I

104TH CONGRESS

2D SESSION H. R. 3612

To reform the Nation’s welfare system by requiring work and demanding

personal responsibility.

IN THE HOUSE OF REPRESENTATIVES

JUNE 11, 1996

Mr. GIBBONS (for himself, Mr. MCDERMOTT, Mr. MATSUI, Mr. CARDIN, and

Mr. LEWIS of Georgia) introduced the following bill; which was referred

to the Committees on Agriculture, Banking and Financial Services, Economic and Educational Opportunities, the Judiciary, Commerce, the

Budget, National Security, International Relations, and Government Reform and Oversight, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To reform the Nation’s welfare system by requiring work

and demanding personal responsibility.

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 ‘‘Work First and Per5 sonal Responsibility Act of 1996’’.
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1 SEC. 2. TABLE OF CONTENTS; AMENDMENT OF THE SOCIAL

2 SECURITY ACT.

3 (a) TABLE OF CONTENTS.—This Act is organized as

4 follows:

Section 1. Short title.

Sec. 2. Table of contents; amendment of the Social Security Act.

TITLE I—WORK-BASED ASSISTANCE

Sec. 101. Purpose.

Subtitle A—Temporary Employment Assistance

Sec. 102. State plan.

Sec. 103. Conforming amendments relating to collection of overpayments.

Sec. 104. Territories.

Sec. 105. Effective dates.

Subtitle B—Make Work Pay

Sec. 111. Transitional medicaid benefits.

Sec. 112. Notice of availability required to be provided to applicants and former

recipients of temporary employment assistance, food stamps,

and medicaid.

Sec. 113. Advance payment of earned income tax credit through State demonstration programs.

Sec. 114. Consolidated child care development block grant.

Sec. 115. Effective dates.

Subtitle C—Work First

Sec. 121. Work First program.

Sec. 122. Regulations.

Sec. 123. Applicability to States.

Sec. 124. One time increases in Work First program funds.

Subtitle D—Pregnancy and Family Stability

Sec. 131. Supervised living arrangements for minors.

Sec. 132. National Clearinghouse on Adolescent Pregnancy.

Sec. 133. Required completion of high school or other training for teenage parents.

Sec. 134. Second chance homes.

TITLE II—CHILD SUPPORT ENFORCEMENT

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 201. State obligation to provide child support enforcement services.

Sec. 202. Distribution of payments.

Sec. 203. Privacy safeguards.

Sec. 204. Rights to notification.

Subtitle B—Locate and Case Tracking
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Sec. 211. State case registry.

Sec. 212. Collection and disbursement of support payments.

Sec. 213. State directory of new hires.

Sec. 214. Amendments concerning income withholding.

Sec. 215. Locator information from interstate networks.

Sec. 216. Expansion of the Federal parent locator service.

Sec. 217. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 221. Adoption of uniform State laws.

Sec. 222. Improvements to full faith and credit for child support orders.

Sec. 223. Administrative enforcement in interstate cases.

Sec. 224. Use of forms in interstate enforcement.

Sec. 225. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 231. State laws concerning paternity establishment.

Sec. 232. Outreach for voluntary paternity establishment.

Sec. 233. Cooperation requirement and good cause exception.

Subtitle E—Program Administration and Funding

Sec. 241. Performance-based incentives and penalties.

Sec. 242. Federal and State reviews and audits.

Sec. 243. Required reporting procedures.

Sec. 244. Automated data processing requirements.

Sec. 245. Technical assistance.

Sec. 246. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 251. Simplified process for review and adjustment of child support orders.

Sec. 252. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 253. Nonliability for financial institutions providing financial records to

State child support enforcement agencies in child support

cases.

Subtitle G—Enforcement of Support Orders

Sec. 261. Internal Revenue Service collection of arrearages.

Sec. 262. Authority to collect support from Federal employees.

Sec. 263. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 264. Voiding of fraudulent transfers.

Sec. 265. Work requirement for persons owing past-due child support.

Sec. 266. Definition of support order.

Sec. 267. Reporting arrearages to credit bureaus.

Sec. 268. Liens.

Sec. 269. State law authorizing suspension of licenses.

Sec. 270. Denial of passports for nonpayment of child support.

Sec. 271. International child support enforcement.

Sec. 272. Financial institution data matches.
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Sec. 273. Enforcement of orders against paternal or maternal grandparents in

cases of minor parents.

Sec. 274. Nondischargeability in bankruptcy of certain debts for the support of

a child.

Subtitle H—Medical Support

Sec. 276. Correction to ERISA definition of medical child support order.

Sec. 277. Enforcement of orders for health care coverage.

Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential

Parents

Sec. 281. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 291. Effective dates.

TITLE III—FOOD ASSISTANCE

Subtitle A—Food Stamps

Sec. 301. Short Title.

PART 1—BUDGETARY PROPOSALS

Sec. 311. Include children under 22 years old in their parents’ households.

Sec. 312. Use the cost of the thrifty food plan for allotment adjustments.

Sec. 313. Lower age for excluding students’ earnings.

Sec. 314. Count governmental energy assistance as income.

Sec. 315. Reduce the standard deduction.

Sec. 316. Provide a State option to mandate use of standard utility allowances.

Sec. 317. Revise indexation of vehicle asset limitation.

Sec. 318. Count vendor payments for transitional housing as income.

Sec. 319. Strengthen penalties for noncompliance with work requirements.

Sec. 320. Provide a State option to require cooperation with child support enforcement agencies.

Sec. 321. Provide for disqualification for receipt of multiple food stamp benefits.

Sec. 322. Establish additional work requirement.

Sec. 323. Establish comparable treatment for disqualification.

Sec. 324. Repeal minimum benefit adjustments.

Sec. 325. Prorate benefits on recertification.

Sec. 326. Prohibit allotment increases for penalties under other welfare and public assistance programs.

Sec. 327. Permit States to determine most useful and reliable means of verification.

Sec. 328. Expand claims collection methods.

Sec. 329. Authorize States to operate simplified food stamp programs.

Sec. 330. Reauthorize appropriations for the food stamp program.

PART 2—NONBUDGETARY PROPOSALS

Sec. 341. Expand definition of coupon.

Sec. 342. Clarify definition of homeless individual.

Sec. 343. Provide State option for eligibility standards.

Sec. 344. Double penalties for violating food stamp program requirements.

Sec. 345. Provide State option to lower age of caretaker exemption.
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Sec. 346. Revise employment and training.

Sec. 347. Disqualify fleeing felons.

Sec. 348. Encourage electronic benefit transfer systems.

Sec. 349. Authorize exchange of law enforcement information.

Sec. 350. Simplify administration of expedited service.

PART 3—ADMINISTRATIVE FLEXIBILITY PROPOSALS

Sec. 361. Expand State authority to define certification period.

Sec. 362. Provide State option to combine allotments for expedited service

households.

Sec. 363. Revise treatment of allotments for households residing in centers.

Sec. 364. Improve operation of food stamp offices.

Sec. 365. Delete Federal requirement for State employee training.

Sec. 366. Authorize oral withdrawal of fair hearing requests.

Sec. 367. Delete redundant Federal standards for administration.

PART 4—PROPOSALS FOR STRENGTHENING RETAILER MANAGEMENT

Sec. 371. Provide authority to establish authorization periods.

Sec. 372. Provide authority to requirement information for verifying eligibility

for authorization.

Sec. 373. Establish waiting period for stores that initially fail to meet authorization criteria.

Sec. 374. Disqualify retailers who intentionally submit falsified applications.

Sec. 375. Disqualify retailers who are disqualified under the WIC program.

Sec. 376. Authorize suspension of stores violating program requirements pending administrative and judicial review.

Sec. 377. Expand civil and criminal forfeiture for violations of the Food Stamp

Act.

Sec. 378. Expand authority for sharing information provided by retail food

stores and wholesale food concerns.

PART 5—CONFORMING AMENDMENTS AND EFFECTIVE DATES

Sec. 381. Conforming amendments.

Sec. 382. Effective dates.

Subtitle B—Child Nutrition

Sec. 391. Family or group day care homes.

Sec. 392. Reimbursement rate adjustments.

Sec. 393. Elimination of start-up and expansion grants.

Sec. 394. Authorization of appropriations.

Sec. 395. Direct Federal expenditures.

TITLE IV—TREATMENT OF ALIENS

Sec. 401. Uniform alien eligibility criteria for public assistance programs.

Sec. 402. Deeming of sponsor’s income and resources to alien under TEA, SSI,

and food stamp programs.

Sec. 403. Continued liability of alien and sponsor for overpayments.

Sec. 404. Requirements for sponsor’s affidavit of support.

TITLE V—SUPPLEMENTAL SECURITY INCOME REFORMS

Sec. 501. Definition and eligibility rules.

Sec. 502. Eligibility redeterminations and continuing disability reviews.
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Sec. 503. Dedicated savings accounts.

Sec. 504. Denial of SSI benefits by reason of disability to drug addicts and alcoholics.

Sec. 505. Denial of SSI benefits for 10 years to individuals found to have fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.

Sec. 506. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 507. Allowance under the discretionary spending limits for increased expenditures for continuing disability reviews and disability eligibility redeterminations.

Sec. 508. Installment payment of large past-due Supplemental Security Income

benefits.

Sec. 509. Recovery of Supplemntal Security Income overpayments from Social

Security benefits.

Sec. 510. Allowance under the discretionary spending limits for administrative

expenses to implement changes to Supplemental Security Income program.

Sec. 511. Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by medical insurance.

TITLE VI—SOCIAL SERVICES BLOCK GRANTS

Sec. 601. Reduction in title XX block grants to States for social services.

1 (b) REFERENCES.—Except as otherwise expressly

2 provided, wherever in this Act an amendment or repeal

3 is expressed in terms of an amendment to, or repeal of,

4 a section or other provision, the reference is considered

5 to be made to a section or other provision of the Social

6 Security Act.

7 TITLE I—WORK-BASED

8 ASSISTANCE

9 SEC. 101. PURPOSE.

10 The primary purpose of this title is to provide true

11 welfare reform by repealing the program of Aid to Fami12 lies with Dependent Children and replacing it with a new

13 time-limited, conditional benefit based on work. Subtitle

14 A of this title creates the Temporary Employment Assist-
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1 ance program which requires welfare recipients to work,

2 supports and protects their children, and gives States

3 broad new flexibility to run their welfare programs. The

4 Work First program, established by subtitle C, provides

5 the means to transform the system toward work, and the

6 new consolidated child care block grant, established by

7 subtitle B, contains sufficient resources to ensure that re8 cipients who work have safe and adequate care for their

9 children. This title offers the reform American taxpayers

10 and welfare recipients alike want and deserve.

11 Subtitle A—Temporary

12 Employment Assistance

13 SEC. 102. STATE PLAN.

14 Title IV (42 U.S.C. 601 et seq.) is amended by strik15 ing part A, except for section 415 which, consistent with

16 section 402 of this Act, is redesignated as section 407,

17 and inserting the following:

18 ‘‘PART A—TEMPORARY EMPLOYMENT

19 ASSISTANCE

20 ‘‘SEC. 400. AUTHORIZATION OF APPROPRIATIONS.

21 ‘‘For the purpose of providing assistance to families

22 with needy children and assisting parents of children in

23 such families to obtain and retain private sector work to

24 the extent possible, and public sector or volunteer work

25 if necessary, through the Work First program established
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1 under parts F, G, and H, there is authorized to be appro2 priated for each fiscal year a sum sufficient to carry out

3 the purposes of this part.

4 ‘‘Subpart 1—State Plans for Temporary Employ5 ment Assistance

6 ‘‘SEC. 401. ELEMENTS OF STATE PLANS.

7 ‘‘A State plan for temporary employment assistance

8 shall provide a description of the State program which car9 ries out the purposes described in section 400 and shall

10 meet the requirements of the following sections of this

11 subpart.

12 ‘‘SEC. 402. FAMILY ELIGIBILITY FOR TEMPORARY EMPLOY13 MENT ASSISTANCE.

14 ‘‘(a) IN GENERAL.—The State plan shall provide that

15 any family—

16 ‘‘(1) with 1 or more children (or any expectant

17 family, at the option of the State), defined as needy

18 by the State; and

19 ‘‘(2) whose members have assigned their rights

20 to support to the State in accordance with section

21 403(b)(1)(E)(i) and fulfill the conditions set forth in

22 subsection (b), shall be eligible for assistance under

23 the plan, except as otherwise provided under this

24 part.

25 ‘‘(b) WORK REQUIREMENT.—
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1 ‘‘(1) PERSONAL RESPONSIBILITY AGREE2 MENT.—The State plan shall provide that not later

3 than 30 days after the approval of an application for

4 temporary employment assistance, a parent qualify5 ing for assistance shall execute a personal respon6 sibility agreement as described in section 403. If a

7 child otherwise eligible for assistance under this part

8 is residing with a needy relative other than a parent,

9 the State plan may require the relative to execute

10 such a plan as a condition of the family receiving

11 such assistance.

12 ‘‘(2) WORK WITHIN TWO YEARS.—The State

13 plan shall provide that a parent or caretaker receiv14 ing assistance under the program will engage in

15 work (as defined by the State) when the State deter16 mines the parent or caretaker is ready to engage in

17 work, or after 24 months (whether or not consecu18 tive) of receiving assistance under the program,

19 whichever is earlier.

20 ‘‘(c) LIMITATIONS ON ELIGIBILITY.—

21 ‘‘(1) REQUIREMENTS TO WORK AND LOOK FOR

22 WORK.—Except as otherwise provided in paragraph

23 (2), the State plan shall limit eligibility of individ24 uals and families as follows:
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1 ‘‘(A) REFUSAL TO LOOK FOR WORK.—If

2 an unemployed individual who has attained 18

3 years of age (or at State option, 19) refuses

4 without good cause to look for work—

5 ‘‘(i) in the case of the first such re6 fusal, assistance shall not be payable with

7 respect to such individual until the date

8 the individual begins to look for work; and

9 ‘‘(ii) in the case of a second or subse10 quent refusal, assistance shall not be pay11 able with respect to the family of such in12 dividual until the later of—

13 ‘‘(I) 6 months after the date of

14 such refusal; or

15 ‘‘(II) the date the individual be16 gins to look for work.

17 ‘‘(B) REFUSAL TO ACCEPT A BONA FIDE

18 OFFER OF EMPLOYMENT.—If an unemployed

19 individual who has attained 18 years of age (or

20 at State option, 19) refuses without good cause

21 to accept a bona fide offer of employment—

22 ‘‘(i) in the case of the first such re23 fusal, assistance shall not be payable with

24 respect to such individual until the date

25 the individual begins to work; and
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1 ‘‘(ii) in the case of a second or subse2 quent refusal, assistance shall not be pay3 able with respect to the family of such in4 dividual until the later of—

5 ‘‘(I) 6 months after the date of

6 such refusal; or

7 ‘‘(II) the date the individual be8 gins to work.

9 ‘‘(C) FAILURE TO COMPLY WITH PER10 SONAL RESPONSIBILITY AGREEMENT OR MU11 TUAL RESPONSIBILITY PLANS.—The State plan

12 shall describe sanctions determined by the State

13 for those circumstances when the individual

14 fails without good cause to comply with a per15 sonal responsibility agreement (or, if the State

16 has established a program under subpart 1 of

17 part F and the individual is required to partici18 pate in the program, a mutual responsibility

19 plan) signed by the individual.

20 ‘‘(i) In the case of the first such fail21 ure, the State shall impose on the individ22 ual a sanction determined by the State

23 which is no more severe than the sanction

24 provided for under subparagraph (A)(i).
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1 ‘‘(ii) In the case of a second or subse2 quent failure, the State shall impose on the

3 family of the individual a sanction deter4 mined by the State which is no more se5 vere than the sanction provided for under

6 subparagraph (A)(ii).

7 ‘‘(2) TIME LIMIT ON ASSISTANCE.—

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

9 subparagraphs (B) and (C), the State plan

10 shall provide that the family of an individual

11 who, after attaining age 18 years (or age 19

12 years, at State option), has received assistance

13 under the plan for 60 months, shall no longer

14 be eligible for assistance under the plan.

15 ‘‘(B) HARDSHIP EXCEPTION AFTER EXPI16 RATION OF 60-MONTH PERIOD.—The State plan

17 shall provide for hardship exceptions from the

18 application of subparagraph (A) in accordance

19 with clause (i) (or alternatively, at State option,

20 in accordance with clause (ii)).

21 ‘‘(i) GENERAL EXCEPTION FORMULA22 TION.—Except as provided in clause (ii),

23 the State plan shall provide that eligibility

24 shall not be denied to any family under

25 subparagraph (A) if—
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1 ‘‘(I) at the option of the State,

2 the family includes an individual

3 working 20 hours per week (or more,

4 at the option of the State);

5 ‘‘(II) the family resides in an

6 area with an unemployment rate ex7 ceeding 8 percent; or

8 ‘‘(III) the family is experiencing

9 other special hardship circumstances

10 which make it appropriate for the

11 State to provide an exemption for

12 such month, except that the total

13 number of exemptions under this

14 clause for any month shall not exceed

15 15 percent of the number of families

16 to which the State is providing assist17 ance under the plan.

18 ‘‘(ii) ALTERNATIVE HARDSHIP EXCEP19 TION FORMULATION.—A State may elect,

20 as an alternative to clause (i), to define

21 hardship circumstances, in which case the

22 total number of exemptions under this

23 clause for any month shall not exceed 20

24 percent of the number of families to which
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1 the State is providing assistance under the

2 plan.

3 ‘‘(C) EXCLUSION FROM 60-MONTH PE4 RIOD.—With respect to any family, the State

5 plan shall not include in the determination of

6 the 60-month period under subparagraph (A)

7 any month in which any of the following applies

8 to the family:

9 ‘‘(i) TEEN PARENTS.—The parent—

10 ‘‘(I) is under age 18 (or age 19,

11 at the option of the State); and

12 ‘‘(II) is making satisfactory

13 progress while attending high school

14 or an alternative technical preparation

15 school.

16 ‘‘(ii) INDIVIDUALS EXEMPT FROM

17 WORK REQUIREMENTS.—One parent in a

18 single-parent family or each parent in a

19 two-parent family—

20 ‘‘(I) is seriously ill, incapacitated,

21 or of advanced age;

22 ‘‘(II)(aa) except for a child de23 scribed in subclause (bb), is respon24 sible for a child under age 1 year (or
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1 age 6 months, at the option of the

2 State), or

3 ‘‘(bb) in the case of a second or

4 subsequent child born during such pe5 riod, is responsible for a child under

6 age 3 months;

7 ‘‘(III) is pregnant in the 3rd tri8 mester;

9 ‘‘(IV) is caring for a family mem10 ber who is ill or incapacitated; or

11 ‘‘(V) (in the case of a single cus12 todial parent), has a demonstrated in13 ability to obtain needed child care, as

14 determined by the State, for one or

15 more of the following reasons:

16 ‘‘(aa) unavailability of ap17 propriate child care within a rea18 sonable distance of the individ19 ual’s home or work site;

20 ‘‘(bb) unavailability or

21 unsuitability of informal child

22 care by a relative or under other

23 arrangements; or
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1 ‘‘(cc) unavailability of appro2 priate and affordable formal child

3 care arrangements.

4 ‘‘(D) CHILD-ONLY CASES.—With respect

5 to any child who has not attained age 18 (or

6 age 19, at the option of the State) and who is

7 eligible for assistance under this part, but not

8 as a member of a family otherwise eligible for

9 assistance under this part (determined without

10 regard to this paragraph), the State plan shall

11 not include in the determination of the 60-

12 month period under subparagraph (A) any

13 month in which such child has not attained

14 such age.

15 ‘‘(3) TREATMENT OF FAMILY INELIGIBLE FOR

16 CASH ASSISTANCE.—The State plan shall provide

17 that if a family is no longer eligible for cash assist18 ance under the plan due to the application of para19 graph (1) or (2)—

20 ‘‘(A) for purposes of determining eligibility

21 for any other Federal or federally assisted pro22 gram based on need, the family shall continue

23 to be considered eligible for such assistance;

24 ‘‘(B) in the case of a family ineligible for

25 such assistance due solely to the application of
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1 paragraph (2), the State shall, after having as2 sessed the needs of the child or children of the

3 family, provide for such needs with vouchers for

4 such family—

5 ‘‘(i) determined on the same basis as

6 the State would provide assistance under

7 the State plan to such a family with one

8 less individual or two less individuals, as

9 applicable, in the case of a two-parent fam10 ily,

11 ‘‘(ii) designed appropriately to pay

12 third parties for shelter, goods, and serv13 ices received by the child or children, and

14 ‘‘(iii) payable directly to the third par15 ties.

16 ‘‘(4) INDIVIDUALS ON OLD-AGE ASSISTANCE OR

17 SSI INELIGIBLE FOR TEMPORARY EMPLOYMENT AS18 SISTANCE.—The State plan shall provide that no as19 sistance shall be furnished any individual under the

20 plan with respect to any period with respect to which

21 the individual is receiving old-age assistance under

22 the State plan under title I or supplemental security

23 income under title XVI, and the individual’s income

24 and resources attributable to such sources shall be

25 disregarded in determining the eligibility of the fam-
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1 ily of the individual for temporary employment as2 sistance.

3 ‘‘(5) CHILDREN FOR WHOM FEDERAL, STATE,

4 OR LOCAL FOSTER CARE MAINTENANCE OR ADOP5 TION ASSISTANCE PAYMENTS ARE MADE.—A child

6 with respect to whom foster care maintenance pay7 ments or adoption assistance payments are made

8 under part E or under State or local law shall not,

9 for the period for which such payments are made, be

10 regarded as a needy child under this part, and such

11 child’s income and resources shall be disregarded in

12 determining the eligibility of the family of such child

13 for temporary employment assistance.

14 ‘‘(6) DENIAL OF ASSISTANCE FOR 10 YEARS TO

15 A PERSON FOUND TO HAVE FRAUDULENTLY MIS16 REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS17 SISTANCE IN 2 OR MORE STATES.—The State plan

18 shall provide that no assistance will be furnished any

19 individual under the plan during the 10-year period

20 that begins on the date the individual is convicted in

21 Federal or State court of having made a fraudulent

22 statement or representation with respect to the place

23 of residence of the individual in order to receive ben24 efits or services simultaneously from 2 or more

25 States under programs that are funded under this
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1 part or title XIX, or benefits in 2 or more States

2 under the supplemental security income program

3 under title XVI.

4 ‘‘(7) DENIAL OF ASSISTANCE FOR FUGITIVE

5 FELONS AND PROBATION AND PAROLE VIOLA6 TORS.—

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

8 provide that no assistance will be furnished any

9 individual under the plan for any period if dur10 ing such period the State agency has knowledge

11 that such individual is—

12 ‘‘(i) fleeing to avoid prosecution, or

13 custody or confinement after conviction,

14 under the laws of the place from which the

15 individual flees, for a crime, or an attempt

16 to commit a crime, which is a felony under

17 the laws of the place from which the indi18 vidual flees, or which, in the case of the

19 State of New Jersey, is a high mis20 demeanor under the laws of such State; or

21 ‘‘(ii) violating a condition of probation

22 or parole imposed under Federal or State

23 law.

24 ‘‘(B) EXCHANGE OF INFORMATION WITH

25 LAW ENFORCEMENT AGENCIES.—Notwithstand-
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1 ing any other provision of law, the State plan

2 shall provide that the State shall furnish any

3 Federal, State, or local law enforcement officer,

4 upon the request of the officer, with the current

5 address of any recipient of assistance under the

6 plan, if the officer furnishes the agency with the

7 name of the recipient and notifies the agency

8 that—

9 ‘‘(i) the recipient is described in

10 clause (i) or (ii) of subparagraph (A); and

11 ‘‘(ii) the location or apprehension of

12 the recipient is within such officer’s official

13 duties.

14 ‘‘(d) DETERMINATION OF ELIGIBILITY AND BENE15 FITS.—

16 ‘‘(1) DETERMINATION OF NEED.—The State

17 plan shall provide that the State agency will take

18 into consideration any income and resources—

19 ‘‘(A) which are legally or actually available

20 to meet the needs of the child or relative claim21 ing temporary employment assistance; and

22 ‘‘(B) which the State determines should be

23 considered in determining the need of such

24 child or relative.
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1 ‘‘(2) OPTIONAL DENIAL OF ASSISTANCE TO

2 FAMILIES HAVING ADDITIONAL CHILDREN WHILE

3 RECEIVING ASSISTANCE.—At the option of the State,

4 the State plan may provide that—

5 ‘‘(A)(i) the amount of temporary employ6 ment assistance paid to a family under the plan

7 will not be increased by reason of the birth of

8 a child (other than as a result of rape or incest)

9 to an individual included in such family if—

10 ‘‘(I) when the individual is a custodial

11 parent of a needy child, the child was con12 ceived in a month for which the individual

13 received aid under the plan, or

14 ‘‘(II) when the individual is a needy

15 child, the individual is the parent of an16 other child who is a member of the same

17 family and whose needs are included for

18 purposes of making such determination;

19 ‘‘(ii) if the value of assistance to a family

20 under the State plan approved under this part

21 is reduced by reason of subclause (I), each

22 member of the family shall be considered to be

23 receiving such assistance for purposes of Fed24 eral law including but not limited to eligibility

25 for medical assistance under the State plan ap-
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1 proved under title XIX for so long as assistance

2 to the family under the State plan approved

3 under this part would otherwise not be so re4 duced; and

5 ‘‘(B) if the State exercises the option, the

6 State may provide the family with vouchers, in

7 amounts not exceeding the amount of any such

8 reduction in assistance, that may be used only

9 to pay for particular goods and services speci10 fied by the State as suitable for the care of the

11 child of the parent (such as diapers, clothing, or

12 school supplies). In addition, the State may

13 allow an additional earned income disregard, or

14 disregard of child support received on behalf of

15 a child described by this subsection, in amounts

16 that do not exceed in total the reduction in as17 sistance that occurs as a result of a State exer18 cising the option.

19 ‘‘(C) A family may be subjected to this

20 subparagraph as long as application of this sub21 paragraph, whether alone or together with other

22 provisions of the State plan, does not reduce to

23 zero the maximum assistance level for such a

24 family.
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1 ‘‘(3) RESOURCE AND INCOME DETERMINA2 TION.—With respect to the determination of the

3 total resources and income of the family of any

4 needy child, the State plan shall provide the follow5 ing:

6 ‘‘(A) RESOURCES.—The plan shall specify

7 the resource limit, and describe the policy deter8 mined by the State regarding any exclusion al9 lowed for vehicles owned by family members, re10 sources set aside for future needs of a child, in11 dividual development accounts, or other policies

12 established by the State to encourage savings.

13 ‘‘(B) FAMILY INCOME.—The plan shall

14 specify the extent to which earned or unearned

15 income is disregarded in determining eligibility

16 for, and amount of, assistance.

17 ‘‘(C) CHILD SUPPORT.—The plan shall

18 specify whether (and if so, the extent to which)

19 current child support received in excess of $50

20 per month on behalf of a member of the family

21 is disregarded in determining eligibility for, and

22 the amount of, assistance.

23 ‘‘(D) CHILD’S EARNINGS.—The plan shall

24 describe the treatment of earnings of a child liv25 ing in the home.
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1 ‘‘(E) EARNED INCOME TAX CREDIT.—The

2 plan shall provide for disregard of any refund

3 of Federal income taxes made to a family re4 ceiving temporary employment assistance by

5 reason of section 32 of the Internal Revenue

6 Code of 1986 (relating to earned income tax

7 credit) and any payment made to such a family

8 by an employer under section 3507 of such

9 Code (relating to advance payment of earned

10 income credit).

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

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

15 meets the requirements of section 1137.

16 ‘‘(e) SERVICES TO NATIVE AMERICANS.—The State

17 plan shall specify the steps that will be taken to ensure

18 that an appropriate share of assistance and services under

19 the plan (and under part F and part G or H) are fur20 nished to eligible Native Americans (including, as applica21 ble, Indians, Alaskan Natives, and Native Hawaiians) liv22 ing in the State.

23 ‘‘(f) SERVICES TO REFUGEES.—The State plan shall

24 provide assurances that assistance and services furnished

25 to refugees under the plan (and under part F and part
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1 G or H) shall be furnished in a manner that promotes

2 their economic self-sufficiency and adjustment.

3 ‘‘SEC. 403. PERSONAL RESPONSIBILITY AGREEMENT.

4 ‘‘(a) ASSESSMENT.—The State agency responsible

5 for administering the State plan shall make an initial as6 sessment of the skills, prior work experience, and employ7 ability of each caretaker who applies for, or receives assist8 ance under the State plan who—

9 ‘‘(1) has attained 18 years of age (or at State

10 option, 19); or

11 ‘‘(2) has not attained the age specified in para12 graph (1), has not completed high school or obtained

13 a certificate of high school equivalency, and is not

14 attending secondary school.

15 ‘‘(b) PERSONAL RESPONSIBILITY AGREEMENTS.—

16 ‘‘(1) IN GENERAL.—On the basis of the assess17 ment made under subsection (a) with respect to an

18 individual, the State agency, in consultation with the

19 individual, shall develop an appropriate personal re20 sponsibility agreement for the individual, which—

21 ‘‘(A) provides that participation by the in22 dividual in job search activities is a condition of

23 eligibility for assistance under the State plan

24 approved under part A, except during any pe-
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1 riod for which the individual is employed full2 time in an unsubsidized job;

3 ‘‘(B) sets forth an employment goal for the

4 individual and a plan for moving the individual

5 immediately into private sector employment;

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

8 the individual attend school, maintain certain

9 grades and attendance, keep school age children

10 of the individual in school, immunize children,

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

14 sector;

15 ‘‘(D) may require that the individual enter

16 the State program established under part F, if

17 the caseworker determines that the individual

18 will need education, training, job placement as19 sistance, wage enhancement, or other services

20 to become employed in the private sector;

21 ‘‘(E) provides that the individual must—

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

23 support (including, but not limited to,

24 amounts which have accrued at the time

25 such assignment is executed) from any
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1 other person the individual may have in

2 such individual’s own behalf or in behalf of

3 any other family member for whom the in4 dividual is applying for or receiving assist5 ance or any other family member who is

6 deemed to be receiving assistance for the

7 purposes of title XIX; provided that the

8 assignment of arrearages that accrued in

9 a month in which the family did not re10 ceive assistance under this part shall cease

11 to be effective for any family no longer re12 ceiving assistance under this part to which

13 the State applies the amendments made by

14 the Work First and Personal Responsibil15 ity Act of 1996 to section 457(c); and

16 ‘‘(ii) cooperate with the State—

17 ‘‘(I) in establishing the paternity

18 of a child born out of wedlock with re19 spect to whom assistance is claimed,

20 and

21 ‘‘(II) in obtaining support pay22 ments for the individual and for a

23 child with respect to whom such as24 sistance is claimed, or in obtaining

25 any other payments or property due
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1 the individual or the child, unless (in

2 either case) the individual is found to

3 have good cause for refusing to co4 operate as determined by the State

5 agency administering the program

6 under part D in accordance with

7 standards prescribed by the Secretary,

8 which standards shall take into con9 sideration the best interests of the

10 child on whose behalf assistance is

11 claimed.

12 ‘‘(F) to the greatest extent possible is de13 signed to move the individual into whatever pri14 vate sector employment the individual is capable

15 of handling as quickly as possible, and to in16 crease the responsibility and amount of work

17 the individual is to handle over time;

18 ‘‘(G) describes the services the State will

19 provide the individual so that the individual can

20 obtain and keep employment in the private sec21 tor, and describes the job counseling and other

22 services that will be provided by the State; and

23 ‘‘(H) at the option of the State, may re24 quire the individual to undergo appropriate sub25 stance abuse treatment.
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1 ‘‘(2) TIMING.—The State agency shall comply

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

3 ‘‘(A) within 180 days after the effective

4 date of this part, in the case of an individual

5 who, as of such effective date, is a recipient of

6 assistance under the State plan approved under

7 this part; or

8 ‘‘(B) within 90 days after the individual is

9 determined to be eligible for such assistance, in

10 the case of any other individual.

11 ‘‘(c) PROVISION OF PROGRAM AND EMPLOYMENT IN12 FORMATION.—The State shall inform all applicants for

13 and recipients of assistance under the State plan approved

14 under this part of all available services under the State

15 plan for which they are eligible.

16 ‘‘(d) REQUIREMENT THAT RECIPIENTS ENTER THE

17 WORK FIRST PROGRAM.—

18 ‘‘(1) IN GENERAL.—On and after October 1,

19 2003, the State shall place recipients of assistance

20 under the State plan under this part, who have not

21 become employed within 1 year after signing an per22 sonal responsibility agreement, in the first available

23 slot in the State program under part F, except as

24 provided in paragraph (2).
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1 ‘‘(2) EXCEPTIONS.—A state shall not require a

2 recipient of such assistance to participate in the pro3 gram if the recipient—

4 ‘‘(A) is ill, incapacitated, or of advanced

5 age;

6 ‘‘(B) except for a child described in sub7 paragraph (C), is responsible for a child under

8 age 1 year (or age 6 months, at the option of

9 the State);

10 ‘‘(C) in the case of a second or subsequent

11 child born since the recipient signed the agree12 ment, is responsible for a child under age 3

13 months;

14 ‘‘(D) is pregnant in the third trimester;

15 ‘‘(E) is caring for a family member who is

16 ill or incapacitated; or

17 ‘‘(F) is a single custodial parent and has

18 a demonstrated inability to obtain needed child

19 care, as determined by the State, for one or

20 more of the following reasons:

21 ‘‘(i) unavailability of appropriate child

22 care within a reasonable distance of the in23 dividual’s home or work site;
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1 ‘‘(ii) unavailability or unsuitability of

2 informal child care by a relative or under

3 other arrangements; or

4 ‘‘(iii) unavailability of appropriate and

5 affordable formal child care arrangements.

6 ‘‘SEC. 404. PAYMENT OF ASSISTANCE.

7 ‘‘(a) STANDARDS OF ASSISTANCE.—The State plan

8 shall specify standards of assistance, including—

9 ‘‘(1) the composition of the family unit for

10 which assistance will be provided;

11 ‘‘(2) a standard or standards, expressed in a

12 dollar amount or amounts, to be used in determining

13 the need of applicants and recipients;

14 ‘‘(3) a standard or standards, expressed in a

15 dollar amount or amounts, to be used in determining

16 the amount of the assistance payment; and

17 ‘‘(4) the methodology to be used in determining

18 the payment amount received by an assistance unit.

19 ‘‘(b) LEVEL OF ASSISTANCE.—Except as otherwise

20 provided in this title, the State plan shall provide that—

21 ‘‘(1) the determination of need and the amount

22 of assistance for all applicants and recipients shall

23 be made on an objective and equitable basis; and

24 ‘‘(2) families of similar composition with similar

25 needs and circumstances shall be treated similarly.
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1 ‘‘(c) FAIR HEARING AND CORRECTION OF PAY2 MENTS.—The State plan shall provide that the State

3 agency shall—

4 ‘‘(1) grant an opportunity for a fair hearing be5 fore the State agency to any individual whose re6 quest for assistance under such plan is denied or is

7 not acted upon with reasonable promptness; and

8 ‘‘(2) promptly take all necessary steps to cor9 rect any overpayment or underpayment of assistance

10 under such plan, including the request for withhold11 ing from Federal tax refunds as provided under sec12 tion 416.

13 ‘‘(d) OPTIONAL VOLUNTARY DIVERSION PRO14 GRAM.—

15 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

16 and (3), the State plan may provide, with respect to

17 the geographic area or areas of the State that the

18 State may select, that upon the recommendation of

19 the caseworker responsible, the State may offer to

20 an eligible family one-time assistance for a period of

21 not more than three months (which assistance, if ac22 cepted by the family, shall be in lieu of any other

23 assistance under the State plan for such period) in

24 an amount not to exceed—
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•HR 3612 IH

1 ‘‘(A) the value of the monthly benefits that

2 would otherwise be provided to the family under

3 the State plan; multiplied by

4 ‘‘(B) the number of months in the time pe5 riod.

6 ‘‘(2) ONE-TIME LIMITATION.—Assistance pur7 suant to paragraph (1) shall not be made more than

8 once to any family; and

9 ‘‘(3) ADJUSTMENT OF ALTERNATIVE BENE10 FITS.—If, during the period with respect to which

11 the State has provided one-time assistance to a fam12 ily pursuant to paragraph (1), the family applies for

13 and (but for the one-time assistance) would be eligi14 ble under the State plan for a monthly benefit great15 er than the value of the amount used in the calcula16 tion under paragraph (1), then, notwithstanding

17 paragraph (1), the State shall, for that part of the

18 time period that remains after the family becomes

19 eligible for the greater monthly benefit, provide

20 monthly benefits to the family in an amount not to

21 exceed—

22 ‘‘(A) the amount by which the value of the

23 greater monthly benefit exceeds the value of the

24 former monthly benefit, multiplied by the num25 ber of months in the time period; divided by
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1 ‘‘(B) the whole number of months remain2 ing in the time period.

3 ‘‘SEC. 405. REQUIREMENTS CONCERNING OTHER PRO4 GRAMS.

5 ‘‘(a) WORK FIRST PROGRAM; WORKFARE OR JOB

6 PLACEMENT VOUCHER PROGRAM.—The State plan shall

7 provide that the State has in effect—

8 ‘‘(1) a Work First program that meets the re9 quirements of part F; and

10 ‘‘(2) a workfare program that meets the re11 quirements of part G, or a job placement voucher

12 program that meets the requirements of part H, but

13 not both.

14 ‘‘(b) PROVISION OF CASE MANAGEMENT SERV15 ICES.—The State plan shall provide that the State shall

16 furnish to participants in those programs case manage17 ment services that are necessary to ensure the integrated

18 provision of benefits and services under those programs

19 and under this part.

20 ‘‘(c) STATE CHILD SUPPORT AGENCY.—The State

21 plan shall—

22 ‘‘(1) provide that the State has in effect a plan

23 approved under part D and operates a child support

24 program in substantial compliance with such plan;
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1 ‘‘(2) provide that the State agency administer2 ing the plan approved under this part is responsible

3 for ensuring that—

4 ‘‘(A) the benefits and services provided

5 under plans under this part and part D are fur6 nished in an integrated manner, including co7 ordination of intake procedures with the agency

8 administering the plan under part D;

9 ‘‘(B) all applicants for, and recipients of,

10 temporary employment assistance are encour11 aged, assisted, and required (as provided under

12 section 403(b)(1)(E)(ii)) to cooperate in the es13 tablishment and enforcement of paternity and

14 child support obligations and are notified about

15 the services available under the State plan ap16 proved under part D; and

17 ‘‘(C) procedures require referral of pater18 nity and child support enforcement cases to the

19 agency administering the plan approved under

20 part D not later than 10 days after the applica21 tion for temporary employment assistance; and

22 ‘‘(3) provide for prompt notice (including the

23 transmittal of all relevant information) to the State

24 child support collection agency established pursuant

25 to part D of the furnishing of temporary employ-
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1 ment assistance with respect to a child who has been

2 deserted or abandoned by a parent (including a child

3 born out of wedlock, without regard to whether the

4 paternity of the child has been established).

5 ‘‘(d) CHILD WELFARE SERVICES AND FOSTER CARE

6 AND ADOPTION ASSISTANCE.—The State plan shall pro7 vide that the State has in effect—

8 ‘‘(1) a State plan for child welfare services ap9 proved under part B; and

10 ‘‘(2) a State plan for foster care and adoption

11 assistance approved under part E,

12 and operates such plans in substantial compliance with the

13 requirements of such parts.

14 ‘‘(e) REPORT OF CHILD ABUSE, ETC.—The State

15 plan shall provide that the State agency will—

16 ‘‘(1) report to an appropriate agency or official

17 known or suspected instances of physical or mental

18 injury, sexual abuse or exploitation, or negligent

19 treatment or maltreatment of a child receiving as20 sistance under the State plan under circumstances

21 which indicate that the child’s health or welfare is

22 threatened thereby; and

23 ‘‘(2) provide such information with respect to a

24 situation described in paragraph (1) as the State

25 agency may have.
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1 ‘‘(f) AVAILABILITY OF ASSISTANCE IN RURAL AREAS

2 OF STATE.—The State plan shall provide that the State

3 agency shall consider and address any special needs of

4 rural areas in the State to ensure that families in such

5 areas receive assistance to become self-sufficient.

6 ‘‘(g) FAMILY PRESERVATION.—

7 ‘‘(1) IN GENERAL.—The State plan shall de8 scribe the efforts by the State to promote family

9 preservation and stability, including efforts—

10 ‘‘(A) to encourage fathers to stay home

11 and be a part of the family;

12 ‘‘(B) to keep families together to the ex13 tent possible; and

14 ‘‘(C) except to the extent provided in para15 graph (2), to treat 2-parent families and 1-par16 ent families equally with respect to eligibility

17 for assistance.

18 ‘‘(2) MAINTENANCE OF TREATMENT.—The

19 State may impose eligibility limitations relating spe20 cifically to 2-parent families to the extent such limi21 tations are no more restrictive than such limitations

22 in effect in the State plan in fiscal year 1995.

23 ‘‘(h) CHILD CARE.—The State plan shall provide that

24 the State has in effect a plan under its program under

25 the Child Care Development Block Grant Act of 1990.
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1 ‘‘SEC. 406. ADMINISTRATIVE REQUIREMENTS FOR STATE

2 PLAN.

3 ‘‘(a) STATEWIDE PLAN.—The State plan shall be in

4 effect in all political subdivisions of the State, and, if ad5 ministered by the subdivisions, be mandatory upon such

6 subdivisions. If such plan is not administered uniformly

7 throughout the State, the plan shall describe the adminis8 trative variations.

9 ‘‘(b) SINGLE ADMINISTERING AGENCY.—The State

10 plan shall provide for the establishment or designation of

11 a single State agency to administer the plan or supervise

12 the administration of the plan.

13 ‘‘(c) FINANCIAL PARTICIPATION.—The State plan

14 shall provide for financial participation by the State con15 sistent with section 413.

16 ‘‘(d) REASONABLE PROMPTNESS.—The State plan

17 shall provide that all individuals wishing to apply for tem18 porary employment assistance shall have opportunity to

19 do so, and that such assistance shall be furnished with

20 reasonable promptness to all eligible individuals.

21 ‘‘(e) AUTOMATED DATA PROCESSING SYSTEM.—The

22 State plan may provide for the establishment and oper23 ation of an automated statewide management information

24 system designed effectively and efficiently to assist man25 agement in the administration of the State plan approved

26 under this part, so as—
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1 ‘‘(1) to control and account for—

2 ‘‘(A) all the factors in the total eligibility

3 determination process under such plan for as4 sistance, and

5 ‘‘(B) the costs, quality, and delivery of

6 payments and services furnished to applicants

7 for and recipients of assistance; and

8 ‘‘(2) to notify the appropriate officials for child

9 support, food stamp, and social service programs,

10 and the medical assistance program approved under

11 title XIX, whenever a recipient becomes ineligible for

12 such assistance or the amount of assistance provided

13 to a recipient under the State plan is changed.

14 ‘‘(f) DISCLOSURE OF INFORMATION.—The State plan

15 shall provide for safeguards which restrict the use or dis16 closure of information concerning applicants or recipients.

17 ‘‘(g) DETECTION OF FRAUD.—The State plan shall

18 provide, in accordance with regulations issued by the Sec19 retary, for appropriate measures to detect fraudulent ap20 plications for temporary employment assistance before the

21 establishment of eligibility for such assistance.

22 ‘‘(h) AUDITS.—

23 ‘‘(1) IN GENERAL.—Each State shall audit, not

24 less than annually, the State expenditures for the

25 program under this part and parts F, G, and H to
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1 determine the extent to which the expenditures were

2 made in accordance with the provisions of this part

3 and parts F, G, and H.

4 ‘‘(2) AUDIT REPORTS.—Not later than 30 days

5 following the completion of an audit under this sub6 section, a State shall submit a copy of the audit to

7 the State legislature and to the Secretary of Health

8 and Human Services.

9 ‘‘(3) SINGLE AUDITS.—To the extent they are

10 not inconsistent with this section, the provisions of

11 chapter 75 of title 31, United States Code, apply to

12 audit requirements of this section.

13 ‘‘Subpart 2—Administrative Provisions

14 ‘‘SEC. 411. APPROVAL OF PLAN.

15 ‘‘(a) IN GENERAL.—The Secretary shall approve a

16 State plan which fulfills the requirements under subpart

17 1 within 120 days of the submission of the plan by the

18 State to the Secretary.

19 ‘‘(b) DEEMED APPROVAL.—If a State plan has not

20 been rejected by the Secretary during the period specified

21 in subsection (a), the plan is considered to have been ap22 proved.

23 ‘‘SEC. 412. COMPLIANCE.

24 ‘‘In the case of any State plan for temporary employ25 ment assistance which has been approved under section
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1 411, if the Secretary, after reasonable notice and oppor2 tunity for hearing to the State agency administering or

3 supervising the administration of such plan, finds that in

4 the administration of the plan there is a failure to comply

5 substantially with any provision required by subpart 1 to

6 be included in the plan, the Secretary shall notify such

7 State agency that further payments will not be made to

8 the State (or in the Secretary’s discretion, that payments

9 will be limited to categories under or parts of the State

10 plan not affected by such failure) until the Secretary is

11 satisfied that there is no longer any such failure to comply.

12 Until the Secretary is so satisfied the Secretary shall make

13 no further payments to such State (or shall limit payments

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

15 by such failure).

16 ‘‘SEC. 413. PAYMENTS TO STATES.

17 ‘‘(a) COMPUTATION OF AMOUNT.—

18 ‘‘(1) IN GENERAL.—Subject to section 412, the

19 Secretary of the Treasury shall pay to each State

20 which has an approved plan for temporary employ21 ment assistance, for each quarter, beginning with

22 the quarter commencing October 1, 1996, an

23 amount equal to the Federal medical assistance per24 centage (as defined in section 1905(b) or, as appli25 cable, in section 1118) of the program expenditures
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1 by the State under that plan (other than expendi2 tures for administrative costs of that plan and for

3 purposes specified in paragraph (2)(B)).

4 ‘‘(2) WORK FIRST AND OTHER PROGRAMS.—

5 ‘‘(A) ENTITLEMENT; FEDERAL MATCHING

6 SHARE.—Each State that is operating a pro7 gram in accordance with a plan approved under

8 part F and a program in accordance with part

9 G or H shall be entitled to payment, for each

10 fiscal year, equal to the lesser of—

11 ‘‘(i) the sum of the amounts allotted

12 to the State pursuant to subparagraphs

13 (D) and (E), or

14 ‘‘(ii) the greater of 60 percent or the

15 Federal medical assistance percentage (as

16 defined in section 1905(b) or, as applica17 ble, in section 1118) of State expenditures

18 for the purposes specified in subparagraph

19 (B) (excluding any expenditures from per20 formance bonuses provided under para21 graph (4)).

22 ‘‘(B) USE OF FUNDS.—

23 ‘‘(i) Amounts available to a State pur24 suant to this paragraph may be used by

25 the State—
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1 ‘‘(I) for all costs of carrying out

2 programs under part F and part G or

3 part H;

4 ‘‘(II) for administrative costs of

5 carrying out the program under part

6 A;

7 ‘‘(III) for all costs of providing

8 emergency assistance to needy fami9 lies with children in accordance with

10 paragraph (3); and

11 ‘‘(IV) to supplement amounts

12 otherwise available for child care

13 under section 6580b of the Child Care

14 and Development Block Grant Act of

15 1990, subject to the terms and condi16 tions, including matching require17 ments, under section 6580b of that

18 Act.

19 ‘‘(ii) States shall not allocate to pro20 grams in which Federal financial participa21 tion is available, other than programs spec22 ified in clause (i), administrative costs for

23 activities in fiscal year 1997 and succeed24 ing fiscal years that in fiscal year 1995
44

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1 were allocated to programs under parts A

2 and F.

3 ‘‘(C) AMOUNTS FOR ALLOTMENT.—For

4 purposes of allotment to States under subpara5 graphs (D) and (E), the amount specified in

6 this subparagraph is as follows:

7 ‘‘(i) For fiscal years 1997 through

8 2002, the amount specified is:

9 ‘‘(I) $2,900,000,000 for fiscal

10 year 1997;

11 ‘‘(II) $2,950,000,000 for fiscal

12 year 1998;

13 ‘‘(III) $3,100,000,000 for fiscal

14 year 1999;

15 ‘‘(IV) $3,350,000,000 for fiscal

16 year 2000;

17 ‘‘(V) $3,800,000,000 for fiscal

18 year 2001;

19 ‘‘(VI) $3,900,000,000 for fiscal

20 year 2002;

21 ‘‘(ii) For fiscal year 2003 and each

22 succeeding fiscal year, the amount speci23 fied is the product of the following:
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1 ‘‘(I) The amount specified in this

2 subparagraph for the immediately pre3 ceding fiscal year.

4 ‘‘(II) 1.00 plus the percentage (if

5 any) by which the average of the

6 Consumer Price Index (as defined in

7 section 1(f)(5) of the Internal Reve8 nue Code of 1986) for the most recent

9 12-month period for which such infor10 mation is available exceeds that for

11 the previous 12-month period.

12 ‘‘(III) 1.00 plus the percentage

13 change (if any) in the participation

14 rate required in section 488.

15 ‘‘(IV) 1.00 plus the percentage

16 change in the non-exempt adult recipi17 ent caseload for the most recent quar18 ter for which information is available,

19 compared to that caseload for the

20 same calendar quarter in the previous

21 year.

22 ‘‘(D) BASE ALLOTMENT TO STATES.—

23 From the amount specified in subparagraph (C)

24 for a fiscal year, the Secretary shall first allot

25 to each eligible State an amount equal to the
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1 amount paid to the State pursuant to section

2 403(a)(3) for administration of the State pro3 gram under part A in fiscal year 1995.

4 ‘‘(E) ALLOTMENT OF REMAINDER TO

5 STATES.—

6 ‘‘(i) From the amount specified in

7 subparagraph (C) for a fiscal year remain8 ing after application of subparagraph (D),

9 the Secretary shall allot to each State an

10 amount bearing the same ratio to such re11 mainder as the average monthly number of

12 non-exempt adult recipients (as defined in

13 clause (ii)) in the State in the preceding

14 fiscal year bears to the average monthly

15 number of such recipients in all eligible

16 States for such preceding year.

17 ‘‘(ii) For purposes of this subpara18 graph, the term ‘non-exempt adult recipi19 ent’ in the case of any State means an in20 dividual other than a dependent child (un21 less such child is the custodial parent of

22 another dependent child)—

23 ‘‘(I) whose needs are met (in

24 whole or in part) with assistance pro-
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1 vided under the State plan approved

2 under this part, and

3 ‘‘(II) who is required to partici4 pate in a program under part F, G, or

5 H.

6 ‘‘(iii) For purposes of clause (ii), the

7 term ‘dependent child’ means a needy

8 child—

9 ‘‘(I) who has been deprived of pa10 rental support or care by reason of

11 the death, continued absence from the

12 home (other than absence occasioned

13 solely by reason of the performance of

14 active duty in the uniformed services

15 of the United States), or physical or

16 mental incapacity of a parent, and

17 who is living with his father, mother,

18 grandfather, grandmother, brother,

19 sister, stepfather, stepmother, step20 brother, stepsister, uncle, aunt, first

21 cousin, nephew, or niece, in a place of

22 residence maintained by one or more

23 of such relatives as the relative’s own

24 home, and

25 ‘‘(II) who is—
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1 ‘‘(aa) under the age of

2 eighteen, or

3 ‘‘(bb) at the option of the

4 State, under the age of nineteen

5 and a full-time student in a sec6 ondary school (or in the equiva7 lent level of vocational or tech8 nical training), if, before age

9 nineteen, the child reasonably

10 may be expected to complete the

11 secondary school program (or

12 training).

13 ‘‘(iv) For purposes of clause (iii), the

14 term ‘relative with whom any dependent

15 child is living’ means the individual who is

16 one of the relatives specified in clause (iii)

17 and with whom the child is living (within

18 the meaning of such subsection) in a place

19 of residence maintained by the individual

20 (alone or together with any one or more of

21 the other relatives so specified) as the rel22 ative’s own home.

23 ‘‘(F) AMOUNTS FOR INELIGIBLE PARTICI24 PANTS.—Not more than 10 percent of the

25 amount payable to a State under this para-
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1 graph for a calendar quarter may be for ex2 penditures made during the quarter with re3 spect to program participants who are not eligi4 ble for assistance under the State plan ap5 proved under this part.

6 ‘‘(3) EMERGENCY ASSISTANCE.—

7 ‘‘(A) For purposes of paragraph

8 (2)(B)(i)(III), the term ‘emergency assistance

9 to needy families with children’ means any of

10 the items specified in subparagraph (B), fur11 nished for a period not in excess of 30 days in

12 any 12-month period, in the case of a needy

13 child under the age of 21 who is (or, within

14 such period as may be specified by the Sec15 retary, has been) living with any of the relatives

16 specified in paragraph (2)(E)(iii) in a place of

17 residence maintained by one or more of such

18 relatives as the relative’s own home, but only

19 where—

20 ‘‘(i) such child is without available re21 sources,

22 ‘‘(ii) the payments, care, or services

23 involved are necessary to avoid destitution

24 of such child or to provide living arrange25 ments in a home for such child, and
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1 ‘‘(iii) the destitution or need for living

2 arrangements did not arise because the

3 child or relative refused without good cause

4 to accept employment or training for em5 ployment.

6 ‘‘(B) For the purposes of subparagraph

7 (A), the items specified include—

8 ‘‘(i) money payments, payments in

9 kind, or such other payments as the State

10 agency may specify with respect to, or

11 medical care or any other type of remedial

12 care recognized under State law (for which

13 the individual is not entitled to medical as14 sistance under the State plan under title

15 XIX) on behalf of, such child or any other

16 member of the household in which he is liv17 ing, and

18 ‘‘(ii) services the Secretary may speci19 fy,

20 but the term does not include benefits or serv21 ices provided to children in the juvenile justice

22 system.

23 ‘‘(4) PERFORMANCE BONUS.—

24 ‘‘(A) IN GENERAL.—The Secretary, in con25 sultation with State and local government offi-
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•HR 3612 IH

1 cials and other interested persons, shall develop

2 a system of performance measures and per3 formance bonuses that rewards States that op4 erate programs established under parts F, G,

5 and H that are effective in moving recipients of

6 assistance under the State plan approved under

7 this part into employment.

8 ‘‘(B) ALLOCATION FORMULA.—

9 ‘‘(i) IN GENERAL.—Not later than

10 January 1, 1997, the Secretary, in con11 sultation with State and local government

12 officials and other interested persons, shall

13 develop and publish in the Federal Reg14 ister a formula for allocating the limitation

15 amount specified in subparagraph (E) for

16 the performance bonus fund for a fiscal

17 year, based on the effectiveness of State

18 programs established under parts F, G,

19 and H in moving recipients of assistance

20 under the State plan under this part into

21 employment in the preceding fiscal year,

22 including those who remain employed for

23 greater periods of time. In each fiscal year

24 specified in subparagraph (E), a State

25 shall be entitled to receive payments equal
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1 to the limitation allocated to such State

2 under the formula developed by the Sec3 retary under this clause.

4 ‘‘(ii) FACTORS TO BE CONSIDERED.—

5 In developing the allocation formula under

6 clause (i), the Secretary shall take into

7 consideration factors that affect a State’s

8 ability to achieve a given level of employ9 ment of recipients, such as—

10 ‘‘(I) the proportion of families

11 who are at greatest risk of long-term

12 welfare dependency, or who have re13 mained unemployed for long periods

14 of time; and

15 ‘‘(II) the unemployment condi16 tions of each State.

17 ‘‘(C) ANNUAL COMPLIANCE REPORTS.—

18 Each State shall submit to the Secretary an19 nual reports on the effectiveness of its program

20 under part F based on the performance meas21 ures established under subparagraph (A).

22 ‘‘(D) USE OF PAYMENTS.—Bonus pay23 ments under this paragraph shall be used for

24 the purposes allowable under subsection

25 (a)(2)(B)(i).
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1 ‘‘(E) LIMITATION AMOUNT SPECIFIED.—

2 For purposes of the allocation formula under

3 subparagraph (B), the limitation amount speci4 fied in this subparagraph is—

5 ‘‘(i) $100,000,000 for fiscal year 1997

6 rates, payable in FY 1998;

7 ‘‘(ii) $100,000,000 for fiscal year

8 1998 rates, payable in FY 1999;

9 ‘‘(iii) $200,000,000 for fiscal year

10 1999 rates, payable in FY 2000;

11 ‘‘(iv) $200,000,000 for fiscal year

12 2000 rates, payable in FY 2001; and

13 ‘‘(v) $200,000,000 for fiscal year

14 2001 rates, payable in FY 2002.

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

16 The method of computing and paying amounts pursuant

17 to this section is as follows:

18 ‘‘(1) The Secretary, prior to the beginning of

19 each quarter, shall estimate the amount to be paid

20 to the State for the quarter under subsection (a),

21 the estimate to be based on—

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

23 its estimate of the amount to be expended in

24 the quarter in accordance with each provision of

25 subsection (a) and stating the amounts appro-
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•HR 3612 IH

1 priated or made available by the State and its

2 political subdivisions for such expenditures in

3 the quarter, and if the sum of those amounts

4 is less than the State’s proportionate share of

5 the total sum of such estimated expenditures,

6 the source or sources from which the difference

7 is expected to be derived;

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

9 children in the State; and

10 ‘‘(C) such other information as the Sec11 retary may find necessary.

12 ‘‘(2) The Secretary of Health and Human Serv13 ices shall then certify to the Secretary of the Treas14 ury the amount so estimated—

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

16 be, by any sum by which the Secretary of

17 Health and Human Services finds that the esti18 mate for any prior quarter was greater or less

19 than the amount which should have been paid

20 to the State for such quarter;

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

22 pro rata share to which the Federal Govern23 ment is equitably entitled, as determined by the

24 Secretary of Health and Human Services, of

25 the net amount recovered during any prior
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1 quarter by the State or any political subdivision

2 thereof with respect to temporary employment

3 assistance furnished under the State plan; and

4 ‘‘(C) reduced by such amount as is nec5 essary to provide the appropriate reimburse6 ment to the Federal Government that the State

7 is required to make under section 457 out of

8 that portion of child support collections retained

9 by the State pursuant to such section, except

10 that such increases or reductions shall not be

11 made to the extent that such sums have been

12 applied to make the amount certified for any

13 prior quarter greater or less than the amount

14 estimated by the Secretary of Health and

15 Human Services for such prior quarter.

16 ‘‘(c) METHOD OF PAYMENT.—The Secretary of the

17 Treasury, through the Fiscal Service of the Department

18 of the Treasury and prior to audit or settlement by the

19 General Accounting Office, shall pay to the State, at the

20 time or times fixed by the Secretary of Health and Human

21 Services, the amount so certified.

22 ‘‘SEC. 414. QUALITY ASSURANCE, DATA COLLECTION, AND

23 REPORTING SYSTEM.

24 ‘‘(a) QUALITY ASSURANCE.—

25 ‘‘(1) IN GENERAL.—In order—
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•HR 3612 IH

1 ‘‘(A) to improve the accuracy of payments

2 of temporary employment assistance and wages

3 under work programs under parts F, G, and H,

4 to assess the accuracy of data reported by each

5 State relating to its work programs and to its

6 implementation of the time limits established by

7 section 402(c)(2),

8 ‘‘(B) to determine whether participation

9 standards under section 488(a) have been met,

10 ‘‘(C) to assess the effectiveness of the

11 State’s program by applying the performance

12 standards developed under section 413(a)(4),

13 and

14 ‘‘(D) to serve such other purposes as the

15 Secretary finds appropriate for a performance

16 measurement system, the Secretary shall estab17 lish and operate a quality assurance system to

18 secure the accurate data needed to measure

19 performance, identify areas in which corrective

20 action is necessary, and determine the amount

21 (if any) of the disallowance required to be re22 paid to the Secretary because of erroneous aid

23 payments made by the State. A quality assur24 ance system shall be developed based upon a

25 collaborative effort involving the Secretary, the
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1 States and other interested parties, and shall

2 include quantifiable program outcomes related

3 to self sufficiency in the categories of welfare4 to-work, payment accuracy, and child support.

5 ‘‘(2) MODIFICATIONS TO SYSTEM.—As consid6 ered necessary, but not more often than every 2

7 years, the Secretary, in consultation with the States

8 and other interested parties, shall make appropriate

9 changes in the design and administration of the

10 quality assurance system, including changes in

11 benchmarks, measures, and data collection or sam12 pling procedures.

13 ‘‘(b) DATA COLLECTION AND REPORTING.—

14 ‘‘(1) IN GENERAL.—The State plan shall pro15 vide for a quarterly report to the Secretary regard16 ing the data described in paragraphs (2) and (3)

17 and such additional data as the Secretary deter18 mines is needed for the quality assurance system.

19 The data collection and reporting system under this

20 subsection shall promote accountability, continuous

21 improvement, and integrity in the State programs

22 for temporary employment assistance and Work

23 First.

24 ‘‘(2) DISAGGREGATED DATA.—The State shall

25 collect the following data items on a monthly basis
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•HR 3612 IH

1 from disaggregated case records of applicants for

2 and recipients of temporary employment assistance

3 from the previous month:

4 ‘‘(A) The age of adults and children (in5 cluding pregnant women).

6 ‘‘(B) Marital or familial status of cases:

7 married (2-parent family), widowed, divorced,

8 separated, or never married; or child living with

9 other adult relative.

10 ‘‘(C) The gender, race, educational attain11 ment, work experience, disability status (wheth12 er the individual is seriously ill, incapacitated,

13 or caring for a disabled or incapacitated child)

14 of adults.

15 ‘‘(D) The amount of cash assistance and

16 the amount and reason for any reduction in

17 such assistance. Any other data necessary to

18 determine the timeliness and accuracy of bene19 fits and welfare diversions.

20 ‘‘(E) Whether any member of the family

21 receives benefits under any of the following:

22 ‘‘(i) Any housing program.

23 ‘‘(ii) The program under the Food

24 Stamp Act of 1977.
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1 ‘‘(iii) The program under the Head

2 Start Act.

3 ‘‘(iv) Any job training program.

4 ‘‘(F) The number of months since the most

5 recent application for assistance under the plan.

6 ‘‘(G) The total number of months for

7 which assistance has been provided to the fami8 lies under the plan.

9 ‘‘(H) The employment status, hours

10 worked, and earnings of individuals while re11 ceiving assistance, whether the case was closed

12 due to employment, and other data needed to

13 determine the work performance rate.

14 ‘‘(I) Status in Work First and workfare,

15 including the number of hours an individual

16 participated and the component in which the in17 dividual participated.

18 ‘‘(J) The number of individuals in the as19 sistance unit and their relationship to the

20 youngest child. Nonrecipients in the household

21 and the relationship of each to the youngest

22 child.

23 ‘‘(K) Citizenship status.

24 ‘‘(L) Shelter arrangement.
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1 ‘‘(M) Unearned income (not including tem2 porary employment assistance), such as child

3 support, and assets.

4 ‘‘(N) The number of children who have a

5 parent who is deceased, incapacitated, or unem6 ployed.

7 ‘‘(O) Geographic location.

8 ‘‘(3) AGGREGATED DATA.—The State shall col9 lect the following data items on a monthly basis

10 from aggregated case records of applicants for and

11 recipients of temporary employment assistance from

12 the previous month:

13 ‘‘(A) The number of adults receiving as14 sistance.

15 ‘‘(B) The number of children receiving as16 sistance.

17 ‘‘(C) The number of families receiving as18 sistance.

19 ‘‘(D) The number of assistance units who

20 had grants reduced or terminated and the rea21 son for the reduction or termination, including

22 sanction, employment, and exceeding the time

23 limit for assistance.
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1 ‘‘(E) The number of applications for as2 sistance; the number approved and the number

3 denied and the reason for denial.

4 ‘‘(4) LONGITUDINAL STUDIES.—The State shall

5 submit selected data items for a cohort of individ6 uals who are tracked over time. This longitudinal

7 sample shall be used for selected data items de8 scribed in paragraphs (2) and (3), as determined ap9 propriate by the Secretary.

10 ‘‘(c) ADDITIONAL DATA.—The report required by

11 subsection (b) for a fiscal year quarter also shall include

12 the following:

13 ‘‘(1) REPORT ON USE OF FEDERAL FUNDS TO

14 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—A

15 statement of—

16 ‘‘(A) the percentage of the Federal funds

17 paid to the State under Section 413 for the fis18 cal year quarter and used to carry out parts F

19 and G or H that are used to cover administra20 tive costs or overhead; and

21 ‘‘(B) the total amount of State funds that

22 are used to cover such costs or overhead.

23 ‘‘(2) REPORT ON STATE EXPENDITURES ON

24 PROGRAMS FOR NEEDY FAMILIES.—A statement of

25 the total amount expended by the State during the
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1 fiscal year quarter on programs for needy families,

2 with the amount spent on the program under this

3 part, and the purposes for which such amount was

4 spent, separately stated.

5 ‘‘(3) REPORT ON NONCUSTODIAL PARENTS PAR6 TICIPATING IN WORK ACTIVITIES.—The number of

7 noncustodial parents in the State who participated

8 in work activities during the fiscal year quarter.

9 ‘‘(4) REPORT ON CHILD SUPPORT COL10 LECTED.—The total amount of child support col11 lected by the State agency administering the State

12 plan under part D on behalf of a family receiving as13 sistance under this part.

14 ‘‘(5) REPORT ON TRANSITIONAL SERVICES.—

15 The total amount expended by the State for provid16 ing transitional services to families that have ceased

17 to receive assistance under this part because of in18 creased hours of, or increased income from, employ19 ment, together with a description of such services.

20 ‘‘(d) COLLECTION PROCEDURES.—The Secretary

21 shall provide case sampling plans and data collection pro22 cedures as considered necessary to make statistically valid

23 estimates of plan performance.

24 ‘‘(e) VERIFICATION.—The Secretary shall develop

25 and implement procedures for verifying the quality of the
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•HR 3612 IH

1 data submitted by the State, and shall provide technical

2 assistance, funded by the compliance penalties imposed

3 under section 412, if such data quality falls below accept4 able standards.

5 ‘‘SEC. 415. COMPILATION AND REPORTING OF DATA.

6 ‘‘(a) CURRENT PROGRAMS.—The Secretary, on the

7 basis of the Secretary’s review of the reports received from

8 the States under section 414, shall compile such data as

9 the Secretary believes necessary, and from time to time,

10 publish the findings as to the effectiveness of the programs

11 developed and administered by the States under this part.

12 The Secretary annually shall report to the Congress on

13 the programs developed and administered by each State

14 under this part.

15 ‘‘(b) RESEARCH, DEMONSTRATION AND EVALUA16 TION.—For each fiscal year beginning with fiscal year

17 1996, from the appropriation account providing funds for

18 grants to States for activities funded under section

19 413(a)(1), the Secretary may reserve for obligation, or

20 transfer to other accounts funding research activities, an

21 amount not to exceed 0.19 percent of the total amount

22 paid to States in the previous fiscal year for activities

23 under section 413(a)(1), and may use the reserved

24 amounts to pay costs of the following types of research,

25 demonstrations, and evaluations:
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1 ‘‘(1) STATE-INITIATED RESEARCH.—States may

2 apply for grants to cover up to 90 percent of the

3 costs of self-evaluations of programs under State

4 plans approved under this part.

5 ‘‘(2) DEMONSTRATIONS.—

6 ‘‘(A) IN GENERAL.—-The Secretary may

7 implement and evaluate demonstrations of inno8 vative and promising strategies to—

9 ‘‘(i) improve child well-being through

10 reductions in illegitimacy, teen pregnancy,

11 welfare dependency, homelessness, and

12 poverty;

13 ‘‘(ii) test promising strategies by non14 profit and for-profit institutions to increase

15 employment, earnings, child support pay16 ments, and self-sufficiency with respect to

17 temporary employment assistance clients

18 under State plans; and

19 ‘‘(iii) foster the development of child

20 care.

21 ‘‘(B) ADDITIONAL PARAMETERS.—Dem22 onstrations implemented under this para23 graph—
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•HR 3612 IH

1 ‘‘(i) may provide one-time capital

2 funds to establish, expand, or replicate

3 programs;

4 ‘‘(ii) may test performance-based

5 grant-to-loan financing in which programs

6 meeting performance targets receive grants

7 while programs not meeting such targets

8 repay funding on a pro-rated basis; and

9 ‘‘(iii) should test strategies in multiple

10 States and types of communities.

11 ‘‘(3) FEDERAL EVALUATIONS.—

12 ‘‘(A) IN GENERAL.—The Secretary shall

13 conduct research on the effects, benefits, and

14 costs of different approaches to operating wel15 fare programs, including an implementation

16 study based on a representative sample of

17 States and localities, documenting the policies

18 adopted, how such policies were implemented,

19 the types and mix of services provided, and

20 such other factors as the Secretary considers

21 appropriate.

22 ‘‘(B) RESEARCH ON RELATED ISSUES.—

23 The Secretary also shall conduct research on is24 sues related to the purposes of this part, such

25 as strategies for moving welfare recipients into
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1 the workforce quickly, reducing teen preg2 nancies and out-of-wedlock births, and provid3 ing adequate child care.

4 ‘‘(C) STATE REIMBURSEMENT.—The Sec5 retary may reimburse a State for any research6 related costs incurred pursuant to research con7 ducted under this paragraph.

8 ‘‘(D) USE OF RANDOM ASSIGNMENT.—

9 Evaluations authorized under this paragraph

10 should use random assignment to the maximum

11 extent feasible and appropriate.

12 ‘‘(c) STUDY BY THE CENSUS BUREAU.

13 ‘‘(1) IN GENERAL.—The Bureau of the Census

14 shall expand the Survey of Income and Program

15 Participation as necessary to obtain such informa16 tion as will enable interested persons to evaluate the

17 impact of the amendments made by the Work First

18 and Personal Responsibility Act of 1996 on a ran19 dom national sample of recipients of assistance

20 under State programs funded under this part and

21 (as appropriate) other low-income families, and in

22 doing so, shall pay particular attention to the issues

23 of out-of-wedlock birth, welfare dependency, the be24 ginning and end of welfare spells, and the causes of

25 repeat welfare spells.
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1 ‘‘(2) APPROPRIATION.—For each of fiscal years

2 1996, 1997, 1998, 1999, 2000, 2001, and 2002,

3 from the appropriation account providing funds for

4 grants to States for activities funded under section

5 413(a)(1), the Secretary shall transfer to the Bu6 reau of the Census $10,000,000 to carry out para7 graph (1). Such funds transferred to the Bureau of

8 the Census shall remain available for obligation by

9 the Bureau of the Census until expended.

10 ‘‘SEC. 416. COLLECTION OF OVERPAYMENTS FROM FED11 ERAL TAX REFUNDS.

12 ‘‘(a) IN GENERAL.—Upon receiving notice from a

13 State agency administering a plan approved under this

14 part that a named individual has been overpaid under the

15 State plan approved under this part, the Secretary of the

16 Treasury shall determine whether any amounts as refunds

17 of Federal taxes paid are payable to such individual, re18 gardless of whether such individual filed a tax return as

19 a married or unmarried individual. If the Secretary of the

20 Treasury finds that any such amount is payable, the Sec21 retary shall withhold from such refunds an amount equal

22 to the overpayment sought to be collected by the State

23 and pay such amount to the State agency.
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1 ‘‘(b) REGULATIONS.—The Secretary of the Treasury

2 shall issue regulations, approved by the Secretary of

3 Health and Human Services, that provide—

4 ‘‘(1) that a State may only submit under sub5 section (a) requests for collection of overpayments

6 with respect to individuals—

7 ‘‘(A) who are no longer receiving tem8 porary employment assistance under the State

9 plan approved under this part,

10 ‘‘(B) with respect to whom the State has

11 already taken appropriate action under State

12 law against the income or resources of the indi13 viduals or families involved; and

14 ‘‘(C) to whom the State agency has given

15 notice of its intent to request withholding by

16 the Secretary of the Treasury from the income

17 tax refunds of such individuals;

18 ‘‘(2) that the Secretary of the Treasury will

19 give a timely and appropriate notice to any other

20 person filing a joint return with the individual whose

21 refund is subject to withholding under subsection

22 (a); and

23 ‘‘(3) the procedures that the State and the Sec24 retary of the Treasury will follow in carrying out

25 this section which, to the maximum extent feasible
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1 and consistent with the specific provisions of this

2 section, will be the same as those issued pursuant to

3 section 464(b) applicable to collection of past-due

4 child support.

5 ‘‘SEC. 417. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

6 ‘‘The programs under this title shall be administered

7 by an Assistant Secretary for Family Support within the

8 Department of Health and Human Services, who shall be

9 appointed by the President, by and with the advice and

10 consent of the Senate, and who shall be in addition to any

11 other Assistant Secretary of Health and Human Services

12 provided for by law. If an individual is the Assistant Sec13 retary for Children and Families on the day before the

14 enactment of this Act, that individual shall become the

15 Assistant Secretary for Family Support.’’.

16 SEC. 103. CONFORMING AMENDMENTS RELATING TO COL17 LECTION OF OVERPAYMENTS.

18 (a) Section 6402 of the Internal Revenue Code of

19 1986 (relating to authority to make credits or refunds)

20 is amended—

21 (1) in subsection (a), by striking ‘‘(c) and (d)’’

22 and inserting ‘‘(c), (d), and (e)’’;

23 (2) by redesignating subsections (e) through (i)

24 as subsections (f) through (j), respectively; and
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1 (3) by inserting after subsection (d) the follow2 ing:

3 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

4 IV–A OF THE SOCIAL SECURITY ACT.—The amount of

5 any overpayment to be refunded to the person making the

6 overpayment shall be reduced (after reductions pursuant

7 to subsections (c) and (d), but before a credit against fu8 ture liability for an internal revenue tax) in accordance

9 with section 416 of the Social Security Act (concerning

10 recovery of overpayments to individuals under State plans

11 approved under part A of title IV of such Act).’’.

12 (b) Paragraph (10) of section 6103(l) of the Internal

13 Revenue Code of 1986 is amended—

14 (1) by striking ‘‘(c) or (d)’’ each place it ap15 pears and inserting ‘‘(c), (d), or (e)’’; and

16 (2) by adding at the end of subparagraph (B)

17 the following new sentence; ‘‘Any return information

18 disclosed with respect to section 6402(e) shall only

19 be disclosed to officers and employees of the State

20 agency requesting such information.’’.

21 (c) The matter preceding subparagraph (A) of section

22 6103(p)(4) of such Code is amended—

23 (1) by striking ‘‘(10),’’ before ‘‘(11)’’ and

24 (2) by inserting ‘‘(10),’’ after ‘‘(9),’’.
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1 (d) Section 552a(a)(8)(B)(iv)(III) of title 5, United

2 States Code, is amended by striking ‘‘section 464 or 1137

3 of the Social Security Act’’ and inserting ‘‘section 416,

4 464, or 1137 of the Social Security Act’’.

5 SEC. 104. TERRITORIES.

6 (a) LIMITATIONS ON FEDERAL PAYMENTS.—Section

7 1108(a)(2) and (3) of the Act is amended to read as fol8 lows:

9 ‘‘(2) for payment to the Virgin Islands shall not

10 exceed—

11 ‘‘(A) $2,800,000 with respect to fiscal

12 years 1994, 1995, and 1996, and

13 ‘‘(B) $3,500,000 or, if greater, such

14 amount adjusted by the CPI (as prescribed in

15 subsection (f)) for fiscal year 1997 and each

16 fiscal year thereafter; and

17 ‘‘(3) for payment to Guam shall not exceed—

18 ‘‘(A) $3,800,000 with respect to fiscal year

19 1994, 1995, and 1996, and

20 ‘‘(B) $4,750,000 or, if greater, such

21 amount adjusted by the CPI (as prescribed in

22 subsection (f)), for fiscal year 1997 and each

23 fiscal year thereafter.’’.
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1 (b) CPI ADJUSTMENT.—Section 1108 of the Act is

2 amended by adding at the end the following new sub3 section:

4 ‘‘(f) For purposes of subsection (a), an amount is ‘ad5 justed by the CPI’ for months in a calendar year by mul6 tiplying that amount by the ratio of the Consumer Price

7 Index as prepared by the Department of Labor for—

8 ‘‘(1) the third quarter of the preceding calendar

9 year, to

10 ‘‘(2) the third quarter of calendar year 1996,

11 and rounding the product, if not a multiple of

12 $10,000, to the nearer multiple of $10,000.’’.

13 SEC. 105. EFFECTIVE DATES.

14 (a)(1) IN GENERAL.—Except as provided in para15 graph (2), the amendments made by sections 102 and 104

16 of this Act are effective with respect to calendar quarters

17 beginning on or after October 1, 1996.

18 (2)(A) Funds that would be available for obligation

19 in fiscal year 1996 under section 415 of the Social Secu20 rity Act (as amended by this Act) are available upon en21 actment.

22 (B) Amendments made by section 103 of this Act are

23 effective upon enactment.

24 (b) SPECIAL RULE.—In the case of a State that the

25 Secretary of Health and Human Services determines re-
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1 quires State legislation (other than legislation appropriat2 ing funds) in order to meet the requirements imposed by

3 the amendments made by this subtitle, the State shall not

4 be regarded as failing to comply with those requirements

5 before the first day of the first calendar quarter beginning

6 after the close of the first regular session of the State leg7 islature that begins after the date of enactment of this

8 Act. For purposes of this paragraph, in the case of a State

9 that has a 2-year legislative session, each year of the ses10 sion shall be treated as a separate regular session of the

11 State legislature. Such a State, however, shall be subject

12 to the funding provisions in section 413 of the Social Secu13 rity Act (as amended by this Act) on and after October

14 1, 1996.

15 Subtitle B—Make Work Pay

16 SEC. 111. TRANSITIONAL MEDICAID BENEFITS.

17 (a) PERMANENT EXTENSION OF AUTHORITY.—Sub18 section (f) of section 1925 of the Social Security Act (42

19 U.S.C. 1396r-6(f)) is repealed.

20 (b) EFFECTIVE DATE.—The repeal made by sub21 section (a) applies to calendar quarters beginning on or

22 after October 1, 1997, without regard to whether final

23 regulations to carry out the repeal have been promulgated

24 by that date.
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1 SEC. 112. NOTICE OF AVAILABILITY REQUIRED TO BE PRO2 VIDED TO APPLICANTS AND FORMER RECIPI3 ENTS OF TEMPORARY EMPLOYMENT ASSIST4 ANCE, FOOD STAMPS, AND MEDICAID.

5 (a) TEMPORARY EMPLOYMENT ASSISTANCE.—Sec6 tion 406, as added by section 102 of this Act, is amended

7 by adding at the end the following:

8 ‘‘(i) NOTICE OF AVAILABILITY OF EITC.—The State

9 plan shall provide that the State agency shall provide writ10 ten notice of the existence and availability of the earned

11 income credit under section 32 of the Internal Revenue

12 Code of 1986 to—

13 ‘‘(1) any individual who applies for assistance

14 under the State plan, upon receipt of the applica15 tion; and

16 ‘‘(2) any recipient of assistance under the State

17 plan under this part (including any recipient of as18 sistance under the plan in effect before the effective

19 date of the Work First and Personal Responsibility

20 Act of 1996) whose assistance is terminated, in the

21 notice of termination of benefits.’’.

22 (b) FOOD STAMPS.—Section 11(e) of the Food

23 Stamp Act of 1977 (7 U.S.C. 2020(e)), as amended by

24 sections 323(b), 330(c), and 364(1)(C) and (D) of this

25 Act, is amended—
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1 (1) in paragraph (24) by striking ‘‘and’’ at the

2 end;

3 (2) in paragraph (25) by striking the period at

4 the end and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (25) the fol6 lowing:

7 ‘‘(26) that whenever a household applies for

8 food stamp benefits, and at other times the Sec9 retary considers appropriate, the State agency shall

10 provide to each member of such household notice

11 of—

12 ‘‘(A) the existence of the earned income

13 tax credit under section 32 of the Internal Rev14 enue Code of 1986; and

15 ‘‘(B) the fact that such credit may be ap16 plicable to such member.’’.

17 (c) The second sentence of section 5(a) of the Food

18 Stamp Act of 1977 (7 U.S.C. 2014(a) is amended by—

19 (1) striking ‘‘plan approved’’ and inserting

20 ‘‘program funded’’; and

21 (2) inserting before ‘‘, supplemental security in22 come’’ the following ‘‘that limits receipt of benefits

23 to households whose gross income, as defined by the

24 State, does not exceed the poverty line, as described

25 in subsection (c), by more than 30 per cent’’.
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1 (d) MEDICAID.—Section 1902(a) (42 U.S.C.

2 1396a(a)) is amended—

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

4 (61);

5 (2) by striking the period at the end of para6 graph (62) and inserting ‘‘; and’’; and

7 (3) by inserting after paragraph (62) the fol8 lowing new paragraph:

9 ‘‘(63) provide that the State shall provide notice

10 of the existence and availability of the earned income

11 tax credit under section 32 of the Internal Revenue

12 Code of 1986 to each individual applying for medical

13 assistance under the State plan and to each individ14 ual whose eligibility for medical assistance under the

15 State plan is terminated.’’.

16 SEC. 113. ADVANCE PAYMENT OF EARNED INCOME TAX

17 CREDIT THROUGH STATE DEMONSTRATION

18 PROGRAMS.

19 (a) IN GENERAL.—Section 3507 of the Internal Rev20 enue Code of 1986 (relating to the advance payment of

21 the earned income tax credit) is amended by adding at

22 the end the following:

23 ‘‘(g) STATE DEMONSTRATIONS.—

24 ‘‘(1) IN GENERAL.—In lieu of receiving earned

25 income advance amounts from an employer under
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1 subsection (a), a participating resident shall receive

2 advance earned income payments from a responsible

3 State agency pursuant to a State Advance Payment

4 Program that is designated pursuant to paragraph

5 (2).

6 ‘‘(2) DESIGNATIONS.—

7 ‘‘(A) IN GENERAL.—From among the

8 States submitting proposals satisfying the re9 quirements of paragraph (3), the Secretary (in

10 consultation with the Secretary of Health and

11 Human Services and the Secretary of Agri12 culture) may designate not more than 4 State

13 Advance Payment Demonstrations. These

14 States may operate demonstrations in areas

15 that include, in the aggregate, no more than 10

16 percent of the total number of households par17 ticipating in the program under the Food

18 Stamp program in the immediately preceding

19 fiscal year. Administrative costs of a State in

20 conducting a demonstration under this section

21 may be included for matching under section

22 413(a)(2) of the Social Security Act.

23 ‘‘(B) WHEN DESIGNATION MAY BE

24 MADE.—Any designation under this paragraph
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1 shall be made no later than December 31,

2 1998.

3 ‘‘(C) PERIOD FOR WHICH DESIGNATION IS

4 IN EFFECT.—

5 ‘‘(i) IN GENERAL.—Designations

6 made under this paragraph shall be effec7 tive for advance earned income payments

8 made after December 31, 1998, and before

9 January 1, 2002.

10 ‘‘(ii) SPECIAL RULES.—

11 ‘‘(I) REVOCATION OF DESIGNA12 TIONS.—The Secretary may revoke

13 any designation made under this

14 paragraph if the Secretary determines

15 that the State is not complying sub16 stantially with the proposal described

17 in paragraph (3) submitted by the

18 State.

19 ‘‘(II) AUTOMATIC TERMINATION

20 OF DESIGNATIONS.—Any failure by a

21 State to comply with the reporting re22 quirements described in paragraphs

23 (3)(F) and (3)(G) shall have the ef24 fect of immediately terminating the

25 designation under this paragraph and
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1 rendering paragraph (5)(A)(ii) inap2 plicable to subsequent payments.

3 ‘‘(3) PROPOSALS.—No State may be designated

4 under paragraph (2) unless the State’s proposal for

5 such designation—

6 ‘‘(A) identifies the responsible State agen7 cy,

8 ‘‘(B) describes how and when the advance

9 earned income payments will be made by that

10 agency, including a description of any other

11 State or Federal benefits with which such pay12 ments will be coordinated,

13 ‘‘(C) describes how the State will obtain

14 the information on which the amount of ad15 vance earned income payments made to each

16 participating resident will be determined in ac17 cordance with paragraph (4),

18 ‘‘(D) describes how State residents who

19 will be eligible to receive advance earned income

20 payments will be selected, notified of the oppor21 tunity to receive advance earned income pay22 ments from the responsible State agency, and

23 given the opportunity to elect to participate in

24 the program,
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1 ‘‘(E) describes how the State will verify, in

2 addition to receiving the certifications and

3 statement described in paragraph (7)(D)(iv),

4 the eligibility of participating residents for the

5 earned income tax credit,

6 ‘‘(F) commits the State to furnishing to

7 each participating resident, by January 31 of

8 each year a written statement showing—

9 ‘‘(i) the name and taxpayer identifica10 tion number of the participating resident

11 and by January 31 the amounts paid to

12 each participating resident, and

13 ‘‘(ii) the total amount of advance

14 earned income payments made to the par15 ticipating resident during the prior cal16 endar year,

17 ‘‘(G) commits the State to furnishing to

18 the Secretary by December 1 of each year a

19 written statement showing the name and tax20 payer identification number of each participat21 ing resident, and by January 31 the amounts

22 paid to each participating resident,

23 ‘‘(H) commits the State to treat any ad24 vance earned income payments as described in

25 paragraph (5) and any repayments of excessive
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1 advance earned income payments as described

2 in paragraph (6),

3 ‘‘(I) commits the State to assess the devel4 opment and implementation of its State Ad5 vance Payment Program, including an agree6 ment to share its findings and lessons with

7 other interested States in a manner to be de8 scribed by the Secretary, and

9 ‘‘(J) is submitted to the Secretary on or

10 before June 30, 1998.

11 ‘‘(4) AMOUNT AND TIMING OF ADVANCE

12 EARNED INCOME PAYMENTS.—

13 ‘‘(A) AMOUNT.—

14 ‘‘(i) IN GENERAL.—The method for

15 determining the amount of advance earned

16 income payments made to each participat17 ing resident shall conform to the fullest ex18 tent possible with the provisions of sub19 section (c).

20 ‘‘(ii) SPECIAL RULE.—A State may,

21 at its election, apply the rules of subsection

22 (c)(2)(B) by substituting ‘between 60 per23 cent and 75 percent of the credit percent24 age in effect under section 32(b)(1) for an

25 individual with the corresponding number
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1 of qualifying children’ for ‘60 percent of

2 the credit percentage in effect under sec3 tion 32(b)(1) for such an eligible individual

4 with 1 qualifying child’ in clause (i) and

5 ‘the same percentage (as applied in clause

6 (i))’ for ‘60 percent’ in clause (ii).

7 ‘‘(B) TIMING.—The frequency of advance

8 earned income payments may be determined on

9 the basis of the payroll periods of participating

10 residents, on a single statewide schedule, or on

11 any other reasonable basis prescribed by the

12 State in its proposal; however, in no event may

13 advance earned income payments be made to

14 any participating resident less frequently than

15 on a calendar-quarter basis.

16 ‘‘(5) PAYMENTS TO BE TREATED AS PAYMENTS

17 OF WITHHOLDING AND FICA TAXES.—

18 ‘‘(A) IN GENERAL.—For purposes of this

19 title, advance earned income payments during

20 any calendar quarter—

21 ‘‘(i) shall neither be treated as a pay22 ment of compensation nor be included in

23 gross income, and

24 ‘‘(ii) shall be treated as made out of—
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1 ‘‘(I) amounts required to be de2 ducted by the State and withheld for

3 the calendar quarter by the State

4 under section 3401 (relating to wage

5 withholding),

6 ‘‘(II) amounts required to be de7 ducted for the calendar quarter under

8 section 3102 (relating to FICA em9 ployee taxes), and

10 ‘‘(III) amounts of the taxes im11 posed on the State for the calendar

12 quarter under section 3111 (relating

13 to FICA employer taxes), as if the

14 State had paid to the Secretary, on

15 the day on which payments are made

16 to participating residents, an amount

17 equal to such payments.

18 ‘‘(B) IF ADVANCE PAYMENTS EXCEED

19 TAXES DUE.—If for any calendar quarter the

20 aggregate amount of advance earned income

21 payments made by the responsible State agency

22 under a State Advance Payment Program ex23 ceeds the sum of the amounts referred to in

24 subparagraph (A)(ii) (without regard to para25 graph (6)(A)), each such advance earned in-
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1 come payment shall be reduced by an amount

2 which bears the same ratio to such excess as

3 such advance earned income payment bears to

4 the aggregate amount of all such advance

5 earned income payments.

6 ‘‘(6) STATE REPAYMENT OF EXCESSIVE AD7 VANCE EARNED INCOME PAYMENTS.—

8 ‘‘(A) IN GENERAL.—Notwithstanding any

9 other provision of law, in the case of an exces10 sive advance earned income payment a State

11 shall be treated as having deducted and with12 held under section 3401 (relating to wage with13 holding), and as being required to pay to the

14 United States, the repayment amount during

15 the repayment calendar quarter.

16 ‘‘(B) EXCESSIVE ADVANCE EARNED IN17 COME PAYMENT.—For purposes of this section,

18 the term ‘excessive advance income payment’

19 means that portion of any advance earned in20 come payment that, when combined with other

21 advance earned income payments previously

22 made to the same participating resident during

23 the same calendar year, exceeds the amount of

24 earned income tax credit to which that partici-
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1 pating resident is entitled under section 32 for

2 that year.

3 ‘‘(C) REPAYMENT AMOUNT.—For purposes

4 of this subsection, the term ‘repayment amount’

5 means an amount equal to 50 percent of the ex6 cess of—

7 ‘‘(i) excessive advance earned income

8 payments made by a State during a par9 ticular calendar year, over

10 ‘‘(ii) the sum of—

11 ‘‘(I) 4 percent of all advance

12 earned income payments made by the

13 State during that calendar year, and

14 ‘‘(II) the excessive advance

15 earned income payments made by the

16 State during that calendar year that

17 have been collected from participating

18 residents by the Secretary.

19 ‘‘(D) REPAYMENT CALENDAR QUARTER.—

20 For purposes of this subsection, the term ‘re21 payment calendar quarter’ means the second

22 calendar quarter of the third calendar year be23 ginning after the calendar year in which an ex24 cessive earned income payment is made.
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1 ‘‘(7) DEFINITIONS.—For purposes of this sub2 section—

3 ‘‘(A) STATE ADVANCE PAYMENT PRO4 GRAM.—The term ‘State Advance Payment

5 Program’ means the program described in a

6 proposal submitted for designation under para7 graph (1) and designated by the Secretary

8 under paragraph (2).

9 ‘‘(B) RESPONSIBLE STATE AGENCY.—The

10 term ‘responsible State agency’ means the sin11 gle State agency that will be making the ad12 vance earned income payments to residents of

13 the State who elect to participate in a State Ad14 vance Payment Program.

15 ‘‘(C) ADVANCE EARNED INCOME PAY16 MENTS.—The term ‘advance earned income

17 payments’ means an amount paid by a respon18 sible State agency to residents of the State pur19 suant to a State Advance Payment Program.

20 ‘‘(D) PARTICIPATING RESIDENT.—The

21 term ‘participating resident’ means an individ22 ual who—

23 ‘‘(i) is a resident of a State that has

24 in effect a designated State Advance Pay25 ment Program,
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1 ‘‘(ii) makes the election described in

2 paragraph (3)(D) pursuant to guidelines

3 prescribed by the State,

4 ‘‘(iii) certifies to the State the number

5 of qualifying children the individual has,

6 and

7 ‘‘(iv) provides to the State the certifi8 cations and statement described in sub9 sections (b)(1), (b)(2), (b)(3), and (b)(4)

10 (except that for purposes of this clause,

11 the term ‘any employer’ shall be sub12 stituted for ‘another employer’ in sub13 section (b)(3)), along with any other infor14 mation required by the State.’’.

15 (b) TECHNICAL ASSISTANCE.—The Secretaries of the

16 Treasury and Health and Human Services shall jointly en17 sure that technical assistance is provided to State Advance

18 Payment Programs and that these programs are rigor19 ously evaluated.

20 (c) ANNUAL REPORTS.—The Secretary shall issue

21 annual reports detailing the extent to which—

22 (1) residents participate in the State Advance

23 Payment Programs,

24 (2) participating residents file Federal and

25 State tax returns,
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1 (3) participating residents report accurately the

2 amount of the advance earned income payments

3 made to them by the responsible State agency dur4 ing the year, and

5 (4) recipients of excessive advance earned in6 come payments repay those amounts.

7 The report shall also contain an estimate of the amount

8 of advance earned income payments made by each respon9 sible State agency but not reported on the tax returns of

10 a participating resident and the amount of excessive ad11 vance earned income payments.

12 (d) AUTHORIZATION OF APPROPRIATIONS.—For pur13 poses of providing technical assistance described in sub14 section (b), preparing the reports described in subsection

15 (c), and providing grants to States in support of des16 ignated State Advance Payment Programs, there are au17 thorized to be appropriated in advance to the Secretary

18 of the Treasury and the Secretary of Health and Human

19 Services a total of $1,400,000 for fiscal years 1999

20 through 2001.

21 SEC. 114. CONSOLIDATED CHILD CARE AND DEVELOPMENT

22 BLOCK GRANT.

23 (a) PURPOSE.—It is the purpose of this section to

24 amend the Child Care and Development Block Grant Act

25 of 1990 (referred to in this section as the ‘‘CCDBG Act’’)
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1 and to consolidate other child care programs into the pro2 gram under that Act, in order to—

3 (1) eliminate program fragmentation and create

4 a seamless system of high quality child care that al5 lows for continuity of care for children as parents

6 move from welfare to work;

7 (2) provide for parental choice among high

8 quality child care programs; and

9 (3) increase the availability of high quality af10 fordable child care in order to promote self-suffi11 ciency and support working families.

12 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

13 658B of the CCDBG Act (42 U.S.C. 9858) is amended

14 to read as follows:

15 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘(a) AUTHORIZATION OF DISCRETIONARY APPRO17 PRIATIONS OF BLOCK GRANT FUNDS.—For the purpose

18 of providing child care services for eligible children

19 through the awarding of grants to States under this sub20 chapter (other than the grants awarded under subsection

21 (b)) by the Secretary, there are authorized to be appro22 priated $2,000,000,000 for fiscal year 1996 and such

23 sums as may be necessary for fiscal years 1997 through

24 2002.
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1 ‘‘(b) ENTITLEMENT TO STATES.—For the purpose of

2 providing child care services for eligible children, in addi3 tion to grants from appropriations authorized under sub4 section (a), there are authorized to be appropriated and

5 States shall be entitled to receive matching grants under

6 section 658Ob in amounts not to exceed in total

7 $1,555,000,000 for fiscal year 1997, $1,615,000,000 for

8 fiscal year 1998, $1,800,000,000 for fiscal year 1999,

9 $2,200,000,000 for fiscal year 2000, $2,475,000,000 for

10 fiscal year 2001, and $2,525,000,000 for fiscal year

11 2002.’’.

12 (c) USE OF BLOCK GRANT FUNDS.—

13 (1) SERVICES TO FAMILIES IN WELFARE-TO14 WORK TRANSITION.—Section 658E(c)(3)(B) of the

15 CCDBG Act (42 U.S.C. 9858c(c)(3)(B)) is amend16 ed—

17 (A) by redesignating clauses (i) and (ii) as

18 subclauses (I) and (II), respectively, and re19 aligning the margins accordingly;

20 (B) by striking ‘‘Subject’’ and inserting

21 the following:

22 ‘‘(i) IN GENERAL.—Subject’’; and

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

24 clause:
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1 ‘‘(ii) SPECIAL RULES FOR FAMILIES

2 SEEKING TO BECOME OR BECOMING INDE3 PENDENT OF TEMPORARY EMPLOYMENT

4 ASSISTANCE.—

5 ‘‘(I) IN GENERAL.—Each State

6 agency referred to in section 658D

7 shall guarantee child care in accord8 ance with this Act—

9 ‘‘(aa) for any individual who

10 is participating in an education

11 or training activity (including

12 participation in a program estab13 lished under part F, G, or H of

14 title IV of the Social Security

15 Act) if the State agency admin16 istering the program under part

17 F of that title approves the activ18 ity and determines that the indi19 vidual is participating satisfac20 torily in the activity;

21 ‘‘(bb) for each family with a

22 needy child (as defined in section

23 402(a)(1) of the Social Security

24 Act) requiring such care, to the

25 extent that such care is deter-
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1 mined by the State agency to be

2 necessary to permit an individual

3 in the family to accept employ4 ment or remain employed, includ5 ing in a community service job

6 under part F, G, or H of title IV

7 of the Social Security Act; and

8 ‘‘(cc) to the extent that the

9 State agency determines that

10 such care is necessary for the

11 employment of an individual, if

12 the family of which the individual

13 is a member has ceased to receive

14 assistance under the State plan

15 approved under part A of title IV

16 of the Social Security Act by rea17 son of increased hours of, or in18 come from, such employment, for

19 12 months after the last month

20 for which the family received as21 sistance described in such para22 graph.’’.

23 (2) SET-ASIDES FOR QUALITY AND EXPAN24 SION.—Section 658E(c)(3)(C) of the CCDBG Act
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1 (42 U.S.C. 9858c(c)(3)(C)) is amended by striking

2 ‘‘25 percent’’ and inserting ‘‘10 percent’’.

3 (3) SUPPORT OF WELFARE-TO-WORK.—

4 (A) IN GENERAL.—Section 658E(c) of the

5 CCDBG Act (42 U.S.C. 9858c(c)) is amended

6 by adding the following:

7 ‘‘(6) SIGNIFICANT EXPENDITURES TO SUPPORT

8 WELFARE-TO-WORK TRANSITION.—The State plan

9 shall provide that the State will use significant por10 tions of amounts provided for child care services for

11 each of the following:

12 ‘‘(A) Families containing an individual re13 ceiving assistance under a State plan approved

14 under part A of title IV of the Social Security

15 Act and participating in education, job search,

16 job training, work, or workforce programs;

17 ‘‘(B) Families containing an individual

18 who—

19 ‘‘(i) has ceased to receive assistance

20 under the temporary employment assist21 ance program under part A of title IV of

22 the Social Security Act as a result of in23 creased hours of, or increased income

24 from, employment, and no longer qualifies

25 for child care assistance on the basis of re-
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1 ceiving such assistance under part A of

2 title IV of the Social Security Act; and

3 ‘‘(ii) the State determines requires

4 such child care assistance in order to con5 tinue such employment.

6 ‘‘(C) Families containing an individual

7 who—

8 ‘‘(i) is not described in subparagraph

9 (A) or (B); and

10 ‘‘(ii) has an annual income for a fiscal

11 year below 75 percent of the State median

12 income.’’.

13 (B) CONFORMING AMENDMENTS.—

14 (i) Section 658E(c)(3)(B)(i)(I) of the

15 CCDBG Act, as redesignated by paragraph

16 (1), is amended by inserting ‘‘consistent

17 with paragraph (6)’’ after ‘‘child care serv18 ices’’.

19 (ii) Subsection 658F(a) is amended by

20 striking ‘‘Nothing’’ and inserting ‘‘Except

21 as provided in section 658E(c)(B)(ii),

22 nothing’’.

23 (4) SLIDING FEE SCALE.—Section 658E(c)(5)

24 of the CCDBG Act (42 U.S.C. 9858c(c)(5)) is
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1 amended by inserting ‘‘described in subparagraphs

2 (B) and (C) of paragraph (6)’’ after ‘‘families’’.

3 (d) LIMITED ENTITLEMENT; ALLOCATION.—

4 (1) IN GENERAL.—The CCDBG Act (42 U.S.C.

5 9858) is amended by adding after section 6580 the

6 following new section:

7 ‘‘SEC. 6580B. ALLOCATION OF LIMITATION ON ENTITLE8 MENT.

9 ‘‘(a) Each State shall be entitled to payment from

10 the Secretary of an amount equal to the lesser of:

11 ‘‘(1) the Federal medical assistance percentage

12 (as defined in section 1905(b) or, as applicable, in

13 section 1118 of the Social Security Act) of the

14 amount of expenditures made by the State in provid15 ing child care services pursuant to this subchapter,

16 other than expenditures of funds appropriated under

17 subsection 658B(a); or

18 ‘‘(2) the limitation determined under subsection

19 (b).

20 ‘‘(b) LIMITATION ON ENTITLEMENT.—Subject to the

21 redistribution procedures under subsection (c), the limita22 tion for a State for a fiscal year under this paragraph shall

23 be an amount equal to the product of—

24 ‘‘(1) the sum of the total amounts of Federal

25 payments for fiscal year 1994 to the State under—
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1 ‘‘(A) section 402(g)(3)(A) of the Social Se2 curity Act (as that section was in effect before

3 October 1, 1995) for amounts expended for

4 child care pursuant to paragraph (1) of such

5 subsection;

6 ‘‘(B) section 403(l)(1)(A) of that Act (as

7 so in effect) for amounts expended for child

8 care pursuant to section 402(g)(1)(A) of that

9 Act (as so in effect), in the case of a State with

10 respect to which section 1108 of that Act ap11 plies; and

12 ‘‘(C) section 403(n) of that Act (as so in

13 effect) for child care services pursuant to sec14 tion 402(i) of that Act;

15 divided by the total amount of such Federal pay16 ments to all States for fiscal year 1994; and

17 ‘‘(2) the total limitation for all States under

18 subsection 658B(b) for such fiscal year, reduced by

19 the amount reserved under subsection (d).

20 ‘‘(c) ADJUSTMENT OF LIMITATION; REALLOT21 MENT.—

22 ‘‘(1) AVAILABILITY OF UNUSED AMOUNTS FOR

23 REALLOTMENT.—If the Secretary determines that a

24 State will not use the full limitation amount avail-
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1 able to it for a fiscal year (as calculated under sub2 section (b)), the Secretary shall—

3 ‘‘(A) reduce that State’s limitation under

4 subsection (b) by the amount the Secretary de5 termines the State will not use; and

6 ‘‘(B) increase by no more than the amount

7 of reductions under subparagraph (A) the limi8 tations available to States under subsection (b)

9 that have requested an increase in their limita10 tions.

11 ‘‘(2) REALLOTMENT FORMULA.—Limitation in12 creases available under paragraph (1) shall be made

13 available to each State requesting an increase in its

14 limitation amount that bears the same ratio to the

15 total available increase in limitations as the State’s

16 historical expenditures described in subsection (b)(1)

17 bear to the sum of such historical expenditures for

18 all States requesting an increase in their limitations.

19 ‘‘(d) AMOUNTS RESERVED FOR INDIAN TRIBES.—

20 The Secretary shall reserve not more than 3 percent of

21 the amount appropriated under section 658B(b) each fis22 cal year for payments to Indian tribes and tribal organiza23 tions with applications approved under section 658Oa(c).

24 The amounts reserved under the prior sentence shall be

25 available to make grants to or enter into contracts with
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1 Indian tribes or tribal organizations consistent with sec2 tion 6580a(c), without a requirement of matching funds

3 by the Indian tribes or tribal organizations.

4 ‘‘(e) SAME TREATMENT AS ALLOTMENTS.—Amounts

5 paid to a State or Indian tribe under subsections (a) and

6 (d) shall be subject to the same requirements under this

7 subchapter as amounts paid from the allotment under sec8 tion 658Oa, except that section 658J(c) shall not apply.’’.

9 (2) CONFORMING AMENDMENTS.—

10 (A) Section 658O of the CCDBG Act (42

11 U.S.C. 9858m) is amended—

12 (i) by striking ‘‘SEC. 6580.’’ and in13 serting ‘‘SEC. 6580a. Discretionary Appro14 priations;’’;

15 (ii) in subsection (a)—

16 (I) in paragraph (1), by striking

17 ‘‘this subchapter’’ and inserting ‘‘sec18 tion 658B(a)’’; and

19 (II) in paragraph (2), by striking

20 658B’’ and inserting ‘‘658B(a)’’; and

21 (iii) in subsection (b)(1), by striking

22 ‘‘section 658B’’ and inserting ‘‘section

23 658B(a)’’.
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1 (B) Subsection 658J(c) of the CCDBG Act

2 (42 U.S.C. 9858m) is amended by striking

3 ‘‘658O’’ and inserting ‘‘658Oa’’.

4 (e) IMPROVING QUALITY.—

5 (1) INCREASE IN REQUIRED FUNDING.—Section

6 658G of the CCDBG Act (42 U.S.C. 9858e) is

7 amended by striking ‘‘not less than 20 percent of

8 the’’.

9 (2) QUALITY IMPROVEMENT INCENTIVE INITIA10 TIVE.—Section 658G of the CCDBG Act (42 U.S.C.

11 9858e) is further amended—

12 (A) by adding at the end the following new

13 paragraphs:

14 ‘‘(6) BEFORE- AND AFTER-SCHOOL ACTIVI15 TIES.—Increasing the availability of before- and

16 after-school care.

17 ‘‘(7) INFANT CARE.—Increasing the availability

18 of child care for infants under the age of 18 months.

19 ‘‘(8) NONTRADITIONAL WORK HOURS.—Increas20 ing the availability of child care between the hours

21 of 5:00 p.m. and 8:00 a.m.’’;

22 (B) by striking ‘‘A State’’ and inserting

23 ‘‘(a) IN GENERAL.—A State’’; and

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

25 subsection:
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1 ‘‘(b) QUALITY IMPROVEMENT INCENTIVE INITIA2 TIVE.—

3 ‘‘(1) IN GENERAL.—The Secretary shall estab4 lish a child care quality improvement incentive ini5 tiative to make funds available to States that dem6 onstrate progress in the implementation of—

7 ‘‘(A) innovative teacher training programs

8 such as the Department of Defense staff devel9 opment and compensation program for child

10 care personnel; or

11 ‘‘(B) enhanced child care quality standards

12 and licensing and monitoring procedures.

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

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

15 the Secretary shall reserve not to exceed

16 $25,000,000 for each such fiscal year to carry out

17 this subsection.’’.

18 (f) PAYMENTS.—

19 (1) Section 658H of the CCDBG Act (42

20 U.S.C. 9858f) is repealed.

21 (2) Section 658J(a) of the CCDBG Act (42

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

23 ‘‘(a) IN GENERAL.—Subject to the availability of ap24 propriations under Section 658B(a) and the limitations

25 and other requirements under 658Ob, a State that has
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1 an application approved by the Secretary under section

2 658E shall be entitled to a payment in a fiscal year in

3 an amount equal to the sum of its allotment under section

4 658Oa for that year and the amount determined for that

5 State for that fiscal year under 658Ob(a).’’.

6 (g) ANNUAL REPORT.—Section 658K(a) of the

7 CCDBG Act (42 U.S.C. 9858i) is amended by adding

8 after paragraph (6) the following new paragraph:

9 ‘‘(7) specifying the total amount expended by

10 the State for child care under part

11 658E(c)(3)(B)(ii), and describing the types of child

12 care provided, such as child care provided in the

13 case of a family that has ceased to receive assistance

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

15 because of increased hours of, or increased income

16 from, employment; or child care provided in the case

17 of a family that is not receiving assistance under

18 that part but would be at risk of becoming eligible

19 for such assistance if child care was not provided.’’.

20 (h) PROGRAM REPEALS.—

21 (1) STATE DEPENDENT CARE GRANTS.—Sub22 chapter E of chapter 8 of subtitle A of title VI of

23 the Omnibus Budget Reconciliation Act of 1981 (42

24 U.S.C. 9871 et seq.) is repealed.
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1 (2) CHILD DEVELOPMENT ASSOCIATE SCHOLAR2 SHIP ASSISTANCE ACT.—The Child Development As3 sociate Scholarship Assistance Act of 1985 (42

4 U.S.C. 10901 et seq.) is repealed.

5 SEC. 115. EFFECTIVE DATES.

6 The amendments made by this subtitle are effective

7 with respect to calendar quarters beginning on or after

8 October 1, 1996.

9 Subtitle C—Work First

10 SEC. 121. WORK FIRST PROGRAM.

11 (a) ESTABLISHMENT AND OPERATION OF PRO12 GRAM.—Title IV (42 U.S.C. 601 et seq.) is amended by

13 striking part F and inserting the following:

14 ‘‘PART F—WORK FIRST PROGRAM

15 ‘‘SEC. 481. STATE ROLE.

16 ‘‘(a) PROGRAM REQUIREMENTS.—Each State that

17 operates a program under part A shall establish and oper18 ate a Work First program that meets the following re19 quirements:

20 ‘‘(1) OBJECTIVE.—The objective of the pro21 gram is for each program participant to find and

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

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

24 ‘‘(2) METHOD.—The method of the program is

25 to connect recipients of assistance under the State
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1 plan under part A with the private sector labor mar2 ket as soon as possible and offer them the support

3 and skills necessary to remain in the labor market.

4 Each component of the program should be per5 meated with an emphasis on employment and with

6 an understanding that minimum wage jobs are a

7 stepping stone to more highly paid employment. The

8 program shall provide recipients with education,

9 training, job search and placement, work

10 supplementation, temporary subsidized jobs, or such

11 other services as the State considers necessary to

12 help a recipient obtain private sector employment.

13 ‘‘(3) JOB CREATION.—The creation of jobs,

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

15 component of the program and shall be a priority for

16 each State office with responsibilities under the pro17 gram.

18 ‘‘(4) FORMS OF ASSISTANCE.—The State shall

19 provide assistance to participants in the program in

20 the form of education, training, job placement serv21 ices (including vouchers for job placement services),

22 work supplementation programs, temporary sub23 sidized job creation, job counseling, assistance in es24 tablishing microenterprises, or other services to pro-
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1 vide individuals with the support and skills necessary

2 to obtain and keep employment in the private sector.

3 ‘‘(5) MUTUAL RESPONSIBILITY PLANS.—

4 ‘‘(A) IN GENERAL.—The State agency

5 shall develop a mutual responsibility plan for

6 each program participant, which will be an indi7 vidualized comprehensive plan, developed by the

8 State agency and the participant, to move the

9 participant into a full-time unsubsidized job.

10 The agreement should detail the education,

11 training, or skills that the individual will be re12 ceiving to obtain a full-time unsubsidized job,

13 and the obligations of the individual.

14 ‘‘(B)(i) HOURS OF PARTICIPATION RE15 QUIREMENT.—The agreement shall provide that

16 the individual, except as provided in clause (ii),

17 shall participate in activities in accordance with

18 the agreement for—

19 ‘‘(I) not fewer than 20 hours per week

20 during fiscal years 1997 and 1998;

21 ‘‘(II) not fewer than 25 hours per

22 week during fiscal year 1999; and

23 ‘‘(III) not fewer than 30 hours per

24 week thereafter.
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1 ‘‘(ii) At the option of the State, a parent

2 of a child under age 6 may be required to par3 ticipate in such activities for fewer hours than

4 specified in clause (i) (but not fewer than 20

5 hours per week).

6 ‘‘(6) CASELOAD PARTICIPATION RATES.—The

7 program shall comply with section 488.

8 ‘‘(7) COMMUNITY SERVICE.—On and after the

9 date which is two years after the date of enactment

10 of this part, (unless the State plan under part A

11 specifically opts out of this provision) the State

12 agency shall require a parent or caretaker who—

13 ‘‘(A) is receiving assistance under part A,

14 and has received that assistance for three

15 months;

16 ‘‘(B) is not exempt from work require17 ments; and

18 ‘‘(C) is not participating in the programs

19 established under parts F, G, and H as deter20 mined under section 488, in community service

21 employment,

22 to participate in community service, with minimum

23 hours per week and tasks to be determined by the

24 State (and the State shall offer such employment to

25 the parent or caretaker).
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1 ‘‘(8) NONDISPLACEMENT IN WORK ACTIVI2 TIES.—

3 ‘‘(A) IN GENERAL.—A State program

4 under this part or under part G or H may not

5 be operated in a manner that results in—

6 ‘‘(i) the displacement of any currently

7 employed worker or position (including

8 partial displacement such as a reduction in

9 the hours of nonovertime work, wages, or

10 employment benefits), or the impairment

11 of an existing contract for services or a col12 lective bargaining agreement;

13 ‘‘(ii) the employment or assignment of

14 a participant or the filling of a position

15 when

16 ‘‘(I) any other individual is on

17 layoff from the same or an equivalent

18 position, or

19 ‘‘(II) the employer has termi20 nated the employment of a regular

21 employee or otherwise reduced its

22 workforce with the effect of filling the

23 vacancy so created with a participant

24 subsidized under the program under

25 this part or under part G or H; or
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1 ‘‘(iii) an infringement of the pro2 motional opportunity of a currently em3 ployed individual.

4 Funds available to carry out the program under

5 this part or under part G or H may not be used

6 to assist, promote, or deter union organizing.

7 ‘‘(B) ENFORCING NONDISPLACEMENT PRO8 TECTIONS.—

9 ‘‘(i) GRIEVANCE PROCEDURE.—Each

10 State shall establish and maintain a griev11 ance procedure for resolving complaints al12 leging violation of a prohibition or require13 ment of subparagraph (A). Such a proce14 dure shall include an opportunity for a

15 hearing. The procedure’s remedies shall in16 clude, but are not limited to, termination

17 or suspension of payments to the employer,

18 prohibition of the placement of the pro19 gram participant, reinstatement of an em20 ployee, and other relief to make an ag21 grieved employee whole.

22 ‘‘(ii) OTHER LAWS OR CONTRACTS.—

23 Nothing in clause (i) shall be construed to

24 prohibit a complainant from pursuing a

25 remedy authorized under another Federal,
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1 State, or local law or a contract or collec2 tive bargaining agreement for a violation of

3 a prohibition or requirement of subpara4 graph (A).

5 ‘‘(b) ANNUAL REPORTS.—

6 ‘‘(1) COMPLIANCE WITH PERFORMANCE MEAS7 URES.—Each State that operates a program under

8 this part shall submit to the Secretary annual re9 ports on its performance relative to the performance10 based measures established under section 413(a)(4).

11 ‘‘(2) COMPLIANCE WITH PARTICIPATION

12 RATES.—Each State that operates a program under

13 this part for a fiscal year shall submit to the Sec14 retary a report on the participation rate achieved by

15 the State for the fiscal year.

16 ‘‘SEC. 482. REVAMPED JOBS PROGRAM.

17 ‘‘A State that establishes a program under this part

18 may operate a program similar to the program known as

19 the ‘GAIN Program’ that has been operated by Riverside

20 County, California, under this Act in effect immediately

21 before the date this part (as amended by the Work First

22 and Personal Responsibility Act of 1996) first applies to

23 the State of California.
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1 ‘‘SEC. 483. USE OF PLACEMENT COMPANIES.

2 ‘‘(a) IN GENERAL.—A State that establishes a pro3 gram under this part may enter into contracts with private

4 companies (whether operated for profit or not for profit)

5 for the placement of participants in the program in posi6 tions of full-time employment, preferably in the private

7 sector, for wages sufficient to eliminate the need of such

8 participants for cash assistance.

9 ‘‘(b) REQUIRED CONTRACT TERMS.—Each contract

10 entered into under this section with a company shall meet

11 the following requirements:

12 ‘‘(1) PROVISION OF JOB READINESS AND SUP13 PORT SERVICES.—The contract shall require the

14 company to provide, to any program participant who

15 presents to the company a voucher issued under sub16 section (d), intensive personalized support and job

17 readiness services designed to prepare the individual

18 for employment and ensure the continued success of

19 the individual in employment.

20 ‘‘(2) PAYMENTS.—

21 ‘‘(A) IN GENERAL.—The contract shall

22 provide for payments to be made to the com23 pany with respect to each program participant

24 who presents to the company a voucher issued

25 under subsection (d).
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1 ‘‘(B) STRUCTURE.—The contract shall

2 provide for payment of the majority of the

3 amounts under the contract with respect to a

4 program participant after the company has

5 placed the participant in a position of full-time

6 employment and the participant has been em7 ployed in the position for such period of not less

8 than 5 months as the State deems appropriate.

9 ‘‘(c) COMPETITIVE BIDDING REQUIRED.—Contracts

10 under this section shall be awarded only after competitive

11 bidding.

12 ‘‘(d) VOUCHERS.—The State shall issue a voucher to

13 each program participant whose mutual responsibility plan

14 provides for the use of placement companies under this

15 section, indicating that the participant is eligible for the

16 services of such a company.

17 ‘‘SEC. 484. TEMPORARY SUBSIDIZED JOB CREATION.

18 ‘‘A State that establishes a program under this part

19 may establish a program similar to the program known

20 as ‘JOBS Plus’ that has been operated by the State of

21 Oregon under this Act in effect immediately before the

22 date this part (as amended by the Work First and Per23 sonal Responsibility Act of 1996) first applies to the State

24 of Oregon.
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1 ‘‘SEC. 485. MICROENTERPRISE.

2 ‘‘(a) GRANTS AND LOANS TO NONPROFIT ORGANIZA3 TIONS FOR THE PROVISION OF TECHNICAL ASSISTANCE,

4 TRAINING, AND CREDIT TO LOW-INCOME ENTRE5 PRENEURS.—A State that establishes a program under

6 this part may make grants and loans to nonprofit organi7 zations to provide technical assistance, training, and credit

8 to low-income entrepreneurs for the purpose of establish9 ing microenterprises.

10 ‘‘(b) MICROENTERPRISE DEFINED.—For purposes of

11 this section, the term ‘microenterprise’ means a commer12 cial enterprise which has 5 or fewer employees, 1 or more

13 of whom owns the enterprise.

14 ‘‘SEC. 486. WORK SUPPLEMENTATION PROGRAM.

15 ‘‘(a) IN GENERAL.—A State that establishes a pro16 gram under this part may institute a work

17 supplementation program under which the State, to the

18 extent it considers appropriate, may reserve sums that

19 would otherwise be payable under the State plan under

20 part A to participants in the program and use the sums

21 instead for the purpose of providing and subsidizing jobs

22 for the participants (as described in subsection (c)(3)(A)

23 and (B)).

24 ‘‘(b) STATE FLEXIBILITY.—

25 ‘‘(1) Nothing in this part, or in any State plan

26 approved under part A, shall be construed to prevent
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1 a State from operating (on such terms and condi2 tions and in such cases as the State may find to be

3 necessary or appropriate) a work supplementation

4 program in accordance with this section and section

5 484 (as in effect before the date this part (as

6 amended by the Work First and Personal Respon7 sibility Act of 1996) first applies to the State).

8 ‘‘(2) Notwithstanding any other provision of

9 law, a State may adjust the levels of the standards

10 of need under the State plan as the State determines

11 to be necessary and appropriate for carrying out a

12 work supplementation program under this section.

13 ‘‘(3) Notwithstanding any other provision of

14 law, a State operating a work supplementation pro15 gram under this section may provide that the need

16 standards in effect in those areas of the State in

17 which the program is in operation may be different

18 from the need standards in effect in the areas in

19 which the program is not in operation, and the State

20 may provide that the need standards for categories

21 of recipients may vary among such categories to the

22 extent the State determines to be appropriate on the

23 basis of ability to participate in the work

24 supplementation program.
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1 ‘‘(4) Notwithstanding any other provision of

2 law, a State may make such further adjustments in

3 the amounts of assistance provided under the plan

4 to different categories of recipients (as determined

5 under paragraph (3)) in order to offset increases in

6 benefits from needs-related programs (other than

7 the State plan approved under part A) as the State

8 determines to be necessary and appropriate to fur9 ther the purposes of the work supplementation pro10 gram.

11 ‘‘(5) In determining the amounts to be reserved

12 and used for providing and subsidizing jobs under

13 this section as described in subsection (a), the State

14 may use a sampling methodology.

15 ‘‘(6) Notwithstanding any other provision of

16 law, a State operating a work supplementation pro17 gram under this section may reduce or eliminate the

18 amount of earned income to be disregarded under

19 the State plan to the extent the State determines to

20 be necessary and appropriate to further the purposes

21 of the work supplementation program.

22 ‘‘(c) RULES RELATING TO SUPPLEMENTED JOBS.—

23 ‘‘(1) A work supplementation program operated

24 by a State under this section may require that any

25 individual who is an eligible individual (as deter-
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1 mined under paragraph (2)) shall take a supple2 mented job (as defined in paragraph (3)) to the ex3 tent that supplemented jobs are available under the

4 program. Payments by the State to individuals or to

5 employers under the work supplementation program

6 shall be treated as expenditures incurred by the

7 State for temporary employment assistance under

8 part A except as limited by subsection (d).

9 ‘‘(2) For purposes of this section, an eligible in10 dividual is an individual who is in a category which

11 the State determines should be eligible to participate

12 in the work supplementation program, and who

13 would, at the time of placement in the job involved,

14 be eligible for assistance under an approved State

15 plan if the State did not have a work

16 supplementation program in effect.

17 ‘‘(3) For purposes of this subsection, a supple18 mented job is—

19 ‘‘(A) a job provided to an eligible individ20 ual by the State or local agency administering

21 the State plan under part A; or

22 ‘‘(B) a job provided to an eligible individ23 ual by any other employer for which all or part

24 of the wages are paid by the State or local

25 agency.
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1 A State may provide or subsidize under the program any

2 job which the State determines to be appropriate.

3 ‘‘(d) COST LIMITATION.—The amount of the Federal

4 payment to a State under section 413 for expenditures in5 curred in making payments to individuals and employers

6 under a work supplementation program under this section

7 shall not exceed the amount which would otherwise be pay8 able under section 413 if the family of each individual em9 ployed in the State program under this section had re10 ceived the maximum amount of assistance payable under

11 the State plan under part A to such a family with no in12 come (without regard to adjustments under subsection

13 (b)) for the lesser of—

14 ‘‘(1) 9 months; or

15 ‘‘(2) the number of months in which the indi16 vidual was employed in the program.

17 ‘‘(e) RULES OF INTERPRETATION.—

18 ‘‘(1) This section shall not be construed as re19 quiring the State or local agency administering the

20 State plan under this part to provide employee sta21 tus to an eligible individual to whom the State or

22 local agency provides a job under the work

23 supplementation program (or with respect to whom

24 the State or local agency provides all or part of the

25 wages paid to the individual by another entity under
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1 the program), or as requiring any State or local

2 agency to require that an eligible individual filling a

3 job position provided by another entity under the

4 program be provided employee status by the entity

5 during the first 13 weeks the individual fills the po6 sition.

7 ‘‘(2) Wages paid under a work supplementation

8 program shall be considered to be earned income for

9 purposes of any provision of law.

10 ‘‘(f) PRESERVATION OF MEDICAID ELIGIBILITY.—

11 Any State that chooses to operate a work supplementation

12 program under this section shall provide that any individ13 ual who participates in the program, and any child or rel14 ative of the individual (or other individual) living in the

15 same household as the individual who would be eligible for

16 assistance under the State plan under part A if the State

17 did not have a work supplementation program, shall be

18 considered individuals receiving assistance under the State

19 plan under part A for purposes of eligibility for medical

20 assistance under the State plan approved under title XIX.

21 ‘‘SEC. 487. PARTICIPATION RULES.

22 A State that establishes a program under this part

23 may require any individual receiving assistance under the

24 State plan under part A to participate in the program,
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1 except for an individual described in section

2 402(c)(2)(C)(ii).

3 ‘‘SEC. 488. CASELOAD PARTICIPATION RATES.

4 ‘‘(a) REQUIREMENT.—A State that operates a pro5 gram under this part shall achieve a participation rate for

6 the following fiscal years of not less than the following

7 percentage:

‘‘Fiscal year: Percentage:

1997 ................................................................................................... 30

1998 ................................................................................................... 35

1999 ................................................................................................... 40

2000 ................................................................................................... 45

2001 ................................................................................................... 50

2002 ................................................................................................... 50

2003 or later ...................................................................................... 52

8 ‘‘(b) PARTICIPATION RATE DEFINED.—

9 ‘‘(1) IN GENERAL.—As used in this subsection,

10 the term ‘participation rate’ means, with respect to

11 a State and a fiscal year, an amount equal to—

12 ‘‘(A)(i) the average monthly number of

13 families receiving assistance that include an in14 dividual who, during the fiscal year, participate

15 in the State program established under this

16 part or part G or H; plus

17 ‘‘(ii) the average monthly number of fami18 lies receiving assistance that include an individ19 ual working in unsubsidized employment for the

20 number of hours specified in section

21 481(a)(5)(B); plus
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1 ‘‘(iii) the average monthly number of fami2 lies receiving assistance subject to a penalty de3 scribed in section 402(c)(1) but who have not

4 been subject to such a penalty for more than

5 three months within the preceding 12-month

6 period; divided by

7 ‘‘(B) the average monthly number of fami8 lies receiving assistance that include an individ9 ual not described in section 402(c)(2)(C)(ii) and

10 for whom a personal responsibility agreement is

11 in effect under section 403 during the fiscal

12 year.

13 ‘‘(2) SPECIAL RULE.—For each of the first six

14 months after an individual ceases to receive assist15 ance under a State plan approved under part A by

16 reason of having become employed in an

17 unsubsidized job, the individual shall be considered

18 to be participating in the State program established

19 under this part for the purposes of subparagraph

20 (A), and to be an adult recipient of such assistance

21 for the purposes of subparagraph (B).

22 ‘‘(c) STATE COMPLIANCE REPORTS.—Each State

23 that operates a program under this part for a fiscal year

24 shall submit to the Secretary a report on the participation

25 rate of the State for the fiscal year.
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1 ‘‘(d) EFFECT OF FAILURE TO MEET PARTICIPATION

2 RATES.—

3 ‘‘(1) IN GENERAL.—If a State reports that the

4 State has failed to achieve the participation rate re5 quired by subsection (a) for the fiscal year, the Sec6 retary may make recommendations for changes in

7 the State programs established under this part and

8 part G or H. The State may elect to follow such rec9 ommendations, and shall demonstrate to the Sec10 retary how the State will achieve the required par11 ticipation rates.

12 ‘‘(2) SECOND CONSECUTIVE FAILURE.—Not13 withstanding paragraph (1), if a State fails to

14 achieve the participation rate required by subsection

15 (a) for 2 consecutive fiscal years, the Secretary

16 may—

17 ‘‘(A) require the State to make changes in

18 the State programs established under this part

19 and part G or H; and

20 ‘‘(B) reduce by up to 5 percent the amount

21 otherwise payable to the State under section

22 413(a)(1).

23 ‘‘SEC. 489. FEDERAL ROLE.

24 ‘‘(a) APPROVAL OF STATE PLANS.—
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1 ‘‘(1) IN GENERAL.—Within 60 days after the

2 date a State submits to the Secretary a plan that

3 provides for the establishment and operation of a

4 Work First program that meets the requirements of

5 section 481, the Secretary shall approve the plan.

6 ‘‘(2) AUTHORITY TO EXTEND APPROVAL DEAD7 LINE.—The 60-day deadline established in para8 graph (1) with respect to a State may be extended

9 in accordance with an agreement between the Sec10 retary and the State.

11 ‘‘PART G—WORKFARE PROGRAM

12 ‘‘SEC. 490. ESTABLISHMENT AND OPERATION OF PROGRAM.

13 ‘‘(a) IN GENERAL.—A State that establishes a Work

14 First program under part F shall establish and carry out

15 either a workfare program that meets the requirements

16 of this part or a job placement voucher program under

17 part H.

18 ‘‘(b) OBJECTIVE.—The objective of the workfare pro19 gram is for each program participant to find and hold a

20 full-time unsubsidized paid job, and for this goal to be

21 achieved in a cost-effective fashion.

22 ‘‘(c) CASE MANAGEMENT TEAMS.—The State shall

23 assign to each program participant a case management

24 team that shall meet with the participant and assist the

25 participant to choose the most suitable workfare job under
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1 subsection (e), (f), or (g) and to eventually obtain a full2 time unsubsidized paid job.

3 ‘‘(d) PROVISION OF JOBS.—The State shall provide

4 each participant in the program with a community service

5 job that meets the requirements of subsection (e) or a sub6 sidized job that meets the requirements of subsection (f)

7 or (g).

8 ‘‘(e) COMMUNITY SERVICE JOBS.—

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graphs (2) and (3) and section 481(a)(5)(B)(ii),

11 each participant shall work for 20 hours per week

12 during fiscal years 1997 and 1998, not fewer than

13 25 hours per week during fiscal year 1999, and not

14 fewer than 30 hours thereafter in a community serv15 ice job, and shall be paid at a rate which is 100 per16 cent of the maximum amount of assistance that may

17 be provided under the State plan approved under

18 part A to a family of the same size and composition

19 with no income.

20 ‘‘(2) EXCEPTION.—

21 ‘‘(A) If the participant has obtained

22 unsubsidized part-time employment, the State

23 shall provide the participant with a part-time

24 community service job.
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1 ‘‘(B) If the State provides a participant a

2 part-time community service job under subpara3 graph (A), the State shall ensure that the par4 ticipant works for not fewer than the number of

5 hours specified in paragraph (1).

6 ‘‘(3) WAGES NOT CONSIDERED EARNED IN7 COME.—Wages paid under a workfare program shall

8 not be considered to be earned income for purposes

9 of any provision of law.

10 ‘‘(4) COMMUNITY SERVICE JOB DEFINED.—For

11 purposes of this section, the term ‘community serv12 ice job’ means—

13 ‘‘(A) a job provided to a participant by the

14 State administering the State plan under part

15 A; or

16 ‘‘(B) a job provided to a participant by any

17 other employer for which all or part of the

18 wages are paid by the State.

19 A State may provide or subsidize under the program any

20 job which the State determines to be appropriate.

21 ‘‘(f) TEMPORARY SUBSIDIZED JOB CREATION.—A

22 State that establishes a workfare program under this part

23 may establish a program under this Act similar to the pro24 gram operated by the State of Oregon known as ‘JOBS

25 Plus’.
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1 ‘‘(g) WORK SUPPLEMENTATION PROGRAM.—

2 ‘‘(1) IN GENERAL.—A State that establishes a

3 workfare program under this part may institute a

4 work supplementation program under which the

5 State, to the extent it considers appropriate, may re6 serve the sums that would otherwise be payable to

7 participants in the program as a community service

8 minimum wage and use the sums instead for the

9 purpose of providing and subsidizing private sector

10 jobs for the participants.

11 ‘‘(2) EMPLOYER AGREEMENT.—An employer

12 who provides a private sector job to a participant

13 under paragraph (1) shall agree to provide to the

14 participant an amount in wages equal to the poverty

15 threshold for a family of three.

16 ‘‘(h) JOB SEARCH REQUIREMENT.—The State shall

17 require each participant to spend a minimum of 5 hours

18 per week on activities related to securing unsubsidized

19 full-time employment in the private sector.

20 ‘‘(i) USE OF PLACEMENT COMPANIES.—A State that

21 establishes a workfare program under this part may enter

22 into contracts in accordance with section 483 with private

23 companies (whether operated for profit or not for profit)

24 for the placement of participants in the program in posi25 tions of full-time employment, preferably in the private
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1 sector, for wages sufficient to eliminate the need of such

2 participants for cash assistance.

3 ‘‘(j) MAXIMUM OF 3 COMMUNITY SERVICE JOBS.—

4 A program participant may not receive more than 3 com5 munity service jobs under the program.

6 ‘‘PART H—JOB PLACEMENT VOUCHER PROGRAM

7 ‘‘SEC. 495. JOB PLACEMENT VOUCHER PROGRAM.

8 ‘‘A State that is not operating a workfare program

9 under part G shall establish and operate a job placement

10 voucher program under this part that meets the following

11 requirements:

12 ‘‘(1) The program shall offer each program par13 ticipant a voucher which the participant may use to

14 obtain employment in the private sector.

15 ‘‘(2) An employer who receives a voucher issued

16 under the program from an individual may redeem

17 the voucher at any time after the individual has been

18 employed by the employer for 6 months, unless an19 other employee of the employer was displaced by the

20 employment of the individual.

21 ‘‘(3) Upon presentation of a voucher by an em22 ployer to the State agency responsible for the admin23 istration of the program, the State agency shall pay

24 to the employer an amount equal to 50 percent of

25 the total amount of assistance provided under the
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1 State plan under part A to the family of which the

2 individual is a member for the most recent 12

3 months for which the family was eligible for such as4 sistance.’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) Section 1108 of the Social Security Act (42

7 U.S.C. 1308) is amended—

8 (A) in subsection (a), by striking ‘‘or, in

9 the case of part A of title IV, section 403(k)’’;

10 and

11 (B) in subsection (d), by striking ‘‘(exclu12 sive of any amounts on account of services and

13 items to which, in the case of part A of such

14 title, section 403(k) applies)’’.

15 (2) Section 1902(a)(10)(A)(i)(I) of that Act (42

16 U.S.C. 1396a(a)(19)(A)(i)(I)) is amended—

17 (A) by striking ‘‘402(a)(37), 406(h), or’’;

18 and

19 (B) by striking ‘‘482(e)(6)’’ and inserting

20 ‘‘486(f)’’.

21 (3) Section 1928(a)(1) of that Act (42 U.S.C.

22 1396s(a)(1)) is amended by striking ‘‘482(e)(6)’’

23 and inserting ‘‘486(f)’’.

24 (c) INTENT OF THE CONGRESS.—The Congress in25 tends for State activities under section 484 of the Social
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1 Security Act (as added by section 121(a) of this Act) to

2 emphasize the use of the funds that would otherwise be

3 used to provide individuals with assistance under part A

4 of title IV of the Social Security Act to subsidize the wages

5 of such individuals in temporary jobs.

6 (d) SENSE OF THE CONGRESS.—It is the sense of

7 the Congress that States should focus the resources of the

8 program under part F of title IV of the Social Security

9 Act, as amended by this subtitle, on individuals who have

10 not attained 25 years of age in order to break the cycle

11 of welfare dependency.

12 (e) EFFECTIVE DATE.—This section takes effect Oc13 tober 1, 1996.

14 SEC. 122. REGULATIONS.

15 The Secretary of Health and Human Services shall

16 prescribe such regulations as may be necessary to imple17 ment the amendments made by this subtitle.

18 SEC. 123. APPLICABILITY TO STATES.

19 (a) STATE OPTION TO ACCELERATE APPLICABIL20 ITY.—If a State formally notifies the Secretary of Health

21 and Human Services that the State desires to accelerate

22 the applicability to the State of the amendments made by

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

24 after such earlier date as the State may select; provided,

25 that only funding otherwise provided for grants to States
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1 to carry out part F of title IV, as that part was in effect

2 on January 1, 1996, shall be available to States to carry

3 out parts F, G, and H of title IV before October 1, 1996.

4 (b) STATE OPTION TO DELAY APPLICABILITY UNTIL

5 WAIVERS EXPIRE.—The amendments made by this sub6 title, other than participation requirements under sections

7 481(a)(5)(B), 481(a)(6), and 488 of the Social Security

8 Act, shall not apply to areas in a State with respect to

9 which there is in effect a waiver issued under section 1115

10 of that Act for the State program established under part

11 A of title IV of that Act, until the waiver expires, if the

12 State formally notifies the Secretary of Health and

13 Human Services that the State desires to so delay such

14 effective date and the waiver’s terms and conditions have

15 been modified so that all cost comparisons reflect the

16 amendments made to part A of title IV of that Act. States

17 are subject to the funding provisions under parts A, F,

18 G, and H and the participation requirements under sec19 tions 481(a)(5)(B), 481(a)(6), and 488 of that Act.

20 SEC. 124. ONE TIME INCREASES IN WORK FIRST PROGRAM

21 FUNDS.

22 To the extent that the Congressional Budget Office

23 estimates that amendments made by subtitle A of this title

24 increase the sum of payments to States under section

25 413(a)(1) of the Social Security Act, title XIX of that Act,
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1 and the Food Stamp Act of 1977 (excluding: (1) any ef2 fects from limitations on funding for activities authorized

3 under section 413(a)(3) of the Social Security Act, as

4 amended by this Act, (2) any savings resulting from the

5 State option under section 402(d)(1)(C) of the Social Se6 curity Act, as amended by this Act, and (3) any savings

7 resulting from section 416 of the Social Security Act, as

8 amended by this Act) by less than:

9 $170,000,000 in FY 1997,

10 $405,000,000 in FY 1998,

11 $635,000,000 in FY 1999,

12 $785,000,000 in FY 2000,

13 $775,000,000 in FY 2001 or,

14 $825,000,000 in FY 2002

15 then the amount(s) in section 413(a)(2)(C) of the Social

16 Security Act for such fiscal year(s) shall be adjusted up17 ward by such difference(s).

18 Subtitle D—Pregnancy And Family

19 Stability

20 SEC. 131. SUPERVISED LIVING ARRANGEMENTS FOR MI21 NORS.

22 (a) IN GENERAL.—Section 402(c) of the Social Secu23 rity Act, as amended by section 102 of this Act, is amend24 ed by adding at the end the following:
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1 ‘‘(8) SUPERVISED LIVING ARRANGEMENTS FOR

2 MINORS.—

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

4 subparagraph (B), in the case of any individual

5 who is under age 18 and has never married,

6 and who has a needy child in his or her care

7 (or is pregnant and is eligible for temporary

8 employment assistance under the State plan)—

9 ‘‘(i) such individual may receive such

10 assistance for the individual and such child

11 (or for herself in the case of a pregnant

12 woman) only if such individual and child

13 (or such pregnant woman) reside in a

14 place of residence maintained by a parent,

15 legal guardian, or other adult relative of

16 such individual as such parent’s, guard17 ian’s, or adult relative’s own home; and

18 ‘‘(ii) such assistance (where possible)

19 shall be provided to the parent, legal

20 guardian, or other adult relative on behalf

21 of such individual and child; and

22 ‘‘(B) ALTERNATIVE APPROPRIATE AR23 RANGEMENTS.—

24 (i) In the case of an individual de25 scribed in clause (ii)—
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1 ‘‘(I) the State agency shall assist

2 such individual in locating an appro3 priate adult-supervised supportive liv4 ing arrangement, taking into consider5 ation the needs and concerns of the

6 individual, unless the State agency de7 termines that the individual’s current

8 living arrangement is appropriate, and

9 thereafter shall require that the indi10 vidual (and child, if any) reside in

11 such living arrangement as a condi12 tion of the continued receipt of assist13 ance under the plan (or in an alter14 native appropriate arrangement,

15 should circumstances change and the

16 current arrangement cease to be ap17 propriate), or

18 ‘‘(II) if the State agency is un19 able, after making diligent efforts, to

20 locate any such appropriate living ar21 rangement, the State agency shall

22 provide for comprehensive case man23 agement, monitoring, and other social

24 services consistent with the best inter25 ests of the individual (and child) while
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1 living independently (as determined by

2 the State agency).

3 ‘‘(ii) For purposes of clause (i), an in4 dividual is described in this clause if—

5 ‘‘(I) such individual has no par6 ent or legal guardian who is living and

7 whose whereabouts are known;

8 ‘‘(II) no living parent or legal

9 guardian of such individual allows the

10 individual to live in the home of such

11 parent or guardian;

12 ‘‘(III) the State agency deter13 mines that the physical or emotional

14 health of such individual or any needy

15 child of the individual would be jeop16 ardized if such individual and such

17 needy child lived in the same resi18 dence with such individual’s own par19 ent or legal guardian; or

20 ‘‘(IV) the State agency otherwise

21 determines (in accordance with regu22 lations issued by the Secretary) that it

23 is in the best interest of the needy

24 child to waive the requirement of sub-
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1 paragraph (A) with respect to such in2 dividual.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) takes effect in the same manner as the

5 amendment made by section 102 takes effect.

6 SEC. 132. NATIONAL CLEARINGHOUSE ON ADOLESCENT

7 PREGNANCY.

8 (a) IN GENERAL.—Title XX of the Social Security

9 Act (42 U.S.C. 1397–1397f), is amended by adding at the

10 end the following:

11 ‘‘SEC. 2008. NATIONAL CLEARINGHOUSE ON ADOLESCENT

12 PREGNANCY.

13 ‘‘(a) NATIONAL CLEARINGHOUSE ON ADOLESCENT

14 PREGNANCY.—

15 ‘‘(1) ESTABLISHMENT.—The Secretary shall es16 tablish, through grant or contract, a national center

17 for the collection and provision of programmatic in18 formation and technical assistance that relates to

19 adolescent pregnancy prevention programs, to be

20 known as the ‘National Clearinghouse on Adolescent

21 Pregnancy Prevention Programs’.

22 ‘‘(2) FUNCTIONS.—The national center estab23 lished under paragraph (1) shall serve as a national

24 information and data clearinghouse, and as a train25 ing, technical assistance, and material development
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1 source for adolescent pregnancy prevention pro2 grams including, but not limited to, abstinence pro3 grams. Such center shall—

4 ‘‘(A) develop and maintain a system for

5 disseminating information on all types of ado6 lescent pregnancy prevention programs, includ7 ing abstinence programs, and on the state of

8 adolescent pregnancy prevention program devel9 opment, including information concerning the

10 most effective model programs;

11 ‘‘(B) develop and sponsor a variety of

12 training institutes and curricula for adolescent

13 pregnancy prevention program staff, including

14 abstinence education;

15 ‘‘(C) identify model programs representing

16 the various types of adolescent pregnancy pre17 vention programs;

18 ‘‘(D) develop technical assistance materials

19 and activities to assist other entities in estab20 lishing and improving adolescent pregnancy

21 prevention programs, including abstinence edu22 cation;

23 ‘‘(E) develop networks of adolescent preg24 nancy prevention programs for the purpose of

25 sharing and disseminating information; and
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1 ‘‘(F) conduct such other activities as the

2 responsible Federal officials find will assist in

3 developing and carrying out programs or activi4 ties to reduce adolescent pregnancy.

5 ‘‘(b) FUNDING.—There are authorized to be appro6 priated $6 million for each of fiscal years 1997 through

7 2001 to carry out this section.’’.

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

9 this section become effective October 1, 1996.

10 SEC. 133. REQUIRED COMPLETION OF HIGH SCHOOL OR

11 OTHER TRAINING FOR TEENAGE PARENTS.

12 (a) IN GENERAL.—Section 403(b)(1)(D), as added

13 by section 102 of this Act, is amended—

14 (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and

15 (2) by adding at the end the following:

16 ‘‘(ii) in the case of a client who is a custo17 dial or expectant parent who is under age 18

18 (or age 19, at the option of the State), has not

19 successfully completed a high school education

20 (or its equivalent), and is required to partici21 pate in the Work First program (including an

22 individual who would otherwise be exempt from

23 participation in the program), shall provide

24 that—

25 ‘‘(I) such parent shall participate in—
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1 ‘‘(aa) educational activities di2 rected toward the attainment of a

3 high school diploma or its equivalent

4 on a full-time (as defined by the edu5 cational provider) basis; or

6 ‘‘(bb) an alternative educational

7 or training program on a full-time (as

8 defined by the provider) basis; and

9 ‘‘(II) child care will be provided in ac10 cordance with section 114 with respect to

11 the family under the Child Care and Devel12 opment Block Grant Act of 1990.’’.

13 (b) STATE OPTION TO PROVIDE ADDITIONAL INCEN14 TIVES AND PENALTIES TO ENCOURAGE TEEN PARENTS

15 TO COMPLETE HIGH SCHOOL AND PARTICIPATE IN

16 PARENTING ACTIVITIES.—

17 (1) STATE PLAN.—Section 403(b)(1)(D), as

18 amended by subsection (a) of this section, is amend19 ed further by adding at the end the following:

20 ‘‘(iii) at the option of the State, may

21 provide that the client who is a custodial

22 parent or pregnant woman who is under

23 age 19 (or age 21, at the option of the

24 State) shall participate in a program of

25 monetary incentives and penalties which—
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1 ‘‘(I) may, at the option of the

2 State, require full-time participation

3 by such custodial parent or pregnant

4 woman in secondary school or equiva5 lent educational activities, or partici6 pation in a course or program leading

7 to a skills certificate found appro8 priate by the State agency or

9 parenting education activities (or any

10 combination of such activities and sec11 ondary education);

12 ‘‘(II) shall require that the needs

13 of such custodial parent or pregnant

14 woman be reviewed and the program

15 assure that, either in the initial devel16 opment or revision of such individual’s

17 personal responsibility agreement,

18 there will be included a description of

19 the services that will be provided to

20 the client and the way in which the

21 program and service providers will co22 ordinate with the educational or skills

23 training activities in which the client

24 is participating;
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1 ‘‘(III) shall provide monetary in2 centives (to be treated as assistance

3 under the State plan) for more than

4 minimally acceptable performance of

5 required educational activities;

6 ‘‘(IV) shall provide penalties

7 (which may be those required by sec8 tion 402(c)(1)(C) or, with the ap9 proval of the Secretary, other mone10 tary penalties that the State finds will

11 better achieve the objectives of the

12 program) for less than minimally ac13 ceptable performance of required ac14 tivities;

15 ‘‘(V) shall provide that when a

16 monetary incentive is payable because

17 of the more than minimally acceptable

18 performance of required educational

19 activities by a custodial parent or

20 pregnant woman, the incentive be

21 paid directly to the individual, regard22 less of whether the State agency

23 makes payment of assistance under

24 the State plan directly to the individ25 ual; and
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1 ‘‘(VI) for purposes of any other

2 Federal or Federally assisted program

3 based on need, shall not consider any

4 monetary incentive paid under the

5 State plan as income in determining a

6 family’s eligibility for or amount of

7 benefits under such program, and if

8 assistance is reduced by reason of a

9 penalty under this clause, such other

10 program shall treat the family in11 volved as if no such penalty has been

12 applied.’’.

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

14 this section take effect in the same manner as the amend15 ment made by section 102 takes effect.

16 SEC. 134. SECOND CHANCE HOMES.

17 (a) IN GENERAL.—Section 402(c) of the Social Secu18 rity Act, as amended by sections 102 and 131 of this Act,

19 is amended by adding after paragraph (8):

20 ‘‘(9) SECOND CHANCE HOMES.—

21 ‘‘(A) IN GENERAL.—States may use funds

22 available under section 413(a)(2)(B) for the es23 tablishment, operation, and support of second

24 chance group homes for custodial parents under
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1 age 18 (or age 19, at the option of the State)

2 and their children.

3 ‘‘(B) DEFINITION OF SECOND CHANCE

4 HOME.—For purposes of this section, the term

5 ‘second chance home’ means an entity that pro6 vides custodial parents under age 18 (or age

7 19, at the option of the State) and their chil8 dren with a supportive and supervised living ar9 rangement in which the parents are required to

10 learn parenting skills, including child develop11 ment, family budgeting, health and nutrition,

12 and other skills to promote their long-term eco13 nomic independence and the well-being of their

14 children. A second chance home also may serve

15 as a network center for other supportive serv16 ices that are available in the community.

17 ‘‘(C) TECHNICAL ASSISTANCE.—A State

18 may use a portion of the funds described in

19 subparagraph (A) to purchase technical assist20 ance from public or private entities if the State

21 determines that such assistance is required in

22 developing, implementing, or administering the

23 program funded under this section.

24 ‘‘(D) LOCAL INVOLVEMENT.—Each State

25 shall seek local involvement from the commu-
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1 nity in any area in which a second chance home

2 receiving funds to be expended under this para3 graph is to be established. When providing

4 funds to be expended under this paragraph,

5 each State shall evaluate the community’s com6 mitment to the establishment and planning of

7 the home.

8 ‘‘(E) LIMITATIONS ON THE USE OF

9 FUNDS.—

10 ‘‘(i) CONSTRUCTION.—Except as pro11 vided in clause (ii), expenditures author12 ized under this paragraph and section

13 413(a)(2)(B)(i)(V) may not be used by the

14 State, or any person with whom the State

15 makes arrangements to carry out the pur16 poses of this section, for the purchase or

17 improvement of land, or the purchase, con18 struction, or permanent improvement

19 (other than minor remodeling) of any

20 building or other facility.

21 ‘‘(ii) WAIVER.—The Secretary may

22 waive the limitation in clause (i) upon the

23 State’s request if the Secretary finds that

24 the request describes extraordinary cir25 cumstances to justify such a waiver and
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1 that permitting the waiver would contrib2 ute to the State’s ability to carry out the

3 purposes of this section.

4 ‘‘(F) RECEIPT OF PAYMENTS BY SECOND

5 CHANCE HOMES.—Section 402(c)(8)(A)(ii) (as

6 added by section 131(a) of the Work First and

7 Personal Responsibility Act of 1996), is amend8 ed by striking ‘or other adult relative’ and in9 serting ‘other adult relative, or second chance

10 home described under paragraph (9) of this

11 subsection’.’’.

12 (b) FUNDING.—Section 413(a)(2)(B)(i) of the Social

13 Security Act, as added by section 102 of this Act, is

14 amended by adding at after subclause (IV) the following

15 new subclause:

16 ‘‘(V) SECOND CHANCE HOMES.—Costs

17 of establishing and operating Second

18 Chance Homes under section 402(a)(9).’’.

19 (c) RECOMMENDATIONS ON USE OF GOVERNMENT

20 SURPLUS PROPERTY.—Not later than 6 months after the

21 date of the enactment of this Act, after consulting with

22 the Secretary of Defense, the Secretary of Housing and

23 Urban Development, and the Administrator of the General

24 Services Administration, the Secretary of Health and

25 Human Services shall submit recommendations to the
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1 Congress on the extent to which surplus properties of the

2 United States Government may be used for the establish3 ment of second chance homes receiving funds under sec4 tion 413 of the Social Security Act, as amended by this

5 section.

6 (d) EFFECTIVE DATE.—The amendments made by

7 subsections (a) and (b) take effect October 1, 1996.

8 TITLE II—CHILD SUPPORT

9 ENFORCEMENT

10 Subtitle A—Eligibility for Services;

11 Distribution of Payments

12 SEC. 201. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

13 ENFORCEMENT SERVICES.

14 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

15 U.S.C. 654) is amended—

16 (1) by striking paragraph (4) and inserting the

17 following new paragraph:

18 ‘‘(4) provide that the State will—

19 ‘‘(A) provide services relating to the estab20 lishment of paternity or the establishment,

21 modification, or enforcement of child support

22 obligations, as appropriate, under the plan with

23 respect to—

24 ‘‘(i) each child for whom
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1 ‘‘(I) assistance is provided under

2 the State program funded under part

3 A of this title,

4 ‘‘(II) benefits or services for fos5 ter care maintenance and adoption as6 sistance are provided under the State

7 program funded under part B of this

8 title, or

9 ‘‘(III) medical assistance is pro10 vided under the State plan approved

11 under title XIX,

12 unless the State agency administering the

13 plan determines (in accordance with para14 graph (29)) that it is against the best in15 terests of the child to do so; and

16 ‘‘(ii) any other child, if an individual

17 applies for such services with respect to

18 the child; and

19 ‘‘(B) enforce any support obligation estab20 lished with respect to—

21 ‘‘(i) a child with respect to whom the

22 State provides services under the plan; or

23 ‘‘(ii) the custodial parent of such a

24 child;’’; and

25 (2) in paragraph (6)—
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1 (A) by striking ‘‘provide that’’ and insert2 ing ‘‘provide that—’’;

3 (B) by striking subparagraph (A) and in4 serting the following new subparagraph:

5 ‘‘(A) services under the plan shall be made

6 available to residents of other States on the

7 same terms as to residents of the State submit8 ting the plan;’’;

9 (C) in subparagraph (B), by inserting ‘‘on

10 individuals not receiving assistance under any

11 State program funded under part A’’ after

12 ‘‘such services shall be imposed’’;

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

14 (D), and (E)—

15 (i) by indenting the subparagraph in

16 the same manner as, and aligning the left

17 margin of the subparagraph with the left

18 margin of, the matter inserted by subpara19 graph (B) of this paragraph; and

20 (ii) by striking the final comma and

21 inserting a semicolon; and

22 (E) in subparagraph (E), by indenting

23 each of clauses (i) and (ii) 2 additional ems.

24 (b) CONTINUATION OF SERVICES FOR FAMILIES

25 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE
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1 PROGRAM FUNDED UNDER PART A.—Section 454 (42

2 U.S.C. 654) is amended—

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

4 (23);

5 (2) by striking the period at the end of para6 graph (24) and inserting ‘‘; and’’; and

7 (3) by adding after paragraph (24) the follow8 ing new paragraph:

9 ‘‘(25) provide that if a family with respect to

10 which services are provided under the plan ceases to

11 receive assistance under the State program funded

12 under part A, the State shall provide appropriate no13 tice to the family and continue to provide such serv14 ices, subject to the same conditions and on the same

15 basis as in the case of other individuals to whom

16 services are furnished under the plan, except that an

17 application or other request to continue services

18 shall not be required of such a family and paragraph

19 (6)(B) shall not apply to the family.’’.

20 (c) CONFORMING AMENDMENTS.—

21 (1) Section 452(b) (42 U.S.C. 652(b)) is

22 amended by striking ‘‘454(6)’’ and inserting

23 ‘‘454(4)’’.
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1 (2) Section 452(g)(2)(A) (42 U.S.C.

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

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

4 (3) Section 466(a)(3)(B) (42 U.S.C.

5 666(a)(3)(B)) is amended by striking ‘‘in the case of

6 overdue support which a State has agreed to collect

7 under section 454(6)’’ and inserting ‘‘in any other

8 case’’.

9 (4) Section 466(e) (42 U.S.C. 666(e)) is

10 amended by striking ‘‘paragraph (4) or (6) of sec11 tion 454’’ and inserting ‘‘section 454(4)’’.

12 SEC. 202. DISTRIBUTION OF PAYMENTS.

13 (a) DISTRIBUTIONS THROUGH STATE CHILD SUP14 PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE

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

16 amended—

17 (1) in subparagraph (A)—

18 (A) by striking ‘‘section 402(a)(26) is ef19 fective,’’ and inserting ‘‘section 403(b)(1)(E)(i)

20 is effective, except as otherwise specifically pro21 vided in section 464 or 466(a)(3),’’; and

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

23 follows through the semicolon; and

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

25 and all that follows through ‘‘medical assistance’’.
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1 (b) DISTRIBUTION TO A FAMILY CURRENTLY RE2 CEIVING TEMPORARY EMPLOYMENT ASSISTANCE.—Sec3 tion 457 (42 U.S.C. 657) is amended—

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

5 subsection (b) as subsection (a);

6 (2) in subsection (a) (as so redesignated)—

7 (A) in the matter preceding paragraph (2),

8 to read as follows:

9 ‘‘(a) IN THE CASE OF A FAMILY RECEIVING TEA.—

10 Amounts subject to section 1912 collected under this part

11 during any month as support of a child who is receiving

12 assistance under part A (or a parent or caretaker relative

13 of such a child) shall (except in the case of a State exercis14 ing the option under subsection (b)) be distributed as fol15 lows:

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

17 be disregarded pursuant to section 402(d)(2)(C)

18 shall be taken from each of—

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

20 which represent payments for that month; and

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

22 which represent payments for a prior month

23 which were made by the absent parent in that

24 prior month;
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1 and shall be paid to the family without affecting its

2 eligibility for assistance or decreasing any amount

3 otherwise payable as assistance to such family dur4 ing such month;’’;

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

6 and all that follows through the period and in7 serting ‘‘; then (B) from any remainder,

8 amounts equal to arrearages of such support

9 obligations assigned, pursuant to part A, to any

10 other State or States shall be paid to such

11 other State or States and used to pay any such

12 arrearages (with appropriate reimbursement of

13 the Federal Government to the extent of its

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

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

16 (3) by inserting after subsection (a) (as so re17 designated) the following new subsection:

18 ‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM19 ILY RECEIVING TEA.—In the case of a State electing the

20 option under this subsection, amounts collected as de21 scribed in subsection (a) that are not subject to section

22 1912 shall be distributed as follows:

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

24 be disregarded pursuant to section 402(d)(2)(C)

25 shall be taken from each of—
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1 ‘‘(A) the amounts received in a month

2 which represent payments for that month; and

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

4 which represent payments for a prior month

5 which were made by the absent parent in that

6 prior month;

7 and shall be paid to the family without affecting its

8 eligibility for assistance or decreasing any amount

9 otherwise payable as assistance to such family dur10 ing such month;

11 ‘‘(2) second, from any remainder, amounts

12 equal to the balance of support owed for the current

13 month shall be paid to the family;

14 ‘‘(3) third, from any remainder, amounts equal

15 to arrearages of such support obligations assigned,

16 pursuant to part A, to the State making the collec17 tion shall be retained and used by such State to pay

18 any such arrearages (with appropriate reimburse19 ment of the Federal Government to the extent of its

20 participation in the financing);

21 ‘‘(4) fourth, from any remainder, amounts

22 equal to arrearages of such support obligations as23 signed, pursuant to part A, to any other State or

24 States shall be paid to such other State or States

25 and used to pay any such arrearages (with appro-
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1 priate reimbursement of the Federal Government to

2 the extent of its participation in the financing); and

3 ‘‘(5) fifth, any remainder shall be paid to the

4 family.’’.

5 (c) DISTRIBUTION TO A FAMILY NOT RECEIVING

6 TEA.—Section 457(c) (42 U.S.C.657(c)) is amended to

7 read as follows:

8 ‘‘(c) DISTRIBUTIONS IN CASE OF FAMILY NOT RE9 CEIVING TEA.—Amounts that are not subject to section

10 1912 collected by a State agency under this part during

11 any month as support of a child who is not receiving as12 sistance under part A (or of a parent or caretaker relative

13 of such a child) shall (subject to the remaining provisions

14 of this section) be distributed as follows:

15 ‘‘(1) first, amounts equal to the total of such

16 support owed for such month shall be paid to the

17 family;

18 ‘‘(2) second, from any remainder, amounts

19 equal to arrearages of such support obligations that

20 have not been assigned to the State for months dur21 ing which such child did not receive assistance under

22 part A shall be paid to the family;

23 ‘‘(3) third, from any remainder, amounts equal

24 to arrearages of such support obligations assigned to

25 the State making the collection pursuant to part A
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1 shall be retained and used by such State to pay any

2 such arrearages (with appropriate reimbursement of

3 the Federal Government to the extent of its partici4 pation in the financing); and

5 ‘‘(4) fourth, from any remainder, amounts

6 equal to arrearages of such support obligations as7 signed to any other State pursuant to part A shall

8 be paid to such other State or States, and used to

9 pay such arrearages, in the order in which such ar10 rearages accrued (with appropriate reimbursement

11 of the Federal Government to the extent of its par12 ticipation in the financing).’’.

13 (d) DISTRIBUTION TO A CHILD RECEIVING ASSIST14 ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.

15 657(d)) is amended, in the matter preceding paragraph

16 (1), by striking ‘‘Notwithstanding the preceding provisions

17 of this section, amounts’’ and inserting the following:

18 ‘‘(d) DISTRIBUTIONS IN THE CASE OF A CHILD RE19 CEIVING ASSISTANCE UNDER TITLE IV–E.—Amounts’’.

20 (e) REGULATIONS.—The Secretary of Health and

21 Human Services shall promulgate regulations under part

22 A of title IV of the Social Security Act, establishing stand23 ards applicable to the States electing the alternative for24 mula under section 457(b) of such Act for distribution of

25 collections on behalf of families receiving temporary em-
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1 ployment assistance, designed to minimize irregular

2 monthly payments to such families.

3 (f) CONFORMING AMENDMENTS CONCERNING COL4 LECTION OF CHILD SUPPORT ARREARAGES THROUGH IN5 COME TAX REFUND OFFSET.—

6 (1) Section 6402(c) of the Internal Revenue

7 Code of 1986 is amended by striking the third sen8 tence after ‘‘past due support has been paid to the

9 State’’.

10 (2) Section 6402(d)(2) of such Code is amend11 ed in the first sentence by striking ‘‘after’’ and in12 serting ‘‘before’’ and by striking ‘‘with respect to

13 past-due support collected pursuant to an assign14 ment under section 402(a)(26) of the Social Security

15 Act and’’.

16 (3) Section 464(a) (42 U.S.C. 664) is amend17 ed—

18 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

19 OFFSET AUTHORIZED.—’’;

20 (B) in paragraph (1)—

21 (i) in the first sentence, by striking

22 ‘‘which has been assigned to such State

23 pursuant to section 402(a)(26) or section

24 471(a)(17)’’; and
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1 (ii) in the second sentence, by striking

2 ‘‘in accordance with section 457(b)(4) or

3 (d)(3)’’ and inserting ‘‘as provided in para4 graph (2)’’;

5 (C) by amending paragraph (2) to read as

6 follows:

7 ‘‘(2) The State agency shall distribute amounts

8 paid by the Secretary of the Treasury pursuant to

9 paragraph (1)—

10 ‘‘(A) in accordance with section 457(a)(4)

11 or (d)(3), in the case of past-due support as12 signed to a State under part A of title IV of the

13 Social Security Act; and

14 ‘‘(B) to or on behalf of the child to whom

15 the support was owed, in the case of past-due

16 support not so assigned.’’; and

17 (D) in paragraph (3)—

18 (i) by striking ‘‘or (2)’’ each place it

19 appears; and

20 (ii) in subparagraph (B), by striking

21 ‘‘under paragraph (2)’’ and inserting ‘‘on

22 account of past-due support described in

23 paragraph (2)(B)’’;

24 (4) Section 464(b) is amended—
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1 (A) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)

2 REGULATIONS.—’’; and

3 (B) by striking paragraph (2).

4 (5) Section 464(c) is amended—

5 (A) by striking ‘‘(c)(1) Except as provided

6 in paragraph (2), as’’ and inserting ‘‘(c) DEFI7 NITION.—As’’; and

8 (B) by striking paragraphs (2) and (3).

9 (g) CLERICAL AMENDMENTS.—Section 454 (42

10 U.S.C. 654) is amended—

11 (1) in paragraph (11)—

12 (A) by striking ‘‘(11)’’ and inserting

13 ‘‘(11)(A)’’; and

14 (B) by inserting after the semicolon ‘‘and’’;

15 and

16 (2) by redesignating paragraph (12) as sub17 paragraph (B) of paragraph (11).

18 (h) EFFECTIVE DATES.—

19 (1) IN GENERAL.—Except as otherwise pro20 vided in this subsection, the amendments made by

21 this section become effective on October 1, 1996.

22 (2) FAMILY NOT RECEIVING TEA.—The amend23 ments made by subsections (c) and (f)(3), (4), and

24 (5) become effective on October 1, 1999.

25 (3) SPECIAL RULES.—
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1 (A) APPLICABILITY.—A State may elect to

2 have the amendments made by any subsection

3 of this section become effective only with re4 spect to child support cases beginning on or

5 after the effective date of such subsection.

6 (B) DELAYED IMPLEMENTATION.—A State

7 may elect to have the amendments made by this

8 section (other than subsections (c)and (f)) be9 come effective on a date later than October 1,

10 1996, which date shall coincide with the oper11 ation of the single statewide automated data

12 processing and information retrieval system re13 quired by section 454A of the Social Security

14 Act (as added by section 244(a)(2) of this Act)

15 and the State disbursement unit required by

16 section 454B of the Social Security Act (as

17 added by section 212(b) of this Act).

18 SEC. 203. PRIVACY SAFEGUARDS.

19 (a) STATE PLAN REQUIREMENT.—Section 454 (42

20 U.S.C. 654), as amended by section 201(b) of this Act,

21 is amended—

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

23 (24);

24 (2) by striking the period at the end of para25 graph (25) and inserting ‘‘; and’’; and
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1 (3) by adding after paragraph (25) the follow2 ing new paragraph:

3 ‘‘(26) will have in effect safeguards, applicable

4 to all confidential information handled by the State

5 agency, that are designed to protect the privacy

6 rights of the parties, including—

7 ‘‘(A) safeguards against unauthorized use

8 or disclosure of information relating to proceed9 ings or actions to establish paternity, or to es10 tablish or enforce support;

11 ‘‘(B) prohibitions against the release of in12 formation on the whereabouts of one party to

13 another party against whom a protective order

14 with respect to the former party has been en15 tered; and

16 ‘‘(C) prohibitions against the release of in17 formation on the whereabouts of one party to

18 another party if the State has reason to believe

19 that the release of the information may result

20 in physical or emotional harm to the former

21 party.’’.

22 (b) EFFECTIVE DATE.—The amendment made by

23 subsection (a) becomes effective on October 1, 1997.
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1 SEC. 204. RIGHTS TO NOTIFICATION.

2 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

3 amended by section 202(g) of this Act, is amended by in4 serting after paragraph (11) the following new paragraph:

5 ‘‘(12) provide for the establishment of proce6 dures to require the State to provide individuals who

7 are applying for or receiving services under the State

8 plan, or who are parties to cases in which services

9 are being provided under the State plan—

10 ‘‘(A) with notice of all proceedings in

11 which support obligations might be established

12 or modified; and

13 ‘‘(B) with a copy of any order establishing

14 or modifying a child support obligation, or (in

15 the case of a petition for modification) a notice

16 of determination that there should be no change

17 in the amount of the child support award, with18 in 14 days after issuance of such order or de19 termination;’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 subsection (a) becomes effective on October 1, 1997.
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1 Subtitle B—Locate and Case

2 Tracking

3 SEC. 211. STATE CASE REGISTRY.

4 Section 454A, as added by section 244(a)(2) of this

5 Act, is amended by adding at the end the following new

6 subsections:

7 ‘‘(e) STATE CASE REGISTRY.—

8 ‘‘(1) CONTENTS.—The automated system re9 quired by this section shall include a registry (which

10 shall be known as the ‘State case registry’) that con11 tains records with respect to—

12 ‘‘(A) each case in which services are being

13 provided by the State agency under the State

14 plan approved under this part; and

15 ‘‘(B) each support order established or

16 modified in the State on or after October 1,

17 1998.

18 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

19 State case registry may be established by linking

20 local case registries of support orders through an

21 automated information network, subject to this sec22 tion.

23 ‘‘(3) USE OF STANDARDIZED DATA ELE24 MENTS.—Such records shall use standardized data

25 elements for both parents (such as names, social se-
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1 curity numbers and other uniform identification

2 numbers, dates of birth, and case identification

3 numbers), and contain such other information (such

4 as information on case status) as the Secretary may

5 require.

6 ‘‘(4) PAYMENT RECORDS.—Each case record in

7 the State case registry with respect to which services

8 are being provided under the State plan approved

9 under this part and with respect to which a support

10 order has been established shall include a record

11 of—

12 ‘‘(A) the amount of monthly (or other peri13 odic) support owed under the order, and other

14 amounts (including arrearages, interest or late

15 payment penalties, and fees) due or overdue

16 under the order;

17 ‘‘(B) any amount described in subpara18 graph (A) that has been collected;

19 ‘‘(C) the distribution of such collected

20 amounts;

21 ‘‘(D) the birth date of any child for whom

22 the order requires the provision of support; and

23 ‘‘(E) the amount of any lien imposed with

24 respect to the order pursuant to section

25 466(a)(4).
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1 ‘‘(5) UPDATING AND MONITORING.—The State

2 agency operating the automated system required by

3 this section shall promptly establish and maintain,

4 and regularly monitor, case records in the State case

5 registry with respect to which services are being pro6 vided under the State plan approved under this part,

7 on the basis of—

8 ‘‘(A) information on administrative actions

9 and administrative and judicial proceedings and

10 orders relating to paternity and support;

11 ‘‘(B) information obtained from compari12 son with Federal, State, or local sources of in13 formation;

14 ‘‘(C) information on support collections

15 and distributions; and

16 ‘‘(D) any other relevant information.

17 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS18 CLOSURES OF INFORMATION.—The State shall use the

19 automated system required by this section to extract infor20 mation from (at such times, and in such standardized for21 mat or formats, as may be required by the Secretary), to

22 share and compare information with, and to receive infor23 mation from, other data bases and information compari24 son services, in order to obtain (or provide) information

25 necessary to enable the State agency (or the Secretary or
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1 other State or Federal agencies) to carry out this part,

2 subject to section 6103 of the Internal Revenue Code of

3 1986. Such information comparison activities shall include

4 the following:

5 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP6 PORT ORDERS.—Furnishing to the Federal Case

7 Registry of Child Support Orders established under

8 section 453(h) (and update as necessary, with infor9 mation including notice of expiration of orders) the

10 minimum amount of information on child support

11 cases recorded in the State case registry that is nec12 essary to operate the registry (as specified by the

13 Secretary in regulations).

14 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

15 Exchanging information with the Federal Parent

16 Locator Service for the purposes specified in section

17 453.

18 ‘‘(3) TEMPORARY EMPLOYMENT ASSISTANCE

19 AND MEDICAID AGENCIES.—Exchanging information

20 with State agencies (of the State and of other

21 States) administering programs under part A, pro22 grams under State plans under title XIX, and other

23 programs designated by the Secretary, as necessary

24 to perform State agency responsibilities under this

25 part and under such programs.
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1 ‘‘(4) INTRASTATE AND INTERSTATE INFORMA2 TION COMPARISONS.—Exchanging information with

3 other agencies of the State, agencies of other States,

4 and interstate information networks, as necessary

5 and appropriate to carry out (or assist other States

6 to carry out) the purposes of this part.’’.

7 SEC. 212. COLLECTION AND DISBURSEMENT OF SUPPORT

8 PAYMENTS.

9 (a) STATE PLAN REQUIREMENT.—Section 454 (42

10 U.S.C. 654), as amended by sections 201(b) and 203(a)

11 of this Act, is amended—

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

13 (25);

14 (2) by striking the period at the end of para15 graph (26) and inserting ‘‘; and’’; and

16 (3) by adding after paragraph (26) the follow17 ing new paragraph:

18 ‘‘(27) provide that, on and after October 1,

19 1998, the State agency will—

20 ‘‘(A) operate a State disbursement unit in

21 accordance with section 454B; and

22 ‘‘(B) have sufficient State staff (consisting

23 of State employees) and (at State option) con24 tractors reporting directly to the State agency

25 to—
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1 ‘‘(i) monitor and enforce support col2 lections through the unit in cases being en3 forced by the State pursuant to section

4 454(4) (including carrying out the auto5 mated data processing responsibilities de6 scribed in section 454A(g)); and

7 ‘‘(ii) take the actions described in sec8 tion 466(c)(1) in appropriate cases.’’.

9 (b) ESTABLISHMENT OF STATE DISBURSEMENT

10 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

11 amended by section 245(a)(2) of this Act, is amended by

12 inserting after section 454A the following new section:

13 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP14 PORT PAYMENTS.

15 ‘‘(a) STATE DISBURSEMENT UNIT.—

16 ‘‘(1) IN GENERAL.—In order for a State to

17 meet the requirements of this section, the State

18 agency must establish and operate a unit (which

19 shall be known as the ‘State disbursement unit’) for

20 the collection and disbursement of payments under

21 support orders—

22 ‘‘(A) in all cases being enforced by the

23 State pursuant to section 454(4); and

24 ‘‘(B) in all cases not being enforced by the

25 State under this part in which the support
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1 order is initially issued in the State on or after

2 January 1, 1994, and in which the wages of the

3 absent parent are subject to withholding pursu4 ant to section 466(a)(8)(B).

5 ‘‘(2) OPERATION.—The State disbursement

6 unit shall be operated—

7 ‘‘(A) directly by the State agency (or 2 or

8 more State agencies under a regional coopera9 tive agreement), or (to the extent appropriate)

10 by a contractor responsible directly to the State

11 agency; and

12 ‘‘(B) except in cases described in para13 graph (1)(B), in coordination with the auto14 mated system established by the State pursuant

15 to section 454A.

16 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

17 UNITS.—The State disbursement unit may be estab18 lished by linking local disbursement units through

19 an automated information network, subject to this

20 section, if the Secretary agrees that the system will

21 not cost more nor take more time to establish or op22 erate than a centralized system. In addition, employ23 ers shall be given 1 location to which income with24 holding is sent.
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1 ‘‘(b) REQUIRED PROCEDURES.—The State disburse2 ment unit shall use automated procedures, electronic proc3 esses, and computer-driven technology to the maximum

4 extent feasible, efficient, and economical, for the collection

5 and disbursement of support payments, including proce6 dures—

7 ‘‘(1) for receipt of payments from parents, em8 ployers, and other States, and for disbursements to

9 custodial parents and other obligees, the State agen10 cy, and the agencies of other States;

11 ‘‘(2) for accurate identification of payments;

12 ‘‘(3) to ensure prompt disbursement of the cus13 todial parent’s share of any payment; and

14 ‘‘(4) to furnish to any parent, upon request,

15 timely information on the current status of support

16 payments under an order requiring payments to be

17 made by or to the parent.

18 ‘‘(c) TIMING OF DISBURSEMENTS.—

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the State disbursement unit shall distrib21 ute all amounts payable under section 457(a) within

22 2 business days after receipt from the employer or

23 other source of periodic income, if sufficient infor24 mation identifying the payee is provided.
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1 ‘‘(2) PERMISSIVE RETENTION OF ARREAR2 AGES.—The State disbursement unit may delay the

3 distribution of collections toward arrearages until

4 the resolution of any timely appeal with respect to

5 such arrearages.

6 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec7 tion, the term ‘business day’ means a day on which State

8 offices are open for regular business.’’.

9 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

10 added by section 245(a)(2) and as amended by section 211

11 of this Act, is amended by adding at the end the following

12 new subsection:

13 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

14 PAYMENTS.—

15 ‘‘(1) IN GENERAL.—The State shall use the

16 automated system required by this section, to the

17 maximum extent feasible, to assist and facilitate the

18 collection and disbursement of support payments

19 through the State disbursement unit operated under

20 section 454B, through the performance of functions,

21 including, at a minimum—

22 ‘‘(A) transmission of orders and notices to

23 employers (and other debtors) for the withhold24 ing of wages and other income—
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1 ‘‘(i) within 2 business days after re2 ceipt from a court, another State, an em3 ployer, the Federal Parent Locator Service,

4 or another source recognized by the State

5 of notice of, and the income source subject

6 to, such withholding; and

7 ‘‘(ii) using uniform formats prescribed

8 by the Secretary;

9 ‘‘(B) ongoing monitoring to promptly iden10 tify failures to make timely payment of support;

11 and

12 ‘‘(C) automatic use of enforcement proce13 dures (including procedures authorized pursu14 ant to section 466(c)) if payments are not time15 ly made.

16 ‘‘(2) BUSINESS DAY DEFINED.—As used in

17 paragraph (1), the term ‘business day’ means a day

18 on which State offices are open for regular busi19 ness.’’.

20 (d) EFFECTIVE DATE.—The amendments made by

21 this section become effective on October 1, 1998.

22 SEC. 213. STATE DIRECTORY OF NEW HIRES.

23 (a) STATE PLAN REQUIREMENT.—Section 454 (42

24 U.S.C. 654), as amended by sections 201(b), 203(a) and

25 212(a) of this Act, is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (26);

3 (2) by striking the period at the end of para4 graph (27) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (27) the follow6 ing new paragraph:

7 ‘‘(28) provide that, on and after October 1,

8 1997, the State will operate a State Directory of

9 New Hires in accordance with section 453A.’’.

10 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

11 title IV (42 U.S.C. 651–669) is amended by inserting

12 after section 453 the following new section:

13 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

14 ‘‘(a) ESTABLISHMENT.—

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) REQUIREMENT FOR STATES THAT

17 HAVE NO DIRECTORY.—Except as provided in

18 subparagraph (B), not later than October 1,

19 1997, each State shall establish an automated

20 directory (to be known as the ‘State Directory

21 of New Hires’) which shall contain information

22 supplied in accordance with subsection (b) by

23 employers on each newly hired employee.

24 ‘‘(B) STATES WITH NEW HIRE REPORTING

25 IN EXISTENCE.—A State which has a new hire
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1 reporting law in existence on the date of the en2 actment of this section may continue to operate

3 under the State law, but the State must meet

4 the requirements of this section (other than

5 subsection (f)) not later than October 1, 1997.

6 ‘‘(2) DEFINITIONS.—As used in this section:

7 ‘‘(A) EMPLOYEE.—The term ‘employee’—

8 ‘‘(i) means an individual who is an

9 employee within the meaning of chapter 24

10 of the Internal Revenue Code of 1986; and

11 ‘‘(ii) does not include an employee of

12 a Federal or State agency performing in13 telligence or counterintelligence functions,

14 if the head of such agency has determined

15 that reporting pursuant to paragraph (1)

16 with respect to the employee could endan17 ger the safety of the employee or com18 promise an ongoing investigation or intel19 ligence mission.

20 ‘‘(B) EMPLOYER.—

21 ‘‘(i) IN GENERAL.—The term ‘em22 ployer’ has the meaning given such term in

23 section 3401(d) of the Internal Revenue

24 Code of 1996 and includes any govern25 mental entity and any labor organization.
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1 ‘‘(ii) LABOR ORGANIZATION.—The

2 term ‘labor organization’ has the meaning

3 given such term in section 2(5) of the Na4 tional Labor Relations Act, and includes

5 any entity (also known as a ‘hiring hall’)

6 which is used by the organization and an

7 employer to carry out requirements de8 scribed in section 8(f)(3) of such Act of an

9 agreement between the organization and

10 the employer.

11 ‘‘(b) EMPLOYER INFORMATION.—

12 ‘‘(1) REPORTING REQUIREMENT.—

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

14 subparagraphs (B) and (C), each employer shall

15 furnish to the Directory of New Hires of the

16 State in which a newly hired employee works, a

17 report that contains the name, address, and so18 cial security number of the employee, and the

19 name and address of, and identifying number

20 assigned under section 6109 of the Internal

21 Revenue Code of 1986 to, the employer.

22 ‘‘(B) MULTISTATE EMPLOYERS.—An em23 ployer that has employees who are employed in

24 2 or more States and that transmits reports

25 magnetically or electronically may comply with
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1 subparagraph (A) by designating 1 State in

2 which such employer has employees to which

3 the employer will transmit the report described

4 in subparagraph (A), and transmitting such re5 port to such State. Any employer that transmits

6 reports pursuant to this subparagraph shall no7 tify the Secretary in writing as to which State

8 such employer designates for the purpose of

9 sending reports.

10 ‘‘(C) FEDERAL GOVERNMENT EMPLOY11 ERS.—Any department, agency, or instrumen12 tality of the United States shall comply with

13 subparagraph (A) by transmitting the report

14 described in subparagraph (A) to the National

15 Directory of New Hires established pursuant to

16 section 453.

17 ‘‘(2) TIMING OF REPORT.—Each State may

18 provide the time within which the report required by

19 paragraph (1) shall be made with respect to an em20 ployee, but such report shall be made—

21 ‘‘(A) not later than 20 days after the date

22 the employer hires the employee; or

23 ‘‘(B) in the case of an employer transmit24 ting reports magnetically or electronically, by 2
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1 monthly transmissions (if necessary) not less

2 than 12 days nor more than 16 days apart.

3 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re4 port required by subsection (b) shall be made on a W–

5 4 form or, at the option of the employer, an equivalent

6 form, and may be transmitted by 1st class mail, magneti7 cally, or electronically.

8 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

9 EMPLOYERS.—The State shall have the option to set a

10 State civil money penalty which does not exceed—

11 ‘‘(1) $25; or

12 ‘‘(2) $500 if, under State law, the failure is the

13 result of a conspiracy between the employer and the

14 employee to not supply the required report or to

15 supply a false or incomplete report.

16 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor17 mation shall be entered into the data base maintained by

18 the State Directory of New Hires within 5 business days

19 of receipt from an employer pursuant to subsection (b).

20 ‘‘(f) INFORMATION COMPARISONS.—

21 ‘‘(1) IN GENERAL.—Not later than May 1,

22 1998, an agency designated by the State shall, di23 rectly or by contract, conduct automated compari24 sons of the social security numbers reported by em25 ployers pursuant to subsection (b) and the social se-
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1 curity numbers appearing in the records of the State

2 case registry for cases being enforced under the

3 State plan.

4 ‘‘(2) NOTICE OF MATCH.—When an information

5 comparison conducted under paragraph (1) reveals a

6 match with respect to the social security number of

7 an individual required to provide support under a

8 support order, the State Directory of New Hires

9 shall provide the agency administering the State

10 plan approved under this part of the appropriate

11 State with the name, address, and social security

12 number of the employee to whom the social security

13 number is assigned, and the name of, and identify14 ing number assigned under section 6109 of the In15 ternal Revenue Code of 1986 to the employer.

16 ‘‘(g) TRANSMISSION OF INFORMATION.—

17 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

18 NOTICES TO EMPLOYERS.—Within 2 business days

19 after the date information regarding a newly hired

20 employee is entered into the State Directory of New

21 Hires, the State agency enforcing the employee’s

22 child support obligation shall transmit a notice to

23 the employer of the employee directing the employer

24 to withhold from the wages of the employee an

25 amount equal to the monthly (or other periodic)
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1 child support obligation (including any past due sup2 port obligation) of the employee, unless the employ3 ee’s wages are not subject to withholding pursuant

4 to section 466(b)(3).

5 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC6 TORY OF NEW HIRES.—

7 ‘‘(A) NEW HIRE INFORMATION.—Within 3

8 business days after the date information re9 garding a newly hired employee is entered into

10 the State Directory of New Hires, the State Di11 rectory of New Hires shall furnish the informa12 tion to the National Directory of New Hires.

13 ‘‘(B) WAGE AND UNEMPLOYMENT COM14 PENSATION INFORMATION.—The State Direc15 tory of New Hires shall, on a quarterly basis,

16 furnish to the National Directory of New Hires

17 extracts of the reports required under section

18 303(a)(6) to be made to the Secretary of Labor

19 concerning the wages and unemployment com20 pensation paid to individuals, by such dates, in

21 such format, and containing such information

22 as the Secretary of Health and Human Services

23 shall specify in regulations.
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1 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

2 subsection, the term ‘business day’ means a day on

3 which State offices are open for regular business.

4 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

5 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI6 GORS.—The agency administering the State plan ap7 proved under this part shall use information received

8 pursuant to subsection (f)(2) to locate individuals

9 for purposes of establishing paternity and establish10 ing, modifying, and enforcing child support obliga11 tions.

12 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER13 TAIN PROGRAMS.—A State agency responsible for

14 administering a program specified in section 1137(b)

15 shall have access to information reported by employ16 ers pursuant to subsection (b) of this section for

17 purposes of verifying eligibility for the program.

18 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU19 RITY AND WORKERS’ COMPENSATION.—State agen20 cies operating employment security and workers’

21 compensation programs shall have access to informa22 tion reported by employers pursuant to subsection

23 (b) for the purposes of administering such pro24 grams.’’.
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1 (c) QUARTERLY WAGE REPORTING.—Section

2 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

3 (1) by inserting ‘‘(including State and local gov4 ernmental entities and labor organizations (as de5 fined in section 453A(a)(2)(B)(iii))’’ after ‘‘employ6 ers’’; and

7 (2) by inserting ‘‘, and except that no report

8 shall be filed with respect to an employee of a State

9 or local agency performing intelligence or counter10 intelligence functions, if the head of such agency has

11 determined that filing such a report could endanger

12 the safety of the employee or compromise an ongo13 ing investigation or intelligence mission’’ after

14 ‘‘paragraph (2)’’.

15 SEC. 214. AMENDMENTS CONCERNING INCOME WITHHOLD16 ING.

17 (a) MANDATORY INCOME WITHHOLDING.—

18 (1) IN GENERAL.—Section 466(a)(1) (42

19 U.S.C. 666(a)(1)) is amended to read as follows:

20 ‘‘(1)(A) Procedures described in subsection (b)

21 for the withholding from income of amounts payable

22 as support in cases subject to enforcement under the

23 State plan.

24 ‘‘(B) Procedures under which the wages of a

25 person with a support obligation imposed by a sup-
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1 port order issued (or modified) in the State before

2 October 1, 1996, if not otherwise subject to with3 holding under subsection (b), shall become subject

4 to withholding as provided in subsection (b) if ar5 rearages occur, without the need for a judicial or

6 administrative hearing.’’.

7 (2) CONFORMING AMENDMENTS.—

8 (A) Section 466(b) (42 U.S.C. 666(b)) is

9 amended in the matter preceding paragraph

10 (1), by striking ‘‘subsection (a)(1)’’ and insert11 ing ‘‘subsection (a)(1)(A)’’.

12 (B) Section 466(b)(4) (42 U.S.C.

13 666(b)(4)) is amended to read as follows:

14 ‘‘(4)(A) Such withholding must be carried out in full

15 compliance with all procedural due process requirements

16 of the State, and the State must send notice to each non17 custodial parent to whom paragraph (1) applies—

18 ‘‘(i) that the withholding has commenced; and

19 ‘‘(ii) of the procedures to follow if the noncusto20 dial parent desires to contest such withholding on

21 the grounds that the withholding or the amount

22 withheld is improper due to a mistake of fact.

23 ‘‘(B) The notice under subparagraph (A) of this

24 paragraph shall include the information provided to the

25 employer under paragraph (6)(A).’’.
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1 (C) Section 466(b)(5) (42 U.S.C.

2 666(b)(5)) is amended by striking all that fol3 lows ‘‘administered by’’ and inserting ‘‘the

4 State through the State disbursement unit es5 tablished pursuant to section 454B, in accord6 ance with the requirements of section 454B.’’.

7 (D) Section 466(b)(6)(A) (42 U.S.C.

8 666(b)(6)(A)) is amended—

9 (i) in clause (i), by striking ‘‘to the

10 appropriate agency’’ and all that follows

11 and inserting ‘‘to the State disbursement

12 unit within 2 business days after the date

13 the amount would (but for this subsection)

14 have been paid or credited to the employee,

15 for distribution in accordance with this

16 part. The employer shall comply with the

17 procedural rules relating to income with18 holding of the State in which the employee

19 works, regardless of the State where the

20 notice originates.’’,

21 (ii) in clause (ii), by inserting ‘‘be in

22 a standard format prescribed by the Sec23 retary, and’’ after ‘‘shall’’; and

24 (iii) by adding at the end the follow25 ing new clause:
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1 ‘‘(iii) As used in this subparagraph,

2 the term ‘business day’ means a day on

3 which State offices are open for regular

4 business.’’.

5 (E) Section 466(b)(6)(D) (42 U.S.C.

6 666(b)(6)(D)) is amended by striking ‘‘any em7 ployer’’ and all that follows and inserting ‘‘any

8 employer who—

9 ‘‘(i) discharges from employment, re10 fuses to employ, or takes disciplinary ac11 tion against any noncustodial parent sub12 ject to wage withholding required by this

13 subsection because of the existence of such

14 withholding and the obligations or addi15 tional obligations which it imposes upon

16 the employer; or

17 ‘‘(ii) fails to withhold support from

18 wages, or to pay such amounts to the

19 State disbursement unit in accordance with

20 this subsection.’’.

21 (F) Section 466(b) (42 U.S.C. 666(b)) is

22 amended by adding at the end the following

23 new paragraph:

24 ‘‘(11) Procedures under which the agency ad25 ministering the State plan approved under this part
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1 may execute a withholding order without advance

2 notice to the obligor, including issuing the withhold3 ing order through electronic means.’’.

4 (b) CONFORMING AMENDMENT.—Section 466(c) (42

5 U.S.C. 666(c)) is repealed.

6 SEC. 215. LOCATOR INFORMATION FROM INTERSTATE NET7 WORKS.

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

9 adding at the end the following new paragraph:

10 ‘‘(12) LOCATOR INFORMATION FROM INTER11 STATE NETWORKS.—Procedures to ensure that all

12 Federal and State agencies conducting activities

13 under this part have access to any system used by

14 the State to locate an individual for purposes relat15 ing to motor vehicles or law enforcement.’’.

16 SEC. 216. EXPANSION OF THE FEDERAL PARENT LOCATOR

17 SERVICE.

18 (a) EXPANDED AUTHORITY TO LOCATE INDIVID19 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

20 amended—

21 (1) in subsection (a), by striking all that follows

22 subsection (c))’’ and inserting ‘‘, for the purpose of

23 establishing parentage, establishing, setting the

24 amount of, modifying, or enforcing child support ob-
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1 ligations, or enforcing child custody or visitation or2 ders—

3 ‘‘(1) information on, or facilitating the discov4 ery of, the location of any individual—

5 ‘‘(A) who is under an obligation to pay

6 child support or provide child custody or visita7 tion rights;

8 ‘‘(B) against whom such an obligation is

9 sought; or

10 ‘‘(C) to whom such an obligation is owed,

11 including the individual’s social security number

12 (or numbers), most recent address, and the

13 name, address, and employer identification

14 number of the individual’s employer;

15 ‘‘(2) information on the individual’s wages (or

16 other income) from, and benefits of, employment (in17 cluding rights to or enrollment in group health care

18 coverage); and

19 ‘‘(3) information on the type, status, location,

20 and amount of any assets of, or debts owed by or

21 to, any such individual.’’; and

22 (2) in subsection (b)—

23 (A) in the matter preceding paragraph (1),

24 by striking ‘‘social security’’ and all that follows
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1 through ‘‘absent parent’’ and inserting ‘‘infor2 mation described in subsection (a)’’; and

3 (B) in the flush paragraph at the end, by

4 adding the following: ‘‘No information shall be

5 disclosed to any person if the State has notified

6 the Secretary that the State has reasonable evi7 dence of domestic violence or child abuse and

8 the disclosure of such information could be

9 harmful to the custodial parent or the child of

10 such parent. Information received or transmit11 ted pursuant to this section shall be subject to

12 the safeguard provisions contained in section

13 454(26).’’.

14 (b) AUTHORIZED PERSON FOR INFORMATION RE15 GARDING VISITATION RIGHTS.—Section 453(c) (42

16 U.S.C. 653(c)) is amended—

17 (1) in paragraph (1), by striking ‘‘support’’ and

18 inserting ‘‘support or to seek to enforce orders pro19 viding child custody or visitation rights’’; and

20 (2) in paragraph (2), by striking ‘‘, or any

21 agent of such court; and’’ and inserting ‘‘or to issue

22 an order against a resident parent for child custody

23 or visitation rights, or any agent of such court;’’.

24 (c) REIMBURSEMENT FOR INFORMATION FROM FED25 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.
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1 653(e)(2)) is amended in the 4th sentence by inserting

2 ‘‘in an amount which the Secretary determines to be rea3 sonable payment for the information exchange (which

4 amount shall not include payment for the costs of obtain5 ing, compiling, or maintaining the information)’’ before

6 the period.

7 (d) REIMBURSEMENT FOR REPORTS BY STATE

8 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

9 adding at the end the following new subsection:

10 ‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE

11 AGENCIES.—The Secretary may reimburse Federal and

12 State agencies for the costs incurred by such entities in

13 furnishing information requested by the Secretary under

14 this section in an amount which the Secretary determines

15 to be reasonable payment for the information exchange

16 (which amount shall not include payment for the costs of

17 obtaining, compiling, or maintaining the information).’’.

18 (e) CONFORMING AMENDMENTS.—

19 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

20 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

21 653(b), 663(a), 663(e), and 663(f)) are each amend22 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

23 place such term appears.
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1 (2) Section 453 (42 U.S.C. 653) is amended in

2 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR3 ENT’’.

4 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

5 653), as amended by subsection (d) of this section, is

6 amended by adding at the end the following new sub7 sections:

8 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

9 ORDERS.—

10 ‘‘(1) IN GENERAL.—Not later than October 1,

11 1998, in order to assist States in administering pro12 grams under State plans approved under this part

13 and programs funded under part A, and for the

14 other purposes specified in this section, the Sec15 retary shall establish and maintain in the Federal

16 Parent Locator Service an automated registry

17 (which shall be known as the ‘Federal Case Registry

18 of Child Support Orders’), which shall contain ab19 stracts of support orders and other information de20 scribed in paragraph (2) with respect to each case

21 in each State case registry maintained pursuant to

22 section 454A(e), as furnished (and regularly up23 dated), pursuant to section 454A(f), by State agen24 cies administering programs under this part.
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1 ‘‘(2) CASE INFORMATION.—The information re2 ferred to in paragraph (1) with respect to a case

3 shall be such information as the Secretary may

4 specify in regulations (including the names, social

5 security numbers or other uniform identification

6 numbers, and State case identification numbers) to

7 identify the individuals who owe or are owed support

8 (or with respect to or on behalf of whom support ob9 ligations are sought to be established), and the State

10 or States which have the case.

11 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

12 ‘‘(1) IN GENERAL.—In order to assist States in

13 administering programs under State plans approved

14 under this part and programs funded under part A,

15 and for the other purposes specified in this section,

16 the Secretary, not later than April 1, 1997, shall es17 tablish and maintain in the Federal Parent Locator

18 Service an automated directory to be known as the

19 National Directory of New Hires, which shall con20 tain the information supplied pursuant to section

21 453A(g)(2).

22 ‘‘(2) ENTRY OF DATA.—Information shall be

23 entered into the data base maintained by the Na24 tional Directory of New Hires within 2 business

25 days of receipt pursuant to section 453A(g)(2).
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1 ‘‘(3) ADMINISTRATION OF FEDERAL TAX

2 LAWS.—The Secretary of the Treasury shall have

3 access to the information in the National Directory

4 of New Hires for purposes of administering section

5 32 of the Internal Revenue Code of 1986, or the ad6 vance payment of the earned income tax credit

7 under section 3507 of such Code, and verifying a

8 claim with respect to employment in a tax return.

9 ‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The

10 Secretary shall maintain within the National Direc11 tory of New Hires a list of multistate employers that

12 report information regarding newly hired employees

13 pursuant to section 453A(b)(1)(B), and the State

14 which each such employer has designated to receive

15 such information.

16 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS17 CLOSURES.—

18 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD19 MINISTRATION.—

20 ‘‘(A) IN GENERAL.—The Secretary shall

21 transmit information on individuals and em22 ployers maintained under this section to the So23 cial Security Administration to the extent nec24 essary for verification in accordance with sub25 paragraph (B).
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1 ‘‘(B) VERIFICATION BY SSA.—The Social

2 Security Administration shall verify the accu3 racy of, correct, or supply to the extent pos4 sible, and report to the Secretary, the following

5 information supplied by the Secretary pursuant

6 to subparagraph (A):

7 ‘‘(i) The name, social security num8 ber, and birth date of each such individual.

9 ‘‘(ii) The employer identification num10 ber of each such employer.

11 ‘‘(2) INFORMATION COMPARISONS.—For the

12 purpose of locating individuals in a paternity estab13 lishment case or a case involving the establishment,

14 modification, or enforcement of a support order, the

15 Secretary shall—

16 ‘‘(A) compare information in the National

17 Directory of New Hires against information in

18 the support case abstracts in the Federal Case

19 Registry of Child Support Orders not less often

20 than every 2 business days; and

21 ‘‘(B) within 2 such days after such a com22 parison reveals a match with respect to an indi23 vidual, report the information to the State

24 agency responsible for the case.
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1 ‘‘(3) INFORMATION COMPARISONS AND DISCLO2 SURES OF INFORMATION IN ALL REGISTRIES FOR

3 TITLE IV PROGRAM PURPOSES.—To the extent and

4 with the frequency that the Secretary determines to

5 be effective in assisting States to carry out their re6 sponsibilities under programs operated under this

7 part and programs funded under part A, the Sec8 retary shall—

9 ‘‘(A) compare the information in each com10 ponent of the Federal Parent Locator Service

11 maintained under this section against the infor12 mation in each other such component (other

13 than the comparison required by paragraph

14 (2)), and report instances in which such a com15 parison reveals a match with respect to an indi16 vidual to State agencies operating such pro17 grams; and

18 ‘‘(B) disclose information in such registries

19 to such State agencies.

20 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

21 TO THE SOCIAL SECURITY ADMINISTRATION.—The

22 National Directory of New Hires shall provide the

23 Commissioner of Social Security with all information

24 in the National Directory, which shall be used to de25 termine the accuracy of payments under the supple-
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1 mental security income program under title XVI and

2 in connection with benefits under title II.

3 ‘‘(5) RESEARCH.—The Secretary may provide

4 access to information reported by employers pursu5 ant to section 453A(b) for research purposes found

6 by the Secretary to be likely to contribute to achiev7 ing the purposes of part A or this part, but without

8 personal identifiers.

9 ‘‘(k) FEES.—

10 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

11 shall reimburse the Commissioner of Social Security,

12 at a rate negotiated between the Secretary and the

13 Commissioner, for the costs incurred by the Com14 missioner in performing the verification services de15 scribed in subsection (j).

16 ‘‘(2) FOR INFORMATION FROM STATE DIREC17 TORIES OF NEW HIRES.—The Secretary shall reim18 burse costs incurred by State directories of new

19 hires in furnishing information as required by sub20 section (j)(3), at rates which the Secretary deter21 mines to be reasonable (which rates shall not include

22 payment for the costs of obtaining, compiling, or

23 maintaining such information).

24 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

25 AND FEDERAL AGENCIES.—A State or Federal agen-
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1 cy that receives information from the Secretary pur2 suant to this section shall reimburse the Secretary

3 for costs incurred by the Secretary in furnishing the

4 information, at rates which the Secretary determines

5 to be reasonable (which rates shall include payment

6 for the costs of obtaining, verifying, maintaining,

7 and comparing the information).

8 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In9 formation in the Federal Parent Locator Service, and in10 formation resulting from comparisons using such informa11 tion, shall not be used or disclosed except as expressly pro12 vided in this section, subject to section 6103 of the Inter13 nal Revenue Code of 1986.

14 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

15 The Secretary shall establish and implement safeguards

16 with respect to the entities established under this section

17 designed to—

18 ‘‘(1) ensure the accuracy and completeness of

19 information in the Federal Parent Locator Service;

20 and

21 ‘‘(2) restrict access to confidential information

22 in the Federal Parent Locator Service to authorized

23 persons, and restrict use of such information to au24 thorized purposes.
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1 ‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each

2 department, agency, and instrumentality of the United

3 States on a quarterly basis shall report to the Federal

4 Parent Locator Service the name and social security num5 ber of each employee and the wages paid to the employee

6 during the previous quarter, except that such a report

7 shall not be filed with respect to an employee of a depart8 ment, agency, or instrumentality performing intelligence

9 or counterintelligence functions, if the head of such de10 partment, agency, or instrumentality has determined that

11 filing such a report could endanger the safety of the em12 ployee or compromise an ongoing investigation or intel13 ligence mission.’’.

14 (g) CONFORMING AMENDMENTS.—

15 (1) TO PART D OF TITLE IV OF THE SOCIAL SE16 CURITY ACT.—

17 (A) Section 454(8)(B) (42 U.S.C.

18 654(8)(B)) is amended to read as follows:

19 ‘‘(B) the Federal Parent Locator Service

20 established under section 453;’’.

21 (B) Section 454(13) (42 U.S.C. 654(13))

22 is amended by inserting ‘‘and provide that in23 formation requests by parents who are residents

24 of other States be treated with the same prior25 ity as requests by parents who are residents of
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1 the State submitting the plan’’ before the semi2 colon.

3 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

4 Section 3304(a)(16) of the Internal Revenue Code of

5 1986 is amended—

6 (A) by striking ‘‘Secretary of Health, Edu7 cation, and Welfare’’ each place such term ap8 pears and inserting ‘‘Secretary of Health and

9 Human Services’’;

10 (B) in subparagraph (B), by striking

11 ‘‘such information’’ and all that follows and in12 serting ‘‘information furnished under subpara13 graph (A) or (B) is used only for the purposes

14 authorized under such subparagraph;’’;

15 (C) by striking ‘‘and’’ at the end of sub16 paragraph (A);

17 (D) by redesignating subparagraph (B) as

18 subparagraph (C); and

19 (E) by inserting after subparagraph (A)

20 the following new subparagraph:

21 ‘‘(B) wage and unemployment compensa22 tion information contained in the records of

23 such agency shall be furnished to the Secretary

24 of Health and Human Services (in accordance

25 with regulations promulgated by such Sec-
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1 retary) as necessary for the purposes of the Na2 tional Directory of New Hires established under

3 section 453(i) of the Social Security Act, and’’.

4 (3) TO STATE GRANT PROGRAM UNDER TITLE

5 III OF THE SOCIAL SECURITY ACT.—Subsection (h)

6 of section 303 (42 U.S.C. 503) is amended to read

7 as follows:

8 ‘‘(h)(1) The State agency charged with the adminis9 tration of the State law shall, on a reimbursable basis—

10 ‘‘(A) disclose quarterly, to the Secretary of

11 Health and Human Services, wage and claim infor12 mation, as required pursuant to section 453(i)(1),

13 contained in the records of such agency;

14 ‘‘(B) ensure that information provided pursuant

15 to subparagraph (A) meets such standards relating

16 to correctness and verification as the Secretary of

17 Health and Human Services, with the concurrence

18 of the Secretary of Labor, may find necessary; and

19 ‘‘(C) establish such safeguards as the Secretary

20 of Labor determines are necessary to insure that in21 formation disclosed under subparagraph (A) is used

22 only for purposes of section 453(i)(1) in carrying out

23 the child support enforcement program under title

24 IV.
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1 ‘‘(2) Whenever the Secretary of Labor, after reason2 able notice and opportunity for hearing to the State agen3 cy charged with the administration of the State law, finds

4 that there is a failure to comply substantially with the re5 quirements of paragraph (1), the Secretary of Labor shall

6 notify such State agency that further payments will not

7 be made to the State until the Secretary of Labor is satis8 fied that there is no longer any such failure. Until the

9 Secretary of Labor is so satisfied, the Secretary shall

10 make no future certification to the Secretary of the Treas11 ury with respect to the State.

12 ‘‘(3) For purposes of this subsection—

13 ‘‘(A) the term ‘wage information’ means infor14 mation regarding wages paid to an individual, the

15 social security account number of such individual,

16 and the name, address, State, and the Federal em17 ployer identification number of the employer paying

18 such wages to such individual; and

19 ‘‘(B) the term ‘claim information’ means infor20 mation regarding whether an individual is receiving,

21 has received, or has made application for, unemploy22 ment compensation, the amount of any such com23 pensation being received (or to be received by such

24 individual), and the individual’s current (or most re25 cent) home address.’’.
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1 (4) DISCLOSURE OF CERTAIN INFORMATION TO

2 AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN3 CIES.—

4 ‘‘(A) IN GENERAL.—Paragraph (6) of sec5 tion 6103(l) of the Internal Revenue Code of

6 1986 (relating to disclosure of return informa7 tion to Federal, State, and local child support

8 enforcement agencies) is amended by redesig9 nating subparagraph (B) as subparagraph (C)

10 and by inserting after subparagraph (A) the fol11 lowing new subparagraph:

12 ‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—

13 The following information disclosed to any child

14 support enforcement agency under subpara15 graph (A) with respect to any individual with

16 respect to whom child support obligations are

17 sought to be established or enforced may be dis18 closed by such agency to any agent of such

19 agency which is under contract with such agen20 cy to carry out the purposes described in sub21 paragraph (C):

22 ‘‘(i) The address and social security

23 account number (or numbers) of such indi24 vidual.
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1 ‘‘(ii) The amount of any reduction

2 under section 6402(c) (relating to offset of

3 past-due support against overpayments) in

4 any overpayment otherwise payable to such

5 individual.’’.

6 (B) CONFORMING AMENDMENTS.—

7 (i) Paragraph (3) of section 6103(a)

8 of such Code is amended by striking

9 ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or

10 (12) of subsection (l)’’.

11 (ii) Subparagraph (C) of section

12 6103(l)(6) of such Code, as redesignated

13 by subsection (a), is amended to read as

14 follows:

15 ‘‘(C) RESTRICTION ON DISCLOSURE.—In16 formation may be disclosed under this para17 graph only for purposes of, and to the extent

18 necessary in, establishing and collecting child

19 support obligations from, and locating, individ20 uals owing such obligations.’’.

21 (iii) The material following subpara22 graph (F) of section 6103(p)(4) of such

23 Code is amended by striking ‘‘subsection

24 (l)(12)(B)’’ and inserting ‘‘paragraph

25 (6)(A) or (12)(B) of subsection (l)’’.
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1 SEC. 217. COLLECTION AND USE OF SOCIAL SECURITY

2 NUMBERS FOR USE IN CHILD SUPPORT EN3 FORCEMENT.

4 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

5 U.S.C. 666(a)), as amended by section 215 of this Act,

6 is amended by adding at the end the following new para7 graph:

8 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM9 BERS IN CERTAIN MATTERS.—Procedures requiring

10 that the social security number of—

11 ‘‘(A) any applicant for a professional li12 cense, commercial driver’s license, occupational

13 license, or marriage license be recorded on the

14 application;

15 ‘‘(B) any individual who is subject to a di16 vorce decree, support order, or paternity deter17 mination or acknowledgment be placed in the

18 records relating to the matter; and

19 ‘‘(C) any individual who has died be placed

20 in the records relating to the death and be re21 corded on the death certificate.

22 For purposes of subparagraph (A), if a State allows

23 the use of a number other than the social security

24 number, the State shall so advise any applicants.’’.

25 (b) CONFORMING AMENDMENTS.—Section

26 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)) is amended—
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1 (1) in clause (i), by striking ‘‘may require’’ and

2 inserting ‘‘shall require’’;

3 (2) in clause (ii), by inserting after the first

4 sentence the following: ‘‘In the administration of any

5 law involving the issuance of a marriage certificate

6 or license, each State shall require each party named

7 in the certificate or license to furnish to the State

8 (or political subdivision thereof), or any State agen9 cy having administrative responsibility for the law

10 involved, the social security number of the party.’’;

11 (3) in clause (ii), by inserting ‘‘or marriage cer12 tificate’’ after ‘‘Such numbers shall not be recorded

13 on the birth certificate’’.

14 (4) in clause (vi), by striking ‘‘may’’ and insert15 ing ‘‘shall’’; and

16 (5) by adding at the end the following new

17 clauses:

18 ‘‘(x) An agency of a State (or a politi19 cal subdivision thereof) charged with the

20 administration of any law concerning the

21 issuance or renewal of a license, certificate,

22 permit, or other authorization to engage in

23 a profession, an occupation, or a commer24 cial activity shall require all applicants for

25 issuance or renewal of the license, certifi-
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1 cate, permit, or other authorization to pro2 vide the applicant’s social security number

3 to the agency for the purpose of admin4 istering such laws, and for the purpose of

5 responding to requests for information

6 from an agency operating pursuant to part

7 D of title IV.

8 ‘‘(xi) All divorce decrees, support or9 ders, and paternity determinations issued,

10 and all paternity acknowledgments made,

11 in each State shall include the social secu12 rity number of each party to the decree,

13 order, determination, or acknowledgment

14 in the records relating to the matter, for

15 the purpose of responding to requests for

16 information from an agency operating pur17 suant to part D of title IV.’’.

18 Subtitle C—Streamlining and

19 Uniformiy of Procedures

20 SEC. 221. ADOPTION OF UNIFORM STATE LAWS.

21 Section 466 (42 U.S.C. 666) is amended by adding

22 at the end the following new subsection:

23 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

24 ACT.—
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1 ‘‘(1) ENACTMENT AND USE.—In order to sat2 isfy section 454(20)(A), on and after January 1,

3 1998, each State must have in effect the Uniform

4 Interstate Family Support Act, as approved by the

5 American Bar Association on February 9, 1993, to6 gether with any amendments officially adopted be7 fore January 1, 1998 by the National Conference of

8 Commissioners on Uniform State Laws.

9 ‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL

10 RULES OF STATE WHERE EMPLOYEE WORKS.—The

11 State law enacted pursuant to paragraph (1) shall

12 provide that an employer that receives an income

13 withholding order or notice pursuant to section 501

14 of the Uniform Interstate Family Support Act shall

15 follow the procedural rules that apply with respect to

16 such order or notice under the laws of the State in

17 which the obligor is employed.’’.

18 SEC. 222. IMPROVEMENTS TO FULL FAITH AND CREDIT

19 FOR CHILD SUPPORT ORDERS.

20 Section 1738B of title 28, United States Code, is

21 amended—

22 (1) in subsection (a)(2), by striking ‘‘subsection

23 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

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

25 undesignated paragraph the following: ‘‘ ‘child’s
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1 home State’ means the State in which a child lived

2 with a parent or a person acting as parent for at

3 least 6 consecutive months immediately preceding

4 the time of filing of a petition or comparable plead5 ing for support and, if a child is less than 6 months

6 old, the State in which the child lived from birth

7 with any of them. A period of temporary absence of

8 any of them is counted as part of the 6-month pe9 riod.’’;

10 (3) in subsection (c), by inserting ‘‘by a court

11 of a State’’ before ‘‘is made’’;

12 (4) in subsection (c)(1), by inserting ‘‘and sub13 sections (e), (f), and (g)’’ after ‘‘located’’;

14 (5) in subsection (d)—

15 (A) by inserting ‘‘individual’’ before ‘‘con16 testant’’; and

17 (B) by striking ‘‘subsection (e)’’ and in18 serting ‘‘subsections (e) and (f)’’;

19 (6) in subsection (e), by striking ‘‘make a modi20 fication of a child support order with respect to a

21 child that is made’’ and inserting ‘‘modify a child

22 support order issued’’;

23 (7) in subsection (e)(1), by inserting ‘‘pursuant

24 to subsection (i)’’ before the semicolon;

25 (8) in subsection (e)(2)—
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1 (A) by inserting ‘‘individual’’ before ‘‘con2 testant’’ each place such term appears; and

3 (B) by striking ‘‘to that court’s making the

4 modification and assuming’’ and inserting ‘‘with

5 the State of continuing, exclusive jurisdiction

6 for a court of another State to modify the order

7 and assume’’;

8 (9) by redesignating subsections (f) and (g) as

9 subsections (g) and (h), respectively;

10 (10) by inserting after subsection (e) the follow11 ing new subsection:

12 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

13 If 1 or more child support orders have been issued in this

14 or another State with regard to an obligor and a child,

15 a court shall apply the following rules in determining

16 which order to recognize for purposes of continuing, exclu17 sive jurisdiction and enforcement:

18 ‘‘(1) If only 1 court has issued a child support

19 order, the order of that court must be recognized.

20 ‘‘(2) If 2 or more courts have issued child sup21 port orders for the same obligor and child, and only

22 1 of the courts would have continuing, exclusive ju23 risdiction under this section, the order of that court

24 must be recognized.
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1 ‘‘(3) If 2 or more courts have issued child sup2 port orders for the same obligor and child, and more

3 than 1 of the courts would have continuing, exclusive

4 jurisdiction under this section, an order issued by a

5 court in the current home State of the child must

6 be recognized, but if an order has not been issued

7 in the current home State of the child, the order

8 most recently issued must be recognized.

9 ‘‘(4) If 2 or more courts have issued child sup10 port orders for the same obligor and child, and none

11 of the courts would have continuing, exclusive juris12 diction under this section, a court may issue a child

13 support order, which must be recognized.

14 ‘‘(5) The court that has issued an order recog15 nized under this subsection is the court having con16 tinuing, exclusive jurisdiction.’’;

17 (11) in subsection (g) (as so redesignated)—

18 (A) by striking ‘‘PRIOR’’ and inserting

19 ‘‘MODIFIED’’; and

20 (B) by striking ‘‘subsection (e)’’ and in21 serting ‘‘subsections (e) and (f)’’;

22 (12) in subsection (h) (as so redesignated)—

23 (A) in paragraph (2), by inserting ‘‘includ24 ing the duration of current payments and other

25 obligations of support’’ before the comma; and
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1 (B) in paragraph (3), by inserting ‘‘arrears

2 under’’ after ‘‘enforce’’; and

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

4 subsection:

5 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

6 no individual contestant or child residing in the issuing

7 State, the party or support enforcement agency seeking

8 to modify, or to modify and enforce, a child support order

9 issued in another State shall register that order in a State

10 with jurisdiction over the nonmovant for the purpose of

11 modification.’’.

12 SEC. 223. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

13 CASES.

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

15 sections 215 and 217(a) of this Act, is amended by adding

16 at the end the following new paragraph:

17 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

18 INTERSTATE CASES.—Procedures under which—

19 ‘‘(A) the State shall respond within 5 busi20 ness days to a request made by another State

21 to enforce a support order (and for this purpose

22 the term ‘business day’ means a day on which

23 State offices are open for regular business);

24 ‘‘(B) the State may, by electronic or other

25 means, transmit to another State a request for
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1 assistance in a case involving the enforcement

2 of a support order, which request—

3 ‘‘(i) shall include such information as

4 will enable the State to which the request

5 is transmitted to compare the information

6 about the case to the information in the

7 data bases of the State; and

8 ‘‘(ii) shall constitute a certification by

9 the requesting State—

10 ‘‘(I) of the amount of support

11 under the order the payment of which

12 is in arrears; and

13 ‘‘(II) that the requesting State

14 has complied with all procedural due

15 process requirements applicable to the

16 case;

17 ‘‘(C) if the State provides assistance to an18 other State pursuant to this paragraph with re19 spect to a case, neither State shall consider the

20 case to be transferred to the caseload of such

21 other State; and

22 ‘‘(D) the State shall maintain records of—

23 ‘‘(i) the number of such requests for

24 assistance received by the State;
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1 ‘‘(ii) the number of cases for which

2 the State collected support in response to

3 such a request; and

4 ‘‘(iii) the amount of such collected

5 support.’’.

6 SEC. 224. USE OF FORMS IN INTERSTATE ENFORCEMENT.

7 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

8 652(a)) is amended—

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

10 (9);

11 (2) by striking the period at the end of para12 graph (10) and inserting ‘‘; and’’; and

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

14 paragraph:

15 ‘‘(11) not later than December 31, 1996, after

16 consulting with the State directors of programs

17 under this part, promulgate forms to be used by

18 States in interstate cases for—

19 ‘‘(A) collection of child support through in20 come withholding;

21 ‘‘(B) imposition of liens; and

22 ‘‘(C) administrative subpoenas.’’.

23 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

24 654(9)) is amended—
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (C);

3 (2) by inserting ‘‘and’’ at the end of subpara4 graph (D); and

5 (3) by adding at the end the following new sub6 paragraph:

7 ‘‘(E) no later than April 1, 1997, in using

8 the forms promulgated pursuant to section

9 452(a)(11) for income withholding, imposition

10 of liens, and issuance of administrative subpoe11 nas in interstate child support cases;’’.

12 SEC. 225. STATE LAWS PROVIDING EXPEDITED PROCE13 DURES.

14 (a) STATE LAW REQUIREMENTS.—Section 466 (42

15 U.S.C. 666), as amended by section 214 of this Act, is

16 amended—

17 (1) in subsection (a)(2), by striking the first

18 sentence and inserting the following: ‘‘Expedited ad19 ministrative and judicial procedures (including the

20 procedures specified in subsection (c)) for establish21 ing paternity and for establishing, modifying, and

22 enforcing support obligations.’’; and

23 (2) by inserting after subsection (b) the follow24 ing new subsection:
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1 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

2 specified in this subsection, for purposes of the require3 ment of subsection (a)(2), are the following:

4 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN5 CY.—Procedures which give the State agency the au6 thority to take the following actions relating to es7 tablishment or enforcement of support orders, with8 out the necessity of obtaining an order from any

9 other judicial or administrative tribunal, and to rec10 ognize and enforce the authority of State agencies of

11 other States) to take the following actions:

12 ‘‘(A) GENETIC TESTING.—To order genetic

13 testing for the purpose of paternity establish14 ment as provided in section 466(a)(5).

15 ‘‘(B) FINANCIAL OR OTHER INFORMA16 TION.—To subpoena any financial or other in17 formation needed to establish, modify, or en18 force a support order, and to impose penalties

19 for failure to respond to such a subpoena.

20 ‘‘(C) RESPONSE TO STATE AGENCY RE21 QUEST.—To require all entities in the State (in22 cluding for-profit, nonprofit, and governmental

23 employers) to provide promptly, in response to

24 a request by the State agency of that or any

25 other State administering a program under this
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1 part, information on the employment, com2 pensation, and benefits of any individual em3 ployed by such entity as an employee or con4 tractor, and to sanction failure to respond to

5 any such request.

6 ‘‘(D) ACCESS TO CERTAIN RECORDS.—To

7 obtain access, subject to safeguards on privacy

8 and information security, to the following

9 records (including automated access, in the case

10 of records maintained in automated data

11 bases):

12 ‘‘(i) Records of other state and local

13 government agencies, including—

14 ‘‘(I) vital statistics (including

15 records of marriage, birth, and di16 vorce);

17 ‘‘(II) State and local tax and rev18 enue records (including information

19 on residence address, employer, in20 come and assets);

21 ‘‘(III) records concerning real

22 and titled personal property;

23 ‘‘(IV) records of occupational and

24 professional licenses, and records con25 cerning the ownership and control of
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1 corporations, partnerships, and other

2 business entities;

3 ‘‘(V) employment security

4 records;

5 ‘‘(VI) records of agencies admin6 istering public assistance programs;

7 ‘‘(VII) records of the motor vehi8 cle department; and

9 ‘‘(VIII) corrections records.

10 ‘‘(ii) Certain records held by private

11 entities, including—

12 ‘‘(I) customer records of public

13 utilities and cable television compa14 nies; and

15 ‘‘(II) information (including in16 formation on assets and liabilities) on

17 individuals who owe or are owed sup18 port (or against or with respect to

19 whom a support obligation is sought)

20 held by financial institutions (subject

21 to limitations on liability of such enti22 ties arising from affording such ac23 cess), as provided pursuant to agree24 ments described in subsection (a)(18).
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1 ‘‘(E) CHANGE IN PAYEE.—In cases in

2 which support is subject to an assignment in

3 order to comply with a requirement imposed

4 pursuant to part A or section 1912, or to a re5 quirement to pay through the State disburse6 ment unit established pursuant to section

7 454B, upon providing notice to obligor and obli8 gee, to direct the obligor or other payor to

9 change the payee to the appropriate government

10 entity.

11 ‘‘(F) INCOME WITHHOLDING.—To order

12 income withholding in accordance with sub13 sections (a)(1) and (b) of section 466.

14 ‘‘(G) SECURING ASSETS.—In cases in

15 which there is a support arrearage, to secure

16 assets to satisfy the arrearage by—

17 ‘‘(i) intercepting or seizing periodic or

18 lump-sum payments from—

19 ‘‘(I) a State or local agency, in20 cluding unemployment compensation,

21 workers’ compensation, and other ben22 efits; and

23 ‘‘(II) judgments, settlements, and

24 lotteries;
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1 ‘‘(ii) attaching and seizing assets of

2 the obligor held in financial institutions;

3 ‘‘(iii) attaching public and private re4 tirement funds; and

5 ‘‘(iv) imposing liens in accordance

6 with subsection (a)(4) and, in appropriate

7 cases, to force sale of property and dis8 tribution of proceeds.

9 ‘‘(H) INCREASED MONTHLY PAYMENTS.—

10 For the purpose of securing overdue support, to

11 increase the amount of monthly support pay12 ments to include amounts for arrearages, sub13 ject to such conditions or limitations as the

14 State may provide.

15 Such procedures shall be subject to due process safe16 guards, including (as appropriate) requirements for

17 notice, opportunity to contest the action, and oppor18 tunity for an appeal on the record to an independent

19 administrative or judicial tribunal.

20 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

21 The expedited procedures required under subsection

22 (a)(2) shall include the following rules and author23 ity, applicable with respect to all proceedings to es24 tablish paternity or to establish, modify, or enforce

25 support orders:
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1 ‘‘(A) LOCATOR INFORMATION; PRESUMP2 TIONS CONCERNING NOTICE.—Procedures

3 under which—

4 ‘‘(i) each party to any paternity or

5 child support proceeding is required (sub6 ject to privacy safeguards) to file with the

7 tribunal and the State case registry upon

8 entry of an order, and to update as appro9 priate, information on location and identity

10 of the party, including social security num11 ber, residential and mailing addresses, tele12 phone number, driver’s license number,

13 and name, address, and name and tele14 phone number of employer; and

15 ‘‘(ii) in any subsequent child support

16 enforcement action between the parties,

17 upon sufficient showing that diligent effort

18 has been made to ascertain the location of

19 such a party, the tribunal may deem State

20 due process requirements for notice and

21 service of process to be met with respect to

22 the party, upon delivery of written notice

23 to the most recent residential or employer

24 address filed with the tribunal pursuant to

25 clause (i).
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1 ‘‘(B) STATEWIDE JURISDICTION.—Proce2 dures under which—

3 ‘‘(i) the State agency and any admin4 istrative or judicial tribunal with authority

5 to hear child support and paternity cases

6 exerts statewide jurisdiction over the par7 ties; and

8 ‘‘(ii) in a State in which orders are is9 sued by courts or administrative tribunals,

10 a case may be transferred between local ju11 risdictions in the State without need for

12 any additional filing by the petitioner, or

13 service of process upon the respondent, to

14 retain jurisdiction over the parties.

15 ‘‘(3) COORDINATION WITH ERISA.—Notwith16 standing subsection (d) of section 514 of the Em17 ployee Retirement Income Security Act of 1974 (re18 lating to effect on other laws), nothing in this sub19 section shall be construed to alter, amend, modify,

20 invalidate, impair, or supersede subsections (a), (b),

21 and (c) of such section 514 as it applies with respect

22 to any procedure referred to in paragraph (1) and

23 any expedited procedure referred to in paragraph

24 (2), except to the extent that such procedure would

25 be consistent with the requirements of section
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1 206(d)(3) of such Act (relating to qualified domestic

2 relations orders) or the requirements of section

3 609(a) of such Act (relating to qualified medical

4 child support orders) if the reference in such section

5 206(d)(3) to a domestic relations order and the ref6 erence in such section 609(a) to a medical child sup7 port order were a reference to a support order re8 ferred to in paragraphs (1) and (2) relating to the

9 same matters, respectively.’’.

10 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

11 Section 454A, as added by section 245(a)(2) and as

12 amended by sections 211 and 212(c) of this Act, is amend13 ed by adding at the end the following new subsection:

14 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

15 The automated system required by this section shall be

16 used, to the maximum extent feasible, to implement the

17 expedited administrative procedures required by section

18 466(c).’’.

19 Subtitle D—Paternity

20 Establishment

21 SEC. 231. STATE LAWS CONCERNING PATERNITY ESTAB22 LISHMENT.

23 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

24 U.S.C. 666(a)(5)) is amended to read as follows:
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1 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES2 TABLISHMENT.

3 ‘‘(A) ESTABLISHMENT PROCESS AVAIL4 ABLE FROM BIRTH UNTIL AGE 18.—

5 ‘‘(i) Procedures which permit the es6 tablishment of the paternity of a child at

7 any time before the child attains 18 years

8 of age.

9 ‘‘(ii) As of August 16, 1984, clause (i)

10 shall also apply to a child for whom pater11 nity has not been established or for whom

12 a paternity action was brought but dis13 missed because a statute of limitations of

14 less than 18 years was then in effect in the

15 State.

16 ‘‘(B) PROCEDURES CONCERNING GENETIC

17 TESTING.—

18 ‘‘(i) GENETIC TESTING REQUIRED IN

19 CERTAIN CONTESTED CASES.—Procedures

20 under which the State is required, in a

21 contested paternity case (unless otherwise

22 barred by State law) to require the child

23 and all other parties (other than individ24 uals found under section 454(29) to have

25 good cause for refusing to cooperate) to
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1 submit to genetic tests upon the request of

2 any such party, if the request is supported

3 by a sworn statement by the party—

4 ‘‘(I) alleging paternity, and set5 ting forth facts establishing a reason6 able possibility of the requisite sexual

7 contact between the parties; or

8 ‘‘(II) denying paternity, and set9 ting forth facts establishing a reason10 able possibility of the nonexistence of

11 sexual contact between the parties.

12 ‘‘(ii) OTHER REQUIREMENTS.—Proce13 dures which require the State agency, in

14 any case in which the agency orders ge15 netic testing—

16 ‘‘(I) to pay costs of such tests,

17 subject to recoupment (if the State so

18 elects) from the alleged father if pa19 ternity is established; and

20 ‘‘(II) to obtain additional testing

21 in any case if an original test result is

22 contested, upon request and advance

23 payment by the contestant.

24 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL25 EDGMENT.—
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1 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce2 dures for a simple civil process for volun3 tarily acknowledging paternity under which

4 the State must provide that, before a

5 mother and a putative father can sign an

6 acknowledgment of paternity, the mother

7 and the putative father must be given no8 tice, orally and in writing, of the alter9 natives to, the legal consequences of, and

10 the rights (including, if 1 parent is a

11 minor, any rights afforded due to minority

12 status) and responsibilities that arise from,

13 signing the acknowledgment.

14 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

15 Such procedures must include a hospital16 based program for the voluntary acknowl17 edgment of paternity focusing on the pe18 riod immediately before or after the birth

19 of a child, subject to such good cause ex20 ceptions, taking into account the best in21 terests of the child, as the State may es22 tablish.

23 ‘‘(iii) PATERNITY ESTABLISHMENT

24 SERVICES.—
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1 ‘‘(I) STATE-OFFERED SERV2 ICES.—Such procedures must require

3 the State agency responsible for main4 taining birth records to offer vol5 untary paternity establishment serv6 ices.

7 ‘‘(II) REGULATIONS.—

8 ‘‘(aa) SERVICES OFFERED

9 BY HOSPITALS AND BIRTH

10 RECORD AGENCIES.—The Sec11 retary shall prescribe regulations

12 governing voluntary paternity es13 tablishment services offered by

14 hospitals and birth record agen15 cies.

16 ‘‘(bb) SERVICES OFFERED

17 BY OTHER ENTITIES.—The Sec18 retary shall prescribe regulations

19 specifying the types of other enti20 ties that may offer voluntary pa21 ternity establishment services,

22 and governing the provision of

23 such services, which shall include

24 a requirement that such an entity

25 must use the same notice provi-
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1 sions used by, use the same ma2 terials used by, provide the per3 sonnel providing such services

4 with the same training provided

5 by, and evaluate the provision of

6 such services in the same manner

7 as the provision of such services

8 is evaluated by, voluntary pater9 nity establishment programs of

10 hospitals and birth record agen11 cies.

12 ‘‘(iv) USE OF PATERNITY ACKNOWL13 EDGMENT AFFIDAVIT.—Such procedures

14 must require the State to develop and use

15 an affidavit for the voluntary acknowledg16 ment of paternity which includes the mini17 mum requirements of the affidavit devel18 oped by the Secretary under section

19 452(a)(7) for the voluntary acknowledg20 ment of paternity, and to give full faith

21 and credit to such an affidavit signed in

22 any other State according to its proce23 dures.

24 ‘‘(D) STATUS OF SIGNED PATERNITY AC25 KNOWLEDGMENT.—
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1 ‘‘(i) INCLUSION IN BIRTH RECORDS.—

2 Procedures under which the name of the

3 father shall be included on the record of

4 birth of the child of unmarried parents

5 only if—

6 ‘‘(I) the father and mother have

7 signed a voluntary acknowledgment of

8 paternity; or

9 ‘‘(II) a court or an administrative

10 agency of competent jurisdiction has

11 issued an adjudication of paternity.

12 Nothing in this clause precludes a State

13 agency from obtaining an admission of pa14 ternity from the father for submission in a

15 judicial or administrative proceeding, or

16 prohibit the issuance of an order in a judi17 cial or administrative proceeding which

18 bases a legal finding of paternity on an ad19 mission of paternity by the father and any

20 other additional showing required by State

21 law.

22 ‘‘(ii) LEGAL FINDING OF PATER23 NITY.— Procedures under which a signed

24 voluntary acknowledgment of paternity is

25 considered a legal finding of paternity,
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1 subject to the right of any signatory to re2 scind the acknowledgment within the ear3 lier of—

4 ‘‘(I) 60 days; or

5 ‘‘(II) the date of an administra6 tive or judicial proceeding relating to

7 the child (including a proceeding to

8 establish a support order) in which

9 the signatory is a party.

10 ‘‘(iii) CONTEST.—Procedures under

11 which, after the 60-day period referred to

12 in clause (ii), a signed voluntary acknowl13 edgment of paternity may be challenged in

14 court only on the basis of fraud, duress, or

15 material mistake of fact, with the burden

16 of proof upon the challenger, and under

17 which the legal responsibilities (including

18 child support obligations) of any signatory

19 arising from the acknowledgment may not

20 be suspended during the challenge, except

21 for good cause shown.

22 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI23 CATION PROCEEDINGS.—Procedures under

24 which judicial or administrative proceedings are
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1 not required or permitted to ratify an unchal2 lenged acknowledgment of paternity.

3 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

4 RESULTS.—Procedures—

5 ‘‘(i) requiring the admission into evi6 dence, for purposes of establishing pater7 nity, of the results of any genetic test that

8 is—

9 ‘‘(I) of a type generally acknowl10 edged as reliable by accreditation bod11 ies designated by the Secretary; and

12 ‘‘(II) performed by a laboratory

13 approved by such an accreditation

14 body;

15 ‘‘(ii) requiring an objection to genetic

16 testing results to be made in writing not

17 later than a specified number of days be18 fore any hearing at which the results may

19 be introduced into evidence (or, at State

20 option, not later than a specified number

21 of days after receipt of the results); and

22 ‘‘(iii) making the test results admissi23 ble as evidence of paternity without the

24 need for foundation testimony or other
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1 proof of authenticity or accuracy, unless

2 objection is made.

3 ‘‘(G) PRESUMPTION OF PATERNITY IN

4 CERTAIN CASES.—Procedures which create a re5 buttable or, at the option of the State, conclu6 sive presumption of paternity upon genetic test7 ing results indicating a threshold probability

8 that the alleged father is the father of the child.

9 ‘‘(H) DEFAULT ORDERS.—Procedures re10 quiring a default order to be entered in a pater11 nity case upon a showing of service of process

12 on the defendant and any additional showing

13 required by State law.

14 ‘‘(I) NO RIGHT TO JURY

15 TRIAL.—Procedures providing that

16 the parties to an action to establish

17 paternity are not entitled to a trial by

18 jury.

19 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

20 ON PROBABLE PATERNITY IN CONTESTED

21 CASES.—Procedures which require that a tem22 porary order be issued, upon motion by a party,

23 requiring the provision of child support pending

24 an administrative or judicial determination of

25 parentage, if there is clear and convincing evi-
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1 dence of paternity (on the basis of genetic tests

2 or other evidence).

3 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

4 PATERNITY ESTABLISHMENT COSTS.—Proce5 dures under which bills for pregnancy, child6 birth, and genetic testing are admissible as evi7 dence without requiring third-party foundation

8 testimony, and shall constitute prima facie evi9 dence of amounts incurred for such services or

10 for testing on behalf of the child.

11 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

12 Procedures ensuring that the putative father

13 has a reasonable opportunity to initiate a pater14 nity action.

15 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

16 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

17 RECORDS.—Procedures under which voluntary

18 acknowledgments and adjudications of paternity

19 by judicial or administrative processes are filed

20 with the State registry of birth records for com21 parison with information in the State case reg22 istry.’’.

23 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI24 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

25 amended by inserting ‘‘, and develop an affidavit to be
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1 used for the voluntary acknowledgment of paternity which

2 shall include the social security number of each parent

3 and, after consultation with the States, other common ele4 ments as determined by such designee’’ before the semi5 colon.

6 (c) CONFORMING AMENDMENT.—Section 468 (42

7 U.S.C. 668) is amended by striking ‘‘a simple civil process

8 for voluntarily acknowledging paternity and’’.

9 SEC. 232. OUTREACH FOR VOLUNTARY PATERNITY ESTAB10 LISHMENT.

11 Section 454(23) (42 U.S.C. 654(23)) is amended by

12 inserting ‘‘and will publicize the availability and encourage

13 the use of procedures for voluntary establishment of pater14 nity and child support by means the State deems appro15 priate’’ before the semicolon.

16 SEC. 233. COOPERATION REQUIREMENT AND GOOD CAUSE

17 EXCEPTION.

18 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

19 amended by sections 201(b), 203(a), 212(a), and 213(a)

20 of this Act, is amended—

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

22 (27);

23 (2) by striking the period at the end of para24 graph (28) and inserting ‘‘; and’’; and
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1 (3) by inserting after paragraph (28) the fol2 lowing new paragraph:

3 ‘‘(29) provide that the State agency administer4 ing the plan under this part—

5 ‘‘(A) will make the determination specified

6 under paragraph (4), as to whether an individ7 ual is cooperating with efforts to establish pa8 ternity and secure support (or has good cause

9 not to cooperate with such efforts) for purposes

10 of the requirements of sections 403(b)(1)(E)(i)

11 and 1912;

12 ‘‘(B) will advise individuals, both orally

13 and in writing, of the grounds for good cause

14 exceptions to the requirement to cooperate with

15 such efforts;

16 ‘‘(C) will take the best interests of the

17 child into consideration in making the deter18 mination whether such individual has good

19 cause not to cooperate with such efforts;

20 ‘‘(D)(i) will make the initial determination

21 as to whether an individual is cooperating (or

22 has good cause not to cooperate) with efforts to

23 establish paternity within 10 days after such in24 dividual is referred to such State agency by the
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1 State agency administering the program under

2 part A or title XIX;

3 ‘‘(ii) will make redeterminations as to

4 cooperation or good cause at appropriate

5 intervals; and

6 ‘‘(iii) will promptly notify the individ7 ual, and the State agencies administering

8 such programs, of each such determination

9 and redetermination;

10 ‘‘(E) with respect to any child born on or

11 after the date 10 months after enactment of

12 this provision, will not determine (or redeter13 mine) the mother (or other custodial relative) of

14 such child to be cooperating with efforts to es15 tablish paternity unless such individual fur16 nishes—

17 ‘‘(i) the name of the putative father

18 (or fathers); and

19 ‘‘(ii) sufficient additional information

20 to enable the State agency, if reasonable

21 efforts were made, to verify the identity of

22 the person named as the putative father

23 (including such information as the putative

24 father’s present address, telephone num25 ber, date of birth, past or present place of
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1 employment, school previously or currently

2 attended, names and addresses of parents,

3 friends, or relatives able to provide location

4 information, or other information that

5 could enable service of process on such per6 son); and

7 ‘‘(F)(i) (where a custodial parent who was

8 initially determined not to be cooperating (or to

9 have good cause not to cooperate) is later deter10 mined to be cooperating or to have good cause

11 not to cooperate) will immediately notify the

12 State agencies administering the programs

13 under part A and title XIX that this eligibility

14 condition has been met; and

15 ‘‘(ii) (where a custodial parent was initially

16 determined to be cooperating (or to have good

17 cause not to cooperate)) will not later determine

18 such individual not to be cooperating (or not to

19 have good cause not to cooperate) until such in20 dividual has been afforded an opportunity for a

21 hearing.’’.

22 (b) MEDICAID AMENDMENTS.—Section 1912(a) (42

23 U.S.C. 1396k(a)) is amended—
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1 (1) in paragraph (1)(B), by inserting ‘‘(except

2 as provided in paragraph (2))’’ after ‘‘to cooperate

3 with the State’’;

4 (2) in subparagraphs (B) and (C) of paragraph

5 (1) by striking ‘‘, unless’’ and all that follows and

6 inserting a semicolon; and

7 (3) by redesignating paragraph (2) as para8 graph (6), and inserting after paragraph (1) the fol9 lowing new paragraphs:

10 ‘‘(2) provide that the State agency will imme11 diately refer each applicant or recipient requiring

12 paternity establishment services to the State agency

13 administering the program under part D of title IV;

14 ‘‘(3) provide that an individual will not be re15 quired to cooperate with the State, as provided

16 under paragraph (1), if the individual is found to

17 have good cause for refusing to cooperate, as deter18 mined in accordance with standards prescribed by

19 the Secretary, which standards shall take into con20 sideration the best interests of the individuals in21 volved—

22 ‘‘(A) to the satisfaction of the State agency

23 administering the program under part D, as de24 termined in accordance with section 454(29),

25 with respect to the requirements to cooperate
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1 with efforts to establish paternity and to obtain

2 support (including medical support) from a par3 ent; and

4 ‘‘(B) to the satisfaction of the State agen5 cy administering the program under this title,

6 with respect to other requirements to cooperate

7 under paragraph (1);

8 ‘‘(4) provide that (except as provided in para9 graph (5)) an applicant requiring paternity estab10 lishment services (other than an individual presump11 tively eligible pursuant to section 1920) shall not be

12 eligible for medical assistance under this title until

13 such applicant—

14 ‘‘(i) has furnished to the agency admin15 istering the State plan under part D of title IV

16 the information specified in section 454(29)(E);

17 or

18 ‘‘(ii) has been determined by such agency

19 to have good cause not to cooperate; and

20 ‘‘(5) provide that the provisions of paragraph

21 (4) shall not apply with respect to an applicant—

22 ‘‘(i) if such agency has not, within 10 days

23 after such individual was referred to such agen24 cy, provided the notification required by section
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1 454(29)(D)(iii), until such notification is re2 ceived; and

3 ‘‘(ii) if such individual appeals a deter4 mination that the individual lacks good cause

5 for noncooperation, until after such determina6 tion is affirmed after notice and opportunity for

7 a hearing.’’.

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

9 this section are effective with respect to applications filed

10 in or after the first calendar quarter beginning 10 months

11 or more after the date of the enactment of this amendment

12 (or such earlier quarter as the State may select) for assist13 ance under a State plan approved under part A of title

14 IV of the Social Security Act or for medical assistance

15 under a State plan approved under title XIX of such Act.

16 Subtitle E—Program

17 Administration and Funding

18 SEC. 241. PERFORMANCE-BASED INCENTIVES AND PEN19 ALTIES.

20 (a) DEVELOPMENT OF NEW SYSTEM.—The Sec21 retary of Health and Human Services, in consultation with

22 State directors of programs under part D of title IV of

23 the Social Security Act, shall develop a new incentive sys24 tem to replace, in a cost neutral manner, the system under

25 section 458 of such Act. The new system shall provide ad-
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1 ditional payments to any State based on such State’s per2 formance under such a program. The Secretary shall in3 clude procedures that ensure that the total incentives paid

4 to all States for a fiscal year under the new incentive sys5 tem do not exceed the total incentives that would have

6 been paid to all States for such fiscal year under the sys7 tem that was in effect during fiscal year 1995. Not later

8 than October 1, 1996, the Secretary shall report on the

9 new system to the Committee on Ways and Means of the

10 House of Representatives and the Committee on Finance

11 of the Senate.

12 (b) CONFORMING AMENDMENTS TO PRESENT SYS13 TEM.—Section 458 (42 U.S.C. 658) is amended—

14 (1) in subsection (a), by striking ‘‘aid to fami15 lies with dependent children under a State plan ap16 proved under part A of this title’’ and inserting ‘‘as17 sistance under a program funded under part A’’;

18 (2) in subsection (b)(1)(A), by striking ‘‘section

19 402(a)(26)’’ and inserting ‘‘section 402(a)(2)’’;

20 (3) in subsections (b) and (c)—

21 (A) by striking ‘‘AFDC collections’’ each

22 place it appears and inserting ‘‘title IV–A col23 lections’’, and
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1 (B) by striking ‘‘non-AFDC collections’’

2 each place it appears and inserting ‘‘non-title

3 IV–A collections’’; and

4 (4) in subsection (c), by striking ‘‘combined

5 AFDC/non-AFDC administrative costs’’ both places

6 it appears and inserting ‘‘combined title IV–A/non7 title IV–A administrative costs’’.

8 (c) CALCULATION OF IV–D PATERNITY ESTABLISH9 MENT PERCENTAGE.—

10 (1) Section 452(g)(1)(A) (42 U.S.C.

11 652(g)(1)(A)) is amended by striking ‘‘75’’ and in12 serting ‘‘90’’.

13 (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

14 amended by redesignating subparagraphs (B)

15 through (E) as subparagraphs (C) through (F), re16 spectively, and by inserting after subparagraph (A)

17 the following new subparagraph:

18 ‘‘(B) for a State with a paternity establish19 ment percentage of not less than 75 percent but

20 less than 90 percent for such fiscal year, the

21 paternity establishment percentage of the State

22 for the immediately preceding fiscal year plus 2

23 percentage points;’’.
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1 (3) Section 452(g)(2)(A) (42 U.S.C.

2 652(g)(2)(A)) is amended in the matter preceding

3 clause (i)—

4 (A) by striking ‘‘paternity establishment

5 percentage’’ and inserting ‘‘IV–D paternity es6 tablishment percentage’’; and

7 (B) by striking ‘‘(or all States, as the case

8 may be)’’.

9 (4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

10 amended by adding at the end the following new

11 sentence: ‘‘In meeting the 90 percent paternity es12 tablishment requirement, a State may calculate ei13 ther the paternity establishment rate of cases in the

14 program funded under this part or the paternity es15 tablishment rate of all out-of-wedlock births in the

16 State.’’.

17 (5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

18 amended—

19 (A) by striking subparagraph (A) and re20 designating subparagraphs (B) and (C) as sub21 paragraphs (A) and (B), respectively;

22 (B) in subparagraph (A) (as so redesig23 nated), by striking ‘‘the percentage of children

24 born out-of-wedlock in a State’’ and inserting

25 ‘‘the percentage of children in a State who are
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1 born out of wedlock or for whom support has

2 not been established’’; and

3 (C) in subparagraph (B) (as so redesig4 nated) by inserting ‘‘and securing support’’ be5 fore the period.

6 (d) EFFECTIVE DATES.—

7 (1) INCENTIVE ADJUSTMENTS.—

8 (A) IN GENERAL.—The system developed

9 under subsection (a) and the amendments made

10 by subsection (b) become effective on October 1,

11 1997, except to the extent provided in subpara12 graph (B).

13 (B) APPLICATION OF SECTION 458.—Sec14 tion 458 of the Social Security Act, as in effect

15 on the day before the date of the enactment of

16 this section, shall be effective for purposes of

17 incentive payments to States for fiscal years be18 fore fiscal year 1999.

19 (2) PENALTY REDUCTIONS.—The amendments

20 made by subsection (c) become effective with respect

21 to calendar quarters beginning on or after the date

22 of the enactment of this Act.

23 SEC. 242. FEDERAL AND STATE REVIEWS AND AUDITS.

24 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

25 U.S.C. 654) is amended—
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1 (1) in paragraph (14), by striking ‘‘(14)’’ and

2 inserting ‘‘(14)(A)’’;

3 (2) by redesignating paragraph (15) as sub4 paragraph (B) of paragraph (14); and

5 (3) by inserting after paragraph (14) the fol6 lowing new paragraph:

7 ‘‘(15) provide for—

8 ‘‘(A) a process for annual reviews of and

9 reports to the Secretary on the State program

10 operated under the State plan approved under

11 this part, including such information as may be

12 necessary to measure State compliance with

13 Federal requirements for expedited procedures,

14 using such standards and procedures as are re15 quired by the Secretary, under which the State

16 agency will determine the extent to which the

17 program is operated in compliance with this

18 part; and

19 ‘‘(B) a process of extracting from the auto20 mated data processing system required by para21 graph (16) and transmitting to the Secretary

22 data and calculations concerning the levels of

23 accomplishment (and rates of improvement)

24 with respect to applicable performance indica25 tors (including IV–D paternity establishment
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1 percentages to the extent necessary for pur2 poses of sections 452(g) and 458).’’.

3 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

4 U.S.C. 652(a)(4)) is amended to read as follows:

5 ‘‘(4)(A) review data and calculations transmit6 ted by State agencies pursuant to section

7 454(15)(B) on State program accomplishments with

8 respect to performance indicators for purposes of

9 subsection (g) of this section and section 458;

10 ‘‘(B) review annual reports submitted pur11 suant to section 454(15)(A) and, as appro12 priate, provide to the State comments, rec13 ommendations for additional or alternative cor14 rective actions, and technical assistance; and

15 ‘‘(C) conduct audits, in accordance with

16 the Government auditing standards of the

17 Comptroller General of the United States—

18 ‘‘(i) at least once every 3 years (or

19 more frequently, in the case of a State

20 which fails to meet the requirements of

21 this part concerning performance stand22 ards and reliability of program data) to as23 sess the completeness, reliability, and secu24 rity of the data, and the accuracy of the

25 reporting systems, used in calculating per-
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1 formance indicators under subsection (g)

2 of this section and section 458;

3 ‘‘(ii) of the adequacy of financial man4 agement of the State program operated

5 under the State plan approved under this

6 part, including assessments of—

7 ‘‘(I) whether Federal and other

8 funds made available to carry out the

9 State program are being appropriately

10 expended, and are properly and fully

11 accounted for; and

12 ‘‘(II) whether collections and dis13 bursements of support payments are

14 carried out correctly and are fully ac15 counted for; and

16 ‘‘(iii) for such other purposes as the

17 Secretary may find necessary;’’.

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

19 this section shall be effective with respect to calendar

20 quarters beginning 12 months or more after the date of

21 the enactment of this Act.

22 SEC. 243. REQUIRED REPORTING PROCEDURES.

23 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

24 652(a)(5)) is amended by inserting ‘‘, and establish proce25 dures to be followed by States for collecting and reporting
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1 information required to be provided under this part, and

2 establish uniform definitions (including those necessary to

3 enable the measurement of State compliance with the re4 quirements of this part relating to expedited processes) to

5 be applied in following such procedures’’ before the semi6 colon.

7 (b) STATE PLAN REQUIREMENT.—Section 454 (42

8 U.S.C. 654), as amended by sections 201(b), 203(a),

9 212(a), 213(a), and 233 of this Act, is amended—

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

11 (28);

12 (2) by striking the period at the end of para13 graph (29) and inserting ‘‘; and’’; and

14 (3) by adding after paragraph (29) the follow15 ing new paragraph:

16 ‘‘(30) provide that the State shall use the defi17 nitions established under section 452(a)(5) in col18 lecting and reporting information as required under

19 this part.’’.

20 SEC. 244. AUTOMATED DATA PROCESSING REQUIREMENTS.

21 (a) REVISED REQUIREMENTS.—

22 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

23 654(16)) is amended—

24 (A) by striking ‘‘, at the option of the

25 State,’’;
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1 (B) by inserting ‘‘and operation by the

2 State agency’’ after ‘‘for the establishment’’;

3 (C) by inserting ‘‘meeting the requirements

4 of section 454A’’ after ‘‘information retrieval

5 system’’;

6 (D) by striking ‘‘in the State and localities

7 thereof, so as (A)’’ and inserting ‘‘so as’’;

8 (E) by striking ‘‘(i)’’; and

9 (F) by striking ‘‘(including’’ and all that

10 follows and inserting a semicolon.

11 (2) AUTOMATED DATA PROCESSING.—Part D of

12 title IV (42 U.S.C. 651–669) is amended by insert13 ing after section 454 the following new section:

14 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

15 ‘‘(a) IN GENERAL.—In order for a State to meet the

16 requirements of this section, the State agency administer17 ing the State program under this part shall have in oper18 ation a single statewide automated data processing and

19 information retrieval system which has the capability to

20 perform the tasks specified in this section with the fre21 quency and in the manner required by or under this part.

22 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys23 tem required by this section shall perform such functions

24 as the Secretary may specify relating to management of

25 the State program under this part, including—
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1 ‘‘(1) controlling and accounting for use of Fed2 eral, State, and local funds in carrying out the pro3 gram; and

4 ‘‘(2) maintaining the data necessary to meet

5 Federal reporting requirements under this part on a

6 timely basis.

7 ‘‘(c) CALCULATION OF PERFORMANCE INDICA8 TORS.—In order to enable the Secretary to determine the

9 incentive payments and penalty adjustments required by

10 sections 452(g) and 458, the State agency shall—

11 ‘‘(1) use the automated system—

12 ‘‘(A) to maintain the requisite data on

13 State performance with respect to paternity es14 tablishment and child support enforcement in

15 the State; and

16 ‘‘(B) to calculate the IV–D paternity es17 tablishment percentage for the State for each

18 fiscal year; and

19 ‘‘(2) have in place systems controls to ensure

20 the completeness and reliability of, and ready access

21 to, the data described in paragraph (1)(A), and the

22 accuracy of the calculations described in paragraph

23 (1)(B).

24 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

25 State agency shall have in effect safeguards on the integ-
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1 rity, accuracy, and completeness of, access to, and use of

2 data in the automated system required by this section,

3 which shall include the following (in addition to such other

4 safeguards as the Secretary may specify in regulations):

5 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

6 policies concerning access to data by State agency

7 personnel, and sharing of data with other persons,

8 which—

9 ‘‘(A) permit access to and use of data only

10 to the extent necessary to carry out the State

11 program under this part; and

12 ‘‘(B) specify the data which may be used

13 for particular program purposes, and the per14 sonnel permitted access to such data.

15 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

16 (such as passwords or blocking of fields) to ensure

17 strict adherence to the policies described in para18 graph (1).

19 ‘‘(3) MONITORING OF ACCESS.—Routine mon20 itoring of access to and use of the automated sys21 tem, through methods such as audit trails and feed22 back mechanisms, to guard against and promptly

23 identify unauthorized access or use.

24 ‘‘(4) TRAINING AND INFORMATION.—Proce25 dures to ensure that all personnel (including State
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1 and local agency staff and contractors) who may

2 have access to or be required to use confidential pro3 gram data are informed of applicable requirements

4 and penalties (including those in section 6103 of the

5 Internal Revenue Code of 1986), and are adequately

6 trained in security procedures.

7 ‘‘(5) PENALTIES.—Administrative penalties (up

8 to and including dismissal from employment) for un9 authorized access to, or disclosure or use of, con10 fidential data.’’.

11 (3) REGULATIONS.—The Secretary of Health

12 and Human Services shall prescribe final regulations

13 for implementation of section 454A of the Social Se14 curity Act not later than 2 years after the date of

15 the enactment of this Act.

16 (4) IMPLEMENTATION TIMETABLE.—Section

17 454(24) (42 U.S.C. 654(24)), as amended by section

18 203(a)(1) of this Act, is amended to read as follows:

19 ‘‘(24) provide that the State will have in effect

20 an automated data processing and information re21 trieval system—

22 ‘‘(A) by October 1, 1997, which meets all

23 requirements of this part which were enacted on

24 or before the date of enactment of the Family

25 Support Act of 1988, and
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1 ‘‘(B) by October 1, 1999, which meets all

2 requirements of this part enacted on or before

3 the date of the enactment of this Act, except

4 that such deadline shall be extended by 1 day

5 for each day (if any) by which the Secretary

6 fails to meet the deadline imposed by section

7 244(a)(3) of the Work First and Personal Re8 sponsibility Act of 1996;’’.

9 (b) SPECIAL FEDERAL MATCHING RATE FOR DE10 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

11 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

12 655(a)) is amended—

13 (A) in paragraph (1)(B)—

14 (i) by striking ‘‘90 percent’’ and in15 serting ‘‘the percent specified in paragraph

16 (3), subect to the limitations in paragraph

17 (3)’’;

18 (ii) by striking ‘‘so much of’’; and

19 (iii) by striking ‘‘which the Secretary’’

20 and all that follows and inserting ‘‘, and’’;

21 and

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

23 paragraph:

24 ‘‘(3)(A) Subject to the limitation in subpara25 graph (C), the Secretary shall pay to each State, for
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1 each quarter in fiscal years 1996 and 1997, 90 per2 cent of so much of the State expenditures described

3 in paragraph (1)(B) as the Secretary finds are for

4 a system meeting the requirements specified in sec5 tion 454(16) (as in effect on September 30, 1995),

6 but limited to the amount approved for States in the

7 advance planning documents of such States submit8 ted on or before May 1, 1995.

9 ‘‘(B) Subject to the limitation in subpara10 graph (C), the Secretary shall pay to each

11 State, for each quarter in fiscal years 1996

12 through 2001, 80 percent of so much of the

13 State expenditures described in paragraph

14 (1)(B) (other than expenditures with respect to

15 which payment is made under subparagraph

16 (A)) as the Secretary finds are for a system

17 meeting the requirements of sections 454(16)

18 and 454A.

19 ‘‘(C) LIMITATION ON PAYMENTS UNDER

20 TEMPORARY SPECIAL FEDERAL MATCHING

21 RATE.—

22 ‘‘(i) IN GENERAL.—The Secretary of

23 Health and Human Services may not pay

24 more than $400,000,000 in the aggregate

25 under this paragraph for fiscal years 1996
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1 through 2001, which is the maximum

2 amount to which States may be entitled

3 under this paragraph for such fiscal pe4 riod.

5 ‘‘(ii) ALLOCATION OF LIMITATION

6 AMONG STATES.—The total amount pay7 able to a State under this paragraph for

8 fiscal years 1996 through 2001 shall not

9 exceed the limitation determined for the

10 State by the Secretary of Health and

11 Human Services in regulations.

12 ‘‘(iii) ALLOCATION FORMULA.—The

13 regulations referred to in clause (ii) shall

14 prescribe a formula for allocating the

15 amount specified in clause (i) among

16 States with plans approved under part D

17 of title IV of the Social Security Act, which

18 shall take into account—

19 ‘‘(I) the relative size of State

20 caseloads under such part; and

21 ‘‘(II) the level of automation

22 needed to meet the automated data

23 processing requirements of such

24 part.’’.
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1 (c) Subsection (b) of this section is repealed effective

2 September 30, 2001.

3 (d) CONFORMING AMENDMENT.—Section 123(c) of

4 the Family Support Act of 1988 (102 Stat. 2352; Public

5 Law 100-485) is amended by striking ‘‘1995’’ and insert6 ing ‘‘2001’’.

7 SEC. 245. TECHNICAL ASSISTANCE.

8 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

9 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE10 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI11 CANCE.—Section 452 (42 U.S.C. 652) is amended by add12 ing at the end the following new subsection:

13 ‘‘(j) From the appropriation account providing funds

14 for payments to States under section 455(a) for a fiscal

15 year, the Secretary may use an amount not to exceed 0.5

16 percent of reimbursements by States to the Federal Gov17 ernment pursuant to section 457(a) during the preceding

18 fiscal year (as determined on the basis of the most recent

19 reliable data available to the Secretary as of the end of

20 the 3rd calendar quarter following the end of such preced21 ing fiscal year), to cover costs incurred by the Secretary

22 for—

23 ‘‘(1) information dissemination and technical

24 assistance to States, training of State and Federal

25 staff, staffing studies, and related activities needed
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1 to improve programs under this part (including tech2 nical assistance concerning State automated systems

3 required by this part); and

4 ‘‘(2) research, demonstration, and special

5 projects of regional or national significance relating

6 to the operation of State programs under this

7 part.’’.

8 (b) OPERATION OF FEDERAL PARENT LOCATOR

9 SERVICE.—Section 453 (42 U.S.C. 653), as amended by

10 section 216 of this Act, is amended by adding at the end

11 the following new subsection:

12 ‘‘(o) RECOVERY OF COSTS.—From the appropriation

13 account providing funds for payments to States for under

14 section 455(a), the Secretary may use an amount not to

15 exceed 2 percent of the total reimbursements by States

16 to the Federal Government pursuant to section 457(a)

17 during the preceding fiscal year (as determined on the

18 basis of the most recent reliable data available to the Sec19 retary as of the end of the 3rd calendar quarter following

20 the end of such preceding fiscal year), to cover costs in21 curred by the Secretary for operation of the Federal Par22 ent Locator Service under this section, to the extent such

23 costs are not recovered through user fees.’’.
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1 SEC. 246. REPORTS AND DATA COLLECTION BY THE SEC2 RETARY.

3 (a) ANNUAL REPORT TO CONGRESS.—

4 (1) Section 452(a)(10)(A) (42 U.S.C.

5 652(a)(10)(A)) is amended—

6 (A) by striking ‘‘this part;’’ and inserting

7 ‘‘this part, including—’’; and

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

9 clauses:

10 ‘‘(i) the total amount of child support

11 payments collected as a result of services

12 furnished during the fiscal year to individ13 uals receiving services under this part;

14 ‘‘(ii) the cost to the States and to the

15 Federal Government of so furnishing the

16 services; and

17 ‘‘(iii) the number of cases involving

18 families—

19 ‘‘(I) who became ineligible for as20 sistance under State programs funded

21 under part A during a month in the

22 fiscal year; and

23 ‘‘(II) with respect to whom a

24 child support payment was received in

25 the month;’’.
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1 (2) Section 452(a)(10)(C) (42 U.S.C.

2 652(a)(10)(C)) is amended—

3 (A) in the matter preceding clause (i)—

4 (i) by striking ‘‘with the data required

5 under each clause being separately stated

6 for cases’’ and inserting ‘‘separately stated

7 for (1) cases’’;

8 (ii) by striking ‘‘cases where the child

9 was formerly receiving’’ and inserting ‘‘or

10 formerly received’’;

11 (iii) by inserting ‘‘or 1912’’ after

12 ‘‘471(a)(17)’’; and

13 (iv) by inserting ‘‘(2)’’ before ‘‘all

14 other’’;

15 (B) in each of clauses (i) and (ii), by strik16 ing ‘‘, and the total amount of such obliga17 tions’’;

18 (C) in clause (iii), by striking ‘‘described

19 in’’ and all that follows and inserting ‘‘in which

20 support was collected during the fiscal year;’’;

21 (D) by striking clause (iv); and

22 (E) by redesignating clause (v) as clause

23 (vii), and inserting after clause (iii) the follow24 ing new clauses:
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1 ‘‘(iv) the total amount of support col2 lected during such fiscal year and distrib3 uted as current support;

4 ‘‘(v) the total amount of support col5 lected during such fiscal year and distrib6 uted as arrearages;

7 ‘‘(vi) the total amount of support due

8 and unpaid for all fiscal years; and’’.

9 (3) Section 452(a)(10)(G) (42 U.S.C.

10 652(a)(10)(G)) is amended by striking ‘‘on the use

11 of Federal courts and’’.

12 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

13 is amended—

14 (A) in subparagraph (H), by striking

15 ‘‘and’’;

16 (B) in subparagraph (I), by striking the

17 period and inserting ‘‘; and’’; and

18 (C) by inserting after subparagraph (I) the

19 following new subparagraph:

20 ‘‘(J) compliance, by State, with the stand21 ards established pursuant to subsections (h)

22 and (i).’’.

23 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10))

24 is amended by striking all that follows subparagraph

25 (J), as added by paragraph (4).
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1 (b) EFFECTIVE DATE.—The amendments made by

2 subsection (a) are effective with respect to fiscal year 1996

3 and succeeding fiscal years.

4 Subtitle F—Establishment and

5 Modification of Support Orders

6 SEC. 251. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST7 MENT OF CHILD SUPPORT ORDERS.

8 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend9 ed to read as follows:

10 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

11 ORDERS UPON REQUEST.—Procedures under which

12 the State shall review and adjust each support order

13 being enforced under this part if there is an assign14 ment under part A or upon the request of either

15 parent. Such procedures shall provide the following:

16 ‘‘(A) IN GENERAL.—

17 ‘‘(i) 3-YEAR CYCLE.—Except as pro18 vided in subparagraphs (B) and (C), the

19 State shall review and, as appropriate, ad20 just the support order every 3 years, tak21 ing into account the best interests of the

22 child involved.

23 ‘‘(ii) METHODS OF ADJUSTMENT.—

24 The State may elect to review and, if ap-
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1 propriate, adjust an order pursuant to

2 clause (i) by—

3 ‘‘(I) reviewing and, if appro4 priate, adjusting the order in accord5 ance with the guidelines established

6 pursuant to section 467(a) if the

7 amount of the child support award

8 under the order differs from the

9 amount that would be awarded in ac10 cordance with the guidelines; or

11 ‘‘(II) applying a cost-of-living ad12 justment to the order in accordance

13 with a formula developed by the State

14 and permit either party to contest the

15 adjustment, within 30 days after the

16 date of the notice of the adjustment,

17 by making a request for review and, if

18 appropriate, adjustment of the order

19 in accordance with the child support

20 guidelines established pursuant to sec21 tion 467(a).

22 ‘‘(iii) NO PROOF OF CHANGE IN CIR23 CUMSTANCES NECESSARY.—Any adjust24 ment under this subparagraph (A) shall be
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1 made without a requirement for proof or

2 showing of a change in circumstances.

3 ‘‘(B) AUTOMATED METHOD.—The State

4 may use automated methods (including auto5 mated comparisons with wage or State income

6 tax data) to identify orders eligible for review,

7 conduct the review, identify orders eligible for

8 adjustment, and apply the appropriate adjust9 ment to the orders eligible for adjustment

10 under the threshold established by the State.

11 ‘‘(C) REQUEST UPON SUBSTANTIAL

12 CHANGE IN CIRCUMSTANCES.—The State shall,

13 at the request of either parent subject to such

14 an order or of any State child support enforce15 ment agency, review and, if appropriate, adjust

16 the order in accordance with the guidelines es17 tablished pursuant to section 467(a) based

18 upon a substantial change in the circumstances

19 of either parent.

20 ‘‘(D) NOTICE OF RIGHT TO REVIEW.—The

21 State shall provide notice not less than once

22 every 3 years to the parents subject to such an

23 order informing them of their right to request

24 the State to review and, if appropriate, adjust
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1 the order pursuant to this paragraph. The no2 tice may be included in the order.’’.

3 SEC. 252. FURNISHING CONSUMER REPORTS FOR CERTAIN

4 PURPOSES RELATING TO CHILD SUPPORT.

5 Section 604 of the Fair Credit Reporting Act (15

6 U.S.C. 1681b) is amended by adding at the end the follow7 ing new paragraphs:

8 ‘‘(4) In response to a request by the head of a

9 State or local child support enforcement agency (or

10 a State or local government official authorized by

11 the head of such an agency), if the person making

12 the request certifies to the consumer reporting agen13 cy that—

14 ‘‘(A) the consumer report is needed for the

15 purpose of establishing an individual’s capacity

16 to make child support payments or determining

17 the appropriate level of such payments;

18 ‘‘(B) the paternity of the consumer for the

19 child to which the obligation relates has been

20 established or acknowledged by the consumer in

21 accordance with State laws under which the ob22 ligation arises (if required by those laws);

23 ‘‘(C) the person has provided at least 10

24 days’ prior notice to the consumer whose report

25 is requested, by certified or registered mail to
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1 the last known address of the consumer, that

2 the report will be requested; and

3 ‘‘(D) the consumer report will be kept con4 fidential, will be used solely for a purpose de5 scribed in subparagraph (A), and will not be

6 used in connection with any other civil, admin7 istrative, or criminal proceeding, or for any

8 other purpose.

9 ‘‘(5) To an agency administering a State plan

10 under section 454 of the Social Security Act (42

11 U.S.C. 654) for use to set an initial or modified

12 child support award.’’.

13 SEC. 253. NONLIABILITY FOR FINANCIAL INSTITUTIONS

14 PROVIDING FINANCIAL RECORDS TO STATE

15 CHILD SUPPORT ENFORCEMENT AGENCIES

16 IN CHILD SUPPORT CASES.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of Federal or State law, a financial institution shall

19 not be liable under any Federal or State law to any person

20 for disclosing any financial record of an individual to a

21 State child support enforcement agency attempting to es22 tablish, modify, or enforce a child support obligation of

23 such individual.

24 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

25 RECORD OBTAINED BY STATE CHILD SUPPORT EN-
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1 FORCEMENT AGENCY.—A State child support enforcement

2 agency which obtains a financial record of an individual

3 from a financial institution pursuant to subsection (a)

4 may disclose such financial record only for the purpose

5 of establishing, modifying, or enforcing a child support ob6 ligation of that individual.

7 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO8 SURE.—

9 (1) DISCLOSURE BY STATE OFFICER OR EM10 PLOYEE.—If any person knowingly or negligently

11 discloses a financial record of an individual in viola12 tion of subsection (b), such individual may bring a

13 civil action for damages against such person in a

14 district court of the United States.

15 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO16 NEOUS INTERPRETATION.—No liability shall arise

17 under this subsection with respect to any disclosure

18 which results from a good faith, but erroneous, in19 terpretation of subsection (b).

20 (3) DAMAGES.—In any action brought under

21 paragraph (1), upon a finding of liability on the part

22 of the defendant, the defendant shall be liable to the

23 plaintiff in an amount equal to the sum of—

24 (A) the greater of—
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1 (i) $1,000 for each act of unauthor2 ized disclosure of a financial record with

3 respect to which such defendant is found

4 liable; or

5 (ii) the sum of—

6 (I) the actual damages sustained

7 by the plaintiff as a result of such un8 authorized disclosure; plus

9 (II) in the case of a willful disclo10 sure or a disclosure which is the re11 sult of gross negligence, punitive dam12 ages; plus

13 (B) the costs (including attorney’s fees) of

14 the action.

15 (d) DEFINITIONS.—For purposes of this section—

16 (1) FINANCIAL INSTITUTION.—The term ‘‘fi17 nancial institution’’ means—

18 (A) a depository institution, as defined in

19 section 3(c) of the Federal Deposit Insurance

20 Act (12 U.S.C. 1813(c));

21 (B) an institution-affiliated party, as de22 fined in section 3(u) of such Act (12 U.S.C.

23 1813(v));

24 (C) any Federal credit union or State cred25 it union, as defined in section 101 of the Fed-
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1 eral Credit Union Act (12 U.S.C. 1752), includ2 ing an institution-affiliated party of such a

3 credit union, as defined in section 206(r) of

4 such Act (12 U.S.C. 1786(r)); and

5 (D) any benefit association, insurance com6 pany, safe deposit company, money-market mu7 tual fund, or similar entity authorized to do

8 business in the State.

9 (2) FINANCIAL RECORD.—The term ‘‘financial

10 record’’ has the meaning given such term in section

11 1101 of the Right to Financial Privacy Act of 1978

12 (12 U.S.C. 3401).

13 (3) STATE CHILD SUPPORT ENFORCEMENT

14 AGENCY.—The term ‘‘State child support enforce15 ment agency’’ means a State agency which admin16 isters a State program for establishing and enforcing

17 child support obligations.

18 Subtitle G—Enforcement of

19 Support Orders

20 SEC. 261. INTERNAL REVENUE SERVICE COLLECTION OF

21 ARREARAGES.

22 (a) COLLECTION OF FEES.—Section 6305(a) of the

23 Internal Revenue Code of 1986 (relating to collection of

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

2 (3);

3 (2) by striking the period at the end of para4 graph (4) and inserting ‘‘, and’’;

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

6 paragraph:

7 ‘‘(5) no additional fee may be assessed for ad8 justments to an amount previously certified pursu9 ant to such section 452(b) with respect to the same

10 obligor.’’; and

11 (4) by striking ‘‘Secretary of Health, Edu12 cation, and Welfare’’ each place it appears and in13 serting ‘‘Secretary of Health and Human Services’’.

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

15 this section become effective October 1, 1997.

16 SEC. 262. AUTHORITY TO COLLECT SUPPORT FROM FED17 ERAL EMPLOYEES.

18 (a) CONSOLIDATION AND STREAMLINING OF AU19 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

20 read as follows:
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1 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

2 WITHHOLDING, GARNISHMENT, AND SIMILAR

3 PROCEEDINGS FOR ENFORCEMENT OF CHILD

4 SUPPORT AND ALIMONY OBLIGATIONS.

5 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not6 withstanding any other provision of law (including section

7 207 of this Act and section 5301 of title 38, United States

8 Code), effective January 1, 1975, moneys (the entitlement

9 to which is based upon remuneration for employment) due

10 from, or payable by, the United States or the District of

11 Columbia (including any agency, subdivision, or instru12 mentality thereof) to any individual, including members

13 of the Armed Forces of the United States, shall be subject,

14 in like manner and to the same extent as if the United

15 States or the District of Columbia were a private person,

16 to withholding in accordance with State law enacted pur17 suant to subsections (a)(1) and (b) of section 466 and reg18 ulations of the Secretary under such subsections, and to

19 any other legal process brought, by a State agency admin20 istering a program under a State plan approved under this

21 part or by an individual obligee, to enforce the legal obliga22 tion of the individual to provide child support or alimony.

23 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

24 PRIVATE PERSON.—With respect to notice to withhold in25 come pursuant to subsection (a)(1) or (b) of section 466,

26 or any other order or process to enforce support obliga-
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1 tions against an individual (if the order or process con2 tains or is accompanied by sufficient data to permit

3 prompt identification of the individual and the moneys in4 volved), each governmental entity specified in subsection

5 (a) shall be subject to the same requirements as would

6 apply if the entity were a private person, except as other7 wise provided in this section.

8 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

9 OR PROCESS.—

10 ‘‘(1) DESIGNATION OF AGENT.—The head of

11 each agency subject to this section shall—

12 ‘‘(A) designate an agent or agents to re13 ceive orders and accept service of process in

14 matters relating to child support or alimony;

15 and

16 ‘‘(B) annually publish in the Federal Reg17 ister the designation of the agent or agents,

18 identified by title or position, mailing address,

19 and telephone number.

20 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

21 agent designated pursuant to paragraph (1) of this

22 subsection receives notice pursuant to State proce23 dures in effect pursuant to subsection (a)(1) or (b)

24 of section 466, or is effectively served with any

25 order, process, or interrogatory, with respect to an
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1 individual’s child support or alimony payment obli2 gations, the agent shall—

3 ‘‘(A) as soon as possible (but not later

4 than 15 days) thereafter, send written notice of

5 the notice or service (together with a copy of

6 the notice or service) to the individual at the

7 duty station or last-known home address of the

8 individual;

9 ‘‘(B) within 30 days (or such longer period

10 as may be prescribed by applicable State law)

11 after receipt of a notice pursuant to such State

12 procedures, comply with all applicable provi13 sions of section 466; and

14 ‘‘(C) within 30 days (or such longer period

15 as may be prescribed by applicable State law)

16 after effective service of any other such order,

17 process, or interrogatory, respond to the order,

18 process, or interrogatory.

19 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

20 specified in subsection (a) receives notice or is served with

21 process, as provided in this section, concerning amounts

22 owed by an individual to more than 1 person—

23 ‘‘(1) support collection under section 466(b)

24 must be given priority over any other process, as

25 provided in section 466(b)(7);
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1 ‘‘(2) allocation of moneys due or payable to an

2 individual among claimants under section 466(b)

3 shall be governed by section 466(b) and the regula4 tions prescribed under such section; and

5 ‘‘(3) such moneys as remain after compliance

6 with paragraphs (1) and (2) shall be available to

7 satisfy any other such processes on a first-come,

8 first-served basis, with any such process being satis9 fied out of such moneys as remain after the satisfac10 tion of all such processes which have been previously

11 served.

12 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

13 governmental entity that is affected by legal process

14 served for the enforcement of an individual’s child support

15 or alimony payment obligations shall not be required to

16 vary its normal pay and disbursement cycle in order to

17 comply with the legal process.

18 ‘‘(f) RELIEF FROM LIABILITY.—

19 ‘‘(1) Neither the United States, nor the govern20 ment of the District of Columbia, nor any disbursing

21 officer shall be liable with respect to any payment

22 made from moneys due or payable from the United

23 States to any individual pursuant to legal process

24 regular on its face, if the payment is made in ac-
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1 cordance with this section and the regulations issued

2 to carry out this section.

3 ‘‘(2) No Federal employee whose duties include

4 taking actions necessary to comply with the require5 ments of subsection (a) with regard to any individ6 ual shall be subject under any law to any discipli7 nary action or civil or criminal liability or penalty

8 for, or on account of, any disclosure of information

9 made by the employee in connection with the carry10 ing out of such actions.

11 ‘‘(g) REGULATIONS.—Authority to promulgate regu12 lations for the implementation of this section shall, insofar

13 as this section applies to moneys due from (or payable

14 by)—

15 ‘‘(1) the United States (other than the legisla16 tive or judicial branches of the Federal Government)

17 or the government of the District of Columbia, be

18 vested in the President (or the designee of the Presi19 dent);

20 ‘‘(2) the legislative branch of the Federal Gov21 ernment, be vested jointly in the President pro tem22 pore of the Senate and the Speaker of the House of

23 Representatives (or their designees), and
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1 ‘‘(3) the judicial branch of the Federal Govern2 ment, be vested in the Chief Justice of the United

3 States (or the designee of the Chief Justice).

4 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

5 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

6 moneys paid or payable to an individual which are

7 considered to be based upon remuneration for em8 ployment, for purposes of this section—

9 ‘‘(A) consist of—

10 ‘‘(i) compensation paid or payable for

11 personal services of the individual, whether

12 the compensation is denominated as wages,

13 salary, commission, bonus, pay, allowances,

14 or otherwise (including severance pay, sick

15 pay, and incentive pay);

16 ‘‘(ii) periodic benefits (including a

17 periodic benefit as defined in section

18 228(h)(3)) or other payments—

19 ‘‘(I) under the insurance system

20 established by title II;

21 ‘‘(II) under any other system or

22 fund established by the United States

23 which provides for the payment of

24 pensions, retirement or retired pay,

25 annuities, dependents’ or survivors’
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1 benefits, or similar amounts payable

2 on account of personal services per3 formed by the individual or any other

4 individual;

5 ‘‘(III) as compensation for death

6 under any Federal program;

7 ‘‘(IV) under any Federal pro8 gram established to provide ‘black

9 lung’ benefits; or

10 ‘‘(V) by the Secretary of Veter11 ans Affairs as compensation for a

12 service-connected disability paid by

13 the Secretary to a former member of

14 the Armed Forces who is in receipt of

15 retired or retainer pay if the former

16 member has waived a portion of the

17 retired or retainer pay in order to re18 ceive such compensation; and

19 ‘‘(iii) worker’s compensation benefits

20 paid under Federal or State law but

21 ‘‘(B) do not include any payment—

22 ‘‘(i) by way of reimbursement or oth23 erwise, to defray expenses incurred by the

24 individual in carrying out duties associated

25 with the employment of the individual; or
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1 ‘‘(ii) as allowances for members of the

2 uniformed services payable pursuant to

3 chapter 7 of title 37, United States Code,

4 as prescribed by the Secretaries concerned

5 (defined by section 101(5) of such title) as

6 necessary for the efficient performance of

7 duty.

8 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter9 mining the amount of any moneys due from, or pay10 able by, the United States to any individual, there

11 shall be excluded amounts which—

12 ‘‘(A) are owed by the individual to the

13 United States;

14 ‘‘(B) are required by law to be, and are,

15 deducted from the remuneration or other pay16 ment involved, including Federal employment

17 taxes, and fines and forfeitures ordered by

18 court-martial;

19 ‘‘(C) are properly withheld for Federal,

20 State, or local income tax purposes, if the with21 holding of the amounts is authorized or re22 quired by law and if amounts withheld are not

23 greater than would be the case if the individual

24 claimed all dependents to which he was entitled

25 (the withholding of additional amounts pursu-
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1 ant to section 3402(i) of the Internal Revenue

2 Code of 1986 may be permitted only when the

3 individual presents evidence of a tax obligation

4 which supports the additional withholding);

5 ‘‘(D) are deducted as health insurance pre6 miums;

7 ‘‘(E) are deducted as normal retirement

8 contributions (not including amounts deducted

9 for supplementary coverage); or

10 ‘‘(F) are deducted as normal life insurance

11 premiums from salary or other remuneration

12 for employment (not including amounts de13 ducted for supplementary coverage).

14 ‘‘(i) DEFINITIONS.—For purposes of this section—

15 ‘‘(1) UNITED STATES.—The term ‘United

16 States’ includes any department, agency, or instru17 mentality of the legislative, judicial, or executive

18 branch of the Federal Government, the United

19 States Postal Service, the Postal Rate Commission,

20 any Federal corporation created by an Act of Con21 gress that is wholly owned by the Federal Govern22 ment, and the governments of the territories and

23 possessions of the United States.

24 ‘‘(2) CHILD SUPPORT.—The term ‘child sup25 port’, when used in reference to the legal obligations
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1 of an individual to provide such support, means

2 amounts required to be paid under a judgment, de3 cree, or order, whether temporary, final, or subject

4 to modification, issued by a court or an administra5 tive agency of competent jurisdiction, for the sup6 port and maintenance of a child, including a child

7 who has attained the age of majority under the law

8 of the issuing State, or a child and the parent with

9 whom the child is living, which provides for mone10 tary support, health care, arrearages or reimburse11 ment, and which may include other related costs and

12 fees, interest and penalties, income withholding, at13 torney’s fees, and other relief.

14 ‘‘(3) ALIMONY.—

15 ‘‘(A) IN GENERAL.—The term ‘alimony’,

16 when used in reference to the legal obligations

17 of an individual to provide the same, means

18 periodic payments of funds for the support and

19 maintenance of the spouse (or former spouse)

20 of the individual, and (subject to and in accord21 ance with State law) includes separate mainte22 nance, alimony pendente lite, maintenance, and

23 spousal support, and includes attorney’s fees,

24 interest, and court costs when and to the extent

25 that the same are expressly made recoverable as
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1 such pursuant to a decree, order, or judgment

2 issued in accordance with applicable State law

3 by a court of competent jurisdiction.

4 ‘‘(B) EXCEPTIONS.—Such term does not

5 include—

6 ‘‘(i) any child support; or

7 ‘‘(ii) any payment or transfer of prop8 erty or its value by an individual to the

9 spouse or a former spouse of the individual

10 in compliance with any community prop11 erty settlement, equitable distribution of

12 property, or other division of property be13 tween spouses or former spouses.

14 ‘‘(4) PRIVATE PERSON.—The term ‘private per15 son’ means a person who does not have sovereign or

16 other special immunity or privilege which causes the

17 person not to be subject to legal process.

18 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc19 ess’ means any writ, order, summons, or other simi20 lar process in the nature of garnishment—

21 ‘‘(A) which is issued by—

22 ‘‘(i) a court or an administrative

23 agency of competent jurisdiction in any

24 State, territory, or possession of the Unit25 ed States;
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1 ‘‘(ii) a court or an administrative

2 agency of competent jurisdiction in any

3 foreign country with which the United

4 States has entered into an agreement

5 which requires the United States to honor

6 the process; or

7 ‘‘(iii) an authorized official pursuant

8 to an order of such a court or an adminis9 trative agency of competent jurisdiction or

10 pursuant to State or local law; and

11 ‘‘(B) which is directed to, and the purpose

12 of which is to compel, a governmental entity

13 which holds moneys which are otherwise pay14 able to an individual to make a payment from

15 the moneys to another party in order to satisfy

16 a legal obligation of the individual to provide

17 child support or make alimony payments.’’.

18 (b) CONFORMING AMENDMENTS.—

19 (1) TO PART D OF TITLE IV.—Sections 461 and

20 462 (42 U.S.C. 661 and 662) are repealed.

21 (2) TO TITLE 5, UNITED STATES CODE.—Sec22 tion 5520a of title 5, United States Code, is amend23 ed, in subsections (h)(2) and (i), by striking ‘‘sec24 tions 459, 461, and 462 of the Social Security Act

25 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec-
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1 tion 459 of the Social Security Act (42 U.S.C.

2 659)’’.

3 (c) MILITARY RETIRED AND RETAINER PAY.—

4 (1) DEFINITION OF COURT.—Section

5 1408(a)(1) of title 10, United States Code, is

6 amended—

7 (A) by striking ‘‘and’’ at the end of sub8 paragraph (B);

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

10 subparagraph (C) and inserting ‘‘; and’’; and

11 (C) by adding after subparagraph (C) the

12 following: new subparagraph:

13 ‘‘(D) any administrative or judicial tribu14 nal of a State competent to enter orders for

15 support or maintenance (including a State

16 agency administering a program under a State

17 plan approved under part D of title IV of the

18 Social Security Act), and, for purposes of this

19 subparagraph, the term ‘State’ includes the

20 District of Columbia, the Commonwealth of

21 Puerto Rico, the Virgin Islands, Guam, and

22 American Samoa.’’.

23 (2) DEFINITION OF COURT ORDER.—Section

24 1408(a)(2) of such title is amended—
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1 (A) by inserting ‘‘or a support order, as

2 defined in section 453(p) of the Social Security

3 Act (42 U.S.C. 653(p)),’’ before ‘‘which—’’;

4 (B) in subparagraph (B)(i), by striking

5 ‘‘(as defined in section 462(b) of the Social Se6 curity Act (42 U.S.C. 662(b)))’’ and inserting

7 ‘‘(as defined in section 459(i)(2) of the Social

8 Security Act (42 U.S.C. 662(i)(2)))’’; and

9 (C) in subparagraph (B)(ii), by striking

10 ‘‘(as defined in section 462(c) of the Social Se11 curity Act (42 U.S.C. 662(c)))’’ and inserting

12 ‘‘(as defined in section 459(i)(3) of the Social

13 Security Act (42 U.S.C. 662(i)(3)))’’.

14 (3) PUBLIC PAYEE.—Section 1408(d) of such

15 title is amended—

16 (A) in the heading, by inserting ‘‘(OR FOR

17 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

18 (B) in paragraph (1), in the 1st sentence,

19 by inserting ‘‘(or for the benefit of such spouse

20 or former spouse to a State disbursement unit

21 established pursuant to section 454B of the So22 cial Security Act or other public payee des23 ignated by a State, in accordance with part D

24 of title IV of the Social Security Act, as di25 rected by court order, or as otherwise directed
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1 in accordance with such part D)’’ before ‘‘in an

2 amount sufficient’’.

3 (4) RELATIONSHIP TO PART D OF TITLE IV.—

4 Section 1408 of such title is amended by adding at

5 the end the following new subsection:

6 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

7 involving an order providing for payment of child support

8 (as defined in section 459(i)(2) of the Social Security Act)

9 by a member who has never been married to the other

10 parent of the child, the provisions of this section shall not

11 apply, and the case shall be subject to the provisions of

12 section 459 of such Act.’’.

13 (d) EFFECTIVE DATE.—The amendments made by

14 this section become effective 6 months after the date of

15 the enactment of this Act.

16 SEC. 263. ENFORCEMENT OF CHILD SUPPORT OBLIGA17 TIONS OF MEMBERS OF THE ARMED FORCES.

18 (a) AVAILABILITY OF LOCATOR INFORMATION.—

19 (1) MAINTENANCE OF ADDRESS INFORMA20 TION.—The Secretary of Defense shall establish a

21 centralized personnel locator service that includes

22 the address of each member of the Armed Forces

23 under the jurisdiction of the Secretary. Upon re24 quest of the Secretary of Transportation, addresses
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1 for members of the Coast Guard shall be included in

2 the centralized personnel locator service.

3 (2) TYPE OF ADDRESS.—

4 (A) RESIDENTIAL ADDRESS.—Except as

5 provided in subparagraph (B), the address for

6 a member of the Armed Forces shown in the

7 locator service shall be the residential address

8 of that member.

9 (B) DUTY ADDRESS.—The address for a

10 member of the Armed Forces shown in the loca11 tor service shall be the duty address of that

12 member in the case of a member—

13 (i) who is permanently assigned over14 seas, to a vessel, or to a routinely

15 deployable unit; or

16 (ii) with respect to whom the Sec17 retary concerned makes a determination

18 that the member’s residential address

19 should not be disclosed due to national se20 curity or safety concerns.

21 (3) UPDATING OF LOCATOR INFORMATION.—

22 Within 30 days after a member listed in the locator

23 service establishes a new residential address (or a

24 new duty address, in the case of a member covered

25 by paragraph (2)(B)), the Secretary concerned shall
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1 update the locator service to indicate the new ad2 dress of the member.

3 (4) AVAILABILITY OF INFORMATION.—The Sec4 retary of Defense shall make information regarding

5 the address of a member of the Armed Forces listed

6 in the locator service available, on request, to the

7 Federal Parent Locator Service established under

8 section 453 of the Social Security Act.

9 (b) FACILITATING GRANTING OF LEAVE FOR AT10 TENDANCE AT HEARINGS.—

11 (1) REGULATIONS.—The Secretary of each

12 military department, and the Secretary of Transpor13 tation with respect to the Coast Guard when it is

14 not operating as a service in the Navy, shall pre15 scribe regulations to facilitate the granting of leave

16 to a member of the Armed Forces under the juris17 diction of that Secretary in a case in which—

18 (A) the leave is needed for the member to

19 attend a hearing described in paragraph (2);

20 (B) the member is not serving in or with

21 a unit deployed in a contingency operation (as

22 defined in section 101 of title 10, United States

23 Code); and

24 (C) the exigencies of military service (as

25 determined by the Secretary concerned) do not
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1 otherwise require that such leave not be grant2 ed.

3 (2) COVERED HEARINGS.—Paragraph (1) ap4 plies to a hearing that is conducted by a court or

5 pursuant to an administrative process established

6 under State law, in connection with a civil action—

7 (A) to determine whether a member of the

8 Armed Forces is a natural parent of a child; or

9 (B) to determine an obligation of a mem10 ber of the Armed Forces to provide child sup11 port.

12 (3) DEFINITIONS.—For purposes of this sub13 section—

14 (A) The term ‘‘court’’ has the meaning

15 given that term in section 1408(a) of title 10,

16 United States Code.

17 (B) The term ‘‘child support’’ has the

18 meaning given such term in section 459(i) of

19 the Social Security Act (42 U.S.C. 659(i)).

20 (c) PAYMENT OF MILITARY RETIRED PAY IN COM21 PLIANCE WITH CHILD SUPPORT ORDERS.—

22 (1) DATE OF CERTIFICATION OF COURT

23 ORDER.—Section 1408 of title 10, United States

24 Code, as amended by section 262(c)(4) of this Act,

25 is amended—
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1 (A) by redesignating subsections (i) and (j)

2 as subsections (j) and (k), respectively; and

3 (B) by inserting after subsection (h) the

4 following new subsection:

5 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

6 the date of a certification of the authenticity or complete7 ness of a copy of a court order for child support received

8 by the Secretary concerned for the purposes of this section

9 be recent in relation to the date of receipt by the Sec10 retary.’’.

11 (2) PAYMENTS CONSISTENT WITH ASSIGN12 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

13 of such title is amended by inserting after the 1st

14 sentence the following new sentence: ‘‘In the case of

15 a spouse or former spouse who, pursuant to section

16 402(a)(2) of the Social Security Act (42 U.S.C.

17 602(a)(2)), assigns to a State the rights of the

18 spouse or former spouse to receive support, the Sec19 retary concerned may make the child support pay20 ments referred to in the preceding sentence to that

21 State in amounts consistent with that assignment of

22 rights.’’.

23 (3) ARREARAGES OWED BY MEMBERS OF THE

24 UNIFORMED SERVICES.—Section 1408(d) of such
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1 title is amended by adding at the end the following

2 new paragraph:

3 ‘‘(6) In the case of a court order for which ef4 fective service is made on the Secretary concerned

5 on or after the date of the enactment of this para6 graph and which provides for payments from the

7 disposable retired pay of a member to satisfy the

8 amount of child support set forth in the order, the

9 authority provided in paragraph (1) to make pay10 ments from the disposable retired pay of a member

11 to satisfy the amount of child support set forth in

12 a court order shall apply to payment of any amount

13 of child support arrearages set forth in that order as

14 well as to amounts of child support that currently

15 become due.’’.

16 (4) PAYROLL DEDUCTIONS.—The Secretary of

17 Defense shall begin payroll deductions within 30

18 days after receiving notice of withholding, or for the

19 1st pay period that begins after such 30-day period.

20 SEC. 264. VOIDING OF FRAUDULENT TRANSFERS.

21 Section 466 (42 U.S.C. 666), as amended by section

22 221 of this Act, is amended by adding at the end the fol23 lowing new subsection:
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1 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

2 order to satisfy section 454(20)(A), each State must have

3 in effect—

4 ‘‘(1)(A) the Uniform Fraudulent Conveyance

5 Act of 1981;

6 ‘‘(B) the Uniform Fraudulent Transfer Act of

7 1984; or

8 ‘‘(C) another law, specifying indicia of fraud

9 which create a prima facie case that a debtor trans10 ferred income or property to avoid payment to a

11 child support creditor, which the Secretary finds af12 fords comparable rights to child support creditors;

13 and

14 ‘‘(2) procedures under which, in any case in

15 which the State knows of a transfer by a child sup16 port debtor with respect to which such a prima facie

17 case is established, the State must—

18 ‘‘(A) seek to void such transfer; or

19 ‘‘(B) obtain a settlement in the best inter20 ests of the child support creditor.’’.

21 SEC. 265. WORK REQUIREMENT FOR PERSONS OWING

22 PAST-DUE CHILD SUPPORT.

23 (a) IN GENERAL.—Section 466(a) of the Social Secu24 rity Act (42 U.S.C. 666(a)), as amended by sections 215,
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1 217(a), and 223 of this Act, is amended by adding at the

2 end the following new paragraph:

3 ‘‘(15) PROCEDURES TO ENSURE THAT PERSONS

4 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

5 FOR PAYMENT OF SUCH SUPPORT.—

6 ‘‘(A) IN GENERAL.—Procedures under

7 which the State has the authority, in any case

8 in which an individual owes past-due support

9 with respect to a child receiving assistance

10 under a State program funded under part A,

11 to seek a court order that requires the individ12 ual to—

13 ‘‘(i) pay such support in accordance

14 with a plan approved by the court, or, at

15 the option of the State, a plan approved by

16 the State agency administering the State

17 program under this part; or

18 ‘‘(ii) if the individual is subject to

19 such a plan and is not incapacitated, par20 ticipate in such work activities (as defined

21 in section 407(d)) as the court, or, at the

22 option of the State, the State agency ad23 ministering the State program under this

24 part, deems appropriate.
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1 ‘‘(B) PAST-DUE SUPPORT DEFINED.—For

2 purposes of subparagraph (A), the term ‘past3 due support’ means the amount whose payment

4 is overdue as determined under a court order,

5 or an order of an administrative process estab6 lished under State law, for support and mainte7 nance of a child, or of a child and the parent

8 with whom the child is living.’’.

9 (b) CONFORMING AMENDMENT.—The flush para10 graph at the end of section 466(a) (42 U.S.C.666(a)) is

11 amended by striking ‘‘and (7)’’ and inserting ‘‘(7), and

12 (15)’’.

13 SEC. 266. DEFINITION OF SUPPORT ORDER.

14 Section 453 (42 U.S.C. 653) as amended by sections

15 216 and 246(b) of this Act, is amended by adding at the

16 end the following new subsection:

17 ‘‘(p) SUPPORT ORDER DEFINED.—As used in this

18 part, the term ‘support order’ means a judgment, decree,

19 or order, whether temporary, final, or subject to modifica20 tion, issued by a court or an administrative agency of com21 petent jurisdiction, for the support and maintenance of a

22 child, including a child who has attained the age of major23 ity under the law of the issuing State, or a child and the

24 parent with whom the child is living, which provides for

25 monetary support, health care, arrearages, or reimburse-
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1 ment, and which may include related costs and fees, inter2 est and penalties, income withholding, attorneys’ fees, and

3 other relief.’’.

4 SEC. 267. REPORTING ARREARAGES TO CREDIT BUREAUS.

5 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

6 to read as follows:

7 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU8 REAUS.—

9 ‘‘(A) IN GENERAL.—Procedures (subject to

10 safeguards pursuant to subparagraph (B)) re11 quiring the State to report periodically to

12 consumer reporting agencies (as defined in sec13 tion 603(f) of the Fair Credit Reporting Act

14 (15 U.S.C. 1681a(f)) the name of any non15 custodial parent who is delinquent in the pay16 ment of support, and the amount of overdue

17 support owed by such parent.

18 ‘‘(B) SAFEGUARDS.—Procedures ensuring

19 that, in carrying out subparagraph (A), infor20 mation with respect to a noncustodial parent is

21 reported—

22 ‘‘(i) only after such parent has been

23 afforded all due process required under

24 State law, including notice and a reason-
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1 able opportunity to contest the accuracy of

2 such information; and

3 ‘‘(ii) only to an entity that has fur4 nished evidence satisfactory to the State

5 that the entity is a consumer reporting

6 agency (as so defined).’’.

7 SEC. 268. LIENS.

8 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

9 to read as follows:

10 ‘‘(4) LIENS.—Procedures under which—

11 ‘‘(A) liens arise by operation of law against

12 real and personal property for amounts of over13 due support owed by a noncustodial parent who

14 resides or owns property in the State; and

15 ‘‘(B) the State accords full faith and credit

16 to liens described in subparagraph (A) arising

17 in another State, without registration of the un18 derlying order.’’.

19 SEC. 269. STATE LAW AUTHORIZING SUSPENSION OF LI20 CENSES.

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

22 sections 215, 217(a), 223, and 265 of this Act, is amended

23 by adding at the end the following:

24 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

25 LICENSES.—Procedures under which the State has
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1 (and uses in appropriate cases) authority to withhold

2 or suspend, or to restrict the use of, driver’s li3 censes, professional and occupational licenses, and

4 recreational licenses of individuals owing overdue

5 support or failing, after receiving appropriate notice,

6 to comply with subpoenas or warrants relating to

7 paternity or child support proceedings.’’.

8 SEC. 270. DENIAL OF PASSPORTS FOR NONPAYMENT OF

9 CHILD SUPPORT.

10 (a) HHS CERTIFICATION PROCEDURE.—

11 (1) SECRETARIAL RESPONSIBILITY.—Section

12 452 (42 U.S.C. 652), as amended by section 246 of

13 this Act, is amended by adding at the end the fol14 lowing new subsection:

15 ‘‘(k)(1) If the Secretary receives a certification by a

16 State agency in accordance with the requirements of sec17 tion 454(31) that an individual owes arrearages of child

18 support in an amount exceeding $5,000, the Secretary

19 shall transmit such certification to the Secretary of State

20 for action (with respect to denial, revocation, or limitation

21 of passports) pursuant to section 270(b) of the Work First

22 and Personal Responsibility Act of 1996.

23 ‘‘(2) The Secretary shall not be liable to an in24 dividual for any action with respect to a certification

25 by a State agency under this section.’’.
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1 (2) STATE AGENCY RESPONSIBILITY.—Section

2 454 (42 U.S.C. 654), as amended by sections

3 201(b), 203(a), 212(b), 213(a), 233, and 244(b) of

4 this Act, is amended—

5 (A) by striking ‘‘and’’ at the end of para6 graph (29);

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

8 paragraph (30) and inserting ‘‘; and’’; and

9 (C) by adding after paragraph (30) the fol10 lowing new paragraph:

11 ‘‘(31) provide that the State agency will have in

12 effect a procedure for certifying to the Secretary, for

13 purposes of the procedure under section 452(k), de14 terminations that individuals owe arrearages of child

15 support in an amount exceeding $5,000, under

16 which procedure—

17 ‘‘(A) each individual concerned is afforded

18 notice of such determination and the con19 sequences thereof, and an opportunity to con20 test the determination; and

21 ‘‘(B) the certification by the State agency

22 is furnished to the Secretary in such format,

23 and accompanied by such supporting docu24 mentation, as the Secretary may require.’’.
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1 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

2 OF PASSPORTS.—

3 (1) IN GENERAL.—The Secretary of State shall,

4 upon certification by the Secretary of Health and

5 Human Services transmitted under section 452(k) of

6 the Social Security Act, refuse to issue a passport to

7 such individual, and may revoke, restrict, or limit a

8 passport issued previously to such individual.

9 (2) LIMIT ON LIABILITY.—The Secretary of

10 State shall not be liable to an individual for any ac11 tion with respect to a certification by a State agency

12 under this section.

13 (c) EFFECTIVE DATE.—This section and the amend14 ments made by this section become effective October 1,

15 1996.

16 SEC. 271. INTERNATIONAL CHILD SUPPORT ENFORCE17 MENT.

18 (a) AUTHORITY FOR INTERNATIONAL AGREE19 MENTS.—Part D of title IV, as amended by section 262(a)

20 of this Act, is amended by adding after section 459 the

21 following new section:

22 ‘‘SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCE23 MENT.

24 ‘‘(a) AUTHORITY FOR DECLARATIONS.—
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1 ‘‘(1) DECLARATION.—The Secretary of State,

2 with the concurrence of the Secretary of Health and

3 Human Services, is authorized to declare any foreign

4 country (or a political subdivision thereof) to be a

5 foreign reciprocating country if the foreign country

6 has established, or undertakes to establish, proce7 dures for the establishment and enforcement of du8 ties of support owed to obligees who are residents of

9 the United States, and such procedures are substan10 tially in conformity with the standards prescribed

11 under subsection (b).

12 ‘‘(2) REVOCATION.—A declaration with respect

13 to a foreign country made pursuant to paragraph

14 (1) may be revoked if the Secretaries of State and

15 Health and Human Services determine that—

16 ‘‘(A) the procedures established by the for17 eign nation regarding the establishment and en18 forcement of duties of support have been so

19 changed, or the foreign nation’s implementation

20 of such procedures is so unsatisfactory, that

21 such procedures do not meet the criteria for

22 such a declaration; or

23 ‘‘(B) continued operation of the declaration

24 is not consistent with the purposes of this part.
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1 ‘‘(3) FORM OF DECLARATION.—A declaration

2 under paragraph (1) may be made in the form of an

3 international agreement, in connection with an inter4 national agreement or corresponding foreign declara5 tion, or on a unilateral basis.

6 ‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE7 MENT PROCEDURES.—

8 ‘‘(1) MANDATORY ELEMENTS.—Child support

9 enforcement procedures of a foreign country which

10 may be the subject of a declaration pursuant to sub11 section (a)(1) shall include the following elements:

12 ‘‘(A) The foreign country (or political sub13 division thereof) has in effect procedures, avail14 able to residents of the United States—

15 ‘‘(i) for establishment of paternity,

16 and for establishment of orders of support

17 for children and custodial parents; and

18 ‘‘(ii) for enforcement of orders to pro19 vide support to children and custodial par20 ents, including procedures for collection

21 and appropriate distribution of support

22 payments under such orders.

23 ‘‘(B) The procedures described in subpara24 graph (A), including legal and administrative
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1 assistance, are provided to residents of the

2 United States at no cost.

3 ‘‘(C) An agency of the foreign country is

4 designated as a Central Authority responsible

5 for—

6 ‘‘(i) facilitating child support enforce7 ment in cases involving residents of the

8 foreign nation and residents of the United

9 States; and

10 ‘‘(ii) ensuring compliance with the

11 standards established pursuant to this sub12 section.

13 ‘‘(2) ADDITIONAL ELEMENTS.—The Secretary

14 of Health and Human Services and the Secretary of

15 State, in consultation with the States, may establish

16 such additional standards as may be considered nec17 essary to further the purposes of this section.

18 ‘‘(c) DESIGNATION OF UNITED STATES CENTRAL

19 AUTHORITY.—It shall be the responsibility of the Sec20 retary of Health and Human Services to facilitate child

21 support enforcement in cases involving residents of the

22 United States and residents of foreign nations that are

23 the subject of a declaration under this section, by activities

24 including—
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1 ‘‘(1) development of uniform forms and proce2 dures for use in such cases;

3 ‘‘(2) notification of foreign reciprocating coun4 tries of the State of residence of individuals sought

5 for support enforcement purposes, on the basis of in6 formation provided by the Federal Parent Locator

7 Service; and

8 ‘‘(3) such other oversight, assistance, and co9 ordination activities as the Secretary may find nec10 essary and appropriate.

11 ‘‘(d) EFFECT ON OTHER LAWS.—States may enter

12 into reciprocal arrangements for the establishment and en13 forcement of child support obligations with foreign coun14 tries that are not the subject of a declaration pursuant

15 to subsection (a), to the extent consistent with Federal

16 law.’’.

17 (b) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 201(b), 203(a),

19 212(b), 213(a), 233, 244(b), and 270(a)(2) of this Act,

20 is amended—

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

22 (30);

23 (2) by striking the period at the end of para24 graph (31) and inserting ‘‘; and’’; and
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1 (3) by adding after paragraph (31) the follow2 ing new paragraph:

3 ‘‘(32)(A) provide that any request for services

4 under this part by a foreign reciprocating country or

5 a foreign country with which the State has an ar6 rangement described in section 459A(d)(2) shall be

7 treated as a request by a State;

8 ‘‘(B) provide, at State option, notwith9 standing paragraph (4) or any other provision

10 of this part, for services under the plan for en11 forcement of a spousal support order not de12 scribed in paragraph (4)(B) entered by such a

13 country (or subdivision); and

14 ‘‘(C) provide that no applications will be

15 required from, and no costs will be assessed for

16 such services against, the foreign reciprocating

17 country or foreign obligee (but costs may at

18 State option be assessed against the obligor).’’.

19 SEC. 272. FINANCIAL INSTITUTION DATA MATCHES.

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

21 sections 215, 217(a), 223, 265, and 269 of this Act, is

22 amended by adding at the end the following new para23 graph:

24 ‘‘(17) FINANCIAL INSTITUTION DATA

25 MATCHES.—
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1 ‘‘(A) IN GENERAL.—Procedures under

2 which the State agency shall enter into agree3 ments with financial institutions doing business

4 in the State—

5 ‘‘(i) to develop and operate, in coordi6 nation with such financial institutions, a

7 data match system, using automated data

8 exchanges to the maximum extent feasible,

9 in which each such financial institution is

10 required to provide for each calendar quar11 ter the name, record address, social secu12 rity number or other taxpayer identifica13 tion number, and other identifying infor14 mation for each noncustodial parent who

15 maintains an account at such institution

16 and who owes past-due support, as identi17 fied by the State by name and social secu18 rity number or other taxpayer identifica19 tion number; and

20 ‘‘(ii) in response to a notice of lien or

21 levy, encumber or surrender, as the case

22 may be, assets held by such institution on

23 behalf of any noncustodial parent who is

24 subject to a child support lien pursuant to

25 paragraph (4).
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1 ‘‘(B) REASONABLE FEES.—The State

2 agency may pay a reasonable fee to a financial

3 institution for conducting the data match pro4 vided for in subparagraph (A)(i), not to exceed

5 the actual costs incurred by such financial insti6 tution.

7 ‘‘(C) LIABILITY.—A financial institution

8 shall not be liable under any Federal or State

9 law to any person—

10 ‘‘(i) for any disclosure of information

11 to the State agency under subparagraph

12 (A)(i);

13 ‘‘(ii) for encumbering or surrendering

14 any assets held by such financial institu15 tion in response to a notice of lien or levy

16 issued by the State agency as provided for

17 in subparagraph (A)(ii); or

18 ‘‘(iii) for any other action taken in

19 good faith to comply with the requirements

20 of subparagraph (A).

21 ‘‘(D) DEFINITIONS.—For purposes of this

22 paragraph—

23 ‘‘(i) FINANCIAL INSTITUTION.—The

24 term ‘financial institution’ means any Fed25 eral or State commercial savings bank, in-
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1 cluding savings association or cooperative

2 bank, Federal- or State-chartered credit

3 union, benefit association, insurance com4 pany, safe deposit company, money-market

5 mutual fund, or any similar entity author6 ized to do business in the State; and

7 ‘‘(ii) ACCOUNT.—The term ‘account’

8 means a demand deposit account, checking

9 or negotiable withdrawal order account,

10 savings account, time deposit account, or

11 money-market mutual fund account.’’.

12 SEC. 273. ENFORCEMENT OF ORDERS AGAINST PATERNAL

13 OR MATERNAL GRANDPARENTS IN CASES OF

14 MINOR PARENTS.

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

16 sections 215, 217(a), 223, 265, 269, and 272 of this Act,

17 is amended by adding at the end the following new para18 graph:

19 ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA20 TERNAL OR MATERNAL GRANDPARENTS.—Proce21 dures under which, at the State’s option, any child

22 support order enforced under this part with respect

23 to a child of minor parents, if the custodial parents

24 of such child is receiving assistance under the State

25 program under part A, shall be enforceable, jointly
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1 and severally, against the parents of the noncusto2 dial parents of such child.’’.

3 SEC. 274. NONDISCHARGEABILITY IN BANKRUPTCY OF

4 CERTAIN DEBTS FOR THE SUPPORT OF A

5 CHILD.

6 (a) AMENDMENT TO TITLE 11 OF THE UNITED

7 STATES CODE.—Section 523(a) of title 11, United States

8 Code, is amended—

9 (1) in paragraph (16) by striking the period at

10 the end and inserting ‘‘; or’’,

11 (2) by adding at the end the following:

12 ‘‘(17) to a State or municipality for assistance

13 provided by such State or municipality under a

14 State program funded under part A of title IV of the

15 Social Security Act to the extent that such assist16 ance is provided for the support of a child of the

17 debtor.’’, and

18 (3) in paragraph (5), by striking ‘‘(26)’’ and in19 serting ‘‘(2)’’.

20 (b) AMENDMENT TO THE SOCIAL SECURITY ACT.—

21 Section 456(b) of the Social Security Act (42 U.S.C.

22 656(b)) is amended to read as follows:

23 ‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in

24 section 101 of title 11 of the United States Code) to a

25 State (as defined in such section) or municipality (as de-
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1 fined in such section) for assistance provided by such

2 State or municipality under a State program funded under

3 part A of title IV is not dischargeable under section 727,

4 1141, 1228(a), 1228(b), or 1328(b) of title 11 of the Unit5 ed States Code to the extent that such assistance is pro6 vided for the support of a child of the debtor (as defined

7 in such section).’’.

8 (c) APPLICATION OF AMENDMENTS.—The amend9 ments made by this section apply only with respect to

10 cases commenced under title 11 of the United States Code

11 after the effective date of this section.

12 Subtitle H—Medical Support

13 SEC. 276. CORRECTION TO ERISA DEFINITION OF MEDICAL

14 CHILD SUPPORT ORDER.

15 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em16 ployee Retirement Income Security Act of 1974 (29

17 U.S.C. 1169(a)(2)(B)) is amended—

18 (1) by striking ‘‘issued by a court of competent

19 jurisdiction’’;

20 (2) by striking the period at the end of clause

21 (ii) and inserting a comma; and

22 (3) by adding, after and below clause (ii), the

23 following: ‘‘if such judgment, decree, or order (I) is

24 issued by a court of competent jurisdiction or (II) is

25 issued through an administrative process established
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1 under State law and has the force and effect of law

2 under applicable State law.’’.

3 (b) EFFECTIVE DATE.—

4 (1) IN GENERAL.—The amendments made by

5 this section take effect on the date of the enactment

6 of this Act.

7 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

8 JULY 1, 1996.—Any amendment to a plan required to

9 be made by an amendment made by this section

10 shall not be required to be made before the first plan

11 year beginning on or after July 1, 1996, if—

12 (A) during the period following the day be13 fore the date of enactment of this Act and be14 fore the first plan year, the plan is operated in

15 accordance with the requirements of the amend16 ments made by this section; and

17 (B) the plan amendment applies retro18 actively to the period specified in subparagraph

19 (A).

20 A plan shall not be treated as failing to be operated in

21 accordance with the provisions of the plan merely because

22 it operates in accordance with this paragraph.
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1 SEC. 277. ENFORCEMENT OF ORDERS FOR HEALTH CARE

2 COVERAGE.

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

4 sections 215, 217(a), 223, 265, 269, 272, and 273 of this

5 Act, is amended by adding at the end the following new

6 paragraph:

7 ‘‘(19) HEALTH CARE COVERAGE.—Procedures

8 under which all child support orders established or

9 modified pursuant to this part shall include a provi10 sion for the health care coverage of the child, and

11 in the case in which a noncustodial parent provides

12 such coverage and changes employment, and the new

13 employer provides health care coverage, the State

14 agency shall transfer notice of the provision to the

15 employer, which notice shall operate to enroll the

16 child in the noncustodial parent’s health plan, unless

17 the noncustodial parent contests the notice.’’.

18 Subtitle I—Enhancing Responsibil19 ity and Opportunity for Non20 Residential Parents

21 SEC. 281. GRANTS TO STATES FOR ACCESS AND VISITATION

22 PROGRAMS.

23 Part D of title IV (42 U.S.C. 651–669) is amended

24 by adding at the end the following:
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1 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA2 TION PROGRAMS.

3 ‘‘(a) IN GENERAL.—The Secretary shall make grants

4 under this section to enable States to establish and admin5 ister programs to support and facilitate noncustodial par6 ents’ access to and visitation of their children, by means

7 of activities including mediation (both voluntary and man8 datory), counseling, education, development of parenting

9 plans, visitation enforcement (including monitoring, super10 vision and neutral drop-off and pickup), and development

11 of guidelines for visitation and alternative custody ar12 rangements.

13 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

14 to be made to a State under this section for a fiscal year

15 shall be an amount equal to the lesser of—

16 ‘‘(1) 90 percent of State expenditures during

17 the fiscal year for activities described in subsection

18 (a); or

19 ‘‘(2) the allotment of the State under sub20 section (c) for the fiscal year.

21 ‘‘(c) ALLOTMENTS TO STATES.—

22 ‘‘(1) IN GENERAL.—The allotment of a State

23 for a fiscal year is the amount that bears the same

24 ratio to the amount appropriated for grants under

25 this section for the fiscal year as the number of chil26 dren in the State living with only 1 biological parent
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1 bears to the total number of such children in all

2 States.

3 ‘‘(2) MINIMUM ALLOTMENT.—The Administra4 tion for Children and Families shall adjust allot5 ments to States under paragraph (1) as necessary

6 to ensure that no State is allotted less than—

7 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

8 or

9 ‘‘(B) $100,000 for any succeeding fiscal

10 year.

11 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

12 FOR SIMILAR ACTIVITIES.—A State to which a grant is

13 made under this section may not use the grant to supplant

14 expenditures by the State for activities specified in sub15 section (a), but shall use the grant to supplement such

16 expenditures at a level at least equal to the level of such

17 expenditures for fiscal year 1995.

18 ‘‘(e) STATE ADMINISTRATION.—Each State to which

19 a grant is made under this section—

20 ‘‘(1) may administer State programs funded

21 with the grant, directly or through grants to or con22 tracts with courts, local public agencies, or non-prof23 it private entities;

24 ‘‘(2) shall not be required to operate such pro25 grams on a statewide basis; and
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1 ‘‘(3) shall monitor, evaluate, and report on such

2 programs in accordance with regulations prescribed

3 by the Secretary.’’.

4 Subtitle J—Effect of Enactment

5 SEC. 291. EFFECTIVE DATES.

6 (a) IN GENERAL.—Except as otherwise specifically

7 provided (but subject to subsections (b) and (c))—

8 (1) the provisions of this title requiring the en9 actment or amendment of State laws under section

10 466 of the Social Security Act, or revision of State

11 plans under section 454 of such Act, are effective

12 with respect to periods beginning on and after Octo13 ber 1, 1996; and

14 (2) all other provisions of this title are effective

15 upon the date of the enactment of this Act.

16 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

17 provisions of this title shall become effective with respect

18 to a State on the later of—

19 (1) the date specified in this title, or

20 (2) the effective date of laws enacted by the leg21 islature of such State implementing such provisions,

22 but in no event later than the 1st day of the 1st calendar

23 quarter beginning after the close of the 1st regular session

24 of the State legislature that begins after the date of the

25 enactment of this Act. For purposes of the previous sen-
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1 tence, in the case of a State that has a 2-year legislative

2 session, each year of such session shall be deemed to be

3 a separate regular session of the State legislature.

4 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

5 AMENDMENT.—A State shall not be found out of compli6 ance with any requirement enacted by this title if the State

7 is unable to so comply without amending the State con8 stitution until the earlier of—

9 (1) 1 year after the effective date of the nec10 essary State constitutional amendment; or

11 (2) 5 years after the date of the enactment of

12 this Act.

13 TITLE III—FOOD ASSISTANCE

14 Subtitle A—Food Stamps

15 SEC. 301. SHORT TITLE.

16 This subtitle may be cited as ‘‘The Food Stamp Act

17 Amendments of 1996’’.

18 PART 1—BUDGETARY PROPOSALS

19 SEC. 311. INCLUDE CHILDREN UNDER 22 YEARS OLD IN

20 THEIR PARENTS’ HOUSEHOLDS.

21 Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.

22 2012(i)) is amended by striking the first parenthetical

23 phrase in the second sentence.
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1 SEC. 312. USE THE COST OF THE THRIFTY FOOD PLAN FOR

2 ALLOTMENT ADJUSTMENTS.

3 Section 3(o) of the Food Stamp Act of 1977 (7

4 U.S.C. 2012(o)) is amended—

5 (1) in clause (11), by inserting ‘‘until October

6 1, 1996,’’ after ‘‘thereafter,’’; and

7 (2) by adding a new third sentence at the end

8 as follows: ‘‘On October 1, 1996, and each October

9 1 thereafter, adjust the cost of such diet to reflect

10 the cost of the thrifty food plan in the preceding

11 June, and round the result to the nearest lower dol12 lar increment for each household size.’’.

13 SEC. 313. LOWER AGE FOR EXCLUDING STUDENTS’ EARN14 INGS.

15 Section 5(d)(7) of the Food Stamp Act of 1977 (7

16 U.S.C. 2014(d)(7)) is amended by striking ‘‘is 21 years

17 of age or younger’’ and inserting ‘‘has not reached the

18 age of 18’’.

19 SEC. 314. COUNT GOVERNMENTAL ENERGY ASSISTANCE AS

20 INCOME.

21 (a) Section 5(d)(11) of the Food Stamp Act of 1977

22 (7 U.S.C. 2014(d)) is amended to read as follows—

23 ‘‘(11) a 1-time payment or allowance made

24 under a Federal or State law for the costs of weath25 erization or emergency repair or replacement of an
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1 unsafe or inoperative furnace or other heating or

2 cooling device,’’.

3 (b) Section 5(e) of the Food Stamp Act of 1977 (7

4 U.S.C. 2014(e)) is amended by striking ‘‘If a State agency

5 elects’’ and all that follows through ‘‘season for which it

6 was provided.’’.

7 (c) Section 5(k) of the Food Stamp Act of 1977 (7

8 U.S.C. 2014(k)) is amended by—

9 (1) striking, in paragraph (1)(B), ‘‘, not includ10 ing energy or utility-cost assistance,’’;

11 (2) striking paragraph (2)(C); and

12 (3) adding at the end the following—

13 ‘‘(4)(A) For purposes of subsection (d)(1), a

14 payment made under a Federal or State law to pro15 vide energy assistance to a household shall be con16 sidered money payable directly to the household.

17 ‘‘(B) For purposes of subsection (e), an ex18 pense paid on behalf of a household under a

19 Federal or State law to provide energy assist20 ance shall be considered an out-of-pocket ex21 pense incurred and paid by the household.’’.

22 (d) Section 2605(f) of the Low-Income Home Energy

23 Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended

24 by—
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1 (1) striking ‘‘(1) Notwithstanding any other

2 provision of law unless’’ and inserting ‘‘Notwith3 standing any other provision of law except the Food

4 Stamp Act of 1977 (7 U.S.C. 2011 et seq.), and

5 any’’;

6 (2) striking, in paragraph (1), ‘‘food stamps,’’;

7 and

8 (3) striking paragraph (2).

9 SEC. 315. REDUCE THE STANDARD DEDUCTION.

10 Section 5(e) of the Food Stamp Act of 1977 (7

11 U.S.C. 2014(e)) is amended by striking the first two sen12 tences and inserting—‘‘The Secretary shall allow a stand13 ard deduction for each household in the 48 contiguous

14 States and the District of Columbia, Alaska, Hawaii,

15 Guam, and the Virgin Islands of the United States of—

16 ‘‘(i) for fiscal year 1996, $130, $222, $183,

17 $260, and $114, respectively;

18 ‘‘(ii) for fiscal years 1997 through 2000, $122,

19 $208, $171, $244, and $106, respectively; and

20 ‘‘(iii) on October 1, 2000, and each October 1

21 thereafter, the Secretary shall adjust the standard

22 deduction to the nearest lower dollar increment to

23 reflect changes in the Consumer Price Index for all

24 urban consumers published by the Bureau of Labor
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1 Statistics, for items other than food, for the 12-

2 month period ending the preceding June 30.’’.

3 SEC. 316. PROVIDE A STATE OPTION TO MANDATE USE OF

4 STANDARD UTILITY ALLOWANCES.

5 Section 5(e) of the Food Stamp Act of 1977 (7

6 U.S.C. 2014(e)) is amended by inserting before ‘‘No such

7 allowance may be used’’ the following new sentence: ‘‘A

8 State agency may make the use of a standard utility allow9 ance mandatory for all households with qualifying utility

10 costs if (1) the State agency has developed one or more

11 standards that include the cost of heating and cooling and

12 one or more standards that do not include the cost of heat13 ing and cooling; and (2) the Secretary finds that the

14 standards will not result in increased program costs.’’.

15 SEC. 317. REVISE INDEXATION OF VEHICLE ASSET LIMITA16 TION.

17 The first sentence of section 5(g)(2) of the Food

18 Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by

19 striking ‘‘through September 30, 1996’’ and all that fol20 lows through ‘‘such date and on’’ and inserting ‘‘and shall

21 be adjusted on October 1, 1996, and’’.

22 SEC. 318. COUNT VENDOR PAYMENTS FOR TRANSITIONAL

23 HOUSING AS INCOME.

24 Section 5(k)(2) of the Food Stamp Act of 1977 (7

25 U.S.C. 2014(k)(2)) is amended by—
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1 (1) striking subparagraph (F); and

2 (2) redesignating subparagraphs (G) and (H)

3 as subparagraphs (F) and (G), respectively.

4 SEC. 319. STRENGTHEN PENALTIES FOR NONCOMPLIANCE

5 WITH WORK REQUIREMENTS.

6 (a) Section 6(d) of the Food Stamp Act of 1977 (7

7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1) Unless

8 otherwise exempted by the provisions’’ and all that follows

9 through the end of paragraph (1) and inserting the follow10 ing—

11 ‘‘(d)(1)(A) No physically and mentally fit individual

12 over the age of 15 and under the age of 60 shall be eligible

13 to participate in the food stamp program if the individ14 ual—

15 ‘‘(i) refuses, at the time of application and

16 every 12 months thereafter, to register for employ17 ment in a manner prescribed by the Secretary;

18 ‘‘(ii) refuses without good cause to participate

19 in an employment and training program under para20 graph (4), to the extent required by the State agen21 cy;

22 ‘‘(iii) refuses without good cause to accept an

23 offer of employment, at a site or plant not subject

24 to a strike or lockout at the time of the refusal, at

25 a wage not less than the higher of—
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1 ‘‘(I) the applicable Federal or State mini2 mum wage; or

3 ‘‘(II) 80 percent of the wage that would

4 have governed had the minimum hourly rate

5 under section 6(a)(1) of the Fair Labor Stand6 ards Act of 1938 (29 U.S.C. 206(a)(1)) been

7 applicable to the offer of employment;

8 ‘‘(iv) refuses without good cause to provide a

9 State agency with sufficient information to allow the

10 State agency to determine the employment status or

11 the job availability of the individual;

12 ‘‘(v) voluntarily and without good cause—

13 ‘‘(I) quits a job; or

14 ‘‘(II) reduces work effort and, after the re15 duction, the individual is working less than 30

16 hours per week; or

17 ‘‘(vi) fails to comply with section 20.

18 ‘‘(B) If an individual who is the head of a household

19 becomes ineligible to participate in the food stamp pro20 gram under subparagraph (A), the household shall, at the

21 option of the State agency, become ineligible to participate

22 in the food stamp program for a period, determined by

23 the State agency, that does not exceed the lesser of—

24 ‘‘(i) the duration of the ineligibility of the indi25 vidual determined under subparagraph (C); or
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1 ‘‘(ii) 180 days.

2 ‘‘(C)(i) The first time that an individual becomes in3 eligible to participate in the food stamp program under

4 subparagraph (A), the individual shall remain ineligible

5 until the later of—

6 ‘‘(I) the date the individual becomes eligible

7 under subparagraph (A);

8 ‘‘(II) the date that is 1 month after the date

9 the individual became ineligible; or

10 ‘‘(III) a date determined by the State agency

11 that is not later than 3 months after the date the

12 individual became ineligible.

13 ‘‘(ii) The second time that an individual becomes in14 eligible to participate in the food stamp program under

15 subparagraph (A), the individual shall remain ineligible

16 until the later of—

17 ‘‘(I) the date the individual becomes eligible

18 under subparagraph (A);

19 ‘‘(II) the date that is 3 months after the date

20 the individual became ineligible; or

21 ‘‘(III) a date determined by the State agency

22 that is not later than 6 months after the date the

23 individual became ineligible.

24 ‘‘(iii) The third or subsequent time that an individual

25 becomes ineligible to participate in the food stamp pro-
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1 gram under subparagraph (A), the individual shall remain

2 ineligible until the later of—

3 ‘‘(I) the date the individual becomes eligible

4 under subparagraph (A);

5 ‘‘(II) the date that is 6 months after the date

6 the individual became ineligible;

7 ‘‘(III) a date determined by the State agency;

8 or

9 ‘‘(IV) at the option of the State agency, perma10 nently.

11 ‘‘(D)(i) The Secretary shall determine the meaning

12 of ‘good cause’ for the purpose of this paragraph.

13 ‘‘(ii) The Secretary shall determine the meaning of

14 ‘voluntarily quitting’ and ‘reduces work effort’ for the pur15 pose of this paragraph.

16 ‘‘(iii)(I) Subject to subclause (II) and clauses (i) and

17 (ii), a State agency shall determine—

18 ‘‘(aa) the meaning of any term in subparagraph

19 (A);

20 ‘‘(bb) the procedures for determining whether

21 an individual is in compliance with a requirement

22 under subparagraph (A); and

23 ‘‘(cc) whether an individual is in compliance

24 with a requirement under subparagraph (A).
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1 ‘‘(II) A State agency may not determine a meaning,

2 procedure, or determination under subclause (I) to be less

3 restrictive than a comparable meaning, procedure, or de4 termination under a State program funded under part A

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

6 seq.).

7 ‘‘(iv) For the purpose of subparagraph (A)(v), an em8 ployee of the Federal Government, a State, or a political

9 subdivision of a State, who is dismissed for participating

10 in a strike against the Federal Government, the State, or

11 the political subdivision of the State shall be considered

12 to have voluntarily quit without good cause.

13 ‘‘(v)(I) For the purpose of this paragraph, the State

14 agency shall allow the household to select any adult parent

15 of a child in the household as the head of the household

16 if all adult household members making application under

17 the food stamp program agree to the selection.

18 ‘‘(II) A household may designate the head of the

19 household under subclause (I) each time the household is

20 certified for participation in the food stamp program, but

21 may not change the designation during a certification pe22 riod unless there is a change in the composition of the

23 household.

24 ‘‘(vi) If the head of a household leaves the household

25 during a period in which the household is ineligible to par-
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1 ticipate in the food stamp program under subparagraph

2 (B)—

3 ‘‘(I) the household shall, if otherwise eligible,

4 become eligible to participate in the food stamp pro5 gram; and

6 ‘‘(II) if the head of the household becomes the

7 head of another household, the household that be8 comes headed by the individual shall become ineli9 gible to participate in the food stamp program for

10 the remaining period of ineligibility.’’.

11 (b)(1) The second sentence of section 17(b)(2) of the

12 Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amend13 ed by striking ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.

14 (2) Section 20 of the Food Stamp Act of 1977 (7

15 U.S.C. 2029) is amended by striking subsection (f) and

16 inserting the following—

17 ‘‘(f) An individual or a household may become ineli18 gible under section 6(d)(1) to participate in the food

19 stamp program for failing to comply with this section.’’.

20 SEC. 320. PROVIDE A STATE OPTION TO REQUIRE CO21 OPERATION WITH CHILD SUPPORT ENFORCE22 MENT AGENCIES.

23 (a) Section 6 of the Food Stamp Act of 1977 (7

24 U.S.C. 2015) is amended by adding new subsections (i)

25 and (j) at the end as follows:
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1 ‘‘(i) At the option of the State, no natural or adoptive

2 parent or other individual who is living with and exercising

3 parental control over a child under the age of eighteen

4 who has an absent parent shall be eligible to participate

5 in the food stamp program unless the natural or adoptive

6 parent or individual cooperates with the State agency ad7 ministering the program under part D of title IV of the

8 Social Security Act (or is determined by such State agency

9 to have good cause not to cooperate) in (1) establishing

10 the paternity of such child (if born out of wedlock), and

11 (2) obtaining support for such child or for the parent or

12 individual and for such child. Notwithstanding any provi13 sion of part D of title IV of the Social Security Act, no

14 person required under this subsection to cooperate with

15 the State agency administering the program under part

16 D of title IV of the Social Security Act may be required

17 to pay a fee or other costs for services provided under such

18 program.

19 ‘‘(j)(1) At the option of a State agency, subject to

20 paragraphs (2) and (3), a putative or identified non-custo21 dial parent of a child under the age of 18 (referred to

22 in this subsection as ‘the individual’) shall not be eligible

23 to participate in the food stamp program if the individual

24 refuses to cooperate with the State agency administering
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1 the program established under part D of title IV of the

2 Social Security Act (42 U.S.C. 651 et seq.)—

3 ‘‘(A) in establishing the paternity of the child

4 (if the child is born out of wedlock); and

5 ‘‘(B) in providing support for the child.

6 ‘‘(2)(A) The Secretary, in consultation with the Sec7 retary of Health and Human Services, shall develop guide8 lines on what constitutes a refusal to cooperate under

9 paragraph (1).

10 ‘‘(B) The State agency shall develop procedures,

11 using guidelines developed under subparagraph (A), for

12 determining whether an individual is refusing to cooperate

13 under paragraph (1).

14 ‘‘(3) Paragraph (1) shall not require the payment of

15 a fee or other cost for services provided under part D of

16 title IV of the Social Security Act (42 U.S.C. 651 et seq.).

17 ‘‘(4) The State agency shall have in effect, with re18 spect to information collected by the State agency admin19 istering the program established under part D of title IV

20 of the Social Security Act (42 U.S.C. 651 et seq.)—

21 ‘‘(A) procedures for obtaining such information

22 which are compatible with procedures established

23 under and consistent with the requirements of that

24 part; and
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1 ‘‘(B) safeguards on the maintenance, disclosure,

2 and use of such information which comply with

3 standards and requirements of that part with re4 spect to such safeguards.’’.

5 SEC. 321. PROVIDE FOR DISQUALIFICATION FOR RECEIPT

6 OF MULTIPLE FOOD STAMP BENEFITS.

7 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

8 2015), as amended by this Act, is further amended by

9 adding at the end the following new subsection—

10 ‘‘(k) An individual shall be ineligible to participate

11 in the food stamp program as a member of any household

12 for a 10-year period if the individual is found by a State

13 agency to have made, or is convicted in Federal or State

14 court of having made, a fraudulent statement or represen15 tation with respect to the identity or place of residence

16 of the individual in order to receive multiple benefits si17 multaneously under the food stamp program.’’.

18 SEC. 322. ESTABLISH ADDITIONAL WORK REQUIREMENT.

19 (a) Section 6 of the Food Stamp Act of 1977 (7

20 U.S.C. 2015), as amended by this Act, is further amended

21 by adding at the end the following new subsection—

22 ‘‘(l)(1) In this subsection, the term ‘work program’

23 means—

24 ‘‘(A) a program under the Job Training Part25 nership Act (29 U.S.C. 1501 et seq.);
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1 ‘‘(B) a program under section 236 of the Trade

2 Act of 1974 (19 U.S.C. 2296); or

3 ‘‘(C) a program of employment or training op4 erated or supervised by a State or local government

5 which meets standards deemed appropriate by the

6 Governor, including a program under section

7 6(d)(4).

8 ‘‘(2) An individual is not eligible to participate in the

9 food stamp program as a member of any household if, dur10 ing the preceding 12 months, the individual received food

11 stamp benefits for not less than 6 months during which

12 the individual did not—

13 ‘‘(A) work 20 hours or more per week, averaged

14 monthly;

15 ‘‘(B) participate in a workfare program under

16 section 20 or a comparable State or local workfare

17 program;

18 ‘‘(C) participate in and comply with the require19 ments of an approved employment and training pro20 gram under subsection (d)(4); or

21 ‘‘(D) participate in and comply with the re22 quirements of a work program for 20 hours or more

23 per week.

24 ‘‘(3) Paragraph (2) shall not apply to an individual

25 if the individual is—
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1 ‘‘(A) under 18 or over 50 years of age;

2 ‘‘(B) medically certified as physically or men3 tally unfit for employment;

4 ‘‘(C) a parent or other member of a household

5 with a dependent child under 18 years of age;

6 ‘‘(D) a pregnant woman;

7 ‘‘(E) unable to participate in an employment

8 and training program because the State in which the

9 individual resides does not provide sufficient oppor10 tunities for participation in such programs; or

11 ‘‘(F) otherwise exempt under section 6(d)(2).

12 ‘‘(4)(A) The Secretary may waive the applicability of

13 paragraph (2) to any group of individuals in the State if

14 the Secretary makes a determination that the area in

15 which the individuals reside—

16 ‘‘(i) has an unemployment rate of over 7 per17 cent; or

18 ‘‘(ii) does not have a sufficient number of jobs

19 to provide employment for the individuals.

20 ‘‘(B) The Secretary shall report the basis for a waiver

21 under subparagraph (A) to the Committee on Agriculture

22 of the House of Representatives and the Committee on

23 Agriculture, Nutrition, and Forestry of the Senate.’’.
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1 (b) Section 16(h) of the Food Stamp Act of 1977

2 (7 U.S.C. 2025(h)) is amended by striking paragraph (1)

3 and inserting the following—

4 ‘‘(1)(A) To carry out employment and training

5 programs, the Secretary shall reserve for allocation

6 to State agencies from funds made available for each

7 fiscal year under section 18(a)(1) the amount of—

8 ‘‘(i) for fiscal year 1996, $75,000,000;

9 ‘‘(ii) for fiscal year 1997, $80,000,000;

10 ‘‘(iii) for fiscal year 1998, $90,000,000;

11 ‘‘(iv) for fiscal year 1999, $95,000,000;

12 ‘‘(v) for fiscal year 2000, $95,000,000;

13 ‘‘(vi) for fiscal year 2001, $95,000,000;

14 and

15 ‘‘(vii) for fiscal year 2002, $95,000,000.

16 ‘‘(B) A State agency shall not reduce non-Fed17 eral expenditures to carry out employment and

18 training programs during any fiscal year after fiscal

19 year 1995 from the level of State agency expendi20 tures to carry out employment and training pro21 grams in fiscal year 1995.

22 ‘‘(C) The Secretary shall allocate the amounts

23 reserved under subparagraph (A) among the State

24 agencies using a reasonable formula (as determined
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1 by the Secretary) that considers the population in

2 each State affected by section 6(d)(4)(O).

3 ‘‘(D)(i) A State agency promptly shall notify

4 the Secretary if the State agency determines that

5 the State agency will not expend all of the funds al6 located to the State agency under subparagraph (C).

7 ‘‘(ii) On notification under clause (i), the Sec8 retary shall reallocate the funds that the State agen9 cy will not expend as the Secretary considers appro10 priate and equitable.

11 ‘‘(E) Notwithstanding subparagraphs (A)

12 through (D), the Secretary shall ensure that each

13 State agency operating an employment and training

14 program shall receive not less than $50,000 in each

15 fiscal year.’’.

16 (c) Section 16(h)(2) of the Food Stamp Act of 1977

17 (7 U.S.C. 2025(h)(2)) is amended by inserting before the

18 period at the end the following—

19 ‘‘, including the costs for case management and case20 work to facilitate the transition from economic dependency

21 to self-sufficiency through work’’.
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1 SEC. 323. ESTABLISH COMPARABLE TREATMENT FOR DIS2 QUALIFICATION.

3 (a) Section 6 of the Food Stamp Act of 1977 (7

4 U.S.C. 2015), as amended by this Act, is further amended

5 by adding at the end the following new subsection—

6 ‘‘(m)(1) If a disqualification is imposed on a member

7 of a household for a failure of the member to perform an

8 action required under a Federal, State, or local law relat9 ing to a means tested public assistance program, the State

10 agency may impose the same disqualification on the mem11 ber of the household under the food stamp program.

12 ‘‘(2) If a disqualification is imposed under paragraph

13 (1) for a failure of an individual to perform an action re14 quired under part A of title IV of the Social Security Act

15 (42 U.S.C. 601 et seq.), the State agency may use the

16 rules and procedures that apply under part A of title IV

17 of the Social Security Act (42 U.S.C. 601 et seq.) to im18 pose the same disqualification under the food stamp pro19 gram.

20 ‘‘(3) A member of a household disqualified under

21 paragraph (1) may, after the disqualification period has

22 expired, apply for benefits under this Act and shall be

23 treated as a new applicant, except that a prior disquali24 fication under subsection (d) shall be considered in deter25 mining eligibility.’’.
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1 (b) Section 11(e) of the Food Stamp Act of 1977 (7

2 U.S.C. 2020(e)) is amended—

3 (1) in paragraph (24), by striking ‘‘and’’ at the

4 end;

5 (2) in paragraph (25), by striking the period at

6 the end and inserting a semicolon; and

7 (3) by adding at the end the following—

8 ‘‘(26) the guidelines the State agency uses in

9 carrying out section 6(m); and’’.

10 (c) Section 6(d)(2)(A) of the Food Stamp Act of

11 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking

12 ‘‘that is comparable to a requirement of paragraph (1)’’.

13 SEC. 324. REPEAL MINIMUM BENEFIT ADJUSTMENTS.

14 Section 8(a) of the Food Stamp Act of 1977 (7

15 U.S.C. 2017(a)) is amended by striking in the proviso ‘‘,

16 and shall be adjusted’’ and all that follows through ‘‘$5’’.

17 SEC. 325. PRORATE BENEFITS ON RECERTIFICATION.

18 Section 8(c)(2)(B) of the Food Stamp Act of 1977

19 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

20 than one month’’.
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1 SEC. 326. PROHIBIT ALLOTMENT INCREASES FOR PEN2 ALTIES UNDER OTHER WELFARE AND PUB3 LIC ASSISTANCE PROGRAMS.

4 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

5 2017) is amended by striking subsection (d) and inserting

6 the following—

7 ‘‘(d) If the benefits of a household are reduced under

8 a Federal, State, or local law relating to a welfare or pub9 lic assistance program because of a penalty or for the fail10 ure to perform an action required under the law or pro11 gram, for the duration of the reduction the household may

12 not receive an increased allotment as the result of a de13 crease in the income of the household to the extent that

14 the decrease is the result of the reduction. The State agen15 cy may reduce the allotment of the household by not more

16 than 25 percent.’’.

17 SEC. 327. PERMIT STATES TO DETERMINE MOST USEFUL

18 AND RELIABLE MEANS OF VERIFICATION.

19 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

20 2020) is amended by—

21 (1) striking in subsection (e)(3) all that follows

22 ‘‘, and that the State agency shall’’ through ‘‘(E)’’;

23 (2) inserting after the paragraph designation

24 (19) of subsection (e) ‘‘at the option of the State

25 agency,’’; and
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1 (3) adding at the end the following new sub2 section—

3 ‘‘(p) Notwithstanding any other provision of law,

4 State agencies (described in section 3(n)(1) of this Act)

5 shall not be required to use an income and eligibility ver6 ification system established under section 1137 of the So7 cial Security Act (42 U.S.C. 1320b–7) or the immigration

8 status verification system established under section

9 1137(d) of the Social Security Act (42 U.S.C. 1320b–

10 7Id)).’’.

11 SEC. 328. EXPAND CLAIMS COLLECTION METHODS.

12 (a) Section 13 of the Food Stamp Act of 1977 (7

13 U.S.C. 2022) is amended by—

14 (1) striking subsection (b) and inserting the fol15 lowing—

16 ‘‘(b)(1) Except as otherwise provided in this sub17 section, a State agency shall collect any overissuance of

18 coupons issued to a household by—

19 ‘‘(A) reducing the allotment of the household;

20 ‘‘(B) withholding amounts from unemployment

21 compensation from a member of the household

22 under subsection (c);

23 ‘‘(C) recovering from Federal pay or a Federal

24 income tax refund under subsection (d); or

25 ‘‘(D) any other means.
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1 ‘‘(2) Paragraph (1) shall not apply if the State agen2 cy demonstrates to the satisfaction of the Secretary that

3 all of the means referred to in paragraph (1) are not cost

4 effective.

5 ‘‘(3) If a household received an overissuance of cou6 pons without any member of the household being found

7 ineligible to participate in the program under section

8 6(b)(1) and a State agency elects to reduce the allotment

9 of the household under paragraph (1)(A), the State agen10 cy shall reduce the monthly allotment of the household

11 under paragraph (1)(A) by the greater of—

12 ‘‘(A) 10 percent of the monthly allotment of the

13 household; or

14 ‘‘(B) $10.

15 ‘‘(4) A State agency shall collect an overissuance of

16 coupons issued to a household under paragraph (1) in ac17 cordance with requirements established by the State agen18 cy for providing notice, electing a means of payment, and

19 establishing a time schedule for payment.’’; and

20 (2) in subsection (d) by—

21 (A) striking ‘‘as determined under sub22 section (b) and except for claims arising from

23 an error of the State agency,’’ and inserting ‘‘,

24 as determined under subsection (b)(1),’’; and
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1 (B) inserting before the period at the end

2 the following—

3 ‘‘or a Federal income tax refund as authorized by sec4 tion 3720A of title 31, United States Code’’.

5 (b) Section 11(e)(8) of the Food Stamp Act of 1977

6 (7 U.S.C. 2020(e)(8)) is amended by—

7 (1) striking ‘‘and excluding claims’’ and all that

8 follows through ‘‘such section’’; and

9 (2) inserting before the semicolon at the end

10 the following—

11 ‘‘or a Federal income tax refund as authorized by sec12 tion 3720A of title 31, United States Code’’.

13 (c) Section 16(a) of the Food Stamp Act of 1977 (7

14 U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur15 ing the period beginning October 1, 1990’’ and all that

16 follows through ‘‘error of a State agency’’ and inserting

17 the following—

18 ‘‘25 percent of the overissuances collected by the

19 State agency under section 13, except those overissuances

20 arising from an error of the State agency’’.

21 (d) Section 6402(d) of the Internal Revenue Code (26

22 U.S.C. 6402(d)) is amended by—

23 (1) inserting in paragraph (1) after ‘‘any Fed24 eral agency’’ the following—
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1 ‘‘(or any State agency that has the responsibility for

2 the administration of the food stamp program operated

3 pursuant to the Food Stamp Act of 1977)’’; and

4 (2) inserting in the second sentence of para5 graph (2) after ‘‘a Federal agency’’ the following:

6 ‘‘(or a State agency that has the responsibility for

7 the administration of the food stamp program oper8 ated pursuant to the Food Stamp Act of 1977)’’.

9 SEC. 329. AUTHORIZE STATES TO OPERATE SIMPLIFIED

10 FOOD STAMP PROGRAMS.

11 (a) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

12 seq.) is amended by adding the following new section 24—

13 ‘‘SIMPLIFIED FOOD STAMP PROGRAM

14 ‘‘SEC. 24. (a) In this section, the term ‘Federal costs’

15 does not include any Federal costs incurred under section

16 17.

17 ‘‘(b) Subject to subsection (d), a State may elect to

18 carry out a Simplified Food Stamp Program (referred to

19 in this section as ‘Simplified Program’) for households de20 scribed in paragraph (c)(1), statewide or in a political sub21 division of the state, in accordance with this section.

22 ‘‘(c) If a State elects to carry out a Simplified Pro23 gram, within the State or a political subdivision of the

24 State—

25 ‘‘(1) only households in which all members re26 ceive assistance under a State program funded
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1 under part A of title IV of the Social Security Act

2 (42 U.S.C. 601 et seq.) shall receive benefits under

3 this section. Such households shall be eligible auto4 matically to participate in the Simplified Program;

5 and

6 ‘‘(2) subject to subsection (f), benefits under

7 the Simplified Program shall be determined under

8 rules and procedures established by the State

9 under—

10 ‘‘(A) a State program funded under part A

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

12 601 et seq.);

13 ‘‘(B) the food stamp program; or

14 ‘‘(C) a combination of a State program

15 funded under part A of title IV of the Social

16 Security Act (42 U.S.C. 601 et seq.) and the

17 food stamp program.

18 ‘‘(d)(1) A State agency may not operate a Simplified

19 Program unless the Secretary approves a State plan for

20 the operation of the Simplified Program under paragraph

21 (2).

22 ‘‘(2) The Secretary may approve any State plan to

23 carry out a Simplified Program if the Secretary deter24 mines that the plan—
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1 ‘‘(A) simplifies program administration while

2 fulfilling the goals of the food stamp program to

3 permit low-income households to obtain a more nu4 tritious diet;’’

5 ‘‘(B) complies with this section;

6 ‘‘(C) would not increase Federal costs for any

7 fiscal year; and

8 ‘‘(D) would not substantially alter, as deter9 mined by the Secretary, the appropriate distribution

10 of benefits according to household need.

11 ‘‘(e)(1) During each fiscal year and not later than

12 90 days after the end of each fiscal year, the Secretary

13 shall determine, using data provided by the State agency

14 and which the Secretary considers appropriate, whether

15 a Simplified Program being carried out by a State agency

16 is increasing Federal costs under this Act above what the

17 costs would have been for the same population had they

18 been subject to the rules of the Food Stamp Program.

19 ‘‘(2) If the Secretary determines that the Simplified

20 Program has increased Federal costs under this Act for

21 any fiscal year or any portion of any fiscal year, the Sec22 retary shall notify the State not later than 30 days after

23 the Secretary makes the determination under paragraph

24 (1).
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1 ‘‘(3)(A) Not later than 90 days after the date of a

2 notification under paragraph (2), the State shall submit

3 a plan for approval by the Secretary for prompt corrective

4 action that is designed to prevent the Simplified Program

5 from increasing Federal costs under this Act.

6 ‘‘(B) If the State does not submit a plan under sub7 paragraph (A) or carry out a plan approved by the Sec8 retary, the Secretary shall terminate the approval of the

9 State agency operating the Simplified Program and the

10 State agency shall be ineligible to operate a future Sim11 plified Program.

12 ‘‘(f)(1) In operating a Simplified Program, a State

13 or political subdivision of a State may follow the rules and

14 procedures established by the State or political subdivision

15 under a State program funded part A of title IV of the

16 Social Security Act (42 U.S.C. 601 et seq.) or under the

17 food stamp program.

18 ‘‘(2) In operating a Simplified Program, a State or

19 political subdivision shall comply with the requirements

20 of—

21 ‘‘(A) subsection 5(e) to the extent that it re22 quires an excess shelter expense deduction;

23 ‘‘(B) section 7(a) through (g);

24 ‘‘(C) section 8(a) (except that the income of a

25 household may be determined under a State pro-
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1 gram funded under part A of title IV of the Social

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

3 ‘‘(D) section 8(b) and (d);

4 ‘‘(E) section 11(a), (c), (d), and (n);

5 ‘‘(F) section 11(e) (8), (9), (12), (15), (17),

6 (19), (23), and (24);

7 ‘‘(G) section 11(e)(2), to the extent that it re8 quires the State agency to provide an application to

9 households on the first day they contact a food

10 stamp office in person during office hours to make

11 what reasonably may be interpreted as an oral or

12 written request for food stamp assistance and to

13 allow those households to file the application on the

14 same day.

15 ‘‘(H) section 11(e)(3), to the extent that it re16 quires the State agency to complete certification of

17 an eligible household and provide an allotment retro18 active to the period of application to an eligible

19 household not later than 30 days following the filing

20 of an application;

21 ‘‘(I) section 11(e)(10) (or a comparable require22 ment established by the State under a State pro23 gram funded under part A of title IV of the Social

24 Security Act (42 U.S.C. 601 et seq.)); and

25 ‘‘(J) section 16.
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1 ‘‘(3) Notwithstanding any other provision of this sec2 tion, a household may not receive benefits under this sec3 tion as a result of the eligibility of the household under

4 a State program funded under part A of title IV of the

5 Social Security Act (42 U.S.C. 601 et seq.), unless the

6 Secretary determines that any household with income

7 above 130 percent of the poverty guidelines is not eligible

8 for the Program.’’.

9 (b) Section 8 of the Food Stamp Act of 1977 (7

10 U.S.C. 2017), as amended by this Act, is further amended

11 by striking subsection (e) and redesignating subsection (f)

12 as subsection (e).

13 (c) Section 11(e) of the Food Stamp Act of 1977 (7

14 U.S.C. 2020(e)), as amended by this Act, is further

15 amended by adding after paragraph (26), as added by sec16 tion 323(b) of this Act, the following new paragraph—

17 ‘‘(27) if a State elects to carry out a Simplified

18 Food Stamp Program under section 24, the plans of

19 the State agency for operating the Simplified Pro20 gram, including—

21 ‘‘(A) the rules and procedures to be fol22 lowed by the State to determine food stamp

23 benefits; and
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1 ‘‘(B) a description of the method by which

2 the State will carry out a quality control system

3 under section 16(c).’’.

4 (d) Section 17 of the Food Stamp Act of 1977 (7

5 U.S.C. 2026) is amended by—

6 (1) striking subsection (i); and

7 (2) redesignating subsections (j) through (l) as

8 subsections (i) through (k), respectively.

9 SEC. 330. REAUTHORIZE APPROPRIATIONS FOR THE FOOD

10 STAMP PROGRAM.

11 The first sentence of section 18(a)(1) of the Food

12 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

13 striking ‘‘1997’’ and inserting ‘‘2002’’.

14 PART 2—NONBUDGETARY PROPOSALS

15 SEC. 341. EXPAND DEFINITION OF COUPON.

16 Section 3(d) of the Food Stamp Act of 1977 (7

17 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi18 cate’’ and inserting ‘‘type of certificate, authorization

19 card, cash or check issued in lieu of a coupon, or an access

20 device, including an electronic benefits transfer card or a

21 personal identification number,’’.

22 SEC. 342. CLARIFY DEFINITION OF HOMELESS INDIVIDUAL.

23 Section 3(s)(2)(C) of the Food Stamp Act of 1977

24 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

25 more than 90 days’’ after ‘‘temporary accommodation’’.
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1 SEC. 343. PROVIDE STATE OPTION FOR ELIGIBILITY STAND2 ARDS.

3 Section 5(b) of the Food Stamp Act of 1977 (7

4 U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec5 retary’’ and inserting the following—

6 ‘‘(b) Except as otherwise provided in this Act, the

7 Secretary’’.

8 SEC. 344. DOUBLE PENALTIES FOR VIOLATING FOOD

9 STAMP PROGRAM REQUIREMENTS.

10 Section 6(b)(1) of the Food Stamp Act of 1977 (7

11 U.S.C. 2015(b)(1)) is amended—

12 (1) in clause (i), by striking ‘‘six months upon’’

13 and inserting ‘‘1 year on’’; and

14 (2) in clause (ii), by striking ‘‘1 year’’ and in15 serting ‘‘2 years’’.

16 SEC. 345. PROVIDE STATE OPTION TO LOWER AGE OF

17 CARETAKER EXEMPTION.

18 Section 6(d)(2) of the Food Stamp Act of 1977 (7

19 U.S.C. 2015(d)(2)) is amended by striking subparagraph

20 (B) and inserting the following—

21 ‘‘(B) a parent or other member of a house22 hold with responsibility for the care of (i) a de23 pendent child under the age of 6 or any lower

24 age designated by the State agency that is not

25 under the age of 1 if adequate child care is not

26 available, or (ii) an incapacitated person;’’.
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1 SEC. 346. REVISE EMPLOYMENT AND TRAINING.

2 (a) IN GENERAL.—Section 6(d)(4) of the Food

3 Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—

4 (1) in subparagraph (A)—

5 (A) by striking ‘‘Not later than April 1,

6 1987, each’’ and inserting ‘‘Each’’;

7 (B) by inserting ‘‘work,’’ after ‘‘skills,

8 training,’’; and

9 (C) by adding at the end the following—

10 ‘‘Each component of an employment and training

11 program carried out under this paragraph may be deliv12 ered through a statewide workforce development system,

13 unless the component is not available locally through the

14 statewide workforce development system.’’;

15 (2) in subparagraph (B)—

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

17 striking the colon at the end and inserting the

18 following—

19 ‘‘, except that the State agency shall retain the option

20 to apply employment requirements prescribed under this

21 subparagraph to a program applicant at the time of appli22 cation:’’;

23 (B) in clause (i), by striking ‘‘with terms

24 and conditions’’ and all that follows through

25 ‘‘time of application’’; and

26 (C) in clause (iv)—
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1 (i) by striking subclauses (I) and (II);

2 and

3 (ii) by redesignating subclauses (III)

4 and (IV) as subclauses (I) and (II), respec5 tively;

6 (3) in subparagraph (D)—

7 (A) in clause (i), by striking ‘‘to which the

8 application’’ and all that follows through ‘‘30

9 days or less’’;

10 (B) in clause (ii), by striking ‘‘but with re11 spect’’ and all that follows through ‘‘child

12 care’’; and

13 (C) in clause (iii), by striking ‘‘, on the

14 basis of’’ and all that follows through ‘‘clause

15 (ii)’’ and inserting ‘‘the exemption continues to

16 be valid’’;

17 (4) in subparagraph (E), by striking the third

18 sentence;

19 (5) in subparagraph (G)—

20 (A) by striking ‘‘(G)(i) The State’’ and in21 serting ‘‘(G) The State’’; and

22 (B) by striking clause (ii);

23 (6) in subparagraph (H), by striking ‘‘(H)(i)

24 The Secretary’’ and all that follows through ‘‘(ii)

25 Federal funds’’ and inserting ‘‘(H) Federal funds’’;
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1 (7)(A) by striking subparagraphs (K) and (L)

2 and inserting the following—

3 ‘‘(K) Notwithstanding any other provision

4 of this paragraph, the amount of funds a State

5 agency uses to carry out this paragraph (includ6 ing under subparagraph (I)) for participants

7 who are receiving benefits under a State pro8 gram funded under part A of title IV of the So9 cial Security Act (42 U.S.C. 601 et seq.) shall

10 not exceed the amount of funds the State agen11 cy used in fiscal year 1995 to carry out this

12 paragraph for participants who were receiving

13 benefits in fiscal year 1995 under a State pro14 gram funded under part A of title IV of the So15 cial Security Act (42 U.S.C. 601 et seq.).’’; and

16 (B) by redesignating subparagraphs (M) and

17 (N) as subparagraphs (L) and (M), respectively; and

18 (8) in subparagraph (L) (as redesignated by

19 paragraph (8)(B))—

20 (A) by striking ‘‘(L)(i) The Secretary’’ and

21 inserting ‘‘(L) The Secretary’’; and

22 (B) by striking clause (ii).

23 (b) Section 16(h) of the Food Stamp Act of 1977

24 (7 U.S.C. 2025(h)) is amended—

25 (1) in paragraph (5)—
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1 (A) by striking ‘‘(5)(A) The Secretary’’

2 and inserting ‘‘(5) The Secretary’’; and

3 (B) by striking subparagraph (B); and

4 (2) by striking paragraph (6).

5 SEC. 347. DISQUALIFY FLEEING FELONS.

6 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

7 2015), as amended by this Act, is further amended by

8 adding at the end the following new subsection—

9 ‘‘(k) No member of a household who is otherwise eli10 gible to participate in the food stamp program shall be

11 eligible to participate in the program as a member of that

12 or any other household during any period during which

13 the individual is—

14 ‘‘(1) fleeing to avoid prosecution, or custody or

15 confinement after conviction, under the law of the

16 place from which the individual is fleeing, for a

17 crime, or attempt to commit a crime, that is a felony

18 under the law of the place from which the individual

19 fleeing or that, in the case of New Jersey, is a high

20 misdemeanor under the law of New Jersey; or

21 ‘‘(2) violating a condition of probation or parole

22 imposed under Federal or State law.’’.
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1 SEC. 348. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

2 SYSTEMS.

3 (a) Section 7(g) of the Food Stamp Act of 1977 (7

4 U.S.C. 2016(g)) is amended by—

5 (1) striking ‘‘(1)’’;

6 (2) striking paragraph (2); and

7 (3) striking ‘‘(A)’’ and ‘‘(B)’’ and inserting in

8 lieu thereof ‘‘(1)’’ and ‘‘(2)’’, respectively.

9 (b) Section 7(i) of the Food Stamp Act of 1977 (7

10 U.S.C. 2016(i) is amended by—

11 (1) striking paragraph (1) and inserting the fol12 lowing—

13 ‘‘(1)(A) Each State agency shall implement an

14 electronic benefit transfer system in which household

15 benefits determined under section 8(a) or 24 are is16 sued from and stored in a central databank before

17 October 1, 2002, unless the Secretary provides a

18 waiver for a State agency that faces unusual bar19 riers to implementing an electronic benefit transfer

20 system.

21 ‘‘(B) Subject to paragraph (2), a State agency

22 may procure and implement an electronic benefit

23 transfer system under the terms, conditions, and de24 sign that the State agency considers appropriate.
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1 ‘‘(C) An electronic benefit transfer system

2 should take into account generally accepted standard

3 operating rules based on—

4 ‘‘(i) commercial electronic funds transfer

5 technology;

6 ‘‘(ii) the need to permit interstate oper7 ation and law enforcement monitoring; and

8 ‘‘(iii) the need to permit monitoring and

9 investigations by authorized law enforcement

10 agencies.’’;

11 (2) striking subparagraph (2)(A) and redesig12 nating subparagraphs (B) through (H) as (A)

13 through (G), respectively; and

14 (3) adding at the end the following—

15 ‘‘(7) A State agency may collect a charge for

16 replacement of an electronic benefit transfer card by

17 reducing the monthly allotment of the household re18 ceiving the replacement card.

19 ‘‘(8)(A) A State agency may require that an

20 electronic benefit card contain a photograph of 1 or

21 more members of a household.

22 ‘‘(B) If a State agency requires a photograph

23 on an electronic benefit card under subparagraph

24 (A), the State agency shall establish procedures to

25 ensure that any other appropriate member of the
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1 household or any authorized representative of the

2 household may utilize the card.’’; and

3 (c) Section 10 of the Food Stamp Act of 1977 (7

4 U.S.C. 2019) is amended by inserting before the period

5 at the end of the first sentence the following: ‘‘unless such

6 centers, organizations, institutions, shelters, group living

7 arrangements, and establishments are equipped with

8 point-of-sale devices for the purpose of participating in

9 electronic benefit transfer delivery systems’’.

10 SEC. 349. AUTHORIZE EXCHANGE OF LAW ENFORCEMENT

11 INFORMATION.

12 Section 11(e)(8) of the Food Stamp Act of 1977 (7

13 U.S.C. 2020(e)(8)), as amended by this Act, is further

14 amended as follows—

15 (1) by striking ‘‘and’’ before ‘‘(C)’’; and

16 (2) by adding at the end the following: ‘‘and

17 (D) notwithstanding any other law, the address, so18 cial security number, and, if available, photograph of

19 any member of a household shall be made available,

20 on request, to any Federal, State, or local law en21 forcement officer if the officer furnishes the State

22 agency with the name of the member and notifies

23 the agency that—

24 ‘‘(i) the member—
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1 ‘‘(I) is fleeing to avoid prosecu2 tion, or custody or confinement after

3 conviction, for a crime (or attempt to

4 commit a crime) that, under the law

5 of the place the member is fleeing, is

6 a felony (or, in the case of New Jer7 sey, a high misdemeanor), or is violat8 ing a condition of probation or parole

9 imposed under Federal or State law;

10 or

11 ‘‘(II) has information that is nec12 essary for the officer to conduct an of13 ficial duty relayed to subclause (I);

14 ‘‘(ii) locating or apprehending the

15 member is an official duty; and

16 ‘‘(iii) the request is being made in the

17 proper exercise of an official duty; and

18 ‘‘(E) the safeguards shall not prevent com19 pliance with paragraph (16);’’.

20 SEC. 350. SIMPLIFY ADMINISTRATION OF EXPEDITED SERV21 ICE.

22 Section 11(e)(9) of the Food Stamp Act of 1977 (7

23 U.S.C. 2020(e)(9)) is amended—

24 (1) in subparagraph (A)—
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1 (A) by striking ‘‘five days’’ and inserting

2 ‘‘7 days’’; and

3 (B) by inserting ‘‘and’’ at the end;

4 (2) by striking subparagraphs (B) and (C);

5 (3) by redesignating subparagraph (D) as sub6 paragraph (B); and

7 (4) in subparagraph (B), as redesignated by

8 paragraph (3), by striking ‘‘, (B), or (C)’’.

9 PART 3—ADMINISTRATIVE FLEXIBILITY

10 PROPOSALS

11 SEC. 361. EXPAND STATE AUTHORITY TO DEFINE CERTIFI12 CATION PERIOD.

13 Section 3(c) of the Food Stamp Act of 1977 (7

14 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro15 vided’’ and all that follows and inserting the following—

16 ‘‘The certification period shall not exceed 12 months,

17 except that the certification period may be up to 24

18 months if all adult household members are elderly or dis19 abled. A State agency shall have at least 1 contact with

20 each certified household every 12 months.’’.
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1 SEC. 362. PROVIDE STATE OPTION TO COMBINE ALLOT2 MENTS FOR EXPEDITED SERVICE HOUSE3 HOLDS.

4 Section 8(c) of the Food Stamp Act of 1977 (7

5 U.S.C. 2017(c)) is amended by striking paragraph (3) and

6 inserting the following:

7 ‘‘(3) A State agency may provide to an eligible

8 household applying after the 15th day of a month,

9 in lieu of the initial allotment of the household and

10 the regular allotment of the household for the follow11 ing month, an allotment that is equal to the total

12 amount of the initial allotment and the first regular

13 allotment. The allotment shall be provided in accord14 ance with section 11(e)(3) in the case of a household

15 that is not entitled to expedited service and in ac16 cordance with paragraphs (3) and (9) of section

17 11(e) in the case of a household that is entitled to

18 expedited service.’’.

19 SEC. 363. REVISE TREATMENT OF ALLOTMENTS FOR

20 HOUSEHOLDS RESIDING IN CENTERS.

21 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

22 2017) is amended by adding at the end the following:

23 ‘‘(f)(1) In the case of an individual who resides in

24 a center for the purpose of a drug or alcoholic treatment

25 program described in the last sentence of section 3(i), a
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1 State agency may provide an allotment for the individual

2 to—

3 ‘‘(A) the center as an authorized representative

4 of the individual for a period that is less than 1

5 month; and

6 ‘‘(B) the individual, if the individual leaves the

7 center.

8 ‘‘(2) A State agency may require an individual re9 ferred to in paragraph (1) to designate the center in which

10 the individual resides as the authorized representative of

11 the individual for the purpose of receiving an allotment.’’.

12 SEC. 364. IMPROVE OPERATION OF FOOD STAMP OFFICES.

13 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

14 2020) is amended—

15 (1) in subsection (e)—

16 (A) by striking paragraph (2) and insert17 ing the following—

18 ‘‘(2)(A) that the State agency shall establish

19 procedures governing the operation of food stamp of20 fices that the State agency determines best serve

21 households in the State, including households with

22 special needs, such as households with elderly or dis23 abled members, households with low-income mem24 bers who reside in rural areas, homeless individuals,

25 households residing on reservations, and households
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1 in which a substantial number of members speak a

2 language other than English.

3 ‘‘(B) In carrying out subparagraph (A), a State

4 agency—

5 ‘‘(i) shall provide timely, accurate, and fair

6 service to applicants for, and participants in,

7 the food stamp program;

8 ‘‘(ii) shall develop an application contain9 ing the information necessary to comply with

10 this Act;

11 ‘‘(iii) shall permit an applicant household

12 to apply to participate in the program on the

13 same day that the household first contacts a

14 food stamp office in person during office hours;

15 ‘‘(iv) shall consider an application that

16 contains the name, address, and signature of

17 the applicant filed on the date the applicant

18 submits the application;

19 ‘‘(v) shall require that an adult representa20 tive of each applicant household certify in writ21 ing, under penalty of perjury, that—

22 ‘‘(I) the information contained in the

23 application is true; and
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1 ‘‘(II) all members of the household

2 are citizens or are aliens eligible to receive

3 food stamps under section 6(f);

4 ‘‘(vi) shall provide a method of certifying

5 and issuing coupons to eligible homeless individ6 uals, to ensure that participation in the food

7 stamp program is limited to eligible households;

8 and

9 ‘‘(vii) may establish operating procedures

10 that vary for local food stamp offices to reflect

11 regional and local differences within the

12 State;’’;

13 ‘‘(C) Nothing in this Act shall prohibit the use

14 of signatures provided and maintained electronically,

15 storage of records using automated retrieval systems

16 only, or any other features of a State agency’s appli17 cation system that does not rely exclusively on the

18 collection and retention of paper applications or

19 other records.

20 ‘‘(D) The signature of any adult under this

21 paragraph shall be sufficient to comply with any

22 provision of Federal law requiring a household mem23 ber to sign an application or statement.’’;

24 (B) in paragraph (3) by striking ‘‘and that

25 the State agency shall provide the household’’
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1 and all that follows through ‘‘representative of

2 the State agency.’’;

3 (C) by striking paragraphs (14) and (25);

4 and

5 (D) by redesignating paragraphs (15)

6 through (27) as paragraphs (14) through (25),

7 respectively; and

8 (2) in subsection (i)—

9 (A) by striking ‘‘(i) Notwithstanding’’ and

10 all that follows through ‘‘(2)’’ and inserting the

11 following—

12 ‘‘(i)(1) Notwithstanding any other provision of law,’’;

13 and

14 (B) by striking ‘‘; (3) households’’ and all

15 that follows through ‘‘title IV of the Social Se16 curity Act. No’’ and inserting a period and the

17 following—

18 ‘‘(2) Other than in a case of disqualification as a pen19 alty for failure to comply with a public assistance program

20 rule or regulation, no’’.

21 SEC. 365. DELETE FEDERAL REQUIREMENT FOR STATE EM22 PLOYEE TRAINING.

23 Section 11(e)(6) of the Food Stamp Act of 1977 (7

24 U.S.C. 2020(e)(6)) is amended by—
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1 (1) inserting ‘‘and’’ at the end of subparagraph

2 (B);

3 (2) striking in subparagraph (B), ‘‘United

4 States Civil Service Commission’’ and inserting ‘‘Of5 fice of Personnel Management’’; and

6 (3) striking subparagraphs (C) through (E).

7 SEC. 366. AUTHORIZE ORAL WITHDRAWAL OF FAIR HEAR8 ING REQUESTS.

9 Section 11(e)(10) of the Food Stamp Act of 1977 (7

10 U.S.C. 2020(e)(10)) is amended by inserting before the

11 semicolon at the end a period and the following:

12 ‘‘At the option of a State, at any time prior to a fair

13 hearing determination under this paragraph, a household

14 may withdraw, orally or in writing, a request by the house15 hold for a fair hearing. If the withdrawal request is an

16 oral request, the State agency shall provide a written no17 tice to the household confirming the withdrawal request

18 and providing the household with an opportunity to re19 quest a hearing’’.

20 SEC. 367. DELETE REDUNDANT FEDERAL STANDARDS FOR

21 ADMINISTRATION.

22 (a) Section 16 of the Food Stamp Act of 1977 (7

23 U.S.C. 2025) is amended by striking subsection (b).

24 (b) The first sentence of section 11(g) of the Food

25 Stamp Act of 1977 (7 U.S.C. 2020(g)) is amended by
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1 striking ‘‘the Secretary’s standards for the efficient and

2 effective administration of the program established under

3 section 16(b)(1) or’’.

4 (c) Section 16(c)(1)(B) of the Food Stamp Act of

5 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by striking

6 ‘‘pursuant to subsection (b)’’.

7 PART 4—PROPOSALS FOR STRENGTHENING

8 RETAILER MANAGEMENT

9 SEC. 371. PROVIDE AUTHORITY TO ESTABLISH AUTHORIZA10 TION PERIODS.

11 Section 9(a) of the Food Stamp Act of 1977 (7

12 U.S.C. 2018(a)) is amended by adding at the end the fol13 lowing—

14 ‘‘(3) The Secretary shall establish specific time

15 periods during which authorization to accept and re16 deem coupons or to redeem benefits through an elec17 tronic benefit transfer system shall be valid under

18 the food stamp program.’’.

19 SEC. 372. PROVIDE AUTHORITY TO REQUIRE INFORMATION

20 FOR VERIFYING ELIGIBILITY FOR AUTHOR21 IZATION.

22 Section 9(c) of the Food Stamp Act of 1977 (7

23 U.S.C. 2018(c)) is amended—
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1 (1) in the first sentence, by inserting ‘‘, which

2 may include relevant income and sales tax filing doc3 uments,’’ after ‘‘submit information’’; and

4 (2) by inserting after the first sentence the fol5 lowing—

6 ‘‘The regulations may require retail food stores and

7 wholesale food concerns to provide written authorization

8 for the Secretary to verify all relevant tax filings with ap9 propriate agencies and to obtain corroborating documenta10 tion from other sources so that the accuracy of informa11 tion provided by the stores and concerns may be verified.’’.

12 SEC. 373. ESTABLISH WAITING PERIOD FOR STORES THAT

13 INITIALLY FAIL TO MEET AUTHORIZATION

14 CRITERIA.

15 Section 9(d) of the Food Stamp Act of 1977 (7

16 U.S.C. 2018(d)) is amended by adding at the end the fol17 lowing—

18 ‘‘A retail food store or wholesale food concern that

19 is denied approval to accept and redeem coupons because

20 the store or concern does not meet criteria for approval

21 established by the Secretary may not, for at least 6

22 months, submit a new application to participate in the

23 program. The Secretary may establish a longer time pe24 riod under the preceding sentence, including permanent
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1 disqualification, that reflects the severity of the basis of

2 the denial.’’.

3 SEC. 374. DISQUALIFY RETAILERS WHO INTENTIONALLY

4 SUBMIT FALSIFIED APPLICATIONS.

5 Section 12(b) of the Food Stamp Act of 1977 (7

6 U.S.C. 2021(b)) is amended by—

7 (1) striking at the end of paragraph (2) ‘‘and’’;

8 (2) striking in paragraph (3) the period at the

9 end and inserting ‘‘, and’’; and

10 (3) adding at the end the following—

11 ‘‘(4) for a reasonable period of time to be deter12 mined by the Secretary, including permanent dis13 qualification, on the knowing submission of an appli14 cation for the approval or reauthorization to accept

15 and redeem coupons that contain false information

16 about a substantive matter that was a part of the

17 application.’’.

18 SEC. 375. DISQUALIFY RETAILERS WHO ARE DISQUALIFIED

19 UNDER THE WIC PROGRAM.

20 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

21 2021) is amended by adding at the end the following—

22 ‘‘(g)(1) The Secretary shall issue regulations provid23 ing criteria for the disqualification under this Act of an

24 approved retail food store and a wholesale food concern

25 that is disqualified from accepting benefits under the spe-
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1 cial supplemental nutrition program for women, infants,

2 and children established under section 17 of the Child Nu3 trition Act of 1966 (7 U.S.C. 1786).

4 ‘‘(2) A disqualification under paragraph (1)—

5 ‘‘(A) shall be for the same period as the dis6 qualification from the program referred to in para7 graph (1);

8 ‘‘(B) may begin at a later date than the dis9 qualification from the program referred to in para10 graph (1); and

11 ‘‘(C) notwithstanding section 14, shall not be

12 subject to judicial or administrative review.’’.

13 SEC. 376. AUTHORIZE SUSPENSION OF STORES VIOLATING

14 PROGRAM REQUIREMENTS PENDING ADMIN15 ISTRATIVE AND JUDICIAL REVIEW.

16 Section 14(a) of the Food Stamp Act of 1977 (7

17 U.S.C. 2023(a)) is amended by—

18 (1) redesignating the first through seventeenth

19 sentences as paragraphs (1) through (17), respec20 tively; and

21 (2) adding at the end the following:

22 ‘‘(18) Notwithstanding any other provision of

23 this subsection, any permanent disqualification of a

24 retail food store or wholesale food concern under

25 paragraph (3) or (4) of section 12(b) shall be effec-
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1 tive from the date of receipt of the notice of dis2 qualification. If the disqualification is reversed

3 through administrative or judicial review, the Sec4 retary shall not be liable for the value of any sales

5 lost during the disqualification period.’’.

6 SEC. 377. EXPAND CIVIL AND CRIMINAL FORFEITURE FOR

7 VIOLATIONS OF THE FOOD STAMP ACT.

8 (a) The first sentence of section 15(g) of the Food

9 Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended by

10 striking ‘‘or intended to be furnished’’.

11 (b) Section 15 of the Food Stamp Act of 1977 (7

12 U.S.C. 2024) is amended by adding the following new sub13 sections:

14 ‘‘(h) CIVIL FORFEITURE.—

15 ‘‘(1) Any property, real or personal,

16 ‘‘(A) constituting, derived from, or trace17 able to any proceeds obtained directly or indi18 rectly from, or

19 ‘‘(B) used, or intended to be used, to com20 mit or to facilitate, the commission of a viola21 tion (other than a misdemeanor) of subsection

22 (b) or (c) of this section, shall be subject to for23 feiture to the United States.

24 ‘‘(2) The provisions of chapter 46 of title 18,

25 relating to civil forfeitures shall extend to a seizure
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1 or forfeiture under this subsection, insofar as appli2 cable and not inconsistent with the provisions of this

3 subsection, except that such duties as are imposed

4 upon the Secretary of the Treasury under chapter

5 46 shall be performed with respect to seizures and

6 forfeitures under this section by such officers,

7 agents, and other persons as designated for that

8 purpose by the Secretary, U.S. Department of Agri9 culture.

10 ‘‘(3) Forfeitures imposed under this subsection

11 shall be in addition to any criminal sanctions im12 posed against the owner of the forfeited property.

13 ‘‘(i) CRIMINAL FORFEITURE.—

14 ‘‘(1) In imposing sentence upon any person con15 victed of a violation (other than a misdemeanor) of

16 subsection (b) or subsection (c) of this section, the

17 court shall order that the person forfeit to the Unit18 ed States, irrespective of any State law—

19 ‘‘(A) any property, real or personal, con20 stituting, derived from, or traceable to any pro21 ceeds such person obtained directly or indirectly

22 as a result of such violation; and

23 ‘‘(B) any of such person’s property used,

24 or intended to be used, to commit or to facili25 tate the commission of such violation.
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1 ‘‘(2) All property subject to forfeiture under

2 this subsection, any seizure and disposition thereof,

3 and any proceeding relating thereto, shall be gov4 erned by section 413 of the Comprehensive Drug

5 Abuse Prevention and Control Act of 1970 (21

6 U.S.C. 853), with the exception of section 413(d),

7 insofar as applicable and not inconsistent with the

8 provisions of this subsection.

9 ‘‘(3) Restraining orders available under section

10 413(e) of the Comprehensive Drug Abuse Prevention

11 and Control Act of 1970 (21 U.S.C. 853(e)) shall

12 apply to assets otherwise subject to forfeiture under

13 section 413(p) of that Act (21 U.S.C. 853(p)), as in14 corporated in this subsection.’’.

15 SEC. 378. EXPAND AUTHORITY FOR SHARING INFORMA16 TION PROVIDED BY RETAIL FOOD STORES

17 AND WHOLESALE FOOD CONCERNS.

18 (a) Section 205(c)(2)(C)(iii) of the Social Security

19 Act (42 U.S.C. 405(c)(2)(C)(iii)), as amended by section

20 316(a) of the Social Security Administrative Reform Act

21 of 1994 (Public Law 103–296; 108 Stat. 1464), is amend22 ed by—

23 (1) inserting in the first sentence of subclause

24 (II) after ‘‘instrumentality of the United States’’ the

25 following: ‘‘, or State government officers and em-
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1 ployees with law enforcement or investigative respon2 sibilities, or State agencies that have the responsibil3 ity for administering the Special Supplemental Nu4 trition Program for Women, Infants and Children

5 (WIC)’’;

6 (2) inserting in the last sentence of subclause

7 (II) ‘‘or State’’ after ‘‘other Federal’’; and

8 (3) inserting in subclause (III) ‘‘or a State’’

9 after ‘‘United States’’.

10 (b) Section 6109(f)(2) of the Internal Revenue Code

11 of 1986 (26 U.S.C. 6109(f)(2)) (as added by section

12 316(b) of the Social Security Administrative Reform Act

13 of 1994 (Public Law 103–296; 108 Stat. 1464)) is amend14 ed by—

15 (1) inserting in subparagraph (A) after ‘‘instru16 mentality of the United States’’ the following: ‘‘, or

17 State government officers and employees with law

18 enforcement or investigative responsibilities, or State

19 agencies that have the responsibility for administer20 ing the Special Supplemental Nutrition Program for

21 Women, Infants and Children (WIC)’’;

22 (2) inserting in the last sentence of subpara23 graph (A) ‘‘or State’’ after ‘‘other Federal’’; and

24 (3) inserting in subparagraph (B) ‘‘or a State’’

25 after ‘‘United States’’.
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1 PART 5—CONFORMING AMENDMENTS AND

2 EFFECTIVE DATES

3 SEC. 381. CONFORMING AMENDMENTS.

4 (a) Section 5(k)(1)(A) of the Food Stamp Act of

5 1977 (7 U.S.C. 2014(k)(1)(A)) is amended by striking

6 ‘‘for aid to families with dependent children’’.

7 (b) Section 6(e)(6) of the Food Stamp Act of 1977

8 (7 U.S.C. 2015(e)(6)) is amended by striking ‘‘aid to fam9 ilies with dependent children’’ and inserting ‘‘assistance’’.

10 (c) Section 11 of the Food Stamp Act of 1977 (7

11 U.S.C. 2020) is amended by—

12 (1) striking in the first complete sentence of

13 subsection (e)(2) ‘‘aid to families with dependent

14 children’’; and

15 (2) striking in subsection (i) ‘‘aid to families

16 with dependent children’’.

17 (d) Section 16(g) of the Food Stamp Act of 1977

18 (7 U.S.C. 2025(g)) is amended in item (4) by striking

19 ‘‘Aid to Families with Dependent Children Program’’ and

20 inserting ‘‘program’’.

21 (e) Section 17(b) of the Food Stamp Act of 1977 (7

22 U.S.C. 2026(b)) is amended by—

23 (1) striking in the first sentence of paragraph

24 (1)(A) ‘‘aid to families with dependent children’’ and

25 inserting ‘‘assistance’’;
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1 (2) striking in paragraph (3)(B) ‘‘for recipients

2 of aid to families with dependent children’’;

3 (3) inserting before the period at the end of the

4 first sentence in paragraph (3)(B) the following:

5 ‘‘for recipients of assistance under part A of title IV

6 of the Social Security Act (42 U.S.C. 601 et seq.)’’; and

7 (4) striking in paragraph (3)(C) ‘‘’aid to fami8 lies with dependent children’’’ and inserting the fol9 lowing:

10 ‘‘assistance under part A of title IV of the Social Se11 curity Act (42 U.S.C. 601 et seq.)’’.

12 SEC. 382. EFFECTIVE DATES.

13 Except as otherwise provided in this subtitle, the pro14 visions of this subtitle become effective on the first day

15 of the second month after the month of enactment.

16 Subtitle B—Child Nutrition

17 SEC. 391. FAMILY OR GROUP DAY CARE HOMES.

18 (a) RESTRUCTURED DAY CARE HOME REIMBURSE19 MENTS.—Section 17(f)(3) of the National School Lunch

20 Act (42 U.S.C. 1766(f)(3)) is amended by striking ‘‘(3)(A)

21 Institutions’’ and all that follows through the end of sub22 paragraph (A) and inserting the following:

23 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

24 DAY CARE HOME SPONSORING ORGANIZATIONS.—

25 ‘‘(A) REIMBURSEMENT FACTOR.—
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1 ‘‘(i) IN GENERAL.—An institution

2 that participates in the program under this

3 section as a family or group day care home

4 sponsoring organization shall be provided,

5 for payment to a home sponsored by the

6 organization, reimbursement factors in ac7 cordance with this subparagraph for the

8 cost of obtaining and preparing food and

9 prescribed labor costs involved in providing

10 meals under this section.

11 ‘‘(ii) TIER I FAMILY OR GROUP DAY

12 CARE HOMES.—

13 ‘‘(I) DEFINITION.—In this para14 graph, the term ‘tier I family or group

15 day care home’ means—

16 ‘‘(aa) a family or group day

17 care home that is located in a ge18 ographic area, as defined by the

19 Secretary based on census data,

20 in which at least 50 percent of

21 the children residing in the area

22 are members of households whose

23 incomes meet the income eligi24 bility guidelines for free or re-
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1 duced price meals under section

2 9;

3 ‘‘(bb) a family or group day

4 care home that is located in an

5 area served by a school enrolling

6 elementary students in which at

7 least 50 percent of the total num8 ber of children enrolled are cer9 tified eligible to receive free or

10 reduced price school meals under

11 this Act or the Child Nutrition

12 Act of 1966 (42 U.S.C. 1771 et

13 seq.); or

14 ‘‘(cc) a family or group day

15 care home that is operated by a

16 provider whose household meets

17 the eligibility requirements for

18 free or reduced price meals under

19 section 9 and whose eligibility is

20 verified by the sponsoring organi21 zation of the home under regula22 tions established by the Sec23 retary.

24 ‘‘(II) REIMBURSEMENT.—Except

25 as provided in subclause (III), a tier
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1 I family or group day care home shall

2 be provided reimbursement factors

3 under this clause without a require4 ment for documentation of the costs

5 described in clause (i), except that re6 imbursement shall not be provided

7 under this subclause for meals or sup8 plements served to the children of a

9 person acting as a family or group

10 day care home provider unless the

11 children meet the eligibility require12 ments for free or reduced price meals

13 under section 9.

14 ‘‘(III) FACTORS.—Except as pro15 vided in subclause (IV), the reim16 bursement factors applied to a home

17 referred to in subclause (II) shall be

18 the factors in effect on the date of en19 actment of this subclause.

20 ‘‘(IV) ADJUSTMENTS.—The re21 imbursement factors under this sub22 paragraph shall be adjusted on Octo23 ber 1, 1996, July 1, 1997, and each

24 July 1 thereafter, to reflect changes in

25 the Consumer Price Index for food at
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1 home for the most recent 12-month

2 period for which the data are avail3 able. The reimbursement factors

4 under this subparagraph shall be

5 rounded to the nearest lower cent in6 crement and based on the unrounded

7 adjustment in effect on June 30 of

8 the preceding school year.

9 ‘‘(iii) TIER II FAMILY OR GROUP DAY

10 CARE HOMES.—

11 ‘‘(I) IN GENERAL.—

12 ‘‘(aa) FACTORS.—Except as

13 provided in subclause (II), with

14 respect to meals or supplements

15 served under this clause by a

16 family or group day care home

17 that does not meet the criteria

18 set forth in clause (ii)(I), the re19 imbursement factors shall be $1

20 for lunches and suppers, 30 cents

21 for breakfasts, and 15 cents for

22 supplements.

23 ‘‘(bb) ADJUSTMENTS.—The

24 factors shall be adjusted on July

25 1, 1997, and each July 1 there-
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1 after, to reflect changes in the

2 Consumer Price Index for food at

3 home for the most recent 12-

4 month period for which the data

5 are available. The reimbursement

6 factors under this item shall be

7 rounded down to the nearest

8 lower cent increment and based

9 on the unrounded adjustment for

10 the preceding 12-month period.

11 ‘‘(cc) REIMBURSEMENT.—A

12 family or group day care home

13 shall be provided reimbursement

14 factors under this subclause with15 out a requirement for docu16 mentation of the costs described

17 in clause (i), except that reim18 bursement shall not be provided

19 under this subclause for meals or

20 supplements served to the chil21 dren of a person acting as a fam22 ily or group day care home pro23 vider unless the children meet the

24 eligibility requirements for free
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1 or reduced price meals under sec2 tion 9.

3 ‘‘(II) OTHER FACTORS.—A fam4 ily or group day care home that does

5 not meet the criteria set forth in

6 clause (ii)(I) may elect to be provided

7 reimbursement factors determined in

8 accordance with the following require9 ments:

10 ‘‘(aa) CHILDREN ELIGIBLE

11 FOR FREE OR REDUCED PRICE

12 MEALS.—In the case of meals or

13 supplements served under this

14 subsection to children who meet

15 the eligibility requirements for

16 free or reduced price meals under

17 section 9, the family or group

18 day care home shall be provided

19 reimbursement factors set by the

20 Secretary in accordance with

21 clause (ii)(III).

22 ‘‘(bb) INELIGIBLE CHIL23 DREN.—In the case of meals or

24 supplements served under this

25 subsection to children who do not
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1 meet the eligibility requirements

2 for free or reduced price meals

3 under section 9, the family or

4 group day care home shall be

5 provided reimbursement factors

6 in accordance with subclause (I).

7 ‘‘(III) INFORMATION AND DE8 TERMINATIONS.—

9 ‘‘(aa) IN GENERAL.—If a

10 family or group day care home

11 elects to claim the factors de12 scribed in subclause (II), the

13 family or group day care home

14 sponsoring organization serving

15 the home shall collect the nec16 essary eligibility information, as

17 determined by the Secretary,

18 from any parent or other care19 taker to make the determinations

20 specified in subclause (II) and

21 shall make the determinations in

22 accordance with rules prescribed

23 by the Secretary.

24 ‘‘(bb) CATEGORICAL ELIGI25 BILITY.—In making a determina-
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1 tion under item (aa), a family or

2 group day care home sponsoring

3 organization may consider a child

4 participating in or subsidized

5 under, or a child with a parent

6 participating in or subsidized

7 under, a federally or State sup8 ported child care or other benefit

9 program with an income eligi10 bility limit that does not exceed

11 the income eligibility guidelines

12 standard for free or reduced

13 price meals under section 9 to be

14 a child who is eligible for free or

15 reduced price meals under section

16 9.

17 ‘‘(cc) FACTORS FOR CHIL18 DREN ONLY.—A family or group

19 day care home may elect to re20 ceive the reimbursement factors

21 prescribed under clause (ii)(III)

22 solely for the children participat23 ing in a program referred to in

24 item (bb) if the home elects not

25 to have eligibility information col-
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1 lected from parents or other care2 takers.’’.

3 (b) GRANTS TO STATES TO PROVIDE ASSISTANCE TO

4 FAMILY OR GROUP DAY CARE HOMES.—Section 17(f)(3)

5 of the National School Lunch Act (42 U.S.C. 1766(f)(3))

6 is amended by adding at the end the following—

7 ‘‘(D) GRANTS TO STATES TO PROVIDE AS8 SISTANCE TO FAMILY OR GROUP DAY CARE

9 HOMES.—

10 ‘‘(i) IN GENERAL.—

11 ‘‘(I) RESERVATION.—The Sec12 retary shall reserve $5,000,000 of the

13 amount made available to carry out

14 this section for fiscal year 1996.

15 ‘‘(II) PURPOSE.—The Secretary

16 shall use the funds made available

17 under subclause (I) to provide grants

18 to States for the purpose of provid19 ing—

20 ‘‘(aa) assistance, including

21 grants, to family and day care

22 home sponsoring organizations

23 and other appropriate organiza24 tions, in securing and providing

25 training, materials, automated
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1 data processing assistance, and

2 other assistance for the staff of

3 the sponsoring organizations; and

4 ‘‘(bb) training and other as5 sistance to family and group day

6 care homes in the implementation

7 of the amendments to subpara8 graph (A) made by section

9 391(a) of the Work First and

10 Personal Responsibility Act of

11 1996.

12 ‘‘(ii) ALLOCATION.—The Secretary

13 shall allocate from the funds reserved

14 under clause (i)(I)—

15 ‘‘(I) $30,000 in base funding to

16 each State; and

17 ‘‘(II) any remaining amount

18 among the States, based on the num19 ber of family day care homes partici20 pating in the program in a State dur21 ing fiscal year 1994 as a percentage

22 of the number of all family day care

23 homes participating in the program

24 during fiscal year 1994.
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1 ‘‘(iii) RETENTION OF FUNDS.—Of the

2 amount of funds made available to a State

3 for fiscal year 1996 under clause (i), the

4 State may retain not to exceed 30 percent

5 of the amount to carry out this subpara6 graph.

7 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

8 payments received under this subpara9 graph shall be in addition to payments

10 that a State receives under subparagraph

11 (A) (as amended by section 391(a) of the

12 Work First and Personal Responsibility

13 Act of 1996).’’.

14 (c) PROVISION OF DATA.—Section 17(f)(3) of the

15 National School Lunch Act (42 U.S.C. 1766(f)(3)), as

16 amended by subsection (b), is further amended by adding

17 at the end the following:

18 ‘‘(E) PROVISION OF DATA TO FAMILY OR

19 GROUP DAY CARE HOME SPONSORING ORGANI20 ZATIONS.—

21 ‘‘(i) CENSUS DATA.—The Secretary

22 shall provide to each State agency admin23 istering a child and adult care food pro24 gram under this section data from the

25 most recent decennial census survey or
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1 other appropriate census survey for which

2 the data are available showing which areas

3 in the State meet the requirements of sub4 paragraph (A)(ii)(I)(aa). The State agency

5 shall provide the data to family or group

6 day care home sponsoring organizations lo7 cated in the State.

8 ‘‘(ii) SCHOOL DATA.—

9 ‘‘(I) IN GENERAL.—A State

10 agency administering the school lunch

11 program under this Act or the school

12 breakfast program under the Child

13 Nutrition Act of 1966 (42 U.S.C.

14 1771 et seq.) shall provide data for

15 each elementary school in the State,

16 or shall direct each school within the

17 State to provide data for the school,

18 to approved family or group day care

19 home sponsoring organizations that

20 request the data, on the percentage of

21 enrolled children who are certified eli22 gible for free or reduced price meals.

23 ‘‘(II) USE OF DATA FROM PRE24 CEDING SCHOOL YEAR.—In determin25 ing for a fiscal year or other annual
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1 period whether a home qualifies as a

2 tier I family or group day care home

3 under subparagraph (A)(ii)(I), the

4 State agency administering the pro5 gram under this section, and a family

6 or group day care home sponsoring

7 organization, shall use the most cur8 rent available data at the time of the

9 determination.

10 ‘‘(iii) DURATION OF DETERMINA11 TION.—For purposes of this section, a de12 termination that a family or group day

13 care home is located in an area that quali14 fies the home as a tier I family or group

15 day care home (as the term is defined in

16 subparagraph (A)(ii)(I)), shall be in effect

17 for 3 years (unless the determination is

18 made on the basis of census data, in which

19 case the determination shall remain in ef20 fect until more recent census data are

21 available) unless the State agency deter22 mines that the area in which the home is

23 located no longer qualifies the home as a

24 tier I family or group day care home.’’.
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1 (d) CONFORMING AMENDMENTS.—Section 17(c) of

2 the National School Lunch Act is amended by inserting

3 ‘‘except as provided in subsection (f)(3),’’ after ‘‘For pur4 poses of this section,’’ each place it appears in paragraphs

5 (1), (2), and (3).

6 (e) EFFECTIVE DATE.—

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section be9 come effective on the date of enactment of this sub10 title.

11 (2) IMPROVED TARGETING OF DAY CARE HOME

12 REIMBURSEMENTS.—The amendments made by sub13 sections (a), (c), and (d) become effective on October

14 1, 1996.

15 SEC. 392. REIMBURSEMENT RATE ADJUSTMENTS.

16 (a) IN GENERAL.—

17 (1) COMMODITY RATE.—Section 6(e)(1)(B) of

18 the National School Lunch Act (42 U.S.C.

19 1755(e)(1)(B)) is amended by striking ‘‘1/4 cent’’

20 and inserting ‘‘lower cent increment’’.

21 (2) LUNCH, BREAKFAST, AND SUPPLEMENT

22 RATES.—Section 11(a)(3)(B) of the National School

23 Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended

24 by striking ‘‘one fourth cent’’ and inserting ‘‘lower

25 cent increment’’.
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1 (3) SUMMER PROGRAM RATES.—Section

2 13(b)(1) of the National School Lunch Act (42

3 U.S.C. 1761(b)(1)) is amended by striking ‘‘one4 fourth cent’’ and inserting ‘‘lower cent increment’’.

5 (4) SPECIAL MILK PROGRAM RATES.—Section

6 3(a)(8) of the Child Nutrition Act of 1966 (42

7 U.S.C. 1772(a)(8)) is amended by striking ‘‘one8 fourth cent’’ and inserting ‘‘lower cent increment’’.

9 (5) REDUCED PRICE BREAKFAST RATES.—Sec10 tion 4(b)(1)(B) of the Child Nutrition Act of 1966

11 (42 U.S.C. 1773(b)(1)(B)) is amended by striking

12 ‘‘one fourth cent’’ and inserting ‘‘lower cent incre13 ment’’.

14 (6) SEVERE NEED RATES.—Section

15 4(b)(2)(B)(ii) of the Child Nutrition Act of 1966

16 (42 U.S.C. 1773(b)(2)(B)(ii)) is amended by strik17 ing ‘‘one-fourth cent’’ and inserting ‘‘lower cent in18 crement’’.

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

20 subsection (a) become effective on July 1, 1996.

21 SEC. 393. ELIMINATION OF START-UP AND EXPANSION

22 GRANTS.—

23 (a) Section 4 of the Child Nutrition Act of 1996 (42

24 U.S.C. 1773) is amended by striking subsection (g).
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1 (b) The amendment made by this subsection (a) be2 comes effective on October 1, 1996.

3 SEC. 394. AUTHORIZATION OF APPROPRIATIONS.

4 Section 19(i) of the Child Nutrition Act (42 U.S.C.

5 1788(i)) is amended—

6 (1) in the first sentence of paragraph (2)(A), by

7 striking ‘‘and each succeeding fiscal Year’’;

8 (2) by redesignating paragraphs (3) and (4) as

9 paragraphs (4) and (5), respectively; and

10 (3) by inserting after paragraph (2) the follow11 ing:

12 ‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

13 ‘‘(A) IN GENERAL.—There are authorized

14 to be appropriated to carry out this section

15 $10,000,000 for each of the fiscal years 1997

16 through 2002.

17 ‘‘(B) GRANTS.—

18 ‘‘(i) IN GENERAL.—Grants to each

19 State from the amounts made available

20 under subparagraph (A) shall be based on

21 a rate of 50 cents for each child enrolled

22 in schools or institutions within the State,

23 except that no State shall receive an

24 amount less than $75,000 per fiscal year.
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1 ‘‘(ii) INSUFFICIENT FUNDS.—If an

2 amount made available for any fiscal year

3 is insufficient to pay the amount to which

4 each State is entitled under clause (i), the

5 amount of each grant, including minimum

6 grants, shall be ratably reduced.’’.

7 SEC. 395. DIRECT FEDERAL EXPENDITURES.

8 (a) COMMODITY ASSISTANCE.—Section 6(g) of the

9 National School Lunch Act (42 U.S.C. 1755(g)) is amend10 ed by striking ‘‘12 percent’’ and inserting ‘‘8 percent’’.

11 (b) The amendment made by this section becomes ef12 fective on July 1, 1996.

13 TITLE D—TREATMENT OF

14 ALIENS

15 SEC. 401. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUB16 LIC ASSISTANCE PROGRAMS.

17 (a) FEDERAL AND FEDERALLY-ASSISTED PRO18 GRAMS.—

19 (1) PROGRAM ELIGIBILITY CRITERIA.—

20 (A) TEMPORARY EMPLOYMENT ASSIST21 ANCE.—Section 402(c), as amended by sections

22 101(a) and 112 of this Act, is further amended

23 by adding at the end the following paragraph:

24 ‘‘(9) RESTRICTION OF ELIGIBILITY TO CITIZENS

25 AND LEGAL IMMIGRANTS.—The State plan shall pro-
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1 vide that, in order to be eligible for assistance under

2 the State plan, an individual must be either—

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

4 States, or

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

6 1145(a)), provided that such alien is not dis7 qualified from receiving assistance under a

8 State plan approved under this part by or pur9 suant to section 210(f) or 245A(h) of the Immi10 gration and Nationality Act or any other provi11 sion of law;’’.

12 (B) SUPPLEMENTAL SECURITY INCOME.—

13 Section 1614(a)(1)(B)(i) is amended to read as

14 follows:

15 ‘‘(B)(i) is a resident of the United States,

16 and is either (I) a citizen or national of the

17 United States, or (II) a qualified alien (as de18 fined in section 1145(a)), or’’.

19 (C) MEDICAID.—

20 (i) Section 1903(v)(1) is amended to

21 read as follows:

22 ‘‘(v)(1) Notwithstanding the preceding provisions of

23 this section—

24 ‘‘(A) no payment may be made to a State under

25 this section for medical assistance furnished to an
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1 individual who is disqualified from receiving such as2 sistance by or pursuant to section 210(f) or 245A(h)

3 of the Immigration and Nationality Act or any other

4 provision of law, and

5 ‘‘(B) except as provided in paragraph (2), no

6 such payment may be made for medical assistance

7 furnished to an individual who is not—

8 ‘‘(i) a citizen or national of the United

9 States, or

10 ‘‘(ii) a qualified alien (as defined in section

11 1145(a)).’’.

12 (ii) Section 1903(v)(2) is amended—

13 (I) by striking ‘‘paragraph (1)’’

14 and inserting ‘‘paragraph (1)(B)’’;

15 and

16 (II) by striking ‘‘alien’’ each

17 place it appears and inserting ‘‘indi18 vidual’’.

19 (iii) Section 1902(a) is amended in

20 the last sentence by striking ‘‘alien’’ and

21 all that follows and inserting ‘‘individual

22 who is not (A) a citizen or national of the

23 United States, or (B) a qualified alien (as

24 defined in section 1145(a)) only in accord25 ance with section 1903(v).’’.
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1 (iv) Section 1902(b)(3) is amended by

2 inserting ‘‘or national’’ after ‘‘citizen’’.

3 (2) DEFINITION OF ‘‘QUALIFIED ALIEN’’.—Title

4 XI is amended by adding at the end the following

5 new section:

6 ‘‘UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUBLIC

7 ASSISTANCE PROGRAMS

8 ‘‘SEC. 1145. (a) DEFINITIONS.—For purposes of the

9 programs under part A of title IV and titles XVI and XIX

10 of this Act—

11 ‘‘(1) QUALIFIED ALIEN.—The term ‘qualified

12 alien’ means an alien—

13 ‘‘(A) who is lawfully admitted for perma14 nent residence within the meaning of section

15 101(a)(20) of the Immigration and Nationality

16 Act;

17 ‘‘(B) who is admitted as a refugee pursu18 ant to section 207 of such Act;

19 ‘‘(C) who is granted asylum pursuant to

20 section 208 of such Act;

21 ‘‘(D) who is a Cuban or Haitian entrant,

22 as defined in section 501(e) of the Refugee

23 Education Assistance Act of 1980 (Public Law

24 96–422);
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1 ‘‘(E) whose deportation is withheld pursu2 ant to section 243(h) of the Immigration and

3 Nationality Act;

4 ‘‘(F) whose deportation is suspended pur5 suant to section 244 of such Act;

6 ‘‘(G) who is granted conditional entry pur7 suant to section 203(a)(7) of such Act as in ef8 fect prior to April 1, 1980;

9 ‘‘(H) who is lawfully admitted for tem10 porary residence pursuant to section 210 or

11 245A of such Act;

12 ‘‘(I) who is paroled into the United States

13 under section 212(d)(5) of such Act for a pe14 riod of at least one year;

15 ‘‘(J) who is within a class of aliens lawfully

16 present within the United States pursuant to

17 any other provision of such Act, provided

18 that—

19 ‘‘(i) the Attorney General determines

20 (and such determination shall not be judi21 cially reviewable) that the continued pres22 ence of such class of aliens serves a hu23 manitarian or other compelling public in24 terest, and
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1 ‘‘(ii) the Secretary of Health and

2 Human Services and the Commissioner of

3 Social Security determine (and such deter4 mination shall not be judicially reviewable)

5 that such interest would be further served

6 by treating each alien within such class as

7 a ‘qualified alien’ for purposes of this Act;

8 or

9 ‘‘(K) who is the spouse or unmarried child

10 under 21 years of age of a citizen of the United

11 States, or the parent of such a citizen if the cit12 izen is 21 years of age or older, and with re13 spect to whom an application for adjustment to

14 lawful permanent residence is pending;

15 such status not having changed.

16 ‘‘(2) SPONSOR.—The term ‘sponsor’ means,

17 with respect to a qualified alien, an individual who—

18 ‘‘(A) is a citizen or national of the United

19 States or an alien who is lawfully admitted to

20 the United States for permanent residence;

21 ‘‘(B) is 18 years of age or over;

22 ‘‘(C) is domiciled in any State, the District

23 of Columbia, or any territory or possession of

24 the United States; and
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1 ‘‘(D) has executed an affidavit of support

2 for such alien in accordance with section 213 of

3 the Immigration and Nationality Act.’’.

4 (3) CONFORMING AMENDMENT.—Section

5 244A(f)(1) of the Immigration and Nationality Act

6 is amended by inserting ‘‘and shall not be considered

7 to be a ‘qualified alien’ within the meaning of sec8 tion 1145(a) of the Social Security Act’’ immediately

9 before the semicolon.

10 (b) STATE AND LOCAL PROGRAMS.—A State, or a

11 political subdivision of a State, may provide that an alien

12 is not eligible for any program of cash assistance (other

13 than assistance related to pre-school, elementary, or sec14 ondary education) or medical assistance (other than emer15 gency medical assistance) based on need that is furnished

16 by such State or political subdivision unless such alien is

17 a ‘‘qualified alien’’ within the meaning of section 1145(a)

18 of the Social Security Act (as added by subsection (a)(2)

19 of this section).

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

21 this section are effective with respect to benefits furnished

22 on the basis of any application filed after the date of en23 actment of this Act.
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1 SEC. 402. DEEMING OF SPONSOR’S INCOME AND RE2 SOURCES TO ALIEN UNDER TEA, SSI, AND

3 FOOD STAMP PROGRAMS.

4 (a) EXTENSION OF DEEMING PERIOD TO DATE OF

5 NATURALIZED CITIZENSHIP.—Section 1145 of the Social

6 Security Act, as added by section 401 of this Act, is

7 amended by adding at the end the following new sub8 section:

9 ‘‘(b) DEEMING OF INCOME TO SPONSORED ALIEN

10 UNTIL NATURALIZATION FOR PURPOSES OF CERTAIN AS11 SISTANCE PROGRAMS.—

12 ‘‘(1) IN GENERAL.—Except as otherwise pro13 vided in this subsection, for purposes of the pro14 grams under titles IV–A and XVI and the program

15 under the Food Stamp Act of 1977, the income and

16 resources of the sponsor of a qualified alien, and of

17 the sponsor’s spouse, shall be deemed to be available

18 to such alien, in accordance with the applicable pro19 visions of each such program, until the date on

20 which the alien achieves United States citizenship

21 through naturalization pursuant to the Immigration

22 and Nationality Act.

23 ‘‘(2) EXCEPTIONS.—The income and resources

24 of a sponsor shall not be deemed available to a

25 qualified alien in the following circumstances:
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1 ‘‘(A) ELDERLY ALIEN AFTER 5 YEARS’

2 RESIDENCE.—The alien has been lawfully ad3 mitted to the United States for permanent resi4 dence, has attained 75 years of age, and has re5 sided in the United States for at least 5 years.

6 ‘‘(B) ALIEN A VETERAN.—The alien—

7 ‘‘(i) is a veteran (as defined in section

8 101 of title 38, United States Code) with

9 a discharge characterized as an honorable

10 discharge,

11 ‘‘(ii) is on active duty (other than ac12 tive duty for training) in the Armed Forces

13 of the United States, or

14 ‘‘(iii) is the spouse (other than a di15 vorced spouse), surviving spouse, or un16 married minor dependent child of an indi17 vidual described in clause (i) or (ii).

18 ‘‘(C) Alien a taxpayer.—

19 ‘‘(i) Taxes have been paid (as deter20 mined in accordance with clause (ii)) under

21 chapter 2 or chapter 21 of the Internal

22 Revenue Code of 1986 for each of 20 dif23 ferent calendar quarters with respect to

24 the self-employment income or employment

25 of the alien, or spouse of the alien, or par-
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1 ent of the alien (in the case of an alien

2 under age 25).

3 ‘‘(ii) For purposes of clause (i), the

4 taxes described in such clause shall, in the

5 absence of any evidence to the contrary, be

6 assumed to have been paid with respect to

7 any wages and self-employment income for

8 which such alien, parent, or spouse has

9 been credited in the records maintained by

10 the Commissioner of Social Security for

11 purposes of the administration of the Fed12 eral Old-Age, Survivors, and Disability In13 surance program authorized by title II of

14 this Act.

15 ‘‘(iii) The Social Security Administra16 tion, by regulation, shall provide a sim17 plified method for assigning an individual’s

18 annual earnings in a year to a given cal19 endar quarter. Earnings assigned to a

20 given calendar quarter are considered to be

21 acquired as of the first day of that quarter.

22 ‘‘(D) ALIEN WHOSE SPONSOR RECEIVES

23 TEA OR SSI BENEFITS.—The provisions of para24 graph (1) shall not apply to any alien for any
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1 month for which such alien’s sponsor receives

2 any of the following benefits—

3 ‘‘(i) temporary employment assistance

4 under part A of title IV;

5 ‘‘(ii) supplemental security income

6 under title XVI; or

7 ‘‘(iii) federally administered State

8 supplementary payments pursuant to sec9 tion 1616(a) of this Act or to section

10 212(b) of Public Law 93-66.

11 ‘‘(E) FOOD STAMPS EXEMPTION FOR

12 BLIND OR DISABLED ALIEN.—The provisions of

13 paragraph (1) shall not apply to the program

14 under the Food Stamp Act of 1977 with respect

15 to an alien for any month for which such alien

16 receives supplemental security income under

17 title XVI by reason of blindness (as determined

18 under section 1614(a)(2)) or disability (as de19 termined under section 1614(a)(3)), provided

20 that such blindness or disability commenced

21 after the date of such individual’s admission

22 into the United States for permanent residence.

23 ‘‘(3) REGULATIONS PROVIDING FOR HARDSHIP

24 EXCEPTIONS.—The Secretary of Health and Human

25 Services, the Commissioner of Social Security, and
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1 the Secretary of Agriculture, after consultation to2 gether, may each promulgate regulations providing

3 for alteration or suspension of the application of

4 paragraph (1) in cases (including cases in which the

5 sponsored alien is the subject of domestic violence or

6 other abuse by the sponsor) where such application

7 to a qualified alien, for purposes of determining eli8 gibility for a program administered by such official,

9 would be inequitable in the circumstances.

10 ‘‘(4) INAPPLICABILITY TO MEDICAID.—The pro11 visions of paragraph (1) shall be inapplicable to the

12 determination of the eligibility of a qualified alien

13 for benefits under title XIX.’’.

14 (b) AMENDMENTS TO PROGRAM STATUTES.—

15 (1) TEMPORARY EMPLOYMENT ASSISTANCE.—

16 Section 415 of the Social Security Act is redesig17 nated as section 407, and is amended—

18 (A) in subsection (a)—

19 (i) by striking ‘‘an alien described in

20 clause (B) of section 402(a)(33)’’ and in21 serting ‘‘a qualified alien (as defined in

22 section 1145(a))’’; and

23 (ii) by striking ‘‘for a period of three

24 years after the individual’s entry into the

25 United States’’ and inserting ‘‘, subject to
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1 the exceptions in subsection (f), during the

2 period (if any) determined pursuant to sec3 tion 1145(b) with respect to such alien’’;

4 (B) in subsection (b)—

5 (i) in paragraph (1)(B)(ii), by striking

6 ‘‘section 402(a)(7)’’ and inserting ‘‘section

7 402(d)’’;

8 (ii) in paragraph (2)(A), by striking

9 ‘‘aid’’ and inserting ‘‘assistance’’; and

10 (iii) in paragraph (2)(B), by striking

11 ‘‘$1,500’’ and inserting ‘‘$2,000’’; and

12 (C) in subsection (c)(1), in the first and

13 second sentences, and in subsection (d)—

14 (i) by striking ‘‘aid’’ each place it ap15 pears and inserting ‘‘assistance’’; and

16 (ii) by striking ‘‘during the period of

17 three years after his or her entry into the

18 United States’’ and inserting ‘‘during the

19 period (if any) determined pursuant to sec20 tion 1145(b) with respect to such alien’’.

21 (2) SUPPLEMENTAL SECURITY INCOME.—

22 (A) Section 1621(a) of the Social Security

23 Act is amended by striking ‘‘for a period of 5

24 years after the individual’s entry into the Unit25 ed States’’ and inserting ‘‘during the period (if
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1 any) determined pursuant to section 1145(b)

2 with respect to such alien’’.

3 (B) Section 1621(c) of the Social Security

4 Act is amended by striking ‘‘during the period

5 of 5 years after such alien’s entry into the

6 United States’’ and inserting ‘‘during the pe7 riod (if any) determined pursuant to section

8 1145 with respect to such alien’’.

9 (C) Section 1621(d) of the Social Security

10 Act is amended by striking ‘‘during the period

11 of 5 years after entry into the United States’’

12 and inserting ‘‘during the period (if any) deter13 mined pursuant to section 1145(b) with respect

14 to such alien’’.

15 (D) Section 1621(e) of the Social Security

16 Act is amended by striking ‘‘during the period

17 of 5 years after such alien’s entry into the

18 United States’’ and inserting ‘‘during the pe19 riod (if any) determined pursuant to section

20 1145(b) with respect to such alien’’.

21 (3) FOOD STAMPS.—Section 5(i) of the Food

22 Stamp Act of 1977 is amended—

23 (A) in paragraph (1), by striking ‘‘for a

24 period of three years after the individual’s entry

25 into the United States’’ and inserting ‘‘for the
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1 period (if any) determined pursuant to section

2 1145(b) of the Social Security Act with respect

3 to such alien’’;

4 (B) in paragraph (2)(B)(ii), by striking

5 ‘‘$1,500’’ and inserting ‘‘$2,000’’;

6 (C) in paragraph (2)(C), by striking ‘‘dur7 ing the period of three years after entry into

8 the United States’’ and inserting ‘‘during the

9 period (if any) determined pursuant to section

10 1145(b) of the Social Security Act with respect

11 to such alien’’; and

12 (D) in paragraph (2)(D), by striking ‘‘dur13 ing the period of three years after such alien’s

14 entry into the United States’’ and inserting

15 ‘‘during the period (if any) determined pursu16 ant to section 1145(b) of the Social Security

17 Act with respect to such alien’’.

18 (c) STATE AND LOCAL PROGRAMS.—A State, or a po19 litical subdivision of a State, may provide that an alien

20 is not eligible for any program of cash assistance (other

21 than assistance related to pre-school, elementary, or sec22 ondary education) based on need that is furnished by such

23 State or political subdivision for any month if such alien

24 has been determined to be ineligible for such month for

25 benefits under—
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1 (1) the program of temporary employment as2 sistance under part A of title IV of the Social Secu3 rity Act, as a result of the application of section 407

4 of such Act;

5 (2) the program of supplemental security in6 come under title XVI of the Social Security Act, as

7 a result of the application of section 1611(e)(4) or

8 1621 of such Act; or

9 (3) the Food Stamp Act of 1977, as a result of

10 the application of section 5(i) or 6(i) of such Act.

11 (d) EFFECTIVE DATE.—

12 (1) The amendments made by this section are

13 effective with respect to benefits under the program

14 of temporary employment assistance authorized by

15 part A of title IV of the Social Security Act, the pro16 gram of supplemental security income authorized by

17 title XVI of the Social Security Act, and the pro18 gram authorized by the Food Stamp Act of 1977,

19 payable for months beginning on or after the date

20 60 days after enactment of this Act, on the basis

21 of—

22 (A) an application filed after such date, or

23 (B) an application filed on or before such

24 date by or on behalf of an individual subject to

25 the provisions of section 1621(a) or section 415
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1 (which is renumbered as section 407 by sub2 section (b) of this section and section 102 of

3 this Act, effective as of October 1, 1996) of the

4 Social Security Act or section 5(i)(1) of the

5 Food Stamp Act of 1977 (as the case may be)

6 on such date.

7 SEC. 403. CONTINUED LIABILITY OF ALIEN AND SPONSOR

8 FOR OVERPAYMENTS.

9 (a) TEMPORARY EMPLOYMENT ASSISTANCE.—Sec10 tion 407(d) (as redesignated and amended by section

11 402(b) of this Act) is amended by adding at the end the

12 following sentence: ‘‘If an individual who is an alien sub13 ject to this subsection is naturalized as a citizen of the

14 United States, such naturalization shall have no effect

15 upon the continued application of this subsection to such

16 individual or to such individual’s sponsor.’’.

17 (b) SUPPLEMENTAL SECURITY INCOME.—Section

18 1621(e) is amended by adding at the end the following

19 sentence: ‘‘If an individual who is an alien subject to this

20 subsection is naturalized as a citizen of the United States,

21 such naturalization shall have no effect upon the contin22 ued application of this subsection to such individual or to

23 such individual’s sponsor.’’.

24 (c) FOOD STAMPS.—Section 5(i)(2)(D) of the Food

25 Stamp Act of 1977 is amended by adding at the end the
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1 following sentence: ‘‘If an individual who is an alien sub2 ject to this subsection is naturalized as a citizen of the

3 United States, such naturalization shall have no effect

4 upon the continued application of this subsection to such

5 individual or to such individual’s sponsor.’’.

6 SEC. 404. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

7 SUPPORT.

8 (a) SPONSOR’S AFFIDAVIT OF SUPPORT.—Section

9 213 of the Immigration and Nationality Act (8 U.S.C.

10 1183) is amended—

11 (1) in the heading, by striking ‘‘ON GIVING

12 BOND’’ and inserting ‘‘UPON PROVISION OF

13 BOND OR GUARANTEE OF FINANCIAL RE14 SPONSIBILITY’’;

15 (2) by designating the existing matter as sub16 section (a); and

17 (3) by adding at the end a new subsection as

18 follows:

19 ‘‘(b)(1) ATTORNEY GENERAL’S DISCRETION TO

20 ADMIT ALIEN.—An alien excludable under paragraph (4)

21 of section 212(a) may, if otherwise admissible, be admitted

22 in the discretion of the Attorney General upon a finding

23 by the Attorney General that—

24 ‘‘(A) the alien has received a guarantee of fi25 nancial responsibility in such form as may be pre-
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1 scribed pursuant to paragraph (4) and meeting the

2 conditions described in paragraph (2); and

3 ‘‘(B) taking into consideration all relevant cir4 cumstances, it is reasonable to expect that the spon5 sor has the financial capacity to meet the obligations

6 of the guarantee.’’

7 ‘‘(2) SUBSTANCE OF GUARANTEE OF SUPPORT.—A

8 guarantee of financial responsibility for an alien must—

9 ‘‘(A) be signed in the presence of an immigra10 tion officer or consular officer (or in the presence of

11 a notary public) by an individual (referred to in this

12 subsection as the ‘sponsor’) who is 18 years of age

13 or older, is of good moral character, and is a citizen

14 or national of the United States or an alien lawfully

15 admitted for permanent residence domiciled in any

16 of the several States of the United States, the Dis17 trict of Columbia, or any territory or possession of

18 the United States; and

19 ‘‘(B) provide that the sponsor enters into a le20 gally binding commitment to furnish to or on behalf

21 of the alien financial support sufficient to meet the

22 alien’s basic subsistence needs until the alien

23 achieves United States citizenship through natu24 ralization pursuant to the Immigration and Nation25 ality Act.
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1 ‘‘(3) ENFORCEABILITY OF GUARANTEE OF SUP2 PORT.—Any guarantee of financial support executed on

3 behalf of an alien pursuant to this subsection must be en4 forceable against the sponsor and may be enforced against

5 the sponsor in a civil suit brought by the sponsored alien

6 or by the Federal Government, any State, district, terri7 tory, or possession of the United States (or any subdivi8 sion of such State, district, territory, or possession of the

9 United States) which provides benefits to the alien in any

10 court of competent jurisdiction, except that no action may

11 be brought against a sponsor if the sponsor is receiving

12 cash or food stamp benefits (as defined in paragraph (7)).

13 ‘‘(4) FORM OF GUARANTEE OF SUPPORT.—Not later

14 than 90 days after the date of enactment of this section,

15 the Secretary of State, the Attorney General, the Sec16 retary of Health and Human Services, the Secretary of

17 Agriculture, and the Commissioner of Social Security shall

18 jointly establish the form of the guarantee of financial

19 support described in this section.

20 ‘‘(5) LIMITATION OF LIABILITY.—The guarantee of

21 financial support established pursuant to this section shall

22 only apply with respect to cash or food stamp benefits (as

23 defined in paragraph (7)) provided to an alien before the

24 earliest of the following:
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1 ‘‘(A) CITIZENSHIP.—The date the alien be2 comes a citizen of the United States.

3 ‘‘(B) VETERAN.—The first date the alien is de4 scribed in section 1145(b)(2)(B) of the Social Secu5 rity Act.

6 ‘‘(C) PAYMENT OF SOCIAL SECURITY TAXES.—

7 The first date as of which the condition described in

8 section 1145(b)(2)(C) of the Social Security Act is

9 met with respect to the alien.

10 ‘‘(D) ELDERLY ALIEN.—The first date the

11 alien is described in section 1145(b)(2)(A) of the So12 cial Security Act.

13 ‘‘(6) NONAPPLICATION DURING CERTAIN PERIODS.—

14 The contract established by this section shall not apply

15 with respect to cash or food stamp benefits (as defined

16 in paragraph (7)) provided to an alien during any period

17 in which the sponsor is receiving such benefits.

18 ‘‘(7) DEFINITION OF CASH OR FOOD STAMP BENE19 FITS.—For the purposes of this section the term ‘cash or

20 food stamp benefits’ means Federal assistance provided

21 under title IV–A or XVI of the Social Security Act, under

22 the Food Stamp Act of 1977, or under similar programs

23 of a State or a political subdivision of a State that provides

24 direct cash (or cash equivalent) assistance for the purpose

25 of income maintenance and in which the eligibility of an
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1 individual, household, or family unit for such benefits

2 under the program, or the amount of such benefits, or

3 both, are determined on the basis of income, resources,

4 or financial need of the individual, household, or unit.

5 Such term does not include any program insofar as it pro6 vides medical, housing, education, job training, food, or

7 in-kind assistance or social services.’’.

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

9 this section apply to affidavits of support executed on or

10 after the date 90 days after the date of establishment of

11 the form for such affidavits under section 213(b)(4) of the

12 Immigration and Nationality Act, as added by this section.

13 TITLE V—SUPPLEMENTAL

14 SECURITY INCOME REFORMS

15 SEC. 501. DEFINITION AND ELIGIBILITY RULES.

16 (a) DEFINITION OF CHILDHOOD DISABILITY.—Sec17 tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is amended—

18 (1) in subparagraph (A), by striking ‘‘An indi19 vidual’’ and inserting ‘‘Except as provided in sub20 paragraph (C), an individual’’;

21 (2) in subparagraph (A), by striking ‘‘(or, in

22 the case of an individual under the age of 18, if he

23 suffers from any medically determinable physical or

24 mental impairment of comparable severity)’’;
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1 (3) by redesignating subparagraphs (C) through

2 (H) as subparagraphs (D) through (I), respectively;

3 (4) by inserting after subparagraph (B) the fol4 lowing new subparagraph:

5 ‘‘(C) An individual under the age of 18

6 shall be considered disabled for the purposes of

7 this title if that individual has a medically de8 terminable physical or mental impairment,

9 which results in marked and severe functional

10 limitations, and which can be expected to result

11 in death or which has lasted or can be expected

12 to last for a continuous period of not less than

13 12 months. Notwithstanding the preceding sen14 tence, no individual under the age of 18 who

15 engages in substantial gainful activity (deter16 mined in accordance with regulations prescribed

17 pursuant to subparagraph (E)) may be consid18 ered to be disabled.’’; and

19 (5) in subparagraph (F), as so redesignated by

20 paragraph (3) of this subsection, by striking ‘‘(D)’’

21 and inserting ‘‘(E)’’.

22 (b) CHANGES RESPECTING CHILDHOOD SSI REGU23 LATIONS.—

24 (1) MODIFICATION TO MEDICAL CRITERIA FOR

25 EVALUATION OF MENTAL AND EMOTIONAL DIS-
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1 ORDERS.—The Commissioner of Social Security

2 shall modify sections 112.00C.2. and

3 112.02B.2.c.(2) of appendix 1 to subpart P of part

4 404 of title 20, Code of Federal Regulations, to

5 eliminate references to maladaptive behavior in the

6 domain of personal/behavioral function.

7 (2) DISCONTINUANCE OF INDIVIDUALIZED

8 FUNCTIONAL ASSESSMENT.—The Commissioner of

9 Social Security shall discontinue the individualized

10 functional assessment for children set forth in sec11 tions 416.924d and 416.924e of title 20, Code of

12 Federal Regulations.

13 (c) CONFORMING AMENDMENT TO MEDICAL IM14 PROVEMENT REVIEW STANDARD AS IT APPLIES TO INDI15 VIDUALS UNDER THE AGE OF 18.—

16 (1) IN GENERAL.—Section 1614(a)(4) (42

17 U.S.C. 1382c(a)(4)) is amended—

18 (A) by redesignating subclauses (I) and

19 (II) of clauses (i) and (ii) of subparagraph (B)

20 as subclauses (aa) and (bb), respectively;

21 (B) by redesignating clauses (i) and (ii) of

22 subparagraphs (A) and (B) as subclauses (I)

23 and (II), respectively;

24 (C) by redesignating subparagraphs (A)

25 through (D) as clauses (i) through (iv), respec-
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1 tively, and by moving their left hand margin 2

2 ems to the right;

3 (D) by inserting before clause (i) (as redes4 ignated by subparagraph (C)) the following:

5 ‘‘(A) in the case of an individual who is

6 age 18 or older—’’;

7 (E) at the end of subparagraph (A)(iv) (as

8 redesignated by subparagraphs (C) and (D)),

9 by striking the period and inserting ‘‘; or’’;

10 (F) by inserting after and below subpara11 graph (A)(iv) (as so redesignated) the following:

12 ‘‘(B) in the case of an individual who is

13 under the age of 18—

14 ‘‘(i) substantial evidence which dem15 onstrates that there has been any medical

16 improvement in the individual’s impair17 ment or combination of impairments, and

18 that such impairment or combination of

19 impairments no longer results in marked

20 and severe functional limitations; or

21 ‘‘(ii) substantial evidence which dem22 onstrates that, as determined on the basis

23 of new or improved diagnostic techniques

24 or evaluations, the individual’s impairment

25 or combination of impairments is not as
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1 disabling as it was considered to be at the

2 time of the most recent prior decision that

3 he or she was under a disability or contin4 ued to be under a disability, and such im5 pairment or combination of impairments

6 does not result in marked and severe func7 tional limitations; or

8 ‘‘(iii) substantial evidence (which may

9 be evidence on the record at the time any

10 prior determination of eligibility for bene11 fits based on disability was made, or newly

12 obtained evidence which relates to that de13 termination) which demonstrates that a

14 prior determination was in error.’’; and

15 (G) in the first sentence following subpara16 graph (B) (as added by subparagraph (F)),

17 by—

18 (i) inserting ‘‘(i)’’ before ‘‘to restore’’;

19 and

20 (ii) inserting ‘‘, or

21 (ii) in the case of an individual under

22 the age of 18, to eliminate or improve the

23 individual’s impairment or combination of

24 impairments so that it no longer results in
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1 marked and severe functional limitations’’

2 before the period.

3 (2) EFFECTIVE DATE.—The amendments made

4 by this subsection are effective upon enactment.

5 (d) EFFECTIVE DATE; REGULATIONS; APPLICATION

6 TO CURRENT RECIPIENTS.—

7 (1) IN GENERAL.—Except where otherwise

8 specified, subsections (a) and (b) apply to applica9 tions filed on or after the date of the enactment of

10 this Act, without regard to whether implementing

11 regulations have been issued.

12 (2) REGULATIONS.—The Commissioner of So13 cial Security shall issue regulations implementing

14 subsections (a), (b), and (c).

15 (3) APPLICATION TO CURRENT RECIPIENTS.—

16 (A) ELIGIBILITY DETERMINATIONS.—Be17 ginning on January 1, 1997, and ending not

18 later than January 1, 1998, the Commissioner

19 of Social Security shall redetermine the eligi20 bility of any individual under age 18 who is eli21 gible for supplemental security income benefits

22 based on a disability under title XVI of the So23 cial Security Act as of the date of the enact24 ment of this Act and whose eligibility for such

25 benefits may terminate by reason of subsections
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1 (a) or (b) of this section. With respect to any

2 redetermination under this subparagraph—

3 (i) section 1614(a)(4) of the Social

4 Security Act (42 U.S.C. 1382c(a)(4)) shall

5 not apply;

6 (ii) the Commissioner of Social Secu7 rity shall apply the eligibility criteria for

8 new applicants for benefits under title XVI

9 of such Act ;

10 (iii) the Commissioner shall give such

11 redetermination priority over all continuing

12 eligibility reviews and other reviews under

13 such title; and

14 (iv) such redetermination shall be

15 counted as a review or redetermination

16 otherwise required to be made under sec17 tion 208 of the Social Security Independ18 ence and Program Improvements Act of

19 1994 or any other provision of title XVI of

20 the Social Security Act.

21 (B) GRANDFATHER PROVISION.—Sub22 sections (a) and (b) of this section and the re23 determination under subparagraph (A) of this

24 paragraph only apply with respect to the bene25 fits of an individual described in subparagraph
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1 (A) for months beginning on or after January

2 1, 1998.

3 (C) NOTICE.—Not later than January 1,

4 1997, the Commissioner of Social Security shall

5 notify an individual described in subparagraph

6 (A) of the provisions of this paragraph.

7 SEC. 502. ELIGIBILITY REDETERMINATIONS AND CONTINU8 ING DISABILITY REVIEWS.

9 (a) CONTINUING DISABILITY REVIEWS RELATING TO

10 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

11 1382c(a)(3)(H)), as so redesignated by section 501(a)(3)

12 of this Act, is amended—

13 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

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

15 clause:

16 ‘‘(ii)(I) Not less frequently than once

17 every 3 years, the Commissioner shall re18 view in accordance with paragraph (4) the

19 continued eligibility for benefits under this

20 title of each individual who has not at21 tained 18 years of age and is eligible for

22 such benefits by reason of an impairment

23 (or combination of impairments) which

24 may improve (or, which is unlikely to im25 prove, at the option of the Commissioner).
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1 ‘‘(II) A parent or guardian of a recipi2 ent whose case is reviewed under this

3 clause shall present, at the time of review,

4 evidence demonstrating that the recipient

5 is, and has been, receiving treatment, to

6 the extent considered medically necessary

7 and available, of the condition which was

8 the basis for providing benefits under this

9 title.’’.

10 (b) DISABILITY ELIGIBILITY REDETERMINATIONS

11 REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS

12 OF AGE.—

13 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

14 U.S.C. 1382c(a)(3)(H)), as so redesignated by sec15 tion 501(a)(3) of this Act and as amended by sub16 section (a) of this section, is amended by adding at

17 the end the following new clause:

18 ‘‘(iii) If an individual is eligible for

19 benefits under this title by reason of dis20 ability for the month preceding the month

21 in which the individual attains the age of

22 18 years, the Commissioner shall redeter23 mine such eligibility—
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1 ‘‘(I) during the 1-year period be2 ginning on the individual’s 18th birth3 day; and

4 ‘‘(II) by applying the criteria

5 used in determining the initial eligi6 bility for applicants who have attained

7 the age of 18 years.

8 With respect to a redetermination under

9 this clause, paragraph (4) shall not apply

10 and such redetermination shall be consid11 ered a substitute for a review or redeter12 mination otherwise required under any

13 other provision of this subparagraph dur14 ing that 1-year period.’’.

15 (2) CONFORMING REPEAL.—Section 207 of the

16 Social Security Independence and Program Improve17 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

18 1516) is repealed.

19 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

20 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)

21 (42 U.S.C. 1382c(a)(3)(H)), as so redesignated by section

22 501(a)(3) of this Act and as amended by subsections (a)

23 and (b) of this section, is amended by adding at the end

24 the following new clause:
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1 ‘‘(iv)(I) Not later than 12 months

2 after the first month of eligibility based on

3 an application of an individual for benefits

4 under this title, the Commissioner shall re5 view in accordance with paragraph (4) the

6 continuing eligibility for benefits by reason

7 of disability of such individual whose low

8 birth weight is a contributing factor mate9 rial to the Commissioner’s determination

10 that the individual is disabled.

11 ‘‘(II) A review under subclause (I)

12 shall be considered a substitute for a re13 view otherwise required under any other

14 provision of this subparagraph during that

15 12-month period.

16 ‘‘(III) A parent or guardian of a re17 cipient whose case is reviewed under this

18 clause shall present, at the time of review,

19 evidence demonstrating that the recipient

20 is, and has been, receiving treatment, to

21 the extent considered medically necessary

22 and available, for the condition which was

23 the basis for providing benefits under this

24 title.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section apply to benefits for months beginning on or

3 after the date of the enactment of this Act, without regard

4 to whether regulations have been issued to implement such

5 amendments.

6 SEC. 503. DEDICATED SAVINGS ACCOUNTS.

7 (a) IN GENERAL.—Section 1631(a)(2)(B) (42 U.S.C.

8 1383(a)(2)(B)) is amended by adding at the end the fol9 lowing:

10 ‘‘(xiv) A representative payee may pay

11 any lump sum payment equal to or greater

12 than 6 times the Federal benefit rate for

13 the benefit of a child into a dedicated sav14 ings account that must only be used to

15 purchase for such child, or an individual

16 for whom such an account was established

17 prior to his attainment of age 18,—

18 ‘‘(I) education and job skills

19 training;

20 ‘‘(II) special equipment or hous21 ing modifications or both specifically

22 related to, and required by the nature

23 of, the child’s disability; and

24 ‘‘(III) appropriate therapy and

25 rehabilitation.’’.
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1 (b) EXCLUSION OF DEDICATED SAVINGS AC2 COUNTS.—

3 (1) Section 1613(a) (42 U.S.C. 1382b(a)) is

4 amended—

5 (A) by striking ‘‘and’’ at the end of para6 graph (10),

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

8 paragraph (11) and inserting ‘‘; and’’, and

9 (C) by inserting after paragraph (11) the

10 following:

11 ‘‘(12) the initial and any subsequent lump sum

12 payment deposited in, or interest credited to, a dedi13 cated savings account described in section

14 1631(a)(2)(B)(xiv), so long as such monies are being

15 used for a purpose listed in that section.’’.

16 (2) Section 1612(b) (42 U.S.C. 1382a(b)) is

17 amended:

18 (A) by striking ‘‘and’’ at the end of para19 graph (19),

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

21 paragraph (20) and inserting thereafter ‘‘and,’’,

22 and

23 (C) by inserting after paragraph (20) the

24 following new paragraph:
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1 ‘‘(21) interest earned on a dedicated savings ac2 count as described in section 1631(a)(2)(B)(xiv) so

3 long as monies in such account are used for a pur4 pose listed in such section.’’.

5 (c) PENALTIES FOR MISUSE OF FUNDS.—Knowing

6 and willful use of funds in a dedicated savings account

7 by the representative payee for any purpose other than

8 those listed in subsection (a) constitutes fraud and is sub9 ject to penalties under section 1632.

10 (d) EFFECTIVE DATE.—The amendments made by

11 this section apply to payments made after the date of en12 actment of this Act.

13 SEC. 504. DENIAL OF SSI BENEFITS BY REASON OF DISABIL14 ITY TO DRUG ADDICTS AND ALCOHOLICS.

15 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

16 1382c(a)(3)), as amended by section 501(a)(3) of this Act,

17 is amended by adding at the end the following:

18 ‘‘(J) Notwithstanding subparagraph (A),

19 an individual shall not be considered to be dis20 abled for purposes of this title if alcoholism or

21 drug addiction would (but for this subpara22 graph) be a contributing factor material to the

23 Commissioner’s determination that the individ24 ual is disabled.’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 1611(e) (42 U.S.C. 1382(e)) is

2 amended by striking paragraph (3).

3 (2) Section 1631(a)(2)(A)(ii) (42 U.S.C.

4 1383(a)(2)(A)(ii)) is amended—

5 (A) by striking ‘‘(I)’’; and

6 (B) by striking subclause (II).

7 (3) Section 1631(a)(2)(B) (42 U.S.C.

8 1383(a)(2)(B)) is amended—

9 (A) by striking clause (vii);

10 (B) in clause (viii), by striking ‘‘(ix)’’ and

11 inserting ‘‘(viii)’’;

12 (C) in clause (ix)—

13 (i) in subclause (I), by striking

14 ‘‘(viii)’’ and inserting ‘‘(vii)’’; and

15 (ii) in subclause (II),

16 (I) by striking the comma after

17 ‘‘incompetent’’ and inserting ‘‘or’’;

18 and

19 (II) by striking all that follows

20 ‘‘15 years’’ and inserting a period;

21 (D) in clause (xiii)—

22 (i) by striking ‘‘(xii)’’ and inserting

23 ‘‘(xi)’’; and

24 (ii) by striking ‘‘(xi)’’ and inserting

25 ‘‘(x)’’; and
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1 (E) by redesignating clauses (viii) through

2 (xiv) as clauses (vii) through (xiii), respectively.

3 (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

4 1383(a)(2)(D)(i)(II)) is amended by striking all that

5 follows ‘‘$25.00 per month’’ and inserting a period.

6 (5) Section 1634 (42 U.S.C. 1383c) is amended

7 by striking subsection (e).

8 (6) Section 201(c)(1) of the Social Security

9 Independence and Program Improvements Act of

10 1994 (42 U.S.C. 425 note) is amended—

11 (A) by striking ‘‘—’’ and all that follows

12 through ‘‘(A)’’ the 1st place such term appears;

13 (B) by striking ‘‘and’’ the 3rd place such

14 term appears;

15 (C) by striking subparagraph (B);

16 (D) by striking ‘‘either subparagraph (A)

17 or subparagraph (B)’’ and inserting ‘‘the pre18 ceding sentence’’; and

19 (E) by striking ‘‘subparagraph (A) or (B)’’

20 and inserting ‘‘the preceding sentence’’.

21 (c) EFFECTIVE DATE.—

22 (1) The amendments made by this section apply

23 to applications filed on or after the date of the en24 actment of this Act, without regard to whether regu-
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1 lations have been issued to implement such amend2 ments.

3 (2) APPLICATION AND NOTICE TO CURRENT RE4 CIPIENTS.—Notwithstanding any other provision of

5 law, in the case of an individual who is eligible for

6 supplemental security income benefits under title

7 XVI of the Social Security Act as of the date of the

8 enactment of this Act and whose eligibility for such

9 benefits would terminate by reason of the amend10 ments made by this section, such amendments shall

11 apply with respect to the benefits of such individual

12 for months beginning on or after January 1, 1997,

13 and the Commissioner of Social Security shall so no14 tify the individual not later than 90 days after the

15 date of the enactment of this Act. As used in the

16 preceding sentence, the phrase ‘‘supplemental secu17 rity income benefits under title XVI’’ includes sup18 plementary payments pursuant to an agreement for

19 Federal administration under section 1616(a) of the

20 Social Security Act and payments pursuant to an

21 agreement for Federal administration under section

22 212(b) of Public Law 93–66.

23 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

24 SUBSTANCE ABUSE TREATMENT PROGRAMS.—
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1 (1) IN GENERAL.—Out of any money in the

2 Treasury not otherwise appropriated, there are here3 by appropriated to supplement State and Tribal pro4 grams funded under section 1933 of the Public

5 Health Service Act (42 U.S.C. 300x–33),

6 $50,000,000 for each of the fiscal years 1997 and

7 1998.

8 (2) ADDITIONAL FUNDS.—Amounts appro9 priated under paragraph (1) shall be in addition to

10 any funds otherwise appropriated for allotments

11 under section 1933 of the Public Health Service Act

12 (42 U.S.C. 300x–33) and shall be allocated pursuant

13 to that section.

14 (3) USE OF FUNDS.—A State or Tribal govern15 ment receiving an allotment under this subsection

16 shall consider as priorities, for purposes of expend17 ing funds allotted under this subsection, activities

18 relating to the treatment of the abuse of alcohol and

19 other drugs.
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1 SEC. 505. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI2 VIDUALS FOUND TO HAVE FRAUDULENTLY

3 MISREPRESENTED RESIDENCE IN ORDER TO

4 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

5 MORE STATES.

6 Section 1632 (42 U.S.C. 1383a) is amended by add7 ing at the end the following:

8 ‘‘(c)(1) If any individual is convicted of fraudulently

9 misrepresenting residence in order to obtain benefits si10 multaneously in two or more States, then the court may,

11 in addition to all other penalties provided by law, impose

12 a penalty that an individual shall not be considered an

13 eligible individual for purposes of this title during the 10-

14 year period beginning on the date the individual is found

15 by a State to have made, or is convicted in Federal or

16 State court of having made, a fraudulent statement or rep17 resentation with respect to the place of residence of the

18 individual in order to receive benefits simultaneously from

19 2 or more States under programs that are funded under

20 part A of title IV, or title XIX of this Act, the consolidated

21 program of food assistance under title III of the Work

22 First and Personal Responsibility Act of 1996, or the

23 Food Stamp Act of 1977 (as in effect before the effective

24 date of title III of the Work First and Personal Respon25 sibility Act of 1996), or benefits in 2 or more States under
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1 the supplemental security income program under title XVI

2 of this Act.

3 ‘‘(2) As soon as practicable after an additional pen4 alty has, pursuant to paragraph (1), been imposed with

5 respect to any individual, an official of a court making

6 such imposition shall notify the Commissioner of such im7 position.

8 ‘‘(3) If any individual with respect to whom an addi9 tional penalty has been imposed pursuant to paragraph

10 (1) is granted a pardon by the President of the United

11 States, such additional penalty shall not apply for any

12 month beginning after the date on which such pardon was

13 granted.’’.

14 SEC. 506. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

15 AND PROBATION AND PAROLE VIOLATORS.

16 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

17 1382(e)), as amended by section 504(b)(1) of this Act,

18 is amended by inserting after paragraph (2) the following:

19 ‘‘(3) A court of law may, in addition to all other

20 penalties provided by law, impose on the individual

21 ineligibility for benefits under this title with respect

22 to any month if, throughout the month, the person

23 is—

24 ‘‘(A) fleeing custody or confinement after

25 conviction, under the laws of the place from
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1 which the person flees, for a crime which is a

2 felony under the laws of the place from which

3 the person flees, or which, in the case of the

4 State of New Jersey, is a high misdemeanor

5 under the laws of such State; or

6 ‘‘(B) violating a condition of probation or

7 parole imposed under Federal or State law.

8 ‘‘(4) As soon as practicable after the additional

9 penalty has been imposed pursuant to paragraph (3)

10 with respect to any individual, an official of the

11 court making such imposition shall notify the Com12 missioner of such imposition.’’.

13 (b) EXCHANGE OF INFORMATION WITH LAW EN14 FORCEMENT AGENCIES.—Section 1631(e) (42 U.S.C.

15 1383(e)) is amended by inserting after paragraph (3) the

16 following:

17 ‘‘(4) Notwithstanding any other provision of

18 law (other than section 6103 of the Internal Reve19 nue Code of 1986), the Commissioner shall furnish

20 any Federal, State, or local law enforcement agency,

21 upon the written request of the head of the agency,

22 with the current address of any recipient of benefits

23 under this title, if the agency furnishes the Commis24 sioner with the name of the recipient, and other

25 identifying information as required by the Commis-
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1 sioner reasonably to establish the unique identity of

2 the recipient, and a statement from a court of com3 petent jurisdiction and notifies the Commissioner

4 that the recipient—

5 ‘‘(A) has been found by a court of com6 petent jurisdiction to be fleeing to avoid pros7 ecution, or custody or confinement after convic8 tion, under the laws of the place from which the

9 person flees, for a crime, or an attempt to com10 mit a crime, which is a felony under the laws

11 of the place from which the person flees, or

12 which, in the case of the State of New Jersey,

13 is a high misdemeanor under the laws of such

14 State; or

15 ‘‘(B) has been found by a court of com16 petent jurisdiction to be violating a condition of

17 probation or parole imposed for a crime as in

18 (A) above under Federal or State law.’’.
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1 SEC. 507. ALLOWANCE UNDER THE DISCRETIONARY

2 SPENDING LIMITS FOR INCREASED EXPENDI3 TURES FOR CONTINUING DISABILITY RE4 VIEWS AND DISABILITY ELIGIBILITY RE5 DETERMINATIONS.

6 (a) Section 251(b)(2) of the Balanced Budget and

7 Emergency Deficit Control Act of 1985 is amended by

8 adding the following new subparagraph:

9 ‘‘(H) CONTINUING DISABILITY REVIEWS

10 AND DISABILITY ELIGIBILITY REDETERMINA11 TIONS.—

12 ‘‘(i) When an appropriations Act is

13 enacted for fiscal year 1996, 1997, 1998,

14 1999, 2000, 2001, or 2002 that specifies,

15 under the heading ‘‘Limitation on Admin16 istrative Expenses’’ for the Social Security

17 Administration, an amount for expenses

18 for continuing disability reviews or disabil19 ity eligibility redeterminations conducted

20 pursuant to section 221(i) of the Social Se21 curity Act (42 U.S.C. 421(i)), section

22 1614(a)(3)(H) of the Social Security Act

23 (42 U.S.C. 1382c(a)(3)(H)), section 1633

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

25 1383b), or section 208 of the Social Secu26 rity Independence and Program Improve-
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1 ments Act of 1994 (Public Law 103–296),

2 to the extent that appropriations are en3 acted that provide new budget authority,

4 provide additional obligations limitation, or

5 result in additional outlays, the discre6 tionary spending limits for that fiscal year

7 under section 601(a)(2) of the Congres8 sional Budget Act of 1974 shall be ad9 justed by the new budget authority and the

10 additional outlays for that purpose, but

11 shall not exceed the amounts set forth

12 below—

13 ‘‘(I) for fiscal year 1996,

14 $60,000,000 in new budget authority

15 and additional obligations limitation

16 and $60,000,000 in additional out17 lays;

18 ‘‘(II) for fiscal year 1997,

19 $260,000,000 in new budget authority

20 and additional obligations limitation

21 and $250,000,000 in additional out22 lays;

23 ‘‘(III) for fiscal year 1998,

24 $475,000,000 in new budget authority

25 and additional obligations limitation
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1 and $460,000,000 in additional out2 lays;

3 ‘‘(IV) for fiscal year 1999,

4 $715,000,000 in new budget authority

5 and additional obligations limitation

6 and $700,000,000 in additional out7 lays;

8 ‘‘(V) for fiscal year 2000,

9 $760,000,000 in new budget authority

10 and additional obligations limitation

11 and $760,000,000 in outlays;

12 ‘‘(VI) for fiscal year 2001,

13 $715,000,000 in new budget authority

14 and additional obligations limitation

15 and $715,000,000 in outlays;

16 ‘‘(VII) for fiscal year 2002,

17 $665,000,000 in new budget authority

18 and additional obligations limitation

19 and $665,000,000 in outlays;

20 ‘‘(ii) As used in this subparagraph—

21 ‘‘(I) the term ‘new budget au22 thority’ shall mean budget authority,

23 in any fiscal year, in excess of $100

24 million;
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1 ‘‘(II) the term ‘additional obliga2 tions limitation’ shall mean obliga3 tions limitation, in any fiscal year, in

4 excess of $100 million; and

5 ‘‘(III) the term ‘additional out6 lays’ shall mean outlays, in any fiscal

7 year, in excess of $200 million.’’.

8 (b) Section 606 of the Congressional Budget and Im9 poundment Control Act of 1974 is amended by adding the

10 following new subsection:

11 ‘‘(e) DISABILITY REVIEW AND ELIGIBILITY REDE12 TERMINATION ADJUSTMENT.—

13 ‘‘(1) For purposes of points of order under this

14 Act and concurrent resolutions on the budget, when

15 the Appropriations Committee reports an appropria16 tions measure for fiscal year 1996, 1997, 1998,

17 1999, 2000, 2001, or 2002 that specifies, under the

18 heading ‘Limitation on Administrative Expenses’ for

19 the Social Security Administration, an amount for

20 expenses for continuing disability reviews or disabil21 ity eligibility redeterminations pursuant to section

22 221(i) of the Social Security Act (42 U.S.C. 421(i)),

23 section 1614(a)(3)(H) of the Social Security Act (42

24 U.S.C. 1382c(a)(3)(H)), section 1633 of the Social

25 Security Act (42 U.S.C. 1383b), or section 208 of
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1 the Social Security Independence and Program Im2 provements Act of 1994 (Public Law 103–296), or

3 when a conference committee submits a conference

4 report thereon—

5 ‘‘(A) the discretionary spending limits for

6 that fiscal year—

7 ‘‘(i) under section 601(a)(2), or

8 ‘‘(ii) as set forth in the most recently

9 adopted concurrent resolution on the budg10 et;

11 ‘‘(B) the allocations to the Committee on

12 Appropriations of the Senate and the House for

13 that fiscal year under sections 302(a) and

14 602(a); and

15 ‘‘(C) the appropriate budgetary aggregates

16 for that fiscal year in the most recently adopted

17 concurrent resolution on the budget shall be ad18 justed in accordance with paragraph (2).

19 ‘‘(2) ADJUSTMENT OF BUDGETARY LEVELS.—

20 The adjustments required by paragraph (1) shall be

21 made by the Chairman of the Committee on the

22 Budget of the Senate or the House of Representa23 tives (as the case may be) and shall reflect the new

24 budget authority and the additional outlays for con25 tinuing disability reviews and disability eligibility re-
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1 determinations provided in that measure or con2 ference report, but shall not exceed the levels set

3 forth in section 251(b)(2)(H) of the Balanced Budg4 et and Emergency Deficit Control Act of 1985, for

5 any year. These adjusted discretionary spending lim6 its, allocations, and aggregates shall be considered

7 the appropriate limits, allocations, and aggregates

8 for purposes of congressional enforcement of this

9 Act and concurrent budget resolutions under this

10 Act.

11 ‘‘(3) REPORTING REVISED SUBALLOCATIONS.—

12 Following the adjustments made under paragraph

13 (2), the Committees on Appropriations of the Senate

14 and the House of Representatives may report appro15 priately revised suballocations pursuant to sections

16 302(b) and 602(b) of this Act to carry out this sub17 section.

18 ‘‘(4) ADDITIONAL AMOUNTS.—As used in this

19 section, the term ‘new budget authority’ shall mean

20 budget authority for a fiscal year in excess of $100

21 million, and the term ‘additional outlays’ shall mean

22 outlays for a fiscal year in excess of $200 million.’’.
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1 SEC. 508. INSTALLMENT PAYMENT OF LARGE PAST-DUE

2 SUPPLEMENTAL SECURITY INCOME BENE3 FITS.

4 (a) IN GENERAL.—Section 1631(a) is amended by

5 adding at the end a new paragraph as follows:

6 ‘‘(10)(A) If an individual is eligible for past-due

7 monthly benefits under this title (which includes, for

8 purposes of this paragraph, State supplementary

9 payments made by the Commissioner pursuant to an

10 agreement under section 1616 (a) of this title or sec11 tion 212(b) of Public Law 93–66) in an amount that

12 (after any withholding for reimbursement to a State

13 for interim assistance under subsection (g)) equals

14 or exceeds the product of—

15 ‘‘(i) twelve, and

16 ‘‘(ii) the maximum monthly benefit payable

17 under this title to an eligible individual (or, if

18 appropriate, to an eligible individual and eligible

19 spouse), then the payment of such past-due

20 benefits (after any such reimbursement to a

21 State) shall be made in installments as provided

22 in subparagraph (B).

23 ‘‘(B)(i) The payment of past-due benefits sub24 ject to this subparagraph shall be made in not to ex25 ceed three installments that are made at six-month

26 intervals.
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1 ‘‘(ii) Except as provided in clause (iii), the

2 amount of each of the first and second installments

3 may not exceed an amount equal to the product of

4 clauses (i) and (ii) of subparagraph (A).

5 ‘‘(iii) In the case of an individual who has—

6 ‘‘(I) outstanding debt attributable to—

7 ‘‘(aa) food,

8 ‘‘(bb) clothing,

9 ‘‘(cc) shelter, or

10 ‘‘(dd) medically necessary services,

11 supplies or equipment, or medicine; or

12 ‘‘(II) current expenses or expenses antici13 pated in the near term attributable to—

14 ‘‘(aa) medically necessary services,

15 supplies or equipment, or medicine, or

16 ‘‘(bb) the purchase of a home, and

17 such debt or expenses are not subject to

18 reimbursement by a public assistance pro19 gram, the Secretary of Health and Human

20 Services under title XVIII, a State plan

21 approved under title XIX, or any private

22 entity legally liable to provide payment

23 pursuant to an insurance policy, pre-paid

24 plan, or other arrangement, the limitation

25 specified in clause (ii) may be exceeded by
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1 an amount equal to the total of such debt

2 and expenses.

3 ‘‘(C) This paragraph shall not apply to any in4 dividual who, at the time of the Commissioner’s de5 termination that such individual is eligible for the

6 payment of past-due monthly benefits under this

7 title—

8 ‘‘(i) is afflicted with a medically determina9 ble impairment that is expected to result in

10 death within twelve months; or

11 ‘‘(ii) is ineligible for benefits under this

12 title and the Commissioner determines that

13 such individual is likely to remain ineligible for

14 the next 12 months.’’.

15 (b) CONFORMING AMENDMENT.—Section 1631(a)(1)

16 is amended by inserting ‘‘(subject to paragraph (10))’’ be17 fore ‘‘in such installments’’.

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

19 this section are effective with respect to past-due benefits

20 payable under title XVI of the Social Security Act (includ21 ing State supplementary payments made by the Commis22 sioner of Social Security pursuant to an agreement under

23 section 1616(a) of such Act or section 212(b) of Public

24 Law 93–66) after the third month following the month

25 in which this Act is enacted.
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1 SEC. 509. RECOVERY OF SUPPLEMENTAL SECURITY IN2 COME OVERPAYMENTS FROM SOCIAL SECU3 RITY BENEFITS.

4 (a) IN GENERAL.—Title XI is amended by adding

5 after section 1145 (as added by section 401 and amended

6 by section 402 of this Act) a new section as follows:

7 ‘‘SEC. 1146. RECOVERY OF SSI OVERPAYMENTS FROM SO8 CIAL SECURITY BENEFITS.

9 ‘‘(a) IN GENERAL.—Whenever the Commissioner of

10 Social Security determines that more than the correct

11 amount of any payment has been made to any person

12 under the supplemental security income program author13 ized by title XVI of this Act (which includes, for purposes

14 of this section, State supplementary payments which are

15 made by the Commissioner under an agreement pursuant

16 to section 1616(a) of this Act or section 212(b) of Public

17 Law 93–66), and the Commissioner is unable to make

18 proper adjustment or recovery of the amount so incor19 rectly paid as provided in section 1631(b) of this Act, the

20 Commissioner (notwithstanding section 207 of this Act)

21 may recover the amount incorrectly paid by decreasing any

22 amount which is payable under the Federal Old-Age and

23 Survivors Insurance program or the Federal Disability In24 surance program authorized by title II of this Act to that

25 person or his estate.
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1 ‘‘(b) NO EFFECT ON SSI BENEFIT ELIGIBILITY OR

2 AMOUNT.—Notwithstanding sections 1611 (a) and (b) of

3 this Act, in any case in which the Commissioner takes ac4 tion in accordance with subsection (a) to recover an over5 payment from any person, neither that person, nor any

6 individual whose eligibility or benefit amount is deter7 mined by considering any part of that person’s income,

8 shall, as a result of such action—

9 ‘‘(1) become eligible under the program of sup10 plemental security income benefits under title XVI

11 of this Act, or

12 ‘‘(2) if such person or individual is already so

13 eligible, become eligible for increased benefits there14 under.’’.

15 (b) CONFORMING CHANGES.—

16 (1) Section 204 is amended by adding at the

17 end a new subsection as follows:

18 ‘‘(g) For payments which are adjusted or withheld

19 to recover an overpayment of supplemental security in20 come benefits paid under title XVI of this Act (including

21 State supplementary payments which were paid under an

22 agreement pursuant to section 1616(a) of this Act or sec23 tion 212(b) of Public Law 93–66), see section 1146.’’.

24 (2) Section 1631(b) is amended by adding at

25 the end a new paragraph as follows:
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1 ‘‘(5) For the recovery of overpayments of bene2 fits under this title from benefits payable under title

3 II, see section 1146.’’.

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

5 this section take effect upon the date of the enactment

6 of this Act and shall apply to overpayments outstanding

7 on or after such date.

8 SEC. 510. ALLOWANCE UNDER THE DISCRETIONARY

9 SPENDING LIMITS FOR ADMINISTRATIVE EX10 PENSES TO IMPLEMENT CHANGES TO SUP11 PLEMENTAL SECURITY INCOME PROGRAM.

12 (a) Section 251(b)(2) of the Balanced Budget and

13 Emergency Deficit Control Act of 1985, as amended by

14 section 507 of this Act, is further amended by adding at

15 the end the following new subparagraph:

16 ‘‘(I) ADMINISTRATIVE EXPENSES TO IM17 PLEMENT REFORMS TO SUPPLEMENTAL SECU18 RITY INCOME PROGRAM MADE BY THE WORK

19 FIRST AND PERSONAL RESPONSIBILITY ACT OF

20 1996.—When an appropriations Act is enacted

21 for fiscal year 1996, 1997, or 1998 that speci22 fies, under the heading ‘Limitation on Adminis23 trative Expenses’ for the Social Security Ad24 ministration, an amount for expenses to imple25 ment reforms to the supplemental security in-
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1 come program made by the Work First and

2 Personal Responsibility Act of 1996, to the ex3 tent that appropriations are enacted that pro4 vide budget authority and result in outlays, the

5 discretionary spending limits for that fiscal year

6 under section 601(a)(2) of the Congressional

7 Budget Act of 1974 shall be adjusted by the

8 budget authority and the outlays for that pur9 pose, but shall not exceed the amounts set forth

10 below—

11 ‘‘(i) for fiscal year 1996, $50,000,000

12 in budget authority and $47,000,000 in

13 outlays;

14 ‘‘(ii) for fiscal year 1997,

15 $250,000,000 in budget authority and

16 $238,000,000 in outlays;

17 ‘‘(iii) for fiscal year 1998, $0 in budg18 et authority and $15,000,000 in outlays.’’.

19 (b) Section 606 of the Congressional Budget and Im20 poundment Control Act of 1974 is amended by adding the

21 following new subsection:

22 ‘‘(f) ADMINISTRATIVE EXPENSES TO IMPLEMENT

23 REFORMS TO SUPPLEMENTAL SECURITY INCOME PRO24 GRAM ADJUSTMENT.—
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1 ‘‘(1) For purposes of points of order under this

2 Act and concurrent resolutions on the budget, when

3 the Appropriations Committee reports an appropria4 tions measure for fiscal year 1996, 1997, or 1998

5 that specifies, under the heading ‘Limitation on Ad6 ministrative Expenses’ for the Social Security Ad7 ministration, an amount for expenses to implement

8 reforms to the supplemental security income pro9 gram made by the Work First and Personal Respon10 sibility Act of 1996, or when a conference committee

11 submits a conference report thereon,—

12 ‘‘(A) the discretionary spending limits for

13 that fiscal year—

14 ‘‘(i) under section 601(a)(2), or

15 ‘‘(ii) as set forth in the most recently

16 adopted concurrent resolution on the budg17 et;

18 ‘‘(B) the allocations to the Committee on

19 Appropriations of the Senate and the House for

20 that fiscal year under sections 302(a) and

21 602(a); and

22 ‘‘(C) the appropriate budgetary aggregates

23 for that fiscal year in the most recently adopted

24 concurrent resolution on the budget shall be ad25 justed in accordance with paragraph (2).
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1 ‘‘(2) ADJUSTMENT OF BUDGETARY LEVELS.—

2 The adjustments required by paragraph (1) shall be

3 made by the Chairman of the Committee on the

4 Budget of the Senate or the House of Representa5 tives (as the case may be) and shall reflect the budg6 et authority and the outlays for expenses to imple7 ment reforms to the supplemental security income

8 program made by the Work First and Personal Re9 sponsibility Act of 1996 provided in that measure or

10 conference report, but shall not exceed the levels set

11 forth in section 251(b)(2)(I) of the Balanced Budget

12 and Emergency Deficit Control Act of 1985, for any

13 year. These adjusted discretionary spending limits,

14 allocations, and aggregates shall be considered the

15 appropriate limits, allocations, and aggregates for

16 purposes of congressional enforcement of this Act

17 and concurrent budget resolutions under this Act.

18 ‘‘(3) REPORTING REVISED SUBALLOCATIONS.—

19 Following the adjustments made under paragraph

20 (2), the Committees on Appropriations of the Senate

21 and the House of Representatives may report appro22 priately revised suballocations pursuant to sections

23 302(b) and 602(b) of this Act to carry out this sub24 section.’’.
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1 SEC. 511. REDUCTION IN CASH BENEFITS PAYABLE TO IN2 STITUTIONALIZED INDIVIDUALS WHOSE MED3 ICAL COSTS ARE COVERED BY PRIVATE IN4 SURANCE.

5 (a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.

6 1382(e)(1)(B)) is amended—

7 (1) by striking ‘‘or’’ after ‘‘XIX,’’; and

8 (2) by inserting ‘‘or, in the case of an eligible

9 individual under the age of 18 receiving payments

10 (with respect to such individual) under any health

11 insurance policy issued by a private provider of such

12 insurance’’ after ‘‘section 1614(f)(2)(B),’’.

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

14 this section apply to benefits for months beginning 90 or

15 more days after the date of the enactment of this Act,

16 without regard to whether regulations have been issued

17 to implement such amendments.

18 TITLE F—SOCIAL SERVICES

19 BLOCK GRANTS

20 SEC. 601. REDUCTION IN TITLE XX BLOCK GRANTS TO

21 STATES FOR SOCIAL SERVICES.

22 Section 2003(c) of the Social Security Act (42 U.S.C.

23 1397b(c)) is amended—

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

25 (4);
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1 (2) in paragraph (5), by striking ‘‘fiscal year

2 after fiscal year 1989.’’ and inserting ‘‘of fiscal

3 years 1990 through 1995;’’; and

4 (3) by adding at the end the following:

5 ‘‘(6) $2,730,000,000 for fiscal year 1996; and

6 (7) $2,520,000,000 for fiscal year 1997 and

7 each succeeding fiscal year.’’.

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