II

103D CONGRESS

2D SESSION S. 1795

To amend title IV of the Social Security Act and other provisions to provide

reforms to the welfare system in effect in the United States.

IN THE SENATE OF THE UNITED STATES

JANUARY 25, 1994

Mr. BROWN (for himself, Mr. DOLE, Mr. PACKWOOD, Mr. D’AMATO, Mr.

SIMPSON, Mr. WARNER, Mr. GRAMM, Mr. STEVENS, Mr. COCHRAN, Mr.

MCCAIN, Mr. GORTON, Mr. BURNS, Mr. MCCONNELL, Mr. MURKOWSKI,

Mr. NICKLES, Mrs. HUTCHISON, and Mr. PRESSLER) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title IV of the Social Security Act and other

provisions to provide reforms to the welfare system in

effect in the United States.

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 ‘‘Welfare Reform Act

5 of 1994’’.

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
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1 Act an amendment is expressed in terms of an amendment

2 to or repeal of a section or other provision, the reference

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

4 provision of the Social Security Act.

5 (b) TABLE OF CONTENTS.—The table of contents is

6 as follows:

Sec. 1. Short title.

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

TITLE I—APPLICANT JOB SEARCH, VOUCHER PROGRAM,

TRANSITION AND WORK PROGRAM, ETC.

Sec. 101. Applicant job search requirement.

Sec. 102. Employment voucher programs.

Sec. 103. Transition and work components added to jobs program.

Sec. 104. Sanctions for failure to participate in jobs program.

Sec. 105. Persons exempted from participation in jobs program.

Sec. 106. Increase in required jobs participation rates.

Sec. 107. Payments to States.

Sec. 108. Effective date.

TITLE II—PROVISIONS RELATING TO PATERNITY

ESTABLISHMENT

Sec. 201. Reduction of AFDC for parent or guardian of children whose paternity is not established.

Sec. 202. Earlier paternity establishment efforts by States.

Sec. 203. Increase in paternity establishment percentage.

Sec. 204. Effective date.

TITLE III—CHILD SUPPORT ENFORCEMENT

Sec. 301. State information systems.

Sec. 302. National information systems.

Sec. 303. Income withholding.

Sec. 304. Uniform terms in orders.

Sec. 305. Work requirement for noncustodial parents with child support arrearages.

Sec. 306. Effective date.

TITLE IV—EXPANSION OF STATUTORY FLEXIBILITY OF STATES

Sec. 401. Option to increase or decrease payments based on preventive health

care and immunizations for children.

Sec. 402. Option to increase or decrease payments based on attendance at educational institutions and participation in vocational or technical

training.

Sec. 403. Option to deny AFDC for additional children.

Sec. 404. Option to provide married couple transition benefit.

Sec. 405. Option to treat interstate immigrants under rules of former State.
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Sec. 406. Option to require attendance at parenting and money management

classes.

Sec. 407. Option to deny AFDC eligibility to certain teenagers; requirement

that teenagers eligible for AFDC live at home.

Sec. 408. Disregard of education and employment training savings for AFDC

eligibility.

Sec. 409. Effective date.

TITLE V—EXPEDITED STATE WAIVER AUTHORITY

Sec. 501. Interagency Waiver Request Board.

Sec. 502. Application to implement assistance plans.

Sec. 503. Review and approval of applications; waivers.

Sec. 504. Implementation of assistance plans; evaluations.

Sec. 505. Public-private partnership committees.

Sec. 506. Definitions.

Sec. 507. Reports.

Sec. 508. Sunset.

TITLE VI—WELFARE RESTRICTIONS FOR ALIENS

Sec. 601. Eligibility of certain aliens for certain Federal benefits.

Sec. 602. State AFDC agencies required to provide information on illegal aliens

to the Immigration and Naturalization Service.

TITLE VII—MISCELLANEOUS

Sec. 701. Restriction on payment of benefits to individuals confined by court

order to public institutions pursuant to verdicts of not guilty

by reason of insanity or other mental disorder.

Sec. 702. AFDC recipients required to undergo necessary substance abuse

treatment as a condition of receiving AFDC.

Sec. 703. Evaluation of education and training programs.

Sec. 704. Fraud and administrative efficiency.

Sec. 705. SSI benefits for drug and alcohol addicts.

Sec. 706. State fraud control programs.

1 TITLE I—APPLICANT JOB

2 SEARCH, VOUCHER PRO3 GRAM, TRANSITION AND

4 WORK PROGRAM, ETC.

5 SEC. 101. APPLICANT JOB SEARCH REQUIREMENT.

6 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

7 602(a)) is amended—

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

9 (44);
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1 (2) by striking the period at the end of para2 graph (45) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (45) the fol4 lowing new paragraph:

5 ‘‘(46) provide that—

6 ‘‘(A) an individual applying for aid under

7 the plan shall conduct job search activities, as

8 determined appropriate by the State, while such

9 individual’s application for aid is pending; and

10 ‘‘(B) the State agency shall reimburse the

11 applicant for necessary transportation and child

12 care expenses incurred as a result of such ac13 tivities.’’.

14 (b) CONFORMING AMENDMENTS.—Section 482(g)(2)

15 (42 U.S.C. 682(g)(2)) is amended—

16 (1) by striking ‘‘applying for or’’ in the matter

17 preceding subparagraph (A); and

18 (2) in subparagraph (A)—

19 (A) by striking ‘‘applies for aid’’ and in20 serting ‘‘begins receiving aid’’; and

21 (B) by striking ‘‘in making a determina22 tion of an individual’s eligibility for such aid

23 or’’.
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1 SEC. 102. EMPLOYMENT VOUCHER PROGRAMS.

2 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

3 602(a)), as amended by section 101, is amended—

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

5 (45);

6 (2) by striking the period at the end of para7 graph (46) and inserting ‘‘; and’’; and

8 (3) by inserting after paragraph (46) the fol9 lowing new paragraph:

10 ‘‘(47) provide that the State has in effect an

11 employment voucher program which meets the re12 quirements of part G.’’.

13 (b) VOUCHER PROGRAM.—Title IV (42 U.S.C. 601

14 et seq.) is amended by adding at the end the following

15 new part:

16 ‘‘PART G—EMPLOYMENT VOUCHER PROGRAMS

17 ‘‘ESTABLISHMENT OF STATE PROGRAMS

18 ‘‘SEC. 491. (a) IN GENERAL.—As a condition of its

19 participation in the program for aid to families with de20 pendent children under part A, each State shall establish

21 an employment voucher program (in this part referred to

22 as the ‘program’) which meets the requirements of this

23 part.

24 ‘‘(b) REQUIREMENT ON SECRETARY.—The Secretary

25 shall consult with the Secretary of Labor and the Sec26 retary of Agriculture on the requirements imposed on
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1 States under this part and criteria for determining wheth2 er such requirements are met.

3 ‘‘ADMINISTRATION OF STATE PROGRAMS

4 ‘‘SEC. 492. The State agency responsible for the ad5 ministration of the State’s program under this part shall

6 be—

7 ‘‘(1) a new State agency created by the State,

8 or

9 ‘‘(2) a State agency selected by the State from

10 among—

11 ‘‘(A) the State agency that administers or

12 supervises the administration of the State’s

13 plan approved under section 402,

14 ‘‘(B) the State agency that administers or

15 supervises the administration of the food stamp

16 program under the Food Stamp Act of 1977,

17 and

18 ‘‘(C) the State department of labor.

19 ‘‘STATE PROGRAMS DESCRIBED

20 ‘‘SEC. 493. (a) PROGRAM VOUCHER REQUIRE21 MENTS.—

22 ‘‘(1) IN GENERAL.—The State shall make

23 vouchers in the amount determined under paragraph

24 (2) available to eligible individuals. If an eligible in25 dividual obtains employment such vouchers—
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1 ‘‘(A) shall be given by such individual to

2 the individual’s employer during the first year

3 of employment; and

4 ‘‘(B) shall be in lieu of any benefits de5 scribed in paragraph (2) which the individual

6 would otherwise be eligible to receive.

7 ‘‘(2) AMOUNT OF VOUCHER.—The amount of

8 the voucher for an eligible individual is equal to—

9 ‘‘(A) for each month of the first 6 month

10 period of employment, the sum of—

11 ‘‘(i) the monthly amount that would

12 otherwise be payable as aid to families

13 with dependent children to the family of

14 such individual, and

15 ‘‘(ii) the monthly cash value of the

16 food stamp benefits that would otherwise

17 be available to such individual’s household,

18 determined as of the first day of the first full

19 month of the employment of such individual by

20 a qualified employer; and

21 ‘‘(B) for each month of the second 6

22 month period of employment, 50 percent of the

23 sum of the amounts determined under clauses

24 (i) and (ii) of subparagraph (A).
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1 ‘‘(b) ELIGIBLE INDIVIDUALS.—For purposes of this

2 part, an individual is eligible for a voucher under the State

3 program if such individual is eligible for and receiving as4 sistance under—

5 ‘‘(1) the aid to families with dependent children

6 program under this title; or

7 ‘‘(2) the food stamp program under the Food

8 Stamp Act of 1977.

9 ‘‘(c) QUALIFIED EMPLOYERS.—

10 ‘‘(1) For purposes of this part, and subject to

11 paragraph (2), an employer is qualified to receive

12 payments under this part for an eligible individual

13 employed by such employer if the employer submits

14 a monthly report to the State agency selected by the

15 State under section 492 (in a form and in such

16 manner as the State agency requires) certifying

17 that—

18 ‘‘(A) the employment of the eligible indi19 vidual complies with the rules described in sub20 sections (b) and (c) (without regard to the last

21 sentence thereof) of section 484,

22 ‘‘(B) gross wages (as defined in section

23 209 but without regard to any dollar limitation

24 contained is such section) earned by such eligi25 ble individual and paid to such eligible individ-
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1 ual by the employer during such month were

2 not less than the greater of—

3 ‘‘(i) 200 percent of the amount of the

4 voucher of such individual, or

5 ‘‘(ii) the product of the greater of the

6 Federal minimum wage or the applicable

7 State minimum wage and the number of

8 hours worked by such individual, and

9 ‘‘(C) with respect to such wages, the em10 ployer was not receiving any wage subsidy

11 under any other provision of Federal law, in12 cluding part F of this title.

13 ‘‘TREATMENT OF WAGES

14 ‘‘SEC. 494. Under the State program wages paid to

15 an eligible individual by a qualified employer shall be con16 sidered earned income for purposes of any provision of

17 law, except that such wages shall not be taken into ac18 count in determining the eligibility of such individual for

19 the programs described in paragraphs (1) and (2) of sec20 tion 493(b) during the first year of the individual’s em21 ployment with the employer.

22 ‘‘PROVISION OF PROGRAM INFORMATION

23 ‘‘SEC. 495. The State agency (directly and through

24 the other State agencies described in paragraphs (1) and

25 (2) of section 492) shall inform all eligible individuals of
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1 the State program and the application procedures for such

2 program.

3 ‘‘USE OF FEDERAL FUNDS

4 ‘‘SEC. 496. Notwithstanding any other provision of

5 law, for purposes of computing the amount of the Federal

6 payment to a State with respect to any voucher amount

7 determined under section 493(a)(2), such amount shall be

8 treated as if paid to the eligible individual under the appli9 cable program.’’.

10 (c) CONFORMING AMENDMENTS.—

11 (1) FOOD STAMP ACT.—Section 16 of the Food

12 Stamp Act of 1977 (7 U.S.C. 2025) is amended by

13 adding at the end the following new subsection:

14 ‘‘(l) If a State agency of a State informs the Sec15 retary that an individual who is participating in the em16 ployment voucher program carried out under part G of

17 title IV of the Social Security Act is a member of a house18 hold that participates in the food stamp program—

19 ‘‘(1) the Secretary shall pay to the State an

20 amount equal to the value of the food stamp benefits

21 the household is otherwise eligible to receive under

22 this Act; and

23 ‘‘(2) the State shall expend the amount in ac24 cordance with such part rather than for food stamp

25 benefits the household would receive but for the op26 eration of this subsection.’’.
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1 (2) TARGETED JOBS CREDIT.—Section

2 51(c)(2)(B) of the Internal Revenue Code of 1986 is

3 amended by striking ‘‘482(e)’’ and inserting ‘‘482(e)

4 or part G of title IV’’.

5 SEC. 103. TRANSITION AND WORK COMPONENTS ADDED TO

6 JOBS PROGRAM.

7 (a) ESTABLISHMENT AND OPERATION OF PRO8 GRAM.—

9 (1) TRANSITION AND WORK COMPONENTS.—

10 Section 482 (42 U.S.C. 682) is amended by adding

11 at the end the following new subsection:

12 ‘‘(j) TRANSITION AND WORK COMPONENTS.—

13 ‘‘(1) IN GENERAL.—The program under this

14 part must include—

15 ‘‘(A) a transition component that—

16 ‘‘(i) must include the job search pro17 gram established by the State under sub18 section (g);

19 ‘‘(ii) must include the employment

20 voucher program established by the State

21 under part G; and

22 ‘‘(iii) may include any other service,

23 activity, or program of the State that is re24 ferred to in subsection (d)(1) (excluding

25 the programs referred to in subclauses
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1 (III) and (IV) of subsection (d)(1)(A)(ii));

2 and

3 ‘‘(B) a work component that—

4 ‘‘(i) must include a work

5 supplementation program operated by the

6 State under subsection (e);

7 ‘‘(ii) must include a community work

8 experience program established by the

9 State under subsection (f);

10 ‘‘(iii) must include the employment

11 voucher program established by the State

12 under part G; and

13 ‘‘(iv) may include any other work pro14 gram of the State that is approved by the

15 Secretary.

16 ‘‘(2) PARTICIPATION REQUIREMENTS.—

17 ‘‘(A) TRANSITION COMPONENT.—

18 ‘‘(i) HOURS OF PARTICIPATION.—

19 Each individual participating in the transi20 tion component must participate in activi21 ties under such component for an average

22 of not fewer than 20 hours per week.

23 ‘‘(ii) LIMIT ON PARTICIPATION.—

24 ‘‘(I) IN GENERAL.—If an individ25 ual has participated in the transition
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1 component for 24 months, aid under

2 the State plan payable to the family

3 in which such individual is a member

4 shall be reduced by the amount alloca5 ble to such individual unless the indi6 vidual finds gainful employment or is

7 participating in the work component

8 of the program under this part.

9 ‘‘(II) STATE OPTION.—At the op10 tion of the State, the number of

11 months of participation under

12 subclause (I) may be reduced to a

13 number of months not less than 12.

14 ‘‘(iii) SATISFACTION OF REQUIRE15 MENT.—The State, in consultation with

16 the Secretary, shall establish guidelines for

17 determining whether an individual has sat18 isfied the requirement under clause (i). In

19 the case of educational activities, such

20 guidelines shall provide that an individual

21 who is enrolled full-time in a program of

22 study at an educational institution (includ23 ing a vocational or technical training

24 school), as determined by the institution,

25 and is making satisfactory progress in the
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1 program of study, as determined by the in2 stitution, is to be regarded as satisfying

3 such requirement so long as the determina4 tions by the institution are made in accord5 ance with such rules as the Secretary may

6 prescribe (including rules governing how

7 time spent in such a program of study is

8 to be converted into hours of participation

9 in the transition component).

10 ‘‘(B) WORK COMPONENT.—

11 ‘‘(i) HOURS OF PARTICIPATION.—At

12 the option of the State, each individual

13 participating in the work component must

14 participate—

15 ‘‘(I) in work activities for an av16 erage of not fewer than 35 hours per

17 week; or

18 ‘‘(II) in work activities for an av19 erage of not fewer than 30 hours per

20 week and job search activities for an

21 average of not fewer than 8 hours per

22 week.

23 ‘‘(ii) LIMIT ON PARTICIPATION.—

24 ‘‘(I) IN GENERAL.—If an individ25 ual has participated in the transition
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1 component and the work component

2 for 24 months, at the option of the

3 State, aid under the State plan pay4 able to the family in which such indi5 vidual is a member may be reduced by

6 the amount allocable to such individ7 ual and the individual may be prohib8 ited from further participation.

9 ‘‘(II) EXCEPTION.—Notwith10 standing subclause (I), each individual

11 shall be permitted to participate in

12 the work component for at least 12

13 months without a reduction in bene14 fits under subclause (I).

15 ‘‘(C) ELIGIBILITY FOR MEDICAID.—If aid

16 under the State plan is reduced under subpara17 graph (A)(ii) or (B)(ii) with respect to an indi18 vidual, such individual shall, for purposes of

19 medical assistance under the State plan under

20 title XIX, be deemed to be a recipient of aid

21 under such State plan for so long as the family

22 in which such individual is a member is other23 wise eligible for aid under such State plan.’’.

24 (2) EMPLOYABILITY PLAN.—
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1 (A) DETERMINATION OF PARTICIPATION

2 IN TRANSITION OR WORK COMPONENT.—Sec3 tion 482(b)(1)(A) (42 U.S.C. 682(b)(1)(A)) is

4 amended by inserting after the first sentence

5 the following new sentence: ‘‘If, based on such

6 assessment, the State agency determines that a

7 participant is employable, such participant shall

8 be assigned to the work component of the pro9 gram under this part.’’.

10 (B) SPECIFICATION IN PLAN OF PARTICI11 PATION IN TRANSITION OR WORK COMPO12 NENT.—The first sentence of section

13 482(b)(1)(B) (42 U.S.C. 682(b)(1)(B)) is

14 amended to read as follows: ‘‘On the basis of

15 such assessment, the State agency, in consulta16 tion with the participant, shall develop an em17 ployability plan for the participant which shall

18 specify whether the participant is participating

19 in the transition component or the work compo20 nent under this part.’’.

21 (C) LIMIT ON PARTICIPATION IN TRANSI22 TION COMPONENT.—Section 482(b)(1) (42

23 U.S.C. 682(b)(1)) is amended by inserting the

24 following new sentence after the second sen25 tence in subparagraph (B): ‘‘The plan shall in-
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1 clude a statement explaining that participation

2 in the transition component of the program

3 under this part shall be for an average of at

4 least 20 hours per week during a period of up

5 to 24 months and upon the expiration of such

6 period, aid under the State plan may be re7 duced unless the individual finds gainful em8 ployment or is participating in the work compo9 nent of the program under this part.’’.

10 (D) INTERIM ASSESSMENT UNDER TRANSI11 TION COMPONENT.—Section 482(b) (42 U.S.C.

12 682(b)) is amended—

13 (i) by redesignating paragraph (3) as

14 paragraph (4); and

15 (ii) by inserting after paragraph (2),

16 the following new paragraph:

17 ‘‘(3) After a participant has participated in the tran18 sition component of the program for a period of 6 months,

19 the State shall make an assessment to determine whether

20 the participant is making clear and substantial progress

21 toward employment. The State, in consultation with the

22 Secretary, shall establish guidelines for making determina23 tions under this paragraph.’’.
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1 (E) DETERMINATION OF EMPLOY2 ABILITY.—Section 482(b) (42 U.S.C. 682(b)) is

3 amended—

4 (i) by redesignating paragraph (4) as

5 paragraph (5); and

6 (ii) by inserting after paragraph (3),

7 the following new paragraph:

8 ‘‘(4) If, at any time during a participant’s participa9 tion in the transition component of the program, the State

10 agency determines that such participant is employable,

11 such participant shall be assigned to the work component

12 of the program.’’.

13 (b) COMMUNITY WORK EXPERIENCE PROGRAM

14 AMENDMENTS.—Section 482(f)(1) (42 U.S.C. 682(f)(1))

15 is amended—

16 (1) by striking subparagraph (B);

17 (2) by redesignating subparagraphs (C), (D),

18 and (E) as subparagraphs (B), (C), and (D).

19 (c) WORK SUPPLEMENTATION PROGRAM AMEND20 MENTS.—

21 (1) AUTHORITY OF STATES TO ASSIGN PARTICI22 PANTS TO UNFILLED JOBS.—Section 484(c) (42

23 U.S.C. 684(c)) is amended by striking the last sen24 tence.
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1 (2) AUTHORITY OF STATES TO USE SUMS THAT

2 WOULD OTHERWISE BE EXPENDED FOR FOOD

3 STAMP BENEFITS TO PROVIDE SUBSIDIZED JOBS

4 FOR PARTICIPANTS.—

5 (A) IN GENERAL.—Section 482(e)(1) (42

6 U.S.C. 682(e)(1)) is amended—

7 (i) by inserting ‘‘, and the sums that

8 would otherwise be used to provide partici9 pants in the program under this subsection

10 with food stamp benefits under the Food

11 Stamp Act of 1977,’’ before ‘‘and use’’;

12 and

13 (ii) by inserting ‘‘and the food stamp

14 benefits that would otherwise be so pro15 vided to them’’ before the period.

16 (B) SUBSIDIES PROVIDED TO EMPLOYERS

17 AND INCLUDED IN WAGES OF PARTICIPANTS;

18 MINIMUM EMPLOYER CONTRIBUTION.—Section

19 482(e)(3) (42 U.S.C. 682(e)(3)) is amended by

20 adding at the end the following new para21 graphs:

22 ‘‘(E) Each State operating a work supplementation

23 program under this subsection shall enter into an agree24 ment with the employer who is to provide an eligible indi-
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1 vidual with a supplemented job under the program, under

2 which—

3 ‘‘(i) the State is required to pay the employer

4 an amount specified in the agreement as the sub5 sidized portion of the wages of the eligible individ6 ual; and

7 ‘‘(ii) the employer is required to pay the eligible

8 individual wages which, when added to an amount

9 that will be payable as aid to families with depend10 ent children to the individual if the individual is paid

11 such wages, are not less than 100 percent of the

12 sum of—

13 ‘‘(I) the amount that would otherwise be

14 payable as aid to families with dependent chil15 dren to the eligible individual if the State did

16 not have a work supplementation program

17 under this subsection in effect; and

18 ‘‘(II) if the State elects to subsidize jobs

19 for participants in the program through the res20 ervation of sums that would otherwise be used

21 to provide such participants with food stamp

22 benefits under the Food Stamp Act of 1977,

23 the amount paid to the State by the Secretary

24 of Agriculture that represents the cash value of

25 the food stamp benefits for which the household
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1 of the eligible individual is a member is eligible

2 under such Act.

3 ‘‘(F) For purposes of computing the amount of the

4 Federal payment to a State under paragraph (1) or (2)

5 of section 403(a), for expenditures incurred in making

6 payments to individuals and employers under the State’s

7 work supplementation program under this section, the

8 State may claim as such expenditures the maximum

9 amount payable to the State under paragraph (4) of this

10 subsection.

11 ‘‘(G) Notwithstanding paragraph (1), a State may

12 use for any purpose the sums reserved under paragraph

13 (1) which are not used to subsidize jobs under this sub14 section attributable to savings achieved by operation of

15 subparagraph (E).’’.

16 (C) CONFORMING AMENDMENT.—Section

17 482(e)(3)(A) (42 U.S.C. 682(e)(3)(A)) is

18 amended by striking the second sentence.

19 (D) EMPLOYMENT CASHOUT OF FOOD

20 STAMP BENEFITS.—Section 16 of the Food

21 Stamp Act of 1977 (7 U.S.C. 2025), as amend22 ed by section 102(c), is amended by adding at

23 the end the following new subsection:

24 ‘‘(m) If a State agency of a State that makes the

25 election described in section 482(e)(3)(E)(ii)(II) of the So-
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1 cial Security Act informs the Secretary that an individual

2 who is participating in the work supplementation program

3 carried out under section 482(e) of such Act is a member

4 of a household that participates in the food stamp pro5 gram and all the members of the household receive bene6 fits under a State plan approved under part A of title IV

7 of such Act—

8 ‘‘(1) the Secretary shall pay to the State an

9 amount equal to the value of the food stamp benefits

10 the household is eligible to receive under this Act;

11 ‘‘(2) the State shall expend the amount in ac12 cordance with section 482(e)(3) of the Social Secu13 rity Act to make a payment to the individual in lieu

14 of food stamp benefits the household would receive

15 but for the operation of this subsection;

16 ‘‘(3) for purposes of—

17 ‘‘(A) sections 5 and 8(a) of this Act, the

18 amount shall be excluded from household in19 come and resources; and

20 ‘‘(B) section 8(b) of this Act, the amount

21 shall be considered as the value of an allotment

22 provided to the household; and

23 ‘‘(4) the household shall not receive food stamp

24 benefits from the State agency for the period during
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1 which the member continues to participate in the

2 work supplementation program.’’.

3 SEC. 104. SANCTIONS FOR FAILURE TO PARTICIPATE IN

4 JOBS PROGRAM.

5 (a) IN GENERAL.—Section 402(a)(19)(G)(ii) (42

6 U.S.C. 602(a)(19)(G)(ii)) is amended to read as follows:

7 ‘‘(ii) any sanction described in clause

8 (i) shall continue—

9 ‘‘(I) in the case of the individ10 ual’s first failure to comply, until the

11 failure to comply ceases or 3 months

12 (whichever is longer);

13 ‘‘(II) in the case of the individ14 ual’s second failure to comply, until

15 the failure to comply ceases or 6

16 months (whichever is longer); and

17 ‘‘(III) in the case of the individ18 ual’s third failure to comply, until the

19 failure to comply ceases or 12 months

20 (whichever is longer);’’.

21 (b) ROLLING SANCTIONS.—Section 402(a)(19)(G)

22 (42 U.S.C. 602(a)(19)(G)) is amended by redesignating

23 clauses (iii) and (iv) as subclauses (iv) and (v) and by in24 serting after clause (ii) the following new clause:
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1 ‘‘(iii)(I) any first failure to comply de2 scribed in clause (ii)(I) that continues for

3 more than 3 months shall be considered a

4 second failure to comply described in

5 clause (ii)(II); and

6 ‘‘(II) any second failure to comply de7 scribed in clause (ii)(II) that continues for

8 more than 6 months shall be considered a

9 third failure to comply described in clause

10 (ii)(III);’’.

11 (c) REPRESENTATIVE PAYEES.—Section

12 402(a)(19)(G)(i)(I) (42 U.S.C. 602(a)(19)(G)(i)(I)) is

13 amended by striking ‘‘unless the State agency, after mak14 ing reasonable efforts, is unable to locate an appropriate

15 individual to whom such payments can be made’’ and in16 serting ‘‘(in the case of an individual’s first or second fail17 ure to comply, payments in such form shall be made only

18 if determined appropriate by the State)’’.

19 SEC. 105. PERSONS EXEMPTED FROM PARTICIPATION IN

20 JOBS PROGRAM.

21 (a) IN GENERAL.—Section 402(a)(19)(C) (42 U.S.C.

22 602(a)(19)(C)) is amended to read as follows:

23 ‘‘(C) that an individual may not be re24 quired to participate in the program—
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1 ‘‘(i) if the individual is ill, incapaci2 tated, or of advanced age;

3 ‘‘(ii) if the individual works 35 or

4 more hours per week;

5 ‘‘(iii) if the individual is a child who

6 is under age 16 and attends, full-time, an

7 elementary, secondary, or vocational (or

8 technical) school;

9 ‘‘(iv) if the individual is providing full10 time care for a disabled dependent of the

11 individual;

12 ‘‘(v) at the option of the State, if the

13 individual is making progress in a sub14 stance abuse treatment program, unless

15 this clause has been applied to the individ16 ual for 12 months;

17 ‘‘(vi) during the 6-month period after

18 the individual gives birth to the first child

19 born to the individual after becoming eligi20 ble for aid under this part;

21 ‘‘(vii) during the 4-month period after

22 the individual gives birth to the second or

23 subsequent child born to the individual

24 after becoming eligible for aid under this

25 part; or
26

•S 1795 IS

1 ‘‘(viii) if the individual resides in an

2 area of the State where the program is not

3 available.’’.

4 (b) CONFORMING AMENDMENT.—Section

5 402(a)(19)(G)(v) (42 U.S.C. 602(a)(19)(G)(v)), as redes6 ignated by subsection (b)(2), is amended—

7 (A) in the matter preceding subclause (I),

8 by striking ‘‘—’’;

9 (B) by striking subclause (I); and

10 (C) in subclause (II), by striking ‘‘(II)’’.

11 SEC. 106. INCREASE IN REQUIRED JOBS PARTICIPATION

12 RATES.

13 (a) INCREASE IN REQUIRED JOBS PARTICIPATION

14 RATES.—Section 403(l)(3) (42 U.S.C. 603(l)(3)) is

15 amended—

16 (1) in subparagraph (A)—

17 (A) by amending clauses (i) through (vi) to

18 read as follows:

19 ‘‘(i) with respect to all individuals eligible for

20 aid under the State plan who applied for such aid

21 before October 1, 1994—

22 ‘‘(I) 7 percent if the preceding fiscal year

23 is 1990;

24 ‘‘(II) 7 percent if such year is 1991;

25 ‘‘(III) 11 percent if such year is 1992;
27

•S 1795 IS

1 ‘‘(IV) 11 percent if such year is 1993;

2 ‘‘(V) 15 percent if such year is 1994;

3 ‘‘(VI) 20 percent if such year is 1995;

4 ‘‘(VII) 20 percent if such year is 1996;

5 ‘‘(VIII) 20 percent if such year is 1997;

6 and

7 ‘‘(IX) 20 percent if such year is 1998;

8 ‘‘(ii) with respect to all individuals eligible for

9 aid under the State plan who applied for such aid

10 on or after October 1, 1994, and before October 1,

11 1998—

12 ‘‘(I) 20 percent if such year is 1995;

13 ‘‘(II) 30 percent if such year is 1996;

14 ‘‘(III) 40 percent if such year is 1997; and

15 ‘‘(IV) 50 percent if such year is 1998; and

16 ‘‘(iii) with respect to all individuals eligible for

17 aid under the State plan who applied for such aid

18 on or after October 1, 1998—

19 ‘‘(I) 60 percent if such year is 1999;

20 ‘‘(II) 70 percent if such year is 2000;

21 ‘‘(III) 80 percent if such year is 2001; and

22 ‘‘(IV) 90 percent if such year is 2002.’’;

23 and

24 (2) in subparagraph (B)(ii)(IV), by striking

25 ‘‘and 1995’’ and inserting ‘‘through 2002’’.
28

•S 1795 IS

1 (b) PARTICIPATION RATES OF UNEMPLOYED PAR2 ENTS.—

3 (1) IN GENERAL.—Section 402(a)(19)(D) (42

4 U.S.C 602(a)(19)(D)) is amended to read as follows:

5 ‘‘(D) that, notwithstanding subparagraph

6 (B), in the case of a family eligible for aid to

7 families with dependent children by reason of

8 the unemployment of the parent who is the

9 principal earner, members of such family shall

10 participate in the program in accordance with

11 section 403(l)(4);’’.

12 (2) PARTICIPATION DESCRIBED.—Section

13 403(l)(4)(A) (42 U.S.C. 603(l)(4)(A)) is amended to

14 read as follows:

15 ‘‘(4)(A) In the case of any family eligible for aid to

16 families with dependent children by reason of the unem17 ployment of the parent who is the principal earner, the

18 State—

19 ‘‘(i) shall require one parent to participate in

20 the work component of the program, and

21 ‘‘(ii) may require one parent to participate in

22 the transition component of the program.

23 In the case of a parent under age 25 who has not com24 pleted high school or an equivalent course of education,

25 the State may require such parent to participate in edu-
29

•S 1795 IS

1 cational activities directed at the attainment of a high

2 school diploma (or equivalent) or another basic education

3 program, in lieu of any requirement under the preceding

4 sentence.’’.

5 (3) REQUIRED PARTICIPATION RATES.—Section

6 403(l)(4)(B) (42 U.S.C. 603(l)(4)(B)) is amended—

7 (A) in the matter preceding clause (i), by

8 striking ‘‘subparagraph (A)’’ and inserting

9 ‘‘subparagraph (A)(i)’’;

10 (B) in clause (iii), by striking ‘‘and’’;

11 (C) in clause (iv), by striking ‘‘each of the

12 fiscal years 1997 and 1998.’’ and inserting ‘‘fis13 cal year 1997; and’’; and

14 (D) by adding at the end the following:

15 ‘‘(v) 90 percent in the case of the average of

16 each month in fiscal year 1998.’’.

17 (4) CONFORMING AMENDMENTS.—Section

18 403(l)(4)(D) (42 U.S.C. 603(l)(4)(D)) is amended—

19 (A) by striking ‘‘subparagraph (A)’’ each

20 place it appears and inserting ‘‘subparagraph

21 (A)(i)’’; and

22 (B) by striking ‘‘he’’ each place it appears

23 and inserting ‘‘the Secretary’’.
30

•S 1795 IS

1 (5) EXTENSION TO ALL STATES OF OPTION TO

2 LIMIT AFDC–UP.—Section 407(b)(2)(B) (42 U.S.C.

3 607(b)(2)(B)) is amended by striking clause (iii).

4 SEC. 107. PAYMENTS TO STATES.

5 Section 403 (42 U.S.C. 603) is amended by adding

6 at the end the following new subsection:

7 ‘‘(o)(1) Except as provided in paragraph (3), each

8 State which has been paid under subsection (l) for a fiscal

9 year an amount equal to the limitation determined under

10 subsection (k)(2) for the fiscal year shall, in addition to

11 any payment under subsection (a) or (l), be entitled to

12 a payment from the Secretary in an amount equal to the

13 sum of—

14 ‘‘(A) 50 percent of the expenditures of the

15 State for administrative costs incurred in operating

16 the program under part F during the fiscal year

17 (other than personnel costs for staff employed in the

18 operation of the program) with respect to which pay19 ment has not been made under subsection (l); and

20 ‘‘(B) except as provided in paragraph (2), the

21 greater of 70 percent or the Federal medical assist22 ance percentage (as defined in section 1118 in the

23 case of a State to which section 1108 applies, or as

24 defined in section 1905(b) in the case of any other

25 State) of the other expenditures of the State in-
31

•S 1795 IS

1 curred in operating the program under part F dur2 ing the fiscal year with respect to which payment

3 has not been made under subsection (l).

4 ‘‘(2)(A) Notwithstanding paragraph (1)(B), the Sec5 retary shall pay to a State an amount equal to 50 percent

6 of the expenditures of the State incurred in operating the

7 program under part F during a fiscal year and with re8 spect to which payment has not been made under sub9 section (l) if the State’s participation rate (determined

10 under subparagraph (B) of this paragraph) for the imme11 diately preceding fiscal year is less than—

12 ‘‘(i) 15 percent if the preceding fiscal year is

13 1994;

14 ‘‘(ii) 20 percent if such year is 1995;

15 ‘‘(iii) 30 percent if such year is 1996;

16 ‘‘(iv) 40 percent if such year is 1997;

17 ‘‘(v) 50 percent if such year is 1998;

18 ‘‘(vi) 60 percent if such year is 1999;

19 ‘‘(vii) 70 percent if such year is 2000;

20 ‘‘(viii) 80 percent if such year is 2001; and

21 ‘‘(ix) 90 percent if such year is 2002.

22 ‘‘(B)(i) The State’s participation rate for a fiscal year

23 shall be the number, expressed as a percentage, equal to—
32

•S 1795 IS

1 ‘‘(I) the number of individuals who participated

2 in the State’s program under part F in the year; di3 vided by

4 ‘‘(II) the number of individuals required to par5 ticipate in the program in the year (including indi6 viduals with respect to whom the State has exercised

7 its option to require their participation).

8 ‘‘(ii) For purposes of this subparagraph, an individ9 ual shall not be considered to have satisfactorily partici10 pated in the program under part F solely by reason of

11 the individual being registered to participate in the pro12 gram.

13 ‘‘(C) For purposes of this paragraph, an individual

14 shall be considered to have participated in the program

15 under part F if the individual has participated in accord16 ance with such requirements, consistent with regulations

17 of the Secretary, as the State shall establish.

18 ‘‘(D)(i) If the Secretary determines that a State has

19 failed to achieve the participation rate for any fiscal year

20 specified in subparagraph (A), then, subject to clause (ii),

21 the Secretary may waive, in whole or in part, the reduction

22 in the payment rate otherwise required by such subpara23 graph (A) if the Secretary finds that the State—

24 ‘‘(I) is in conformity with section 402(a)(19)

25 and part F;
33

•S 1795 IS

1 ‘‘(II) has made a good faith effort to achieve

2 the applicable participation rate for such fiscal year;

3 and

4 ‘‘(III) has submitted a proposal which is likely

5 to achieve the applicable participation rate for the

6 current fiscal year and any succeeding fiscal year so

7 specified.

8 ‘‘(ii) The Secretary may not grant a waiver to any

9 State under clause (i) for more than 12 months (whether

10 or not consecutive) in any 48-month period.

11 ‘‘(3)(A) For fiscal years 1996, 1997, and 1998, the

12 amount paid to a State by the Secretary under paragraph

13 (1) shall not exceed the amount that bears the same ratio

14 to the amount specified in subparagraph (B) for the fiscal

15 year as the average monthly number of adult recipients

16 (as defined in subsection (k)(4)) in the State in the pre17 ceding fiscal year bears to the average monthly number

18 of such recipients in all the States for such preceding year.

19 ‘‘(B) The amount specified in this subparagraph is—

20 ‘‘(i) $300,000,000 for fiscal year 1996;

21 ‘‘(ii) $1,000,000,000 for fiscal year 1997; and

22 ‘‘(iii) $1,900,000,000 for fiscal year 1998.’’.

23 SEC. 108. EFFECTIVE DATE.

24 (a) IN GENERAL.—Except as provided in subsection

25 (b), the amendments made by this title shall take effect
34

•S 1795 IS

1 on the first day of the first fiscal year beginning after the

2 date of the enactment of this Act.

3 (b) DELAY IF STATE LEGISLATION REQUIRED.—In

4 the case of a State which the Secretary determines re5 quires State legislation (other than legislation authorizing

6 or appropriating funds) in order to comply with the

7 amendments made by this title, the State shall not be re8 garded as failing to comply with such amendments solely

9 on the basis of its failure to meet the requirements of such

10 amendments before the first day of the first calendar

11 quarter beginning after the close of the first regular ses12 sion of the State legislature that begins after the date of

13 the enactment of this Act. For purposes of the preceding

14 sentence, in the case of a State that has a 2-year legisla15 tive session, each year of such session shall be deemed to

16 be a separate regular session of the State legislature.

17 TITLE II—PROVISIONS RELAT18 ING TO PATERNITY ESTAB19 LISHMENT

20 SEC. 201. REDUCTION OF AFDC FOR PARENT OR GUARDIAN

21 OF CHILDREN WHOSE PATERNITY IS NOT ES22 TABLISHED.

23 (a) FAMILIES APPLYING FOR AFDC.—Section

24 402(a) (42 U.S.C. 602(a)), as amended by sections 101

25 and 102, is amended—
35

•S 1795 IS

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

2 (46);

3 (2) by striking the period at the end of para4 graph (47) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (47) the fol6 lowing new paragraph:

7 ‘‘(48) unless the State has enacted a law ex8 empting itself from the application of this para9 graph, provide that—

10 ‘‘(A) except as provided in subparagraph

11 (B), if a family applying for aid under this part

12 includes a child with respect to whom paternity

13 has not been established, aid paid to such fam14 ily under the State plan for any month shall be

15 reduced by the amount of such aid allocable to

16 the parent or guardian of such child until—

17 ‘‘(i) paternity has been acknowledged

18 by the father of such child;

19 ‘‘(ii) a paternity suit has been insti20 tuted with respect to such child; or

21 ‘‘(iii) such parent or guardian dem22 onstrates to the satisfaction of the State

23 that the father of such child is dead or

24 missing;

25 ‘‘(B) subparagraph (A) shall not apply if—
36

•S 1795 IS

1 ‘‘(i) the child was conceived as a re2 sult of rape or incest;

3 ‘‘(ii) the State determines that efforts

4 to establish paternity would result in phys5 ical danger to a member of the family

6 claiming aid under this part; or

7 ‘‘(iii) the State, with the approval of

8 the Secretary, determines that a reduction

9 in such aid would impose an undue hard10 ship on the family claiming such aid; and

11 ‘‘(C) if it is determined that the individual

12 named as the father in a paternity suit insti13 tuted under clause (ii) of subparagraph (A) is

14 not the father of the child referred to in such

15 subparagraph, aid paid to the child’s family

16 under the State plan for any month shall be—

17 ‘‘(i) reduced by the amount of such

18 aid allocable to the parent or guardian of

19 such child in accordance with such sub20 paragraph; and

21 ‘‘(ii) made in the form of payments

22 described in section 406(b)(2).’’.

23 (b) ALL FAMILIES.—

24 (1) IN GENERAL.—Section 402(a)(48) (42

25 U.S.C. 602(a)(46)), as added by subsection (a), is
37

•S 1795 IS

1 amended by striking ‘‘applying for aid under this

2 part’’.

3 (2) EFFECTIVE DATE.—

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

5 subparagraph (B), the amendment made by

6 paragraph (1) shall take effect on the first day

7 of the second fiscal year beginning after the

8 date of the enactment of this Act.

9 (B) DELAY IF STATE LEGISLATION RE10 QUIRED.—In the case of a State which the Sec11 retary determines requires State legislation

12 (other than legislation authorizing or appro13 priating funds) in order to comply with the

14 amendments made by paragraph (1), the State

15 shall not be regarded as failing to comply with

16 such amendments solely on the basis of its fail17 ure to meet the requirements of such amend18 ments before the first day of the first calendar

19 quarter beginning after the close of the first

20 regular session of the State legislature that be21 gins after the date of the enactment of this Act.

22 For purposes of the preceding sentence, in the

23 case of a State that has a 2-year legislative ses24 sion, each year of such session shall be deemed
38

•S 1795 IS

1 to be a separate regular session of the State

2 legislature.

3 SEC. 202. EARLIER PATERNITY ESTABLISHMENT EFFORTS

4 BY STATES.

5 Section 466(a)(5) (42 U.S.C. 666(a)(5)) is amended

6 by adding at the end the following new subparagraph:

7 ‘‘(I) Procedures under which a pregnant, un8 married woman is provided information regarding

9 potential ineligibility for, or reductions in, benefits

10 under Federal and State programs, including the aid

11 to families with dependent children program under

12 part A, if such woman fails to establish, or cooperate

13 in the establishment of, the paternity of the child.’’.

14 SEC. 203. INCREASE IN PATERNITY ESTABLISHMENT PER15 CENTAGE.

16 Section 452(g)(1) (42 U.S.C. 652(g)(1)), as amended

17 by section 13721(a) of the Omnibus Budget Reconciliation

18 Act of 1993, is amended—

19 (1) in the matter preceding subparagraph (A),

20 by striking ‘‘on or after October 1, 1994’’ and in21 serting ‘‘after the date of the enactment of the Wel22 fare Reform Act of 1994’’; and

23 (2) by striking subparagraphs (A) through (E)

24 and inserting the following:

25 ‘‘(A) 90 percent;
39

•S 1795 IS

1 ‘‘(B) for a State with a paternity establishment

2 percentage of not less than 50 percent but less than

3 90 percent for such fiscal year, the paternity estab4 lishment percentage of the State for the immediately

5 preceding fiscal year plus 6 percentage points; or

6 ‘‘(C) for a State with a paternity establishment

7 percentage of less than 50 percent for such fiscal

8 year, the paternity establishment percentage of the

9 State for the immediately preceding fiscal year plus

10 10 percentage points.’’.

11 SEC. 204. EFFECTIVE DATE.

12 (a) IN GENERAL.—Except as provided in section

13 201(b) and subsection (b), the amendments made by this

14 title shall take effect on the first day of the first fiscal

15 year beginning after the date of the enactment of this Act.

16 (b) DELAY IF STATE LEGISLATION REQUIRED.—In

17 the case of a State which the Secretary determines re18 quires State legislation (other than legislation authorizing

19 or appropriating funds) in order to comply with the

20 amendments made by this title, the State shall not be re21 garded as failing to comply with such amendments solely

22 on the basis of its failure to meet the requirements of such

23 amendments before the first day of the first calendar

24 quarter beginning after the close of the first regular ses25 sion of the State legislature that begins after the date of
40

•S 1795 IS

1 the enactment of this Act. For purposes of the preceding

2 sentence, in the case of a State that has a 2-year legisla3 tive session, each year of such session shall be deemed to

4 be a separate regular session of the State legislature.

5 TITLE III—CHILD SUPPORT

6 ENFORCEMENT

7 SEC. 301. STATE INFORMATION SYSTEMS.

8 (a) STATE REGISTRIES OF CHILD SUPPORT OR9 DERS.—Section 466(a) (42 U.S.C. 666(a)), as amended

10 by section 13721(b)(3) of the Omnibus Budget Reconcili11 ation Act of 1993, is amended by inserting after para12 graph (11) the following new paragraph:

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

14 designate a public agency to maintain a child sup15 port order registry, which must include—

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

17 being enforced under the State plan; and

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

19 has or is owed a legal obligation to provide child

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

21 a copy of the order that imposes the obliga22 tion.’’.

23 (b) ACCESSIBILITY OF STATE INFORMATION RELAT24 ED TO CHILD SUPPORT.—
41

•S 1795 IS

1 (1) TO OTHER STATES.—Section 466(a) (42

2 U.S.C. 666(a)), as amended by subsection (a), is

3 amended by inserting after paragraph (12) the fol4 lowing new paragraph:

5 ‘‘(13)(A) Procedures requiring all records of the

6 State to which the agency administering the plan

7 has access and determines may be useful in locating

8 noncustodial parents or collecting child support to be

9 made accessible to any agency of any State for such

10 purpose through the Interstate Locate Network es11 tablished under section 453(g) in accordance with

12 regulations promulgated by the Secretary which pro13 hibit the release of any information that might jeop14 ardize the safety of any individual.

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

16 access to State records provided pursuant to sub17 paragraph (A).’’.

18 (2) TO PRIVATE PARTIES.—Section 466(a) (42

19 U.S.C. 666(a)), as amended by subsection (a) and

20 paragraph (1), is amended by inserting after para21 graph (13) the following new paragraph:

22 ‘‘(14) Procedures under which—

23 ‘‘(A) noncustodial parents (and their des24 ignees) must be given access to State parent lo25 cator services to aid in the establishment or en-
42

•S 1795 IS

1 forcement of visitation rights in accordance

2 with regulations promulgated by the Secretary

3 which prohibit the release of any information

4 that might jeopardize the safety of any individ5 ual; and

6 ‘‘(B) custodial parents (and their des7 ignees) must be given access to State parent lo8 cator services to aid in the establishment and

9 enforcement of child support obligations against

10 noncustodial parents.’’.

11 SEC. 302. NATIONAL INFORMATION SYSTEMS.

12 (a) EXPANSION OF PARENT LOCATOR SERVICE.—

13 Section 453 (42 U.S.C. 653) is amended—

14 (1) in subsection (a)—

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

16 and

17 (B) by striking ‘‘enforcing support obliga18 tions against such parent’’ and inserting ‘‘es19 tablishing parentage, establishing, modifying,

20 and enforcing child support obligations, and (2)

21 to any noncustodial parent (or the designee of

22 the noncustodial parent) information as to the

23 whereabouts of the custodial parent when such

24 information is to be used to locate such parent
43

•S 1795 IS

1 for the purpose of enforcing child visitation

2 rights and obligations’’;

3 (2) in subsection (b), by inserting after the 2nd

4 sentence the following: ‘‘Information shall not be

5 disclosed to a custodial parent or a noncustodial par6 ent if it is demonstrated to the satisfaction of the

7 State that the disclosure would jeopardize the safety

8 of any individual.’’;

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

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

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

12 term appears and inserting ‘‘noncustodial parent’’.

13 (b) ESTABLISHMENT OF INTERSTATE LOCATE NET14 WORK.—Section 453 (42 U.S.C. 653) is amended by add15 ing at the end the following new subsection:

16 ‘‘(g) The Secretary shall establish an Interstate Lo17 cate Network linking the Parent Locator Service and all

18 State databases relating to child support enforcement

19 which shall promote efforts to locate any noncustodial par20 ent who has a legal obligation to provide child support (as

21 defined in section 462(b)) or any custodial parent against

22 whom visitation rights are being enforced by providing on23 line computer access to the records of any Federal, State,

24 or other source of child support information.’’.
44

•S 1795 IS

1 (c) INFORMATION SHARING REGULATIONS.—Section

2 452(a) (42 U.S.C. 652(a)) is amended—

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

4 (9);

5 (2) by striking the period at the end of para6 graph (10)(I) and inserting ‘‘; and’’;

7 (3) by inserting the following new paragraph

8 immediately after paragraph (10)(I):

9 ‘‘(11) prescribe regulations governing informa10 tion sharing among States, within States, and be11 tween the States and the Parent Locator Service—

12 ‘‘(A) to require a State that is attempting

13 to locate a noncustodial parent or collect child

14 support—

15 ‘‘(i) to compare all outstanding cases

16 with information in the employment

17 records of the State; and

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

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

20 noncustodial parent or collect the child

21 support, then—

22 ‘‘(I) if the State has reason to

23 believe that the noncustodial parent is

24 in another particular State or States,

25 to request such State or States for in-
45

•S 1795 IS

1 formation on the noncustodial parent;

2 and

3 ‘‘(II) if the State does not have

4 reason to believe that the noncustodial

5 parent is in another particular State

6 or States, to broadcast to all States a

7 request for such information; and

8 ‘‘(B) to ensure that if a State broadcasts

9 a request for information for the purpose of lo10 cating a noncustodial parent or collecting child

11 support under subparagraph (A), such State

12 will receive a response to the request in not

13 more than 48 hours.’’;

14 (4) by moving the last sentence 2 ems to the

15 left; and

16 (5) by striking ‘‘such report under subpara17 graph (A)’’ and inserting ‘‘report under paragraph

18 (10)(A)’’ in the last sentence.

19 SEC. 303. INCOME WITHHOLDING.

20 (a) STATE ROLE.—Section 466(a) (42 U.S.C.

21 666(a)), as amended by subsections (a) and (b) of section

22 301, is amended by inserting after paragraph (14) the fol23 lowing new paragraph:

24 ‘‘(15) Procedures under which the State shall

25 designate a public agency to—
46

•S 1795 IS

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

2 State plan; and

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

4 457, the amounts collected as child support.

5 ‘‘(16) Procedures under which the State shall

6 require any court of the State that establishes or

7 modifies a child support order to transmit a copy of

8 the order to the State agency designated pursuant to

9 paragraph (17), unless the order does not provide

10 for income withholding, and the noncustodial parent

11 and the custodial parent object.

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

13 designate a State agency to use the uniform income

14 withholding order developed under section

15 452(a)(12) in connection with the State’s child sup16 port collection efforts.’’.

17 (b) UNIFORM WITHHOLDING ORDER.—Section

18 452(a) (42 U.S.C. 652(a)), as amended by section 302(c),

19 is amended—

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

21 (10);

22 (2) by striking the period at the end of para23 graph (11) and inserting ‘‘; and’’; and

24 (3) by inserting after paragraph (11) the fol25 lowing new paragraph:
47

•S 1795 IS

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

2 cases in which income is to be withheld for the pay3 ment of child support, which shall—

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

5 whose income is to be withheld, the amount of

6 income to be withheld, the number of children

7 covered by the order, and the individual or

8 State to whom the withheld income is to be

9 paid; and

10 ‘‘(B) be in a form which allows for the

11 service of the order on all sources of income.’’.

12 (c) STATES REQUIRED TO HAVE LAWS REQUIRING

13 EMPLOYERS TO WITHHOLD CHILD SUPPORT PURSUANT

14 TO UNIFORM INCOME WITHHOLDING ORDERS.—Section

15 466(b) (42 U.S.C. 666(b)(1)) is amended—

16 (1) in paragraph (1)—

17 (A) by inserting ‘‘and in the case of each

18 other individual employed in the State,’’ before

19 ‘‘so much’’; and

20 (B) by striking ‘‘parent’s’’ and inserting

21 ‘‘parent’s or individual’s’’;

22 (2) in paragraph (6)(C), by inserting ‘‘of this

23 paragraph and paragraph (9)(B) of this subsection’’

24 after ‘‘(A)’’; and

25 (3) in paragraph (9)—
48

•S 1795 IS

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

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

3 subparagraph:

4 ‘‘(B)(i) If an individual or entity engaged in

5 commerce receives an income withholding order de6 veloped under section 452(a)(12) and issued by a

7 court or State agency of any State with respect to

8 an employee of such individual or entity, such indi9 vidual or entity shall—

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

11 order to the employee subject to the order; and

12 ‘‘(II) within 10 days after receipt of the

13 order, withhold income from the employee in

14 the manner described in paragraph (6)(A)(i) of

15 this subsection, notwithstanding paragraph (4)

16 of this subsection.

17 ‘‘(ii) Such an order may be served on the indi18 vidual or entity directly or by first-class mail.

19 ‘‘(iii) Any individual or entity who in good faith

20 complies with such an order may not be held liable

21 for wrongful withholding of income from the em22 ployee subject to the order.

23 ‘‘(iv) The State shall impose a civil fine on any

24 individual or entity which, due to negligence, fails to

25 comply with an order with respect to an employee
49

•S 1795 IS

1 within 10 days after receipt of such order. Such civil

2 fine shall be in an amount equal to the lesser of—

3 ‘‘(I) average cost of noncompliance (as de4 termined by the State); or

5 ‘‘(II) $25 for each act or omission con6 stituting noncompliance.

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

8 for the administration of child support income with9 holding and related reporting of information shall

10 not collect more than the average cost of such ad11 ministration, as determined by the State.’’.

12 SEC. 304. UNIFORM TERMS IN ORDERS.

13 Section 452(a) (42 U.S.C. 652(a)), as amended by

14 sections 302 and 303, is amended—

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

16 the semicolon;

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

18 the end of the 2nd sentence and inserting ‘‘; and’’;

19 and

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

21 paragraph:

22 ‘‘(13) develop, in conjunction with State execu23 tive and judicial organizations, a uniform child sup24 port order for use by all State courts which shall in25 clude—
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•S 1795 IS

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

2 begin under the order;

3 ‘‘(B) the circumstances upon which sup4 port payments are to end under the order;

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

6 pursuant to the order expressed as a sum cer7 tain to be paid on a monthly basis, arrearages

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

9 and any payback schedule for the arrearages;

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

11 a lump sum (nonallocated) or per child;

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

13 event causing a change in the support award

14 and the amount of any change;

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

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

17 the order;

18 ‘‘(H) the social security account numbers

19 of the parents;

20 ‘‘(I) the name, date of birth, and social se21 curity account number (if any) of each child

22 covered by the order;

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

24 and address) of the court that issued the order;
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•S 1795 IS

1 ‘‘(K) any information on health care sup2 port required by the order; and

3 ‘‘(L) the party to contact if additional in4 formation is obtained.’’.

5 SEC. 305. WORK REQUIREMENT FOR NONCUSTODIAL PAR6 ENTS WITH CHILD SUPPORT ARREARAGES.

7 Section 466(a) (42 U.S.C. 666(a)), as amended by

8 sections 301 and 303, is amended by inserting after para9 graph (17) the following new paragraph:

10 ‘‘(18) Procedures requiring that—

11 ‘‘(A) upon a determination by the State

12 agency referred to in section 402(a)(3) that the

13 noncustodial parent of any child who is apply14 ing for or receiving aid under the State plan ap15 proved under part A owes child support (as de16 fined section 462(b)) with respect to the child,

17 is in arrears in the payment of such support in

18 an amount that is not less than twice the

19 amount of the monthly child support obligation,

20 and is not subject to a court-approved plan for

21 payment of such arrearage, the State agency re22 ferred to in section 402(a)(3) shall send to the

23 noncustodial parent a letter notifying the

24 noncustodial parent that the noncustodial par25 ent—
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•S 1795 IS

1 ‘‘(i) is required to pay child support

2 with respect to the child; and

3 ‘‘(ii) is subject to fines and other pen4 alties for failure to pay the full amount of

5 such support in a timely manner; and

6 ‘‘(B) except with respect to a noncustodial

7 parent described in subparagraph (A) who is

8 employed or incapacitated—

9 ‘‘(i) if, by the end of the 30-day pe10 riod that begins with the date the letter is

11 sent pursuant to subparagraph (A), the

12 amount of the arrearage has not decreased

13 by at least a percentage amount specified

14 by the State agency, the State shall seek a

15 court order requiring the noncustodial par16 ent to participate in a job search program

17 established by the State, for not less than

18 2 weeks and not more than 4 weeks; and

19 ‘‘(ii) if, by the end of the 30-day pe20 riod beginning on the date the order under

21 subparagraph (B) is entered, the amount

22 of the arrearage has not decreased by at

23 least a percentage amount specified by the

24 State agency, the noncustodial parent shall

25 participate in a work program established
53

•S 1795 IS

1 by the State, for not less than 35 hours

2 per week (or, if the program also requires

3 job search, for not less than 32 hours per

4 week).’’.

5 SEC. 306. EFFECTIVE DATE.

6 (a) IN GENERAL.—Except as provided in subsection

7 (b), the amendments made by this title shall take effect

8 on the first day of the first fiscal year beginning after the

9 date of the enactment of this Act.

10 (b) DELAY IF STATE LEGISLATION REQUIRED.—In

11 the case of a State which the Secretary determines re12 quires State legislation (other than legislation authorizing

13 or appropriating funds) in order to comply with the

14 amendments made by this section, the State shall not be

15 regarded as failing to comply with such amendments solely

16 on the basis of its failure to meet the requirements of such

17 amendments before the first day of the first calendar

18 quarter beginning after the close of the first regular ses19 sion of the State legislature that begins after the date of

20 the enactment of this Act. For purposes of the preceding

21 sentence, in the case of a State that has a 2-year legisla22 tive session, each year of such session shall be deemed to

23 be a separate regular session of the State legislature.
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•S 1795 IS

1 TITLE IV—EXPANSION OF STAT2 UTORY FLEXIBILITY OF

3 STATES

4 SEC. 401. OPTION TO INCREASE OR DECREASE PAYMENTS

5 BASED ON PREVENTIVE HEALTH CARE AND

6 IMMUNIZATIONS FOR CHILDREN.

7 (a) IN GENERAL.—

8 (1) INCREASE IN AFDC BENEFITS.—Section

9 402(a) (42 U.S.C. 602(a)), as amended by sections

10 101, 102, and 201, is amended—

11 (A) by striking ‘‘and’’ at the end of para12 graph (47);

13 (B) by striking the period at the end of

14 paragraph (48) and inserting ‘‘; and’’; and

15 (C) by inserting after paragraph (48) the

16 following new paragraph:

17 ‘‘(49) unless the State has enacted a law ex18 empting itself from the application of this para19 graph, provide that—

20 ‘‘(A) the State shall increase (in accord21 ance with any methodology determined appro22 priate by the State) the amount paid to a fam23 ily under this part by up to $50 for any month

24 (but not exceeding $300 in the aggregate) with

25 respect to which the State agency receives writ-
55

•S 1795 IS

1 ten verification from a licensed health care pro2 vider (on a form prescribed by the State) that

3 each child in such family who is under the age

4 of 6—

5 ‘‘(i) has received early and periodic

6 screening, diagnostic, and treatment serv7 ices (as defined in section 1905(r)); and

8 ‘‘(ii) has been immunized in accord9 ance with recommendations issued by the

10 Surgeon General of the Public Health

11 Service;’’.

12 (2) REDUCTION IN AFDC BENEFITS.—Section

13 402(a)(49) (42 U.S.C. 602(a)(49)), as added by

14 paragraph (1), is amended by adding at the end the

15 following new subparagraph:

16 ‘‘(B) the State shall decrease (in accord17 ance with any methodology determined appro18 priate by the State) the amount paid to a fam19 ily under this part by up to $50 for any month

20 with respect to which the State agency fails to

21 receive written verification from a licensed

22 health care provider (on a form prescribed by

23 the State) that each child in such family who

24 is under the age of 6—
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•S 1795 IS

1 ‘‘(i) has received early and periodic

2 screening, diagnostic, and treatment serv3 ices (as defined in section 1905(r)); and

4 ‘‘(ii) has been immunized in accord5 ance with recommendations issued by the

6 Surgeon General of the Public Health

7 Service; and’’.

8 (3) EDUCATION AND OUTREACH ACTIVITIES.—

9 Section 402(a)(49) (42 U.S.C. 602(a)(49)), as

10 added by paragraph (1) and amended by paragraph

11 (2), is amended by adding at the end the following

12 new subparagraph:

13 ‘‘(C) the State will conduct appropriate

14 education and outreach activities designed to—

15 ‘‘(i) increase public awareness of the

16 importance of preventive health care and

17 immunizations for pre-school children; and

18 ‘‘(ii) inform the public about—

19 ‘‘(I) the availability of preventive

20 health care and immunization services

21 for pre-school children;

22 ‘‘(II) any transportation, child

23 care, or other support services that

24 may be available to assist parents in
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•S 1795 IS

1 obtaining such services for their chil2 dren; and

3 ‘‘(III) the clinics at which any

4 child may receive immunizations free

5 or at a reduced charge.’’.

6 (b) ISSUANCE OF IMMUNIZATION RECOMMENDA7 TIONS BY THE SURGEON GENERAL OF THE PUBLIC

8 HEALTH SERVICE.—After taking into consideration the

9 most recent report of the Committee on Infectious Dis10 eases of the American Academy of Pediatrics, the Surgeon

11 General of the Public Health Service shall issue, and re12 vise from time to time, recommendations for the immuni13 zation of children under 6 years of age. With respect to

14 each recommended immunization, such recommendation

15 shall include—

16 (1) contraindications (if any) that should be

17 identified to exempt a child from receiving such im18 munization, and

19 (2) remedial action that may be taken to mini20 mize the adverse effect of failure to administer such

21 immunization to a child at the recommended age.
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•S 1795 IS

1 SEC. 402. OPTION TO INCREASE OR DECREASE PAYMENTS

2 BASED ON ATTENDANCE AT EDUCATIONAL

3 INSTITUTIONS AND PARTICIPATION IN VOCA4 TIONAL OR TECHNICAL TRAINING.

5 (a) INCREASE IN AFDC BENEFITS.—Section 402(a)

6 (42 U.S.C. 602(a)), as amended by sections 101, 102,

7 201, and 401, is amended—

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

9 (48);

10 (2) by striking the period at the end of para11 graph (49) and inserting ‘‘; and’’; and

12 (3) by inserting after paragraph (49) the fol13 lowing new paragraph:

14 ‘‘(50) at the option of the State, provide that—

15 ‘‘(A) the aid otherwise payable under the

16 plan to a family may be increased by not more

17 than $75 per month if each member of such

18 family who is attending an educational institu19 tion or participating in a course of vocational or

20 technical training has maintained minimum at21 tendance (as defined by the State in consulta22 tion with the Secretary) at such institution or

23 in such course during the immediately preced24 ing month; and’’.

25 (b) DECREASE IN AFDC BENEFITS.—Section

26 402(a)(50) (42 U.S.C. 602(a)(50)), as added by para-
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•S 1795 IS

1 graph (1), is amended by adding at the end the following

2 new subparagraph:

3 ‘‘(B) the aid otherwise payable under the

4 plan to a family may be reduced by not more

5 than $75 per month if a member of such family

6 who is attending an educational institution or

7 participating in a course of vocational or tech8 nical training fails, without good cause (as de9 fined by the State in consultation with the Sec10 retary), during the immediately preceding

11 month, to maintain minimum attendance (as

12 defined by the State in consultation with the

13 Secretary) at such institution or in such

14 course.’’.

15 SEC. 403. OPTION TO DENY AFDC FOR ADDITIONAL CHIL16 DREN.

17 Section 402(a) (42 U.S.C. 602(a)), as amended by

18 sections 101, 102, 201, 401, and 402, is amended—

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

20 (49);

21 (2) by striking the period at the end of para22 graph (50) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (50) the fol24 lowing new paragraph:
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•S 1795 IS

1 ‘‘(51) at the option of the State, provide that

2 aid under the plan shall not be payable with respect

3 to a child conceived by a recipient of aid under the

4 plan.’’.

5 SEC. 404. OPTION TO PROVIDE MARRIED COUPLE TRANSI6 TION BENEFIT.

7 Section 402(a) (42 U.S.C. 602(a)), as amended by

8 sections 101, 102, 201, 401, 402, and 403, is amended—

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

10 (50);

11 (2) by striking the period at the end of para12 graph (51) and inserting ‘‘; and’’; and

13 (3) by inserting after paragraph (51) the fol14 lowing new paragraph:

15 ‘‘(52) at the option of the State, provide that—

16 ‘‘(A) if a recipient of aid under the plan

17 marries an individual who is not a parent of a

18 child of the recipient and (but for this para19 graph) the resulting family would have become

20 ineligible for such aid by reason of the mar21 riage, then the family shall remain eligible for

22 aid under the plan, in an amount equal to 50

23 percent of the aid payable to the recipient im24 mediately before the marriage, for a period

25 (specified by the State) of not more than 12
61

•S 1795 IS

1 months, but only for so long as the income of

2 the family is less than 150 percent of the in3 come official poverty line (as defined by the Of4 fice of Management and Budget, and revised

5 annually in accordance with section 673(2) of

6 the Omnibus Budget Reconciliation Act of

7 1981) applicable to a family of the size in8 volved; and

9 ‘‘(B) if a recipient of aid under the plan

10 marries an individual who is not a parent of a

11 child of the recipient and the resulting family

12 would (in the absence of this subparagraph) be

13 eligible for such aid by reason of section 407,

14 then the State may provide aid to the family in

15 accordance with section 407 or subparagraph

16 (A) of this paragraph, but not both.’’.

17 SEC. 405. OPTION TO TREAT INTERSTATE IMMIGRANTS

18 UNDER RULES OF FORMER STATE.

19 Section 402(a) (42 U.S.C. 602(a)), as amended by

20 sections 101, 102, 201, 401, 402, 403, and 404, is amend21 ed—

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

23 (51);

24 (2) by striking the period at the end of para25 graph (52) and inserting ‘‘; and’’; and
62

•S 1795 IS

1 (3) by inserting after paragraph (52) the fol2 lowing new paragraph:

3 ‘‘(53) at the option of the State, in the case of

4 a family applying for aid under the State plan that

5 has moved to the State from another jurisdiction of

6 the United States with a State plan approved under

7 this part, and has resided in the State for less than

8 12 months consecutively (as determined by the

9 State), apply the rules that would have been applied

10 by such other jurisdiction if the family had not

11 moved from such other jurisdiction in determining—

12 ‘‘(A) the eligibility of the family for bene13 fits, and

14 ‘‘(B) the amount of benefits payable to the

15 family under the State plan,

16 during the 12 month period beginning on the date

17 the family moved to the State (as determined by the

18 State).’’.

19 SEC. 406. OPTION TO REQUIRE ATTENDANCE AT

20 PARENTING AND MONEY MANAGEMENT

21 CLASSES.

22 Section 402(a) (42 U.S.C. 602(a)), as amended by

23 sections 101, 102, 201, 401, 402, 403, 404, and 405, is

24 amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (52);

3 (2) by striking the period at the end of para4 graph (53) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (53) the fol6 lowing new paragraph:

7 ‘‘(54) at the option of the State, provide that,

8 as a condition of receiving aid under the State plan,

9 the recipient shall attend parenting and money man10 agement classes determined necessary and appro11 priate by the State.’’.

12 SEC. 407. OPTION TO DENY AFDC ELIGIBILITY TO CERTAIN

13 TEENAGERS; REQUIREMENT THAT TEEN14 AGERS ELIGIBLE FOR AFDC LIVE AT HOME.

15 (a) OPTION TO DENY AFDC ELIGIBILITY TO CER16 TAIN TEENAGERS.—Section 402(a) (42 U.S.C. 602(a)),

17 as amended by sections 101, 102, 201, 401, 402, 403,

18 404, 405, and 406 is amended—

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

20 (53);

21 (2) by striking the period at the end of para22 graph (54) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (54) the fol24 lowing new paragraph:
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•S 1795 IS

1 ‘‘(55) at the option of the State, provide that

2 any individual who is under the age of 18 and has

3 never married, and who has a dependent child in his

4 or her care or is pregnant, shall be ineligible for aid

5 to families with dependent children under this

6 part.’’.

7 (b) REQUIREMENT THAT TEENAGERS ELIGIBLE FOR

8 AFDC LIVE AT HOME.—Section 402(a)(43) (42 U.S.C.

9 602(a)(43)) is amended by striking ‘‘at the option of the

10 State’’ and inserting ‘‘if the State has not opted to deny

11 eligibility under paragraph (55)’’.

12 (c) CONTINUED ELIGIBILITY FOR MEDICAID PRO13 GRAM.—Section 402 (42 U.S.C. 602) is amended by in14 serting the following new subsection after subsection (c):

15 ‘‘(d) A State that opts to deny eligibility for aid to

16 families with dependent children under this part to the

17 individuals described in subsection (a)(55) shall provide

18 that such individuals shall be considered individuals re19 ceiving such aid for purposes of eligibility for medical as20 sistance under the State plan approved under title XIX.’’.

21 (d) USE OF SAVINGS.—Each State shall use the sav22 ings recognized by the State under the aid to families with

23 dependent children program under title IV of the Social

24 Security Act as a result of the amendments made by this

25 section for funding—
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•S 1795 IS

1 (1) group homes for individuals described in

2 section 402(a)(55) of such Act;

3 (2) adoption assistance programs; and

4 (3) abstinence education programs.

5 SEC. 408. DISREGARD OF EDUCATION AND EMPLOYMENT

6 TRAINING SAVINGS FOR AFDC ELIGIBILITY.

7 (a) DISREGARD AS RESOURCE.—Subparagraph (B)

8 of section 402(a)(7) (42 U.S.C. 602(a)(7)) is amended—

9 (1) by striking ‘‘or’’ before ‘‘(iv)’’, and

10 (2) by inserting ‘‘, or (v) at the option of the

11 State, any amount up to the amount established by

12 the State in a qualified education account (as de13 fined in section 406(i)(1))’’ before ‘‘; and’’.

14 (b) DISREGARD AS INCOME.—Subparagraph (A) of

15 section 402(a)(8) (42 U.S.C. 602(a)(8)) is amended—

16 (1) by striking ‘‘and’’ at the end of clause (vii),

17 and

18 (2) by inserting after clause (viii) the following

19 new clause:

20 ‘‘(ix) shall disregard any qualified dis21 tributions (as defined in section 406(i)(2))

22 made from any qualified education account

23 (as defined in section 406(i)(1)) while the

24 family is receiving aid to families with de25 pendent children; and’’.
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•S 1795 IS

1 (c) QUALIFIED EDUCATION ACCOUNTS.—Section

2 406 (42 U.S.C. 606) is amended by adding at the end

3 the following new subsection:

4 ‘‘(i)(1) The term ‘qualified education account’ means

5 a mechanism established by the State that allows savings

6 from the earned income of a dependent child who is a

7 member of a family receiving aid to families with depend8 ent children to be used for qualified distributions.

9 ‘‘(2) The term ‘qualified distributions’ means dis10 tributions from a qualified education account for expenses

11 directly related to the attendance at an eligible educational

12 institution by a dependent child who is a member of a

13 family receiving aid to families with dependent children.

14 ‘‘(3) The term ‘eligible educational institution’ means

15 an educational institution determined to be eligible by the

16 State under guidelines established by the Secretary.’’.

17 SEC. 409. EFFECTIVE DATE.

18 (a) IN GENERAL.—Except as provided in subsection

19 (b), the amendments made by this title shall take effect

20 on the first day of the first fiscal year beginning after the

21 date of the enactment of this Act.

22 (b) DELAY IF STATE LEGISLATION REQUIRED.—In

23 the case of a State which the Secretary determines re24 quires State legislation (other than legislation authorizing

25 or appropriating funds) in order to comply with the
67

•S 1795 IS

1 amendments made by this section, the State shall not be

2 regarded as failing to comply with such amendments solely

3 on the basis of its failure to meet the requirements of such

4 amendments before the first day of the first calendar

5 quarter beginning after the close of the first regular ses6 sion of the State legislature that begins after the date of

7 the enactment of this Act. For purposes of the preceding

8 sentence, in the case of a State that has a 2-year legisla9 tive session, each year of such session shall be deemed to

10 be a separate regular session of the State legislature.

11 TITLE V—EXPEDITED STATE

12 WAIVER AUTHORITY

13 SEC. 501. INTERAGENCY WAIVER REQUEST BOARD.

14 (a) ESTABLISHMENT AND PURPOSE.—In order to

15 provide a focal point within the Federal Government for

16 the development and coordination of waiver requests de17 signed to improve opportunities for low-income individuals

18 and families, there is established an Interagency Waiver

19 Request Board.

20 (b) MEMBERSHIP.—

21 (1) PERMANENT MEMBERS.—The Board shall

22 consist of 9 permanent members, as follows:

23 (A) The Secretary of Agriculture (or the

24 designee of the Secretary).
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•S 1795 IS

1 (B) The Secretary of Health and Human

2 Services (or the designee of the Secretary).

3 (C) The Secretary of Housing and Urban

4 Development (or the designee of the Secretary).

5 (D) The Secretary of Labor (or the des6 ignee of the Secretary).

7 (E) The Secretary of Education (or the

8 designee of the Secretary).

9 (F) The Attorney General of the United

10 States (or the designee of the Attorney Gen11 eral).

12 (G) The Secretary of the Interior (or the

13 designee of the Secretary).

14 (H) The Director of the Office of Manage15 ment and Budget (or the designee of the Direc16 tor).

17 (I) 1 individual appointed by the Presi18 dent.

19 (2) LIMITED PURPOSE MEMBERS.—

20 (A) IN GENERAL.—With respect to an ap21 plication submitted under this title, the Board

22 shall include the head of each department or

23 agency (or the designee of the head) having re24 sponsibility for the administration of a program
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•S 1795 IS

1 included in the assistance plan contained in the

2 application.

3 (B) BOARD OF DIRECTORS OF THE LEGAL

4 SERVICES CORPORATION.—The Board of Direc5 tors of the Legal Services Corporation is

6 deemed to be the head of the department or

7 agency having responsibility for the administra8 tion of the program of legal assistance to eligi9 ble clients and other programs under the Legal

10 Services Corporation Act (42 U.S.C. 2996

11 et seq.).

12 (c) CHAIRPERSON.—The member of the Board ap13 pointed under subsection (b)(1)(I) shall serve as Chair14 person of the Board.

15 (d) VACANCIES.—A vacancy in the position of Chair16 man shall be filled in the manner in which the original

17 appointment was made.

18 (e) NO ADDITIONAL COMPENSATION.—The members

19 of the Board may not be provided additional pay, allow20 ances, or benefits by reason of their service on the Board.

21 (f) POWERS.—

22 (1) ASSISTANCE OF OTHER FEDERAL ENTI23 TIES.—A member of the Board shall detail to the

24 Chairperson, on a nonreimbursable basis, such offi25 cers and employees of the department or agency
70

•S 1795 IS

1 headed by the member, and shall make available to

2 the Chairperson such assistance, as the Chairperson

3 may require to carry out the activities of the

4 Chairperson.

5 (2) USE OF UNITED STATES MAILS.—The

6 Chairperson may use the United States mails in the

7 same manner and under the same conditions as

8 other departments and agencies of the United

9 States.

10 (3) ACCEPTANCE OF GIFTS, BEQUESTS, AND

11 DEVISES.—The Chairperson may accept, use, and

12 dispose of gifts, bequests, or devises of services or

13 property, both real and personal, for the purpose of

14 aiding or facilitating the work of the Chairperson.

15 Gifts, bequests, or devises of money and proceeds

16 from sales of other property received as gifts, be17 quests, or devises shall be deposited in the Treasury

18 and shall be available for disbursement upon order

19 of the Chairperson.

20 (g) DUTY TO PROVIDE TECHNICAL ASSISTANCE.—

21 The Board shall provide assistance and technical advice

22 to entities submitting applications under section 502 and

23 implementing an assistance plan under an application ap24 proved under section 503.

25 (h) PROCEDURE.—
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1 (1) MEETINGS.—The Board shall meet not less

2 than twice annually at the call of the Chairperson,

3 or of at least 3 permanent members.

4 (2) NOTICE OF DECISIONS.—The Chairperson

5 shall provide the Board with advance notice of any

6 action that the Chairperson intends to take under

7 this title.

8 (3) POWER OF BOARD MAJORITY TO OVERRULE

9 CHAIRPERSON.—Notwithstanding any other provi10 sion of this title, a majority of the members of the

11 Board with respect to a matter may overrule any de12 cision or nullify any action of the Chairperson under

13 this title with respect to the matter.

14 (i) ANNUAL REPORTS.—The Chairperson shall trans15 mit annually to the Congress a report containing a de16 tailed statement of the activities of the Board during the

17 year covered by the report.

18 SEC. 502. APPLICATION TO IMPLEMENT ASSISTANCE

19 PLANS.

20 Any entity that is receiving or is eligible to receive

21 funds or other assistance under an eligible Federal pro22 gram and desires to reform any number of such programs

23 may submit to the Chairperson an application that con24 tains the following:
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•S 1795 IS

1 (1) ASSISTANCE PLAN.—An assistance plan

2 that sets forth the following:

3 (A) GEOGRAPHIC AREA.—The geographic

4 area to which the plan applies and the rationale

5 for so defining the area.

6 (B) RECIPIENTS.—The particular groups

7 of individuals, by age, service needs, economic

8 circumstances, or other defining factors, who

9 are to receive services and benefits under the

10 plan.

11 (C) OBJECTIVES AND PERFORMANCE CRI12 TERIA.—Specific objectives and criteria for

13 measuring levels of performance, a description

14 of how such objectives and levels of perform15 ance are expected to be achieved, a description

16 of how such criteria are to be used to measure

17 performance, and a system for the comprehen18 sive evaluation of the impact of the plan on par19 ticipants, the community, and program costs.

20 (D) COVERED PROGRAMS.—The eligible

21 Federal programs through which assistance is

22 to be improved in accordance with the plan, and

23 the specific benefits that are to be provided

24 under the plan pursuant to the program or pro25 grams, including criteria for determining eligi-
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•S 1795 IS

1 bility for benefits under the plan, the services

2 available, the amounts and form (such as cash,

3 in-kind contributions, or financial instruments)

4 of nonservice benefits.

5 (E) SOURCES OF NON-FEDERAL FUNDS.—

6 A description of the sources of all non-Federal

7 funds that are to be used to carry out the pro8 gram or programs referred to in subparagraph

9 (D).

10 (F) FISCAL CONTROL AND ACCOUNTABIL11 ITY.—Fiscal control and related accountability

12 procedures that are to apply under the plan.

13 (G) CONSENT OF QUALIFIED ORGANIZA14 TIONS.—Written consent from each qualified

15 organization for which consent is required

16 under section 503(c)(2)(B).

17 (H) APPROVAL OF AFFECTED STATE AND

18 LOCAL PUBLIC ENTITIES.—A written statement,

19 from each State or local public entity to which

20 the Federal funds or assistance would otherwise

21 be provided under the program or programs,

22 that the entity approves of the proposal and will

23 cooperate in the implementation of the proposal

24 by the applicant.

25 (2) ASSURANCES.—
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•S 1795 IS

1 (A) PROVISION OF PLAN TO AFFECTED OR2 GANS OF GOVERNMENT IN THE STATE.—Assur3 ances that a copy of the plan has been provided

4 to all affected organs of government in the geo5 graphic area referred to in paragraph (1)(A).

6 (B) CONSULTATION WITH PUBLIC-PRIVATE

7 PARTNERSHIP COMMITTEE.—Assurances that a

8 committee established under section 505 has

9 participated in the development of the plan.

10 (3) REQUEST FOR AUTHORITY TO IMPLEMENT

11 PLAN.—A request that the Chairperson authorize

12 the applicant to implement the plan, and waive the

13 application of any Federal statutory or regulatory

14 requirement to the extent necessary to enable such

15 implementation.

16 (4) OTHER INFORMATION.—Any other informa17 tion the Chairperson may require to approve the

18 application.

19 SEC. 503. REVIEW AND APPROVAL OF APPLICATIONS; WAIV20 ERS.

21 (a) REVIEW.—

22 (1) IN GENERAL.—Upon receipt of an applica23 tion submitted in accordance with section 502, the

24 Chairperson shall—
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•S 1795 IS

1 (A) approve or disapprove the application

2 within 90 days after such receipt;

3 (B) notify the applicant in writing of such

4 approval or disapproval; and

5 (C) if the application is disapproved, in6 clude in the notice of disapproval a written jus7 tification of the reasons for such disapproval.

8 (2) DEEMED APPROVAL.—If the Chairperson

9 fails to approve or disapprove the application in ac10 cordance with paragraph (1)(A), the application

11 shall be deemed approved.

12 (b) CONDITIONAL APPROVAL.—The Chairperson may

13 condition approval of such an application on the accept14 ance by the applicant, and by any parties whose consent

15 or approval is required under section 502, of specified

16 modifications to the application.

17 (c) APPROVAL.—

18 (1) REQUIREMENTS.—The Chairperson may

19 approve such an application, subject to paragraph

20 (2), if the Chairperson determines that—

21 (A) the implementation of the assistance

22 plan contained in the application will improve

23 the effectiveness and efficiency of providing

24 benefits under the covered program or pro25 grams included in the plan, by reducing admin-
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•S 1795 IS

1 istrative rigidity, duplication, and unnecessary

2 expenditures;

3 (B) the applicant has adequately consid4 ered, and the application appropriately address5 es, the effects that the administration of each

6 covered program included in the plan will have

7 on the administration of any other such pro8 gram;

9 (C) the applicant has or is developing data

10 bases, planning, and evaluation processes that

11 are adequate for implementing the plan;

12 (D) implementation of the plan will ade13 quately achieve the purposes of this title and of

14 such covered program or programs; and

15 (E) the plan is adequate to ensure that in16 dividuals and families that receive benefits

17 under the covered program or programs in18 cluded in the plan will continue to receive bene19 fits that meet the needs intended to be met

20 under the program or programs.

21 (2) LIMITATIONS.—The Chairperson may not

22 approve such an application if—

23 (A) implementation of the assistance plan

24 contained in the application would result in an

25 increase in the total amount of obligations or
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•S 1795 IS

1 outlays of discretionary appropriations or direct

2 spending under the covered program or pro3 grams included in the plan, over the amounts of

4 such obligations and outlays that would occur

5 under the program or programs without imple6 mentation of the plan; or

7 (B) if the plan applies to assistance to a

8 qualified organization under an eligible Federal

9 program, the qualified organization does not

10 consent in writing to the receipt of such assist11 ance in accordance with the plan.

12 (3) IMPLEMENTATION PERIOD.—In approving

13 such an application, the Chairperson shall specify

14 that the assistance plan contained in the application

15 shall be implemented for an initial period of 5 years

16 and may be renewed for subsequent 5-year periods.

17 (d) WAIVERS.—

18 (1) IN GENERAL.—Subject to this subsection,

19 the Chairperson may waive any requirement applica20 ble under Federal law to the administration of, or

21 provision of benefits under, any covered program in22 cluded in an application approved under this title, if

23 the waiver is reasonably necessary for the implemen24 tation of the assistance plan contained in the ap25 proved application.
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1 (2) FUNDING LIMITATION.—This subsection

2 shall not be construed to authorize the Chairperson

3 to waive the application to any entity of a provision

4 of law or regulation applicable to a program if the

5 waiver would result in net payments by the Federal

6 Government to the entity under the program for a

7 fiscal year in excess of the net payments which

8 would otherwise be so made to the entity.

9 (3) CIVIL RIGHTS LAWS EXCEPTED.—This sub10 section shall not be construed to authorize the

11 Chairperson to waive any requirement established by

12 statute or regulation under—

13 (A) title VI of the Civil Rights Act of 1964

14 (42 U.S.C. 2000d et seq.);

15 (B) section 504 of the Rehabilitation Act

16 of 1973 (29 U.S.C. 701 et seq.);

17 (C) title IX of the Education Amendments

18 of 1972 (86 Stat. 373 et seq.);

19 (D) the Age Discrimination Act of 1975

20 (42 U.S.C. 6101 et seq.); or

21 (E) the Americans With Disabilities Act of

22 1990.
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•S 1795 IS

1 SEC. 504. IMPLEMENTATION OF ASSISTANCE PLANS; EVAL2 UATIONS.

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, benefits under any covered program included

5 in an application approved under this title shall be paid

6 and administered in the manner specified in the approved

7 application.

8 (b) EVALUATIONS.—

9 (1) IN GENERAL.—Any entity whose application

10 is approved under this title shall, in accordance with

11 regulations issued by the Chairperson—

12 (A) submit such reports on, and cooperate

13 in such audits of, the implementation of the as14 sistance plan contained in the application; and

15 (B) periodically evaluate the effects that

16 implementation of the plan has had on—

17 (i) individuals who receive benefits

18 under a covered program included in the

19 plan;

20 (ii) communities where such individ21 uals live; and

22 (iii) costs of administering the covered

23 program or programs included in the plan.

24 (2) ANNUAL REPORTS.—Not later than 90 days

25 after the end of the 1-year period beginning on the

26 date the application of an entity is approved under
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•S 1795 IS

1 this title, and annually thereafter for each year in

2 which the assistance plan is implemented, the entity

3 shall submit to the Chairperson a report on the prin4 cipal activities and achievements under the assist5 ance plan contained in the application, during the

6 period covered by the report, and, if the application

7 was submitted under section 502(a), the report shall

8 compare those achievements to the objectives and

9 performance criteria included in the plan pursuant

10 to section 502(a)(1)(C).

11 (c) FINAL REPORT.—Not later than 45 days after

12 the end of the period for which the Chairperson has ini13 tially authorized an entity to implement an assistance

14 plan, or at any time that the entity determines that the

15 plan has demonstrated its worth and proven to be a supe16 rior way to provide benefits under the covered program

17 or programs included in the plan, the entity shall submit

18 to the Chairperson a final report on such implementation,

19 including a full evaluation of the successes and short20 comings of the plan and the effects of such implementa21 tion on individuals who receive benefits under such pro22 gram or programs.

23 (d) SUSPENSION AND TERMINATION.—
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•S 1795 IS

1 (1) IN GENERAL.—The Chairperson may re2 quire an entity to suspend or terminate implementa3 tion of part or all of an assistance plan under—

4 (A) any approved application under this

5 title if the Chairperson finds that the applicant

6 has failed to carry out a covered program in ac7 cordance with any applicable provision of law or

8 regulation; or

9 (B) an approved application that was sub10 mitted under section 502(a), if, after consulta11 tion with the head of each Federal agency re12 sponsible for administering a covered program

13 included in the approved application, the Chair14 person determines that the objectives and per15 formance criteria included in the plan pursuant

16 to section 502(a)(1)(C) have not been met.

17 (2) TIMING.—In requiring the implementation

18 of an assistance plan to be terminated under para19 graph (1), the Chairperson shall allow a reasonable

20 period of time for appropriate Federal, State, and

21 local agencies, and qualified organizations to resume

22 administration of the covered program or programs

23 included in the application that contains the plan.
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1 SEC. 505. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.

2 (a) ESTABLISHMENT.—An entity desiring to submit

3 an application under section 502(a) shall establish a Pub4 lic-Private Partnership Committee in accordance with this

5 section.

6 (b) FUNCTIONS.—A Public-Private Partnership Com7 mittee shall advise an entity in the development and imple8 mentation of an assistance plan, including with respect

9 to—

10 (1) conducting public hearings;

11 (2) representing the interest of low-income indi12 viduals and families; and

13 (3) reviewing and commenting on all commu14 nity policies, programs, and actions under the plan

15 which affect low-income individuals and families,

16 with the purpose of assuring maximum coordination

17 and responsiveness of the plan in providing benefits

18 under the plan to those individuals and families.

19 (c) MEMBERSHIP.—The membership of a Public-Pri20 vate Partnership Committee shall—

21 (1) consist of—

22 (A) low-income individuals, who shall—

(i) comprise at least 1 23 ⁄3 of the mem24 bership; and
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•S 1795 IS

1 (ii) include minority individuals who

2 are participants or who qualify to partici3 pate in eligible Federal programs;

4 (B) representatives of low-income individ5 uals and families;

6 (C) persons with leadership experience in

7 the private and voluntary sectors;

8 (D) local elected officials; and

9 (E) the general public; and

10 (2) include individuals and representatives of

11 community and business organizations who will help

12 to enhance the leadership role of the entity in devel13 oping an assistance plan.

14 SEC. 506. DEFINITIONS.

15 As used in this title:

16 (1) ASSISTANCE PLAN.—The term ‘‘assistance

17 plan’’ means a plan for improving the provision of

18 assistance under 1 or more eligible Federal pro19 grams.

20 (2) BOARD.—The term ‘‘Board’’ means the

21 Interagency Waiver Request Board established by

22 section 501.

23 (3) CHAIRPERSON.—The term ‘‘Chairperson’’

24 means the Chairperson of the Board.
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•S 1795 IS

1 (4) COVERED PROGRAM.—The term ‘‘covered

2 program’’ means, with respect to an assistance plan,

3 the eligible Federal programs included in the plan.

4 (5) ELIGIBLE FEDERAL PROGRAM.—The term

5 ‘‘eligible Federal program’’ means any Federal pro6 gram which, directly or indirectly, provides cash as7 sistance to individuals, or under which assistance is

8 available for—

9 (A) education;

10 (B) employment training;

11 (C) health;

12 (D) housing;

13 (E) nutrition; or

14 (F) other social services.

15 (6) QUALIFIED ORGANIZATION.—The term

16 ‘‘qualified organization’’ means any private, not-for17 profit organization that is exempt from taxation

18 under section 501(c)(3) of the Internal Revenue

19 Code of 1986 (26 U.S.C. 501(c)(3)).

20 (7) STATE.—

21 (A) IN GENERAL.—The term ‘‘State’’

22 means any of the 50 States, the District of Co23 lumbia, Puerto Rico, American Samoa, Guam,

24 and the Virgin Islands.
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•S 1795 IS

1 (B) INDIAN TRIBES.—In the case of an eli2 gible Federal program under which assistance

3 is provided with respect to an Indian tribe, the

4 Indian tribal organization is deemed to be a

5 State.

6 SEC. 507. REPORTS.

7 (a) IN GENERAL.—The Comptroller General of the

8 United States shall submit to the Congress 2 reports

9 that—

10 (1) describe the extent to which assistance

11 plans have been implemented in accordance with this

12 title;

13 (2) evaluate the effectiveness of covered Federal

14 assistance programs included in such plans; and

15 (3) include recommendations with respect to

16 whether to continue activities under this title.

17 (b) TIMING.—The Comptroller General shall submit

18 a report under subsection (a) not later than 3 years after

19 the date of the enactment of this Act, and another such

20 report not later than 6 years after such date of enactment.

21 SEC. 508. SUNSET.

22 Any authority provided under this title shall expire

23 7 years after the date of the enactment of this Act.
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•S 1795 IS

1 TITLE VI—WELFARE

2 RESTRICTIONS FOR ALIENS

3 SEC. 601. ELIGIBILITY OF CERTAIN ALIENS FOR CERTAIN

4 FEDERAL BENEFITS.

5 (a) PROVISIONS RELATING TO UNLAWFUL

6 ALIENS.—

7 (1) DIRECT FEDERAL FINANCIAL BENEFITS.—

8 (A) IN GENERAL.—On and after the date

9 of the enactment of this Act, notwithstanding

10 any other provision of law, no benefits shall be

11 available under the programs described in sub12 paragraph (B) to an unlawful alien (as defined

13 in subsection (c)(2)) except pursuant to a provi14 sion of the Immigration and Nationality Act.

15 (B) PROGRAMS DESCRIBED.—The pro16 grams described in this subparagraph are the

17 following:

18 (i) The aid to families with dependent

19 children program under title IV of the So20 cial Security Act.

21 (ii) The medicaid program under title

22 XIX of the Social Security Act (except for

23 care and services for the treatment of an

24 emergency medical condition under section

25 1903(v) of the Social Security Act).
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•S 1795 IS

1 (iii) The food stamp program under

2 the Food Stamp Act of 1977.

3 (iv) The supplemental security income

4 program under title XVI of the Social Se5 curity Act.

6 (v) Any Federal unemployment com7 pensation program.

8 (2) NOTIFICATION OF ALIENS.—The Federal

9 agency administering a program referred to in para10 graph (1)(B) shall, directly or through the States,

11 notify any unlawful alien (as defined in subsection

12 (c)(2)) who is receiving benefits under the program

13 on the date of the enactment of this Act and whose

14 eligibility for the program is or will be terminated by

15 reason of this subsection.

16 (b) PROVISIONS RELATING TO LAWFUL ALIENS.—

17 (1) REPORTING BY FEDERAL AGENCIES.—On

18 and after the date of the enactment of this Act, not19 withstanding any other provision of law, any lawful

20 alien (as defined in subsection (c)(1)) who receives

21 benefits under a program described in subsection

22 (a)(1)(B) for more than 12 months shall be reported

23 to the Immigration and Naturalization Service and

24 shall be treated as a public charge for purposes of
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•S 1795 IS

1 section 241(a)(5) of the Immigration and National2 ity Act.

3 (2) ATTRIBUTION OF SPONSOR’S INCOME AND

4 RESOURCES TO FAMILY PREFERENCE ALIENS.—On

5 and after the date of the enactment of this Act, not6 withstanding any other provision of law, for pur7 poses of determining eligibility of, and the amount

8 of benefits for, a lawful alien (as defined in sub9 section (c)(1)) under a program described in sub10 section (a)(1)(B)—

11 (A) the income and resources of any per12 son who, as a sponsor of such alien’s entry into

13 the United States, executed an affidavit of sup14 port or similar agreement with respect to such

15 alien, and

16 (B) the income and resources of such

17 sponsor’s spouse,

18 shall be deemed to be the unearned income and re19 sources of such alien until such time as the alien

20 achieves United States citizenship through natu21 ralization pursuant to chapter 2 of title 3 of the Im22 migration and Nationality Act.

23 (c) DEFINITIONS.—For the purposes of this sec24 tion—

25 (1) LAWFUL ALIEN.—
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•S 1795 IS

1 (A) IN GENERAL.—The term ‘‘lawful

2 alien’’ means an individual who is described in

3 subparagraph (B) at the time the individual ap4 plies for, receives, or attempts to receive any

5 Federal benefit.

6 (B) INDIVIDUALS DESCRIBED.—An indi7 vidual described in this subparagraph is—

8 (i) a national of the United States,

9 (ii) an alien lawfully admitted for per10 manent residence,

11 (iii) an asylee,

12 (iv) a refugee,

13 (v) an alien whose deportation has

14 been withheld under section 243(h) of the

15 Immigration and Nationality Act, or

16 (vi) a parolee who has been paroled

17 for a period of 1 year or more.

18 (2) UNLAWFUL ALIEN.—The term ‘‘unlawful

19 alien’’ means an individual who is not—

20 (A) a United States Citizen; or

21 (B) an individual described in paragraph

22 (1)(B) at the time the individual applies for, re23 ceives, or attempts to receive any Federal bene24 fit.
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1 SEC. 602. STATE AFDC AGENCIES REQUIRED TO PROVIDE

2 INFORMATION ON ILLEGAL ALIENS TO THE

3 IMMIGRATION AND NATURALIZATION SERV4 ICE.

5 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

6 602(a)), as amended by sections 101, 102, 201, 401, 402,

7 403, 404, 405, 406, and 407 is amended—

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

9 (54);

10 (2) by striking the period at the end of para11 graph (55) and inserting ‘‘; and’’; and

12 (3) by inserting after paragraph (55) the fol13 lowing new paragraph:

14 ‘‘(56) require the State agency to provide to the

15 Immigration and Naturalization Service the name,

16 address, and other identifying information that the

17 agency has with respect to any individual unlawfully

18 in the United States any of whose children is a citi19 zen of the United States.’’.

20 (b) EFFECTIVE DATE.—

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the amendment made by subsection (a)

23 shall take effect on the first day of the first fiscal

24 year beginning after the date of the enactment of

25 this Act.
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•S 1795 IS

1 (2) DELAY PERMITTED IF STATE LEGISLATION

2 REQUIRED.—In the case of a State plan approved

3 under section 402(a) of the Social Security Act

4 which the Secretary of Health and Human Services

5 determines requires State legislation (other than leg6 islation appropriating funds) in order for the plan to

7 meet the additional requirement imposed by the

8 amendment made by subsection (a) of this section,

9 the State plan shall not be regarded as failing to

10 comply with the requirements of such section 402(a)

11 solely on the basis of the failure of the plan to meet

12 such additional requirement before the end of the 2-

13 year period that begins with the date of the enact14 ment of this Act.

15 TITLE VII—MISCELLANEOUS

16 SEC. 701. RESTRICTION ON PAYMENT OF BENEFITS TO IN17 DIVIDUALS CONFINED BY COURT ORDER TO

18 PUBLIC INSTITUTIONS PURSUANT TO VER19 DICTS OF NOT GUILTY BY REASON OF INSAN20 ITY OR OTHER MENTAL DISORDER.

21 (a) IN GENERAL.—Section 202(x)(1) (42 U.S.C.

22 402(x)(1)) is amended—

23 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’, and

24 (2) by adding at the end the following new sub25 paragraph:
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•S 1795 IS

1 ‘‘(B) Notwithstanding any other provision of this

2 title, no monthly benefits shall be paid under this section

3 or under section 223 to any individual for any month dur4 ing which such individual is confined in any public institu5 tion by a court order pursuant to a verdict that the indi6 vidual is guilty, but insane, or not guilty of an offense

7 by reason of insanity (or by reason of a similar finding,

8 such as a mental disease, a mental defect, or mental in9 competence).’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) The heading for section 202(x) (42 U.S.C.

12 402(x)) is amended by inserting ‘‘and Certain Other

13 Inmates of Public Institutions’’ after ‘‘Prisoners’’.

14 (2) Section 202(x)(3) (42 U.S.C. 402(x)(3)) is

15 amended by striking ‘‘any individual’’ and all that

16 follows and inserting ‘‘any individual confined as de17 scribed in paragraph (1) if the jail, prison, penal in18 stitution, correctional facility, or other public institu19 tion to which such individual is so confined is under

20 the jurisdiction of such agency and the Secretary re21 quires such information to carry out the provisions

22 of this section.’’.

23 (c) EFFECTIVE DATE.—

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section
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•S 1795 IS

1 shall apply with respect to benefits for months be2 ginning on or after the first day of the first fiscal

3 year beginning after the date of the enactment of

4 this Act.

5 (2) SPECIAL RULE REGARDING PAYMENTS TO

6 INSTITUTIONS.—The amendment made by sub7 section (a) shall not apply to any payment with re8 spect to any individual, if, as of the date of the en9 actment of this Act, such payment is made directly

10 to the public institution to compensate such institu11 tion for the expense of institutionalizing such indi12 vidual.

13 SEC. 702. AFDC RECIPIENTS REQUIRED TO UNDERGO NEC14 ESSARY SUBSTANCE ABUSE TREATMENT AS A

15 CONDITION OF RECEIVING AFDC.

16 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

17 602(a)) is amended by inserting after paragraph (34) the

18 following new paragraph:

19 ‘‘(35) provide that—

20 ‘‘(A) as a condition of eligibility for aid

21 under the State plan, each applicant or recipi22 ent who the State determines is addicted to al23 cohol or drugs must be required to participate,

24 and must maintain satisfactory participation

25 (as determined by the State), in an appropriate
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•S 1795 IS

1 addiction treatment program, and must be re2 quired to submit to tests for the presence of al3 cohol or drugs, without advance notice, during

4 and after such participation;

5 ‘‘(B) each applicant or recipient who fails

6 to comply with any requirement imposed pursu7 ant to subparagraph (A) shall not be eligible for

8 such aid during the 2-year period that begins

9 with such failure to comply, but shall be consid10 ered to be receiving such aid for purposes of eli11 gibility for medical assistance under the State

12 plan approved under title XIX; and

13 ‘‘(C) no applicant or recipient shall be con14 sidered to have failed to comply with any re15 quirement imposed pursuant to subparagraph

16 (A) if an appropriate addiction treatment pro17 gram is unavailable to such applicant or recipi18 ent under the system established by the State

19 for determining priorities with respect to the

20 availability of treatment services.’’.

21 (b) EFFECTIVE DATE.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendment made by subsection (a)

24 shall take effect on the first day of the first fiscal
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•S 1795 IS

1 year beginning after the date of the enactment of

2 this Act.

3 (2) DELAY PERMITTED IF STATE LEGISLATION

4 REQUIRED.—In the case of a State plan approved

5 under section 402(a) of the Social Security Act

6 which the Secretary of Health and Human Services

7 determines requires State legislation (other than leg8 islation appropriating funds) in order for the plan to

9 meet the additional requirement imposed by the

10 amendment made by subsection (a) of this section,

11 the State plan shall not be regarded as failing to

12 comply with the requirements of such section 402(a)

13 solely on the basis of the failure of the plan to meet

14 such additional requirement before the end of the 2-

15 year period that begins with the date of the enact16 ment of this Act.

17 SEC. 703. EVALUATION OF EDUCATION AND TRAINING PRO18 GRAMS.

19 (a) IN GENERAL.—The Secretary of Health and

20 Human Services shall conduct research projects to exam21 ine the impact of education and training programs on the

22 ability of individuals to end participation in the program

23 of aid to families with dependent children under part A

24 of title IV of the Social Security Act, expenditures under

25 such program, wage rates, employment histories, and the
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•S 1795 IS

1 resumption of participation in such program of individuals

2 who had ended such participation. For purposes of con3 ducting research projects under this section, the Secretary

4 shall collect information with respect to any individual

5 during a period of not less than 5 years.

6 (b) SPECIAL RULE.—At least 1 research project con7 ducted under subsection (a) shall involve the random as8 signment of adult recipients of aid to families with depend9 ent children under part A of title IV of the Social Security

10 Act among—

11 (1) a group that is not required to participate

12 in any special activity;

13 (2) a group that is required to participate in

14 education or job training programs; and

15 (3) a group that is required to participate in a

16 job search program, or in a job search and a work

17 program.

18 SEC. 704. FRAUD AND ADMINISTRATIVE EFFICIENCY.

19 (a) DEMONSTRATION PROJECTS.—

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

21 Human Services (hereafter referred to in this section

22 as the ‘‘Secretary’’) may conduct demonstration

23 projects in several States to determine whether pro24 viding benefits based on need through the use of
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•S 1795 IS

1 electronic cards and automatic teller machines would

2 reduce administrative costs and fraud.

3 (2) REPORT TO THE CONGRESS.—Within 5

4 years after the date of the enactment of this Act, the

5 Secretary shall submit to the Congress a report

6 that—

7 (A) summarizes the results of the projects;

8 and

9 (B) makes recommendations with respect

10 to whether and how more States might be re11 quired or encouraged to use electronic funds

12 transfer in providing benefits based on need.

13 (b) GENERAL REQUIREMENTS ON ELECTRONIC BEN14 EFIT TRANSFER PROJECTS.—Federal financial participa15 tion shall not be available for any electronic benefit trans16 fer system developed under a project conducted by a State

17 under title IV of the Social Security Act (including the

18 demonstration projects conducted under subsection (a))

19 unless—

20 (1) the system is budget neutral to the Federal

21 Government;

22 (2) any cost savings associated with the system

23 are shared proportionately by the State and the Fed24 eral Government;
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•S 1795 IS

1 (3) reasonable time frames for development and

2 implementation of the system are provided and such

3 time frames result in minimal disruption to bene4 ficiaries;

5 (4) the number of transactions allowed to bene6 ficiaries and service fees charged to beneficiaries for

7 transactions under the system ensure reasonable ac8 cess to benefits;

9 (5) the State has implemented anti-fraud proce10 dures under the system;

11 (6) the State has in place procedures which en12 sure the privacy of beneficiaries receiving benefits

13 under the system;

14 (7) payments for any hardware necessary for

15 the system are made by the State;

16 (8) if the State adapts the system for use in

17 other Federal or State programs, the State and the

18 Secretary agree on an equitable cost accounting sys19 tem; and

20 (9) the State conducts such evaluations and

21 provides such reports to the Secretary as the Sec22 retary determines appropriate.

23 (c) COMMISSION.—

24 (1) IN GENERAL.—Not later than 6 months

25 after the date of the enactment of this Act, the Sec-
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•S 1795 IS

1 retary of Health and Human Services (in this sub2 section referred to as the ‘‘Secretary’’) shall estab3 lish a commission (in this subsection referred to as

4 the ‘‘Commission’’) composed of heads of executive

5 departments, expert private individuals, and State

6 administrators, to determine the cost and feasibility

7 of creating an interstate system to compare the so8 cial security account numbers of all recipients of aid

9 to families with dependent children under State

10 plans approved under part A of title IV of the Social

11 Security Act, so as to identify any such recipients

12 who are receiving such aid from 2 or more States.

13 (2) BASIC PAY.—

14 (A) RATES OF PAY.—Except as provided

15 in paragraph (2), members of the Commission

16 shall each be paid at a rate not to exceed $200

17 for each day (including travel time) during

18 which they are engaged in the actual perform19 ance of duties of the Commission.

20 (B) PROHIBITION OF COMPENSATION OF

21 FEDERAL EMPLOYEES.—Each member of the

22 Commission who is a full-time officer or em23 ployee of the United States may not receive ad24 ditional pay, allowances, or benefits by reason

25 of their service on the Commission.
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1 (3) TRAVEL EXPENSES.—Each member of the

2 Commission shall receive travel expenses, including

3 per diem in lieu of subsistence, in accordance with

4 sections 5702 and 5703 of title 5, United States

5 Code.

6 (4) STAFF OF FEDERAL AGENCIES.—Upon re7 quest of the Secretary, the head of any Federal de8 partment or agency may detail, on a reimbursable

9 basis, any of the personnel of that department or

10 agency to the Commission to assist it in carrying out

11 its duties under this subsection.

12 (5) OBTAINING OFFICIAL DATA.—The Commis13 sion may secure directly from any department or

14 agency of the United States information necessary

15 to enable it to carry out this subsection. Upon re16 quest of the Secretary, the head of that department

17 or agency shall furnish that information to the Com18 mission.

19 (6) MAILS.—The Commission may use the

20 United States mails in the same manner and under

21 the same conditions as other departments and agen22 cies of the United States.

23 (7) ADMINISTRATIVE SUPPORT SERVICES.—

24 Upon request of the Secretary, the Administrator of

25 General Services shall provide to the Commission, on
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1 a reimbursable basis, the administrative support

2 services necessary for the Commission to carry out

3 its responsibilities under this subsection.

4 (8) REPORT.—Within 2 years after the date of

5 the enactment of this Act, the Secretary shall submit

6 to the Congress a report that contains the findings

7 of the Commission.

8 (9) TERMINATION OF COMMISSION.—The Com9 mission shall terminate upon submission of the re10 port required by paragraph (8).

11 SEC. 705. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.

12 (a) IN GENERAL.—Section 1614(a) (42 U.S.C.

13 1382c(a)) is amended by adding at the end the following

14 new paragraph:

15 ‘‘(5)(A) The Secretary shall identify all recipients of

16 benefits under this title by reason of disability whose dis17 ability is a result of addiction to illegal drugs.

18 ‘‘(B) The Secretary shall periodically, on a random

19 basis, test each recipient identified under subparagraph

20 (A) to determine whether the recipient is using illegal

21 drugs.

22 ‘‘(C) Notwithstanding any other provision of this

23 title, any individual who is determined under subpara24 graph (B) to be using illegal drugs, or who refuses to sub-
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1 mit to testing as provided for under subparagraph (B),

2 shall not be eligible for benefits under this title.’’.

3 (b) REPRESENTATIVE PAYEE REFORMS.—

4 (1) AUTHORITY OF GOVERNMENT AGENCIES TO

5 BECOME PAID REPRESENTATIVE PAYEES.—Section

6 1631(a)(2)(D)(ii) (42 U.S.C. 1383(a)(2)(D)(ii)) is

7 amended by adding at the end the following: ‘‘The

8 term ‘qualified organization’ also includes any gov9 ernment agency that meets the requirements of

10 items (aa) and (bb) of subclause (II).’’.

11 (2) MAXIMUM FEE PAYABLE TO REPRESENTA12 TIVE PAYEES.—Section 1631(a)(2)(D)(i) (42 U.S.C.

13 1383(a)(2)(D)(i)) is amended by striking ‘‘the lesser

14 of—’’ and all that follows and inserting ‘‘10 percent

15 of the monthly benefit involved.’’.

16 SEC. 706. STATE FRAUD CONTROL PROGRAMS.

17 (a) FRAUD CONTROL PROGRAMS MADE MANDA18 TORY.—Section 402(a)(40) (42 U.S.C. 602(a)(40)) is

19 amended by striking ‘‘, if the State’’ through ‘‘the State

20 will’’ and inserting ‘‘that the State will establish and oper21 ate a fraud control program under section 416, will’’.

22 (b) SANCTION FOR FRAUD MADE PERMANENT.—

23 Section 416(b) (42 U.S.C. 616(b)) is amended by striking

24 ‘‘(A) for period of’’ through the period at the end and in-
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1 serting ‘‘permanently upon the occasion of any such of2 fense.’’.

3 (c) CONFORMING AMENDMENTS.—Section 416 (42

4 U.S.C. 616) is amended—

5 (1) by amending subsection (a) to read as fol6 lows:

7 ‘‘(a) Each State, in the administration of its State

8 plan approved under section 402, shall establish and oper9 ate a fraud control program in accordance with this sec10 tion.’’; and

11 (2) in subsection (f), by striking ‘‘which has

12 elected to establish and operate a fraud control pro13 gram under this section’’.

14 (d) EFFECTIVE DATE.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section

17 shall take effect on the first day of the first fiscal

18 year beginning after the date of the enactment of

19 this Act.

20 (2) DELAY PERMITTED IF STATE LEGISLATION

21 REQUIRED.—In the case of a State plan approved

22 under section 402(a) of the Social Security Act

23 which the Secretary of Health and Human Services

24 determines requires State legislation (other than leg25 islation appropriating funds) in order for the plan to
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1 meet the additional requirements imposed by the

2 amendments made by this section, the State plan

3 shall not be regarded as failing to comply with the

4 requirements of such section 402(a) solely on the

5 basis of the failure of the plan to meet such addi6 tional requirements before the end of the 2-year pe7 riod that begins with the date of the enactment of

8 this Act.

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