II

104TH CONGRESS

1ST SESSION S. 840

To provide States greater flexibility in providing jobs for, and assistance

to, needy families, to improve child support enforcement, to reduce teenage pregnancy, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 22 (legislative day, MAY 15), 1995

Mr. CONRAD introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To provide States greater flexibility in providing jobs for,

and assistance to, needy families, to improve child support enforcement, to reduce teenage pregnancy, and for

other purposes.

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

3 SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CON4 TENTS.

5 (a) SHORT TITLE.—This Act may be cited as the

6 ‘‘Work and Gainful Employment Act’’.

7 (b) REFERENCE.—Except as otherwise specifically

8 provided, wherever in this Act an amendment is expressed
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1 in terms of an amendment to or repeal of a section or

2 other provision, the reference shall be considered to be

3 made to that section or other provision of the Social Secu4 rity Act.

5 (c) TABLE OF CONTENTS.—The table of contents for

6 this Act is as follows:

Sec. 1. Short title; reference; table of contents.

TITLE I—TRANSITIONAL AID PROGRAM

Sec. 101. Transitional aid program.

TITLE II—WORK AND GAINFUL EMPLOYMENT (WAGE) PROGRAM

Sec. 201. WAGE program.

Sec. 202. Regulations.

Sec. 203. Applicability to States.

TITLE III—WORKING PARENTS CHILD CARE BLOCK GRANT

Sec. 301. Purpose.

Sec. 302. Amendments to Child Care and Development Block Grant Act of

1990.

Sec. 303. Program repeals.

Sec. 304. References.

TITLE IV—CHILD SUPPORT RESPONSIBILITY

Sec. 400. Short title.

Subtitle A—Improvements to the Child Support Collection System

PART I—ELIGIBILITY AND OTHER MATTERS CONCERNING TITLE IV–D

PROGRAM CLIENTS

Sec. 401. State obligation to provide paternity establishment and child support

enforcement services.

Sec. 402. Distribution of payments.

Sec. 403. Rights to notification and hearings.

Sec. 404. Privacy safeguards.

Sec. 405. Cooperation requirements and good cause exceptions.

PART II—PROGRAM ADMINISTRATION AND FUNDING

Sec. 411. Federal matching payments.

Sec. 412. Performance-based incentives and penalties.

Sec. 413. Federal and State reviews and audits.

Sec. 414. Required reporting procedures.

Sec. 415. Automated data processing requirements.

Sec. 416. Director of child support enforcement program; staffing study.

Sec. 417. Funding for secretarial assistance to State programs.
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Sec. 418. Data collection and reports by the Secretary.

PART III—LOCATE AND CASE TRACKING

Sec. 421. Central State and case registry.

Sec. 422. Centralized collection and disbursement of support payments.

Sec. 423. State directory of new hires.

Sec. 424. Amendments concerning income withholding.

Sec. 425. Locator information from interstate networks.

Sec. 426. Expansion of the Federal parent locator service.

Sec. 427. Use of social security numbers.

PART IV—STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 431. Adoption of uniform State laws.

Sec. 432. Improvements to full faith and credit for child support orders.

Sec. 433. State laws providing expedited procedures.

Sec. 434. Administrative enforcement in interstate cases.

Sec. 435. Use of forms in interstate enforcement.

PART V—PATERNITY ESTABLISHMENT

Sec. 441. State laws concerning paternity establishment.

Sec. 442. Outreach for voluntary paternity establishment.

PART VI—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 451. National Child Support Guidelines Commission.

Sec. 452. Simplified process for review and adjustment of child support orders.

PART VII—ENFORCEMENT OF SUPPORT ORDERS

Sec. 461. Federal income tax refund offset.

Sec. 462. Internal Revenue Service collection of arrearages.

Sec. 463. Authority to collect support from Federal employees.

Sec. 464. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 465. Motor vehicle liens.

Sec. 466. Voiding of fraudulent transfers.

Sec. 467. State law authorizing suspension of licenses.

Sec. 468. Reporting arrearages to credit bureaus.

Sec. 469. Extended statute of limitation for collection of arrearages.

Sec. 470. Charges for arrearages.

Sec. 471. Denial of passports for nonpayment of child support.

Sec. 472. International child support enforcement.

PART VIII—MEDICAL SUPPORT

Sec. 481. Technical correction to ERISA definition of medical child support

order.

PART IX—ACCESS AND VISITATION PROGRAMS

Sec. 491. Grants to States for access and visitation programs.

Subtitle B—Child Support Enforcement and Assurance Demonstrations

Sec. 494. Child support enforcement and assurance demonstrations.
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Subtitle C—Demonstration Projects To Provide Services to Certain

Noncustodial Parents

Sec. 495. Establishment of demonstration projects for providing services to certain noncustodial parents.

Subtitle D—Severability

Sec. 496. Severability.

TITLE V—TRANSITIONAL MEDICAID

Sec. 501. State option to extend transitional medicaid benefits.

TITLE VI—TEENAGE PREGNANCY PREVENTION

Sec. 601. Supervised living arrangements for minors.

Sec. 602. Reinforcing families.

Sec. 603. Required completion of high school or other training for teenage parents.

Sec. 604. Targeting youth at risk of teenage pregnancy.

Sec. 605. National clearinghouse on teenage pregnancy.

Sec. 606. Denial of Federal housing benefits to minors who bear children outof-wedlock.

Sec. 607. National campaign against teenage pregnancy.

TITLE VII—CHILDREN’S ELIGIBILITY FOR SUPPLEMENTAL

SECURITY INCOME

Sec. 701. Short title.

Sec. 702. Purpose.

Sec. 703. Supplemental security income benefits for disabled children.

Sec. 704. Better targeting and use of benefits.

Sec. 705. Encouraging movement toward independence.

TITLE VIII—FINANCING AND FOOD ASSISTANCE REFORM

Subtitle A—Treatment of Aliens

Sec. 801. Uniform alien eligibility criteria for public assistance programs.

Sec. 802. Extension of deeming of income and resources under transitional aid,

SSI, and food stamp programs.

Sec. 803. Requirements for sponsor’s affidavit of support.

Sec. 804. Extending requirement for affidavits of support to family-related and

diversity immigrants.

Subtitle B—Revenue Provision

Sec. 811. Earned income tax credit denied to individuals not authorized to be

employed in the United States.

Subtitle C—Food Assistance Provisions

Sec. 821. Mandatory claims collection methods.

Sec. 822. Reduction of basic benefit level.

Sec. 823. Prorating benefits after interruptions in participation.

Sec. 824. Work requirement for able-bodied recipients.

Sec. 825. Extending current claims retention rates.

Sec. 826. Two-year freeze of standard deduction.
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Sec. 827. Nutrition assistance for Puerto Rico.

Sec. 828. Repeal of special rule for persons who do not purchase and prepare

food separately.

Sec. 829. Earnings of certain high school students counted as income.

Sec. 830. Energy assistance counted as income.

Sec. 831. Vendor payments for transitional housing counted as income.

Sec. 832. Denial of food stamp benefits for 10 years to certain individuals

found to have fraudulently misrepresented residence to obtain

benefits.

Sec. 833. Disqualification relating to child support arrears.

Sec. 834. Limiting adjustment of minimum benefit.

Sec. 835. Penalty for failure to comply with work requirements of other programs.

Sec. 836. Resumption of discretionary funding for nutrition education and

training program.

Sec. 837. Improvement of child and adult care food program operated under

the National School Lunch Act.

Subtitle D—Supplemental Security Income

Sec. 841. Verification of eligibility for certain SSI disability benefits.

Sec. 842. Nonpayment of SSI disability benefits to substance abusers.

TITLE IX—LEGISLATIVE PROPOSALS; EFFECTIVE DATE

Sec. 901. Secretarial submission.

Sec. 902. Effective date.

1 TITLE I—TRANSITIONAL AID

2 PROGRAM

3 SEC. 101. TRANSITIONAL AID PROGRAM.

4 (a) IN GENERAL.—Title IV (42 U.S.C. 601 et seq.)

5 is amended by striking part A and inserting the following:

6 ‘‘PART A—TRANSITIONAL AID PROGRAM

7 ‘‘SEC. 401. PURPOSE AND APPROPRIATION.

8 ‘‘(a) PURPOSE.—It is the purpose of this part to pro9 vide a program of transitional aid to families with needy

10 children to enhance the well-being of such needy children,

11 and to enable parents of children in such families to obtain

12 and retain work and to become self-sufficient.
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1 ‘‘(b) APPROPRIATIONS.—There is hereby authorized

2 to be appropriated and are appropriated for each fiscal

3 year such sums as may be necessary to carry out the pur4 poses of this part. The sums made available under this

5 subsection shall be used for making payments to States

6 which have submitted, and had approved by the Secretary,

7 State plans for providing a program of transitional aid.

8 ‘‘SEC. 402. STATE PLANS FOR, AND GENERAL REQUIRE9 MENTS OF, TRANSITIONAL AID PROGRAM.

10 ‘‘(a) STATE PLANS.—A State plan for a transitional

11 aid program shall meet the requirements of the following

12 paragraphs:

13 ‘‘(1) ELECTION OF OPTIONS IN PROGRAM DE14 SIGN.—The State plan shall describe the State’s

15 policies regarding eligibility, services, assistance

16 amounts, and program requirements, including a de17 scription of:

18 ‘‘(A) The support and benefits (including

19 benefit levels) provided to individuals eligible to

20 participate and whether such support is in the

21 form of wages in subsidized public or nonprofit

22 employment or direct subsidies to employers.

23 ‘‘(B) The extent to which earned or un24 earned income is disregarded in determining eli25 gibility for, and amount of, assistance.
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1 ‘‘(C) The State’s policy for determining the

2 extent to which child support received on behalf

3 of a member of the family is disregarded in de4 termining eligibility for, and the amount of, as5 sistance.

6 ‘‘(D) The treatment of earnings of a child

7 living in the home.

8 ‘‘(E) The State’s resource limit, including

9 a description of the policy determined by the

10 State regarding any exclusion allowed for vehi11 cles owned by family members, resources set

12 aside for future needs of a child, individual de13 velopment accounts, or other policies estab14 lished by the State to encourage savings.

15 ‘‘(F) Any restrictions the State elects to

16 impose relating to eligibility for assistance of

17 two-parent families.

18 ‘‘(G) The criteria for participating in the

19 program including requirements that a family

20 must comply with as a condition of receiving

21 aid, such as school attendance, participation in

22 appropriate preemployment activities, and re23 ceipt of appropriate childhood immunizations.

24 The plan shall specify whether the State elects

25 to provide incentives for compliance with the re-
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1 quirements, sanctions for noncompliance, or a

2 combination of incentives and sanctions that

3 the State determines appropriate.

4 ‘‘(H) The sanctions imposed on individuals

5 who fail to comply with the State’s program re6 quirements without good cause, including the

7 amount and length of time of such sanctions,

8 provided that if the sanction results in complete

9 elimination of aid to the family, the State plan

10 shall describe the procedures used to ensure the

11 well-being of children.

12 ‘‘(I) Whether payment is made or denied

13 for a child conceived during a period in which

14 such child’s parent was receiving aid under the

15 program.

16 ‘‘(J) Whether the State elects to establish

17 a time limit after which an individual must

18 comply with continuous or additional work re19 quirements under part F as a condition for re20 ceiving aid under the State plan approved under

21 this part.

22 ‘‘(2) PARENTAL RESPONSIBILITY AGREEMENTS

23 AND WAGE PLANS.—
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1 ‘‘(A) IN GENERAL.—The State plan shall

2 provide that the State require the parent or

3 caretaker relative to enter into—

4 ‘‘(i) a Parental Responsibility Agree5 ment in accordance with subparagraph

6 (B), or

7 ‘‘(ii) a Parental Responsibility Agree8 ment in accordance with subparagraph (B)

9 and a Wage Plan in accordance with sec10 tion 491(b) if such parent or caretaker rel11 ative is required to participate in the

12 WAGE program.

13 ‘‘(B) DESCRIPTION OF PARENTAL RESPON14 SIBILITY AGREEMENT.—A Parental Respon15 sibility Agreement is a statement signed by the

16 applicant for aid that—

17 ‘‘(i) specifies that the transitional aid

18 program is a privilege,

19 ‘‘(ii) the transitional aid program is a

20 transitional program to move recipients

21 into work and self-sufficiency, and

22 ‘‘(iii) the individual must abide by any

23 requirements of the State or risk forfeiting

24 eligibility for transitional aid.
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1 ‘‘(3) STATEWIDE PLAN.—The State plan shall

2 be in effect in all political subdivisions of the State.

3 If such plan is not administered uniformly through4 out the State, the plan shall describe the variations.

5 ‘‘(4) GENERAL ELIGIBILITY REQUIREMENT.—

6 ‘‘(A) IN GENERAL.—The State plan shall

7 ensure that transitional aid is provided to all

8 families with needy children and that such aid

9 is furnished with reasonable promptness to indi10 viduals found eligible under the State plan. In

11 providing such assistance, States will take into

12 account the income and needs of a parent of a

13 needy child if the parent is living in the same

14 home as the child.

15 ‘‘(B) NEEDY CHILD.—For purposes of

16 subparagraph (A), a needy child shall be deter17 mined by the State, but shall be a child who—

18 ‘‘(i) is under the age of 18, or

19 ‘‘(ii) at the option of the State, under

20 the age of 19 and a full-time student in a

21 secondary school (or in the equivalent level

22 of vocational or technical training).

23 ‘‘(C) PREGNANT WOMAN.—At the option

24 of the State, the State may provide transitional

25 aid to an individual who does not have a needy
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1 child if such individual is pregnant, and such

2 transitional aid is provided—

3 ‘‘(i) in order to meet the needs of the

4 individual occasioned by or resulting from

5 her pregnancy, and

6 ‘‘(ii) not more than 3 months before

7 and after the date the woman’s child is ex8 pected to be born.

9 ‘‘(D) PERSONS OTHER THAN PARENTS.—

10 For purposes of this paragraph, a State may

11 provide that the following individuals shall con12 stitute a family with a needy child if such indi13 viduals are living in the same home as the child:

14 ‘‘(i) Any relative or legal guardian of

15 the child.

16 ‘‘(ii) Any person who participates in

17 the Food Stamp program with the child.

18 ‘‘(iii) Any other person who pro19 vides—

20 ‘‘(I) care for an incapacitated

21 family member (which, for purposes of

22 this subparagraph only, may include a

23 child receiving supplemental security

24 income benefits under title XVI; or
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1 ‘‘(II) child care to enable a care2 taker relative to work outside the

3 home or to participate in the WAGE

4 program.

5 ‘‘(5) CHILD CARE SERVICES.—The State plan

6 shall provide that no individual shall be sanctioned

7 for failure to comply with the State’s WAGE pro8 gram requirements if such individual needs child

9 care assistance in order to participate, and the State

10 fails to provide such assistance.

11 ‘‘(6) VERIFICATION SYSTEM.—The State plan

12 shall provide that information is requested and ex13 changed for purposes of income and eligibility ver14 ification in accordance with a State system which

15 meets the requirements of section 1137, unless the

16 State has established an alternative system under

17 section 411 to prevent fraud and abuse.

18 ‘‘(7) ALIEN ELIGIBILITY.—The State plan shall

19 provide that in order for an individual to be eligible

20 for transitional aid under this part, the individual

21 shall be—

22 ‘‘(A) a citizen or national of the United

23 States, or

24 ‘‘(B) a qualified alien (as defined in section

25 1101(a)(10)), provided that such alien is not
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1 disqualified from receiving aid under this part

2 by reason of section 210(f) or 245A(h) of the

3 Immigration and Nationality Act (8 U.S.C.

4 1160(f) or 1255a(h)) or any other provision of

5 law.

6 ‘‘(8) DETECTION OF FRAUD.—

7 ‘‘(A) IN GENERAL.—The State plan shall

8 provide (in accordance with regulations issued

9 by the Secretary) for appropriate measures to

10 detect fraudulent applications for transitional

11 aid to families with needy children before estab12 lishing eligibility for such aid.

13 ‘‘(B) DESCRIPTION OF FRAUD CONTROL

14 PROGRAM.—If the State has elected to establish

15 and operate a fraud control program under sec16 tion 411, the State shall submit to the Sec17 retary (with such revisions as may from time to

18 time be necessary) a description of such pro19 gram and will operate such program in full

20 compliance with such section 411.

21 ‘‘(9) PARTICIPATION IN CHILD SUPPORT EN22 FORCEMENT.—The State plan shall provide—

23 ‘‘(A) that the State has in effect a plan ap24 proved under part D and operates a child sup-
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1 port enforcement program in substantial com2 pliance with such plan, and

3 ‘‘(B) that, as a condition of eligibility for

4 aid, each applicant or recipient will be required

5 (subject to subparagraph (D))—

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

7 support from any other person such appli8 cant may have in such applicant’s own be9 half or in behalf of any other family mem10 ber for whom the applicant is applying for

11 or receiving aid; and

12 ‘‘(ii) to cooperate with the State—

13 ‘‘(I) in establishing the paternity

14 of a child born out of wedlock with re15 spect to whom aid is claimed, and

16 ‘‘(II) in obtaining support pay17 ments for such applicant and for a

18 child with respect to whom such aid is

19 claimed;

20 ‘‘(C) that the State agency will imme21 diately refer each applicant requiring paternity

22 establishment, award establishment, or child

23 support enforcement services to the State agen24 cy administering the program under part D;
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1 ‘‘(D) that an individual shall be required

2 to cooperate with the State, as provided under

3 subparagraph (B), unless the individual is

4 found to have good cause for refusing to co5 operate, as determined in accordance with

6 standards prescribed by the Secretary, which

7 standards shall take into consideration the best

8 interests of the child on whose behalf aid is

9 claimed to the satisfaction of the State agency

10 administering the program under part D, as de11 termined in accordance with section 454(26);

12 ‘‘(E) that—

13 ‘‘(i) (except as provided in clause (ii))

14 an applicant requiring services provided

15 under part D shall not be eligible for any

16 aid under this part until such applicant—

17 ‘‘(I) has furnished to the agency

18 administering the State plan under

19 part D the information specified in

20 section 454(26)(E); or

21 ‘‘(II) has been determined by

22 such agency to have good cause not to

23 cooperate; and

24 ‘‘(ii) that the provisions of clause (i)

25 shall not apply—
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1 ‘‘(I) if the agency specified in

2 clause (i) has not within 10 days after

3 such individual was referred to such

4 agency, provided the notification re5 quired by section 454(26)(D)(iii),

6 until such notification is received; and

7 ‘‘(II) if such individual appeals a

8 determination that the individual

9 lacks good cause for noncooperation,

10 until after such determination is af11 firmed after notice and opportunity

12 for a hearing; and

13 ‘‘(F) that, if the relative with whom a child

14 is living is found to be ineligible because of fail15 ure to comply with the requirements of sub16 paragraph (B), the State may authorize protec17 tive payments as provided for in section 405.

18 ‘‘(10) AUTOMATED DATA PROCESSING SYS19 TEM.—The State plan may, at the option of the

20 State, provide for the establishment and operation,

21 in accordance with an (initial and annually updated)

22 advance automated data processing planning docu23 ment approved under subsection (c) of an automated

24 statewide management information system designed

25 effectively and efficiently, to assist management in
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1 the administration of the State plan for transitional

2 aid to families with needy children approved under

3 this part, so as—

4 ‘‘(A) to control and account for—

5 ‘‘(i) all the factors in the total eligi6 bility determination process under such

7 plan for aid (including but not limited to

8 (I) identifiable correlation factors (such as

9 social security numbers, names, dates of

10 birth, home addresses, and mailing ad11 dresses (including postal ZIP codes) of all

12 applicants and recipients of such aid and

13 the relative with whom any child who is

14 such an applicant or recipient is living) to

15 assure sufficient compatibility among the

16 systems of different jurisdictions to permit

17 periodic screening to determine whether an

18 individual is or has been receiving benefits

19 from more than one jurisdiction, (II)

20 checking records of applicants and recipi21 ents of such aid on a periodic basis with

22 other agencies, both intra- and inter-State,

23 for determination and verification of eligi24 bility and payment pursuant to require-
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1 ments imposed by other provisions of this

2 title),

3 ‘‘(ii) the costs, quality, and delivery of

4 funds and services furnished to applicants

5 for and recipients of such aid;

6 ‘‘(B) to notify the appropriate officials of

7 child support, food stamp, social service, and

8 medical assistance programs approved under

9 title XIX whenever the recipient becomes ineli10 gible or the amount of aid or services is

11 changed; and

12 ‘‘(C) to provide for security against unau13 thorized access to, or use of, the data in such

14 system.

15 ‘‘(11) PARTICIPATION IN WAGE.—The State

16 plan shall provide—

17 ‘‘(A) that the State operate a WAGE pro18 gram in accordance with part F, and

19 ‘‘(B) a description of individuals required

20 to participate in the WAGE program in the

21 State; such individuals may not include the fol22 lowing:

23 ‘‘(i) Parents of children under 12

24 weeks of age or, at the State’s option, up

25 to 1 year.
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1 ‘‘(ii) Individuals who are ill or inca2 pacitated, as defined by the State.

3 ‘‘(iii) Individuals who are needed in

4 the home on a full-time basis to care for

5 a disabled child or other household mem6 ber.

7 ‘‘(iv) Individuals who are over 60

8 years of age.

9 ‘‘(v) Individuals under age 16 other

10 than teenage parents.

11 ‘‘(12) REPORT OF CHILD ABUSE.—The State

12 plan shall provide that the State agency will—

13 ‘‘(A) report to an appropriate agency or of14 ficial, known or suspected instances of physical

15 or mental injury, sexual abuse or exploitation,

16 or negligent treatment or maltreatment of a

17 child receiving aid under this part under cir18 cumstances which indicate that the child’s

19 health or welfare is threatened thereby; and

20 ‘‘(B) provide such information with respect

21 to a situation described in subparagraph (A) as

22 the State agency may have.

23 ‘‘(b) APPROVAL OF STATE PLANS.—

24 ‘‘(1) IN GENERAL.—Not later than 60 days

25 after the date a State submits to the Secretary a
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1 plan that provides for the establishment and oper2 ation of a program or an amendment to such plan

3 that meets the requirements of subsection (a), the

4 Secretary shall approve the plan.

5 ‘‘(2) AUTHORITY TO EXTEND DEADLINE.—The

6 60-day deadline established in paragraph (1) with

7 respect to a State may be extended in accordance

8 with an agreement between the Secretary and the

9 State.

10 ‘‘(c) APPROVAL OF AUTOMATIC DATA PROCESSING

11 PLANNING DOCUMENT; REVIEW OF MANAGEMENT IN12 FORMATION SYSTEMS; FAILURE TO COMPLY; REDUCTION

13 OF PAYMENTS.—

14 ‘‘(1) APPROVAL OF AUTOMATED DATA PROC15 ESSING PLANNING DOCUMENT.—The Secretary shall

16 not approve the initial and annually updated ad17 vance automated data processing planning docu18 ment, referred to in paragraph (2), unless the Sec19 retary finds that such document, when implemented,

20 will generally carry out the objectives of the state21 wide management system referred to in such para22 graph, and such document—

23 ‘‘(A) provides for the conduct of, and re24 flects the results of, requirements analysis stud25 ies, which include consideration of the program
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1 mission, functions, organization, services, con2 straints, and current support, of, in, or relating

3 to, such system,

4 ‘‘(B) contains a description of the proposed

5 statewide management system, including a de6 scription of information flows, input data, and

7 output reports and uses,

8 ‘‘(C) sets forth the security and interface

9 requirements to be employed in such statewide

10 management system,

11 ‘‘(D) describes the projected resource re12 quirements for staff and other needs, and the

13 resources available or expected to be available

14 to meet such requirements,

15 ‘‘(E) includes cost-benefit analyses of each

16 alternative management system, data process17 ing services and equipment, and a cost alloca18 tion plan containing the basis for rates, both di19 rect and indirect, to be in effect under such

20 statewide management system,

21 ‘‘(F) contains an implementation plan with

22 charts of development events, testing descrip23 tions, proposed acceptance criteria, and backup

24 and fallback procedures to handle possible fail25 ure of contingencies, and
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1 ‘‘(G) contains a summary of proposed im2 provements of such statewide management sys3 tem in terms of qualitative and quantitative

4 benefits.

5 ‘‘(2) SECRETARIAL REVIEW.—

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

7 on a continuing basis, review, assess, and in8 spect the planning, design, and operation of,

9 statewide management information systems re10 ferred to in section 403(a)(2), with a view to

11 determining whether, and to what extent, such

12 systems meet and continue to meet require13 ments imposed under such section and the con14 ditions specified under paragraph (10) of sub15 section (a).

16 ‘‘(B) SUSPENSION OF APPROVAL.—If the

17 Secretary finds with respect to any statewide

18 management information system referred to in

19 section 403(a)(2) that there is a failure sub20 stantially to comply with criteria, requirements,

21 and other undertakings, prescribed by the ad22 vance automated data processing planning doc23 ument previously approved by the Secretary

24 with respect to such system, then the Secretary

25 shall suspend his approval of such document
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1 until there is no longer any such failure of such

2 system to comply with such criteria, require3 ments, and other undertakings so prescribed.

4 ‘‘(C) REDUCTION OF PAYMENTS UNDER

5 SECTION 403.—If the Secretary determines that

6 such a system has not been implemented by the

7 State by the date specified for implementation

8 in the State’s advance automated data process9 ing planning document, then the Secretary shall

10 reduce payments to such State, in accordance

11 with section 403(b), in an amount equal to 40

12 percent of the expenditures referred to in sec13 tion 403(a)(2) with respect to which payments

14 were made to the State under section

15 403(a)(2). The Secretary may extend the dead16 line for implementation if the State dem17 onstrates to the satisfaction of the Secretary

18 that the State cannot implement such system

19 by the date specified in such planning document

20 due to circumstances beyond the State’s con21 trol.

22 ‘‘(d) TEMPORARY DISQUALIFICATION OF CERTAIN

23 NEWLY LEGALIZED ALIENS.—For temporary disquali24 fication of certain newly legalized aliens from receiving

25 transitional aid to families with needy children, see sub-
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1 section (h) of section 245A of the Immigration and Na2 tionality Act (8 U.S.C. 1255a), subsection (f) of section

3 210 of such Act (8 U.S.C. 1160), and subsection (d)(7)

4 of section 210A of such Act (8 U.S.C. 1161).

5 ‘‘(e) IMPACT ON MEDICAID BENEFITS OF NON6 COMPLIANCE WITH CERTAIN TAP AND WAGE REQUIRE7 MENTS.—If a family becomes ineligible to receive transi8 tional aid under the State transitional aid program be9 cause an individual in such family fails to comply with

10 the requirements of this part—

11 ‘‘(1) a needy child of such family shall remain

12 eligible for medical assistance under the State’s plan

13 approved under title XIX, and

14 ‘‘(2) the family shall be appropriately notified

15 of such extension (in the State agency’s notice to the

16 family of the termination of its eligibility for such

17 aid) as required by section 1925(a)(2).

18 ‘‘SEC. 403. PAYMENTS TO STATES.

19 ‘‘(a) COMPUTATION OF AMOUNTS.—From the sums

20 appropriated therefor, the Secretary of the Treasury shall

21 pay to each State which has an approved plan for a transi22 tional aid program, for each quarter, beginning with the

23 quarter commencing October 1, 1995, an amount equal

24 to—
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1 ‘‘(1) the Federal medical assistance percentage

2 (as defined in section 1905(b)) of the expenditures

3 by the State for benefits and assistance under such

4 plan, and

5 ‘‘(2) 50 percent of so much of the sums ex6 pended during such quarter as are attributable to

7 the planning, design, development, or installation of

8 such statewide mechanized claims processing and in9 formation retrieval systems as—

10 ‘‘(A) meet the conditions of section

11 402(a)(10), and

12 ‘‘(B) the Secretary determines are likely to

13 provide more efficient, economical, and effective

14 administration of the plan and to be compatible

15 with the claims processing and information re16 trieval systems utilized in the administration of

17 State plans approved under title XIX, and

18 State programs with respect to which there is

19 Federal financial participation under title XX.

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

21 The method of computing and paying such amounts shall

22 be as follows:

23 ‘‘(1) ESTIMATES.—The Secretary shall, prior to

24 the beginning of each quarter, estimate the amount

25 to be paid to the State for such quarter under the
26

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1 provisions of subsection (a) of this section, such esti2 mate to be based on—

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

4 its estimate of the total sum to be expended in

5 such quarter in accordance with the provisions

6 of such subsection and stating the amount ap7 propriated or made available by the State and

8 its political subdivisions for such expenditures

9 in such quarter, and if such amount is less than

10 the State’s proportionate share of the total sum

11 of such estimated expenditures, the source or

12 sources from which the difference is expected to

13 be derived,

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

15 children in the State, and

16 ‘‘(C) such other information as the Sec17 retary may find necessary.

18 ‘‘(2) ADJUSTMENTS FOR PRIOR QUARTERS.—

19 The Secretary of Health and Human Services shall

20 then certify to the Secretary of the Treasury the

21 amount so estimated by the Secretary of Health and

22 Human Services—

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

24 be, by any sum by which the Secretary finds

25 that the Secretary’s estimate for any prior
27

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1 quarter was greater or less than the amount

2 which should have been paid to the State for

3 such quarter,

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

5 pro rata share to which the United States is eq6 uitably entitled, as determined by the Secretary

7 of Health and Human Services, of the net

8 amount recovered during any prior quarter by

9 the State or any political subdivision thereof

10 with respect to transitional aid to families with

11 needy children furnished under the State plan,

12 and

13 ‘‘(C) reduced by such amount as is nec14 essary to provide the ‘appropriate reimburse15 ment of the Federal Government’ that the State

16 is required to make under section 457 out of

17 that portion of child support collections retained

18 by the State pursuant to such section,

19 except that such increases or reductions shall not be

20 made to the extent that such sums have been ap21 plied to make the amount certified for any prior

22 quarter greater or less than the amount estimated

23 by the Secretary of Health and Human Services for

24 such prior quarter.
28

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1 ‘‘(3) PAYMENT OF THE AMOUNT CERTIFIED.—

2 The Secretary of the Treasury shall thereupon,

3 through the Fiscal Service of the Department of the

4 Treasury and prior to audit or settlement by the

5 General Accounting Office, pay to the State, at the

6 time or times fixed by the Secretary of Health and

7 Human Services, the amount so certified.

8 ‘‘(c) UNIFORM REPORTING REQUIREMENTS.—In

9 order to assist in obtaining the information needed to

10 carry out subsection (b)(1) and otherwise to perform the

11 Secretary’s duties under this part, the Secretary shall es12 tablish uniform reporting requirements under which each

13 State will be required to furnish data regarding—

14 ‘‘(1) the monthly number of families assisted

15 under this part;

16 ‘‘(2) the types of such families;

17 ‘‘(3) the monthly number of children assisted

18 under this part;

19 ‘‘(4) the amounts expended to serve such fami20 lies and children;

21 ‘‘(5) the length of time for which such families

22 and children are assisted;

23 ‘‘(6) the number of families and children receiv24 ing child care assistance;
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•S 840 IS

1 ‘‘(7) the number of families receiving transi2 tional medicaid assistance; and

3 ‘‘(8) in what form the amounts of assistance

4 are being spent (the amount spent on wage subsidies

5 compared to the amount spent on cash benefits).

6 ‘‘(d) BONUS AMOUNT.—

7 ‘‘(1) IN GENERAL.—For fiscal year 1997 and

8 each fiscal year thereafter, a State operating a tran9 sitional aid program under part A in the preceding

10 fiscal year meeting the requirements of paragraph

11 (2) shall receive a bonus amount equal to 10 percent

12 of the base payment amount determined for such

13 State under section 481(b).

14 ‘‘(2) REQUIREMENTS.—A transitional aid pro15 gram meets the requirements of this paragraph if

16 the program—

17 ‘‘(A) provides for disregards of earned in18 come for families receiving transitional aid to

19 ensure that a family in which a family member

20 worked part-time in a minimum wage job did

21 not have a lower monthly income after calcula22 tion of reasonable work-related expenses than a

23 family of the same size in which a family mem24 ber did not work;
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1 ‘‘(B) provides that calculation of the level

2 of transitional aid under the program for a

3 family is based only on the needs of needy chil4 dren and the caretaker relatives of such chil5 dren; and

6 ‘‘(C) provides for equal treatment of one7 parent and two-parent families.

8 ‘‘SEC. 404. DEVIATION FROM PLAN.

9 ‘‘(a) STOPPAGE OF PAYMENTS.—In the case of any

10 State plan for transitional aid to families with needy chil11 dren which has been approved by the Secretary, if the Sec12 retary, after reasonable notice and opportunity for hearing

13 to the State agency administering or supervising the ad14 ministration of such plan, finds that in the administration

15 of the plan there is a failure to comply substantially with

16 any provision required by section 402(a) to be included

17 in the plan, the Secretary shall notify such State agency

18 that further payments will not be made to the State (or

19 in the Secretary’s discretion, that payments will be limited

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

21 by such failure) until the Secretary is satisfied that such

22 prohibited requirement is no longer so imposed, and that

23 there is no longer any such failure to comply. Until the

24 Secretary is so satisfied the Secretary shall make no fur25 ther payments to such State (or shall limit payments to
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1 categories under or parts of the State plan not affected

2 by such failure).

3 ‘‘(b) MISUSE OF FUNDS.—In any case in which the

4 Secretary finds that a State has misappropriated or mis5 used funds appropriated pursuant to section 403, the Sec6 retary shall reduce the payment to which the State would

7 otherwise be entitled under this part for the fiscal year

8 following the fiscal year in which such finding is made by

9 an amount equal to two times the amount of funds found

10 to be misused or misappropriated.

11 ‘‘SEC. 405. USE OF PAYMENTS FOR BENEFIT OF CHILDREN.

12 ‘‘Whenever the State agency has reason to believe

13 that any payments of transitional aid to families with

14 needy children made with respect to a child are not being

15 or may not be used in the best interests of the child, the

16 State agency may provide for such counseling and guid17 ance services with respect to the use of such payments

18 and the management of other funds by the relative receiv19 ing such payments as it deems advisable in order to assure

20 use of such payments in the best interests of such child,

21 and may provide for advising such relative that continued

22 failure to so use such payments will result in substitution

23 therefor of such protective payments as the State may au24 thorize, or in seeking appointment of a guardian or legal

25 representative as provided in section 1111, or in the impo-
32

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1 sition of criminal or civil penalties authorized under State

2 law if it is determined by a court of competent jurisdiction

3 that such relative is not using or has not used for the

4 benefit of the child any such payments made for that pur5 pose; and the provision of such services or advice by the

6 State agency (or the taking of the action specified in such

7 advice) shall not serve as a basis for withholding funds

8 from such State under section 404 and shall not prevent

9 such payments with respect to such child from being con10 sidered transitional aid to families with needy children.

11 ‘‘SEC. 406. SPECIAL RULE.

12 ‘‘Each needy child, and each relative with whom such

13 a child is living (including the spouse of such relative),

14 who becomes ineligible for transitional aid to families with

15 needy children as a result (wholly or partly) of the collec16 tion or increased collection of child or spousal support

17 under part D of this title, and who has received such aid

18 in at least 3 of the 6 months immediately preceding the

19 month in which such ineligibility begins, shall be deemed

20 to be a recipient of transitional aid to families with needy

21 children for purposes of title XIX for an additional 4 cal22 endar months beginning with the month in which such in23 eligibility begins.
33

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1 ‘‘SEC. 407. PERFORMANCE MEASUREMENT SYSTEM.

2 ‘‘(a) IN GENERAL.—Not later than July 1, 1996, the

3 Secretary, in consultation with the States, shall submit

4 recommendations to Congress to streamline the system for

5 monitoring the accuracy of payments made for transitional

6 aid to families with needy children and for transforming

7 the transitional aid program into a system that measures

8 a State’s performance in moving recipients of such aid into

9 permanent employment.

10 ‘‘(b) DETAILS OF RECOMMENDATIONS.—The rec11 ommendations required by subsection (a) shall—

12 ‘‘(1) be based on a system which replaces the

13 AFDC quality control system (described in section

14 408 of the Social Security Act as in effect on the

15 day before the date of the enactment of the Work

16 and Gainful Employment Act),

17 ‘‘(2) include an effort to ensure the continuity

18 of recipient data collected under the AFDC quality

19 control system and the new streamlined system, and

20 ‘‘(3) integrate the performance measurements

21 under the WAGE program and any other applicable

22 performance measurements that are designed to

23 measure the effectiveness of States in promoting

24 work.
34

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1 ‘‘SEC. 408. EXCLUSION FROM TRANSITIONAL AID PROGRAM

2 UNIT OF INDIVIDUALS FOR WHOM CERTAIN

3 PAYMENTS ARE MADE.

4 ‘‘(a) EXCLUSION OF CHILDREN RECEIVING FOSTER

5 CARE, ETC.—Notwithstanding any other provision of this

6 title (other than subsection (b))—

7 ‘‘(1) a child with respect to whom foster care

8 maintenance payments or adoption assistance pay9 ments are made under part E of this title or under

10 State or local law, or a child or parent receiving ben11 efits under title XVI of this Act, shall not, for the

12 period for which such payments are made, be re13 garded as a member of a family for purposes of de14 termining the amount of benefits of the family under

15 this part; and

16 ‘‘(2) the income and resources of such child or

17 parent shall be excluded from the income and re18 sources of a family under this part.

19 ‘‘(b) LIMITATION.—Subsection (a) of this section

20 shall not apply in the case of a child with respect to whom

21 adoption assistance payments are made under part E of

22 this title or under State or local law, if application of such

23 subsection would reduce the benefits under this part of

24 the family of which the child would otherwise be regarded

25 as a member.
35

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1 ‘‘SEC. 409. TECHNICAL ASSISTANCE FOR DEVELOPING MAN2 AGEMENT INFORMATION SYSTEMS.

3 ‘‘The Secretary shall provide such technical assist4 ance to States as the Secretary determines necessary to

5 assist States to plan, design, develop, or install and pro6 vide for the security of, the management information sys7 tems referred to in section 403(a)(2).

8 ‘‘SEC. 410. ATTRIBUTION OF INCOME AND RESOURCES OF

9 SPONSOR AND SPOUSE TO ALIEN.

10 ‘‘(a) APPLICABILITY; TIME PERIOD.—For purposes

11 of determining eligibility for and the amount of benefits

12 under a State plan approved under this part for an indi13 vidual who is a qualified alien described in section

14 402(a)(7), the income and resources of any person who

15 (as a sponsor of such individual’s entry into the United

16 States) executed an affidavit of support or similar agree17 ment with respect to such individual, and the income and

18 resources of the sponsor’s spouse, shall be deemed to be

19 the unearned income and resources of such individual (in

20 accordance with subsections (b) and (c) of this section)

21 for a period determined under section 802 of the Work

22 and Gainful Employment Act, except that this section is

23 not applicable if such individual is a needy child and such

24 sponsor (or such sponsor’s spouse) is the parent of such

25 child.

26 ‘‘(b) COMPUTATION.—
36

•S 840 IS

1 ‘‘(1) AMOUNT DEEMED UNEARNED INCOME.—

2 The amount of income of a sponsor (and his spouse)

3 which shall be deemed to be the unearned income of

4 a qualified alien for any month shall be determined

5 as follows:

6 ‘‘(A) The total amount of earned and un7 earned income of such sponsor and such spon8 sor’s spouse (if such spouse is living with the

9 sponsor) shall be determined for such month.

10 ‘‘(B) The amount determined under sub11 paragraph (A) shall be reduced by an amount

12 equal to the sum of—

13 ‘‘(i) the lesser of—

14 ‘‘(I) 20 percent of the total of

15 any amounts received by the sponsor

16 and his spouse in such month as

17 wages or salary or as net earnings

18 from self employment, plus the full

19 amount of any costs incurred by them

20 in producing self-employment income

21 in such month, or

22 ‘‘(II) $175;

23 ‘‘(ii) the cash needs standard estab24 lished by the State under its plan for a

25 family of the same size and composition as
37

•S 840 IS

1 the sponsor and those other individuals liv2 ing in the same household as the sponsor

3 who are claimed by him as dependents for

4 purposes of determining his Federal per5 sonal income tax liability but whose needs

6 are not taken into account by the State for

7 the purpose of determining eligibility for

8 transitional aid under this part;

9 ‘‘(iii) any amounts paid by the spon10 sor (or his spouse) to individuals not living

11 in such household who are claimed by him

12 as dependents for purposes of determining

13 his Federal personal income tax liability;

14 and

15 ‘‘(iv) any payments of alimony or

16 child support with respect to individuals

17 not living in such household.

18 ‘‘(2) AMOUNT DEEMED RESOURCES.—The

19 amount of resources of a sponsor (and his spouse)

20 which shall be deemed to be the resources of a quali21 fied alien for any month shall be determined as fol22 lows:

23 ‘‘(A) The total amount of the resources

24 (determined as if the sponsor were applying for

25 aid under the State plan approved under this
38

•S 840 IS

1 part) of such sponsor and such sponsor’s spouse

2 (if such spouse is living with the sponsor) shall

3 be determined.

4 ‘‘(B) The amount determined under sub5 paragraph (A) shall be reduced by $1,500.

6 ‘‘(c) PROVISION OF INFORMATION BY ALIEN CON7 CERNING THE ALIEN’S SPONSOR; RECEIPT OF INFORMA8 TION FROM DEPARTMENTS OF STATE AND JUSTICE.—

9 ‘‘(1) INFORMATION REQUIRED.—Any individual

10 who is an alien and whose sponsor was a public or

11 private agency shall be ineligible for aid under a

12 State plan approved under this part during the pe13 riod determined under section 802 of the Work and

14 Gainful Employment Act, unless the State agency

15 administering such plan determines that such spon16 sor either no longer exists or has become unable to

17 meet such individual’s needs; and such determina18 tion shall be made by the State agency based upon

19 such criteria as it may specify in the State plan, and

20 upon such documentary evidence as it may therein

21 require. Any such individual, and any other individ22 ual who is a qualified alien (as a condition of his or

23 her eligibility for aid under a State plan approved

24 under this part during the period determined under

25 section 802 of the Work and Gainful Employment
39

•S 840 IS

1 Act, shall be required to provide to the State agency

2 administering such plan such information and docu3 mentation with respect to his sponsor as may be

4 necessary in order for the State agency to make any

5 determination required under this section, and to ob6 tain any cooperation from such sponsor necessary

7 for any such determination. Such alien shall also be

8 required to provide to the State agency such infor9 mation and documentation as it may request and

10 which such alien or his sponsor provided in support

11 of such alien’s immigration application.

12 ‘‘(2) COOPERATION WITH SECRETARY OF STATE

13 AND ATTORNEY GENERAL.—The Secretary shall

14 enter into agreements with the Secretary of State

15 and the Attorney General whereby any information

16 available to them and required in order to make any

17 determination under this section will be provided by

18 them to the Secretary (who may, in turn, make such

19 information available, upon request, to a concerned

20 State agency), and whereby the Secretary of State

21 and Attorney General will inform any sponsor of an

22 alien, at the time such sponsor executes an affidavit

23 of support or similar agreement, of the requirements

24 imposed by this section.
40

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1 ‘‘(d) JOINT AND SEVERAL LIABILITY OF ALIEN AND

2 SPONSOR FOR OVERPAYMENT OF AID DURING SPECIFIED

3 PERIOD FOLLOWING ENTRY.—Any sponsor of a qualified

4 alien, and such alien, shall be jointly and severally liable

5 for an amount equal to any overpayment of aid under the

6 State plan made to such alien during the period deter7 mined under section 802 of the Work and Gainful Em8 ployment Act, on account of such sponsor’s failure to pro9 vide correct information under the provisions of this sec10 tion, except where such sponsor was without fault, or

11 where good cause of such failure existed. Any such over12 payment which is not repaid to the State or recovered in

13 accordance with the procedures generally applicable under

14 the State plan to the recoupment of overpayments shall

15 be withheld from any subsequent payment to which such

16 alien or such sponsor is entitled under any provision of

17 this Act.

18 ‘‘(e) DIVISION OF INCOME AND RESOURCES OF INDI19 VIDUAL SPONSORING TWO OR MORE ALIENS LIVING IN

20 SAME HOME.—

21 ‘‘(1) IN GENERAL.—In any case where a person

22 is the sponsor of two or more alien individuals who

23 are living in the same home, the income and re24 sources of such sponsor (and his spouse), to the ex25 tent they would be deemed the income and resources
41

•S 840 IS

1 of any one of such individuals under the preceding

2 provisions of this section, shall be divided into two

3 or more equal shares (the number of shares being

4 the same as the number of such alien individuals)

5 and the income and resources of each such individ6 ual shall be deemed to include one such share.

7 ‘‘(2) DEEMED INCOME AND RESOURCES.—In8 come and resources of a sponsor (and his spouse)

9 which are deemed under this section to be the in10 come and resources of any alien individual in a fam11 ily shall not be considered in determining the need

12 of other family members except to the extent such

13 income or resources are actually available to such

14 other members.

15 ‘‘(f) ALIENS NOT COVERED.—The provisions of this

16 section shall not apply with respect to any alien who is—

17 ‘‘(1) admitted to the United States as a result

18 of the application, prior to April 1, 1980, of the pro19 visions of section 203(a)(7) of the Immigration and

20 Nationality Act (8 U.S.C. 1153(a)(7));

21 ‘‘(2) admitted to the United States as a result

22 of the application, after March 31, 1980, of the pro23 visions of section 207(c) of such Act;

24 ‘‘(3) paroled into the United States as a refugee

25 under section 212(d)(5) of such Act;
42

•S 840 IS

1 ‘‘(4) granted political asylum by the Attorney

2 General under section 208 of such Act; or

3 ‘‘(5) a Cuban or Haitian entrant, as defined in

4 section 501(e) of the Refugee Education Assistance

5 Act of 1980 (Public Law 96–422).

6 ‘‘SEC. 411. FRAUD CONTROL.

7 ‘‘(a) ELECTION FOR FRAUD CONTROL PROGRAM.—

8 Any State, in the administration of its State plan ap9 proved under section 402, may elect to establish and oper10 ate a fraud control program in accordance with this sec11 tion.

12 ‘‘(b) PENALTY FOR FALSE OR MISLEADING STATE13 MENT OR MISREPRESENTATION OF FACT.—Under any

14 such program, if an individual who is a member of a fam15 ily applying for or receiving aid under the State plan ap16 proved under section 402 is found by a Federal or State

17 court or pursuant to an administrative hearing meeting

18 requirements determined in regulations of the Secretary,

19 on the basis of a plea of guilty or nolo contendere or other20 wise, to have intentionally—

21 ‘‘(1) made a false or misleading statement or

22 misrepresented, concealed, or withheld facts, or

23 ‘‘(2) committed any act intended to mislead,

24 misrepresent, conceal, or withhold facts or propound

25 a falsity, for the purpose of establishing or maintain-
43

•S 840 IS

1 ing the family’s eligibility for aid under such State

2 plan or of increasing (or preventing a reduction in)

3 the amount of such aid, then the needs of such indi4 vidual shall not be taken into account by the State

5 in determining eligibility for transitional aid under

6 this part with respect to his or her family—

7 ‘‘(A) for a period of 6 months upon the

8 first occasion of any such offense,

9 ‘‘(B) for a period of 12 months upon the

10 second occasion of any such offense, and

11 ‘‘(C) permanently upon the third or a sub12 sequent occasion of any such offense.

13 ‘‘(c) PROCEEDINGS AGAINST VIOLATORS BY STATE

14 AGENCY.—The State agency involved shall proceed

15 against any individual alleged to have committed an of16 fense described in subsection (b) either by way of adminis17 trative hearing or by referring the matter to the appro18 priate authorities for civil or criminal action in a court

19 of law. The State agency shall coordinate its actions under

20 this section with any corresponding actions being taken

21 under the food stamp program in any case where the fac22 tual issues involved arise from the same or related cir23 cumstances.

24 ‘‘(d) DURATION OF PERIOD OF SANCTIONS; RE25 VIEW.—Any period for which sanctions are imposed under
44

•S 840 IS

1 subsection (b) shall remain in effect, without possibility

2 of administrative stay, unless and until the finding upon

3 which the sanctions were imposed is subsequently reversed

4 by a court of appropriate jurisdiction; but in no event shall

5 the duration of the period for which such sanctions are

6 imposed be subject to review.

7 ‘‘(e) ADDITIONAL SANCTIONS PROVIDED BY LAW.—

8 The sanctions provided under subsection (b) shall be in

9 addition to, and not in substitution for, any other sanc10 tions which may be provided for by law with respect to

11 the offenses involved.

12 ‘‘(f) WRITTEN NOTICE OF PENALTIES FOR

13 FRAUD.—Each State which has elected to establish and

14 operate a fraud control program under this section must

15 provide all applicants for transitional aid to families with

16 needy children under its approved State plan, at the time

17 of their application for such aid, with a written notice of

18 the penalties for fraud which are provided for under this

19 section.

20 ‘‘SEC. 412. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

21 ‘‘The programs under this part, part D, and part F

22 of this title shall be administered by an Assistant Sec23 retary for Family Support within the Department of

24 Health and Human Services, who shall be appointed by

25 the President, by and with the advice and consent of the
45

•S 840 IS

1 Senate, and who shall be in addition to any other Assist2 ant Secretary of Health and Human Services provided for

3 by law.’’.

4 (b) TRANSITION FROM AFDC TO TRANSITIONAL AID

5 PROGRAM.—In the case of any individual who is an appli6 cant for or recipient of aid to families with dependent chil7 dren under part A of title IV of the Social Security Act,

8 as in effect on the day before the effective date of this

9 title, the State may, at the State’s option, provide that—

10 (1) such individual be treated as an applicant

11 for or recipient of (as the case may be) transitional

12 aid to families with needy children under part A of

13 title IV of the Social Security Act as in effect on

14 such effective date, or

15 (2) such individual submit an application for

16 transitional aid in accordance with the provisions of

17 the State plan approved under such part A as so in

18 effect.

19 TITLE II—WORK AND GAINFUL

20 EMPLOYMENT (WAGE) PROGRAM

21 SEC. 201. WAGE PROGRAM.

22 Part F of title IV of the Social Security Act (42

23 U.S.C. 681 et seq.) is amended to read as follows:
46

•S 840 IS

1 ‘‘PART F—WAGE PROGRAM

2 ‘‘SEC. 480. PURPOSE.

3 ‘‘It is the purpose of this part to provide States with

4 flexibility to design programs to ensure that needy families

5 with children obtain employment and avoid long-term wel6 fare dependence.

7 ‘‘Subpart 1—Block Grant

8 ‘‘SEC. 481. BLOCK GRANT.

9 ‘‘(a) BLOCK GRANT AMOUNT.—Subject to section

10 482, each State that operates a WAGE program in ac11 cordance with subpart 2 shall be entitled to receive for

12 each fiscal year a block grant amount equal to—

13 ‘‘(1) the base payment amount determined

14 under subsection (b) and the additional amount de15 scribed in subsection (b)(3); plus

16 ‘‘(2) the performance award amount (if any)

17 determined under subsection (c).

18 ‘‘(b) BASE PAYMENT AMOUNT.—

19 ‘‘(1) IN GENERAL.—Subject to the limitation of

20 paragraph (3), the base payment amount determined

21 under this subsection with respect to each State is—

22 ‘‘(A) for fiscal year 1996, an amount equal

23 to the base amount determined under para24 graph (2); and

25 ‘‘(B) for fiscal year 1997 and each subse26 quent fiscal year, an amount equal to 103 per-
47

•S 840 IS

1 cent of the base payment amount determined

2 under this subsection for the prior fiscal year.

3 ‘‘(2) BASE AMOUNT.—The base amount deter4 mined under this paragraph with respect to each

5 State is an amount equal to the greater of—

6 ‘‘(A) 103 percent of the Federal payments

7 made to the State in fiscal year 1995—

8 ‘‘(i) for child care services described

9 in clause (i) or (ii) of section 402(g)(1)(a)

10 (relating to AFDC–JOBS child care and

11 transitional child care);

12 ‘‘(ii) under section 403(a)(3) (relating

13 to administrative costs of operating the

14 AFDC program), other than any payments

15 made under such section for automated

16 data processing systems; and

17 ‘‘(iii) under section 403(a)(5) (relat18 ing to emergency assistance); or

19 ‘‘(B) 103 percent of the average of the

20 Federal payments described in clauses (i), (ii),

21 and (iii) of subparagraph (A) made to the State

22 in fiscal years 1993, 1994, and 1995.

23 ‘‘(3) ADDITIONAL PAYMENTS.—

24 ‘‘(A) IN GENERAL.—In addition to the

25 amounts specified in paragraph (2), each State
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1 shall be entitled to receive an amount that

2 bears the same ratio to the amount specified in

3 subparagraph (B) for such fiscal year as the av4 erage monthly number of families with needy

5 children receiving transitional aid in the State

6 in the preceding fiscal year bears to the average

7 monthly number of such families in all the

8 States for such preceding year.

9 ‘‘(B) AMOUNT SPECIFIED.—The amount

10 specified in this subparagraph is—

11 ‘‘(i) for fiscal year 1996,

12 $1,200,000,000;

13 ‘‘(ii) for fiscal year 1997,

14 $1,700,000,000;

15 ‘‘(iii) for fiscal year 1998,

16 $2,100,000,000;

17 ‘‘(iv) for fiscal year 1999,

18 $2,700,000,000; and

19 ‘‘(v) for fiscal year 2000,

20 $3,200,000,000.

21 ‘‘(c) PERFORMANCE AWARD.—

22 ‘‘(1) IN GENERAL.—Subject to the limitation of

23 paragraph (4), the performance award determined

24 under this subsection for a fiscal year for a State is

25 an amount equal to the sum of—
49

•S 840 IS

1 ‘‘(A) the full-time employment savings of

2 the State, plus

3 ‘‘(B) the part-time employment savings of

4 the State.

5 ‘‘(2) FULL-TIME EMPLOYMENT SAVINGS.—For

6 purposes of this subsection—

7 ‘‘(A) IN GENERAL.—The full-time employ8 ment savings of a State for any fiscal year is

9 an amount equal to the product of—

10 ‘‘(i) the total number of full-time per11 formance award employees, and

12 ‘‘(ii) an amount equal to 6 times the

13 Federal share of the average monthly tran14 sitional aid paid to individuals in accord15 ance with the State plan under part A for

16 the preceding fiscal year.

17 ‘‘(B) FULL-TIME PERFORMANCE AWARD

18 EMPLOYEES.—The term ‘full-time performance

19 award employees’ means, with respect to any

20 fiscal year, a number of employees equal to the

21 applicable percentage of the average monthly

22 number of individuals who, during the preced23 ing fiscal year, received transitional aid under

24 the program operated in accordance with the

25 State plan under part A.
50

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1 ‘‘(C) APPLICABLE PERCENTAGE.—The

2 term ‘applicable percentage’ means, with re3 spect to any fiscal year, the number of whole

4 percentage points (if any) by which—

5 ‘‘(i) the percentage which—

6 ‘‘(I) the average monthly number

7 of individuals who became ineligible

8 during the preceding fiscal year to re9 ceive transitional aid under the pro10 gram operated in accordance with the

11 State plan under part A by reason of

12 earnings from employment, bears to

13 ‘‘(II) the number of individuals

14 receiving transitional aid under the

15 program operated in accordance with

16 the State plan under part A for such

17 preceding fiscal year, exceeds

18 ‘‘(ii) the percentage determined under

19 clause (i) for fiscal year 1996.

20 ‘‘(D) SPECIAL RULE FOR SHORT-TERM EM21 PLOYEES.—An individual shall not be taken

22 into account under subclause (I) of subpara23 graph (C)(i) unless the employment described

24 in such subclause has continued for 6 consecu25 tive months. If an individual is not taken into
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1 account for a fiscal year by reason of this sub2 paragraph, such individual shall be taken into

3 account in the following fiscal year if such 6-

4 month period ends in such following fiscal year.

5 ‘‘(3) PART-TIME EMPLOYMENT SAVINGS.—For

6 purposes of this subsection—

7 ‘‘(A) IN GENERAL.—The part-time employ8 ment savings of a State for any fiscal year is

9 an amount equal to the product of—

10 ‘‘(i) the total number of part-time per11 formance award employees, and

12 ‘‘(ii) an amount equal to 6 times the

13 Federal share of the average monthly tran14 sitional aid (weighted for family size)

15 which would otherwise be paid to individ16 uals described in subparagraph (C)(i)(I) in

17 accordance with the State plan under part

18 A for the preceding fiscal year but for the

19 fact the individual worked at least 20

20 hours per week.

21 ‘‘(B) PART-TIME PERFORMANCE AWARD

22 EMPLOYEES.—The term ‘part-time performance

23 award employees’ means, with respect to any

24 fiscal year, a number of employees equal to the

25 applicable percentage of the average monthly
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1 number of individuals who, during the preced2 ing fiscal year, received transitional aid under

3 the program operated in accordance with the

4 State plan under part A.

5 ‘‘(C) APPLICABLE PERCENTAGE.—The

6 term ‘applicable percentage’ means, with re7 spect to any fiscal year, the number of whole

8 percentage points (if any) by which—

9 ‘‘(i) the percentage which—

10 ‘‘(I) the average monthly number

11 of individuals who were eligible to re12 ceive transitional aid under the pro13 gram operated in accordance with the

14 State plan under part A during the

15 preceding fiscal year, and worked at

16 least 20 hours a week in a position

17 which was not subsidized by the

18 State, bears to

19 ‘‘(II) the number of individuals

20 receiving transitional aid under the

21 program operated in accordance with

22 the State plan under part A for such

23 preceding fiscal year, exceeds

24 ‘‘(ii) the percentage determined under

25 clause (i) for fiscal year 1996.
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1 ‘‘(D) SPECIAL RULE FOR AREAS OF HIGH

2 UNEMPLOYMENT.—In the case of any State (or

3 any area of a State) which has an average

4 monthly unemployment rate which is more than

5 6.5 percent (as determined by the Secretary of

6 Labor) for the fiscal year for which the percent7 age described in subparagraph (C)(i) is being

8 determined, such State may, in applying sub9 paragraph (C)(i)(I), include individuals residing

10 in such State (or area) who worked at least 20

11 hours a week in positions fully subsidized by

12 the State.

13 ‘‘(4) LIMITATION.—

14 ‘‘(A) IN GENERAL.—The performance

15 award under paragraph (1) for a State for any

16 fiscal year shall not exceed the amount that

17 bears the same ratio to the amount specified in

18 clause (ii) for such fiscal year as the amount of

19 full-time and part-time performance award em20 ployees of the State for a fiscal year bears to

21 the amount of such employees for all States for

22 such fiscal year.

23 ‘‘(B) AMOUNT SPECIFIED.—The amount

24 specified in this subparagraph is—
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1 ‘‘(i) for fiscal year 1998,

2 $200,000,000;

3 ‘‘(ii) for fiscal year 1999,

4 $400,000,000; and

5 ‘‘(iii) for fiscal year 2000 and each

6 fiscal year thereafter, $600,000,000.

7 ‘‘(5) AWARD BEGINNING WITH FISCAL YEAR

8 1998.—No amount shall be paid to a State as a per9 formance award determined under this subsection

10 before October 1, 1997.

11 ‘‘(d) PAYMENTS TO INDIAN TRIBES.—The Secretary

12 shall reserve for payment to Indian tribes and Alaska Na13 tive organizations with an application approved under sec14 tion 492(a)(1)(A) an amount equal to not more than 2

15 percent of the amount appropriated under subsection (a).

16 Such amounts shall be distributed to each tribe and Alas17 ka Native organization in an amount that bears the same

18 ratio to the total amount reserved under this subsection

19 as the number of the participants required to be served

20 in the preceding fiscal year in the tribe’s or Alaska Native

21 organization’s service area bears to the number of partici22 pants to be served by all tribes and Alaska Native organi23 zations in such preceding year. In making such distribu24 tions, the Secretary shall take into account such other fac25 tors as the Secretary deems appropriate, including unique
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1 geographic, economic, demographic, and administrative

2 conditions of individual Indian tribes and Alaska Native

3 organizations.

4 ‘‘SEC. 482. PARTICIPATION RATES.

5 ‘‘(a) PARTICIPATION RATE REQUIREMENT.—

6 ‘‘(1) IN GENERAL.—Notwithstanding section

7 481, the Secretary shall pay to a State an amount

8 equal to 95 percent of the base payment amount de9 termined for the State for a fiscal year if the State’s

10 participation rate determined under subsection (c)

11 for the preceding fiscal year does not exceed or equal

12 the following percentage:

‘‘Fiscal year: Percentage:

1996 ......................................................................................... 35

1997 ......................................................................................... 40

1998 ......................................................................................... 45

1999 ......................................................................................... 50

2000 ......................................................................................... 55.

13 ‘‘(2) REQUIRED WORK ACTIVITY.—A State shall

14 not be treated as having a participation rate meeting

15 the requirements of this subsection if the number of

16 individuals described in subsection (c)(1) engaged in

17 work activities is not at least 50 percent of the total

18 number of individuals described in subsection (c)(1).

19 ‘‘(b) ELECTION BY THE STATE.—In lieu of the reduc20 tion described in subsection (a), a State that does not

21 meet the participation rate requirements described in sub22 section (a), may elect to receive the full amount of the
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1 payments described in section 481(a)(1) to which the

2 State is otherwise entitled for the fiscal year if the State

3 makes available non-Federal contributions for the fiscal

4 year in an amount equal to not less than 5 percent of

5 the State’s non-Federal contributions for the preceding

6 fiscal year.

7 ‘‘(c) DETERMINATION OF PARTICIPATION RATE.—

8 The State’s participation rate for a fiscal year shall be

9 the number, expressed as a percentage, equal to—

10 ‘‘(1) the sum of—

11 ‘‘(A) the average monthly number of indi12 viduals in the State who have participated in

13 work activities or work preparation activities

14 under the WAGE program under subpart 2 for

15 an average of at least 20 hours a week,

16 ‘‘(B) the average monthly number of indi17 viduals who within the previous 6-month period

18 have become ineligible for transitional aid under

19 part A or the WAGE program because the indi20 viduals are employed, and

21 ‘‘(C) the average monthly number of indi22 viduals under sanctions for failing to comply

23 with a WAGE Plan, divided by
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1 ‘‘(2) the average monthly number of families

2 with an adult recipient, not including those who are

3 exempt under section 402(a)(11).

4 ‘‘(d) DEFINITION OF WORK ACTIVITIES.—For pur5 poses of this section, the term ‘work activities’ means—

6 ‘‘(1) unsubsidized employment;

7 ‘‘(2) subsidized private sector employment;

8 ‘‘(3) subsidized public sector employment or

9 work experience (including work associated with the

10 refurbishing of publicly assisted housing) only if suf11 ficient private sector employment is not available;

12 ‘‘(4) on-the-job training; and

13 ‘‘(5) microenterprise employment.

14 ‘‘(e) TWO-YEAR LIMIT.—For purposes of subsection

15 (c)(1)(A), an individual who has participated in the

16 WAGE program for 2 years may not be counted in deter17 mining the State’s participation rate unless such individ18 ual is engaged in a work activity.

19 ‘‘Subpart 2—Establishment and Operation of WAGE

20 Program

21 ‘‘SEC. 490. REQUIREMENT TO ESTABLISH A WAGE PRO22 GRAM.

23 ‘‘A State shall establish a work and gainful employ24 ment program (hereafter in this part referred to as the

25 ‘WAGE program’) in accordance with section 491.
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1 ‘‘SEC. 491. ESTABLISHMENT AND OPERATION OF FLEXIBLE

2 STATE PROGRAMS.

3 ‘‘(a) PROGRAM REQUIREMENTS.—Any State with a

4 State plan approved under subsection (c) shall establish

5 and operate a program that meets the following require6 ments:

7 ‘‘(1) OBJECTIVE.—The objective of the pro8 gram is for each program participant to find and

9 hold a full-time unsubsidized paid job, and for this

10 goal to be achieved in a cost-effective fashion.

11 ‘‘(2) METHODS OF OBTAINING OBJECTIVE.—

12 The objective of the program under paragraph (1)

13 shall be achieved by connecting recipients of transi14 tional aid with the private sector labor market as

15 soon as possible and offering them the support and

16 skills necessary to remain in the labor market. Each

17 component of the program should seek to attain the

18 objective by emphasizing employment and conveying

19 an understanding that minimum wage jobs are a

20 stepping stone to more highly paid employment. The

21 program is intended to provide recipients with job

22 search and placement, education, training, wage

23 supplementation, temporary subsidized jobs, or such

24 other services as the State deems necessary to help

25 a recipient obtain private sector employment.
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1 ‘‘(3) JOB CREATION.—The creation of jobs,

2 with an emphasis on private sector jobs, shall be a

3 component of the program and shall be a priority for

4 each State office that has responsibility under the

5 program.

6 ‘‘(4) ASSISTANCE.—The State may provide as7 sistance to participants in the program in the follow8 ing forms:

9 ‘‘(A) State job placement services, which

10 may include employment opportunity centers

11 that act as one-stop placement entities through

12 which the State makes available to each pro13 gram participant services under programs car14 ried out under one or more of the following pro15 visions of law:

16 ‘‘(i) Part A of title II of the Job

17 Training Partnership Act (29 U.S.C. 1601

18 et seq.) (relating to the adult training pro19 gram).

20 ‘‘(ii) Part B of title II of such Act (29

21 U.S.C. 1630 et seq.) (relating to the sum22 mer youth employment and training pro23 grams).
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1 ‘‘(iii) Part C of title II of such Act

2 (29 U.S.C. 1641 et seq.) (relating to the

3 youth training program).

4 ‘‘(iv) Title III of such Act (29 U.S.C.

5 1651 et seq.) (relating to employment and

6 training assistance for dislocated workers).

7 ‘‘(v) Part B of title IV of such Act

8 (29 U.S.C. 1691 et seq.) (relating to the

9 Job Corps).

10 ‘‘(vi) The Carl D. Perkins Vocational

11 and Applied Technology Education Act (20

12 U.S.C. 2301 et seq.).

13 ‘‘(vii) The Adult Education Act (20

14 U.S.C. 1201 et seq.).

15 ‘‘(viii) Part B of chapter 1 of title I

16 of the Elementary and Secondary Edu17 cation Act of 1965 (20 U.S.C. 2741 et

18 seq.) (relating to Even Start family lit19 eracy programs).

20 ‘‘(ix) Subtitle A of title VII of the

21 Stewart B. McKinney Homeless Assistance

22 Act (42 U.S.C. 11421) (relating to adult

23 education for the homeless).

24 ‘‘(x) Subtitle B of title VII of such

25 Act (42 U.S.C. 11431 et seq.) (relating to
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1 education for homeless children and

2 youth).

3 ‘‘(xi) Subtitle C of title VII of such

4 Act (42 U.S.C. 11441) (relating to job

5 training for the homeless).

6 ‘‘(xii) The School-to-Work Opportuni7 ties Act of 1994.

8 ‘‘(xiii) The National and Community

9 Service Act of 1990 (42 U.S.C. 12501 et

10 seq.).

11 ‘‘(xiv) The National Skill Standards

12 Act of 1994.

13 ‘‘(B) Private placement company services,

14 which may include contracts the State enters

15 into with private companies (whether operated

16 for profit or not for profit) or community action

17 agencies for placement of participants in the

18 program in positions of full-time or part-time

19 employment, preferably in the private sector,

20 for wages sufficient to eliminate the need of

21 such participants for cash assistance.

22 ‘‘(C) Microenterprise programs, including

23 programs under which the State makes grants

24 and loans to public and private organizations,

25 agencies, and other entities (whether operated
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1 for profit or not for profit) to enable such enti2 ties to facilitate economic development by—

3 ‘‘(i) providing technical assistance, ad4 vice, and business support services (includ5 ing assistance, advice, and support relating

6 to business planning, financing, marketing,

7 and other microenterprise development ac8 tivities) to owners of microenterprises and

9 persons developing microenterprises; and

10 ‘‘(ii) providing general support (such

11 as peer support and self-esteem programs)

12 to owners of microenterprises and persons

13 developing microenterprises.

14 ‘‘(D) Work supplementation programs,

15 under which the State may use part or all of

16 the sums that would otherwise be payable to

17 participants in the program as transitional aid

18 under part A for the purpose of providing and

19 subsidizing jobs for such participants as an al20 ternative to the transitional aid that would oth21 erwise be so payable to them.

22 ‘‘(E) Innovative JOBS programs, including

23 programs similar to—

24 ‘‘(i) the program known as the ‘GAIN

25 Program’ that has been operated by River-
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1 side County, California, under Federal law

2 in effect immediately before the date this

3 section first applies to the State of Califor4 nia;

5 ‘‘(ii) the program known as ‘JOBS

6 Plus’ that has been operated by the State

7 of Oregon under Federal law in effect im8 mediately before the date this section first

9 applies to the State of Oregon; and

10 ‘‘(iii) the program known as ‘JOBS’

11 that has been operated by Kenosha Coun12 ty, Wisconsin, under Federal law in effect

13 immediately before the date this section

14 first applies to the State of Wisconsin.

15 ‘‘(F) Temporary subsidized job creation,

16 which may include workfare programs.

17 ‘‘(G) Education or training services.

18 ‘‘(H) Any other service which provides in19 dividuals with the support and skills necessary

20 to obtain and keep employment in the private

21 sector.

22 For purposes of subparagraph (C), the term

23 ‘microenterprise’ means a commercial enterprise

24 which has 5 or fewer employees, one or more of

25 whom owns the enterprise.
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1 ‘‘(5) WAGE PLAN.—The State agency shall de2 velop a WAGE Plan in accordance with subsection

3 (b) with each program participant.

4 ‘‘(6) HOURS OF PARTICIPATION REQUIRE5 MENT.—The State shall provide that each partici6 pant in the program under this section shall partici7 pate in activities in accordance with this section for

8 at least 20 hours per week (or, at the State’s option,

9 a greater number of hours per week), including job

10 search in cases where the individual is not employed

11 in an unsubsidized job in the private sector.

12 ‘‘(7) TIME LIMIT.—A State may establish a

13 time limit of any duration for participation by an in14 dividual in the WAGE program. A State shall not

15 terminate any participant subject to such time limit

16 if the participant has complied with the require17 ments set forth in the WAGE Plan established in ac18 cordance with paragraph (5).

19 ‘‘(8) CHILD CARE SERVICES.—The State shall

20 offer each individual participating in the program

21 child care services (as determined by the State) if

22 such individual requires child care services in order

23 to participate.

24 ‘‘(9) NONDISPLACEMENT.—The program shall

25 comply with the requirements of subsection (g).
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1 ‘‘(10) NONCUSTODIAL PARENTS.—

2 ‘‘(A) IN GENERAL.—The State may pro3 vide services under the program, on a voluntary

4 or mandatory basis, to noncustodial parents of

5 needy children who are recipients of transitional

6 aid.

7 ‘‘(B) PARTICIPATION RATE.—Noncustodial

8 parents who participate in the WAGE program

9 shall be treated as participants for purposes of

10 determining the participation rate under section

11 482.

12 ‘‘(b) WAGE PLAN.—

13 ‘‘(1) IN GENERAL.—On the basis of an initial

14 assessment of the skills, prior work experience, and

15 employability of each individual who the State re16 quires to participate in the WAGE program, the

17 State agency shall, together with the individual, de18 velop a WAGE Plan, which—

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

20 individual and contains an individualized com21 prehensive plan developed by the State agency

22 with the participant for moving the individual

23 into the workforce;

24 ‘‘(B) provides that the participant shall

25 spend at least 20 hours per week (or, at the op-
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1 tion of the State, a greater number of hours per

2 week) in activities provided for in the WAGE

3 Plan, including job search in cases where the

4 individual is not employed in an unsubsidized

5 job in the private sector;

6 ‘‘(C) sets forth the obligations of the indi7 vidual, which may include a requirement that

8 the individual attend school, maintain certain

9 grades and attendance, keep school age children

10 of the individual in school, immunize children,

11 attend parenting and money management class12 es, or do other things that will help the individ13 ual become and remain employed in the private

14 sector;

15 ‘‘(D) provides that the participant shall ac16 cept any bona fide offer of unsubsidized full17 time employment, unless the participant has

18 good cause for not doing so;

19 ‘‘(E) describes the child care and other so20 cial services and assistance which the State will

21 provide in order to allow the individual to take

22 full advantage of the activities under the pro23 gram operated in accordance with this section;

24 ‘‘(F) at the option of the State, provides

25 that aid under the transitional aid program is
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1 to be paid to the participant based on the num2 ber of hours that the participant spends in ac3 tivities provided for in the agreement; and

4 ‘‘(G) at the option of the State, requires

5 the participant to undergo appropriate sub6 stance abuse treatment.

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

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

9 ‘‘(A) within 90 days (or, at the option of

10 the State, 180 days) after the effective date of

11 this part, in the case of an individual who, as

12 of such effective date, is a recipient of aid

13 under the State plan approved under part A; or

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

15 the State, 90 days) after the individual is deter16 mined to be eligible for such aid, in the case of

17 any other individual.

18 ‘‘(c) STATE PLANS.—

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

20 date a State submits to the Secretary a plan that

21 provides for the establishment and operation of a

22 program that meets the requirements of subsection

23 (a), the Secretary shall approve the plan.

24 ‘‘(2) AUTHORITY TO EXTEND DEADLINE.—The

25 60-day deadline established in paragraph (1) with
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1 respect to a State may be extended in accordance

2 with an agreement between the Secretary and the

3 State.

4 ‘‘(d) ANNUAL REPORTS.—

5 ‘‘(1) COMPLIANCE WITH PERFORMANCE MEAS6 URES.—Each State that operates a program under

7 this section shall submit to the Secretary annual re8 ports that compare the achievements of the program

9 with the performance-based measures established

10 under subsection (e).

11 ‘‘(2) COMPLIANCE WITH PARTICIPATION

12 RATES.—Each State that operates a program under

13 this section for a fiscal year shall submit to the Sec14 retary a report on the participation rate determined

15 under section 482 of the State for the fiscal year.

16 ‘‘(e) PERFORMANCE-BASED MEASURES.—The Sec17 retary shall, by regulation, establish measures of the effec18 tiveness of the State’s program established under this sec19 tion in moving recipients of transitional aid under the

20 State plan approved under part A into full-time

21 unsubsidized employment, based on the performance of

22 such programs.

23 ‘‘(f) EFFECT OF FAILURE TO MEET PARTICIPATION

24 RATES.—
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1 ‘‘(1) IN GENERAL.—If a State fails to achieve

2 the participation rate required by section 482(a) for

3 the fiscal year, the Secretary may make rec4 ommendations for changes in the program. The

5 State may elect to follow such recommendations, and

6 shall demonstrate to the Secretary how the State

7 will achieve the required participation rates.

8 ‘‘(2) SECOND CONSECUTIVE FAILURE.—Not9 withstanding paragraph (1), if the State has failed

10 to achieve the participation rates required by section

11 482(a) for 2 consecutive fiscal years, the Secretary

12 may require the State to make changes in the State

13 program established under this section.

14 ‘‘(g) NO DISPLACEMENT.—No work assignment

15 under the program shall result in—

16 ‘‘(1) the displacement of any currently em17 ployed worker or position (including partial displace18 ment such as a reduction in the hours of non19 overtime work, wages, or employment benefits), or

20 result in the impairment of existing contracts for

21 services or collective bargaining agreements;

22 ‘‘(2) the employment or assignment of a partici23 pant of the filling of a position when—

24 ‘‘(A) any other individual is on layoff from

25 the same or any equivalent position, or
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1 ‘‘(B) the employer has terminated the em2 ployment of any regular employee or otherwise

3 reduced its workforce with the effect of filling

4 the vacancy so created with a participant sub5 sidized under the program; or

6 ‘‘(3) any infringement of the promotional op7 portunities of any currently employed individual.

8 No participant may be assigned under work

9 supplementation programs or under workfare programs to

10 fill any established unfilled position vacancy.

11 ‘‘SEC. 492. SPECIAL PROVISIONS RELATING TO INDIAN

12 TRIBES AND ALASKA NATIVE ORGANIZA13 TIONS.

14 ‘‘(a) SPECIAL PROVISIONS RELATING TO TRIBES

15 AND NATIVE ORGANIZATIONS.—

16 ‘‘(1) IN GENERAL.—

17 ‘‘(A) WAGE PROGRAMS.—An Indian tribe

18 or Alaska Native organization may apply to the

19 Secretary to conduct a WAGE program under

20 this part. An application to conduct a WAGE

21 program in a fiscal year shall be submitted not

22 later than July 1 of the preceding fiscal year.

23 Upon approval of the application, payment in

24 the amount determined in accordance with sec-
71

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1 tion 482(d) shall be made directly to the tribe

2 or organization involved.

3 ‘‘(B) WAIVER OF CERTAIN REQUIRE4 MENTS.—The Secretary may waive any require5 ments of this part with respect to a WAGE pro6 gram conducted under this part by an Indian

7 tribe or Alaska Native organization as the Sec8 retary determines to be appropriate.

9 ‘‘(C) TERMINATION.—The WAGE program

10 conducted by any Indian tribe or Alaska Native

11 organization may be terminated voluntarily by

12 such tribe or organization or may be terminated

13 by the Secretary upon a finding that such pro14 gram is not being conducted in substantial con15 formity with the terms of the application ap16 proved under subparagraph (A). If a WAGE

17 program of an Indian tribe or Alaska Native or18 ganization is terminated, such tribe or organi19 zation shall not be eligible to submit a new ap20 plication under subparagraph (A) with respect

21 to any year before the 6th year following such

22 termination.

23 ‘‘(D) CONSORTIUM OF TRIBES.—An Indian

24 tribe may enter into an agreement with other

25 Indian tribes for the provision of WAGE pro-
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1 gram services by a tribal consortium providing

2 for centralized administration of WAGE pro3 gram services for the region served by the In4 dian tribes so agreeing. In the case of such an

5 agreement, a single application under this part

6 may be submitted by the tribal consortium and

7 the consortium shall be entitled to receive an

8 amount equal to the aggregate amount that all

9 of the tribes in the consortium would have been

10 entitled to receive if each tribe applied sepa11 rately. In any case in which an application is

12 submitted by a tribal consortium, the approval

13 of each Indian tribe included in the consortium

14 shall be a prerequisite to the distribution of

15 funds to the tribal consortium.

16 ‘‘(2) DETERMINATION OF EXEMPT INDIVID17 UAL.—An application under this section shall pro18 vide that upon approval the Indian tribe or Alaska

19 Native organization, as the case may be, will be re20 sponsible for determining whether an individual

21 (within the service area of the tribe or organization)

22 is exempt under section 402(a)(11).

23 ‘‘(b) OTHER REQUIREMENTS.—

24 ‘‘(1) CHILD CARE.—Each Indian tribe and

25 Alaska Native organization submitting an applica-
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1 tion under this section may also submit to the Sec2 retary (as a part of the application) a description of

3 the program that the tribe or organization will im4 plement to meet the child care needs of WAGE pro5 gram participants and may request funds to provide

6 such child care. The Secretary may waive any other

7 requirement of this part with respect to child care

8 services as the Secretary determines inappropriate

9 for such child care program, other than the require10 ment described in section 491(a)(8).

11 ‘‘(2) PAYMENT FOR CHILD CARE.—The Sec12 retary shall adjust the payment for a fiscal year

13 under section 481(d) to reflect the cost of child care

14 for the number of required participants in need of

15 such care in the preceding fiscal year (and other re16 cipients in need of such care) in the tribe’s or Alas17 ka Native organization’s service area, subject to the

18 limitation on total funding for tribes and Alaska Na19 tive organizations.

20 ‘‘(3) DATA COLLECTION.—The Secretary shall

21 establish data collection and reporting requirements

22 with respect to child care services implemented

23 under this subsection.

24 ‘‘(c) DEFINITIONS.—For purposes of this section—
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1 ‘‘(1) TRIBAL CONSORTIUM.—The term ‘tribal

2 consortium’ means any group, association, partner3 ship, corporation, or other legal entity which is con4 trolled, sanctioned, or chartered by the governing

5 body of more than 1 Indian tribe.

6 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’

7 means any tribe, band, nation, or other organized

8 group or community of Indians that—

9 ‘‘(A) is recognized as eligible for the spe10 cial programs and services provided by the

11 United States to Indians because of their status

12 as Indians; and

13 ‘‘(B) for which a reservation exists.

14 For purposes of subparagraph (B), a reservation in15 cludes Indian reservations, public domain Indian al16 lotments, and former Indian reservations in Okla17 homa.

18 ‘‘(3) ALASKA NATIVE ORGANIZATION.—

19 ‘‘(A) IN GENERAL.—The term ‘Alaska Na20 tive organization’ means any organized group of

21 Alaska Natives eligible to operate a Federal

22 program under Public Law 93–638 or such

23 group’s designee.

24 ‘‘(B) BOUNDARIES.—The boundaries of an

25 Alaska Native organization shall be those of the
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1 geographical region, established pursuant to

2 section 7(a) of the Alaska Native Claims Settle3 ment Act, within which the Alaska Native orga4 nization is located (without regard to the own5 ership of the land within the boundaries).

6 ‘‘(C) LIMITS ON APPLICATIONS.—The Sec7 retary may approve only one application from

8 an Alaska Native organization for each of the

9 12 geographical regions established pursuant to

10 section 7(a) of the Alaska Native Claims Settle11 ment Act.

12 Nothing in this paragraph shall be construed to

13 grant or defer any status or powers other than those

14 expressly granted in this paragraph or to validate or

15 invalidate any claim by Alaska Natives of sovereign

16 authority over lands or people.’’.

17 SEC. 202. REGULATIONS.

18 The Secretary of Health and Human Services shall

19 prescribe such regulations as may be necessary to imple20 ment the amendments made by this title.

21 SEC. 203. APPLICABILITY TO STATES.

22 (a) STATE OPTION TO ACCELERATE APPLICABIL23 ITY.—If a State formally notifies the Secretary of Health

24 and Human Services that the State desires to accelerate

25 the applicability to the State of the amendments made by
76

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1 this title, the amendments shall apply to the State on and

2 after such earlier date as the State may select.

3 (b) STATE OPTION TO DELAY APPLICABILITY UNTIL

4 WAIVERS EXPIRE.—The amendments made by this title

5 shall not apply to a State with respect to which there is

6 in effect a waiver issued under section 1115 of the Social

7 Security Act for the State program established under part

8 F of title IV of such Act until the waiver expires, if the

9 State formally notifies the Secretary of Health and

10 Human Services that the State desires to so delay such

11 effective date.

12 (c) AUTHORITY OF THE SECRETARY OF HEALTH

13 AND HUMAN SERVICES TO DELAY APPLICABILITY TO A

14 STATE.—If a State formally notifies the Secretary of

15 Health and Human Services that the State desires to

16 delay the applicability to the State of the amendments

17 made by this title, the amendments shall apply to the

18 State on and after any later date agreed upon by the Sec19 retary and the State.

20 TITLE III—WORKING PARENTS

21 CHILD CARE BLOCK GRANT

22 SEC. 301. PURPOSE.

23 It is the purpose of this title to—

24 (1) eliminate fragmentation of child care pro25 grams; and
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1 (2) increase the availability of affordable child

2 care in order to promote self sufficiency and support

3 working families.

4 SEC. 302. AMENDMENTS TO CHILD CARE AND DEVELOP5 MENT BLOCK GRANT ACT OF 1990.

6 (a) APPROPRIATIONS.—Section 658B of the Child

7 Care and Development Block Grant Act of 1990 (42

8 U.S.C. 9858) is amended to read as follows:

9 ‘‘SEC. 658B. APPROPRIATION.

10 ‘‘For the purpose of providing child care services for

11 eligible children through the awarding of grants to States

12 under this subchapter by the Secretary, there are author13 ized to be appropriated and there are appropriated, from

14 funds in the Treasury not otherwise appropriated,

15 $1,280,000,000 for fiscal year 1996, $1,313,000,000 for

16 fiscal year 1997, $1,350,000,000 for fiscal year 1998,

17 $1,386,000,000 for fiscal year 1999, and $1,423,000,000

18 for fiscal year 2000.’’.

19 (b) AWARDING OF GRANTS.—Section 658C of the

20 Child Care and Development Block Grant Act of 1990 (42

21 U.S.C. 9858a) is amended by striking ‘‘is authorized to’’

22 and inserting ‘‘shall’’.

23 (c) SUPPLEMENTATION.—Section 658E(c)(2)(J) of

24 the Child Care and Development Block Grant Act of 1990

25 (42 U.S.C. 9858c(c)(2)(J)) is amended—
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1 (1) by striking ‘‘Provide’’ and inserting ‘‘(i)

2 Provide’’; and

3 (2) by adding at the end the following new

4 clause:

5 ‘‘(ii) Clause (i) shall not apply in the

6 case of additional funds available to the

7 State under section 658B for fiscal years

8 1996 through 2000 as the result of the re9 peal of sections 402(i) and 403(n) of the

10 Social Security Act (42 U.S.C. 602(i) and

11 603(n)), subchapter E of chapter 8 of sub12 title A of title VI of the Omnibus Budget

13 Reconciliation Act of 1981 (42 U.S.C.

14 9871 et seq.), and the Child Development

15 Associate Scholarship Assistance Act of

16 1985 (42 U.S.C. 10901 et seq.) by the

17 Work and Gainful Employment Act.’’.

18 (d) SET-ASIDES FOR QUALITY AND WORKING FAMI19 LIES AND CHILD CARE GUARANTEE.—Section 658E(c)(3)

20 of the Child Care and Development Block Grant Act of

21 1990 (42 U.S.C. 9858c(c)(3)) is amended—

22 (1) in subparagraph (C), by striking ‘‘25 per23 cent’’ and inserting ‘‘20 percent’’; and

24 (2) by adding at the end the following new sub25 paragraph:
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1 ‘‘(D) ASSISTANCE FOR LOW-INCOME

2 WORKING FAMILIES.—The State shall reserve

3 not less than 50 percent of the amount provided

4 to the State and available for providing services

5 under this subchapter, to carry out child care

6 activities to support low-income working fami7 lies residing in the State.’’.

8 (e) MATCHING REQUIREMENT.—Section 658E(c) of

9 the Child Care and Development Block Grant Act of 1990

10 (42 U.S.C. 9858c(c)) is amended by adding at the end

11 the following new paragraph:

12 ‘‘(6) MATCHING REQUIREMENT.—

13 ‘‘(A) IN GENERAL.—The State plan shall

14 provide that, with respect to the costs to be in15 curred by the State in carrying out the activi16 ties for which a grant under this subchapter is

17 awarded, the State will make available (directly

18 or through in-kind donations from public or pri19 vate entities) non-Federal contributions in an

20 amount equal to not less than $1 for every $4

21 of Federal funds provided under the grant

22 which are attributable to the excess described in

23 subparagraph (B).

24 ‘‘(B) EXCESS.—The excess described in

25 this subparagraph is the amount by which the
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1 funds made available to a State in each fiscal

2 year beginning with fiscal year 1996, exceeds

3 the aggregate amounts received by the State in

4 fiscal year 1995 for child care services under

5 this subchapter and section 403(n) of the Social

6 Security Act (as in effect in such fiscal year).’’.

7 (f) IMPROVING QUALITY.—

8 (1) INCREASE IN REQUIRED FUNDING.—Section

9 658G of the Child Care and Development Block

10 Grant Act of 1990 (42 U.S.C. 9858e) is amended by

11 striking ‘‘not less than 20 percent’’ and inserting

12 ‘‘50 percent’’.

13 (2) QUALITY ENHANCEMENT BONUS.—Section

14 658G of the Child Care and Development Block

15 Grant Act of 1990 (42 U.S.C. 9858e) is amended—

16 (A) by striking ‘‘A State’’ and inserting

17 ‘‘(a) IN GENERAL.—A State’’; and

18 (B) by adding at the end the following new

19 subsection:

20 ‘‘(b) QUALITY ENHANCEMENT BONUS.—

21 ‘‘(1) IN GENERAL.—The Secretary shall estab22 lish a child care quality enhancement bonus to make

23 funds available to States that demonstrate progress

24 in the implementation of—
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1 ‘‘(A) innovative teacher training programs

2 such as the Department of Defense staff devel3 opment and compensation program for child

4 care personnel; or

5 ‘‘(B) enhanced child care quality standards

6 and licensing and monitoring procedures.

7 ‘‘(2) FUNDING.—From the amounts made

8 available for each fiscal year under subsection (a),

9 the Secretary shall reserve not more than

10 $30,000,000 in each such fiscal year to carry out

11 this subsection.’’.

12 (g) BEFORE- AND AFTER-SCHOOL SERVICES.—Sec13 tion 658H(a) of the Child Care and Development Block

14 Grant Act of 1990 (42 U.S.C. 9858f(a)) is amended by

15 striking ‘‘not less than 75 percent’’ and inserting ‘‘50 per16 cent’’.

17 (h) PAYMENTS.—Section 658J(a) of the Child Care

18 and Development Block Grant Act of 1990 (42 U.S.C.

19 9858h(a)) is amended by striking ‘‘Subject to the avail20 ability of appropriation, a’’ and inserting ‘‘A’’.

21 (i) AMOUNTS RESERVED; ALLOTMENTS.—

22 (1) TERRITORIES AND POSSESSIONS.—Para23 graph (1) of section 658O(a) of the Child Care and

24 Development Block Grant Act of 1990 (42 U.S.C.

25 9858m(a)(1)) is amended to read as follows:
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1 ‘‘(1) TERRITORIES AND POSSESSIONS.—The

2 Secretary shall reserve in each fiscal year an amount

not to exceed 1 3 ⁄2 of 1 percent of the amount appro4 priated in fiscal year 1995 under this subchapter (as

5 in effect in such fiscal year) for payments to Amer6 ican Samoa, the Virgin Islands of the United States,

7 the Commonwealth of the Northern Mariana Is8 lands, and the Trust Territory of the Pacific Islands

9 to be allotted in accordance with the respective needs

10 of such jurisdictions. In addition, the Secretary shall

11 reserve, for payment to such jurisdictions, an

amount not to exceed 1 12 ⁄2 of 1 percent of the

13 amounts appropriated under this subchapter in each

14 fiscal year which are in excess of the amounts appro15 priated in fiscal year 1995 under this subchapter

16 and under section 403(n) of the Social Security Act

17 (as in effect in such fiscal year).’’.

18 (2) INDIAN TRIBES.—Paragraph (2) of section

19 658O(a) of the Child Care and Development Block

20 Grant Act of 1990 (42 U.S.C. 9858m(a)(2)) is

21 amended to read as follows:

22 ‘‘(2) INDIAN TRIBES.—The Secretary shall re23 serve in each fiscal year an amount not to exceed 3

24 percent of the amount appropriated in fiscal year

25 1995 under this subchapter (as in effect of such fis-
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1 cal year) for payments to Indian tribes and tribal or2 ganizations which have applications approved under

3 subsection (c). In addition, the Secretary shall re4 serve, for such payments to Indian tribes and tribal

5 organizations, an amount not to exceed 3 percent of

6 amounts appropriated under this subchapter in each

7 fiscal year in excess of the amounts appropriated in

8 fiscal year 1995 under this subchapter and under

9 section 403(n) of the Social Security Act (as in ef10 fect in such fiscal year).’’.

11 (3) ALLOTMENT.—Section 658O(b) of the Child

12 Care and Development Block Grant Act of 1990 (42

13 U.S.C. 9858m(b)) is amended by adding at the end

14 the following new paragraph:

15 ‘‘(5) ALLOTMENT.—

16 ‘‘(A) BASE ALLOTMENT.—Beginning with

17 fiscal year 1996, the amount allotted to a State

18 under this section shall include the amount that

19 the State received in fiscal year 1995 under this

20 subchapter, and under the provisions of sections

21 402(i) and 403(n) of the Social Security Act

22 (42 U.S.C. 602(i), 603(n)), subchapter E of

23 chapter 8 of subtitle A of title VI of the Omni24 bus Budget Reconciliation Act of 1981 (42

25 U.S.C. 9871 et seq.), and the Child Develop-
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1 ment Associate Scholarship Assistance Act of

2 1985 (42 U.S.C. 10901 et seq.) (as in effect in

3 such fiscal year).

4 ‘‘(B) ADDITIONAL AMOUNTS.—Beginning

5 with fiscal year 1996, any amounts appro6 priated under section 658B for a fiscal year

7 and remaining after the requirement of sub8 paragraph (A) and subsection (a) is complied

9 with shall be allotted to States pursuant to the

10 formula described in paragraph (1).’’.

11 SEC. 303. PROGRAM REPEALS.

12 (a) STATE DEPENDENT CARE GRANTS.—Subchapter

13 E of chapter 8 of subtitle A of title VI of the Omnibus

14 Budget Reconciliation Act of 1981 (42 U.S.C. 9871 et

15 seq.) is repealed.

16 (b) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

17 ASSISTANCE ACT.—The Child Development Associate

18 Scholarship Assistance Act of 1985 (42 U.S.C. 10901 et

19 seq.) is repealed.

20 SEC. 304. REFERENCES.

21 (a) IN GENERAL.—The heading for subchapter C of

22 chapter 8 of subtitle A of title IV of the Omnibus Budget

23 Reconciliation Act of 1981 (Public Law 97–37), as

24 amended by section 5082 of the Omnibus Budget Rec25 onciliation Act of 1990 (Public Law 101–508), is amended
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1 by striking ‘‘Child Care Development Block Grant’’ and

2 inserting ‘‘Working Parents Child Care Block Grant’’.

3 (b) REFERENCE.—Except when inappropriate, when4 ever any reference is made in any provision of law, regula5 tion, rule, record, or document to the Child Care Develop6 ment Block Grant, such reference shall be considered a

7 reference to the Working Parents Child Care Block Grant.

8 TITLE IV—CHILD SUPPORT

9 RESPONSIBILITY

10 SEC. 400. SHORT TITLE.

11 This title may be cited as the ‘‘Child Support Respon12 sibility Act of 1995’’.

13 Subtitle A—Improvements to the

14 Child Support Collection System

15 PART I—ELIGIBILITY AND OTHER MATTERS

16 CONCERNING TITLE IV–D PROGRAM CLIENTS

17 SEC. 401. STATE OBLIGATION TO PROVIDE PATERNITY ES18 TABLISHMENT AND CHILD SUPPORT EN19 FORCEMENT SERVICES.

20 (a) STATE LAW REQUIREMENTS.—Section 466(a)

21 (42 U.S.C. 666(a)) is amended by adding at the end the

22 following new paragraph:

23 ‘‘(12) Procedures under which—

24 ‘‘(A) every child support order established

25 or modified in the State on or after October 1,
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1 1998, is recorded in the central case registry

2 established in accordance with section 454A(e);

3 and

4 ‘‘(B) child support payments are collected

5 through the centralized collections unit estab6 lished in accordance with section 454B—

7 ‘‘(i) on and after October 1, 1998,

8 under each order subject to wage withhold9 ing under section 466(b); and

10 ‘‘(ii) on and after October 1, 1999,

11 under each other order required to be re12 corded in such central case registry under

13 this paragraph or section 454A(e), if re14 quested by either party subject to such

15 order.’’.

16 (b) 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 such State will undertake to

21 provide appropriate services under this part to—

22 ‘‘(A) each child with respect to whom an

23 assignment is effective under section 402(a)(9),

24 471(a)(17), or 1912 (except in cases in which

25 the State agency determines, in accordance with
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1 paragraph (25), that it is against the best in2 terests of the child to do so); and

3 ‘‘(B) each child not described in subpara4 graph (A)—

5 ‘‘(i) with respect to whom an individ6 ual applies for such services; or

7 ‘‘(ii) on and after October 1, 1998,

8 with respect to whom a support order is

9 recorded in the central State case registry

10 established under section 454A, if applica11 tion is made for services under this part;’’;

12 and

13 (2) in paragraph (6)—

14 (A) by striking ‘‘(6) provide that’’ and all

15 that follows through subparagraph (A) and in16 serting the following:

17 ‘‘(6) provide that—

18 ‘‘(A) services under the State plan shall be

19 made available to nonresidents on the same

20 terms as to residents;’’;

21 (B) in subparagraph (B)—

22 (i) by inserting ‘‘on individuals not re23 ceiving assistance under part A’’ after

24 ‘‘such services shall be imposed’’; and
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1 (ii) by inserting ‘‘but no fees or costs

2 shall be imposed on any absent or custo3 dial parent or other individual for inclusion

4 in the central State registry maintained

5 pursuant to section 454A(e)’’;

6 (C) in each of subparagraphs (B), (C),

7 (D), and (E), by indenting such subparagraph

8 and aligning its left margin with the left margin

9 of subparagraph (A); and

10 (D) in each of subparagraphs (B), (C),

11 and (D), by striking the final comma and in12 serting a semicolon.

13 (c) CONFORMING AMENDMENTS.—

14 (1) PATERNITY ESTABLISHMENT PERCENT15 AGE.—Section 452(g)(2)(A) (42 U.S.C.

16 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

17 place it appears and inserting ‘‘454(4)(A)(ii)’’.

18 (2) STATE PLAN.—Section 454(23) (42 U.S.C.

19 654(23)) is amended, effective October 1, 1998, by

20 striking ‘‘information as to any application fees for

21 such services and’’.

22 (3) PROCEDURES TO IMPROVE ENFORCE23 MENT.—Section 466(a)(3)(B) (42 U.S.C.

24 666(a)(3)(B)) is amended by striking ‘‘in the case of

25 overdue support which a State has agreed to collect
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1 under section 454(6)’’ and inserting ‘‘in any other

2 case’’.

3 (4) DEFINITION OF OVERDUE SUPPORT.—Sec4 tion 466(e) (42 U.S.C. 666(e)) is amended by strik5 ing ‘‘or (6)’’.

6 SEC. 402. DISTRIBUTION OF PAYMENTS.

7 (a) DISTRIBUTIONS THROUGH STATE CHILD SUP8 PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE

9 RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is

10 amended—

11 (1) in subparagraph (A)—

12 (A) by inserting ‘‘except as otherwise spe13 cifically provided in section 464 or 466(a)(3),’’

14 after ‘‘is effective,’’; and

15 (B) by striking ‘‘except that’’ and all that

16 follows through the semicolon; and

17 (2) in subparagraph (B), by striking ‘‘, except’’

18 and all that follows through ‘‘medical assistance’’.

19 (b) DISTRIBUTION TO A FAMILY CURRENTLY RE20 CEIVING AID UNDER PART A OF TITLE IV OF THE SO21 CIAL SECURITY ACT.—Section 457 (42 U.S.C. 657) is

22 amended—

23 (1) by striking subsection (a) and redesignating

24 subsection (b) as subsection (a);

25 (2) in subsection (a), as redesignated—
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1 (A) in the matter preceding paragraph (2),

2 to read as follows:

3 ‘‘(a) IN THE CASE OF A FAMILY RECEIVING AID

4 UNDER PART A OF TITLE IV OF THE SOCIAL SECURITY

5 ACT.—Amounts collected under this part during any

6 month as support of a child who is receiving assistance

7 under part A (or a parent or caretaker relative of such

8 a child) shall (except in the case of a State exercising the

9 option under subsection (b)) be distributed as follows:

10 ‘‘(1) an amount equal to the amount that will

11 be disregarded pursuant to section 402(a)(1)(C)

12 shall be taken from each of—

13 ‘‘(A) the amounts received in a month

14 which represent payments for that month; and

15 ‘‘(B) the amounts received in a month

16 which represent payments for a prior month

17 which were made by the absent parent in that

18 prior month;

19 and shall be paid to the family without affecting its

20 eligibility for assistance or decreasing any amount

21 otherwise payable as assistance to such family dur22 ing such month;’’;

23 (B) in paragraph (4), by striking ‘‘or (B)’’

24 and all that follows through the period and in25 serting ‘‘; then (B) from any remainder,
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1 amounts equal to arrearages of such support

2 obligations assigned, pursuant to part A, to any

3 other State or States shall be paid to such

4 other State or States and used to pay any such

5 arrearages (with appropriate reimbursement of

6 the Federal Government to the extent of its

7 participation in the financing); and then (C)

8 any remainder shall be paid to the family.’’; and

9 (3) by inserting after subsection (a), as redesig10 nated, the following new subsection:

11 ‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM12 ILY RECEIVING AID UNDER PART A OF TITLE IV OF THE

13 SOCIAL SECURITY ACT.—In the case of a State electing

14 the option under this subsection, amounts collected as de15 scribed in subsection (a) shall be distributed as follows:

16 ‘‘(1) an amount equal to the amount that will

17 be disregarded pursuant to section 402(a)(1)(C)

18 shall be taken from each of—

19 ‘‘(A) the amounts received in a month

20 which represent payments for that month; and

21 ‘‘(B) the amounts received in a month

22 which represent payments for a prior month

23 which were made by the absent parent in that

24 prior month;
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1 and shall be paid to the family without affecting its

2 eligibility for assistance or decreasing any amount

3 otherwise payable as assistance to such family dur4 ing such month;

5 ‘‘(2) second, from any remainder, amounts

6 equal to the balance of support owed for the current

7 month shall be paid to the family;

8 ‘‘(3) third, from any remainder, amounts equal

9 to arrearages of such support obligations assigned,

10 pursuant to part A, to the State making the collec11 tion shall be retained and used by such State to pay

12 any such arrearages (with appropriate reimburse13 ment of the Federal Government to the extent of its

14 participation in the financing);

15 ‘‘(4) fourth, from any remainder, amounts

16 equal to arrearages of such support obligations as17 signed, pursuant to part A, to any other State or

18 States shall be paid to such other State or States

19 and used to pay any such arrearages (with appro20 priate reimbursement of the Federal Government to

21 the extent of its participation in the financing); and

22 ‘‘(5) fifth, any remainder shall be paid to the

23 family.’’.
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1 (c) DISTRIBUTION TO A FAMILY NOT RECEIVING AID

2 UNDER PART A OF TITLE IV OF THE SOCIAL SECURITY

3 ACT.—

4 (1) IN GENERAL.—Section 457(c) (42 U.S.C.

5 657(c)) is amended to read as follows:

6 ‘‘(c) DISTRIBUTIONS IN CASE OF FAMILY NOT RE7 CEIVING AID UNDER PART A OF TITLE IV OF THE SO8 CIAL SECURITY ACT.—Amounts collected by a State agen9 cy under this part during any month as support of a child

10 who is not receiving assistance under part A (or of a par11 ent or caretaker relative of such a child) shall (subject to

12 the remaining provisions of this section) be distributed as

13 follows:

14 ‘‘(1) first, amounts equal to the total of such

15 support owed for such month shall be paid to the

16 family;

17 ‘‘(2) second, from any remainder, amounts

18 equal to arrearages of such support obligations for

19 months during which such child did not receive as20 sistance under part A shall be paid to the family;

21 ‘‘(3) third, from any remainder, amounts equal

22 to arrearages of such support obligations assigned to

23 the State making the collection pursuant to part A

24 shall be retained and used by such State to pay any

25 such arrearages (with appropriate reimbursement of
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1 the Federal Government to the extent of its partici2 pation in the financing); and

3 ‘‘(4) fourth, from any remainder, amounts

4 equal to arrearages of such support obligations as5 signed to any other State pursuant to part A shall

6 be paid to such other State or States, and used to

7 pay such arrearages, in the order in which such ar8 rearages accrued (with appropriate reimbursement

9 of the Federal Government to the extent of its par10 ticipation in the financing).’’.

11 (2) EFFECTIVE DATE.—The amendment made

12 by paragraph (1) shall become effective on October

13 1, 1999.

14 (d) DISTRIBUTION TO A CHILD RECEIVING ASSIST15 ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.

16 657(d)) is amended, in the matter preceding paragraph

17 (1), by striking ‘‘Notwithstanding the preceding provisions

18 of this section, amounts’’ and inserting the following:

19 ‘‘(d) DISTRIBUTIONS IN CASE OF A CHILD RECEIV20 ING ASSISTANCE UNDER TITLE IV–E.—Amounts’’.

21 (e) REGULATIONS.—The Secretary of Health and

22 Human Services shall promulgate regulations—

23 (1) under part D of title IV of the Social Secu24 rity Act, establishing a uniform nationwide standard
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1 for allocation of child support collections from an ob2 ligor owing support to more than 1 family; and

3 (2) under part A of such title, establishing

4 standards applicable to States electing the alter5 native formula under section 457(b) of such Act for

6 distribution of collections on behalf of families re7 ceiving transitional aid, designed to minimize irregu8 lar monthly payments to such families.

9 (f) CLERICAL AMENDMENTS.—Section 454 (42

10 U.S.C. 654) is amended—

11 (1) in paragraph (11)—

12 (A) by striking ‘‘(11)’’ and inserting

13 ‘‘(11)(A)’’; and

14 (B) by inserting after the semicolon ‘‘and’’;

15 and

16 (2) by redesignating paragraph (12) as sub17 paragraph (B) of paragraph (11).

18 (g) EFFECTIVE DATE.—The amendments made by

19 this section shall be effective with respect to calendar

20 quarters beginning on or after October 1, 1999 or earlier

21 at State’s option.

22 SEC. 403. RIGHTS TO NOTIFICATION AND HEARINGS.

23 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

24 amended by section 402(f), is amended by inserting after

25 paragraph (11) the following new paragraph:
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1 ‘‘(12) establish procedures to provide that—

2 ‘‘(A) individuals who are applying for or

3 receiving services under this part, or are parties

4 to cases in which services are being provided

5 under this part—

6 ‘‘(i) receive notice of all proceedings in

7 which support obligations might be estab8 lished or modified; and

9 ‘‘(ii) receive a copy of any order estab10 lishing or modifying a child support obliga11 tion, or (in the case of a petition for modi12 fication) a notice of determination that

13 there should be no change in the amount

14 of the child support award, within 14 days

15 after issuance of such order or determina16 tion;

17 ‘‘(B) individuals applying for or receiving

18 services under this part have access to a fair

19 hearing or other formal complaint procedure

20 that meets standards established by the Sec21 retary and ensures prompt consideration and

22 resolution of complaints (but the resort to such

23 procedure shall not stay the enforcement of any

24 support order); and
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1 ‘‘(C) the State may not provide to any

2 noncustodial parent of a child representation re3 lating to the establishment or modification of

4 an order for the payment of child support with

5 respect to that child, unless the State makes

6 provision for such representation outside the

7 State agency;’’.

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

9 subsection (a) shall become effective on October 1, 1997.

10 SEC. 404. PRIVACY SAFEGUARDS.

11 (a) STATE PLAN REQUIREMENT.—Section 454 (42

12 U.S.C. 454) is amended—

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

14 (23);

15 (2) by striking the period at the end of para16 graph (24) and inserting ‘‘; and’’; and

17 (3) by adding after paragraph (24) the follow18 ing:

19 ‘‘(25) provide that the State will have in effect

20 safeguards applicable to all sensitive and confidential

21 information handled by the State agency designed to

22 protect the privacy rights of the parties, including—

23 ‘‘(A) safeguards against unauthorized use

24 or disclosure of information relating to proceed-
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1 ings or actions to establish paternity, or to es2 tablish or enforce support;

3 ‘‘(B) prohibitions on the release of infor4 mation on the whereabouts of 1 party to an5 other party against whom a protective order

6 with respect to the former party has been en7 tered; and

8 ‘‘(C) prohibitions on the release of infor9 mation on the whereabouts of 1 party to an10 other party if the State has reason to believe

11 that the release of the information may result

12 in physical or emotional harm to the former

13 party.’’.

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

15 subsection (a) shall become effective on October 1, 1997.

16 SEC. 405. COOPERATION REQUIREMENTS AND GOOD

17 CAUSE EXCEPTIONS.

18 (a) CHILD SUPPORT ENFORCEMENT REQUIRE19 MENTS.—Section 454, as amended by section 405, is

20 amended—

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

22 (24);

23 (2) by striking the period at the end of para24 graph (25) and inserting ‘‘; and’’; and
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1 (3) by adding at the end the following new

2 paragraph:

3 ‘‘(26) provide that the State agency administer4 ing the plan under this part—

5 ‘‘(A) will make the determination specified

6 under paragraph (4), as to whether an individ7 ual is cooperating with efforts to establish pa8 ternity and secure support (or has good cause

9 not to cooperate with such efforts) for purposes

10 of the requirements of part A of this title and

11 section 1912;

12 ‘‘(B) will advise individuals, both orally

13 and in writing, of the grounds for good cause

14 exceptions to the requirement to cooperate with

15 such efforts;

16 ‘‘(C) will take the best interests of the

17 child into consideration in making the deter18 mination whether such individual has good

19 cause not to cooperate with such efforts;

20 ‘‘(D)(i) will make the initial determination

21 as to whether an individual is cooperating (or

22 has good cause not to cooperate) within 10 days

23 after such individual is referred to such State

24 agency by the State agency administering the

25 program under part A or section 1912;
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1 ‘‘(ii) will make redeterminations as to co2 operation or good cause at appropriate inter3 vals; and

4 ‘‘(iii) will promptly notify the individual,

5 and the State agencies administering such pro6 grams, of each such determination and redeter7 mination;

8 ‘‘(E) with respect to any child born on or

9 after the date 10 months after the enactment of

10 this provision, will not determine (or redeter11 mine) the mother (or other custodial relative) of

12 such child to be cooperating with efforts to es13 tablish paternity unless such individual fur14 nishes—

15 ‘‘(i) the name of the putative father

16 (or fathers); and

17 ‘‘(ii) sufficient additional information

18 to enable the State agency, if reasonable

19 efforts were made, to verify the identity of

20 the person named as the putative father

21 (including such information as the putative

22 father’s present address, telephone num23 ber, date of birth, past or present place of

24 employment, school previously or currently

25 attended, and names and addresses of par-
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1 ents, friends, or relatives able to provide

2 location information, or other information

3 that could enable service of process on

4 such person), and

5 ‘‘(F)(i) (where a custodial parent who was

6 initially determined not to be cooperating (or to

7 have good cause not to cooperate) is later deter8 mined to be cooperating or to have good cause

9 not to cooperate) will immediately notify the

10 State agencies administering the programs

11 under part A or section 1912 that this eligi12 bility condition has been met; and

13 ‘‘(ii) (where a custodial parent was initially

14 determined to be cooperating (or to have good

15 cause not to cooperate) will not later determine

16 such individual not to be cooperating (or not to

17 have good cause not to cooperate)) until such

18 individual has been afforded an opportunity for

19 a hearing.’’.

20 (b) MEDICAID AMENDMENTS.—Section 1912(a) is

21 amended—

22 (1) in paragraph (1)(B), by inserting ‘‘(except

23 as provided in paragraph (2))’’ after ‘‘to cooperate

24 with the State’’;
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1 (2) in subparagraphs (B) and (C) of paragraph

2 (1) by striking ‘‘, unless’’ and all that follows and

3 inserting a semicolon; and

4 (3) by redesignating paragraph (2) as para5 graph (5), and inserting after paragraph (1) the fol6 lowing new paragraphs:

7 ‘‘(2) provide that the State agency will imme8 diately refer each applicant or recipient requiring

9 paternity establishment services to the State agency

10 administering the program under part D of title IV;

11 ‘‘(3) provide that an individual will not be re12 quired to cooperate with the State, as provided

13 under paragraph (1), if the individual is found to

14 have good cause for refusing to cooperate, as deter15 mined in accordance with standards prescribed by

16 the Secretary, which standards shall take into con17 sideration the best interests of the individuals in18 volved—

19 ‘‘(A) to the satisfaction of the State agency

20 administering the program under part D, as de21 termined in accordance with section 454(26),

22 with respect to the requirements to cooperate

23 with efforts to establish paternity and to obtain

24 support (including medical support) from a par25 ent; and
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1 ‘‘(B) to the satisfaction of the State agen2 cy administering the program under this title,

3 with respect to other requirements to cooperate

4 under paragraph (1);

5 ‘‘(4) provide that (except as provided in para6 graph (5)) an applicant requiring paternity estab7 lishment services other than an individual who is

8 presumptively eligible pursuant to section 1920)

9 shall not be eligible for medical assistance under this

10 title until such applicant—

11 ‘‘(A) has furnished to the agency admin12 istering the State plan under part D of title IV

13 the information specified in section 454(26)(E);

14 or

15 ‘‘(B) has been determined by such agency

16 to have good cause not to cooperate; and

17 ‘‘(5) provide that the provisions of paragraph

18 (4) shall not apply with respect to an applicant—

19 ‘‘(A) if such agency has not, within 10

20 days after such individual was referred to such

21 agency, provided the notification required by

22 section 454(26)(D)(iii), until such notification

23 is received; and

24 ‘‘(B) if such individual appeals a deter25 mination that the individual lacks good cause
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1 for noncooperation, until after such determina2 tion is affirmed after notice and opportunity for

3 a hearing.’’.

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

5 this section shall be effective with respect to applications

6 filed in or after the first calendar quarter beginning 10

7 months or more after the date of the enactment of this

8 amendment (or such earlier quarter as the State may se9 lect) for transitional aid under part A of title IV of the

10 Social Security Act or for medical assistance under title

11 XIX of such Act.

12 PART II—PROGRAM ADMINISTRATION AND

13 FUNDING

14 SEC. 411. FEDERAL MATCHING PAYMENTS.

15 (a) INCREASED BASE MATCHING RATE.—Section

16 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

17 follows:

18 ‘‘(2) The applicable percent for a quarter for

19 purposes of paragraph (1)(A) is—

20 ‘‘(A) for fiscal year 1997, 69 percent,

21 ‘‘(B) for fiscal year 1998, 72 percent, and

22 ‘‘(C) for fiscal year 1999 and succeeding

23 fiscal years, 75 percent.’’.

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

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

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

6 ‘‘(c) Notwithstanding the provisions of subsection (a),

7 total expenditures for the State program under this part

8 for fiscal year 1997 and each succeeding fiscal year (ex9 cluding 1-time capital expenditures for automation), re10 duced by the percentage specified for such fiscal year

11 under subsection (a)(2) shall not be less than such total

12 expenditures for fiscal year 1996, reduced by 66 percent.’’.

13 SEC. 412. PERFORMANCE-BASED INCENTIVES AND PEN14 ALTIES.

15 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH16 ING RATE.—Section 458 (42 U.S.C. 658) is amended to

17 read as follows:

18 ‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE

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

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

21 reward State child support enforcement programs

22 which perform in an effective manner, the Federal

23 matching rate for payments to a State under section

24 455(a)(1)(A), for each fiscal year beginning on or

25 after October 1, 1998, shall be increased by a factor

26 reflecting the sum of the applicable incentive adjust-
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1 ments (if any) determined in accordance with regu2 lations under this section with respect to Statewide

3 paternity establishment and to overall performance

4 in child support enforcement.

5 ‘‘(2) STANDARDS.—

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

7 specify in regulations—

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

9 rates of improvement as alternatives to

10 such levels, which States must attain to

11 qualify for incentive adjustments under

12 this section; and

13 ‘‘(ii) the amounts of incentive adjust14 ment that shall be awarded to States

15 achieving specified accomplishment or im16 provement levels, which amounts shall be

17 graduated, ranging up to—

18 ‘‘(I) 5 percentage points, in con19 nection with Statewide paternity es20 tablishment; and

21 ‘‘(II) 10 percentage points, in

22 connection with overall performance in

23 child support enforcement.

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

25 standards pursuant to subparagraph (A)(i) and
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1 adjustment amounts pursuant to subparagraph

2 (A)(ii), the Secretary shall ensure that the ag3 gregate number of percentage point increases as

4 incentive adjustments to all States do not ex5 ceed such aggregate increases as assumed by

6 the Secretary in estimates of the cost of this

7 section as of June 1995, unless the aggregate

8 performance of all States exceeds the projected

9 aggregate performance of all States in such cost

10 estimates.

11 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST12 MENT.—The Secretary shall determine the amount

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

14 the basis of the data submitted by the State pursu15 ant to section 454(15)(B) concerning the levels of

16 accomplishment (and rates of improvement) with re17 spect to performance indicators specified by the Sec18 retary pursuant to this section.

19 ‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE AD20 JUSTMENT.—The total percentage point increase de21 termined pursuant to this section with respect to a

22 State program in a fiscal year shall apply as an ad23 justment to the applicable percent under section

24 455(a)(2) for payments to such State for the suc25 ceeding fiscal year.
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1 ‘‘(5) RECYCLING OF INCENTIVE ADJUST2 MENT.—A State shall expend in the State program

3 under this part all funds paid to the State by the

4 Federal Government as a result of an incentive ad5 justment under this section.

6 ‘‘(b) MEANING OF TERMS.—

7 ‘‘(1) STATEWIDE PATERNITY ESTABLISHMENT

8 PERCENTAGE.—

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

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

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

13 ‘‘(i) the total number of out-of-wed14 lock children in the State under 1 year of

15 age for whom paternity is established or

16 acknowledged during the fiscal year, to

17 ‘‘(ii) the total number of children re18 quiring paternity establishment born in the

19 State during such fiscal year.

20 ‘‘(B) ALTERNATIVE MEASUREMENT.—The

21 Secretary shall develop an alternate method of

22 measurement for the Statewide paternity estab23 lishment percentage for any State that does not

24 record the out-of-wedlock status of children on

25 birth certificates.
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1 ‘‘(2) OVERALL PERFORMANCE IN CHILD SUP2 PORT ENFORCEMENT.—The term ‘overall perform3 ance in child support enforcement’ means a measure

4 or measures of the effectiveness of the State agency

5 in a fiscal year which takes into account factors in6 cluding—

7 ‘‘(A) the percentage of cases requiring a

8 child support order in which such an order was

9 established;

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

11 support is being paid;

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

13 child support due; and

14 ‘‘(D) the cost-effectiveness of the State

15 program, as determined in accordance with

16 standards established by the Secretary in regu17 lations.’’.

18 (b) ADJUSTMENT OF PAYMENTS UNDER PART D OF

19 TITLE IV.—Section 455(a)(2) (42 U.S.C. 655(a)(2)), as

20 amended by section 411(a), is amended—

21 (1) by striking the period at the end of sub22 paragraph (C) and inserting a comma; and

23 (2) by adding after and below subparagraph

24 (C), flush with the left margin of the paragraph, the

25 following:
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1 ‘‘increased by the incentive adjustment factor (if any) de2 termined by the Secretary pursuant to section 458.’’.

3 (c) CONFORMING AMENDMENTS.—Section 454(22)

4 (42 U.S.C. 654(22)) is amended—

5 (1) by striking ‘‘incentive payments’’ the first

6 place it appears and inserting ‘‘incentive adjust7 ments’’; and

8 (2) by striking ‘‘any such incentive payments

9 made to the State for such period’’ and inserting

10 ‘‘any increases in Federal payments to the State re11 sulting from such incentive adjustments’’.

12 (d) CALCULATION OF IV–D PATERNITY ESTABLISH13 MENT PERCENTAGE.—

14 (1) OVERALL PERFORMANCE.—Section

15 452(g)(1) (42 U.S.C. 652(g)(1)) is amended in the

16 matter preceding subparagraph (A) by inserting ‘‘its

17 overall performance in child support enforcement is

18 satisfactory (as defined in section 458(b) and regula19 tions of the Secretary), and’’ after ‘‘1994,’’.

20 (2) DEFINITION.—Section 452(g)(2)(A) (42

21 U.S.C. 652(g)(2)(A)) is amended, in the matter pre22 ceding clause (i)—

23 (A) by striking ‘‘paternity establishment

24 percentage’’ and inserting ‘‘IV–D paternity es25 tablishment percentage’’; and
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1 (B) by striking ‘‘(or all States, as the case

2 may be)’’.

3 (3) MODIFICATION OF REQUIREMENTS.—Sec4 tion 452(g)(3) (42 U.S.C. 652(g)(3)) is 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 redesignated,

9 by striking ‘‘the percentage of children born

10 out-of-wedlock in the State’’ and inserting ‘‘the

11 percentage of children in the State who are

12 born out of wedlock or for whom support has

13 not been established’’; and

14 (C) in subparagraph (B), as redesig15 nated—

16 (i) by inserting ‘‘and overall perform17 ance in child support enforcement’’ after

18 ‘‘paternity establishment percentages’’; and

19 (ii) by inserting ‘‘and securing sup20 port’’ before the period.

21 (e) REDUCTION OF PAYMENTS UNDER PART D OF

22 TITLE IV.—

23 (1) NEW REQUIREMENTS.—Section 455 (42

24 U.S.C. 655) is amended—
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1 (A) by redesignating subsection (e) as sub2 section (f); and

3 (B) by inserting after subsection (d) the

4 following new subsection:

5 ‘‘(e)(1) Notwithstanding any other provision of law,

6 if the Secretary finds, with respect to a State program

7 under this part in a fiscal year beginning on or after Octo8 ber 1, 1997—

9 ‘‘(A)(i) on the basis of data submitted by a

10 State pursuant to section 454(15)(B), that the State

11 program in such fiscal year failed to achieve the IV–

12 D paternity establishment percentage (as defined in

13 section 452(g)(2)(A)) or the appropriate level of

14 overall performance in child support enforcement (as

15 defined in section 458(b)(2)), or to meet other per16 formance measures that may be established by the

17 Secretary, or

18 ‘‘(ii) on the basis of an audit or audits of such

19 State data conducted pursuant to section

20 452(a)(4)(C), that the State data submitted pursu21 ant to section 454(15)(B) is incomplete or unreli22 able; and

23 ‘‘(B) that, with respect to the succeeding fiscal

24 year—
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1 ‘‘(i) the State failed to take sufficient cor2 rective action to achieve the appropriate per3 formance levels as described in subparagraph

4 (A)(i) of this paragraph, or

5 ‘‘(ii) the data submitted by the State pur6 suant to section 454(15)(B) is incomplete or

7 unreliable,

8 the amounts otherwise payable to the State under this

9 part for quarters following the end of such succeeding fis10 cal year, prior to quarters following the end of the first

11 quarter throughout which the State program is in compli12 ance with such performance requirement, shall be reduced

13 by the percentage specified in paragraph (2).

14 ‘‘(2) The reductions required under paragraph (1)

15 shall be—

16 ‘‘(A) not less than 3 nor more than 5 percent,

17 or

18 ‘‘(B) not less than 5 nor more than 7 percent,

19 if the finding is the second consecutive finding made

20 pursuant to paragraph (1), or

21 ‘‘(C) not less than 7 nor more than 10 percent,

22 if the finding is the third or a subsequent consecu23 tive such finding.

24 ‘‘(3) For purposes of this subsection, section

25 402(a)(9), and section 452(a)(4), a State which is deter-
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1 mined as a result of an audit to have submitted incomplete

2 or unreliable data pursuant to section 454(15)(B), shall

3 be determined to have submitted adequate data if the Sec4 retary determines that the extent of the incompleteness

5 or unreliability of the data is of a technical nature which

6 does not adversely affect the determination of the level of

7 the State’s performance.’’.

8 (2) CONFORMING AMENDMENTS.—Subsections

9 (d)(3)(A), (g)(1), and (g)(3)(A) of section 452 (42

10 U.S.C. 652) are each amended by striking ‘‘403(h)’’

11 and inserting ‘‘455(e)’’.

12 (f) EFFECTIVE DATES.—

13 (1) INCENTIVE ADJUSTMENTS.—

14 (A) IN GENERAL.—The amendments made

15 by subsections (a), (b), and (c) shall become ef16 fective on October 1, 1997, except to the extent

17 provided in subparagraph (B).

18 (B) EXCEPTION.—Section 458 of the So19 cial Security Act, as in effect prior to the enact20 ment of this section, shall be effective for pur21 poses of incentive payments to States for fiscal

22 years prior to fiscal year 1999.

23 (2) PENALTY REDUCTIONS.—

24 (A) IN GENERAL.—The amendments made

25 by subsection (d) shall become effective with re-
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1 spect to calendar quarters beginning on and

2 after the date of the enactment of this Act.

3 (B) REDUCTIONS.—The amendments

4 made by subsection (e) shall become effective

5 with respect to calendar quarters beginning on

6 and after the date 1 which is year after the

7 date of the enactment of this Act.

8 SEC. 413. FEDERAL AND STATE REVIEWS AND AUDITS.

9 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

10 U.S.C. 654) is amended—

11 (1) in paragraph (14)—

12 (A) by striking ‘‘(14)’’ and inserting

13 ‘‘(14)(A)’’; and

14 (B) by inserting after the semicolon ‘‘and’’;

15 (2) by redesignating paragraph (15) as sub16 paragraph (B) of paragraph (14); and

17 (3) by inserting after paragraph (14) the fol18 lowing new paragraph:

19 ‘‘(15) provide for—

20 ‘‘(A) a process for annual reviews of and

21 reports to the Secretary on the State program

22 under this part—

23 ‘‘(i) which shall include such informa24 tion as may be necessary to measure State

25 compliance with Federal requirements for
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1 expedited procedures and timely case proc2 essing, using such standards and proce3 dures as are required by the Secretary;

4 and

5 ‘‘(ii) under which the State agency

6 will determine the extent to which such

7 program is in conformity with applicable

8 requirements with respect to the operation

9 of State programs under this part (includ10 ing the status of complaints filed under the

11 procedure required under paragraph

12 (12)(B)); and

13 ‘‘(B) a process of extracting from the

14 State automated data processing system and

15 transmitting to the Secretary data and calcula16 tions concerning the levels of accomplishment

17 (and rates of improvement) with respect to ap18 plicable performance indicators (including IV–D

19 paternity establishment percentages and overall

20 performance in child support enforcement) to

21 the extent necessary for purposes of sections

22 452(g) and 458.’’.

23 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

24 U.S.C. 652(a)(4)) is amended to read as follows:
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1 ‘‘(4)(A) review data and calculations transmit2 ted by State agencies pursuant to section

3 454(15)(B) on State program accomplishments with

4 respect to performance indicators for purposes of

5 section 452(g) and 458, and determine the amount

6 (if any) of penalty reductions pursuant to section

7 455(e) to be applied to the State;

8 ‘‘(B) review annual reports by State agencies

9 pursuant to section 454(15)(A) on State program

10 conformity with Federal requirements; evaluate any

11 elements of a State program in which significant de12 ficiencies are indicated by such report on the status

13 of complaints under the State procedure under sec14 tion 454(12)(B); and, as appropriate, provide to the

15 State agency comments, recommendations for addi16 tional or alternative corrective actions, and technical

17 assistance; and

18 ‘‘(C) conduct audits, in accordance with the

19 government auditing standards of the United States

20 Comptroller General—

21 ‘‘(i) at least once every 3 years (or more

22 frequently, in the case of a State which fails to

23 meet requirements of this part, or of regula24 tions implementing such requirements, concern25 ing performance standards and reliability of
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1 program data) to assess the completeness, reli2 ability, and security of the data, and the accu3 racy of the reporting systems, used for the cal4 culations of performance indicators specified in

5 subsection (g) and section 458;

6 ‘‘(ii) of the adequacy of financial manage7 ment of the State program, including assess8 ments of—

9 ‘‘(I) whether Federal and other funds

10 made available to carry out the State pro11 gram under this part are being appro12 priately expended, and are properly and

13 fully accounted for; and

14 ‘‘(II) whether collections and disburse15 ments of support payments and program

16 income are carried out correctly and are

17 properly and fully accounted for; and

18 ‘‘(iii) for such other purposes as the Sec19 retary may find necessary;’’.

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

21 this section shall be effective with respect to calendar

22 quarters beginning on or after the date which is 1 year

23 after the enactment of this section.
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1 SEC. 414. REQUIRED REPORTING PROCEDURES.

2 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

3 652(a)(5)) is amended by inserting ‘‘, and establish proce4 dures to be followed by States for collecting and reporting

5 information required to be provided under this part, and

6 establish uniform definitions (including those necessary to

7 enable the measurement of State compliance with the re8 quirements of this part relating to expedited processes and

9 timely case processing) to be applied in following such pro10 cedures’’ before the semicolon.

11 (b) STATE PLAN REQUIREMENT.—Section 454 (42

12 U.S.C. 654), as amended by sections 404(a) and 405, is

13 amended—

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

15 (25);

16 (2) by striking the period at the end of para17 graph (26) and inserting ‘‘; and’’; and

18 (3) by adding after paragraph (26) the follow19 ing:

20 ‘‘(27) provide that the State shall use the defi21 nitions established under section 452(a)(5) in col22 lecting and reporting information as required under

23 this part.’’.

24 SEC. 415. AUTOMATED DATA PROCESSING REQUIREMENTS.

25 (a) REVISED REQUIREMENTS.—
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1 (1) STATE PLAN.—Section 454(16) (42 U.S.C.

2 654(16)) is amended—

3 (A) by striking ‘‘, at the option of the

4 State,’’;

5 (B) by inserting ‘‘and operation by the

6 State agency’’ after ‘‘for the establishment’’;

7 (C) by inserting ‘‘meeting the requirements

8 of section 454A’’ after ‘‘information retrieval

9 system’’;

10 (D) by striking ‘‘in the State and localities

11 thereof, so as (A)’’ and inserting ‘‘so as’’;

12 (E) by striking ‘‘(i)’’; and

13 (F) by striking ‘‘(including, but not limited

14 to,’’ and all that follows and to the semicolon.

15 (2) AUTOMATED DATA PROCESSING.—Part D of

16 title IV (42 U.S.C. 651–669) is amended by insert17 ing after section 454 the following new section:

18 ‘‘AUTOMATED DATA PROCESSING

19 ‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the

20 requirements of this section, for purposes of the require21 ment of section 454(16), a State agency shall have in op22 eration a single statewide automated data processing and

23 information retrieval system which has the capability to

24 perform the tasks specified in this section, and performs

25 such tasks with the frequency and in the manner specified
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1 in this part or in regulations or guidelines of the

2 Secretary.

3 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys4 tem required under this section shall perform such func5 tions as the Secretary may specify relating to management

6 of the program under this part, including—

7 ‘‘(1) controlling and accounting for use of Fed8 eral, State, and local funds to carry out such pro9 gram; and

10 ‘‘(2) maintaining the data necessary to meet

11 Federal reporting requirements on a timely basis.

12 ‘‘(c) CALCULATION OF PERFORMANCE INDICA13 TORS.—In order to enable the Secretary to determine the

14 incentive and penalty adjustments required by sections

15 452(g) and 458, the State agency shall—

16 ‘‘(1) use the automated system—

17 ‘‘(A) to maintain the requisite data on

18 State performance with respect to paternity es19 tablishment and child support enforcement in

20 the State; and

21 ‘‘(B) to calculate the IV–D paternity es22 tablishment percentage and overall performance

23 in child support enforcement for the State for

24 each fiscal year; and
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1 ‘‘(2) have in place systems controls to ensure

2 the completeness, and reliability of, and ready access

3 to, the data described in paragraph (1)(A), and the

4 accuracy of the calculations described in paragraph

5 (1)(B).

6 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

7 State agency shall have in effect safeguards on the integ8 rity, accuracy, and completeness of, access to, and use of

9 data in the automated system required under this section,

10 which shall include the following (in addition to such other

11 safeguards as the Secretary specifies in regulations):

12 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

13 policies concerning access to data by State agency

14 personnel, and sharing of data with other persons,

15 which—

16 ‘‘(A) permit access to and use of data only

17 to the extent necessary to carry out program re18 sponsibilities;

19 ‘‘(B) specify the data which may be used

20 for particular program purposes, and the per21 sonnel permitted access to such data; and

22 ‘‘(C) ensure that data obtained or disclosed

23 for a limited program purpose is not used or

24 redisclosed for another, impermissible purpose.
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1 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

2 (such as passwords or blocking of fields) to ensure

3 strict adherence to the policies specified under para4 graph (1).

5 ‘‘(3) MONITORING OF ACCESS.—Routine mon6 itoring of access to and use of the automated sys7 tem, through methods such as audit trails and feed8 back mechanisms, to guard against and promptly

9 identify unauthorized access or use.

10 ‘‘(4) TRAINING AND INFORMATION.—The State

11 agency shall have in effect procedures to ensure that

12 all personnel (including State and local agency staff

13 and contractors) who may have access to or be re14 quired to use sensitive or confidential program data

15 are fully informed of applicable requirements and

16 penalties, and are adequately trained in security pro17 cedures.

18 ‘‘(5) PENALTIES.—The State agency shall have

19 in effect administrative penalties (up to and includ20 ing dismissal from employment) for unauthorized ac21 cess to, or disclosure or use of, confidential data.’’.

22 (3) REGULATIONS.—Section 452 (42 U.S.C.

23 652) is amended by adding at the end the following

24 new subsection:
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1 ‘‘(j) The Secretary shall prescribe final regulations

2 for implementation of the requirements of section 454A

3 not later than 2 years after the date of the enactment of

4 this subsection.’’.

5 (4) IMPLEMENTATION TIMETABLE.—Section

6 454(24) (42 U.S.C. 654(24)), as amended by sec7 tions 404(a)(2) and 414(b)(1), is amended to read

8 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, 1996, meeting all re13 quirements of this part which were enacted on

14 or before the date of the enactment of the Fam15 ily Support Act of 1988; and

16 ‘‘(B) by October 1, 1999, meeting all re17 quirements of this part enacted on or before the

18 date of the enactment of the Interstate Child

19 Support Responsibility Act of 1995 (but this

20 provision shall not be construed to alter earlier

21 deadlines specified for elements of such sys22 tem), except that such deadline shall be ex23 tended by 1 day for each day (if any) by which

24 the Secretary fails to meet the deadline imposed

25 by section 452(j);’’.
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1 (b) SPECIAL FEDERAL MATCHING RATE FOR DE2 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section

3 455(a) (42 U.S.C. 655(a)) is amended—

4 (1) in paragraph (1)(B)—

5 (A) by striking ‘‘90 percent’’ and inserting

6 ‘‘the percent specified in paragraph (3)’’;

7 (B) by striking ‘‘so much of’’; and

8 (C) by striking ‘‘which the Secretary’’ and

9 all that follows through ‘‘thereof’’; and

10 (2) by adding at the end the following new

11 paragraph:

12 ‘‘(3)(A) The Secretary shall pay to each State, for

13 each quarter in fiscal year 1996, 90 percent of so much

14 of State expenditures described in paragraph (1)(B) as the

15 Secretary finds are for a system meeting the requirements

16 specified in section 454(16), or meeting such requirements

17 without regard to subparagraph (D) thereof.

18 ‘‘(B)(i) The Secretary shall pay to each State, for

19 each quarter in fiscal years 1997 through 2001, the per20 centage specified in clause (ii) of so much of State expend21 itures described in paragraph (1)(B) as the Secretary

22 finds are for a system meeting the requirements specified

23 in section 454(16) and 454A.

24 ‘‘(ii) The percentage specified in this clause, for pur25 poses of clause (i), is the higher of—
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1 ‘‘(I) 80 percent, or

2 ‘‘(II) the percentage otherwise applicable to

3 Federal payments to the State under paragraph

4 (1)(A) (as adjusted pursuant to section 458).’’.

5 (c) CONFORMING AMENDMENT.—Section 123(c) of

6 the Family Support Act of 1988 (102 Stat. 2352; Public

7 Law 100–485) is repealed.

8 SEC. 416. DIRECTOR OF CHILD SUPPORT ENFORCEMENT

9 PROGRAM; STAFFING STUDY.

10 (a) REPORTING TO SECRETARY.—Section 452(a) (42

11 U.S.C. 652(a)) is amended in the matter preceding para12 graph (1) by striking ‘‘directly’’.

13 (b) STAFFING STUDIES.—

14 (1) SCOPE.—The Secretary of Health and

15 Human Services (in this subsection referred to as

16 the ‘‘Secretary’’) shall, directly or by contract, con17 duct studies of the staffing of each State child sup18 port enforcement program under part D of title IV

19 of the Social Security Act. Such studies shall—

20 (A) include a review of the staffing needs

21 created by requirements for automated data

22 processing, maintenance of a central case reg23 istry and centralized collections of child sup24 port, and of changes in these needs resulting

25 from changes in such requirements; and
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1 (B) examine and report on effective staff2 ing practices used by the States and on rec3 ommended staffing procedures.

4 (2) FREQUENCY OF STUDIES.—The Secretary

5 shall complete the first staffing study required under

6 paragraph (1) not later than October 1, 1998, and

7 may conduct additional studies subsequently at ap8 propriate intervals.

9 (3) REPORT TO THE CONGRESS.—The Sec10 retary shall submit a report to the Congress stating

11 the findings and conclusions of each study conducted

12 under this subsection.

13 SEC. 417. FUNDING FOR SECRETARIAL ASSISTANCE TO

14 STATE PROGRAMS.

15 Section 452 (42 U.S.C. 652), as amended by section

16 415(a)(3), is amended by adding at the end the following

17 new subsection:

18 ‘‘(k)(1) There shall be available to the Secretary,

19 from amounts appropriated for fiscal year 1996 and each

20 succeeding fiscal year for payments to States under this

21 part, the amount specified in paragraph (2) for the costs

22 to the Secretary for—

23 ‘‘(A) information dissemination and technical

24 assistance to States, training of State and Federal

25 staff, staffing studies, and related activities needed
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1 to improve programs (including technical assistance

2 concerning State automated systems);

3 ‘‘(B) research, demonstration, and special

4 projects of regional or national significance relating

5 to the operation of State programs under this part;

6 and

7 ‘‘(C) operation of the Federal Parent Locator

8 Service under section 453, to the extent such costs

9 are not recovered through user fees.

10 ‘‘(2) The amount specified in this paragraph for a

11 fiscal year is the amount equal to a percentage of the re12 duction in Federal payments to States under part A on

13 account of child support (including arrearages) collected

14 in the preceding fiscal year on behalf of children receiving

15 aid under such part A in such preceding fiscal year (as

16 determined on the basis of the most recent reliable data

17 available to the Secretary as of the end of the third cal18 endar quarter following the end of such preceding fiscal

19 year), equal to 2 percent, for the activities specified in sub20 paragraphs (A), (B), and (C) of paragraph (1).’’.

21 SEC. 418. DATA COLLECTION AND REPORTS BY THE SEC22 RETARY.

23 (a) ANNUAL REPORT TO CONGRESS.—

24 (1) IN GENERAL.—Section 452(a)(10)(A) (42

25 U.S.C. 652(a)(10)(A)) is amended—
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1 (A) by striking ‘‘this part;’’ and inserting

2 ‘‘this part, including—’’; and

3 (B) by adding at the end the following in4 dented clauses:

5 ‘‘(i) the total amount of child support

6 payments collected as a result of services

7 furnished during such fiscal year to indi8 viduals receiving services under this part;

9 ‘‘(ii) the cost to the States and to the

10 Federal Government of furnishing such

11 services to those individuals; and

12 ‘‘(iii) the number of cases involving

13 families—

14 ‘‘(I) who became ineligible for aid

15 under part A during a month in such

16 fiscal year; and

17 ‘‘(II) with respect to whom a

18 child support payment was received in

19 the same month;’’.

20 (2) CERTAIN DATA.—Section 452(a)(10)(C) (42

21 U.S.C. 652(a)(10)(C)) is amended—

22 (A) in the matter preceding clause (i), by

23 striking ‘‘with the data required under each

24 clause being separately stated for cases’’ and all

25 that follows through ‘‘part:’’ and inserting ‘‘sep-
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1 arately stated for cases where the child is re2 ceiving aid to families with dependent children

3 (or foster care maintenance payments under

4 part E), or formerly received such aid or pay5 ments and the State is continuing to collect

6 support assigned to it under section 402(a)(9),

7 471(a)(17), or 1912, and all other cases under

8 this part—’’;

9 (B) in each of clauses (i) and (ii), by strik10 ing ‘‘, and the total amount of such obliga11 tions’’;

12 (C) in clause (iii), by striking ‘‘described

13 in’’ and all that follows through the semicolon

14 and inserting ‘‘in which support was collected

15 during the fiscal year;’’;

16 (D) by striking clause (iv); and

17 (E) by redesignating clause (v) as clause

18 (vii), and inserting after clause (iii) the follow19 ing new clauses:

20 ‘‘(iv) the total amount of support col21 lected during such fiscal year and distrib22 uted as current support;

23 ‘‘(v) the total amount of support col24 lected during such fiscal year and distrib25 uted as arrearages;
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1 ‘‘(vi) the total amount of support due

2 and unpaid for all fiscal years; and’’.

3 (3) USE OF FEDERAL COURTS.—Section

4 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amend5 ed by striking ‘‘on the use of Federal courts and’’.

6 (4) ADDITIONAL INFORMATION NOT NEC7 ESSARY.—Section 452(a)(10) (42 U.S.C.

8 652(a)(10)) is amended by striking all that follows

9 subparagraph (I).

10 (b) DATA COLLECTION AND REPORTING.—Section

11 469 (42 U.S.C. 669) is amended—

12 (1) by striking subsections (a) and (b) and in13 serting the following:

14 ‘‘(a) The Secretary shall collect and maintain, on a

15 fiscal year basis, up-to-date statistics, by State, with re16 spect to services to establish paternity and services to es17 tablish child support obligations, the data specified in sub18 section (b), separately stated, in the case of each such

19 service, with respect to—

20 ‘‘(1) families (or dependent children) receiving

21 aid under plans approved under part A (or E); and

22 ‘‘(2) families not receiving such aid.

23 ‘‘(b) The data referred to in subsection (a) are—
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1 ‘‘(1) the number of cases in the caseload of the

2 State agency administering the plan under this part

3 in which such service is needed; and

4 ‘‘(2) the number of such cases in which the

5 service has been provided.’’; and

6 (2) in subsection (c), by striking ‘‘(a)(2)’’ and

7 inserting ‘‘(b)(2)’’.

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

9 this section shall be effective with respect to fiscal year

10 1996 and succeeding fiscal years.

11 PART III—LOCATE AND CASE TRACKING

12 SEC. 421. CENTRAL STATE AND CASE REGISTRY.

13 Section 454A, as added by section 415(a)(2), is

14 amended by adding at the end the following new sub15 sections:

16 ‘‘(e) CENTRAL CASE REGISTRY.—

17 ‘‘(1) IN GENERAL.—The automated system re18 quired under this section shall perform the func19 tions, in accordance with the provisions of this sub20 section, of a single central registry containing

21 records with respect to each case in which services

22 are being provided by the State agency (including,

23 on and after October 1, 1998, each order specified

24 in section 466(a)(12)), using such standardized data

25 elements (such as names, social security numbers or
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•S 840 IS

1 other uniform identification numbers, dates of birth,

2 and case identification numbers), and containing

3 such other information (such as information on case

4 status) as the Secretary may require.

5 ‘‘(2) PAYMENT RECORDS.—Each case record in

6 the central registry shall include a record of—

7 ‘‘(A) the amount of monthly (or other peri8 odic) support owed under the support order,

9 and other amounts due or overdue (including

10 arrearages, interest or late payment penalties,

11 and fees);

12 ‘‘(B) all child support and related amounts

13 collected (including such amounts as fees, late

14 payment penalties, and interest on arrearages);

15 ‘‘(C) the distribution of such amounts col16 lected; and

17 ‘‘(D) the birth date of the child for whom

18 the child support order is entered.

19 ‘‘(3) UPDATING AND MONITORING.—The State

20 agency shall promptly establish and maintain, and

21 regularly monitor, case records in the registry re22 quired by this subsection, on the basis of—

23 ‘‘(A) information on administrative actions

24 and administrative and judicial proceedings and

25 orders relating to paternity and support;
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1 ‘‘(B) information obtained from matches

2 with Federal, State, or local data sources;

3 ‘‘(C) information on support collections

4 and distributions; and

5 ‘‘(D) any other relevant information.

6 ‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF

7 INFORMATION.—The automated system required under

8 this section shall have the capacity, and be used by the

9 State agency, to extract data at such times, and in such

10 standardized format or formats, as may be required by

11 the Secretary, and to share and match data with, and re12 ceive data from, other data bases and data matching serv13 ices, in order to obtain (or provide) information necessary

14 to enable the State agency (or Secretary or other State

15 or Federal agencies) to carry out responsibilities under

16 this part. Data matching activities of the State agency

17 shall include at least the following:

18 ‘‘(1) DATA BANK OF CHILD SUPPORT OR19 DERS.—Furnishing to the Data Bank of Child Sup20 port Orders established under section 453(h) (and

21 updating as necessary, with information, including

22 notice of expiration of orders) minimal information

23 specified by the Secretary on each child support case

24 in the central case registry.
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1 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

2 Exchanging data with the Federal Parent Locator

3 Service for the purposes specified in section 453.

4 ‘‘(3) TITLE IV–A AND MEDICAID AGENCIES.—

5 Exchanging data with State agencies (of the State

6 and of other States) administering the programs

7 under part A and title XIX, as necessary for the

8 performance of State agency responsibilities under

9 this part and under such programs.

10 ‘‘(4) INTRA- AND INTERSTATE DATA

11 MATCHES.—Exchanging data with other agencies of

12 the State, agencies of other States, and interstate

13 information networks, as necessary and appropriate

14 to carry out (or assist other States to carry out) the

15 purposes of this part.’’.

16 SEC. 422. CENTRALIZED COLLECTION AND DISBURSEMENT

17 OF SUPPORT PAYMENTS.

18 (a) STATE PLAN REQUIREMENT.—Section 454 (42

19 U.S.C. 654), as amended by sections 404(a), 405, and

20 414(b), is amended—

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

22 (26);

23 (2) by striking the period at the end of para24 graph (27) and inserting ‘‘; and’’; and
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1 (3) by adding after paragraph (27) the follow2 ing new paragraph:

3 ‘‘(28) provide that the State agency, on and

4 after October 1, 1998—

5 ‘‘(A) will operate a centralized, automated

6 unit for the collection and disbursement of child

7 support under orders being enforced under this

8 part, in accordance with section 454B; and

9 ‘‘(B) will have sufficient State staff (con10 sisting of State employees), and, at State op11 tion, contractors reporting directly to the State

12 agency to monitor and enforce support collec13 tions through such centralized unit, including

14 carrying out the automated data processing re15 sponsibilities specified in section 454A(g) and

16 to impose, as appropriate in particular cases,

17 the administrative enforcement remedies speci18 fied in section 466(c)(1).’’.

19 (b) ESTABLISHMENT OF CENTRALIZED COLLECTION

20 UNIT.—Part D of title IV (42 U.S.C. 651–669) is amend21 ed by adding after section 454A the following new section:

22 ‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF

23 SUPPORT PAYMENTS

24 ‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the

25 requirement of section 454(28), the State agency must op26 erate a single, centralized, automated unit for the collec-
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1 tion and disbursement of support payments, coordinated

2 with the automated data system required under section

3 454A, in accordance with the provisions of this section,

4 which shall be—

5 ‘‘(1) operated directly by the State agency (or

6 by 2 or more State agencies under a regional cooper7 ative agreement), or by a single contractor respon8 sible directly to the State agency; and

9 ‘‘(2) used for the collection and disbursement

10 (including interstate collection and disbursement) of

11 payments under support orders in all cases being en12 forced by the State pursuant to section 454(4).

13 ‘‘(b) REQUIRED PROCEDURES.—The centralized col14 lections unit shall use automated procedures, electronic

15 processes, and computer-driven technology to the maxi16 mum extent feasible, efficient, and economical, for the col17 lection and disbursement of support payments, including

18 procedures—

19 ‘‘(1) for receipt of payments from parents, em20 ployers, and other States, and for disbursements to

21 custodial parents and other obligees, the State agen22 cy, and the State agencies of other States;

23 ‘‘(2) for accurate identification of payments;

24 ‘‘(3) to ensure prompt disbursement of the cus25 todial parent’s share of any payment; and
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1 ‘‘(4) to furnish to either parent, upon request,

2 timely information on the current status of support

3 payments.’’.

4 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

5 added by section 415(a)(2) and as amended by section

6 421, is amended by adding at the end the following new

7 subsection:

8 ‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION

9 OF SUPPORT PAYMENTS.—The automated system re10 quired under this section shall be used, to the maximum

11 extent feasible, to assist and facilitate collections and dis12 bursement of support payments through the centralized

13 collections unit operated pursuant to section 454B,

14 through the performance of functions including at a mini15 mum—

16 ‘‘(1) generation of orders and notices to em17 ployers (and other debtors) for the withholding of

18 wages (and other income)—

19 ‘‘(A) within 2 working days after receipt

20 (from the directory of New Hires established

21 under section 453(i) or any other source) of no22 tice of and the income source subject to such

23 withholding; and

24 ‘‘(B) using uniform formats directed by

25 the Secretary;
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1 ‘‘(2) ongoing monitoring to promptly identify

2 failures to make timely payment; and

3 ‘‘(3) automatic use of enforcement mechanisms

4 (including mechanisms authorized pursuant to sec5 tion 466(c)) where payments are not timely made.’’.

6 (d) EFFECTIVE DATE.—The amendments made by

7 this section shall become effective on October 1, 1998.

8 SEC. 423. STATE DIRECTORY OF NEW HIRES.

9 (a) STATE PLAN REQUIREMENT.—Section 454 (42

10 U.S.C. 654), as amended by sections 404(a), 405, 414(b),

11 and 422(a)(2) of this Act, is amended—

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

13 (27);

14 (2) by striking the period at the end of para15 graph (28) and inserting ‘‘; and’’; and

16 (3) by adding after paragraph (28) the follow17 ing:

18 ‘‘(28) provide that, on and after October 1,

19 1998, the State will operate a State Directory of

20 New Hires in accordance with section 453A.’’.

21 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

22 title IV (42 U.S.C. 651–669) is amended by inserting

23 after section 453 the following:

24 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

25 ‘‘(a) ESTABLISHMENT.—
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1 ‘‘(1) IN GENERAL.—Not later than October 1,

2 1998, each State shall establish an automated direc3 tory (to be known as the ‘State Directory of New

4 Hires’) which shall contain information supplied in

5 accordance with subsection (b) by employers and

6 labor organizations on each newly hired employee.

7 ‘‘(2) DEFINITIONS.—As used in this section:

8 ‘‘(A) EMPLOYEE.—The term ‘employee’—

9 ‘‘(i) means an individual who is an

10 employee within the meaning of chapter 24

11 of the Internal Revenue Code of 1986; and

12 ‘‘(ii) does not include an employee of

13 a Federal or State agency performing in14 telligence or counterintelligence functions,

15 if the head of such agency has determined

16 that reporting pursuant to paragraph (1)

17 with respect to the employee could endan18 ger the safety of the employee or com19 promise an ongoing investigation or intel20 ligence mission.

21 ‘‘(B) GOVERNMENTAL EMPLOYERS.—The

22 term ‘employer’ includes any governmental en23 tity.

24 ‘‘(C) LABOR ORGANIZATION.—The term

25 ‘labor organization’ shall have the meaning
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•S 840 IS

1 given such term in section 2(5) of the National

2 Labor Relations Act, and includes any entity

3 (also known as a ‘hiring hall’) which is used by

4 the organization and an employer to carry out

5 requirements described in section 8(f)(3) of

6 such Act of an agreement between the organiza7 tion and the employer.

8 ‘‘(b) EMPLOYER INFORMATION.—

9 ‘‘(1) REPORTING REQUIREMENT.—

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

11 subparagraph (B), each employer (or labor or12 ganization) shall furnish to the Directory of

13 New Hires of the State in which a newly hired

14 employee works a report that contains the

15 name, address, and social security number of

16 the employee, and the name of, and identifying

17 number assigned under section 6109 of the In18 ternal Revenue Code of 1986 to, the employer.

19 ‘‘(B) MULTISTATE EMPLOYERS.—An em20 ployer who has employees who are employed in

21 2 or more States may comply with subpara22 graph (A) by transmitting the report described

23 in subparagraph (A) magnetically or electroni24 cally to the State in which the greatest number

25 of employees of the employer are employed.
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1 ‘‘(2) TIMING OF REPORT.—The report required

2 by paragraph (1) with respect to an employee shall

3 be made not later than the later of—

4 ‘‘(A) 15 days after the date the employer

5 hires the employee;

6 ‘‘(B) the date the employee first receives

7 wages or other compensation from the em8 ployer; or

9 ‘‘(C) in the case of a payroll processing

10 service or an employer that processes more than

11 one payroll and reports by electronic or mag12 netic means, the first business day of the week

13 following the date on which the employee first

14 receives wages or other compensation from the

15 employer.

16 ‘‘(c) REPORTING FORMAT AND METHOD.—Each

17 report required by subsection (b) shall be made on a

18 W–4 form or the equivalent, and may be transmitted by

19 first class mail, magnetically, or electronically.

20 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

21 EMPLOYERS.—

22 ‘‘(1) IN GENERAL.—An employer that fails to

23 comply with subsection (b) with respect to an em24 ployee shall be subject to a civil money penalty of—

25 ‘‘(A) $25; or
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•S 840 IS

1 ‘‘(B) $500 if, under State law, the failure

2 is the result of a conspiracy between the em3 ployer and the employee to not supply the re4 quired report or to supply a false or incomplete

5 report.

6 ‘‘(2) APPLICABILITY OF SECTION 1128.—Section

7 1128 (other than subsections (a) and (b) of such

8 section) shall apply to a civil money penalty under

9 paragraph (1) of this subsection in the same manner

10 as such section applies to a civil money penalty or

11 proceeding under section 1128A(a).

12 ‘‘(e) INFORMATION COMPARISONS.—

13 ‘‘(1) IN GENERAL.—Not later than October 1,

14 1998, an agency designated by the State shall, di15 rectly or by contract, conduct automated compari16 sons of the social security numbers reported by em17 ployers pursuant to subsection (b) and the social se18 curity numbers appearing in the records of the State

19 case registry for cases being enforced under the

20 State plan.

21 ‘‘(2) NOTICE OF MATCH.—When an information

22 comparison conducted under paragraph (1) reveals a

23 match with respect to the social security number of

24 an individual required to provide support under a

25 support order, the State Directory of New Hires
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1 shall provide the agency administering the State

2 plan approved under this part of the appropriate

3 State with the name, address, and social security

4 number of the employee to whom the social security

5 number is assigned, and the name of, and identify6 ing number assigned under section 6109 of the In7 ternal Revenue Code of 1986 to, the employer.

8 ‘‘(f) TRANSMISSION OF INFORMATION.—

9 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

10 NOTICES TO EMPLOYERS.—Within 2 business days

11 after the date information regarding a newly hired

12 employee is entered into the State Directory of New

13 Hires, the State agency enforcing the employee’s

14 child support obligation shall transmit a notice to

15 the employer of the employee directing the employer

16 to withhold from the wages of the employee an

17 amount equal to the monthly (or other periodic)

18 child support obligation of the employee, unless the

19 employee’s wages are not subject to withholding pur20 suant to section 466(b)(3).

21 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC22 TORY OF NEW HIRES.—

23 ‘‘(A) NEW HIRE INFORMATION.—Within 4

24 business days after the State Directory of New

25 Hires receives information from employers pur-
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1 suant to this section, the State Directory of

2 New Hires shall furnish the information to the

3 National Directory of New Hires.

4 ‘‘(B) WAGE AND UNEMPLOYMENT COM5 PENSATION INFORMATION.—The State Direc6 tory of New Hires shall, on a quarterly basis,

7 furnish to the National Directory of New Hires

8 extracts of the reports required under section

9 303(a)(6) to be made to the Secretary of Labor

10 concerning the wages and unemployment com11 pensation paid to individuals, by such dates, in

12 such format, and containing such information

13 as the Secretary of Health and Human Services

14 shall specify in regulations.

15 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

16 subsection, the term ‘business day’ means a day on

17 which State offices are open for regular business.

18 ‘‘(g) OTHER USES OF NEW HIRE INFORMATION.—

19 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI20 GORS.—The agency administering the State plan ap21 proved under this part shall use information received

22 pursuant to subsection (e)(2) to locate individuals

23 for purposes of establishing paternity and establish24 ing, modifying, and enforcing child support obliga25 tions.
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1 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER2 TAIN PROGRAMS.—A State agency responsible for

3 administering a program specified in section 1137(b)

4 shall have access to information reported by employ5 ers pursuant to subsection (b) of this section for

6 purposes of verifying eligibility for the program.

7 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU8 RITY AND WORKERS COMPENSATION.—State agen9 cies operating employment security and workers’

10 compensation programs shall have access to informa11 tion reported by employers pursuant to subsection

12 (b) for the purposes of administering such pro13 grams.’’.

14 SEC. 424. AMENDMENTS CONCERNING INCOME WITHHOLD15 ING.

16 (a) MANDATORY INCOME WITHHOLDING.—

17 (1) FROM WAGES.—Section 466(a)(1) (42

18 U.S.C. 666(a)(1)) is amended to read as follows:

19 ‘‘(1)(A) Procedures described in subsection (b)

20 for the withholding from income of amounts payable

21 as support in cases subject to enforcement under the

22 State plan.

23 ‘‘(B) Procedures under which all child support

24 orders issued (or modified) before October 1, 1996,

25 and which are not otherwise subject to withholding
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•S 840 IS

1 under subsection (b), shall become subject to with2 holding from wages as provided in subsection (b) if

3 arrearages occur, without the need for a judicial or

4 administrative hearing.’’.

5 (2) REPEAL OF CERTAIN PROVISIONS CONCERN6 ING ARREARAGES.—Section 466(a)(8) (42 U.S.C.

7 666(a)(8)) is repealed.

8 (3) PROCEDURES DESCRIBED.—Section 466(b)

9 (42 U.S.C. 666(b)) is amended—

10 (A) in the matter preceding paragraph (1),

11 by striking ‘‘subsection (a)(1)’’ and inserting

12 ‘‘subsection (a)(1)(A)’’;

13 (B) in paragraph (5), by striking ‘‘a public

14 agency’’ and all that follows through the period

15 and inserting ‘‘the State through the central16 ized collections unit established pursuant to sec17 tion 454B, in accordance with the requirements

18 of such section 454B.’’;

19 (C) in paragraph (6)(A)(i)—

20 (i) by inserting ‘‘, in accordance with

21 timetables established by the Secretary,’’

22 after ‘‘must be required’’; and

23 (ii) by striking ‘‘to the appropriate

24 agency’’ and all that follows through the

25 period and inserting ‘‘to the State central-
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1 ized collections unit within 5 working days

2 after the date such amount would (but for

3 this subsection) have been paid or credited

4 to the employee, for distribution in accord5 ance with this part.’’;

6 (D) in paragraph (6)(A)(ii), by inserting

7 ‘‘be in a standard format prescribed by the Sec8 retary, and’’ after ‘‘shall’’; and

9 (E) in paragraph (6)(D) to read as follows:

10 ‘‘(D) Provision must be made for the imposition

11 of a fine against any employer who—

12 ‘‘(i) discharges from employment, refuses

13 to employ, or takes disciplinary action against

14 any absent parent subject to wage withholding

15 required by this subsection because of the exist16 ence of such withholding and the obligations or

17 additional obligations which it imposes upon the

18 employer; or

19 ‘‘(ii) fails to withhold support from wages,

20 or to pay such amounts to the State centralized

21 collections unit in accordance with this sub22 section.’’.

23 (b) CONFORMING AMENDMENT.—Section 466(c) (42

24 U.S.C. 666(c)) is repealed.
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1 (c) DEFINITION OF TERMS.—The Secretary of

2 Health and Human Services shall promulgate regulations

3 providing definitions, for purposes of part D of title IV

4 of the Social Security Act, for the term ‘‘income’’ and for

5 such other terms relating to income withholding under sec6 tion 466(b) of such Act as the Secretary may find it nec7 essary or advisable to define.

8 SEC. 425. LOCATOR INFORMATION FROM INTERSTATE NET9 WORKS.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by

11 section 424(a)(2), is amended by inserting after para12 graph (7) the following new paragraph:

13 ‘‘(8) Procedures ensuring that the State will

14 neither provide funding for, nor use for any purpose

15 (including any purpose unrelated to the purposes of

16 this part), any automated interstate network or sys17 tem used to locate individuals—

18 ‘‘(A) for purposes relating to the use of

19 motor vehicles; or

20 ‘‘(B) providing information for law en21 forcement purposes (where child support en22 forcement agencies are otherwise allowed access

23 by State and Federal law),

24 unless all Federal and State agencies administering

25 programs under this part (including the entities es-
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1 tablished under section 453) have access to informa2 tion in such system or network to the same extent

3 as any other user of such system or network.’’.

4 SEC. 426. EXPANSION OF THE FEDERAL PARENT LOCATOR

5 SERVICE.

6 (a) EXPANDED AUTHORITY TO LOCATE INDIVID7 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

8 amended—

9 (1) in subsection (a), by striking all that follows

10 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

11 establishing parentage, establishing, setting the

12 amount of, modifying, or enforcing child support ob13 ligations—

14 ‘‘(1) information on, or facilitating the discov15 ery of, the location of any individual—

16 ‘‘(A) who is under an obligation to pay

17 child support;

18 ‘‘(B) against whom such an obligation is

19 sought; or

20 ‘‘(C) to whom such an obligation is owed,

21 including the individual’s social security number (or

22 numbers), most recent address, and the name, ad23 dress, and employer identification number of the in24 dividual’s employer;
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1 ‘‘(2) information on the individual’s wages (or

2 other income) from, and benefits of, employment (in3 cluding rights to or enrollment in group health care

4 coverage); and

5 ‘‘(3) information on the type, status, location,

6 and amount of any assets of, or debts owed by or

7 to, any such individual.’’;

8 (2) in subsection (b)—

9 (A) in the matter preceding paragraph (1),

10 by striking ‘‘social security’’ and all that follows

11 through ‘‘absent parent’’ and inserting ‘‘infor12 mation described in subsection (a)’’; and

13 (B) in paragraph (2), by inserting before

14 the period ‘‘, or from any consumer reporting

15 agency (as defined in section 603(f) of the Fair

16 Credit Reporting Act (15 U.S.C. 1681a(f))’’;

17 and

18 (3) in subsection (e)(1), by inserting before the

19 period ‘‘, or by consumer reporting agencies’’.

20 (b) REIMBURSEMENT FOR INFORMATION FROM FED21 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

22 653(e)(2)) is amended in the 4th sentence by inserting

23 before the period ‘‘in an amount which the Secretary de24 termines to be reasonable payment for the information ex25 change (which amount shall not include payment for the
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1 costs of obtaining, compiling, or maintaining the informa2 tion)’’.

3 (c) REIMBURSEMENT FOR REPORTS BY STATE

4 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

5 adding at the end the following:

6 ‘‘(g) The Secretary may reimburse Federal and State

7 agencies for the costs incurred by such entities in furnish8 ing information requested by the Secretary under this sec9 tion in an amount which the Secretary determines to be

10 reasonable payment for the information exchange (which

11 amount shall not include payment for the costs of obtain12 ing, compiling, or maintaining the information).’’.

13 (d) TECHNICAL AMENDMENTS.—

14 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

15 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

16 653(b), 663(a), 663(e), and 663(f)) are each amend17 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

18 place such term appears.

19 (2) Section 453 (42 U.S.C. 653) is amended in

20 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR21 ENT’’.

22 (e) NEW COMPONENTS.—Section 453 (42 U.S.C.

23 653), as amended by subsection (c) of this section, is

24 amended by adding at the end the following:
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1 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

2 ORDERS.—

3 ‘‘(1) IN GENERAL.—Not later than October 1,

4 1999, in order to assist States in administering pro5 grams under State plans approved under this part

6 and programs funded under part A, and for the

7 other purposes specified in this section, the Sec8 retary shall establish and maintain in the Federal

9 Parent Locator Service an automated registry

10 (which shall be known as the ‘Federal Case Registry

11 of Child Support Orders’), which shall contain ab12 stracts of support orders and other information de13 scribed in paragraph (2) with respect to each case

14 in each State case registry maintained pursuant to

15 section 454A(e), as furnished (and regularly up16 dated), pursuant to section 454A(f), by State agen17 cies administering programs under this part.

18 ‘‘(2) CASE INFORMATION.—The information re19 ferred to in paragraph (1) with respect to a case

20 shall be such information as the Secretary may

21 specify in regulations (including the names, social

22 security numbers or other uniform identification

23 numbers, and State case identification numbers) to

24 identify the individuals who owe or are owed support

25 (or with respect to or on behalf of whom support ob-
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1 ligations are sought to be established), and the State

2 or States which have the case.

3 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

4 ‘‘(1) IN GENERAL.—In order to assist States in

5 administering programs under State plans approved

6 under this part and programs funded under part A,

7 and for the other purposes specified in this section,

8 the Secretary shall, not later than October 1, 1999,

9 establish and maintain in the Federal Parent Loca10 tor Service an automated directory to be known as

11 the National Directory of New Hires, which shall

12 contain the information supplied pursuant to section

13 453A(f)(2).

14 ‘‘(2) ADMINISTRATION OF FEDERAL TAX

15 LAWS.—The Secretary of the Treasury shall have

16 access to the information in the Federal Directory of

17 New Hires for purposes of administering section 32

18 of the Internal Revenue Code of 1986, or the ad19 vance payment of the earned income tax credit

20 under section 3507 of such Code, and verifying a

21 claim with respect to employment in a tax return.

22 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS23 CLOSURES.—

24 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD25 MINISTRATION.—
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1 ‘‘(A) The Secretary shall transmit informa2 tion on individuals and employers maintained

3 under this section to the Social Security Admin4 istration to the extent necessary for verification

5 in accordance with subparagraph (B).

6 ‘‘(B) The Social Security Administration

7 shall verify the accuracy of, correct, or supply

8 to the extent possible, and report to the Sec9 retary, the following information supplied by

10 the Secretary pursuant to subparagraph (A):

11 ‘‘(i) The name, social security num12 ber, and birth date of each such individual.

13 ‘‘(ii) The employer identification num14 ber of each such employer.

15 ‘‘(2) INFORMATION COMPARISONS.—For the

16 purpose of locating individuals in a paternity estab17 lishment case or a case involving the establishment,

18 modification, or enforcement of a support order, the

19 Secretary shall—

20 ‘‘(A) compare information in the National

21 Directory of New Hires against information in

22 the Federal Case Registry of Child Support Or23 ders not less often than every 2 business days;

24 and
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1 ‘‘(B) within 2 such days after such a com2 parison reveals a match with respect to an indi3 vidual, report the information to the State

4 agency responsible for the case.

5 ‘‘(3) INFORMATION COMPARISONS AND DISCLO6 SURES OF INFORMATION IN ALL REGISTRIES FOR

7 TITLE IV PROGRAM PURPOSES.—To the extent and

8 with the frequency that the Secretary determines to

9 be effective in assisting States to carry out their re10 sponsibilities under programs operated under this

11 part and programs funded under part A, the Sec12 retary shall—

13 ‘‘(A) compare the information in each com14 ponent of the Federal Parent Locator Service

15 maintained under this section against the infor16 mation in each other such component (other

17 than the comparison required by paragraph

18 (2)), and report instances in which such a com19 parison reveals a match with respect to an indi20 vidual to State agencies operating such pro21 grams; and

22 ‘‘(B) disclose information in such registries

23 to such State agencies.

24 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

25 TO THE SOCIAL SECURITY ADMINISTRATION.—The
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1 National Directory of New Hires shall provide the

2 Commissioner of Social Security with all information

3 in the National Directory, which shall be used to de4 termine the accuracy of payments under the supple5 mental security income program under title XVI and

6 in connection with benefits under title II.

7 ‘‘(5) RESEARCH.—The Secretary may provide

8 access to information reported by employers pursu9 ant to section 453A(b) for research purposes found

10 by the Secretary to be likely to contribute to achiev11 ing the purposes of part A or this part, but without

12 personal identifiers.

13 ‘‘(k) FEES.—

14 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

15 shall reimburse the Commissioner of Social Security,

16 at a rate negotiated between the Secretary and the

17 Commissioner, for the costs incurred by the Com18 missioner in performing the verification services de19 scribed in subsection (j).

20 ‘‘(2) FOR INFORMATION FROM STATE DIREC21 TORIES OF NEW HIRES.—The Secretary shall reim22 burse costs incurred by State directories of new

23 hires in furnishing information as required by sub24 section (j)(3), at rates which the Secretary deter25 mines to be reasonable (which rates shall not include
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1 payment for the costs of obtaining, compiling, or

2 maintaining such information).

3 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

4 AND FEDERAL AGENCIES.—A State or Federal agen5 cy that receives information from the Secretary pur6 suant to this section shall reimburse the Secretary

7 for costs incurred by the Secretary in furnishing the

8 information, at rates which the Secretary determines

9 to be reasonable (which rates shall include payment

10 for the costs of obtaining, verifying, maintaining,

11 and comparing the information).

12 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In13 formation in the Federal Parent Locator Service, and in14 formation resulting from comparisons using such informa15 tion, shall not be used or disclosed except as expressly pro16 vided in this section, subject to section 6103 of the Inter17 nal Revenue Code of 1986.

18 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

19 The Secretary shall establish and implement safeguards

20 with respect to the entities established under this section

21 designed to—

22 ‘‘(1) ensure the accuracy and completeness of

23 information in the Federal Parent Locator Service;

24 and
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1 ‘‘(2) restrict access to confidential information

2 in the Federal Parent Locator Service to authorized

3 persons, and restrict use of such information to au4 thorized purposes.’’.

5 (f) QUARTERLY WAGE REPORTING.—Section

6 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

7 (1) by inserting ‘‘(including any governmental

8 entity)’’ after ‘‘employers’’,

9 (2) by striking ‘‘except that’’ and inserting ‘‘ex10 cept that—’’,

11 (3) by inserting ‘‘(A)’’ before ‘‘the Secretary of

12 Labor’’,

13 (4) by striking ‘‘paragraph (2)’’ and inserting

14 ‘‘paragraph (2), and’’,

15 (5) by indenting the text so as to align it with

16 new subparagraph (B) (as added by paragraph (6)

17 of this subsection); and

18 (6) by adding at the end the following new sub19 paragraph:

20 ‘‘(B) no report shall be filed with respect

21 to an employee of a Federal or State agency

22 performing intelligence or counterintelligence

23 functions, if the head of such agency has deter24 mined that filing a report with respect to the

25 employee could endanger the safety of the em-
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1 ployee or compromise an ongoing investigation

2 or intelligence mission;’’.

3 (g) CONFORMING AMENDMENTS.—

4 (1) TO PART D OF TITLE IV OF THE SOCIAL SE5 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

6 654(8)(B)) is amended to read as follows:

7 ‘‘(B) the Federal Parent Locator Service

8 established under section 453;’’.

9 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

10 Section 3304(a)(16) of the Internal Revenue Code of

11 1986 is amended—

12 (A) by striking ‘‘Secretary of Health, Edu13 cation, and Welfare’’ each place such term ap14 pears and inserting ‘‘Secretary of Health and

15 Human Services’’;

16 (B) in subparagraph (B), by striking

17 ‘‘such information’’ and all that follows and in18 serting ‘‘information furnished under subpara19 graph (A) or (B) is used only for the purposes

20 authorized under such subparagraph;’’;

21 (C) by striking ‘‘and’’ at the end of sub22 paragraph (A);

23 (D) by redesignating subparagraph (B) as

24 subparagraph (C); and
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1 (E) by inserting after subparagraph (A)

2 the following new subparagraph:

3 ‘‘(B) wage and unemployment compensa4 tion information contained in the records of

5 such agency shall be furnished to the Secretary

6 of Health and Human Services (in accordance

7 with regulations promulgated by such Sec8 retary) as necessary for the purposes of the Na9 tional Directory of New Hires established under

10 section 453(i) of the Social Security Act, and’’.

11 (3) TO STATE GRANT PROGRAM UNDER TITLE

12 III OF THE SOCIAL SECURITY ACT.—Section 303(a)

13 (42 U.S.C. 503(a)) is amended—

14 (A) by striking ‘‘and’’ at the end of para15 graph (8);

16 (B) by striking ‘‘and’’ at the end of para17 graph (9);

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

19 paragraph (10) and inserting ‘‘; and’’; and

20 (D) by adding after paragraph (10) the

21 following:

22 ‘‘(11) The making of quarterly electronic re23 ports, at such dates, in such format, and containing

24 such information, as required by the Secretary of

25 Health and Human Services under section 453(i)(3),
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1 and compliance with such provisions as such Sec2 retary may find necessary to ensure the correctness

3 and verification of such reports.’’.

4 SEC. 427. USE OF SOCIAL SECURITY NUMBERS.

5 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

6 U.S.C. 666(a)), as amended by section 401(a), is amended

7 by adding at the end the following new paragraph:

8 ‘‘(13) Procedures requiring the recording of so9 cial security numbers—

10 ‘‘(A) of both parties on marriage licenses

11 and divorce decrees;

12 ‘‘(B) of both parents, on birth records and

13 child support and paternity orders and acknowl14 edgements;

15 ‘‘(C) on all applications for motor vehicle

16 licenses and professional licenses; and

17 ‘‘(D) of decedents on death certificates.’’.

18 (b) CONFORMING AMENDMENTS.—Section

19 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)) is amended—

20 (1) in clause (i), by striking ‘‘may require’’ and

21 inserting ‘‘shall require’’;

22 (2) in clause (ii)—

23 (A) by inserting after the first sentence the

24 following: ‘‘In the administration of any law in25 volving the issuance of a marriage certificate or
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1 license, each State shall require each party

2 named in the certificate or license to furnish to

3 the State (or political subdivision thereof) or

4 any State agency having administrative respon5 sibility for the law involved, the social security

6 number of the party.’’; and

7 (B) by striking ‘‘Such numbers shall not

8 be recorded on the birth certificate.’’ and insert9 ing ‘‘This clause shall not be considered to au10 thorize disclosure of such numbers except as

11 provided in the preceding sentence.’’;

12 (3) in clause (vi), by striking ‘‘may’’ and insert13 ing ‘‘shall’’; and

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

15 ‘‘(x) An agency of a State (or a politi16 cal subdivision thereof) charged with the

17 administration of any law concerning the

18 issuance or renewal of a license, certificate,

19 permit, or other authorization to engage in

20 a profession, an occupation, or a commer21 cial activity shall require all applicants for

22 issuance or renewal of the license, certifi23 cate, permit, or other authorization to pro24 vide the applicant’s social security number

25 to the agency for the purpose of admin-
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1 istering such laws, and for the purpose of

2 responding to requests for information

3 from an agency operating pursuant to part

4 D of title IV.

5 ‘‘(xi) All divorce decrees, support or6 ders, and paternity determinations issued,

7 and all paternity acknowledgments made,

8 in each State shall include the social secu9 rity number of each party to the decree,

10 order, determination, or acknowledgement

11 in the records relating to the matter.’’.

12 PART IV—STREAMLINING AND UNIFORMITY OF

13 PROCEDURES

14 SEC. 431. ADOPTION OF UNIFORM STATE LAWS.

15 Section 466(a) (42 U.S.C. 666(a)), as amended by

16 sections 401(a) and 427(a), is amended by adding at the

17 end the following new paragraph:

18 ‘‘(14)(A) Procedures under which the State

19 adopts in its entirety (with the modifications and ad20 ditions specified in this paragraph) not later than

21 January 1, 1997, and uses on and after such date,

22 the Uniform Interstate Family Support Act, as ap23 proved by the National Conference of Commissioners

24 on Uniform State Laws in August 1992.
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1 ‘‘(B) The State law adopted pursuant to sub2 paragraph (A) shall be applied to any case—

3 ‘‘(i) involving an order established or modi4 fied in one State and for which a subsequent

5 modification is sought in another State; or

6 ‘‘(ii) in which interstate activity is required

7 to enforce an order.

8 ‘‘(C) The State law adopted pursuant to sub9 paragraph (A) of this paragraph shall contain the

10 following provision in lieu of section 611(a)(1) of the

11 Uniform Interstate Family Support Act described in

12 such subparagraph (A):

13 ‘‘ ‘(1) the following requirements are met:

14 ‘‘ ‘(i) the child, the individual obligee, and

15 the obligor—

16 ‘‘ ‘(I) do not reside in the issuing

17 State; and

18 ‘‘ ‘(II) either reside in this State or

19 are subject to the jurisdiction of this State

20 pursuant to section 201; and

21 ‘‘ ‘(ii) in any case where another State is

22 exercising or seeks to exercise jurisdiction to

23 modify the order, the conditions of section 204

24 are met to the same extent as required for pro25 ceedings to establish orders; or’.
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1 ‘‘(D) The State law adopted pursuant to sub2 paragraph (A) shall recognize as valid, for purposes

3 of any proceeding subject to such State law, service

4 of process upon persons in the State (and proof of

5 such service) by any means acceptable in another

6 State which is the initiating or responding State in

7 such proceeding.’’.

8 SEC. 432. IMPROVEMENTS TO FULL FAITH AND CREDIT

9 FOR CHILD SUPPORT ORDERS.

10 Section 1738B of title 28, United States Code, is

11 amended—

12 (1) in subsection (a)(2), by striking ‘‘subsection

13 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

14 (2) in subsection (b), by inserting after the first

15 undesignated paragraph the following:

16 ‘‘ ‘child’s home State’ means the State in which

17 a child lived with a parent or a person acting as par18 ent for at least 6 consecutive months immediately

19 preceding the time of filing of a petition or com20 parable pleading for support and, if a child is less

21 than 6 months old, the State in which the child lived

22 from birth with any of them. A period of temporary

23 absence of any of them is counted as part of the 6-

24 month period.’’;
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1 (3) in subsection (c), by inserting ‘‘by a court

2 of a State’’ before ‘‘is made’’;

3 (4) in subsection (c)(1), by inserting ‘‘and sub4 sections (e), (f), and (g)’’ after ‘‘located’’;

5 (5) in subsection (d)—

6 (A) by inserting ‘‘individual’’ before ‘‘con7 testant’’; and

8 (B) by striking ‘‘subsection (e)’’ and in9 serting ‘‘subsections (e) and (f)’’;

10 (6) in subsection (e), by striking ‘‘make a modi11 fication of a child support order with respect to a

12 child that is made’’ and inserting ‘‘modify a child

13 support order issued’’;

14 (7) in subsection (e)(1), by inserting ‘‘pursuant

15 to subsection (i)’’ before the semicolon;

16 (8) in subsection (e)(2)—

17 (A) by inserting ‘‘individual’’ before ‘‘con18 testant’’ each place such term appears; and

19 (B) by striking ‘‘to that court’s making the

20 modification and assuming’’ and inserting ‘‘with

21 the State of continuing, exclusive jurisdiction

22 for a court of another State to modify the order

23 and assume’’;

24 (9) by redesignating subsections (f) and (g) as

25 subsections (g) and (h), respectively;
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1 (10) by inserting after subsection (e) the follow2 ing new subsection:

3 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

4 If 1 or more child support orders have been issued in this

5 or another State with regard to an obligor and a child,

6 a court shall apply the following rules in determining

7 which order to recognize for purposes of continuing, exclu8 sive jurisdiction and enforcement:

9 ‘‘(1) If only 1 court has issued a child support

10 order, the order of that court must be recognized.

11 ‘‘(2) If 2 or more courts have issued child sup12 port orders for the same obligor and child, and only

13 1 of the courts would have continuing, exclusive ju14 risdiction under this section, the order of that court

15 must be recognized.

16 ‘‘(3) If 2 or more courts have issued child sup17 port orders for the same obligor and child, and only

18 1 of the courts would have continuing, exclusive ju19 risdiction under this section, an order issued by a

20 court in the current home State of the child must

21 be recognized, but if an order has not been issued

22 in the current home State of the child, the order

23 most recently issued must be recognized.

24 ‘‘(4) If 2 or more courts have issued child sup25 port orders for the same obligor and child, and none
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1 of the courts would have continuing, exclusive juris2 diction under this section, a court may issue a child

3 support order, which must be recognized.

4 ‘‘(5) The court that has issued an order recog5 nized under this subsection is the court having con6 tinuing, exclusive jurisdiction.’’;

7 (11) in subsection (g) (as so redesignated)—

8 (A) by striking ‘‘PRIOR’’ and inserting

9 ‘‘MODIFIED’’; and

10 (B) by striking ‘‘subsection (e)’’ and in11 serting ‘‘subsections (e) and (f)’’;

12 (12) in subsection (h) (as so redesignated)—

13 (A) in paragraph (2), by inserting ‘‘includ14 ing the duration of current payments and other

15 obligations of support’’ before the comma; and

16 (B) in paragraph (3), by inserting ‘‘arrears

17 under’’ after ‘‘enforce’’; and

18 (13) by adding at the end the following new

19 subsection:

20 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

21 no individual contestant or child residing in the issuing

22 State, the party or support enforcement agency seeking

23 to modify, or to modify and enforce, a child support order

24 issued in another State shall register that order in a State
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1 with jurisdiction over the nonmovant for the purpose of

2 modification.’’.

3 SEC. 433. STATE LAWS PROVIDING EXPEDITED PROCE4 DURES.

5 (a) STATE LAW REQUIREMENTS.—Section 466 (42

6 U.S.C. 666), as amended by section 424(b), is amended—

7 (1) in subsection (a)(2), in the first sentence, to

8 read as follows: ‘‘Expedited administrative and judi9 cial procedures (including the procedures specified in

10 subsection (c)) for establishing paternity and for es11 tablishing, modifying, and enforcing support obliga12 tions.’’; and

13 (2) by adding after subsection (b) the following

14 new subsection:

15 ‘‘(c) The procedures specified in this subsection are

16 the following:

17 ‘‘(1) Procedures which give the State agency

18 the authority (and recognize and enforce the author19 ity of State agencies of other States), without the

20 necessity of obtaining an order from any other judi21 cial or administrative tribunal (but subject to due

22 process safeguards, including (as appropriate) re23 quirements for notice, opportunity to contest the ac24 tion, and opportunity for an appeal on the record to

25 an independent administrative or judicial tribunal),
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1 to take the following actions relating to establish2 ment or enforcement of orders:

3 ‘‘(A) To order genetic testing for the pur4 pose of paternity establishment as provided in

5 section 466(a)(5).

6 ‘‘(B) To enter a default order, upon a

7 showing of service of process and any additional

8 showing required by State law—

9 ‘‘(i) establishing paternity, in the case

10 of any putative father who refuses to sub11 mit to genetic testing; and

12 ‘‘(ii) establishing or modifying a sup13 port obligation, in the case of a parent (or

14 other obligor or obligee) who fails to re15 spond to notice to appear at a proceeding

16 for such purpose.

17 ‘‘(C) To subpoena any financial or other

18 information needed to establish, modify, or en19 force an order, and to sanction failure to re20 spond to any such subpoena.

21 ‘‘(D) To require all entities in the State

22 (including for-profit, nonprofit, and govern23 mental employers) to provide promptly, in re24 sponse to a request by the State agency of that

25 or any other State administering a program
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1 under this part, information on the employ2 ment, compensation, and benefits of any indi3 vidual employed by such entity as an employee

4 or contractor, and to sanction failure to respond

5 to any such request.

6 ‘‘(E) To obtain access, subject to safe7 guards on privacy and information security, to

8 the following records (including automated ac9 cess, in the case of records maintained in auto10 mated data bases):

11 ‘‘(i) Records of other State and local

12 government agencies, including—

13 ‘‘(I) vital statistics (including

14 records of marriage, birth, and di15 vorce);

16 ‘‘(II) State and local tax and rev17 enue records (including information

18 on residence address, employer, in19 come and assets);

20 ‘‘(III) records concerning real

21 and titled personal property;

22 ‘‘(IV) records of occupational and

23 professional licenses, and records con24 cerning the ownership and control of
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•S 840 IS

1 corporations, partnerships, and other

2 business entities;

3 ‘‘(V) employment security

4 records;

5 ‘‘(VI) records of agencies admin6 istering public assistance programs;

7 ‘‘(VII) records of the motor vehi8 cle department; and

9 ‘‘(VIII) corrections records.

10 ‘‘(ii) Certain records held by private

11 entities, including—

12 ‘‘(I) customer records of public

13 utilities and cable television compa14 nies; and

15 ‘‘(II) information (including in16 formation on assets and liabilities) on

17 individuals who owe or are owed sup18 port (or against or with respect to

19 whom a support obligation is sought)

20 held by financial institutions (subject

21 to limitations on liability of such enti22 ties arising from affording such ac23 cess).
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1 ‘‘(F) To order income withholding in ac2 cordance with subsection (a)(1) and (b) of sec3 tion 466.

4 ‘‘(G) In cases where support is subject to

5 an assignment under section 402(a)(9),

6 471(a)(17), or 1912, or to a requirement to pay

7 through the centralized collections unit under

8 section 454B) upon providing notice to obligor

9 and obligee, to direct the obligor or other payor

10 to change the payee to the appropriate govern11 ment entity.

12 ‘‘(H) For the purpose of securing overdue

13 support—

14 ‘‘(i) to intercept and seize any peri15 odic or lump-sum payment to the obligor

16 by or through a State or local government

17 agency, including—

18 ‘‘(I) unemployment compensa19 tion, workers’ compensation, and

20 other benefits;

21 ‘‘(II) judgments and settlements

22 in cases under the jurisdiction of the

23 State or local government; and

24 ‘‘(III) lottery winnings;
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1 ‘‘(ii) to attach and seize assets of the

2 obligor held by financial institutions;

3 ‘‘(iii) to attach public and private re4 tirement funds in appropriate cases, as de5 termined by the Secretary; and

6 ‘‘(iv) to impose liens in accordance

7 with paragraph (a)(4) and, in appropriate

8 cases, to force sale of property and dis9 tribution of proceeds.

10 ‘‘(I) For the purpose of securing overdue

11 support, to increase the amount of monthly

12 support payments to include amounts for ar13 rearages (subject to such conditions or restric14 tions as the State may provide).

15 ‘‘(J) To suspend drivers’ licenses of indi16 viduals owing past-due support, in accordance

17 with subsection (a)(16).

18 ‘‘(2) The expedited procedures required under

19 subsection (a)(2) shall include the following rules

20 and authority, applicable with respect to all proceed21 ings to establish paternity or to establish, modify, or

22 enforce support orders:

23 ‘‘(A) Procedures under which—

24 ‘‘(i) the parties to any paternity or

25 child support proceedings are required
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1 (subject to privacy safeguards) to file with

2 the tribunal before entry of an order, and

3 to update as appropriate, information on

4 location and identity (including social secu5 rity number, residential and mailing ad6 dresses, telephone number, driver’s license

7 number, and name, address, and telephone

8 number of employer); and

9 ‘‘(ii) in any subsequent child support

10 enforcement action between the same par11 ties, the tribunal shall be authorized, upon

12 sufficient showing that diligent effort has

13 been made to ascertain such party’s cur14 rent location, to deem due process require15 ments for notice and service of process to

16 be met, with respect to such party, by de17 livery to the most recent residential or em18 ployer address so filed pursuant to clause

19 (i).

20 ‘‘(B) Procedures under which—

21 ‘‘(i) the State agency and any admin22 istrative or judicial tribunal with authority

23 to hear child support and paternity cases

24 exerts statewide jurisdiction over the par-
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1 ties, and orders issued in such cases have

2 statewide effect; and

3 ‘‘(ii) in the case of a State in which

4 orders in such cases are issued by local ju5 risdictions, a case may be transferred be6 tween jurisdictions in the State without

7 need for any additional filing by the peti8 tioner, or service of process upon the re9 spondent, to retain jurisdiction over the

10 parties.’’.

11 (b) EXCEPTIONS FROM STATE LAW REQUIRE12 MENTS.—Section 466(d) (42 U.S.C. 666(d)) is amend13 ed—

14 (1) by striking ‘‘(d) If’’ and inserting ‘‘(d)(1)

15 Subject to paragraph (2), if’’; and

16 (2) by adding at the end the following new

17 paragraph:

18 ‘‘(2) The Secretary shall not grant an exemption

19 from the requirements of—

20 ‘‘(A) subsection (a)(5) (concerning procedures

21 for paternity establishment);

22 ‘‘(B) subsection (a)(10) (concerning modifica23 tion of orders);

24 ‘‘(C) subsection (a)(12) (concerning recording

25 of orders in the central State case registry);
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1 ‘‘(D) subsection (a)(13) (concerning recording

2 of social security numbers);

3 ‘‘(E) subsection (a)(14) (concerning interstate

4 enforcement); or

5 ‘‘(F) subsection (c) (concerning expedited pro6 cedures), other than paragraph (1)(A) thereof (con7 cerning establishment or modification of support

8 amount).’’.

9 (c) AUTOMATION OF STATE AGENCY FUNCTIONS.—

10 Section 454A, as added by section 415(a)(2) and as

11 amended by sections 421 and 422(c), is amended by add12 ing at the end the following new subsection:

13 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

14 The automated system required under this section shall

15 be used, to the maximum extent feasible, to implement any

16 expedited administrative procedures required under sec17 tion 466(c).’’.

18 SEC. 434. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

19 CASES.

20 Section 466(a) (42 U.S.C. 666(a)), as amended by

21 sections 401(a), 427, and 431, is amended by adding at

22 the end the following:

23 ‘‘(15) Procedures under which—
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1 ‘‘(A)(i) the State shall respond within 5

2 business days to a request made by another

3 State to enforce a support order; and

4 ‘‘(ii) the term ‘business day’ means a day

5 on which State offices are open for regular

6 business;

7 ‘‘(B) the State may, by electronic or other

8 means, transmit to another State a request for

9 assistance in a case involving the enforcement

10 of a support order, which request—

11 ‘‘(i) shall include such information as

12 will enable the State to which the request

13 is transmitted to compare the information

14 about the case to the information in the

15 data bases of the State; and

16 ‘‘(ii) shall constitute a certification by

17 the requesting State—

18 ‘‘(I) of the amount of support

19 under the order the payment of which

20 is in arrears; and

21 ‘‘(II) that the requesting State

22 has complied with all procedural due

23 process requirements applicable to the

24 case;
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•S 840 IS

1 ‘‘(C) if the State provides assistance to an2 other State pursuant to this paragraph with re3 spect to a case, neither State shall consider the

4 case to be transferred to the caseload of such

5 other State; and

6 ‘‘(D) the State shall maintain records of—

7 ‘‘(i) the number of such requests for

8 assistance received by the State;

9 ‘‘(ii) the number of cases for which

10 the State collected support in response to

11 such a request; and

12 ‘‘(iii) the amount of such collected

13 support.’’.

14 SEC. 435. USE OF FORMS IN INTERSTATE ENFORCEMENT.

15 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

16 652(a)) is amended—

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

18 (9);

19 (2) by striking the period at the end of para20 graph (10) and inserting ‘‘; and’’; and

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

22 ‘‘(11) not later than June 30, 1996, promulgate

23 forms to be used by States in interstate cases for—

24 ‘‘(A) collection of child support through in25 come withholding;
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•S 840 IS

1 ‘‘(B) imposition of liens; and

2 ‘‘(C) administrative subpoenas.’’.

3 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

4 654(9)) is amended—

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (C);

7 (2) by inserting ‘‘and’’ at the end of subpara8 graph (D); and

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

10 ‘‘(E) no later than October 1, 1996, in

11 using the forms promulgated pursuant to sec12 tion 452(a)(11) for income withholding, imposi13 tion of liens, and issuance of administrative

14 subpoenas in interstate child support cases;’’.

15 PART V—PATERNITY ESTABLISHMENT

16 SEC. 441. STATE LAWS CONCERNING PATERNITY ESTAB17 LISHMENT.

18 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

19 U.S.C. 666(a)(5)) is amended—

20 (1) in subparagraph (B)—

21 (A) by striking ‘‘(B)’’ and inserting

22 ‘‘(B)(i)’’;

23 (B) in clause (i), as redesignated, by in24 serting before the period ‘‘, where such request

25 is supported by a sworn statement—
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•S 840 IS

1 ‘‘(I) by such party alleging paternity setting

2 forth facts establishing a reasonable possibility of

3 the requisite sexual contact of the parties; or

4 ‘‘(II) by such party denying paternity setting

5 forth facts establishing a reasonable possibility of

6 the nonexistence of sexual contact of the parties;’’;

7 and

8 (C) by inserting after clause (i) (as redes9 ignated) the following new clause:

10 ‘‘(ii) Procedures which require the State agen11 cy, in any case in which such agency orders genetic

12 testing—

13 ‘‘(I) to pay the costs of such tests, subject

14 to recoupment (where the State so elects) from

15 the putative father if paternity is established;

16 and

17 ‘‘(II) to obtain additional testing in any

18 case where an original test result is disputed,

19 upon request and advance payment by the dis20 puting party.’’;

21 (2) by striking subparagraphs (C), (D), (E),

22 and (F) and inserting the following:

23 ‘‘(C)(i) Procedures for a simple civil process for

24 voluntarily acknowledging paternity under which the

25 State must provide that, before a mother and a pu-
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•S 840 IS

1 tative father can sign an acknowledgment of pater2 nity, the putative father and the mother must be

3 given notice, orally, in writing, and in a language

4 that each can understand, of the alternatives to, the

5 legal consequences of, and the rights (including, if 1

6 parent is a minor, any rights afforded due to minor7 ity status) and responsibilities that arise from, sign8 ing the acknowledgment.

9 ‘‘(ii) Such procedures must include a hospital10 based program for the voluntary acknowledgment of

11 paternity focusing on the period immediately before

12 or after the birth of a child.

13 ‘‘(iii) Such procedures must require the State

14 agency responsible for maintaining birth records to

15 offer voluntary paternity establishment services.

16 ‘‘(iv) The Secretary shall prescribe regulations

17 governing voluntary paternity establishment services

18 offered by hospitals and birth record agencies. The

19 Secretary shall prescribe regulations specifying the

20 types of other entities that may offer voluntary pa21 ternity establishment services, and governing the

22 provision of such services, which shall include a re23 quirement that such an entity must use the same

24 notice provisions used by, the same materials used

25 by, provide the personnel providing such services
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1 with the same training provided by, and evaluate the

2 provision of such services in the same manner as,

3 voluntary paternity establishment programs of hos4 pitals and birth record agencies.

5 ‘‘(D)(i) Procedures under which a signed ac6 knowledgment of paternity is considered a legal find7 ing of paternity, subject to the right of any signa8 tory to rescind the acknowledgment within 60 days.

9 ‘‘(ii)(I) Procedures under which, after the 60-

10 day period referred to in clause (i), a signed ac11 knowledgment of paternity may be challenged in

12 court only on the basis of fraud, duress, or material

13 mistake of fact, with the burden of proof upon the

14 challenger, and under which the legal responsibilities

15 (including child support obligations) of any signatory

16 arising from the acknowledgment may not be sus17 pended during the challenge, except for good cause

18 shown.

19 ‘‘(II) Procedures under which, after the 60-day

20 period referred to in clause (i), a minor who signs

21 an acknowledgment of paternity other than in the

22 presence of a parent or court-appointed guardian ad

23 litem may rescind the acknowledgment in a judicial

24 or administrative proceeding, until the earlier of—

25 ‘‘(aa) attaining the age of majority; or
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•S 840 IS

1 ‘‘(bb) the date of the first judicial or ad2 ministrative proceeding brought (after the sign3 ing) to establish a child support obligation, visi4 tation rights, or custody rights with respect to

5 the child whose paternity is the subject of the

6 acknowledgment, and at which the minor is rep7 resented by a parent, guardian ad litem, or at8 torney.

9 ‘‘(E) Procedures under which no judicial or ad10 ministrative proceedings are required or permitted to

11 ratify an unchallenged acknowledgment of paternity.

12 ‘‘(F) Procedures requiring—

13 ‘‘(i) that the State admit into evidence, for

14 purposes of establishing paternity, results of

15 any genetic test that is—

16 ‘‘(I) of a type generally acknowledged,

17 by accreditation bodies designated by the

18 Secretary, as reliable evidence of paternity;

19 and

20 ‘‘(II) performed by a laboratory ap21 proved by such an accreditation body;

22 ‘‘(ii) that any objection to genetic testing

23 results must be made in writing not later than

24 a specified number of days before any hearing

25 at which such results may be introduced into
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•S 840 IS

1 evidence (or, at State option, not later than a

2 specified number of days after receipt of such

3 results); and

4 ‘‘(iii) that, if no objection is made, the test

5 results are admissible as evidence of paternity

6 without the need for foundation testimony or

7 other proof of authenticity or accuracy.’’; and

8 (3) by adding after subparagraph (H) the fol9 lowing new subparagraphs:

10 ‘‘(I) Procedures providing that the parties to an

11 action to establish paternity are not entitled to a

12 jury trial.

13 ‘‘(J) Procedures which require that a temporary

14 order be issued, upon motion by a party, requiring

15 the provision of child support pending an adminis16 trative or judicial determination of parentage, where

17 there is clear and convincing evidence of paternity

18 (on the basis of genetic tests or other evidence).

19 ‘‘(K) Procedures under which bills for preg20 nancy, childbirth, and genetic testing are admissible

21 as evidence without requiring third-party foundation

22 testimony, and shall constitute prima facie evidence

23 of amounts incurred for such services and testing on

24 behalf of the child.
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•S 840 IS

1 ‘‘(L) At the option of the State, procedures

2 under which the tribunal establishing paternity and

3 support has discretion to waive rights to all or part

4 of amounts owed to the State (but not to the moth5 er) for costs related to pregnancy, childbirth, and

6 genetic testing and for public assistance paid to the

7 family where the father cooperates or acknowledges

8 paternity before or after genetic testing.

9 ‘‘(M) Procedures ensuring that the putative fa10 ther has a reasonable opportunity to initiate a pater11 nity action.

12 ‘‘(N) Procedures under which voluntary ac13 knowledgements and adjudications of paternity by

14 judicial or administrative processes are filed with the

15 State registry of birth records for comparison with

16 information in the central case registry.’’.

17 (b) STATE PLANS.—Section 454(a)(7) (42 U.S.C.

18 654(a)(7)) is amended to read as follows:

19 ‘‘(7) provide for entering into cooperative ar20 rangements with—

21 ‘‘(A) appropriate courts and law enforce22 ment officials to—

23 ‘‘(i) assist the agency administering

24 the plan, and
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•S 840 IS

1 ‘‘(ii) to assist such courts and officials

2 and such agency with respect to matters of

3 common concern; and

4 ‘‘(B) the State registry of birth records to

5 record voluntary acknowledgments and adju6 dications of paternity and to make such records

7 available for data matches and other purposes

8 required by the agency administering the

9 plan;’’.

10 (c) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI11 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

12 amended by inserting ‘‘, and develop an affidavit to be

13 used for the voluntary acknowledgment of paternity which

14 shall include the social security number of each parent’’

15 before the semicolon.

16 (d) TECHNICAL AMENDMENT.—Section 468 (42

17 U.S.C. 668) is amended by striking ‘‘a simple civil process

18 for voluntarily acknowledging paternity and’’.

19 SEC. 442. OUTREACH FOR VOLUNTARY PATERNITY ESTAB20 LISHMENT.

21 (a) STATE PLAN REQUIREMENT.—Section 454(23)

22 (42 U.S.C. 654(23)) is amended—

23 (1) by striking ‘‘(23)’’ and inserting ‘‘(23)(A)’’;

24 (2) by inserting ‘‘and’’ after the semicolon; and
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•S 840 IS

1 (3) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) publicize the availability and encourage

4 the use of procedures for voluntary establishment of

5 paternity and child support through a variety of

6 means, which—

7 ‘‘(i) include distribution of written mate8 rials at health care facilities (including hospitals

9 and clinics), and other locations such as

10 schools;

11 ‘‘(ii) may include pre-natal programs to

12 educate expectant couples on individual and

13 joint rights and responsibilities with respect to

14 paternity (and may require all expectant recipi15 ents of assistance under part A to participate in

16 such pre-natal programs, as an element of co17 operation with efforts to establish paternity and

18 child support);

19 ‘‘(iii) include, with respect to each child

20 discharged from a hospital after birth for whom

21 paternity or child support has not been estab22 lished, reasonable followup efforts, providing—

23 ‘‘(I) in the case of a child for whom

24 paternity has not been established, infor-
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•S 840 IS

1 mation on the benefits of and procedures

2 for establishing paternity; and

3 ‘‘(II) in the case of a child for whom

4 paternity has been established but child

5 support has not been established, informa6 tion on the benefits of and procedures for

7 establishing a child support order, and an

8 application for child support services;’’.

9 (b) ENHANCED FEDERAL MATCHING.—Section

10 455(a)(1)(C) (42 U.S.C. 655(a)(1)(C)) is amended—

11 (1) by inserting ‘‘(i)’’ before ‘‘laboratory costs’’,

12 and

13 (2) by inserting before the semicolon ‘‘, and (ii)

14 costs of outreach programs designed to encourage

15 voluntary acknowledgment of paternity’’.

16 (c) EFFECTIVE DATES.—

17 (1) IN GENERAL.—The amendments made by

18 subsection (a) shall become effective October 1,

19 1997.

20 (2) EXCEPTION.—The amendments made by

21 subsection (b) shall be effective with respect to cal22 endar quarters beginning on and after October 1,

23 1996.
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1 PART VI—ESTABLISHMENT AND MODIFICATION

2 OF SUPPORT ORDERS

3 SEC. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMIS4 SION.

5 (a) ESTABLISHMENT.—There is hereby established a

6 commission to be known as the ‘‘National Child Support

7 Guidelines Commission’’ (in this section referred to as the

8 ‘‘Commission’’).

9 (b) GENERAL DUTIES.—

10 (1) IN GENERAL.—The Commission shall deter11 mine—

12 (A) whether it is appropriate to develop a

13 national child support guideline for consider14 ation by the Congress or for adoption by indi15 vidual States; or

16 (B) based on a study of various guideline

17 models, the benefits and deficiencies of such

18 models, and any needed improvements.

19 (2) DEVELOPMENT OF MODELS.—If the Com20 mission determines under paragraph (1)(A) that a

21 national child support guideline is needed or under

22 paragraph (1)(B) that improvements to guideline

23 models are needed, the Commission shall develop

24 such national guideline or improvements.

25 (c) MATTERS FOR CONSIDERATION BY THE COMMIS26 SION.—In making the recommendations concerning guide-
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•S 840 IS

1 lines required under subsection (b), the Commission shall

2 consider—

3 (1) the adequacy of State child support guide4 lines established pursuant to section 467 of the So5 cial Security Act;

6 (2) matters generally applicable to all support

7 orders, including—

8 (A) the feasibility of adopting uniform

9 terms in all child support orders;

10 (B) how to define income and under what

11 circumstances income should be imputed; and

12 (C) tax treatment of child support pay13 ments;

14 (3) the appropriate treatment of cases in which

15 either or both parents have financial obligations to

16 more than 1 family, including the effect (if any) to

17 be given to—

18 (A) the income of either parent’s spouse;

19 and

20 (B) the financial responsibilities of either

21 parent for other children or stepchildren;

22 (4) the appropriate treatment of expenses for

23 child care (including care of the children of either

24 parent, and work-related or job-training-related child

25 care);
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1 (5) the appropriate treatment of expenses for

2 health care (including uninsured health care) and

3 other extraordinary expenses for children with spe4 cial needs;

5 (6) the appropriate duration of support by 1 or

6 both parents, including

7 (A) support (including shared support) for

8 post-secondary or vocational education; and

9 (B) support for disabled adult children;

10 (7) procedures to automatically adjust child

11 support orders periodically to address changed eco12 nomic circumstances, including changes in the

13 consumer price index or either parent’s income and

14 expenses in particular cases;

15 (8) procedures to help non-custodial parents ad16 dress grievances regarding visitation and custody or17 ders to prevent such parents from withholding child

18 support payments until such grievances are resolved;

19 and

20 (9) whether, or to what extent, support levels

21 should be adjusted in cases in which custody is

22 shared or in which the noncustodial parent has ex23 tended visitation rights.

24 (d) MEMBERSHIP.—

25 (1) NUMBER; APPOINTMENT.—
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1 (A) IN GENERAL.—The Commission shall

2 be composed of 12 individuals appointed jointly

3 by the Secretary of Health and Human Services

4 and the Congress, not later than January 15,

5 1997, of which—

6 (i) 2 shall be appointed by the Chair7 man of the Committee on Finance of the

8 Senate, and 1 shall be appointed by the

9 ranking minority member of the Commit10 tee;

11 (ii) 2 shall be appointed by the Chair12 man of the Committee on Ways and Means

13 of the House of Representatives, and 1

14 shall be appointed by the ranking minority

15 member of the Committee; and

16 (iii) 6 shall be appointed by the Sec17 retary of Health and Human Services.

18 (B) QUALIFICATIONS OF MEMBERS.—

19 Members of the Commission shall have exper20 tise and experience in the evaluation and devel21 opment of child support guidelines. At least 1

22 member shall represent advocacy groups for

23 custodial parents, at least 1 member shall rep24 resent advocacy groups for noncustodial par25 ents, and at least 1 member shall be the direc-
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•S 840 IS

1 tor of a State program under part D of title IV

2 of the Social Security Act.

3 (2) TERMS OF OFFICE.—Each member shall be

4 appointed for a term of 2 years. A vacancy in the

5 Commission shall be filled in the manner in which

6 the original appointment was made.

7 (e) COMMISSION POWERS, COMPENSATION, ACCESS

8 TO INFORMATION, AND SUPERVISION.—The first sentence

9 of subparagraph (C), the first and third sentences of sub10 paragraph (D), subparagraph (F) (except with respect to

11 the conduct of medical studies), clauses (ii) and (iii) of

12 subparagraph (G), and subparagraph (H) of section

13 1886(e)(6) of the Social Security Act shall apply to the

14 Commission in the same manner in which such provisions

15 apply to the Prospective Payment Assessment Commis16 sion.

17 (f) REPORT.—Not later than 2 years after the ap18 pointment of members, the Commission shall submit to

19 the President, the Committee on Ways and Means of the

20 House of Representatives, and the Committee on Finance

21 of the Senate, a recommended national child support

22 guideline and a final assessment of issues relating to such

23 a proposed national child support guideline.
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1 (g) TERMINATION.—The Commission shall terminate

2 6 months after the submission of the report described in

3 subsection (e).

4 SEC. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST5 MENT OF CHILD SUPPORT ORDERS.

6 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend7 ed to read as follows:

8 ‘‘(10)(A)(i) Procedures under which—

9 ‘‘(I) every 3 years, at the request of either

10 parent subject to a child support order, the

11 State shall review and, as appropriate, adjust

12 the order in accordance with the guidelines es13 tablished under section 467(a) if the amount of

14 the child support award under the order differs

15 from the amount that would be awarded in ac16 cordance with such guidelines, without a re17 quirement for any other change in cir18 cumstances; and

19 ‘‘(II) upon request at any time of either

20 parent subject to a child support order, the

21 State shall review and, as appropriate, adjust

22 the order in accordance with the guidelines es23 tablished under section 467(a) based on a sub24 stantial change in the circumstances of either

25 such parent.
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1 ‘‘(ii) Such procedures shall require both parents

2 subject to a child support order to be notified of

3 their rights and responsibilities provided for under

4 clause (i) at the time the order is issued and in the

5 annual information exchange form provided under

6 subparagraph (B).

7 ‘‘(B) Procedures under which each child sup8 port order issued or modified in the State after the

9 effective date of this subparagraph shall require the

10 parents subject to the order to provide each other

11 with a complete statement of their respective finan12 cial condition annually on a form which shall be pro13 vided by the State. The Secretary shall establish reg14 ulations for the enforcement of such exchange of in15 formation.’’.

16 PART VII—ENFORCEMENT OF SUPPORT ORDERS

17 SEC. 461. FEDERAL INCOME TAX REFUND OFFSET.

18 (a) CHANGED ORDER OF REFUND DISTRIBUTION

19 UNDER INTERNAL REVENUE CODE.—Section 6402(c) of

20 the Internal Revenue Code of 1986 (relating to offset of

21 past-due support against overpayments) is amended by

22 striking the third sentence.

23 (b) ELIMINATION OF DISPARITIES IN TREATMENT

24 OF ASSIGNED AND NONASSIGNED ARREARAGES.—
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1 (1) IN GENERAL.—Section 464(a) (42 U.S.C.

2 664(a)) is amended—

3 (A) in paragraph (1)—

4 (i) in the first sentence, by striking

5 ‘‘which has been assigned to such State

6 pursuant to section 402(a)(9) or section

7 471(a)(17)’’; and

8 (ii) in the second sentence, by striking

9 ‘‘in accordance with section 457 (b)(4) or

10 (d)(3)’’ and inserting ‘‘as provided in para11 graph (2)’’;

12 (B) in paragraph (2), to read as follows:

13 ‘‘(2) The State agency shall distribute amounts

14 paid by the Secretary of the Treasury pursuant to

15 paragraph (1)—

16 ‘‘(A) in accordance with subsection (a)(4)

17 or (d)(3) of section 457, in the case of past-due

18 support assigned to a State pursuant to section

19 402(a)(9) or section 471(a)(17); and

20 ‘‘(B) to or on behalf of the child to whom

21 the support was owed, in the case of past-due

22 support not so assigned.’’;

23 (C) in paragraph (3)—

24 (i) by striking ‘‘or (2)’’ each place it

25 appears; and
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•S 840 IS

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

2 ‘‘under paragraph (2)’’ and inserting ‘‘on

3 account of past-due support described in

4 paragraph (2)(B)’’.

5 (2) NOTICES OF PAST-DUE SUPPORT.—Section

6 464(b) (42 U.S.C. 664(b)) is amended—

7 (A) by striking ‘‘(b)(1)’’ and inserting

8 ‘‘(b)’’; and

9 (B) by striking paragraph (2).

10 (3) DEFINITION OF PAST-DUE SUPPORT.—Sec11 tion 464(c) (42 U.S.C. 664(c)) is amended—

12 (A) by striking ‘‘(c)(1) Except as provided

13 in paragraph (2), as’’ and inserting ‘‘(c) As’’;

14 and

15 (B) by striking paragraphs (2) and (3).

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

17 this section shall become effective October 1, 1999.

18 SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF

19 ARREARAGES.

20 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

21 Section 6305(a) of the Internal Revenue Code of 1986 (re22 lating to collection of certain liability) is amended—

23 (1) in paragraph (1), by inserting ‘‘except as

24 provided in paragraph (5)’’ after ‘‘collected’’;
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1 (2) by striking ‘‘and’’ at the end of paragraph

2 (3);

3 (3) by striking the period at the end of para4 graph (4) and inserting ‘‘, and’’;

5 (4) by adding at the end the following new

6 paragraph:

7 ‘‘(5) no additional fee may be assessed for ad8 justments to an amount previously certified pursu9 ant to such section 452(b) with respect to the same

10 obligor.’’; and

11 (5) by striking ‘‘Secretary of Health, Edu12 cation, and Welfare’’ each place it appears and in13 serting ‘‘Secretary of Health and Human Services’’.

14 (b) EFFECTIVE DATE.—The amendments made by

15 this section shall become effective October 1, 1997.

16 SEC. 463. AUTHORITY TO COLLECT SUPPORT FROM FED17 ERAL EMPLOYEES.

18 (a) CONSOLIDATION AND STREAMLINING OF AU19 THORITIES.—Section 459 (42 U.S.C. 659) is amended—

20 (1) in the heading, by inserting ‘‘INCOME WITH21 HOLDING,’’ before ‘‘GARNISHMENT’’;

22 (2) in subsection (a)—

23 (A) by striking ‘‘section 207’’ and insert24 ing ‘‘section 207 and section 5301 of title 38,

25 United States Code’’; and
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1 (B) by striking ‘‘to legal process’’ and all

2 that follows through the period and inserting

3 ‘‘to withholding in accordance with State law

4 pursuant to subsections (a)(1) and (b) of sec5 tion 466 and regulations of the Secretary there6 under, and to any other legal process brought,

7 by a State agency administering a program

8 under this part or by an individual obligee, to

9 enforce the legal obligation of such individual to

10 provide child support or alimony.’’;

11 (3) by striking subsection (b) and inserting the

12 following new subsection:

13 ‘‘(b) Except as otherwise provided herein, each entity

14 specified in subsection (a) shall be subject, with respect

15 to notice to withhold income pursuant to subsection (a)(1)

16 or (b) of section 466, or to any other order or process

17 to enforce support obligations against an individual (if

18 such order or process contains or is accompanied by suffi19 cient data to permit prompt identification of the individual

20 and the moneys involved), to the same requirements as

21 would apply if such entity were a private person.’’;

22 (4) by striking subsections (c) and (d) and in23 serting the following new subsections:

24 ‘‘(c)(1) The head of each agency subject to the re25 quirements of this section shall—
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1 ‘‘(A) designate an agent or agents to receive or2 ders and accept service of process; and

3 ‘‘(B) publish—

4 ‘‘(i) in the appendix of such regulations;

5 ‘‘(ii) in each subsequent republication of

6 such regulations; and

7 ‘‘(iii) annually in the Federal Register,

8 the designation of such agent or agents, identified

9 by title of position, mailing address, and telephone

10 number.

11 ‘‘(2) Whenever an agent designated pursuant to para12 graph (1) receives notice pursuant to subsection (a)(1) or

13 (b) of section 466, or is effectively served with any order,

14 process, or interrogatories, with respect to an individual’s

15 child support or alimony payment obligations, such agent

16 shall—

17 ‘‘(A) as soon as possible (but not later than 15

18 days) thereafter, send written notice of such notice

19 or service (together with a copy thereof) to such in20 dividual at his duty station or last-known home ad21 dress;

22 ‘‘(B) not later than 30 days (or such longer pe23 riod as may be prescribed by applicable State law)

24 after receipt of a notice pursuant to subsection
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1 (a)(1) or (b) of section 466, comply with all applica2 ble provisions of such section 466; and

3 ‘‘(C) not later than 30 days (or such longer pe4 riod as may be prescribed by applicable State law)

5 after effective service of any other such order, proc6 ess, or interrogatories, respond thereto.

7 ‘‘(d) In the event that a governmental entity receives

8 notice or is served with process, as provided in this section,

9 concerning amounts owed by an individual to more than

10 1 person—

11 ‘‘(1) support collection under section 466(b)

12 must be given priority over any other process, as

13 provided in section 466(b)(7);

14 ‘‘(2) allocation of moneys due or payable to an

15 individual among claimants under section 466(b)

16 shall be governed by the provisions of such section

17 466(b) and regulations thereunder; and

18 ‘‘(3) such moneys as remain after compliance

19 with subparagraphs (A) and (B) shall be available to

20 satisfy any other such processes on a first-come,

21 first-served basis, with any such process being satis22 fied out of such moneys as remain after the satisfac23 tion of all such processes which have been previously

24 served.’’;

25 (5) in subsection (f)—
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1 (A) by striking ‘‘(f)’’ and inserting

2 ‘‘(f)(1)’’; and

3 (B) by adding at the end the following new

4 paragraph:

5 ‘‘(2) No Federal employee whose duties include tak6 ing actions necessary to comply with the requirements of

7 subsection (a) with regard to any individual shall be sub8 ject under any law to any disciplinary action or civil or

9 criminal liability or penalty for, or on account of, any dis10 closure of information made by him in connection with the

11 carrying out of such duties.’’; and

12 (6) by adding at the end the following new sub13 sections:

14 ‘‘(g) Authority to promulgate regulations for the im15 plementation of the provisions of this section shall, insofar

16 as the provisions of this section are applicable to moneys

17 due from (or payable by)—

18 ‘‘(1) the executive branch of the Federal Gov19 ernment (including in such branch, for the purposes

20 of this subsection, the territories and possessions of

21 the United States, the United States Postal Service,

22 the Postal Rate Commission, any wholly owned Fed23 eral corporation created by an Act of Congress, and

24 the government of the District of Columbia), be

25 vested in the President (or the President’s designee);
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•S 840 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 Chief Justice’s designee).

8 ‘‘(h) Subject to subsection (i), moneys paid or payable

9 to an individual which are considered to be based upon

10 remuneration for employment, for purposes of this sec11 tion—

12 ‘‘(1) consist of—

13 ‘‘(A) compensation paid or payable for per14 sonal services of such individual, whether such

15 compensation is denominated as wages, salary,

16 commission, bonus, pay, allowances, or other17 wise (including severance pay, sick pay, and in18 centive pay);

19 ‘‘(B) periodic benefits (including a periodic

20 benefit as defined in section 228(h)(3)) or other

21 payments—

22 ‘‘(i) under the insurance system estab23 lished by title II;

24 ‘‘(ii) under any other system or fund

25 established by the United States which
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•S 840 IS

1 provides for the payment of pensions, re2 tirement or retired pay, annuities, depend3 ents’ or survivors’ benefits, or similar

4 amounts payable on account of personal

5 services performed by the individual or any

6 other individual;

7 ‘‘(iii) as compensation for death under

8 any Federal program;

9 ‘‘(iv) under any Federal program es10 tablished to provide ‘black lung’ benefits;

11 or

12 ‘‘(v) by the Secretary of Veterans Af13 fairs as pension, or as compensation for a

14 service-connected disability or death (ex15 cept any compensation paid by such Sec16 retary to a former member of the Armed

17 Forces who is in receipt of retired or re18 tainer pay if such former member has

19 waived a portion of his retired pay in order

20 to receive such compensation); and

21 ‘‘(C) worker’s compensation benefits paid

22 under Federal or State law; but

23 ‘‘(2) do not include any payment—

24 ‘‘(A) by way of reimbursement or other25 wise, to defray expenses incurred by such indi-
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•S 840 IS

1 vidual in carrying out duties associated with his

2 employment; or

3 ‘‘(B) as allowances for members of the uni4 formed services payable pursuant to chapter 7

5 of title 37, United States Code, as prescribed

6 by the Secretaries concerned (defined by section

7 101(5) of such title) as necessary for the effi8 cient performance of duty.

9 ‘‘(i) In determining the amount of any moneys due

10 from, or payable by, the United States to any individual,

11 there shall be excluded amounts which—

12 ‘‘(1) are owed by such individual to the United

13 States;

14 ‘‘(2) are required by law to be, and are, de15 ducted from the remuneration or other payment in16 volved, including Federal employment taxes, and

17 fines and forfeitures ordered by court-martial;

18 ‘‘(3) are properly withheld for Federal, State,

19 or local income tax purposes, if the withholding of

20 such amounts is authorized or required by law and

21 if amounts withheld are not greater than would be

22 the case if such individual claimed all the depend23 ents that the individual was entitled to (the with24 holding of additional amounts pursuant to section

25 3402(i) of the Internal Revenue Code of 1986 may
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•S 840 IS

1 be permitted only when such individual presents evi2 dence of a tax obligation which supports the addi3 tional withholding);

4 ‘‘(4) are deducted as health insurance pre5 miums;

6 ‘‘(5) are deducted as normal retirement con7 tributions (not including amounts deducted for sup8 plementary coverage); or

9 ‘‘(6) are deducted as normal life insurance pre10 miums from salary or other remuneration for em11 ployment (not including amounts deducted for sup12 plementary coverage).

13 ‘‘(j) For purposes of this section—’’.

14 (b) TRANSFER OF SUBSECTIONS.—Subsections (a)

15 through (d) of section 462 (42 U.S.C. 662), are trans16 ferred and redesignated as paragraphs (1) through (4),

17 respectively, of section 459(j) (as added by subsection

18 (a)(6)), and the left margin of each of such paragraphs

19 (1) through (4) is indented 2 ems to the right of the left

20 margin of subsection (j) (as added by subsection (a)(6)).

21 (c) CONFORMING AMENDMENTS.—

22 (1) TO PART D OF TITLE IV.—Sections 461 and

23 462 (42 U.S.C. 661) are repealed.

24 (2) TO TITLE 5, UNITED STATES CODE.—Sec25 tion 5520a of title 5, United States Code, is amend-
209

•S 840 IS

1 ed, in subsections (h)(2) and (i), by striking ‘‘sec2 tions 459, 461, and 462 of the Social Security Act

3 (42 U.S.C. 659, 661, and 662)’’ each place it ap4 pears and inserting ‘‘section 459 of the Social Secu5 rity Act (42 U.S.C. 659)’’.

6 (d) MILITARY RETIRED AND RETAINER PAY.—Sec7 tion 1408 of title 10, United States Code, is amended—

8 (1) in subsection (a)—

9 (A) in paragraph (1)—

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

11 ‘‘and’’;

12 (ii) in subparagraph (C), by striking

13 the period and inserting ‘‘; and’’; and

14 (iii) by adding at the end the follow15 ing new subparagraph:

16 ‘‘(D) any administrative or judicial tribu17 nal of a State competent to enter orders for

18 support or maintenance (including a State

19 agency administering a State program under

20 part D of title IV of the Social Security Act).’’;

21 (B) in paragraph (2), by inserting ‘‘or a

22 court order for the payment of child support

23 not included in or accompanied by such a de24 cree or settlement,’’ before ‘‘which—’’;

25 (2) in subsection (d)—
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•S 840 IS

1 (A) in the heading, by inserting ‘‘(OR FOR

2 BENEFIT OF)’’ after ‘‘CONCERNED’’; and

3 (B) in paragraph (1), in the first sentence,

4 by inserting ‘‘(or for the benefit of such spouse

5 or former spouse to a State central collections

6 unit or other public payee designated by a

7 State, in accordance with part D of title IV of

8 the Social Security Act, as directed by court

9 order, or as otherwise directed in accordance

10 with such part D)’’ before ‘‘in an amount suffi11 cient’’; and

12 (3) by adding at the end the following new sub13 section:

14 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

15 involving a child support order against a member who has

16 never been married to the other parent of the child, the

17 provisions of this section shall not apply, and the case

18 shall be subject to the provisions of section 459 of the

19 Social Security Act.’’.

20 (e) EFFECTIVE DATE.—The amendments made by

21 this section shall become effective 6 months after the date

22 of the enactment of this Act.

23 SEC. 464. ENFORCEMENT OF CHILD SUPPORT OBLIGA24 TIONS OF MEMBERS OF THE ARMED FORCES.

25 (a) AVAILABILITY OF LOCATOR INFORMATION.—
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•S 840 IS

1 (1) MAINTENANCE OF ADDRESS INFORMA2 TION.—The Secretary of Defense shall establish a

3 centralized personnel locator service that includes

4 the address of each member of the Armed Forces

5 under the jurisdiction of the Secretary. Upon re6 quest of the Secretary of Transportation, addresses

7 for members of the Coast Guard shall be included in

8 the centralized personnel locator service.

9 (2) TYPE OF ADDRESS.—

10 (A) RESIDENTIAL ADDRESS.—Except as

11 provided in subparagraph (B), the address for

12 a member of the Armed Forces shown in the lo13 cator service shall be the residential address of

14 that member.

15 (B) DUTY ADDRESS.—The address for a

16 member of the Armed Forces shown in the loca17 tor service shall be the duty address of that

18 member in the case of a member—

19 (i) who is permanently assigned over20 seas, to a vessel, or to a routinely

21 deployable unit; or

22 (ii) with respect to whom the Sec23 retary concerned makes a determination

24 that the member’s residential address
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•S 840 IS

1 should not be disclosed due to national se2 curity or safety concerns.

3 (3) UPDATING OF LOCATOR INFORMATION.—

4 Not later than 30 days after a member listed in the

5 locator service establishes a new residential address

6 (or a new duty address, in the case of a member cov7 ered by paragraph (2)(B)), the Secretary concerned

8 shall update the locator service to indicate the new

9 address of the member.

10 (4) AVAILABILITY OF INFORMATION.—The Sec11 retary of Defense shall make information regarding

12 the address of a member of the Armed Forces listed

13 in the locator service available, on request, to the

14 Federal Parent Locator Service.

15 (b) FACILITATING GRANTING OF LEAVE FOR AT16 TENDANCE AT HEARINGS.—

17 (1) REGULATIONS.—The Secretary of each

18 military department, and the Secretary of Transpor19 tation with respect to the Coast Guard when it is

20 not operating as a service in the Navy, shall pre21 scribe regulations to facilitate the granting of leave

22 to a member of the Armed Forces under the juris23 diction of that Secretary in a case in which—

24 (A) the leave is needed for the member to

25 attend a hearing described in paragraph (2);
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•S 840 IS

1 (B) the member is not serving in or with

2 a unit deployed in a contingency operation (as

3 defined in section 101 of title 10, United States

4 Code); and

5 (C) the exigencies of military service (as

6 determined by the Secretary concerned) do not

7 otherwise require that such leave not be grant8 ed.

9 (2) COVERED HEARINGS.—Paragraph (1) ap10 plies to a hearing that is conducted by a court or

11 pursuant to an administrative process established

12 under State law, in connection with a civil action—

13 (A) to determine whether a member of the

14 Armed Forces is a natural parent of a child; or

15 (B) to determine an obligation of a mem16 ber of the Armed Forces to provide child sup17 port.

18 (3) DEFINITIONS.—For purposes of this sub19 section:

20 (A) The term ‘‘court’’ has the meaning

21 given that term in section 1408(a) of title 10,

22 United States Code.

23 (B) The term ‘‘child support’’ has the

24 meaning given such term in section 462 of the

25 Social Security Act (42 U.S.C. 662).
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•S 840 IS

1 (c) PAYMENT OF MILITARY RETIRED PAY IN COM2 PLIANCE WITH CHILD SUPPORT ORDERS.—Section 1408

3 of title 10, United States Code, as amended by section

4 463(d)(3), is amended—

5 (1) by redesignating subsections (i) and (j) as

6 subsections (j) and (k), respectively;

7 (2) by inserting after subsection (h) the follow8 ing 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 or an order of an adminis12 trative process established under State law for child sup13 port received by the Secretary concerned for the purposes

14 of this section be recent in relation to the date of receipt

15 by the Secretary.’’; and

16 (3) in subsection (d)—

17 (A) in paragraph (1), by inserting after

18 the first sentence the following: ‘‘In the case of

19 a spouse or former spouse who, pursuant to

20 section 402(a)(9) of the Social Security Act (42

21 U.S.C. 602(26)), assigns to a State the rights

22 of the spouse or former spouse to receive sup23 port, the Secretary concerned may make the

24 child support payments referred to in the pre-
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•S 840 IS

1 ceding sentence to that State in amounts con2 sistent with that assignment of rights.’’; and

3 (B) by adding at the end the following new

4 paragraph:

5 ‘‘(6) In the case of a court order or an order of an

6 administrative process established under State law for

7 which effective service is made on the Secretary concerned

8 on or after the date of the enactment of this paragraph

9 and which provides for payments from the disposable re10 tired pay of a member to satisfy the amount of child sup11 port set forth in the order, the authority provided in para12 graph (1) to make payments from the disposable retired

13 pay of a member to satisfy the amount of child support

14 set forth in a court order or an order of an administrative

15 process established under State law shall apply to payment

16 of any amount of child support arrearages set forth in that

17 order as well as to amounts of child support that currently

18 become due.’’.

19 SEC. 465. MOTOR VEHICLE LIENS.

20 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amend21 ed—

22 (1) by striking ‘‘(4)’’ and inserting ‘‘(4)(A)’’;

23 and

24 (2) by adding at the end the following new sub25 paragraphs:
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•S 840 IS

1 ‘‘(B) Procedures for placing liens for arrearages

2 of child support on motor vehicle titles of individuals

3 owing such arrearages equal to or exceeding 1

4 month of support (or other minimum amount set by

5 the State), under which—

6 ‘‘(i) any person owed such arrearages may

7 place such a lien;

8 ‘‘(ii) the State agency administering the

9 program under this part shall systematically

10 place such liens;

11 ‘‘(iii) expedited methods are provided for—

12 ‘‘(I) ascertaining the amount of ar13 rears;

14 ‘‘(II) affording the person owing the

15 arrears or other titleholder to contest the

16 amount of arrears or to obtain a release

17 upon fulfilling the support obligation;

18 ‘‘(iv) such a lien has precedence over all

19 other encumbrances on a vehicle title other than

20 a purchase money security interest; and

21 ‘‘(v) the individual or State agency owed

22 the arrears may execute on, seize, and sell the

23 property in accordance with State law.

24 ‘‘(C) Procedures under which—
217

•S 840 IS

1 ‘‘(i) liens arise by operation of law against

2 real and personal property for amounts of over3 due support owed by an absent parent who re4 sides or owns property in the State; and

5 ‘‘(ii) the State accords full faith and credit

6 to such liens which arise in another State, with7 out registration of the underlying order which is

8 the basis for such lien.’’.

9 SEC. 466. VOIDING OF FRAUDULENT TRANSFERS.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by

11 sections 401(a), 427(a), 431, and 434, is amended by add12 ing at the end the following new paragraph:

13 ‘‘(16) Procedures under which—

14 ‘‘(A) the State has in effect—

15 ‘‘(i) the Uniform Fraudulent Convey16 ance Act of 1981,

17 ‘‘(ii) the Uniform Fraudulent Trans18 fer Act of 1984, or

19 ‘‘(iii) another law, specifying indicia of

20 fraud which create a prima facie case that

21 a debtor transferred income or property to

22 avoid payment to a child support creditor,

23 which the Secretary finds affords com24 parable rights to child support creditors;

25 and
218

•S 840 IS

1 ‘‘(B) in any case in which the State knows

2 of a transfer by a child support debtor with re3 spect to which such a prima facie case is estab4 lished, the State must—

5 ‘‘(i) seek to void such transfer; or

6 ‘‘(ii) obtain a settlement in the best

7 interests of the child support creditor.’’.

8 SEC. 467. STATE LAW AUTHORIZING SUSPENSION OF LI9 CENSES.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by

11 sections 401(a), 427(a), 431, 434, and 466, is amended

12 by adding at the end the following new paragraph:

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

14 (and uses in appropriate cases) authority (subject to

15 appropriate due process safeguards) to withhold or

16 suspend, or to restrict the use of driver’s licenses,

17 professional and occupational licenses, and rec18 reational licenses of individuals owing overdue child

19 support or failing, after receiving appropriate notice,

20 to comply with subpoenas or warrants relating to

21 paternity or child support proceedings.’’.

22 SEC. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.

23 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

24 to read as follows:
219

•S 840 IS

1 ‘‘(7)(A) Procedures (subject to safeguards pur2 suant to subparagraph (B)) requiring the State to

3 report periodically to consumer reporting agencies

4 (as defined in section 603(f) of the Fair Credit Re5 porting Act (15 U.S.C. 1681a(f)) the name of any

6 absent parent who is delinquent in the payment of

7 support, and the amount of overdue support owed by

8 such parent.

9 ‘‘(B) Procedures ensuring that, in carrying out

10 subparagraph (A), information with respect to an

11 absent parent is reported—

12 ‘‘(i) only after such parent has been af13 forded all due process required under State law,

14 including notice and a reasonable opportunity

15 to contest the accuracy of such information;

16 and

17 ‘‘(ii) only to an entity that has furnished

18 evidence satisfactory to the State that the en19 tity is a consumer reporting agency.’’.

20 SEC. 469. EXTENDED STATUTE OF LIMITATION FOR COL21 LECTION OF ARREARAGES.

22 (a) IN GENERAL.—Section 466(a)(9) (42 U.S.C.

23 666(a)(9)) is amended—

24 (1) by redesignating subparagraphs (A), (B),

25 and (C) as clauses (i), (ii), and (iii), respectively;
220

•S 840 IS

1 (2) by striking ‘‘(9)’’ and inserting ‘‘(9)(A)’’;

2 and

3 (3) by adding at the end the following new sub4 paragraph:

5 ‘‘(B) Procedures under which the statute of

6 limitations on any arrearages of child support ex7 tends at least until the child owed such support is

8 30 years of age.’’.

9 (b) APPLICATION OF REQUIREMENT.—The amend10 ment made by this section shall not be interpreted to re11 quire any State law to revive any payment obligation

12 which had lapsed prior to the effective date of such State

13 law.

14 SEC. 470. CHARGES FOR ARREARAGES.

15 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

16 U.S.C. 666(a)), as amended by sections 401(a), 427(a),

17 431, 434, 466, and 467, is amended by adding at the end

18 the following new paragraph:

19 ‘‘(18) Procedures providing for the calculation

20 and collection of interest or penalties for arrearages

21 of child support, and for distribution of such interest

22 or penalties collected for the benefit of the child (ex23 cept where the right to support has been assigned to

24 the State).’’.
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•S 840 IS

1 (b) REGULATIONS.—The Secretary of Health and

2 Human Services shall establish by regulation a rule to re3 solve choice of law conflicts arising in the implementation

4 of the amendment made by subsection (a).

5 (c) CONFORMING AMENDMENT.—Section 454(21)

6 (42 U.S.C. 654(21)) is repealed.

7 (d) EFFECTIVE DATE.—The amendments made by

8 this section shall be effective with respect to arrearages

9 accruing on or after October 1, 1998.

10 SEC. 471. DENIAL OF PASSPORTS FOR NONPAYMENT OF

11 CHILD SUPPORT.

12 (a) HHS CERTIFICATION PROCEDURE.—

13 (1) SECRETARIAL RESPONSIBILITY.—Section

14 452 (42 U.S.C. 652), as amended by sections

15 415(a)(3) and 417, is amended by adding at the end

16 the following new subsection:

17 ‘‘(l)(1) If the Secretary receives a certification by a

18 State agency in accordance with the requirements of sec19 tion 454(29) that an individual owes arrearages of child

20 support in an amount exceeding $5,000 or in an amount

21 exceeding 24 months’ worth of child support, the Sec22 retary shall transmit such certification to the Secretary

23 of State for action (with respect to denial, revocation, or

24 limitation of passports) pursuant to section 471(b) of the

25 Interstate Child Support Responsibility Act of 1995.
222

•S 840 IS

1 ‘‘(2) The Secretary shall not be liable to an individual

2 for any action with respect to a certification by a State

3 agency under this section.’’.

4 (2) STATE CHILD SUPPORT ENFORCEMENT

5 AGENCY RESPONSIBILITY.—Section 454 (42 U.S.C.

6 654), as amended by sections 404(a), 405, 414(b),

7 422(a), and 423(a) is amended—

8 (A) by striking ‘‘and’’ at the end of para9 graph (28);

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

11 paragraph (29) and inserting ‘‘; and’’; and

12 (C) by adding after paragraph (29) the fol13 lowing new paragraph:

14 ‘‘(30) provide that the State agency will have in

15 effect a procedure (which may be combined with the

16 procedure for tax refund offset under section 464)

17 for certifying to the Secretary, for purposes of the

18 procedure under section 452(l) (concerning denial of

19 passports) determinations that individuals owe ar20 rearages of child support in an amount exceeding

21 $5,000 or in an amount exceeding 24 months’ worth

22 of child support, under which procedure—

23 ‘‘(A) each individual concerned is afforded

24 notice of such determination and the con-
223

•S 840 IS

1 sequences thereof, and an opportunity to con2 test the determination; and

3 ‘‘(B) the certification by the State agency

4 is furnished to the Secretary in such format,

5 and accompanied by such supporting docu6 mentation, as the Secretary may require.’’.

7 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

8 OF PASSPORTS.—

9 (1) IN GENERAL.—The Secretary of State,

10 upon certification by the Secretary of Health and

11 Human Services, in accordance with section 452(l)

12 of the Social Security Act, that an individual owes

13 arrearages of child support in excess of $5,000 or in

14 an amount exceeding 24 months’ worth of child sup15 port, shall refuse to issue a passport to such individ16 ual, and may revoke, restrict, or limit a passport is17 sued previously to such individual.

18 (2) LIMIT ON LIABILITY.—The Secretary of

19 State shall not be liable to an individual for any ac20 tion with respect to a certification by a State agency

21 under this section.

22 (c) EFFECTIVE DATE.—This section and the amend23 ments made by this section shall become effective October

24 1, 1996.
224

•S 840 IS

1 SEC. 472. INTERNATIONAL CHILD SUPPORT ENFORCE2 MENT.

3 (a) SENSE OF THE CONGRESS THAT THE UNITED

4 STATES SHOULD RATIFY THE UNITED NATIONS CON5 VENTION OF 1956.—It is the sense of the Congress that

6 the United States should ratify the United Nations Con7 vention of 1956.

8 (b) TREATMENT OF INTERNATIONAL CHILD SUP9 PORT CASES AS INTERSTATE CASES.—Section 454 (42

10 U.S.C. 654), as amended by sections 404(a), 405, 414(b),

11 422(a), 423(a), and 471(a)(2), is amended—

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

13 (29);

14 (2) by striking the period at the end of para15 graph (30) and inserting ‘‘; and’’; and

16 (3) by inserting after paragraph (30) the fol17 lowing new paragraph:

18 ‘‘(31) provide that the State must treat inter19 national child support cases in the same manner as

20 the State treats interstate child support cases under

21 the plan.’’.
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•S 840 IS

1 PART VIII—MEDICAL SUPPORT

2 SEC. 481. TECHNICAL CORRECTION TO ERISA DEFINITION

3 OF MEDICAL CHILD SUPPORT ORDER.

4 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em5 ployee Retirement Income Security Act of 1974 (29

6 U.S.C. 1169(a)(2)(B)) is amended—

7 (1) by striking ‘‘issued by a court of competent

8 jurisdiction’’;

9 (2) in clause (ii) by striking the period and in10 serting a comma; and

11 (3) by adding after clause (ii), the following

12 flush left language:

13 ‘‘if such judgment, decree, or order (I) is issued

14 by a court of competent jurisdiction or (II) is

15 issued by an administrative adjudicator and has

16 the force and effect of law under applicable

17 State law.’’.

18 (b) EFFECTIVE DATE.—

19 (1) IN GENERAL.—The amendments made by

20 this section shall become effective on the date of the

21 enactment of this Act.

22 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

23 JANUARY 1, 1996.—

24 (A) IN GENERAL.—Any amendment to a

25 plan required to be made by an amendment

26 made by this section shall not be required to be
226

•S 840 IS

1 made before the first plan year beginning on or

2 after January 1, 1996, if—

3 (i) during the period after the date

4 before the date of the enactment of this

5 Act and before such first plan year, the

6 plan is operated in accordance with the re7 quirements of the amendments made by

8 this section; and

9 (ii) such plan amendment applies

10 retroactively to the period after the date

11 before the date of the enactment of this

12 Act and before such first plan year.

13 (B) NO FAILURE FOR COMPLIANCE WITH

14 THIS PARAGRAPH.—A plan shall not be treated

15 as failing to be operated in accordance with the

16 provisions of the plan merely because it oper17 ates in accordance with this paragraph.

18 PART IX—ACCESS AND VISITATION PROGRAMS

19 SEC. 491. GRANTS TO STATES FOR ACCESS AND VISITATION

20 PROGRAMS.

21 Part D of title IV is amended by adding at the end

22 the following new section:

23 ‘‘GRANTS TO STATES FOR ACCESS AND VISITATION

24 PROGRAMS

25 ‘‘SEC. 469A. (a) PURPOSES; AUTHORIZATION OF AP26 PROPRIATIONS.—For purposes of enabling States to es-
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1 tablish and administer programs to support and facilitate

2 absent parents’ access to and visitation of their children,

3 by means of activities including mediation (both voluntary

4 and mandatory), counseling, education, development of

5 parenting plans, visitation enforcement (including mon6 itoring, supervision, and neutral drop-off and pickup), and

7 development of guidelines for visitation and alternative

8 custody arrangements, there are authorized to be appro9 priated $5,000,000 for each of fiscal years 1996 and

10 1997, and $10,000,000 for each succeeding fiscal year.

11 ‘‘(b) PAYMENTS TO STATES.—

12 ‘‘(1) IN GENERAL.—Each State shall be enti13 tled to payment under this section for each fiscal

14 year in an amount equal to its allotment under sub15 section (c) for such fiscal year, to be used for pay16 ment of 90 percent of State expenditures for the

17 purposes specified in subsection (a).

18 ‘‘(2) SUPPLEMENTARY USE.—Payments under

19 this section shall be used by a State to supplement

20 (and not to substitute for) expenditures by the

21 State, for activities specified in subsection (a), at a

22 level at least equal to the level of such expenditures

23 for fiscal year 1994.

24 ‘‘(c) ALLOTMENTS TO STATES.—
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1 ‘‘(1) IN GENERAL.—For purposes of subsection

2 (b), each State shall be entitled (subject to para3 graph (2)) to an amount for each fiscal year bearing

4 the same ratio to the amount authorized to be ap5 propriated pursuant to subsection (a) for such fiscal

6 year as the number of children in the State living

7 with only 1 biological parent bears to the total num8 ber of such children in all States.

9 ‘‘(2) MINIMUM ALLOTMENT.—Allotments to

10 States under paragraph (1) shall be adjusted as nec11 essary to ensure that no State is allotted less than

12 $50,000 for fiscal year 1996 or 1997, or $100,000

13 for any succeeding fiscal year.

14 ‘‘(d) FEDERAL ADMINISTRATION.—The program

15 under this section shall be administered by the Adminis16 tration for Children and Families.

17 ‘‘(e) STATE PROGRAM ADMINISTRATION.—

18 ‘‘(1) IN GENERAL.—Each State may administer

19 the program under this section directly or through

20 grants to or contracts with courts, local public agen21 cies, or non-profit private entities.

22 ‘‘(2) STATEWIDE PLAN PERMISSIBLE.—State

23 programs under this section may, but need not, be

24 statewide.
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1 ‘‘(3) EVALUATION.—States administering pro2 grams under this section shall monitor, evaluate,

3 and report on such programs in accordance with re4 quirements established by the Secretary.’’.

5 Subtitle B—Child Support Enforce6 ment and Assurance Demonstra7 tions

8 SEC. 494. CHILD SUPPORT ENFORCEMENT AND ASSURANCE

9 DEMONSTRATIONS.

10 (a) DEMONSTRATIONS AUTHORIZED.—

11 (1) INITIAL PROJECTS.—The Secretary of

12 Health and Human Services (hereafter in this sec13 tion referred to as the ‘‘Secretary’’) shall make

14 grants to three States for demonstrations under this

15 section to determine the effectiveness of programs

16 to provide assured levels of child support to custodial

17 parents of children for whom paternity and support

18 obligations have been established.

19 (b) DURATION OF PROJECTS.—

20 (1) TOTAL PROJECT PERIOD.—The Secretary

21 shall make grants to States for demonstrations

22 under this section beginning in fiscal year 1997, for

23 periods of 7 to 10 years.
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1 (2) PHASEDOWN PERIOD.—Each State imple2 menting a demonstration project under this section

3 shall—

4 (A) phase out activities under such dem5 onstration during the final two years of the

6 project; and

7 (B) obtain the Secretary’s approval, before

8 the beginning of such phasedown period, of a

9 plan for accomplishing such phasedown.

10 (c) CONSIDERATIONS IN SELECTION OF PROJECTS.—

11 (1) SCOPE.—Projects under this section may,

12 but need not, be statewide in scope.

13 (2) STATE ADMINISTRATION.—

14 (A) RESPONSIBLE STATE AGENCY.—A

15 State demonstration project under this section

16 shall be administered either by the State agency

17 administering the program under title IV–D of

18 the Social Security Act or the State department

19 of revenue and taxation.

20 (B) AUTOMATION.—The State agency de21 scribed in subparagraph (A) shall operate (or

22 have automated access to) the automated data

23 system required under section 454(16) of the

24 Social Security Act, and shall have adequate

25 automated capacity to carry out the project
231

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1 under this section (including the timely dis2 tribution of child support assurance benefits).

3 (3) CONTROLS.—At least one demonstration

4 project under this section shall include randomly as5 signed control groups.

6 (d) ELIGIBILITY.—

7 (1) IN GENERAL.—Child support assurance

8 payments under projects under this section shall be

9 available only to children for whom paternity and

10 support obligations have been established (or with

11 respect to whom a determination has been made

12 that efforts to establish paternity or support would

13 not be in the best interests of the child).

14 (2) FAMILIES WITH SHARED CUSTODY.—In

15 cases where both parents share custody of a child,

16 a parent and child shall not be eligible for benefits

17 under a demonstration under this section unless—

18 (A) a support order is in effect entitling

19 such parent to support payments in excess of

20 the minimum benefit; or

21 (B) the agency or tribunal which issued

22 the order certifies that the child support award

23 would be below such minimum benefit if either

24 parent was awarded sole custody and the guide25 lines under section 467 were applied.
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1 (3) STATE OPTION TO BASE ELIGIBILITY ON

2 NEED.—At State option, eligibility for benefits

3 under a demonstration under this section may be

4 limited to families with incomes and resources below

5 a standard of need established by the State.

6 (f) BENEFIT AMOUNTS.—

7 (1) RANGE OF BENEFIT LEVELS.—States shall

8 have flexibility to set annual benefit levels under

9 demonstrations under this section, provided that

10 (subject to the remaining provisions of this sub11 section) such levels—

12 (A) are not lower than $1,500 for a family

13 with one child or $3,000 for a family with four

14 or more children; and

15 (B) are not higher than $3,000 for a fam16 ily with one child or $4,500 for a family with

17 four or more children;

18 (2) INDEXING.—Annual benefit levels for each

19 fiscal year after fiscal year 1996 shall be indexed to

20 reflect the change in the Consumer Price Index.

21 (3) UNMATCHED EXCESS BENEFITS.—The Sec22 retary may permit States to pay benefits higher than

23 a maximum specified in paragraphs (1) and (2), but

24 Federal matching of such payments shall not be

25 available for benefits in excess of the amounts speci-
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1 fied in paragraph (1) (as adjusted in accordance

2 with paragraph (2)) by more than $25 per month.

3 (g) TREATMENT OF BENEFITS.—

4 (1) FOR PURPOSES OF TRANSITIONAL AID.—

5 The amount of aid otherwise payable to a family

6 under title IV–A of the Social Security Act shall be

7 reduced by an amount equal to the amount of child

8 support assurance paid to such family (or, at the

9 Secretary’s discretion, by a percentage of such

10 amount paid specified by the Secretary).

11 (2) TREATMENT OF BENEFITS FOR PURPOSES

12 OF OTHER BENEFIT PROGRAMS.—

13 (A) IN GENERAL.—Except as provided in

14 subparagraph (B), child support assurance paid

15 to a family shall be considered ordinary income

16 for purposes of determining eligibility for and

17 benefits under any Federal or State program.

18 (B) DEEMED TRANSITIONAL AID ELIGI19 BILITY.—At State option, a child (or family)

20 that is ineligible for aid under title IV–A of the

21 Social Security Act because of payments under

22 a demonstration under this section may be

23 deemed to be receiving such aid for purposes of

24 determining eligibility for other Federal and

25 State programs.
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1 (3) FOR TAX PURPOSES.—Child support assur2 ance which is paid to a family under this section and

3 is not reimbursed from a child support collection

4 from a noncustodial parent shall be considered ordi5 nary income for purposes of Federal and State tax

6 liability.

7 (h) WORK PROGRAM OPTION.—At the option of the

8 State grantee, a demonstration under this section may in9 clude a work program for unemployed noncustodial par10 ents of eligible children.

11 (i) AVAILABILITY OF APPROPRIATIONS FOR PAY12 MENTS TO STATES.—

13 (1) STATE ENTITLEMENT TO IV–D FUNDING.—

14 A State administering an approved demonstration

15 under this section in a calendar quarter shall be en16 titled to payments for such quarter, pursuant to sec17 tion 455 of the Social Security Act for the Federal

18 share of reasonable and necessary expenditures (in19 cluding expenditures for benefit payments and for

20 associated administrative costs) under such project,

21 in an amount (subject to paragraphs (2) and (3))

22 equal to—

23 (A) with respect to that portion of such ex24 penditures equal to the reduction of expendi25 tures under title IV–A of the Social Security
235

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1 Act pursuant to subsection (g)(1), a percentage

2 equal to the percentage that would have been

3 paid if such expenditures had been made under

4 such title IV–A; and

5 (B) 90 percent of the remainder of such

6 expenditures.

7 (2) STATES WITH LOW TRANSITIONAL AID BEN8 EFITS.—In the case of a State in which benefit lev9 els under title IV–A of the Social Security Act are

10 below the national median for such payments, the

11 Secretary may elect to provide 90 percent Federal

12 matching of a portion of expenditures under a

13 project under this section that would otherwise be

14 matched at the rate specified in paragraph (1)(A).

15 (3) FUNDING LIMITS; PRO RATA REDUCTIONS

16 OF STATE MATCHING.—

17 (A) FUNDS AVAILABLE.—There shall be

18 available to the Secretary, from amounts appro19 priated to carry our part D of title IV of the

20 Social Security Act, for purposes of carrying

21 out demonstrations under this section, amounts

22 not to exceed—

23 (i) $27,000,000 for fiscal year 1997;

24 (ii) $55,000,000 for fiscal year 1998;
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•S 840 IS

1 (iii) $70,000,000 for each of fiscal

2 years 1999 through 2002; and

3 (iv) $55,000,000 for fiscal year 2003.

4 (B) PRO RATA REDUCTIONS.—The Sec5 retary shall make pro rata reductions in the

6 amounts otherwise payable to States under this

7 section as necessary to comply with the funding

8 limitation specified in subparagraph (A).

9 (j) DISTRIBUTION OF CHILD SUPPORT COLLEC10 TIONS.—Notwithstanding section 457 of the Social Secu11 rity Act, support payments collected from the noncustodial

12 parent of a child receiving (or who has received) child sup13 port assurance payments under this section shall be dis14 tributed as follows:

15 (1) first, amounts equal to the total support

16 owed for such month shall be paid to the family;

17 (2) second, from any remainder, amounts owed

18 to the State on account of child support assurance

19 payments to the family shall be paid to the State

20 (with appropriate reimbursement to the Federal

21 Government of its share to such payments);

22 (3) third, from any remainder, arrearages of

23 support owed to the family shall be paid to the fam24 ily; and
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•S 840 IS

1 (4) fourth, from any remainder, amounts owed

2 to the State on account of current or past payments

3 of aid under title IV–A of the Social Security Act

4 shall be paid to the State (with appropriate reim5 bursement to the Federal Government of its share of

6 such payments).

7 (k) EVALUATIONS AND REPORTS.—

8 (1) STATE EVALUATIONS.—Each State admin9 istering a demonstration project under this section

10 shall—

11 (A) provide for ongoing and retrospective

12 evaluation of the project, meeting such condi13 tions and standards as the Secretary may re14 quire; and

15 (B) submit to the Secretary such reports

16 (at such times, in such format, and containing

17 such information) as the Secretary may require,

18 including at least an interim report not later

19 than 90 days after the end of the fourth year

20 of the project, and a final report not later than

21 one year after the completion of the project,

22 which shall include information on and analysis

23 of the effect of the project with respect to—

24 (i) the economic circumstances of both

25 noncustodial and custodial parents;
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•S 840 IS

1 (ii) the rate of compliance by

2 noncustodial parents with support orders;

3 (iii) work-force participation by both

4 custodial and noncustodial parents;

5 (iv) the need for or amount of transi6 tional aid to families with needy children

7 under title IV–A of the Social Security

8 Act;

9 (v) paternity establishment rates; and

10 (vi) any other matters the Secretary

11 may specify.

12 (2) REPORTS TO CONGRESS.—The Secretary

13 shall, on the basis of reports received from States

14 administering projects under this section, make the

15 following reports, containing an assessment of the

16 effectiveness of the projects and any recommenda17 tions the Secretary considers appropriate:

18 (A) an interim report, not later than 6

19 months following receipt of the interim State

20 reports required by paragraph (1)(B); and

21 (B) a final report, not later than 6 months

22 following receipt of the final State reports re23 quired under such paragraph.

24 (3) FUNDING FOR COSTS TO SECRETARY.—

25 There are authorized to be appropriated
239

•S 840 IS

1 $10,000,000 for fiscal year 1997, to remain avail2 able until expended, for payment of the cost of eval3 uations by the Secretary of the demonstrations car4 ried out under this section.

5 Subtitle C—Demonstration Proj6 ects To Provide Services to Cer7 tain Noncustodial Parents

8 SEC. 495. ESTABLISHMENT OF DEMONSTRATION PROJECTS

9 FOR PROVIDING SERVICES TO CERTAIN

10 NONCUSTODIAL PARENTS.

11 (a) IN GENERAL.—The Secretary of Health and

12 Human Services (hereafter in this section referred to as

13 the ‘‘Secretary’’) shall make grants to not more than 5

14 States to conduct demonstration projects in accordance

15 with subsection (b) for the purpose of providing services

16 to noncustodial parents who are unable to meet child

17 support obligations due to unemployment or

18 underemployment.

19 (b) REQUIREMENTS OF PROJECT.—A project con20 ducted in accordance with this subsection shall provide

21 noncustodial parents who are unable to meet child support

22 obligations due to unemployment or underemployment

23 with the following services:

24 (1) Assessment of job readiness.
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1 (2) Referrals to job training and education pro2 grams.

3 (3) Court monitored job search.

4 (4) Court ordered participation in State work

5 programs or other specialized employment programs.

6 (5) Technical assistance and information and

7 interpretation of legal proceedings.

8 (6) Information dissemination and referrals to

9 other available services.

10 (7) Other services determined by the State.

11 (c) APPLICATIONS.—Each State desiring to conduct

12 a demonstration project under this section shall prepare

13 and submit to the Secretary an application at such time,

14 in such manner, and containing such information as the

15 Secretary may require.

16 (d) REPORTS.—A State that conducts a demonstra17 tion project under this section shall prepare and submit

18 to the Secretary annual and final reports in such form

19 and containing such information as the Secretary may

20 require.

21 (e) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated $1,000,000 for each of

23 fiscal years 1997 through 1999 for the purpose of con24 ducting demonstration projects in accordance with this

25 section.
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1 Subtitle D—Severability

2 SEC. 496. SEVERABILITY.

3 If any provision of subtitle A or the application there4 of to any person or circumstance is held invalid, the inva5 lidity shall not affect other provisions or applications of

6 subtitle A which can be given effect without regard to the

7 invalid provision or application, and to this end the provi8 sions of subtitle A shall be severable.

9 TITLE V—TRANSITIONAL

10 MEDICAID

11 SEC. 501. STATE OPTION TO EXTEND TRANSITIONAL MED12 ICAID BENEFITS.

13 (a) OPTIONAL EXTENSION OF MEDICAID ENROLL14 MENT FOR FORMER TRANSITIONAL AID PROGRAM RE15 CIPIENTS FOR 1 ADDITIONAL YEAR.—

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

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

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

19 may provide that the State may offer to each such

20 family the option of extending coverage under this

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

22 periods, in the same manner and under the same

23 conditions as the option of extending coverage under

24 this subsection for the first succeeding 6-month

25 period.’’.
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1 (2) CONFORMING AMENDMENTS.—

2 (A) IN GENERAL.—Section 1925 (42

3 U.S.C. 1396r–6) is amended—

4 (i) in subsection (b)—

5 (I) in the heading, by striking

6 ‘‘EXTENSION’’ and inserting ‘‘EXTEN7 SIONS’’;

8 (II) in the heading of paragraph

9 (1), by striking ‘‘REQUIREMENT’’ and

10 inserting ‘‘IN GENERAL’’;

11 (III) in paragraph (2)(B)(ii)—

12 (aa) in the heading, by

13 striking ‘‘PERIOD’’ and inserting

14 ‘‘PERIODS’’; and

15 (bb) by striking ‘‘in the pe16 riod’’ and inserting ‘‘in each of

17 the 6-month periods’’;

18 (IV) in paragraph (3)(A), by

19 striking ‘‘the 6-month period’’ and in20 serting ‘‘any 6-month period’’;

21 (V) in paragraph (4)(A), by

22 striking ‘‘the extension period’’ and

23 inserting ‘‘any extension period’’; and

24 (VI) in paragraph (5)(D)(i), by

25 striking ‘‘is a 3-month period’’ and all
243

•S 840 IS

1 that follows and inserting the follow2 ing: ‘‘is, with respect to a particular

3 6-month additional extension period

4 provided under this subsection, a 3-

5 month period beginning with the 1st

6 or 4th month of such extension pe7 riod.’’; and

8 (ii) by striking subsection (f).

9 (B) FAMILY SUPPORT ACT.—Section

10 303(f)(2) of the Family Support Act of 1988

11 (42 U.S.C. 602 note) is amended—

12 (i) by striking ‘‘(A)’’; and

13 (ii) by striking subparagraphs (B) and

14 (C).

15 (b) EFFECTIVE DATE.—

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by subsection (a)

18 shall apply to calendar quarters beginning on or

19 after October 1, 1996, without regard to whether

20 final regulations to carry out such amendments have

21 been promulgated by such date.

22 (2) WHEN STATE LEGISLATION IS REQUIRED.—

23 In the case of a State plan for medical assistance

24 under title XIX of the Social Security Act which the

25 Secretary of Health and Human Services determines
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•S 840 IS

1 requires State legislation (other than legislation ap2 propriating funds) in order for the plan to meet the

3 additional requirements imposed by the amendments

4 made by subsection (a), the State plan shall not be

5 regarded as failing to comply with the requirements

6 of such title solely on the basis of its failure to meet

7 these additional requirements before the first day of

8 the first calendar quarter beginning after the close

9 of the first regular session of the State legislature

10 that begins after the date of the enactment of this

11 Act. For purposes of the previous sentence, in the

12 case of a State that has a 2-year legislative session,

13 each year of such session shall be deemed to be a

14 separate regular session of the State legislature.

15 TITLE VI—TEENAGE

16 PREGNANCY PREVENTION

17 SEC. 601. SUPERVISED LIVING ARRANGEMENTS FOR MI18 NORS.

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

20 section 101, is amended by adding at the end the following

21 new paragraph:

22 ‘‘(13) RESIDENCY REQUIREMENT FOR TEENAGE

23 PARENTS.—The State plan shall provide that—

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

25 subparagraph (B)(i), in the case of any individ-
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1 ual who is under the age of 18 and has never

2 married, and who has a dependent child in his

3 or her care (or is pregnant and is eligible for

4 transitional aid to families with needy children

5 under the State plan)—

6 ‘‘(i) such individual may receive tran7 sitional aid to families with needy children

8 under the plan for the individual and such

9 child (or for the individual if the individual

10 is a pregnant woman) only if such individ11 ual and child (or such pregnant woman)

12 reside in a place of residence maintained

13 by a parent, legal guardian, or other adult

14 relative of such individual as such parent’s,

15 guardian’s, or adult relative’s own home;

16 and

17 ‘‘(ii) such aid (where possible) shall be

18 provided to the parent, legal guardian, or

19 other adult relative on behalf of such indi20 vidual and child.

21 ‘‘(B) EXCEPTION.—

22 ‘‘(i) ASSISTANCE IN LOCATING ADULT23 SUPERVISED LIVING ARRANGEMENT.—In

24 the case of an individual described in

25 clause (ii)—
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1 ‘‘(I) the State agency shall assist

2 such individual in locating an appro3 priate adult-supervised supportive liv4 ing arrangement taking into consider5 ation the needs and concerns of the

6 individual, unless the State agency de7 termines that the individual’s current

8 living arrangement is appropriate, and

9 thereafter shall require that the indi10 vidual (and child, if any) reside in

11 such living arrangement as a condi12 tion of the continued receipt of aid

13 under the plan (or in an alternative

14 appropriate arrangement, should cir15 cumstances change and the current

16 arrangement cease to be appropriate),

17 or

18 ‘‘(II) if the State agency is un19 able, after making diligent efforts, to

20 locate any such appropriate living ar21 rangement, it shall provide for com22 prehensive case management, monitor23 ing, and other social services consist24 ent with the best interests of the indi-
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•S 840 IS

1 vidual (and child) while living inde2 pendently.

3 ‘‘(ii) INDIVIDUAL DESCRIBED.—For

4 purposes of clause (i), an individual is de5 scribed in this clause if—

6 ‘‘(I) such individual has no par7 ent or legal guardian of his or her

8 own who is living and whose where9 abouts are known;

10 ‘‘(II) no living parent or legal

11 guardian of such individual allows the

12 individual to live in the home of such

13 parent or guardian;

14 ‘‘(III) the State agency deter15 mines that the physical or emotional

16 health of such individual or any de17 pendent child of the individual would

18 be jeopardized if such individual and

19 such dependent child lived in the same

20 residence with such individual’s own

21 parent or legal guardian; or

22 ‘‘(IV) the State agency otherwise

23 determines (in accordance with regu24 lations issued by the Secretary) that it

25 is in the best interest of the depend-
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1 ent child to waive the requirement of

2 subparagraph (A) with respect to such

3 individual.’’.

4 SEC. 602. REINFORCING FAMILIES.

5 (a) IN GENERAL.—Title XX (42 U.S.C. 1397–

6 1397e) is amended by adding at the end the following new

7 section:

8 ‘‘SEC. 2008. SECOND CHANCE HOUSES.

9 ‘‘(a) ENTITLEMENT.—

10 ‘‘(1) IN GENERAL.—In addition to any payment

11 under sections 2002 and 2007, beginning with fiscal

12 year 1996, each State shall be entitled to funds

13 under this section for each fiscal year for the estab14 lishment, operation, and support of second chance

15 houses for custodial parents under the age of 19 and

16 their children.

17 ‘‘(2) PAYMENT TO STATES.—

18 ‘‘(A) IN GENERAL.—Each State shall be

19 entitled to payment under this section for each

20 fiscal year in an amount equal to its allotment

21 (determined in accordance with subsection (b))

22 for such fiscal year, to be used by such State

23 for the purposes set forth in paragraph (1).

24 ‘‘(B) TRANSFERS OF FUNDS.—The Sec25 retary shall make payments in accordance with
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1 section 6503 of title 31, United States Code, to

2 each State from its allotment for use under this

3 title.

4 ‘‘(C) USE.—Payments to a State from its

5 allotment for any fiscal year must be expended

6 by the State in such fiscal year or in the suc7 ceeding fiscal year.

8 ‘‘(D) TECHNICAL ASSISTANCE.—A State

9 may use a portion of the amounts described in

10 subparagraph (A) for the purpose of purchasing

11 technical assistance from public or private enti12 ties if the State determines that such assistance

13 is required in developing, implementing, or ad14 ministering the program funded under this sec15 tion.

16 ‘‘(3) SECOND CHANCE HOUSES.—For purposes

17 of this section, the term ‘second chance houses’

18 means an entity that provides custodial parents

19 under the age of 19 and their children with a sup20 portive and supervised living arrangement in which

21 such parents would be required to learn parenting

22 skills, including child development, family budgeting,

23 health and nutrition, and other skills to promote

24 their long-term economic independence and the well25 being of their children. A second chance house may
250

•S 840 IS

1 also serve as a network center for other supportive

2 services that might be available in the community.

3 ‘‘(b) ALLOTMENT.—

4 ‘‘(1) CERTAIN JURISDICTIONS.—The allotment

5 for any fiscal year to each of the jurisdictions of

6 Puerto Rico, Guam, the Virgin Islands, American

7 Samoa, and the Northern Mariana Islands shall be

8 an amount which bears the same ratio to the

9 amount specified under paragraph (3) as the allot10 ment that the jurisdiction receives under section

11 2003(a) for the fiscal year bears to the total amount

12 specified for such fiscal year under section 2003(c).

13 ‘‘(2) OTHER STATES.—The allotment for any

14 fiscal year for each State other than the jurisdictions

15 of Puerto Rico, Guam, the Virgin Islands, American

16 Samoa, and the Northern Mariana Islands shall be

17 an amount which bears the same ratio to—

18 ‘‘(A) the amount specified under para19 graph (3); reduced by

20 ‘‘(B) the total amount allotted to those ju21 risdictions for that fiscal year under paragraph

22 (1),

23 as the allotment that the State receives under sec24 tion 2003(b) for the fiscal year bears to the total
251

•S 840 IS

1 amount specified for such fiscal year under section

2 2003(c).

3 ‘‘(3) AMOUNT SPECIFIED.—The amount speci4 fied for purposes of paragraphs (1) and (2) shall be

5 $40,000,000 for fiscal year 1996 and each subse6 quent fiscal year.

7 ‘‘(c) LOCAL INVOLVEMENT.—Each State shall seek

8 local involvement from the community in any area in

9 which a second chance house receiving funds pursuant to

10 this section is to be established. In determining criteria

11 for targeting funds received under this section, each State

12 shall evaluate the community’s commitment to the estab13 lishment and planning of the house.

14 ‘‘(d) LIMITATIONS ON THE USE OF FUNDS.—

15 ‘‘(1) CONSTRUCTION.—Except as provided in

16 paragraph (2), funds made available under this sec17 tion may not be used by the State, or any other per18 son with which the State makes arrangements to

19 carry out the purposes of this section, for the pur20 chase or improvement of land, or the purchase, con21 struction, or permanent improvement (other than

22 minor remodeling) of any building or other facility.

23 ‘‘(2) WAIVER.—The Secretary may waive the

24 limitation contained in paragraph (1) upon the

25 State’s request for such a waiver if the Secretary
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1 finds that the request describes extraordinary cir2 cumstances to justify the waiver and that permitting

3 the waiver will contribute to the State’s ability to

4 carry out the purposes of this section.

5 ‘‘(e) TREATMENT OF INDIAN TRIBES.—

6 ‘‘(1) IN GENERAL.—An Indian tribe may apply

7 to the Secretary to establish, operate, and support

8 adult-supervised group homes for custodial parents

9 under the age of 19 and their children in accordance

10 with an application procedure to be determined by

11 the Secretary. Except as otherwise provided in this

12 subsection, the provisions of this section shall apply

13 to Indian tribes receiving funds under this sub14 section in the same manner and to the same extent

15 as the other provisions of this section apply to

16 States.

17 ‘‘(2) ALLOTMENT.—If the Secretary approves

18 an Indian tribe’s application, the Secretary shall

19 allot to such tribe for a fiscal year an amount which

20 the Secretary determines is the Indian tribe’s fair

21 and equitable share of the amount specified under

22 paragraph (3) for all Indian tribes with applications

23 approved under this subsection (based on allotment

24 factors to be determined by the Secretary). The Sec25 retary shall determine a minimum allotment amount
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1 for all Indian tribes with applications approved

2 under this subsection. Each Indian tribe with an ap3 plication approved under this subsection shall be en4 titled to such minimum allotment.

5 ‘‘(3) AMOUNT SPECIFIED.—The amount speci6 fied under this paragraph for all Indian tribes with

7 applications approved under this subsection is

8 $5,000,000 for fiscal year 1996 and each subsequent

9 fiscal year.

10 ‘‘(4) INDIAN TRIBE DEFINED.—For purposes of

11 this section, the term ‘Indian tribe’ means any In12 dian tribe, band, nation, pueblo, or other organized

13 group or community, including any Alaska Native

14 entity which is recognized as eligible for the special

15 programs and services provided by the United States

16 to Indian tribes because of their status as Indians.’’.

17 (b) RECEIPT OF PAYMENTS BY SECOND CHANCE

18 HOUSES.—Section 402(a)(13)(A)(ii), as added by section

19 601, is amended by striking ‘‘or other adult relative’’ and

20 inserting ‘‘other adult relative, or second chance house re21 ceiving funds under section 2008’’.

22 (c) RECOMMENDATIONS ON USAGE OF GOVERNMENT

23 SURPLUS PROPERTY.—Not later than 6 months after the

24 date of the enactment of this Act, after consultation with

25 the Secretary of Defense, the Secretary of Housing and
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1 Urban Development, and the Administrator of the General

2 Services Administration, the Secretary of Health and

3 Human Services shall submit recommendations to the

4 Congress on the extent to which surplus properties of the

5 United States Government may be used for the establish6 ment of second chance houses receiving funds under sec7 tion 2008 of the Social Security Act.

8 SEC. 603. REQUIRED COMPLETION OF HIGH SCHOOL OR

9 OTHER TRAINING FOR TEENAGE PARENTS.

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

11 602(a)), as amended by sections 101, 601, and 602, is

12 amended by adding at the end the following new para13 graph:

14 ‘‘(14) EDUCATIONAL REQUIREMENTS.—The

15 State plan shall provide the following educational re16 quirements:

17 ‘‘(A) CUSTODIAL PARENT UNDER 19

18 YEARS.—In the case of a custodial parent who

19 has not attained 19 years of age, has not suc20 cessfully completed a high-school education (or

21 its equivalent), and is required to participate in

22 the program (including an individual who would

23 otherwise be exempt from participation in the

24 program solely by reason of clause (i), (ii), or
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1 (iii) of paragraph (11)(B)), the State agency

2 shall—

3 ‘‘(i) require such parent to participate

4 in—

5 ‘‘(I) educational activities di6 rected toward the attainment of a

7 high school diploma or its equivalent

8 on a full-time basis (as defined by the

9 educational provider); or

10 ‘‘(II) an alternative educational

11 or training program (that has been

12 approved by the Secretary) on a full13 time basis (as defined by the pro14 vider); and

15 ‘‘(ii) provide child care in accordance

16 with paragraph (5) with respect to the

17 family.

18 ‘‘(B) CUSTODIAL PARENT 19 YEARS OLD.—

19 ‘‘(i) IN GENERAL.—To the extent that

20 the program is available in the political

21 subdivision involved and State resources

22 otherwise permit, the State agency shall

23 require a custodial parent who would be

24 described in subparagraph (A), if that par-
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1 ent is 19 years of age, to participate in an

2 educational activity described in clause (ii).

3 ‘‘(ii) TYPE OF EDUCATIONAL ACTIV4 ITY.—The State agency may require a par5 ent described in clause (i)—

6 ‘‘(I) to participate in educational

7 activities directed toward the attain8 ment of a high school diploma or its

9 equivalent on a full-time basis (as de10 fined by the educational provider); or

11 ‘‘(II) to participate in training or

12 work activities in lieu of the edu13 cational activities under subclause (I)

14 if such parent fails to make good

15 progress in successfully completing

16 such educational activities or if it is

17 determined (prior to any assignment

18 of the individual to such educational

19 activities) pursuant to an educational

20 assessment that participation in such

21 educational activities is inappropriate

22 for such parent.

23 ‘‘(C) EDUCATIONAL ACTIVITY CONSIDERED

24 PARTICIPATION IN PROGRAM.—
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1 ‘‘(i) IN GENERAL.—If the parent or

2 other caretaker relative or any dependent

3 child in the family is attending in good

4 standing an institution of higher education

5 (as defined in section 481(a) of the Higher

6 Education Act of 1965 (20 U.S.C. 1088),

7 or a school or course of vocational or tech8 nical training (not less than half time) con9 sistent with the individual’s employment

10 goals, and is making satisfactory progress

11 in such institution, school, or course, at

12 the time he or she would otherwise com13 mence participation in the program under

14 this section, such attendance may, at the

15 State’s option, constitute satisfactory par16 ticipation in the program (by that care17 taker or child) so long as it continues and

18 is consistent with such goals.

19 ‘‘(ii) ADDITIONAL REQUIREMENTS.—

20 In addition to the requirements described

21 in clause (i)—

22 ‘‘(I) any other activities in which

23 an individual described in this sub24 paragraph participates may not be

25 permitted to interfere with the school
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•S 840 IS

1 or training described in such clause;

2 and

3 ‘‘(II) the costs of such school or

4 training shall not constitute a feder5 ally reimbursable expense for purposes

6 of section 403, however the costs of

7 day care, transportation, and other

8 services which are necessary (as deter9 mined by the State agency) for such

10 attendance in accordance with para11 graph (5) are eligible for Federal re12 imbursement.’’.

13 (b) STATE OPTION TO PROVIDE ADDITIONAL INCEN14 TIVES AND PENALTIES TO ENCOURAGE TEENAGE PAR15 ENTS TO COMPLETE HIGH SCHOOL AND PARTICIPATE IN

16 PARENTING ACTIVITIES.—

17 (1) STATE PLAN.—Section 402(a)(14)(A), as

18 added by subsection (a), is amended by adding at

19 the end the following new subparagraph:

20 ‘‘(D) INCENTIVES AND PENALTY PRO21 GRAM.—At the option of the State, some or all

22 custodial parents and pregnant women who

23 have not attained 19 years of age (or at the

24 State’s option, 21 years of age) and who are re25 ceiving aid under this part shall be required to
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1 participate in a program of monetary incentives

2 and penalties for participation and completion

3 of a high school education (or equivalent) and

4 in parenting activities, consistent with sub5 section (f);’’.

6 (2) ELEMENTS OF PROGRAM.—Section 402 (42

7 U.S.C. 602), as amended by section 101, is amended

8 by adding at the end the following new subsection:

9 ‘‘(f) INCENTIVES AND PENALTIES PROGRAM.—

10 ‘‘(1) IN GENERAL.—If a State opts to conduct

11 a program of incentives and penalties described in

12 subsection (a)(14)(D), the State shall amend its

13 State plan—

14 ‘‘(A) to specify the one or more political

15 subdivisions (or other clearly defined geographic

16 area or areas) in which the State will conduct

17 the program; and

18 ‘‘(B) to describe its program in detail.

19 ‘‘(2) PROGRAM DESCRIBED.—A program under

20 this subsection—

21 ‘‘(A) may, at the option of the State, re22 quire full-time participation by custodial par23 ents and pregnant women to whom the program

24 applies in secondary school or equivalent edu25 cational activities, or participation in a course
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•S 840 IS

1 or program leading to a parenting skills certifi2 cate found appropriate by the State agency or

3 parenting education activities (or any combina4 tion of such activities and secondary education);

5 ‘‘(B) shall require that the needs of such

6 custodial parents and pregnant women shall be

7 reviewed and the program will ensure that, ei8 ther in the initial development or revision of

9 such individual’s employability plan, there will

10 be included a description of the services that

11 will be provided to the individual and the way

12 in which the program and service providers will

13 coordinate with the educational or skills train14 ing activities in which the individual is partici15 pating;

16 ‘‘(C) shall provide monetary incentives for

17 more than minimally acceptable performance of

18 required educational activities; and

19 ‘‘(D) shall provide penalties (which may be

20 those allowed by subsection (a)(1)(H) or other

21 monetary penalties that the State finds will bet22 ter achieve the objectives of the program) for

23 less than minimally acceptable performance of

24 required activities.
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1 ‘‘(3) MONETARY INCENTIVE PAYABLE TO PAR2 ENT.—When a monetary incentive is payable be3 cause of the more than minimally acceptable per4 formance of required educational activities by a cus5 todial parent, the incentive shall be paid directly to

6 such parent, regardless of whether the State agency

7 makes payment of aid under the State plan directly

8 to such parent.

9 ‘‘(4) TREATMENT OF MONETARY INCENTIVE.—

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

11 part, monetary incentives paid under this sub12 section shall be considered transitional aid to

13 families with needy children.

14 ‘‘(B) TREATMENT UNDER OTHER FED15 ERAL PROGRAMS.—For purposes of any other

16 Federal or federally-assisted program based on

17 need, no monetary incentive paid under this

18 subsection shall be considered income in deter19 mining a family’s eligibility for or amount of

20 benefits under such program, and if aid is re21 duced by reason of a penalty under this sub22 section, such other program shall treat the fam23 ily involved as if no such penalty has been

24 applied.
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1 ‘‘(5) INFORMATION PROVIDED TO SEC2 RETARY.—The State agency shall from time to time

3 provide such information with respect to the State

4 operation of the program as the Secretary may

5 request.’’.

6 SEC. 604. TARGETING YOUTH AT RISK OF TEENAGE PREG7 NANCY.

8 (a) IN GENERAL.—Section 402 of the Social Security

9 Act (42 U.S.C. 602), as amended by sections 101 and

10 603, is amended by adding at the end the following new

11 subsection:

12 ‘‘(g) REDUCTION IN TEENAGE PREGNANCY.—

13 ‘‘(1) IN GENERAL.—Each State agency may, to

14 the extent it determines resources are available, pro15 vide for the operation of projects to reduce teenage

16 pregnancy. Such projects shall be operated by eligi17 ble entities that have submitted applications de18 scribed in paragraph (3) that have been approved in

19 accordance with paragraph (4).

20 ‘‘(2) ELIGIBLE ENTITY.—For purposes of this

21 subsection, the term ‘eligible entity’ includes State

22 agencies, local agencies, publicly supported organiza23 tions, private nonprofit organizations, and consortia

24 of such entities.
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1 ‘‘(3) APPLICATION DESCRIBED.—An application

2 described in this paragraph shall—

3 ‘‘(A) describe the project;

4 ‘‘(B) include an endorsement of the project

5 by the chief elected official of the jurisdiction in

6 which the project is to be located;

7 ‘‘(C) demonstrate strong local commitment

8 and local involvement in the planning and im9 plementation of the project; and

10 ‘‘(D) be submitted in such manner and

11 containing such information as the Secretary

12 may require.

13 ‘‘(4) APPROVAL OF APPLICATION.—

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), the chief executive officer of a State

16 may approve an application under this para17 graph based on selection criteria to be deter18 mined by such chief executive officer.

19 ‘‘(B) PREFERENCES IN APPROVING

20 PROJECTS.—Preference in approving a project

21 shall be accorded to projects that target—

22 ‘‘(i) both young men and women;

23 ‘‘(ii) areas with high teenage preg24 nancy rates; or
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•S 840 IS

1 ‘‘(iii) areas with a high incidence of

2 individuals receiving transitional aid to

3 families with needy children.

4 ‘‘(5) INDIAN TRIBES.—

5 ‘‘(A) IN GENERAL.—An Indian tribe may

6 apply to the Secretary to provide for the oper7 ation of projects to reduce teenage pregnancy in

8 accordance with an application procedure to be

9 determined by the Secretary. Except as other10 wise provided in this subsection, the provisions

11 of this section shall apply to Indian tribes re12 ceiving funds under this subsection in the same

13 manner and to the same extent as the other

14 provisions of this section apply to States.

15 ‘‘(B) INDIAN TRIBE DEFINED.—For pur16 poses of this subsection, the term ‘Indian tribe’

17 means any Indian tribe, band, nation, pueblo,

18 or other organized group or community, includ19 ing any Alaska Native entity which is recog20 nized as eligible for the special programs and

21 services provided by the United States to In22 dian tribes because of their status as Indians.

23 ‘‘(6) TERM OF PROJECTS.—A project conducted

24 under this subsection shall be conducted for not less

25 than 3 years.
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1 ‘‘(7) STUDY.—

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

3 conduct a study in accordance with subpara4 graph (B) to determine the relative effective5 ness of the different approaches for preventing

6 teenage pregnancy utilized in the projects con7 ducted under this subsection.

8 ‘‘(B) STUDY REQUIREMENTS.—The study

9 required under subparagraph (A) shall—

10 ‘‘(i) be based on data gathered from

11 projects conducted in 5 States chosen by

12 the Secretary from among the States in

13 which projects under this subsection are

14 operated;

15 ‘‘(ii) use specific outcome measures

16 (determined by the Secretary) to test the

17 effectiveness of the projects;

18 ‘‘(iii) use experimental and control

19 groups (to the extent possible) that are

20 composed of a random sample of partici21 pants in the projects; and

22 ‘‘(iv) be conducted in accordance with

23 an experimental design determined by the

24 Secretary to result in a comparable design

25 among all projects.
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1 ‘‘(C) INTERIM AND ANNUAL REPORTS.—

2 Each eligible entity conducting a project under

3 this subsection shall provide to the Secretary, in

4 such form and with such frequency as the Sec5 retary requires, interim data from the projects

6 conducted under this subsection. The Secretary

7 shall report to the Congress annually on the

8 progress of such projects and shall, not later

9 than January 1, 2003, submit to the Congress

10 a report on the study required under subpara11 graph (A).

12 ‘‘(D) AUTHORIZATION.—There are author13 ized to be appropriated $500,000 for each of

14 fiscal years 1996 through 2001 for the purpose

15 of conducting the study required under sub16 paragraph (A).’’.

17 (b) PAYMENT.—Section 403 of the Social Security

18 Act (42 U.S.C. 603), as amended by section 101, is

19 amended by adding at the end the following new sub20 section:

21 ‘‘(e) PAYMENTS FOR REDUCING TEENAGE PREG22 NANCY.—

23 ‘‘(1) IN GENERAL.—In addition to any payment

24 under subsection (a), each State shall be entitled to

25 payment from the Secretary for each of fiscal years
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•S 840 IS

1 1996 through 2001 in an amount equal to the lesser

2 of—

3 ‘‘(A) 75 percent of the expenditures made

4 by the State in providing for the operation of

5 the projects under section 402(g), and in ad6 ministering the projects under such section; or

7 ‘‘(B) the limitation determined under para8 graph (2) with respect to the State for the fis9 cal year.

10 ‘‘(2) LIMITATION.—

11 ‘‘(A) IN GENERAL.—The limitation deter12 mined under this paragraph with respect to a

13 State for any fiscal year is the amount that

14 bears the same ratio to $20,000,000 as the

15 population with an income below the poverty

16 line (as such term is defined in section 673(2)

17 of the Omnibus Budget Reconciliation Act of

18 1981), including any revision required by such

19 section) in the State in the second preceding

20 fiscal year bears to such population residing in

21 the United States in the second preceding fiscal

22 year.

23 ‘‘(B) LIMITATION INCREASED.—If the lim24 itation determined under subparagraph (A)

25 with respect to a State for a fiscal year exceeds
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•S 840 IS

1 the amount paid to the State under this sub2 section for the fiscal year, the limitation deter3 mined under this paragraph with respect to the

4 State for the immediately succeeding fiscal year

5 shall be increased by the amount of such excess.

6 ‘‘(3) PAYMENTS TO INDIAN TRIBES.—

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

8 other provision of this title, for purposes of this

9 subsection, an Indian tribe with an application

10 approved under section 402(g)(5) shall be enti11 tled to payment from the Secretary for each of

12 fiscal years 1996 through 2001 in an amount

13 equal to the lesser of—

14 ‘‘(i) 75 percent of the expenditures

15 made by the Indian tribe in providing for

16 the operation of the projects under section

17 402(g)(5), and in administering the

18 projects under such section; or

19 ‘‘(ii) the limitation determined under

20 subparagraph (B) with respect to the In21 dian tribe for the fiscal year.

22 ‘‘(B) LIMITATION.—

23 ‘‘(i) IN GENERAL.—The limitation de24 termined under this subparagraph with re25 spect to an Indian tribe for any fiscal year
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1 is the amount that bears the same ratio to

2 $3,750,000 as the population with an in3 come below the poverty line (as such term

4 is defined in section 673(2) of the Omni5 bus Budget Reconciliation Act of 1981),

6 including any revision required by such

7 section) in the Indian tribe in the second

8 preceding fiscal year bears to such popu9 lation of all Indian tribes with applications

10 approved under section 402(g)(5) in the

11 second preceding fiscal year.

12 ‘‘(ii) INCREASE IN LIMITATION.—If

13 the limitation determined under clause (i)

14 with respect to an Indian tribe for a fiscal

15 year exceeds the amount paid to the Indian

16 tribe under this paragraph for the fiscal

17 year, the limitation determined under this

18 subparagraph with respect to the Indian

19 tribe for the immediately succeeding fiscal

20 year shall be increased by the amount of

21 such excess.

22 ‘‘(4) APPROPRIATIONS.—Amounts appropriated

23 for a fiscal year to carry out this part shall be made

24 available for payments under this subsection for

25 such fiscal year.’’.
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1 SEC. 605. NATIONAL CLEARINGHOUSE ON TEENAGE PREG2 NANCY.

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

4 1996, the Secretary of Health and Human Services, shall

5 within an existing office of the Department of Health and

6 Human Services, establish a national center for the collec7 tion and provision of information that relates to adolescent

8 pregnancy prevention programs, to be known as the ‘‘Na9 tional Clearinghouse on Teenage Pregnancy Prevention

10 Programs’’.

11 (b) FUNCTIONS.—The national center established

12 under subsection (a) shall serve as a national information

13 and data clearinghouse, and as a training, technical assist14 ance, and material development source for adolescent

15 pregnancy prevention programs. Such center shall—

16 (1) develop and maintain a system for dissemi17 nating information on all types of adolescent preg18 nancy prevention programs and on the state of ado19 lescent pregnancy prevention program development,

20 including information concerning the most effective

21 model programs;

22 (2) develop and sponsor a variety of training in23 stitutes and curricula for adolescent pregnancy pre24 vention program staff;
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•S 840 IS

1 (3) identify model programs representing the

2 various types of adolescent pregnancy prevention

3 programs;

4 (4) develop technical assistance materials and

5 activities to assist other entities in establishing and

6 improving adolescent pregnancy prevention pro7 grams;

8 (5) develop networks of adolescent pregnancy

9 prevention programs for the purpose of sharing and

10 disseminating information; and

11 (6) conduct such other activities as the respon12 sible Federal officials find will assist in developing

13 and carrying out programs or activities to reduce ad14 olescent pregnancy.

15 (c) AUTHORIZATION OF APPROPRIATIONS.—There

16 are authorized to be appropriated such sums as may be

17 necessary to carry out the provisions of this section.

18 SEC. 606. DENIAL OF FEDERAL HOUSING BENEFITS TO MI19 NORS WHO BEAR CHILDREN OUT-OF-WED20 LOCK.

21 (a) PROHIBITION OF ASSISTANCE.—Notwithstanding

22 any other provision of law, a household whose head of

23 household is an individual who has borne a child out-of24 wedlock before attaining 18 years of age may not be pro-
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•S 840 IS

1 vided Federal housing assistance for a dwelling unit until

2 attaining such age, unless—

3 (1) after the birth of the child—

4 (A) the individual marries an individual

5 who has been determined by the relevant State

6 to be the biological father of the child; or

7 (B) the biological parent of the child has

8 legal custody of the child and marries an indi9 vidual who legally adopts the child;

10 (2) the individual is a biological and custodial

11 parent of another child who was not born out-of12 wedlock; or

13 (3) eligibility for such Federal housing assist14 ance is based in whole or in part on any disability

15 or handicap of a member of the household.

16 (b) DEFINITIONS.—For purposes of this section, the

17 following definitions shall apply:

18 (1) COVERED PROGRAM.—The term ‘‘covered

19 program’’ means—

20 (A) the program of rental assistance on be21 half of low-income families provided under sec22 tion 8 of the United States Housing Act of

23 1937 (42 U.S.C. 1437f);
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•S 840 IS

1 (B) the public housing program under title

2 I of the United States Housing Act of 1937 (42

3 U.S.C. 1437 et seq.);

4 (C) the program of rent supplement pay5 ments on behalf of qualified tenants pursuant

6 to contracts entered into under section 101 of

7 the Housing and Urban Development Act of

8 1965 (12 U.S.C. 1701s);

9 (D) the program of interest reduction pay10 ments pursuant to contracts entered into by the

11 Secretary of Housing and Urban Development

12 under section 236 of the National Housing Act

13 (12 U.S.C. 1715z–1);

14 (E) the program for mortgage insurance

15 provided pursuant to sections 221(d) (3) or (4)

16 of the National Housing Act (12 U.S.C.

17 1715l(d)) for multifamily housing for low- and

18 moderate-income families;

19 (F) the rural housing loan program under

20 section 502 of the Housing Act of 1949 (42

21 U.S.C. 1472);

22 (G) the rural housing loan guarantee pro23 gram under section 502(h) of the Housing Act

24 of 1949 (42 U.S.C. 1472(h));
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•S 840 IS

1 (H) the loan and grant programs under

2 section 504 of the Housing Act of 1949 (42

3 U.S.C. 1474) for repairs and improvements to

4 rural dwellings;

5 (I) the program of loans for rental and co6 operative rural housing under section 515 of

7 the Housing Act of 1949 (42 U.S.C. 1485);

8 (J) the program of rental assistance pay9 ments pursuant to contracts entered into under

10 section 521(a)(2)(A) of the Housing Act of

11 1949 (42 U.S.C. 1490a(a)(2)(A));

12 (K) the loan and assistance programs

13 under sections 514 and 516 of the Housing Act

14 of 1949 (42 U.S.C. 1484, 1486) for housing for

15 farm labor;

16 (L) the program of grants and loans for

17 mutual and self-help housing and technical as18 sistance under section 523 of the Housing Act

19 of 1949 (42 U.S.C. 1490c);

20 (M) the program of grants for preservation

21 and rehabilitation of housing under section 533

22 of the Housing Act of 1949 (42 U.S.C.

23 1490m); and
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•S 840 IS

1 (N) the program of site loans under sec2 tion 524 of the Housing Act of 1949 (42

3 U.S.C. 1490d).

4 (2) COVERED PROJECT.—The term ‘‘covered

5 project’’ means any housing for which Federal hous6 ing assistance is provided that is attached to the

7 project or specific dwelling units in the project.

8 (3) FEDERAL HOUSING ASSISTANCE.—The term

9 ‘‘Federal housing assistance’’ means—

10 (A) assistance provided under a covered

11 program in the form of any contract, grant,

12 loan, subsidy, cooperative agreement, loan or

13 mortgage guarantee or insurance, or other fi14 nancial assistance; or

15 (B) occupancy in a dwelling unit that is—

16 (i) provided assistance under a cov17 ered program; or

18 (ii) located in a covered project and

19 subject to occupancy limitations under a

20 covered program that are based on income.

21 (4) STATE.—The term ‘‘State’’ means the

22 States of the United States, the District of Colum23 bia, the Commonwealth of Puerto Rico, the Com24 monwealth of the Northern Mariana Islands, Guam,
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•S 840 IS

1 the Virgin Islands, American Samoa, and any other

2 territory or possession of the United States.

3 (c) LIMITATIONS ON APPLICABILITY.—Subsection

4 (a) shall not apply to Federal housing assistance provided

5 for a household pursuant to an application or request for

6 such assistance made by such household before the effec7 tive date of this Act if the household was receiving such

8 assistance on the effective date of this Act.

9 SEC. 607. NATIONAL CAMPAIGN AGAINST TEENAGE PREG10 NANCY.

11 (a) FINDINGS.—The Congress finds that the Govern12 ment has a role to play in preventing teenage pregnancy

13 but that the Government alone cannot deal with the mas14 sive changes in societal attitudes and behavior that have

15 occurred in recent decades.

16 (b) SENSE OF THE CONGRESS.—It is the sense of

17 the Congress that the President should lead a national

18 campaign against teenage pregnancy that—

19 (1) challenges all aspects of society, including

20 businesses, national and community voluntary orga21 nizations, religious institutions, and schools, to join

22 in a national effort to reduce teenage pregnancies;

23 (2) emphasizes broad themes of economic op24 portunity and the personal responsibility of each

25 family in every community; and
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•S 840 IS

1 (3) establishes national and individual goals,

2 based on the measurable aspects of such broad

3 themes, to define the mission and guide the work of

4 the national campaign including—

5 (A) graduation from high school; and

6 (B) deferral of childbearing until an indi7 vidual is emotionally prepared to support a

8 child and accept economic responsibility for the

9 child’s support.

10 TITLE VII—CHILDREN’S ELIGI11 BILITY FOR SUPPLEMENTAL

12 SECURITY INCOME

13 SEC. 701. SHORT TITLE.

14 This title may be cited as the ‘‘Children’s SSI Eligi15 bility Reform Act’’.

16 SEC. 702. PURPOSE.

17 It is the purpose of this title to ensure that supple18 mental security income benefits—

19 (1) provide basic necessities to maintain a child

20 with a disability at home or in another appropriate

21 and cost effective setting;

22 (2) cover the additional costs of caring for and

23 raising such a child; and

24 (3) enhance the child’s opportunity to develop

25 into an independent adult.
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•S 840 IS

1 SEC. 703. SUPPLEMENTAL SECURITY INCOME BENEFITS

2 FOR DISABLED CHILDREN.

3 (a) MODIFICATION OF BENEFIT ELIGIBILITY.—

4 (1) IN GENERAL.—Section 1614(a)(3)(A) (42

5 U.S.C. 1382c(a)(3)(A)) is amended—

6 (A) by inserting ‘‘(i)’’ after ‘‘(3)(A)’’;

7 (B) by inserting ‘‘(other than an individual

8 under the age of 18)’’ before ‘‘shall be consid9 ered’’;

10 (C) by striking ‘‘he’’ and inserting ‘‘the in11 dividual’’;

12 (D) by striking ‘‘(or, in the case of an indi13 vidual under the age of 18, if he suffers from

14 any medically determinable physical or mental

15 impairment of comparable severity)’’; and

16 (E) by adding at the end the following new

17 clause:

18 ‘‘(ii)(I) An individual under the age of 18 shall be

19 considered to be disabled for purposes of this title for a

20 month if the individual has any medically determinable

21 physical or mental impairment of comparable severity to

22 an impairment described in clause (i).

23 ‘‘(II) For purposes of subclause (I), an impairment

24 is of comparable severity if such impairment is severe and

25 persistent and substantially limits the individual’s ability

26 to develop or function.’’.
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•S 840 IS

1 (2) EFFECTIVE DATE.—The amendments made

2 by paragraph (1) shall apply to applicants for bene3 fits for months beginning 6 months after the date of

4 the enactment of this Act, without regard to whether

5 regulations have been issued to implement such

6 amendments.

7 (b) ADDITIONAL MODIFICATIONS.—

8 (1) MODIFICATION TO MEDICAL CRITERIA FOR

9 EVALUATION OF MENTAL AND EMOTIONAL DIS10 ORDERS.—The Commissioner of Social Security

11 shall modify paragraph (2) of section 112.02B.2.c.

12 of appendix 1 to subpart P of part 404 of title 20,

13 Code of Federal Regulations, to eliminate references

14 to maladaptive behaviors and to require instead evi15 dence of a persistent pattern of behavior destructive

16 to self or others requiring protective intervention.

17 (2) MODIFICATIONS TO INDIVIDUALIZED FUNC18 TIONAL ASSESSMENT.—

19 (A) INCREASE IN SEVERITY.—The Com20 missioner of Social Security shall modify the

21 level of severity required to establish com22 parable severity under section 416.924e of title

23 20, Code of Federal Regulations, to either—

24 (i) a marked level of impairment in 2

25 or more domains; or
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1 (ii) a marked level of impairment in

2 at least 1 domain and a moderate level of

3 impairment in at least 1 additional do4 main.

5 (B) DOMAINS OF DEVELOPMENT OR FUNC6 TIONING.—The Commissioner of Social Security

7 shall modify the individualized functional as8 sessment for children set forth in section

9 416.924d of title 20, Code of Federal Regula10 tions, to include the following domains of devel11 opment or functioning, to ensure the domains

12 do not overlap from a clinical perspective, and

13 to compare the child’s abilities in each of these

14 domains with those of children of similar age

15 who do not have a disability:

16 (i) Cognition (the ability to under17 stand and reason and to learn required

18 skills).

19 (ii) Communication (the ability to re20 ceive and convey information; the ability to

21 produce speech audibly and intelligibly).

22 (iii) Motor abilities (the ability to

23 move and coordinate the body and extrem24 ities in gross and fine motions).
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1 (iv) Ability to care for oneself (the

2 ability to perform normal childhood activi3 ties in the home, school, or community

4 with adult assistance or supervision appro5 priate to one’s age and to control behaviors

6 that could harm oneself or others).

7 (v) Ability to engage in interpersonal

8 relations (the ability to develop and main9 tain positive and productive interpersonal

10 relationships so as to function within the

11 family, peer groups, and community).

12 (vi) Responsiveness to stimuli (the

13 ability of children from birth to the attain14 ment of age 1 to react appropriately to vis15 ual, auditory, or tactile stimulation).

16 (vii) Ability to concentrate, persist,

17 maintain pace, and have physical stamina

18 to complete essential tasks in the home,

19 school, or community (in children from age

20 3 to the attainment of age 18).

21 (3) EFFECTIVE DATE.—

22 (A) IN GENERAL.—The modifications re23 quired by this subsection shall apply to appli24 cants for benefits for months beginning 6

25 months after the date of the enactment of this
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•S 840 IS

1 Act, without regard to whether regulations have

2 been issued to implement such amendments.

3 (B) CONTINUING REVIEW.—The Commis4 sioner of Social Security shall review and report

5 to the Congress not later than 5 months after

6 the date of the enactment of this Act whether

7 the required modifications described in this sub8 section should be further modified.

9 (c) ADDITIONAL REVIEW AND REVISION OF INDIVID10 UALIZED FUNCTIONAL ASSESSMENT.—

11 (1) IN GENERAL.—The Commissioner of Social

12 Security shall review and revise the individual func13 tional assessment for children set forth in sections

14 416.924d and 416.924e of title 20, Code of Federal

15 Regulations, to ensure that such assessment is ap16 plied to children who—

17 (A) have multiple impairments, none of

18 which meet or equal the Listings of Impair19 ments set forth in appendix 1 of subpart P of

20 part 404 of such title 20, but which in combina21 tion result in the child being disabled under sec22 tion 1614(a)(3)(A)(ii) of the Social Security

23 Act, as added by subsection (a);

24 (B) are too young, or for other reasons,

25 cannot be fully evaluated;
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1 (C) have physical or mental impairments

2 or illnesses which are not explicitly included in

3 such Listings; and

4 (D) have conditions which do not meet or

5 equal the severity of any such Listing, but meet

6 the functional test of severity under such sec7 tion 1614(a)(3)(A)(ii).

8 (2) TESTING.—The Commissioner of Social Se9 curity shall ensure that pursuant to the revised indi10 vidual functional assessment for children under

11 paragraph (1)—

12 (A) valid and reliable tests are used, if

13 available, which provide qualitative and quan14 tifiable measures of childhood functioning, or

15 (B) criteria of childhood functioning are

16 developed which are equivalent to the findings

17 of a standardized test.

18 (3) APPLICABILITY.—The Commissioner of So19 cial Security shall issue final regulations relating to

20 the individual functional assessment for children

21 under paragraph (1) not later than 6 months after

22 the date of the enactment of this Act and such regu23 lations shall apply to applicants for benefits for

24 months beginning 6 months after such date.
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1 (d) APPLICATION TO CURRENT BENEFICIARIES.—

2 Notwithstanding any other provision of law, if the Com3 missioner of Social Security determines that the eligibility

4 of an individual who is a recipient of supplemental security

5 income benefits under title XVI of the Social Security Act

6 for the month in which the date of the enactment of this

7 Act occurs is affected by the amendments made by, and

8 provisions of, this section, the Commissioner shall, not

9 later than 1 year after such date, provide for a continuing

10 disability review with respect to such individual in accord11 ance with the provisions of such title.

12 SEC. 704. BETTER TARGETING AND USE OF BENEFITS.

13 (a) PROHIBITION ON COACHING OF CHILDREN TO

14 OBTAIN BENEFITS.—

15 (1) IN GENERAL.—Section 1632 (42 U.S.C.

16 1383a) is amended by adding at the end the follow17 ing new subsection:

18 ‘‘(c) In any case in which the court determines that

19 a violation described in paragraph (1), (2), or (3) of sub20 section (a) includes—

21 ‘‘(1) any knowing and willful coaching of a

22 child by a parent or guardian to feign an impair23 ment for the purposes of gaining eligibility under

24 this title, the court, in addition to any penalty im25 posed under subsection (a), may require full restitu-
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•S 840 IS

1 tion of the benefit such child has received under this

2 title, plus up to $100 for each month the child re3 ceived such benefit; and

4 ‘‘(2) any attorney or legal representative, inter5 preter, or social service worker knowingly and will6 fully causing a parent or guardian to so coach a

7 child, subsection (a) shall be applied by substituting

8 ‘$5000, plus $500 for each child involved’ for

9 ‘$1,000’.’’.

10 (2) EFFECTIVE DATE.—The amendment made

11 by paragraph (1) shall apply to actions occurring

12 after the date of the enactment of this Act.

13 (b) TIGHTENING OF REPRESENTATIVE PAYEE RE14 QUIREMENTS.—

15 (1) CLARIFICATION OF ROLE.—Section

16 1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is

17 amended by striking ‘‘and’’ at the end of subclause

18 (II), by striking the period at the end of subclause

19 (IV) and inserting ‘‘; and’’, and by adding after

20 subclause (IV) the following new subclause:

21 ‘‘(V) advise such person through the notice of

22 award of benefits, and at such other times as the

23 Commissioner of Social Security deems appropriate,

24 of specific examples of appropriate expenditures of
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•S 840 IS

1 benefits under this title and the proper role of a rep2 resentative payee.’’.

3 (2) DOCUMENTATION OF EXPENDITURES RE4 QUIRED.—

5 (A) IN GENERAL.—Subparagraph (C)(i) of

6 section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is

7 amended to read as follows:

8 ‘‘(C)(i) In any case where payment is made to a rep9 resentative payee of an individual or spouse, the Commis10 sioner of Social Security shall—

11 ‘‘(I) require such representative payee to docu12 ment expenditures and keep contemporaneous

13 records of transactions made using such payment;

14 ‘‘(II) establish a system of accountability mon15 itoring under which such representative payee shall

16 report at least annually with respect to the use of

17 such payment; and

18 ‘‘(III) implement statistically valid procedures

19 for reviewing each such report in order to identify

20 instances in which such representative payee is not

21 properly using such payment.’’.

22 (B) CONFORMING AMENDMENT WITH RE23 SPECT TO PARENT PAYEES.—Clause (ii) of sec24 tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C))
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•S 840 IS

1 is amended by striking ‘‘Clause (i)’’ and insert2 ing ‘‘Subclauses (II) and (III) of clause (i)’’.

3 (3) EFFECTIVE DATE.—The amendments made

4 by this subsection shall apply to benefits paid after

5 the date of the enactment of this Act.

6 (c) GRADUATED BENEFITS FOR ADDITIONAL CHIL7 DREN.—

8 (1) IN GENERAL.—Section 1611(b) (42 U.S.C.

9 1382(b)) is amended by adding at the end the fol10 lowing new paragraph:

11 ‘‘(3) In the case of a family (other than a foster or

12 group home) with more than 1 child eligible for a benefit

13 under this title, the benefit under this title for each addi14 tional child (other than an adopted child with special

15 needs (within the meaning of paragraphs (1) and (2) of

16 section 473(c)) shall be determined under the following

17 table:

‘‘If the child is the: The benefit is:

2nd child ........................................ 85 percent of the otherwise determined benefit

3rd child ........................................ 65 percent of such benefit

4th child ........................................ 45 percent of such benefit

5th child ........................................ 35 percent of such benefit

6th child ........................................ 25 percent of such benefit

7th child or more ........................... $50 for each child.’’.

18 (2) EFFECTIVE DATE.—The amendment made

19 by paragraph (1) shall apply to determinations made

20 after the date of the enactment of this Act.

21 (d) CONTINUING DISABILITY REVIEWS.—
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1 (1) CONTINUING DISABILITY REVIEWS FOR

2 CERTAIN CHILDREN.—Section 1614(a)(3)(G) (42

3 U.S.C. 1382c(a)(3)(G)) is amended—

4 (A) by inserting ‘‘(i)’’ after ‘‘(G)’’; and

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

6 ‘‘(ii)(I) Not less frequently than once every 7 years,

7 the Commissioner of Social Security shall redetermine in

8 accordance with paragraph (4) the eligibility for benefits

9 under this title of each child who is eligible for benefits

10 by reason of disability with respect to which medical im11 provement is not expected.

12 ‘‘(II) If a child has a disability with respect to which

13 medical improvement is possible, subclause (I) shall be ap14 plied by substituting ‘3 years’ for ‘7 years’.

15 ‘‘(III) If a child has a disability with respect to which

16 medical improvement is expected subclause (I) shall be ap17 plied by substituting ‘year’ for ‘7 years’.

18 ‘‘(IV) A parent or guardian of a recipient whose case

19 is reviewed under this clause shall present, at the time

20 of review, evidence demonstrating that the recipient is,

21 and has been, receiving treatment, to the extent consid22 ered medically necessary and available, of the condition

23 which was the basis for providing benefits under this

24 title.’’.
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1 (2) DISABILITY REVIEW REQUIRED FOR LOW

2 BIRTH WEIGHT BABIES WHO HAVE RECEIVED SSI

3 BENEFITS FOR 12 MONTHS.—Section 1614(a)(3)(G)

4 (42 U.S.C. 1382c(a)(3)(G)), as amended by para5 graph (1) of this subsection, is amended by adding

6 at the end the following:

7 ‘‘(iii)(I) The Commissioner of Social Security shall

8 redetermine the eligibility for benefits under this title by

9 reason of disability of a child whose low birth weight is

10 a contributing factor material to the Commissioner’s de11 termination that the child is disabled.

12 ‘‘(II) The redetermination required by subclause (I)

13 shall be conducted once the child has received such bene14 fits for 12 months.

15 ‘‘(III) A redetermination under subclause (I) shall be

16 considered a substitute for a review required under any

17 other provision of this subparagraph.

18 ‘‘(IV) A parent or guardian of a recipient whose case

19 is reviewed under this clause shall present, at the time

20 of review, evidence demonstrating that the recipient is,

21 and has been, receiving treatment, to the extent consid22 ered medically necessary and available, of the condition

23 which was the basis for providing benefits under this

24 title.’’.
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1 (3) DISABILITY REVIEW REQUIRED FOR SSI RE2 CIPIENTS WHO ARE 18 YEARS OF AGE.—

3 (A) IN GENERAL.—Section 1614(a)(3)(G)

4 (42 U.S.C. 1382c(a)(3)(G)), as amended by

5 paragraphs (1) and (2) of this subsection, is

6 amended by adding at the end the following:

7 ‘‘(iv)(I) The Commissioner of Social Security shall re8 determine the eligibility of a qualified individual for sup9 plemental security income benefits under this title by rea10 son of disability, by applying the criteria used in determin11 ing eligibility for such benefits of applicants who have at12 tained 18 years of age.

13 ‘‘(II) The redetermination required by subclause (I)

14 with respect to a qualified individual shall be conducted

15 during the 1-year period that begins on the date the quali16 fied individual attains 18 years of age.

17 ‘‘(III) As used in this clause, the term ‘qualified indi18 vidual’ means an individual who attains 18 years of age

19 and for whom, for the month preceding the month in

20 which the individual attained such age, a determination

21 was in effect that the individual is eligible for benefits

22 under this title by reason of disability.

23 ‘‘(IV) A redetermination under subclause (I) of this

24 clause shall be considered a substitute for a review re25 quired under any other provision of this subparagraph.’’.
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1 (B) REPORT TO THE CONGRESS.—Not

2 later than October 1, 1998, the Commissioner

3 of Social Security shall submit to the Commit4 tee on Ways and Means of the House of Rep5 resentatives and the Committee on Finance of

6 the Senate a report on the activities conducted

7 under section 1614(a)(3)(G)(iv) of the Social

8 Security Act.

9 (C) CONFORMING REPEAL.—Section 207

10 of the Social Security Independence and Pro11 gram Improvements Act of 1994 (42 U.S.C.

12 1382 note; 108 Stat. 1516) is hereby repealed.

13 (4) REVOLVING FUND.—The Secretary of the

14 Treasury shall pay into a revolving fund for each fis15 cal year an amount equal to 50 percent of the sav16 ings resulting from the amendments made by sub17 section (c) with respect to such fiscal year. Such

18 fund shall be available to the Commissioner of Social

19 Security, without regard to appropriation Acts and

20 without fiscal year limitation, to supplement funds

21 otherwise made available for disability reviews re22 quired by the amendments made by this subsection.

23 (5) EFFECTIVE DATE.—The amendments made

24 by this subsection shall apply to benefits for months
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1 beginning after the date of the enactment of this

2 Act.

3 SEC. 705. ENCOURAGING MOVEMENT TOWARD INDEPEND4 ENCE.

5 (a) DEDICATED SAVINGS ACCOUNTS.—

6 (1) IN GENERAL.—Section 1631(a)(2)(B) (42

7 U.S.C. 1383(a)(2)(B)) is amended by adding at the

8 end the following new clause:

9 ‘‘(xiv) Notwithstanding clause (x), the Commissioner

10 of Social Security may, at the request of the representative

11 payee, pay any lump sum payment for the benefit of a

12 child into a dedicated savings account that could only be

13 used to purchase for such child—

14 ‘‘(I) education and job skills training;

15 ‘‘(II) special equipment or housing modifica16 tions or both specifically related to, and required by

17 the nature of, the child’s disability; and

18 ‘‘(III) appropriate therapy and rehabilitation.’’.

19 (2) DISREGARD OF TRUST FUNDS.—Section

20 1613(a) (42 U.S.C. 1382b) is amended—

21 (A) by striking ‘‘and’’ at the end of para22 graph (9),

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

24 paragraph (10) the first place it appears and

25 inserting a semicolon,
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1 (C) by redesignating paragraph (10) the

2 second place it appears as paragraph (11) and

3 striking the period at the end of such para4 graph and inserting ‘‘; and’’, and

5 (D) by inserting after paragraph (11), as

6 so redesignated, the following new paragraph:

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 (b) INFORMATION AND REFERRAL SYSTEM.—Section

14 1631 (42 U.S.C. 1383) is amended by redesignating sub15 section (n) (relating to notice requirements) as subsection

16 (o) and by adding at the end the following new subsection:

17 ‘‘INFORMATION AND REFERRAL SYSTEM FOR CHILDREN

18 ‘‘(p) The Commissioner of Social Security shall estab19 lish or identify a system of information and referral for

20 treatment and services available to children receiving ben21 efits under this title under State and Federal programs.’’.
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1 TITLE VIII—FINANCING AND

2 FOOD ASSISTANCE REFORM

3 Subtitle A—Treatment of Aliens

4 SEC. 801. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUB5 LIC ASSISTANCE PROGRAMS.

6 (a) DEFINITION OF ‘‘QUALIFIED ALIEN’’.—

7 (1) IN GENERAL.—Section 1101(a) (42 U.S.C.

8 1301(a)) is amended by adding at the end the fol9 lowing new paragraph:

10 ‘‘(10) The term ‘qualified alien’ means an

11 alien—

12 ‘‘(A) who is lawfully admitted for perma13 nent residence within the meaning of section

14 101(a)(20) of the Immigration and Nationality

15 Act;

16 ‘‘(B) who is admitted as a refugee pursu17 ant to section 207 of such Act;

18 ‘‘(C) who is granted asylum pursuant to

19 section 208 of such Act;

20 ‘‘(D) whose deportation is withheld pursu21 ant to section 243(h) of such Act;

22 ‘‘(E) whose deportation is suspended pur23 suant to section 244 of such Act;
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1 ‘‘(F) who is granted conditional entry pur2 suant to section 203(a)(7) of such Act as in ef3 fect prior to April 1, 1980;

4 ‘‘(G) who is lawfully admitted for tem5 porary residence pursuant to section 210 or

6 245A of such Act;

7 ‘‘(H) who is within a class of aliens law8 fully present within the United States pursuant

9 to any other provision of such Act, if—

10 ‘‘(i) the Attorney General determines

11 that the continued presence of such class

12 of aliens serves a humanitarian or other

13 compelling public interest, and

14 ‘‘(ii) the Secretary of Health and

15 Human Services determines that such in16 terest would be further served by treating

17 each alien within such class as a ‘qualified

18 alien’ for purposes of this Act; or

19 ‘‘(I)(i) who is the spouse, or unmarried

20 child under 21 years of age, of a citizen of the

21 United States, or

22 ‘‘(ii)(I) who is the parent of a citizen of

23 the United States who is at least 21 years of

24 age, and
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1 ‘‘(II) with respect to whom an application

2 for adjustment to lawful permanent residence is

3 pending, such status not having changed.’’.

4 (2) CONFORMING AMENDMENT.—Section

5 244A(f)(1) of the Immigration and Nationality Act

6 (8 U.S.C. 1254a(f)(1)) is amended by inserting ‘‘and

7 shall not be considered to be a qualified alien within

8 the meaning of section 1101(a)(10) of the Social Se9 curity Act’’ before the semicolon.

10 (b) FEDERAL ASSISTANCE PROGRAMS.—

11 (1) SUPPLEMENTAL SECURITY INCOME.—Sec12 tion 1614(a)(1)(B)(i) (42 U.S.C. 1382c(a)(1)(B)(i))

13 is amended to read as follows:

14 ‘‘(B)(i) is a resident of the United States,

15 and is either (I) a citizen or national of the

16 United States, or (II) a qualified alien (as de17 fined in section 1101(a)(10)), or’’.

18 (2) MEDICAID.—

19 (A) ELIGIBILITY LIMITATION.—Section

20 1903(v)(1) (42 U.S.C. 1396b(v)(1)) is amended

21 to read as follows:

22 ‘‘(v)(1) Notwithstanding the preceding provisions of

23 this section and except as provided in paragraph (2)—

24 ‘‘(A) no payment may be made to a State under

25 this section for medical assistance furnished to an
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1 individual who is disqualified from receiving such as2 sistance by reason of section 210(f) or 245A(h) of

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

4 1160(f) or 1155a(h)) or any other provision of law,

5 and

6 ‘‘(B) no such payment may be made for medical

7 assistance furnished to an individual unless such in8 dividual is—

9 ‘‘(i) a citizen or national of the United

10 States, or

11 ‘‘(ii) a qualified alien (as defined in section

12 1101(a)(10)).’’.

13 (B) CONFORMING AMENDMENTS.—

14 (i) Section 1903(v)(2) (42 U.S.C.

15 1396b(v)(2)) is amended by striking

16 ‘‘alien’’ each place it appears and inserting

17 ‘‘individual’’.

18 (ii) Section 1902(a) (42 U.S.C.

19 1396a(a)) is amended in the last sentence

20 by striking ‘‘alien’’ and all that follows to

21 the end period and inserting ‘‘individual

22 who is not (A) a citizen or national of the

23 United States, or (B) a qualified alien (as

24 defined in section 1101(a)(10)) only in ac25 cordance with section 1903(v).’’.
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1 (iii) Section 1902(b)(3) (42 U.S.C.

2 1396a(b)(3)) is amended by inserting ‘‘or

3 national’’ after ‘‘citizen’’.

4 (c) STATE AND LOCAL PROGRAMS.—A State or polit5 ical subdivision thereof may provide that an alien is not

6 eligible for any program of cash assistance based on need

7 that is furnished by such State or political subdivision

8 thereof for any month unless such alien is a qualified alien

9 as defined in section 1101(a)(10) of the Social Security

10 Act.

11 SEC. 802. EXTENSION OF DEEMING OF INCOME AND RE12 SOURCES UNDER TRANSITIONAL AID, SSI,

13 AND FOOD STAMP PROGRAMS.

14 (a) IN GENERAL.—Except as provided in subsections

15 (b) and (c), in applying sections 410 and 1621 of the So16 cial Security Act and section 5(i) of the Food Stamp Act

17 of 1977, the period in which each respective section other18 wise applies with respect to a qualified alien (as defined

19 in section 1101(a)(10) of the Social Security Act shall be

20 extended through the date (if any) on which the alien be21 comes a citizen of the United States pursuant to chapter

22 2 of title III of the Immigration and Nationality Act.

23 (b) EXCEPTIONS.—Subsection (a) shall not apply to

24 a qualified alien if—
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1 (1) the alien has been lawfully admitted to the

2 United States for permanent residence, has attained

3 75 years of age, and has resided in the United

4 States for at least 5 years;

5 (2) the alien—

6 (A) is a veteran (as defined in section 101

7 of title 38, United States Code) with a dis8 charge characterized as an honorable discharge,

9 (B) is on active duty (other than active

10 duty for training) in the Armed Forces of the

11 United States, or

12 (C) is the spouse or unmarried dependent

13 child of an individual described in subparagraph

14 (A) or (B);

15 (3) the alien is the subject of domestic violence

16 by the alien’s spouse and a divorce between the alien

17 and the alien’s spouse has been initiated through the

18 filing of an appropriate action in an appropriate

19 court;

20 (4) there has been paid with respect to the self21 employment income or employment of the alien, or

22 of a parent or spouse of the alien, taxes under chap23 ter 2 or chapter 21 of the Internal Revenue Code of

24 1986 in each of 20 different calendar quarters; or
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1 (5) the alien is unable because of physical or

2 developmental disability or mental impairment (in3 cluding Alzheimer’s disease) to comply with the nat4 uralization requirements of section 312(a) of the Im5 migration and Nationality Act.

6 (c) HOLD HARMLESS FOR MEDICAID ELIGIBILITY.—

7 Subsection (a) shall not apply with respect to a determina8 tion of eligibility for benefits under part A of title IV of

9 the Social Security Act or under the supplemental security

10 income program of title XVI of such Act to the extent

11 such determinations provide for eligibility for medical as12 sistance under title XIX of such Act.

13 (d) STATE AND LOCAL PROGRAMS.—A State or polit14 ical subdivision thereof may provide that an alien is not

15 eligible for any program of cash assistance based on need

16 that is furnished by such State or political subdivision

17 thereof for any month if such alien has been determined

18 to be ineligible for such month for benefits under—

19 (1) the program under part A of title IV of the

20 Social Security Act;

21 (2) the program of supplemental security in22 come authorized by title XVI of the Social Security

23 Act; or

24 (3) the Food Stamp Act of 1977;

25 as a result of this section.
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1 (e) EFFECTIVE DATE.—This section shall apply to

2 benefits payable under the transitional aid program under

3 part A of title IV of the Social Security Act, the program

4 of supplemental security income authorized under title

5 XVI of the Social Security Act, or the Food Stamp Act

6 of 1977, for months beginning after September 30, 1995,

7 on the basis of—

8 (1) an application filed after such date, or

9 (2) an application filed on or before such date

10 by or on behalf of an individual subject to the provi11 sions of section 1621(a) or section 410(a) of the So12 cial Security Act or section 5(i)(1) of the Food

13 Stamp Act of 1977 (as the case may be) on such

14 date.

15 SEC. 803. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

16 SUPPORT.

17 (a) IN GENERAL.—Section 213 of the Immigration

18 and Nationality Act (8 U.S.C. 1183) is amended—

19 (1) in the heading, by striking ‘‘ON GIVING

20 BOND’’ and inserting ‘‘UPON PROVISION OF BOND OR

21 GUARANTEE OF FINANCIAL RESPONSIBILITY’’;

22 (2) by designating the existing matter as sub23 section (a); and

24 (3) by adding at the end the following new sub25 section:
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1 ‘‘(b)(1) An alien excludable under section 212(a)(4)

2 may, if otherwise admissible, be admitted in the discretion

3 of the Attorney General upon a finding by the Attorney

4 General that—

5 ‘‘(A) the alien has received a guarantee of fi6 nancial responsibility in such form as may be pre7 scribed pursuant to paragraph (4) and meets the

8 conditions described in paragraph (2); and

9 ‘‘(B) taking into consideration all relevant cir10 cumstances, it is reasonable to expect that the spon11 sor, as defined in paragraph (2)(A), has the finan12 cial capacity to meet the obligations of the guaran13 tee.

14 ‘‘(2) A guarantee of financial responsibility for an

15 alien must—

16 ‘‘(A) be signed in the presence of an immigra17 tion officer or consular officer (or in the presence of

18 a notary public) by an individual (referred to in this

19 subsection as the ‘sponsor’) who is—

20 ‘‘(i) 21 years of age or older;

21 ‘‘(ii) of good moral character; and

22 ‘‘(iii) a citizen of the United States or an

23 alien lawfully admitted for permanent residence

24 domiciled in any of the several States of the
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1 United States, the District of Columbia, or any

2 territory or possession of the United States;

3 ‘‘(B) provide that the sponsor enters into a le4 gally binding commitment to furnish to or on behalf

5 of the alien financial support sufficient to meet the

6 alien’s basic subsistence needs during the period

7 that begins on the date that the alien acquires the

8 status of an alien lawfully admitted for permanent

9 residence and ends on the earlier of—

10 ‘‘(i) the date the alien becomes a citizen of

11 the United States under chapter 2 of title III;

12 ‘‘(ii) the first date the alien is a veteran

13 (as defined in section 101 of title 38, United

14 States Code) with a discharge characterized as

15 an honorable discharge;

16 ‘‘(iii) the first date as of which there has

17 been paid with respect to the self-employment

18 income or employment of the alien, or of a par19 ent or spouse of the alien, taxes under chapter

20 2 or chapter 21 of the Internal Revenue Code

21 of 1986 in each of 20 different calendar quar22 ters; or

23 ‘‘(iv) any period in which the alien is—
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1 ‘‘(I) on active duty (other than active

2 duty for training) in the Armed Forces of

3 the United States; or

4 ‘‘(II) the spouse or unmarried depend5 ent child of an individual described in

6 clause (ii) or subclause (I) of this clause;

7 and

8 ‘‘(C) contain the sponsor’s authorization to the

9 Internal Revenue Service to disclose any tax return

10 information necessary to verify the sponsor’s income

11 to the extent necessary to determine the eligibility

12 for benefits under—

13 ‘‘(i) the program under part A of title IV

14 of the Social Security Act;

15 ‘‘(ii) the program of supplemental security

16 income authorized by title XVI of the Social Se17 curity Act; or

18 ‘‘(iii) the Food Stamp Act of 1977,

19 for an alien sponsored by the sponsor.

20 ‘‘(3) Any guarantee of financial support executed on

21 behalf of an alien pursuant to this subsection—

22 ‘‘(A) must be enforceable against the sponsor;

23 and

24 ‘‘(B) may be enforced against the sponsor in a

25 civil suit brought by the alien or by the Federal Gov-
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1 ernment, any State, district, territory, or possession

2 of the United States, or any political subdivision of

3 such State, district, territory, or possession of the

4 United States, which provides benefits to the alien

5 in any court of competent jurisdiction.

6 ‘‘(4) The Secretary of State, the Attorney General,

7 the Secretary of Health and Human Services, the Sec8 retary of Agriculture, and the Commissioner of Social Se9 curity, shall jointly establish the form of the guarantee

10 of financial support described in this section.’’.

11 (b) DATE FOR ESTABLISHMENT OF FORM; EFFEC12 TIVE DATE.—

13 (1) DATE FOR ESTABLISHMENT.—The Sec14 retary of State, the Attorney General, the Secretary

15 of Health and Human Services, the Secretary of Ag16 riculture, and the Commissioner of Social Security

17 shall establish a form for the guarantee of financial

18 support pursuant to section 213(b)(4) (as added by

19 this subsection) not later than 180 days after the

20 date of the enactment of this Act.

21 (2) EFFECTIVE DATE.—The amendments made

22 by this subsection shall apply to affidavits of support

23 executed on or after a date specified by the Attorney

24 General, which date shall be not earlier than 60 days

25 (and not later than 90 days) after the date the form
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1 for the guarantee of financial support is developed

2 under section 213(b)(4) of the Immigration and Na3 tionality Act (as added by this subsection).

4 (c) CLERICAL AMENDMENT.—The table of contents

5 of the Immigration and Nationality Act is amended by

6 amending the item relating to section 213 to read as fol7 lows:

‘‘Sec. 213. Admission of certain aliens upon provision of bond or guarantee of

financial responsibility.’’.

8 SEC. 804. EXTENDING REQUIREMENT FOR AFFIDAVITS OF

9 SUPPORT TO FAMILY-RELATED AND DIVER10 SITY IMMIGRANTS.

11 (a) IN GENERAL.—Section 212(a)(4) of the Immi12 gration and Nationality Act (8 U.S.C. 1182(a)(4)) is

13 amended to read as follows:

14 ‘‘(4) PUBLIC CHARGE AND AFFIDAVITS OF SUP15 PORT.—

16 ‘‘(A) PUBLIC CHARGE.—Any alien who, in

17 the opinion of the consular officer at the time

18 of application for a visa, or in the opinion of

19 the Attorney General at the time of application

20 for admission or adjustment of status, is likely

21 at any time to become a public charge is exclud22 able.

23 ‘‘(B) AFFIDAVITS OF SUPPORT.—Any im24 migrant who seeks admission or adjustment of
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1 status as any of the following is excludable un2 less there has been executed with respect to the

3 immigrant an affidavit of support pursuant to

4 section 213(b):

5 ‘‘(i) As an immediate relative (under

6 section 201(b)(2)).

7 ‘‘(ii) As a family-sponsored immigrant

8 under section 203(a) (or as the spouse or

9 child under section 203(d) of such immi10 grant).

11 ‘‘(iii) As the spouse or child (under

12 section 203(d)) of an employment-based

13 immigrant under section 203(b).

14 ‘‘(iv) As a diversity immigrant under

15 section 203(c) (or as the spouse or child

16 under section 203(d) of such an immi17 grant).’’.

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

19 subsection (a) shall apply to aliens with respect to whom

20 an immigrant visa is issued (or adjustment of status is

21 granted) after the date specified by the Attorney General

22 under section 803(b)(2).
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1 Subtitle B—Revenue Provision

2 SEC. 811. EARNED INCOME TAX CREDIT DENIED TO INDI3 VIDUALS NOT AUTHORIZED TO BE EM4 PLOYED IN THE UNITED STATES.

5 (a) IN GENERAL.—Section 32(c)(1) of the Internal

6 Revenue Code of 1986 (relating to individuals eligible to

7 claim the earned income tax credit) is amended by adding

8 at the end the following new subparagraph:

9 ‘‘(F) IDENTIFICATION NUMBER REQUIRE10 MENT.—The term ‘eligible individual’ does not

11 include any individual who does not include on

12 the return of tax for the taxable year—

13 ‘‘(i) such individual’s taxpayer identi14 fication number, and

15 ‘‘(ii) if the individual is married (with16 in the meaning of section 7703), the tax17 payer identification number of such indi18 vidual’s spouse.’’

19 (b) SPECIAL IDENTIFICATION NUMBER.—Section 32

20 of such Code is amended by adding at the end the follow21 ing new subsection:

22 ‘‘(k) IDENTIFICATION NUMBERS.—Solely for pur23 poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer

24 identification number means a social security number is25 sued to an individual by the Social Security Administra-
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•S 840 IS

1 tion (other than a social security number issued pursuant

2 to clause (II) (or that portion of clause (III) that relates

3 to clause (II)) of section 205(c)(2)(B)(i) of the Social Se4 curity Act).’’

5 (c) EXTENSION OF PROCEDURES APPLICABLE TO

6 MATHEMATICAL OR CLERICAL ERRORS.—Section

7 6213(g)(2) of such Code (relating to the definition of

8 mathematical or clerical errors) is amended by striking

9 ‘‘and’’ at the end of subparagraph (D), by striking the

10 period at the end of subparagraph (E) and inserting ‘‘,

11 and’’, and by inserting after subparagraph (E) the follow12 ing new subparagraph:

13 ‘‘(F) an omission of a correct taxpayer

14 identification number required under section 32

15 (relating to the earned income tax credit) to be

16 included on a return.’’

17 (d) EFFECTIVE DATE.—The amendments made by

18 this section shall apply to taxable years beginning after

19 December 31, 1995.

20 Subtitle C—Food Assistance

21 Provisions

22 SEC. 821. MANDATORY CLAIMS COLLECTION METHODS.

23 (a) Section 11(e)(8) of the Food Stamp Act of 1977

24 (7 U.S.C. 2020(e)(8)) is amended by inserting ‘‘or refunds

25 of Federal taxes as authorized pursuant to section 3720A
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•S 840 IS

1 of title 31, United States Code’’ before the semicolon at

2 the end.

3 (b) Section 13(d) of the Food Stamp Act of 1977

4 (7 U.S.C. 2022(d)) is amended—

5 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

6 and

7 (2) by inserting ‘‘or refunds of Federal taxes as

8 authorized pursuant to section 3720A of title 31,

9 United States Code’’ before the period at the end.

10 (c) Section 6103(l) of the Internal Revenue Code of

11 1986 (26 U.S.C. 6103(l)) is amended—

12 (1) by striking ‘‘officers and employees’’ in

13 paragraph (10)(A) and inserting ‘‘officers, employ14 ees or agents, including State agencies’’; and

15 (2) by striking ‘‘officers and employees’’ in

16 paragraph (10)(B) and inserting ‘‘officers, employ17 ees or agents, including State agencies’’.

18 SEC. 822. REDUCTION OF BASIC BENEFIT LEVEL.

19 The second sentence of section 3(o) of the Food

20 Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—

21 (1) by striking ‘‘and (11)’’ and inserting

22 ‘‘(11)’’;

23 (2) in paragraph (11), by inserting ‘‘through

24 October 1, 1994’’ after ‘‘each October 1 thereafter’’;

25 and
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1 (3) by inserting before the period at the end the

2 following: ‘‘, and (12) on October 1, 1995, and on

3 each October 1 thereafter, adjust the cost of such

4 diet to reflect 100 percent of the cost, in the preced5 ing June (without regard to any previous adjustment

6 made under this paragraph or paragraphs (4)

7 through (11)) and round the result to the nearest

8 lower dollar increment for each household size’’.

9 SEC. 823. PRORATING BENEFITS AFTER INTERRUPTIONS IN

10 PARTICIPATION.

11 Section 8(c)(2)(B) of the Food Stamp Act of 1977

12 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

13 than one month’’.

14 SEC. 824. WORK REQUIREMENT FOR ABLE-BODIED RECIPI15 ENTS.

16 (a) WORK REQUIREMENT.—Section 6(d) of the Food

17 Stamp Act of 1977 (7 U.S.C. 2015(d)) is amended by

18 adding at the end the following:

19 ‘‘(5)(A) Except as provided in subparagraphs (B),

20 (C), and (D), an individual who has received an allotment

21 for 6 consecutive months during which such individual has

22 not been employed a minimum of an average of 20 hours

23 per week shall be disqualified if such individual is not em24 ployed at least an average of 20 hours per week, partici25 pating in a workfare program under section 20 (or a com-
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•S 840 IS

1 parable State or local workfare program), or participating

2 in and complying with the requirements of an approved

3 employment and training program under paragraph (4).

4 ‘‘(B) The provisions of subparagraph (A) shall not

5 apply in the case of an individual who—

6 ‘‘(i) is under 18 or over 50 years of age;

7 ‘‘(ii) is certified by a physician as physically or

8 mentally unfit for employment;

9 ‘‘(iii) is a parent or other member of a house10 hold that includes a minor child;

11 ‘‘(iv) is participating a minimum of an average

12 of 20 hours per week and is in compliance with the

13 requirements of—

14 ‘‘(I) a program under the Job Training

15 Partnership Act (29 U.S.C. 1501 et seq.);

16 ‘‘(II) a program under section 236 of the

17 Trade Act of 1974 (19 U.S.C. 2296); or

18 ‘‘(III) another program for the purpose of

19 employment and training operated by a State or

20 local government, as determined appropriate by

21 the Secretary; or

22 ‘‘(v) would otherwise be exempt under para23 graph (2).

24 ‘‘(C) The Secretary may waive the requirements of

25 subparagraph (A) in the case of some or all individuals
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1 within all or part of a State if the Secretary finds that

2 such area—

3 ‘‘(i) has an unemployment rate of over 7 per4 cent; or

5 ‘‘(ii) does not have a sufficient number of jobs

6 to provide employment for individuals subject to this

7 paragraph.

8 The Secretary shall report to the Committee on Agri9 culture of the House of Representatives and the Commit10 tee on Agriculture, Nutrition, and Forestry of the Senate

11 on the basis on which the Secretary made this decision.

12 ‘‘(D) An individual who has been disqualified from

13 the food stamp program by reason of subparagraph (A)

14 may reestablish eligibility for assistance—

15 ‘‘(i) by meeting the requirements of subpara16 graph (A);

17 ‘‘(ii) by becoming exempt under subparagraph

18 (B); or

19 ‘‘(iii) if the Secretary grants a waiver under

20 subparagraph (C).

21 ‘‘(E) A household (as defined in section 3(i)) that in22 cludes an individual who is not exempt under paragraph

23 (2) and who refuses to work, refuses to look for work,

24 turns down a job, or refuses to participate in the State

25 program if the State places the individual in such program
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1 shall be ineligible to receive food stamp benefits. The State

2 agency shall reduce, by such amount the State considers

3 appropriate, the amount otherwise payable to a household

4 that includes an individual who fails without good cause

5 to comply with other requirements of the WAGE Plan

6 signed by the individual.

7 ‘‘(F) The State agency shall make an initial assess8 ment of the skills, prior work experience, and employ9 ability of each participant not exempted under subpara10 graph (B) within 6 months of initial certification. The

11 State agency shall use such assessment, in consultation

12 with the program participant, to develop a WAGE Plan

13 for the participant. Such plan—

14 ‘‘(i) shall provide that participation in food

15 stamp employment and training activities shall be a

16 condition of eligibility for food stamp benefits, ex17 cept during any period during which the individual

18 is employed in full-time unsubsidized employment in

19 the private sector;

20 ‘‘(ii) shall establish an employment goal and a

21 plan for moving the individual into private sector

22 employment immediately;

23 ‘‘(iii) shall establish the obligations of the indi24 vidual, which shall include actions that will help the
315

•S 840 IS

1 individual obtain and keep private sector employ2 ment; and

3 ‘‘(iv) may require that the individual enter the

4 State program approved under part F of title IV of

5 the Social Security Act if the caseworker determines

6 that the individual will need education, training, job

7 placement assistance, wage enhancement, or other

8 services to obtain private sector employment.’’.

9 (b) ENHANCED EMPLOYMENT AND TRAINING PRO10 GRAM.—Section 16(h)(1) of the Food Stamp Act of 1977

11 (7 U.S.C. 2025 (h)(1)) is amended—

12 (1) in subparagraph (A)—

13 (A) by striking ‘‘$75,000,000’’ and insert14 ing ‘‘$150,000,000’’; and

15 (B) by striking ‘‘1991 through 1995’’ and

16 inserting ‘‘1996 through 2000’’;

17 (2) by striking subparagraphs (B), (C), (E) and

18 (F) and redesignating subparagraph (D) as subpara19 graph (B); and

20 (3) in subparagraph (B) (as so redesignated),

21 by striking ‘‘for each’’ and all that follows through

22 ‘‘of $60,000,000’’ and inserting ‘‘the Secretary shall

23 allocate funding’’.

24 (c) REQUIRED PARTICIPATION IN WORK AND TRAIN25 ING PROGRAMS.—Section 6(d)(4) of the Food Stamp Act
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•S 840 IS

1 of 1977 (7 U.S.C. 2015(d)(4)) is amended by adding at

2 the end the following:

3 ‘‘(O) The State agency shall provide an opportunity

4 to participate in the employment and training program

5 under this paragraph to any individual who would other6 wise become subject to disqualification under paragraph

7 (5)(A).’’.

8 (d) COORDINATING WORK REQUIREMENTS IN TRAN9 SITIONAL AID AND FOOD STAMP PROGRAMS.—Section

10 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.

11 2015(d)(4)), as amended by subsection (c), is amended by

12 adding at the end the following:

13 ‘‘(P)(i) Notwithstanding any other provision of this

14 paragraph, a State agency that meets the participation re15 quirements of clause (ii) may operate the employment and

16 training program of the State for individuals who are

17 members of households receiving allotments under this Act

18 as part of its WAGE Program under part F of title IV

19 of the Social Security Act (42 U.S.C. 681 et seq.), except

20 that sections 487(b) and 489(a)(4) shall not apply to any

21 month during which the individual participates in such

22 program while not receiving income under part A of sub23 title IV of the Social Security Act (42 U.S.C. 601 et seq.).

24 If a State agency exercises the option provided under this

25 clause, the operation of the program shall be subject to
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•S 840 IS

1 the requirements of such part F, except that any reference

2 to ‘transitional aid to families with needy children’ in such

3 part shall be deemed a reference to food stamp allotments

4 for purposes of any person not receiving income under

5 such part A.

6 ‘‘(ii) A State agency may exercise the option provided

7 under clause (i) if the State agency provides an individual

8 who is subject to the requirements of paragraph (5) who

9 is not employed at least an average of 20 hours per week

10 or participating in a workfare program under section 20

11 (or a comparable State or local program) with the oppor12 tunity to participate in an approved employment and

13 training program. A State agency shall be considered to

14 have complied with the requirements of this subparagraph

15 in any area for which a waiver under paragraph (5)(4)(C)

16 is in effect.’’.

17 SEC. 825. EXTENDING CURRENT CLAIMS RETENTION

18 RATES.

19 Section 16(a) of the Food Stamp Act of 1977 (7

20 U.S.C. 2025(a)) is amended by striking ‘‘September 30,

21 1995’’ each place it appears and inserting ‘‘September 30,

22 2002’’.

23 SEC. 826. TWO-YEAR FREEZE OF STANDARD DEDUCTION.

24 Section 5(e) of the Food Stamp Act of 1977 (7

25 U.S.C. 2014(e)) is amended in the second sentence by in-
318

•S 840 IS

1 serting ‘‘except October 1, 1995 and October 1, 1996’’

2 after ‘‘thereafter’’.

3 SEC. 827. NUTRITION ASSISTANCE FOR PUERTO RICO.

4 Section 19(a)(1)(A) of the Food Stamp Act of 1977

5 (7 U.S.C. 2028(a)(1)(A)) is amended—

6 (1) by striking ‘‘1994, and’’ and inserting

7 ‘‘1994,’’; and

8 (2) by inserting ‘‘and $1,143,000,000 for fiscal

9 year 1996,’’ before ‘‘to finance’’.

10 SEC. 828. REPEAL OF SPECIAL RULE FOR PERSONS WHO

11 DO NOT PURCHASE AND PREPARE FOOD SEP12 ARATELY.

13 (a) REPEALER.—Section 3(i) of the Food Stamp Act

14 of 1977 (7 U.S.C. 2012(i)) is amended by striking the

15 third sentence.

16 (b) CONFORMING AMENDMENT.—Section 5(a) of the

17 Food Stamp Act of 1977 (7 U.S.C. 2014(a)) is amended

18 by striking ‘‘, 16(e)(1), and the third sentence of section

19 3(i)’’ and inserting ‘‘and 16(e)(1)’’.

20 SEC. 829. EARNINGS OF CERTAIN HIGH SCHOOL STUDENTS

21 COUNTED AS INCOME.

22 Section 5(d)(7) of the Food Stamp Act of 1977 (7

23 U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and in24 serting ‘‘18’’.
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•S 840 IS

1 SEC. 830. ENERGY ASSISTANCE COUNTED AS INCOME.

2 (a) LIMITING EXCLUSION.—Section 5(d)(11) of the

3 Food Stamp Act of 1977 (7 U.S.C. 2014(d)(11)) is

4 amended—

5 (1) by striking ‘‘(A) under any Federal law, or

6 (B)’’; and

7 (2) by inserting before the comma at the end

8 the following: ‘‘, except that no benefits provided

9 under the State program under part A of title IV of

10 the Social Security Act (42 U.S.C. 601 et seq.) shall

11 be excluded under this clause’’.

12 (b) CONFORMING AMENDMENTS.—

13 (1) Section 5(e) of the Food Stamp Act of 1977

14 (7 U.S.C. 2014(e)) is amended by striking sentences

15 nine through twelve.

16 (2) Section 5(k)(2) of the Food Stamp Act of

17 1977 (7 U.S.C. 2014(k)(2)) is amended by striking

18 subparagraph (C) and redesignating subparagraphs

19 (D) through (H) as subparagraphs (C) through (G),

20 respectively.

21 SEC. 831. VENDOR PAYMENTS FOR TRANSITIONAL HOUS22 ING COUNTED AS INCOME.

23 Section 5(k)(2) of the Food Stamp Act of 1977 (7

24 U.S.C. 2014(k)(2)), as amended by section 830(b)(2), is

25 amended—

26 (1) by striking subparagraph (F); and
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•S 840 IS

1 (2) by redesignating subparagraphs (G) and

2 (H) as subparagraphs (F) and (G), respectively.

3 SEC. 832. DENIAL OF FOOD STAMP BENEFITS FOR 10 YEARS

4 TO CERTAIN INDIVIDUALS FOUND TO HAVE

5 FRAUDULENTLY MISREPRESENTED RESI6 DENCE TO OBTAIN BENEFITS.

7 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

8 2015) is amended by adding at the end the following:

9 ‘‘(i) An individual shall be ineligible to participate in

10 the food stamp program as a member of any household

11 during the 10-year period beginning on the date the indi12 vidual is found by a State to have made, or is convicted

13 in Federal or State court of having made, a fraudulent

14 statement or representation with respect to the place of

15 residence of the individual in order to receive benefits si16 multaneously from 2 or more States under the food stamp

17 program or under programs that are funded under part

18 A of title IV of the Social Security Act (42 U.S.C. 601

19 et seq.), under title XIX of such Act (42 U.S.C. 1396 et

20 seq.), or under the supplemental security income program

21 under title XVI of such Act (42 U.S.C. 1381 et seq.).’’.
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1 SEC. 833. DISQUALIFICATION RELATING TO CHILD SUP2 PORT ARREARS.

3 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

4 2015), as amended by section 833, is amended by adding

5 at the end the following:

6 ‘‘(j) A State plan under section 11 may provide that

7 no individual is eligible to participate in the food stamp

8 program as a member of any household during any period

9 such individual has a payment overdue that is both—

10 ‘‘(1) under a court order for the support of a

11 child of such individual; and

12 ‘‘(2) not included in a payment plan approved

13 by a court or the State agency designated under

14 part D of title IV of the Social Security Act (42

15 U.S.C. 651 et seq.) with which the individual is in

16 current compliance.’’.

17 SEC. 834. LIMITING ADJUSTMENT OF MINIMUM BENEFIT.

18 Section 8(a) of the Food Stamp Act of 1977 (7

19 U.S.C. 2017(a)) is amended by striking ‘‘nearest $5’’ and

20 inserting ‘‘nearest $10’’.

21 SEC. 835. PENALTY FOR FAILURE TO COMPLY WITH WORK

22 REQUIREMENTS OF OTHER PROGRAMS.

23 Section 8(d) of the Food Stamp Act of 1977 (7

24 U.S.C. 2017(d)) is amended—
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•S 840 IS

1 (1) by inserting ‘‘or any work requirement

2 under such program’’ after ‘‘assistance program’’;

3 and

4 (2) by inserting at the end ‘‘The State agency

5 may impose the same penalty on a household for

6 such failure to comply with a work requirement in

7 the program under part A of title IV of the Social

8 Security Act (42 U.S.C. 601 et seq.) that is imposed

9 under such part.’’

10 SEC. 836. RESUMPTION OF DISCRETIONARY FUNDING FOR

11 NUTRITION EDUCATION AND TRAINING PRO12 GRAM.

13 Section 19(i)(2)(A) of the Child Nutrition Act of

14 1966 (42 U.S.C. 1788(i)(2)(A)) is amended—

15 (1) by striking ‘‘Out of’’ and all that follows

16 through ‘‘and $10,000,000’’ and inserting ‘‘To carry

17 out the provisions of this section, there is hereby au18 thorized to be appropriated not to exceed

19 $10,000,000’’; and

20 (2) by striking the last sentence.
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1 SEC. 837. IMPROVEMENT OF CHILD AND ADULT CARE FOOD

2 PROGRAM OPERATED UNDER THE NATIONAL

3 SCHOOL LUNCH ACT.

4 (a) IN GENERAL.—Section 17(f)(3)(A) of the Na5 tional School Lunch Act (42 U.S.C. 1766(f)(3)(A)) is

6 amended to read as follows:

7 ‘‘(A)(i) Institutions that participate in the program

8 under this section as family or group day care home spon9 soring organizations shall be provided, for payment to

10 such homes, the reimbursement factors in accordance with

11 this subparagraph for the cost of obtaining and preparing

12 food and prescribed labor costs, involved in providing

13 meals under this section.

14 ‘‘(ii)(I) A low- or moderate-income family or group

15 day care home shall be provided the reimbursement fac16 tors without a requirement for documentation of the costs

17 described in clause (i), except that reimbursement shall

18 not be provided under this subparagraph for meals or sup19 plements served to the children of a person acting as a

20 family or group day care home provider unless such chil21 dren meet the eligibility standards for free or reduced

22 price meals under section 9 of this Act. The reimburse23 ment factors applied to such a home shall be the factors

24 in effect on the date of the enactment of the Work and

25 Gainful Employment Act. The reimbursement factors

26 under this subparagraph shall be adjusted on July 1 of
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1 each year to reflect changes in the Consumer Price Index

2 for food away from home for the most recent 12-month

3 period for which such data are available. The reimburse4 ment factors under this subparagraph shall be rounded to

5 the nearest one-fourth cent.

6 ‘‘(II) For purposes of this clause, the term ‘low- or

7 moderate-income family or group day care home’ means—

8 ‘‘(aa) a family or group day care home that is

9 located in a census tract area in which at least 50

10 percent of the children residing in such area are

11 members of households whose incomes meet the eli12 gibility standards for free or reduced price meals

13 under section 9 of this Act, as determined by the

14 family or group day care home sponsoring organiza15 tion using census tract data provided to such organi16 zation by the State agency in accordance with sub17 paragraph (B)(i);

18 ‘‘(bb) a family or group day care home that is

19 located in an area served by a school in which at

20 least 50 percent of the total number of children en21 rolled are certified to receive free or reduced price

22 meals under this Act or the Child Nutrition Act of

23 1966 (42 U.S.C. 1771 et seq.), as determined by the

24 family or group day care home sponsoring organiza25 tion using data provided to such organization by the
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1 State agency in accordance with subparagraph

2 (B)(ii); or

3 ‘‘(cc) a family or group day care home that is

4 operated by a provider whose household meets the

5 eligibility standards for free or reduced price meals

6 under section 9 of this Act.

7 ‘‘(iii)(I) Except as provided for in subclause (II), with

8 respect to meals or supplements served under this clause

9 by a family or group day care home that does not meet

10 the criteria set forth in clause (ii)(II), the reimbursement

11 factors shall be—

12 ‘‘(aa) $1.00 for lunches and suppers;

13 ‘‘(bb) $.40 for breakfasts; and

14 ‘‘(cc) $.20 for supplements.

15 Such factors shall be adjusted on July 1, 1997, and each

16 July 1 thereafter to reflect changes in the Consumer Price

17 Index for food away from home for the most recent 12-

18 month period for which such data are available. The reim19 bursement factors under this clause shall be rounded to

20 the nearest one-fourth cent. A family or group day care

21 home shall be provided a reimbursement factor under this

22 subclause without a requirement for documentation of the

23 costs described in clause (i), except that reimbursement

24 shall not be provided under this clause for meals or supple25 ments served to the children of a person acting as a family
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1 or group day care home provider unless such children meet

2 the eligibility standards for free or reduced price meals

3 under section 9 of this Act.

4 ‘‘(II) A family or group day care home that does not

5 meet the criteria set forth in clause (ii)(II), may elect to

6 be provided a reimbursement factor determined in accord7 ance with the following requirements:

8 ‘‘(aa) With respect to meals or supplements

9 served under this subsection to children who are

10 members of households whose incomes meet the eli11 gibility standards for free or reduced price meals

12 under section 9 of this Act, the family or group day

13 care home shall be provided reimbursement factors

14 set by the Secretary in accordance with subclause

15 (ii)(I).

16 ‘‘(bb) With respect to meals or supplements

17 served under this subsection to children who are

18 members of households whose incomes do not meet

19 such eligibility standards, the family or group day

20 care home shall be provided a reimbursement factor

21 in accordance with subclause (I).

22 ‘‘(III) A family or group day care home electing to

23 use the procedures under subclause (II) may consider a

24 child with a parent participating in the WAGE program

25 established under part F of title IV of the Social Security
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1 Act or a State child care program with an income eligi2 bility limit that does not exceed the eligibility standard

3 for free or reduced price meals under section 9 of this

4 Act, to be a child who is a member of a household whose

5 income meets the eligibility standards under section 9 of

6 this Act. A family or group day care home may elect to

7 receive the reimbursement factors prescribed under clause

8 (ii)(I) solely for such children if it does not wish to have

9 income statements collected from parents.

10 ‘‘(IV) The Secretary shall prescribe simplified meal

11 counting and reporting procedures for use by family and

12 group day care homes that elect to use the procedures

13 under subclause (II) and by family and group day care

14 home sponsoring organizations that serve such homes.

15 Such procedures may include the following:

16 ‘‘(aa) Setting an annual percentage for each

17 such home of the number of meals served that are

18 to be reimbursed in accordance with the reimburse19 ment factors prescribed under clause (ii)(I) and an

20 annual percentage of the number of meals served

21 that are to be reimbursed in accordance with the re22 imbursement factors prescribed under clause (ii)(I),

23 based on the incomes of children enrolled in the

24 home in a specified month or other period.
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1 ‘‘(bb) Setting blended reimbursement factors

2 for a home annually based on the incomes of chil3 dren enrolled in the home in a specified month or

4 period.

5 ‘‘(cc) Placing a home into one of several reim6 bursement categories annually based on the percent7 age of children in the home whose households have

8 incomes that meet the eligibility standards under

9 section 9 of this Act.

10 ‘‘(dd) Such other simplified procedures as the

11 Secretary may prescribe.’’.

12 (b) PROVISION OF DATA TO FAMILY OR GROUP DAY

13 CARE HOMES.—Section 17(f)(3) of such Act (42 U.S.C.

14 1766(f)(3)) is amended—

15 (1) by redesignating subparagraphs (B) and

16 (C) as subparagraphs (D) and (E), respectively; and

17 (2) by inserting after subparagraph (A) (as

18 amended by subsection (a)) the following new sub19 paragraph:

20 ‘‘(B)(i) The Secretary shall provide to each State

21 agency administering a child and adult care food program

22 under this section data from the most recent decennial

23 census for which such data are available showing which

24 census tracts in the State meet the requirements of sub25 paragraph (A)(ii)(II)(aa). The State agency shall provide
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1 such data to family or group day care home sponsoring

2 organizations located in the State.

3 ‘‘(ii) Each State agency administering a child and

4 adult care food program under this section shall annually

5 provide to family or group day care home sponsoring orga6 nizations located in the State a list of all schools in the

7 State in which at least 50 percent of the children are en8 rolled and certified to receive free or reduced price meals

9 under this Act or the Child Nutrition Act of 1966 (42

10 U.S.C. 1771 et seq.). The Secretary shall direct State

11 agencies administering the school lunch program under

12 this Act and the school breakfast program under the Child

13 Nutrition Act of 1966 to collect this information annually

14 and to provide it on a timely basis to the State agency

15 administering the program under this section.’’.

16 (c) GRANTS TO STATES TO PROVIDE ASSISTANCE TO

17 FAMILY OR GROUP DAY CARE HOMES.—Section 17(f)(3)

18 of such Act (42 U.S.C. 1766(f)(3)) is amended by insert19 ing after subparagraph (B) (as added by subsection

20 (b)(2)) the following new subparagraph:

21 ‘‘(C)(i) From amounts appropriated to carry out this

22 section, the Secretary shall reserve $2,000,000 in fiscal

23 year 1996 and $5,000,000 in fiscal year 1997 to provide

24 grants to States for the purpose of providing grants to

25 family and day care home sponsoring organizations and
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1 other appropriate organizations to secure and provide

2 training, materials, automated data processing assistance,

3 and other assistance for the staff of such sponsoring orga4 nizations and for family and group day care homes in

5 order to assist in the implementation of the requirements

6 contained in subparagraph (A).

7 ‘‘(ii) From amounts appropriated to carry out this

8 section, the Secretary shall reserve $5,000,000 in fiscal

9 year 1998 and in each fiscal year thereafter to provide

10 grants to States for the purpose of making grants to fam11 ily or group day care home sponsoring organizations and

12 other appropriate organizations to assist low- or moderate13 income family or group day care homes (as such term is

14 defined in subparagraph (A)(ii)(II)) to become licensed or

15 registered for the program under this section or overcome

16 other barriers to the program.’’.

17 (d) EFFECTIVE DATES.—

18 (1) IN GENERAL.—The amendments made by

19 subsections (a) and (b) shall take effect on July 1,

20 1996.

21 (2) GRANTS TO STATES.—The amendment

22 made by subsection (c) shall take effect on the date

23 of the enactment of this Act.
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1 Subtitle D—Supplemental Security

2 Income

3 SEC. 841. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI

4 DISABILITY BENEFITS.

5 Section 1631 (42 U.S.C. 1383) is amended by adding

6 at the end the following new subsection:

7 ‘‘(o)(1) Notwithstanding any other provision of law,

8 if the Commissioner of Social Security determines that an

9 individual, who is 18 years of age or older, is eligible to

10 receive benefits pursuant to section 1614(a)(3), the Com11 missioner shall, at the time of the determination, either

12 exempt the individual from an eligibility review or estab13 lish a schedule for reviewing the individual’s continuing

14 eligibility in accordance with paragraph (2).

15 ‘‘(2)(A) The Commissioner shall establish a periodic

16 review with respect to the continuing eligibility of an indi17 vidual to receive benefits, unless the individual is exempt

18 from review under subparagraph (C) or is subject to a

19 scheduled review under subparagraph (B). A periodic re20 view under this subparagraph shall be initiated by the

21 Commissioner not later than 30 months after the date a

22 determination is made that the individual is eligible for

23 benefits and every 30 months thereafter, unless a waiver

24 is granted under section 221(i)(2). However, the Commis25 sioner shall not postpone the initiation of a periodic review
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1 for more than 12 months in any case in which such waiver

2 has been granted unless exigent circumstances require

3 such postponement.

4 ‘‘(B)(i) In the case of an individual, other than an

5 individual who is exempt from review under subparagraph

6 (C) or with respect to whom subparagraph (A) applies,

7 the Commissioner shall schedule a review regarding the

8 individual’s continuing eligibility to receive benefits at any

9 time the Commissioner determines, based on the evidence

10 available, that there is a significant possibility that the

11 individual may cease to be entitled to such benefits.

12 ‘‘(ii) The Commissioner may establish classifications

13 of individuals for whom a review of continuing eligibility

14 is scheduled based on the impairments that are the basis

15 for such individuals’ eligibility for benefits. A review of

16 an individual covered by a classification shall be scheduled

17 in accordance with the applicable classification, unless the

18 Commissioner determines that applying such schedule is

19 inconsistent with the purpose of this Act or the integrity

20 of the supplemental security income program.

21 ‘‘(C)(i) The Commissioner may exempt an individual

22 from review under this subsection, if the individual’s eligi23 bility for benefits is based on a condition that, as a prac24 tical matter, has no substantial likelihood of improving to
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1 a point where the individual will be able to perform sub2 stantial gainful activity.

3 ‘‘(ii) The Commissioner may establish classifications

4 of individuals who are exempt from review under this sub5 section based on the impairments that are the basis for

6 such individuals’ eligibility for benefits. Notwithstanding

7 any such classification, the Commissioner may, at the time

8 of determining an individual’s eligibility, schedule a review

9 of such individual’s continuing eligibility if the Commis10 sioner determines that a review is necessary to preserve

11 the integrity of the supplemental security income program.

12 ‘‘(3) The Commissioner may revise a determination

13 made under paragraph (1) and schedule a review under

14 paragraph (2)(B), if the Commissioner obtains credible

15 evidence that an individual may no longer be eligible for

16 benefits or the Commissioner determines that a review is

17 necessary to maintain the integrity of the supplemental

18 security income program. Information obtained under sec19 tion 1137 may be used as the basis to schedule a review.

20 ‘‘(4)(i) The requirements of sections 1614(a)(4) and

21 1633 shall apply to reviews conducted under this sub22 section.

23 ‘‘(ii) Such reviews may be conducted by the applicable

24 State agency or the Commissioner, whichever is appro25 priate.’’.
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1 SEC. 842. NONPAYMENT OF SSI DISABILITY BENEFITS TO

2 SUBSTANCE ABUSERS.

3 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

4 1382c(a)(3)) is amended by adding at the end the follow5 ing new subparagraph:

6 ‘‘(I) Notwithstanding subparagraph (A),

7 an individual shall not be considered disabled

8 for purposes of this title if alcoholism or drug

9 addiction would (but for this subparagraph) be

10 a contributing factor material to the Commis11 sioner’s determination that the individual is dis12 abled.’’.

13 (b) ADDITIONAL ELIGIBILITY REQUIREMENTS.—Sec14 tion 1611(e)(3)(A) (42 U.S.C. 1382(e)(3)(A)) is amend15 ed—

16 (1) in clause (i), by striking subclause (I) and

17 inserting the following new subclause:

18 ‘‘(I) In the case of any individual

19 who is eligible for benefits under this

20 title by reason of disability for the

21 month in which the Work and Gainful

22 Employment Act becomes effective,

23 whose alcoholism or drug addiction

24 was a contributing factor material to

25 the Commissioner’s determination

26 that such individual is disabled, whose
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1 benefits are terminated as a result of

2 section 1614(a)(3)(I), and who subse3 quently becomes re-eligible for bene4 fits under this title based on a disabil5 ity, such individual shall comply with

6 the provisions of this subparagraph.

7 In any case in which an individual is

8 required to comply with the provisions

9 of this subparagraph, the Commis10 sioner shall include in the individual’s

11 notification of such eligibility a notice

12 informing the individual of such re13 quirement.’’; and

14 (2) in clause (vi)—

15 (A) in subclause (I), by striking ‘‘who is el16 igible for benefits’’ through ‘‘is disabled,’’ and

17 inserting ‘‘described in clause (i),’’;

18 (B) in subclause (V), by striking ‘‘or (v)’’;

19 and

20 (C) by redesignating clause (vi) as clause

21 (v).

22 (c) CONFORMING AMENDMENTS.—

23 (1) Section 1611(e)(3)(B)(iii)(II)(aa) (42

24 U.S.C. 1382(e)(3)(B)(iii)(II)(aa)) is amended by

25 striking ‘‘with respect to whom’’ through ‘‘they are
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1 disabled’’ and inserting ‘‘described in subparagraph

2 (A)(i)’’.

3 (2) Section 201(b)(3) of the Social Security

4 Independence and Program Improvements Act of

5 1994 (42 U.S.C. 425 note) is amended by striking

6 subparagraph (C).

7 (d) MEDICAID BENEFITS.—Section 1634(e) (42

8 U.S.C. 1383c(e)) is amended—

9 (1) by striking ‘‘or (v)’’;

10 (2) by inserting ‘‘(1)’’ after ‘‘(e)’’; and

11 (3) by inserting at the end thereof:

12 ‘‘(2) Each person who is eligible for benefits

13 under this title by reason of disability for the month

14 in which the Work and Gainful Employment Act be15 comes effective and whose benefits are terminated as

16 a result of section 1614(a)(3)(I) shall be deemed to

17 be receiving such benefits for purposes of title

18 XIX.’’.

19 (e) PAYMENT OF BENEFITS TO REPRESENTATIVE

20 PAYEES.—

21 (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C.

22 1383(a)(2)(A)(ii)(II)) is amended to read as follows:

23 ‘‘(II) In the case of an indi24 vidual described in section

25 1611(e)(3)(A)(i)(I), the payment of
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1 benefits under this title by reason of

2 disability to a representative payee

3 shall be deemed to serve the interest

4 of the individual under this title. In

5 any case in which payment is so

6 deemed under this subclause to serve

7 the interest of an individual, the Com8 missioner shall include, in the individ9 ual’s notification of such eligibility, a

10 notice that the Commissioner is re11 quired by the Social Security Act to

12 pay the individual’s benefits to a rep13 resentative payee.’’.

14 (2) Section 1631(a)(2)(B)(vii) (42 U.S.C.

15 1383(a)(2)(B)(vii)) is amended by striking ‘‘, if alco16 holism’’ through ‘‘individual is disabled’’ and insert17 ing in lieu thereof ‘‘who is described in section

18 1611(e)(3)(A)(i)(I)’’.

19 (3) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

20 1383(a)(2)(D)(i)(II)) is amended by striking ‘‘alco21 holism or drug addiction is a contributing factor ma22 terial to the Commissioner’s determination that the

23 individual is disabled’’ and inserting ‘‘who is de24 scribed in section 1611(e)(3)(A)(i)(I)’’.
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1 TITLE IX—LEGISLATIVE

2 PROPOSALS; EFFECTIVE DATE

3 SEC. 901. SECRETARIAL SUBMISSION.

4 The Secretary of Health and Human Services shall,

5 within 90 days after the date of the enactment of this Act,

6 submit to the appropriate committees of the Congress, a

7 legislative proposal providing such technical and conform8 ing amendments in the law as are required by the provi9 sions of this Act.

10 SEC. 902. EFFECTIVE DATE.

11 (a) IN GENERAL.—Except as otherwise specifically

12 provided in this Act, this Act and the amendments made

13 by this shall be effective with respect to calendar quarters

14 beginning on or after October 1, 1995.

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

16 Secretary of Health and Human Services determines re17 quires State legislation (other than legislation appropriat18 ing funds) in order to meet the additional requirements

19 imposed by this Act or the amendments made by this Act,

20 the State shall not be regarded as failing to comply with

21 such requirements before the first day of the first calendar

22 quarter beginning after the close of the first regular ses23 sion of the State legislature that begins after the date of

24 the enactment of this Act. For purposes of this subsection,

25 in the case of a State that has a 2-year legislative session,
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1 each year of the session shall be treated as a separate reg2 ular session of the State legislature.

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