

15 (III) by striking ‘‘for—’’ and all

16 that follows through ‘‘section

17 658E(c)(2)(A)’’ and inserting ‘‘for

18 child care services on sliding fee scale

19 basis, activities that improve the qual20 ity or availability of such services, and

21 any other activity that the State

22 deems appropriate to realize any of

23 the goals specified in paragraphs (2)

24 through (5) of section 658A(b)’’; and

25 (IV) by striking clause (ii);
453

•S 1867 IS

1 (iii) by amending subparagraph (C) to

2 read as follows:

3 ‘‘(C) LIMITATION ON ADMINISTRATIVE

4 COSTS.—Not more than 5 percent of the aggre5 gate amount of funds available to the State to

6 carry out this subchapter by a State in each fis7 cal year may be expended for administrative

8 costs incurred by such State to carry out all of

9 its functions and duties under this subchapter.

10 As used in the preceding sentence, the term

11 ‘administrative costs’ shall not include the costs

12 of providing direct services.’’; and

13 (iv) by adding at the end thereof the

14 following:

15 ‘‘(D) ASSISTANCE FOR CERTAIN FAMI16 LIES.—A State shall ensure that a substantial

17 portion of the amounts available (after the

18 State has complied with the requirement of sec19 tion 417(b)(2) of the Social Security Act with

20 respect to each of the fiscal years 1997 through

21 2002) to the State to carry out activities this

22 subchapter in each fiscal year is used to provide

23 assistance to low-income working families other

24 than families described in paragraph (2)(F).’’;

25 and
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1 (C) in paragraph (4)(A)—

2 (i) by striking ‘‘provide assurances’’

3 and inserting ‘‘certify’’;

4 (ii) in the first sentence by inserting

5 ‘‘and shall provide a summary of the facts

6 relied on by the State to determine that

7 such rates are sufficient to ensure such ac8 cess’’ before the period; and

9 (iii) by striking the last sentence.

10 SEC. 706. LIMITATION ON STATE ALLOTMENTS.

11 Section 658F(b) (42 U.S.C. 9858d(b)) is amended—

12 (1) in paragraph (1), by striking ‘‘No’’ and in13 serting ‘‘Except as provided for in section

14 658O(c)(6), no’’; and

15 (2) in paragraph (2), by striking ‘‘referred to in

16 section 658E(c)(2)(F)’’.

17 SEC. 707. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD

18 CARE.

19 Section 658G (42 U.S.C. 9858e) is amended to read

20 as follows:

21 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF

22 CHILD CARE.

23 ‘‘A State that receives funds to carry out this sub24 chapter for a fiscal year, shall use not less than 3 percent

25 of the amount of such funds for activities that are de-
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1 signed to provide comprehensive consumer education to

2 parents and the public, activities that increase parental

3 choice, and activities designed to improve the quality and

4 availability of child care (such as resource and referral

5 services).’’.

6 SEC. 708. REPEAL OF EARLY CHILDHOOD DEVELOPMENT

7 AND BEFORE- AND AFTER-SCHOOL CARE RE8 QUIREMENT.

9 Section 658H (42 U.S.C. 9858f) is repealed.

10 SEC. 709. ADMINISTRATION AND ENFORCEMENT.

11 Section 658I(b) (42 U.S.C. 9858g(b)) is amended—

12 (1) in paragraph (1), by striking ‘‘, and shall

13 have’’ and all that follows through ‘‘(2)’’; and

14 (2) in the matter following clause (ii) of para15 graph (2)(A), by striking ‘‘finding and that’’ and all

16 that follows through the period and inserting ‘‘find17 ing and shall require that the State reimburse the

18 Secretary for any funds that were improperly ex19 pended for purposes prohibited or not authorized by

20 this subchapter, that the Secretary deduct from the

21 administrative portion of the State allotment for the

22 following fiscal year an amount that is less than or

23 equal to any improperly expended funds, or a com24 bination of such options.’’.
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1 SEC. 710. PAYMENTS.

2 Section 658J(c) (42 U.S.C. 9858h(c)) is amended by

3 striking ‘‘expended’’ and inserting ‘‘obligated’’.

4 SEC. 711. ANNUAL REPORT AND AUDITS.

5 Section 658K (42 U.S.C. 9858i) is amended—

6 (1) in the section heading by striking ‘‘ANNUAL

7 REPORT’’ and inserting ‘‘REPORTS’’;

8 (2) in subsection (a), to read as follows:

9 ‘‘(a) REPORTS.—

10 ‘‘(1) COLLECTION OF INFORMATION BY

11 STATES.—

12 ‘‘(A) IN GENERAL.—A State that receives

13 funds to carry out this subchapter shall collect

14 the information described in subparagraph (B)

15 on a monthly basis.

16 ‘‘(B) REQUIRED INFORMATION.—The in17 formation required under this subparagraph

18 shall include, with respect to a family unit re19 ceiving assistance under this subchapter infor20 mation concerning—

21 ‘‘(i) family income;

22 ‘‘(ii) county of residence;

23 ‘‘(iii) the gender, race, and age of

24 children receiving such assistance;

25 ‘‘(iv) whether the family includes only

26 1 parent;
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1 ‘‘(v) the sources of family income, in2 cluding the amount obtained from (and

3 separately identified)—

4 ‘‘(I) employment, including self5 employment;

6 ‘‘(II) cash or other assistance

7 under part A of title IV of the Social

8 Security Act;

9 ‘‘(III) housing assistance;

10 ‘‘(IV) assistance under the Food

11 Stamp Act of 1977; and

12 ‘‘(V) other assistance programs;

13 ‘‘(vi) the number of months the family

14 has received benefits;

15 ‘‘(vii) the type of child care in which

16 the child was enrolled (such as family child

17 care, home care, or center-based child

18 care);

19 ‘‘(viii) whether the child care provider

20 involved was a relative;

21 ‘‘(ix) the cost of child care for such

22 families; and

23 ‘‘(x) the average hours per week of

24 such care;
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1 during the period for which such information is

2 required to be submitted.

3 ‘‘(C) SUBMISSION TO SECRETARY.—A

4 State described in subparagraph (A) shall, on a

5 quarterly basis, submit the information required

6 to be collected under subparagraph (B) to the

7 Secretary.

8 ‘‘(D) SAMPLING.—The Secretary may dis9 approve the information collected by a State

10 under this paragraph if the State uses sampling

11 methods to collect such information.

12 ‘‘(2) BIANNUAL REPORTS.—Not later than De13 cember 31, 1997, and every 6 months thereafter, a

14 State described in paragraph (1)(A) shall prepare

15 and submit to the Secretary a report that includes

16 aggregate data concerning—

17 ‘‘(A) the number of child care providers

18 that received funding under this subchapter as

19 separately identified based on the types of pro20 viders listed in section 658P(5);

21 ‘‘(B) the monthly cost of child care serv22 ices, and the portion of such cost that is paid

23 for with assistance provided under this sub24 chapter, listed by the type of child care services

25 provided;
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1 ‘‘(C) the number of payments made by the

2 State through vouchers, contracts, cash, and

3 disregards under public benefit programs, listed

4 by the type of child care services provided;

5 ‘‘(D) the manner in which consumer edu6 cation information was provided to parents and

7 the number of parents to whom such informa8 tion was provided; and

9 ‘‘(E) the total number (without duplica10 tion) of children and families served under this

11 subchapter;

12 during the period for which such report is required

13 to be submitted.’’; and

14 (2) in subsection (b)—

15 (A) in paragraph (1) by striking ‘‘a appli16 cation’’ and inserting ‘‘an application’’;

17 (B) in paragraph (2) by striking ‘‘any

18 agency administering activities that receive’’

19 and inserting ‘‘the State that receives’’; and

20 (C) in paragraph (4) by striking ‘‘entitles’’

21 and inserting ‘‘entitled’’.

22 SEC. 712. REPORT BY THE SECRETARY.

23 Section 658L (42 U.S.C. 9858j) is amended—

24 (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
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1 (2) by striking ‘‘annually’’ and inserting ‘‘bien2 nially’’; and

3 (3) by striking ‘‘Education and Labor’’ and in4 serting ‘‘Economic and Educational Opportunities’’.

5 SEC. 713. ALLOTMENTS.

6 Section 658O (42 U.S.C. 9858m) is amended—

7 (1) in subsection (a)—

8 (A) in paragraph (1)

9 (i) by striking ‘‘POSSESSIONS’’ and in10 serting ‘‘POSSESSIONS’’;

11 (ii) by inserting ‘‘and’’ after

12 ‘‘States,’’; and

13 (iii) by striking ‘‘, and the Trust Ter14 ritory of the Pacific Islands’’; and

15 (B) in paragraph (2), by striking ‘‘3 per16 cent’’ and inserting ‘‘1 percent’’;

17 (2) in subsection (c)—

18 (A) in paragraph (5) by striking ‘‘our’’ and

19 inserting ‘‘out’’; and

20 (B) by adding at the end thereof the fol21 lowing new paragraph:

22 ‘‘(6) CONSTRUCTION OR RENOVATION OF FA23 CILITIES.—

24 ‘‘(A) REQUEST FOR USE OF FUNDS.—An

25 Indian tribe or tribal organization may submit
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1 to the Secretary a request to use amounts pro2 vided under this subsection for construction or

3 renovation purposes.

4 ‘‘(B) DETERMINATION.—With respect to a

5 request submitted under subparagraph (A), and

6 except as provided in subparagraph (C), upon a

7 determination by the Secretary that adequate

8 facilities are not otherwise available to an In9 dian tribe or tribal organization to enable such

10 tribe or organization to carry out child care

11 programs in accordance with this subchapter,

12 and that the lack of such facilities will inhibit

13 the operation of such programs in the future,

14 the Secretary may permit the tribe or organiza15 tion to use assistance provided under this sub16 section to make payments for the construction

17 or renovation of facilities that will be used to

18 carry out such programs.

19 ‘‘(C) LIMITATION.—The Secretary may not

20 permit an Indian tribe or tribal organization to

21 use amounts provided under this subsection for

22 construction or renovation if such use will re23 sult in a decrease in the level of child care serv24 ices provided by the tribe or organization as

25 compared to the level of such services provided
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1 by the tribe or organization in the fiscal year

2 preceding the year for which the determination

3 under subparagraph (A) is being made.

4 ‘‘(D) UNIFORM PROCEDURES.—The Sec5 retary shall develop and implement uniform

6 procedures for the solicitation and consideration

7 of requests under this paragraph.’’; and

8 (3) in subsection (e), by adding at the end

9 thereof the following new paragraph:

10 ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZA11 TIONS.—Any portion of a grant or contract made to

12 an Indian tribe or tribal organization under sub13 section (c) that the Secretary determines is not

14 being used in a manner consistent with the provision

15 of this subchapter in the period for which the grant

16 or contract is made available, shall be allotted by the

17 Secretary to other tribes or organizations that have

18 submitted applications under subsection (c) in ac19 cordance with their respective needs.’’.

20 SEC. 714. DEFINITIONS.

21 Section 658P (42 U.S.C. 9858n) is amended—

22 (1) in paragraph (2), in the first sentence by

23 inserting ‘‘or as a deposit for child care services if

24 such a deposit is required of other children being
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1 cared for by the provider’’ after ‘‘child care serv2 ices’’; and

3 (2) by striking paragraph (3);

4 (3) in paragraph (4)(B), by striking ‘‘75 per5 cent’’ and inserting ‘‘85 percent’’;

6 (4) in paragraph (5)(B)—

7 (A) by inserting ‘‘great grandchild, sibling

8 (if such provider lives in a separate residence),’’

9 after ‘‘grandchild,’’;

10 (B) by striking ‘‘is registered and’’; and

11 (C) by striking ‘‘State’’ and inserting ‘‘ap12 plicable’’.

13 (5) by striking paragraph (10);

14 (6) in paragraph (13)—

15 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and

16 (B) by striking ‘‘, and the Trust Territory

17 of the Pacific Islands’’;

18 (7) in paragraph (14)—

19 (A) by striking ‘‘The term’’ and inserting

20 the following:

21 ‘‘(A) IN GENERAL.—The term’’; and

22 (B) by adding at the end thereof the fol23 lowing new subparagraph:

24 ‘‘(B) OTHER ORGANIZATIONS.—Such term

25 includes a Native Hawaiian Organization, as
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1 defined in section 4009(4) of the Augustus F.

2 Hawkins-Robert T. Stafford Elementary and

3 Secondary School Improvement Amendments of

4 1988 (20 U.S.C. 4909(4)) and a private non5 profit organization established for the purpose

6 of serving youth who are Indians or Native Ha7 waiians.’’.

8 SEC. 715. REPEALS.

9 (a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

10 ASSISTANCE ACT OF 1985.—Title VI of the Human Serv11 ices Reauthorization Act of 1986 (42 U.S.C. 10901–

12 10905) is repealed.

13 (b) STATE DEPENDENT CARE DEVELOPMENT

14 GRANTS ACT.—Subchapter E of chapter 8 of subtitle A

15 of title VI of the Omnibus Budget Reconciliation Act of

16 1981 (42 U.S.C. 9871–9877) is repealed.

17 (c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title

18 X of the Elementary and Secondary Education Act of

19 1965, as amended by Public Law 103–382 (108 Stat.

20 3809 et seq.), is amended—

21 (1) in section 10413(a) by striking paragraph

22 (4),

23 (2) in section 10963(b)(2) by striking subpara24 graph (G), and
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•S 1867 IS

1 (3) in section 10974(a)(6) by striking subpara2 graph (G).

3 (d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION

4 CENTERS.—Section 9205 of the Native Hawaiian Edu5 cation Act (Public Law 103–382; 108 Stat. 3794) is re6 pealed.

7 SEC. 716. EFFECTIVE DATE.

8 (a) IN GENERAL.—Except as provided in subsection

9 (b), this title and the amendments made by this title shall

10 take effect on October 1, 1996.

11 (b) EXCEPTION.—The amendment made by section

12 803(a) shall take effect on the date of enactment of this

13 Act.

14 TITLE VIII—CHILD NUTRITION

15 PROGRAMS

16 Subtitle A—National School Lunch

17 Act

18 SEC. 801. VALUE OF FOOD ASSISTANCE.

19 (a) IN GENERAL.—Section 6(e)(1) of the National

20 School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by

21 striking subparagraph (B) and inserting the following:

22 ‘‘(B) ADJUSTMENTS.—

23 ‘‘(i) IN GENERAL.—The value of food

24 assistance for each meal shall be adjusted

25 each July 1 by the annual percentage
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1 change in a 3-month average value of the

2 Price Index for Foods Used in Schools and

3 Institutions for March, April, and May

4 each year.

5 ‘‘(ii) ADJUSTMENTS.—Except as oth6 erwise provided in this subparagraph, in

7 the case of each school year, the Secretary

8 shall—

9 ‘‘(I) base the adjustment made

10 under clause (i) on the amount of the

11 unrounded adjustment for the preced12 ing school year;

13 ‘‘(II) adjust the resulting amount

14 in accordance with clause (i); and

15 ‘‘(III) round the result to the

16 nearest lower cent increment.

17 ‘‘(iii) ADJUSTMENT FOR 24-MONTH

18 PERIOD BEGINNING JULY 1, 1996.—In the

19 case of the 24-month period beginning

20 July 1, 1996, the value of food assistance

21 shall be the same as the value of food as22 sistance in effect on June 30, 1996.

23 ‘‘(iv) ADJUSTMENT FOR SCHOOL YEAR

24 BEGINNING JULY 1, 1998.—In the case of
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1 the school year beginning July 1, 1998, the

2 Secretary shall—

3 ‘‘(I) base the adjustment made

4 under clause (i) on the amount of the

5 unrounded adjustment for the value of

6 food assistance for the school year be7 ginning July 1, 1995;

8 ‘‘(II) adjust the resulting amount

9 to reflect the annual percentage

10 change in a 3-month average value of

11 the Price Index for Foods Used in

12 Schools and Institutions for March,

13 April, and May for the most recent

14 12-month period for which the data

15 are available; and

16 ‘‘(III) round the result to the

17 nearest lower cent increment.’’.

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

19 subsection (a) shall become effective on July 1, 1996.

20 SEC. 802. COMMODITY ASSISTANCE.

21 (a) IN GENERAL.—Section 6(g) of the National

22 School Lunch Act (42 U.S.C. 1755(g)) is amended by

23 striking ‘‘12 percent’’ and inserting ‘‘8 percent’’.

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

25 subsection (a) shall become effective on July 1, 1996.
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1 SEC. 803. STATE DISBURSEMENT TO SCHOOLS.

2 (a) IN GENERAL.—Section 8 of the National School

3 Lunch Act (42 U.S.C. 1757) is amended—

4 (1) in the third sentence, by striking ‘‘Nothing’’

5 and all that follows through ‘‘educational agency to’’

6 and inserting ‘‘The State educational agency may’’;

7 (2) by striking the fourth, fifth, and eighth sen8 tences;

9 (3) by redesignating the first through sixth sen10 tences, as amended by paragraph (1), as subsections

11 (a) through (f), respectively;

12 (4) in subsection (b), as redesignated by para13 graph (3), by striking ‘‘the preceding sentence’’ and

14 inserting ‘‘subsection (a)’’; and

15 (5) in subsection (d), as redesignated by para16 graph (3), by striking ‘‘Such food costs’’ and insert17 ing ‘‘Use of funds paid to States’’.

18 (b) DEFINITION OF CHILD.—Section 12(d) of the Act

19 (42 U.S.C. 1760(d)) is amended by adding at the end the

20 following:

21 ‘‘(9) ‘child’ includes an individual, regardless of

22 age, who—

23 ‘‘(A) is determined by a State educational

24 agency, in accordance with regulations pre25 scribed by the Secretary, to have 1 or more

26 mental or physical disabilities; and
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1 ‘‘(B) is attending any institution, as de2 fined in section 17(a), or any nonresidential

3 public or nonprofit private school of high school

4 grade or under, for the purpose of participating

5 in a school program established for individuals

6 with mental or physical disabilities.

7 No institution that is not otherwise eligible to par8 ticipate in the program under section 17 shall be

9 considered eligible because of this paragraph.’’.

10 SEC. 804. NUTRITIONAL AND OTHER PROGRAM REQUIRE11 MENTS.

12 (a) NUTRITIONAL STANDARDS.—Section 9(a) of the

13 National School Lunch Act (42 U.S.C. 1758(a)) is amend14 ed—

15 (1) in paragraph (2)—

16 (A) by striking ‘‘(2)(A) Lunches’’ and in17 serting ‘‘(2) Lunches’’;

18 (B) by striking subparagraph (B); and

19 (C) by redesignating clauses (i) and (ii) as

20 subparagraphs (A) and (B), respectively;

21 (2) by striking paragraph (3); and

22 (3) by redesignating paragraph (4) as para23 graph (3).

24 (b) ELIGIBILITY GUIDELINES.—Section 9(b) of the

25 Act is amended—
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1 (1) in paragraph (2)—

2 (A) by striking subparagraph (A); and

3 (B) by redesignating subparagraphs (B)

4 and (C) as subparagraphs (A) and (B), respec5 tively;

6 (2) in paragraph (5), by striking the third sen7 tence; and

8 (3) in paragraph (6), by striking ‘‘paragraph

9 (2)(C)’’ and inserting ‘‘paragraph (2)(B)’’.

10 (c) UTILIZATION OF AGRICULTURAL COMMOD11 ITIES.—Section 9(c) of the Act is amended by striking the

12 second, fourth, and sixth sentences.

13 (d) CONFORMING AMENDMENT.—The last sentence

14 of section 9(d)(1) of the Act is amended by striking ‘‘sub15 section (b)(2)(C)’’ and inserting ‘‘subsection (b)(2)(B)’’.

16 (e) NUTRITIONAL INFORMATION.—Section 9(f) of the

17 Act is amended—

18 (1) by striking paragraph (1);

19 (2) by striking ‘‘(2)’’;

20 (3) by redesignating subparagraphs (A) through

21 (D) as paragraphs (1) through (4), respectively;

22 (4) by striking paragraph (1), as redesignated

23 by paragraph (3), and inserting the following:

24 ‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as

25 provided in paragraph (2), not later than the first
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1 day of the 1996–1997 school year, schools that are

2 participating in the school lunch or school breakfast

3 program shall serve lunches and breakfasts under

4 the program that—

5 ‘‘(A) are consistent with the goals of the

6 most recent Dietary Guidelines for Americans

7 published under section 301 of the National

8 Nutrition Monitoring and Related Research Act

9 of 1990 (7 U.S.C. 5341); and

10 ‘‘(B) provide, on the average over each

11 week, at least—

‘‘(i) with respect to school lunches, 1 12 ⁄3

13 of the daily recommended dietary allow14 ance established by the Food and Nutrition

15 Board of the National Research Council of

16 the National Academy of Sciences; and

17 ‘‘(ii) with respect to school breakfasts,

1 18 ⁄4 of the daily recommended dietary allow19 ance established by the Food and Nutrition

20 Board of the National Research Council of

21 the National Academy of Sciences.’’;

22 (5) in paragraph (3), as redesignated by para23 graph (3)—

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

25 subparagraphs (A) and (B), respectively; and
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1 (B) in subparagraph (A), as so redesig2 nated, by redesignating subclauses (I) and (II)

3 as clauses (i) and (ii), respectively; and

4 (6) in paragraph (4), as redesignated by para5 graph (3), by striking the first sentence and insert6 ing the following: ‘‘Schools may use any reasonable

7 approach to meet the requirements of this para8 graph, including any approach described in para9 graph (3).’’.

10 (f) USE OF RESOURCES.—Section 9 of the Act is

11 amended by striking subsection (h).

12 SEC. 805. FREE AND REDUCED PRICE POLICY STATEMENT.

13 Section 9(b)(2) of the National School Lunch Act (42

14 U.S.C. 1758(b)(2)), as amended by section 802(b)(1), is

15 further amended by adding at the end the following:

16 ‘‘(C) FREE AND REDUCED PRICE POLICY

17 STATEMENT.—After the initial submission, a

18 school shall not be required to submit a free

19 and reduced price policy statement to a State

20 educational agency under this Act unless there

21 is a substantive change in the free and reduced

22 price policy of the school. A routine change in

23 the policy of a school, such as an annual adjust24 ment of the income eligibility guidelines for free

25 and reduced price meals, shall not be sufficient
473

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1 cause for requiring the school to submit a policy

2 statement.’’.

3 SEC. 806. SPECIAL ASSISTANCE.

4 (a) REIMBURSEMENT RATES FOR LUNCHES, BREAK5 FASTS, AND SUPPLEMENTS.—

6 (1) IN GENERAL.—Section 11(a)(3)(B) of the

7 National School Lunch Act (42 U.S.C.

8 1759a(a)(3)(B)) is amended—

9 (A) by designating the second and third

10 sentences as subparagraphs (C) and (D), re11 spectively; and

12 (B) by striking subparagraph (D) (as so

13 designated) and inserting the following:

14 ‘‘(D) ROUNDING.—Except as otherwise

15 provided in this paragraph, in the case of each

16 school year, the Secretary shall—

17 ‘‘(i) base the adjustment made under

18 this paragraph on the amount of the

19 unrounded adjustment for the preceding

20 school year;

21 ‘‘(ii) adjust the resulting amount in

22 accordance with subparagraphs (B) and

23 (C); and

24 ‘‘(iii) round the result to the nearest

25 lower cent increment.
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1 ‘‘(E) ADJUSTMENT FOR 12-MONTH PERIOD

2 BEGINNING JULY 1, 1996.—In the case of the

3 12-month period beginning July 1, 1996, the

4 national average payment rates for paid

5 lunches, paid breakfasts, and paid supplements

6 shall be the same as the national average pay7 ment rate for paid lunches, paid breakfasts, and

8 paid supplements, respectively, for the school

9 year beginning July 1, 1995, rounded to the

10 nearest lower cent increment.

11 ‘‘(F) ADJUSTMENT FOR SCHOOL YEAR BE12 GINNING JULY 1, 1997.—In the case of the

13 school year beginning July 1, 1997, the Sec14 retary shall—

15 ‘‘(i) base the adjustments made under

16 this paragraph for—

17 ‘‘(I) paid lunches and paid break18 fasts on the amount of the unrounded

19 adjustment for paid lunches for the

20 school year beginning July 1, 1996;

21 and

22 ‘‘(II) paid supplements on the

23 amount of the unrounded adjustment

24 for paid supplements for the school

25 year beginning July 1, 1996;
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1 ‘‘(ii) adjust each resulting amount in

2 accordance with subparagraph (C); and

3 ‘‘(iii) round each result to the nearest

4 lower cent increment.’’.

5 (2) EFFECTIVE DATE.—The amendments made

6 by paragraph (1) shall become effective on July 1,

7 1996.

8 (b) FINANCING BASED ON NEED.—Section 11(b) of

9 the Act is amended—

10 (1) in the second sentence, by striking ‘‘, with11 in’’ and all that follows through ‘‘all States,’’; and

12 (2) by striking the third sentence.

13 (c) APPLICABILITY OF OTHER PROVISIONS.—Section

14 11 of the Act is amended—

15 (1) by striking subsection (d);

16 (2) in subsection (e)(2)—

17 (A) by striking ‘‘The’’ and inserting ‘‘On

18 request of the Secretary, the’’; and

19 (B) by striking ‘‘each month’’; and

20 (3) by redesignating subsections (e) and (f), as

21 so amended, as subsections (d) and (e), respectively.

22 SEC. 807. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

23 (a) ACCOUNTS AND RECORDS.—Section 12(a) of the

24 National School Lunch Act (42 U.S.C. 1760(a)) is amend-
476

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1 ed by striking ‘‘at all times be available’’ and inserting

2 ‘‘be available at any reasonable time’’.

3 (b) RESTRICTION ON REQUIREMENTS.—Section

4 12(c) of the Act is amended by striking ‘‘neither the Sec5 retary nor the State shall’’ and inserting ‘‘the Secretary

6 shall not’’.

7 (c) DEFINITIONS.—Section 12(d) of the Act, as

8 amended by section 801(b), is further amended—

9 (1) in paragraph (1), by striking ‘‘the Trust

10 Territory of the Pacific Islands’’ and inserting ‘‘the

11 Commonwealth of the Northern Mariana Islands’’;

12 (2) by striking paragraphs (3) and (4); and

13 (3) by redesignating paragraphs (1), (2), and

14 (5) through (9) as paragraphs (6), (7), (3), (4), (2),

15 (5), and (1), respectively, and rearranging the para16 graphs so as to appear in numerical order.

17 (d) ADJUSTMENTS TO NATIONAL AVERAGE PAY18 MENT RATES.—Section 12(f) of the Act is amended by

19 striking ‘‘the Trust Territory of the Pacific Islands,’’.

20 (e) EXPEDITED RULEMAKING.—Section 12(k) of the

21 Act is amended—

22 (1) by striking paragraphs (1), (2), and (5);

23 and

24 (2) by redesignating paragraphs (3) and (4) as

25 paragraphs (1) and (2), respectively.
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•S 1867 IS

1 (f) WAIVER.—Section 12(l) of the Act is amended—

2 (1) in paragraph (1)(A)(i), by inserting after

3 ‘‘program’’ the following: ‘‘and would not have the

4 effect of transferring funds or commodities from the

5 support of meals for children with incomes below the

6 income criteria for free or reduced price meals, as

7 provided in section 9(b)’’;

8 (2) in paragraph (2)—

9 (A) by striking ‘‘(A)’’;

10 (B) in clause (iii), by adding ‘‘and’’ at the

11 end;

12 (C) in clause (iv), by striking the semicolon

13 at the end and inserting a period;

14 (D) by striking clauses (v) through (vii);

15 (E) by striking subparagraph (B); and

16 (F) by redesignating clauses (i) through

17 (iv), as so amended, as subparagraphs (A)

18 through (D), respectively;

19 (3) in paragraph (3)—

20 (A) by striking ‘‘(A)’’; and

21 (B) by striking subparagraphs (B) through

22 (D);

23 (4) in paragraph (4)—

24 (A) in the matter preceding subparagraph

25 (A), by striking ‘‘of any requirement relating’’
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1 and inserting ‘‘that increases Federal costs or

2 that relates’’;

3 (B) by striking subparagraphs (B), (D),

4 (F), (H), (J), (K), and (L);

5 (C) by redesignating subparagraphs (C),

6 (E), (G), (I), (M), and (N) as subparagraphs

7 (B) through (G), respectively; and

8 (D) in subparagraph (F), as redesignated

9 by subparagraph (C), by striking ‘‘and’’ at the

10 end and inserting ‘‘or’’; and

11 (5) in paragraph (6)—

12 (A) by striking ‘‘(A)(i)’’ and all that fol13 lows through ‘‘(B)’’; and

14 (B) by redesignating clauses (i) through

15 (iv) as subparagraphs (A) through (D), respec16 tively.

17 (g) FOOD AND NUTRITION PROJECTS.—Section 12

18 of the Act is amended by striking subsection (m).

19 SEC. 808. SUMMER FOOD SERVICE PROGRAM FOR CHIL20 DREN.

21 (a) ESTABLISHMENT OF PROGRAM.—Section 13(a)

22 of the National School Lunch Act (42 U.S.C. 1761(a))

23 is amended—

24 (1) in paragraph (1)—
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1 (A) in the first sentence, by striking ‘‘initi2 ate, maintain, and expand’’ and insert ‘‘initiate

3 and maintain’’; and

4 (B) in subparagraph (E) of the second

5 sentence, by striking ‘‘the Trust Territory of

6 the Pacific Islands,’’; and

7 (2) in paragraph (7)(A), by striking ‘‘Except as

8 provided in subparagraph (C), private’’ and inserting

9 ‘‘Private’’.

10 (b) SERVICE INSTITUTIONS.—Section 13(b) of the

11 Act is amended by striking ‘‘(b)(1)’’ and all that follows

12 through the end of paragraph (1) and inserting the follow13 ing:

14 ‘‘(b) SERVICE INSTITUTIONS.—

15 ‘‘(1) PAYMENTS.—

16 ‘‘(A) IN GENERAL.—Except as otherwise

17 provided in this paragraph, payments to service

18 institutions shall equal the full cost of food

19 service operations (which cost shall include the

20 costs of obtaining, preparing, and serving food,

21 but shall not include administrative costs).

22 ‘‘(B) MAXIMUM AMOUNTS.—Subject to

23 subparagraph (C), payments to any institution

24 under subparagraph (A) shall not exceed—
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1 ‘‘(i) $2.00 for each lunch and supper

2 served;

3 ‘‘(ii) $1.20 for each breakfast served;

4 and

5 ‘‘(iii) 50 cents for each meal supple6 ment served.

7 ‘‘(C) ADJUSTMENTS.—Amounts specified

8 in subparagraph (B) shall be adjusted each

9 January 1 to the nearest lower cent increment

10 in accordance with the changes for the 12-

11 month period ending the preceding November

12 30 in the series for food away from home of the

13 Consumer Price Index for All Urban Consum14 ers published by the Bureau of Labor Statistics

15 of the Department of Labor. Each adjustment

16 shall be based on the unrounded adjustment for

17 the prior 12-month period.’’.

18 (c) ADMINISTRATION OF SERVICE INSTITUTIONS.—

19 Section 13(b)(2) of the Act is amended—

20 (1) in the first sentence, by striking ‘‘four

21 meals’’ and inserting ‘‘3 meals, or 2 meals and 1

22 supplement,’’; and

23 (2) by striking the second sentence.

24 (d) REIMBURSEMENTS.—Section 13(c)(2) of the Act

25 is amended—
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1 (1) by striking subparagraph (A);

2 (2) in subparagraph (B)—

3 (A) in the first sentence—

4 (i) by striking ‘‘, and such higher edu5 cation institutions,’’; and

6 (ii) by striking ‘‘without application’’

7 and inserting ‘‘upon showing residence in

8 areas in which poor economic conditions

9 exist or on the basis of income eligibility

10 statements for children enrolled in the pro11 gram’’; and

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

13 ‘‘The higher education institutions referred to

14 in the preceding sentence shall be eligible to

15 participate in the program under this para16 graph without application.’’;

17 (3) in subparagraph (C)(ii), by striking ‘‘severe

18 need’’; and

19 (4) by redesignating subparagraphs (B)

20 through (E), as so amended, as subparagraphs (A)

21 through (D), respectively.

22 (e) ADVANCE PROGRAM PAYMENTS.—Section

23 13(e)(1) of the Act is amended—

24 (1) by striking ‘‘institution: Provided, That (A)

25 the’’ and inserting ‘‘institution. The’’;
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1 (2) by inserting ‘‘(excluding a school)’’ after

2 ‘‘any service institution’’; and

3 (3) by striking ‘‘responsibilities, and (B) no’’

4 and inserting ‘‘responsibilities. No’’.

5 (f) FOOD REQUIREMENTS.—Section 13(f) of the Act

6 is amended—

7 (1) by redesignating the first through seventh

8 sentences as paragraphs (1) through (7), respec9 tively;

10 (2) by striking paragraph (3), as redesignated

11 by paragraph (1);

12 (3) in paragraph (4), as redesignated by para13 graph (1), by striking ‘‘the first sentence’’ and in14 serting ‘‘paragraph (1)’’;

15 (4) in paragraph (6), as redesignated by para16 graph (1), by striking ‘‘that bacteria levels’’ and all

17 that follows through the period at the end and in18 serting ‘‘conformance with standards set by local

19 health authorities.’’; and

20 (5) by redesignating paragraphs (4) through

21 (7), as redesignated by paragraph (1), as para22 graphs (3) through (6), respectively.

23 (g) PERMITTING OFFER VERSUS SERVE.—Section

24 13(f) of the Act, as amended by subsection (f), is further

25 amended by adding at the end the following:
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1 ‘‘(7) OFFER VERSUS SERVE.—A school food au2 thority participating as a service institution may

3 permit a child attending a site on school premises

4 operated directly by the authority to refuse not more

5 than 1 item of a meal that the child does not intend

6 to consume. A refusal of an offered food item shall

7 not affect the amount of payments made under this

8 section to a school for the meal.’’.

9 (h) HEALTH DEPARTMENT INSPECTIONS.—Section

10 13(k) of the Act is amended by striking paragraph (3).

11 (i) FOOD SERVICE MANAGEMENT COMPANIES.—Sec12 tion 13(l) of the Act is amended—

13 (1) by striking paragraph (4);

14 (2) in paragraph (5), by striking the first sen15 tence; and

16 (3) by redesignating paragraph (5), as so

17 amended, as paragraph (4).

18 (j) RECORDS.—The second sentence of section 13(m)

19 of the Act is amended by striking ‘‘at all times be avail20 able’’ and inserting ‘‘be available at any reasonable time’’.

21 (k) REMOVING MANDATORY NOTICE TO INSTITU22 TIONS.—Section 13(n)(2) of the Act is amended by strik23 ing ‘‘, and its plans and schedule for informing service

24 institutions of the availability of the program’’.

25 (l) PLAN.—Section 13(n) of the Act is amended—
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1 (1) in paragraph (2), by striking ‘‘including the

2 State’s methods of assessing need’’;

3 (2) by striking paragraph (3);

4 (3) in paragraph (4), by striking ‘‘and sched5 ule’’; and

6 (4) by redesignating paragraphs (4) through

7 (7), as so amended, as paragraphs (3) through (6),

8 respectively.

9 (m) MONITORING AND TRAINING.—Section 13(q) of

10 the Act is amended—

11 (1) by striking paragraphs (2) and (4);

12 (2) in paragraph (3), by striking ‘‘paragraphs

13 (1) and (2) of this subsection’’ and inserting ‘‘para14 graph (1)’’; and

15 (3) by redesignating paragraph (3), as so

16 amended, as paragraph (2).

17 (n) EXPIRED PROGRAM.—Section 13 of the Act is

18 amended—

19 (1) by striking subsection (p); and

20 (2) by redesignating subsections (q) and (r), as

21 so amended, as subsections (p) and (q), respectively.

22 (o) EFFECTIVE DATE.—The amendments made by

23 subsection (b) shall become effective on January 1, 1996.
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1 SEC. 809. COMMODITY DISTRIBUTION.

2 (a) CEREAL AND SHORTENING IN COMMODITY DO3 NATIONS.—Section 14(b) of the National School Lunch

4 Act (42 U.S.C. 1762a(b)) is amended—

5 (1) by striking paragraph (1); and

6 (2) by redesignating paragraphs (2) and (3) as

7 paragraphs (1) and (2), respectively.

8 (b) IMPACT STUDY AND PURCHASING PROCE9 DURES.—Section 14(d) of the Act is amended by striking

10 the second and third sentences.

11 (c) CASH COMPENSATION FOR PILOT PROJECT

12 SCHOOLS.—Section 14(g) of the Act is amended by strik13 ing paragraph (3).

14 (d) STATE ADVISORY COUNCIL.—Section 14 is

15 amended—

16 (1) by striking subsection (e); and

17 (2) by redesignating subsections (f) and (g), as

18 so amended, as subsections (e) and (f), respectively.

19 SEC. 810. CHILD CARE FOOD PROGRAM.

20 (a) ESTABLISHMENT OF PROGRAM.—Section 17 of

21 the National School Lunch Act (42 U.S.C. 1766) is

22 amended—

23 (1) in the section heading, by striking ‘‘AND

24 ADULT’’; and
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1 (2) in the first sentence of subsection (a), by

2 striking ‘‘initiate, maintain, and expand’’ and insert3 ing ‘‘initiate and maintain’’.

4 (b) PAYMENTS TO SPONSOR EMPLOYEES.—Para5 graph (2) of the last sentence of section 17(a) of the Act

6 (42 U.S.C. 1766(a)) is amended—

7 (1) by striking ‘‘and’’ at the end of subpara8 graph (B);

9 (2) by striking the period at the end of sub10 paragraph (C) and inserting ‘‘; and’’; and

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

12 ‘‘(D) in the case of a family or group day

13 care home sponsoring organization that employs

14 more than 1 employee, the organization does

15 not base payments to an employee of the orga16 nization on the number of family or group day

17 care homes recruited.’’.

18 (c) TECHNICAL ASSISTANCE.—The last sentence of

19 section 17(d)(1) of the Act is amended by striking ‘‘, and

20 shall provide technical assistance’’ and all that follows

21 through ‘‘its application’’.

22 (d) IMPROVED TARGETING OF DAY CARE HOME RE23 IMBURSEMENTS.—

24 (1) RESTRUCTURED DAY CARE HOME REIM25 BURSEMENTS.—Section 17(f)(3) of the Act is
487

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1 amended by striking ‘‘(3)(A) Institutions’’ and all

2 that follows through the end of subparagraph (A)

3 and inserting the following:

4 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

5 DAY CARE HOME SPONSORING ORGANIZATIONS.—

6 ‘‘(A) REIMBURSEMENT FACTOR.—

7 ‘‘(i) IN GENERAL.—An institution

8 that participates in the program under this

9 section as a family or group day care home

10 sponsoring organization shall be provided,

11 for payment to a home sponsored by the

12 organization, reimbursement factors in ac13 cordance with this subparagraph for the

14 cost of obtaining and preparing food and

15 prescribed labor costs involved in providing

16 meals under this section.

17 ‘‘(ii) TIER I FAMILY OR GROUP DAY

18 CARE HOMES.—

19 ‘‘(I) DEFINITION.—In this para20 graph, the term ‘tier I family or group

21 day care home’ means—

22 ‘‘(aa) a family or group day

23 care home that is located in a ge24 ographic area, as defined by the

25 Secretary based on census data,
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1 in which at least 50 percent of

2 the children residing in the area

3 are members of households whose

4 incomes meet the income eligi5 bility guidelines for free or re6 duced price meals under section

7 9;

8 ‘‘(bb) a family or group day

9 care home that is located in an

10 area served by a school enrolling

11 elementary students in which at

12 least 50 percent of the total num13 ber of children enrolled are cer14 tified eligible to receive free or

15 reduced price school meals under

16 this Act or the Child Nutrition

17 Act of 1966 (42 U.S.C. 1771 et

18 seq.); or

19 ‘‘(cc) a family or group day

20 care home that is operated by a

21 provider whose household meets

22 the income eligibility guidelines

23 for free or reduced price meals

24 under section 9 and whose in25 come is verified by the sponsor-
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•S 1867 IS

1 ing organization of the home

2 under regulations established by

3 the Secretary.

4 ‘‘(II) REIMBURSEMENT.—Except

5 as provided in subclause (III), a tier

6 I family or group day care home shall

7 be provided reimbursement factors

8 under this clause without a require9 ment for documentation of the costs

10 described in clause (i), except that re11 imbursement shall not be provided

12 under this subclause for meals or sup13 plements served to the children of a

14 person acting as a family or group

15 day care home provider unless the

16 children meet the income eligibility

17 guidelines for free or reduced price

18 meals under section 9.

19 ‘‘(III) FACTORS.—Except as pro20 vided in subclause (IV), the reim21 bursement factors applied to a home

22 referred to in subclause (II) shall be

23 the factors in effect on the date of en24 actment of this subclause.
490

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1 ‘‘(IV) ADJUSTMENTS.—The re2 imbursement factors under this sub3 paragraph shall be adjusted on Au4 gust 1, 1996, July 1, 1997, and each

5 July 1 thereafter, to reflect changes in

6 the Consumer Price Index for food at

7 home for the most recent 12-month

8 period for which the data are avail9 able. The reimbursement factors

10 under this subparagraph shall be

11 rounded to the nearest lower cent in12 crement and based on the unrounded

13 adjustment in effect on June 30 of

14 the preceding school year.

15 ‘‘(iii) TIER II FAMILY OR GROUP DAY

16 CARE HOMES.—

17 ‘‘(I) IN GENERAL.—

18 ‘‘(aa) FACTORS.—Except as

19 provided in subclause (II), with

20 respect to meals or supplements

21 served under this clause by a

22 family or group day care home

23 that does not meet the criteria

24 set forth in clause (ii)(I), the re25 imbursement factors shall be
491

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1 $1.00 for lunches and suppers,

2 30 cents for breakfasts, and 15

3 cents for supplements.

4 ‘‘(bb) ADJUSTMENTS.—The

5 factors shall be adjusted on July

6 1, 1997, and each July 1 there7 after, to reflect changes in the

8 Consumer Price Index for food at

9 home for the most recent 12-

10 month period for which the data

11 are available. The reimbursement

12 factors under this item shall be

13 rounded down to the nearest

14 lower cent increment and based

15 on the unrounded adjustment for

16 the preceding 12-month period.

17 ‘‘(cc) REIMBURSEMENT.—A

18 family or group day care home

19 shall be provided reimbursement

20 factors under this subclause with21 out a requirement for docu22 mentation of the costs described

23 in clause (i), except that reim24 bursement shall not be provided

25 under this subclause for meals or
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•S 1867 IS

1 supplements served to the chil2 dren of a person acting as a fam3 ily or group day care home pro4 vider unless the children meet the

5 income eligibility guidelines for

6 free or reduced price meals under

7 section 9.

8 ‘‘(II) OTHER FACTORS.—A fam9 ily or group day care home that does

10 not meet the criteria set forth in

11 clause (ii)(I) may elect to be provided

12 reimbursement factors determined in

13 accordance with the following require14 ments:

15 ‘‘(aa) CHILDREN ELIGIBLE

16 FOR FREE OR REDUCED PRICE

17 MEALS.—In the case of meals or

18 supplements served under this

19 subsection to children who are

20 members of households whose in21 comes meet the income eligibility

22 guidelines for free or reduced

23 price meals under section 9, the

24 family or group day care home

25 shall be provided reimbursement
493

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1 factors set by the Secretary in

2 accordance with clause (ii)(III).

3 ‘‘(bb) INELIGIBLE CHIL4 DREN.—In the case of meals or

5 supplements served under this

6 subsection to children who are

7 members of households whose in8 comes do not meet the income

9 eligibility guidelines, the family

10 or group day care home shall be

11 provided reimbursement factors

12 in accordance with subclause (I).

13 ‘‘(III) INFORMATION AND DE14 TERMINATIONS.—

15 ‘‘(aa) IN GENERAL.—If a

16 family or group day care home

17 elects to claim the factors de18 scribed in subclause (II), the

19 family or group day care home

20 sponsoring organization serving

21 the home shall collect the nec22 essary income information, as de23 termined by the Secretary, from

24 any parent or other caretaker to

25 make the determinations speci-
494

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1 fied in subclause (II) and shall

2 make the determinations in ac3 cordance with rules prescribed by

4 the Secretary.

5 ‘‘(bb) CATEGORICAL ELIGI6 BILITY.—In making a determina7 tion under item (aa), a family or

8 group day care home sponsoring

9 organization may consider a child

10 participating in or subsidized

11 under, or a child with a parent

12 participating in or subsidized

13 under, a federally or State sup14 ported child care or other benefit

15 program with an income eligi16 bility limit that does not exceed

17 the eligibility standard for free or

18 reduced price meals under section

19 9 to be a child who is a member

20 of a household whose income

21 meets the income eligibility

22 guidelines under section 9.

23 ‘‘(cc) FACTORS FOR CHIL24 DREN ONLY.—A family or group

25 day care home may elect to re-
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•S 1867 IS

1 ceive the reimbursement factors

2 prescribed under clause (ii)(III)

3 solely for the children participat4 ing in a program referred to in

5 item (bb) if the home elects not

6 to have income statements col7 lected from parents or other care8 takers.

9 ‘‘(IV) SIMPLIFIED MEAL COUNT10 ING AND REPORTING PROCEDURES.—

11 The Secretary shall prescribe sim12 plified meal counting and reporting

13 procedures for use by a family or

14 group day care home that elects to

15 claim the factors under subclause (II)

16 and by a family or group day care

17 home sponsoring organization that

18 sponsors the home. The procedures

19 the Secretary prescribes may include

20 1 or more of the following:

21 ‘‘(aa) Setting an annual per22 centage for each home of the

23 number of meals served that are

24 to be reimbursed in accordance

25 with the reimbursement factors
496

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1 prescribed under clause (ii)(III)

2 and an annual percentage of the

3 number of meals served that are

4 to be reimbursed in accordance

5 with the reimbursement factors

6 prescribed under subclause (I),

7 based on the family income of

8 children enrolled in the home in a

9 specified month or other period.

10 ‘‘(bb) Placing a home into 1

11 of 2 or more reimbursement cat12 egories annually based on the

13 percentage of children in the

14 home whose households have in15 comes that meet the income eligi16 bility guidelines under section 9,

17 with each such reimbursement

18 category carrying a set of reim19 bursement factors such as the

20 factors prescribed under clause

21 (ii)(III) or subclause (I) or fac22 tors established within the range

23 of factors prescribed under clause

24 (ii)(III) and subclause (I).
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1 ‘‘(cc) Such other simplified

2 procedures as the Secretary may

3 prescribe.

4 ‘‘(V) MINIMUM VERIFICATION

5 REQUIREMENTS.—The Secretary may

6 establish any necessary minimum ver7 ification requirements.’’.

8 (2) GRANTS TO STATES TO PROVIDE ASSIST9 ANCE TO FAMILY OR GROUP DAY CARE HOMES.—

10 Section 17(f)(3) of the Act is amended by adding at

11 the end the following:

12 ‘‘(D) GRANTS TO STATES TO PROVIDE AS13 SISTANCE TO FAMILY OR GROUP DAY CARE

14 HOMES.—

15 ‘‘(i) IN GENERAL.—

16 ‘‘(I) RESERVATION.—From

17 amounts made available to carry out

18 this section, the Secretary shall re19 serve $5,000,000 of the amount made

20 available for fiscal year 1996.

21 ‘‘(II) PURPOSE.—The Secretary

22 shall use the funds made available

23 under subclause (I) to provide grants

24 to States for the purpose of provid25 ing—
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•S 1867 IS

1 ‘‘(aa) assistance, including

2 grants, to family and day care

3 home sponsoring organizations

4 and other appropriate organiza5 tions, in securing and providing

6 training, materials, automated

7 data processing assistance, and

8 other assistance for the staff of

9 the sponsoring organizations; and

10 ‘‘(bb) training and other as11 sistance to family and group day

12 care homes in the implementation

13 of the amendment to subpara14 graph (A) made by section

15 808(d)(1) of the Personal Re16 sponsibility and Work Oppor17 tunity Act of 1996.

18 ‘‘(ii) ALLOCATION.—The Secretary

19 shall allocate from the funds reserved

20 under clause (i)(I)—

21 ‘‘(I) $30,000 in base funding to

22 each State; and

23 ‘‘(II) any remaining amount

24 among the States, based on the num25 ber of family day care homes partici-
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•S 1867 IS

1 pating in the program in a State dur2 ing fiscal year 1994 as a percentage

3 of the number of all family day care

4 homes participating in the program

5 during fiscal year 1994.

6 ‘‘(iii) RETENTION OF FUNDS.—Of the

7 amount of funds made available to a State

8 for fiscal year 1996 under clause (i), the

9 State may retain not to exceed 30 percent

10 of the amount to carry out this subpara11 graph.

12 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

13 payments received under this subpara14 graph shall be in addition to payments

15 that a State receives under subparagraph

16 (A).’’.

17 (3) PROVISION OF DATA.—Section 17(f)(3) of

18 the Act, as amended by paragraph (2), is further

19 amended by adding at the end the following:

20 ‘‘(E) PROVISION OF DATA TO FAMILY OR

21 GROUP DAY CARE HOME SPONSORING ORGANI22 ZATIONS.—

23 ‘‘(i) CENSUS DATA.—The Secretary

24 shall provide to each State agency admin25 istering a child care food program under
500

•S 1867 IS

1 this section data from the most recent de2 cennial census survey or other appropriate

3 census survey for which the data are avail4 able showing which areas in the State meet

5 the requirements of subparagraph

6 (A)(ii)(I)(aa). The State agency shall pro7 vide the data to family or group day care

8 home sponsoring organizations located in

9 the State.

10 ‘‘(ii) SCHOOL DATA.—

11 ‘‘(I) IN GENERAL.—A State

12 agency administering the school lunch

13 program under this Act or the school

14 breakfast program under the Child

15 Nutrition Act of 1966 (42 U.S.C.

16 1771 et seq.) shall provide to ap17 proved family or group day care home

18 sponsoring organizations a list of

19 schools serving elementary school chil20 dren in the State in which not less

than 1 21 ⁄2 of the children enrolled are

22 certified to receive free or reduced

23 price meals. The State agency shall

24 collect the data necessary to create

25 the list annually and provide the list
501

•S 1867 IS

1 on a timely basis to any approved

2 family or group day care home spon3 soring organization that requests the

4 list.

5 ‘‘(II) USE OF DATA FROM PRE6 CEDING SCHOOL YEAR.—In determin7 ing for a fiscal year or other annual

8 period whether a home qualifies as a

9 tier I family or group day care home

10 under subparagraph (A)(ii)(I), the

11 State agency administering the pro12 gram under this section, and a family

13 or group day care home sponsoring

14 organization, shall use the most cur15 rent available data at the time of the

16 determination.

17 ‘‘(iii) DURATION OF DETERMINA18 TION.—For purposes of this section, a de19 termination that a family or group day

20 care home is located in an area that quali21 fies the home as a tier I family or group

22 day care home (as the term is defined in

23 subparagraph (A)(ii)(I)), shall be in effect

24 for 3 years (unless the determination is

25 made on the basis of census data, in which
502

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1 case the determination shall remain in ef2 fect until more recent census data are

3 available) unless the State agency deter4 mines that the area in which the home is

5 located no longer qualifies the home as a

6 tier I family or group day care home.’’.

7 (4) CONFORMING AMENDMENTS.—Section 17(c)

8 of the Act is amended by inserting ‘‘except as pro9 vided in subsection (f)(3),’’ after ‘‘For purposes of

10 this section,’’ each place it appears in paragraphs

11 (1), (2), and (3).

12 (e) REIMBURSEMENT.—Section 17(f) of the Act is

13 amended—

14 (1) in paragraph (3)—

15 (A) in subparagraph (B), by striking the

16 third and fourth sentences; and

17 (B) in subparagraph (C)—

18 (i) in clause (i)—

19 (I) by striking ‘‘(i)’’;

20 (II) in the first sentence, by

21 striking ‘‘and expansion funds’’ and

22 all that follows through ‘‘rural areas’’;

23 (III) by striking the second sen24 tence; and
503

•S 1867 IS

1 (IV) by striking ‘‘and expansion

2 funds’’ each place it appears; and

3 (ii) by striking clause (ii); and

4 (2) by striking paragraph (4).

5 (f) NUTRITIONAL REQUIREMENTS.—Section

6 17(g)(1) of the Act is amended—

7 (1) in subparagraph (A), by striking the second

8 sentence; and

9 (2) in subparagraph (B), by striking the second

10 sentence.

11 (g) ELIMINATION OF STATE PAPERWORK AND OUT12 REACH BURDEN.—Section 17 of the Act is amended by

13 striking subsection (k) and inserting the following:

14 ‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A

15 State participating in the program established under this

16 section shall provide sufficient training, technical assist17 ance, and monitoring to facilitate effective operation of the

18 program. The Secretary shall assist the State in develop19 ing plans to fulfill the requirements of this subsection.’’.

20 (h) RECORDS.—The second sentence of section 17(m)

21 of the Act is amended by striking ‘‘at all times’’ and in22 serting ‘‘at any reasonable time’’.

23 (i) MODIFICATION OF ADULT CARE FOOD PRO24 GRAM.—Section 17(o) of the Act is amended—

25 (1) in the first sentence of paragraph (1)—
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•S 1867 IS

1 (A) by striking ‘‘adult day care centers’’

2 and inserting ‘‘day care centers for chronically

3 impaired disabled persons’’; and

4 (B) by striking ‘‘to persons 60 years of age

5 or older or’’; and

6 (2) in paragraph (2)—

7 (A) in subparagraph (A)—

8 (i) by striking ‘‘adult day care center’’

9 and inserting ‘‘day care center for chron10 ically impaired disabled persons’’; and

11 (ii) in clause (i)—

12 (I) by striking ‘‘adult’’;

13 (II) by striking ‘‘adults’’ and in14 serting ‘‘persons’’; and

15 (III) by striking ‘‘or persons 60

16 years of age or older’’; and

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

18 ‘‘adult day care services’’ and inserting ‘‘day

19 care services for chronically impaired disabled

20 persons’’.

21 (j) UNNEEDED PROVISION.—Section 17 of the Act

22 is amended by striking subsection (q).

23 (k) CONFORMING AMENDMENTS.—

24 (1) Section 17B(f) of the Act (42 U.S.C.

25 1766b(f)) is amended—
505

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1 (A) in the subsection heading, by striking

2 ‘‘AND ADULT’’; and

3 (B) in paragraph (1), by striking ‘‘and

4 adult’’.

5 (2) Section 18(e)(3)(B) of the Act (42 U.S.C.

6 1769(e)(3)(B)) is amended by striking ‘‘and adult’’.

7 (3) Section 25(b)(1)(C) of the Act (42 U.S.C.

8 1769f(b)(1)(C)) is amended by striking ‘‘and adult’’.

9 (4) Section 3(1) of the Healthy Meals for

10 Healthy Americans Act of 1994 (Public Law 103–

11 448) is amended by striking ‘‘and adult’’.

12 (l) EFFECTIVE DATE.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the amendments made by this section

15 shall become effective on the date of enactment of

16 this Act.

17 (2) IMPROVED TARGETING OF DAY CARE HOME

18 REIMBURSEMENTS.—The amendments made by

19 paragraphs (1), (3), and (4) of subsection (e) shall

20 become effective on August 1, 1996.

21 (3) REGULATIONS.—

22 (A) INTERIM REGULATIONS.—Not later

23 than February 1, 1996, the Secretary shall

24 issue interim regulations to implement—
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1 (i) the amendments made by para2 graphs (1), (3), and (4) of subsection (e);

3 and

4 (ii) section 17(f)(3)(C) of the National

5 School Lunch Act (42 U.S.C.

6 1766(f)(3)(C)).

7 (B) FINAL REGULATIONS.—Not later than

8 August 1, 1996, the Secretary shall issue final

9 regulations to implement the provisions of law

10 referred to in subparagraph (A).

11 (m) STUDY OF IMPACT OF AMENDMENTS ON PRO12 GRAM PARTICIPATION AND FAMILY DAY CARE LICENS13 ING.—

14 (1) IN GENERAL.—The Secretary of Agri15 culture, in conjunction with the Secretary of Health

16 and Human Services, shall study the impact of the

17 amendments made by this section on—

18 (A) the number of family day care homes

19 participating in the child care food program es20 tablished under section 17 of the National

21 School Lunch Act (42 U.S.C. 1766);

22 (B) the number of day care home sponsor23 ing organizations participating in the program;

24 (C) the number of day care homes that are

25 licensed, certified, registered, or approved by
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•S 1867 IS

1 each State in accordance with regulations is2 sued by the Secretary;

3 (D) the rate of growth of the numbers re4 ferred to in subparagraphs (A) through (C);

5 (E) the nutritional adequacy and quality of

6 meals served in family day care homes that—

7 (i) received reimbursement under the

8 program prior to the amendments made by

9 this section but do not receive reimburse10 ment after the amendments made by this

11 section; or

12 (ii) received full reimbursement under

13 the program prior to the amendments

14 made by this section but do not receive full

15 reimbursement after the amendments

16 made by this section; and

17 (F) the proportion of low-income children

18 participating in the program prior to the

19 amendments made by this section and the pro20 portion of low-income children participating in

21 the program after the amendments made by

22 this section.

23 (2) REQUIRED DATA.—Each State agency par24 ticipating in the child care food program under sec25 tion 17 of the National School Lunch Act (42
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1 U.S.C. 1766) shall submit to the Secretary data

2 on—

3 (A) the number of family day care homes

4 participating in the program on July 31, 1996,

5 and July 31, 1997;

6 (B) the number of family day care homes

7 licensed, certified, registered, or approved for

8 service on July 31, 1996, and July 31, 1997;

9 and

10 (C) such other data as the Secretary may

11 require to carry out this subsection.

12 (3) SUBMISSION OF REPORT.—Not later than 2

13 years after the effective date of this section, the Sec14 retary shall submit the study required under this

15 subsection to the Committee on Economic and Edu16 cational Opportunities of the House of Representa17 tives and the Committee on Agriculture, Nutrition,

18 and Forestry of the Senate.

19 SEC. 811. PILOT PROJECTS.

20 (a) UNIVERSAL FREE PILOT.—Section 18(d) of the

21 National School Lunch Act (42 U.S.C. 1769(d)) is amend22 ed—

23 (1) by striking paragraph (3); and

24 (2) by redesignating paragraphs (4) and (5) as

25 paragraphs (3) and (4), respectively.
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1 (b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Sec2 tion 18(e) of the Act is amended—

3 (1) in paragraph (1)—

4 (A) in subparagraph (A)—

5 (i) by striking ‘‘(A)’’; and

6 (ii) by striking ‘‘shall’’ and inserting

7 ‘‘may’’; and

8 (B) by striking subparagraph (B); and

9 (2) by striking paragraph (5) and inserting the

10 following:

11 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

12 There are authorized to be appropriated to carry out

13 this subsection such sums as are necessary for each

14 of fiscal years 1997 and 1998.’’.

15 (c) ELIMINATING PROJECTS.—Section 18 of the Act

16 is amended—

17 (1) by striking subsections (a) and (g) through

18 (i); and

19 (2) by redesignating subsections (b) through

20 (f), as so amended, as subsections (a) through (e),

21 respectively.

22 (d) CONFORMING AMENDMENT.—Section

23 17B(d)(1)(A) of the Act (42 U.S.C. 1766b(d)(1)(A)) is

24 amended by striking ‘‘18(c)’’ and inserting ‘‘18(b)’’.
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1 SEC. 812. REDUCTION OF PAPERWORK.

2 Section 19 of the National School Lunch Act (42

3 U.S.C. 1769a) is repealed.

4 SEC. 813. INFORMATION ON INCOME ELIGIBILITY.

5 Section 23 of the National School Lunch Act (42

6 U.S.C. 1769d) is repealed.

7 SEC. 814. NUTRITION GUIDANCE FOR CHILD NUTRITION

8 PROGRAMS.

9 Section 24 of the National School Lunch Act (42

10 U.S.C. 1769e) is repealed.

11 SEC. 815. INFORMATION CLEARINGHOUSE.

12 Section 26 of the National School Lunch Act (42

13 U.S.C. 1769g) is repealed.

14 Subtitle B—Child Nutrition Act of

15 1966

16 SEC. 821. SPECIAL MILK PROGRAM.

17 (a) DEFINITION.—Section 3(a)(3) of the Child Nutri18 tion Act of 1966 (42 U.S.C. 1772(a)(3)) is amended by

19 striking ‘‘the Trust Territory of the Pacific Islands’’ and

20 inserting ‘‘the Commonwealth of the Northern Mariana

21 Islands’’.

22 (b) ADJUSTMENTS TO REIMBURSEMENTS.—

23 (1) IN GENERAL.—Section 3(a) of the Act is

24 amended by striking paragraph (8) and inserting the

25 following:

26 ‘‘(8) ADJUSTMENTS.—
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1 ‘‘(A) IN GENERAL.—Except as otherwise

2 provided in this paragraph, in the case of each

3 school year, the Secretary shall—

4 ‘‘(i) base the adjustment made under

5 paragraph (7) on the amount of the

6 unrounded adjustment for the preceding

7 school year;

8 ‘‘(ii) adjust the resulting amount in

9 accordance with paragraph (7); and

10 ‘‘(iii) round the result to the nearest

11 lower cent increment.

12 ‘‘(B) ADJUSTMENT FOR 12-MONTH PERIOD

13 BEGINNING JULY 1, 1996.—In the case of the

14 12-month period beginning July 1, 1996, the

15 minimum rate shall be the same as the mini16 mum rate in effect on June 30, 1996, rounded

17 to the nearest lower cent increment.

18 ‘‘(C) ADJUSTMENT FOR SCHOOL YEAR BE19 GINNING JULY 1, 1997.—In the case of the

20 school year beginning July 1, 1997, the Sec21 retary shall—

22 ‘‘(i) base the adjustment made under

23 paragraph (7) on the amount of the

24 unrounded adjustment for the minimum
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1 rate for the school year beginning July 1,

2 1996;

3 ‘‘(ii) adjust the resulting amount to

4 reflect changes in the Producer Price

5 Index for Fresh Processed Milk published

6 by the Bureau of Labor Statistics of the

7 Department of Labor for the most recent

8 12-month period for which the data are

9 available; and

10 ‘‘(iii) round the result to the nearest

11 lower cent increment.’’.

12 (2) EFFECTIVE DATE.—The amendment made

13 by paragraph (1) shall become effective on July 1,

14 1996.

15 SEC. 822. REIMBURSEMENT RATES FOR FREE AND RE16 DUCED PRICE BREAKFASTS.

17 (a) IN GENERAL.—Section 4(b) of the Child Nutri18 tion Act of 1966 (42 U.S.C. 1773(b)) is amended—

19 (1) in paragraph (1)(B)—

20 (A) in the first sentence, by striking ‘‘sec21 tion 11(a)’’ and inserting ‘‘subparagraphs (B)

22 through (D) of section 11(a)(3)’’; and

23 (B) in the second sentence, by striking ‘‘,

24 adjusted to the nearest one-fourth cent’’ and in25 serting ‘‘(as adjusted pursuant to subpara-
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•S 1867 IS

1 graphs (B) through (D) of section 11(a)(3) of

2 the National School Lunch Act (42 U.S.C.

3 1759a(a)(3)))’’; and

4 (2) in paragraph (2)(B)(ii)—

5 (A) by striking ‘‘nearest one-fourth cent’’

6 and inserting ‘‘nearest lower cent increment for

7 the applicable school year’’; and

8 (B) by inserting before the period at the

9 end the following: ‘‘, and the adjustment re10 quired by this clause shall be based on the

11 unrounded adjustment for the preceding school

12 year’’.

13 (b) EFFECTIVE DATE.—The amendments made by

14 subsection (a) shall become effective on July 1, 1996.

15 SEC. 823. FREE AND REDUCED PRICE POLICY STATEMENT.

16 Section 4(b)(1) of the Child Nutrition Act of 1966

17 (42 U.S.C. 1773(b)(1)) is amended by adding at the end

18 the following:

19 ‘‘(E) FREE AND REDUCED PRICE POLICY

20 STATEMENT.—After the initial submission, a

21 school shall not be required to submit a free

22 and reduced price policy statement to a State

23 educational agency under this Act unless there

24 is a substantive change in the free and reduced

25 price policy of the school. A routine change in
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1 the policy of a school, such as an annual adjust2 ment of the income eligibility guidelines for free

3 and reduced price meals, shall not be sufficient

4 cause for requiring the school to submit a policy

5 statement.’’.

6 SEC. 824. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

7 (a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD

8 PREPARATION.—Section 4(e)(1) of the Child Nutrition

9 Act of 1966 (42 U.S.C. 1773(e)(1)) is amended—

10 (1) in subparagraph (A), by striking ‘‘(A)’’; and

11 (2) by striking subparagraph (B).

12 (b) EXPANSION OF PROGRAM; STARTUP AND EXPAN13 SION COSTS.—

14 (1) IN GENERAL.—Section 4 of the Act is

15 amended by striking subsections (f) and (g).

16 (2) EFFECTIVE DATE.—The amendments made

17 by paragraph (1) shall become effective on October

18 1, 1996.

19 SEC. 825. STATE ADMINISTRATIVE EXPENSES.

20 (a) USE OF FUNDS FOR COMMODITY DISTRIBUTION

21 ADMINISTRATION; STUDIES.—Section 7 of the Child Nu22 trition Act of 1966 (42 U.S.C. 1776) is amended—

23 (1) by striking subsections (e) and (h); and

24 (2) by redesignating subsections (f), (g), and (i)

25 as subsections (e), (f), and (g), respectively.
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1 (b) APPROVAL OF CHANGES.—Section 7(e) of the

2 Act, as so redesignated, is amended—

3 (1) by striking ‘‘each year an annual plan’’ and

4 inserting ‘‘the initial fiscal year a plan’’; and

5 (2) by adding at the end the following: ‘‘After

6 submitting the initial plan, a State shall only be re7 quired to submit to the Secretary for approval a

8 substantive change in the plan.’’.

9 SEC. 826. REGULATIONS.

10 Section 10 of the Child Nutrition Act of 1966 (42

11 U.S.C. 1779) is amended—

12 (1) in subsection (b)—

13 (A) in paragraph (1), by striking ‘‘(1)’’;

14 and

15 (B) by striking paragraphs (2) through

16 (4); and

17 (2) in subsection (c)—

18 (A) by striking ‘‘may’’ and inserting

19 ‘‘shall’’;

20 (B) by inserting ‘‘, except the program au21 thorized under section 17,’’ after ‘‘under this

22 Act’’; and

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

24 ‘‘Such regulations shall prohibit the transfer of

25 funds that are used to support meals served to
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•S 1867 IS

1 children with incomes below the income eligi2 bility criteria for free or reduced price meals, as

3 provided in section 9(b) of the National School

4 Lunch Act.’’.

5 SEC. 827. PROHIBITIONS.

6 Section 11(a) of the Child Nutrition Act of 1966 (42

7 U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec8 retary nor the State shall’’ and inserting ‘‘the Secretary

9 shall not’’.

10 SEC. 828. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

11 Section 15 of the Child Nutrition Act of 1966 (42

12 U.S.C. 1784) is amended—

13 (1) in paragraph (1), by striking ‘‘the Trust

14 Territory of the Pacific Islands’’ and inserting ‘‘the

15 Commonwealth of the Northern Mariana Islands’’;

16 and

17 (2) in the first sentence of paragraph (3)—

18 (A) in subparagraph (A), by inserting

19 ‘‘and’’ at the end; and

20 (B) by striking ‘‘, and (C)’’ and all that

21 follows through ‘‘Governor of Puerto Rico’’.

22 SEC. 829. ACCOUNTS AND RECORDS.

23 The second sentence of section 16(a) of the Child Nu24 trition Act of 1966 (42 U.S.C. 1785(a)) is amended by
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•S 1867 IS

1 striking ‘‘at all times be available’’ and inserting ‘‘be avail2 able at any reasonable time’’.

3 SEC. 830. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

4 FOR WOMEN, INFANTS, AND CHILDREN.

5 (a) DEFINITIONS.—Section 17(b) of the Child Nutri6 tion Act of 1966 (42 U.S.C. 1786(b)) is amended—

7 (1) in paragraph (15)(B)(iii), by inserting ‘‘of

8 not more than 90 days’’ after ‘‘accommodation’’;

9 and

10 (2) in paragraph (16)—

11 (A) in subparagraph (A), by adding ‘‘and’’

12 at the end; and

13 (B) in subparagraph (B), by striking ‘‘;

14 and’’ and inserting a period; and

15 (C) by striking subparagraph (C).

16 (b) SECRETARY’S PROMOTION OF WIC.—Section

17 17(c) of the Act is amended by striking paragraph (5).

18 (c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the

19 Act is amended by striking paragraph (4).

20 (d) NUTRITION EDUCATION AND DRUG ABUSE EDU21 CATION.—Section 17(e) of the Act is amended—

22 (1) in the first sentence of paragraph (1), by

23 striking ‘‘shall ensure’’ and all that follows through

24 ‘‘is provided’’ and inserting ‘‘shall provide nutrition

25 education and may provide drug abuse education’’;
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•S 1867 IS

1 (2) in paragraph (2), by striking the third sen2 tence;

3 (3) by striking paragraph (4) and inserting the

4 following:

5 ‘‘(4) INFORMATION.—The State agency may

6 provide a local agency with materials describing

7 other programs for which participants in the pro8 gram may be eligible.’’;

9 (4) in paragraph (5), by striking ‘‘The State’’

10 and all that follows through ‘‘local agency shall’’ and

11 inserting ‘‘A local agency may’’; and

12 (5) by striking paragraph (6).

13 (e) STATE PLAN.—Section 17(f) of the Act is amend14 ed—

15 (1) in paragraph (1)—

16 (A) in subparagraph (A)—

17 (i) by striking ‘‘annually to the Sec18 retary, by a date specified by the Sec19 retary, a’’ and inserting ‘‘to the Secretary,

20 by a date specified by the Secretary, an

21 initial’’; and

22 (ii) by adding at the end the follow23 ing: ‘‘After submitting the initial plan, a

24 State shall only be required to submit to
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1 the Secretary for approval a substantive

2 change in the plan.’’;

3 (B) in subparagraph (C)—

4 (i) by striking clause (iii) and insert5 ing the following:

6 ‘‘(iii) a plan to coordinate operations under the

7 program with other services or programs that may

8 benefit participants in, and applicants for, the pro9 gram;’’;

10 (ii) in clause (vi), by inserting after

11 ‘‘in the State’’ the following: ‘‘(including a

12 plan to improve access to the program for

13 participants and prospective applicants

14 who are employed, or who reside in rural

15 areas)’’;

16 (iii) by striking clauses (vii), (ix), (x),

17 and (xii);

18 (iv) in clause (xiii), by striking ‘‘may

19 require’’ and inserting ‘‘may reasonably re20 quire’’; and

21 (v) by redesignating clauses (viii),

22 (xi), and (xiii), as so amended, as clauses

23 (vii), (viii), and (ix), respectively;

24 (C) by striking subparagraph (D); and
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1 (D) by redesignating subparagraph (E) as

2 subparagraph (D);

3 (2) by striking paragraphs (2), (6), (8), (20),

4 (22), and (24);

5 (3) in the second sentence of paragraph (5), by

6 striking ‘‘at all times be available’’ and inserting ‘‘be

7 available at any reasonable time’’;

8 (4) in paragraph (9)(B), by striking the second

9 sentence;

10 (5) in the first sentence of paragraph (11), by

11 striking ‘‘, including standards that will ensure suffi12 cient State agency staff’’;

13 (6) in paragraph (12), by striking the third sen14 tence;

15 (7) in paragraph (14), by striking ‘‘shall’’ and

16 inserting ‘‘may’’;

17 (8) in paragraph (17), by striking ‘‘and to ac18 commodate’’ and all that follows through ‘‘facili19 ties’’;

20 (9) in paragraph (19), by striking ‘‘shall’’ and

21 inserting ‘‘may’’; and

22 (10) by redesignating paragraphs (3), (4), (5),

23 (7), (9) through (19), (21), and (23), as so amend24 ed, as paragraphs (2), (3), (4), (5), (6) through

25 (16), (17), and (18), respectively.
521

•S 1867 IS

1 (f) INFORMATION.—Section 17(g) of the Act is

2 amended—

3 (1) in paragraph (5), by striking ‘‘the report re4 quired under subsection (d)(4)’’ and inserting ‘‘re5 ports on program participant characteristics’’; and

6 (2) by striking paragraph (6).

7 (g) PROCUREMENT OF INFANT FORMULA.—

8 (1) IN GENERAL.—Section 17(h) of the Act is

9 amended—

10 (A) in paragraph (4)(E), by striking ‘‘and,

11 on’’ and all that follows through ‘‘(d)(4)’’;

12 (B) in paragraph (8)—

13 (i) by striking subparagraphs (A),

14 (C), and (M);

15 (ii) in subparagraph (G)—

16 (I) in clause (i), by striking ‘‘(i)’’;

17 and

18 (II) by striking clauses (ii)

19 through (ix);

20 (iii) in subparagraph (I), by striking

21 ‘‘Secretary—’’ and all that follows through

22 ‘‘(v) may’’ and inserting ‘‘Secretary may’’;

23 (iv) by redesignating subparagraphs

24 (B) and (D) through (L) as subparagraphs

25 (A) and (B) through (J), respectively;
522

•S 1867 IS

1 (v) in subparagraph (A)(i), as so re2 designated, by striking ‘‘subparagraphs

3 (C), (D), and (E)(iii), in carrying out sub4 paragraph (A),’’ and inserting ‘‘subpara5 graphs (B) and (C)(iii),’’;

6 (vi) in subparagraph (B)(i), as so re7 designated, by striking ‘‘subparagraph

8 (B)’’ each place it appears and inserting

9 ‘‘subparagraph (A)’’; and

10 (vii) in subparagraph (C)(iii), as so

11 redesignated, by striking ‘‘subparagraph

12 (B)’’ and inserting ‘‘subparagraph (A)’’;

13 and

14 (C) in paragraph (10)(A), by striking

15 ‘‘shall’’ and inserting ‘‘may’’.

16 (2) APPLICATION.—The amendments made by

17 paragraph (1) shall not apply to a contract for the

18 procurement of infant formula under section

19 17(h)(8) of the Act that is in effect on the effective

20 date of this subsection.

21 (h) NATIONAL ADVISORY COUNCIL ON MATERNAL,

22 INFANT, AND FETAL NUTRITION.—Section 17(k)(3) of

23 the Act is amended by striking ‘‘Secretary shall designate’’

24 and inserting ‘‘Council shall elect’’.
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1 (i) COMPLETED STUDY; COMMUNITY COLLEGE DEM2 ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS3 TEM.—Section 17 of the Act is amended by striking sub4 sections (n), (o), and (p).

5 (j) DISQUALIFICATION OF VENDORS WHO ARE DIS6 QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Sec7 tion 17 of the Act, as so amended, is further amended

8 by adding at the end the following:

9 ‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE

10 DISQUALIFIED UNDER THE FOOD STAMP PROGRAM.—

11 ‘‘(1) IN GENERAL.—The Secretary shall issue

12 regulations providing criteria for the disqualification

13 under this section of an approved vendor that is dis14 qualified from accepting benefits under the food

15 stamp program established under the Food Stamp

16 Act of 1977 (7 U.S.C. 2011 et seq.).

17 ‘‘(2) TERMS.—A disqualification under para18 graph (1)—

19 ‘‘(A) shall be for the same period as the

20 disqualification from the program referred to in

21 paragraph (1);

22 ‘‘(B) may begin at a later date than the

23 disqualification from the program referred to in

24 paragraph (1); and
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•S 1867 IS

1 ‘‘(C) shall not be subject to judicial or ad2 ministrative review.’’.

3 SEC. 831. CASH GRANTS FOR NUTRITION EDUCATION.

4 Section 18 of the Child Nutrition Act of 1966 (42

5 U.S.C. 1787) is repealed.

6 SEC. 832. NUTRITION EDUCATION AND TRAINING.

7 (a) FINDINGS.—Section 19 of the Child Nutrition

8 Act of 1966 (42 U.S.C. 1788) is amended—

9 (1) in subsection (a), by striking ‘‘that—’’ and

10 all that follows through the period at the end and

11 inserting ‘‘that effective dissemination of scientif12 ically valid information to children participating or

13 eligible to participate in the school lunch and related

14 child nutrition programs should be encouraged.’’;

15 and

16 (2) in subsection (b), by striking ‘‘encourage’’

17 and all that follows through ‘‘establishing’’ and in18 serting ‘‘establish’’.

19 (b) USE OF FUNDS.—Section 19(f) of the Act is

20 amended—

21 (1) in paragraph (1)—

22 (A) by striking subparagraph (B); and

23 (B) in subparagraph (A)—

24 (i) by striking ‘‘(A)’’;
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•S 1867 IS

1 (ii) by striking clauses (ix) through

2 (xix);

3 (iii) by redesignating clauses (i)

4 through (viii) and (xx) as subparagraphs

5 (A) through (H) and (I), respectively; and

6 (iv) in subparagraph (H), as so redes7 ignated, by inserting ‘‘and’’ at the end;

8 (2) by striking paragraphs (2) and (4); and

9 (3) by redesignating paragraph (3) as para10 graph (2).

11 (c) ACCOUNTS, RECORDS, AND REPORTS.—The sec12 ond sentence of section 19(g)(1) of the Act is amended

13 by striking ‘‘at all times be available’’ and inserting ‘‘be

14 available at any reasonable time’’.

15 (d) STATE COORDINATORS FOR NUTRITION; STATE

16 PLAN.—Section 19(h) of the Act is amended—

17 (1) in the second sentence of paragraph (1)—

18 (A) by striking ‘‘as provided in paragraph

19 (2) of this subsection’’; and

20 (B) by striking ‘‘as provided in paragraph

21 (3) of this subsection’’;

22 (2) in paragraph (2), by striking the second

23 and third sentences; and

24 (3) by striking paragraph (3).
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•S 1867 IS

1 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

2 19(i) of the Act is amended—

3 (1) in the first sentence of paragraph (2)(A), by

4 striking ‘‘and each succeeding fiscal year’’;

5 (2) by redesignating paragraphs (3) and (4) as

6 paragraphs (4) and (5), respectively; and

7 (3) by inserting after paragraph (2) the follow8 ing:

9 ‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

10 ‘‘(A) IN GENERAL.—There are authorized

11 to be appropriated to carry out this section

12 $10,000,000 for each of fiscal years 1997

13 through 2002.

14 ‘‘(B) GRANTS.—

15 ‘‘(i) IN GENERAL.—Grants to each

16 State from the amounts made available

17 under subparagraph (A) shall be based on

18 a rate of 50 cents for each child enrolled

19 in schools or institutions within the State,

20 except that no State shall receive an

21 amount less than $75,000 per fiscal year.

22 ‘‘(ii) INSUFFICIENT FUNDS.—If the

23 amount made available for any fiscal year

24 is insufficient to pay the amount to which

25 each State is entitled under clause (i), the
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•S 1867 IS

1 amount of each grant shall be ratably re2 duced.’’.

3 (f) ASSESSMENT.—Section 19 of the Act is amended

4 by striking subsection (j).

5 (g) EFFECTIVE DATE.—The amendments made by

6 subsection (e) shall become effective on October 1, 1996.

7 SEC. 833. BREASTFEEDING PROMOTION PROGRAM.

8 Section 21 of the Child Nutrition Act of 1966 (42

9 U.S.C. 1790) is repealed.

10 TITLE IX—FOOD STAMP PRO11 GRAM AND RELATED PRO12 GRAMS

13 SEC. 901. DEFINITION OF CERTIFICATION PERIOD.

14 Section 3(c) of the Food Stamp Act of 1977 (7

15 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro16 vided’’ and all that follows and inserting the following:

17 ‘‘The certification period shall not exceed 12 months, ex18 cept that the certification period may be up to 24 months

19 if all adult household members are elderly or disabled. A

20 State agency shall have at least 1 contact with each cer21 tified household every 12 months.’’.

22 SEC. 902. EXPANDED DEFINITION OF ‘‘COUPON’’.

23 Section 3(d) of the Food Stamp Act of 1977 (7

24 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi25 cate’’ and inserting ‘‘type of certificate, authorization
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•S 1867 IS

1 cards, cash or checks issued in lieu of coupons or access

2 devices, including, but not limited to, electronic benefit

3 transfer cards and personal identification numbers’’.

4 SEC. 903. TREATMENT OF CHILDREN LIVING AT HOME.

5 The second sentence of section 3(i) of the Food

6 Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by

7 striking ‘‘(who are not themselves parents living with their

8 children or married and living with their spouses)’’.

9 SEC. 904. ADJUSTMENT OF THRIFTY FOOD PLAN.

10 The second sentence of section 3(o) of the Food

11 Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—

12 (1) by striking ‘‘shall (1) make’’ and inserting

13 the following:

14 ‘‘shall—

15 ‘‘(1) make’’;

16 (2) by striking ‘‘scale, (2) make’’ and inserting

17 the following:

18 ‘‘scale;

19 ‘‘(2) make’’;

20 (3) by striking ‘‘Alaska, (3) make’’ and insert21 ing the following:

22 ‘‘Alaska;

23 ‘‘(3) make’’; and
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1 (4) by striking ‘‘Columbia, (4) through’’ and all

2 that follows through the end of the subsection and

3 inserting the following:

4 ‘‘Columbia; and

5 ‘‘(4) on October 1, 1996, and each October 1

6 thereafter, adjust the cost of the diet to reflect the

7 cost of the diet, in the preceding June, and round

8 the result to the nearest lower dollar increment for

9 each household size, except that on October 1, 1996,

10 the Secretary may not reduce the cost of the diet in

11 effect on September 30, 1996.’’.

12 SEC. 905. DEFINITION OF HOMELESS INDIVIDUAL.

13 Section 3(s)(2)(C) of the Food Stamp Act of 1977

14 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

15 more than 90 days’’ after ‘‘temporary accommodation’’.

16 SEC. 906. ENERGY ASSISTANCE AND OTHER INCOME EX17 CLUSIONS.

18 (a) IN GENERAL.—Section 5(d)(11) of the Food

19 Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended to read

20 as follows: ‘‘(11) a 1-time payment or allowance made

21 under a Federal or State law for the costs of weatheriza22 tion or emergency repair or replacement of an unsafe or

23 inoperative furnace or other heating or cooling device,’’.

24 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 5(k) of the Food Stamp Act of

2 1977 Act (7 U.S.C. 2014(k)) is amended—

3 (A) in paragraph (1)—

4 (i) in subparagraph (A), by striking

5 ‘‘plan for aid to families with dependent

6 children approved’’ and inserting ‘‘program

7 funded’’; and

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

9 ‘‘, not including energy or utility-cost as10 sistance,’’;

11 (B) by amending paragraph (2)(C) to read

12 as follows:

13 ‘‘(C) a payment or allowance described in sub14 section (d)(11);’’; and

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

16 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY17 MENTS.—

18 ‘‘(A) ENERGY ASSISTANCE PAYMENTS.—

19 For purposes of subsection (d)(1), a payment

20 made under a Federal or State law to provide

21 energy assistance to a household shall be con22 sidered money payable directly to the house23 hold.

24 ‘‘(B) ENERGY ASSISTANCE EXPENSES.—

25 For purposes of subsection (e)(7), an expense
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1 paid on behalf of a household under a Federal

2 or State law to provide energy assistance shall

3 be considered an out-of-pocket expense incurred

4 and paid by the household.’’.

5 (2) Section 2605(f) of the Low-Income Home

6 Energy Assistance Act of 1981 (42 U.S.C. 8624(f))

7 is amended—

8 (A) by striking ‘‘(f)(1) Notwithstanding’’

9 and inserting ‘‘(f) Notwithstanding’’;

10 (B) in paragraph (1), by striking ‘‘food

11 stamps,’’; and

12 (C) by striking paragraph (2).

13 (c) EXCLUSION OF CERTAIN JTPA INCOME.—Sec14 tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)

15 is amended—

16 (1) in subsection (d)—

17 (A) by striking ‘‘and (16)’’ and inserting

18 ‘‘(16)’’; and

19 (B) by inserting before the period at the

20 end the following: ‘‘, and (17) income received

21 under the Job Training Partnership Act (29

22 U.S.C. 1501 et seq.) by a household member

23 who is less than 19 years of age’’; and

24 (2) in subsection (l), by striking ‘‘under section

25 204(b)(1)(C)’’ and all that follows and inserting
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1 ‘‘shall be considered earned income for purposes of

2 the food stamp program.’’.

3 (d) EXCLUSION OF LIFE INSURANCE POLICIES.—

4 Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.

5 2014(g)) is amended by adding at the end the following:

6 ‘‘(6) The Secretary shall exclude from financial re7 sources the cash value of any life insurance policy owned

8 by a member of a household.’’.

9 (e) IN-TANDEM EXCLUSIONS FROM INCOME.—Sec10 tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)

11 is amended by adding at the end the following:

12 ‘‘(n) Whenever a Federal statute enacted after the

13 date of the enactment of this Act excludes funds from in14 come for purposes of determining eligibility, benefit levels,

15 or both under State plans approved under part A of title

16 IV of the Social Security Act, then such funds shall be

17 excluded from income for purposes of determining eligi18 bility, benefit levels, or both, respectively, under the food

19 stamp program of households all of whose members re20 ceive benefits under a State plan approved under part A

21 of title IV of the Social Security Act.’’.

22 SEC. 907. DEDUCTIONS FROM INCOME.

23 Section 5(e) of the Food Stamp Act of 1977 (7

24 U.S.C. 2014(e)) is amended—

25 (1) in the 1st sentence—
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1 (A) by striking ‘‘$85’’ and inserting

2 ‘‘$134’’;

3 (B) by striking ‘‘$145, $120, $170, and

4 $75, respectively’’ and inserting the following:

5 ‘‘$229, $189, $269, and $118, respectively, for fiscal year

6 1996; and a standard deduction of $120 a month for each

7 household, except that households in Alaska, Hawaii,

8 Guam, and the Virgin Islands of the United States shall

9 be allowed a standard deduction of $204, $169, $240, and

10 $105, respectively, for fiscal years thereafter, adjusted in

11 accordance with this subsection’’;

12 (2) in the 2nd sentence by striking ‘‘Such’’ and

13 all that follows through ‘‘each October 1 thereafter,’’

14 and inserting ‘‘On October 1, 2001, and on each Oc15 tober 1 thereafter, such standard deductions shall be

16 adjusted’’;

17 (3) by striking the 14th sentence; and

18 (4) by inserting after the 9th sentence the fol19 lowing:

20 ‘‘A State agency may make use of a standard utility allow21 ance mandatory for all households with qualifying utility

22 costs if the State agency has developed 1 or more stand23 ards that include the cost of heating and cooling and 1

24 or more standards that do not include the cost of heating

25 and cooling, and if the Secretary finds that the standards
534

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1 will not result in an increased cost to the Secretary. A

2 State agency that has not made the use of a standard util3 ity allowance mandatory shall allow a household to switch,

4 at the end of a certification period, between the standard

5 utility allowance and a deduction based on the actual util6 ity costs of the household.’’.

7 SEC. 908. VEHICLE ALLOWANCE.

8 Section 5(g)(2) of the Food Stamp Act of 1977 (7

9 U.S.C. 2014(g)(2)) is amended to read as follows:

10 ‘‘(2) INCLUDED ASSETS.—

11 ‘‘(A) IN GENERAL.—Subject to the other

12 provisions of this paragraph, the Secretary

13 shall, in prescribing inclusions in, and exclu14 sions from, financial resources, follow the regu15 lations in force as of June 1, 1982 (other than

16 those relating to licensed vehicles and inacces17 sible resources).

18 ‘‘(B) ADDITIONAL INCLUDED ASSETS.—

19 The Secretary shall include in financial re20 sources—

21 ‘‘(i) any boat, snowmobile, or airplane

22 used for recreational purposes;

23 ‘‘(ii) any vacation home;

24 ‘‘(iii) any mobile home used primarily

25 for vacation purposes;
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•S 1867 IS

1 ‘‘(iv) subject to subparagraph (C), any

2 licensed vehicle that is used for household

3 transportation or to obtain or continue em4 ployment to the extent that the fair market

5 value of the vehicle exceeds a level set by

6 the Secretary, which shall be $4,600 begin7 ning October 1, 1995, and adjusted on

8 each October 1 thereafter to reflect

9 changes in the new car component of the

10 Consumer Price Index for All Urban Con11 sumers published by the Bureau of Labor

12 Statistics for the 12-month period ending

13 on June 30 preceding the date of such ad14 justment and rounded to the nearest $50;

15 and

16 ‘‘(v) any savings or retirement ac17 count (including an individual account), re18 gardless of whether there is a penalty for

19 early withdrawal.

20 ‘‘(C) EXCLUDED VEHICLES.—A vehicle

21 (and any other property, real or personal, to the

22 extent the property is directly related to the

23 maintenance or use of the vehicle) shall not be

24 included in financial resources under this para25 graph if the vehicle is—
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1 ‘‘(i) used to produce earned income;

2 ‘‘(ii) necessary for the transportation

3 of a physically disabled household member;

4 or

5 ‘‘(iii) depended on by a household to

6 carry fuel for heating or water for home

7 use and provides the primary source of fuel

8 or water, respectively, for the household.’’.

9 SEC. 909. VENDOR PAYMENTS FOR TRANSITIONAL HOUS10 ING COUNTED AS INCOME.

11 Section 5(k)(2) of the Food Stamp Act of 1977 (7

12 U.S.C. 2014(k)(2)) is amended—

13 (1) by striking subparagraph (F); and

14 (2) by redesignating subparagraphs (G) and

15 (H) as subparagraphs (F) and (G), respectively.

16 SEC. 910. INCREASED PENALTIES FOR VIOLATING FOOD

17 STAMP PROGRAM REQUIREMENTS.

18 Section 6(b)(1) of the Food Stamp Act of 1977 (7

19 U.S.C. 2015(b)(1)) is amended—

20 (1) in clause (i)—

21 (A) by striking ‘‘six months’’ and inserting

22 ‘‘1 year’’; and

23 (B) by adding ‘‘and’’ at the end; and

24 (2) striking clauses (ii) and (iii) and inserting

25 the following:
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1 ‘‘(ii) permanently upon—

2 ‘‘(I) the second occasion of any such deter3 mination; or

4 ‘‘(II) the first occasion of a finding by a

5 Federal, State, or local court of the trading of

6 a controlled substance (as defined in section

7 102 of the Controlled Substances Act (21

8 U.S.C. 802)), firearms, ammunition, or explo9 sives for coupons.’’.

10 SEC. 911. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

11 Section 6(b)(1)(ii) of the Food Stamp Act of 1977

12 (7 U.S.C. 2015(b)(1)(iii)), as amended by section 910, is

13 amended—

14 (1) in subclause (I), by striking ‘‘or’’ at the

15 end;

16 (2) in subclause (II), by striking the period at

17 the end and inserting ‘‘; or’’; and

18 (3) by inserting after subclause (II) the follow19 ing:

20 ‘‘(IV) a conviction of an offense under sub21 section (b) or (c) of section 15 involving an

22 item covered by subsection (b) or (c) of section

23 15 having a value of $500 or more.’’.
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•S 1867 IS

1 SEC. 912. DISQUALIFICATION.

2 (a) IN GENERAL.—Section 6(d) of the Food Stamp

3 Act of 1977 (7 U.S.C. 2015(d)) is amended by striking

4 ‘‘(d)(1) Unless otherwise exempted by the provisions’’ and

5 all that follows through paragraph (1) and inserting the

6 following:

7 ‘‘(d) CONDITIONS OF PARTICIPATION.—

8 ‘‘(1) WORK REQUIREMENTS.—

9 ‘‘(A) IN GENERAL.—No physically and

10 mentally fit individual over the age of 15 and

11 under the age of 60 shall be eligible to partici12 pate in the food stamp program if the individ13 ual—

14 ‘‘(i) refuses, at the time of application

15 and every 12 months thereafter, to register

16 for employment in a manner prescribed by

17 the Secretary;

18 ‘‘(ii) refuses without good cause to

19 participate in an employment and training

20 program under paragraph (4), to the ex21 tent required by the State agency;

22 ‘‘(iii) refuses without good cause to

23 accept an offer of employment, at a site or

24 plant not subject to a strike or lockout at

25 the time of the refusal, at a wage not less

26 than the higher of—
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1 ‘‘(I) the applicable Federal or

2 State minimum wage; or

3 ‘‘(II) 80 percent of the wage that

4 would have governed had the mini5 mum hourly rate under section

6 6(a)(1) of the Fair Labor Standards

7 Act of 1938 (29 U.S.C. 206(a)(1))

8 been applicable to the offer of employ9 ment;

10 ‘‘(iv) refuses without good cause to

11 provide a State agency with sufficient in12 formation to allow the State agency to de13 termine the employment status or the job

14 availability of the individual;

15 ‘‘(v) voluntarily and without good

16 cause—

17 ‘‘(I) quits a job; or

18 ‘‘(II) reduces work effort and,

19 after the reduction, the individual is

20 working less than 30 hours per week;

21 or

22 ‘‘(vi) fails to comply with section 20.

23 ‘‘(B) HOUSEHOLD INELIGIBILITY.—If an

24 individual who is the head of a household be25 comes ineligible to participate in the food stamp
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•S 1867 IS

1 program under subparagraph (A), the house2 hold shall, at the option of the State agency,

3 become ineligible to participate in the food

4 stamp program for a period, determined by the

5 State agency, that does not exceed the lesser

6 of—

7 ‘‘(i) the duration of the ineligibility of

8 the individual determined under subpara9 graph (C); or

10 ‘‘(ii) 180 days.

11 ‘‘(C) DURATION OF INELIGIBILITY.—

12 ‘‘(i) FIRST VIOLATION.—The first

13 time that an individual becomes ineligible

14 to participate in the food stamp program

15 under subparagraph (A), the individual

16 shall remain ineligible until the later of—

17 ‘‘(I) the date the individual be18 comes eligible under subparagraph

19 (A);

20 ‘‘(II) the date that is 1 month

21 after the date the individual became

22 ineligible; or

23 ‘‘(III) a date determined by the

24 State agency that is not later than 3
541

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1 months after the date the individual

2 became ineligible.

3 ‘‘(ii) SECOND VIOLATION.—The sec4 ond time that an individual becomes ineli5 gible to participate in the food stamp pro6 gram under subparagraph (A), the individ7 ual shall remain ineligible until the later

8 of—

9 ‘‘(I) the date the individual be10 comes eligible under subparagraph

11 (A);

12 ‘‘(II) the date that is 3 months

13 after the date the individual became

14 ineligible; or

15 ‘‘(III) a date determined by the

16 State agency that is not later than 6

17 months after the date the individual

18 became ineligible.

19 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA20 TION.—The third or subsequent time that

21 an individual becomes ineligible to partici22 pate in the food stamp program under sub23 paragraph (A), the individual shall remain

24 ineligible until the later of—
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•S 1867 IS

1 ‘‘(I) the date the individual be2 comes eligible under subparagraph

3 (A);

4 ‘‘(II) the date that is 6 months

5 after the date the individual became

6 ineligible;

7 ‘‘(III) a date determined by the

8 State agency; or

9 ‘‘(IV) at the option of the State

10 agency, permanently.

11 ‘‘(D) ADMINISTRATION.—

12 ‘‘(i) GOOD CAUSE.—The Secretary

13 shall determine the meaning of good cause

14 for the purpose of this paragraph.

15 ‘‘(ii) VOLUNTARY QUIT.—The Sec16 retary shall determine the meaning of vol17 untarily quitting and reducing work effort

18 for the purpose of this paragraph.

19 ‘‘(iii) DETERMINATION BY STATE

20 AGENCY.—

21 ‘‘(I) IN GENERAL.—Subject to

22 subclause (II) and clauses (i) and (ii),

23 a State agency shall determine—

24 ‘‘(aa) the meaning of any

25 term in subparagraph (A);
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•S 1867 IS

1 ‘‘(bb) the procedures for de2 termining whether an individual

3 is in compliance with a require4 ment under subparagraph (A);

5 and

6 ‘‘(cc) whether an individual

7 is in compliance with a require8 ment under subparagraph (A).

9 ‘‘(II) NOT LESS RESTRICTIVE.—

10 A State agency may not determine a

11 meaning, procedure, or determination

12 under subclause (I) to be less restric13 tive than a comparable meaning, pro14 cedure, or determination under a

15 State program funded under part A of

16 title IV of the Social Security Act (42

17 U.S.C. 601 et seq.).

18 ‘‘(iv) STRIKE AGAINST THE GOVERN19 MENT.—For the purpose of subparagraph

20 (A)(v), an employee of the Federal Govern21 ment, a State, or a political subdivision of

22 a State, who is dismissed for participating

23 in a strike against the Federal Govern24 ment, the State, or the political subdivision
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•S 1867 IS

1 of the State shall be considered to have

2 voluntarily quit without good cause.

3 ‘‘(v) SELECTING A HEAD OF HOUSE4 HOLD.—

5 ‘‘(I) IN GENERAL.—For the pur6 pose of this paragraph, the State

7 agency shall allow the household to se8 lect any adult parent of a child in the

9 household as the head of the house10 hold if all adult household members

11 making application under the food

12 stamp program agree to the selection.

13 ‘‘(II) TIME FOR MAKING DES14 IGNATION.—A household may des15 ignate the head of the household

16 under subclause (I) each time the

17 household is certified for participation

18 in the food stamp program, but may

19 not change the designation during a

20 certification period unless there is a

21 change in the composition of the

22 household.

23 ‘‘(vi) CHANGE IN HEAD OF HOUSE24 HOLD.—If the head of a household leaves

25 the household during a period in which the
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•S 1867 IS

1 household is ineligible to participate in the

2 food stamp program under subparagraph

3 (B)—

4 ‘‘(I) the household shall, if other5 wise eligible, become eligible to par6 ticipate in the food stamp program;

7 and

8 ‘‘(II) if the head of the household

9 becomes the head of another house10 hold, the household that becomes

11 headed by the individual shall become

12 ineligible to participate in the food

13 stamp program for the remaining pe14 riod of ineligibility.’’.

15 (b) CONFORMING AMENDMENT.—

16 (1) The second sentence of section 17(b)(2) of

17 the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2))

18 is amended by striking ‘‘6(d)(1)(i)’’ and inserting

19 ‘‘6(d)(1)(A)(i)’’.

20 (2) Section 20(f) of the Food Stamp Act of

21 1977 (7 U.S.C. 2029(f)) is amended to read as fol22 lows:

23 ‘‘(f) DISQUALIFICATION.—An individual or a house24 hold may become ineligible under section 6(d)(1) to par-
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1 ticipate in the food stamp program for failing to comply

2 with this section.’’.

3 SEC. 913. CARETAKER EXEMPTION.

4 Section 6(d)(2)(B) of the Food Stamp Act of 1977

5 (7 U.S.C. 2015(d)(2)(B)) is amended to read as follows:

6 ‘‘(B) a parent or other member of a household with re7 sponsibility for the care of (i) a dependent child under the

8 age of 6 or any lower age designated by the State agency

9 that is not under the age of 1, or (ii) an incapacitated

10 person;’’.

11 SEC. 914. EMPLOYMENT AND TRAINING.

12 (a) IN GENERAL.—Section 6(d)(4) of the Food

13 Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—

14 (1) in subparagraph (D)—

15 (A) in clause (i), by striking ‘‘to which the

16 application’’ and all that follows through ‘‘30

17 days or less’’;

18 (B) in clause (ii), by striking ‘‘but with re19 spect’’ and all that follows through ‘‘child

20 care’’; and

21 (C) in clause (iii), by striking ‘‘, on the

22 basis of’’ and all that follows through ‘‘clause

23 (ii)’’ and inserting ‘‘the exemption continues to

24 be valid’’;
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1 (2) in subparagraph (E), by striking the third

2 sentence.

3 (b) FUNDING.—Section 16(h) of the Food Stamp Act

4 of 1977 (7 U.S.C. 2025(h)) is amended by striking

5 ‘‘(h)(1)(A) The Secretary’’ and all that follows through

6 the end of paragraph (1) and inserting the following:

7 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING

8 PROGRAMS.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) AMOUNTS.—To carry out employ11 ment and training programs, the Secretary

12 shall reserve for allocation to State agencies

13 from funds made available for each fiscal year

14 under section 18(a)(1) the amount of

15 $150,000,000 for each of the fiscal years 1996

16 through 2002.

17 ‘‘(B) ALLOCATION.—The Secretary shall

18 allocate the amounts reserved under subpara19 graph (A) among the State agencies using a

20 reasonable formula (as determined by the Sec21 retary) that gives consideration to the popu22 lation in each State affected by section 6(o).

23 ‘‘(C) REALLOCATION.—

24 ‘‘(i) NOTIFICATION.—A State agency

25 shall promptly notify the Secretary if the
548

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1 State agency determines that the State

2 agency will not expend all of the funds al3 located to the State agency under subpara4 graph (B).

5 ‘‘(ii) REALLOCATION.—On notification

6 under clause (i), the Secretary shall reallo7 cate the funds that the State agency will

8 not expend as the Secretary considers ap9 propriate and equitable.

10 ‘‘(D) MINIMUM ALLOCATION.—Notwith11 standing subparagraphs (A) through (C), the

12 Secretary shall ensure that each State agency

13 operating an employment and training program

14 shall receive not less than $50,000 in each fis15 cal year.’’.

16 (d) REPORTS.—Section 16(h) of the Food Stamp Act

17 of 1977 (7 U.S.C. 2025(h)) is amended—

18 (1) in paragraph (5)—

19 (A) by striking ‘‘(5)(A) The Secretary’’

20 and inserting ‘‘(5) The Secretary’’; and

21 (B) by striking subparagraph (B); and

22 (2) by striking paragraph (6).
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1 SEC. 915. COMPARABLE TREATMENT FOR DISQUALIFICA2 TION.

3 (a) IN GENERAL.—Section 6 of the Food Stamp Act

4 of 1977 (7 U.S.C. 2015) is amended by adding at the end

5 the following:

6 ‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA7 TION.—

8 ‘‘(1) IN GENERAL.—If a disqualification is im9 posed on a member of a household for a failure of

10 the member to perform an action required under a

11 Federal, State, or local law relating to a means-test12 ed public assistance program, the State agency may

13 impose the same disqualification on the member of

14 the household under the food stamp program.

15 ‘‘(2) RULES AND PROCEDURES.—If a disquali16 fication is imposed under paragraph (1) for a failure

17 of an individual to perform an action required under

18 part A of title IV of the Social Security Act (42

19 U.S.C. 601 et seq.), the State agency may use the

20 rules and procedures that apply under part A of title

21 IV of such Act to impose the same disqualification

22 under the food stamp program.

23 ‘‘(3) APPLICATION AFTER DISQUALIFICATION

24 PERIOD.—A member of a household disqualified

25 under paragraph (1) may, after the disqualification

26 period has expired, apply for benefits under this Act
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1 and shall be treated as a new applicant, except that

2 a prior disqualification under subsection (d) shall be

3 considered in determining eligibility.’’.

4 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

5 Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—

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

7 end;

8 (2) in paragraph (25), by striking the period at

9 the end and inserting a semicolon; and

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

11 ‘‘(26) the guidelines the State agency uses in

12 carrying out section 6(i); and’’.

13 (c) CONFORMING AMENDMENT.—Section 6(d)(2)(A)

14 of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A))

15 is amended by striking ‘‘that is comparable to a require16 ment of paragraph (1)’’.

17 SEC. 916. DISQUALIFICATION FOR RECEIPT OF MULTIPLE

18 FOOD STAMP BENEFITS.

19 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

20 2015), as amended by section 915, is amended by adding

21 at the end the following:

22 ‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE

23 FOOD STAMP BENEFITS.—An individual shall be ineligible

24 to participate in the food stamp program as a member

25 of any household for a 10-year period if the individual is
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1 found by a State agency to have made, or is convicted

2 in a Federal or State court of having made, a fraudulent

3 statement or representation with respect to the identity

4 or place of residence of the individual in order to receive

5 multiple benefits simultaneously under the food stamp

6 program.’’.

7 SEC. 917. DISQUALIFICATION OF FLEEING FELONS.

8 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

9 2015), as amended by sections 915 and 916, is amended

10 by adding at the end the following:

11 ‘‘(k) DISQUALIFICATION OF FLEEING FELONS.—No

12 member of a household who is otherwise eligible to partici13 pate in the food stamp program shall be eligible to partici14 pate in the program as a member of that or any other

15 household during any period during which the individual

16 is—

17 ‘‘(1) fleeing to avoid prosecution, or custody or

18 confinement after conviction, under the law of the

19 place from which the individual is fleeing, for a

20 crime, or attempt to commit a crime, that is a felony

21 under the law of the place from which the individual

22 is fleeing or that, in the case of New Jersey, is a

23 high misdemeanor under the law of New Jersey; or

24 ‘‘(2) violating a condition of probation or parole

25 imposed under a Federal or State law.’’.
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1 SEC. 918. COOPERATION WITH CHILD SUPPORT AGENCIES.

2 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

3 2015), as amended by sections 915, 916, and 917, is

4 amended by adding at the end the following:

5 ‘‘(l) CUSTODIAL PARENT’S COOPERATION WITH

6 CHILD SUPPORT AGENCIES.—

7 ‘‘(1) IN GENERAL.—At the option of a State

8 agency, subject to paragraphs (2) and (3), no natu9 ral or adoptive parent or other individual (collec10 tively referred to in this subsection as ‘the individ11 ual’) who is living with and exercising parental con12 trol over a child under the age of 18 who has an ab13 sent parent shall be eligible to participate in the food

14 stamp program unless the individual cooperates with

15 the State agency administering the program estab16 lished under part D of title IV of the Social Security

17 Act (42 U.S.C. 651 et seq.)—

18 ‘‘(A) in establishing the paternity of the

19 child (if the child is born out of wedlock); and

20 ‘‘(B) in obtaining support for—

21 ‘‘(i) the child; or

22 ‘‘(ii) the individual and the child.

23 ‘‘(2) GOOD CAUSE FOR NONCOOPERATION.—

24 Paragraph (1) shall not apply to the individual if

25 good cause is found for refusing to cooperate, as de26 termined by the State agency in accordance with
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1 standards prescribed by the Secretary in consulta2 tion with the Secretary of Health and Human Serv3 ices. The standards shall take into consideration cir4 cumstances under which cooperation may be against

5 the best interests of the child.

6 ‘‘(3) FEES.—Paragraph (1) shall not require

7 the payment of a fee or other cost for services pro8 vided under part D of title IV of the Social Security

9 Act (42 U.S.C. 651 et seq.).

10 ‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH

11 CHILD SUPPORT AGENCIES.—

12 ‘‘(1) IN GENERAL.—At the option of a State

13 agency, subject to paragraphs (2) and (3), a puta14 tive or identified noncustodial parent of a child

15 under the age of 18 (referred to in this subsection

16 as ‘the individual’) shall not be eligible to participate

17 in the food stamp program if the individual refuses

18 to cooperate with the State agency administering the

19 program established under part D of title IV of the

20 Social Security Act (42 U.S.C. 651 et seq.)—

21 ‘‘(A) in establishing the paternity of the

22 child (if the child is born out of wedlock); and

23 ‘‘(B) in providing support for the child.

24 ‘‘(2) REFUSAL TO COOPERATE.—
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1 ‘‘(A) GUIDELINES.—The Secretary, in con2 sultation with the Secretary of Health and

3 Human Services, shall develop guidelines on

4 what constitutes a refusal to cooperate under

5 paragraph (1).

6 ‘‘(B) PROCEDURES.—The State agency

7 shall develop procedures, using guidelines devel8 oped under subparagraph (A), for determining

9 whether an individual is refusing to cooperate

10 under paragraph (1).

11 ‘‘(3) FEES.—Paragraph (1) shall not require

12 the payment of a fee or other cost for services pro13 vided under part D of title IV of the Social Security

14 Act (42 U.S.C. 651 et seq.).

15 ‘‘(4) PRIVACY.—The State agency shall provide

16 safeguards to restrict the use of information col17 lected by a State agency administering the program

18 established under part D of title IV of the Social Se19 curity Act (42 U.S.C. 651 et seq.) to purposes for

20 which the information is collected.’’.

21 SEC. 919. DISQUALIFICATION RELATING TO CHILD SUP22 PORT ARREARS.

23 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

24 2015), as amended by sections 915, 916, 917 and 918,

25 is amended by adding at the end the following:
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1 ‘‘(o) DISQUALIFICATION FOR CHILD SUPPORT AR2 REARS.—

3 ‘‘(1) IN GENERAL.—At the option of a State

4 agency, except as provided in paragraph (2), no indi5 vidual shall be eligible to participate in the food

6 stamp program as a member of any household dur7 ing any month that the individual is delinquent in

8 any payment due under a court order for the sup9 port of a child of the individual.

10 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not

11 apply if—

12 ‘‘(A) a court is allowing the individual to

13 delay payment; or

14 ‘‘(B) the individual is complying with a

15 payment plan approved by a court or the State

16 agency designated under part D of title IV of

17 the Social Security Act (42 U.S.C. 651 et seq.)

18 to provide support for the child of the individ19 ual.’’.

20 SEC. 920. WORK REQUIREMENT FOR ABLE-BODIED RECIPI21 ENTS.

22 (a) IN GENERAL.—Section 6 of the Food Stamp Act

23 of 1977 (7 U.S.C. 2015), as amended by sections 915,

24 916, 917, 918, and 919, is amended by adding at the end

25 the following:
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1 ‘‘(p) WORK REQUIREMENT.—

2 ‘‘(1) DEFINITION OF WORK PROGRAM.—In this

3 subsection, the term ‘work program’ means—

4 ‘‘(A) a program under the Job Training

5 Partnership Act (29 U.S.C. 1501 et seq.);

6 ‘‘(B) a program under section 236 of the

7 Trade Act of 1974 (19 U.S.C. 2296); or

8 ‘‘(C) a program of employment or training

9 operated or supervised by a State or local gov10 ernment, as determined appropriate by the Sec11 retary.

12 ‘‘(2) WORK REQUIREMENT.—No individual

13 shall be eligible to participate in the food stamp pro14 gram as a member of any household if, during the

15 preceding 12 months, the individual received food

16 stamp benefits for not less than 6 months during

17 which the individual did not—

18 ‘‘(A) work 20 hours or more per week,

19 averaged monthly;

20 ‘‘(B) participate in a workfare program

21 under section 20 or a comparable State or local

22 workfare program;

23 ‘‘(C) participate in and comply with the re24 quirements of an approved employment and

25 training program under subsection (d)(4); or
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•S 1867 IS

1 ‘‘(D) participate in and comply with the

2 requirements of a work program for 20 hours

3 or more per week.

4 ‘‘(3) EXCEPTION.—Paragraph (2) shall not

5 apply to an individual if the individual is—

6 ‘‘(A) under 18 or over 50 years of age;

7 ‘‘(B) medically certified as physically or

8 mentally unfit for employment;

9 ‘‘(C) a parent or other member of a house10 hold with a dependent child under 18 years of

11 age; or

12 ‘‘(D) otherwise exempt under subsection

13 (d)(2).

14 ‘‘(4) WAIVER.—

15 ‘‘(A) IN GENERAL.—The Secretary may

16 waive the applicability of paragraph (2) to any

17 group of individuals in the State if the Sec18 retary makes a determination that the area in

19 which the individuals reside—

20 ‘‘(i) has an unemployment rate of over

21 8 percent; or

22 ‘‘(ii) does not have a sufficient num23 ber of jobs to provide employment for the

24 individuals.
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•S 1867 IS

1 ‘‘(B) REPORT.—The Secretary shall report

2 the basis for a waiver under subparagraph (A)

3 to the Committee on Agriculture of the House

4 of Representatives and the Committee on Agri5 culture, Nutrition, and Forestry of the Sen6 ate.’’.

7 (b) WORK AND TRAINING PROGRAMS.—Section

8 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.

9 2015(d)(4)) is amended by adding at the end the follow10 ing:

11 ‘‘(O) REQUIRED PARTICIPATION IN WORK

12 AND TRAINING PROGRAMS.—A State agency

13 shall provide an opportunity to participate in

14 the employment and training program under

15 this paragraph to any individual who would oth16 erwise become subject to disqualification under

17 subsection (i).

18 ‘‘(P) COORDINATING WORK REQUIRE19 MENTS.—

20 ‘‘(i) IN GENERAL.—Notwithstanding

21 any other provision of this paragraph, a

22 State agency that meets the participation

23 requirements of clause (ii) may operate the

24 employment and training program of the

25 State for individuals who are members of
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1 households receiving allotments under this

2 Act as part of a program operated by the

3 State under part F of title IV of the Social

4 Security Act (42 U.S.C. 681 et seq.), sub5 ject to the requirements of such Act.

6 ‘‘(ii) PARTICIPATION REQUIRE7 MENTS.—A State agency may exercise the

8 option under clause (i) if the State agency

9 provides an opportunity to participate in

10 an approved employment and training pro11 gram to an individual who is—

12 ‘‘(I) subject to subsection (i);

13 ‘‘(II) not employed at least an

14 average of 20 hours per week;

15 ‘‘(III) not participating in a

16 workfare program under section 20

17 (or a comparable State or local pro18 gram); and

19 ‘‘(IV) not subject to a waiver

20 under subsection (i)(4).’’.

21 SEC. 921. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

22 SYSTEMS.

23 (a) IN GENERAL.—Section 7(i) of the Food Stamp

24 Act of 1977 (7 U.S.C. 2016(i)) is amended—
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•S 1867 IS

1 (1) by amending paragraph (1) to read as fol2 lows:

3 ‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—

4 ‘‘(A) IMPLEMENTATION.—Each State

5 agency shall implement an electronic benefit

6 transfer system in which household benefits de7 termined under section 8(a) or 24 are issued

8 from and stored in a central databank before

9 October 1, 2002, unless the Secretary provides

10 a waiver for a State agency that faces unusual

11 barriers to implementing an electronic benefit

12 transfer system.

13 ‘‘(B) TIMELY IMPLEMENTATION.—State

14 agencies are encouraged to implement an elec15 tronic benefit transfer system under subpara16 graph (A) as soon as practicable.

17 ‘‘(C) STATE FLEXIBILITY.—Subject to

18 paragraph (2), a State agency may procure and

19 implement an electronic benefit transfer system

20 under the terms, conditions, and design that

21 the State agency considers appropriate.

22 ‘‘(D) OPERATION.—An electronic benefit

23 transfer system should take into account gen24 erally accepted standard operating rules based

25 on—
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•S 1867 IS

1 ‘‘(i) commercial electronic funds

2 transfer technology;

3 ‘‘(ii) the need to permit interstate op4 eration and law enforcement monitoring;

5 and

6 ‘‘(iii) the need to permit monitoring

7 and investigations by authorized law en8 forcement agencies.’’;

9 (2) in paragraph (2)—

10 (A) by striking ‘‘effective no later than

11 April 1, 1992,’’;

12 (B) in subparagraph (A)—

13 (i) by striking ‘‘, in any 1 year,’’; and

14 (ii) by striking ‘‘on-line’’;

15 (F) by adding at the end the following:

16 ‘‘(I) procurement standards.’’; and

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

18 ‘‘(7) REPLACEMENT OF BENEFITS.—Regula19 tions issued by the Secretary regarding the replace20 ment of benefits and liability for replacement of ben21 efits under an electronic benefit transfer system

22 shall be similar to the regulations in effect for a

23 paper food stamp issuance system.’’.

24 (b) SENSE OF CONGRESS.—It is the sense of Con25 gress that a State that operates an electronic benefit
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1 transfer system under the Food Stamp Act of 1977 (7

2 U.S.C. 2011 et seq.) should operate the system in a man3 ner that is compatible with electronic benefit transfer sys4 tems operated by other States.

5 SEC. 922. VALUE OF MINIMUM ALLOTMENT.

6 The proviso in section 8(a) of the Food Stamp Act

7 of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and

8 shall be adjusted’’ and all that follows through ‘‘$5’’.

9 SEC. 923. BENEFITS ON RECERTIFICATION.

10 Section 8(c)(2)(B) of the Food Stamp Act of 1977

11 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

12 than one month’’.

13 SEC. 924. OPTIONAL COMBINED ALLOTMENT FOR EXPE14 DITED HOUSEHOLDS.

15 Section 8(c)(3) of the Food Stamp Act of 1977 (7

16 U.S.C. 2017(c)(3)) is amended to read as follows:

17 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR

18 EXPEDITED HOUSEHOLDS.—A State agency may

19 provide to an eligible household applying after the

20 15th day of a month, in lieu of the initial allotment

21 of the household and the regular allotment of the

22 household for the following month, an allotment that

23 is equal to the total amount of the initial allotment

24 and the first regular allotment. The allotment shall

25 be provided in accordance with section 11(e)(3) in
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•S 1867 IS

1 the case of a household that is not entitled to expe2 dited service and in accordance with paragraphs (3)

3 and (9) of section 11(e) in the case of a household

4 that is entitled to expedited service.’’.

5 SEC. 925. FAILURE TO COMPLY WITH OTHER MEANS-TEST6 ED PUBLIC ASSISTANCE PROGRAMS.

7 Section 8(d) of the Food Stamp Act of 1977 (7

8 U.S.C. 2017(d)) is amended to read as follows:

9 ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENE10 FITS.—

11 ‘‘(1) IN GENERAL.—If the benefits of a house12 hold are reduced under a Federal, State, or local law

13 relating to a means-tested public assistance program

14 for the failure of a member of the household to per15 form an action required under the law or program,

16 for the duration of the reduction—

17 ‘‘(A) the household may not receive an in18 creased allotment as the result of a decrease in

19 the income of the household to the extent that

20 the decrease is the result of the reduction; and

21 ‘‘(B) the State agency may reduce the al22 lotment of the household by not more than 25

23 percent.

24 ‘‘(2) RULES AND PROCEDURES.—If the allot25 ment of a household is reduced under this subsection
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•S 1867 IS

1 for a failure to perform an action required under

2 part A of title IV of the Social Security Act (42

3 U.S.C. 601 et seq.), the State agency may use the

4 rules and procedures that apply under part A of title

5 IV of such Act to reduce the allotment under the

6 food stamp program.’’.

7 SEC. 926. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

8 CENTERS.

9 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

10 2017) is amended by adding at the end the following:

11 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

12 CENTERS.—

13 ‘‘(1) IN GENERAL.—In the case of an individual

14 who resides in a center for the purpose of a drug or

15 alcoholic treatment program described in the last

16 sentence of section 3(i), a State agency may provide

17 an allotment for the individual to—

18 ‘‘(A) the center as an authorized represent19 ative of the individual for a period that is less

20 than 1 month; and

21 ‘‘(B) the individual, if the individual leaves

22 the center.

23 ‘‘(2) DIRECT PAYMENT.—A State agency may

24 require an individual referred to in paragraph (1) to

25 designate the center in which the individual resides
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1 as the authorized representative of the individual for

2 the purpose of receiving an allotment.’’.

3 SEC. 927. AUTHORITY TO ESTABLISH AUTHORIZATION PE4 RIODS.

5 Section 9(a)(1) of the Food Stamp Act of 1977 (7

6 U.S.C. 2018(a)(1)) is amended by adding at the end the

7 following:

8 ‘‘The Secretary is authorized to issue regulations estab9 lishing specific time periods during which authorization to

10 accept and redeem coupons under the food stamp program

11 shall be valid.’’.

12 SEC. 928. SPECIFIC PERIOD FOR PROHIBITING PARTICIPA13 TION OF STORES BASED ON LACK OF BUSI14 NESS INTEGRITY.

15 Section 9(a)(1) of the Food Stamp Act of 1977 (7

16 U.S.C. 2018(a)(1)), as amended by section 927, is amend17 ed by adding at the end the following:

18 ‘‘The Secretary is authorized to issue regulations estab19 lishing specific time periods during which a retail food

20 store or wholesale food concern that has an application

21 for approval to accept and redeem coupons denied or that

22 has such an approval withdrawn on the basis of business

23 integrity and reputation cannot submit a new application

24 for approval. Such periods shall reflect the severity of
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1 business integrity infractions that are the basis of such

2 denials or withdrawals.’’.

3 SEC. 929. INFORMATION FOR VERIFYING ELIGIBILITY FOR

4 AUTHORIZATION.

5 Section 9(c) of the Food Stamp Act of 1977 (7

6 U.S.C. 2018(c)) is amended—

7 (1) in the 1st sentence by inserting ‘‘, which

8 may include relevant income and sales tax filing doc9 uments,’’ after ‘‘submit information’’ ; and

10 (2) by inserting after the 1st sentence the fol11 lowing:

12 ‘‘The regulations may require retail food stores and whole13 sale food concerns to provide written authorization for the

14 Secretary to verify all relevant tax filings with appropriate

15 agencies and to obtain corroborating documentation from

16 other sources in order that the accuracy of information

17 provided by such stores and concerns may be verified.’’.

18 SEC. 930. WAITING PERIOD FOR STORES THAT INITIALLY

19 FAIL TO MEET AUTHORIZATION CRITERIA.

20 Section 9(d) of the Food Stamp Act of 1977 (7

21 U.S.C. 2018(d)) is amended by adding at the end the fol22 lowing:

23 ‘‘Regulations issued pursuant to this Act shall prohibit a

24 retail food store or wholesale food concern that has an ap25 plication for approval to accept and redeem coupons de-
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•S 1867 IS

1 nied because it does not meet criteria for approval estab2 lished by the Secretary in regulations from submitting a

3 new application for six months from the date of such de4 nial.’’.

5 SEC. 931. OPERATION OF FOOD STAMP OFFICES.

6 Section 11(e)(2) of the Food Stamp Act of 1977 (7

7 U.S.C. 2020(e)(2)) is amended to read as follows:

8 ‘‘(2)(A) that the State agency shall establish

9 procedures governing the operation of food stamp of10 fices that the State agency determines best serve

11 households in the State, including households with

12 special needs, such as households with elderly or dis13 abled members, households in rural areas with low14 income members, homeless individuals, households

15 residing on reservations, and households in areas in

16 which a substantial number of members of low-in17 come households speak a language other than Eng18 lish.

19 ‘‘(B) In carrying out subparagraph (A), a State

20 agency—

21 ‘‘(i) shall provide timely, accurate, and fair

22 service to applicants for, and participants in,

23 the food stamp program;
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•S 1867 IS

1 ‘‘(ii) shall develop an application contain2 ing the information necessary to comply with

3 this Act;

4 ‘‘(iii) shall permit an applicant household

5 to apply to participate in the program on the

6 same day that the household first contacts a

7 food stamp office in person during office hours;

8 ‘‘(iv) shall consider an application that

9 contains the name, address, and signature of

10 the applicant to be filed on the date the appli11 cant submits the application;

12 ‘‘(v) shall require that an adult representa13 tive of each applicant household certify in writ14 ing, under penalty of perjury, that—

15 ‘‘(I) the information contained in the

16 application is true; and

17 ‘‘(II) all members of the household

18 are citizens or are aliens eligible to receive

19 food stamps under section 6(f);

20 ‘‘(vi) shall provide a method of certifying

21 and issuing coupons to eligible homeless individ22 uals, to ensure that participation in the food

23 stamp program is limited to eligible households;

24 and
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•S 1867 IS

1 ‘‘(vii) may establish operating procedures

2 that vary for local food stamp offices to reflect

3 regional and local differences within the State.

4 ‘‘(C) Nothing in this Act shall prohibit the use

5 of signatures provided and maintained electronically,

6 storage of records using automated retrieval systems

7 only, or any other feature of a State agency’s appli8 cation system that does not rely exclusively on the

9 collection and retention of paper applications or

10 other records.

11 ‘‘(D) The signature of any adult under this

12 paragraph shall be considered sufficient to comply

13 with any provision of Federal law requiring a house14 hold member to sign an application or statement.’’;

15 (2) in the last sentence of subsection (i) by

16 striking ‘‘No’’ and inserting ‘‘Other than in a case

17 of disqualification as a penalty for failure to comply

18 with a public assistance program rule or regulation,

19 no’’.

20 SEC. 932. MANDATORY CLAIMS COLLECTION METHODS.

21 (a) ADMINISTRATION.—Section 11(e)(8) of the Food

22 Stamp Act of 1977 (7 U.S.C. 2020(e)(8)) is amended by

23 inserting ‘‘or refunds of Federal taxes as authorized pur24 suant to section 3720A of title 31 of the United States

25 Code’’ before the semicolon at the end.
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•S 1867 IS

1 (b) COLLECTION OF CLAIMS.—Section 13(d) of the

2 Food Stamp Act of 1977 (7 U.S.C. 2022(d)) is amend3 ed—

4 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

5 and

6 (2) by inserting ‘‘or refunds of Federal taxes as

7 authorized pursuant to section 3720A of title 31 of

8 the United States Code’’ before the period at the

9 end.

10 (c) RELATED AMENDMENTS.—Section 6103(1) of

11 the Internal Revenue Code (26 U.S.C. 6103(1)) is amend12 ed—

13 (1) by striking ‘‘officers and employees’’ in

14 paragraph (10)(A) and inserting ‘‘officers, employ15 ees or agents, including State agencies’’; and

16 (2) by striking ‘‘officers and employees’’ in

17 paragraph (10)(B) and inserting ‘‘officers, employ18 ees or agents, including State agencies’’.

19 SEC. 933. EXCHANGE OF LAW ENFORCEMENT INFORMA20 TION.

21 Section 11(e)(8) of the Food Stamp Act of 1977 (7

22 U.S.C. 2020(e)(8)) is amended—

23 (1) by striking ‘‘that (A) such’’ and inserting

24 the following:

25 ‘‘that—
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•S 1867 IS

1 ‘‘(A) the’’;

2 (2) by striking ‘‘law, (B) notwithstanding’’ and

3 inserting the following:

4 ‘‘law;

5 ‘‘(B) notwithstanding’’;

6 (3) by striking ‘‘Act, and (C) such’’ and insert7 ing the following:

8 ‘‘Act;

9 ‘‘(C) the’’; and

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

11 ‘‘(D) notwithstanding any other provision

12 of law, the address, social security number, and,

13 if available, photograph of any member of a

14 household shall be made available, on request,

15 to any Federal, State, or local law enforcement

16 officer if the officer furnishes the State agency

17 with the name of the member and notifies the

18 agency that—

19 ‘‘(i) the member—

20 ‘‘(I) is fleeing to avoid prosecu21 tion, or custody or confinement after

22 conviction, for a crime (or attempt to

23 commit a crime) that, under the law

24 of the place the member is fleeing, is

25 a felony (or, in the case of New Jer-
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•S 1867 IS

1 sey, a high misdemeanor), or is violat2 ing a condition of probation or parole

3 imposed under Federal or State law;

4 or

5 ‘‘(II) has information that is nec6 essary for the officer to conduct an of7 ficial duty related to subclause (I);

8 ‘‘(ii) locating or apprehending the

9 member is an official duty; and

10 ‘‘(iii) the request is being made in the

11 proper exercise of an official duty; and

12 ‘‘(E) the safeguards shall not prevent com13 pliance with paragraph (16);’’.

14 SEC. 934. EXPEDITED COUPON SERVICE.

15 Section 11(e)(9) of the Food Stamp Act of 1977 (7

16 U.S.C. 2020(e)(9)) is amended—

17 (1) in subparagraph (A)—

18 (A) by striking ‘‘five days’’ and inserting

19 ‘‘7 days’’; and

20 (B) by inserting ‘‘and’’ at the end;

21 (2) by striking subparagraph (B);

22 (3) in subparagraph (D) by striking ‘‘, (B), or

23 (C)’’ and inserting ‘‘or (B)’’; and

24 (4) by redesignating subparagraphs (C) and

25 (D) as subparagraphs (B) and (C), respectively.
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1 SEC. 935. WITHDRAWING FAIR HEARING REQUESTS.

2 Section 11(e)(10) of the Food Stamp Act of 1977 (7

3 U.S.C. 2020(e)(10)) is amended by inserting before the

4 semicolon at the end a period and the following: ‘‘At the

5 option of a State, at any time prior to a fair hearing deter6 mination under this paragraph, a household may with7 draw, orally or in writing, a request by the household for

8 the fair hearing. If the withdrawal request is an oral re9 quest, the State agency shall provide a written notice to

10 the household confirming the withdrawal request and pro11 viding the household with an opportunity to request a

12 hearing’’.

13 SEC. 936. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS

14 VERIFICATION SYSTEMS.

15 Section 11(e)(19) of the Food Stamp Act of 1977 (7

16 U.S.C. 2020(e)(19)) is amended by striking ‘‘that infor17 mation is’’ and inserting ‘‘at the option of the State agen18 cy, that information may be’’.

19 SEC. 937. BASES FOR SUSPENSIONS AND DISQUALIFICA20 TIONS.

21 Section 12(a) of the Food Stamp Act of 1977 (7

22 U.S.C. 2021(a)) is amended by adding at the end the fol23 lowing:

24 ‘‘Regulations issued pursuant to this Act shall provide cri25 teria for the finding of violations and the suspension or

26 disqualification of a retail food store or wholesale food con-
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•S 1867 IS

1 cern on the basis of evidence which may include, but is

2 not limited to, facts established through on-site investiga3 tions, inconsistent redemption data, or evidence obtained

4 through transaction reports under electronic benefit trans5 fer systems.’’.

6 SEC. 938. AUTHORITY TO SUSPEND STORES VIOLATING

7 PROGRAM REQUIREMENTS PENDING ADMIN8 ISTRATIVE AND JUDICIAL REVIEW.

9 (a) SUSPENSION AUTHORITY.—Section 12(a) of the

10 Food Stamp Act of 1977 (7 U.S.C. 2021(a)), as amended

11 by section 937, is amended by adding at the end the fol12 lowing:

13 ‘‘Such regulations may establish criteria under which the

14 authorization of a retail food store or wholesale food con15 cern to accept and redeem coupons may be suspended at

16 the time such store or concern is initially found to have

17 committed violations of program requirements. Such sus18 pension may coincide with the period of a review as pro19 vided in section 14. The Secretary shall not be liable for

20 the value of any sales lost during any suspension or dis21 qualification period.’’.

22 (b) CONFORMING AMENDMENT.—Section 14(a) of

23 the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is amend24 ed—
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1 (1) in the 1st sentence by inserting ‘‘sus2 pended,’’ before ‘‘disqualified or subjected’’;

3 (2) in the 5th sentence by inserting before the

4 period at the end the following:

5 ‘‘, except that in the case of the suspension of a retail

6 food store or wholesale food concern pursuant to section

7 12(a), such suspension shall remain in effect pending any

8 administrative or judicial review of the proposed disquali9 fication action, and the period of suspension shall be

10 deemed a part of any period of disqualification which is

11 imposed.’’; and

12 (3) by striking the last sentence.

13 SEC. 939. DISQUALIFICATION OF RETAILERS WHO ARE DIS14 QUALIFIED FROM THE WIC PROGRAM.

15 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

16 2021) is amended by adding at the end the following:

17 ‘‘(g) The Secretary shall issue regulations providing

18 criteria for the disqualification of approved retail food

19 stores and wholesale food concerns that are otherwise dis20 qualified from accepting benefits under the Special Sup21 plemental Nutrition Program for Women, Infants and

22 Children (WIC) authorized under section 17 of the Child

23 Nutrition Act of 1966. Such disqualification—

24 ‘‘(1) shall be for the same period as the dis25 qualification from the WIC Program;
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•S 1867 IS

1 ‘‘(2) may begin at a later date; and

2 ‘‘(3) notwithstanding section 14 of this Act,

3 shall not be subject to administrative or judicial re4 view.’’.

5 SEC. 940. PERMANENT DEBARMENT OF RETAILERS WHO IN6 TENTIONALLY SUBMIT FALSIFIED APPLICA7 TIONS.

8 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

9 2021), as amended by section 939, is amended by adding

10 at the end the following:

11 ‘‘(h) The Secretary shall issue regulations providing

12 for the permanent disqualification of a retail food store

13 or wholesale food concern that is determined to have

14 knowingly submitted an application for approval to accept

15 and redeem coupons which contains false information

16 about one or more substantive matters which were the

17 basis for providing approval. Any disqualification imposed

18 under this subsection shall be subject to administrative

19 and judicial review pursuant to section 14, but such dis20 qualification shall remain in effect pending such review.’’.

21 SEC. 941. EXPANDED CIVIL AND CRIMINAL FORFEITURE

22 FOR VIOLATIONS OF THE FOOD STAMP ACT.

23 (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD

24 STAMP TRAFFICKING.—Section 15(g) of the Food Stamp
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•S 1867 IS

1 Act of 1977 (7 U.S.C. 2024(g)) is amended by striking

2 ‘‘or intended to be furnished’’.

3 (b) CIVIL AND CRIMINAL FORFEITURE.—Section 15

4 of the Food Stamp Act of 1977 (7 U.S.C. 2024) is amend5 ed by adding at the end the following:

6 ‘‘(h)(1) CIVIL FORFEITURE FOR FOOD STAMP BENE7 FIT VIOLATIONS.—

8 ‘‘(A) Any food stamp benefits and any property,

9 real or personal—

10 ‘‘(i) constituting, derived from, or traceable

11 to any proceeds obtained directly or indirectly

12 from, or

13 ‘‘(ii) used, or intended to be used, to com14 mit, or to facilitate,

15 the commission of a violation of subsection (b) or

16 subsection (c) involving food stamp benefits having

17 an aggregate value of not less than $5,000, shall be

18 subject to forfeiture to the United States.

19 ‘‘(B) The provisions of chapter 46 of title 18,

20 United States Code, relating to civil forfeitures shall

21 extend to a seizure or forfeiture under this sub22 section, insofar as applicable and not inconsistent

23 with the provisions of this subsection.

24 ‘‘(2) CRIMINAL FORFEITURE FOR FOOD STAMP BEN25 EFIT VIOLATIONS.—
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1 ‘‘(A)(i) Any person convicted of violating sub2 section (b) or subsection (c) involving food stamp

3 benefits having an aggregate value of not less than

4 $5,000, shall forfeit to the United States, irrespec5 tive of any State law—

6 ‘‘(I) any food stamp benefits and any prop7 erty constituting, or derived from, or traceable

8 to any proceeds such person obtained directly or

9 indirectly as a result of such violation; and

10 ‘‘(II) any food stamp benefits and any of

11 such person’s property used, or intended to be

12 used, in any manner or part, to commit, or to

13 facilitate the commission of such violation.

14 ‘‘(ii) In imposing sentence on such person, the

15 court shall order that the person forfeit to the Unit16 ed States all property described in this subsection.

17 ‘‘(B) All food stamp benefits and any property

18 subject to forfeiture under this subsection, any sei19 zure and disposition thereof, and any administrative

20 or judicial proceeding relating thereto, shall be gov21 erned by subsections (b), (c), (e), and (g) through

22 (p) of section 413 of the Comprehensive Drug Abuse

23 Prevention and Control Act of 1970 (21 U.S.C.

24 853), insofar as applicable and not inconsistent with

25 the provisions of this subsection.
579

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1 ‘‘(3) APPLICABILITY.—This subsection shall not

2 apply to property specified in subsection (g) of this sec3 tion.

4 ‘‘(4) RULES.—The Secretary may prescribe such

5 rules and regulations as may be necessary to carry out

6 this subsection.’’.

7 SEC. 942. EXPANDED AUTHORITY FOR SHARING INFORMA8 TION PROVIDED BY RETAILERS.

9 (a) AMENDMENT TO SOCIAL SECURITY ACT.—Sec10 tion 205(c)(2)(C)(iii) of the Social Security Act (42

11 U.S.C. 405(c)(2)(C)(iii)), as amended by section 316(a)

12 of the Social Security Administrative Reform Act of 1994

13 (Public Law 103–296; 108 Stat. 1464), is amended—

14 (1) by inserting in the 1st sentence of subclause

15 (II) after ‘‘instrumentality of the United States’’ the

16 following: ‘‘, or State government officers and em17 ployees with law enforcement or investigative respon18 sibilities, or State agencies that have the responsibil19 ity for administering the Special Supplemental Nu20 trition Program for Women, Infants and Children

21 (WIC)’’;

22 (2) by inserting in the last sentence of sub23 clause (II) immediately after ‘‘other Federal’’ the

24 words ‘‘or State’’; and
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•S 1867 IS

1 (3) by inserting ‘‘or a State’’ in subclause (III)

2 immediately after ‘‘United States’’.

3 (b) AMENDMENT TO INTERNAL REVENUE CODE OF

4 1986.—Section 6109(f)(2) of the Internal Revenue Code

5 of 1986 (26 U.S.C. 6109(f)(2)) (as added by section

6 316(b) of the Social Security Administrative Reform Act

7 of 1994 (Public Law 103–296; 108 Stat. 1464)) is amend8 ed—

9 (1) by inserting in subparagraph (A) after ‘‘in10 strumentality of the United States’’ the following: ‘‘,

11 or State government officers and employees with law

12 enforcement or investigative responsibilities, or State

13 agencies that have the responsibility for administer14 ing the Special Supplemental Nutrition Program for

15 Women, Infants and Children (WIC)’’;

16 (2) in the last sentence of subparagraph (A) by

17 inserting ‘‘or State’’ after ‘‘other Federal’’; and

18 (3) in subparagraph (B) by inserting ‘‘or a

19 State’’ after ‘‘United States’’.

20 SEC. 943. LIMITATION OF FEDERAL MATCH.

21 Section 16(a)(4) of the Food Stamp Act of 1977 (7

22 U.S.C. 2025(a)(4)) is amended by inserting after the

23 comma at the end the following: ‘‘but not including re24 cruitment activities,’’.
581

•S 1867 IS

1 SEC. 944. COLLECTION OF OVERISSUANCES.

2 Section 16(a) of the Food Stamp Act of 1977 (7

3 U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur4 ing the period beginning October 1, 1990’’ and all that

5 follows through ‘‘error of a State agency’’ and inserting

6 the following: ‘‘25 percent of the overissuances collected

7 by the State agency under section 13, except those

8 overissuances arising from an error of the State agency’’.

9 SEC. 945. STANDARDS FOR ADMINISTRATION.

10 (a) IN GENERAL.—Section 16 of the Food Stamp Act

11 of 1977 (7 U.S.C. 2025) is amended by striking sub12 section (b).

13 (b) CONFORMING AMENDMENTS.—

14 (1) The 1st sentence of section 11(g) of the

15 Food Stamp Act of 1977 (7 U.S.C. 2020(g)) is

16 amended by striking ‘‘the Secretary’s standards for

17 the efficient and effective administration of the pro18 gram established under section 16(b)(1) or’’.

19 (2) Section 16(c)(1)(B) of the Food Stamp Act

20 of 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by

21 striking ‘‘pursuant to subsection (b)’’.

22 SEC. 946. RESPONSE TO WAIVERS.

23 Section 17(b)(1) of the Food Stamp Act of 1977 (7

24 U.S.C. 2026(b)(1)) is amended by adding at the end the

25 following:

26 ‘‘(C) RESPONSE TO WAIVERS.—
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•S 1867 IS

1 ‘‘(i) RESPONSE.—Not later than 60 days after

2 the date of receiving a request for a waiver under

3 subparagraph (A), the Secretary shall provide a re4 sponse that—

5 ‘‘(I) approves the waiver request;

6 ‘‘(II) denies the waiver request and ex7 plains any modification needed for approval of

8 the waiver request;

9 ‘‘(III) denies the waiver request and ex10 plains the grounds for the denial; or

11 ‘‘(IV) requests clarification of the waiver

12 request.

13 ‘‘(ii) FAILURE TO RESPOND.—If the Secretary

14 does not provide a response in accordance with

15 clause (i), the waiver shall be considered approved,

16 unless the approval is specifically prohibited by this

17 Act.

18 ‘‘(iii) NOTICE OF DENIAL.—On denial of a

19 waiver request under clause (i)(III), the Secretary

20 shall provide a copy of the waiver request and a de21 scription of the reasons for the denial to the Com22 mittee on Agriculture of the House of Representa23 tives and the Committee on Agriculture, Nutrition,

24 and Forestry of the Senate.’’.
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1 SEC. 947. AUTHORIZATION OF APPROPRIATIONS.

2 The 1st sentence of section 18(a)(1) of the Food

3 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

4 striking ‘‘1991 through 1997’’ and inserting ‘‘1996

5 through 2002’’.

6 SEC. 948. AUTHORIZE STATES TO OPERATE SIMPLIFIED

7 FOOD STAMP PROGRAMS.

8 (a) AUTHORITY FOR PROGRAM.—The Food Stamp

9 Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding

10 at the end the following:

11 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

12 ‘‘(a) DEFINITION.—In this section, the term ‘Federal

13 costs’ does not include any Federal costs incurred under

14 section 17.

15 ‘‘(b) STATE OPTION.—Subject to subsection (d), a

16 State may elect to carry out a simplified food stamp pro17 gram for households described in subsection (c)(1), state18 wide or in a political subdivision of the State, in accord19 ance with this section.

20 ‘‘(c) PROGRAM REQUIREMENTS.—If a State elects to

21 carry out such simplified food stamp program, within the

22 State or a political subdivision of the State—

23 ‘‘(1) only households in which all members re24 ceive assistance under a State program funded

25 under part A of title IV of the Social Security Act

26 (42 U.S.C. 601 et seq.) shall receive benefits under
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•S 1867 IS

1 this section. Such households shall be automatically

2 eligible to participate in such simplified food stamp

3 program; and

4 ‘‘(2) subject to subsection (f), benefits under

5 such simplified food stamp program shall be deter6 mined under rules and procedures established by the

7 State under—

8 ‘‘(A) a State program funded under part A

9 of title IV of the Social Security Act (42 U.S.C.

10 601 et seq.);

11 ‘‘(B) the food stamp program; or

12 ‘‘(C) a combination of a State program

13 funded under part A of title IV of the Social

14 Security Act (42 US..C. 601 et seq.) and the

15 food stamp program.

16 ‘‘(d) STATE PLAN.—(1) A State may not operate

17 such simplified food stamp program unless the Secretary

18 approves a State plan for the operation of such simplified

19 food stamp program under paragraph (2).

20 ‘‘(2) The Secretary is authorized to approve any State

21 plan to carry out such simplified food stamp program if

22 the Secretary determines that the plan—

23 ‘‘(A) simplifies program administration while

24 fulfilling the goals of the food stamp program to
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•S 1867 IS

1 permit low-income households to obtain a more nu2 tritious diet;

3 ‘‘(B) complies with this section;

4 ‘‘(C) would not increase Federal costs for any

5 fiscal year; and

6 ‘‘(D) would not substantially alter, as deter7 mined by the Secretary, the appropriate distribution

8 of benefits according to household need.

9 ‘‘(e) COST DETERMINATION.—(1) During each fiscal

10 year and not later than 90 days after the end of each fiscal

11 year, the Secretary shall determine using data provided

12 by the State deemed appropriate by the Secretary whether

13 such simplified food stamp program being carried out by

14 a State is increasing Federal costs under this Act above

15 what the costs would have been for the same population

16 had they been subject to the rules of the food stamp pro17 gram.

18 ‘‘(2) If the Secretary determines that such simplified

19 food stamp program has increased Federal costs under

20 this Act for any fiscal year or any portion of any fiscal

21 year, the Secretary shall notify the State not later than

22 30 days after the Secretary makes the determination

23 under paragraph (1).

24 ‘‘(3)(A) Not later than 90 days after the date of a

25 notification under paragraph (2), the State shall submit
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•S 1867 IS

1 a plan for approval by the Secretary for prompt corrective

2 action that is designed to prevent such simplified food

3 stamp program from increasing Federal costs under this

4 Act.

5 ‘‘(B) If the State does not submit a plan under sub6 paragraph (A) or carry out a plan approved by the Sec7 retary, the Secretary shall terminate the approval of the

8 State operating such simplified food stamp program and

9 the State shall be ineligible to operate a future Simplified

10 Program.

11 ‘‘(f) RULES AND PROCEDURES.—(1) In operating

12 such simplified food stamp program, a State or political

13 subdivision of a State may follow the rules and procedures

14 established by the State or political subdivision under a

15 State program funded under part A of title IV of the So16 cial Security Act (42 U.S.C. 601 et seq.) or under the

17 food stamp program.

18 ‘‘(2) In operating such simplified food stamp pro19 gram, a State or political subdivision shall comply with

20 the requirements of—

21 ‘‘(A) section 5(e) to the extent that it requires

22 an excess shelter expense deduction;

23 ‘‘(B) subsections (a) through (g) of section 7;

24 ‘‘(C) section 8(a) (except that the income of a

25 household may be determined under a State pro-
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•S 1867 IS

1 gram funded under part A of title IV of the Social

2 Security Act (42 U.S.C. 601 et seq.));

3 ‘‘(D) subsections (b) and (d) of section 8;

4 ‘‘(E) subsections (a), (c), (d), and (n) of section

5 11;

6 ‘‘(F) paragraphs (8), (9), (12), (18), (20), (24),

7 and (25) of section 11(e);

8 ‘‘(G) section 11(e)(2), to the extent that it re9 quires the State agency to provide an application to

10 households on the 1st day they contact a food stamp

11 office in person during office hours to make what

12 may reasonably be interpreted as an oral or written

13 request for food stamp assistance and to allow those

14 households to file such application on the same day;

15 ‘‘(H) section 11(e)(3), to the extent that it re16 quires the State agency to complete certification of

17 an eligible household and provide an allotment retro18 active to the period of application to an eligible

19 household not later than 30 days following the filing

20 of an application;

21 ‘‘(I) section 11(e)(10) (or a comparable require22 ment established by the State under a State pro23 gram funded under part A of title IV of the Social

24 Security Act (42 U.S.C. 601 et seq.)); and

25 ‘‘(J) section 16.
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1 ‘‘(3) Notwithstanding any other provision of this sec2 tion, a household may not receive benefits under this sec3 tion as a result of the eligibility of the household under

4 a State program funded under part A of title IV of the

5 Social Security Act (42 U.S.C. 601 et seq.), unless the

6 Secretary determines that any household with income

7 above 130 percent of the poverty guidelines is not eligible

8 for such simplified food stamp program.’’.

9 (b) REPEALER.—Section 8 of the Food Stamp Act

10 of 1977 (7 U.S.C. 2017) is amended by striking sub11 section (e).

12 (c) REQUIREMENTS.—Section 11(e) of the Food

13 Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—

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

15 end;

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

17 the end; and

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

19 ‘‘(26) if a State elects to carry out a simplified

20 food stamp program under section 24, the plan of

21 the State agency for operating such simplified food

22 stamp program, including—

23 ‘‘(A) the rules and procedures to be fol24 lowed by the State to determine food stamp

25 benefits; and
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1 ‘‘(B) a description of the method by which

2 the State will carry out a quality control system

3 under section 16(c).’’.

4 (d) REPEAL OF DEMONSTRATION PROJECTS.—Sec5 tion 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)

6 is amended by—

7 (1) striking subsection (i); and

8 (2) redesignating subsections (j) through (l) as

9 subsections (i) through (k), respectively.

10 SEC. 949. EMERGENCY FOOD ASSISTANCE PROGRAM.

11 (a) DEFINITIONS.—Section 201A of the Emergency

12 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

13 612c note) is amended to read as follows:

14 ‘‘SEC. 201A. DEFINITIONS.

15 ‘‘In this Act:

16 ‘‘(1) ADDITIONAL COMMODITIES.—The term

17 ‘additional commodities’ means commodities made

18 available under section 214 in addition to the com19 modities made available under sections 202 and

20 203D.

21 ‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM22 PLOYED PERSONS.—The term ‘average monthly

23 number of unemployed persons’ means the average

24 monthly number of unemployed persons in each

25 State in the most recent fiscal year for which infor-
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1 mation concerning the number of unemployed per2 sons is available, as determined by the Bureau of

3 Labor Statistics of the Department of Labor.

4 ‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term

5 ‘eligible recipient agency’ means a public or non6 profit organization—

7 ‘‘(A) that administers—

8 ‘‘(i) an emergency feeding organiza9 tion;

10 ‘‘(ii) a charitable institution (including

11 a hospital and a retirement home, but ex12 cluding a penal institution) to the extent

13 that the institution serves needy persons;

14 ‘‘(iii) a summer camp for children, or

15 a child nutrition program providing food

16 service;

17 ‘‘(iv) a nutrition project operating

18 under the Older Americans Act of 1965

19 (42 U.S.C. 3001 et seq.), including a

20 project that operates a congregate nutri21 tion site and a project that provides home22 delivered meals; or

23 ‘‘(v) a disaster relief program;
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•S 1867 IS

1 ‘‘(B) that has been designated by the ap2 propriate State agency, or by the Secretary;

3 and

4 ‘‘(C) that has been approved by the Sec5 retary for participation in the program estab6 lished under this Act.

7 ‘‘(4) EMERGENCY FEEDING ORGANIZATION.—

8 The term ‘emergency feeding organization’ means a

9 public or nonprofit organization that administers ac10 tivities and projects (including the activities and

11 projects of a charitable institution, a food bank, a

12 food pantry, a hunger relief center, a soup kitchen,

13 or a similar public or private nonprofit eligible recip14 ient agency) providing nutrition assistance to relieve

15 situations of emergency and distress through the

16 provision of food to needy persons, including low-in17 come and unemployed persons.

18 ‘‘(5) FOOD BANK.—The term ‘food bank’

19 means a public or charitable institution that main20 tains an established operation involving the provision

21 of food or edible commodities, or the products of

22 food or edible commodities, to food pantries, soup

23 kitchens, hunger relief centers, or other food or feed24 ing centers that, as an integral part of their normal
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1 activities, provide meals or food to feed needy per2 sons on a regular basis.

3 ‘‘(6) FOOD PANTRY.—The term ‘food pantry’

4 means a public or private nonprofit organization

5 that distributes food to low-income and unemployed

6 households, including food from sources other than

7 the Department of Agriculture, to relieve situations

8 of emergency and distress.

9 ‘‘(7) POVERTY LINE.—The term ‘poverty line’

10 has the same meaning given the term in section

11 673(2) of the Community Services Block Grant Act

12 (42 U.S.C. 9902(2)).

13 ‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’

14 means a public or charitable institution that, as an

15 integral part of the normal activities of the institu16 tion, maintains an established feeding operation to

17 provide food to needy homeless persons on a regular

18 basis.

19 ‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD20 ITIES.—The term ‘total value of additional commod21 ities’ means the actual cost of all additional com22 modities made available under section 214 that are

23 paid by the Secretary (including the distribution and

24 processing costs incurred by the Secretary).
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1 ‘‘(10) VALUE OF ADDITIONAL COMMODITIES

2 ALLOCATED TO EACH STATE.—The term ‘value of

3 additional commodities allocated to each State’

4 means the actual cost of additional commodities

5 made available under section 214 and allocated to

6 each State that are paid by the Secretary (including

7 the distribution and processing costs incurred by the

8 Secretary).’’.

9 (b) STATE PLAN.—Section 202A of the Emergency

10 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

11 612c note) (7 U.S.C. 612c note) is amended to read as

12 follows:

13 ‘‘SEC. 202A. STATE PLAN.

14 ‘‘(a) IN GENERAL.—To receive commodities under

15 this Act, a State shall submit a plan of operation and ad16 ministration every 4 years to the Secretary for approval.

17 The plan may be amended at any time, with the approval

18 of the Secretary.

19 ‘‘(b) REQUIREMENTS.—Each plan shall—

20 ‘‘(1) designate the State agency responsible for

21 distributing the commodities received under this Act;

22 ‘‘(2) set forth a plan of operation and adminis23 tration to expeditiously distribute commodities under

24 this Act;
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1 ‘‘(3) set forth the standards of eligibility for re2 cipient agencies; and

3 ‘‘(4) set forth the standards of eligibility for in4 dividual or household recipients of commodities,

5 which shall require—

6 ‘‘(A) individuals or households to be com7 prised of needy persons; and

8 ‘‘(B) individual or household members to

9 be residing in the geographic location served by

10 the distributing agency at the time of applying

11 for assistance.

12 ‘‘(c) STATE ADVISORY BOARD.—The Secretary shall

13 encourage each State receiving commodities under this Act

14 to establish a State advisory board consisting of represent15 atives of all interested entities, both public and private,

16 in the distribution of commodities received under this Act

17 in the State.’’.

18 (c) AUTHORIZATION OF APPROPRIATIONS FOR AD19 MINISTRATIVE FUNDS.—Section 204(a)(1) of the Emer20 gency Food Assistance Act of 1983 (Public Law 98–8; 7

21 U.S.C. 612c note) (7 U.S.C. 612c note) is amended—

22 (1) in the 1st sentence—

23 (A) by striking ‘‘1991 through 1995’’ and

24 inserting ‘‘1996 through 2002’’; and
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•S 1867 IS

1 (B) by striking ‘‘for State and local’’ and

2 all that follows through ‘‘under this title’’ and

3 inserting ‘‘to pay for the direct and indirect ad4 ministrative costs of the State related to the

5 processing, transporting, and distributing to eli6 gible recipient agencies of commodities provided

7 by the Secretary under this Act and commod8 ities secured from other sources’’; and

9 (2) by striking the fourth sentence.

10 (d) TECHNICAL AMENDMENTS.—The Emergency

11 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

12 612c note) (7 U.S.C. 612c note) is amended—

13 (1) in the 1st sentence of section 203B(a), by

14 striking ‘‘203 and 203A of this Act’’ and inserting

15 ‘‘203A’’;

16 (2) in section 204(a), by striking ‘‘title’’ each

17 place it appears and inserting ‘‘Act’’; and

18 (3) by striking section 212.

19 (e) REPORT ON EFAP.—Section 1571 of the Food

20 Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c

21 note) is repealed.

22 SEC. 950. FOOD BANK DEMONSTRATION PROJECT.

23 Section 3 of the Charitable Assistance and Food

24 Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c

25 note) is repealed.
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1 SEC. 951. REPORT ON ENTITLEMENT COMMODITY PROC2 ESSING.

3 Section 1773 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

5 612c note) is amended by striking subsection (f).

6 TITLE X—MISCELLANEOUS

7 SEC. 1001. EXPENDITURE OF FEDERAL FUNDS IN ACCORD8 ANCE WITH LAWS AND PROCEDURES APPLI9 CABLE TO EXPENDITURE OF STATE FUNDS.

10 (a) IN GENERAL.—Notwithstanding any other provi11 sion of law, any funds received by a State under the provi12 sions of law specified in subsection (b) shall be expended

13 only in accordance with the laws and procedures applicable

14 to expenditures of the State’s own revenues, including ap15 propriation by the State legislature, consistent with the

16 terms and conditions required under such provisions of

17 law.

18 (b) PROVISIONS OF LAW.—The provisions of law

19 specified in this subsection are the following:

20 (1) Part A of title IV of the Social Security Act

21 (relating to block grants for temporary assistance

22 for needy families).

23 (2) Section 25 of the Food Stamp Act of 1977

24 (relating to the optional State food assistance block

25 grant).
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1 (3) The Child Care and Development Block

2 Grant Act of 1990 (relating to block grants for child

3 care).

4 SEC. 1002. ELIMINATION OF HOUSING ASSISTANCE WITH

5 RESPECT TO FUGITIVE FELONS AND PROBA6 TION AND PAROLE VIOLATORS.

7 (a) ELIGIBILITY FOR ASSISTANCE.—The United

8 States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is

9 amended—

10 (1) in section 6(l)—

11 (A) in paragraph (5), by striking ‘‘and’’ at

12 the end;

13 (B) in paragraph (6), by striking the pe14 riod at the end and inserting ‘‘; and’’; and

15 (C) by inserting immediately after para16 graph (6) the following new paragraph:

17 ‘‘(7) provide that it shall be cause for imme18 diate termination of the tenancy of a public housing

19 tenant if such tenant—

20 ‘‘(A) is fleeing to avoid prosecution, or cus21 tody or confinement after conviction, under the

22 laws of the place from which the individual

23 flees, for a crime, or attempt to commit a

24 crime, which is a felony under the laws of the

25 place from which the individual flees, or which,
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1 in the case of the State of New Jersey, is a

2 high misdemeanor under the laws of such State;

3 or

4 ‘‘(2) is violating a condition of probation or pa5 role imposed under Federal or State law.’’; and

6 (2) in section 8(d)(1)(B)—

7 (A) in clause (iii), by striking ‘‘and’’ at the

8 end;

9 (B) in clause (iv), by striking the period at

10 the end and inserting ‘‘; and’’; and

11 (C) by adding after clause (iv) the follow12 ing new clause:

13 ‘‘(v) it shall be cause for termination

14 of the tenancy of a tenant if such tenant—

15 ‘‘(I) is fleeing to avoid prosecu16 tion, or custody or confinement after

17 conviction, under the laws of the place

18 from which the individual flees, for a

19 crime, or attempt to commit a crime,

20 which is a felony under the laws of

21 the place from which the individual

22 flees, or which, in the case of the

23 State of New Jersey, is a high mis24 demeanor under the laws of such

25 State; or
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1 ‘‘(II) is violating a condition of

2 probation or parole imposed under

3 Federal or State law;’’.

4 (b) PROVISION OF INFORMATION TO LAW ENFORCE5 MENT AGENCIES.—Title I of the United States Housing

6 Act of 1937 (42 U.S.C. 1437 et seq.), as amended by sec7 tion 601 of this Act, is amended by adding at the end

8 the following:

9 ‘‘SEC. 28. EXCHANGE OF INFORMATION WITH LAW EN10 FORCEMENT AGENCIES.

11 ‘‘Notwithstanding any other provision of law, each

12 public housing agency that enters into a contract for as13 sistance under section 6 or 8 of this Act with the Secretary

14 shall furnish any Federal, State, or local law enforcement

15 officer, upon the request of the officer, with the current

16 address, Social Security number, and photograph (if appli17 cable) of any recipient of assistance under this Act, if the

18 officer—

19 ‘‘(1) furnishes the public housing agency with

20 the name of the recipient; and

21 ‘‘(2) notifies the agency that—

22 ‘‘(A) such recipient—

23 ‘‘(i) is fleeing to avoid prosecution, or

24 custody or confinement after conviction,

25 under the laws of the place from which the
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1 individual flees, for a crime, or attempt to

2 commit a crime, which is a felony under

3 the laws of the place from which the indi4 vidual flees, or which, in the case of the

5 State of New Jersey, is a high mis6 demeanor under the laws of such State; or

7 ‘‘(ii) is violating a condition of proba8 tion or parole imposed under Federal or

9 State law; or

10 ‘‘(iii) has information that is nec11 essary for the officer to conduct the offi12 cer’s official duties;

13 ‘‘(B) the location or apprehension of the

14 recipient is within such officer’s official duties;

15 and

16 ‘‘(C) the request is made in the proper ex17 ercise of the officer’s official duties.’’.

18 SEC. 1003. SENSE OF THE SENATE REGARDING ENTER19 PRISE ZONES.

20 (a) FINDINGS.—The Senate finds that:

21 (1) Many of the Nation’s urban centers are

22 places with high levels of poverty, high rates of wel23 fare dependency, high crime rates, poor schools, and

24 joblessness;
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1 (2) Federal tax incentives and regulatory re2 forms can encourage economic growth, job creation

3 and small business formation in many urban centers;

4 (3) Encouraging private sector investment in

5 America’s economically distressed urban and rural

6 areas is essential to breaking the cycle of poverty

7 and the related ills of crime, drug abuse, illiteracy,

8 welfare dependency, and unemployment;

9 (4) The empowerment zones enacted in 1993

10 should be enhanced by providing incentives to in11 crease entrepreneurial growth, capital formation, job

12 creation, educational opportunities, and home owner13 ship in the designated communities and zones.

14 (b) SENSE OF THE SENATE.—Therefore, it is the

15 Sense of the Senate that the Congress should adopt enter16 prise zone legislation in the One Hundred Fourth Con17 gress, and that such enterprise zone legislation provide the

18 following incentives and provisions:

19 (1) Federal tax incentives that expand access to

20 capital, increase the formation and expansion of

21 small businesses, and promote commercial revitaliza22 tion;

23 (2) Regulatory reforms that allow localities to

24 petition Federal agencies, subject to the relevant

25 agencies’ approval, for waivers or modifications of
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1 regulations to improve job creation, small business

2 formation and expansion, community development,

3 or economic revitalization objectives of the enterprise

4 zones;

5 (3) Home ownership incentives and grants to

6 encourage resident management of public housing

7 and home ownership of public housing;

8 (4) School reform pilot projects in certain des9 ignated enterprise zones to provide low-income par10 ents with new and expanded educational options for

11 their children’s elementary and secondary schooling.

12 SEC. 1004. SENSE OF THE SENATE REGARDING THE IN13 ABILITY OF THE NONCUSTODIAL PARENT TO

14 PAY CHILD SUPPORT.

15 It is the sense of the Senate that—

16 (a) States should diligently continue their ef17 forts to enforce child support payments by the non18 custodial parent to the custodial parent, regardless

19 of the employment status or location of the non20 custodial parent; and

21 (b) States are encouraged to pursue pilot pro22 grams in which the parents of a nonadult, noncusto23 dial parent who refuses to or is unable to pay child

24 support must—
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1 (1) pay or contribute to the child support

2 owed by the noncustodial parent; or

3 (2) otherwise fulfill all financial obligations

4 and meet all conditions imposed on the non5 custodial parent, such as participation in a

6 work program or other related activity.

7 SEC. 1005. FOOD STAMP ELIGIBILITY.

8 Section 6(f) of the Food Stamp Act of 1977 (7

9 U.S.C. 2015(f)) is amended by striking the third sentence

10 and inserting the following:

11 ‘‘The State agency shall, at its option, consider either

12 all income and financial resources of the individual ren13 dered ineligible to participate in the food stamp program

14 under this subsection, or such income, less a pro rata

15 share, and the financial resources of the ineligible individ16 ual, to determine the eligibility and the value of the allot17 ment of the household of which such individual is a mem18 ber.’’.

19 SEC. 1006. ESTABLISHING NATIONAL GOALS TO PREVENT

20 TEENAGE PREGNANCIES.

21 (a) IN GENERAL.—Not later than January 1, 1997,

22 the Secretary of Health and Human Services shall estab23 lish and implement a strategy for—

24 (1) preventing out-of-wedlock teenage preg25 nancies, and
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1 (2) assuring that at least 25 percent of the

2 communities in the United States have teenage preg3 nancy prevention programs in place.

4 (b) REPORT.—Not later than June 30, 1998, and an5 nually thereafter, the Secretary shall report to the Con6 gress with respect to the progress that has been made in

7 meeting the goals described in paragraphs (1) and (2) of

8 subsection (a).

9 SEC. 1007. SENSE OF THE SENATE REGARDING ENFORCE10 MENT OF STATUTORY RAPE LAWS.

11 It is the sense of the Senate that States and local

12 jurisdictions should aggressively enforce statutory rape

13 laws.

14 SEC. 1008. SANCTIONING FOR TESTING POSITIVE FOR

15 CONTROLLED SUBSTANCES.

16 Notwithstanding any other provision of law, States

17 shall not be prohibited by the Federal Government from

18 sanctioning welfare recipients who test positive for use of

19 controlled substances.

20 SEC. 1009. ABSTINENCE EDUCATION.

21 (a) INCREASES IN FUNDING.—Section 501(a) of the

22 Social Security Act (42 U.S.C. 701(a)) is amended in the

23 matter preceding paragraph (1) by striking ‘‘Fiscal year

24 1990 and each fiscal year thereafter’’ and inserting ‘‘Fis-
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1 cal years 1990 through 1995 and $761,000,000 for fiscal

2 year 1996 and each fiscal year thereafter’’.

3 (b) ABSTINENCE EDUCATION.—Section 501(a)(1) of

4 such Act (42 U.S.C. 701(a)(1)) is amended—

5 (1) in subparagraph (C), by striking ‘‘and’’ at

6 the end;

7 (2) in subparagraph (D), by adding ‘‘and’’ at

8 the end; and

9 (3) by adding at the end the following new sub10 paragraph:

11 ‘‘(E) to provide abstinence education, and

12 at the option of the State, where appropriate,

13 mentoring, counseling, and adult supervision to

14 promote abstinence from sexual activity, with a

15 focus on those groups which are most likely to

16 bear children out-of-wedlock.’’.

17 (c) ABSTINENCE EDUCATION DEFINED.—Section

18 501(b) of such Act (42 U.S.C. 701(b)) is amended by add19 ing at the end the following new paragraph:

20 ‘‘(5) ABSTINENCE EDUCATION.—For purposes

21 of this subsection, the term ‘abstinence education’

22 means an educational or motivational program

23 which—
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1 ‘‘(A) has as its exclusive purpose, teaching

2 the social, psychological, and health gains to be

3 realized by abstaining from sexual activity;

4 ‘‘(B) teaches abstinence from sexual activ5 ity outside marriage as the expected standard

6 for all school age children;

7 ‘‘(C) teaches that abstinence from sexual

8 activity is the only certain way to avoid out-of9 wedlock pregnancy, sexually transmitted dis10 eases, and other associated health problems;

11 ‘‘(D) teaches that a mutually faithful

12 monogamous relationship in context of marriage

13 is the expected standard of human sexual activ14 ity;

15 ‘‘(E) teaches that sexual activity outside of

16 the context of marriage is likely to have harm17 ful psychological and physical effects;

18 ‘‘(F) teaches that bearing children out-of19 wedlock is likely to have harmful consequences

20 for the child, the child’s parents, and society;

21 ‘‘(G) teaches young people how to reject

22 sexual advances and how alcohol and drug use

23 increases vulnerability to sexual advances; and
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1 ‘‘(H) teaches the importance of attaining

2 self-sufficiency before engaging in sexual activ3 ity.’’.

4 (d) SET-ASIDE.—

5 (1) IN GENERAL.—Section 502(c) of such Act

6 (42 U.S.C. 702(c)) is amended in the matter preced7 ing paragraph (1) by striking ‘‘From’’ and inserting

8 ‘‘Except as provided in subsection (e), from’’.

9 (2) SET-ASIDE.—Section 502 of such Act (42

10 U.S.C. 702) is amended by adding at the end the

11 following new subsection:

12 ‘‘(e) Of the amounts appropriated under section

13 501(a) for any fiscal year, the Secretary shall set aside

14 $75,000,000 for abstinence education in accordance with

15 section 501(a)(1)(E).’’.

16 SEC. 1010. PROVISIONS TO ENCOURAGE ELECTRONIC BEN17 EFIT TRANSFER SYSTEMS.

18 Section 904 of the Electronic Fund Transfer Act (15

19 U.S.C. 1693b) is amended—

20 (1) by striking ‘‘(d) In the event’’ and inserting

21 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS

22 OTHER THAN CERTAIN FINANCIAL INSTITU23 TIONS.—

24 ‘‘(1) IN GENERAL.—In the event’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC4 TRONIC BENEFIT TRANSFER PROGRAMS.—

5 ‘‘(A) EXEMPTION GENERALLY.—The dis6 closures, protections, responsibilities, and rem7 edies established under this title, and any regu8 lation prescribed or order issued by the Board

9 in accordance with this title, shall not apply to

10 any electronic benefit transfer program estab11 lished under State or local law or administered

12 by a State or local government.

13 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

14 INTO RECIPIENT’S ACCOUNT.—Subparagraph

15 (A) shall not apply with respect to any elec16 tronic funds transfer under an electronic benefit

17 transfer program for deposits directly into a

18 consumer account held by the recipient of the

19 benefit.

20 ‘‘(C) RULE OF CONSTRUCTION.—No provi21 sion of this paragraph may be construed as—

22 ‘‘(i) affecting or altering the protec23 tions otherwise applicable with respect to

24 benefits established by Federal, State, or

25 local law; or
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1 ‘‘(ii) otherwise superseding the appli2 cation of any State or local law.

3 ‘‘(D) ELECTRONIC BENEFIT TRANSFER

4 PROGRAM DEFINED.—For purposes of this

5 paragraph, the term ‘electronic benefit transfer

6 program’—

7 ‘‘(i) means a program under which a

8 government agency distributes needs-tested

9 benefits by establishing accounts to be

10 accessed by recipients electronically, such

11 as through automated teller machines, or

12 point-of-sale terminals; and

13 ‘‘(ii) does not include employment-re14 lated payments, including salaries and pen15 sion, retirement, or unemployment benefits

16 established by Federal, State, or local gov17 ernments.’’.

18 SEC. 1011. REDUCTION IN BLOCK GRANTS TO STATES FOR

19 SOCIAL SERVICES.

20 Section 2003(c) of the Social Security Act (42 U.S.C.

21 1397b(c)) is amended—

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

23 (4); and

24 (2) by striking paragraph (5) and inserting the

25 following:
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1 ‘‘(5) $2,800,000,000 for each of the fiscal years

2 1990 through 1996 and for each fiscal year after fis3 cal year 2002; and

4 ‘‘(6) $2,520,000,000 for each of the fiscal years

5 1997 through 2002.’’.

6 SEC. 1012. EFFICIENT USE OF FEDERAL TRANSPORTATION

7 FUNDS.

8 The Secretary of Health and Human Services is en9 couraged to work in coordination with State agencies to

10 ensure that Federal transportation funds that may be

11 used for the benefit of persons receiving public assistance

12 pursuant to this Act and the amendments made by this

13 Act are most efficiently used for such purpose. The Sec14 retary shall work with the individual States to develop cri15 teria and measurements to report back to the Congress,

16 within 3 years after the date of the enactment of this Act,

17 the following:

18 (1) The use of competitive contracting or other

19 market-oriented strategies to achieve efficiencies.

20 (2) The efficient use of all related transpor21 tation funds to support persons receiving assistance

22 pursuant to this Act and the amendments made by

23 this Act.

24 (3) The actual value derived from transpor25 tation services to achieve such purposes.
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1 (4) The application of such analyses to other

2 support services to achieve such purposes.

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