II

104TH CONGRESS

1ST SESSION S. 845

To replace the supplemental security income program for the disabled and

blind with a block grant to the States, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 23 (legislative day, MAY 15), 1995

Mr. ASHCROFT (for himself, Mr. COVERDELL, Mr. CRAIG, Mr. DEWINE, Mr.

SMITH, Mr. INHOFE, and Mr. KEMPTHORNE) introduced the following

bill; which was read twice and referred to the Committee on Finance

A BILL

To replace the supplemental security income program for

the disabled and blind with a block grant to the States,

and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Supplemental Social

5 Security Income Flexibility Act of 1995’’.
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1 SEC. 2. BLOCK GRANTS TO THE STATES FOR SUPPLE2 MENTAL SECURITY INCOME FOR THE DIS3 ABLED AND BLIND.

4 (a) IN GENERAL.—Title XVI of the Social Security

5 Act (42 U.S.C. 1381–1383d) is amended by adding at the

6 end the following new part:

7 ‘‘PART C—BLOCK GRANTS TO STATES FOR SUPPLE8 MENTAL SECURITY INCOME FOR THE DISABLED

9 AND BLIND

10 ‘‘PURPOSE; IMPLEMENTATION

11 ‘‘SEC. 1651. (a) PURPOSE.—The purpose of this part

12 is to consolidate Federal assistance to the States for sup13 plemental income for individuals who are disabled or blind

14 (other than individuals who have attained age 65) into a

15 single grant for such purpose, thereby giving States maxi16 mum flexibility to—

17 ‘‘(1) require beneficiaries who are parents to

18 ensure that their school-age children attend school;

19 ‘‘(2) require minors who are beneficiaries to at20 tend school;

21 ‘‘(3) require parent beneficiaries to ensure that

22 their children receive the full complement of child23 hood immunizations;

24 ‘‘(4) require beneficiaries not to use illegal

25 drugs or abuse other drugs;
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1 ‘‘(5) deny assistance to children solely on the

2 basis that a child is unable to perform age-appro3 priate activities;

4 ‘‘(6) deny assistance to individiuals whose dis5 abilities are primarily the result of their abuse of il6 legal or legal drugs, or alcohol;

7 ‘‘(7) deny assistance to illegal aliens;

8 ‘‘(8) require individuals who sponsor the resi9 dency of legal aliens to support those they sponsor;

10 ‘‘(9) involve religious and charitable organiza11 tions, voluntary associations, civic groups, commu12 nity organizations, nonprofit entities, benevolent and

13 fraternal orders, philanthropic entities, and other

14 groups in the private sector, as appropriate, in the

15 provision of assistance to needy disabled and blind

16 individuals which the funding States receive under

17 this part.

18 ‘‘(b) IMPLEMENTATION.—This purpose shall be im19 plemented in accordance with conditions in each State and

20 as determined by State law.

21 ‘‘PAYMENTS TO STATES

22 ‘‘SEC. 1652. (a) AMOUNT.—

23 ‘‘(1) IN GENERAL.—Each State shall, subject to

24 the requirements of this part, be entitled to receive

25 quarterly payments for fiscal years 1997, 1998,

26 1999, and 2000 in an amount equal to 25 percent
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1 of the annual amount determined under paragraph

2 (2) for such fiscal year for carrying out the purpose

3 described in section 1651.

4 ‘‘(2) ANNUAL AMOUNT.—The annual amount

5 determined under this paragraph is equal to—

6 ‘‘(A) in fiscal year 1997, 100 percent of

7 the amounts received by the State in fiscal year

8 1994, or 100 percent of the average of amounts

9 received by the State in fiscal years 1992,

10 1993, and 1994, whichever is greater, under

11 part A of this title with respect to persons who

12 are disabled or blind indivudals, other than in13 dividuals who have attained age 65 (as in effect

14 in fiscal year 1994, or if applicable, in fiscal

15 years 1992, 1993, 1994), and

16 ‘‘(B) in each fiscal year thereafter, 100 percent

17 of the amount received by the State in the preceding

18 fiscal year under this part (as in effect in such pre19 ceding fiscal year).

20 ‘‘(b) FUNDING REQUIREMENTS.—The Secretary of

21 the Treasury shall make quarterly payments described in

22 subsection (a)(1) directly to each State in accordance with

23 section 6503 of title 31, United States Code.

24 ‘‘(c) EXPENDITURE OF FUNDS; RAINY DAY FUND.—

25 Amounts received by a State under this part for any fiscal
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1 year shall be expended by the State in such fiscal year

2 or in the succeeding fiscal year; except for such amounts

3 as the State deems necessary to set aside in a separate

4 account to provide, without fiscal limitation, for unex5 pected levels of assistance as a result of events which

6 cause an unexpected increase in the need for providing

7 supplemental income for individuals who are disabled or

8 blind (other than individuals who have attained the age

9 65). Any amounts remaining in such segregated account

10 after fiscal year 2000 shall be expended by a State for

11 the purpose described in section 1651 of this part as in

12 effect in fiscal year 2000.

13 ‘‘(d) PROHIBITION ON USE OF FUNDS.—Except as

14 provided in subsection (e), a State to which a payment

15 is made under this part may not use any part of such

16 payment to provide medical services.

17 ‘‘(e) AUTHORITY TO USE PORTION OF GRANT FOR

18 OTHER PURPOSES.—

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

20 than 30 percent of the annual amount paid to the

21 State under this part for a fiscal year to carry out

22 a State program pursuant to any or all of the follow23 ing provisions of law:

24 ‘‘(A) Part A of title IV of this Act.

25 ‘‘(B) Title XIX of this Act.
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1 ‘‘(C) The Food Stamp Act.

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

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

4 a State program pursuant to a provision of law spec5 ified in paragraph (1) shall not be subject to the re6 quirements of this part, but shall be subject to the

7 requirements that apply to Federal funds provided

8 directly under the provision of law to carry out the

9 program.

10 ‘‘ADMINISTRATIVE AND FISCAL ACCOUNTABILITY

11 ‘‘SEC. 1653. (a) AUDITS; REIMBURSEMENTS.—

12 ‘‘(1) AUDITS.—

13 ‘‘(A) IN GENERAL.—A State shall, not less

14 than annually, audit the State expenditures

15 from amounts received under this part. Such

16 audit shall—

17 ‘‘(i) determine the extent to which

18 such expenditures were or were not ex19 pended in accordance with this part; and

20 ‘‘(ii) be conducted by an approved en21 tity (as defined in subparagraph (B)) in

22 accordance with generally accepted audit23 ing principles.

24 ‘‘(B) APPROVED ENTITY.—For purposes of

25 subparagraph (A), the term ‘approved entity’

26 means an entity that is—
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1 ‘‘(i) approved by the Secretary of the

2 Treasury;

3 ‘‘(ii) approved by the chief executive

4 officer of the State; and

5 ‘‘(iii) independent of any agency ad6 ministering activities funded under this

7 part.

8 ‘‘(2) REIMBURSEMENT.—

9 ‘‘(A) IN GENERAL.—Not later than 30

10 days following the completion of an audit under

11 this subsection, a State shall submit a copy of

12 the audit to the State legislature and to the

13 Secretary of the Treasury.

14 ‘‘(B) REPAYMENT.—Each State shall pay

15 to the United States amounts ultimately found

16 by the approved entity under paragraph (1)(A)

17 not to have been expended in accordance with

18 this part plus 10 percent of such amount as a

19 penalty, or the Secretary of the Treasury may

20 offset such amounts plus the 10 percent penalty

21 against any other amount in any other year

22 that the State may be entitled to receive under

23 this part.
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1 ‘‘(b) ADDITIONAL ACCOUNTING REQUIREMENTS.—

2 The provisions of chapter 75 of title 31, United States

3 Code, shall apply to the audit requirements of this section.

4 ‘‘(c) REPORTING REQUIREMENTS; FORM, CON5 TENTS.—

6 ‘‘(1) ANNUAL REPORTS.—A State shall prepare

7 comprehensive annual reports on the activities car8 ried out with amounts received by a State under this

9 part.

10 ‘‘(2) CONTENT.—Reports prepared under this

11 section—

12 ‘‘(A) shall be for the most recently com13 pleted fiscal year;

14 ‘‘(B) shall be in accordance with generally

15 accepted accounting principles, including the

16 provisions of chapter 75 of title 31, United

17 States Code;

18 ‘‘(C) shall include the results of the most

19 recent audit conducted in accordance with the

20 requirements of subsection (a) of this section;

21 and

22 ‘‘(D) shall be in such form and contain

23 such other information as the State deems nec24 essary—
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1 ‘‘(i) to provide an accurate description

2 of such activities; and

3 ‘‘(ii) to secure a complete record of

4 the purposes for which amounts were ex5 pended in accordance with this part.

6 ‘‘(3) COPIES.—A State shall make copies of the

7 reports required under this section available for pub8 lic inspection within the State. Copies also shall be

9 provided upon request to any interested public agen10 cy, and each such agency may provide its views on

11 such reports to the Congress.

12 ‘‘(d) ADMINISTRATIVE SUPERVISION—

13 ‘‘(1) ROLE OF THE SECRETARY OF THE TREAS14 URY.—

15 ‘‘(A) IN GENERAL.—The Secretary of the

16 Treasury shall supervise the amounts received

17 under this part in accordance with subpara18 graph (B).

19 ‘‘(B) LIMITED SUPERVISION—The super20 vision by the Secretary of the Treasury shall be

21 limited to—

22 ‘‘(i) making quarterly payments to the

23 States in accordance with section 1652(b);

24 ‘‘(ii) approving the entities referred to

25 in subsection (a)(1)(B); and
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1 ‘‘(iii) withholding payment to a State

2 based on the findings of such an entity in

3 accordance with subsection (a)(2)(B).

4 ‘‘(2) OTHER FEDERAL SUPERVISION.—No ad5 ministrative officer or agency of the United States,

6 other than the Secretary of the Treasury and, as

7 provided for in section 1654, the Attorney General,

8 shall supervise the amounts received by the States

9 under this part or the use of such amounts by the

10 States.

11 ‘‘(e) LIMITED FEDERAL OVERSIGHT.—With the ex12 ception of the Department of the Treasury as provided

13 for in this section and section 1654 of this part, no Fed14 eral department or agency may promulgate regulations or

15 issue rules regarding the purpose of this part.

16 ‘‘NONDISCRIMINATION PROVISIONS

17 ‘‘SEC. 1654. (a) NO DISCRIMINATION AGAINST INDI18 VIDUALS.—No individual shall be excluded from participa19 tion in, denied the benefits of, or subjected to discrimina20 tion under any program or activity funded in whole or in

21 part with amounts received under this part on the basis

22 of such individual’s—

23 ‘‘(1) disability under section 504 of the Reha24 bilitation Act of 1973 (29 U.S.C. 794);

25 ‘‘(2) sex under title IX of the Education

26 Amendments of 1972 (20 U.S.C. 1681 et seq.); or
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1 ‘‘(3) race, color, or national origin under title

2 VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d

3 et seq.).

4 ‘‘(b) COMPLIANCE.—If the Secretary of the Treasury

5 determines that a State, or an entity that has received

6 funds from amounts received by the State under this part,

7 has failed to comply with a provision of law referred to

8 in subsection (a), except as provided for in section 1655

9 of this part, the Secretary of the Treasury shall notify the

10 chief executive officer of the State and shall request the

11 officer to secure compliance with such provision of law.

12 If, not later than 60 days after receiving such notification,

13 the chief executive officer fails or refuses to secure compli14 ance, the Secretary of the Treasury may—

15 ‘‘(1) refer the matter to the Attorney General

16 with a recommendation that an appropriate civil ac17 tion be instituted;

18 ‘‘(2) exercise the powers and functions provided

19 under title VI of the Civil Rights Act of 1964 (42

20 U.S.C. 2000d et seq.), title IX of the Education

21 Amendments of 1972 (20 U.S.C. 1681 et seq.); or

22 section 505 of the Rehabilitation Act of 1973 (29

23 U.S.C. 794a), (as applicable); or

24 ‘‘(3) take such other action as may be provided

25 by law.
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1 ‘‘(c) AUTHORITY OF ATTORNEY GENERAL; CIVIL AC2 TIONS.—When a matter is referred to the Attorney Gen3 eral pursuant to subsection (b)(1), or if the Attorney Gen4 eral has reason to believe that an entity is engaged in a

5 pattern or practice in violation of a provision of law re6 ferred to in subsection (a), the Attorney General may

7 bring a civil action in an appropriate district court of the

8 United States for such relief as may be appropriate, in9 cluding injunctive relief.

10 ‘‘NONDISCRIMINATION AND INSTITUTIONAL PROTECTIONS

11 FOR RELIGIOUS PROVIDERS

12 ‘‘SEC. 1655. (a) PURPOSE.—The purpose of this sec13 tion is to allow the participation of religious organizations

14 as providers of assistance to disabled or blind individuals

15 funded under this part without impairing or diminishing

16 the religious character or freedom of such organizations.

17 ‘‘(d) NONDISCRIMINATION.—Religious organizations

18 shall be eligible as providers of assistance to disabled or

19 blind individuals as provided for under this part. Neither

20 the Federal Government nor a State receiving funds under

21 this part shall discriminate against an organization which

22 is or applies to be a provider of assistance on the basis

23 that the organization has a religious mission or purpose.

24 ‘‘(c) RELIGIOUS CHARACTER AND FREEDOM.—

25 ‘‘(1) IN GENERAL.—Notwithstanding any other

26 provision of law, any religious organization partici-
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1 pating as a provider of assistance funded under this

2 part shall retain its independence from Federal,

3 State, and local governments, including such organi4 zation’s control over the definition, development,

5 practice, and expression of its religious beliefs. Such

6 an organization may select, employ, promote, dis7 cipline, and dismiss its clerics and other

8 ecclesiastics, directors, officers, employees, and vol9 unteers on the basis of religion, a religious belief, or

10 a religious practice. However, a religious organiza11 tion shall not deny disabled or blind individuals the

12 benefits of any assistance funded under this part on

13 the basis of religion, a religious belief, or refusal to

14 participate in a religious practice.

15 ‘‘(2) ADDITIONAL SAFEGUARDS.—Neither the

16 Federal Government nor a State shall require a reli17 gious provider of assistance to—

18 ‘‘(A) alter its form of internal governance,

19 or form a separate, nonprofit corporation to re20 ceive and administer assistance funded under

21 this part; or

22 ‘‘(B) alter real estate or facilities used to

23 provide such assistance, including but not lim24 ited to the removal of religious art, icons, scrip25 ture, or other symbols;
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1 in order to be eligible to be a provider of assistance

2 under this part.

3 ‘‘(3) FISCAL ACCOUNTABILITY.—

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

5 subparagraph (B), any religious organization

6 providing assistance funded under this part

7 shall be subject to the same regulations as

8 other providers to account in accord with gen9 erally accepted auditing principles for the use of

10 such funds provided under this part.

11 ‘‘(B) LIMITED AUDIT.—Religious organiza12 tions may segregate Federal funds provided

13 under this part into separate accounts, and

14 then only the financial assistance provided with

15 those funds shall be subject to audit.

16 ‘‘(d) COMPLIANCE.—A religious organization which

17 has its rights under this section violated may enforce its

18 claim by asserting a civil action for such relief as may

19 be appropriate, including injunctive relief or damages, in

20 an appropriate district court of the United States against

21 the entity or agency that commits such violation.

22 ‘‘(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—

23 ‘‘(1) IN GENERAL.—If a beneficiary has a bona

24 fide objection to the religious character of the orga25 nization or institution from which the beneficiary is
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1 receiving assistance funded under this part, each

2 State shall provide such beneficiary a certificate, re3 deemable with any other provider of assistance fund4 ed under this part, for services the value of which

5 is no less than the value of the funding received by

6 the religious provider from a State to provide assist7 ance funded under this part for such individual.

8 ‘‘(2) PROHIBITION ON PROVIDING CASH IN EX9 CHANGE FOR CERTIFICATES.—No provider of assist10 ance funded under this part shall provide a bene11 ficiary a cash amount in exchange for a certificate

12 provided for under paragraph (1).’’.

13 (b) CONFORMING AMENDMENT.—Section 1602 of the

14 Social Security Act (42 U.S.C. 1381a) is amended by

15 striking ‘‘Every’’ and inserting ‘‘(a) Every’’ and by adding

16 at the end the following new subsection:

17 ‘‘(b) No person who is a disabled or blind individual

18 (other than a person who has attained age 65) shall be

19 an eligible individual or eligible spouse for purposes of this

20 part with respect to any month beginning after September

21 30, 1996, but shall be eligible for services to the disabled

22 or blind funded under part C of this title.’’.

23 SEC. 3. CONFORMING AMENDMENTS TO THE BUDGET ACT.

24 The Balanced Budget and Emergency Deficit Control

25 Act of 1985 (2 U.S.C. 900 et seq.) is amended in section
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1 255(h) (2 U.S.C. 905(h), by striking ‘‘Supplemental Secu2 rity Income Program (75–0406–0–1–609); and’’ and in3 serting ‘‘Supplemental Security Income Program and

4 block grants to States for supplemental security income

5 for disabled individuals; and’’.

6 SEC. 4. EFFECTIVE DATE.

7 The amendments and repeals made by this Act shall

8 take effect on October 1, 1996.

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