II

104TH CONGRESS

1ST SESSION S. 834

To restore the American family, reduce illegitimacy, and reduce welfare

dependence.

IN THE SENATE OF THE UNITED STATES

MAY 19 (legislative day, MAY 15), 1995

Mr. FAIRCLOTH (for himself, Mr. DOLE, Mr. LOTT, Mr. BROWN, Mr. BURNS,

Mr. CRAIG, Mr. HATCH, Mr. HELMS, Mr. KEMPTHORNE, Mr. MCCONNELL, and Mr. THURMOND) introduced the following bill; which was read

twice and referred to the Committee on Finance

A BILL

To restore the American family, reduce illegitimacy, and

reduce welfare dependence.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Real Welfare Reform

5 Act of 1995’’.

6 SEC. 2. REFERENCES IN ACT; TABLE OF CONTENTS.

7 (a) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex8 cept as otherwise specifically provided, whenever in this

9 Act an amendment is expressed in terms of an amendment
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1 to or repeal of a section or other provision, the reference

2 shall be considered to be made to that section or other

3 provision of the Social Security Act.

4 (b) TABLE OF CONTENTS.—The table of contents for

5 this Act is as follows:

Sec. 1. Short title.

Sec. 2. References in act; table of contents.

TITLE I—WELFARE SPENDING CAP AND BLOCK GRANTS

Subtitle A—Capping the Aggregate Growth of Welfare Spending

Sec. 101. Cap on growth of Federal spending on certain welfare programs.

Sec. 102. Savings from welfare spending limits to be used for deficit reduction.

Subtitle B—Welfare Block Grant Program

Sec. 111. Establishment of welfare block grant program.

Sec. 112. Repeal of certain welfare programs.

Sec. 113. Rainy day fund.

Sec. 114. No limitation on use of non-Federal funds.

Sec. 115. Substantial noncompliance.

Sec. 116. Reporting requirements.

Sec. 117. Eligibility under the medicaid program.

TITLE II—WORK PROGRAM-RELATED REQUIREMENTS ON STATES

IN EXPENDING CERTAIN BLOCK GRANT FUNDS

Sec. 201. Definitions.

Subtitle A—Workfare and Dependency Reduction Program

Sec. 211. Purpose of program.

Sec. 212. Requirement to operate a workfare and dependency reduction program.

Sec. 213. Program participation requirements.

Sec. 214. Community work service program.

Sec. 215. Benefits to wages program.

Sec. 216. Penalties relating to noncustodial parents.

Sec. 217. Work requirements eliminated for groups which no longer receive

benefits.

Subtitle B—Work Requirement for Food Stamp Equivalent Households

Sec. 221. Work requirement for able-bodied nonparents in food stamp equivalent households.

Sec. 222. Work requirements eliminated for groups which no longer receive

benefits.

Subtitle C—Evaluation of Training Programs

Sec. 231. Evaluation of training programs.
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TITLE III—PROMOTING FAMILIES

Sec. 301. Sense of the Congress.

Subtitle A—Eligibility for Certain Welfare Block Grant Funds

Sec. 311. Denial of certain assistance for certain young unwed parents and

their children.

Sec. 312. Benefit provisions regarding additional children.

Sec. 313. Provisions relating to paternity establishment.

Subtitle B—Additional Earned Income Tax Credit for Married Individuals

Sec. 321. Additional earned income credit for married individuals.

Subtitle C—Expansion of Abstinence Education

Sec. 331. Abstinence education grants.

TITLE IV—RECOMMENDATIONS

Sec. 401. Educational activities for custodial parents under 19 years of age.

Sec. 402. Recommendation that certain applicants for assistance conduct job

search activities.

Sec. 403. Reduction of benefits to families who also receive housing assistance.

TITLE V—CHILD SUPPORT ENFORCEMENT

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

Sec. 502. State information systems.

Sec. 503. National information systems.

Sec. 504. Income withholding.

Sec. 505. Uniform terms in orders.

Sec. 506. Improvements in paternity establishment.

Sec. 507. Waiver of fee for certain individuals receiving child support collection

or paternity determination services.

Sec. 508. Effective date.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Repeal of the Davis-Bacon Act.

Sec. 602. Elimination of medicaid benefits with respect to fugitive felons and

probation and parole violators.

Sec. 603. Restriction of certain legal challenges.

Sec. 604. Commodity distribution in lieu of vouchers under the WIC program.

TITLE VII—SEVERABILITY AND EFFECTIVE DATE

Sec. 701. Severability.

Sec. 702. Effective date.
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1 TITLE I—WELFARE SPENDING

2 CAP AND BLOCK GRANTS

3 Subtitle A—Capping the Aggregate

4 Growth of Welfare Spending

5 SEC. 101. CAP ON GROWTH OF FEDERAL SPENDING ON

6 CERTAIN WELFARE PROGRAMS.

7 (a) RESTRICTIONS ON SPENDING.—The total amount

8 of Federal spending for the programs listed in subsection

9 (b) shall not exceed—

10 (1) in fiscal year 1996, an amount equal to—

11 (A) the sum of—

12 (i) the total Federal spending for fis13 cal year 1995 for the programs repealed or

14 terminated in section 112;

15 (ii) the total Federal spending for fis16 cal year 1995 for the refundable portion of

17 the earned income credit under section 32

18 of the Internal Revenue Code of 1986;

19 (iii) the total Federal spending for fis20 cal year 1995 for the head start programs

21 carried out under the Head Start Act;

22 (iv) the total Federal spending for fis23 cal year 1995 for cash, medical, and social

24 services assistance furnished to refugees

25 and entrants under title IV of the Immi-
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1 gration and Nationality Act and section

2 501 of the Refugee Education Assistance

3 Act of 1980; and

4 (v) the special supplemental food pro5 gram for women, infants, and children car6 ried out under section 17 of the Child Nu7 trition Act of 1966; minus

8 (B) the total estimated Federal amount for

9 fiscal year 1996 that the Congressional Budget

10 Office estimates—

11 (i) would have been spent had section

12 111(c)(2) (relating to prohibition on aid to

13 noncitizens) not been enacted; and

14 (ii) would have been spent had section

15 221 (relating to work requirement for able16 bodied nonparents in food stamp equiva17 lent households) not been enacted; and

18 (2) in fiscal year 1997 and each fiscal year

19 thereafter, an amount equal to the sum of—

20 (A) the total Federal spending permitted

21 under this subsection for the preceding fiscal

22 year; and

23 (B) 3 percent of such spending.

24 (b) PROGRAMS SUBJECT TO SPENDING LIMIT.—The

25 programs listed in this subsection are the following:
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1 (1) The welfare block grant program estab2 lished under section 111.

3 (2) The refundable portion of the earned in4 come credit under section 32 of the Internal Reve5 nue Code of 1986.

6 (3) The head start programs carried out under

7 the Head Start Act.

8 (4) The cash, medical, and social services as9 sistance programs for refugees and entrants under

10 title IV of the Immigration and Nationality Act and

11 section 501 of the Refugee Education Assistance Act

12 of 1980.

13 (5) The special supplemental food program for

14 women, infants, and children carried out under sec15 tion 17 of the Child Nutrition Act of 1966.

16 The adjustment in allocation based on the statewide ille17 gitimacy ratio described in section 111(a)(3)(B) and the

18 supplemental payment described in section 215(g) shall

19 not be treated as part of the welfare block grant program

20 described in paragraph (1).

21 (c) RECONCILIATION OF GROWTH LIMITS.—

22 (1) ALLOCATIONS.—The joint explanatory

23 statement accompanying a conference report on a

24 concurrent resolution on the budget described in sec25 tion 301 of the Congressional Budget Act of 1974
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1 for a fiscal year shall include allocations to each

2 committee based on the spending cap imposed by

3 subsection (a) for such fiscal year.

4 (2) RECONCILIATION DIRECTIVES.—The rec5 onciliation directives described in section 310 of the

6 Congressional Budget Act of 1974 shall specify re7 ductions for each committee necessary to comply

8 with the spending caps imposed by subsection (a) for

9 such fiscal year.

10 (3) CONSULTATION WITH COMMITTEES.—In

11 conducting any activities required under paragraphs

12 (1) and (2), the Committees on the Budget of the

13 House of Representatives and the Senate shall con14 sult with the following committees of Congress:

15 (A) The Committee on Ways and Means of

16 the House of Representatives.

17 (B) The Committee on Finance of the

18 Senate.

19 (C) The Committee on Agriculture of the

20 House of Representatives.

21 (D) The Committee on Agriculture, Nutri22 tion, and Forestry of the Senate.

23 (E) The Committee on Economic and Edu24 cational Opportunities of the House of Rep25 resentatives.
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1 (F) The Committee on Labor and Human

2 Resources of the Senate.

3 (G) The Committee on Banking and Fi4 nancial Services of the House of Representa5 tives.

6 (H) The Committee on Banking, Housing,

7 and Urban Affairs of the Senate.

8 (I) The Committee on Commerce of the

9 House of Representatives.

10 (d) REFUNDABLE PORTION OF EITC.—For purposes

11 of this title, the refundable portion of the earned income

12 credit under section 32 of the Internal Revenue Code of

13 1986 is the amount treated as an overpayment of tax

14 under section 6401(b)(1) of such Code which is allocable

15 to such credit.

16 SEC. 102. SAVINGS FROM WELFARE SPENDING LIMITS TO

17 BE USED FOR DEFICIT REDUCTION.

18 (a) DEFICIT REDUCTION.—All savings to the Federal

19 Government resulting from the spending cap imposed

20 under section 101 shall be used for deficit reduction. Such

21 savings shall not be used to fund increased spending under

22 any programs that are not subject to the spending cap.

23 (b) ADJUSTMENT OF DISCRETIONARY CAPS.—Not

24 later than 5 days after the date of enactment of this Act,

25 the President shall increase the discretionary spending
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1 limits under section 601 of the Congressional Budget Act

2 of 1974 for the budget year and any outyear affected to

3 reflect the net increase in such limits resulting from the

4 cap imposed by section 101.

5 Subtitle B—Welfare Block Grant

6 Program

7 SEC. 111. ESTABLISHMENT OF WELFARE BLOCK GRANT

8 PROGRAM.

9 (a) GRANTS AUTHORIZED.—

10 (1) IN GENERAL.—For fiscal year 1996 and

11 each fiscal year thereafter, the Secretary of Health

12 and Human Services shall make grants to the States

13 in accordance with this section.

14 (2) LIMIT ON TOTAL AMOUNT OF GRANTS.—

15 (A) IN GENERAL.—The aggregate amount

16 of grants made to States under this section for

17 a fiscal year shall not exceed the total Federal

18 spending permitted under section 101(a) for the

19 fiscal year reduced by the sum of the amount

20 to be expended by the Federal Government for

21 the fiscal year, as estimated by the Congres22 sional Budget Office, for—

23 (i) the refundable portion of the

24 earned income credit under section 32 of

25 the Internal Revenue Code of 1986;
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1 (ii) the head start programs carried

2 out under the Head Start Act;

3 (iii) cash, medical, and social services

4 assistance furnished to refugees and en5 trants under title IV of the Immigration

6 and Nationality Act and section 501 of the

7 Refugee Education Assistance Act of 1980;

8 and

9 (iv) the special supplemental food pro10 gram for women, infants, and children car11 ried out under section 17 of the Child Nu12 trition Act of 1966.

13 (B) ADJUSTMENTS.—If the programs list14 ed in clause (i) or (ii) of subparagraph (A) is

15 amended by law after the Congressional Budget

16 Office has completed the estimates required

17 under such subparagraph, the aggregate

18 amount of grants made to States under this

19 section (as determined under subparagraph

20 (A)) shall be reduced by the amount by which

21 the total Federal spending on such programs,

22 as amended, will exceed the amount determined

23 under such estimates.

24 (3) ALLOCATION TO THE STATES.—
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1 (A) IN GENERAL.—Except as provided in

2 subparagraph (B), a State shall, subject to ap3 propriations Acts, receive a grant under this

4 section for a fiscal year equal to the amount

5 which bears the same ratio to the total amount

6 appropriated for grants under this section for

7 the fiscal year as the total amount of Federal

8 funds received by the State and residents of the

9 State under the programs repealed or termi10 nated in section 112 for fiscal year 1995 bears

11 to the total amount of Federal funds received

12 by all States and the residents of all States

13 under the programs repealed or terminated in

14 section 112 for fiscal year 1995.

15 (B) ADJUSTMENT IN ALLOCATION BASED

16 ON STATEWIDE ILLEGITIMACY RATIO.—

17 (i) IN GENERAL.—Subject to appro18 priations Acts, beginning in fiscal year

19 1997 and each fiscal year thereafter, the

20 grant amount otherwise determined under

21 this paragraph for the applicable fiscal

22 year for a State shall—

23 (I) be increased by 4 percent if

24 the adjusted illegitimacy ratio in the

25 State for the applicable fiscal year is
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1 at least 2 percentage points less than

2 the illegitimacy ratio in the State for

3 fiscal year 1995;

4 (II) be increased by 2 percent if

5 the adjusted illegitimacy ratio in the

6 State for the applicable fiscal year is

7 between 0.5 percentage point and 2

8 percentage points less than the illegit9 imacy ratio for fiscal year 1995; or

10 (III) be decreased by 2 percent if

11 the adjusted illegitimacy ratio in the

12 State for the applicable fiscal year is

13 at least 2 full percentage points more

14 than the illegitimacy ratio in the State

15 for fiscal year 1995.

16 (ii) ADJUSTED ILLEGITIMACY

17 RATIO.—For purposes of clause (i), the ad18 justed illegitimacy ratio for an applicable

19 fiscal year is the ratio, expressed as a per20 centage, equal to—

21 (I) the sum of—

22 (aa) the total number of

23 out-of-wedlock births that oc24 curred in the State (as deter25 mined by the Secretary) during
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1 the most recent fiscal year for

2 which information is available,

3 and

4 (bb) the amount (if any) by

5 which the number of abortions

6 performed in the State during

7 the most recent fiscal year for

8 which information is available ex9 ceeds the number of abortions

10 performed in the State during

11 the fiscal year that precedes such

12 most recent fiscal year; divided

13 by

14 (II) the total number of births in

15 the State (as determined by the Sec16 retary) in the most recent fiscal year

17 for which information is available.

18 (iii) ILLEGITIMACY RATIO FOR FISCAL

19 YEAR 1995.—For purposes of clause (i), the

20 illegitimacy ratio for fiscal year 1995 is the

21 ratio, expressed as a percentage, equal

22 to—

23 (I) the total number of out-of24 wedlock births that occurred in the

25 State (as determined by the Sec-
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1 retary) during fiscal year 1995; di2 vided by

3 (II) the total number of births in

4 the State (as determined by the Sec5 retary) during fiscal year 1995.

6 (iv) DETERMINATION OF NUMBER OF

7 ABORTIONS.—Each State receiving a grant

8 under this section shall establish and oper9 ate a system for determining the total

10 number of abortions performed in the

11 State.

12 (v) DETERMINATION OF THE SEC13 RETARY.—The Secretary shall not adjust

14 the grant amount under this subparagraph

15 if the Secretary determines that the ad16 justed illegitimacy ratio determined for an

17 applicable fiscal year differs from the ad18 justed illegitimacy ratio determined during

19 a prior year due to a change in data re20 porting methods by the State.

21 (vi) LIMITATION.—The grant amount

22 received by a State under this paragraph

23 shall not be adjusted under this subpara24 graph if the most recent information relat25 ing to out-of-wedlock births, total births,
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1 and abortions that is available in the State

2 for determining the adjusted illegitimacy

3 ratio for an applicable fiscal year is for a

4 fiscal year prior to fiscal year 1996.

5 (vii) AUTHORIZATION OF APPROPRIA6 TIONS.—There are authorized to be appro7 priated such sums as may be necessary to

8 carry out the purposes of this subpara9 graph.

10 (b) USE OF FUNDS.—

11 (1) IN GENERAL.—A State shall use the

12 amounts received under this section to—

13 (A) provide aid to low-income households

14 located in the State; and

15 (B) provide—

16 (i) such services and activities as the

17 State deems appropriate to discourage out18 of-wedlock pregnancies; and

19 (ii) care for children born out-of-wed20 lock.

21 (2) PROVISION OF AID.—

22 (A) LOW-INCOME HOUSEHOLDS.—Except

23 as provided in subsection (c), a State shall have

24 the authority to provide aid to low-income

25 households in any manner determined appro-
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1 priate by the State, including the authority to

2 determine—

3 (i) the type of benefits constituting

4 such aid;

5 (ii) the level of benefits constituting

6 such aid; and

7 (iii) the eligibility criteria for such

8 aid.

9 (B) ACTIVITIES TO DISCOURAGE OUT-OF10 WEDLOCK PREGNANCIES AND PROVISION OF

11 CARE FOR CHILDREN BORN OUT-OF-WED12 LOCK.—Except as provided subsection (c), a

13 State shall have the authority to provide the

14 services, activities, and care described in para15 graph (1)(B), in any manner determined appro16 priate by the State, including—

17 (i) establishing or expanding pro18 grams to reduce out-of-wedlock preg19 nancies;

20 (ii) programs to promote adoption;

21 and

22 (iii) the establishment and operation

23 of closely supervised residential group

24 homes for unwed mothers and their chil25 dren.
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1 (3) DEFINITION OF LOW-INCOME HOUSE2 HOLD.—For purposes of this section, the term ‘‘low3 income household’’ means a household with an an4 nual income that is less than 175 percent of the

5 Federal poverty income guidelines issued by the De6 partment of Health and Human Services for a

7 household of the same size.

8 (c) SPECIAL RULES REGARDING USE OF FUNDS.—

9 (1) NO FUNDS USED FOR ABORTION.—A State

10 shall not use grant funds received under this section

11 for making abortion available as a method of family

12 planning or for any counseling or advising with re13 spect to abortion.

14 (2) REQUIREMENTS RELATING TO AID FOR

15 NONCITIZENS.—A State shall not use grant funds

16 received under this section for providing aid to an

17 individual who is not a United States citizen.

18 (3) CIVIL RIGHTS LAWS.—A State shall not vio19 late any requirement established by statute or regu20 lation under the following Acts in providing aid

21 using grant funds received under this section:

22 (A) Title VI of the Civil Rights Act of

23 1965.

24 (B) Section 504 of the Rehabilitation Act

25 of 1973.
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1 (C) Title IX of the Education Amendments

2 of 1972.

3 (D) The Age Discrimination Act of 1975.

4 (E) The Americans With Disabilities Act

5 of 1990.

6 (4) CHILD SUPPORT AND PATERNITY ESTAB7 LISHMENT.—A State receiving grant funds under

8 this section shall conduct child support and pater9 nity establishment activities in accordance with part

10 D of title IV of the Social Security Act.

11 (5) NO LITIGATION.—A State shall not use

12 grant funds received under this section for litigation

13 or the provision of legal services.

14 (6) AID DENIED TO FUGITIVE FELONS AND

15 PROBATION OR PAROLE VIOLATORS.—

16 (A) IN GENERAL.—A State shall not use

17 grant funds received under this section for pro18 viding aid to an individual during any period

19 during which the individual—

20 (i) is taking an action described in

21 section 1073(1) of title 18, United States

22 Code, or

23 (ii) is violating a condition of proba24 tion or parole imposed under Federal or

25 State law.
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1 (B) EXCHANGE OF INFORMATION WITH

2 LAW ENFORCEMENT AGENCIES.—A State re3 ceiving grant funds under this section shall fur4 nish to a Federal, State, or local law enforce5 ment officer, upon such officer’s request, the

6 current address of any individual receiving aid

7 under this section if the officer furnishes the

8 State with such individual’s name and notifies

9 the State that—

10 (i) such individual—

11 (I) is taking an action described

12 in section 1073(1) of title 18, United

13 States Code or violating a condition of

14 probation or parole imposed under

15 Federal or State law; or

16 (II) has information that is nec17 essary for the officer to conduct the

18 officer’s official duties;

19 (ii) the location or apprehension of

20 such recipient is within the officer’s official

21 duties; and

22 (iii) the request is made in the proper

23 exercise of those duties.

24 (d) DISTRIBUTION OF FOOD COMMODITIES.—
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1 (1) IN GENERAL.—To the extent that the State

2 expends grant funds received under this subtitle to

3 provide food assistance, the Congress strongly en4 courages State governments—

5 (A) to provide such assistance through the

6 direct distribution of a nutritionally balanced

7 selection of food commodities directly purchased

8 by the State; and

9 (B) not to provide such assistance through

10 cash aid, food coupons, or the electronic trans11 fer of funds.

12 (2) ASSISTANCE BY FEDERAL GOVERNMENT.—

13 The Department of Agriculture may assist State

14 governments in the purchase of food commodities for

15 purposes of subsection (a) by—

16 (A) entering into agreements with individ17 ual States for the purchase of food commod18 ities;

19 (B) serving as a bulk purchaser of food

20 commodities that will be provided to States in

21 accordance with any agreements reached with

22 individual States; and

23 (C) receiving reimbursement from the ap24 plicable State for such purchases.
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1 (3) DISTRIBUTION BY PARTICIPANTS IN WORK

2 PROGRAMS.—Each State that distributes commod3 ities to households under this subsection is encour4 aged to utilize members of households who are par5 ticipating in work programs in accordance with title

6 II of this Act to assist in the distribution of such

7 commodities.

8 (e) SPECIAL PROVISIONS RELATING TO USE OF

9 FUNDS WITH RESPECT TO CERTAIN POPULATIONS.—A

10 State shall comply with the provisions of title II and sub11 title A of title III with respect to providing certain cat12 egories of aid to certain individuals in low-income house13 holds.

14 (f) TREATMENT OF INTERSTATE IMMIGRANTS.—It is

15 the sense of the Congress that a State may provide a lower

16 level of aid to low-income households to an interstate im17 migrant than the State provides to a long-term resident

18 of the State.

19 (g) NO ENTITLEMENT TO RECEIVE AID.—An indi20 vidual shall not be entitled to receive aid out of grant

21 funds received by a State under this section.

22 (h) DEFINITION OF STATE.—

23 (1) IN GENERAL.—For purposes of this section,

24 the term ‘‘State’’ means each of the several States

25 of the United States, the District of Columbia, the
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1 Commonwealth of Puerto Rico, the Virgin Islands,

2 Guam, American Samoa, the Commonwealth of the

3 Northern Mariana Islands, and Indian tribes.

4 (2) INDIAN TRIBE.—For purposes of paragraph

5 (1), the term ‘‘Indian tribe’’ means any Indian tribe,

6 band, nation, or other organized group or commu7 nity, including any Alaska Native village or regional

8 or village corporation as defined in or established

9 pursuant to the Alaska Native Claims Settlement

10 Act (43 U.S.C. 1601 et seq.) which is recognized as

11 eligible for the special programs and services pro12 vided by the United States to Indians because of

13 their status as Indians.

14 SEC. 112. REPEAL OF CERTAIN WELFARE PROGRAMS.

15 (a) REPEALS.—

16 (1) CASH AID.—

17 (A) Part A of title IV of the Social Secu18 rity Act (42 U.S.C. 601 et seq.) (relating to the

19 program of aid to families with dependent chil20 dren and emergency assistance to needy fami21 lies with children), other than section 402(g), is

22 repealed.

23 (B) Part B of title IV of the Social Secu24 rity Act (42 U.S.C. 620 et seq.) (relating to

25 child and family services) is repealed.
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1 (C) Title XVI of the Social Security Act

2 (42 U.S.C. 1381 et seq.) (relating to the sup3 plemental security income program) is repealed.

4 (D) Part E of title IV of the Social Secu5 rity Act (42 U.S.C. 670 et seq.) (relating to the

6 foster care and adoption assistance program) is

7 repealed.

8 (E) Notwithstanding the Act of November

9 2, 1921 (42 Stat. 208, chapter 115; 25 U.S.C.

10 13) (popularly known as the ‘‘Snyder Act’’), or

11 any other provision of law, the Bureau of In12 dian Affairs shall not provide BIA general as13 sistance (as defined in section 20.1(m) of title

14 25, Code of Federal Regulations) (relating to

15 general assistance in the form of direct finan16 cial assistance to Indians) pursuant to a pro17 gram under part 20 of such title, or by any

18 other regulation or order.

19 (2) MEDICAL AID.—

20 (A) The Indian Health Care Improvement

21 Act (25 U.S.C. 1601 et seq.) (relating to Indian

22 health services) is repealed.

23 (B) Title V of the Social Security Act (42

24 U.S.C. 701 et seq.) (relating to the Maternal
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1 and Child Health Services Block Grant Pro2 gram) is repealed.

3 (C) Section 329 of the Public Health Serv4 ice Act (42 U.S.C. 254b) (relating to migrant

5 health centers) is repealed.

6 (D) Section 330 of the Public Health Serv7 ice Act (42 U.S.C. 254c) (relating to commu8 nity health centers) is repealed.

9 (3) FOOD AID.—

10 (A) The Food Stamp Act of 1977 (7

11 U.S.C. 2011 et seq.) (relating to the food stamp

12 program and the needy families food distribu13 tion program) is repealed.

14 (B) The National School Lunch Act (42

15 U.S.C. 1751 et seq.) (relating to the school

16 lunch program, the child and adult care food

17 program, and the summer food service pro18 gram) is repealed.

19 (C) The Emergency Food Assistance Act

20 of 1983 (Public Law 98–8; 7 U.S.C. 612c note)

21 (relating to the emergency food assistance pro22 gram) is repealed.

23 (D) Part C of title III of the Older Ameri24 cans Act of 1965 (42 U.S.C. 3030e et seq.) (re25 lating to nutrition services) is repealed.
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1 (E) The Child Nutrition Act of 1966 (42

2 U.S.C. 1771 et seq.) (relating to the school

3 breakfast program and the special milk pro4 gram) is repealed.

5 (F) The Agriculture and Consumer Protec6 tion Act of 1973 (Public Law 93–86; 7 U.S.C.

7 612c note) (relating to the commodity supple8 mental food program for children and elderly

9 persons) is repealed.

10 (4) HOUSING ASSISTANCE.—

11 (A) PUBLIC HOUSING, SECTION 8 PRO12 GRAMS, ASSISTED HOUSING, AND INDIAN HOUS13 ING.—The United States Housing Act of 1937

14 (42 U.S.C. 1437 et seq.) (relating to public

15 housing, section 8 programs, assisted housing,

16 and Indian housing) is repealed.

17 (B) RURAL HOUSING ASSISTANCE.—

18 (i) Section 502 of the Housing Act of

19 1949 (42 U.S.C. 1472) (relating to rural

20 housing loans for low-income families) is

21 repealed.

22 (ii) Section 504 of the Housing Act of

23 1949 (42 U.S.C. 1474) (relating to rural

24 housing repair loan grants for very low-in25 come rural homeowners) is repealed.
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1 (iii) Section 514 of the Housing Act

2 of 1949 (42 U.S.C. 1484) (relating to

3 farm labor housing loans) is repealed.

4 (iv) Section 515 of the Housing Act of

5 1949 (42 U.S.C. 1485) (relating to rural

6 rental housing loans) is repealed.

7 (v) Section 516 of the Housing Act of

8 1949 (42 U.S.C. 1486) (relating to farm

9 labor housing assistance) is repealed.

10 (vi) Section 521 of the Housing Act of

11 1949 (42 U.S.C. 1490a) (relating to rural

12 rental assistance) is repealed.

13 (vii) Section 523 of the Housing Act

14 of 1949 (42 U.S.C. 1490c) (relating to

15 rural housing mutual and self-help tech16 nical assistance grants) is repealed.

17 (viii) Section 533 of the Housing Act

18 of 1949 (42 U.S.C. 1490m) (relating to

19 rural housing preservation grants) is re20 pealed.

21 (C) OTHER HOUSING ASSISTANCE.—

22 (i) Section 235 of the National Hous23 ing Act (12 U.S.C. 1715z) (relating to

24 homeownership assistance for lower income

25 families) is repealed.
27

•S 834 IS

1 (ii) Section 236 of the National Hous2 ing Act (12 U.S.C. 1715z–1) (relating to

3 interest reduction payments) is repealed.

4 (iii) Section 101 of the Housing and

5 Urban Development Act of 1965 (12

6 U.S.C. 1701s) (relating to rent supple7 ments) is repealed.

8 (iv) Part 256 of title 25, Code of Fed9 eral Regulations (relating to Indian hous10 ing improvement grants) is repealed.

11 (5) ENERGY AID.—

12 (A) The Low-Income Home Energy Assist13 ance Act of 1981 (42 U.S.C. 8621 et seq.) (re14 lating to home energy assistance activities) is

15 repealed.

16 (B) Part A of title IV of the Energy Con17 servation and Production Act (42 U.S.C. 6861

18 et seq.) (relating to weatherization assistance

19 for low-income persons) is repealed.

20 (6) EDUCATION AID.—

21 (A) Subpart 1 of part A of title IV of the

22 Higher Education Act of 1965 (20 U.S.C.

23 1070a et seq.) (relating to Federal Pell Grants)

24 is repealed.
28

•S 834 IS

1 (B) Part A of title I of the Elementary

2 and Secondary Education Act of 1965 (20

3 U.S.C. 6311 et seq.) (relating to grants for im4 proving basic programs operated by local edu5 cational agencies) is repealed.

6 (C) Subpart 3 of part A of title IV of the

7 Higher Education Act of 1965 (20 U.S.C.

8 1070b et seq.) (relating to Federal Supple9 mental Educational Opportunity Grants) is re10 pealed.

11 (D) Part C of title I of the Elementary

12 and Secondary Education Act of 1965 (20

13 U.S.C. 6391 et seq.) (relating to the education

14 of migratory children) is repealed.

15 (E) Chapter 1 of subpart 2 of part A of

16 title IV of the Higher Education Act of 1965

17 (20 U.S.C. 1070a–11 et seq.) (relating to Fed18 eral TRIO programs) is repealed.

19 (F) Subpart 4 of part A of title IV of the

20 Higher Education Act of 1965 (20 U.S.C.

21 1070c et seq.) (relating to Grants to States for

22 State Student Incentives) is repealed.

23 (G) Part A of title IX of the Higher Edu24 cation Act of 1965 (20 U.S.C. 1134a et seq.)

25 (relating to Grants to Institutions and Consor-
29

•S 834 IS

1 tia to Encourage Women and Minority Partici2 pation in Graduate Education) is repealed.

3 (7) JOBS AND TRAINING AID.—

4 (A) Part A of title II of the Job Training

5 Partnership Act (29 U.S.C. 1601 et seq.) (re6 lating to an adult training program) is repealed.

7 (B) Part B of title II of the Job Training

8 Partnership Act (29 U.S.C. 1630 et seq.) (re9 lating to a summer youth employment and

10 training program) is repealed.

11 (C) Part B of title IV of the Job Training

12 Partnership Act (29 U.S.C. 1691 et seq.) (re13 lating to the Job Corps) is repealed.

14 (D) Title V of the Older Americans Act of

15 1965 (42 U.S.C. 3056 et seq.) (relating to an

16 older American community service employment

17 program) is repealed.

18 (E) Part F of title IV of the Social Secu19 rity Act (42 U.S.C. 681 et seq.) (relating to the

20 JOBS program) is repealed.

21 (F) Part B of title II of the Domestic Vol22 unteer Service Act of 1973 (42 U.S.C. 5011)

23 (relating to a Foster Grandparent Program) is

24 repealed.
30

•S 834 IS

1 (G) Part C of title II of the Domestic Vol2 unteer Service Act of 1973 (42 U.S.C. 5013)

3 (relating to a Senior Companion Program) is

4 repealed.

5 (H) Part A of title IV of the Job Training

6 Partnership Act (29 U.S.C. 1671 et seq.) (re7 lating to employment and training programs for

8 Native Americans and migrant and seasonal

9 farmworkers) is repealed.

10 (I) The Secretary of Labor may not, dur11 ing fiscal year 1996, or any fiscal year there12 after, conduct or fund any employment and

13 training program for Native Americans (as such

14 term is used under section 401 of the Job

15 Training Partnership Act (29 U.S.C. 1671))

16 that is a program covered under item 16–0174–

17 0–1–504 of the budget of the President for fis18 cal year 1996 submitted to the Congress pursu19 ant to section 1108 of title 31, United States

20 Code.

21 (8) SOCIAL SERVICES.—

22 (A) Title XX of the Social Security Act

23 (42 U.S.C. 1397 et seq.) (relating to the Social

24 Services Block Grant) is repealed.
31

•S 834 IS

1 (B) The Community Services Block Grant

2 Act (42 U.S.C. 9901 et seq.) (relating to com3 munity service block grant programs) is re4 pealed.

5 (C) The Legal Service Corporation Act (42

6 U.S.C. 2996 et seq.) (relating to legal assist7 ance in noncriminal proceedings or matters to

8 persons financially unable to afford legal assist9 ance) is repealed.

10 (D) Title III of the Stewart B. McKinney

11 Homeless Assistance Act (42 U.S.C. 11331 et

12 seq.) (relating to an emergency food and shelter

13 program) is repealed.

14 (E) Title X of the Public Health Service

15 Act (42 U.S.C. 300 et seq.) (relating to popu16 lation research and voluntary family planning

17 programs) is repealed.

18 (F) The Domestic Volunteer Service Act of

19 1973 (42 U.S.C. 4950 et seq.) (relating to vol20 unteer service activities), other than parts B

21 and C of title II of such Act, is repealed.

22 (G) Part B of title III of the Older Ameri23 cans Act of 1965 (42 U.S.C. 3030d) (relating

24 to supportive services and senior centers) is re25 pealed.
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•S 834 IS

1 (H) Section 402(g) of the Social Security

2 Act (42 U.S.C. 602(g)) (relating to day care as3 sistance) is repealed.

4 (9) ASSISTANCE TO LOW-INCOME COMMUNITIES.—

5 (A) Title I of the Housing and Community

6 Development Act of 1974 (42 U.S.C. 5301 et

7 seq.) (relating to the community development

8 block grants and urban development action

9 grants) is repealed.

10 (B) The Public Works and Economic De11 velopment Act of 1965 (42 U.S.C. 3121 et seq.)

12 (relating to the Economic Development Admin13 istration) is repealed.

14 (C) The Appalachian Regional Develop15 ment Act of 1965 (40 U.S.C. App.) (relating to

16 the Appalachian regional development program)

17 is repealed.

18 (D) Section 204 of the Immigration Re19 form and Control Act of 1986 (8 U.S.C. 1255a

20 note) (relating to State legalization impact as21 sistance grants) is repealed.

22 (b) REFERENCES IN OTHER LAWS.—Except as oth23 erwise specifically provided in this Act, any reference in

24 any law, regulation, document, paper, or other record of

25 the United States to any provision that has been repealed
33

•S 834 IS

1 by reason of the amendments made in subsection (a) shall,

2 unless the context otherwise requires, be considered to be

3 a reference to such provision, as in effect immediately be4 fore the date of the enactment of this Act.

5 (c) SECRETARIAL SUBMISSION OF LEGISLATIVE PRO6 POSAL FOR TECHNICAL AND CONFORMING AMEND7 MENTS.—The Secretary of Health and Human Services,

8 the Secretary of Agriculture, the Secretary of Housing and

9 Urban Development, the Secretary of Energy, the Sec10 retary of Education, and the Secretary of Labor shall,

11 within 90 days after the date of enactment of this Act,

12 submit to the appropriate committees of Congress, a legis13 lative proposal providing for such technical and conform14 ing amendments in the law as are required by the provi15 sions of this section.

16 SEC. 113. RAINY DAY FUND.

17 A State that receives a grant under this subtitle for

18 a fiscal year may expend such grant funds (in accordance

19 with this subtitle) in such fiscal year or in any succeeding

20 fiscal year.

21 SEC. 114. NO LIMITATION ON USE OF NON-FEDERAL FUNDS.

22 Nothing in this Act shall be construed as limiting a

23 State from expending non-Federal funds in any manner

24 that the State deems appropriate.
34

•S 834 IS

1 SEC. 115. SUBSTANTIAL NONCOMPLIANCE.

2 If the Secretary of Health and Human Services

3 (hereafter in this section referred to as the ‘‘Secretary’’)

4 determines that a State is in substantial noncompliance

5 with the requirements of this subtitle in a fiscal year, the

6 Secretary shall reduce the amount to be paid to such State

7 under this subtitle for the succeeding fiscal year by an

8 amount equal to one-half of the amount that the State

9 received in the fiscal year in which the State failed to sub10 stantially comply.

11 SEC. 116. REPORTING REQUIREMENTS.

12 Not later than January 1, 1997, and each January

13 1 thereafter, each State receiving a grant under this sub14 title shall submit to the Secretary a report including—

15 (1) an accurate estimate of total State expendi16 tures on all State programs providing means-tested

17 assistance in the preceding fiscal year; and

18 (2) the average monthly number of individuals

19 in the State receiving assistance under one or more

20 of the following programs in the preceding fiscal

21 year:

22 (A) The medicaid program operated in ac23 cordance with the State plan approved under

24 title XIX of the Social Security Act.
35

•S 834 IS

1 (B) Any program operated by the State

2 that uses grant funds received by the State

3 under this subtitle.

4 (C) Any other means-tested program oper5 ated by the State that receives Federal or State

6 funds.

7 SEC. 117. ELIGIBILITY UNDER THE MEDICAID PROGRAM.

8 (a) IN GENERAL.—Section 1902(a)(10)(A)(i)(I) of

9 the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(I))

10 is amended to read as follows:

11 ‘‘(I)(aa) who are receiving aid or

12 assistance under any plan of the State

13 approved under title I, X, or XIV, or

14 ‘‘(bb) who would be eligible to re15 ceive aid or assistance under the

16 State’s plan under title XVI or part A

17 or E of title IV, as approved on the

18 day before the date of the enactment

19 of the Real Welfare Reform Act of

20 1995, if such plan were in effect,’’.

21 (b) STATE WAIVER.—A State may request a waiver

22 from the Secretary of Health and Human Services to sim23 plify the medicaid program eligibility criteria set forth in

24 section 1902(a)(10)(A)(i)(I)(bb) of the Social Security Act

25 (42 U.S.C. 1396a(a)(10)(A)(i)(I)(bb)). The Secretary
36

•S 834 IS

1 shall review any such waiver request and grant approval

2 only if Federal expenditures under the medicaid program

3 will not be increased as a result of such approval.

4 TITLE II—WORK PROGRAM-RE5 LATED REQUIREMENTS ON

6 STATES IN EXPENDING CER7 TAIN BLOCK GRANT FUNDS

8 SEC. 201. DEFINITIONS.

9 For purposes of this title and titles III and IV:

10 (1) AFDC EQUIVALENT DEPENDENT CHILD.—

11 The term ‘‘AFDC equivalent dependent child’’

12 means a dependent child member of a family that

13 would have been eligible to receive aid to families

14 with dependent children under the State plan under

15 part A of title IV of the Social Security Act (42

16 U.S.C. 601 et seq.) (as in effect on the day before

17 the date of the enactment of this Act).

18 (2) AFDC EQUIVALENT FAMILY.—The term

19 ‘‘AFDC equivalent family’’ means a family that

20 would have been eligible to receive aid to families

21 with dependent children under the State plan under

22 part A of title IV of the Social Security Act (42

23 U.S.C. 601 et seq.) (as in effect on the day before

24 the date of the enactment of this Act).
37

•S 834 IS

1 (3) AFDC–UP EQUIVALENT FAMILY.—The

2 term ‘‘AFDC–UP equivalent family’’ means a family

3 that would have been eligible to receive aid to fami4 lies with dependent children under the State plan

5 under part A of title IV of the Social Security Act

6 (42 U.S.C. 601 et seq.) (as in effect on the day be7 fore the date of the enactment of this Act) by reason

8 of the unemployment of the parent who is the prin9 cipal earner.

10 (4) DIRECT FOOD ASSISTANCE.—The term ‘‘di11 rect food assistance’’—

12 (A) includes—

13 (i) cash aid intended for the purchase

14 of food;

15 (ii) food coupons; and

16 (iii) electronic transfer of funds; and

17 (B) does not include—

18 (i) any food assistance provided to a

19 child in connection with school attendance;

20 or

21 (ii) directly distributed food commod22 ities.

23 (5) FOOD STAMP EQUIVALENT HOUSEHOLD.—

24 The term ‘‘food stamp equivalent household’’ means

25 a household that would have been eligible to receive
38

•S 834 IS

1 food stamps under the food stamp program estab2 lished under section 4 of the Food Stamp Act of

3 1977 (42 U.S.C. 2013) (as in effect on the day be4 fore the date of the enactment of this Act).

5 (6) PUBLIC HOUSING EQUIVALENT FAMILY.—

6 The term ‘‘public housing equivalent family’’ means

7 a family that would have been eligible to receive as8 sistance under title I of the United States Housing

9 Act of 1937 (42 U.S.C. 1437 et seq.) (as in effect

10 on the day before the date of the enactment of this

11 Act).

12 (7) SSI EQUIVALENT INDIVIDUAL.—The term

13 ‘‘SSI equivalent individual’’ means an individual who

14 would have been eligible to receive supplemental se15 curity income under title XVI of the Social Security

16 Act (42 U.S.C. 1381 et seq.) (as in effect on the day

17 before the date of the enactment of this Act).

18 Subtitle A—Workfare and

19 Dependency Reduction Program

20 SEC. 211. PURPOSE OF PROGRAM.

21 It is the purpose of a program operated in accordance

22 with this subtitle to reduce welfare dependence and ensure

23 that individuals who are receiving welfare assistance con24 tribute services to their communities in exchange for such

25 assistance.
39

•S 834 IS

1 SEC. 212. REQUIREMENT TO OPERATE A WORKFARE AND

2 DEPENDENCY REDUCTION PROGRAM.

3 (a) AFDC EQUIVALENT POPULATIONS.—

4 (1) ESTABLISHMENT OF PROGRAM.—If a State

5 uses grant funds received under subtitle B of title I

6 of this Act to provide direct cash assistance to a

7 population that is described under subparagraph (A)

8 or (B) of paragraph (2), the State shall establish

9 and operate a workfare and dependency reduction

10 program (in this subtitle referred to as the ‘‘pro11 gram’’) in accordance with this subtitle, and shall

12 apply the requirements of this subtitle with respect

13 to each such population.

14 (2) POPULATIONS DESCRIBED.—The popu15 lations described in this paragraph are—

16 (A) parents in an AFDC–UP equivalent

17 family; and

18 (B) adult recipients in a single adult

19 AFDC equivalent family.

20 (3) DEFINITIONS.—For purposes of this sub21 title:

22 (A) ADULT RECIPIENT.—

23 (i) IN GENERAL.—Except as provided

24 in clause (ii), the term ‘‘adult recipient’’

25 means an individual who is a member of a

26 single adult AFDC equivalent family.
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•S 834 IS

1 (ii) INDIVIDUALS EXCLUDED.—The

2 term ‘‘adult recipient’’ shall not include—

3 (I) a dependent child (unless

4 such child is the custodial parent of

5 another dependent child); or

6 (II) any parent who is described

7 in paragraph (2)(A).

8 (B) SINGLE-ADULT AFDC EQUIVALENT

9 FAMILY.—The term ‘‘single-adult AFDC equiv10 alent family’’ means an AFDC equivalent fam11 ily which includes one adult recipient and at

12 least one dependent child.

13 (b) NONCUSTODIAL PARENTS.—

14 (1) ESTABLISHMENT OF PROGRAM.—If a State

15 uses grant funds received under subtitle B of title I

16 of this Act to provide direct cash or food assistance

17 to a population of AFDC equivalent dependent chil18 dren, the State shall establish and operate a pro19 gram in accordance with this subtitle, and shall

20 apply the requirements of this subtitle with respect

21 to the population described in paragraph (2).

22 (2) NONCUSTODIAL PARENT POPULATION.—

23 The population described in this paragraph is the

24 population of individuals—
41

•S 834 IS

1 (A) who are the noncustodial parents of

2 AFDC equivalent dependent children;

3 (B) who reside in the State;

4 (C) whose place of residence or employ5 ment is known by the State; and

6 (D) who are known by the State to have

7 failed to pay required child support on behalf of

8 such a child.

9 SEC. 213. PROGRAM PARTICIPATION REQUIREMENTS.

10 (a) PARTICIPATION REQUIREMENTS FOR UNEM11 PLOYED PARENTS.—

12 (1) PARTICIPATION REQUIREMENT FOR INDI13 VIDUALS.—

14 (A) IN GENERAL.—In the case of any

15 AFDC–UP equivalent family, the State shall

16 require one parent to participate in one or a

17 combination of the activities described in sub18 paragraph (B) for at least 40 hours per week.

19 (B) ACTIVITIES DESCRIBED.—The activi20 ties described in this subparagraph include—

21 (i) the community work service pro22 gram described in section 214;

23 (ii) the benefits to wages program de24 scribed in section 215;
42

•S 834 IS

1 (iii) nonsubsidized employment as de2 scribed in subsection (c)(5)(B); and

3 (iv) supervised job search for not

4 more than 8 hours per week.

5 (2) PARTICIPATION RATE REQUIREMENT FOR

6 STATES.—With respect to individuals described in

7 paragraph (1), each State shall maintain a partici8 pation rate (as determined under subsection (d)(1))

9 of 95 percent for quarters during fiscal year 1996

10 and each fiscal year thereafter.

11 (b) PARTICIPATION REQUIREMENT FOR CERTAIN

12 NONCUSTODIAL PARENTS.—

13 (1) PARTICIPATION REQUIREMENT FOR INDI14 VIDUALS.—

15 (A) IN GENERAL.—A State shall require

16 any individual described in section 212(b)(2) to

17 participate in a State community work service

18 program described in section 214 in accordance

19 with subparagraph (B).

20 (B) PARTICIPATION REQUIREMENTS.—If

21 an individual described in section 212(b)(2)—

22 (i) is employed, such individual shall

23 be required to work under the State com24 munity work service program for not less

25 than 16 hours per week; or
43

•S 834 IS

1 (ii) is unemployed, such individual

2 shall be required to—

3 (I) work under the State commu4 nity work service program for not less

5 than 24 hours per week; and

6 (II) conduct job search activities

7 for not less than 16 hours per week.

8 (2) PARTICIPATION REQUIREMENT FOR

9 STATES.—With respect to individuals described in

10 paragraph (1), each State shall maintain a partici11 pation rate (as determined under subsection (d)(2))

12 of 50 percent for quarters during fiscal year 1996

13 and each fiscal year thereafter.

14 (c) PARTICIPATION REQUIREMENT FOR ADULT RE15 CIPIENTS IN SINGLE-ADULT FAMILIES.—

16 (1) PARTICIPATION REQUIREMENT FOR INDI17 VIDUALS.—Except as provided in subsection (a), the

18 State shall require each individual described in sec19 tion 212(a)(2)(B) to participate in—

20 (A) the State community work service pro21 gram described in section 214 for not less than

22 30 hours per week;

23 (B) the benefits to wages program de24 scribed in section 215 for not less than 30

25 hours per week; or
44

•S 834 IS

1 (C) any combination of the community

2 work service program described in section 214,

3 the benefits to wages program described in sec4 tion 215, or nonsubsidized employment de5 scribed in paragraph (5)(B) for not less than

6 30 hours per week.

7 (2) PARTICIPATION REQUIREMENT ON

8 STATES.—With respect to individuals described in

9 paragraph (1), each State shall maintain a partici10 pation rate (as determined under subsection (d)(3))

11 of—

12 (A) 25 percent for calendar quarters dur13 ing fiscal years 1996 and 1997; and

14 (B) 50 percent for calendar quarters dur15 ing fiscal year 1998 and each fiscal year there16 after.

17 (3) WORK PRIORITY FOR FAMILIES WITH

18 OLDER CHILDREN.—

19 (A) IN GENERAL.—If a single-adult family

20 includes at least one dependent child under age

21 5, the adult recipient in such family shall not

22 be required to participate in the program under

23 paragraph (1) unless at least 80 percent of all

24 adult recipients in single-adult families which

25 do not include children under age 5 are partici-
45

•S 834 IS

1 pating in the program. The previous sentence

2 shall not apply with respect to an individual to

3 whom the State has applied educational re4 quirements in accordance with the recommenda5 tion under section 401.

6 (B) FAMILY STATUS.—Beginning on the

7 date which is 10 months after the date of the

8 enactment of this Act, a family that has re9 ceived direct cash or food assistance from grant

10 funds received by the State under subtitle B of

11 title I of this Act and which after the date

12 which is 10 months after the date of the enact13 ment of this Act is classified by a State as a

14 single-adult family that does not include any

15 children under age 5 shall continue to be so

16 classified regardless of whether an additional

17 child under age 5 becomes a member of the

18 family.

19 (4) STATE OPTION TO PROVIDE EDUCATIONAL

20 ACTIVITIES OR JOB SKILLS TRAINING PROGRAM.—A

21 State may require not more than 30 percent of the

22 adult recipients required to participate in the pro23 gram under paragraph (2), on average during any

24 quarter, to engage in educational or job skills train25 ing.
46

•S 834 IS

1 (5) NONSUBSIDIZED EMPLOYMENT COUNTABLE

2 AS PARTICIPATION.—

3 (A) IN GENERAL.—An adult recipient may

4 satisfy part or all of the 30-hour per week work

5 requirement under paragraph (1)(A) by work6 ing in nonsubsidized employment.

7 (B) NONSUBSIDIZED EMPLOYMENT.—For

8 purposes of subparagraph (A), the term

9 ‘‘nonsubsidized employment’’ means employ10 ment with a private employer for wages.

11 (d) DETERMINATION OF PARTICIPATION RATES.—

12 (1) UNEMPLOYED PARENTS.—A State’s partici13 pation rate for purposes of subsection (a)(2) shall be

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

15 (A) the average weekly number of individ16 uals described in subsection (a)(1) who partici17 pated in the program under this subtitle during

18 such quarter, divided by

19 (B) the average weekly number of AFDC–

20 UP equivalent families who received direct cash

21 assistance from grant funds received by the

22 State under subtitle B of title I of this Act dur23 ing such quarter.

24 (2) NONCUSTODIAL PARENTS.—A State’s par25 ticipation rate for purposes of subsection (b)(2) shall
47

•S 834 IS

1 be the number, expressed as a percentage, equal

2 to—

3 (A) the average weekly number of individ4 uals described in subsection (b)(1) who partici5 pated in the program under this subtitle during

6 such quarter, divided by

7 (B) the average weekly number of individ8 uals described in section 212(b)(2) who are the

9 parents of AFDC equivalent children who re10 ceived direct cash or food assistance from grant

11 funds received by the State under subtitle B of

12 title I of this Act during such quarter.

13 (3) ADULT RECIPIENTS IN SINGLE-ADULT FAM14 ILIES.—

15 (A) IN GENERAL.—A State’s participation

16 rate for purposes of subsection (c)(2) shall be

17 the number, expressed as a percentage, equal to

18 the sum of—

19 (i) the percentage determined under

20 subparagraph (B), and

21 (ii) in calendar quarters beginning in

22 fiscal year 1997 and each calendar quarter

23 thereafter, the percentage determined

24 under subparagraph (C).
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•S 834 IS

1 (B) PARTICIPATION IN PROGRAM.—The

2 percentage determined under this subparagraph

3 is the number, expressed as a percentage, equal

4 to—

5 (i) the average weekly number of indi6 viduals described in subsection (c)(1) who

7 participated in the program under this

8 subtitle during such quarter, divided by

9 (ii) the average weekly number of

10 adult recipients in single adult AFDC

11 equivalent families who received direct cash

12 assistance from grant funds received by

13 the State under subtitle B of title I of this

14 Act.

15 (C) REDUCTION IN CASELOAD.—

16 (i) IN GENERAL.—The percentage de17 termined under this subparagraph is the

18 number, expressed as a percentage, equal

19 to 100 percent minus the reduction per20 centage determined under clause (ii).

21 (ii) REDUCTION PERCENTAGE.—The

22 reduction percentage determined under

23 this clause is the number, expressed as a

24 percentage, equal to—
49

•S 834 IS

1 (I) the average weekly number of

2 single-adult AFDC equivalent families

3 who received direct cash assistance

4 from grant funds received by the

5 State under subtitle B of title I of

6 this Act during such quarter, divided

7 by

8 (II) the average weekly number

9 of single-adult AFDC equivalent fami10 lies who received aid to families with

11 dependent children under the State

12 plan under title IV of the Social Secu13 rity Act in the 24-month period end14 ing on the day before the date of the

15 enactment of this Act.

16 (iii) NO PENALTY FOR INCREASE IN

17 CASELOAD.—Notwithstanding any other

18 provision of this paragraph, if the number

19 described under subclause (I) of clause (ii)

20 is greater than the number described in

21 subclause (II) of such clause, the percent22 age under this subparagraph shall be zero.

23 (iv) CERTAIN REDUCTION IN CASE24 LOAD NOT COUNTED.—Notwithstanding

25 any other provision of this paragraph, a
50

•S 834 IS

1 State’s reduction percentage determined

2 under clause (ii) shall not take into ac3 count any difference between the number

4 determined under subclause (I) of such

5 clause and the number determined under

6 subclause (II) of such clause if such dif7 ference is attributable to—

8 (I) the application of section 311

9 to certain AFDC equivalent families;

10 or

11 (II) any other provision of Fed12 eral law which has the effect of mak13 ing an AFDC equivalent family ineli14 gible for direct cash assistance from

15 grant funds received by the State

16 under subtitle B of title I of this Act.

17 SEC. 214. COMMUNITY WORK SERVICE PROGRAM.

18 (a) IN GENERAL.—Each State that is required to op19 erate a workfare and dependency reduction program under

20 this subtitle shall establish a community work service pro21 gram.

22 (b) PROGRAM DESCRIBED.—An individual participat23 ing in a State community work service program shall—
51

•S 834 IS

1 (1) work for a public or nonprofit private sector

2 organization performing such tasks as determined

3 appropriate by such organization; or

4 (2) perform work which serves the general pub5 lic interest in a for-profit private sector organization.

6 (c) BENEFITS BASED ON PERFORMANCE.—If an in7 dividual fails to meet the participation requirements im8 posed on such individual under section 213 with respect

9 to a State community work service program due to an un10 excused absence, the amount of direct cash and food as11 sistance from grant funds received by the State under sub12 title B of title I of this Act under the program to be re13 ceived by the family of the individual participating in the

14 program shall be reduced at least pro rata by the number

15 of hours of uncompleted work or job search under such

16 program.

17 (d) JOB SEARCH.—At the option of the State, an in18 dividual participating in the State community work service

19 program may satisfy the applicable participation require20 ment under subsections (a)(1), (b)(1), or (c)(1) of section

21 213 during the 6-week period beginning on the date that

22 an individual begins participation in the program if the

23 individual engages in intensive supervised job search or

24 supervised activities to improve job search and job readi25 ness skills during such period.
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•S 834 IS

1 (e) ENCOURAGEMENT TO PROVIDE CHILD CARE

2 SERVICES.—An individual participating in a State com3 munity work service program may satisfy the applicable

4 participation requirement under subsection (c)(1)(A) of

5 section 213 if such individual provides child care services

6 to other individuals participating in the program in the

7 manner, and for the period of time each week, determined

8 appropriate by the State.

9 (f) MODIFICATION TO PAYMENT SCHEDULE FOR

10 PARTICIPANTS.—States are encouraged to provide pay11 ments of aid under the program to the family of an indi12 vidual participating in a State community work service

13 program on a biweekly basis.

14 SEC. 215. BENEFITS TO WAGES PROGRAM.

15 (a) IN GENERAL.—Each State that is required to op16 erate a workfare and dependency reduction program under

17 this subtitle shall establish a benefits to wages program

18 in accordance with this section.

19 (b) PROGRAM DESCRIBED.—

20 (1) IN GENERAL.—Under a State benefits to

21 wages program, an individual described in paragraph

22 (2) shall work for a qualified employer (as defined

23 in subsection (d)) and the State shall pay a wage

24 subsidy in the amount determined by the State to

25 such employer on behalf of such individual. Such
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1 wage subsidy shall be in lieu of all or part of any

2 direct cash assistance and food assistance that the

3 individual would receive from grant funds received

4 by the State under subtitle B of title I of this Act

5 which the individual would otherwise be eligible to

6 receive.

7 (2) INDIVIDUAL DESCRIBED.—An individual de8 scribed in this paragraph is an individual who—

9 (A) is a parent in an AFDC–UP equiva10 lent family (described in section 211(a)(2)(A));

11 or

12 (B) is an adult recipient in a single adult

13 AFDC equivalent family (described in section

14 211(a)(2)(B)).

15 (c) WAGE SUBSIDY.—

16 (1) AMOUNT.—The amount of the wage subsidy

17 for an individual for a month shall be any amount

18 determined appropriate by the State.

19 (2) USE OF BLOCK GRANT FUNDS.—The wage

20 subsidy may be paid from the grant funds received

21 by the State under subtitle B of title I of this Act.

22 (d) QUALIFIED EMPLOYER.—

23 (1) IN GENERAL.—For purposes of this section,

24 an employer is qualified to receive a wage subsidy

25 under this subsection if—
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1 (A) the employer is a public or private en2 tity; and

3 (B) the employer is approved by the State

4 to participate in its benefits to wages program.

5 (2) WAGE AMOUNT.—A qualified employer shall

6 pay an individual participating in the benefits to

7 wages program an amount equal to the sum of—

8 (A) the wage subsidy determined under

9 subsection (c); and

10 (B) at the option of the employer, an addi11 tional amount to be determined by the em12 ployer.

13 (e) TREATMENT OF WAGES.—Under the State bene14 fits to wages program, wages paid to an individual by a

15 qualified employer shall be considered earned income for

16 purposes of any provision of law, except that such wages

17 shall not be taken into account in determining the eligi18 bility of such individual for medical assistance under a

19 State plan under title XIX (42 U.S.C. 1396 et seq.).

20 (f) INDIVIDUAL OPTION TO USE VOUCHERS.—

21 (1) IN GENERAL.—

22 (A) OPTION PERMITTED.—If an unem23 ployed parent described in section 211(a)(2)(A)

24 or an adult parent in a single adult family de25 scribed in section 211(a)(2)(B) is required by a
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1 State to participate in the State benefits to

2 wages program such individual shall have an

3 option to participate in such program using a

4 voucher (in the amount determined under sub5 paragraph (B)) that is payable to an employer

6 selected by the individual which employs the in7 dividual.

8 (B) AMOUNT OF VOUCHER.—For purposes

9 of subparagraph (A), the amount of a voucher

10 shall be an amount equivalent to the amount of

11 the wage subsidy described in subsection (c).

12 (2) STATE OPTION REGARDING PLACEMENT OF

13 INDIVIDUALS IN BENEFITS TO WAGES PROGRAM.—

14 States are encouraged to conduct a job placement

15 program under which the State contracts with pri16 vate entities to place individuals described in para17 graph (1) with qualified employers under the bene18 fits to wages program.

19 (g) SUPPLEMENTAL PAYMENT.—

20 (1) IN GENERAL.—The Secretary of Health and

21 Human Services shall, subject to appropriations

22 Acts, make quarterly payments to in the amount de23 termined under paragraph (2) to each State operat24 ing a benefits to wages program in accordance with

25 this subsection.
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1 (2) AMOUNT DETERMINED.—The amount de2 termined under this paragraph is a dollar amount

3 equal to the product of—

4 (A) the average quarterly number of indi5 viduals enrolled in the State’s benefits to wages

6 program; and

7 (B) $100.

8 (3) USED FOR LOW-INCOME ASSISTANCE.—A

9 State shall use any payment received under this sub10 section to provide aid to low-income households (as

11 defined in section 111(b)(2)).

12 (4) AUTHORIZATION OF APPROPRIATIONS.—

13 There are authorized to be appropriated such sums

14 as may be necessary to carry out the provisions of

15 this subsection.

16 (h) AMENDMENTS REGARDING EARNED INCOME TAX

17 CREDIT.—

18 (1) IN GENERAL.—Subsection (e) of section

19 3507 of the Internal Revenue Code of 1986 (relating

20 to earned income eligibility certificates) is amended

21 by adding at the end the following new paragraph:

22 ‘‘(6) SPECIAL RULE WITH RESPECT TO CER23 TAIN EMPLOYEES.—An employer shall obtain an

24 earned income eligibility certificate from each em25 ployee who is employed by such employer under the
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1 benefits to wages program operated in accordance

2 with section 215 of the Real Welfare Reform Act of

3 1995.’’.

4 (2) EFFECTIVE DATE.—The amendment made

5 by paragraph (1) shall apply to taxable years begin6 ning after December 31, 1995.

7 SEC. 216. PENALTIES RELATING TO NONCUSTODIAL PAR8 ENTS.

9 (a) PENALTY FOR CERTAIN NONCUSTODIAL PAR10 ENTS.—

11 (1) IN GENERAL.—If an individual described in

12 section 213(b)(1) knowingly and willfully fails to

13 participate in a State community work service pro14 gram in accordance with such section, such individ15 ual shall be subject to imprisonment in accordance

16 with State law.

17 (2) STATE ASSURANCES.—Each State operating

18 a program under this subtitle shall provide assur19 ances satisfactory to the Secretary of Health and

20 Human Services that the State has in effect laws

21 providing for the imprisonment of any individual

22 who fails to comply with section 213(b)(1) for a

23 term determined appropriate by the State.

24 (b) NO PENALTIES AGAINST FAMILY FOR NON25 COMPLIANCE OF NONCUSTODIAL PARENT.—No penalty
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1 shall be imposed under section 214(e) against a family re2 ceiving direct cash assistance from grant funds received

3 by the State under subtitle B of title I of this Act in the

4 case of a noncustodial parent’s failure to comply with sec5 tion 213(b).

6 SEC. 217. WORK REQUIREMENTS ELIMINATED FOR GROUPS

7 WHICH NO LONGER RECEIVE BENEFITS.

8 (a) IN GENERAL.—If a State ceases to provide direct

9 cash assistance to a subgroup of a population that is de10 scribed in section 211(a)(2), the State shall not be re11 quired to apply the requirements of this subtitle to such

12 subgroup.

13 (b) NONCUSTODIAL PARENTS.—If a State ceases to

14 provide direct cash assistance to a subgroup of a popu15 lation that is described in section 201(1), the State shall

16 not be required to apply the requirements of the subtitle

17 with respect to the applicable subgroups of the population

18 described in section 211(b)(2).
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1 Subtitle B—Work Requirement for

2 Food Stamp Equivalent House3 holds

4 SEC. 221. WORK REQUIREMENT FOR ABLE-BODIED

5 NONPARENTS IN FOOD STAMP EQUIVALENT

6 HOUSEHOLDS.

7 (a) IN GENERAL.—If a State uses grant funds re8 ceived under subtitle B of title I of this Act to provide

9 direct food assistance during a fiscal year to a population

10 of food stamp equivalent households, the State shall re11 quire members of such a population to perform success12 fully at least 32 hours of work per month on behalf of

13 a State or a political subdivision of a State through a pro14 gram established by the State or political subdivision prior

15 to the furnishing of direct food assistance for such month.

16 (b) EXEMPTIONS FROM REQUIREMENT.—A member

17 of a population described in subsection (a) shall be exempt

18 from the requirements of subsection (a) if the member

19 is—

20 (1) a parent residing with a dependent child

21 under 18 years of age;

22 (2) a member of a household with responsibility

23 for the care of an incapacitated person;

24 (3) mentally or physically unfit;

25 (4) under 18 years of age; or
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1 (5) 63 years of age or older.

2 SEC. 222. WORK REQUIREMENTS ELIMINATED FOR GROUPS

3 WHICH NO LONGER RECEIVE BENEFITS.

4 If a State ceases to provide direct food assistance to

5 a subgroup of a population that is a subgroup of the food

6 stamp equivalent household population, the State shall not

7 be required to apply the requirements of this subtitle with

8 respect to such subgroup.

9 Subtitle C—Evaluation of Training

10 Programs

11 SEC. 231. EVALUATION OF TRAINING PROGRAMS.

12 A State that uses grant funds received under subtitle

13 B of title I of this Act to provide assistance to low-income

14 households shall conduct ongoing evaluations of job train15 ing programs. Such evaluations shall—

16 (1) be conducted through experiments using

17 control groups chosen by scientific random assign18 ment; and

19 (2) determine whether job training programs ef20 fectively raise the hourly wage rates of individuals

21 receiving training through such programs.

22 TITLE III—PROMOTING

23 FAMILIES

24 SEC. 301. SENSE OF THE CONGRESS.

25 It is the sense of the Congress that—
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1 (1) marriage is the foundation of a successful

2 society;

3 (2) marriage is an essential social institution

4 which promotes the interests of children and society

5 at large;

6 (3) the negative consequences of an out-of-wed7 lock birth on the child, the mother, and society are

8 well documented as follows:

9 (A) the illegitimacy rate among black

10 Americans was 26 percent in 1965, but today

11 the rate is 68 percent and climbing;

12 (B) the illegitimacy rate among white

13 Americans has risen tenfold, from 2.29 percent

14 in 1960 to 22 percent today;

15 (C) the total of all out-of-wedlock births

16 between 1970 and 1991 has risen from 10 per17 cent to 30 percent and if the current trend con18 tinues, 50 percent of all births by the year 2015

19 will be out-of-wedlock;

20 (D) 82 percent of illegitimate births among

21 whites are to women with a high school edu22 cation or less;

23 (E) the one-parent family is six times more

24 likely to be poor than the two-parent family;
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1 (F) children born into families receiving

2 welfare assistance are three times more likely to

3 be on welfare when they reach adulthood;

4 (G) teenage single parent mothering is the

5 single biggest contributor to low birth weight

6 babies;

7 (H) children born out-of-wedlock are more

8 likely to experience low verbal cognitive attain9 ment, child abuse, and neglect;

10 (I) young people from single parent or

11 stepparent families are two-to-three times more

12 likely to have emotional or behavioral problems

13 than those from intact families;

14 (J) young white women who were raised in

15 a single parent family are 164 percent more

16 likely to have children out-of-wedlock, 111 per17 cent more likely to become parents as teen18 agers, and 92 percent more likely to have their

19 marriages end in divorce;

20 (K) the younger the single parent mother,

21 the less likely she is to finish high school;

22 (L) young women who have children before

23 finishing high school are more likely to receive

24 welfare assistance for a longer period of time;
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1 (M) between 1985 and 1990, the public

2 cost of births to teenage mothers under the aid

3 to families with dependent children program,

4 the food stamp program, and the medicaid pro5 gram has been estimated at $120,000,000,000;

6 (N) the absence of a father in the life of

7 a child has a negative effect on school perform8 ance and peer adjustment;

9 (O) the likelihood that a young black man

10 will engage in criminal activities doubles if he

11 is raised without a father and triples if he lives

12 in a neighborhood with a high concentration of

13 single parent families; and

14 (P) the greater the incidence of single par15 ent families in a neighborhood, the higher the

16 incidence of violent crime and burglary; and

17 (4) in light of this demonstration of the crisis

18 in our Nation, the reduction of out-of-wedlock births

19 is an important government interest and the policy

20 contained in provisions of this title addresses the cri21 sis.
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1 Subtitle A—Eligibility for Certain

2 Welfare Block Grant Funds

3 SEC. 311. DENIAL OF CERTAIN ASSISTANCE FOR CERTAIN

4 YOUNG UNWED PARENTS AND THEIR CHIL5 DREN.

6 (a) DENIAL OF CERTAIN ASSISTANCE.—

7 (1) IN GENERAL.—Except as provided in sub8 section (b), if a child is born to an individual who

9 is a member of the population described in para10 graph (2), a State shall not provide direct cash as11 sistance, direct food assistance, or direct housing as12 sistance from grant funds received by the State

13 under subtitle B of title I of this Act with respect

14 to the child, the custodial parent of the child, and

15 subsequent children born out-of-wedlock to the cus16 todial parent of the child.

17 (2) POPULATION DESCRIBED.—The population

18 described in this paragraph is the population of indi19 viduals who are unmarried and who have not ex20 ceeded age 21 (or another age that is greater than

21 21, as determined appropriate by the State).

22 (b) EXCEPTIONS.—Subsection (a) shall not apply—

23 (1) if, after the birth of the child—

24 (A) the custodian of the child marries an

25 individual who assumes lawful paternity or per-
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1 manent legal guardianship and financial respon2 sibility for the child; or

3 (B) the child is legally adopted;

4 (2) if the parents of the dependent child were

5 married during the 10-month period preceding the

6 birth of the child and 1 parent died prior to the

7 birth of the child; or

8 (3) with respect to the child after the child has

9 attained age 18.

10 (c) EFFECTIVE DATE.—This section shall apply with

11 respect to children born on or after the date that is 1 year

12 after the date of the enactment of this Act.

13 SEC. 312. BENEFIT PROVISIONS REGARDING ADDITIONAL

14 CHILDREN.

15 (a) ELIMINATION OF CERTAIN ASSISTANCE TO CER16 TAIN INDIVIDUALS.—If a State provides direct cash as17 sistance or food assistance to a population of AFDC equiv18 alent families from grant funds received by the State

19 under subtitle B of title I of this Act, such assistance shall

20 not be payable with respect to a child in such population

21 if the custodial parent of the child was, at the time of

22 the child’s birth—

23 (1) a recipient of such assistance; or
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1 (2) an individual who received such assistance

2 anytime during the 10-month period ending with the

3 birth of the child.

4 (b) EXCEPTION.—Subsection (a) shall not apply with

5 respect to a child after the child has attained age 18.

6 (c) EFFECTIVE DATE.—This section shall apply with

7 respect to children born on or after the date that is 1 year

8 after the date of the enactment of this Act.

9 SEC. 313. PROVISIONS RELATING TO PATERNITY ESTAB10 LISHMENT.

11 (a) IN GENERAL.—

12 (1) PATERNITY NOT ESTABLISHED.—Except as

13 provided in subsection (b), if a State provides the

14 assistance described in paragraph (2), the State

15 shall provide that if a family applying for such as16 sistance includes a child who has not attained age

17 18 and who was born on or after January 1, 1995,

18 with respect to whom paternity has not been estab19 lished, such assistance shall not be available for—

20 (A) such child (until the child attains age

21 18); and

22 (B) the parent or caretaker relative of such

23 child if the parent or caretaker relative of such

24 child is not the parent or caretaker relative of

25 another child for whom aid is available.
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1 (2) ASSISTANCE DESCRIBED.—The assistance

2 described in this paragraph is direct cash assistance,

3 direct food assistance, or direct housing assistance

4 from grant funds received by the State under sub5 title B of title I of this Act.

6 (b) EXCEPTIONS.—Notwithstanding subsection (a)—

7 (1) the State may use grant funds received by

8 the State under subtitle B of title I of this Act to

9 provide direct cash assistance, direct food assistance,

10 and direct housing assistance to a dependent child

11 who is up to 6 months of age for whom paternity

12 has not been established if the parent or caretaker

13 relative of the child provides the name, address, and

14 such other identifying information as the State may

15 require of an individual who may be the father of

16 the child; and

17 (2) the State may exempt up to 15 percent of

18 all families in the population described in subsection

19 (a) applying for direct cash assistance, direct food

20 assistance, and direct housing assistance from grant

21 funds received by the State under subtitle B of title

22 I of this Act which include a child who was born on

23 or after January 1, 1995, and with respect to whom

24 paternity has not been established, from the reduc25 tion imposed under subsection (a).
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1 (c) PROVISION OF AID IN VIOLATION OF PATERNITY

2 ESTABLISHMENT REQUIREMENTS.—If a State expends

3 funds in violation of the requirements of subsection (a)

4 in any fiscal year but such expenditures do not constitute

5 a failure to comply substantially with the requirements of

6 this Act, the Secretary of Health and Human Services

7 shall reduce the amount to be paid to such State under

8 subtitle B of title I of this Act for the succeeding fiscal

9 year by an amount equal to the amount of funds misused

10 by such State.

11 Subtitle B—Additional Earned In12 come Tax Credit for Married In13 dividuals

14 SEC. 321. ADDITIONAL EARNED INCOME CREDIT FOR MAR15 RIED INDIVIDUALS.

16 (a) IN GENERAL.—Paragraph (1) of section 32(a) of

17 the Internal Revenue Code of 1986 (relating to earned in18 come credit) is amended to read as follows:

19 ‘‘(1) IN GENERAL.—There shall be allowed as a

20 credit against the tax imposed by this subtitle for

21 the taxable year an amount equal to the sum of—

22 ‘‘(A) in the case of an eligible individual,

23 an amount equal to the credit percentage of so

24 much of the taxpayer’s earned income for the
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1 taxable year as does not exceed the earned in2 come amount, and

3 ‘‘(B) in the case of an eligible married in4 dividual, the applicable percentage of $1,000.’’

5 (b) APPLICABLE PERCENTAGE.—Section 32(b) of the

6 Internal Revenue Code of 1986 (relating to percentages

7 and amounts) is amended by adding at the end the follow8 ing new paragraph:

9 ‘‘(3) APPLICABLE PERCENTAGE.—The applica10 ble percentage for any taxable year is equal to 100

11 percent reduced (but not below zero percent) by 10

12 percentage points for each $1,000 (or fraction there13 of) by which the taxpayer’s earned income for such

14 taxable year exceeds $16,000.’’

15 (c) ELIGIBLE MARRIED INDIVIDUALS.—Section

16 32(c) of the Internal Revenue Code of 1986 (relating to

17 definitions and special rules) is amended by adding at the

18 end the following new paragraph:

19 ‘‘(4) ELIGIBLE MARRIED INDIVIDUAL.—The

20 term ‘eligible married individual’ means an eligible

21 individual (determined without regard to paragraph

22 (1)(A)(ii))—

23 ‘‘(A) who is married (as defined in section

24 7703) and who has lived together with the indi-
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1 vidual’s spouse at all times during such mar2 riage during the taxable year, and

3 ‘‘(B) has earned income for the taxable

4 year of at least $8,500.’’

5 (d) CONFORMING AMENDMENTS.—

6 (1) Section 32(a)(2) of the Internal Revenue

7 Code of 1986 is amended by striking ‘‘paragraph

8 (1)’’ and inserting ‘‘paragraph (1)(A)’’.

9 (2) Section 32(i) of such Code is amended to

10 read as follows:

11 ‘‘(i) INFLATION ADJUSTMENTS.—

12 ‘‘(1) IN GENERAL.—In the case of any taxable

13 year beginning after the applicable calendar year,

14 each dollar amount referred to in paragraph (2)(B)

15 shall be increased by an amount equal to—

16 ‘‘(A) such dollar amount, multiplied by

17 ‘‘(B) the cost-of-living adjustment deter18 mined under section 1(f)(3), for the calendar

19 year in which the taxable year begins, by sub20 stituting for ‘calendar year 1992’ in subpara21 graph (B) thereof—

22 ‘‘(i) ‘calendar year 1993’ in the case

23 of the dollar amounts referred to in para24 graph (2)(B)(i), and
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1 ‘‘(ii) ‘calendar year 1995’ in the case

2 of the dollar amounts referred to in para3 graph (2)(B)(ii).

4 ‘‘(2) DEFINITIONS, ETC.—For purposes of

5 paragraph (1)—

6 ‘‘(A) APPLICABLE CALENDAR YEAR.—The

7 term ‘applicable calendar year’ means—

8 ‘‘(i) 1994 in the case of the dollar

9 amounts referred to in paragraph

10 (2)(B)(i), and

11 ‘‘(ii) 1996 in the case of the dollar

12 amounts referred to in paragraph

13 (2)(B)(ii).

14 ‘‘(B) DOLLAR AMOUNTS.—The dollar

15 amounts referred to in this subparagraph are—

16 ‘‘(i) each dollar amount contained in

17 subsection (b)(2)(A), and

18 ‘‘(ii) the $16,000 amount contained in

19 subsection (b)(3) and the dollar amount

20 contained in subsection (c)(4)(B).

21 ‘‘(3) ROUNDING.—If any dollar amount after

22 being increased under paragraph (1) is not a mul23 tiple of $10, such dollar amount shall be rounded to

24 the nearest multiple of $10 (or, if such dollar
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1 amount is a multiple of $5, such dollar amount shall

2 be increased to the next higher multiple of $10).’’

3 (e) EFFECTIVE DATE.—The amendments made by

4 this section shall apply to taxable years beginning after

5 December 31, 1995.

6 Subtitle C—Expansion of

7 Abstinence Education

8 SEC. 331. ABSTINENCE EDUCATION GRANTS.

9 (a) EDUCATIONAL PROGRAMS.—

10 (1) IN GENERAL.—The Secretary of Health and

11 Human Services shall make grants to States and

12 public and private entities for the purpose of estab13 lishing educational programs beginning in the sixth

14 grade or later that emphasize the social, psycho15 logical, and health gains to be derived by abstaining

16 from sexual activity while unmarried.

17 (2) AT-RISK PROGRAMS.—In establishing pro18 grams in accordance with paragraph (1), States are

19 encouraged to experiment with programs which pro20 vide young women at high risk of teenage pregnancy

21 with rewards for avoiding pregnancy.

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated $100,000,000 in fiscal

24 year 1996, and $100,000,000 in each fiscal year there25 after to carry out the provisions of this section.
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1 TITLE IV—RECOMMENDATIONS

2 SEC. 401. EDUCATIONAL ACTIVITIES FOR CUSTODIAL PAR3 ENTS UNDER 19 YEARS OF AGE.

4 (a) IN GENERAL.—The Congress recommends that if

5 a State provides direct cash assistance to an individual

6 described in subsection (b) from grant funds received by

7 the State under subtitle B of title I of this Act—

8 (1) the State require such individual to partici9 pate in an educational activity; and

10 (2) at the State’s option, the State may re11 quire—

12 (A) the individual described in subsection

13 (b) to participate in educational activities di14 rected toward the attainment of a high school

15 diploma or its equivalent on a full-time basis

16 (as defined by the educational provider); or

17 (B) the individual described in subsection

18 (b) to participate in training or work activities

19 (in lieu of the educational activities referred to

20 in paragraph (1)) if such parent fails to make

21 good progress in successfully completing such

22 educational activities, or if it is determined

23 (prior to any assignment of the individual to

24 such educational activities) pursuant to an edu25 cational assessment that participation in such
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1 educational activities is inappropriate for such

2 parent.

3 (b) INDIVIDUAL DESCRIBED.—An individual de4 scribed in this subsection is an individual who—

5 (1) is a member of an AFDC equivalent family;

6 (2) is a custodial parent;

7 (3) has not attained 19 years of age; and

8 (4) has not successfully completed a high school

9 education (or its equivalent).

10 SEC. 402. RECOMMENDATION THAT CERTAIN APPLICANTS

11 FOR ASSISTANCE CONDUCT JOB SEARCH AC12 TIVITIES.

13 (a) DELAY IN BENEFIT FOR CERTAIN FAMILIES.—

14 (1) IN GENERAL.—The Congress recommends

15 that if a State provides direct cash assistance to a

16 family described in paragraph (2) from grant funds

17 received by the State under subtitle B of title I of

18 this Act, such family not receive such assistance

19 until any member of the family who has attained age

20 18 has conducted job search activities determined

21 appropriate by the State for a 1-month period begin22 ning on the date that the family applies for direct

23 cash assistance.

24 (2) FAMILY DESCRIBED.—A family described in

25 this paragraph is a family that—
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1 (A) is an AFDC equivalent family;

2 (B) has sufficient liquid assets (as deter3 mined by the State) to meet the basic needs of

4 the family for the 1-month period referred to in

5 paragraph (1); and

6 (C) does not include any children under 5

7 years of age.

8 (b) JOB SEARCH REQUIREMENT FOR CERTAIN INDI9 VIDUALS.—

10 (1) IN GENERAL.—The Congress recommends

11 that if a State provides direct cash assistance to a

12 family described in paragraph (2) from grant funds

13 received by the State under subtitle B of title I of

14 this Act, the State require a member of the family

15 who has attained age 18 to conduct job search ac16 tivities (as determined appropriate by the State)

17 during the first 1-month period in which the family

18 receives such aid.

19 (2) FAMILY DESCRIBED.—A family described in

20 this subsection is a family—

21 (A) that is an AFDC equivalent family

22 that is not described in subsection (a)(2); and

23 (B) does not include any children under 5

24 years of age.
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1 SEC. 403. REDUCTION OF BENEFITS TO FAMILIES WHO

2 ALSO RECEIVE HOUSING ASSISTANCE.

3 (a) IN GENERAL.—The Congress recommends that if

4 a State provides direct cash assistance to an AFDC equiv5 alent family from grant funds received by the State under

6 subtitle B of title I of this Act, the State, in determining

7 eligibility for such assistance, consider as income of the

8 family applying to receive such assistance, any rent or

9 housing subsidy provided to such family by the State, to

10 the extent that the value of such subsidy is equivalent to

11 the amount for housing included in the maximum amount

12 that would be payable by the State to a family of the same

13 composition with no other income.

14 (b) REDUCTION OF PAYMENTS TO FAMILIES WHO

15 RECEIVE PUBLIC HOUSING BENEFITS.—The Congress

16 recommends that if a State provides direct cash assistance

17 to an AFDC equivalent family from grant funds received

18 by the State under subtitle B of title I of this Act, the

19 State reduce by 25 percent each month the payment of

20 such direct cash assistance to any family that occupies a

21 unit in housing that is subsidized by the State.
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1 TITLE V—CHILD SUPPORT

2 ENFORCEMENT

3 SEC. 501. NATIONAL REPORTING OF INFORMATION RELAT4 ING TO CHILD SUPPORT WITH RESPECT TO

5 CERTAIN EMPLOYEES.

6 (a) MODIFIED W–4 REPORTING.—

7 (1) ESTABLISHMENT OF REPORTING SYSTEM.—

8 The Secretary of the Treasury, in consultation with

9 the Secretary of Labor, shall establish a system for

10 the reporting of information relating to child support

11 obligations of employees, that meets the require12 ments of this subsection.

13 (2) EMPLOYEE OBLIGATIONS.—

14 (A) EMPLOYEES SUBJECT TO CHILD SUP15 PORT WAGE WITHHOLDING.—The system shall

16 require each employee who owes a qualified

17 child support obligation to indicate, at the time

18 such obligation first arises or is modified, on a

19 W–4 form that the employee is otherwise re20 quired to file with the employer—

21 (i) the existence of the obligation;

22 (ii) the amount of the obligation;

23 (iii) the name and address of the per24 son to whom the obligation is owed; and
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1 (iv) whether health care insurance is

2 available through the employer to the fam3 ily of the employee.

4 (B) EMPLOYEES IN DESIGNATED INDUS5 TRIES.—The system shall require each em6 ployee, who is employed in a State in an indus7 try that the State has designated pursuant to

8 section 466(a)(13)(A) of the Social Security Act

9 as one with respect to which universal employ10 ment reporting would improve child support en11 forcement in a cost-effective manner, to annu12 ally file with the employer a W–4 form indicat13 ing—

14 (i) whether the employee owes a quali15 fied child support obligation; and

16 (ii) if so—

17 (I) the amount of the obligation;

18 (II) the name and address of the

19 person to whom the obligation is

20 owed; and

21 (III) whether health care insur22 ance is available through the employer

23 to the family of the employee.

24 (C) ONE-TIME UPDATING OF W–4 INFOR25 MATION OF ALL EMPLOYEES.—The system shall
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•S 834 IS

1 require each employee to file with the employer,

2 during a period that the State in which the em3 ployee is employed has prescribed pursuant to

4 section 466(a)(13)(B) of the Social Security

5 Act, a W–4 form indicating—

6 (i) whether the employee owes a quali7 fied child support obligation; and

8 (ii) if so—

9 (I) the amount of each such obli10 gation;

11 (II) the name and address of

12 each person to whom the obligation is

13 owed; and

14 (III) whether health care insur15 ance is available through the employer

16 to the family of the employee.

17 (D) QUALIFIED CHILD SUPPORT OBLIGA18 TION.—As used in this subsection, the term

19 ‘‘qualified child support obligation’’ means a

20 legal obligation to provide child support (as de21 fined in section 462(b) of the Social Security

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

23 part, through wage withholding pursuant to an

24 order issued by a court of any State or an order
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•S 834 IS

1 of an administrative process established under

2 the law of any State.

3 (3) EMPLOYER OBLIGATIONS.—Each employer

4 who receives information from an employee pursuant

5 to paragraph (2) of this subsection shall—

6 (A) not later than the later of—

7 (i) 15 days after receipt of such infor8 mation; or

9 (ii) the date the employee next re10 ceives wages or other compensation from

11 the employer,

12 forward the information to the agency des13 ignated pursuant to section 466(a)(12)(A) of

14 the Social Security Act of the State in which

15 the employee is employed by the employer; and

16 (B) withhold from the income of the em17 ployee the amount indicated on the W–4 form

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

19 a notice that the amount is incorrect, such

20 other amount as the State indicates is to be so

21 withheld), in the manner described in section

22 466(b)(6)(A)(i) of such Act.

23 (4) NEW HIRES IN CERTAIN STATES EX24 CEPTED.—This subsection shall not apply with re25 spect to the employment in a State of any employee
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•S 834 IS

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

2 of Health and Human Services determines that the

3 State—

4 (A) requires all employers in the State to

5 report to the State all basic employment infor6 mation on new hires;

7 (B) requires such information to be com8 pared with information in the State registry of

9 child support orders established pursuant to

10 section 466(a)(14) of the Social Security Act

11 and with requests from other States for infor12 mation on the location of noncustodial parents;

13 (C) maintains updated employment infor14 mation on all individuals employed in the State

15 in a manner that enables the State to effec16 tively respond to such requests; and

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

18 receipt of a notice from the State that an em19 ployee owes a qualified child support obligation,

20 to begin withholding from the income of the

21 employee the amount of the obligation, in the

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

23 the Social Security Act.
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1 (b) STATE ROLE.—Section 466(a) of the Social Secu2 rity Act (42 U.S.C. 666(a)) is amended by inserting after

3 paragraph (11) the following new paragraphs:

4 ‘‘(12) Procedures under which the State shall

5 designate a public agency to—

6 ‘‘(A) maintain the information provided by

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

8 Real Welfare Reform Act of 1995 in accordance

9 with regulations prescribed by the Secretary

10 which allow other States easy access to the in11 formation through the Interstate Locate Net12 work established under section 453(g); and

13 ‘‘(B) determine whether or not the infor14 mation described in subparagraph (A) provided

15 by an employer with respect to an employee is

16 accurate by comparing the information with the

17 information on file in the State registry of child

18 support orders established pursuant to section

19 466(a)(14), and—

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

21 the information on file in the registry, no22 tify any individual (or such individual’s

23 designee) who resides in the State and to

24 whom the employee has a legal obligation
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•S 834 IS

1 to provide child support, of such informa2 tion;

3 ‘‘(ii) if the information is not so con4 firmed due to a discrepancy between the

5 information and a copy of a child support

6 order in the registry, notify the employer

7 of the discrepancy and the correct informa8 tion using the order developed under sec9 tion 452(a)(12); or

10 ‘‘(iii) if the information is not so con11 firmed because the registry does not con12 tain a copy of an order that imposes a

13 child support obligation on the employee,

14 search the child support order registries

15 established pursuant to section 466(a)(14)

16 of the States in which the obligation is

17 most likely to have been imposed.

18 ‘‘(13) Procedures under which the State shall—

19 ‘‘(A) designate at least 1 industry, for pur20 poses of section 501(a)(2)(B) of the Real Wel21 fare Reform Act of 1995, as an industry with

22 respect to which universal employment report23 ing would improve child support enforcement in

24 a cost-effective manner;
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•S 834 IS

1 ‘‘(B) prescribe the period during which

2 individuals employed in the State are to be

3 required to file with their employers updated

4 W–4 forms as required by section 501(a)(2)(C)

5 of such Act; and

6 ‘‘(C) impose a fine—

7 ‘‘(i) against any individual employed

8 in the State who is required by section

9 501(a)(2) of such Act to file a W–4 form

10 with any employer of the individual and

11 fails to do so; and

12 ‘‘(ii) in an amount equal to the aver13 age cost of noncompliance (as determined

14 by the State) or $25, whichever is the less15 er, on any employer who fails to comply

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

17 month.’’.

18 SEC. 502. STATE INFORMATION SYSTEMS.

19 (a) STATE REGISTRIES OF CHILD SUPPORT OR20 DERS.—Section 466(a) of the Social Security Act (42

21 U.S.C. 666(a)), as amended by section 501(b), is amended

22 by inserting after paragraph (13) the following new para23 graph:
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•S 834 IS

1 ‘‘(14) Procedures requiring the State agency

2 designated pursuant to paragraph (17) to maintain

3 a child support order registry, which must include—

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

5 being enforced under the State plan; and

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

7 has or is owed a legal obligation to provide child

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

9 a copy of the order that imposes the obliga10 tion.’’.

11 (b) ACCESSIBILITY OF STATE INFORMATION RELAT12 ED TO CHILD SUPPORT.—

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

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

15 by section 501(b) and subsection (a) of this section,

16 is amended by inserting after paragraph (14) the

17 following new paragraph:

18 ‘‘(15)(A) Procedures requiring all records of the

19 State to which the agency administering the plan

20 has access and determines may be useful in locating

21 noncustodial parents or collecting child support to be

22 made accessible to any agency of any State for such

23 purpose, through the Interstate Locate Network es24 tablished under section 453(g), in accordance with

25 safeguards established to prevent release of informa-
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•S 834 IS

1 tion if the release might jeopardize the safety of any

2 individual.

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

4 access to State records provided pursuant to sub5 paragraph (A).’’.

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

7 the Social Security Act (42 U.S.C. 666(a)), as

8 amended by section 501(b), subsection (a) of this

9 section, and paragraph (1) of this subsection, is

10 amended by inserting after paragraph (15) the fol11 lowing new paragraph:

12 ‘‘(16) Procedures under which—

13 ‘‘(A) noncustodial parents (and their des14 ignees) must be given access to State parent lo15 cator services to aid in the establishment or en16 forcement of visitation rights, in accordance

17 with safeguards established to prevent release

18 of information if the release might jeopardize

19 the safety of any individual; and

20 ‘‘(B) custodial parents (and their des21 ignees) must be given access to State parent lo22 cator services to aid in the establishment and

23 enforcement of child support obligations against

24 noncustodial parents.’’.
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•S 834 IS

1 SEC. 503. NATIONAL INFORMATION SYSTEMS.

2 (a) EXPANSION OF PARENT LOCATOR SERVICE.—

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

4 is amended—

5 (1) in subsection (a)—

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

7 and

8 (B) by striking ‘‘enforcing support obliga9 tions against such parent’’ and inserting ‘‘es10 tablishing parentage, establishing, modifying,

11 and enforcing child support obligations, and (2)

12 to any noncustodial parent (or the designee of

13 the noncustodial parent) information as to the

14 whereabouts of the custodial parent when such

15 information is to be used to locate such parent

16 for the purpose of enforcing child visitation

17 rights and obligations’’;

18 (2) in subsection (b), by inserting after the sec19 ond sentence the following: ‘‘Information shall not

20 be disclosed to a custodial parent or a noncustodial

21 parent if the disclosure would jeopardize the safety

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

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

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

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

26 term appears and inserting ‘‘noncustodial parent’’.
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•S 834 IS

1 (b) ESTABLISHMENT OF INTERSTATE LOCATE NET2 WORK.—Section 453 of the Social Security Act (42 U.S.C.

3 653) is amended by adding at the end the following new

4 subsection:

5 ‘‘(g) The Secretary shall establish an Interstate Lo6 cate Network linking the Parent Locator Service and all

7 State databases relating to child support enforcement,

8 which—

9 ‘‘(1) any State may use to—

10 ‘‘(A) locate any noncustodial parent who

11 has a legal obligation to provide child support

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

13 whom such an obligation is being sought, or

14 against whom visitation rights are being en15 forced, by accessing the records of any Federal,

16 State, or other source of locate or child support

17 information, directly from one computer system

18 to another; or

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

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

21 locate information is unknown, broadcast such

22 a request to selected States or to all States;

23 ‘‘(2) allows on-line and batch processing of lo24 cate requests, with on-line access restricted to cases

25 in which the information is needed immediately
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•S 834 IS

1 (such as for court appearances), and batch process2 ing used to ‘troll’ data bases to locate individuals or

3 update information periodically; and

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

5 Interstate Locate Network through a computer ter6 minal located in the court.’’.

7 (c) INFORMATION SHARING REGULATIONS.—Section

8 452(a) of the Social Security Act (42 U.S.C. 652(a)) is

9 amended—

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

11 (9);

12 (2) by striking the period at the end of the sec13 ond sentence of paragraph (10) and inserting ‘‘;

14 and’’; and

15 (3) by inserting after paragraph (10) the fol16 lowing new paragraph:

17 ‘‘(11) prescribe regulations governing informa18 tion sharing among States, within States, and be19 tween the States and the Parent Locator Service—

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

21 a request for information for the purpose of lo22 cating a noncustodial parent or collecting child

23 support, and receive a response to the request

24 in not more than 48 hours; and
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•S 834 IS

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

2 to locate a noncustodial parent—

3 ‘‘(i) to compare all outstanding cases

4 with information in the employment

5 records of the State; and

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

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

8 noncustodial parent, then—

9 ‘‘(I) if the State has reason to

10 believe that the noncustodial parent is

11 in another particular State or States,

12 to request such State or States for in13 formation on the noncustodial parent;

14 and

15 ‘‘(II) if not, to broadcast to all

16 States a request for such informa17 tion.’’.

18 SEC. 504. INCOME WITHHOLDING.

19 (a) STATE ROLE.—Section 466(a) of the Social Secu20 rity Act (42 U.S.C. 666(a)), as amended by sections

21 501(b) and 502, is amended by inserting after paragraph

22 (16) the following new paragraphs:

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

24 designate a public agency to—
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•S 834 IS

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

2 State plan; and

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

4 457 and with all due deliberate speed, the

5 amounts collected as child support.

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

7 require any court of the State that establishes or

8 modifies a child support order to transmit a copy of

9 the order to the State agency designated pursuant to

10 paragraph (19), unless the order does not provide

11 for income withholding, and the noncustodial parent

12 and the custodial parent object.

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

14 designate a State agency to use the uniform income

15 withholding order developed under section

16 452(a)(12) to notify the agency administering the

17 State plan, any employer of an individual required to

18 pay child support through income withholding pursu19 ant to an order issued or modified in the State, and

20 the agency designated pursuant to paragraph (17) of

21 this subsection of each State in which such an em22 ployer is located, of—

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

24 ‘‘(B) the amount to be withheld; and
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•S 834 IS

1 ‘‘(C) the State agency to which the with2 held amount is to be paid.’’.

3 (b) UNIFORM WITHHOLDING ORDER.—Section

4 452(a) of the Social Security Act (42 U.S.C. 652(a)), as

5 amended by section 503(c), is amended—

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

7 (10);

8 (2) by striking the period at the end of para9 graph (11) and inserting ‘‘; and’’; and

10 (3) by inserting after paragraph (11) the fol11 lowing new paragraph:

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

13 cases in which income is to be withheld for the pay14 ment of child support, which shall—

15 ‘‘(A) contain the name of the individual

16 whose income is to be withheld, the number of

17 children covered by the order, and the individ18 ual or State to whom the withheld income is to

19 be paid; and

20 ‘‘(B) be in the form necessary to allow for

21 the service of the order on all sources of in22 come.’’.

23 (c) STATES REQUIRED TO HAVE LAWS REQUIRING

24 EMPLOYERS TO WITHHOLD CHILD SUPPORT PURSUANT

25 TO UNIFORM INCOME WITHHOLDING ORDERS.—Section
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•S 834 IS

1 466(b) of the Social Security Act (42 U.S.C. 666(b)) is

2 amended—

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

4 case of each individual employed in the State,’’ be5 fore ‘‘so much’’;

6 (2) in paragraph (6)(C), by inserting ‘‘and

7 paragraph (9)(B)’’ after ‘‘(A)’’; and

8 (3) in paragraph (9)—

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

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

11 ‘‘(B)(i) As a condition of doing business in the

12 State, any individual or entity engaged in commerce

13 in the State shall, upon receipt of a valid income

14 withholding order for any of its employees—

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

16 order to the employee subject to the order; and

17 ‘‘(II) notwithstanding paragraph (4), with18 hold, within 10 days after receipt of the order,

19 income from the employee in the manner de20 scribed in paragraph (6)(A)(i).

21 ‘‘(ii) A valid income withholding order may be

22 served on the individual or entity directly or by first23 class mail.

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

25 with a valid income withholding order may not be
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•S 834 IS

1 held liable for wrongful withholding of income from

2 the employee subject to the order.

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

4 amount equal to the average cost of noncompliance

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

6 the lesser, on any such individual or entity who re7 ceives a valid income withholding order with respect

8 to an employee of the individual or entity, and who,

9 due to negligence, fails to comply with the order

10 within 10 days after receipt.

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

12 for the administration of child support income with13 holding and related reporting of information shall

14 not collect more than the average cost of such ad15 ministration, as determined by the State.

16 ‘‘(vi) For purposes of this subparagraph, a valid

17 income withholding order is a withholding order de18 veloped under section 452(a)(12) that has been is19 sued by a court or agency of a State and is regular

20 on its face.’’.

21 SEC. 505. UNIFORM TERMS IN ORDERS.

22 Section 452(a) of the Social Security Act (42 U.S.C.

23 652(a)), as amended by sections 503(c) and 504(b), is

24 amended—
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•S 834 IS

1 (1) in paragraph (11), by striking ‘‘and’’ after

2 the semicolon;

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

4 the end of the second sentence and inserting ‘‘;

5 and’’; and

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

7 paragraph:

8 ‘‘(13) develop, in conjunction with State execu9 tive and judicial organizations, a uniform abstract of

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

11 record, with respect to each child support order in

12 the child support order registry established under

13 section 466(a)(14)—

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

15 begin under the order;

16 ‘‘(B) the circumstances upon which sup17 port payments are to end under the order;

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

19 pursuant to the order expressed as a sum cer20 tain to be paid on a monthly basis, arrearages

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

22 and any payback schedule for the arrearages;

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

24 a lump sum (nonallocated) or per child;
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•S 834 IS

1 ‘‘(E) if the award is in a lump sum, the

2 event causing a change in the support award

3 and the amount of any change;

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

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

6 the order;

7 ‘‘(H) the Social Security account numbers

8 of the parents;

9 ‘‘(I) the name, date of birth, and Social

10 Security account number (if any) of each child

11 covered by the order;

12 ‘‘(J) the identification (FIPS code, name,

13 and address) of the court that issued the order;

14 ‘‘(K) any information on health care sup15 port required by the order; and

16 ‘‘(L) the party to contact if additional in17 formation is obtained.’’.

18 SEC. 506. IMPROVEMENTS IN PATERNITY ESTABLISHMENT.

19 Section 466(a)(5)(C) of the Social Security Act (42

20 U.S.C. 666(a)(5)(C)) is amended to read as follows:

21 ‘‘(C) Procedures under which—

22 ‘‘(i) the opportunity to establish paternity

23 voluntarily and by simple affidavit is available

24 to the unmarried parents of a child at the time

25 of the child’s birth by requiring hospitals and
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•S 834 IS

1 birthing facilities to make explanatory materials

2 and forms available to the parents as part of

3 the birth certificate process;

4 ‘‘(ii) a simple, civil consent procedure is

5 available at any time for individuals who agree

6 to acknowledge parentage of a child;

7 ‘‘(iii) an acknowledgment of parentage may

8 be incorporated in a witnessed, written state9 ment that includes a statement that—

10 ‘‘(I) the individual signing such state11 ment understands the consequences of ac12 knowledging paternity;

13 ‘‘(II) such individual is signing the

14 statement voluntarily;

15 ‘‘(III) such individual does not object

16 to the court entering an order for parent17 age, based on the acknowledgment, without

18 notice prior to the entry of the order and

19 without the requirement of pleadings, serv20 ice, summons, testimony, or a hearing; and

21 ‘‘(IV) such individual understands

22 that signing such statement may create an

23 obligation to provide child support; and

24 ‘‘(iv) if under State law a court order is re25 quired to establish paternity, an acknowledg-
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•S 834 IS

1 ment of parentage as provided for under clause

2 (iii) shall be filed with a State court of appro3 priate jurisdiction within 10 days and a pater4 nity order based on such acknowledgment shall

5 be established without the requirement of plead6 ings, service, summons, testimony, or a hear7 ing.’’.

8 SEC. 507. WAIVER OF FEE FOR CERTAIN INDIVIDUALS RE9 CEIVING CHILD SUPPORT COLLECTION OR

10 PATERNITY DETERMINATION SERVICES.

11 Section 454 of the Social Security Act (42 U.S.C.

12 654) is amended—

13 (1) in paragraph (23), by striking ‘‘and’’ at the

14 end;

15 (2) in paragraph (24), by striking the period

16 and inserting ‘‘; and’’; and

17 (3) by inserting after paragraph (24) the fol18 lowing new paragraph:

19 ‘‘(25) notwithstanding subparagraphs (B), (C),

20 and (D) of paragraph (6), provide that no fee shall

21 be imposed for child support collection or paternity

22 determination services provided with respect to an

23 individual who is denied aid to low-income house24 holds located in a State as a result of the require25 ments of the Real Welfare Reform Act of 1995.’’.
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•S 834 IS

1 SEC. 508. EFFECTIVE DATE.

2 (a) IN GENERAL.—Except as provided in subsection

3 (b), the amendments made by this title shall take effect

4 on the first day of the first fiscal year beginning after the

5 date of the enactment of this Act.

6 (b) DELAY IF STATE LEGISLATION REQUIRED.—In

7 the case of a State which the Secretary of Health and

8 Human Services determines requires State legislation

9 (other than legislation authorizing or appropriating funds)

10 in order to comply with the amendments made by this

11 title, the State shall not be regarded as failing to comply

12 with such amendments solely on the basis of its failure

13 to meet the requirements of such amendments before the

14 first day of the first calendar quarter beginning after the

15 close of the first regular session of the State legislature

16 that begins after the date of the enactment of this Act.

17 For purposes of the preceding sentence, in the case of a

18 State that has a 2-year legislative session, each year of

19 such session shall be deemed to be a separate regular ses20 sion of the State legislature.

21 TITLE VI—MISCELLANEOUS

22 PROVISIONS

23 SEC. 601. REPEAL OF THE DAVIS-BACON ACT.

24 (a) IN GENERAL.—The Act of March 31, 1931 (com25 monly known as the Davis-Bacon Act; 40 U.S.C. 276a et

26 seq.), is repealed.
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•S 834 IS

1 (b) REDUCTION IN BUDGET CAPS.—

2 (1) DISCRETIONARY SPENDING.—Upon the en3 actment of this section, the Director of the Office of

4 Management and Budget shall make downward ad5 justments in the discretionary spending limits (new

6 budget authority and outlays), as adjusted, set forth

7 in section 601(a)(2) of the Congressional Budget

8 Act of 1974 for each of fiscal years 1996 through

9 2000, by an amount equal to the discretionary sav10 ings resulting from the enactment of this section at11 tributable to each such fiscal year.

12 (2) SECTION 602 ALLOCATIONS.—

13 (A) HOUSE APPROPRIATIONS COMMIT14 TEE.—The allocations in effect under section

15 602(a)(1) of the Congressional Budget Act of

16 1974 for fiscal year 1996 for the Committee on

17 Appropriations of the House of Representatives

18 are reduced by the amount of discretionary sav19 ings in outlays and budget authority determined

20 under paragraph (1).

21 (B) SENATE APPROPRIATIONS COMMIT22 TEE.—The allocations in effect under section

23 602(a)(2) of the Congressional Budget Act of

24 1974 for fiscal year 1996 for the Committee on

25 Appropriations of the Senate are reduced by the
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1 amount of discretionary savings in outlays and

2 budget authority determined under paragraph

3 (1).

4 (C) SUBALLOCATIONS.—Each Committee

5 on Appropriations is authorized and directed to

6 immediately adjust its suballocations among its

7 subcommittees for fiscal year 1996 to reflect

8 the lower allocations provided by this paragraph

9 in a manner that accurately reflects the

10 changes in law made by this Act and promptly

11 report to its House of Congress suballocations

12 revised under this paragraph.

13 (D) EFFECT.—The allocations and

14 suballocations as adjusted by this paragraph

15 shall be deemed to be allocations made under

16 section 602(a)(1) and suballocations made

17 under section 602(b)(1) of the Congressional

18 Budget Act of 1974.

19 (3) SECTION 601.—Section 601(a)(2) of the

20 Congressional Budget Act of 1974 is amended by in21 serting ‘‘or as adjusted pursuant to subsection (b) of

22 section 601 of the Real Welfare Reform Act of

23 1995’’ before the period at the end.
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•S 834 IS

1 SEC. 602. ELIMINATION OF MEDICAID BENEFITS WITH RE2 SPECT TO FUGITIVE FELONS AND PROBA3 TION AND PAROLE VIOLATORS.

4 (a) INELIGIBILITY FOR MEDICAL ASSISTANCE.—Sec5 tion 1902(a) (42 U.S.C. 1396a(a)) of the Social Security

6 Act is amended—

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

8 (61);

9 (2) by striking the period at the end of para10 graph (62) and inserting ‘‘; and’’; and

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

12 paragraph:

13 ‘‘(63) provide that no medical assistance shall

14 be available under the plan to any individual during

15 any period during which the individual—

16 ‘‘(A) is taking an action described in sec17 tion 1073(1) of title 18, United States Code, or

18 ‘‘(B) is violating a condition of probation

19 or parole imposed under Federal or State law.’’.

20 (b) EXCHANGE OF INFORMATION WITH LAW EN21 FORCEMENT AGENCIES.—Section 1902(a)(7) of the Social

22 Security Act (42 U.S.C. 1396a(a)(7)) is amended by in23 serting the following after the semicolon: ‘‘but such safe24 guards shall not prevent the State agency from furnishing

25 a Federal, State, or local law enforcement officer, upon

26 such officer’s request, with the current address of any re-
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1 cipient if the officer furnishes the agency with such recipi2 ent’s name and notifies the agency that—

3 ‘‘(A) such recipient—

4 ‘‘(i) is taking an action described in

5 section 1073(1) of title 18, United States

6 Code or violating a condition of probation

7 or parole imposed under Federal or State

8 law; or

9 ‘‘(ii) has information that is necessary

10 for the officer to conduct the officer’s offi11 cial duties;

12 ‘‘(B) the location or apprehension of such

13 recipient is within the officer’s official duties;

14 and

15 ‘‘(C) the request is made in the proper ex16 ercise of those duties;’’.

17 SEC. 603. RESTRICTION OF CERTAIN LEGAL CHALLENGES.

18 (a) IN GENERAL.—No legal aid organization or other

19 entity that provides legal services and which receives Fed20 eral funds or IOLTA funds may challenge (or act as an

21 attorney on behalf of any party who seeks to challenge)

22 in any legal proceeding—

23 (1) the legal validity—

24 (A) under the United States Constitu25 tion—
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1 (i) of this Act or any regulations pro2 mulgated under this Act; and

3 (ii) of any law or regulation enacted

4 or promulgated by a State pursuant to this

5 Act;

6 (B) under this Act or any regulation

7 adopted under this Act of any State law or reg8 ulation; and

9 (C) under any State Constitution of any

10 law or regulation enacted or promulgated by a

11 State pursuant to this Act; and

12 (2) the conflict—

13 (A) of this Act or any regulations promul14 gated under this Act with any other law or reg15 ulation of the United States; and

16 (B) of any law or regulation enacted or

17 promulgated by a State pursuant to this Act

18 with any law or regulation of the United States.

19 (b) IOLTA FUNDS DEFINED.—For purposes of this

20 section, the term ‘‘IOLTA funds’’ means interest on law21 yers trust account funds that—

22 (1) are generated when attorneys are required

23 by State court or State bar rules to deposit other24 wise noninterest-bearing client funds into an inter-
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1 est-bearing account while awaiting the outcome of a

2 legal proceeding; and

3 (2) are pooled and distributed by a subdivision

4 of a State bar association or the State court system

5 to organizations selected by the State courts admin6 istration.

7 (c) LEGAL PROCEEDING DEFINED.—For purposes of

8 this section, the term ‘‘legal proceeding’’ includes—

9 (1) a proceeding—

10 (A) in a court of the United States;

11 (B) in a court of a State; and

12 (C) in an administrative hearing in a Fed13 eral or State agency; and

14 (2) any activities related to the commencement

15 of a proceeding described in subparagraph (A).

16 SEC. 604. COMMODITY DISTRIBUTION IN LIEU OF VOUCH17 ERS UNDER THE WIC PROGRAM.

18 Section 17(f) of the Child Nutrition Act of 1966 (42

19 U.S.C. 1786(f)) is amended by adding at the end the fol20 lowing:

21 ‘‘(25)(A) In this paragraph, the term ‘poverty line’

22 means the income official poverty line (as defined by the

23 Office of Management and Budget, and revised annually

24 in accordance with section 673(2) of the Community Serv-
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1 ices Block Grant Act (42 U.S.C. 9902(2))) applicable to

2 a family of the size involved.

3 ‘‘(B) If a State agency elects to provide supplemental

4 foods to participants under the program in the form of

5 commodities (rather than vouchers), the State agency may

6 use any savings derived from providing supplemental foods

7 in the form of commodities (rather than vouchers) to pro8 vide assistance or services under any law to individuals

9 who have an income that is less than 175 percent of the

10 poverty line.

11 ‘‘(C) The Secretary shall ensure that the amount of

12 funds allocated to a State agency described in subpara13 graph (B) for a fiscal year to carry out the program au14 thorized by this section is not reduced because the State

15 agency elects to provide supplemental foods in the form

16 of commodities.’’.

17 TITLE VII—SEVERABILITY AND

18 EFFECTIVE DATE

19 SEC. 701. SEVERABILITY.

20 If any provision of this Act, an amendment made by

21 this Act, or the application of such provision or amend22 ment to any person or circumstance is held to be unconsti23 tutional, the remainder of this Act, the amendments made

24 by this Act, and the application of the provisions of such
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1 to any person or circumstance shall not be affected there2 by.

3 SEC. 702. EFFECTIVE DATE.

4 Except as otherwise provided in this Act, this Act and

5 the amendments made by this Act shall take effect on Oc6 tober 1, 1995.

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