II

103D CONGRESS

2D SESSION S. 2009

To amend title IV of the Social Security Act by reforming the aid to families

with dependent children program, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 11, 1994

Mr. HARKIN (for himself, Mr. BOND, and Mr. STEVENS) 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 by reforming

the aid to families with dependent children program,

and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Welfare to Self-Sufficiency Act of 1994’’.

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

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Amendments to Social Security Act.

TITLE I—FAMILY INVESTMENT PROGRAM AND OTHER WELFARE

REFORM
2

•S 2009 IS

Sec. 101. Family investment program.

Sec. 102. Work incentives.

Sec. 103. Optional State disregard of dependent child’s income.

Sec. 104. Family stability.

Sec. 105. Work requirements for unemployed parents.

Sec. 106. Jobs program.

Sec. 107. Increased payments to States.

Sec. 108. Assessment, monitoring, and evaluation.

Sec. 109. Timely preventive health care for children.

Sec. 110. Wage supplementation demonstration projects.

Sec. 111. Increase in authorizations of Public Health Service title X family

planning grants.

Sec. 112. Delay in certain effective dates.

TITLE II—IMPROVEMENTS IN THE COLLECTION OF CHILD

SUPPORT

Sec. 201. Transmission and assignment of certain child support orders to the

IRS.

Sec. 202. Collection of child support by Internal Revenue Service.

Sec. 203. Publication of delinquent child support obligors.

Sec. 204. Effective date.

1 SEC. 2. FINDINGS.

2 The Congress finds the following:

3 (1) The welfare system is failing recipients and

4 taxpayers and must be reformed.

5 (2) The aid to families with dependent children

6 program under title IV of the Social Security Act

7 (hereafter in this section referred to as ‘‘AFDC’’)

8 remains largely unchanged from its predecessor pro9 gram which was created in 1935, while society has

10 changed dramatically during the same period.

11 (3) The number of female-headed households

12 with children under the age of 18 increased by 146

13 percent from 1970 to 1990, and there are now more

14 children living in single-parent homes than at any

15 time in the Nation’s history.
3

•S 2009 IS

1 (4) Expenditures for AFDC increased 13 per2 cent (in inflation adjusted dollars) over a 12-year pe3 riod, from $19,600,000,000 in 1980 to

4 $22,200,000,000 in 1992.

5 (5) The number of families on AFDC has in6 creased 33 percent over a 12-year period, from

7 3,600,000 families in 1980 to 4,800,000 families in

8 1992.

9 (6) There were 2,000,000 more children receiv10 ing welfare in 1992 than there were in 1980 and 1

11 in 5 American children currently live in poverty.

12 (7) Many States are enacting sweeping changes

13 to welfare programs in an effort to curb expendi14 tures and reduce the number of dependent families.

15 (8) Iowa has replaced AFDC with a new ‘‘Fam16 ily Investment Program’’ which requires all families

17 on welfare to enter into a social contract with the

18 State which establishes a specific time-line when wel19 fare benefits will end and outlines the steps that in20 dividual families will take to move off welfare and

21 into work and self-sufficiency.

22 (9) Welfare reform legislation must recognize

23 the individuality of each family and enact programs

24 that are consistent with this principle.
4

•S 2009 IS

1 (10) Welfare reform legislation must also recog2 nize the importance of a holistic approach which

3 treats the family as a single unit and not as the sum

4 of its parts.

5 (11) Health care reform is essential to welfare

6 reform because many families remain on public as7 sistance simply because they cannot afford to lose

8 benefits under the medicaid program under title

9 XIX of the Social Security Act for themselves, and,

10 most importantly, for their children.

11 (12) Parents, including noncustodial parents,

12 have a responsibility to provide financial support for

13 their children and failure to provide child support in14 creases the need for AFDC payments.

15 (13) In 1991, the United States Commission on

16 Interstate Child Support reported that the collection

17 of child support fell far short of court awards, with

18 11,000,000 children being awarded $15,000,000,000

19 in child support payments while approximately

20 $5,000,000,000 in child support payments remained

21 unpaid.

22 SEC. 3. AMENDMENTS TO SOCIAL SECURITY ACT.

23 Except as otherwise specifically provided, whenever in

24 this Act an amendment is expressed in terms of an amend25 ment to or repeal of a section or other provision, the ref-
5

•S 2009 IS

1 erence shall be considered to be made to that section or

2 other provision of the Social Security Act.

3 TITLE I—FAMILY INVESTMENT

4 PROGRAM AND OTHER WEL5 FARE REFORM

6 SEC. 101. FAMILY INVESTMENT PROGRAM.

7 (a) STATE PLAN TO INCLUDE FAMILY INVESTMENT

8 PROGRAM.—Section 402(a) (42 U.S.C. 602(a)) is amend9 ed by inserting after paragraph (28) the following new

10 paragraph:

11 ‘‘(29) except in the case of a State receiving a

12 waiver from the Secretary, provide that the State

13 has in effect a family investment program described

14 in subsection (j);’’.

15 (b) FAMILY INVESTMENT PROGRAM.—Section 402

16 (42 U.S.C. 602) is amended by adding at the end the fol17 lowing new subsection:

18 ‘‘(j) For purposes of subsection (a)(29)—

19 ‘‘(1) The term ‘family investment program’

20 means a program under which the State agency—

21 ‘‘(A) negotiates a family investment agree22 ment (as defined in section 406(i)) with each

23 family, and

24 ‘‘(B) offers a family the opportunity to

25 enter into a limited benefit agreement (as de-
6

•S 2009 IS

1 fined in section 406(j)) in lieu of such family

2 investment agreement.

3 ‘‘(2)(A) Any agreement described in section

4 406(i) shall be entered into by each caretaker rel5 ative, any other relative with whom a dependent rel6 ative is living, and any other individual living in the

7 same home as such relative and the dependent child

8 whose needs are taken into account in making the

9 determination under section 402(a)(7).

10 ‘‘(B) An individual shall not be required to

11 enter into the agreement if such individual is—

12 ‘‘(i) a parent of a child who is less than 6

13 months of age, but if both parents are living in

14 the child’s home, only one parent shall be ex15 empt from entering into the agreement;

16 ‘‘(ii) employed for 30 or more hours per

17 week;

18 ‘‘(iii) ill, incapacitated, or of advanced age;

19 or

20 ‘‘(iv) needed in the home because of the ill21 ness or incapacity of another member of the

22 household.

23 ‘‘(3) The State agency shall ensure that—

24 ‘‘(A) any correspondence with an individ25 ual described in paragraph (2) relating to the
7

•S 2009 IS

1 family investment program (including the initial

2 notice of the requirement to enter into a family

3 investment agreement) shall be in a format

4 which is designed to be easily understandable to

5 such individual;

6 ‘‘(B) the correspondence described in sub7 paragraph (A) shall be designed to be under8 standable to individuals who are not English

9 language speakers; and

10 ‘‘(C) employees of the State agency are

11 readily available to assist individuals in com12 pleting any documents required for participa13 tion in the family investment program.

14 ‘‘(4) The State agency shall establish a dispute

15 resolution procedure for disputes related to partici16 pation in the family investment agreement that pro17 vides the opportunity for a hearing consistent with

18 the hearing requirement under section 482(h).

19 ‘‘(5)(A) A State shall be treated as meeting the

20 requirements of paragraph (1) for fiscal years 1995

21 through 2002 if it enters into family investment

22 agreements with at least the implementation per23 centage of the applicable population.

24 ‘‘(B) For purposes of subparagraph (A), the

25 implementation percentage is equal to—
8

•S 2009 IS

1 ‘‘(i) 10 percent in fiscal year 1995;

2 ‘‘(ii) 15 percent in fiscal year 1996;

3 ‘‘(iii) 20 percent in fiscal year 1997;

4 ‘‘(iv) 30 percent in fiscal year 1998;

5 ‘‘(v) 40 percent in fiscal year 1999;

6 ‘‘(vi) 60 percent in fiscal year 2000;

7 ‘‘(vii) 70 percent in fiscal year 2001; and

8 ‘‘(viii) 90 percent in fiscal year 2002.

9 ‘‘(C) For purposes of subparagraph (A), the ap10 plicable population is the average total number of in11 dividuals in the State during the fiscal year who—

12 ‘‘(i) receive aid to families with dependent

13 children; and

14 ‘‘(ii) are not exempt from entering a family

15 investment agreement under clauses (i) through

16 (iv) of paragraph (2)(B).’’.

17 (c) FAMILY INVESTMENT AGREEMENT AND LIMITED

18 BENEFIT PLAN.—Section 406 (42 U.S.C. 606) is amend19 ed by adding at the end the following new subsections:

20 ‘‘(i) The term ‘family investment agreement’ means

21 a social contract between the State and each family receiv22 ing aid to families with dependent children which—

23 ‘‘(1) outlines the steps a family will take to ob24 tain self-sufficiency;
9

•S 2009 IS

1 ‘‘(2) specifies a negotiated time-limited period

2 of eligibility for receipt of aid to families with de3 pendent children that is consistent with unique fam4 ily circumstances and is based on a reasonable plan

5 to facilitate the transition of the family to self-suffi6 ciency;

7 ‘‘(3)(A) contains a requirement that each rel8 ative and any other individual entering into the

9 agreement (except those determined to need child

10 care assistance but for whom the State does not

11 guarantee such assistance in accordance with section

12 402(g)), participate in one or more of the following

13 activities providing such relative or individual with a

14 significant level of commitment up to the level re15 quired for full-time employment:

16 ‘‘(i) Full-time or part-time employment.

17 ‘‘(ii) Job-search activities.

18 ‘‘(iii) Participation in a job opportunities

19 and basic skills training program which meets

20 the requirements of part F.

21 ‘‘(iv) Participation in education or training

22 programs.

23 ‘‘(v) Unpaid community service (subject to

24 the provisions of subparagraph (B)), only as

25 part of a plan to improve the employability of
10

•S 2009 IS

1 the individual and leading to the eventual self2 sufficiency of the family.

3 ‘‘(vi) Placement in a community work ex4 perience program in accordance with section

5 482(f).

6 ‘‘(vii) High school completion activities (or

7 the equivalent) for a parent under the age of

8 20; and

9 ‘‘(B)(i) provides that an individual who partici10 pates in unpaid community service under subpara11 graph (A)(v) shall not be required to perform such

12 unpaid community service for a greater number of

13 hours per month than the maximum number of

14 hours an individual may be required to work in any

15 month under the community work experience pro16 gram as determined under section 482(f)(1)(B)(i);

17 ‘‘(ii) requires any sponsor of unpaid community

18 service to comply with the rules described in sub19 sections (b), (c), (d), and (g) of section 484 of the

20 Social Security Act (42 U.S.C. 684); and

21 ‘‘(iii) provides that an individual’s participation

22 in unpaid community service may not exceed 3

23 months;

24 ‘‘(4) provides each relative and any other indi25 vidual entering into the agreement with the supple-
11

•S 2009 IS

1 mental services required to obtain self-sufficiency

2 and comply with the terms of the family investment

3 agreement, including health care, transportation,

4 child care, education, and training;

5 ‘‘(5) if the State agency and a relative or other

6 individual entering into the agreement agree, pro7 vides that the relative or other individual participate

8 in—

9 ‘‘(A) a substance abuse treatment pro10 gram, or other social service program that the

11 State agency determines necessary to increase

12 the employability of such relative or individual;

13 ‘‘(B) programs and support services to

14 strengthen parenting skills and assure family

15 stability; and

16 ‘‘(C) programs that lead to improved

17 school readiness for preschool children and on18 grade performance for school age children;

19 ‘‘(6) provides that the State agency shall pro20 vide the family with reasonable support and case

21 management in the creation, monitoring, and adap22 tation of a family investment agreement to respond

23 to changes in family circumstances and factors out24 side family control;
12

•S 2009 IS

1 ‘‘(7) provides that the State agency shall re2 negotiate the family investment agreement—

3 ‘‘(A) during the period of the agreement,

4 to reflect substantial changes in family cir5 cumstances or needs; and

6 ‘‘(B) at the conclusion of the original

7 agreement, if each relative and any other indi8 vidual entering into the agreement has made a

9 good faith effort to comply with the agreement

10 but were unable to reach self-sufficiency be11 cause of factors outside of the control of the

12 relative or other individual;

13 ‘‘(8) provides that the family will automatically

14 enter into a limited benefit plan (as described in

15 subsection (j)) if a relative or other individual who

16 has entered into the family investment agreement

17 fails to comply with the agreement; and

18 ‘‘(9) provides that the agreement shall be in19 valid if the State agency fails to comply with the

20 agreement.

21 ‘‘(j) The term ‘limited benefit plan’ means a plan

22 which, notwithstanding any other provision of this title,

23 provides that—

24 ‘‘(1)(A) during the first 3-month period in

25 which a family receives aid under the plan, the fam-
13

•S 2009 IS

1 ily shall receive benefits as normally determined

2 under this title;

3 ‘‘(B) during the second 3-month period in

4 which the family receives aid under the plan, the

5 needs of the caretaker relative, any other relative

6 with whom a dependent child is living, and any other

7 individual living in the same home as such relative

8 and the dependent child whose needs are taken into

9 account in making the determination under section

10 402(a)(7), shall not be taken into account in making

11 the determination with respect to the family for pur12 poses of paragraph (7) and in the case of a family

13 which is eligible by reason of section 407, both par14 ents shall not be taken into account into making

15 such a determination; and

16 ‘‘(C) after the expiration of a 6-month period

17 beginning on the date on which the family enter into

18 the limited benefit plan, the family shall be ineligible

19 for benefits under this title and may not reapply for

20 such benefits within a 6 month period beginning on

21 the date of such expiration;

22 ‘‘(2) during the duration of a limited benefit

23 plan, a third-party counselor shall inquire as to the

24 well being of the dependent children; and
14

•S 2009 IS

1 ‘‘(3) within a 45-day period beginning on the

2 date that the family automatically enters a limited

3 benefit plan by reason of the family investment

4 agreement provision described in subsection (i)(8) or

5 elects to enter a limited benefit plan under section

6 402(j)(1), the family shall have the option to void

7 the limited benefit plan by regaining compliance with

8 the negotiated family investment agreement or if no

9 agreement has been negotiated, negotiate an agree10 ment.’’.

11 (d) COORDINATION BETWEEN DEPARTMENTS.—

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

13 Human Services, the Secretary of Labor, and the

14 Secretary of Education shall ensure appropriate co15 ordination in the planning, development, and oper16 ation of the programs described in paragraph (2) in

17 order to—

18 (A) improve the quality and effectiveness

19 of services provided by the Department of

20 Health and Human Services, the Department of

21 Labor, and the Department of Education;

22 (B) reduce the overlap of such programs;

23 and

24 (C) reduce the administrative costs of such

25 programs.
15

•S 2009 IS

1 (2) PROGRAMS DESCRIBED.—The programs de2 scribed in this paragraph are as follows:

3 (A) The family investment program under

4 section 402(j) of the Social Security Act (42

5 U.S.C. 602(j)).

6 (B) The JOBS program under part F of

7 title IV of the Social Security Act (42 U.S.C.

8 681 et seq.).

9 (C) Job training programs.

10 (D) Child care programs.

11 (E) Educational programs.

12 (F) Any other program administered by

13 the Department of Health and Human Services,

14 the Department of Labor, or the Department of

15 Education which has the effect of promoting

16 self-sufficiency among recipients of aid to fami17 lies with dependent children under title IV of

18 the Social Security Act (42 U.S.C. 601 et seq.).

19 (e) EFFECTIVE DATE.—Except as provided in section

20 112, the amendments made by this section shall take ef21 fect on the first day of the first fiscal year beginning after

22 the date of the enactment of this Act.

23 SEC. 102. WORK INCENTIVES.

24 (a) INCREASE IN WORK EXPENSE DISREGARD.—Sec25 tion 402(a)(8)(A)(ii) (42 U.S.C. 602(a)(8)(A)(ii)) is
16

•S 2009 IS

1 amended by inserting ‘‘, or at the option of the State (on

2 a statewide basis or in a defined area of the State), the

3 greater of the first $90, or up to the first 20 percent of

4 the total of such earned income for such month’’ after

5 ‘‘such month’’.

6 (b) INCREASE IN EARNED INCOME INCENTIVE.—

7 (1) IN GENERAL.—Section 402(a)(8)(A)(iv) (42

8 U.S.C. 602(a)(8)(A)(iv)) is amended—

9 (A) by striking ‘‘(II)’’; and

10 (B) by inserting ‘‘, or (II) at the option of

11 the State (on a statewide basis or in a defined

12 area of the State), up to one-half of the total

13 of such earned income not disregarded under

14 any other clause of this subparagraph if such

15 amount is greater than the amount disregarded

16 under subclause (I)’’ before the semicolon at

17 the end.

18 (2) NO TIME LIMITATION.—Section

19 402(a)(8)(B) (42 U.S.C. 602(a)(8)(B)) is amended

20 to read as follows:

21 ‘‘(B) provide that (with respect to any month)

22 the State agency shall not disregard under clause

23 (ii), (iii), or (iv) of subparagraph (A) any earned in24 come of any one of the individuals specified in sub25 paragraph (A)(ii) if such individual—
17

•S 2009 IS

1 ‘‘(i) terminated the individual’s employ2 ment or reduced the individual’s earned income

3 without good cause within such period (of not

4 less than 30 days) preceding such month as

5 may be prescribed by the Secretary;

6 ‘‘(ii) refused without good cause, within

7 such period preceding such month as may be

8 prescribed by the Secretary, to accept employ9 ment in which the individual is able to engage

10 which is offered through the public employment

11 offices of the State, or is otherwise offered by

12 an employer if the offer of such employer is de13 termined by the State or local agency admin14 istering the State plan, after notification by the

15 employer, to be a bona fide offer of employ16 ment; or

17 ‘‘(iii) failed without good cause to make a

18 timely report (as prescribed by the State plan

19 pursuant to paragraph (14)) to the State agen20 cy of earned income received in such month;

21 and’’.

22 (c) WORK TRANSITION PERIOD.—

23 (1) IN GENERAL.—Section 402(a)(8)(A) (42

24 U.S.C. 602(a)(8)(A)) is amended—
18

•S 2009 IS

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

2 (vii); and

3 (B) by inserting after clause (viii) the fol4 lowing new clause:

5 ‘‘(ix) at the option of the State (on a state6 wide basis or in a defined area of the State),

7 may disregard up to the first 4 months of

8 earned income due to new employment of any

9 child or relative receiving aid to families with

10 dependent children, or of any other individual

11 (living in the same home as such relative and

12 child) whose needs are taken into account in

13 making such a determination not disregarded

14 under any other clause of this subparagraph,

15 if—

16 ‘‘(I) such individual earned less than

17 $1,200 in the 12-month period preceding

18 the new employment; and

19 ‘‘(II) such individual timely reports

20 the earnings to the State agency; and’’.

21 (2) AFDC QUALITY CONTROL.—Section

22 408(c)(3) (42 U.S.C. 608(c)(3)) is amended—

23 (A) by striking ‘‘or’’ at the end of subpara24 graph (D);
19

•S 2009 IS

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

2 subparagraph (E) and inserting ‘‘; or’’; and

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

4 subparagraph:

5 ‘‘(F) the State’s reliance on the best infor6 mation available in determining eligibility for

7 the earned income disregard described in sec8 tion 402(a)(8)(A)(ix).’’.

9 (d) RETROSPECTIVE BUDGETING PROCEDURES.—

10 Section 402(a)(13) (42 U.S.C. 602(a)(13)) is amended—

11 (1) by striking ‘‘subparagraph (B)’’ in subpara12 graph (A) and inserting ‘‘subparagraphs (B) and

13 (C)’’;

14 (2) by striking ‘‘and’’ at the end of subpara15 graph (A);

16 (3) by adding ‘‘and’’ at the end of subpara17 graph (B); and

18 (4) by adding at the end the following new sub19 paragraph:

20 ‘‘(C) in the case of the termination of a

21 source of income of an individual whose income

22 is taken into account in making a determination

23 under paragraph (7), the State agency shall

24 consider the loss of income in making a deter25 mination regarding the amount of aid, begin-
20

•S 2009 IS

1 ning in the first month such loss of income oc2 curs, but only if the termination is timely re3 ported and, in the case of earned income, the

4 individual shows good cause for the termination

5 of employment;’’.

6 (e) DISREGARD OF INTEREST INCOME.—Section

7 402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)), as amended by

8 subsection (c), is amended—

9 (1) by striking ‘‘and’’ at the end of clause (viii);

10 and

11 (2) by inserting after clause (ix) the following

12 new clause:

13 ‘‘(x) at the option of the State (on a state14 wide basis or in a defined area of the State),

15 may disregard all interest income of any child

16 or relative applying for or receiving aid to fami17 lies with dependent children, or of any other in18 dividual (living in the same home as such rel19 ative and child) whose needs are taken into ac20 count in making such a determination; and’’.

21 (f) DISREGARD OF INCOME AND RESOURCES DES22 IGNATED FOR EDUCATION, TRAINING, AND EMPLOY23 ABILITY.—
21

•S 2009 IS

1 (1) DISREGARD AS RESOURCE.—Section

2 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)) is amend3 ed—

4 (A) by striking ‘‘or’’ before ‘‘(iv)’’; and

5 (B) by inserting ‘‘, or (v) at the option of

6 the State (on a statewide basis or in a defined

7 area of the State), in the case of a family re8 ceiving aid under the State plan (and a family

9 not receiving such aid but which received such

10 aid in at least 1 of the preceding 4 months or

11 became ineligible for such aid during the pre12 ceding 12 months because of excessive earn13 ings), any amount not to exceed $10,000 in a

14 qualified asset account (as such term is defined

15 in section 406(k)) of such family, reduced by

16 the amount (if any) excluded from the resources

17 of the family pursuant to paragraph (46)(A)(i)’’

18 before ‘‘; and’’.

19 (2) DISREGARD AS INCOME.—

20 (A) NONRECURRING LUMP SUM EXEMPT

21 FROM LUMP-SUM RULE.—Section 402(a)(17)

22 (42 U.S.C. 602(a)(17)) is amended by adding

23 at the end the following: ‘‘; at the option of the

24 State (on a statewide basis or in a defined area

25 of the State), that this paragraph shall not
22

•S 2009 IS

1 apply to earned or unearned income received in

2 a month on a nonrecurring basis to the extent

3 that such income is placed in a qualified asset

4 account (as defined in section 406(k)) the total

5 amounts in which, after such placement, does

6 not exceed $10,000;’’.

7 (B) TREATMENT AS INCOME.—Section

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

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

10 subparagraph (B);

11 (ii) by striking the semicolon at the

12 end of subparagraph (C) and inserting ‘‘;

13 and’’; and

14 (iii) by adding at the end the follow15 ing new subparagraph:

16 ‘‘(D) shall treat as income any distribu17 tions from a qualified asset account (as defined

18 in section 406(k)(1)) which do not meet the

19 definition of a qualified distribution under sec20 tion 406(k)(2);’’.

21 (3) QUALIFIED ASSET ACCOUNTS.—Section 406

22 (42 U.S.C. 606), as amended by section 101(b), is

23 amended by adding at the end the following new

24 subsection:
23

•S 2009 IS

1 ‘‘(k)(1) The term ‘qualified asset account’ means a

2 mechanism approved by the State (such as individual re3 tirement accounts, escrow accounts, or savings bonds) that

4 allows savings of a family receiving aid to families with

5 dependent children to be used for qualified distributions.

6 ‘‘(2) The term ‘qualified distributions’ means dis7 tributions for expenses directly related to 1 or more of

8 the following purposes:

9 ‘‘(A) The attendance of a member of the family

10 at any education or training program.

11 ‘‘(B) The improvement of the employability (in12 cluding self-employment) of a member of the family

13 (such as through the purchase of an automobile).

14 ‘‘(C) The purchase of a home for the family.

15 ‘‘(D) A change of the family residence.’’.

16 (g) DISREGARD OF INCOME AND RESOURCES RELAT17 ED TO SELF-EMPLOYMENT.—

18 (1) STATE PLAN REQUIREMENTS.—Section

19 402(a) (42 U.S.C. 602(a)) is amended—

20 (A) by striking ‘‘and’’ at the end of para21 graph (44);

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

23 paragraph (45) and inserting ‘‘; and’’; and

24 (C) by inserting after paragraph (45) the

25 following new paragraph:
24

•S 2009 IS

1 ‘‘(46) at the option of the State (on a statewide

2 basis or in a defined area of the State), provide that

3 the State agency for a period not to exceed 2

4 years—

5 ‘‘(A)(i) shall not include as a resource of

6 the family of which a child referred to in para7 graph (7)(A) is a member, for purposes of

8 paragraph (7)(B), the lesser of—

9 ‘‘(I) the first $10,000 of the net

10 worth (assets reduced by liabilities with re11 spect thereto) of all microenterprises (as

12 defined in section 406(l)(1)) owned, in

13 whole or in part, by the child or by a rel14 ative or other individual referred to in

15 paragraph (7)(A), or

16 ‘‘(II) such net worth attributable to

17 such ownership; and

18 ‘‘(ii) shall take into consideration as

19 earned income of the family of which the child

20 is a member, only the net profits (as defined in

21 section 406(l)(2)) of such microenterprises; and

22 ‘‘(B) shall ensure that caseworkers are

23 able to properly advise recipients of aid under

24 the State plan of the option of microenterprise

25 as a legitimate route toward self-sufficiency,
25

•S 2009 IS

1 and that caseworkers encourage recipients of

2 such aid who are interested in starting a

3 microenterprise to participate in a program de4 signed to assist them in such effort.’’.

5 (2) DEFINITIONS.—Section 406 (42 U.S.C.

6 606), as amended by section 101(b) and subsection

7 (f)(3) of this section, is amended by adding at the

8 end the following new subsection:

9 ‘‘(l)(1) The term ‘microenterprise’ means a commer10 cial enterprise which has 5 or fewer employees, 1 or more

11 of whom owns the enterprise.

12 ‘‘(2) The term ‘net profits’ means, with respect to

13 a microenterprise, the gross receipts of the business,

14 minus—

15 ‘‘(A) payments of principal or interest on a loan

16 to the microenterprise;

17 ‘‘(B) transportation expenses;

18 ‘‘(C) inventory costs;

19 ‘‘(D) expenditures to purchase capital equip20 ment;

21 ‘‘(E) cash retained by the microenterprise for

22 future use by the business;

23 ‘‘(F) taxes paid by reason of the business;

24 ‘‘(G) if the business is covered under a policy

25 of insurance against loss—
26

•S 2009 IS

1 ‘‘(i) the premiums paid for such insurance;

2 and

3 ‘‘(ii) the losses incurred by the business

4 that are not reimbursed by the insurer solely by

5 reason of the existence of a deductible with re6 spect to the insurance policy;

7 ‘‘(H) the reasonable costs of obtaining 1 motor

8 vehicle necessary for the conduct of the business;

9 and

10 ‘‘(I) the other expenses of the business.’’.

11 (3) INCLUSION OF MICROENTERPRISE TRAINING

12 AND ACTIVITIES IN THE JOBS PROGRAM.—

13 (A) IN GENERAL.—Section 482(d)(1) (42

14 U.S.C. 682(d)(1)) is amended by adding at the

15 end the following new subparagraph:

16 ‘‘(C) The services and activities referred to in sub17 paragraph (A)—

18 ‘‘(i) in the case of a State in which at least 3

19 percent of the adult recipients of aid under the State

20 plan approved under part A (as of the close of the

21 immediately preceding fiscal year) elect to partici22 pate in microenterprise activities, shall include pro23 grams described in paragraph (4); or

24 ‘‘(ii) in the case of a State in which less than

25 3 percent of the adult recipients of such aid (as of
27

•S 2009 IS

1 such time) elect to participate in microenterprise ac2 tivities, may include programs described in para3 graph (4).’’.

4 (B) MICROENTERPRISE PROGRAMS.—Sec5 tion 482(d) (42 U.S.C. 682(d)) is amended by

6 adding at the end the following:

7 ‘‘(4) The programs described in this paragraph are

8 programs of public and private organizations, agencies,

9 and other entities (including nonprofit and for-profit enti10 ties) to enable such entities to facilitate economic develop11 ment by—

12 ‘‘(A) providing technical assistance, advice, and

13 business support services (including assistance, ad14 vice, and support relating to business planning, fi15 nancing, marketing, and other microenterprise devel16 opment activities) to owners of microenterprises and

17 persons developing microenterprises; and

18 ‘‘(B) providing general support (such as peer

19 support and self-esteem programs) to owners of

20 microenterprises and persons developing

21 microenterprises.’’.

22 (h) EXTENSION OF TRANSITIONAL CHILD CARE.—

23 Section 402(g)(1)(A)(iii) (42 U.S.C. 602(g)(1)(A)(iii)) is

24 amended by striking ‘‘12 months’’ and inserting ‘‘24

25 months’’.
28

•S 2009 IS

1 (i) EFFECTIVE DATE.—Except as provided in section

2 112, the amendments made by this section shall take ef3 fect on the first day of the first fiscal year beginning after

4 the date of the enactment of this Act.

5 SEC. 103. OPTIONAL STATE DISREGARD OF DEPENDENT

6 CHILD’S INCOME.

7 (a) IN GENERAL.—Section 402(a)(8) (42 U.S.C.

8 602(a)(8)), as amended by subsections (c) and (e) of sec9 tion 102, is amended—

10 (1) by striking ‘‘and’’ at the end of clause (ix);

11 (2) by striking the semicolon at the end of

12 clause (x) and inserting ‘‘; and’’; and

13 (3) by inserting after clause (x) the following

14 new clause:

15 ‘‘(xi) at the option of the State (on a state16 wide basis or in a defined area of the State),

17 may disregard all or any part of the earned in18 come of a dependent child; and’’.

19 (b) EFFECTIVE DATE.—The amendments made by

20 this section shall take effect on the first day of the first

21 fiscal year beginning after the date of the enactment of

22 this Act.
29

•S 2009 IS

1 SEC. 104. FAMILY STABILITY.

2 (a) EQUIVALENT TREATMENT OF STEPPARENT IN3 COME AND PARENT INCOME.—Section 402(a)(31) (42

4 U.S.C. 602(a)(31)) is amended—

5 (1) in subparagraph (A), by inserting ‘‘, or at

6 the option of the State (on a statewide basis or in

7 a defined area of the State), the greater of $90, or

8 the first 20 percent of such total’’ before the comma

9 at the end;

10 (2) by striking ‘‘and’’ at the end of subpara11 graph (C); and

12 (3) by striking the semicolon at the end of sub13 paragraph (D) and inserting ‘‘, (E) an amount equal

14 to the expenditure for care in such month for a de15 pendent child of the stepparent who is living in the

16 same home as the stepparent, not receiving aid to

17 families for dependent children, and requiring care

18 for such month to the extent that such amount (for

19 each such dependent child) does not exceed $175 (or

20 such lesser amount as the Secretary may prescribe

21 in the case of an individual not engaged in full-time

22 employment, or not employed throughout the

23 month), or, in the case such child is under age 2,

24 $200, and (F) at the option of the State (on a state25 wide basis or in a defined area of the State), up to

26 one-half of the total of such earned income not dis-
30

•S 2009 IS

1 regarded under any other subparagraph of this para2 graph;’’.

3 (b) UNEMPLOYED PARENT HOUSEHOLDS.—

4 (1) ELIMINATION OF PRINCIPAL EARNER RE5 QUIREMENT.—

6 (A) IN GENERAL.—Section 407 (42 U.S.C.

7 607) is amended—

8 (i) by striking ‘‘of the parent who is

9 the principal earner’’ in subsection (a) and

10 inserting ‘‘of either parent in a home in

11 which both parents of such child are liv12 ing’’;

13 (ii) by striking ‘‘the parent who is the

14 principal earner’’ in subsection

15 (b)(2)(B)(ii)(II) and inserting ‘‘either par16 ent’’;

17 (iii) by striking ‘‘; and’’ at the end of

18 paragraph (3) of subsection (d) and insert19 ing a period; and

20 (iv) by striking paragraph (4) of sub21 section (d).

22 (B) CONFORMING AMENDMENT.—Section

23 402(a)(19)(D) (42 U.S.C. 602(a)(19)(D)) is

24 amended by striking ‘‘the parent who is the

25 principal earner’’ and inserting ‘‘either parent’’.
31

•S 2009 IS

1 (2) MODIFICATION OF OTHER REQUIRE2 MENTS.—Subparagraph (A) of section 407(b)(1) (42

3 U.S.C. 607(b)(1)) is amended to read as follows:

4 ‘‘(A) subject to paragraph (2), shall require the

5 payment of aid to families with dependent children

6 with respect to a dependent child as defined in sub7 section (a) when—

8 ‘‘(i) for at least 30 days—

9 ‘‘(I) prior to the receipt of aid, either

10 parent has been employed for less than a

11 monthly cap specified by the State plan

12 (not to exceed 100 hours), and at the time

13 of the application for aid, both parents are

14 employed for less than such monthly cap;

15 or

16 ‘‘(II) after the application for aid, one

17 or both parents are employed for less than

18 the monthly cap established under

19 subclause (I),

20 ‘‘(ii) either such parent has not without

21 good cause, within such period (of not less than

22 30 days) as may be prescribed by the Secretary,

23 refused a bona fide offer of employment or

24 training for employment, and
32

•S 2009 IS

1 ‘‘(iii) notwithstanding the number of hours

2 either such parent is working after the initial

3 determination of eligibility, such family remains

4 otherwise eligible for payment under this sec5 tion; and’’.

6 (c) INCREASE IN ASSET LIMITS.—Section

7 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)) is amended in the

8 matter preceding clause (i) by inserting ‘‘(or, at the option

9 of the State (on a statewide basis or in a defined area

10 of the State), exceeds an amount prescribed by the State

11 not to exceed $2,000 for applicant families and $5,000

12 for recipient families)’’ after ‘‘may determine’’.

13 (d) INCREASE IN MOTOR VEHICLE LIMIT.—Section

14 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)), as amended by

15 section 102(f), is amended—

16 (1) in clause (i), by striking ‘‘and so much of

17 the family member’s ownership interest in one auto18 mobile as does not exceed such amount as the Sec19 retary may prescribe’’;

20 (2) by striking ‘‘or’’ at the end of clause (iv);

21 and

22 (3) by striking ‘‘; and’’ at the end of clause (v)

23 and inserting ‘‘, or (vi) the greater of so much of the

24 family member’s ownership interest in 1 automobile

25 as does not exceed (I) such amount as the Secretary
33

•S 2009 IS

1 may prescribe, or (II) at the option of the State (on

2 a statewide basis or in a defined area of the State),

3 an amount not to exceed $3,000, adjusted on Octo4 ber 1 of each year (beginning in 1994) to equal the

5 amount determined under this subclause for the pre6 vious fiscal year plus the product of such amount

7 and the increase in the Consumer Price Index for

8 used vehicles during such fiscal year; and’’.

9 (e) EFFECTIVE DATE.—Except as provided in section

10 112, the amendments made by this section shall take ef11 fect on the first day of the first fiscal year beginning after

12 the date of the enactment of this Act.

13 SEC. 105. WORK REQUIREMENTS FOR UNEMPLOYED PAR14 ENTS.

15 (a) ELIMINATION OF REQUIRED PARTICIPATION OF

16 ONE PARENT IN WORK COMPONENT OF JOBS PRO17 GRAM.—Section 403(l) (42 U.S.C. 603(l)) is amended by

18 striking paragraph (4).

19 (b) REQUIRED PARTICIPATION OF BOTH PAR20 ENTS.—Section 407(b)(2)(A) (42 U.S.C. 607(b)(2)(A)) is

21 amended to read as follows:

22 ‘‘(2)(A)(i) In carrying out the program under this

23 section, a State may condition continued eligibility for aid

24 to families with dependent children by reason of the unem25 ployment of either parent, on the participation of both
34

•S 2009 IS

1 parents in a program established by the State agency

2 which shall include job search activities, counseling, and

3 training services when the State agency determines that

4 such participation is required, except as provided in clause

5 (ii).

6 ‘‘(ii) A parent shall not be subject to the requirement

7 under subparagraph (A), if such parent is employed at

8 least 30 hours per week, is needed in the home to care

9 for a child under 6 months of age, or if the State agency

10 determines the existence of other good cause.’’.

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect on the first day of the first

13 fiscal year beginning after the date of the enactment of

14 this Act.

15 SEC. 106. JOBS PROGRAM.

16 (a) REQUIREMENT OF JOBS PARTICIPATION OF

17 PREGNANT INDIVIDUALS.—Section 402(a)(19)(C) (42

18 U.S.C. 602(a)(19)(C)) is amended—

19 (1) by inserting ‘‘or’’ at the end of clause (v);

20 (2) by striking clause (vi); and

21 (3) by redesignating clause (vii) as clause (vi).

22 (b) NO LIMITATION ON LENGTH OF JOB SEARCH

23 PROGRAM.—Section 482(g)(2) (42 U.S.C. 682(g)(2)) is

24 amended by striking ‘‘402(a)(19)(D) applies’’ through the
35

•S 2009 IS

1 end of subparagraph (B) and inserting ‘‘402(a)(19)(D)

2 applies.’’.

3 (c) PROTECTION OF EXISTING WORKERS.—

4 (1) NONDISPLACEMENT.—Section 484(c) (42

5 U.S.C. 684(c)) is amended by—

6 (A) by striking ‘‘or’’ at the end of para7 graph (2);

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

9 paragraph (3) and inserting ‘‘; or’’; and

10 (C) by inserting after paragraph (3) the

11 following new paragraph:

12 ‘‘(4) the employment or assignment of a partici13 pant or the filling of a position if such participant

14 will perform any services or duties, or engage in ac15 tivities, that—

16 ‘‘(A) will supplant the hiring of employed

17 workers;

18 ‘‘(B) are services, duties, or activities with

19 respect to which an individual has recall rights

20 pursuant to a collective bargaining agreement

21 or applicable personnel procedures; or

22 ‘‘(C) had been performed by or were as23 signed to any employee who—

24 ‘‘(i) is subject to a reduction in force;

25 or
36

•S 2009 IS

1 ‘‘(ii) has recall rights pursuant to a

2 collective bargaining agreement or applica3 ble personnel procedures.’’.

4 (2) CONCURRENCE OF LOCAL LABOR ORGANIZA5 TION.—Section 484 (42 U.S.C. 684) is amended by

6 adding at the end the following new subsection:

7 ‘‘(g) No work assignment under the program shall

8 be made until the State agency has obtained from an em9 ployer with whom a participant is placed, the written con10 currence of any local labor organization representing em11 ployees of the employer who are engaged in the same or

12 substantially similar work as that proposed to be carried

13 out.’’.

14 (d) GRIEVANCE PROCEDURE.—Section 484(d)(1) (42

15 U.S.C. 684(d)(1) is amended to read as follows:

16 ‘‘(d)(1)(A) The State shall establish and maintain a

17 grievance procedure for resolving complaints by regular

18 employees or such employees’ representatives that the

19 work assignment of an individual under the program vio20 lates any of the prohibitions described in subsection (c).

21 ‘‘(B) Except for a grievance that alleges fraud or

22 criminal activity, a grievance shall be made not later than

23 1 year after the date of the alleged occurrence of the event

24 that is the subject of the grievance.
37

•S 2009 IS

1 ‘‘(C)(i) A hearing on any grievance conducted under

2 this paragraph shall be conducted not later than 30 days

3 after the filing of such grievance.

4 ‘‘(ii) A decision on any such grievance shall be made

5 not later than 60 days after the filing of such grievance.

6 ‘‘(D)(i)(I) In the event of a decision on a grievance

7 that is adverse to the party who filed such grievance, or

8 60 days after the filing of such grievance if no decision

9 has been reached, such party shall be permitted to submit

10 such grievance to binding arbitration before a qualified ar11 bitrator who is jointly selected and independent of the in12 terested parties.

13 ‘‘(II) If the parties cannot agree on an arbitrator, the

14 Governor shall appoint an arbitrator from a list of quali15 fied arbitrators within 15 days after receiving a request

16 for such appointment from one of the parties to the griev17 ance.

18 ‘‘(ii) An arbitration proceeding shall be held not later

19 than 45 days after the request for such arbitration pro20 ceeding, or, if the arbitrator is appointed by the Governor

21 in accordance with clause (i)(II), not later than 30 days

22 after the appointment of such arbitrator.

23 ‘‘(iii) A decision concerning a grievance shall be made

24 not later than 30 days after the date such arbitration pro25 ceeding begins.
38

•S 2009 IS

1 ‘‘(iv)(I) Except as provided in subclause (II), the cost

2 of an arbitration proceeding shall be divided evenly be3 tween the parties to the arbitration.

4 ‘‘(II) If a regular employee or such employee’s rep5 resentative prevails under a binding arbitration proceed6 ing, the State agency shall pay the total cost of such pro7 ceeding and the attorneys’ fees of such employee or rep8 resentative.

9 ‘‘(E) Remedies for a grievance filed under this para10 graph include—

11 ‘‘(i) prohibition of the work assignment in the

12 program under this part; and

13 ‘‘(ii)(I) reinstatement of the displaced employee

14 to the position held by such employee prior to dis15 placement;

16 ‘‘(II) payment of lost wages and benefits of the

17 displaced employee;

18 ‘‘(III) reestablishment of other relevant terms,

19 conditions, and privileges of employment of the dis20 placed employee; and

21 ‘‘(IV) such equitable relief as is necessary to

22 make the displaced employee whole.

23 ‘‘(F) Suits to enforce arbitration awards under this

24 paragraph may be brought in any district court of the

25 United States having jurisdiction of the parties, without
39

•S 2009 IS

1 regard to the amount in controversy and without regard

2 to the citizenship of the parties.’’.

3 (e) EFFECTIVE DATE.—Except as provided in section

4 112, the amendments made by this section shall take ef5 fect on the first day of the first fiscal year beginning after

6 the date of the enactment of this Act.

7 SEC. 107. INCREASED PAYMENTS TO STATES.

8 (a) CHANGES TO JOBS PAYMENT FORMULA.—

9 (1) IN GENERAL.—Section 403(l)(1)(A) (42

10 U.S.C. 603(l)(1)(A)) is amended—

11 (A) by striking ‘‘and’’ at the end of clause

12 (i);

13 (B) in clause (ii), in the matter preceding

14 subclause (I), by striking ‘‘described in clause

15 (i)’’ and inserting ‘‘described in clause (i) but

16 do not exceed the amount of such expenditures

17 in fiscal year 1994’’;

18 (C) by striking the period at the end of

19 clause (ii) and inserting ‘‘; and’’; and

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

21 clause:

22 ‘‘(iii) with respect to so much of the expendi23 tures in a fiscal year that exceed the sum of the

24 amounts described in clauses (i) and (ii)—
40

•S 2009 IS

1 ‘‘(I) 50 percent in the case of expenditures

2 described in clause (i)(II), and

3 ‘‘(II) in the case of expenditures made by

4 a State in operating such a program for a fiscal

5 year (other than for costs described in

6 subclause (I)), the greater of—

7 ‘‘(aa) 70 percent, or

8 ‘‘(bb) the Federal medical assistance

9 percentage (as defined in section 1118 in

10 the case of any State to which section

11 1108 applies, or as defined in section

12 1905(b) in the case of any other State).’’.

13 (2) EFFECTIVE DATE.—The amendments made

14 by paragraph (1) shall apply with respect to pay15 ments made on and after October 1, 1994.

16 (b) INCREASE IN JOBS PROGRAM AUTHORIZA17 TION.—Section 403(k)(3) (42 U.S.C. 603(k)(3)) is

18 amended—

19 (1) by striking subparagraphs (E) and (F); and

20 (2) by inserting after subparagraph (D) the fol21 lowing new subparagraphs:

22 ‘‘(E) $1,500,000,000 in the case of fiscal year

23 1995,

24 ‘‘(F) $2,000,000,000 in the case of fiscal year

25 1996,
41

•S 2009 IS

1 ‘‘(G) $2,500,000,000 in the case of fiscal year

2 1997,

3 ‘‘(H) $3,000,000,000 in the case of fiscal year

4 1998, and

5 ‘‘(I) $3,500,000,000 in the case of fiscal year

6 1999.’’.

7 (c) INCREASE IN CHILD CARE PAYMENT FOR8 MULA.—

9 (1) IN GENERAL.—

10 (A) INCREASED PERCENTAGE.—Section

11 402(g)(3)(A)(i) of the Social Security Act (42

12 U.S.C. 602(g)(3)(A)(i)) is amended to read as

13 follows:

14 ‘‘(3)(A)(i) In the case of expenditures in any fiscal

15 year for child care pursuant to paragraph (1)(A) by any

16 State to which section 1108 does not apply, the applicable

17 rate for purposes of section 403(a) shall be—

18 ‘‘(I) with respect to so much of such expendi19 tures as does not exceed the State’s expenditures in

20 the fiscal year 1994, the Federal medical assistance

21 percentage (as defined in section 1905(b)), and

22 ‘‘(II) with respect to so much of such expendi23 tures as exceed the amount described in subclause

24 (I), the sum of—
42

•S 2009 IS

1 ‘‘(aa) the Federal medical assistance per2 centage (as defined in section 1905(b)), and

3 ‘‘(bb) one-half of the difference between

4 100 percent and such Federal medical assist5 ance percentage.’’.

6 (B) EFFECTIVE DATE.—The amendments

7 made by subparagraph (A) shall apply with re8 spect to payments made on and after October

9 1, 1994.

10 (2) CONFORMING AMENDMENTS.—

11 (A) IN GENERAL.—Section 402(g)(3)(A)(i)

12 of the Social Security Act (42 U.S.C.

13 602(g)(3)(A)(i)), as amended by paragraph

14 (1)(A), is amended—

15 (i) by striking ‘‘(i)’’ after ‘‘(A)’’;

16 (ii) by striking ‘‘subclause (I)’’ in

17 subclause (II) and inserting ‘‘clause (i)’’;

18 (iii) by redesignating subclauses (I)

19 and (II) as clauses (i) and (ii), respec20 tively; and

21 (iv) by redesignating items (aa) and

22 (bb) as subclauses (I) and (II), respec23 tively.
43

•S 2009 IS

1 (B) EFFECTIVE DATE.—The amendments

2 made by subparagraph (A) shall take effect on

3 September 30, 1998.

4 SEC. 108. ASSESSMENT, MONITORING, AND EVALUATION.

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

6 602(a)), as amended by section 102(g), is amended—

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

8 (45);

9 (2) by striking the period at the end of para10 graph (46) and inserting ‘‘; and’’; and

11 (3) by inserting after paragraph (46) the fol12 lowing new paragraph:

13 ‘‘(47) at the option of the State (on a statewide

14 basis or in a defined area of the State), provide that

15 the State agency (in order to increase the percentage

16 of families moving from welfare to self-sufficiency)—

17 ‘‘(A) shall conduct an assessment, in con18 sultation with State and local elected officials,

19 current recipients of aid to families with de20 pendent children, recipients of community-based

21 service systems, and individuals with expertise

22 in business, education, child welfare, juvenile

23 justice, mental health, substance addiction,

24 housing, and labor—
44

•S 2009 IS

1 ‘‘(i) of the barriers which families that

2 receive aid to families with dependent chil3 dren face in achieving self-sufficiency, in4 cluding noneconomic barriers such as fam5 ily functions, parenting capacity, child de6 velopment, housing, substance abuse, and

7 mental illness;

8 ‘‘(ii) of the capacity within the State

9 to provide employment opportunities to

10 families that receive aid to families with

11 dependent children and to address other

12 barriers such families face to achieving

13 self-sufficiency; and

14 ‘‘(iii) of the number and skills of

15 workers needed to develop the family in16 vestment program under paragraph (29),

17 monitor progress, and adapt goals to meet

18 new challenges;

19 ‘‘(B) shall establish a system to monitor

20 and evaluate both the economic gains related to

21 employment of individuals in households receiv22 ing aid to families with dependent children and

23 the social, health, educational, and developmen24 tal impact on children in such households that
45

•S 2009 IS

1 result from efforts to achieve self-sufficiency;

2 and

3 ‘‘(C) shall establish a system to determine

4 the number of individuals who achieve self-suffi5 ciency through the family investment program

6 under paragraph (29) and the rate of recidi7 vism.’’.

8 (b) EFFECTIVE DATE.—Except as provided in sec9 tion 112, the amendments made by this section shall take

10 effect on the first day of the first fiscal year beginning

11 after the date of the enactment of this Act.

12 SEC. 109. TIMELY PREVENTIVE HEALTH CARE FOR CHIL13 DREN.

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

15 602(a)), as amended by section 102(g) and 108, is amend16 ed—

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

18 (46);

19 (2) by striking the period at the end of para20 graph (47) and inserting ‘‘; and’’; and

21 (3) by inserting after paragraph (47) the fol22 lowing new paragraph:

23 ‘‘(48) provide that (unless the State agency

24 provides the Secretary with adequate certification

25 that the care described in subparagraph (A)(i)(I) is
46

•S 2009 IS

1 not accessible in the area in which a family re2 sides)—

3 ‘‘(A)(i) the State shall decrease the

4 amount of aid paid to a family under this part

5 (determined without regard to subparagraph

6 (B)) by a percentage amount determined appro7 priate by the Secretary beginning in the month

8 following any month in which the State agency

9 has failed to receive—

10 ‘‘(I) written verification that each

11 child in the family under 6 years of age

12 has been immunized and has received well13 baby and well-child care in accordance with

14 guidelines issued by the Surgeon General

15 of the Public Health Service; or

16 ‘‘(II) notice of a medical justification

17 that would exempt the child or children

18 from receiving such care; and

19 ‘‘(ii) the State shall end the reduction of

20 payment under clause (i) beginning in the

21 month following the month in which the State

22 agency receives the required verification; and

23 ‘‘(B) aid under the plan to a family shall

24 be increased by a bonus payment equal to the

25 percentage amount determined by the Secretary
47

•S 2009 IS

1 under subparagraph (A) in the month following

2 a month in which the State agency receives ver3 ification that each such child has received the

4 immunizations and care described in subpara5 graph (A)(i).’’.

6 (b) EFFECTIVE DATE.—Except as provided in sec7 tion 112, the amendments made by this section shall take

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

9 after the date of the enactment of this Act.

10 SEC. 110. WAGE SUPPLEMENTATION DEMONSTRATION

11 PROJECTS.

12 (a) IN GENERAL.—The Secretary of Health and

13 Human Services (hereafter in this section referred to as

14 the ‘‘Secretary’’) shall establish demonstration projects for

15 the purpose of developing a wage supplementation pro16 gram under which—

17 (1) certain individuals eligible for aid to fami18 lies with dependent children under title IV of the So19 cial Security Act (42 U.S.C. 601 et seq.) would be

20 given an incentive to work; and

21 (2) the State would use funds available to pay

22 benefits described in paragraph (1) and food stamp

23 benefits under the Food Stamp Act of 1977 (7

24 U.S.C. 2011 et seq.) to make monthly incentive pay25 ments (in lieu of such benefits) to such individuals.
48

•S 2009 IS

1 Each such program shall meet the requirements of sub2 section (b).

3 (b) WAGE SUPPLEMENTATION DEMONSTRATION

4 PROJECT.—

5 (1) IN GENERAL.—A demonstration project

6 conducted under this section shall provide the follow7 ing:

8 (A) INCENTIVES TO WORK.—The project

9 shall—

10 (i) require as a condition of participa11 tion in the project that an eligible individ12 ual be employed by a participating em13 ployer;

14 (ii) provide that the State shall make

15 monthly incentive payments to any eligible

16 individual for each month of employment

17 in an amount equal to the benefits de18 scribed in subsection (a)(2) which would

19 otherwise be payable to the individual, de20 termined as of the first day of the first full

21 month of employment of such individual by

22 a participating employer; and

23 (iii) provide that such payments be in

24 lieu of such benefits.
49

•S 2009 IS

1 (B) PERIOD OF PARTICIPATION.—A

2 project shall not permit an eligible individual to

3 participate in the demonstration project for a

4 period in excess of the lesser of—

5 (i) an aggregate period of 48 months,

6 or

7 (ii) a period consisting of the number

8 of months in which such individual was

9 employed by a participating employer.

10 (C) INCOME IN EXCESS OF LIMIT.—The

11 project shall set a limit (to be determined by

12 the State) on the monthly income (including

13 payments under subparagraph (A)(ii)) of the

14 family of an eligible individual and shall permit

15 the State to—

16 (i) reduce payments under subpara17 graph (A)(ii) in excess of the limit; or

18 (ii) determine an individual ineligible

19 for participation in the project if such in20 come is in excess of the limit.

21 (2) SPECIAL RULES FOR TREATMENT UNDER

22 FEDERAL PROGRAMS.—Notwithstanding any other

23 provision of law, the following special rules shall

24 apply to an eligible individual participating in the

25 project:
50

•S 2009 IS

1 (A) WAGES AS EARNED INCOME.—Wages

2 paid to an eligible individual by a participating

3 employer (but not payments under the project)

4 shall be considered earned income.

5 (B) TREATED AS ELIGIBLES.—Except for

6 purposes of determining eligibility for benefits

7 for which payments under the project are in

8 lieu of, an eligible individual participating in the

9 project shall be treated as eligible—

10 (i) for aid to families with dependent

11 children under part A of title IV of the So12 cial Security Act (42 U.S.C. 601 et seq.);

13 and

14 (ii) for food stamp benefits under the

15 Food Stamp Act of 1977 (7 U.S.C. 2011

16 et seq.) if such individual was otherwise el17 igible for food stamp benefits, determined

18 as of the first day of the first full month

19 of the employment of such individual by a

20 employer.

21 (C) ADDITIONAL CHILD SUPPORT

22 AMOUNTS.—An eligible individual who partici23 pates in the demonstration project shall remain

24 eligible for the project notwithstanding the re25 ceipt of any amounts paid to the family of the
51

•S 2009 IS

1 individual under section 457(b)(4)(B) of the

2 Social Security Act (42 U.S.C. 657(b)(4)(B)).

3 (D) HOUSING.—Any wages paid to an eli4 gible individual by a participating employer dur5 ing the period of time that an eligible individual

6 participates in the demonstration project shall

7 not be taken into account in determining—

8 (i) the monthly rent under section

9 3(a) of the United States Housing Act of

10 1937 for any family residing in a dwelling

11 unit assisted under such Act; and

12 (ii) the monthly assistance payment

13 for any family under section 8(o)(2) of

14 such Act.

15 (3) ELIGIBLE INDIVIDUAL AND PARTICIPATING

16 EMPLOYER.—

17 (A) ELIGIBLE INDIVIDUAL.—For purposes

18 of this section, an individual is an eligible indi19 vidual if the individual is in a category of indi20 viduals which the State determines should be el21 igible to participate in the demonstration

22 project, and who would, at the time of place23 ment in the job involved, be eligible for aid to

24 families with dependent children under an ap-
52

•S 2009 IS

1 proved State plan under title IV of the Social

2 Security Act (42 U.S.C. 601 et seq.).

3 (B) PARTICIPATING EMPLOYER.—

4 (i) IN GENERAL.—For purposes of

5 this section, an employer is a participating

6 employer, with respect to an eligible indi7 vidual, if the employer provides the State

8 with a written agreement certifying—

9 (I) that the employment of the

10 eligible individual complies with the

11 rules described in subsections (b), (c),

12 (d), and (g) of section 484 of the So13 cial Security Act (42 U.S.C. 684);

14 (II) that the gross wages (as de15 fined in section 209 of the Social Se16 curity Act (42 U.S.C. 609) deter17 mined without regard to any dollar

18 limitation) paid to such eligible indi19 vidual by the employer during any

20 month will not be less than the prod21 uct of—

22 (aa) the greater of the Fed23 eral minimum wage or the appli24 cable State minimum wage, and
53

•S 2009 IS

1 (bb) the number of hours

2 worked by such individual;

3 (III) that the employer will not

4 receive any wage subsidy under any

5 other provision of Federal law, includ6 ing part F of title IV of the Social Se7 curity Act with respect to the employ8 ment of such eligible individual; and

9 (IV) that the eligible individual

10 receives the same employer-provided

11 benefits (other than health care bene12 fits) that other employees of the em13 ployer receive.

14 (ii) CONTINUING CERTIFICATION RE15 QUIREMENT.—A participating employer

16 shall be required to submit a monthly re17 port to the State (in a form and in such

18 manner as the State requires) certifying

19 that the employer has complied with the

20 requirements of subclauses (I), (II), (III),

21 and (IV) of clause (i) with respect to an el22 igible individual during the period such in23 dividual participates under the project.

24 (c) DURATION.—A demonstration project under this

25 Act shall be conducted for not more than 5 years (includ-
54

•S 2009 IS

1 ing any time necessary for final evaluation and reporting).

2 The Secretary may terminate a project if the Secretary

3 determines that the State conducting the project is not

4 in substantial compliance with the terms of the application

5 approved by the Secretary under this section.

6 (d) APPLICATIONS.—

7 (1) IN GENERAL.—Each State desiring to con8 duct a demonstration project under this section shall

9 prepare and submit to the Secretary an application,

10 at such time, in such manner, and containing such

11 information as the Secretary may require, including

12 an explanation of a plan for evaluating the project.

13 (2) APPROVAL OF APPLICATIONS.—A State that

14 submits an application under paragraph (1) may

15 begin a demonstration project under this section—

16 (A) upon approval of such application by

17 the Secretary; or

18 (B) at the end of the 60-day period begin19 ning on the date such application is submitted,

20 unless the Secretary denies the application dur21 ing such period.

22 (3) NOTICE AND COMMENT.—A State shall

23 issue a public notice on the date the State submits

24 an application under paragraph (1) which contains

25 a general description of the proposed demonstration
55

•S 2009 IS

1 project. Any interested party may comment on the

2 proposed demonstration project to the State or the

3 Secretary during the 30-day period beginning on the

4 date the public notice is issued.

5 (e) EVALUATIONS.—Each State conducting a dem6 onstration project under this section shall submit to the

7 Secretary an annual and final evaluation that determines

8 the success of the State’s demonstration project under this

9 section in moving people from welfare dependency to self10 sufficiency.

11 (f) FUNDING FOR DEMONSTRATION PROJECTS.—For

12 each State that conducts a demonstration project under

13 this section—

14 (1) the portion of the monthly payments that

15 the State makes to a participant in the project

16 under subsection (b)(1)(A)(ii) that is attributable to

17 aid to families with dependent children under part A

18 of title IV of the Social Security Act (42 U.S.C. 601

19 et seq.) shall be considered expenditures under the

20 State plan for such aid;

21 (2) the expenses incurred by the State in the

22 administration of the demonstration project shall be

23 considered expenditures by the State for administra24 tive costs in operating a program under part F of
56

•S 2009 IS

1 title IV of the Social Security Act (42 U.S.C. 601

2 et seq.); and

3 (3) the portion of the monthly payments that

4 the State makes to a participant in the project that

5 is attributable to the cash value of food stamp bene6 fits under the Food Stamp Act of 1977 (7 U.S.C.

7 2011 et seq.) shall be considered to be expenditures

8 for food stamp benefits under such Act.

9 (g) MAINTENANCE OF EFFORT.—Any funds available

10 for the activities covered by a demonstration project con11 ducted under this section shall supplement, and shall not

12 supplant, funds that are expended for similar purposes

13 under any State, regional, or local program.

14 SEC. 111. INCREASE IN AUTHORIZATIONS OF PUBLIC

15 HEALTH SERVICE TITLE X FAMILY PLANNING

16 GRANTS.

17 Section 1001(d) of the Public Health Service Act (42

18 U.S.C. 300a(d)) is amended—

19 (1) by striking ‘‘and’’ after ‘‘1984;’’; and

20 (2) by inserting before the period the following:

21 ‘‘; and $280,918,000 for the fiscal year ending Sep22 tember 30, 1995, and such sums as may be nec23 essary in each succeeding fiscal year’’.
57

•S 2009 IS

1 SEC. 112. DELAY IN CERTAIN EFFECTIVE DATES.

2 In the case of a State that the Secretary of Health

3 and Human Services determines requires State legislation

4 (other than legislation appropriating funds) in order to

5 meet the additional requirements imposed by the amend6 ments made by section 101, 102, 104, 106, and 108, the

7 State shall not be regarded as failing to comply with the

8 requirements of such amendments before the first day of

9 the first calendar quarter beginning after the close of the

10 first regular session of the State legislature that begins

11 after October 1, 1994, if such State legislature did not

12 meet in a regular session after the date of the enactment

13 of this Act and before October 1, 1994. For purposes of

14 this subsection, in the case of a State that has a 2-year

15 legislative session, each year of the session shall be treated

16 as a separate regular session of the State legislature.

17 TITLE II—IMPROVEMENTS IN

18 THE COLLECTION OF CHILD

19 SUPPORT

20 SEC. 201. TRANSMISSION AND ASSIGNMENT OF CERTAIN

21 CHILD SUPPORT ORDERS TO THE IRS.

22 Section 466(a) (42 U.S.C. 666(a)) is amended by in23 serting after paragraph (11) the following new paragraph:

24 ‘‘(12)(A) Procedures which require any State

25 court or administrative agency that issues or modi26 fies (or has issued or modified) a child support order
58

•S 2009 IS

1 (including an order for the payment of past-due sup2 port) to transmit a copy of the order to the Internal

3 Revenue Service upon the completion of a 12-month

4 period during which less than 50 percent of the

5 court-ordered child support amount for such period

6 has been paid.

7 ‘‘(B) Procedures which—

8 ‘‘(i) require any individual with the right

9 to collect child support pursuant to an order is10 sued or modified in the State (whether before

11 or after the effective date of this paragraph) to

12 be presumed to have assigned to the Internal

13 Revenue Service the right to collect such sup14 port (including any past-due support) pursuant

15 to subparagraph (A), unless the individual af16 firmatively elects to retain such right at any

17 time; and

18 ‘‘(ii) allow any individual who has made

19 the election referred to in clause (i) to rescind

20 or revive such election at any time.’’.

21 SEC. 202. COLLECTION OF CHILD SUPPORT BY INTERNAL

22 REVENUE SERVICE.

23 (a) IN GENERAL.—Chapter 77 of the Internal Reve24 nue Code of 1986 (relating to miscellaneous provisions)

25 is amended by adding at the end the following new section:
59

•S 2009 IS

1 ‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.

2 ‘‘(a) IN GENERAL.—The Secretary shall establish a

3 program to collect child support (including past-due sup4 port) pursuant to child support orders which are assigned

5 to the Internal Revenue Service under section 466(a)(12)

6 of the Social Security Act.

7 ‘‘(b) USE OF WAGE WITHHOLDING, ETC.—Such pro8 gram shall provide for the collection of child support re9 quired to be paid for any period through increases in wage

10 withholding under chapter 24 and estimated tax payments

11 under section 6654 during such period. Amounts required

12 to be paid through such withholding and payments shall

13 be treated as tax for purposes for this subtitle.

14 ‘‘(c) ANNUAL RECKONING OF OBLIGATION.—

15 ‘‘(1) IN GENERAL.—The entire amount of child

16 support required to be paid by any individual to the

17 Internal Revenue Service during any taxable year

18 shall be paid—

19 ‘‘(A) not later than the last date (deter20 mined without regard to extensions) prescribed

21 for filing such individual’s return of tax im22 posed by chapter 1 for such taxable year, and

23 ‘‘(B)(i) if such return is filed not later

24 than such date, with such return, or
60

•S 2009 IS

1 ‘‘(ii) in any case not described in subpara2 graph (A), in such manner as the Secretary

3 may by regulations prescribe.

4 ‘‘(2) CREDIT FOR PERIODIC PAYMENTS.—The

5 amount required to be paid under paragraph (1)

6 shall be reduced by the aggregate payments of child

7 support made under subsection (b) by such individ8 ual through increases in wage withholding and esti9 mated tax payments.

10 ‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi11 vidual fails to pay the full amount required to be paid on

12 or before the last date described in subsection (c)(1), the

13 Secretary shall assess and collect the unpaid amount in

14 the same manner, with the same powers, and subject to

15 the same limitations applicable to a tax imposed by sub16 title C the collection of which would be jeopardized by

17 delay, except that—

18 ‘‘(1) for such purposes, paragraphs (4), (6),

19 and (8) of section 6334(a) (relating to property ex20 empt from levy) shall not apply, and

21 ‘‘(2) there shall be exempt from levy so much

22 of the salary, wages, or other income of an individ23 ual as is being withheld therefrom in garnishment

24 pursuant to a judgment entered by a court of com-
61

•S 2009 IS

1 petent jurisdiction for the support of the individual’s

2 minor children.

3 ‘‘(e) COLLECTIONS DISPERSED TO INDIVIDUAL

4 SPECIFIED IN ORDER.—

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), amounts collected under this section pur7 suant to any child support order shall be paid to the

8 individual entitled to such amounts under such order

9 as quickly as possible. Any penalties and interest

10 collected with respect to such amounts also shall be

11 paid to such individual.

12 ‘‘(2) FAMILIES RECEIVING STATE ASSIST13 ANCE.—In the case of an individual with respect to

14 whom—

15 ‘‘(A) an assignment of child support pay16 ments to a State under section 402(a)(26) or

17 471(a)(17) of the Social Security Act is in ef18 fect, or

19 ‘‘(B) an application for State assistance

20 under section 454(6) is in effect,

21 amounts collected under this section shall be paid to

22 such State pursuant to section 457 of such Act.

23 ‘‘(f) COORDINATION WITH UNDERPAYMENT PROVI24 SIONS.—If the Secretary is collecting—
62

•S 2009 IS

1 ‘‘(1) unpaid child support pursuant to an as2 sessment under this section, and

3 ‘‘(2) unpaid tax pursuant to an assessment

4 under section 6203,

5 all amounts collected shall be treated as collected pursuant

6 to the assessment under this section to the extent of the

7 amount of such unpaid child support.

8 ‘‘(g) LIMITATION ON JUDICIAL REVIEW.—No court

9 of the United States shall have jurisdiction to hear any

10 action, whether legal or equitable, brought to restrain or

11 review any assessment or collection authorized by this sec12 tion, nor shall any such assessment or collection be subject

13 to review by the Secretary in an administrative proceeding.

14 This subsection shall not preclude any legal, equitable, or

15 administrative action against the State by an individual

16 in any State court or before any State agency to determine

17 his liability for any amount assessed against him and col18 lected, or to recover any such amount collected from him,

19 under this section.

20 ‘‘(h) REGULATIONS.—The Secretary shall prescribe

21 such regulations as may be appropriate to carry out the

22 purposes of this section.’’.

23 (b) ESTIMATE OF INCREASED INTERNAL REVENUE

24 FUNDING.—Within 1 year of the date of the enactment

25 of this Act, the Secretary of the Treasury shall submit
63

•S 2009 IS

1 to the Congress an estimate of the additional cost per fis2 cal year for administering the program described in sec3 tion 7524 of the Internal Revenue Code of 1986 (as added

4 by this section).

5 (c) CLERICAL AMENDMENT.—The table of sections

6 for chapter 77 of the Internal Revenue Code of 1986 is

7 amended by adding at the end the following new item:

‘‘Sec. 7524. Collection of child support.’’

8 SEC. 203. PUBLICATION OF DELINQUENT CHILD SUPPORT

9 OBLIGORS.

10 Section 454 (42 U.S.C. 654) is amended by striking

11 ‘‘and’’ at the end of paragraph (23), by striking the period

12 at the end of paragraph (24) and inserting ‘‘; and’’, and

13 by inserting after paragraph (24) the following new para14 graph:

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

16 with respect to any child support order enforced by

17 the State under this part in which no payment has

18 been made during a preceding 3-month period, the

19 State make available for publication on a semi-an20 nual basis a listing of all such orders by name of the

21 support obligor, verified city and State address of

22 such obligor, and any other information deemed ap23 propriate by the State, and publicize the existence of

24 such listing to such support obligors.’’.
64

•S 2009 IS

1 SEC. 204. EFFECTIVE DATE.

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

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

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

5 date of the enactment of this Act.

6 (b) EXCEPTION.—In the case of a State that the Sec7 retary of Health and Human Services determines requires

8 State legislation (other than legislation appropriating

9 funds) in order to meet the additional requirements im10 posed by the amendments made by this title, the State

11 shall not be regarded as failing to comply with the require12 ments of such amendments before the first day of the first

13 calendar quarter beginning after the close of the first reg14 ular session of the State legislature that begins after Octo15 ber 1, 1994, if such State legislature did not meet in a

16 regular session after the date of the enactment of this Act

17 and before October 1, 1994. For purposes of this sub18 section, in the case of a State that has a 2-year legislative

19 session, each year of the session shall be treated as a sepa20 rate regular session of the State legislature.

Æ

S 2009 IS——2

S 2009 IS——3

S 2009 IS——4

S 2009 IS——5