II

104TH CONGRESS

2D SESSION H. R. 3734

IN THE SENATE OF THE UNITED STATES

JULY 18, 1996

Received

AN ACT

To provide for reconciliation pursuant to section 201(a)(1)

of the concurrent resolution on the budget for fiscal

year 1997.

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

2 This Act may be cited as the ‘‘Welfare Reform Rec3 onciliation Act of 1996’’.

4 SEC. 2. TABLE OF TITLES.

5 The table of titles of this Act is as follows:

Title I—Committee on Agriculture

Title II—Committee on Commerce

Title III—Committee on Economic and Educational Opportunities

Title IV—Committee on Ways and Means

6 TITLE I—COMMITTEE ON

7 AGRICULTURE

8 SEC. 1001. SHORT TITLE.

9 This title may be cited as the ‘‘Food Stamp Reform

10 and Commodity Distribution Act of 1996’’.

11 SEC. 1002. TABLE OF CONTENTS.

12 The table of contents of this title is as follows:

Sec. 1001. Short title.

Sec. 1002. Table of contents.

Subtitle A—Food Stamp Program

Sec. 1011. Definition of certification period.

Sec. 1012. Definition of coupon.

Sec. 1013. Treatment of children living at home.

Sec. 1014. Optional additional criteria for separate household determinations.

Sec. 1015. Adjustment of thrifty food plan.

Sec. 1016. Definition of homeless individual.

Sec. 1017. State option for eligibility standards.

Sec. 1018. Earnings of students.

Sec. 1019. Energy assistance.

Sec. 1020. Deductions from income.

Sec. 1021. Vehicle allowance.

Sec. 1022. Vendor payments for transitional housing counted as income.

Sec. 1023. Doubled penalties for violating food stamp program requirements.

Sec. 1024. Disqualification of convicted individuals.

Sec. 1025. Disqualification.

Sec. 1026. Caretaker exemption.

Sec. 1027. Employment and training.

Sec. 1028. Comparable treatment for disqualification.

Sec. 1029. Disqualification for receipt of multiple food stamp benefits.

Sec. 1030. Disqualification of fleeing felons.
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Sec. 1031. Cooperation with child support agencies.

Sec. 1032. Disqualification relating to child support arrears.

Sec. 1033. Work requirement.

Sec. 1034. Encourage electronic benefit transfer systems.

Sec. 1035. Value of minimum allotment.

Sec. 1036. Benefits on recertification.

Sec. 1037. Optional combined allotment for expedited households.

Sec. 1038. Failure to comply with other means-tested public assistance programs.

Sec. 1039. Allotments for households residing in centers.

Sec. 1040. Condition precedent for approval of retail food stores and wholesale

food concerns.

Sec. 1041. Authority to establish authorization periods.

Sec. 1042. Information for verifying eligibility for authorization.

Sec. 1043. Waiting period for stores that fail to meet authorization criteria.

Sec. 1044. Operation of food stamp offices.

Sec. 1045. State employee and training standards.

Sec. 1046. Exchange of law enforcement information.

Sec. 1047. Expedited coupon service.

Sec. 1048. Withdrawing fair hearing requests.

Sec. 1049. Income, eligibility, and immigration status verification systems.

Sec. 1050. Disqualification of retailers who intentionally submit falsified applications.

Sec. 1051. Disqualification of retailers who are disqualified under the WIC program.

Sec. 1052. Collection of overissuances.

Sec. 1053. Authority to suspend stores violating program requirements pending

administrative and judicial review.

Sec. 1054. Expanded criminal forfeiture for violations.

Sec. 1055. Limitation of Federal match.

Sec. 1056. Standards for administration.

Sec. 1057. Work supplementation or support program.

Sec. 1058. Waiver authority.

Sec. 1059. Response to waivers.

Sec. 1060. Employment initiatives program.

Sec. 1061. Reauthorization.

Sec. 1062. Simplified food stamp program.

Sec. 1063. State food assistance block grant.

Sec. 1064. A study of the use of food stamps to purchase vitamins and minerals.

Sec. 1065. Investigations.

Sec. 1066. Food stamp eligibility.

Sec. 1067. Report by the Secretary.

Sec. 1068. Deficit reduction.

Subtitle B—Commodity Distribution Programs

Sec. 1071. Emergency food assistance program.

Sec. 1072. Food bank demonstration project.

Sec. 1073. Hunger prevention programs.

Sec. 1074. Report on entitlement commodity processing.

Subtitle C—Electronic Benefit Transfer Systems

Sec. 1091. Provisions to encourage electronic benefit transfer systems.
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1 Subtitle A—Food Stamp Program

2 SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

3 Section 3(c) of the Food Stamp Act of 1977 (7

4 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro5 vided’’ and all that follows and inserting the following:

6 ‘‘The certification period shall not exceed 12 months, ex7 cept that the certification period may be up to 24 months

8 if all adult household members are elderly or disabled. A

9 State agency shall have at least 1 contact with each cer10 tified household every 12 months.’’.

11 SEC. 1012. DEFINITION OF COUPON.

12 Section 3(d) of the Food Stamp Act of 1977 (7

13 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi14 cate’’ and inserting ‘‘type of certificate, authorization

15 card, cash or check issued in lieu of a coupon, or an access

16 device, including an electronic benefit transfer card or per17 sonal identification number,’’.

18 SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

19 The second sentence of section 3(i) of the Food

20 Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by

21 striking ‘‘(who are not themselves parents living with their

22 children or married and living with their spouses)’’.
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1 SEC. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPA2 RATE HOUSEHOLD DETERMINATIONS.

3 Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.

4 2012(i)) is amended by inserting after the third sentence

5 the following: ‘‘Notwithstanding the preceding sentences,

6 a State may establish criteria that prescribe when individ7 uals who live together, and who would be allowed to par8 ticipate as separate households under the preceding sen9 tences, shall be considered a single household, without re10 gard to the common purchase of food and preparation of

11 meals.’’.

12 SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

13 The second sentence of section 3(o) of the Food

14 Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—

15 (1) by striking ‘‘shall (1) make’’ and inserting

16 the following: ‘‘shall—

17 ‘‘(1) make’’;

18 (2) by striking ‘‘scale, (2) make’’ and inserting

19 ‘‘scale;

20 ‘‘(2) make’’;

21 (3) by striking ‘‘Alaska, (3) make’’ and insert22 ing the following: ‘‘Alaska;

23 ‘‘(3) make’’; and

24 (4) by striking ‘‘Columbia, (4) through’’ and all

25 that follows through the end of the subsection and

26 inserting the following: ‘‘Columbia; and
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1 ‘‘(4) on October 1, 1996, and each October 1

2 thereafter, adjust the cost of the diet to reflect the

3 cost of the diet, in the preceding June, and round

4 the result to the nearest lower dollar increment for

5 each household size, except that on October 1, 1996,

6 the Secretary may not reduce the cost of the diet

7 in effect on September 30, 1996.’’.

8 SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

9 Section 3(s)(2)(C) of the Food Stamp Act of 1977

10 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

11 more than 90 days’’ after ‘‘temporary accommodation’’.

12 SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

13 Section 5(b) of the Food Stamp Act of 1977 (7

14 U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec15 retary’’ and inserting the following:

16 ‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise

17 provided in this Act, the Secretary’’.

18 SEC. 1018. EARNINGS OF STUDENTS.

19 Section 5(d)(7) of the Food Stamp Act of 1977 (7

20 U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and in21 serting ‘‘19’’.

22 SEC. 1019. ENERGY ASSISTANCE.

23 (a) IN GENERAL.—Section 5(d) of the Food Stamp

24 Act of 1977 (7 U.S.C. 2014(d)) is amended by striking

25 paragraph (11) and inserting the following: ‘‘(11) a 1-time
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1 payment or allowance made under a Federal or State law

2 for the costs of weatherization or emergency repair or re3 placement of an unsafe or inoperative furnace or other

4 heating or cooling device,’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) Section 5(k) of the Act (7 U.S.C. 2014(k))

7 is amended—

8 (A) in paragraph (1)—

9 (i) in subparagraph (A), by striking

10 ‘‘plan for aid to families with dependent

11 children approved’’ and inserting ‘‘program

12 funded’’; and

13 (ii) in subparagraph (B), by striking

14 ‘‘, not including energy or utility-cost as15 sistance,’’;

16 (B) in paragraph (2), by striking subpara17 graph (C) and inserting the following:

18 ‘‘(C) a payment or allowance described in sub19 section (d)(11);’’; and

20 (C) by adding at the end the following:

21 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY22 MENTS.—

23 ‘‘(A) ENERGY ASSISTANCE PAYMENTS.—

24 For purposes of subsection (d)(1), a payment

25 made under a Federal or State law to provide
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1 energy assistance to a household shall be con2 sidered money payable directly to the house3 hold.

4 ‘‘(B) ENERGY ASSISTANCE EXPENSES.—

5 For purposes of subsection (e)(7), an expense

6 paid on behalf of a household under a Federal

7 or State law to provide energy assistance shall

8 be considered an out-of-pocket expense incurred

9 and paid by the household.’’.

10 (2) Section 2605(f) of the Low-Income Home

11 Energy Assistance Act of 1981 (42 U.S.C. 8624(f))

12 is amended—

13 (A) by striking ‘‘(f)(1) Notwithstanding’’

14 and inserting ‘‘(f) Notwithstanding’’;

15 (B) in paragraph (1), by striking ‘‘food

16 stamps,’’; and

17 (C) by striking paragraph (2).

18 SEC. 1020. DEDUCTIONS FROM INCOME.

19 (a) IN GENERAL.—Section 5 of the Food Stamp Act

20 of 1977 (7 U.S.C. 2014) is amended by striking sub21 section (e) and inserting the following:

22 ‘‘(e) DEDUCTIONS FROM INCOME.—

23 ‘‘(1) STANDARD DEDUCTION.—The Secretary

24 shall allow a standard deduction for each household

25 in the 48 contiguous States and the District of Co-
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1 lumbia, Alaska, Hawaii, Guam, and the Virgin Is2 lands of the United States of $134, $229, $189,

3 $269, and $118, respectively.

4 ‘‘(2) EARNED INCOME DEDUCTION.—

5 ‘‘(A) DEFINITION OF EARNED INCOME.—

6 In this paragraph, the term ‘earned income’

7 does not include income excluded by subsection

8 (d) or any portion of income earned under a

9 work supplementation or support program, as

10 defined under section 16(b), that is attributable

11 to public assistance.

12 ‘‘(B) DEDUCTION.—Except as provided in

13 subparagraph (C), a household with earned in14 come shall be allowed a deduction of 20 percent

15 of all earned income to compensate for taxes,

16 other mandatory deductions from salary, and

17 work expenses.

18 ‘‘(C) EXCEPTION.—The deduction de19 scribed in subparagraph (B) shall not be al20 lowed with respect to determining an overissu21 ance due to the failure of a household to report

22 earned income in a timely manner.

23 ‘‘(3) DEPENDENT CARE DEDUCTION.—

24 ‘‘(A) IN GENERAL.—A household shall be

25 entitled, with respect to expenses (other than
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1 excluded expenses described in subparagraph

2 (B)) for dependent care, to a dependent care

3 deduction, the maximum allowable level of

4 which shall be $200 per month for each depend5 ent child under 2 years of age and $175 per

6 month for each other dependent, for the actual

7 cost of payments necessary for the care of a de8 pendent if the care enables a household member

9 to accept or continue employment, or training

10 or education that is preparatory for employ11 ment.

12 ‘‘(B) EXCLUDED EXPENSES.—The ex13 cluded expenses referred to in subparagraph

14 (A) are—

15 ‘‘(i) expenses paid on behalf of the

16 household by a third party;

17 ‘‘(ii) amounts made available and ex18 cluded for the expenses referred to in sub19 paragraph (A) under subsection (d)(3);

20 and

21 ‘‘(iii) expenses that are paid under

22 section 6(d)(4).

23 ‘‘(4) DEDUCTION FOR CHILD SUPPORT PAY24 MENTS.—
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1 ‘‘(A) IN GENERAL.—A household shall be

2 entitled to a deduction for child support pay3 ments made by a household member to or for

4 an individual who is not a member of the

5 household if the household member is legally

6 obligated to make the payments.

7 ‘‘(B) METHODS FOR DETERMINING

8 AMOUNT.—The Secretary may prescribe by reg9 ulation the methods, including calculation on a

10 retrospective basis, that a State agency shall

11 use to determine the amount of the deduction

12 for child support payments.

13 ‘‘(5) HOMELESS SHELTER ALLOWANCE.—A

14 State agency may develop a standard homeless shel15 ter allowance, which shall not exceed $143 per

16 month, for such expenses as may reasonably be ex17 pected to be incurred by households in which all

18 members are homeless individuals but are not receiv19 ing free shelter throughout the month. A State agen20 cy that develops the allowance may use the allow21 ance in determining eligibility and allotments for the

22 households, except that the State agency may pro23 hibit the use of the allowance for households with

24 extremely low shelter costs.

25 ‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
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1 ‘‘(A) IN GENERAL.—A household contain2 ing an elderly or disabled member shall be enti3 tled, with respect to expenses other than ex4 penses paid on behalf of the household by a

5 third party, to an excess medical expense de6 duction for the portion of the actual costs of al7 lowable medical expenses, incurred by the elder8 ly or disabled member, exclusive of special diets,

9 that exceeds $35 per month.

10 ‘‘(B) METHOD OF CLAIMING DEDUC11 TION.—

12 ‘‘(i) IN GENERAL.—A State agency

13 shall offer an eligible household under sub14 paragraph (A) a method of claiming a de15 duction for recurring medical expenses that

16 are initially verified under the excess medi17 cal expense deduction in lieu of submitting

18 information or verification on actual ex19 penses on a monthly basis.

20 ‘‘(ii) METHOD.—The method de21 scribed in clause (i) shall—

22 ‘‘(I) be designed to minimize the

23 burden for the eligible elderly or dis24 abled household member choosing to

25 deduct the recurrent medical expenses
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1 of the member pursuant to the meth2 od;

3 ‘‘(II) rely on reasonable estimates

4 of the expected medical expenses of

5 the member for the certification pe6 riod (including changes that can be

7 reasonably anticipated based on avail8 able information about the medical

9 condition of the member, public or

10 private medical insurance coverage,

11 and the current verified medical ex12 penses incurred by the member); and

13 ‘‘(III) not require further report14 ing or verification of a change in med15 ical expenses if such a change has

16 been anticipated for the certification

17 period.

18 ‘‘(7) EXCESS SHELTER EXPENSE DEDUC19 TION.—

20 ‘‘(A) IN GENERAL.—A household shall be

21 entitled, with respect to expenses other than ex22 penses paid on behalf of the household by a

23 third party, to an excess shelter expense deduc24 tion to the extent that the monthly amount ex25 pended by a household for shelter exceeds an
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1 amount equal to 50 percent of monthly house2 hold income after all other applicable deduc3 tions have been allowed.

4 ‘‘(B) MAXIMUM AMOUNT OF DEDUC5 TION.—In the case of a household that does not

6 contain an elderly or disabled individual, the ex7 cess shelter expense deduction shall not ex8 ceed—

9 ‘‘(i) in the 48 contiguous States and

10 the District of Columbia, $247 per month;

11 and

12 ‘‘(ii) in Alaska, Hawaii, Guam, and

13 the Virgin Islands of the United States,

14 $429, $353, $300, and $182 per month,

15 respectively.

16 ‘‘(C) STANDARD UTILITY ALLOWANCE.—

17 ‘‘(i) IN GENERAL.—In computing the

18 excess shelter expense deduction, a State

19 agency may use a standard utility allow20 ance in accordance with regulations pro21 mulgated by the Secretary, except that a

22 State agency may use an allowance that

23 does not fluctuate within a year to reflect

24 seasonal variations.
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1 ‘‘(ii) RESTRICTIONS ON HEATING AND

2 COOLING EXPENSES.—An allowance for a

3 heating or cooling expense may not be used

4 in the case of a household that—

5 ‘‘(I) does not incur a heating or

6 cooling expense, as the case may be;

7 ‘‘(II) does incur a heating or

8 cooling expense but is located in a

9 public housing unit that has central

10 utility meters and charges households,

11 with regard to the expense, only for

12 excess utility costs; or

13 ‘‘(III) shares the expense with,

14 and lives with, another individual not

15 participating in the food stamp pro16 gram, another household participating

17 in the food stamp program, or both,

18 unless the allowance is prorated be19 tween the household and the other in20 dividual, household, or both.

21 ‘‘(iii) MANDATORY ALLOWANCE.—

22 ‘‘(I) IN GENERAL.—A State

23 agency may make the use of a stand24 ard utility allowance mandatory for all
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1 households with qualifying utility

2 costs if—

3 ‘‘(aa) the State agency has

4 developed 1 or more standards

5 that include the cost of heating

6 and cooling and 1 or more stand7 ards that do not include the cost

8 of heating and cooling; and

9 ‘‘(bb) the Secretary finds

10 that the standards will not result

11 in an increased cost to the Sec12 retary.

13 ‘‘(II) HOUSEHOLD ELECTION.—

14 A State agency that has not made the

15 use of a standard utility allowance

16 mandatory under subclause (I) shall

17 allow a household to switch, at the

18 end of a certification period, between

19 the standard utility allowance and a

20 deduction based on the actual utility

21 costs of the household.

22 ‘‘(iv) AVAILABILITY OF ALLOWANCE

23 TO RECIPIENTS OF ENERGY ASSISTANCE.—

24 ‘‘(I) IN GENERAL.—Subject to

25 subclause (II), if a State agency elects
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1 to use a standard utility allowance

2 that reflects heating or cooling costs,

3 the standard utility allowance shall be

4 made available to households receiving

5 a payment, or on behalf of which a

6 payment is made, under the Low-In7 come Home Energy Assistance Act of

8 1981 (42 U.S.C. 8621 et seq.) or

9 other similar energy assistance pro10 gram, if the household still incurs out11 of-pocket heating or cooling expenses

12 in excess of any assistance paid on be13 half of the household to an energy

14 provider.

15 ‘‘(II) SEPARATE ALLOWANCE.—A

16 State agency may use a separate

17 standard utility allowance for house18 holds on behalf of which a payment

19 described in subclause (I) is made,

20 but may not be required to do so.

21 ‘‘(III) STATES NOT ELECTING TO

22 USE SEPARATE ALLOWANCE.—A State

23 agency that does not elect to use a

24 separate allowance but makes a single

25 standard utility allowance available to
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1 households incurring heating or cool2 ing expenses (other than a household

3 described in subclause (I) or (II) of

4 subparagraph (C)(ii)) may not be re5 quired to reduce the allowance due to

6 the provision (directly or indirectly) of

7 assistance under the Low-Income

8 Home Energy Assistance Act of 1981

9 (42 U.S.C. 8621 et seq.).

10 ‘‘(IV) PRORATION OF ASSIST11 ANCE.—For the purpose of the food

12 stamp program, assistance provided

13 under the Low-Income Home Energy

14 Assistance Act of 1981 (42 U.S.C.

15 8621 et seq.) shall be considered to be

16 prorated over the entire heating or

17 cooling season for which the assist18 ance was provided.’’.

19 (b) CONFORMING AMENDMENT.—Section 11(e)(3) of

20 the Act (7 U.S.C. 2020(e)(3)) is amended by striking

21 ‘‘Under rules prescribed’’ and all that follows through

22 ‘‘verifies higher expenses;’’.
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1 SEC. 1021. VEHICLE ALLOWANCE.

2 Section 5(g) of the Food Stamp Act of 1977 (7

3 U.S.C. 2014(g)) is amended by striking paragraph (2) and

4 inserting the following:

5 ‘‘(2) INCLUDED ASSETS.—

6 ‘‘(A) IN GENERAL.—Subject to the other

7 provisions of this paragraph, the Secretary

8 shall, in prescribing inclusions in, and exclu9 sions from, financial resources, follow the regu10 lations in force as of June 1, 1982 (other than

11 those relating to licensed vehicles and inacces12 sible resources).

13 ‘‘(B) ADDITIONAL INCLUDED ASSETS.—

14 The Secretary shall include in financial re15 sources—

16 ‘‘(i) any boat, snowmobile, or airplane

17 used for recreational purposes;

18 ‘‘(ii) any vacation home;

19 ‘‘(iii) any mobile home used primarily

20 for vacation purposes;

21 ‘‘(iv) subject to subparagraph (C), any

22 licensed vehicle that is used for household

23 transportation or to obtain or continue em24 ployment to the extent that the fair market

25 value of the vehicle exceeds $4,600; and
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1 ‘‘(v) any savings or retirement ac2 count (including an individual account), re3 gardless of whether there is a penalty for

4 early withdrawal.

5 ‘‘(C) EXCLUDED VEHICLES.—A vehicle

6 (and any other property, real or personal, to the

7 extent the property is directly related to the

8 maintenance or use of the vehicle) shall not be

9 included in financial resources under this para10 graph if the vehicle is—

11 ‘‘(i) used to produce earned income;

12 ‘‘(ii) necessary for the transportation

13 of a physically disabled household member;

14 or

15 ‘‘(iii) depended on by a household to

16 carry fuel for heating or water for home

17 use and provides the primary source of fuel

18 or water, respectively, for the household.’’.

19 SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUS20 ING COUNTED AS INCOME.

21 Section 5(k)(2) of the Food Stamp Act of 1977 (7

22 U.S.C. 2014(k)(2)) is amended—

23 (1) by striking subparagraph (F); and

24 (2) by redesignating subparagraphs (G) and

25 (H) as subparagraphs (F) and (G), respectively.
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1 SEC. 1023. DOUBLED PENALTIES FOR VIOLATING FOOD

2 STAMP PROGRAM REQUIREMENTS.

3 Section 6(b)(1) of the Food Stamp Act of 1977 (7

4 U.S.C. 2015(b)(1)) is amended—

5 (1) in clause (i), by striking ‘‘six months’’ and

6 inserting ‘‘1 year’’; and

7 (2) in clause (ii), by striking ‘‘1 year’’ and in8 serting ‘‘2 years’’.

9 SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVID10 UALS.

11 Section 6(b)(1)(iii) of the Food Stamp Act of 1977

12 (7 U.S.C. 2015(b)(1)(iii)) is amended—

13 (1) in subclause (II), by striking ‘‘or’’ at the

14 end;

15 (2) in subclause (III), by striking the period at

16 the end and inserting ‘‘; or’’; and

17 (3) by inserting after subclause (III) the follow18 ing:

19 ‘‘(IV) a conviction of an offense under sub20 section (b) or (c) of section 15 involving an

21 item covered by subsection (b) or (c) of section

22 15 having a value of $500 or more.’’.

23 SEC. 1025. DISQUALIFICATION.

24 (a) IN GENERAL.—Section 6(d) of the Food Stamp

25 Act of 1977 (7 U.S.C. 2015(d)) is amended by striking

26 ‘‘(d)(1) Unless otherwise exempted by the provisions’’ and
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1 all that follows through the end of paragraph (1) and in2 serting the following:

3 ‘‘(d) CONDITIONS OF PARTICIPATION.—

4 ‘‘(1) WORK REQUIREMENTS.—

5 ‘‘(A) IN GENERAL.—No physically and

6 mentally fit individual over the age of 15 and

7 under the age of 60 shall be eligible to partici8 pate in the food stamp program if the individ9 ual—

10 ‘‘(i) refuses, at the time of application

11 and every 12 months thereafter, to register

12 for employment in a manner prescribed by

13 the Secretary;

14 ‘‘(ii) refuses without good cause to

15 participate in an employment and training

16 program under paragraph (4), to the ex17 tent required by the State agency;

18 ‘‘(iii) refuses without good cause to

19 accept an offer of employment, at a site or

20 plant not subject to a strike or lockout at

21 the time of the refusal, at a wage not less

22 than the higher of—

23 ‘‘(I) the applicable Federal or

24 State minimum wage; or
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1 ‘‘(II) 80 percent of the wage that

2 would have governed had the mini3 mum hourly rate under section

4 6(a)(1) of the Fair Labor Standards

5 Act of 1938 (29 U.S.C. 206(a)(1))

6 been applicable to the offer of employ7 ment;

8 ‘‘(iv) refuses without good cause to

9 provide a State agency with sufficient in10 formation to allow the State agency to de11 termine the employment status or the job

12 availability of the individual;

13 ‘‘(v) voluntarily and without good

14 cause—

15 ‘‘(I) quits a job; or

16 ‘‘(II) reduces work effort and,

17 after the reduction, the individual is

18 working less than 30 hours per week;

19 or

20 ‘‘(vi) fails to comply with section 20.

21 ‘‘(B) HOUSEHOLD INELIGIBILITY.—If an

22 individual who is the head of a household be23 comes ineligible to participate in the food stamp

24 program under subparagraph (A), the house25 hold shall, at the option of the State agency,
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1 become ineligible to participate in the food

2 stamp program for a period, determined by the

3 State agency, that does not exceed the lesser

4 of—

5 ‘‘(i) the duration of the ineligibility of

6 the individual determined under subpara7 graph (C); or

8 ‘‘(ii) 180 days.

9 ‘‘(C) DURATION OF INELIGIBILITY.—

10 ‘‘(i) FIRST VIOLATION.—The first

11 time that an individual becomes ineligible

12 to participate in the food stamp program

13 under subparagraph (A), the individual

14 shall remain ineligible until the later of—

15 ‘‘(I) the date the individual be16 comes eligible under subparagraph

17 (A);

18 ‘‘(II) the date that is 1 month

19 after the date the individual became

20 ineligible; or

21 ‘‘(III) a date determined by the

22 State agency that is not later than 3

23 months after the date the individual

24 became ineligible.
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1 ‘‘(ii) SECOND VIOLATION.—The sec2 ond time that an individual becomes ineli3 gible to participate in the food stamp pro4 gram under subparagraph (A), the individ5 ual shall remain ineligible until the later

6 of—

7 ‘‘(I) the date the individual be8 comes eligible under subparagraph

9 (A);

10 ‘‘(II) the date that is 3 months

11 after the date the individual became

12 ineligible; or

13 ‘‘(III) a date determined by the

14 State agency that is not later than 6

15 months after the date the individual

16 became ineligible.

17 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA18 TION.—The third or subsequent time that

19 an individual becomes ineligible to partici20 pate in the food stamp program under sub21 paragraph (A), the individual shall remain

22 ineligible until the later of—

23 ‘‘(I) the date the individual be24 comes eligible under subparagraph

25 (A);
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1 ‘‘(II) the date that is 6 months

2 after the date the individual became

3 ineligible;

4 ‘‘(III) a date determined by the

5 State agency; or

6 ‘‘(IV) at the option of the State

7 agency, permanently.

8 ‘‘(D) ADMINISTRATION.—

9 ‘‘(i) GOOD CAUSE.—The Secretary

10 shall determine the meaning of good cause

11 for the purpose of this paragraph.

12 ‘‘(ii) VOLUNTARY QUIT.—The Sec13 retary shall determine the meaning of vol14 untarily quitting and reducing work effort

15 for the purpose of this paragraph.

16 ‘‘(iii) DETERMINATION BY STATE

17 AGENCY.—

18 ‘‘(I) IN GENERAL.—Subject to

19 subclause (II) and clauses (i) and (ii),

20 a State agency shall determine—

21 ‘‘(aa) the meaning of any

22 term in subparagraph (A);

23 ‘‘(bb) the procedures for de24 termining whether an individual

25 is in compliance with a require-
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1 ment under subparagraph (A);

2 and

3 ‘‘(cc) whether an individual

4 is in compliance with a require5 ment under subparagraph (A).

6 ‘‘(II) NOT LESS RESTRICTIVE.—

7 A State agency may not determine a

8 meaning, procedure, or determination

9 under subclause (I) to be less restric10 tive than a comparable meaning, pro11 cedure, or determination under a

12 State program funded under part A of

13 title IV of the Social Security Act (42

14 U.S.C. 601 et seq.).

15 ‘‘(iv) STRIKE AGAINST THE GOVERN16 MENT.—For the purpose of subparagraph

17 (A)(v), an employee of the Federal Govern18 ment, a State, or a political subdivision of

19 a State, who is dismissed for participating

20 in a strike against the Federal Govern21 ment, the State, or the political subdivision

22 of the State shall be considered to have

23 voluntarily quit without good cause.

24 ‘‘(v) SELECTING A HEAD OF HOUSE25 HOLD.—
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1 ‘‘(I) IN GENERAL.—For the pur2 pose of this paragraph, the State

3 agency shall allow the household to se4 lect any adult parent of a child in the

5 household as the head of the house6 hold if all adult household members

7 making application under the food

8 stamp program agree to the selection.

9 ‘‘(II) TIME FOR MAKING DES10 IGNATION.—A household may des11 ignate the head of the household

12 under subclause (I) each time the

13 household is certified for participation

14 in the food stamp program, but may

15 not change the designation during a

16 certification period unless there is a

17 change in the composition of the

18 household.

19 ‘‘(vi) CHANGE IN HEAD OF HOUSE20 HOLD.—If the head of a household leaves

21 the household during a period in which the

22 household is ineligible to participate in the

23 food stamp program under subparagraph

24 (B)—
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1 ‘‘(I) the household shall, if other2 wise eligible, become eligible to par3 ticipate in the food stamp program;

4 and

5 ‘‘(II) if the head of the household

6 becomes the head of another house7 hold, the household that becomes

8 headed by the individual shall become

9 ineligible to participate in the food

10 stamp program for the remaining pe11 riod of ineligibility.’’.

12 (b) CONFORMING AMENDMENT.—

13 (1) The second sentence of section 17(b)(2) of

14 the Act (7 U.S.C. 2026(b)(2)) is amended by strik15 ing ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.

16 (2) Section 20 of the Act (7 U.S.C. 2029) is

17 amended by striking subsection (f) and inserting the

18 following:

19 ‘‘(f) DISQUALIFICATION.—An individual or a house20 hold may become ineligible under section 6(d)(1) to par21 ticipate in the food stamp program for failing to comply

22 with this section.’’.

23 SEC. 1026. CARETAKER EXEMPTION.

24 Section 6(d)(2) of the Food Stamp Act of 1977 (7

25 U.S.C. 2015(d)(2)) is amended by striking subparagraph
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1 (B) and inserting the following: ‘‘(B) a parent or other

2 member of a household with responsibility for the care of

3 (i) a dependent child under the age of 6 or any lower age

4 designated by the State agency that is not under the age

5 of 1, or (ii) an incapacitated person;’’.

6 SEC. 1027. EMPLOYMENT AND TRAINING.

7 (a) IN GENERAL.—Section 6(d)(4) of the Food

8 Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—

9 (1) in subparagraph (A)—

10 (A) by striking ‘‘Not later than April 1,

11 1987, each’’ and inserting ‘‘Each’’;

12 (B) by inserting ‘‘work,’’ after ‘‘skills,

13 training,’’; and

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

15 ‘‘Each component of an employment and train16 ing program carried out under this paragraph

17 shall be delivered through a statewide workforce

18 development system, unless the component is

19 not available locally through the statewide

20 workforce development system.’’;

21 (2) in subparagraph (B)—

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

23 striking the colon at the end and inserting the

24 following: ‘‘, except that the State agency shall

25 retain the option to apply employment require-
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1 ments prescribed under this subparagraph to a

2 program applicant at the time of application:’’;

3 (B) in clause (i), by striking ‘‘with terms

4 and conditions’’ and all that follows through

5 ‘‘time of application’’; and

6 (C) in clause (iv)—

7 (i) by striking subclauses (I) and (II);

8 and

9 (ii) by redesignating subclauses (III)

10 and (IV) as subclauses (I) and (II), respec11 tively;

12 (3) in subparagraph (D)—

13 (A) in clause (i), by striking ‘‘to which the

14 application’’ and all that follows through ‘‘30

15 days or less’’;

16 (B) in clause (ii), by striking ‘‘but with re17 spect’’ and all that follows through ‘‘child

18 care’’; and

19 (C) in clause (iii), by striking ‘‘, on the

20 basis of’’ and all that follows through ‘‘clause

21 (ii)’’ and inserting ‘‘the exemption continues to

22 be valid’’;

23 (4) in subparagraph (E), by striking the third

24 sentence;

25 (5) in subparagraph (G)—
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1 (A) by striking ‘‘(G)(i) The State’’ and in2 serting ‘‘(G) The State’’; and

3 (B) by striking clause (ii);

4 (6) in subparagraph (H), by striking ‘‘(H)(i)

5 The Secretary’’ and all that follows through ‘‘(ii)

6 Federal funds’’ and inserting ‘‘(H) Federal funds’’;

7 (7) in subparagraph (I)(i)(II), by striking ‘‘, or

8 was in operation,’’ and all that follows through ‘‘So9 cial Security Act’’ and inserting the following: ‘‘),

10 except that no such payment or reimbursement shall

11 exceed the applicable local market rate’’;

12 (8)(A) by striking subparagraphs (K) and (L)

13 and inserting the following:

14 ‘‘(K) LIMITATION ON FUNDING.—Notwith15 standing any other provision of this paragraph,

16 the amount of funds a State agency uses to

17 carry out this paragraph (including under sub18 paragraph (I)) for participants who are receiv19 ing benefits under a State program funded

20 under part A of title IV of the Social Security

21 Act (42 U.S.C. 601 et seq.) shall not exceed the

22 amount of funds the State agency used in fiscal

23 year 1995 to carry out this paragraph for par24 ticipants who were receiving benefits in fiscal

25 year 1995 under a State program funded under
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1 part A of title IV of the Act (42 U.S.C. 601 et

2 seq.).’’; and

3 (B) by redesignating subparagraphs (M) and

4 (N) as subparagraphs (L) and (M), respectively; and

5 (9) in subparagraph (L), as redesignated by

6 paragraph (8)(B)—

7 (A) by striking ‘‘(L)(i) The Secretary’’ and

8 inserting ‘‘(L) The Secretary’’; and

9 (B) by striking clause (ii).

10 (b) FUNDING.—Section 16(h) of the Act (7 U.S.C.

11 2025(h)) is amended by striking ‘‘(h)(1)(A) The Sec12 retary’’ and all that follows through the end of paragraph

13 (1) and inserting the following:

14 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING

15 PROGRAMS.—

16 ‘‘(1) IN GENERAL.—

17 ‘‘(A) AMOUNTS.—To carry out employ18 ment and training programs, the Secretary

19 shall reserve for allocation to State agencies

20 from funds made available for each fiscal year

21 under section 18(a)(1) the amount of—

22 ‘‘(i) for fiscal year 1996, $75,000,000;

23 ‘‘(ii) for fiscal year 1997,

24 $79,000,000;
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1 ‘‘(iii) for fiscal year 1998,

2 $81,000,000;

3 ‘‘(iv) for fiscal year 1999,

4 $84,000,000;

5 ‘‘(v) for fiscal year 2000,

6 $86,000,000;

7 ‘‘(vi) for fiscal year 2001,

8 $88,000,000; and

9 ‘‘(vii) for fiscal year 2002,

10 $90,000,000.

11 ‘‘(B) ALLOCATION.—The Secretary shall

12 allocate the amounts reserved under subpara13 graph (A) among the State agencies using a

14 reasonable formula (as determined by the Sec15 retary) that gives consideration to the popu16 lation in each State affected by section 6(o).

17 ‘‘(C) REALLOCATION.—

18 ‘‘(i) NOTIFICATION.—A State agency

19 shall promptly notify the Secretary if the

20 State agency determines that the State

21 agency will not expend all of the funds al22 located to the State agency under subpara23 graph (B).

24 ‘‘(ii) REALLOCATION.—On notification

25 under clause (i), the Secretary shall reallo-
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1 cate the funds that the State agency will

2 not expend as the Secretary considers ap3 propriate and equitable.

4 ‘‘(D) MINIMUM ALLOCATION.—Notwith5 standing subparagraphs (A) through (C), the

6 Secretary shall ensure that each State agency

7 operating an employment and training program

8 shall receive not less than $50,000 in each fis9 cal year.’’.

10 (c) ADDITIONAL MATCHING FUNDS.—Section

11 16(h)(2) of the Act (7 U.S.C. 2025(h)(2)) is amended by

12 inserting before the period at the end the following: ‘‘, in13 cluding the costs for case management and casework to

14 facilitate the transition from economic dependency to self15 sufficiency through work’’.

16 (d) REPORTS.—Section 16(h) of the Act (7 U.S.C.

17 2025(h)) is amended—

18 (1) in paragraph (5)—

19 (A) by striking ‘‘(5)(A) The Secretary’’

20 and inserting ‘‘(5) The Secretary’’; and

21 (B) by striking subparagraph (B); and

22 (2) by striking paragraph (6).
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1 SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICA2 TION.

3 (a) IN GENERAL.—Section 6 of the Food Stamp Act

4 of 1977 (7 U.S.C. 2015) is amended by adding at the end

5 the following:

6 ‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA7 TION.—

8 ‘‘(1) IN GENERAL.—If a disqualification is im9 posed on a member of a household for a failure of

10 the member to perform an action required under a

11 Federal, State, or local law relating to a means-test12 ed public assistance program, the State agency may

13 impose the same disqualification on the member of

14 the household under the food stamp program.

15 ‘‘(2) RULES AND PROCEDURES.—If a disquali16 fication is imposed under paragraph (1) for a failure

17 of an individual to perform an action required under

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

19 U.S.C. 601 et seq.), the State agency may use the

20 rules and procedures that apply under part A of title

21 IV of the Act to impose the same disqualification

22 under the food stamp program.

23 ‘‘(3) APPLICATION AFTER DISQUALIFICATION

24 PERIOD.—A member of a household disqualified

25 under paragraph (1) may, after the disqualification

26 period has expired, apply for benefits under this Act
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1 and shall be treated as a new applicant, except that

2 a prior disqualification under subsection (d) shall be

3 considered in determining eligibility.’’.

4 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

5 Act (7 U.S.C. 2020(e)) is amended—

6 (1) in paragraph (24), by striking ‘‘and’’ at the

7 end;

8 (2) in paragraph (25), by striking the period at

9 the end and inserting a semicolon; and

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

11 ‘‘(26) the guidelines the State agency uses in

12 carrying out section 6(i); and’’.

13 (c) CONFORMING AMENDMENT.—Section 6(d)(2)(A)

14 of the Act (7 U.S.C. 2015(d)(2)(A)) is amended by strik15 ing ‘‘that is comparable to a requirement of paragraph

16 (1)’’.

17 SEC. 1029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE

18 FOOD STAMP BENEFITS.

19 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

20 2015), as amended by section 1028, is amended by adding

21 at the end the following:

22 ‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE

23 FOOD STAMP BENEFITS.—An individual shall be ineligible

24 to participate in the food stamp program as a member

25 of any household for a 10-year period if the individual is
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1 found by a State agency to have made, or is convicted

2 in a Federal or State court of having made, a fraudulent

3 statement or representation with respect to the identity

4 or place of residence of the individual in order to receive

5 multiple benefits simultaneously under the food stamp

6 program.’’.

7 SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

8 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

9 2015), as amended by sections 1028 and 1029, is amend10 ed by adding at the end the following:

11 ‘‘(k) DISQUALIFICATION OF FLEEING FELONS.—No

12 member of a household who is otherwise eligible to partici13 pate in the food stamp program shall be eligible to partici14 pate in the program as a member of that or any other

15 household during any period during which the individual

16 is—

17 ‘‘(1) fleeing to avoid prosecution, or custody or

18 confinement after conviction, under the law of the

19 place from which the individual is fleeing, for a

20 crime, or attempt to commit a crime, that is a felony

21 under the law of the place from which the individual

22 is fleeing or that, in the case of New Jersey, is a

23 high misdemeanor under the law of New Jersey; or

24 ‘‘(2) violating a condition of probation or parole

25 imposed under a Federal or State law.’’.
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1 SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

2 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

3 2015), as amended by sections 1028 through 1030, is

4 amended by adding at the end the following:

5 ‘‘(l) CUSTODIAL PARENT’S COOPERATION WITH

6 CHILD SUPPORT AGENCIES.—

7 ‘‘(1) IN GENERAL.—At the option of a State

8 agency, subject to paragraphs (2) and (3), no natu9 ral or adoptive parent or other individual (collec10 tively referred to in this subsection as ‘the individ11 ual’) who is living with and exercising parental con12 trol over a child under the age of 18 who has an ab13 sent parent shall be eligible to participate in the food

14 stamp program unless the individual cooperates with

15 the State agency administering the program estab16 lished under part D of title IV of the Social Security

17 Act (42 U.S.C. 651 et seq.)—

18 ‘‘(A) in establishing the paternity of the

19 child (if the child is born out of wedlock); and

20 ‘‘(B) in obtaining support for—

21 ‘‘(i) the child; or

22 ‘‘(ii) the individual and the child.

23 ‘‘(2) GOOD CAUSE FOR NONCOOPERATION.—

24 Paragraph (1) shall not apply to the individual if

25 good cause is found for refusing to cooperate, as de26 termined by the State agency in accordance with
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1 standards prescribed by the Secretary in consulta2 tion with the Secretary of Health and Human Serv3 ices. The standards shall take into consideration cir4 cumstances under which cooperation may be against

5 the best interests of the child.

6 ‘‘(3) FEES.—Paragraph (1) shall not require

7 the payment of a fee or other cost for services pro8 vided under part D of title IV of the Social Security

9 Act (42 U.S.C. 651 et seq.).

10 ‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH

11 CHILD SUPPORT AGENCIES.—

12 ‘‘(1) IN GENERAL.—At the option of a State

13 agency, subject to paragraphs (2) and (3), a puta14 tive or identified noncustodial parent of a child

15 under the age of 18 (referred to in this subsection

16 as ‘the individual’) shall not be eligible to participate

17 in the food stamp program if the individual refuses

18 to cooperate with the State agency administering the

19 program established under part D of title IV of the

20 Social Security Act (42 U.S.C. 651 et seq.)—

21 ‘‘(A) in establishing the paternity of the

22 child (if the child is born out of wedlock); and

23 ‘‘(B) in providing support for the child.

24 ‘‘(2) REFUSAL TO COOPERATE.—
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1 ‘‘(A) GUIDELINES.—The Secretary, in con2 sultation with the Secretary of Health and

3 Human Services, shall develop guidelines on

4 what constitutes a refusal to cooperate under

5 paragraph (1).

6 ‘‘(B) PROCEDURES.—The State agency

7 shall develop procedures, using guidelines devel8 oped under subparagraph (A), for determining

9 whether an individual is refusing to cooperate

10 under paragraph (1).

11 ‘‘(3) FEES.—Paragraph (1) shall not require

12 the payment of a fee or other cost for services pro13 vided under part D of title IV of the Social Security

14 Act (42 U.S.C. 651 et seq.).

15 ‘‘(4) PRIVACY.—The State agency shall provide

16 safeguards to restrict the use of information col17 lected by a State agency administering the program

18 established under part D of title IV of the Social Se19 curity Act (42 U.S.C. 651 et seq.) to purposes for

20 which the information is collected.’’.

21 SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUP22 PORT ARREARS.

23 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

24 2015), as amended by sections 1028 through 1031, is

25 amended by adding at the end the following:
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1 ‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT AR2 REARS.—

3 ‘‘(1) IN GENERAL.—At the option of the State

4 agency, no individual shall be eligible to participate

5 in the food stamp program as a member of any

6 household during any month that the individual is

7 delinquent in any payment due under a court order

8 for the support of a child of the individual.

9 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not

10 apply if—

11 ‘‘(A) a court is allowing the individual to

12 delay payment; or

13 ‘‘(B) the individual is complying with a

14 payment plan approved by a court or the State

15 agency designated under part D of title IV of

16 the Social Security Act (42 U.S.C. 651 et seq.)

17 to provide support for the child of the individ18 ual.’’.

19 SEC. 1033. WORK REQUIREMENT.

20 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

21 2015), as amended by sections 1028 through 1032, is

22 amended by adding at the end the following:

23 ‘‘(o) WORK REQUIREMENT.—

24 ‘‘(1) DEFINITION OF WORK PROGRAM.—In this

25 subsection, the term ‘work program’ means—
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1 ‘‘(A) a program under the Job Training

2 Partnership Act (29 U.S.C. 1501 et seq.);

3 ‘‘(B) a program under section 236 of the

4 Trade Act of 1974 (19 U.S.C. 2296); or

5 ‘‘(C) a program of employment and train6 ing operated or supervised by a State or politi7 cal subdivision of a State that meets standards

8 approved by the Governor of the State, includ9 ing a program under section 6(d)(4), other than

10 a job search program or a job search training

11 program.

12 ‘‘(2) WORK REQUIREMENT.—Subject to the

13 other provisions of this subsection, no individual

14 shall be eligible to participate in the food stamp pro15 gram as a member of any household if the individual

16 received after the effective date of this subsection

17 food stamp benefits for not less than 3 months dur18 ing which the individual did not—

19 ‘‘(A) work 20 hours or more per week,

20 averaged monthly; or

21 ‘‘(B) participate in and comply with the re22 quirements of a work program for 20 hours or

23 more per week, as determined by the State

24 agency; or
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1 ‘‘(C) participate in a program under sec2 tion 20 or a comparable program established by

3 a State or political subdivision of a State.

4 ‘‘(3) EXCEPTION.—Paragraph (2) shall not

5 apply to an individual if the individual is—

6 ‘‘(A) under 18 or over 50 years of age;

7 ‘‘(B) medically certified as physically or

8 mentally unfit for employment;

9 ‘‘(C) a parent or other member of a house10 hold with responsibility for a dependent child;

11 ‘‘(D) otherwise exempt under section

12 6(d)(2); or

13 ‘‘(E) a pregnant woman.

14 ‘‘(4) WAIVER.—

15 ‘‘(A) IN GENERAL.—On the request of a

16 State agency, the Secretary may waive the ap17 plicability of paragraph (2) to any group of in18 dividuals in the State if the Secretary makes a

19 determination that the area in which the indi20 viduals reside—

21 ‘‘(i) has an unemployment rate of over

22 10 percent; or

23 ‘‘(ii) does not have a sufficient num24 ber of jobs to provide employment for the

25 individuals.
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1 ‘‘(B) REPORT.—The Secretary shall report

2 the basis for a waiver under subparagraph (A)

3 to the Committee on Agriculture of the House

4 of Representatives and the Committee on Agri5 culture, Nutrition, and Forestry of the Senate.

6 ‘‘(5) SUBSEQUENT ELIGIBILITY.—Paragraph

7 (2) shall cease to apply to an individual if, during

8 a 30-day period, the individual—

9 ‘‘(A) works 80 or more hours;

10 ‘‘(B) participates in and complies with the

11 requirements of a work program for 80 or more

12 hours, as determined by a State agency; or

13 ‘‘(C) participates in a program under sec14 tion 20 or a comparable program established by

15 a State or political subdivision of a State.

16 SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

17 SYSTEMS.

18 (a) IN GENERAL.—Section 7(i) of the Food Stamp

19 Act of 1977 (7 U.S.C. 2016(i)) is amended—

20 (1) by striking paragraph (1) and inserting the

21 following:

22 ‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—

23 ‘‘(A) IMPLEMENTATION.—Each State

24 agency shall implement an electronic benefit

25 transfer system in which household benefits de-
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1 termined under section 8(a) or 26 are issued

2 from and stored in a central databank before

3 October 1, 2002, unless the Secretary provides

4 a waiver for a State agency that faces unusual

5 barriers to implementing an electronic benefit

6 transfer system.

7 ‘‘(B) TIMELY IMPLEMENTATION.—State

8 agencies are encouraged to implement an elec9 tronic benefit transfer system under subpara10 graph (A) as soon as practicable.

11 ‘‘(C) STATE FLEXIBILITY.—Subject to

12 paragraph (2), a State agency may procure and

13 implement an electronic benefit transfer system

14 under the terms, conditions, and design that

15 the State agency considers appropriate.

16 ‘‘(D) OPERATION.—An electronic benefit

17 transfer system should take into account gen18 erally accepted standard operating rules based

19 on—

20 ‘‘(i) commercial electronic funds

21 transfer technology;

22 ‘‘(ii) the need to permit interstate op23 eration and law enforcement monitoring;

24 and
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1 ‘‘(iii) the need to permit monitoring

2 and investigations by authorized law en3 forcement agencies.’’;

4 (2) in paragraph (2)—

5 (A) by striking ‘‘effective no later than

6 April 1, 1992,’’;

7 (B) in subparagraph (A)—

8 (i) by striking ‘‘, in any 1 year,’’; and

9 (ii) by striking ‘‘on-line’’;

10 (C) by striking subparagraph (D) and in11 serting the following:

12 ‘‘(D)(i) measures to maximize the security of a

13 system using the most recent technology available

14 that the State agency considers appropriate and cost

15 effective and which may include personal identifica16 tion numbers, photographic identification on elec17 tronic benefit transfer cards, and other measures to

18 protect against fraud and abuse; and

19 ‘‘(ii) effective not later than 2 years after the

20 effective date of this clause, to the extent prac21 ticable, measures that permit a system to differen22 tiate items of food that may be acquired with an al23 lotment from items of food that may not be acquired

24 with an allotment.’’;
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1 (D) in subparagraph (G), by striking

2 ‘‘and’’ at the end;

3 (E) in subparagraph (H), by striking the

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

5 (F) by adding at the end the following:

6 ‘‘(I) procurement standards.’’; and

7 (3) by adding at the end the following:

8 ‘‘(7) REPLACEMENT OF BENEFITS.—Regula9 tions issued by the Secretary regarding the replace10 ment of benefits and liability for replacement of ben11 efits under an electronic benefit transfer system

12 shall be similar to the regulations in effect for a

13 paper food stamp issuance system.

14 ‘‘(8) REPLACEMENT CARD FEE.—A State agen15 cy may collect a charge for replacement of an elec16 tronic benefit transfer card by reducing the monthly

17 allotment of the household receiving the replacement

18 card.

19 ‘‘(9) OPTIONAL PHOTOGRAPHIC IDENTIFICA20 TION.—

21 ‘‘(A) IN GENERAL.—A State agency may

22 require that an electronic benefit card contain

23 a photograph of 1 or more members of a house24 hold.
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1 ‘‘(B) OTHER AUTHORIZED USERS.—If a

2 State agency requires a photograph on an elec3 tronic benefit card under subparagraph (A), the

4 State agency shall establish procedures to en5 sure that any other appropriate member of the

6 household or any authorized representative of

7 the household may utilize the card.

8 ‘‘(10) APPLICATION OF ANTI-TYING RESTRIC9 TIONS TO ELECTRONIC BENEFIT TRANSFER SYS10 TEMS.—

11 ‘‘(A) IN GENERAL.—A company shall not

12 sell or provide electronic benefit transfer serv13 ices, or fix or vary the consideration for such

14 services, on the condition or requirement that

15 the customer—

16 ‘‘(i) obtain some additional point-of17 sale service from the company or any affili18 ate of the company; or

19 ‘‘(ii) not obtain some additional point20 of-sale service from a competitor of the

21 company or competitor of any affiliate of

22 the company.

23 ‘‘(B) DEFINITIONS.—In this paragraph—
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1 ‘‘(i) AFFILIATE.—The term ‘affiliate’

2 shall have the same meaning as in section

3 2(k) of the Bank Holding Company Act.

4 ‘‘(ii) COMPANY.—The term ‘company’

5 shall have the same meaning as in section

6 106(a) of the Bank Holding Company Act

7 Amendments of 1970, but shall not include

8 a bank, bank holding company, or any sub9 sidiary of a bank holding company.

10 ‘‘(iii) ELECTRONIC BENEFIT TRANS11 FER SERVICE.—The term ‘electronic bene12 fit transfer service’ means the processing

13 of electronic transfers of household bene14 fits determined under section 8(a) or 26

15 where the benefits are—

16 ‘‘(I) issued from and stored in a

17 central databank;

18 ‘‘(II) electronically accessed by

19 household members at the point of

20 sale; and

21 ‘‘(III) provided by a Federal or

22 state government.

23 ‘‘(iv) POINT-OF-SALE SERVICE.—The

24 term ‘point-of-sale service’ means any

25 product or service related to the electronic
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1 authorization and processing of payments

2 for merchandise at a retail food store, in3 cluding but not limited to credit or debit

4 card services, automated teller machines,

5 point-of-sale terminals, or access to on-line

6 systems.

7 ‘‘(C) CONSULTATION WITH THE FEDERAL

8 RESERVE BOARD.—Before promulgating regula9 tions or interpretations of regulations to carry

10 out this paragraph, the Secretary shall consult

11 with the Board of Governors of the Federal Re12 serve System.’’.

13 (b) SENSE OF CONGRESS.—It is the sense of Con14 gress that a State that operates an electronic benefit

15 transfer system under the Food Stamp Act of 1977 (7

16 U.S.C. 2011 et seq.) should operate the system in a man17 ner that is compatible with electronic benefit transfer sys18 tems operated by other States.

19 SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

20 The proviso in section 8(a) of the Food Stamp Act

21 of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and

22 shall be adjusted’’ and all that follows through ‘‘$5’’.
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1 SEC. 1036. BENEFITS ON RECERTIFICATION.

2 Section 8(c)(2)(B) of the Food Stamp Act of 1977

3 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

4 than one month’’.

5 SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPE6 DITED HOUSEHOLDS.

7 Section 8(c) of the Food Stamp Act of 1977 (7

8 U.S.C. 2017(c)) is amended by striking paragraph (3) and

9 inserting the following:

10 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR

11 EXPEDITED HOUSEHOLDS.—A State agency may

12 provide to an eligible household applying after the

13 15th day of a month, in lieu of the initial allotment

14 of the household and the regular allotment of the

15 household for the following month, an allotment that

16 is equal to the total amount of the initial allotment

17 and the first regular allotment. The allotment shall

18 be provided in accordance with section 11(e)(3) in

19 the case of a household that is not entitled to expe20 dited service and in accordance with paragraphs (3)

21 and (9) of section 11(e) in the case of a household

22 that is entitled to expedited service.’’.
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1 SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS2 TESTED PUBLIC ASSISTANCE PROGRAMS.

3 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

4 2017) is amended by striking subsection (d) and inserting

5 the following:

6 ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENE7 FITS.—

8 ‘‘(1) IN GENERAL.—If the benefits of a house9 hold are reduced under a Federal, State, or local law

10 relating to a means-tested public assistance program

11 for the failure of a member of the household to per12 form an action required under the law or program,

13 for the duration of the reduction—

14 ‘‘(A) the household may not receive an in15 creased allotment as the result of a decrease in

16 the income of the household to the extent that

17 the decrease is the result of the reduction; and

18 ‘‘(B) the State agency may reduce the al19 lotment of the household by not more than 25

20 percent.

21 ‘‘(2) RULES AND PROCEDURES.—If the allot22 ment of a household is reduced under this subsection

23 for a failure to perform an action required under

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

25 U.S.C. 601 et seq.), the State agency may use the

26 rules and procedures that apply under part A of title
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1 IV of the Act to reduce the allotment under the food

2 stamp program.’’.

3 SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

4 CENTERS.

5 Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

6 2017) is amended by adding at the end the following:

7 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

8 CENTERS.—

9 ‘‘(1) IN GENERAL.—In the case of an individual

10 who resides in a center for the purpose of a drug or

11 alcoholic treatment program described in the last

12 sentence of section 3(i), a State agency may provide

13 an allotment for the individual to—

14 ‘‘(A) the center as an authorized represent15 ative of the individual for a period that is less

16 than 1 month; and

17 ‘‘(B) the individual, if the individual leaves

18 the center.

19 ‘‘(2) DIRECT PAYMENT.—A State agency may

20 require an individual referred to in paragraph (1) to

21 designate the center in which the individual resides

22 as the authorized representative of the individual for

23 the purpose of receiving an allotment.’’.
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1 SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RE2 TAIL FOOD STORES AND WHOLESALE FOOD

3 CONCERNS.

4 Section 9(a)(1) of the Food Stamp Act of 1977 (7

5 U.S.C. 2018(a)(1)) is amended by adding at the end the

6 following: ‘‘No retail food store or wholesale food concern

7 of a type determined by the Secretary, based on factors

8 that include size, location, and type of items sold, shall

9 be approved to be authorized or reauthorized for participa10 tion in the food stamp program unless an authorized em11 ployee of the Department of Agriculture, a designee of the

12 Secretary, or, if practicable, an official of the State or local

13 government designated by the Secretary has visited the

14 store or concern for the purpose of determining whether

15 the store or concern should be approved or reauthorized,

16 as appropriate.’’.

17 SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PE18 RIODS.

19 Section 9(a) of the Food Stamp Act of 1977 (7

20 U.S.C. 2018(a)) is amended by adding at the end the fol21 lowing:

22 ‘‘(3) AUTHORIZATION PERIODS.—The Secretary

23 shall establish specific time periods during which au24 thorization to accept and redeem coupons, or to re25 deem benefits through an electronic benefit transfer
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1 system, shall be valid under the food stamp pro2 gram.’’.

3 SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR

4 AUTHORIZATION.

5 Section 9(c) of the Food Stamp Act of 1977 (7

6 U.S.C. 2018(c)) is amended—

7 (1) in the first sentence, by inserting ‘‘, which

8 may include relevant income and sales tax filing doc9 uments,’’ after ‘‘submit information’’; and

10 (2) by inserting after the first sentence the fol11 lowing: ‘‘The regulations may require retail food

12 stores and wholesale food concerns to provide writ13 ten authorization for the Secretary to verify all rel14 evant tax filings with appropriate agencies and to

15 obtain corroborating documentation from other

16 sources so that the accuracy of information provided

17 by the stores and concerns may be verified.’’.

18 SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO

19 MEET AUTHORIZATION CRITERIA.

20 Section 9(d) of the Food Stamp Act of 1977 (7

21 U.S.C. 2018(d)) is amended by adding at the end the fol22 lowing: ‘‘A retail food store or wholesale food concern that

23 is denied approval to accept and redeem coupons because

24 the store or concern does not meet criteria for approval

25 established by the Secretary may not, for at least 6
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1 months, submit a new application to participate in the

2 program. The Secretary may establish a longer time pe3 riod under the preceding sentence, including permanent

4 disqualification, that reflects the severity of the basis of

5 the denial.’’.

6 SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

7 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

8 2020), as amended by sections 1020(b) and 1028(b), is

9 amended—

10 (1) in subsection (e)—

11 (A) by striking paragraph (2) and insert12 ing the following:

13 ‘‘(2)(A) that the State agency shall establish

14 procedures governing the operation of food stamp of15 fices that the State agency determines best serve

16 households in the State, including households with

17 special needs, such as households with elderly or dis18 abled members, households in rural areas with low19 income members, homeless individuals, households

20 residing on reservations, and households in areas in

21 which a substantial number of members of low-in22 come households speak a language other than Eng23 lish;

24 ‘‘(B) that in carrying out subparagraph (A), a

25 State agency—
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1 ‘‘(i) shall provide timely, accurate, and fair

2 service to applicants for, and participants in,

3 the food stamp program;

4 ‘‘(ii) shall develop an application contain5 ing the information necessary to comply with

6 this Act;

7 ‘‘(iii) shall permit an applicant household

8 to apply to participate in the program on the

9 same day that the household first contacts a

10 food stamp office in person during office hours;

11 ‘‘(iv) shall consider an application that

12 contains the name, address, and signature of

13 the applicant to be filed on the date the appli14 cant submits the application;

15 ‘‘(v) shall require that an adult representa16 tive of each applicant household certify in writ17 ing, under penalty of perjury, that—

18 ‘‘(I) the information contained in the

19 application is true; and

20 ‘‘(II) all members of the household

21 are citizens or are aliens eligible to receive

22 food stamps under section 6(f);

23 ‘‘(vi) shall provide a method of certifying

24 and issuing coupons to eligible homeless individ25 uals, to ensure that participation in the food
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1 stamp program is limited to eligible households;

2 and

3 ‘‘(vii) may establish operating procedures

4 that vary for local food stamp offices to reflect

5 regional and local differences within the State;

6 ‘‘(C) that nothing in this Act shall prohibit the

7 use of signatures provided and maintained electroni8 cally, storage of records using automated retrieval

9 systems only, or any other feature of a State agen10 cy’s application system that does not rely exclusively

11 on the collection and retention of paper applications

12 or other records;

13 ‘‘(D) that the signature of any adult under this

14 paragraph shall be considered sufficient to comply

15 with any provision of Federal law requiring a house16 hold member to sign an application or statement;’’;

17 (B) in paragraph (3), as amended by sec18 tion 1020(b)—

19 (i) by striking ‘‘shall—’’ and all that

20 follows through ‘‘provide each’’ and insert21 ing ‘‘shall provide each’’; and

22 (ii) by striking ‘‘(B) assist’’ and all

23 that follows through ‘‘representative of the

24 State agency;’’;

25 (C) by striking paragraphs (14) and (25);
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1 (D)(i) by redesignating paragraphs (15)

2 through (24) as paragraphs (14) through (23),

3 respectively; and

4 (ii) by redesignating paragraph (26), as

5 added by section 1028(b), as paragraph (24);

6 and

7 (2) in subsection (i)—

8 (A) by striking ‘‘(i) Notwithstanding’’ and

9 all that follows through ‘‘(2)’’ and inserting the

10 following:

11 ‘‘(i) APPLICATION AND DENIAL PROCEDURES.—

12 ‘‘(1) APPLICATION PROCEDURES.—Notwith13 standing any other provision of law,’’; 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) DENIAL AND TERMINATION.—Other than

19 in a case of disqualification as a penalty for failure

20 to comply with a public assistance program rule or

21 regulation, no’’.

22 SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

23 Section 11(e)(6) of the Food Stamp Act of 1977 (7

24 U.S.C. 2020(e)(6)) is amended—
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1 (1) by striking ‘‘that (A) the’’ and inserting

2 ‘‘that—

3 ‘‘(A) the’’;

4 (2) by striking ‘‘Act; (B) the’’ and inserting

5 ‘‘Act; and

6 ‘‘(B) the’’;

7 (3) in subparagraph (B), by striking ‘‘United

8 States Civil Service Commission’’ and inserting ‘‘Of9 fice of Personnel Management’’; and

10 (4) by striking subparagraphs (C) through (E).

11 SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMA12 TION.

13 Section 11(e)(8) of the Food Stamp Act of 1977 (7

14 U.S.C. 2020(e)(8)) is amended—

15 (1) by striking ‘‘that (A) such’’ and inserting

16 the following: ‘‘that—

17 ‘‘(A) the’’;

18 (2) by striking ‘‘law, (B) notwithstanding’’ and

19 inserting the following: ‘‘law;

20 ‘‘(B) notwithstanding’’;

21 (3) by striking ‘‘Act, and (C) such’’ and insert22 ing the following: ‘‘Act;

23 ‘‘(C) the’’; and

24 (4) by adding at the end the following:
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1 ‘‘(D) notwithstanding any other provision

2 of law, the address, social security number, and,

3 if available, photograph of any member of a

4 household shall be made available, on request,

5 to any Federal, State, or local law enforcement

6 officer if the officer furnishes the State agency

7 with the name of the member and notifies the

8 agency that—

9 ‘‘(i) the member—

10 ‘‘(I) is fleeing to avoid prosecu11 tion, or custody or confinement after

12 conviction, for a crime (or attempt to

13 commit a crime) that, under the law

14 of the place the member is fleeing, is

15 a felony (or, in the case of New Jer16 sey, a high misdemeanor), or is violat17 ing a condition of probation or parole

18 imposed under Federal or State law;

19 or

20 ‘‘(II) has information that is nec21 essary for the officer to conduct an of22 ficial duty related to subclause (I);

23 ‘‘(ii) locating or apprehending the

24 member is an official duty; and
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1 ‘‘(iii) the request is being made in the

2 proper exercise of an official duty; and

3 ‘‘(E) the safeguards shall not prevent com4 pliance with paragraph (16);’’.

5 SEC. 1047. EXPEDITED COUPON SERVICE.

6 Section 11(e)(9) of the Food Stamp Act of 1977 (7

7 U.S.C. 2020(e)(9)) is amended—

8 (1) in subparagraph (A)—

9 (A) by striking ‘‘five days’’ and inserting

10 ‘‘7 days’’; and

11 (B) by inserting ‘‘and’’ at the end;

12 (2) by striking subparagraphs (B) and (C);

13 (3) by redesignating subparagraph (D) as sub14 paragraph (B); and

15 (4) in subparagraph (B), as redesignated by

16 paragraph (3), by striking ‘‘, (B), or (C)’’.

17 SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

18 Section 11(e)(10) of the Food Stamp Act of 1977 (7

19 U.S.C. 2020(e)(10)) is amended by inserting before the

20 semicolon at the end a period and the following: ‘‘At the

21 option of a State, at any time prior to a fair hearing deter22 mination under this paragraph, a household may with23 draw, orally or in writing, a request by the household for

24 the fair hearing. If the withdrawal request is an oral re25 quest, the State agency shall provide a written notice to
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1 the household confirming the withdrawal request and pro2 viding the household with an opportunity to request a

3 hearing’’.

4 SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STA5 TUS VERIFICATION SYSTEMS.

6 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

7 2020) is amended—

8 (1) in subsection (e)(18), as redesignated by

9 section 1044(1)(D)—

10 (A) by striking ‘‘that information is’’ and

11 inserting ‘‘at the option of the State agency,

12 that information may be’’; and

13 (B) by striking ‘‘shall be requested’’ and

14 inserting ‘‘may be requested’’; and

15 (2) by adding at the end the following:

16 ‘‘(p) STATE VERIFICATION OPTION.—Notwithstand17 ing any other provision of law, in carrying out the food

18 stamp program, a State agency shall not be required to

19 use an income and eligibility or an immigration status ver20 ification system established under section 1137 of the So21 cial Security Act (42 U.S.C. 1320b–7).’’.

22 SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTEN23 TIONALLY SUBMIT FALSIFIED APPLICATIONS.

24 Section 12(b) of the Food Stamp Act of 1977 (7

25 U.S.C. 2021(b)) is amended—
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1 (1) in paragraph (2), by striking ‘‘and’’ at the

2 end;

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

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

5 (3) by adding at the end the following:

6 ‘‘(4) for a reasonable period of time to be deter7 mined by the Secretary, including permanent dis8 qualification, on the knowing submission of an appli9 cation for the approval or reauthorization to accept

10 and redeem coupons that contains false information

11 about a substantive matter that was a part of the

12 application.’’.

13 SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE

14 DISQUALIFIED UNDER THE WIC PROGRAM.

15 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

16 2021) is amended by adding at the end the following:

17 ‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE

18 DISQUALIFIED UNDER THE WIC PROGRAM.—

19 ‘‘(1) IN GENERAL.—The Secretary shall issue

20 regulations providing criteria for the disqualification

21 under this Act of an approved retail food store and

22 a wholesale food concern that is disqualified from

23 accepting benefits under the special supplemental

24 nutrition program for women, infants, and children
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1 established under section 17 of the Child Nutrition

2 Act of 1966 (7 U.S.C. 1786).

3 ‘‘(2) TERMS.—A disqualification under para4 graph (1)—

5 ‘‘(A) shall be for the same length of time

6 as the disqualification from the program re7 ferred to in paragraph (1);

8 ‘‘(B) may begin at a later date than the

9 disqualification from the program referred to in

10 paragraph (1); and

11 ‘‘(C) notwithstanding section 14, shall not

12 be subject to judicial or administrative review.’’.

13 SEC. 1052. COLLECTION OF OVERISSUANCES.

14 (a) COLLECTION OF OVERISSUANCES.—Section 13 of

15 the Food Stamp Act of 1977 (7 U.S.C. 2022) is amend16 ed—

17 (1) by striking subsection (b) and inserting the

18 following:

19 ‘‘(b) COLLECTION OF OVERISSUANCES.—

20 ‘‘(1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, a State agency shall collect

22 any overissuance of coupons issued to a household

23 by—

24 ‘‘(A) reducing the allotment of the house25 hold;
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1 ‘‘(B) withholding amounts from unemploy2 ment compensation from a member of the

3 household under subsection (c);

4 ‘‘(C) recovering from Federal pay or a

5 Federal income tax refund under subsection

6 (d); or

7 ‘‘(D) any other means.

8 ‘‘(2) COST EFFECTIVENESS.—Paragraph (1)

9 shall not apply if the State agency demonstrates to

10 the satisfaction of the Secretary that all of the

11 means referred to in paragraph (1) are not cost ef12 fective.

13 ‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—

14 If a household received an overissuance of coupons

15 without any member of the household being found

16 ineligible to participate in the program under section

17 6(b)(1) and a State agency elects to reduce the allot18 ment of the household under paragraph (1)(A), the

19 State agency shall not reduce the monthly allotment

20 of the household under paragraph (1)(A) by an

21 amount in excess of the greater of—

22 ‘‘(A) 10 percent of the monthly allotment

23 of the household; or

24 ‘‘(B) $10.
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1 ‘‘(4) PROCEDURES.—A State agency shall col2 lect an overissuance of coupons issued to a house3 hold under paragraph (1) in accordance with the re4 quirements established by the State agency for pro5 viding notice, electing a means of payment, and es6 tablishing a time schedule for payment.’’; and

7 (2) in subsection (d)—

8 (A) by striking ‘‘as determined under sub9 section (b) and except for claims arising from

10 an error of the State agency,’’ and inserting ‘‘,

11 as determined under subsection (b)(1),’’; and

12 (B) by inserting before the period at the

13 end the following: ‘‘or a Federal income tax re14 fund as authorized by section 3720A of title 31,

15 United States Code’’.

16 (b) CONFORMING AMENDMENTS.—Section 11(e)(8)

17 of the Act (7 U.S.C. 2020(e)(8)) is amended—

18 (1) by striking ‘‘and excluding claims’’ and all

19 that follows through ‘‘such section’’; and

20 (2) by inserting before the semicolon at the end

21 the following: ‘‘or a Federal income tax refund as

22 authorized by section 3720A of title 31, United

23 States Code’’.

24 (c) RETENTION RATE.—Section 16(a) of the Act (7

25 U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur-
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1 ing the period beginning October 1, 1990’’ and all that

2 follows through ‘‘error of a State agency’’ and inserting

3 the following: ‘‘25 percent of the overissuances collected

4 by the State agency under section 13, except those

5 overissuances arising from an error of the State agency’’.

6 SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING

7 PROGRAM REQUIREMENTS PENDING ADMIN8 ISTRATIVE AND JUDICIAL REVIEW.

9 Section 14(a) of the Food Stamp Act of 1977 (7

10 U.S.C. 2023(a)) is amended—

11 (1) by redesignating the first through seven12 teenth sentences as paragraphs (1) through (17), re13 spectively; and

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

15 ‘‘(18) SUSPENSION OF STORES PENDING RE16 VIEW.—Notwithstanding any other provision of this

17 subsection, any permanent disqualification of a retail

18 food store or wholesale food concern under para19 graph (3) or (4) of section 12(b) shall be effective

20 from the date of receipt of the notice of disqualifica21 tion. If the disqualification is reversed through ad22 ministrative or judicial review, the Secretary shall

23 not be liable for the value of any sales lost during

24 the disqualification period.’’.
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1 SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLA2 TIONS.

3 (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD

4 STAMP TRAFFICKING.—The first sentence of section

5 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g))

6 is amended by striking ‘‘or intended to be furnished’’.

7 (b) CRIMINAL FORFEITURE.—Section 15 of the Act

8 (7 U.S.C. 2024) is amended by adding at the end the fol9 lowing:

10 ‘‘(h) CRIMINAL FORFEITURE.—

11 ‘‘(1) IN GENERAL.—In imposing a sentence on

12 a person convicted of an offense in violation of sub13 section (b) or (c), a court shall order, in addition to

14 any other sentence imposed under this subsection,

15 that the person forfeit to the United States all prop16 erty described in paragraph (2).

17 ‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All

18 property, real and personal, used in a transaction or

19 attempted transaction, to commit, or to facilitate the

20 commission of, a violation (other than a mis21 demeanor) of subsection (b) or (c), or proceeds

22 traceable to a violation of subsection (b) or (c), shall

23 be subject to forfeiture to the United States under

24 paragraph (1).

25 ‘‘(3) INTEREST OF OWNER.—No interest in

26 property shall be forfeited under this subsection as
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1 the result of any act or omission established by the

2 owner of the interest to have been committed or

3 omitted without the knowledge or consent of the

4 owner.

5 ‘‘(4) PROCEEDS.—The proceeds from any sale

6 of forfeited property and any monies forfeited under

7 this subsection shall be used—

8 ‘‘(A) first, to reimburse the Department of

9 Justice for the costs incurred by the Depart10 ment to initiate and complete the forfeiture pro11 ceeding;

12 ‘‘(B) second, to reimburse the Department

13 of Agriculture Office of Inspector General for

14 any costs the Office incurred in the law enforce15 ment effort resulting in the forfeiture;

16 ‘‘(C) third, to reimburse any Federal or

17 State law enforcement agency for any costs in18 curred in the law enforcement effort resulting

19 in the forfeiture; and

20 ‘‘(D) fourth, by the Secretary to carry out

21 the approval, reauthorization, and compliance

22 investigations of retail stores and wholesale

23 food concerns under section 9.’’.
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1 SEC. 1055. LIMITATION OF FEDERAL MATCH.

2 Section 16(a)(4) of the Food Stamp Act of 1977 (7

3 U.S.C. 2025(a)(4)) is amended by inserting after the

4 comma at the end the following: ‘‘but not including re5 cruitment activities,’’.

6 SEC. 1056. STANDARDS FOR ADMINISTRATION.

7 (a) IN GENERAL.—Section 16 of the Food Stamp Act

8 of 1977 (7 U.S.C. 2025) is amended by striking sub9 section (b).

10 (b) CONFORMING AMENDMENTS.—

11 (1) The first sentence of section 11(g) of the

12 Act (7 U.S.C. 2020(g)) is amended by striking ‘‘the

13 Secretary’s standards for the efficient and effective

14 administration of the program established under sec15 tion 16(b)(1) or’’.

16 (2) Section 16(c)(1)(B) of the Act (7 U.S.C.

17 2025(c)(1)(B)) is amended by striking ‘‘pursuant to

18 subsection (b)’’.

19 SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PRO20 GRAM.

21 Section 16 of the Food Stamp Act of 1977 (7 U.S.C.

22 2025), as amended by section 1056(a), is amended by in23 serting after subsection (a) the following:

24 ‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO25 GRAM.—
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1 ‘‘(1) DEFINITION OF WORK SUPPLEMENTATION

2 OR SUPPORT PROGRAM.—In this subsection, the

3 term ‘work supplementation or support program’

4 means a program under which, as determined by the

5 Secretary, public assistance (including any benefits

6 provided under a program established by the State

7 and the food stamp program) is provided to an em8 ployer to be used for hiring and employing a public

9 assistance recipient who was not employed by the

10 employer at the time the public assistance recipient

11 entered the program.

12 ‘‘(2) PROGRAM.—A State agency may elect to

13 use an amount equal to the allotment that would

14 otherwise be issued to a household under the food

15 stamp program, but for the operation of this sub16 section, for the purpose of subsidizing or supporting

17 a job under a work supplementation or support pro18 gram established by the State.

19 ‘‘(3) PROCEDURE.—If a State agency makes an

20 election under paragraph (2) and identifies each

21 household that participates in the food stamp pro22 gram that contains an individual who is participat23 ing in the work supplementation or support pro24 gram—
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1 ‘‘(A) the Secretary shall pay to the State

2 agency an amount equal to the value of the al3 lotment that the household would be eligible to

4 receive but for the operation of this subsection;

5 ‘‘(B) the State agency shall expend the

6 amount received under subparagraph (A) in ac7 cordance with the work supplementation or sup8 port program in lieu of providing the allotment

9 that the household would receive but for the op10 eration of this subsection;

11 ‘‘(C) for purposes of—

12 ‘‘(i) sections 5 and 8(a), the amount

13 received under this subsection shall be ex14 cluded from household income and re15 sources; and

16 ‘‘(ii) section 8(b), the amount received

17 under this subsection shall be considered to

18 be the value of an allotment provided to

19 the household; and

20 ‘‘(D) the household shall not receive an al21 lotment from the State agency for the period

22 during which the member continues to partici23 pate in the work supplementation or support

24 program.
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1 ‘‘(4) OTHER WORK REQUIREMENTS.—No indi2 vidual shall be excused, by reason of the fact that

3 a State has a work supplementation or support pro4 gram, from any work requirement under section

5 6(d), except during the periods in which the individ6 ual is employed under the work supplementation or

7 support program.

8 ‘‘(5) LENGTH OF PARTICIPATION.—A State

9 agency shall provide a description of how the public

10 assistance recipients in the program shall, within a

11 specific period of time, be moved from supplemented

12 or supported employment to employment that is not

13 supplemented or supported.

14 ‘‘(6) DISPLACEMENT.—A work supplementation

15 or support program shall not displace the employ16 ment of individuals who are not supplemented or

17 supported.’’.

18 SEC. 1058. WAIVER AUTHORITY.

19 Section 17(b)(1) of the Food Stamp Act of 1977 (7

20 U.S.C. 2026(b)(1)) is amended—

21 (1) by redesignating subparagraph (B) as sub22 paragraph (C); and

23 (2) in subparagraph (A)—

24 (A) by striking the second sentence; and
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1 (B) by striking ‘‘benefits to eligible house2 holds, including’’ and inserting the following:

3 ‘‘benefits to eligible households, and may waive

4 any requirement of this Act to the extent nec5 essary for the project to be conducted.

6 ‘‘(B) PROJECT REQUIREMENTS.—

7 ‘‘(i) PROGRAM GOAL.—The Secretary

8 may not conduct a project under subpara9 graph (A) unless the project is consistent

10 with the goal of the food stamp program of

11 providing food assistance to raise levels of

12 nutrition among low-income individuals.

13 ‘‘(ii) PERMISSIBLE PROJECTS.—The

14 Secretary may conduct a project under

15 subparagraph (A) to—

16 ‘‘(I) improve program adminis17 tration;

18 ‘‘(II) increase the self-sufficiency

19 of food stamp recipients;

20 ‘‘(III) test innovative welfare re21 form strategies; and

22 ‘‘(IV) allow greater conformity

23 with the rules of other programs than

24 would be allowed but for this para25 graph.
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1 ‘‘(iii) IMPERMISSIBLE PROJECTS.—

2 The Secretary may not conduct a project

3 under subparagraph (A) that—

4 ‘‘(I) involves the payment of the

5 value of an allotment in the form of

6 cash, unless the project was approved

7 prior to the date of enactment of this

8 subparagraph;

9 ‘‘(II) substantially transfers

10 funds made available under this Act

11 to services or benefits provided pri12 marily through another public assist13 ance program; or

14 ‘‘(III) is not limited to a specific

15 time period.

16 ‘‘(iv) ADDITIONAL INCLUDED

17 PROJECTS.—Pilot or experimental projects

18 may include’’.

19 SEC. 1059. RESPONSE TO WAIVERS.

20 Section 17(b)(1) of the Food Stamp Act of 1977 (7

21 U.S.C. 2026(b)(1)), as amended by section 1058, is

22 amended by adding at the end the following:

23 ‘‘(D) RESPONSE TO WAIVERS.—

24 ‘‘(i) RESPONSE.—Not later than 60

25 days after the date of receiving a request
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1 for a waiver under subparagraph (A), the

2 Secretary shall provide a response that—

3 ‘‘(I) approves the waiver request;

4 ‘‘(II) denies the waiver request

5 and explains any modification needed

6 for approval of the waiver request;

7 ‘‘(III) denies the waiver request

8 and explains the grounds for the de9 nial; or

10 ‘‘(IV) requests clarification of the

11 waiver request.

12 ‘‘(ii) FAILURE TO RESPOND.—If the

13 Secretary does not provide a response in

14 accordance with clause (i), the waiver shall

15 be considered approved, unless the ap16 proval is specifically prohibited by this Act.

17 ‘‘(iii) NOTICE OF DENIAL.—On denial

18 of a waiver request under clause (i)(III),

19 the Secretary shall provide a copy of the

20 waiver request and a description of the

21 reasons for the denial to the Committee on

22 Agriculture of the House of Representa23 tives and the Committee on Agriculture,

24 Nutrition, and Forestry of the Senate.’’.
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1 SEC. 1060. EMPLOYMENT INITIATIVES PROGRAM.

2 Section 17 of the Food Stamp Act of 1977 (7 U.S.C.

3 2026) is amended by striking subsection (d) and inserting

4 the following:

5 ‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—

6 ‘‘(1) ELECTION TO PARTICIPATE.—

7 ‘‘(A) IN GENERAL.—Subject to the other

8 provisions of this subsection, a State may elect

9 to carry out an employment initiatives program

10 under this subsection.

11 ‘‘(B) REQUIREMENT.—A State shall be eli12 gible to carry out an employment initiatives

13 program under this subsection only if not less

14 than 50 percent of the households that received

15 food stamp benefits during the summer of 1993

16 also received benefits under a State program

17 funded under part A of title IV of the Social

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

19 summer of 1993.

20 ‘‘(2) PROCEDURE.—

21 ‘‘(A) IN GENERAL.—A State that has

22 elected to carry out an employment initiatives

23 program under paragraph (1) may use amounts

24 equal to the food stamp allotments that would

25 otherwise be issued to a household under the

26 food stamp program, but for the operation of
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1 this subsection, to provide cash benefits in lieu

2 of the food stamp allotments to the household

3 if the household is eligible under paragraph (3).

4 ‘‘(B) PAYMENT.—The Secretary shall pay

5 to each State that has elected to carry out an

6 employment initiatives program under para7 graph (1) an amount equal to the value of the

8 allotment that each household would be eligible

9 to receive under this Act but for the operation

10 of this subsection.

11 ‘‘(C) OTHER PROVISIONS.—For purposes

12 of the food stamp program (other than this

13 subsection)—

14 ‘‘(i) cash assistance under this sub15 section shall be considered to be an allot16 ment; and

17 ‘‘(ii) each household receiving cash

18 benefits under this subsection shall not re19 ceive any other food stamp benefit for the

20 period for which the cash assistance is pro21 vided.

22 ‘‘(D) ADDITIONAL PAYMENTS.—Each

23 State that has elected to carry out an employ24 ment initiatives program under paragraph (1)

25 shall—
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1 ‘‘(i) increase the cash benefits pro2 vided to each household under this sub3 section to compensate for any State or

4 local sales tax that may be collected on

5 purchases of food by any household receiv6 ing cash benefits under this subsection, un7 less the Secretary determines on the basis

8 of information provided by the State that

9 the increase is unnecessary on the basis of

10 the limited nature of the items subject to

11 the State or local sales tax; and

12 ‘‘(ii) pay the cost of any increase in

13 cash benefits required by clause (i).

14 ‘‘(3) ELIGIBILITY.—A household shall be eligi15 ble to receive cash benefits under paragraph (2) if

16 an adult member of the household—

17 ‘‘(A) has worked in unsubsidized employ18 ment for not less than the preceding 90 days;

19 ‘‘(B) has earned not less than $350 per

20 month from the employment referred to in sub21 paragraph (A) for not less than the preceding

22 90 days;

23 ‘‘(C)(i) is receiving benefits under a State

24 program funded under part A of title IV of the

25 Social Security Act (42 U.S.C. 601 et seq.); or
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1 ‘‘(ii) was receiving benefits under a State

2 program funded under part A of title IV of the

3 Social Security Act (42 U.S.C. 601 et seq.) at

4 the time the member first received cash benefits

5 under this subsection and is no longer eligible

6 for the State program because of earned in7 come;

8 ‘‘(D) is continuing to earn not less than

9 $350 per month from the employment referred

10 to in subparagraph (A); and

11 ‘‘(E) elects to receive cash benefits in lieu

12 of food stamp benefits under this subsection.

13 ‘‘(4) EVALUATION.—A State that operates a

14 program under this subsection for 2 years shall pro15 vide to the Secretary a written evaluation of the im16 pact of cash assistance under this subsection. The

17 State agency, with the concurrence of the Secretary,

18 shall determine the content of the evaluation.’’.

19 SEC. 1061. REAUTHORIZATION.

20 The first sentence of section 18(a)(1) of the Food

21 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

22 striking ‘‘1991 through 1997’’ and inserting ‘‘1996

23 through 2002’’.
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1 SEC. 1062. SIMPLIFIED FOOD STAMP PROGRAM.

2 (a) IN GENERAL.—The Food Stamp Act of 1977 (7

3 U.S.C. 2011 et seq.) is amended by adding at the end

4 the following:

5 ‘‘SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.

6 ‘‘(a) DEFINITION OF FEDERAL COSTS.—In this sec7 tion, the term ‘Federal costs’ does not include any Federal

8 costs incurred under section 17.

9 ‘‘(b) ELECTION.—Subject to subsection (d), a State

10 may elect to carry out a Simplified Food Stamp Program

11 (referred to in this section as a ‘Program’), statewide or

12 in a political subdivision of the State, in accordance with

13 this section.

14 ‘‘(c) OPERATION OF PROGRAM.—If a State elects to

15 carry out a Program, within the State or a political sub16 division of the State—

17 ‘‘(1) a household in which all members receive

18 assistance under a State program funded under part

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

20 601 et seq.) shall automatically be eligible to partici21 pate in the Program; and

22 ‘‘(2) subject to subsection (f), benefits under

23 the Program shall be determined under rules and

24 procedures established by the State under—
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1 ‘‘(A) a State program funded under part A

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

3 601 et seq.);

4 ‘‘(B) the food stamp program (other than

5 section 27); or

6 ‘‘(C) a combination of a State program

7 funded under part A of title IV of the Social

8 Security Act (42 U.S.C. 601 et seq.) and the

9 food stamp program (other than section 27).

10 ‘‘(d) APPROVAL OF PROGRAM.—

11 ‘‘(1) STATE PLAN.—A State agency may not

12 operate a Program unless the Secretary approves a

13 State plan for the operation of the Program under

14 paragraph (2).

15 ‘‘(2) APPROVAL OF PLAN.—The Secretary shall

16 approve any State plan to carry out a Program if

17 the Secretary determines that the plan—

18 ‘‘(A) complies with this section; and

19 ‘‘(B) contains sufficient documentation

20 that the plan will not increase Federal costs for

21 any fiscal year.

22 ‘‘(e) INCREASED FEDERAL COSTS.—

23 ‘‘(1) DETERMINATION.—During each fiscal

24 year and not later than 90 days after the end of

25 each fiscal year, the Secretary shall determine
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1 whether a Program being carried out by a State

2 agency is increasing Federal costs under this Act

3 above the Federal costs incurred under the food

4 stamp program in operation in the State or political

5 subdivision of the State for the fiscal year prior to

6 the implementation of the Program, adjusted for any

7 changes in—

8 ‘‘(A) participation;

9 ‘‘(B) the income of participants in the food

10 stamp program that is not attributable to pub11 lic assistance; and

12 ‘‘(C) the thrifty food plan under section

13 3(o).

14 ‘‘(2) NOTIFICATION.—If the Secretary deter15 mines that the Program has increased Federal costs

16 under this Act for any fiscal year or any portion of

17 any fiscal year, the Secretary shall notify the State

18 not later than 30 days after the Secretary makes the

19 determination under paragraph (1).

20 ‘‘(3) ENFORCEMENT.—

21 ‘‘(A) CORRECTIVE ACTION.—Not later

22 than 90 days after the date of a notification

23 under paragraph (2), the State shall submit a

24 plan for approval by the Secretary for prompt

25 corrective action that is designed to prevent the
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1 Program from increasing Federal costs under

2 this Act.

3 ‘‘(B) TERMINATION.—If the State does not

4 submit a plan under subparagraph (A) or carry

5 out a plan approved by the Secretary, the Sec6 retary shall terminate the approval of the State

7 agency operating the Program and the State

8 agency shall be ineligible to operate a future

9 Program.

10 ‘‘(f) RULES AND PROCEDURES.—

11 ‘‘(1) IN GENERAL.—In operating a Program, a

12 State or political subdivision of a State may follow

13 the rules and procedures established by the State or

14 political subdivision under a State program funded

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

16 (42 U.S.C. 601 et seq.) or under the food stamp

17 program.

18 ‘‘(2) STANDARDIZED DEDUCTIONS.—In operat19 ing a Program, a State or political subdivision of a

20 State may standardize the deductions provided

21 under section 5(e). In developing the standardized

22 deduction, the State shall consider the work ex23 penses, dependent care costs, and shelter costs of

24 participating households.
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1 ‘‘(3) REQUIREMENTS.—In operating a Pro2 gram, a State or political subdivision shall comply

3 with the requirements of—

4 ‘‘(A) subsections (a) through (g) of section

5 7;

6 ‘‘(B) section 8(a) (except that the income

7 of a household may be determined under a

8 State program funded under part A of title IV

9 of the Social Security Act (42 U.S.C. 601 et

10 seq.));

11 ‘‘(C) subsection (b) and (d) of section 8;

12 ‘‘(D) subsections (a), (c), (d), and (n) of

13 section 11;

14 ‘‘(E) paragraphs (8), (12), (16), (18),

15 (20), (24), and (25) of section 11(e);

16 ‘‘(F) section 11(e)(10) (or a comparable

17 requirement established by the State under a

18 State program funded under part A of title IV

19 of the Social Security Act (42 U.S.C. 601 et

20 seq.)); and

21 ‘‘(G) section 16.

22 ‘‘(4) LIMITATION ON ELIGIBILITY.—Notwith23 standing any other provision of this section, a house24 hold may not receive benefits under this section as

25 a result of the eligibility of the household under a
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1 State program funded under part A of title IV of the

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

3 the Secretary determines that any household with in4 come above 130 percent of the poverty guidelines is

5 not eligible for the program.’’.

6 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

7 Act (7 U.S.C. 2020(e)), as amended by sections 1020(b),

8 1028(b), and 1044, is amended by adding at the end the

9 following:

10 ‘‘(25) if a State elects to carry out a Simplified

11 Food Stamp Program under section 26, the plans of

12 the State agency for operating the program, includ13 ing—

14 ‘‘(A) the rules and procedures to be fol15 lowed by the State agency to determine food

16 stamp benefits;

17 ‘‘(B) how the State agency will address the

18 needs of households that experience high shelter

19 costs in relation to the incomes of the house20 holds; and

21 ‘‘(C) a description of the method by which

22 the State agency will carry out a quality control

23 system under section 16(c).’’.

24 (c) CONFORMING AMENDMENTS.—
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1 (1) Section 8 of the Act (7 U.S.C. 2017), as

2 amended by section 1039, is amended—

3 (A) by striking subsection (e); and

4 (B) by redesignating subsection (f) as sub5 section (e).

6 (2) Section 17 of the Act (7 U.S.C. 2026) is

7 amended—

8 (A) by striking subsection (i); and

9 (B) by redesignating subsections (j)

10 through (l) as subsections (i) through (k), re11 spectively.

12 SEC. 1063. STATE FOOD ASSISTANCE BLOCK GRANT.

13 (a) IN GENERAL.—The Food Stamp Act of 1977 (7

14 U.S.C. 2011 et seq.), as amended by section 1062, is

15 amended by adding at the end the following:

16 ‘‘SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.

17 ‘‘(a) DEFINITIONS.—In this section:

18 ‘‘(1) FOOD ASSISTANCE.—The term ‘food as19 sistance’ means assistance that may be used only to

20 obtain food, as defined in section 3(g).

21 ‘‘(2) STATE.—The term ‘State’ means each of

22 the 50 States, the District of Columbia, Guam, and

23 the Virgin Islands of the United States.
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1 ‘‘(b) ESTABLISHMENT.—The Secretary shall estab2 lish a program to make grants to States in accordance

3 with this section to provide—

4 ‘‘(1) food assistance to needy individuals and

5 families residing in the State; and

6 ‘‘(2) funds for administrative costs incurred in

7 providing the assistance.

8 ‘‘(c) ELECTION.—

9 ‘‘(1) IN GENERAL.—A State may annually elect

10 to participate in the program established under sub11 section (b) if the State—

12 ‘‘(A) has fully implemented an electronic

13 benefit transfer system that operates in the en14 tire State;

15 ‘‘(B) has a payment error rate under sec16 tion 16(c) that is not more than 6 percent as

17 announced most recently by the Secretary; or

18 ‘‘(C) has a payment error rate in excess of

19 6 percent and agrees to contribute non-Federal

20 funds for the fiscal year of the grant, for bene21 fits and administration of the State’s food as22 sistance program, the amount determined under

23 paragraph (2).

24 ‘‘(2) STATE MANDATORY CONTRIBUTIONS.—
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1 ‘‘(A) IN GENERAL.—In the case of a State

2 that elects to participate in the program under

3 paragraph (1)(C), the State shall agree to con4 tribute, for a fiscal year, an amount equal to—

5 ‘‘(i) the benefits issued in the State;

6 multiplied by

7 ‘‘(ii) the payment error rate of the

8 State; minus

9 ‘‘(B)(i) the benefits issued in the State;

10 multiplied by

11 ‘‘(ii) 6 percent.

12 ‘‘(B) DETERMINATION.—Notwithstanding

13 sections 13 and 14, the calculation of the con14 tribution shall be based solely on the determina15 tion of the Secretary of the payment error rate.

16 ‘‘(C) DATA.—For purposes of implement17 ing subparagraph (A) for a fiscal year, the Sec18 retary shall use the data for the most recent

19 fiscal year available.

20 ‘‘(3) ELECTION LIMITATION.—

21 ‘‘(A) RE-ENTERING FOOD STAMP PRO22 GRAM.—A State that elects to participate in the

23 program under paragraph (1) may in a subse24 quent year decline to elect to participate in the

25 program and instead participate in the food
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1 stamp program in accordance with the other

2 sections of this Act.

3 ‘‘(B) LIMITATION.—Subsequent to re-en4 tering the food stamp program under subpara5 graph (A), the State shall only be eligible to

6 participate in the food stamp program in ac7 cordance with the other sections of this Act and

8 shall not be eligible to elect to participate in the

9 program established under subsection (b).

10 ‘‘(4) PROGRAM EXCLUSIVE.—

11 ‘‘(A) IN GENERAL.—A State that is par12 ticipating in the program established under sub13 section (b) shall not be subject to, or receive

14 any benefit under, this Act except as provided

15 in this section.

16 ‘‘(B) CONTRACT WITH FEDERAL GOVERN17 MENT.—Nothing in this section shall prohibit a

18 State from contracting with the Federal Gov19 ernment for the provision of services or mate20 rials necessary to carry out a program under

21 this section.

22 ‘‘(d) LEAD AGENCY.—A State desiring to receive a

23 grant under this section shall designate, in an application

24 submitted to the Secretary under subsection (e)(1), an ap-
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1 propriate State agency responsible for the administration

2 of the program under this section as the lead agency.

3 ‘‘(e) APPLICATION AND PLAN.—

4 ‘‘(1) APPLICATION.—To be eligible to receive

5 assistance under this section, a State shall prepare

6 and submit to the Secretary an application at such

7 time, in such manner, and containing such informa8 tion as the Secretary shall by regulation require, in9 cluding—

10 ‘‘(A) an assurance that the State will com11 ply with the requirements of this section;

12 ‘‘(B) a State plan that meets the require13 ments of paragraph (3); and

14 ‘‘(C) an assurance that the State will com15 ply with the requirements of the State plan

16 under paragraph (3).

17 ‘‘(2) ANNUAL PLAN.—The State plan contained

18 in the application under paragraph (1) shall be sub19 mitted for approval annually.

20 ‘‘(3) REQUIREMENTS OF PLAN.—

21 ‘‘(A) LEAD AGENCY.—The State plan shall

22 identify the lead agency.

23 ‘‘(B) USE OF BLOCK GRANT FUNDS.—The

24 State plan shall provide that the State shall use
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1 the amounts provided to the State for each fis2 cal year under this section—

3 ‘‘(i) to provide food assistance to

4 needy individuals and families residing in

5 the State, other than residents of institu6 tions who are ineligible for food stamps

7 under section 3(i); and

8 ‘‘(ii) to pay administrative costs in9 curred in providing the assistance.

10 ‘‘(C) GROUPS SERVED.—The State plan

11 shall describe how and to what extent the pro12 gram will serve specific groups of individuals

13 and families and how the treatment will differ

14 from treatment under the food stamp program

15 under the other sections of this Act of the indi16 viduals and families, including—

17 ‘‘(i) elderly individuals and families;

18 ‘‘(ii) migrants or seasonal farm19 workers;

20 ‘‘(iii) homeless individuals and fami21 lies;

22 ‘‘(iv) individuals and families who live

23 in institutions eligible under section 3(i);

24 ‘‘(v) individuals and families with

25 earnings; and
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1 ‘‘(vi) members of Indian tribes or trib2 al organizations.

3 ‘‘(D) ASSISTANCE FOR ENTIRE STATE.—

4 The State plan shall provide that benefits under

5 this section shall be available throughout the

6 entire State.

7 ‘‘(E) NOTICE AND HEARINGS.—The State

8 plan shall provide that an individual or family

9 who applies for, or receives, assistance under

10 this section shall be provided with notice of, and

11 an opportunity for a hearing on, any action

12 under this section that adversely affects the in13 dividual or family.

14 ‘‘(F) ASSESSMENT OF NEEDS.—The State

15 plan shall assess the food and nutrition needs

16 of needy persons residing in the State.

17 ‘‘(G) ELIGIBILITY STANDARDS.—The State

18 plan shall describe the income, resource, and

19 other eligibility standards that are established

20 for the receipt of assistance under this section.

21 ‘‘(H) DISQUALIFICATION OF FLEEING FEL22 ONS.—The State plan shall provide for the dis23 qualification of any individual who would be

24 disqualified from participating in the food

25 stamp program under section 6(k).
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1 ‘‘(I) RECEIVING BENEFITS IN MORE THAN

2 1 JURISDICTION.—The State plan shall estab3 lish a system for the exchange of information

4 with other States to verify the identity and re5 ceipt of benefits by recipients.

6 ‘‘(J) PRIVACY.—The State plan shall pro7 vide for safeguarding and restricting the use

8 and disclosure of information about any individ9 ual or family receiving assistance under this

10 section.

11 ‘‘(K) OTHER INFORMATION.—The State

12 plan shall contain such other information as

13 may be required by the Secretary.

14 ‘‘(4) APPROVAL OF APPLICATION AND PLAN.—

15 The Secretary shall approve an application and

16 State plan that satisfies the requirements of this

17 section.

18 ‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO

19 ASSISTANCE.—Nothing in this section—

20 ‘‘(1) entitles any individual or family to assist21 ance under this section; or

22 ‘‘(2) limits the right of a State to impose addi23 tional limitations or conditions on assistance under

24 this section.

25 ‘‘(g) BENEFITS FOR ALIENS.—
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1 ‘‘(1) ELIGIBILITY.—No individual who is an

2 alien shall be eligible to receive benefits under a

3 State plan approved under subsection (e)(4) if the

4 individual is not eligible to participate in the food

5 stamp program due to the alien status of the indi6 vidual.

7 ‘‘(2) INCOME.—The State plan shall provide

8 that the income of an alien shall be determined in

9 accordance with section 5(i).

10 ‘‘(h) EMPLOYMENT AND TRAINING.—

11 ‘‘(1) WORK REQUIREMENTS.—No individual or

12 household shall be eligible to receive benefits under

13 a State plan funded under this section if the individ14 ual or household is not eligible to participate in the

15 food stamp program under subsection (d) or (o) of

16 section 6.

17 ‘‘(2) WORK PROGRAMS.—Each State shall im18 plement an employment and training program in ac19 cordance with the terms and conditions of section

20 6(d)(4) for individuals under the program and shall

21 be eligible to receive funding under section 16(h).

22 ‘‘(i) ENFORCEMENT.—

23 ‘‘(1) REVIEW OF COMPLIANCE WITH STATE

24 PLAN.—The Secretary shall review and monitor
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1 State compliance with this section and the State

2 plan approved under subsection (e)(4).

3 ‘‘(2) NONCOMPLIANCE.—

4 ‘‘(A) IN GENERAL.—If the Secretary, after

5 reasonable notice to a State and opportunity for

6 a hearing, finds that—

7 ‘‘(i) there has been a failure by the

8 State to comply substantially with any pro9 vision or requirement set forth in the State

10 plan approved under subsection (e)(4); or

11 ‘‘(ii) in the operation of any program

12 or activity for which assistance is provided

13 under this section, there is a failure by the

14 State to comply substantially with any pro15 vision of this section;

16 the Secretary shall notify the State of the find17 ing and that no further grants will be made to

18 the State under this section (or, in the case of

19 noncompliance in the operation of a program or

20 activity, that no further grants to the State will

21 be made with respect to the program or activ22 ity) until the Secretary is satisfied that there is

23 no longer any failure to comply or that the non24 compliance will be promptly corrected.
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1 ‘‘(B) OTHER PENALTIES.—In the case of a

2 finding of noncompliance made pursuant to

3 subparagraph (A), the Secretary may, in addi4 tion to, or in lieu of, imposing the penalties de5 scribed in subparagraph (A), impose other ap6 propriate penalties, including recoupment of

7 money improperly expended for purposes pro8 hibited or not authorized by this section and

9 disqualification from the receipt of financial as10 sistance under this section.

11 ‘‘(C) NOTICE.—The notice required under

12 subparagraph (A) shall include a specific identi13 fication of any additional penalty being imposed

14 under subparagraph (B).

15 ‘‘(3) ISSUANCE OF REGULATIONS.—The Sec16 retary shall establish by regulation procedures for—

17 ‘‘(A) receiving, processing, and determin18 ing the validity of complaints made to the Sec19 retary concerning any failure of a State to com20 ply with the State plan or any requirement of

21 this section; and

22 ‘‘(B) imposing penalties under this section.

23 ‘‘(j) GRANT.—

24 ‘‘(1) IN GENERAL.—For each fiscal year, the

25 Secretary shall pay to a State that has an applica-
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1 tion approved by the Secretary under subsection

2 (e)(4) an amount that is equal to the grant of the

3 State under subsection (m) for the fiscal year.

4 ‘‘(2) METHOD OF GRANT.—The Secretary shall

5 make a grant to a State for a fiscal year under this

6 section by issuing 1 or more letters of credit for the

7 fiscal year, with necessary adjustments on account

8 of overpayments or underpayments, as determined

9 by the Secretary.

10 ‘‘(3) SPENDING OF GRANTS BY STATE.—

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

12 subparagraph (B), a grant to a State deter13 mined under subsection (m)(1) for a fiscal year

14 may be expended by the State only in the fiscal

15 year.

16 ‘‘(B) CARRYOVER.—The State may reserve

17 up to 10 percent of a grant determined under

18 subsection (m)(1) for a fiscal year to provide

19 assistance under this section in subsequent fis20 cal years, except that the reserved funds may

21 not exceed 30 percent of the total grant re22 ceived under this section for a fiscal year.

23 ‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE

24 EXPENDITURES.—In each fiscal year, not more than

25 6 percent of the Federal and State funds required
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1 to be expended by a State under this section shall

2 be used for administrative expenses.

3 ‘‘(5) PROVISION OF FOOD ASSISTANCE.—A

4 State may provide food assistance under this section

5 in any manner determined appropriate by the State,

6 such as electronic benefit transfer limited to food

7 purchases, coupons limited to food purchases, or di8 rect provision of commodities.

9 ‘‘(k) QUALITY CONTROL.—Each State participating

10 in the program established under this section shall main11 tain a system in accordance with, and shall be subject to

12 section 16(c), including sanctions and eligibility for incen13 tive payment under section 16(c), adjusted for State spe14 cific characteristics under regulations issued by the Sec15 retary.

16 ‘‘(l) NONDISCRIMINATION.—

17 ‘‘(1) IN GENERAL.—The Secretary shall not

18 provide financial assistance for any program,

19 project, or activity under this section if any person

20 with responsibilities for the operation of the pro21 gram, project, or activity discriminates with respect

22 to the program, project, or activity because of race,

23 religion, color, national origin, sex, or disability.

24 ‘‘(2) ENFORCEMENT.—The powers, remedies,

25 and procedures set forth in title VI of the Civil
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1 Rights Act of 1964 (42 U.S.C. 2000d et seq.) may

2 be used by the Secretary to enforce paragraph (1).

3 ‘‘(m) GRANT CALCULATION.—

4 ‘‘(1) STATE GRANT.—

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

6 subparagraph (B), from the amounts made

7 available under section 18 for each fiscal year,

8 the Secretary shall provide a grant to each

9 State participating in the program established

10 under this section an amount that is equal to

11 the sum of—

12 ‘‘(i) the greater of, as determined by

13 the Secretary—

14 ‘‘(I) the total dollar value of all

15 benefits issued under the food stamp

16 program established under this Act by

17 the State during fiscal year 1994; or

18 ‘‘(II) the average per fiscal year

19 of the total dollar value of all benefits

20 issued under the food stamp program

21 by the State during each of fiscal

22 years 1992 through 1994; and

23 ‘‘(ii) the greater of, as determined by

24 the Secretary—
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1 ‘‘(I) the total amount received by

2 the State for administrative costs

3 under section 16(a) (not including any

4 adjustment under section 16(c)) for

5 fiscal year 1994; or

6 ‘‘(II) the average per fiscal year

7 of the total amount received by the

8 State for administrative costs under

9 section 16(a) (not including any ad10 justment under section 16(c)) for each

11 of fiscal years 1992 through 1994.

12 ‘‘(B) INSUFFICIENT FUNDS.—If the Sec13 retary finds that the total amount of grants to

14 which States would otherwise be entitled for a

15 fiscal year under subparagraph (A) will exceed

16 the amount of funds that will be made available

17 to provide the grants for the fiscal year, the

18 Secretary shall reduce the grants made to

19 States under this subsection, on a pro rata

20 basis, to the extent necessary.

21 ‘‘(2) REDUCTION.—The Secretary shall reduce

22 the grant of a State by the amount a State has

23 agreed to contribute under subsection (c)(1)(C).’’.

24 (b) EMPLOYMENT AND TRAINING FUNDING.—Sec25 tion 16(h) of the Act (7 U.S.C. 2025(a)), as amended by
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1 section 1027(d)(2), is amended by adding at the end the

2 following:

3 ‘‘(6) BLOCK GRANT STATES.—Each State elect4 ing to operate a program under section 27 shall—

5 ‘‘(A) receive the greater of—

6 ‘‘(i) the total dollar value of the funds

7 received under paragraph (1) by the State

8 during fiscal year 1994; or

9 ‘‘(ii) the average per fiscal year of the

10 total dollar value of all funds received

11 under paragraph (1) by the State during

12 each of fiscal years 1992 through 1994;

13 and

14 ‘‘(B) be eligible to receive funds under

15 paragraph (2), within the limitations in section

16 6(d)(4)(K).’’.

17 (c) RESEARCH ON OPTIONAL STATE FOOD ASSIST18 ANCE BLOCK GRANT.—Section 17 of the Act (7 U.S.C.

19 2026), as amended by section 1062(c)(2), is amended by

20 adding at the end the following:

21 ‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSIST22 ANCE BLOCK GRANT.—The Secretary may conduct re23 search on the effects and costs of a State program carried

24 out under section 27.’’.
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1 SEC. 1064. A STUDY OF THE USE OF FOOD STAMPS TO PUR2 CHASE VITAMINS AND MINERALS.

3 The Secretary of Agriculture shall, in consultation

4 with the National Academy of Sciences and the Center for

5 Disease Control and Prevention, conduct a study of the

6 use of food stamps to purchase vitamins and minerals.

7 The study shall include an analysis of scientific findings

8 on the efficacy of and need for vitamins and minerals, in9 cluding the adequacy of vitamin and mineral intake in low

10 income populations, as shown by existing research and

11 surveys, and the potential value of nutritional supplements

12 in filling nutrient gaps that may exist in the population

13 as a whole or in vulnerable subgroups in the U.S. popu14 lation; the impact of nutritional improvements (including

15 vitamin or mineral supplementation) on health status and

16 health care costs for women of childbearing age, pregnant

17 or lactating women, and the elderly; the cost of vitamin

18 and mineral supplements commercially available; the pur19 chasing habits of low income populations with regard to

20 vitamins and minerals; the impact on the food purchases

21 of low income households; and the economic impact on ag22 ricultural commodities. The Secretary shall report the re23 sults of the study to the Committee on Agriculture of the

24 U.S. House of Representatives not later than December

25 15, 1996.’’.
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1 SEC. 1065. INVESTIGATIONS.

2 Section 12(a) of the Food Stamp Act of 1977 (7

3 U.S.C. 2021(a)) is amended by adding at the end the fol4 lowing:

5 ‘‘Regulations issued pursuant to this Act shall provide cri6 teria for the finding of violations and the suspension or

7 disqualification of a retail food store or wholesale food con8 cern on the basis of evidence which may include, but is

9 not limited to, facts established through on-site investiga10 tions, inconsistent redemption data or evidence obtained

11 through transaction reports under electronic benefit trans12 fer systems.’’.

13 SEC. 1066. FOOD STAMP ELIGIBILITY.

14 Section 6(f) of the Food Stamp Act of 1977 (7

15 U.S.C. 2015(f)) is amended by striking the third sentence

16 and inserting the following:

17 ‘‘The State agency shall, at its option, consider either all

18 income and financial resources of the individual rendered

19 ineligible to participate in the food stamp program under

20 this subsection, or such income, less a pro rata share, and

21 the financial resources of the ineligible individual, to deter22 mine the eligibility and the value of the allotment of the

23 household of which such individual is a member.’’.

24 SEC. 1067. REPORT BY THE SECRETARY.

25 The Secretary of Agriculture may report to the Com26 mittee on Agriculture of the House of Representatives, not
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1 later than January 1, 2000, on the effect of the food

2 stamp reforms in the Welfare and Medicaid Reform Act

3 of 1996 and the ability of State and local governments

4 to deal with people in poverty. The report must answer

5 the question: ‘‘Did people become more personally respon6 sible and were work opportunities provided such that pov7 erty in America is better managed?’’.

8 SEC. 1068. DEFICIT REDUCTION.

9 It is the sense of the Committee on Agriculture of

10 the House of Representatives that reductions in outlays

11 resulting from this title shall not be taken into account

12 for purposes of section 552 of the Balanced Budget and

13 Emergency Deficit Control Act of 1985.

14 Subtitle B—Commodity

15 Distribution Programs

16 SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.

17 (a) DEFINITIONS.—Section 201A of the Emergency

18 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

19 612c note) is amended to read as follows:

20 ‘‘SEC. 201A. DEFINITIONS.

21 ‘‘In this Act:

22 ‘‘(1) ADDITIONAL COMMODITIES.—The term

23 ‘additional commodities’ means commodities made

24 available under section 214 in addition to the com-
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1 modities made available under sections 202 and

2 203D.

3 ‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM4 PLOYED PERSONS.—The term ‘average monthly

5 number of unemployed persons’ means the average

6 monthly number of unemployed

7 persons in each State in the most recent fiscal year

8 for which information concerning the number of un9 employed persons is available, as determined by the

10 Bureau of Labor Statistics of the Department of

11 Labor.

12 ‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term

13 ‘eligible recipient agency’ means a public or non14 profit organization—

15 ‘‘(A) that administers—

16 ‘‘(i) an emergency feeding organiza17 tion;

18 ‘‘(ii) a charitable institution (including

19 a hospital and a retirement home, but ex20 cluding a penal institution) to the extent

21 that the institution serves needy persons;

22 ‘‘(iii) a summer camp for children, or

23 a child nutrition program providing food

24 service;
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1 ‘‘(iv) a nutrition project operating

2 under the Older Americans Act of 1965

3 (42 U.S.C. 3001 et seq.), including a

4 project that operates a congregate nutri5 tion site and a project that provides home6 delivered meals; or

7 ‘‘(v) a disaster relief program;

8 ‘‘(B) that has been designated by the ap9 propriate State agency, or by the Secretary;

10 and

11 ‘‘(C) that has been approved by the Sec12 retary for participation in the program estab13 lished under this Act.

14 ‘‘(4) EMERGENCY FEEDING ORGANIZATION.—

15 The term ‘emergency feeding organization’ means a

16 public or nonprofit organization that administers ac17 tivities and projects (including the activities and

18 projects of a charitable institution, a food bank, a

19 food pantry, a hunger relief center, a soup kitchen,

20 or a similar public or private nonprofit eligible recip21 ient agency) providing nutrition assistance to relieve

22 situations of emergency and distress through the

23 provision of food to needy persons, including low-in24 come and unemployed persons.
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1 ‘‘(5) FOOD BANK.—The term ‘food bank’

2 means a public or charitable institution that main3 tains an established operation involving the provision

4 of food or edible commodities, or the products of

5 food or edible commodities, to food pantries, soup

6 kitchens, hunger relief centers, or other food or feed7 ing centers that, as an integral part of their normal

8 activities, provide meals or food to feed needy per9 sons on a regular basis.

10 ‘‘(6) FOOD PANTRY.—The term ‘food pantry’

11 means a public or private nonprofit organization

12 that distributes food to low-income and unemployed

13 households, including food from sources other than

14 the Department of Agriculture, to relieve situations

15 of emergency and distress.

16 ‘‘(7) POVERTY LINE.—The term ‘poverty line’

17 has the same meaning given the term in section

18 673(2) of the Community Services Block Grant Act

19 (42 U.S.C. 9902(2)).

20 ‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’

21 means a public or charitable institution that, as an

22 integral part of the normal activities of the institu23 tion, maintains an established feeding operation to

24 provide food to needy homeless persons on a regular

25 basis.
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1 ‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD2 ITIES.—The term ‘total value of additional commod3 ities’ means the actual cost of all additional com4 modities made available under section 214 that are

5 paid by the Secretary (including the distribution and

6 processing costs incurred by the Secretary).

7 ‘‘(10) VALUE OF ADDITIONAL COMMODITIES

8 ALLOCATED TO EACH STATE.—The term ‘value of

9 additional commodities allocated to each State’

10 means the actual cost of additional commodities

11 made available under section 214 and allocated to

12 each State that are paid by the Secretary (including

13 the distribution and processing costs incurred by the

14 Secretary).’’.

15 (b) STATE PLAN.—Section 202A of the Act (7 U.S.C.

16 612c note) is amended to read as follows:

17 ‘‘SEC. 202A. STATE PLAN.

18 ‘‘(a) IN GENERAL.—To receive commodities under

19 this Act, a State shall submit a plan of operation and ad20 ministration every 4 years to the Secretary for approval.

21 The plan may be amended at any time, with the approval

22 of the Secretary.

23 ‘‘(b) REQUIREMENTS.—Each plan shall—

24 ‘‘(1) designate the State agency responsible for

25 distributing the commodities received under this Act;
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1 ‘‘(2) set forth a plan of operation and adminis2 tration to expeditiously distribute commodities under

3 this Act;

4 ‘‘(3) set forth the standards of eligibility for re5 cipient agencies; and

6 ‘‘(4) set forth the standards of eligibility for in7 dividual or household recipients of commodities,

8 which shall require—

9 ‘‘(A) individuals or households to be com10 prised of needy persons; and

11 ‘‘(B) individual or household members to

12 be residing in the geographic location served by

13 the distributing agency at the time of applying

14 for assistance.

15 ‘‘(c) STATE ADVISORY BOARD.—The Secretary shall

16 encourage each State receiving commodities under this Act

17 to establish a State advisory board consisting of represent18 atives of all interested entities, both public and private,

19 in the distribution of commodities received under this Act

20 in the State.’’.

21 (c) AUTHORIZATION OF APPROPRIATIONS FOR AD22 MINISTRATIVE FUNDS.—Section 204(a)(1) of the Act (7

23 U.S.C. 612c note) is amended—

24 (1) in the first sentence by striking ‘‘for State

25 and local’’ and all that follows through ‘‘under this
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1 title’’ and inserting ‘‘to pay for the direct and indi2 rect administrative costs of the State related to the

3 processing, transporting, and distributing to eligible

4 recipient agencies of commodities provided by the

5 Secretary under this Act and commodities secured

6 from other sources’’; and

7 (2) by striking the fourth sentence.

8 (d) DELIVERY OF COMMODITIES.—Section 214 of the

9 Act (7 U.S.C. 612c note) is amended—

10 (1) by striking subsections (a) through (e) and

11 (j);

12 (2) by redesignating subsections (f) through (i)

13 as subsections (a) through (d), respectively;

14 (3) in subsection (b), as redesignated by para15 graph (2)—

16 (A) in the first sentence, by striking ‘‘sub17 section (f) or subsection (j) if applicable,’’ and

18 inserting ‘‘subsection (a)’’; and

19 (B) in the second sentence, by striking

20 ‘‘subsection (f)’’ and inserting ‘‘subsection (a)’’;

21 (4) by striking subsection (c), as redesignated

22 by paragraph (2), and inserting the following:

23 ‘‘(c) ADMINISTRATION.—

24 ‘‘(1) IN GENERAL.—Commodities made avail25 able for each fiscal year under this section shall be
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1 delivered at reasonable intervals to States based on

2 the grants calculated under subsection (a), or reallo3 cated under subsection (b), before December 31 of

4 the following fiscal year.

5 ‘‘(2) ENTITLEMENT.—Each State shall be enti6 tled to receive the value of additional commodities

7 determined under subsection (a).’’; and

8 (5) in subsection (d), as redesignated by para9 graph (2), by striking ‘‘or reduce’’ and all that fol10 lows through ‘‘each fiscal year’’.

11 (e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C.

12 612c note) is amended—

13 (1) in the first sentence of section 203B(a), by

14 striking ‘‘203 and 203A of this Act’’ and inserting

15 ‘‘203A’’;

16 (2) in section 204(a), by striking ‘‘title’’ each

17 place it appears and inserting ‘‘Act’’;

18 (3) in the first sentence of section 210(e), by

19 striking ‘‘(except as otherwise provided for in section

20 214(j))’’; and

21 (4) by striking section 212.

22 (f) REPORT ON EFAP.—Section 1571 of the Food

23 Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c

24 note) is repealed.
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1 (g) AVAILABILITY OF COMMODITIES UNDER THE

2 FOOD STAMP PROGRAM.—The Food Stamp Act of 1977

3 (7 U.S.C. 2011 et seq.), as amended by sections 1062 and

4 1063, is amended by adding at the end the following:

5 ‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER6 GENCY FOOD ASSISTANCE PROGRAM.

7 ‘‘(a) PURCHASE OF COMMODITIES.—From amounts

8 appropriated under this Act, for each of fiscal years 1997

9 through 2002, the Secretary shall purchase $300,000,000

10 of a variety of nutritious and useful commodities of the

11 types that the Secretary has the authority to acquire

12 through the Commodity Credit Corporation or under sec13 tion 32 of the Act entitled ‘An Act to amend the Agricul14 tural Adjustment Act, and for other purposes’, approved

15 August 24, 1935 (7 U.S.C. 612c), and distribute the com16 modities to States for distribution in accordance with sec17 tion 214 of the Emergency Food Assistance Act of 1983

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

19 ‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur20 chasing commodities under subsection (a), the Secretary

21 shall, to the extent practicable and appropriate, make pur22 chases based on—

23 ‘‘(1) agricultural market conditions;

24 ‘‘(2) preferences and needs of States and dis25 tributing agencies; and
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1 ‘‘(3) preferences of recipients.’’.

2 (h) EFFECTIVE DATE.—The amendments made by

3 subsection (d) shall become effective on October 1, 1996.

4 SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.

5 Section 3 of the Charitable Assistance and Food

6 Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c

7 note) is repealed.

8 SEC. 1073. HUNGER PREVENTION PROGRAMS.

9 The Hunger Prevention Act of 1988 (Public Law

10 100–435; 7 U.S.C. 612c note) is amended—

11 (1) by striking section 110;

12 (2) by striking subtitle C of title II; and

13 (3) by striking section 502.

14 SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROC15 ESSING.

16 Section 1773 of the Food, Agriculture, Conservation,

17 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

18 612c note) is amended by striking subsection (f).

19 Subtitle C—Electronic Benefit

20 Transfer Systems

21 SEC. 1091. PROVISIONS TO ENCOURAGE ELECTRONIC BEN22 EFIT TRANSFER SYSTEMS.

23 Section 904 of the Electronic Fund Transfer Act (15

24 U.S.C. 1693b) is amended—
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1 (1) by striking ‘‘(d) In the event’’ and inserting

2 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS

3 OTHER THAN CERTAIN FINANCIAL INSTITU4 TIONS.—

5 ‘‘(1) IN GENERAL.—In the event’’; and

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

7 paragraph:

8 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC9 TRONIC BENEFIT TRANSFER PROGRAMS.—

10 ‘‘(A) EXEMPTION GENERALLY.—The dis11 closures, protections, responsibilities, and rem12 edies established under this title, and any regu13 lation prescribed or order issued by the Board

14 in accordance with this title, shall not apply to

15 any electronic benefit transfer program estab16 lished under State or local law or administered

17 by a State or local government.

18 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

19 INTO RECIPIENT’S ACCOUNT.—Subparagraph

20 (A) shall not apply with respect to any elec21 tronic funds transfer under an electronic benefit

22 transfer program for deposits directly into a

23 consumer account held by the recipient of the

24 benefit.
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1 ‘‘(C) RULE OF CONSTRUCTION.—No provi2 sion of this paragraph may be construed as—

3 ‘‘(i) affecting or altering the protec4 tions otherwise applicable with respect to

5 benefits established by Federal, State, or

6 local law; or

7 ‘‘(ii) otherwise superseding the appli8 cation of any State or local law.

9 ‘‘(D) ELECTRONIC BENEFIT TRANSFER

10 PROGRAM DEFINED.—For purposes of this

11 paragraph, the term ‘electronic benefit transfer

12 program’—

13 ‘‘(i) means a program under which a

14 government agency distributes needs-tested

15 benefits by establishing accounts to be

16 accessed by recipients electronically, such

17 as through automated teller machines, or

18 point-of-sale terminals; and

19 ‘‘(ii) does not include employment-re20 lated payments, including salaries and pen21 sion, retirement, or unemployment benefits

22 established by Federal, State, or local gov23 ernments.’’.
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1 TITLE II—COMMITTEE ON

2 COMMERCE

3 SEC. 2000. TABLE OF CONTENTS.

4 The table of contents of this title is as follows:

Sec. 2000. Table of contents.

Subtitle A—Involvement of Commerce Committee in Federal Government

Position Reductions

Sec. 2001. Involvement of Commerce Committee in Federal government position reductions.

Subtitle B—Restricting Public Benefits for Aliens

CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS

Sec. 2101. Aliens who are not qualified aliens ineligible for Federal public benefits.

Sec. 2102. Five-year limited eligibility of qualified aliens for Federal meanstested public benefit.

Sec. 2103. Notification.

CHAPTER 2—GENERAL PROVISIONS

Sec. 2111. Definitions.

Sec. 2112. Verification of eligibility for Federal public benefits.

Subtitle C—Energy Assistance

Sec. 2201. Energy assistance.

Subtitle D—Abstinence Education

Sec. 2301. Abstinence education.
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1 Subtitle A—Involvement of Com2 merce Committee in Federal

3 Government Position Reduc4 tions

5 SEC. 2001. INVOLVEMENT OF COMMERCE COMMITTEE IN

6 FEDERAL GOVERNMENT POSITION REDUC7 TIONS.

8 In any provision of law that provides for consultation

9 with (or a report to) a relevant committee of Congress

10 respecting reductions in Federal Government positions, a

11 reference to the Committee on Commerce of the House

12 of Representatives shall be deemed to have been made in

13 relation to matters within the jurisdiction of such Commit14 tee.

15 Subtitle B—Restricting Public

16 Benefits for Aliens

17 CHAPTER 1—ELIGIBILITY FOR FEDERAL

18 BENEFITS

19 SEC. 2101. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI20 GIBLE FOR FEDERAL PUBLIC BENEFITS.

21 (a) IN GENERAL.—Notwithstanding any other provi22 sion of law and except as provided in subsection (b), an

23 alien who is not a qualified alien (as defined in section

24 2111) is not eligible for any Federal public benefit (as de25 fined in subsection (c)).
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1 (b) EXCEPTIONS.—Subsection (a) shall not apply

2 with respect to the following Federal public benefits:

3 (1) Emergency medical services under title XIX

4 of the Social Security Act.

5 (2)(A) Public health assistance for immuniza6 tions.

7 (B) Public health assistance for testing and

8 treatment of a serious communicable disease if the

9 Secretary of Health and Human Services determines

10 that it is necessary to prevent the spread of such

11 disease.

12 (c) FEDERAL PUBLIC BENEFIT DEFINED.—

13 (1) Except as provided in paragraph (2), for

14 purposes of this part, the term ‘‘Federal public ben15 efit’’ means—

16 (A) any grant, contract, loan, professional

17 license, or commercial license provided by an

18 agency of the United States or by appropriated

19 funds of the United States; and

20 (B) any retirement, welfare, health, dis21 ability, or any other similar benefit for which

22 payments or assistance are provided to an indi23 vidual, household, or family eligibility unit by

24 an agency of the United States or by appro25 priated funds of the United States,
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1 but only if such grant, contract, loan, or license

2 under subparagraph (A) or program providing bene3 fits under subparagraph (B) is under the jurisdic4 tion of the Committee on Commerce of the House of

5 Representatives.

6 (2) Such term shall not apply—

7 (A) to any contract, professional license, or

8 commercial license for a nonimmigrant whose

9 visa for entry is related to such employment in

10 the United States; or

11 (B) with respect to benefits for an alien

12 who as a work authorized nonimmigrant or as

13 an alien lawfully admitted for permanent resi14 dence under the Immigration and Nationality

15 Act qualified for such benefits and for whom

16 the United States under reciprocal treaty agree17 ments is required to pay benefits, as determined

18 by the Attorney General, after consultation with

19 the Secretary of State.

20 SEC. 2102. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

21 ALIENS FOR FEDERAL MEANS-TESTED PUB22 LIC BENEFIT.

23 (a) IN GENERAL.—Notwithstanding any other provi24 sion of law and except as provided in subsection (b), an

25 alien who is a qualified alien (as defined in section 2111)
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1 and who enters the United States on or after the date

2 of the enactment of this Act is not eligible for any Federal

3 means-tested public benefit (as defined in subsection (c))

4 for a period of five years beginning on the date of the

5 alien’s entry into the United States with a status within

6 the meaning of the term ‘‘qualified alien’’.

7 (b) EXCEPTIONS.—The limitation under subsection

8 (a) shall not apply to the following aliens:

9 (1) EXCEPTION FOR REFUGEES AND

10 ASYLEES.—

11 (A) An alien who is admitted to the United

12 States as a refugee under section 207 of the

13 Immigration and Nationality Act.

14 (B) An alien who is granted asylum under

15 section 208 of such Act.

16 (C) An alien whose deportation is being

17 withheld under section 243(h) of such Act.

18 (2) VETERAN AND ACTIVE DUTY EXCEPTION.—

19 An alien who is lawfully residing in any State and

20 is—

21 (A) a veteran (as defined in section 101 of

22 title 38, United States Code) with a discharge

23 characterized as an honorable discharge and not

24 on account of alienage,
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1 (B) on active duty (other than active duty

2 for training) in the Armed Forces of the United

3 States, or

4 (C) the spouse or unmarried dependent

5 child of an individual described in subparagraph

6 (A) or (B).

7 (c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE8 FINED.—

9 (1) Except as provided in paragraph (2), for

10 purposes of this part, the term ‘‘Federal means-test11 ed public benefit’’ means a Federal public benefit

12 described in section 2101(c) in which the eligibility

13 of an individual, household, or family eligibility unit

14 for benefits, or the amount of such benefits, or both

15 are determined on the basis of income, resources, or

16 financial need of the individual, household, or unit.

17 (2) Such term does not include the following:

18 (A) Emergency medical services under title

19 XIX of the Social Security Act.

20 (B)(i) Public health assistance for immuni21 zations.

22 (ii) Public health assistance for testing and

23 treatment of a serious communicable disease if

24 the Secretary of Health and Human Services
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1 determines that it is necessary to prevent the

2 spread of such disease.

3 SEC. 2103. NOTIFICATION.

4 Each Federal agency that administers a program to

5 which section 2101 or 2102 applies shall, directly or

6 through the States, post information and provide general

7 notification to the public and to program recipients of the

8 changes regarding eligibility for any such program pursu9 ant to this subpart.

10 CHAPTER 2—GENERAL PROVISIONS

11 SEC. 2111. DEFINITIONS.

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

13 this part, the terms used in this part have the same mean14 ing given such terms in section 101(a) of the Immigration

15 and Nationality Act.

16 (b) QUALIFIED ALIEN.—For purposes of this part,

17 the term ‘‘qualified alien’’ means an alien who, at the time

18 the alien applies for, receives, or attempts to receive a

19 Federal public benefit, is—

20 (1) an alien who is lawfully admitted for perma21 nent residence under the Immigration and National22 ity Act,

23 (2) an alien who is granted asylum under sec24 tion 208 of such Act,
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1 (3) a refugee who is admitted to the United

2 States under section 207 of such Act,

3 (4) an alien who is paroled into the United

4 States under section 212(d)(5) of such Act for a pe5 riod of at least 1 year,

6 (5) an alien whose deportation is being withheld

7 under section 243(h) of such Act, or

8 (6) an alien who is granted conditional entry

9 pursuant to section 203(a)(7) of such Act as in ef10 fect prior to April 1, 1980.

11 SEC. 2112. VERIFICATION OF ELIGIBILITY FOR FEDERAL

12 PUBLIC BENEFITS.

13 (a) IN GENERAL.—Not later than 18 months after

14 the date of the enactment of this Act, the Attorney Gen15 eral of the United States, after consultation with the Sec16 retary of Health and Human Services, shall promulgate

17 regulations requiring verification that a person applying

18 for a Federal public benefit (as defined in section

19 2101(c)), to which the limitation under section 2101 ap20 plies, is a qualified alien and is eligible to receive such

21 benefit. Such regulations shall, to the extent feasible, re22 quire that information requested and exchanged be similar

23 in form and manner to information requested and ex24 changed under section 1137 of the Social Security Act.
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1 (b) STATE COMPLIANCE.—Not later than 24 months

2 after the date the regulations described in subsection (a)

3 are adopted, a State that administers a program that pro4 vides a Federal public benefit shall have in effect a ver5 ification system that complies with the regulations.

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated such sums as may be

8 necessary to carry out the purpose of this section.

9 Subtitle C—Energy Assistance

10 SEC. 2201. ENERGY ASSISTANCE.

11 Section 2605(f) of the Low-Income Home Energy As12 sistance Act of 1981 (42 U.S.C. 8624(f)) is amended—

13 (1) by striking ‘‘(f)(1) Notwithstanding’’ and

14 inserting ‘‘(f) Notwithstanding’’; and

15 (2) by striking paragraph (2).

16 Subtitle D—Abstinence Education

17 SEC. 2301. ABSTINENCE EDUCATION.

18 (a) INCREASES IN FUNDING.—Section 501(a) of the

19 Social Security Act (42 U.S.C. 701(a)) is amended in the

20 matter preceding paragraph (1) by striking ‘‘Fiscal year

21 1990 and each fiscal year thereafter’’ and inserting ‘‘Fis22 cal years 1990 through 1995 and $761,000,000 for fiscal

23 year 1996 and each fiscal year thereafter’’.

24 (b) ABSTINENCE EDUCATION.—Section 501(a)(1) of

25 such Act (42 U.S.C. 701(a)(1)) is amended—
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1 (1) in subparagraph (C), by striking ‘‘and’’ at

2 the end;

3 (2) in subparagraph (D), by adding ‘‘and’’ at

4 the end; and

5 (3) by adding at the end the following new sub6 paragraph:

7 ‘‘(E) to provide abstinence education, and

8 at the option of the State, where appropriate,

9 mentoring, counseling, and adult supervision to

10 promote abstinence from sexual activity, with a

11 focus on those groups which are most likely to

12 bear children out-of-wedlock.’’.

13 (c) ABSTINENCE EDUCATION DEFINED.—Section

14 501(b) of such Act (42 U.S.C. 701(b)) is amended by add15 ing at the end the following new paragraph:

16 ‘‘(5) ABSTINENCE EDUCATION.—For purposes

17 of this subsection, the term ‘abstinence education’

18 means an educational or motivational program

19 which—

20 ‘‘(A) has as its exclusive purpose, teaching

21 the social, psychological, and health gains to be

22 realized by abstaining from sexual activity;

23 ‘‘(B) teaches abstinence from sexual activ24 ity outside marriage as the expected standard

25 for all school age children;
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1 ‘‘(C) teaches that abstinence from sexual

2 activity is the only certain way to avoid out-of3 wedlock pregnancy, sexually transmitted dis4 eases, and other associated health problems;

5 ‘‘(D) teaches that a mutually faithful

6 monogamous relationship in context of marriage

7 is the expected standard of human sexual activ8 ity;

9 ‘‘(E) teaches that sexual activity outside of

10 the context of marriage is likely to have harm11 ful psychological and physical effects;

12 ‘‘(F) teaches that bearing children out-of13 wedlock is likely to have harmful consequences

14 for the child, the child’s parents, and society;

15 ‘‘(G) teaches young people how to reject

16 sexual advances and how alcohol and drug use

17 increases vulnerability to sexual advances; and

18 ‘‘(H) teaches the importance of attaining

19 self-sufficiency before engaging in sexual activ20 ity.’’.

21 (d) SET-ASIDE.—

22 (1) IN GENERAL.—Section 502(c) of such Act

23 (42 U.S.C. 702(c)) is amended in the matter preced24 ing paragraph (1) by striking ‘‘From’’ and inserting

25 ‘‘Except as provided in subsection (e), from’’.
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1 (2) SET-ASIDE.—Section 502 of such Act (42

2 U.S.C. 702) is amended by adding at the end the

3 following new subsection:

4 ‘‘(e) Of the amounts appropriated under section

5 501(a) for any fiscal year, the Secretary shall set aside

6 $75,000,000 for abstinence education in accordance with

7 section 501(a)(1)(E).’’.

8 TITLE III—COMMITTEE ON ECO9 NOMIC AND EDUCATIONAL

10 OPPORTUNITIES

11 SEC. 3001. SHORT TITLE.

12 This title may be cited as the ‘‘Personal Responsibil13 ity and Work Opportunity Act of 1996’’.

14 SEC. 3002. TABLE OF CONTENTS.

15 The table of contents of this title is as follows:

Sec. 3001. Short title.

Sec. 3002. Table of contents.

Subtitle A—Child Care

Sec. 3101. Short title and references.

Sec. 3102. Goals.

Sec. 3103. Authorization of appropriations and entitlement authority.

Sec. 3104. Lead agency.

Sec. 3105. Application and plan.

Sec. 3106. Limitation on State allotments.

Sec. 3107. Activities to improve the quality of child care.

Sec. 3108. Repeal of early childhood development and before- and after-school

care requirement.

Sec. 3109. Administration and enforcement.

Sec. 3110. Payments.

Sec. 3111. Annual report and audits.

Sec. 3112. Report by the Secretary.

Sec. 3113. Allotments.

Sec. 3114. Definitions.

Sec. 3115. Repeals.

Sec. 3116. Effective date.
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Subtitle B—Child Nutrition Programs

CHAPTER 1—NATIONAL SCHOOL LUNCH ACT

Sec. 3201. State disbursement to schools.

Sec. 3202. Nutritional and other program requirements.

Sec. 3203. Free and reduced price policy statement.

Sec. 3204. Special assistance.

Sec. 3205. Miscellaneous provisions and definitions.

Sec. 3206. Summer food service program for children.

Sec. 3207. Commodity distribution.

Sec. 3208. Child care food program.

Sec. 3209. Pilot projects.

Sec. 3210. Reduction of paperwork.

Sec. 3211. Information on income eligibility.

Sec. 3212. Nutrition guidance for child nutrition programs.

Sec. 3213. Information clearinghouse.

CHAPTER 2—CHILD NUTRITION ACT OF 1966

Sec. 3221. Special milk program.

Sec. 3222. Free and reduced price policy statement.

Sec. 3223. School breakfast program authorization.

Sec. 3224. State administrative expenses.

Sec. 3225. Regulations.

Sec. 3226. Prohibitions.

Sec. 3227. Miscellaneous provisions and definitions.

Sec. 3228. Accounts and records.

Sec. 3229. Special supplemental nutrition program for women, infants, and

children.

Sec. 3230. Cash grants for nutrition education.

Sec. 3231. Nutrition education and training.

CHAPTER 3—MISCELLANEOUS PROVISIONS

Sec. 3241. Coordination of school lunch, school breakfast, and summer food

service programs.

Subtitle C—Related Provisions

Sec. 3301. Requirement that data relating to the incidence of poverty in the

United States be published at least every 2 years.

Sec. 3302. Sense of the Congress.

Sec. 3303. Legislative accountability.

1 Subtitle A—Child Care

2 SEC. 3101. SHORT TITLE AND REFERENCES.

3 (a) SHORT TITLE.—This subtitle may be cited as the

4 ‘‘Child Care and Development Block Grant Amendments

5 of 1996’’.
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1 (b) REFERENCES.—Except as otherwise expressly

2 provided, whenever in this subtitle an amendment or re3 peal is expressed in terms of an amendment to, or repeal

4 of, a section or other provision, the reference shall be con5 sidered to be made to a section or other provision of the

6 Child Care and Development Block Grant Act of 1990 (42

7 U.S.C. 9858 et seq.).

8 SEC. 3102. GOALS.

9 Section 658A (42 U.S.C. 9801 note) is amended—

10 (1) in the section heading by inserting ‘‘AND

11 GOALS’’ after ‘‘TITLE’’;

12 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

13 ‘‘This’’; and

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

15 ‘‘(b) GOALS.—The goals of this subchapter are—

16 ‘‘(1) to allow each State maximum flexibility in

17 developing child care programs and policies that best

18 suit the needs of children and parents within such

19 State;

20 ‘‘(2) to promote parental choice to empower

21 working parents to make their own decisions on the

22 child care that best suits their family’s needs;

23 ‘‘(3) to encourage States to provide consumer

24 education information to help parents make in25 formed choices about child care;
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1 ‘‘(4) to assist States to provide child care to

2 parents trying to achieve independence from public

3 assistance; and

4 ‘‘(5) to assist States in implementing the

5 health, safety, licensing, and registration standards

6 established in State regulations.’’.

7 SEC. 3103. AUTHORIZATION OF APPROPRIATIONS AND EN8 TITLEMENT AUTHORITY.

9 (a) IN GENERAL.—Section 658B (42 U.S.C. 9858)

10 is amended to read as follows:

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

12 ‘‘There is authorized to be appropriated to carry out

13 this subchapter $1,000,000,000 for each of the fiscal

14 years 1996 through 2002.’’.

15 (b) SOCIAL SECURITY ACT.—Part A of title IV of

16 the Social Security Act (42 U.S.C. 601–617) is amended

17 by adding at the end the following new section:

18 ‘‘SEC. 418. FUNDING FOR CHILD CARE.

19 ‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—

20 ‘‘(1) GENERAL ENTITLEMENT.—Subject to the

21 amount appropriated under paragraph (3), each

22 State shall, for the purpose of providing child care

23 assistance, be entitled to payments under a grant

24 under this subsection for a fiscal year in an amount

25 equal to—
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1 ‘‘(A) the sum of the total amount required

2 to be paid to the State under section 403 for

3 fiscal year 1994 or 1995 (whichever is greater)

4 with respect to amounts expended for child care

5 under section—

6 ‘‘(i) 402(g) of this Act (as such sec7 tion was in effect before October 1, 1995);

8 and

9 ‘‘(ii) 402(i) of this Act (as so in ef10 fect); or

11 ‘‘(B) the average of the total amounts re12 quired to be paid to the State for fiscal years

13 1992 through 1994 under the sections referred

14 to in subparagraph (A);

15 whichever is greater.

16 ‘‘(2) REMAINDER.—

17 ‘‘(A) GRANTS.—The Secretary shall use

18 any amounts appropriated for a fiscal year

19 under paragraph (3), and remaining after the

20 reservation described in paragraph (4) and

21 after grants are awarded under paragraph (1),

22 to make grants to States under this paragraph.

23 ‘‘(B) AMOUNT.—Subject to subparagraph

24 (C), the amount of a grant awarded to a State

25 for a fiscal year under this paragraph shall be
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1 based on the formula used for determining the

2 amount of Federal payments to the State under

3 section 403(n) (as such section was in effect be4 fore October 1, 1995).

5 ‘‘(C) MATCHING REQUIREMENT.—The Sec6 retary shall pay to each eligible State in a fiscal

7 year an amount, under a grant under subpara8 graph (A), equal to the Federal medical assist9 ance percentage for such State for fiscal year

10 1995 (as defined in section 1905(b)) of so

11 much of the expenditures by the State for child

12 care in such year as exceed the State set-aside

13 for such State under paragraph (1)(A) for such

14 year and the amount of State expenditures in

15 fiscal year 1994 or 1995 (whichever is greater)

16 that equal the non-Federal share for the pro17 grams described in subparagraph (A) of para18 graph (1).

19 ‘‘(D) REDISTRIBUTION.—

20 ‘‘(i) IN GENERAL.—With respect to

21 any fiscal year, if the Secretary determines

22 (in accordance with clause (ii)) that

23 amounts under any grant awarded to a

24 State under this paragraph for such fiscal

25 year will not be used by such State during
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1 such fiscal year for carrying out the pur2 pose for which the grant is made, the Sec3 retary shall make such amounts available

4 in the subsequent fiscal year for carrying

5 out such purpose to 1 or more States

6 which apply for such funds to the extent

7 the Secretary determines that such States

8 will be able to use such additional amounts

9 for carrying out such purpose. Such avail10 able amounts shall be redistributed to a

11 State pursuant to section 402(i) (as such

12 section was in effect before October 1,

13 1995) by substituting ‘the number of chil14 dren residing in all States applying for

15 such funds’ for ‘the number of children re16 siding in the United States in the second

17 preceding fiscal year’.

18 ‘‘(ii) TIME OF DETERMINATION AND

19 DISTRIBUTION.—The determination of the

20 Secretary under clause (i) for a fiscal year

21 shall be made not later than the end of the

22 first quarter of the subsequent fiscal year.

23 The redistribution of amounts under clause

24 (i) shall be made as close as practicable to

25 the date on which such determination is
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1 made. Any amount made available to a

2 State from an appropriation for a fiscal

3 year in accordance with this subparagraph

4 shall, for purposes of this part, be re5 garded as part of such State’s payment (as

6 determined under this subsection) for the

7 fiscal year in which the redistribution is

8 made.

9 ‘‘(3) APPROPRIATION.—For grants under this

10 section, there are appropriated—

11 ‘‘(A) $1,967,000,000 for fiscal year 1997;

12 ‘‘(B) $2,067,000,000 for fiscal year 1998;

13 ‘‘(C) $2,167,000,000 for fiscal year 1999;

14 ‘‘(D) $2,367,000,000 for fiscal year 2000;

15 ‘‘(E) $2,567,000,000 for fiscal year 2001;

16 and

17 ‘‘(F) $2,717,000,000 for fiscal year 2002.

18 ‘‘(4) INDIAN TRIBES.—The Secretary shall re19 serve not more than 1 percent of the aggregate

20 amount appropriated to carry out this section in

21 each fiscal year for payments to Indian tribes and

22 tribal organizations.

23 ‘‘(b) USE OF FUNDS.—

24 ‘‘(1) IN GENERAL.—Amounts received by a

25 State under this section shall only be used to provide
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1 child care assistance. Amounts received by a State

2 under a grant under subsection (a)(1) shall be avail3 able for use by the State without fiscal year limita4 tion.

5 ‘‘(2) USE FOR CERTAIN POPULATIONS.—A

6 State shall ensure that not less than 70 percent of

7 the total amount of funds received by the State in

8 a fiscal year under this section are used to provide

9 child care assistance to families who are receiving

10 assistance under a State program under this part,

11 families who are attempting through work activities

12 to transition off of such assistance program, and

13 families who are at risk of becoming dependent on

14 such assistance program.

15 ‘‘(c) APPLICATION OF CHILD CARE AND DEVELOP16 MENT BLOCK GRANT ACT of 1990.—Notwithstanding any

17 other provision of law, amounts provided to a State under

18 this section shall be transferred to the lead agency under

19 the Child Care and Development Block Grant Act of 1990,

20 integrated by the State into the programs established by

21 the State under such Act, and be subject to requirements

22 and limitations of such Act.

23 ‘‘(d) DEFINITION.—As used in this section, the term

24 ‘State’ means each of the 50 States or the District of Co25 lumbia.’’.
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1 SEC. 3104. LEAD AGENCY.

2 Section 658D(b) (42 U.S.C. 9858b(b)) is amended—

3 (1) in paragraph (1)—

4 (A) in subparagraph (A), by striking

5 ‘‘State’’ the first place that such appears and

6 inserting ‘‘governmental or nongovernmental’’;

7 and

8 (B) in subparagraph (C), by inserting

9 ‘‘with sufficient time and Statewide distribution

10 of the notice of such hearing,’’ after ‘‘hearing in

11 the State’’; and

12 (2) in paragraph (2), by striking the second

13 sentence.

14 SEC. 3105. APPLICATION AND PLAN.

15 Section 658E (42 U.S.C. 9858c) is amended—

16 (1) in subsection (b)—

17 (A) by striking ‘‘implemented—’’ and all

18 that follows through ‘‘(2)’’ and inserting ‘‘im19 plemented’’; and

20 (B) by striking ‘‘for subsequent State

21 plans’’;

22 (2) in subsection (c)—

23 (A) in paragraph (2)—

24 (i) in subparagraph (A)—
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1 (I) in clause (i) by striking ‘‘,

2 other than through assistance pro3 vided under paragraph (3)(C),’’; and

4 (II) by striking ‘‘except’’ and all

5 that follows through ‘‘1992’’, and in6 serting ‘‘and provide a detailed de7 scription of the procedures the State

8 will implement to carry out the re9 quirements of this subparagraph’’;

10 (ii) in subparagraph (B)—

11 (I) by striking ‘‘Provide assur12 ances’’ and inserting ‘‘Certify’’; and

13 (II) by inserting before the pe14 riod at the end ‘‘and provide a de15 tailed description of such procedures’’;

16 (iii) in subparagraph (C)—

17 (I) by striking ‘‘Provide assur18 ances’’ and inserting ‘‘Certify’’; and

19 (II) by inserting before the pe20 riod at the end ‘‘and provide a de21 tailed description of how such record

22 is maintained and is made available’’;

23 (iv) by amending subparagraph (D) to

24 read as follows:
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1 ‘‘(D) CONSUMER EDUCATION INFORMA2 TION.—Certify that the State will collect and

3 disseminate to parents of eligible children and

4 the general public, consumer education informa5 tion that will promote informed child care

6 choices.’’;

7 (v) in subparagraph (E), to read as

8 follows:

9 ‘‘(E) COMPLIANCE WITH STATE LICENSING

10 REQUIREMENTS.—

11 ‘‘(i) IN GENERAL.—Certify that the

12 State has in effect licensing requirements

13 applicable to child care services provided

14 within the State, and provide a detailed de15 scription of such requirements and of how

16 such requirements are effectively enforced.

17 Nothing in the preceding sentence shall be

18 construed to require that licensing require19 ments be applied to specific types of pro20 viders of child care services.

21 ‘‘(ii) INDIAN TRIBES AND TRIBAL OR22 GANIZATIONS.—In lieu of any licensing

23 and regulatory requirements applicable

24 under State and local law, the Secretary,

25 in consultation with Indian tribes and trib-
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1 al organizations, shall develop minimum

2 child care standards (that appropriately re3 flect tribal needs and available resources)

4 that shall be applicable to Indian tribes

5 and tribal organization receiving assistance

6 under this subchapter.’’;

7 (vi) in subparagraph (G) by striking

8 ‘‘Provide assurances’’ and inserting ‘‘Cer9 tify’’; and

10 (vii) by striking subparagraphs (H),

11 (I), and (J) and inserting the following:

12 ‘‘(H) MEETING THE NEEDS OF CERTAIN

13 POPULATIONS.—Demonstrate the manner in

14 which the State will meet the specific child care

15 needs of families who are receiving assistance

16 under a State program under part A of title IV

17 of the Social Security Act, families who are at18 tempting through work activities to transition

19 off of such assistance program, and families

20 that are at risk of becoming dependent on such

21 assistance program.’’;

22 (B) in paragraph (3)—

23 (i) in subparagraph (A), by striking

24 ‘‘(B) and (C)’’ and inserting ‘‘(B) through

25 (D)’’;
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1 (ii) in subparagraph (B)—

2 (I) by striking ‘‘.—Subject to the

3 reservation contained in subparagraph

4 (C), the’’ and inserting ‘‘AND RELAT5 ED ACTIVITIES.—The’’;

6 (II) in clause (i) by striking ‘‘;

7 and’’ at the end and inserting a pe8 riod;

9 (III) by striking ‘‘for—’’ and all

10 that follows through ‘‘section

11 658E(c)(2)(A)’’ and inserting ‘‘for

12 child care services on sliding fee scale

13 basis, activities that improve the qual14 ity or availability of such services, and

15 any other activity that the State

16 deems appropriate to realize any of

17 the goals specified in paragraphs (2)

18 through (5) of section 658A(b)’’; and

19 (IV) by striking clause (ii);

20 (iii) by amending subparagraph (C) to

21 read as follows:

22 ‘‘(C) LIMITATION ON ADMINISTRATIVE

23 COSTS.—Not more than 5 percent of the aggre24 gate amount of funds available to the State to

25 carry out this subchapter by a State in each fis-
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1 cal year may be expended for administrative

2 costs incurred by such State to carry out all of

3 its functions and duties under this subchapter.

4 As used in the preceding sentence, the term

5 ‘administrative costs’ shall not include the costs

6 of providing direct services.’’; and

7 (iv) by adding at the end thereof the

8 following:

9 ‘‘(D) ASSISTANCE FOR CERTAIN FAMI10 LIES.—A State shall ensure that a substantial

11 portion of the amounts available (after the

12 State has complied with the requirement of sec13 tion 418(b)(2) of the Social Security Act with

14 respect to each of the fiscal years 1997 through

15 2002) to the State to carry out activities under

16 this subchapter in each fiscal year is used to

17 provide assistance to low-income working fami18 lies other than families described in paragraph

19 (2)(H).’’; and

20 (C) in paragraph (4)(A)—

21 (i) by striking ‘‘provide assurances’’

22 and inserting ‘‘certify’’;

23 (ii) in the first sentence by inserting

24 ‘‘and shall provide a summary of the facts

25 relied on by the State to determine that
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1 such rates are sufficient to ensure such ac2 cess’’ before the period; and

3 (iii) by striking the last sentence.

4 SEC. 3106. LIMITATION ON STATE ALLOTMENTS.

5 Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is

6 amended by striking ‘‘No’’ and inserting ‘‘Except as pro7 vided for in section 658O(c)(6), no’’.

8 SEC. 3107. ACTIVITIES TO IMPROVE THE QUALITY OF

9 CHILD CARE.

10 Section 658G (42 U.S.C. 9858e) is amended to read

11 as follows:

12 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF

13 CHILD CARE.

14 ‘‘A State that receives funds to carry out this sub15 chapter for a fiscal year, shall use not less than 4 percent

16 of the amount of such funds for activities that are de17 signed to provide comprehensive consumer education to

18 parents and the public, activities that increase parental

19 choice, and activities designed to improve the quality and

20 availability of child care (such as resource and referral

21 services).’’.

22 SEC. 3108. REPEAL OF EARLY CHILDHOOD DEVELOPMENT

23 AND BEFORE- AND AFTER-SCHOOL CARE RE24 QUIREMENT.

25 Section 658H (42 U.S.C. 9858f) is repealed.
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1 SEC. 3109. ADMINISTRATION AND ENFORCEMENT.

2 Section 658I(b) (42 U.S.C. 9858g(b)) is amended—

3 (1) in paragraph (1), by striking ‘‘, and shall

4 have’’ and all that follows through ‘‘(2)’’; and

5 (2) in the matter following clause (ii) of para6 graph (2)(A), by striking ‘‘finding and that’’ and all

7 that follows through the period and inserting ‘‘find8 ing and shall require that the State reimburse the

9 Secretary for any funds that were improperly ex10 pended for purposes prohibited or not authorized by

11 this subchapter, that the Secretary deduct from the

12 administrative portion of the State allotment for the

13 following fiscal year an amount that is less than or

14 equal to any improperly expended funds, or a com15 bination of such options.’’.

16 SEC. 3110. PAYMENTS.

17 Section 658J(c) (42 U.S.C. 9858h(c)) is amended by

18 striking ‘‘expended’’ and inserting ‘‘obligated’’.

19 SEC. 3111. ANNUAL REPORT AND AUDITS.

20 Section 658K (42 U.S.C. 9858i) is amended—

21 (1) in the section heading by striking ‘‘ANNUAL

22 REPORT’’ and inserting ‘‘REPORTS’’;

23 (2) in subsection (a), to read as follows:

24 ‘‘(a) REPORTS.—

25 ‘‘(1) COLLECTION OF INFORMATION BY

26 STATES.—
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1 ‘‘(A) IN GENERAL.—A State that receives

2 funds to carry out this subchapter shall collect

3 the information described in subparagraph (B)

4 on a monthly basis.

5 ‘‘(B) REQUIRED INFORMATION.—The in6 formation required under this subparagraph

7 shall include, with respect to a family unit re8 ceiving assistance under this subchapter infor9 mation concerning—

10 ‘‘(i) family income;

11 ‘‘(ii) county of residence;

12 ‘‘(iii) the gender, race, and age of

13 children receiving such assistance;

14 ‘‘(iv) whether the family includes only

15 1 parent;

16 ‘‘(v) the sources of family income, in17 cluding the amount obtained from (and

18 separately identified)—

19 ‘‘(I) employment, including self20 employment;

21 ‘‘(II) cash or other assistance

22 under part A of title IV of the Social

23 Security Act;

24 ‘‘(III) housing assistance;
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1 ‘‘(IV) assistance under the Food

2 Stamp Act of 1977; and

3 ‘‘(V) other assistance programs;

4 ‘‘(vi) the number of months the family

5 has received benefits;

6 ‘‘(vii) the type of child care in which

7 the child was enrolled (such as family child

8 care, home care, or center-based child

9 care);

10 ‘‘(viii) whether the child care provider

11 involved was a relative;

12 ‘‘(ix) the cost of child care for such

13 families; and

14 ‘‘(x) the average hours per week of

15 such care;

16 during the period for which such information is

17 required to be submitted.

18 ‘‘(C) SUBMISSION TO SECRETARY.—A

19 State described in subparagraph (A) shall, on a

20 quarterly basis, submit the information required

21 to be collected under subparagraph (B) to the

22 Secretary.

23 ‘‘(D) SAMPLING.—The Secretary may dis24 approve the information collected by a State
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1 under this paragraph if the State uses sampling

2 methods to collect such information.

3 ‘‘(2) BIANNUAL REPORTS.—Not later than De4 cember 31, 1997, and every 6 months thereafter, a

5 State described in paragraph (1)(A) shall prepare

6 and submit to the Secretary a report that includes

7 aggregate data concerning—

8 ‘‘(A) the number of child care providers

9 that received funding under this subchapter as

10 separately identified based on the types of pro11 viders listed in section 658P(5);

12 ‘‘(B) the monthly cost of child care serv13 ices, and the portion of such cost that is paid

14 for with assistance provided under this sub15 chapter, listed by the type of child care services

16 provided;

17 ‘‘(C) the number of payments made by the

18 State through vouchers, contracts, cash, and

19 disregards under public benefit programs, listed

20 by the type of child care services provided;

21 ‘‘(D) the manner in which consumer edu22 cation information was provided to parents and

23 the number of parents to whom such informa24 tion was provided; and
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1 ‘‘(E) the total number (without duplica2 tion) of children and families served under this

3 subchapter;

4 during the period for which such report is required

5 to be submitted.’’; and

6 (2) in subsection (b)—

7 (A) in paragraph (1) by striking ‘‘a appli8 cation’’ and inserting ‘‘an application’’;

9 (B) in paragraph (2) by striking ‘‘any

10 agency administering activities that receive’’

11 and inserting ‘‘the State that receives’’; and

12 (C) in paragraph (4) by striking ‘‘entitles’’

13 and inserting ‘‘entitled’’.

14 SEC. 3112. REPORT BY THE SECRETARY.

15 Section 658L (42 U.S.C. 9858j) is amended—

16 (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;

17 (2) by striking ‘‘annually’’ and inserting ‘‘bien18 nially’’; and

19 (3) by striking ‘‘Education and Labor’’ and in20 serting ‘‘Economic and Educational Opportunities’’.

21 SEC. 3113. ALLOTMENTS.

22 Section 658O (42 U.S.C. 9858m) is amended—

23 (1) in subsection (a)—

24 (A) in paragraph (1)
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1 (i) by striking ‘‘POSSESSIONS’’ and in2 serting ‘‘POSSESSIONS’’;

3 (ii) by inserting ‘‘and’’ after

4 ‘‘States,’’; and

5 (iii) by striking ‘‘, and the Trust Ter6 ritory of the Pacific Islands’’; and

7 (B) in paragraph (2), by striking ‘‘3 per8 cent’’ and inserting ‘‘1 percent’’;

9 (2) in subsection (c)—

10 (A) in paragraph (5) by striking ‘‘our’’ and

11 inserting ‘‘out’’; and

12 (B) by adding at the end thereof the fol13 lowing new paragraph:

14 ‘‘(6) CONSTRUCTION OR RENOVATION OF FA15 CILITIES.—

16 ‘‘(A) REQUEST FOR USE OF FUNDS.—An

17 Indian tribe or tribal organization may submit

18 to the Secretary a request to use amounts pro19 vided under this subsection for construction or

20 renovation purposes.

21 ‘‘(B) DETERMINATION.—With respect to a

22 request submitted under subparagraph (A), and

23 except as provided in subparagraph (C), upon a

24 determination by the Secretary that adequate

25 facilities are not otherwise available to an In-
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1 dian tribe or tribal organization to enable such

2 tribe or organization to carry out child care

3 programs in accordance with this subchapter,

4 and that the lack of such facilities will inhibit

5 the operation of such programs in the future,

6 the Secretary may permit the tribe or organiza7 tion to use assistance provided under this sub8 section to make payments for the construction

9 or renovation of facilities that will be used to

10 carry out such programs.

11 ‘‘(C) LIMITATION.—The Secretary may not

12 permit an Indian tribe or tribal organization to

13 use amounts provided under this subsection for

14 construction or renovation if such use will re15 sult in a decrease in the level of child care serv16 ices provided by the tribe or organization as

17 compared to the level of such services provided

18 by the tribe or organization in the fiscal year

19 preceding the year for which the determination

20 under subparagraph (A) is being made.

21 ‘‘(D) UNIFORM PROCEDURES.—The Sec22 retary shall develop and implement uniform

23 procedures for the solicitation and consideration

24 of requests under this paragraph.’’; and
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1 (3) in subsection (e), by adding at the end

2 thereof the following new paragraph:

3 ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZA4 TIONS.—Any portion of a grant or contract made to

5 an Indian tribe or tribal organization under sub6 section (c) that the Secretary determines is not

7 being used in a manner consistent with the provision

8 of this subchapter in the period for which the grant

9 or contract is made available, shall be allotted by the

10 Secretary to other tribes or organizations that have

11 submitted applications under subsection (c) in ac12 cordance with their respective needs.’’.

13 SEC. 3114. DEFINITIONS.

14 Section 658P (42 U.S.C. 9858n) is amended—

15 (1) in paragraph (2), in the first sentence by

16 inserting ‘‘or as a deposit for child care services if

17 such a deposit is required of other children being

18 cared for by the provider’’ after ‘‘child care serv19 ices’’; and

20 (2) by striking paragraph (3);

21 (3) in paragraph (4)(B), by striking ‘‘75 per22 cent’’ and inserting ‘‘85 percent’’;

23 (4) in paragraph (5)(B)—
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1 (A) by inserting ‘‘great grandchild, sibling

2 (if such provider lives in a separate residence),’’

3 after ‘‘grandchild,’’;

4 (B) by striking ‘‘is registered and’’; and

5 (C) by striking ‘‘State’’ and inserting ‘‘ap6 plicable’’.

7 (5) by striking paragraph (10);

8 (6) in paragraph (13)—

9 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and

10 (B) by striking ‘‘, and the Trust Territory

11 of the Pacific Islands’’;

12 (7) in paragraph (14)—

13 (A) by striking ‘‘The term’’ and inserting

14 the following:

15 ‘‘(A) IN GENERAL.—The term’’; and

16 (B) by adding at the end thereof the fol17 lowing new subparagraph:

18 ‘‘(B) OTHER ORGANIZATIONS.—Such term

19 includes a Native Hawaiian Organization, as

20 defined in section 4009(4) of the Augustus F.

21 Hawkins-Robert T. Stafford Elementary and

22 Secondary School Improvement Amendments of

23 1988 (20 U.S.C. 4909(4)) and a private non24 profit organization established for the purpose
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1 of serving youth who are Indians or Native Ha2 waiians.’’.

3 SEC. 3115. REPEALS.

4 (a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

5 ASSISTANCE ACT OF 1985.—Title VI of the Human Serv6 ices Reauthorization Act of 1986 (42 U.S.C. 10901–

7 10905) is repealed.

8 (b) STATE DEPENDENT CARE DEVELOPMENT

9 GRANTS ACT.—Subchapter E of chapter 8 of subtitle A

10 of title VI of the Omnibus Budget Reconciliation Act of

11 1981 (42 U.S.C. 9871–9877) is repealed.

12 (c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title

13 X of the Elementary and Secondary Education Act of

14 1965, as amended by Public Law 103–382 (108 Stat.

15 3809 et seq.), is amended—

16 (1) in section 10413(a) by striking paragraph

17 (4),

18 (2) in section 10963(b)(2) by striking subpara19 graph (G), and

20 (3) in section 10974(a)(6) by striking subpara21 graph (G).

22 (d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION

23 CENTERS.—Section 9205 of the Native Hawaiian Edu24 cation Act (Public Law 103–382; 108 Stat. 3794) is re25 pealed.
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1 (e) CERTAIN CHILD CARE PROGRAMS UNDER THE

2 SOCIAL SECURITY ACT.—

3 (1) AFDC AND TRANSITIONAL CHILD CARE

4 PROGRAMS.—Section 402 of the Social Security Act

5 (42 U.S.C. 602) is amended by striking subsection

6 (g).

7 (2) AT-RISK CHILD CARE PROGRAM.—

8 (A) AUTHORIZATION.—Section 402 of the

9 Social Security Act (42 U.S.C. 602) is amended

10 by striking subsection (i).

11 (B) FUNDING PROVISIONS.—Section 403

12 of the Social Security Act (42 U.S.C. 603) is

13 amended by striking subsection (n).

14 SEC. 3116. EFFECTIVE DATE.

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

16 (b), this subtitle and the amendments made by this sub17 title shall take effect on October 1, 1996.

18 (b) EXCEPTION.—The amendment made by section

19 3303(a) shall take effect on the date of enactment of this

20 Act.
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1 Subtitle B—Child Nutrition

2 Programs

3 CHAPTER 1—NATIONAL SCHOOL LUNCH

4 ACT

5 SEC. 3201. STATE DISBURSEMENT TO SCHOOLS.

6 (a) IN GENERAL.—Section 8 of the National School

7 Lunch Act (42 U.S.C. 1757) is amended—

8 (1) in the third sentence, by striking ‘‘Nothing’’

9 and all that follows through ‘‘educational agency to’’

10 and inserting ‘‘The State educational agency may’’;

11 (2) by striking the fourth and fifth sentences;

12 (3) by redesignating the first through sixth sen13 tences, as amended by paragraph (1), as subsections

14 (a) through (f), respectively;

15 (4) in subsection (b), as redesignated by para16 graph (3), by striking ‘‘the preceding sentence’’ and

17 inserting ‘‘subsection (a)’’; and

18 (5) in subsection (d), as redesignated by para19 graph (3), by striking ‘‘Such food costs’’ and insert20 ing ‘‘Use of funds paid to States’’.

21 (b) DEFINITION OF CHILD.—Section 12(d) of the Act

22 (42 U.S.C. 1760(d)) is amended by adding at the end the

23 following:

24 ‘‘(9) ‘child’ includes an individual, regardless of

25 age, who—
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1 ‘‘(A) is determined by a State educational

2 agency, in accordance with regulations pre3 scribed by the Secretary, to have 1 or more

4 mental or physical disabilities; and

5 ‘‘(B) is attending any institution, as de6 fined in section 17(a), or any nonresidential

7 public or nonprofit private school of high school

8 grade or under, for the purpose of participating

9 in a school program established for individuals

10 with mental or physical disabilities.

11 No institution that is not otherwise eligible to par12 ticipate in the program under section 17 shall be

13 considered eligible because of this paragraph.’’.

14 SEC. 3202. NUTRITIONAL AND OTHER PROGRAM REQUIRE15 MENTS.

16 (a) NUTRITIONAL STANDARDS.—Section 9(a) of the

17 National School Lunch Act (42 U.S.C. 1758(a)) is amend18 ed—

19 (1) in paragraph (2)—

20 (A) by striking ‘‘(2)(A) Lunches’’ and in21 serting ‘‘(2) Lunches’’;

22 (B) by striking subparagraph (B); and

23 (C) by redesignating clauses (i) and (ii) as

24 subparagraphs (A) and (B), respectively;

25 (2) by striking paragraph (3); and
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1 (3) by redesignating paragraph (4) as para2 graph (3).

3 (b) ELIGIBILITY GUIDELINES.—Section 9(b) of the

4 Act is amended—

5 (1) in paragraph (2)—

6 (A) by striking subparagraph (A); and

7 (B) by redesignating subparagraphs (B)

8 and (C) as subparagraphs (A) and (B), respec9 tively;

10 (2) in paragraph (5), by striking the third sen11 tence; and

12 (3) in paragraph (6), by striking ‘‘paragraph

13 (2)(C)’’ and inserting ‘‘paragraph (2)(B)’’.

14 (c) UTILIZATION OF AGRICULTURAL COMMOD15 ITIES.—Section 9(c) of the Act is amended by striking the

16 second, fourth, and sixth sentences.

17 (d) CONFORMING AMENDMENT.—The last sentence

18 of section 9(d)(1) of the Act is amended by striking ‘‘sub19 section (b)(2)(C)’’ and inserting ‘‘subsection (b)(2)(B)’’.

20 (e) NUTRITIONAL INFORMATION.—Section 9(f) of the

21 Act is amended—

22 (1) by striking paragraph (1);

23 (2) by striking ‘‘(2)’’;

24 (3) by redesignating subparagraphs (A) through

25 (D) as paragraphs (1) through (4), respectively;
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1 (4) by striking paragraph (1), as redesignated

2 by paragraph (3), and inserting the following:

3 ‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as

4 provided in paragraph (2), not later than the first

5 day of the 1996–1997 school year, schools that are

6 participating in the school lunch or school breakfast

7 program shall serve lunches and breakfasts under

8 the program that—

9 ‘‘(A) are consistent with the goals of the

10 most recent Dietary Guidelines for Americans

11 published under section 301 of the National

12 Nutrition Monitoring and Related Research Act

13 of 1990 (7 U.S.C. 5341); and

14 ‘‘(B) provide, on the average over each

15 week, at least—

‘‘(i) with respect to school lunches, 1 16 ⁄3

17 of the daily recommended dietary allow18 ance established by the Food and Nutrition

19 Board of the National Research Council of

20 the National Academy of Sciences; and

21 ‘‘(ii) with respect to school breakfasts,

1 22 ⁄4 of the daily recommended dietary allow23 ance established by the Food and Nutrition

24 Board of the National Research Council of

25 the National Academy of Sciences.’’;
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1 (5) in paragraph (3), as redesignated by para2 graph (3)—

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

4 subparagraphs (A) and (B), respectively; and

5 (B) in subparagraph (A), as so redesig6 nated, by redesignating subclauses (I) and (II)

7 as clauses (i) and (ii), respectively; and

8 (6) in paragraph (4), as redesignated by para9 graph (3)—

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

11 subparagraphs (A) and (B), respectively;

12 (B) in subparagraph (A) (as redesignated

13 by subparagraph (A)), by redesignating sub14 clauses (I) and (II) as clauses (i) and (ii), re15 spectively; and

16 (C) in subparagraph (A)(ii) (as redesig17 nated by subparagraph (B)), by striking ‘‘sub18 paragraph (C)’’ and inserting ‘‘paragraph (3)’’.

19 (f) USE OF RESOURCES.—Section 9 of the Act is

20 amended by striking subsection (h).

21 SEC. 3203. FREE AND REDUCED PRICE POLICY STATEMENT.

22 Section 9(b)(2) of the National School Lunch Act (42

23 U.S.C. 1758(b)(2)), as amended by section 3202(b)(1), is

24 further amended by adding at the end the following:
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1 ‘‘(C) FREE AND REDUCED PRICE POLICY

2 STATEMENT.—After the initial submission, a

3 school shall not be required to submit a free

4 and reduced price policy statement to a State

5 educational agency under this Act unless there

6 is a substantive change in the free and reduced

7 price policy of the school. A routine change in

8 the policy of a school, such as an annual adjust9 ment of the income eligibility guidelines for free

10 and reduced price meals, shall not be sufficient

11 cause for requiring the school to submit a policy

12 statement.’’.

13 SEC. 3204. SPECIAL ASSISTANCE.

14 (a) EXTENSION OF PAYMENT PERIOD.—Section

15 11(a)(1)(D)(i) of the National School Lunch Act (42

16 U.S.C. 1759a(a)(1)(D)(i)) is amended by striking ‘‘, on

17 the date of enactment of this subparagraph,’’.

18 (b) APPLICABILITY OF OTHER PROVISIONS.—Section

19 11 of the Act is amended—

20 (1) by striking subsection (d);

21 (2) in subsection (e)(2)—

22 (A) by striking ‘‘The’’ and inserting ‘‘On

23 request of the Secretary, the’’; and

24 (B) by striking ‘‘each month’’; and
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1 (3) by redesignating subsections (e) and (f), as

2 so amended, as subsections (d) and (e), respectively.

3 SEC. 3205. MISCELLANEOUS PROVISIONS AND DEFINI4 TIONS.

5 (a) ACCOUNTS AND RECORDS.—Section 12(a) of the

6 National School Lunch Act (42 U.S.C. 1760(a)) is amend7 ed by striking ‘‘at all times be available’’ and inserting

8 ‘‘be available at any reasonable time’’.

9 (b) RESTRICTION ON REQUIREMENTS.—Section

10 12(c) of the Act is amended by striking ‘‘neither the Sec11 retary nor the State shall’’ and inserting ‘‘the Secretary

12 shall not’’.

13 (c) DEFINITIONS.—Section 12(d) of the Act, as

14 amended by section 3201(b), is further amended—

15 (1) in paragraph (1), by striking ‘‘the Trust

16 Territory of the Pacific Islands’’ and inserting ‘‘the

17 Commonwealth of the Northern Mariana Islands’’;

18 (2) by striking paragraphs (3) and (4); and

19 (3) by redesignating paragraphs (1), (2), and

20 (5) through (9) as paragraphs (6), (7), (3), (4), (2),

21 (5), and (1), respectively, and rearranging the para22 graphs so as to appear in numerical order.

23 (d) ADJUSTMENTS TO NATIONAL AVERAGE PAY24 MENT RATES.—Section 12(f) of the Act is amended by

25 striking ‘‘the Trust Territory of the Pacific Islands,’’.
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1 (e) EXPEDITED RULEMAKING.—Section 12(k) of the

2 Act is amended—

3 (1) by striking paragraphs (1), (2), and (5);

4 and

5 (2) by redesignating paragraphs (3) and (4) as

6 paragraphs (1) and (2), respectively.

7 (f) WAIVER.—Section 12(l) of the Act is amended—

8 (1) in paragraph (2)(A)—

9 (A) in clause (iii), by adding ‘‘and’’ at the

10 end;

11 (B) in clause (iv), by striking the semi12 colon at the end and inserting a period; and

13 (C) by striking clauses (v) through (vii);

14 (2) in paragraph (3)—

15 (A) by striking ‘‘(A)’’; and

16 (B) by striking subparagraphs (B) through

17 (D);

18 (3) in paragraph (4)—

19 (A) in the matter preceding subparagraph

20 (A), by striking ‘‘of any requirement relating’’

21 and inserting ‘‘that increases Federal costs or

22 that relates’’;

23 (B) by striking subparagraph (D);
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1 (C) by redesignating subparagraphs (E)

2 through (N) as subparagraphs (D) through

3 (M), respectively; and

4 (D) in subparagraph (L), as redesignated

5 by subparagraph (C), by striking ‘‘and’’ at the

6 end and inserting ‘‘or’’; and

7 (4) in paragraph (6)—

8 (A) by striking ‘‘(A)(i)’’ and all that fol9 lows through ‘‘(B)’’; and

10 (B) by redesignating clauses (i) through

11 (iv) as subparagraphs (A) through (D), respec12 tively.

13 (g) FOOD AND NUTRITION PROJECTS.—Section 12

14 of the Act is amended by striking subsection (m).

15 SEC. 3206. SUMMER FOOD SERVICE PROGRAM FOR CHIL16 DREN.

17 (a) ESTABLISHMENT OF PROGRAM.—Section 13(a)

18 of the National School Lunch Act (42 U.S.C. 1761(a))

19 is amended—

20 (1) in paragraph (1)—

21 (A) in the first sentence, by striking ‘‘initi22 ate, maintain, and expand’’ and inserting ‘‘initi23 ate and maintain’’; and
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1 (B) in subparagraph (E) of the second

2 sentence, by striking ‘‘the Trust Territory of

3 the Pacific Islands,’’; and

4 (2) in paragraph (7)(A), by striking ‘‘Except as

5 provided in subparagraph (C), private’’ and inserting

6 ‘‘Private’’.

7 (b) SERVICE INSTITUTIONS.—Section 13(b) of the

8 Act is amended by striking ‘‘(b)(1)’’ and all that follows

9 through the end of paragraph (1) and inserting the follow10 ing:

11 ‘‘(b) SERVICE INSTITUTIONS.—

12 ‘‘(1) PAYMENTS.—

13 ‘‘(A) IN GENERAL.—Except as otherwise

14 provided in this paragraph, payments to service

15 institutions shall equal the full cost of food

16 service operations (which cost shall include the

17 costs of obtaining, preparing, and serving food,

18 but shall not include administrative costs).

19 ‘‘(B) MAXIMUM AMOUNTS.—Subject to

20 subparagraph (C), payments to any institution

21 under subparagraph (A) shall not exceed—

22 ‘‘(i) $1.82 for each lunch and supper

23 served;

24 ‘‘(ii) $1.13 for each breakfast served;

25 and
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1 ‘‘(iii) 46 cents for each meal supple2 ment served.

3 ‘‘(C) ADJUSTMENTS.—Amounts specified

4 in subparagraph (B) shall be adjusted on Janu5 ary 1, 1997, and each January 1 thereafter, to

6 the nearest lower cent increment in accordance

7 with the changes for the 12-month period end8 ing the preceding November 30 in the series for

9 food away from home of the Consumer Price

10 Index for All Urban Consumers published by

11 the Bureau of Labor Statistics of the Depart12 ment of Labor. Each adjustment shall be based

13 on the unrounded adjustment for the prior 12-

14 month period.’’.

15 (c) ADMINISTRATION OF SERVICE INSTITUTIONS.—

16 Section 13(b)(2) of the Act is amended—

17 (1) in the first sentence, by striking ‘‘four

18 meals’’ and inserting ‘‘3 meals, or 2 meals and 1

19 supplement,’’; and

20 (2) by striking the second sentence.

21 (d) REIMBURSEMENTS.—Section 13(c)(2) of the Act

22 is amended—

23 (1) by striking subparagraph (A);

24 (2) in subparagraph (B)—

25 (A) in the first sentence—
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1 (i) by striking ‘‘, and such higher edu2 cation institutions,’’; and

3 (ii) by striking ‘‘without application’’

4 and inserting ‘‘upon showing residence in

5 areas in which poor economic conditions

6 exist or on the basis of income eligibility

7 statements for children enrolled in the pro8 gram’’; and

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

10 ‘‘The higher education institutions referred to

11 in the preceding sentence shall be eligible to

12 participate in the program under this para13 graph without application.’’;

14 (3) in subparagraph (C)(ii), by striking ‘‘severe

15 need’’; and

16 (4) by redesignating subparagraphs (B)

17 through (E), as so amended, as subparagraphs (A)

18 through (D), respectively.

19 (e) ADVANCE PROGRAM PAYMENTS.—Section

20 13(e)(1) of the Act is amended—

21 (1) by striking ‘‘institution: Provided, That (A)

22 the’’ and inserting ‘‘institution. The’’;

23 (2) by inserting ‘‘(excluding a school)’’ after

24 ‘‘any service institution’’; and
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1 (3) by striking ‘‘responsibilities, and (B) no’’

2 and inserting ‘‘responsibilities. No’’.

3 (f) FOOD REQUIREMENTS.—Section 13(f) of the Act

4 is amended—

5 (1) by redesignating the first through seventh

6 sentences as paragraphs (1) through (7), respec7 tively;

8 (2) by striking paragraph (3), as redesignated

9 by paragraph (1);

10 (3) in paragraph (4), as redesignated by para11 graph (1), by striking ‘‘the first sentence’’ and in12 serting ‘‘paragraph (1)’’;

13 (4) in paragraph (6), as redesignated by para14 graph (1), by striking ‘‘that bacteria levels’’ and all

15 that follows through the period at the end and in16 serting ‘‘conformance with standards set by local

17 health authorities.’’; and

18 (5) by redesignating paragraphs (4) through

19 (7), as redesignated by paragraph (1), as para20 graphs (3) through (6), respectively.

21 (g) PERMITTING OFFER VERSUS SERVE.—Section

22 13(f) of the Act, as amended by subsection (f), is further

23 amended by adding at the end the following:

24 ‘‘(7) OFFER VERSUS SERVE.—A school food au25 thority participating as a service institution may
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1 permit a child attending a site on school premises

2 operated directly by the authority to refuse not more

3 than 1 item of a meal that the child does not intend

4 to consume. A refusal of an offered food item shall

5 not affect the amount of payments made under this

6 section to a school for the meal.’’.

7 (h) FOOD SERVICE MANAGEMENT COMPANIES.—

8 Section 13(l) of the Act is amended—

9 (1) by striking paragraph (4);

10 (2) in paragraph (5), by striking the first sen11 tence; and

12 (3) by redesignating paragraph (5), as so

13 amended, as paragraph (4).

14 (i) RECORDS.—The second sentence of section 13(m)

15 of the Act is amended by striking ‘‘at all times be avail16 able’’ and inserting ‘‘be available at any reasonable time’’.

17 (j) REMOVING MANDATORY NOTICE TO INSTITU18 TIONS.—Section 13(n)(2) of the Act is amended by strik19 ing ‘‘, and its plans and schedule for informing service

20 institutions of the availability of the program’’.

21 (k) PLAN.—Section 13(n) of the Act is amended—

22 (1) in paragraph (2), by striking ‘‘, including

23 the State’s methods of assessing need’’;

24 (2) by striking paragraph (3);
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1 (3) in paragraph (4), by striking ‘‘and sched2 ule’’; and

3 (4) by redesignating paragraphs (4) through

4 (7), as so amended, as paragraphs (3) through (6),

5 respectively.

6 (l) MONITORING AND TRAINING.—Section 13(q) of

7 the Act is amended—

8 (1) by striking paragraphs (2) and (4);

9 (2) in paragraph (3), by striking ‘‘paragraphs

10 (1) and (2) of this subsection’’ and inserting ‘‘para11 graph (1)’’; and

12 (3) by redesignating paragraph (3), as so

13 amended, as paragraph (2).

14 (m) EXPIRED PROGRAM.—Section 13 of the Act is

15 amended—

16 (1) by striking subsection (p); and

17 (2) by redesignating subsections (q) and (r), as

18 so amended, as subsections (p) and (q), respectively.

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

20 subsection (b) shall become effective on January 1, 1997.

21 SEC. 3207. COMMODITY DISTRIBUTION.

22 (a) CEREAL AND SHORTENING IN COMMODITY DO23 NATIONS.—Section 14(b) of the National School Lunch

24 Act (42 U.S.C. 1762a(b)) is amended—

25 (1) by striking paragraph (1); and
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1 (2) by redesignating paragraphs (2) and (3) as

2 paragraphs (1) and (2), respectively.

3 (b) IMPACT STUDY AND PURCHASING PROCE4 DURES.—Section 14(d) of the Act is amended by striking

5 the second and third sentences.

6 (c) CASH COMPENSATION FOR PILOT PROJECT

7 SCHOOLS.—Section 14(g) of the Act is amended by strik8 ing paragraph (3).

9 (d) STATE ADVISORY COUNCIL.—Section 14 is

10 amended—

11 (1) by striking subsection (e); and

12 (2) by redesignating subsections (f) and (g), as

13 so amended, as subsections (e) and (f), respectively.

14 SEC. 3208. CHILD CARE FOOD PROGRAM.

15 (a) ESTABLISHMENT OF PROGRAM.—Section 17 of

16 the National School Lunch Act (42 U.S.C. 1766) is

17 amended—

18 (1) in the section heading, by striking ‘‘AND

19 ADULT’’; and

20 (2) in the first sentence of subsection (a), by

21 striking ‘‘initiate, maintain, and expand’’ and insert22 ing ‘‘initiate and maintain’’.

23 (b) PAYMENTS TO SPONSOR EMPLOYEES.—Para24 graph (2) of the last sentence of section 17(a) of the Act

25 (42 U.S.C. 1766(a)) is amended—
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (B);

3 (2) by striking the period at the end of sub4 paragraph (C) and inserting ‘‘; and’’; and

5 (3) by adding at the end the following:

6 ‘‘(D) in the case of a family or group day

7 care home sponsoring organization that employs

8 more than 1 employee, the organization does

9 not base payments to an employee of the orga10 nization on the number of family or group day

11 care homes recruited.’’.

12 (c) TECHNICAL ASSISTANCE.—The last sentence of

13 section 17(d)(1) of the Act is amended by striking ‘‘, and

14 shall provide technical assistance’’ and all that follows

15 through ‘‘its application’’.

16 (d) REIMBURSEMENT OF CHILD CARE INSTITU17 TIONS.—Section 17(f)(2)(B) of the Act (42 U.S.C.

18 1766(f)(2)(B)) is amended by striking ‘‘two meals and two

19 supplements or three meals and one supplement’’ and in20 serting ‘‘two meals and one supplement’’.

21 (e) IMPROVED TARGETING OF DAY CARE HOME RE22 IMBURSEMENTS.—

23 (1) RESTRUCTURED DAY CARE HOME REIM24 BURSEMENTS.—Section 17(f)(3) of the Act is

25 amended by striking ‘‘(3)(A) Institutions’’ and all
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1 that follows through the end of subparagraph (A)

2 and inserting the following:

3 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

4 DAY CARE HOME SPONSORING ORGANIZATIONS.—

5 ‘‘(A) REIMBURSEMENT FACTOR.—

6 ‘‘(i) IN GENERAL.—An institution

7 that participates in the program under this

8 section as a family or group day care home

9 sponsoring organization shall be provided,

10 for payment to a home sponsored by the

11 organization, reimbursement factors in ac12 cordance with this subparagraph for the

13 cost of obtaining and preparing food and

14 prescribed labor costs involved in providing

15 meals under this section.

16 ‘‘(ii) TIER I FAMILY OR GROUP DAY

17 CARE HOMES.—

18 ‘‘(I) DEFINITION.—In this para19 graph, the term ‘tier I family or group

20 day care home’ means—

21 ‘‘(aa) a family or group day

22 care home that is located in a ge23 ographic area, as defined by the

24 Secretary based on census data,

25 in which at least 50 percent of
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1 the children residing in the area

2 are members of households whose

3 incomes meet the income eligi4 bility guidelines for free or re5 duced price meals under section

6 9;

7 ‘‘(bb) a family or group day

8 care home that is located in an

9 area served by a school enrolling

10 elementary students in which at

11 least 50 percent of the total num12 ber of children enrolled are cer13 tified eligible to receive free or

14 reduced price school meals under

15 this Act or the Child Nutrition

16 Act of 1966 (42 U.S.C. 1771 et

17 seq.); or

18 ‘‘(cc) a family or group day

19 care home that is operated by a

20 provider whose household meets

21 the income eligibility guidelines

22 for free or reduced price meals

23 under section 9 and whose in24 come is verified by the sponsor25 ing organization of the home
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1 under regulations established by

2 the Secretary.

3 ‘‘(II) REIMBURSEMENT.—Except

4 as provided in subclause (III), a tier

5 I family or group day care home shall

6 be provided reimbursement factors

7 under this clause without a require8 ment for documentation of the costs

9 described in clause (i), except that re10 imbursement shall not be provided

11 under this subclause for meals or sup12 plements served to the children of a

13 person acting as a family or group

14 day care home provider unless the

15 children meet the income eligibility

16 guidelines for free or reduced price

17 meals under section 9.

18 ‘‘(III) FACTORS.—Except as pro19 vided in subclause (IV), the reim20 bursement factors applied to a home

21 referred to in subclause (II) shall be

22 the factors in effect on July 1, 1996.

23 ‘‘(IV) ADJUSTMENTS.—The re24 imbursement factors under this sub25 paragraph shall be adjusted on July
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1 1, 1997, and each July 1 thereafter,

2 to reflect changes in the Consumer

3 Price Index for food at home for the

4 most recent 12-month period for

5 which the data are available. The re6 imbursement factors under this sub7 paragraph shall be rounded to the

8 nearest lower cent increment and

9 based on the unrounded adjustment in

10 effect on June 30 of the preceding

11 school year.

12 ‘‘(iii) TIER II FAMILY OR GROUP DAY

13 CARE HOMES.—

14 ‘‘(I) IN GENERAL.—

15 ‘‘(aa) FACTORS.—Except as

16 provided in subclause (II), with

17 respect to meals or supplements

18 served under this clause by a

19 family or group day care home

20 that does not meet the criteria

21 set forth in clause (ii)(I), the re22 imbursement factors shall be 90

23 cents for lunches and suppers, 25

24 cents for breakfasts, and 10

25 cents for supplements.
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1 ‘‘(bb) ADJUSTMENTS.—The

2 factors shall be adjusted on July

3 1, 1997, and each July 1 there4 after, to reflect changes in the

5 Consumer Price Index for food at

6 home for the most recent 12-

7 month period for which the data

8 are available. The reimbursement

9 factors under this item shall be

10 rounded down to the nearest

11 lower cent increment and based

12 on the unrounded adjustment for

13 the preceding 12-month period.

14 ‘‘(cc) REIMBURSEMENT.—A

15 family or group day care home

16 shall be provided reimbursement

17 factors under this subclause with18 out a requirement for docu19 mentation of the costs described

20 in clause (i), except that reim21 bursement shall not be provided

22 under this subclause for meals or

23 supplements served to the chil24 dren of a person acting as a fam25 ily or group day care home pro-
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1 vider unless the children meet the

2 income eligibility guidelines for

3 free or reduced price meals under

4 section 9.

5 ‘‘(II) OTHER FACTORS.—A fam6 ily or group day care home that does

7 not meet the criteria set forth in

8 clause (ii)(I) may elect to be provided

9 reimbursement factors determined in

10 accordance with the following require11 ments:

12 ‘‘(aa) CHILDREN ELIGIBLE

13 FOR FREE OR REDUCED PRICE

14 MEALS.—In the case of meals or

15 supplements served under this

16 subsection to children who are

17 members of households whose in18 comes meet the income eligibility

19 guidelines for free or reduced

20 price meals under section 9, the

21 family or group day care home

22 shall be provided reimbursement

23 factors set by the Secretary in

24 accordance with clause (ii)(III).
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1 ‘‘(bb) INELIGIBLE CHIL2 DREN.—In the case of meals or

3 supplements served under this

4 subsection to children who are

5 members of households whose in6 comes do not meet the income

7 eligibility guidelines, the family

8 or group day care home shall be

9 provided reimbursement factors

10 in accordance with subclause (I).

11 ‘‘(III) INFORMATION AND DE12 TERMINATIONS.—

13 ‘‘(aa) IN GENERAL.—If a

14 family or group day care home

15 elects to claim the factors de16 scribed in subclause (II), the

17 family or group day care home

18 sponsoring organization serving

19 the home shall collect the nec20 essary income information, as de21 termined by the Secretary, from

22 any parent or other caretaker to

23 make the determinations speci24 fied in subclause (II) and shall

25 make the determinations in ac-
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1 cordance with rules prescribed by

2 the Secretary.

3 ‘‘(bb) CATEGORICAL ELIGI4 BILITY.—In making a determina5 tion under item (aa), a family or

6 group day care home sponsoring

7 organization may consider a child

8 participating in or subsidized

9 under, or a child with a parent

10 participating in or subsidized

11 under, a federally or State sup12 ported child care or other benefit

13 program with an income eligi14 bility limit that does not exceed

15 the eligibility standard for free or

16 reduced price meals under section

17 9 to be a child who is a member

18 of a household whose income

19 meets the income eligibility

20 guidelines under section 9.

21 ‘‘(cc) FACTORS FOR CHIL22 DREN ONLY.—A family or group

23 day care home may elect to re24 ceive the reimbursement factors

25 prescribed under clause (ii)(III)
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1 solely for the children participat2 ing in a program referred to in

3 item (bb) if the home elects not

4 to have income statements col5 lected from parents or other care6 takers.

7 ‘‘(IV) SIMPLIFIED MEAL COUNT8 ING AND REPORTING PROCEDURES.—

9 The Secretary shall prescribe sim10 plified meal counting and reporting

11 procedures for use by a family or

12 group day care home that elects to

13 claim the factors under subclause (II)

14 and by a family or group day care

15 home sponsoring organization that

16 sponsors the home. The procedures

17 the Secretary prescribes may include

18 1 or more of the following:

19 ‘‘(aa) Setting an annual per20 centage for each home of the

21 number of meals served that are

22 to be reimbursed in accordance

23 with the reimbursement factors

24 prescribed under clause (ii)(III)

25 and an annual percentage of the
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1 number of meals served that are

2 to be reimbursed in accordance

3 with the reimbursement factors

4 prescribed under subclause (I),

5 based on the family income of

6 children enrolled in the home in a

7 specified month or other period.

8 ‘‘(bb) Placing a home into 1

9 of 2 or more reimbursement cat10 egories annually based on the

11 percentage of children in the

12 home whose households have in13 comes that meet the income eligi14 bility guidelines under section 9,

15 with each such reimbursement

16 category carrying a set of reim17 bursement factors such as the

18 factors prescribed under clause

19 (ii)(III) or subclause (I) or fac20 tors established within the range

21 of factors prescribed under clause

22 (ii)(III) and subclause (I).

23 ‘‘(cc) Such other simplified

24 procedures as the Secretary may

25 prescribe.
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1 ‘‘(V) MINIMUM VERIFICATION

2 REQUIREMENTS.—The Secretary may

3 establish any necessary minimum ver4 ification requirements.’’.

5 (2) GRANTS TO STATES TO PROVIDE ASSIST6 ANCE TO FAMILY OR GROUP DAY CARE HOMES.—

7 Section 17(f)(3) of the Act is amended by adding at

8 the end the following:

9 ‘‘(D) GRANTS TO STATES TO PROVIDE AS10 SISTANCE TO FAMILY OR GROUP DAY CARE

11 HOMES.—

12 ‘‘(i) IN GENERAL.—

13 ‘‘(I) RESERVATION.—From

14 amounts made available to carry out

15 this section, the Secretary shall re16 serve $5,000,000 of the amount made

17 available for fiscal year 1997.

18 ‘‘(II) PURPOSE.—The Secretary

19 shall use the funds made available

20 under subclause (I) to provide grants

21 to States for the purpose of provid22 ing—

23 ‘‘(aa) assistance, including

24 grants, to family and day care

25 home sponsoring organizations
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1 and other appropriate organiza2 tions, in securing and providing

3 training, materials, automated

4 data processing assistance, and

5 other assistance for the staff of

6 the sponsoring organizations; and

7 ‘‘(bb) training and other as8 sistance to family and group day

9 care homes in the implementation

10 of the amendment to subpara11 graph (A) made by section

12 3208(e)(1) of the Personal Re13 sponsibility and Work Oppor14 tunity Act of 1996.

15 ‘‘(ii) ALLOCATION.—The Secretary

16 shall allocate from the funds reserved

17 under clause (i)(I)—

18 ‘‘(I) $30,000 in base funding to

19 each State; and

20 ‘‘(II) any remaining amount

21 among the States, based on the num22 ber of family day care homes partici23 pating in the program in a State dur24 ing fiscal year 1995 as a percentage

25 of the number of all family day care
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1 homes participating in the program

2 during fiscal year 1995.

3 ‘‘(iii) RETENTION OF FUNDS.—Of the

4 amount of funds made available to a State

5 for fiscal year 1997 under clause (i), the

6 State may retain not to exceed 30 percent

7 of the amount to carry out this subpara8 graph.

9 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

10 payments received under this subpara11 graph shall be in addition to payments

12 that a State receives under subparagraph

13 (A).’’.

14 (3) PROVISION OF DATA.—Section 17(f)(3) of

15 the Act, as amended by paragraph (2), is further

16 amended by adding at the end the following:

17 ‘‘(E) PROVISION OF DATA TO FAMILY OR

18 GROUP DAY CARE HOME SPONSORING ORGANI19 ZATIONS.—

20 ‘‘(i) CENSUS DATA.—The Secretary

21 shall provide to each State agency admin22 istering a child care food program under

23 this section data from the most recent de24 cennial census survey or other appropriate

25 census survey for which the data are avail-
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1 able showing which areas in the State meet

2 the requirements of subparagraph

3 (A)(ii)(I)(aa). The State agency shall pro4 vide the data to family or group day care

5 home sponsoring organizations located in

6 the State.

7 ‘‘(ii) SCHOOL DATA.—

8 ‘‘(I) IN GENERAL.—A State

9 agency administering the school lunch

10 program under this Act or the school

11 breakfast program under the Child

12 Nutrition Act of 1966 (42 U.S.C.

13 1771 et seq.) shall provide to ap14 proved family or group day care home

15 sponsoring organizations a list of

16 schools serving elementary school chil17 dren in the State in which not less

than 1 18 ⁄2 of the children enrolled are

19 certified to receive free or reduced

20 price meals. The State agency shall

21 collect the data necessary to create

22 the list annually and provide the list

23 on a timely basis to any approved

24 family or group day care home spon-
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1 soring organization that requests the

2 list.

3 ‘‘(II) USE OF DATA FROM PRE4 CEDING SCHOOL YEAR.—In determin5 ing for a fiscal year or other annual

6 period whether a home qualifies as a

7 tier I family or group day care home

8 under subparagraph (A)(ii)(I), the

9 State agency administering the pro10 gram under this section, and a family

11 or group day care home sponsoring

12 organization, shall use the most cur13 rent available data at the time of the

14 determination.

15 ‘‘(iii) DURATION OF DETERMINA16 TION.—For purposes of this section, a de17 termination that a family or group day

18 care home is located in an area that quali19 fies the home as a tier I family or group

20 day care home (as the term is defined in

21 subparagraph (A)(ii)(I)), shall be in effect

22 for 3 years (unless the determination is

23 made on the basis of census data, in which

24 case the determination shall remain in ef25 fect until more recent census data are
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1 available) unless the State agency deter2 mines that the area in which the home is

3 located no longer qualifies the home as a

4 tier I family or group day care home.’’.

5 (4) CONFORMING AMENDMENTS.—Section 17(c)

6 of the Act is amended by inserting ‘‘except as pro7 vided in subsection (f)(3),’’ after ‘‘For purposes of

8 this section,’’ each place it appears in paragraphs

9 (1), (2), and (3).

10 (f) REIMBURSEMENT.—Section 17(f) of the Act is

11 amended—

12 (1) in paragraph (3)—

13 (A) in subparagraph (B), by striking the

14 third and fourth sentences; and

15 (B) in subparagraph (C)—

16 (i) by striking ‘‘(i)’’ and

17 (ii) by striking clause (ii); and

18 (2) in paragraph (4), by striking ‘‘shall’’ and

19 inserting ‘‘may’’ in the first sentence.

20 (g) NUTRITIONAL REQUIREMENTS.—Section

21 17(g)(1) of the Act is amended—

22 (1) in subparagraph (A), by striking the second

23 sentence; and

24 (2) in subparagraph (B), by striking the second

25 sentence.
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1 (h) ELIMINATION OF STATE PAPERWORK AND OUT2 REACH BURDEN.—Section 17 of the Act is amended by

3 striking subsection (k) and inserting the following:

4 ‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A

5 State participating in the program established under this

6 section shall provide sufficient training, technical assist7 ance, and monitoring to facilitate effective operation of the

8 program. The Secretary shall assist the State in develop9 ing plans to fulfill the requirements of this subsection.’’.

10 (i) RECORDS.—The second sentence of section 17(m)

11 of the Act is amended by striking ‘‘at all times’’ and in12 serting ‘‘at any reasonable time’’.

13 (j) MODIFICATION OF ADULT CARE FOOD PRO14 GRAM.—Section 17(o) of the Act is amended—

15 (1) in the first sentence of paragraph (1)—

16 (A) by striking ‘‘adult day care centers’’

17 and inserting ‘‘day care centers for chronically

18 impaired disabled persons’’; and

19 (B) by striking ‘‘to persons 60 years of age

20 or older or’’; and

21 (2) in paragraph (2)—

22 (A) in subparagraph (A)—

23 (i) by striking ‘‘adult day care center’’

24 and inserting ‘‘day care center for chron25 ically impaired disabled persons’’; and
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1 (ii) in clause (i)—

2 (I) by striking ‘‘adult’’;

3 (II) by striking ‘‘adults’’ and in4 serting ‘‘persons’’; and

5 (III) by striking ‘‘or persons 60

6 years of age or older’’; and

7 (B) in subparagraph (B), by striking

8 ‘‘adult day care services’’ and inserting ‘‘day

9 care services for chronically impaired disabled

10 persons’’.

11 (k) UNNEEDED PROVISION.—Section 17 of the Act

12 is amended by striking subsection (q).

13 (l) CONFORMING AMENDMENTS.—

14 (1) Section 17B(f) of the Act (42 U.S.C.

15 1766b(f)) is amended—

16 (A) in the subsection heading, by striking

17 ‘‘AND ADULT’’; and

18 (B) in paragraph (1), by striking ‘‘and

19 adult’’.

20 (2) Section 18(e)(3)(B) of the Act (42 U.S.C.

21 1769(e)(3)(B)) is amended by striking ‘‘and adult’’.

22 (3) Section 25(b)(1)(C) of the Act (42 U.S.C.

23 1769f(b)(1)(C)) is amended by striking ‘‘and adult’’.
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1 (4) Section 3(1) of the Healthy Meals for

2 Healthy Americans Act of 1994 (Public Law 103–

3 448) is amended by striking ‘‘and adult’’.

4 (m) EFFECTIVE DATE.—

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the amendments made by this section

7 shall become effective on the date of enactment of

8 this Act.

9 (2) IMPROVED TARGETING OF DAY CARE HOME

10 REIMBURSEMENTS.—The amendments made by

11 paragraphs (1) and (4) of subsection (e) shall be12 come effective on July 1, 1997.

13 (3) REGULATIONS.—

14 (A) INTERIM REGULATIONS.—Not later

15 than January 1, 1997, the Secretary shall issue

16 interim regulations to implement—

17 (i) the amendments made by para18 graphs (1), (3), and (4) of subsection (e);

19 and

20 (ii) section 17(f)(3)(C) of the National

21 School Lunch Act (42 U.S.C.

22 1766(f)(3)(C)).

23 (B) FINAL REGULATIONS.—Not later than

24 July 1, 1997, the Secretary shall issue final
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1 regulations to implement the provisions of law

2 referred to in subparagraph (A).

3 (n) STUDY OF IMPACT OF AMENDMENTS ON PRO4 GRAM PARTICIPATION AND FAMILY DAY CARE LICENS5 ING.—

6 (1) IN GENERAL.—The Secretary of Agri7 culture, in conjunction with the Secretary of Health

8 and Human Services, shall study the impact of the

9 amendments made by this section on—

10 (A) the number of family day care homes

11 participating in the child care food program es12 tablished under section 17 of the National

13 School Lunch Act (42 U.S.C. 1766);

14 (B) the number of day care home sponsor15 ing organizations participating in the program;

16 (C) the number of day care homes that are

17 licensed, certified, registered, or approved by

18 each State in accordance with regulations is19 sued by the Secretary;

20 (D) the rate of growth of the numbers re21 ferred to in subparagraphs (A) through (C);

22 (E) the nutritional adequacy and quality of

23 meals served in family day care homes that—

24 (i) received reimbursement under the

25 program prior to the amendments made by
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1 this section but do not receive reimburse2 ment after the amendments made by this

3 section; or

4 (ii) received full reimbursement under

5 the program prior to the amendments

6 made by this section but do not receive full

7 reimbursement after the amendments

8 made by this section; and

9 (F) the proportion of low-income children

10 participating in the program prior to the

11 amendments made by this section and the pro12 portion of low-income children participating in

13 the program after the amendments made by

14 this section.

15 (2) REQUIRED DATA.—Each State agency par16 ticipating in the child care food program under sec17 tion 17 of the National School Lunch Act (42

18 U.S.C. 1766) shall submit to the Secretary data

19 on—

20 (A) the number of family day care homes

21 participating in the program on June 30, 1997,

22 and June 30, 1998;

23 (B) the number of family day care homes

24 licensed, certified, registered, or approved for
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1 service on June 30, 1997, and June 30, 1998;

2 and

3 (C) such other data as the Secretary may

4 require to carry out this subsection.

5 (3) SUBMISSION OF REPORT.—Not later than 2

6 years after the effective date of this section, the Sec7 retary shall submit the study required under this

8 subsection to the Committee on Economic and Edu9 cational Opportunities of the House of Representa10 tives and the Committee on Agriculture, Nutrition,

11 and Forestry of the Senate.

12 SEC. 3209. PILOT PROJECTS.

13 (a) UNIVERSAL FREE PILOT.—Section 18(d) of the

14 National School Lunch Act (42 U.S.C. 1769(d)) is amend15 ed—

16 (1) by striking paragraph (3); and

17 (2) by redesignating paragraphs (4) and (5) as

18 paragraphs (3) and (4), respectively.

19 (b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Sec20 tion 18(e) of the Act is amended—

21 (1) in paragraph (1)—

22 (A) in subparagraph (A)—

23 (i) by striking ‘‘(A)’’; and

24 (ii) by striking ‘‘shall’’ and inserting

25 ‘‘may’’; and
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1 (B) by striking subparagraph (B); and

2 (2) by striking paragraph (5) and inserting the

3 following:

4 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

5 There are authorized to be appropriated to carry out

6 this subsection such sums as are necessary for each

7 of fiscal years 1997 and 1998.’’.

8 (c) ELIMINATING PROJECTS.—Section 18 of the Act

9 is amended—

10 (1) by striking subsections (a) and (g) through

11 (i); and

12 (2) by redesignating subsections (b) through

13 (f), as so amended, as subsections (a) through (e),

14 respectively.

15 (d) CONFORMING AMENDMENT.—Section

16 17B(d)(1)(A) of the Act (42 U.S.C. 1766b(d)(1)(A)) is

17 amended by striking ‘‘18(c)’’ and inserting ‘‘18(b)’’.

18 SEC. 3210. REDUCTION OF PAPERWORK.

19 Section 19 of the National School Lunch Act (42

20 U.S.C. 1769a) is repealed.

21 SEC. 3211. INFORMATION ON INCOME ELIGIBILITY.

22 Section 23 of the National School Lunch Act (42

23 U.S.C. 1769d) is repealed.
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1 SEC. 3212. NUTRITION GUIDANCE FOR CHILD NUTRITION

2 PROGRAMS.

3 Section 24 of the National School Lunch Act (42

4 U.S.C. 1769e) is repealed.

5 SEC. 3213. INFORMATION CLEARINGHOUSE.

6 Section 26 of the National School Lunch Act (42

7 U.S.C. 1769g) is repealed.

8 CHAPTER 2—CHILD NUTRITION ACT OF

9 1966

10 SEC. 3221. SPECIAL MILK PROGRAM.

11 Section 3(a)(3) of the Child Nutrition Act of 1966

12 (42 U.S.C. 1772(a)(3)) is amended by striking ‘‘the Trust

13 Territory of the Pacific Islands’’ and inserting ‘‘the Com14 monwealth of the Northern Mariana Islands’’.

15 SEC. 3222. FREE AND REDUCED PRICE POLICY STATEMENT.

16 Section 4(b)(1) of the Child Nutrition Act of 1966

17 (42 U.S.C. 1773(b)(1)) is amended by adding at the end

18 the following:

19 ‘‘(E) FREE AND REDUCED PRICE POLICY

20 STATEMENT.—After the initial submission, a

21 school shall not be required to submit a free

22 and reduced price policy statement to a State

23 educational agency under this Act unless there

24 is a substantive change in the free and reduced

25 price policy of the school. A routine change in

26 the policy of a school, such as an annual adjust-
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1 ment of the income eligibility guidelines for free

2 and reduced price meals, shall not be sufficient

3 cause for requiring the school to submit a policy

4 statement.’’.

5 SEC. 3223. SCHOOL BREAKFAST PROGRAM AUTHORIZA6 TION.

7 (a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD

8 PREPARATION.—Section 4(e)(1) of the Child Nutrition

9 Act of 1966 (42 U.S.C. 1773(e)(1)) is amended—

10 (1) in subparagraph (A), by striking ‘‘(A)’’; and

11 (2) by striking subparagraph (B).

12 (b) EXPANSION OF PROGRAM; STARTUP AND EXPAN13 SION COSTS.—

14 (1) IN GENERAL.—Section 4 of the Act is

15 amended by striking subsections (f) and (g).

16 (2) EFFECTIVE DATE.—The amendments made

17 by paragraph (1) shall become effective on October

18 1, 1996.

19 SEC. 3224. STATE ADMINISTRATIVE EXPENSES.

20 (a) USE OF FUNDS FOR COMMODITY DISTRIBUTION

21 ADMINISTRATION; STUDIES.—Section 7 of the Child Nu22 trition Act of 1966 (42 U.S.C. 1776) is amended—

23 (1) by striking subsections (e) and (h); and

24 (2) by redesignating subsections (f), (g), and (i)

25 as subsections (e), (f), and (g), respectively.
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1 (b) APPROVAL OF CHANGES.—Section 7(e) of the

2 Act, as so redesignated, is amended—

3 (1) by striking ‘‘each year an annual plan’’ and

4 inserting ‘‘the initial fiscal year a plan’’; and

5 (2) by adding at the end the following: ‘‘After

6 submitting the initial plan, a State shall only be re7 quired to submit to the Secretary for approval a

8 substantive change in the plan.’’.

9 SEC. 3225. REGULATIONS.

10 Section 10(b) of the Child Nutrition Act of 1966 (42

11 U.S.C. 1779(b)) is amended—

12 (1) in paragraph (1), by striking ‘‘(1)’’; and

13 (2) by striking paragraphs (2) through (4).

14 SEC. 3226. PROHIBITIONS.

15 Section 11(a) of the Child Nutrition Act of 1966 (42

16 U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec17 retary nor the State shall’’ and inserting ‘‘the Secretary

18 shall not’’.

19 SEC. 3227. MISCELLANEOUS PROVISIONS AND DEFINI20 TIONS.

21 Section 15 of the Child Nutrition Act of 1966 (42

22 U.S.C. 1784) is amended—

23 (1) in paragraph (1), by striking ‘‘the Trust

24 Territory of the Pacific Islands’’ and inserting ‘‘the
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1 Commonwealth of the Northern Mariana Islands’’;

2 and

3 (2) in the first sentence of paragraph (3)—

4 (A) in subparagraph (A), by inserting

5 ‘‘and’’ at the end; and

6 (B) by striking ‘‘, and (C)’’ and all that

7 follows through ‘‘Governor of Puerto Rico’’.

8 SEC. 3228. ACCOUNTS AND RECORDS.

9 The second sentence of section 16(a) of the Child Nu10 trition Act of 1966 (42 U.S.C. 1785(a)) is amended by

11 striking ‘‘at all times be available’’ and inserting ‘‘be avail12 able at any reasonable time’’.

13 SEC. 3229. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

14 FOR WOMEN, INFANTS, AND CHILDREN.

15 (a) DEFINITIONS.—Section 17(b) of the Child Nutri16 tion Act of 1966 (42 U.S.C. 1786(b)) is amended—

17 (1) in paragraph (15)(B)(iii), by inserting ‘‘of

18 not more than 365 days’’ after ‘‘accommodation’’;

19 and

20 (2) in paragraph (16)—

21 (A) in subparagraph (A), by adding ‘‘and’’

22 at the end; and

23 (B) in subparagraph (B), by striking ‘‘;

24 and’’ and inserting a period; and

25 (C) by striking subparagraph (C).
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1 (b) SECRETARY’S PROMOTION OF WIC.—Section

2 17(c) of the Act is amended by striking paragraph (5).

3 (c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the

4 Act is amended by striking paragraph (4).

5 (d) NUTRITION EDUCATION AND DRUG ABUSE EDU6 CATION.—Section 17(e) of the Act is amended—

7 (1) in the first sentence of paragraph (1), by

8 striking ‘‘shall ensure’’ and all that follows through

9 ‘‘is provided’’ and inserting ‘‘shall provide nutrition

10 education and may provide drug abuse education’’;

11 (2) in paragraph (2), by striking the third sen12 tence;

13 (3) in paragraph (4)—

14 (A) in the matter preceding subparagraph

15 (A), by striking ‘‘shall’’;

16 (B) by striking subparagraph (A);

17 (C) by redesignating subparagraphs (B)

18 and (C) as subparagraphs (A) and (B), respec19 tively;

20 (D) in subparagraphs (A) and (B) (as re21 designated), by inserting ‘‘shall’’ before ‘‘pro22 vide’’ each place it appears;

23 (E) in subparagraph (A) (as redesignated),

24 by striking ‘‘and’’ at the end;
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1 (F) in subparagraph (B) (as redesignated),

2 by striking the period and inserting ‘‘; and’’;

3 and

4 (G) by adding at the end the following:

5 ‘‘(C) may provide a local agency with materials

6 describing other programs for which participants in

7 the program may be eligible.’’;

8 (4) in paragraph (5), by striking ‘‘The State’’

9 and all that follows through ‘‘local agency shall’’ and

10 inserting ‘‘Each local agency shall’’; and

11 (5) by striking paragraph (6).

12 (e) STATE PLAN.—Section 17(f) of the Act is amend13 ed—

14 (1) in paragraph (1)—

15 (A) in subparagraph (A)—

16 (i) by striking ‘‘annually to the Sec17 retary, by a date specified by the Sec18 retary, a’’ and inserting ‘‘to the Secretary,

19 by a date specified by the Secretary, an

20 initial’’; and

21 (ii) by adding at the end the follow22 ing: ‘‘After submitting the initial plan, a

23 State shall only be required to submit to

24 the Secretary for approval a substantive

25 change in the plan.’’;
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1 (B) in subparagraph (C)—

2 (i) by striking clause (iii) and insert3 ing the following:

4 ‘‘(iii) a plan to coordinate operations under the

5 program with other services or programs that may

6 benefit participants in, and applicants for, the pro7 gram;’’;

8 (ii) in clause (vi), by inserting after

9 ‘‘in the State’’ the following: ‘‘(including a

10 plan to improve access to the program for

11 participants and prospective applicants

12 who are employed, or who reside in rural

13 areas)’’;

14 (iii) in clause (vii), by striking ‘‘to

15 provide program benefits’’ and all that fol16 lows through ‘‘emphasis on’’ and inserting

17 ‘‘for’’;

18 (iv) by striking clauses (ix), (x), and

19 (xii);

20 (v) in clause (xiii), by striking ‘‘may

21 require’’ and inserting ‘‘may reasonably re22 quire’’; and

23 (vi) by redesignating clauses (xi) and

24 (xiii), as so amended, as clauses (ix) and

25 (x), respectively;
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1 (C) by striking subparagraph (D); and

2 (D) by redesignating subparagraph (E) as

3 subparagraph (D);

4 (2) by striking paragraphs (2), (6), (8), and

5 (22);

6 (3) in the second sentence of paragraph (5), by

7 striking ‘‘at all times be available’’ and inserting ‘‘be

8 available at any reasonable time’’;

9 (4) in paragraph (9)(B), by striking the second

10 sentence;

11 (5) in the first sentence of paragraph (11), by

12 striking ‘‘, including standards that will ensure suffi13 cient State agency staff’’;

14 (6) in paragraph (12), by striking the third sen15 tence;

16 (7) in paragraph (14), by striking ‘‘shall’’ and

17 inserting ‘‘may’’;

18 (8) in paragraph (17), by striking ‘‘and to ac19 commodate’’ and all that follows through ‘‘facili20 ties’’;

21 (9) in paragraph (19), by striking ‘‘shall’’ and

22 inserting ‘‘may’’; and

23 (10) by redesignating paragraphs (3), (4), (5),

24 (7), (9) through (19), (20), (21), (23), and (24), as

25 so amended, as paragraphs (2), (3), (4), (5), (6)
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1 through (16), (17), (18), (19), and (20), respec2 tively.

3 (f) INFORMATION.—Section 17(g) of the Act is

4 amended—

5 (1) in paragraph (5), by striking ‘‘the report re6 quired under subsection (d)(4)’’ and inserting ‘‘re7 ports on program participant characteristics’’; and

8 (2) by striking paragraph (6).

9 (g) PROCUREMENT OF INFANT FORMULA.—

10 (1) IN GENERAL.—Section 17(h) of the Act is

11 amended—

12 (A) in paragraph (4)(E), by striking ‘‘and,

13 on’’ and all that follows through ‘‘(d)(4)’’;

14 (B) in paragraph (8)—

15 (i) by striking subparagraphs (A),

16 (C), and (M);

17 (ii) in subparagraph (G)—

18 (I) in clause (i), by striking ‘‘(i)’’;

19 and

20 (II) by striking clauses (ii)

21 through (ix);

22 (iii) in subparagraph (I), by striking

23 ‘‘Secretary—’’ and all that follows through

24 ‘‘(v) may’’ and inserting ‘‘Secretary may’’;
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1 (iv) by redesignating subparagraphs

2 (B) and (D) through (L) as subparagraphs

3 (A) and (B) through (J), respectively;

4 (v) in subparagraph (A)(i), as so re5 designated, by striking ‘‘subparagraphs

6 (C), (D), and (E)(iii), in carrying out sub7 paragraph (A),’’ and inserting ‘‘subpara8 graphs (B) and (C)(iii),’’;

9 (vi) in subparagraph (B)(i), as so re10 designated, by striking ‘‘subparagraph

11 (B)’’ each place it appears and inserting

12 ‘‘subparagraph (A)’’; and

13 (vii) in subparagraph (C)(iii), as so

14 redesignated, by striking ‘‘subparagraph

15 (B)’’ and inserting ‘‘subparagraph (A)’’;

16 and

17 (C) in paragraph (10)(B)—

18 (i) in clause (i), by striking the semi19 colon and inserting ‘‘; and’’;

20 (ii) in clause (ii), by striking ‘‘; and’’

21 and inserting a period; and

22 (iii) by striking clause (iii).

23 (2) APPLICATION.—The amendments made by

24 paragraph (1) shall not apply to a contract for the

25 procurement of infant formula under section
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1 17(h)(8) of the Act that is in effect on the effective

2 date of this subsection.

3 (h) NATIONAL ADVISORY COUNCIL ON MATERNAL,

4 INFANT, AND FETAL NUTRITION.—Section 17(k)(3) of

5 the Act is amended by striking ‘‘Secretary shall designate’’

6 and inserting ‘‘Council shall elect’’.

7 (i) COMPLETED STUDY; COMMUNITY COLLEGE DEM8 ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS9 TEM.—Section 17 of the Act is amended by striking sub10 sections (n), (o), and (p).

11 (j) DISQUALIFICATION OF VENDORS WHO ARE DIS12 QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Sec13 tion 17 of the Act, as so amended, is further amended

14 by adding at the end the following:

15 ‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE

16 DISQUALIFIED UNDER THE FOOD STAMP PROGRAM.—

17 ‘‘(1) IN GENERAL.—The Secretary shall issue

18 regulations providing criteria for the disqualification

19 under this section of an approved vendor that is dis20 qualified from accepting benefits under the food

21 stamp program established under the Food Stamp

22 Act of 1977 (7 U.S.C. 2011 et seq.).

23 ‘‘(2) TERMS.—A disqualification under para24 graph (1)—
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1 ‘‘(A) shall be for the same period as the

2 disqualification from the program referred to in

3 paragraph (1);

4 ‘‘(B) may begin at a later date than the

5 disqualification from the program referred to in

6 paragraph (1); and

7 ‘‘(C) shall not be subject to judicial or ad8 ministrative review.’’.

9 SEC. 3230. CASH GRANTS FOR NUTRITION EDUCATION.

10 Section 18 of the Child Nutrition Act of 1966 (42

11 U.S.C. 1787) is repealed.

12 SEC. 3231. NUTRITION EDUCATION AND TRAINING.

13 (a) FINDINGS.—Section 19 of the Child Nutrition

14 Act of 1966 (42 U.S.C. 1788) is amended—

15 (1) in subsection (a), by striking ‘‘that—’’ and

16 all that follows through the period at the end and

17 inserting ‘‘that effective dissemination of scientif18 ically valid information to children participating or

19 eligible to participate in the school lunch and related

20 child nutrition programs should be encouraged.’’;

21 and

22 (2) in subsection (b), by striking ‘‘encourage’’

23 and all that follows through ‘‘establishing’’ and in24 serting ‘‘establish’’.
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1 (b) USE OF FUNDS.—Section 19(f) of the Act is

2 amended—

3 (1) in paragraph (1)—

4 (A) by striking subparagraph (B); and

5 (B) in subparagraph (A)—

6 (i) by striking ‘‘(A)’’;

7 (ii) by striking clauses (ix) through

8 (xix);

9 (iii) by redesignating clauses (i)

10 through (viii) and (xx) as subparagraphs

11 (A) through (H) and (I), respectively;

12 (iv) in subparagraph (I), as so redes13 ignated, by striking the period at the end

14 and inserting ‘‘; and’’; and

15 (v) by adding at the end the following:

16 ‘‘(J) other appropriate related activities, as de17 termined by the State.’’;

18 (2) by striking paragraphs (2) and (4); and

19 (3) by redesignating paragraph (3) as para20 graph (2).

21 (c) ACCOUNTS, RECORDS, AND REPORTS.—The sec22 ond sentence of section 19(g)(1) of the Act is amended

23 by striking ‘‘at all times be available’’ and inserting ‘‘be

24 available at any reasonable time’’.
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1 (d) STATE COORDINATORS FOR NUTRITION; STATE

2 PLAN.—Section 19(h) of the Act is amended—

3 (1) in the second sentence of paragraph (1)—

4 (A) by striking ‘‘as provided in paragraph

5 (2) of this subsection’’; and

6 (B) by striking ‘‘as provided in paragraph

7 (3) of this subsection’’;

8 (2) in paragraph (2), by striking the second

9 and third sentences; and

10 (3) by striking paragraph (3).

11 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

12 19(i) of the Act is amended—

13 (1) in the first sentence of paragraph (2)(A), by

14 striking ‘‘and each succeeding fiscal year’’;

15 (2) by redesignating paragraphs (3) and (4) as

16 paragraphs (4) and (5), respectively; and

17 (3) by inserting after paragraph (2) the follow18 ing:

19 ‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

20 ‘‘(A) IN GENERAL.—There are authorized

21 to be appropriated to carry out this section

22 $10,000,000 for each of fiscal years 1997

23 through 2002.

24 ‘‘(B) GRANTS.—
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1 ‘‘(i) IN GENERAL.—Grants to each

2 State from the amounts made available

3 under subparagraph (A) shall be based on

4 a rate of 50 cents for each child enrolled

5 in schools or institutions within the State,

6 except that no State shall receive an

7 amount less than $75,000 per fiscal year.

8 ‘‘(ii) INSUFFICIENT FUNDS.—If the

9 amount made available for any fiscal year

10 is insufficient to pay the amount to which

11 each State is entitled under clause (i), the

12 amount of each grant shall be ratably re13 duced.’’.

14 (f) ASSESSMENT.—Section 19 of the Act is amended

15 by striking subsection (j).

16 (g) EFFECTIVE DATE.—The amendments made by

17 subsection (e) shall become effective on October 1, 1996.

18 CHAPTER 3—MISCELLANEOUS

19 PROVISIONS

20 SEC. 3241. COORDINATION OF SCHOOL LUNCH, SCHOOL

21 BREAKFAST, AND SUMMER FOOD SERVICE

22 PROGRAMS.

23 (a) COORDINATION.—

24 (1) IN GENERAL.—The Secretary of Agriculture

25 shall develop proposed changes to the regulations
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1 under the school lunch program under the National

2 School Lunch Act, the summer food service program

3 under section 13 of that Act, and the school break4 fast program under section 4 of the Child Nutrition

5 Act of 1966, for the purpose of simplifying and co6 ordinating those programs into a comprehensive

7 meal program.

8 (2) CONSULTATION.—In developing proposed

9 changes to the regulations under paragraph (1), the

10 Secretary of Agriculture shall consult with local,

11 State, and regional administrators of the programs

12 described in such paragraph.

13 (b) REPORT.—Not later than November 1, 1997, the

14 Secretary of Agriculture shall submit to the Committee on

15 Agriculture, Nutrition, and Forestry of the Senate and the

16 Committee on Economic and Educational Opportunities of

17 the House of Representatives a report containing the pro18 posed changes developed under subsection (a).

19 Subtitle C—Related Provisions

20 SEC. 3301. REQUIREMENT THAT DATA RELATING TO THE

21 INCIDENCE OF POVERTY IN THE UNITED

22 STATES BE PUBLISHED AT LEAST EVERY 2

23 YEARS.

24 (a) IN GENERAL.—The Secretary shall, to the extent

25 feasible, produce and publish for each State, county, and
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1 local unit of general purpose government for which data

2 have been compiled in the then most recent census of pop3 ulation under section 141(a) of title 13, United States

4 Code, and for each school district, data relating to the in5 cidence of poverty. Such data may be produced by means

6 of sampling, estimation, or any other method that the Sec7 retary determines will produce current, comprehensive,

8 and reliable data.

9 (b) CONTENT; FREQUENCY.—Data under this sec10 tion—

11 (1) shall include—

12 (A) for each school district, the number of

13 children age 5 to 17, inclusive, in families below

14 the poverty level; and

15 (B) for each State and county referred to

16 in subsection (a), the number of individuals age

17 65 or older below the poverty level; and

18 (2) shall be published—

19 (A) for each State, county, and local unit

20 of general purpose government referred to in

21 subsection (a), in 1997 and at least every sec22 ond year thereafter; and

23 (B) for each school district, in 1999 and at

24 least every second year thereafter.

25 (c) AUTHORITY TO AGGREGATE.—
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1 (1) IN GENERAL.—If reliable data could not

2 otherwise be produced, the Secretary may, for pur3 poses of subsection (b)(1)(A), aggregate school dis4 tricts, but only to the extent necessary to achieve re5 liability.

6 (2) INFORMATION RELATING TO USE OF AU7 THORITY.—Any data produced under this subsection

8 shall be appropriately identified and shall be accom9 panied by a detailed explanation as to how and why

10 aggregation was used (including the measures taken

11 to minimize any such aggregation).

12 (d) REPORT TO BE SUBMITTED WHENEVER DATA

13 IS NOT TIMELY PUBLISHED.—If the Secretary is unable

14 to produce and publish the data required under this sec15 tion for any State, county, local unit of general purpose

16 government, or school district in any year specified in sub17 section (b)(2), a report shall be submitted by the Secretary

18 to the President of the Senate and the Speaker of the

19 House of Representatives, not later than 90 days before

20 the start of the following year, enumerating each govern21 ment or school district excluded and giving the reasons

22 for the exclusion.

23 (e) CRITERIA RELATING TO POVERTY.—In carrying

24 out this section, the Secretary shall use the same criteria

25 relating to poverty as were used in the then most recent
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1 census of population under section 141(a) of title 13,

2 United States Code (subject to such periodic adjustments

3 as may be necessary to compensate for inflation and other

4 similar factors).

5 (f) CONSULTATION.—The Secretary shall consult

6 with the Secretary of Education in carrying out the re7 quirements of this section relating to school districts.

8 (g) DEFINITION.—For the purpose of this section,

9 the term ‘‘Secretary’’ means the Secretary of Health and

10 Human Services.

11 (h) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated to carry out this section

13 $1,500,000 for each of fiscal years 1997 through 2000.

14 SEC. 3302. SENSE OF THE CONGRESS.

15 It is the sense of the Congress that this title, and

16 the amendments made by this title, should not result in

17 an increase in the number of children who are hungry,

18 homeless, poor, or medically uninsured.

19 SEC. 3303. LEGISLATIVE ACCOUNTABILITY.

20 In the event that this title, or the amendments made

21 by this title, results in an increase in the number of chil22 dren in the United States who are hungry, homeless, poor,

23 or medically uninsured by the end of the fiscal year 1997,

24 the Congress—
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1 (1) shall revisit the provisions of this title, or

2 the amendments made by this title, which caused

3 such increase; and

4 (2) shall, as soon as practicable thereafter, pass

5 legislation that stops the continuation of such in6 crease.

7 TITLE IV—COMMITTEE ON WAYS

8 AND MEANS

9 SEC. 4001. SHORT TITLE.

10 This title may be cited as the ‘‘Personal Responsibil11 ity and Work Opportunity Act of 1996’’.

12 SEC. 4002. TABLE OF CONTENTS.

13 The table of contents of this title is as follows:

Sec. 4001. Short title.

Sec. 4002. Table of contents.

Subtitle A—Block Grants for Temporary Assistance for Needy Families

Sec. 4101. Findings.

Sec. 4102. Reference to Social Security Act.

Sec. 4103. Block grants to States.

Sec. 4104. Services provided by charitable, religious, or private organizations.

Sec. 4105. Census data on grandparents as primary caregivers for their grandchildren.

Sec. 4106. Report on data processing.

Sec. 4107. Study on alternative outcomes measures.

Sec. 4108. Conforming amendments to the Social Security Act.

Sec. 4109. Conforming amendments to the Food Stamp Act of 1977 and related provisions.

Sec. 4110. Conforming amendments to other laws.

Sec. 4111. Development of prototype of counterfeit-resistant social security

card required.

Sec. 4112. Disclosure of receipt of Federal funds.

Sec. 4113. Modifications to the job opportunities for certain low-income individuals program.

Sec. 4114. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 4115. Conforming amendments to medicaid program.

Sec. 4116. Effective date; transition rule.
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Subtitle B—Supplemental Security Income

Sec. 4200. Reference to Social Security Act.

CHAPTER 1—ELIGIBILITY RESTRICTIONS

Sec. 4201. 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. 4202. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 4203. Treatment of prisoners.

Sec. 4204. Effective date of application for benefits.

CHAPTER 2—BENEFITS FOR DISABLED CHILDREN

Sec. 4211. Definition and eligibility rules.

Sec. 4212. Eligibility redeterminations and continuing disability reviews.

Sec. 4213. Additional accountability requirements.

Sec. 4214. Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by private insurance.

Sec. 4215. Regulations.

CHAPTER 3—ADDITIONAL ENFORCEMENT PROVISIONS

Sec. 4221. Installment payment of large past-due supplemental security income

benefits.

Sec. 4222. Recovery of supplemental security income overpayments from social

security benefits.

Sec. 4223. Regulations.

CHAPTER 4—STATE SUPPLEMENTATION PROGRAMS

Sec. 4225. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

CHAPTER 5—STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME

PROGRAM

Sec. 4231. Annual report on the supplemental security income program.

Sec. 4232. Study of disability determination process.

Sec. 4233. Study by General Accounting Office.

CHAPTER 6—NATIONAL COMMISSION ON THE FUTURE OF DISABILITY

Sec. 4241. Establishment.

Sec. 4242. Duties of the commission.

Sec. 4243. Membership.

Sec. 4244. Staff and support services.

Sec. 4245. Powers of commission.

Sec. 4246. Reports.

Sec. 4247. Termination.

Sec. 4248. Authorization of appropriations.

Subtitle C—Child Support

Sec. 4300. Reference to Social Security Act.

CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
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Sec. 4301. State obligation to provide child support enforcement services.

Sec. 4302. Distribution of child support collections.

Sec. 4303. Privacy safeguards.

Sec. 4304. Rights to notification of hearings.

CHAPTER 2—LOCATE AND CASE TRACKING

Sec. 4311. State case registry.

Sec. 4312. Collection and disbursement of support payments.

Sec. 4313. State directory of new hires.

Sec. 4314. Amendments concerning income withholding.

Sec. 4315. Locator information from interstate networks.

Sec. 4316. Expansion of the Federal Parent Locator Service.

Sec. 4317. Collection and use of social security numbers for use in child support enforcement.

CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 4321. Adoption of uniform State laws.

Sec. 4322. Improvements to full faith and credit for child support orders.

Sec. 4323. Administrative enforcement in interstate cases.

Sec. 4324. Use of forms in interstate enforcement.

Sec. 4325. State laws providing expedited procedures.

CHAPTER 4—PATERNITY ESTABLISHMENT

Sec. 4331. State laws concerning paternity establishment.

Sec. 4332. Outreach for voluntary paternity establishment.

Sec. 4333. Cooperation by applicants for and recipients of part A assistance.

CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING

Sec. 4341. Performance-based incentives and penalties.

Sec. 4342. Federal and State reviews and audits.

Sec. 4343. Required reporting procedures.

Sec. 4344. Automated data processing requirements.

Sec. 4345. Technical assistance.

Sec. 4346. Reports and data collection by the Secretary.

Sec. 4347. Child support delinquency penalty.

CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 4351. Simplified process for review and adjustment of child support orders.

Sec. 4352. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 4353. Nonliability for financial institutions providing financial records to

State child support enforcement agencies in child support

cases.

CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS

Sec. 4361. Internal Revenue Service collection of arrearages.

Sec. 4362. Authority to collect support from Federal employees.

Sec. 4363. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 4364. Voiding of fraudulent transfers.

Sec. 4365. Work requirement for persons owing past-due child support.
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Sec. 4366. Definition of support order.

Sec. 4367. Reporting arrearages to credit bureaus.

Sec. 4368. Liens.

Sec. 4369. State law authorizing suspension of licenses.

Sec. 4370. Denial of passports for nonpayment of child support.

Sec. 4371. International support enforcement.

Sec. 4372. Financial institution data matches.

Sec. 4373. Enforcement of orders against paternal or maternal grandparents in

cases of minor parents.

Sec. 4374. Nondischargeability in bankruptcy of certain debts for the support

of a child.

CHAPTER 8—MEDICAL SUPPORT

Sec. 4376. Correction to ERISA definition of medical child support order.

Sec. 4377. Enforcement of orders for health care coverage.

CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NONRESIDENTIAL PARENTS

Sec. 4381. Grants to States for access and visitation programs.

CHAPTER 10—EFFECTIVE DATES AND CONFORMING AMENDMENTS

Sec. 4391. Effective dates and conforming amendments.

Subtitle D—Restricting Welfare and Public Benefits for Aliens

Sec. 4400. Statements of national policy concerning welfare and immigration.

CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS

Sec. 4401. Aliens who are not qualified aliens ineligible for Federal public benefits.

Sec. 4402. Limited eligibility of qualified aliens for certain Federal programs.

Sec. 4403. Five-year limited eligibility of qualified aliens for Federal meanstested public benefit.

Sec. 4404. Notification and information reporting.

CHAPTER 2—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS

PROGRAMS

Sec. 4411. Aliens who are not qualified aliens or nonimmigrants ineligible for

State and local public benefits.

Sec. 4412. State authority to limit eligibility of qualified aliens for State public

benefits.

CHAPTER 3—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT

Sec. 4421. Federal attribution of sponsor’s income and resources to alien.

Sec. 4422. Authority for States to provide for attribution of sponsors income

and resources to the alien with respect to State programs.

Sec. 4423. Requirements for sponsor’s affidavit of support.

CHAPTER 4—GENERAL PROVISIONS

Sec. 4431. Definitions.

Sec. 4432. Verification of eligibility for Federal public benefits.

Sec. 4433. Statutory construction.
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Sec. 4434. Communication between State and local government agencies and

the Immigration and Naturalization Service.

Sec. 4435. Qualifying quarters.

CHAPTER 5—CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING

Sec. 4441. Conforming amendments relating to assisted housing.

CHAPTER 6—EARNED INCOME CREDIT DENIED TO UNAUTHORIZED

EMPLOYEES

Sec. 4451. Earned income credit denied to individuals not authorized to be employed in the United States.

Subtitle E—Reform of Public Housing

Sec. 4601. Fraud under means-tested welfare and public assistance programs.

Subtitle F—Child Protection Block Grant Programs and Foster Care,

Adoption Assistance, and Independent Living Programs

CHAPTER 1—CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER

CARE, ADOPTION ASSISTANCE, AND INDEPENDENT LIVING PROGRAMS

SUBCHAPTER A—BLOCK GRANTS TO STATES FOR THE PROTECTION OF

CHILDREN

Sec. 4701. Establishment of program.

Sec. 4702. Conforming amendments.

SUBCHAPTER B—FOSTER CARE, ADOPTION ASSISTANCE, AND INDEPENDENT

LIVING PROGRAMS

Sec. 4711. Conforming amendments to part E of title IV.

SUBCHAPTER C—MISCELLANEOUS

Sec. 4721. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 4722. Sense of the Congress regarding timely adoption of children.

Sec. 4723. Removal of barriers to interethnic adoption.

Sec. 4724. Effective date; transition rules.

CHAPTER 2—CHILD AND FAMILY SERVICES BLOCK GRANT

Sec. 4751. Child and family services block grant.

Sec. 4752. Reauthorizations.

Sec. 4753. Repeals.

Subtitle G—Reductions in Federal Government Positions

Sec. 4801. Reductions.

Sec. 4802. Reductions in Federal bureaucracy.

Sec. 4803. Reducing personnel in Washington, D.C. area.

Subtitle H—Miscellaneous

Sec. 4901. Appropriation by State legislatures.

Sec. 4902. Sanctioning for testing positive for controlled substances.

Sec. 4903. Reduction in block grants to States for social services.
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1 Subtitle A—Block Grants for Tem2 porary Assistance for Needy

3 Families

4 SEC. 4101. FINDINGS.

5 The Congress makes the following findings:

6 (1) Marriage is the foundation of a successful

7 society.

8 (2) Marriage is an essential institution of a suc9 cessful society which promotes the interests of chil10 dren.

11 (3) Promotion of responsible fatherhood and

12 motherhood is integral to successful child rearing

13 and the well-being of children.

14 (4) In 1992, only 54 percent of single-parent

15 families with children had a child support order es16 tablished and, of that 54 percent, only about one17 half received the full amount due. Of the cases en18 forced through the public child support enforcement

19 system, only 18 percent of the caseload has a collec20 tion.

21 (5) The number of individuals receiving aid to

22 families with dependent children (in this section re23 ferred to as ‘‘AFDC’’) has more than tripled since

24 1965. More than two-thirds of these recipients are

25 children. Eighty-nine percent of children receiving
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1 AFDC benefits now live in homes in which no father

2 is present.

3 (A)(i) The average monthly number of

4 children receiving AFDC benefits—

5 (I) was 3,300,000 in 1965;

6 (II) was 6,200,000 in 1970;

7 (III) was 7,400,000 in 1980; and

8 (IV) was 9,300,000 in 1992.

9 (ii) While the number of children receiving

10 AFDC benefits increased nearly threefold be11 tween 1965 and 1992, the total number of chil12 dren in the United States aged 0 to 18 has de13 clined by 5.5 percent.

14 (B) The Department of Health and

15 Human Services has estimated that 12,000,000

16 children will receive AFDC benefits within 10

17 years.

18 (C) The increase in the number of children

19 receiving public assistance is closely related to

20 the increase in births to unmarried women. Be21 tween 1970 and 1991, the percentage of live

22 births to unmarried women increased nearly

23 threefold, from 10.7 percent to 29.5 percent.

24 (6) The increase of out-of-wedlock pregnancies

25 and births is well documented as follows:
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1 (A) It is estimated that the rate of non2 marital teen pregnancy rose 23 percent from 54

3 pregnancies per 1,000 unmarried teenagers in

4 1976 to 66.7 pregnancies in 1991. The overall

5 rate of nonmarital pregnancy rose 14 percent

6 from 90.8 pregnancies per 1,000 unmarried

7 women in 1980 to 103 in both 1991 and 1992.

8 In contrast, the overall pregnancy rate for mar9 ried couples decreased 7.3 percent between

10 1980 and 1991, from 126.9 pregnancies per

11 1,000 married women in 1980 to 117.6 preg12 nancies in 1991.

13 (B) The total of all out-of-wedlock births

14 between 1970 and 1991 has risen from 10.7

15 percent to 29.5 percent and if the current trend

16 continues, 50 percent of all births by the year

17 2015 will be out-of-wedlock.

18 (7) The negative consequences of an out-of-wed19 lock birth on the mother, the child, the family, and

20 society are well documented as follows:

21 (A) Young women 17 and under who give

22 birth outside of marriage are more likely to go

23 on public assistance and to spend more years

24 on welfare once enrolled. These combined ef25 fects of ‘‘younger and longer’’ increase total
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1 AFDC costs per household by 25 percent to 30

2 percent for 17-year-olds.

3 (B) Children born out-of-wedlock have a

4 substantially higher risk of being born at a very

5 low or moderately low birth weight.

6 (C) Children born out-of-wedlock are more

7 likely to experience low verbal cognitive attain8 ment, as well as more child abuse, and neglect.

9 (D) Children born out-of-wedlock were

10 more likely to have lower cognitive scores, lower

11 educational aspirations, and a greater likelihood

12 of becoming teenage parents themselves.

13 (E) Being born out-of-wedlock significantly

14 reduces the chances of the child growing up to

15 have an intact marriage.

16 (F) Children born out-of-wedlock are 3

17 times more likely to be on welfare when they

18 grow up.

19 (8) Currently 35 percent of children in single20 parent homes were born out-of-wedlock, nearly the

21 same percentage as that of children in single-parent

22 homes whose parents are divorced (37 percent).

23 While many parents find themselves, through divorce

24 or tragic circumstances beyond their control, facing

25 the difficult task of raising children alone, neverthe-
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1 less, the negative consequences of raising children in

2 single-parent homes are well documented as follows:

3 (A) Only 9 percent of married-couple fami4 lies with children under 18 years of age have

5 income below the national poverty level. In con6 trast, 46 percent of female-headed households

7 with children under 18 years of age are below

8 the national poverty level.

9 (B) Among single-parent families, nearly

1 10 ⁄2 of the mothers who never married received

AFDC while only 1 11 ⁄5 of divorced mothers re12 ceived AFDC.

13 (C) Children born into families receiving

14 welfare assistance are 3 times more likely to be

15 on welfare when they reach adulthood than chil16 dren not born into families receiving welfare.

17 (D) Mothers under 20 years of age are at

18 the greatest risk of bearing low-birth-weight ba19 bies.

20 (E) The younger the single parent mother,

21 the less likely she is to finish high school.

22 (F) Young women who have children be23 fore finishing high school are more likely to re24 ceive welfare assistance for a longer period of

25 time.
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1 (G) Between 1985 and 1990, the public

2 cost of births to teenage mothers under the aid

3 to families with dependent children program,

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

6 (H) The absence of a father in the life of

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

9 (I) Children of teenage single parents have

10 lower cognitive scores, lower educational aspira11 tions, and a greater likelihood of becoming teen12 age parents themselves.

13 (J) Children of single-parent homes are 3

14 times more likely to fail and repeat a year in

15 grade school than are children from intact 2-

16 parent families.

17 (K) Children from single-parent homes are

18 almost 4 times more likely to be expelled or sus19 pended from school.

20 (L) Neighborhoods with larger percentages

21 of youth aged 12 through 20 and areas with

22 higher percentages of single-parent households

23 have higher rates of violent crime.

24 (M) Of those youth held for criminal of25 fenses within the State juvenile justice system,
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1 only 29.8 percent lived primarily in a home with

2 both parents. In contrast to these incarcerated

3 youth, 73.9 percent of the 62,800,000 children

4 in the Nation’s resident population were living

5 with both parents.

6 (9) Therefore, in light of this demonstration of

7 the crisis in our Nation, it is the sense of the Con8 gress that prevention of out-of-wedlock pregnancy

9 and reduction in out-of-wedlock birth are very im10 portant Government interests and the policy con11 tained in part A of title IV of the Social Security

12 Act (as amended by section 4103(a) of this Act) is

13 intended to address the crisis.

14 SEC. 4102. REFERENCE TO SOCIAL SECURITY ACT.

15 Except as otherwise specifically provided, wherever in

16 this subtitle an amendment is expressed in terms of an

17 amendment to or repeal of a section or other provision,

18 the reference shall be considered to be made to that sec19 tion or other provision of the Social Security Act.

20 SEC. 4103. BLOCK GRANTS TO STATES.

21 (a) IN GENERAL.—Part A of title IV (42 U.S.C. 601

22 et seq.) is amended—

23 (1) by striking all that precedes section 418 (as

24 added by section 4803(b)(2) of this Act) and insert25 ing the following:
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1 ‘‘PART A—BLOCK GRANTS TO STATES FOR

2 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

3 ‘‘SEC. 401. PURPOSE.

4 ‘‘(a) IN GENERAL.—The purpose of this part is to

5 increase the flexibility of States in operating a program

6 designed to—

7 ‘‘(1) provide assistance to needy families so that

8 children may be cared for in their own homes or in

9 the homes of relatives;

10 ‘‘(2) end the dependence of needy parents on

11 government benefits by promoting job preparation,

12 work, and marriage;

13 ‘‘(3) prevent and reduce the incidence of out-of14 wedlock pregnancies and establish annual numerical

15 goals for preventing and reducing the incidence of

16 these pregnancies; and

17 ‘‘(4) encourage the formation and maintenance

18 of two-parent families.

19 ‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part

20 shall not be interpreted to entitle any individual or family

21 to assistance under any State program funded under this

22 part.

23 ‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.

24 ‘‘(a) IN GENERAL.—As used in this part, the term

25 ‘eligible State’ means, with respect to a fiscal year, a State

26 that, during the 2-year period immediately preceding the
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1 fiscal year, has submitted to the Secretary a plan that the

2 Secretary has found includes the following:

3 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO4 GRAM.—

5 ‘‘(A) GENERAL PROVISIONS.—A written

6 document that outlines how the State intends to

7 do the following:

8 ‘‘(i) Conduct a program, designed to

9 serve all political subdivisions in the State

10 (not necessarily in a uniform manner),

11 that provides assistance to needy families

12 with (or expecting) children and provides

13 parents with job preparation, work, and

14 support services to enable them to leave

15 the program and become self-sufficient.

16 ‘‘(ii) Require a parent or caretaker re17 ceiving assistance under the program to

18 engage in work (as defined by the State)

19 once the State determines the parent or

20 caretaker is ready to engage in work, or

21 once the parent or caretaker has received

22 assistance under the program for 24

23 months (whether or not consecutive),

24 whichever is earlier.
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1 ‘‘(iii) Ensure that parents and care2 takers receiving assistance under the pro3 gram engage in work activities in accord4 ance with section 407.

5 ‘‘(iv) Take such reasonable steps as

6 the State deems necessary to restrict the

7 use and disclosure of information about in8 dividuals and families receiving assistance

9 under the program attributable to funds

10 provided by the Federal Government.

11 ‘‘(B) SPECIAL PROVISIONS.—

12 ‘‘(i) The document shall indicate

13 whether the State intends to treat families

14 moving into the State from another State

15 differently than other families under the

16 program, and if so, how the State intends

17 to treat such families under the program.

18 ‘‘(ii) The document shall indicate

19 whether the State intends to provide as20 sistance under the program to individuals

21 who are not citizens of the United States,

22 and if so, shall include an overview of such

23 assistance.

24 ‘‘(iii) The document shall set forth ob25 jective criteria for the delivery of benefits
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1 and the determination of eligibility and for

2 fair and equitable treatment, including an

3 explanation of how the State will provide

4 opportunities for recipients who have been

5 adversely affected to be heard in a State

6 administrative or appeal process.

7 ‘‘(2) CERTIFICATION THAT THE STATE WILL

8 OPERATE A CHILD SUPPORT ENFORCEMENT PRO9 GRAM.—A certification by the chief executive officer

10 of the State that, during the fiscal year, the State

11 will operate a child support enforcement program

12 under the State plan approved under part D.

13 ‘‘(3) CERTIFICATION THAT THE STATE WILL

14 OPERATE A CHILD PROTECTION PROGRAM.—A cer15 tification by the chief executive officer of the State

16 that, during the fiscal year, the State will operate a

17 child protection program under the State plan ap18 proved under part B.

19 ‘‘(4) CERTIFICATION OF THE ADMINISTRATION

20 OF THE PROGRAM.—A certification by the chief ex21 ecutive officer of the State specifying which State

22 agency or agencies will administer and supervise the

23 program referred to in paragraph (1) for the fiscal

24 year, which shall include assurances that local gov25 ernments and private sector organizations—
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1 ‘‘(A) have been consulted regarding the

2 plan and design of welfare services in the State

3 so that services are provided in a manner ap4 propriate to local populations; and

5 ‘‘(B) have had at least 45 days to submit

6 comments on the plan and the design of such

7 services.

8 ‘‘(5) CERTIFICATION THAT THE STATE WILL

9 PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS10 SISTANCE.—A certification by the chief executive of11 ficer of the State that, during the fiscal year, the

12 State will provide each Indian who is a member of

13 an Indian tribe in the State that does not have a

14 tribal family assistance plan approved under section

15 412 with equitable access to assistance under the

16 State program funded under this part attributable to

17 funds provided by the Federal Government.

18 ‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUM19 MARY.—The State shall make available to the public a

20 summary of any plan submitted by the State under this

21 section.

22 ‘‘SEC. 403. GRANTS TO STATES.

23 ‘‘(a) GRANTS.—

24 ‘‘(1) FAMILY ASSISTANCE GRANT.—
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1 ‘‘(A) IN GENERAL.—Each eligible State

2 shall be entitled to receive from the Secretary,

3 for each of fiscal years 1996, 1997, 1998,

4 1999, 2000, and 2001 a grant in an amount

5 equal to the State family assistance grant.

6 ‘‘(B) STATE FAMILY ASSISTANCE GRANT

7 DEFINED.—As used in this part, the term

8 ‘State family assistance grant’ means the great9 est of—

‘‘(i) 1 10 ⁄3 of the total amount required

11 to be paid to the State under former sec12 tion 403 (as in effect on September 30,

13 1995) for fiscal years 1992, 1993, and

14 1994 (other than with respect to amounts

15 expended by the State for child care under

16 subsection (g) or (i) of former section 402

17 (as so in effect));

18 ‘‘(ii)(I) the total amount required to

19 be paid to the State under former section

20 403 for fiscal year 1994 (other than with

21 respect to amounts expended by the State

22 for child care under subsection (g) or (i) of

23 former section 402 (as so in effect)); plus

24 ‘‘(II) an amount equal to 85 percent

25 of the amount (if any) by which the total
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1 amount required to be paid to the State

2 under former section 403(a)(5) for emer3 gency assistance for fiscal year 1995 ex4 ceeds the total amount required to be paid

5 to the State under former section

6 403(a)(5) for fiscal year 1994, if, during

7 fiscal year 1994 or 1995, the Secretary ap8 proved under former section 402 an

9 amendment to the former State plan to

10 allow the provision of emergency assistance

11 in the context of family preservation; or

‘‘(iii) 4 12 ⁄3 of the total amount required

13 to be paid to the State under former sec14 tion 403 (as in effect on September 30,

15 1995) for the 1st 3 quarters of fiscal year

16 1995 (other than with respect to amounts

17 expended by the State under the State

18 plan approved under part F (as so in ef19 fect) or for child care under subsection (g)

20 or (i) of former section 402 (as so in ef21 fect)), plus the total amount required to be

22 paid to the State for fiscal year 1995

23 under former section 403(l) (as so in ef24 fect).
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1 ‘‘(C) TOTAL AMOUNT REQUIRED TO BE

2 PAID TO THE STATE UNDER FORMER SECTION

3 403 DEFINED.—As used in this part, the term

4 ‘total amount required to be paid to the State

5 under former section 403’ means, with respect

6 to a fiscal year—

7 ‘‘(i) in the case of a State to which

8 section 1108 does not apply, the sum of—

9 ‘‘(I) the Federal share of mainte10 nance assistance expenditures for the

11 fiscal year, before reduction pursuant

12 to subparagraph (B) or (C) of section

13 403(b)(2) (as in effect on September

14 30, 1995), as reported by the State on

15 ACF Form 231;

16 ‘‘(II) the Federal share of admin17 istrative expenditures (including ad18 ministrative expenditures for the de19 velopment of management information

20 systems) for the fiscal year, as re21 ported by the State on ACF Form

22 231;

23 ‘‘(III) the Federal share of emer24 gency assistance expenditures for the
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1 fiscal year, as reported by the State

2 on ACF Form 231;

3 ‘‘(IV) the Federal share of ex4 penditures for the fiscal year with re5 spect to child care pursuant to sub6 sections (g) and (i) of former section

7 402 (as in effect on September 30,

8 1995), as reported by the State on

9 ACF Form 231; and

10 ‘‘(V) the aggregate amount re11 quired to be paid to the State for the

12 fiscal year with respect to the State

13 program operated under part F (as in

14 effect on September 30, 1995), as de15 termined by the Secretary, including

16 additional obligations or reductions in

17 obligations made after the close of the

18 fiscal year; and

19 ‘‘(ii) in the case of a State to which

20 section 1108 applies, the lesser of—

21 ‘‘(I) the sum described in clause

22 (i); or

23 ‘‘(II) the total amount certified

24 by the Secretary under former section
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1 403 (as in effect during the fiscal

2 year) with respect to the territory.

3 ‘‘(D) INFORMATION TO BE USED IN DE4 TERMINING AMOUNTS.—

5 ‘‘(i) FOR FISCAL YEARS 1992 AND

6 1993.—

7 ‘‘(I) In determining the amounts

8 described in subclauses (I) through

9 (IV) of subparagraph (C)(i) for any

10 State for each of fiscal years 1992

11 and 1993, the Secretary shall use in12 formation available as of April 28,

13 1995.

14 ‘‘(II) In determining the amount

15 described in subparagraph (C)(i)(V)

16 for any State for each of fiscal years

17 1992 and 1993, the Secretary shall

18 use information available as of Janu19 ary 6, 1995.

20 ‘‘(ii) FOR FISCAL YEAR 1994.—In de21 termining the amounts described in sub22 paragraph (C)(i) for any State for fiscal

23 year 1994, the Secretary shall use informa24 tion available as of April 28, 1995.

25 ‘‘(iii) FOR FISCAL YEAR 1995.—
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HR 3734 RDS

1 ‘‘(I) In determining the amount

2 described in subparagraph (B)(ii)(II)

3 for any State for fiscal year 1995, the

4 Secretary shall use the information

5 which was reported by the States and

6 estimates made by the States with re7 spect to emergency assistance expend8 itures and was available as of August

9 11, 1995.

10 ‘‘(II) In determining the amounts

11 described in subclauses (I) through

12 (III) of subparagraph (C)(i) for any

13 State for fiscal year 1995, the Sec14 retary shall use information available

15 as of October 2, 1995.

16 ‘‘(III) In determining the amount

17 described in subparagraph (C)(i)(IV)

18 for any State for fiscal year 1995, the

19 Secretary shall use information avail20 able as of February 28, 1996.

21 ‘‘(IV) In determining the amount

22 described in subparagraph (C)(i)(V)

23 for any State for fiscal year 1995, the

24 Secretary shall use information avail25 able as of October 5, 1995.
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1 ‘‘(E) APPROPRIATION.—Out of any money

2 in the Treasury of the United States not other3 wise appropriated, there are appropriated for

4 fiscal years 1996, 1997, 1998, 1999, 2000, and

5 2001 such sums as are necessary for grants

6 under this paragraph.

7 ‘‘(2) GRANT TO REWARD STATES THAT REDUCE

8 OUT-OF-WEDLOCK BIRTHS.—

9 ‘‘(A) IN GENERAL.—Each eligible State

10 shall be entitled to receive from the Secretary

11 for fiscal year 1998 or any succeeding fiscal

12 year, a grant in an amount equal to the State

13 family assistance grant multiplied by—

14 ‘‘(i) 5 percent if—

15 ‘‘(I) the illegitimacy ratio of the

16 State for the fiscal year is at least 1

17 percentage point lower than the ille18 gitimacy ratio of the State for fiscal

19 year 1995; and

20 ‘‘(II) the rate of induced preg21 nancy terminations in the State for

22 the fiscal year is less than the rate of

23 induced pregnancy terminations in the

24 State for fiscal year 1995; or

25 ‘‘(ii) 10 percent if—
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1 ‘‘(I) the illegitimacy ratio of the

2 State for the fiscal year is at least 2

3 percentage points lower than the ille4 gitimacy ratio of the State for fiscal

5 year 1995; and

6 ‘‘(II) the rate of induced preg7 nancy terminations in the State for

8 the fiscal year is less than the rate of

9 induced pregnancy terminations in the

10 State for fiscal year 1995.

11 ‘‘(B) ILLEGITIMACY RATIO.—As used in

12 this paragraph, the term ‘illegitimacy ratio’

13 means, with respect to a State and a fiscal

14 year—

15 ‘‘(i) the number of out-of-wedlock

16 births that occurred in the State during

17 the most recent fiscal year for which such

18 information is available; divided by

19 ‘‘(ii) the number of births that oc20 curred in the State during the most recent

21 fiscal year for which such information is

22 available.

23 ‘‘(C) DISREGARD OF CHANGES IN DATA

24 DUE TO CHANGED REPORTING METHODS.—For
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1 purposes of subparagraph (A), the Secretary

2 shall disregard—

3 ‘‘(i) any difference between the illegit4 imacy ratio of a State for a fiscal year and

5 the illegitimacy ratio of the State for fiscal

6 year 1995 which is attributable to a

7 change in State methods of reporting data

8 used to calculate the illegitimacy ratio; and

9 ‘‘(ii) any difference between the rate

10 of induced pregnancy terminations in a

11 State for a fiscal year and such rate for

12 fiscal year 1995 which is attributable to a

13 change in State methods of reporting data

14 used to calculate such rate.

15 ‘‘(D) APPROPRIATION.—Out of any money

16 in the Treasury of the United States not other17 wise appropriated, there are appropriated for

18 fiscal year 1998 and for each succeeding fiscal

19 year such sums as are necessary for grants

20 under this paragraph.

21 ‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION

22 INCREASES IN CERTAIN STATES.—

23 ‘‘(A) IN GENERAL.—Each qualifying State

24 shall, subject to subparagraph (F), be entitled

25 to receive from the Secretary—
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1 ‘‘(i) for fiscal year 1997 a grant in an

2 amount equal to 2.5 percent of the total

3 amount required to be paid to the State

4 under former section 403 (as in effect dur5 ing fiscal year 1994) for fiscal year 1994;

6 and

7 ‘‘(ii) for each of fiscal years 1998,

8 1999, and 2000, a grant in an amount

9 equal to the sum of—

10 ‘‘(I) the amount (if any) required

11 to be paid to the State under this

12 paragraph for the immediately preced13 ing fiscal year; and

14 ‘‘(II) 2.5 percent of the sum of—

15 ‘‘(aa) the total amount re16 quired to be paid to the State

17 under former section 403 (as in

18 effect during fiscal year 1994)

19 for fiscal year 1994; and

20 ‘‘(bb) the amount (if any)

21 required to be paid to the State

22 under this paragraph for the fis23 cal year preceding the fiscal year

24 for which the grant is to be

25 made.
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1 ‘‘(B) PRESERVATION OF GRANT WITHOUT

2 INCREASES FOR STATES FAILING TO REMAIN

3 QUALIFYING STATES.—Each State that is not a

4 qualifying State for a fiscal year specified in

5 subparagraph (A)(ii) but was a qualifying State

6 for a prior fiscal year shall, subject to subpara7 graph (F), be entitled to receive from the Sec8 retary for the specified fiscal year, a grant in

9 an amount equal to the amount required to be

10 paid to the State under this paragraph for the

11 most recent fiscal year for which the State was

12 a qualifying State.

13 ‘‘(C) QUALIFYING STATE.—

14 ‘‘(i) IN GENERAL.—For purposes of

15 this paragraph, a State is a qualifying

16 State for a fiscal year if—

17 ‘‘(I) the level of welfare spending

18 per poor person by the State for the

19 immediately preceding fiscal year is

20 less than the national average level of

21 State welfare spending per poor per22 son for such preceding fiscal year; and

23 ‘‘(II) the population growth rate

24 of the State (as determined by the

25 Bureau of the Census) for the most
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1 recent fiscal year for which informa2 tion is available exceeds the average

3 population growth rate for all States

4 (as so determined) for such most re5 cent fiscal year.

6 ‘‘(ii) STATE MUST QUALIFY IN FISCAL

7 YEAR 1997.—Notwithstanding clause (i), a

8 State shall not be a qualifying State for

9 any fiscal year after 1997 by reason of

10 clause (i) if the State is not a qualifying

11 State for fiscal year 1997 by reason of

12 clause (i).

13 ‘‘(iii) CERTAIN STATES DEEMED

14 QUALIFYING STATES.—For purposes of

15 this paragraph, a State is deemed to be a

16 qualifying State for fiscal years 1997,

17 1998, 1999, and 2000 if—

18 ‘‘(I) the level of welfare spending

19 per poor person by the State for fiscal

20 year 1996 is less than 35 percent of

21 the national average level of State

22 welfare spending per poor person for

23 fiscal year 1996; or

24 ‘‘(II) the population of the State

25 increased by more than 10 percent
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1 from April 1, 1990 to July 1, 1994,

2 according to the population estimates

3 in publication CB94–204 of the Bu4 reau of the Census.

5 ‘‘(D) DEFINITIONS.—As used in this para6 graph:

7 ‘‘(i) LEVEL OF WELFARE SPENDING

8 PER POOR PERSON.—The term ‘level of

9 State welfare spending per poor person’

10 means, with respect to a State and a fiscal

11 year—

12 ‘‘(I) the sum of—

13 ‘‘(aa) the total amount re14 quired to be paid to the State

15 under former section 403 (as in

16 effect during fiscal year 1994)

17 for fiscal year 1994; and

18 ‘‘(bb) the amount (if any)

19 paid to the State under this

20 paragraph for the immediately

21 preceding fiscal year; divided by

22 ‘‘(II) the number of individuals,

23 according to the 1990 decennial cen24 sus, who were residents of the State
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1 and whose income was below the pov2 erty line.

3 ‘‘(ii) NATIONAL AVERAGE LEVEL OF

4 STATE WELFARE SPENDING PER POOR

5 PERSON.—The term ‘national average level

6 of State welfare spending per poor person’

7 means, with respect to a fiscal year, an

8 amount equal to—

9 ‘‘(I) the total amount required to

10 be paid to the States under former

11 section 403 (as in effect during fiscal

12 year 1994) for fiscal year 1994; di13 vided by

14 ‘‘(II) the number of individuals,

15 according to the 1990 decennial cen16 sus, who were residents of any State

17 and whose income was below the pov18 erty line.

19 ‘‘(iii) STATE.—The term ‘State’

20 means each of the 50 States of the United

21 States and the District of Columbia.

22 ‘‘(E) APPROPRIATION.—Out of any money

23 in the Treasury of the United States not other24 wise appropriated, there are appropriated for

25 fiscal years 1997, 1998, 1999, and 2000 such
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1 sums as are necessary for grants under this

2 paragraph, in a total amount not to exceed

3 $800,000,000.

4 ‘‘(F) GRANTS REDUCED PRO RATA IF IN5 SUFFICIENT APPROPRIATIONS.—If the amount

6 appropriated pursuant to this paragraph for a

7 fiscal year is less than the total amount of pay8 ments otherwise required to be made under this

9 paragraph for the fiscal year, then the amount

10 otherwise payable to any State for the fiscal

11 year under this paragraph shall be reduced by

12 a percentage equal to the amount so appro13 priated divided by such total amount.

14 ‘‘(G) BUDGET SCORING.—Notwithstanding

15 section 257(b)(2) of the Balanced Budget and

16 Emergency Deficit Control Act of 1985, the

17 baseline shall assume that no grant shall be

18 made under this paragraph after fiscal year

19 2000.

20 ‘‘(4) BONUS TO REWARD HIGH PERFORMANCE

21 STATES.—

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

23 make a grant pursuant to this paragraph to

24 each State for each bonus year for which the

25 State is a high performing State.
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1 ‘‘(B) AMOUNT OF GRANT.—

2 ‘‘(i) IN GENERAL.—Subject to clause

3 (ii) of this subparagraph, the Secretary

4 shall determine the amount of the grant

5 payable under this paragraph to a high

6 performing State for a bonus year, which

7 shall be based on the score assigned to the

8 State under subparagraph (D)(i) for the

9 fiscal year that immediately precedes the

10 bonus year.

11 ‘‘(ii) LIMITATION.—The amount pay12 able to a State under this paragraph for a

13 bonus year shall not exceed 5 percent of

14 the State family assistance grant.

15 ‘‘(C) FORMULA FOR MEASURING STATE

16 PERFORMANCE.—Not later than 1 year after

17 the date of the enactment of the Personal Re18 sponsibility and Work Opportunity Act of 1996,

19 the Secretary, in consultation with the National

20 Governors’ Association and the American Pub21 lic Welfare Association, shall develop a formula

22 for measuring State performance in operating

23 the State program funded under this part so as

24 to achieve the goals set forth in section 401(a).
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HR 3734 RDS

1 ‘‘(D) SCORING OF STATE PERFORMANCE;

2 SETTING OF PERFORMANCE THRESHOLDS.—

3 For each bonus year, the Secretary shall—

4 ‘‘(i) use the formula developed under

5 subparagraph (C) to assign a score to each

6 eligible State for the fiscal year that imme7 diately precedes the bonus year; and

8 ‘‘(ii) prescribe a performance thresh9 old in such a manner so as to ensure

10 that—

11 ‘‘(I) the average annual total

12 amount of grants to be made under

13 this paragraph for each bonus year

14 equals $100,000,000; and

15 ‘‘(II) the total amount of grants

16 to be made under this paragraph for

17 all bonus years equals $500,000,000.

18 ‘‘(E) DEFINITIONS.—As used in this para19 graph:

20 ‘‘(i) BONUS YEAR.—The term ‘bonus

21 year’ means fiscal years 1999, 2000, 2001,

22 2002, and 2003.

23 ‘‘(ii) HIGH PERFORMING STATE.—The

24 term ‘high performing State’ means, with

25 respect a bonus year, an eligible State
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1 whose score assigned pursuant to subpara2 graph (D)(i) for the fiscal year imme3 diately preceding the bonus year equals or

4 exceeds the performance threshold pre5 scribed under subparagraph (D)(ii) for

6 such preceding fiscal year.

7 ‘‘(F) APPROPRIATION.—Out of any money

8 in the Treasury of the United States not other9 wise appropriated, there are appropriated for

10 fiscal years 1999 through 2003 $500,000,000

11 for grants under this paragraph.

12 ‘‘(5) SUPPLEMENTAL GRANT FOR OPERATION

13 OF WORK PROGRAM.—

14 ‘‘(A) APPLICATION REQUIREMENTS.—An

15 eligible State may submit to the Secretary an

16 application for additional funds to meet the re17 quirements of section 407 with respect to a fis18 cal year if the Secretary determines that—

19 ‘‘(i) the total expenditures of the

20 State to meet such requirements for the

21 fiscal year exceed the total expenditures of

22 the State during fiscal year 1994 to carry

23 out part F (as in effect on September 30,

24 1994);
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1 ‘‘(ii) the work programs of the State

2 under this section are coordinated with the

3 job training programs established by title

4 II of the Job Training Partnership Act, or

5 (if such title is repealed by an Act that be6 comes law during the 104th Congress) the

7 Act that repeals such title; and

8 ‘‘(iii) the State needs additional funds

9 to meet such requirements or certifies that

10 it intends to exceed such requirements.

11 ‘‘(B) GRANTS.—The Secretary may make

12 a grant to any eligible State which submits an

13 application in accordance with subparagraph

14 (A) for a fiscal year in an amount equal to the

15 Federal medical assistance percentage of the

16 amount (if any) by which the total expenditures

17 of the State to meet or exceed the requirements

18 of section 407 for the fiscal year exceeds the

19 total expenditures of the State during fiscal

20 year 1994 to carry out part F (as in effect on

21 September 30, 1994).

22 ‘‘(C) REGULATIONS.—The Secretary shall

23 issue regulations providing for the equitable dis24 tribution of funds under this paragraph.
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1 ‘‘(D) AUTHORIZATION OF APPROPRIA2 TIONS.—

3 ‘‘(i) IN GENERAL.—There are author4 ized to be appropriated for grants under

5 this paragraph $3,000,000,000 for fiscal

6 year 1999.

7 ‘‘(ii) AVAILABILITY.—Amounts appro8 priated pursuant to clause (i) are author9 ized to remain available until expended.

10 ‘‘(b) CONTINGENCY FUND.—

11 ‘‘(1) ESTABLISHMENT.—There is hereby estab12 lished in the Treasury of the United States a fund

13 which shall be known as the ‘Contingency Fund for

14 State Welfare Programs’ (in this section referred to

15 as the ‘Fund’).

16 ‘‘(2) DEPOSITS INTO FUND.—Out of any money

17 in the Treasury of the United States not otherwise

18 appropriated, there are appropriated for fiscal years

19 1997, 1998, 1999, 2000, and 2001 such sums as are

20 necessary for payment to the Fund in a total

21 amount not to exceed $2,000,000,000.

22 ‘‘(3) GRANTS.—

23 ‘‘(A) PROVISIONAL PAYMENTS.—If an eli24 gible State submits to the Secretary a request

25 for funds under this paragraph during an eligi-
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1 ble month, the Secretary shall, subject to this

2 paragraph, pay to the State, from amounts ap3 propriated pursuant to paragraph (2), an

4 amount equal to the amount of funds so re5 quested.

6 ‘‘(B) PAYMENT PRIORITY.—The Secretary

7 shall make payments under subparagraph (A)

8 in the order in which the Secretary receives re9 quests for such payments.

10 ‘‘(C) LIMITATIONS.—

11 ‘‘(i) MONTHLY PAYMENT TO A

12 STATE.—The total amount paid to a single

13 State under subparagraph (A) during a

month shall not exceed 1 14 ⁄12 of 20 percent

15 of the State family assistance grant.

16 ‘‘(ii) PAYMENTS TO ALL STATES.—

17 The total amount paid to all States under

18 subparagraph (A) during fiscal years 1997

19 through 2001 shall not exceed the total

20 amount appropriated pursuant to para21 graph (2).

22 ‘‘(4) ANNUAL RECONCILIATION.—Notwithstand23 ing paragraph (3), at the end of each fiscal year,

24 each State shall remit to the Secretary an amount

25 equal to the amount (if any) by which the total
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1 amount paid to the State under paragraph (3) dur2 ing the fiscal year exceeds—

3 ‘‘(A) the Federal medical assistance per4 centage for the State for the fiscal year (as de5 fined in section 1905(b), as in effect on Sep6 tember 30, 1995) of the amount (if any) by

7 which the expenditures under the State pro8 gram funded under this part for the fiscal year

9 exceed historic State expenditures (as defined in

10 section 409(a)(7)(B)(iii)); multiplied by

‘‘(B) 1 11 ⁄12 times the number of months dur12 ing the fiscal year for which the Secretary

13 makes a payment to the State under this sub14 section.

15 ‘‘(5) ELIGIBLE MONTH.—As used in paragraph

16 (3)(A), the term ‘eligible month’ means, with respect

17 to a State, a month in the 2-month period that be18 gins with any month for which the State is a needy

19 State.

20 ‘‘(6) NEEDY STATE.—For purposes of para21 graph (5), a State is a needy State for a month if—

22 ‘‘(A) the average rate of—

23 ‘‘(i) total unemployment in such State

24 (seasonally adjusted) for the period con25 sisting of the most recent 3 months for
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1 which data for all States are published

2 equals or exceeds 6.5 percent; and

3 ‘‘(ii) total unemployment in such

4 State (seasonally adjusted) for the 3-

5 month period equals or exceeds 110 per6 cent of such average rate for either (or

7 both) of the corresponding 3-month periods

8 ending in the 2 preceding calendar years;

9 or

10 ‘‘(B) as determined by the Secretary of

11 Agriculture (in the discretion of the Secretary

12 of Agriculture), the monthly average number of

13 individuals (as of the last day of each month)

14 participating in the food stamp program in the

15 State in the then most recently concluded 3-

16 month period for which data are available ex17 ceeds by not less than 10 percent the lesser

18 of—

19 ‘‘(i) the monthly average number of

20 individuals (as of the last day of each

21 month) in the State that would have par22 ticipated in the food stamp program in the

23 corresponding 3-month period in fiscal

24 year 1994 if the amendments made by

25 subtitles D and J of the Personal Respon-
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1 sibility and Work Opportunity Act of 1996

2 had been in effect throughout fiscal year

3 1994; or

4 ‘‘(ii) the monthly average number of

5 individuals (as of the last day of each

6 month) in the State that would have par7 ticipated in the food stamp program in the

8 corresponding 3-month period in fiscal

9 year 1995 if the amendments made by

10 subtitles D and J of the Personal Respon11 sibility and Work Opportunity Act of 1996

12 had been in effect throughout fiscal year

13 1995.

14 ‘‘(7) OTHER TERMS DEFINED.—As used in this

15 subsection:

16 ‘‘(A) STATE.—The term ‘State’ means

17 each of the 50 States of the United States and

18 the District of Columbia.

19 ‘‘(B) SECRETARY.—The term ‘Secretary’

20 means the Secretary of the Treasury.

21 ‘‘(8) ANNUAL REPORTS.—The Secretary shall

22 annually report to the Congress on the status of the

23 Fund.

24 ‘‘(9) BUDGET SCORING.—Notwithstanding sec25 tion 257(b)(2) of the Balanced Budget and Emer-
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1 gency Deficit Control Act of 1985, the baseline shall

2 assume that no grant shall be made under this sub3 section after fiscal year 2001.

4 ‘‘SEC. 404. USE OF GRANTS.

5 ‘‘(a) GENERAL RULES.—Subject to this part, a State

6 to which a grant is made under section 403 may use the

7 grant—

8 ‘‘(1) in any manner that is reasonably cal9 culated to accomplish the purpose of this part, in10 cluding to provide low income households with as11 sistance in meeting home heating and cooling costs;

12 or

13 ‘‘(2) in any manner that the State was author14 ized to use amounts received under part A or F, as

15 such parts were in effect on September 30, 1995.

16 ‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINIS17 TRATIVE PURPOSES.—

18 ‘‘(1) LIMITATION.—A State to which a grant is

19 made under section 403 shall not expend more than

20 15 percent of the grant for administrative purposes.

21 ‘‘(2) EXCEPTION.—Paragraph (1) shall not

22 apply to the use of a grant for information tech23 nology and computerization needed for tracking or

24 monitoring required by or under this part.
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1 ‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMI2 GRANTS UNDER RULES OF FORMER STATE.—A State op3 erating a program funded under this part may apply to

4 a family the rules (including benefit amounts) of the pro5 gram funded under this part of another State if the family

6 has moved to the State from the other State and has re7 sided in the State for less than 12 months.

8 ‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR

9 OTHER PURPOSES.—

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

11 than 30 percent of the amount of the grant made to

12 the State under section 403 for a fiscal year to carry

13 out a State program pursuant to any or all of the

14 following provisions of law:

15 ‘‘(A) Part B or E of this title.

16 ‘‘(B) Title XX of this Act.

17 ‘‘(C) The Child Care and Development

18 Block Grant Act of 1990.

19 ‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE

20 TO TITLE XX PROGRAMS.—Notwithstanding paragraph (1), not more than 1 21 ⁄3 of the total amount

22 paid to a State under this part for a fiscal year that

23 is used to carry out State programs pursuant to pro24 visions of law specified in paragraph (1) may be
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1 used to carry out State programs pursuant to title

2 XX.

3 ‘‘(3) APPLICABLE RULES.—

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

5 subparagraph (B) of this paragraph, any

6 amount paid to a State under this part that is

7 used to carry out a State program pursuant to

8 a provision of law specified in paragraph (1)

9 shall not be subject to the requirements of this

10 part, but shall be subject to the requirements

11 that apply to Federal funds provided directly

12 under the provision of law to carry out the pro13 gram.

14 ‘‘(B) EXCEPTION RELATING TO TITLE XX

15 PROGRAMS.—All amounts paid to a State under

16 this part that are used to carry out State pro17 grams pursuant to title XX shall be used only

18 for programs and services to children or their

19 families.

20 ‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS

21 FOR ASSISTANCE.—A State may reserve amounts paid to

22 the State under this part for any fiscal year for the pur23 pose of providing, without fiscal year limitation, assistance

24 under the State program funded under this part.
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1 ‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACE2 MENT PROGRAM.—A State to which a grant is made under

3 section 403 may use the grant to make payments (or pro4 vide job placement vouchers) to State-approved public and

5 private job placement agencies that provide employment

6 placement services to individuals who receive assistance

7 under the State program funded under this part.

8 ‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT

9 TRANSFER SYSTEM.—A State to which a grant is made

10 under section 403 is encouraged to implement an elec11 tronic benefit transfer system for providing assistance

12 under the State program funded under this part, and may

13 use the grant for such purpose.

14 ‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.

15 ‘‘(a) QUARTERLY.—The Secretary shall pay each

16 grant payable to a State under section 403 in quarterly

17 installments.

18 ‘‘(b) NOTIFICATION.—Not later than 3 months before

19 the payment of any such quarterly installment to a State,

20 the Secretary shall notify the State of the amount of any

21 reduction determined under section 412(a)(1)(B) with re22 spect to the State.

23 ‘‘(c) COMPUTATION AND CERTIFICATION OF PAY24 MENTS TO STATES.—
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1 ‘‘(1) COMPUTATION.—The Secretary shall esti2 mate the amount to be paid to each eligible State for

3 each quarter under this part, such estimate to be

4 based on a report filed by the State containing an

5 estimate by the State of the total sum to be ex6 pended by the State in the quarter under the State

7 program funded under this part and such other in8 formation as the Secretary may find necessary.

9 ‘‘(2) CERTIFICATION.—The Secretary of Health

10 and Human Services shall certify to the Secretary of

11 the Treasury the amount estimated under paragraph

12 (1) with respect to a State, reduced or increased to

13 the extent of any overpayment or underpayment

14 which the Secretary of Health and Human Services

15 determines was made under this part to the State

16 for any prior quarter and with respect to which ad17 justment has not been made under this paragraph.

18 ‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi19 cation under subsection (c)(2) with respect to a State, the

20 Secretary of the Treasury shall, through the Fiscal Service

21 of the Department of the Treasury and before audit or

22 settlement by the General Accounting Office, pay to the

23 State, at the time or times fixed by the Secretary of

24 Health and Human Services, the amount so certified.
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1 ‘‘(e) COLLECTION OF STATE OVERPAYMENTS TO

2 FAMILIES FROM FEDERAL TAX REFUNDS.—

3 ‘‘(1) IN GENERAL.—Upon receiving notice from

4 the Secretary of Health and Human Services that a

5 State agency administering a program funded under

6 this part has notified the Secretary that a named in7 dividual has been overpaid under the State program

8 funded under this part, the Secretary of the Treas9 ury shall determine whether any amounts as refunds

10 of Federal taxes paid are payable to such individual,

11 regardless of whether the individual filed a tax re12 turn as a married or unmarried individual. If the

13 Secretary of the Treasury finds that any such

14 amount is so payable, the Secretary shall withhold

15 from such refunds an amount equal to the overpay16 ment sought to be collected by the State and pay

17 such amount to the State agency.

18 ‘‘(2) REGULATIONS.—The Secretary of the

19 Treasury shall issue regulations, after review by the

20 Secretary of Health and Human services, that pro21 vide—

22 ‘‘(A) that a State may only submit under

23 paragraph (1) requests for collection of over24 payments with respect to individuals—
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1 ‘‘(i) who are no longer receiving as2 sistance under the State program funded

3 under this part;

4 ‘‘(ii) with respect to whom the State

5 has already taken appropriate action under

6 State law against the income or resources

7 of the individuals or families involved to

8 collect the past-due legally enforceable

9 debt; and

10 ‘‘(iii) to whom the State agency has

11 given notice of its intent to request with12 holding by the Secretary of the Treasury

13 from the income tax refunds of such indi14 viduals;

15 ‘‘(B) that the Secretary of the Treasury

16 will give a timely and appropriate notice to any

17 other person filing a joint return with the indi18 vidual whose refund is subject to withholding

19 under paragraph (1); and

20 ‘‘(C) the procedures that the State and the

21 Secretary of the Treasury will follow in carrying

22 out this subsection which, to the maximum ex23 tent feasible and consistent with the provisions

24 of this subsection, will be the same as those is-
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1 sued pursuant to section 464(b) applicable to

2 collection of past-due child support.

3 ‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PRO4 GRAMS.

5 ‘‘(a) LOAN AUTHORITY.—

6 ‘‘(1) IN GENERAL.—The Secretary shall make

7 loans to any loan-eligible State, for a period to ma8 turity of not more than 3 years.

9 ‘‘(2) LOAN-ELIGIBLE STATE.—As used in para10 graph (1), the term ‘loan-eligible State’ means a

11 State against which a penalty has not been imposed

12 under section 409(a)(1).

13 ‘‘(b) RATE OF INTEREST.—The Secretary shall

14 charge and collect interest on any loan made under this

15 section at a rate equal to the current average market yield

16 on outstanding marketable obligations of the United

17 States with remaining periods to maturity comparable to

18 the period to maturity of the loan.

19 ‘‘(c) USE OF LOAN.—A State shall use a loan made

20 to the State under this section only for any purpose for

21 which grant amounts received by the State under section

22 403(a) may be used, including—

23 ‘‘(1) welfare anti-fraud activities; and

24 ‘‘(2) the provision of assistance under the State

25 program to Indian families that have moved from
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1 the service area of an Indian tribe with a tribal fam2 ily assistance plan approved under section 412.

3 ‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO

4 A STATE.—The cumulative dollar amount of all loans

5 made to a State under this section during fiscal years

6 1997 through 2001 shall not exceed 10 percent of the

7 State family assistance grant.

8 ‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTAND9 ING LOANS.—The total dollar amount of loans outstand10 ing under this section may not exceed $1,700,000,000.

11 ‘‘(f) APPROPRIATION.—Out of any money in the

12 Treasury of the United States not otherwise appropriated,

13 there are appropriated such sums as may be necessary for

14 the cost of loans under this section.

15 ‘‘SEC. 407. MANDATORY WORK REQUIREMENTS.

16 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

17 ‘‘(1) ALL FAMILIES.—A State to which a grant

18 is made under section 403 for a fiscal year shall

19 achieve the minimum participation rate specified in

20 the following table for the fiscal year with respect

21 to all families receiving assistance under the State

22 program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1997 ................................................................... 25

1998 ................................................................... 30

1999 ................................................................... 35

2000 ................................................................... 40
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2001 ................................................................... 45

2002 or thereafter ............................................. 50.

1 ‘‘(2) 2-PARENT FAMILIES.—A State to which a

2 grant is made under section 403 for a fiscal year

3 shall achieve the minimum participation rate speci4 fied in the following table for the fiscal year with re5 spect to 2-parent families receiving assistance under

6 the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ................................................................... 50

1997 ................................................................... 75

1998 ................................................................... 75

1999 or thereafter ............................................. 90.

7 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—

8 ‘‘(1) ALL FAMILIES.—

9 ‘‘(A) AVERAGE MONTHLY RATE.—For pur10 poses of subsection (a)(1), the participation

11 rate for all families of a State for a fiscal year

12 is the average of the participation rates for all

13 families of the State for each month in the fis14 cal year.

15 ‘‘(B) MONTHLY PARTICIPATION RATES.—

16 The participation rate of a State for all families

17 of the State for a month, expressed as a per18 centage, is—

19 ‘‘(i) the number of families receiving

20 assistance under the State program funded
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1 under this part that include an adult who

2 is engaged in work for the month; divided

3 by

4 ‘‘(ii) the amount by which—

5 ‘‘(I) the number of families re6 ceiving such assistance during the

7 month that include an adult receiving

8 such assistance; exceeds

9 ‘‘(II) the number of families re10 ceiving such assistance that are sub11 ject in such month to a penalty de12 scribed in subsection (e)(1) but have

13 not been subject to such penalty for

14 more than 3 months within the pre15 ceding 12-month period (whether or

16 not consecutive).

17 ‘‘(2) 2-PARENT FAMILIES.—

18 ‘‘(A) AVERAGE MONTHLY RATE.—For pur19 poses of subsection (a)(2), the participation

20 rate for 2-parent families of a State for a fiscal

21 year is the average of the participation rates for

22 2-parent families of the State for each month in

23 the fiscal year.

24 ‘‘(B) MONTHLY PARTICIPATION RATES.—

25 The participation rate of a State for 2-parent
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1 families of the State for a month shall be cal2 culated by use of the formula set forth in para3 graph (1)(B), except that in the formula the

4 term ‘number of 2-parent families’ shall be sub5 stituted for the term ‘number of families’ each

6 place such latter term appears.

7 ‘‘(3) PRO RATA REDUCTION OF PARTICIPATION

8 RATE DUE TO CASELOAD REDUCTIONS NOT RE9 QUIRED BY FEDERAL LAW.—

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

11 prescribe regulations for reducing the minimum

12 participation rate otherwise required by this

13 section for a fiscal year by the number of per14 centage points equal to the number of percent15 age points (if any) by which—

16 ‘‘(i) the average monthly number of

17 families receiving assistance during the fis18 cal year under the State program funded

19 under this part is less than

20 ‘‘(ii) the average monthly number of

21 families that received aid under the State

22 plan approved under part A (as in effect

23 on September 30, 1995) during fiscal year

24 1995.
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1 The minimum participation rate shall not be re2 duced to the extent that the Secretary deter3 mines that the reduction in the number of fami4 lies receiving such assistance is required by

5 Federal law.

6 ‘‘(B) ELIGIBILITY CHANGES NOT COUNT7 ED.—The regulations described in subpara8 graph (A) shall not take into account families

9 that are diverted from a State program funded

10 under this part as a result of differences in eli11 gibility criteria under a State program funded

12 under this part and eligibility criteria under the

13 State program operated under the State plan

14 approved under part A (as such plan and such

15 part were in effect on September 30, 1995).

16 Such regulations shall place the burden on the

17 Secretary to prove that such families were di18 verted as a direct result of differences in such

19 eligibility criteria.

20 ‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS

21 RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY

22 ASSISTANCE PLAN.—For purposes of paragraphs

23 (1)(B) and (2)(B), a State may, at its option, in24 clude families receiving assistance under a tribal

25 family assistance plan approved under section 412.
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1 ‘‘(5) STATE OPTION FOR PARTICIPATION RE2 QUIREMENT EXEMPTIONS.—For any fiscal year, a

3 State may, at its option, not require an individual

4 who is a single custodial parent caring for a child

5 who has not attained 12 months of age to engage in

6 work and may disregard such an individual in deter7 mining the participation rates under subsection (a).

8 ‘‘(c) ENGAGED IN WORK.—

9 ‘‘(1) ALL FAMILIES.—For purposes of sub10 section (b)(1)(B)(i), a recipient is engaged in work

11 for a month in a fiscal year if the recipient is par12 ticipating in work activities for at least the minimum

13 average number of hours per week specified in the

14 following table during the month, not fewer than 20

15 hours per week of which are attributable to an activ16 ity described in paragraph (1), (2), (3), (4), (5), (6),

17 (7), or (8) of subsection (d):

The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

1996 ............................................................... 20

1997 ............................................................... 20

1998 ............................................................... 20

1999 ............................................................... 25

2000 or thereafter ......................................... 30.

18 ‘‘(2) 2-PARENT FAMILIES.—For purposes of

19 subsection (b)(2)(B)(i), an adult is engaged in work

20 for a month in a fiscal year if the adult is making

21 progress in work activities for at least 35 hours per

22 week during the month, not fewer than 30 hours per
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1 week of which are attributable to an activity de2 scribed in paragraph (1), (2), (3), (4), (5), (6), (7),

3 or (8) of subsection (d).

4 ‘‘(3) LIMITATION ON NUMBER OF WEEKS FOR

5 WHICH JOB SEARCH COUNTS AS WORK.—Notwith6 standing paragraphs (1) and (2), an individual shall

7 not be considered to be engaged in work by virtue

8 of participation in an activity described in subsection

9 (d)(6), after the individual has participated in such

10 an activity for 8 weeks in a fiscal year, or if the par11 ticipation is for a week that is in a fiscal year and

12 that immediately follows 4 consecutive weeks of such

13 participation in the fiscal year. An individual shall

14 be considered to be participating in such an activity

15 for a week if the individual participates in such an

16 activity at any time during the week.

17 ‘‘(4) LIMITATION ON VOCATIONAL EDUCATION

18 ACTIVITIES COUNTED AS WORK.—For purposes of

19 determining monthly participation rates under para20 graphs (1)(B)(i) and (2)(B)(i) of subsection (b), not

21 more than 20 percent of adults in all families and

22 in 2-parent families determined to be engaged in

23 work in the State for a month may meet the work

24 activity requirement through participation in voca25 tional educational training.
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1 ‘‘(5) SINGLE PARENT WITH CHILD UNDER AGE

2 6 DEEMED TO BE MEETING WORK PARTICIPATION

3 REQUIREMENTS IF PARENT IS ENGAGED IN WORK

4 FOR 20 HOURS PER WEEK.—For purposes of deter5 mining monthly participation rates under subsection

6 (b)(1)(B)(i), a recipient in a 1-parent family who is

7 the parent of a child who has not attained 6 years

8 of age is deemed to be engaged in work for a month

9 if the recipient is engaged in work for an average

10 of at least 20 hours per week during the month.

11 ‘‘(6) TEEN HEAD OF HOUSEHOLD WHO MAIN12 TAINS SATISFACTORY SCHOOL ATTENDANCE

13 DEEMED TO BE MEETING WORK PARTICIPATION RE14 QUIREMENTS.—For purposes of determining month15 ly participation rates under subsection (b)(1)(B)(i),

16 a recipient who is a single head of household and

17 has not attained 20 years of age is deemed to be en18 gaged in work for a month in a fiscal year if the re19 cipient—

20 ‘‘(A) maintains satisfactory attendance at

21 secondary school or the equivalent during the

22 month; or

23 ‘‘(B) participates in education directly re24 lated to employment for at least the minimum
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1 average number of hours per week specified in

2 the table set forth in paragraph (1).

3 ‘‘(d) WORK ACTIVITIES DEFINED.—As used in this

4 section, the term ‘work activities’ means—

5 ‘‘(1) unsubsidized employment;

6 ‘‘(2) subsidized private sector employment;

7 ‘‘(3) subsidized public sector employment;

8 ‘‘(4) work experience (including work associated

9 with the refurbishing of publicly assisted housing) if

10 sufficient private sector employment is not available;

11 ‘‘(5) on-the-job training;

12 ‘‘(6) job search and job readiness assistance;

13 ‘‘(7) community service programs;

14 ‘‘(8) vocational educational training (not to ex15 ceed 12 months with respect to any individual);

16 ‘‘(9) job skills training directly related to em17 ployment;

18 ‘‘(10) education directly related to employment,

19 in the case of a recipient who has not received a

20 high school diploma or a certificate of high school

21 equivalency; and

22 ‘‘(11) satisfactory attendance at secondary

23 school, in the case of a recipient who has not com24 pleted secondary school.

25 ‘‘(e) PENALTIES AGAINST INDIVIDUALS.—
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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), if an adult in a family receiving assist3 ance under the State program funded under this

4 part refuses to engage in work required in accord5 ance with this section, the State shall—

6 ‘‘(A) reduce the amount of assistance oth7 erwise payable to the family pro rata (or more,

8 at the option of the State) with respect to any

9 period during a month in which the adult so re10 fuses; or

11 ‘‘(B) terminate such assistance,

12 subject to such good cause and other exceptions as

13 the State may establish.

14 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

15 (1), a State may not reduce or terminate assistance

16 under the State program funded under this part

17 based on a refusal of an adult to work if the adult

18 is a single custodial parent caring for a child who

19 has not attained 11 years of age, and the adult

20 proves that the adult has a demonstrated inability

21 (as determined by the State) to obtain needed child

22 care, for 1 or more of the following reasons:

23 ‘‘(A) Unavailability of appropriate child

24 care within a reasonable distance from the indi25 vidual’s home or work site.
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1 ‘‘(B) Unavailability or unsuitability of in2 formal child care by a relative or under other

3 arrangements.

4 ‘‘(C) Unavailability of appropriate and af5 fordable formal child care arrangements.

6 ‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—

7 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

8 an adult in a family receiving assistance under a

9 State program funded under this part attributable to

10 funds provided by the Federal Government may fill

11 a vacant employment position in order to engage in

12 a work activity described in subsection (d).

13 ‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No

14 adult in a work activity described in subsection (d)

15 which is funded, in whole or in part, by funds pro16 vided by the Federal Government shall be employed

17 or assigned—

18 ‘‘(A) when any other individual is on layoff

19 from the same or any substantially equivalent

20 job; or

21 ‘‘(B) if the employer has terminated the

22 employment of any regular employee or other23 wise caused an involuntary reduction of its

24 workforce in order to fill the vacancy so created

25 with an adult described in paragraph (1).
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1 ‘‘(3) NO PREEMPTION.—Nothing in this sub2 section shall preempt or supersede any provision of

3 State or local law that provides greater protection

4 for employees from displacement.

5 ‘‘(g) SENSE OF THE CONGRESS.—It is the sense of

6 the Congress that in complying with this section, each

7 State that operates a program funded under this part is

8 encouraged to assign the highest priority to requiring

9 adults in 2-parent families and adults in single-parent

10 families that include older preschool or school-age children

11 to be engaged in work activities.

12 ‘‘(h) SENSE OF THE CONGRESS THAT STATES

13 SHOULD IMPOSE CERTAIN REQUIREMENTS ON NON14 CUSTODIAL, NONSUPPORTING MINOR PARENTS.—It is the

15 sense of the Congress that the States should require non16 custodial, nonsupporting parents who have not attained 18

17 years of age to fulfill community work obligations and at18 tend appropriate parenting or money management classes

19 after school.

20 ‘‘(i) REVIEW OF IMPLEMENTATION OF STATE WORK

21 PROGRAMS.—During fiscal year 1999, the Committee on

22 Ways and Means of the House of Representatives and the

23 Committee on Finance of the Senate shall hold hearings

24 and engage in other appropriate activities to review the

25 implementation of this section by the States, and shall in-
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1 vite the Governors of the States to testify before them re2 garding such implementation. Based on such hearings,

3 such Committees may introduce such legislation as may

4 be appropriate to remedy any problems with the State pro5 grams operated pursuant to this section.

6 ‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

7 ‘‘(a) IN GENERAL.—

8 ‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A

9 MINOR CHILD.—A State to which a grant is made

10 under section 403 shall not use any part of the

11 grant to provide assistance to a family, unless the

12 family includes—

13 ‘‘(A) a minor child who resides with a cus14 todial parent or other adult caretaker relative of

15 the child; or

16 ‘‘(B) a pregnant individual.

17 ‘‘(2) NO ADDITIONAL CASH ASSISTANCE FOR

18 CHILDREN BORN TO FAMILIES RECEIVING ASSIST19 ANCE.—

20 ‘‘(A) GENERAL RULE.—A State to which a

21 grant is made under section 403 shall not use

22 any part of the grant to provide cash benefits

23 for a minor child who is born to—

24 ‘‘(i) a recipient of assistance under

25 the program operated under this part; or
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1 ‘‘(ii) a person who received such as2 sistance at any time during the 10-month

3 period ending with the birth of the child.

4 ‘‘(B) EXCEPTION FOR CHILDREN BORN

5 INTO FAMILIES WITH NO OTHER CHILDREN.—

6 Subparagraph (A) shall not apply to a minor

7 child who is born into a family that does not in8 clude any other children.

9 ‘‘(C) EXCEPTION FOR VOUCHERS.—Sub10 paragraph (A) shall not apply to vouchers

11 which are provided in lieu of cash benefits and

12 which may be used only to pay for particular

13 goods and services specified by the State as

14 suitable for the care of the child involved.

15 ‘‘(D) EXCEPTION FOR RAPE OR INCEST.—

16 Subparagraph (A) shall not apply with respect

17 to a child who is born as a result of rape or in18 cest.

19 ‘‘(E) STATE ELECTION TO OPT OUT.—Sub20 paragraph (A) shall not apply to a State if

21 State law specifically exempts the State pro22 gram funded under this part from the applica23 tion of subparagraph (A).
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1 ‘‘(F) SUBSTITUTION OF FAMILY CAPS IN

2 EFFECT UNDER WAIVERS.—Subparagraph (A)

3 shall not apply to a State—

4 ‘‘(i) if, as of the date of the enactment

5 of this part, there is in effect a waiver ap6 proved by the Secretary under section

7 1115 which permits the State to deny aid

8 under the State plan approved under part

9 A of this title (as in effect without regard

10 to the amendments made by subtitle A of

11 the Personal Responsibility and Work Op12 portunity Act of 1996) to a family by rea13 son of the birth of a child to a family

14 member otherwise eligible for such aid; and

15 ‘‘(ii) for so long as the State contin16 ues to implement such policy under the

17 State program funded under this part,

18 under rules prescribed by the State.

19 ‘‘(3) REDUCTION OR ELIMINATION OF ASSIST20 ANCE FOR NONCOOPERATION IN ESTABLISHING PA21 TERNITY OR OBTAINING CHILD SUPPORT.—If the

22 agency responsible for administering the State plan

23 approved under part D determines that an individual

24 is not cooperating with the State in establishing pa25 ternity or in establishing, modifying, or enforcing a
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1 support order with respect to a child of the individ2 ual, and the individual does not qualify for any good

3 cause or other exception established by the State

4 pursuant to section 454(29), then the State—

5 ‘‘(A) shall deduct from the assistance that

6 would otherwise be provided to the family of the

7 individual under the State program funded

8 under this part the share of such assistance at9 tributable to the individual; and

10 ‘‘(B) may deny the family any assistance

11 under the State program.

12 ‘‘(4) NO ASSISTANCE FOR FAMILIES NOT AS13 SIGNING CERTAIN SUPPORT RIGHTS TO THE

14 STATE.—

15 ‘‘(A) IN GENERAL.—A State to which a

16 grant is made under section 403 shall require,

17 as a condition of providing assistance to a fam18 ily under the State program funded under this

19 part, that a member of the family assign to the

20 State any rights the family member may have

21 (on behalf of the family member or of any other

22 person for whom the family member has applied

23 for or is receiving such assistance) to support

24 from any other person, not exceeding the total

25 amount of assistance so provided to the family,
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1 which accrue (or have accrued) before the date

2 the family leaves the program, which assign3 ment, on and after the date the family leaves

4 the program, shall not apply with respect to any

5 support (other than support collected pursuant

6 to section 464) which accrued before the family

7 received such assistance and which the State

8 has not collected by—

9 ‘‘(i) September 30, 2000, if the as10 signment is executed on or after October 1,

11 1997, and before October 1, 2000; or

12 ‘‘(ii) the date the family leaves the

13 program, if the assignment is executed on

14 or after October 1, 2000.

15 ‘‘(B) LIMITATION.—A State to which a

16 grant is made under section 403 shall not re17 quire, as a condition of providing assistance to

18 any family under the State program funded

19 under this part, that a member of the family

20 assign to the State any rights to support de21 scribed in subparagraph (A) which accrue after

22 the date the family leaves the program.

23 ‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS

24 WHO DO NOT ATTEND HIGH SCHOOL OR OTHER

25 EQUIVALENT TRAINING PROGRAM.—A State to
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1 which a grant is made under section 403 shall not

2 use any part of the grant to provide assistance to an

3 individual who has not attained 18 years of age, is

4 not married, has a minor child at least 12 weeks of

5 age in his or her care, and has not successfully com6 pleted a high-school education (or its equivalent), if

7 the individual does not participate in—

8 ‘‘(A) educational activities directed toward

9 the attainment of a high school diploma or its

10 equivalent; or

11 ‘‘(B) an alternative educational or training

12 program that has been approved by the State.

13 ‘‘(6) NO ASSISTANCE FOR TEENAGE PARENTS

14 NOT LIVING IN ADULT-SUPERVISED SETTINGS.—

15 ‘‘(A) IN GENERAL.—

16 ‘‘(i) REQUIREMENT.—Except as pro17 vided in subparagraph (B), a State to

18 which a grant is made under section 403

19 shall not use any part of the grant to pro20 vide assistance to an individual described

21 in clause (ii) of this subparagraph if the

22 individual and the minor child referred to

23 in clause (ii)(II) do not reside in a place of

24 residence maintained by a parent, legal

25 guardian, or other adult relative of the in-
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1 dividual as such parent’s, guardian’s, or

2 adult relative’s own home.

3 ‘‘(ii) INDIVIDUAL DESCRIBED.— For

4 purposes of clause (i), an individual de5 scribed in this clause is an individual

6 who—

7 ‘‘(I) has not attained 18 years of

8 age; and

9 ‘‘(II) is not married, and has a

10 minor child in his or her care.

11 ‘‘(B) EXCEPTION.—

12 ‘‘(i) PROVISION OF, OR ASSISTANCE IN

13 LOCATING, ADULT-SUPERVISED LIVING AR14 RANGEMENT.—In the case of an individual

15 who is described in clause (ii), the State

16 agency referred to in section 402(a)(4)

17 shall provide, or assist the individual in lo18 cating, a second chance home, maternity

19 home, or other appropriate adult-super20 vised supportive living arrangement, taking

21 into consideration the needs and concerns

22 of the individual, unless the State agency

23 determines that the individual’s current

24 living arrangement is appropriate, and

25 thereafter shall require that the individual
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1 and the minor child referred to in subpara2 graph (A)(ii)(II) reside in such living ar3 rangement as a condition of the continued

4 receipt of assistance under the State pro5 gram funded under this part attributable

6 to funds provided by the Federal Govern7 ment (or in an alternative appropriate ar8 rangement, should circumstances change

9 and the current arrangement cease to be

10 appropriate).

11 ‘‘(ii) INDIVIDUAL DESCRIBED.—For

12 purposes of clause (i), an individual is de13 scribed in this clause if the individual is

14 described in subparagraph (A)(ii), and—

15 ‘‘(I) the individual has no parent,

16 legal guardian or other appropriate

17 adult relative described in subclause

18 (II) of his or her own who is living or

19 whose whereabouts are known;

20 ‘‘(II) no living parent, legal

21 guardian, or other appropriate adult

22 relative, who would otherwise meet

23 applicable State criteria to act as the

24 individual’s legal guardian, of such in25 dividual allows the individual to live in
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1 the home of such parent, guardian, or

2 relative;

3 ‘‘(III) the State agency deter4 mines that—

5 ‘‘(aa) the individual or the

6 minor child referred to in sub7 paragraph (A)(ii)(II) is being or

8 has been subjected to serious

9 physical or emotional harm, sex10 ual abuse, or exploitation in the

11 residence of the individual’s own

12 parent or legal guardian; or

13 ‘‘(bb) substantial evidence

14 exists of an act or failure to act

15 that presents an imminent or se16 rious harm if the individual and

17 the minor child lived in the same

18 residence with the individual’s

19 own parent or legal guardian; or

20 ‘‘(IV) the State agency otherwise

21 determines that it is in the best inter22 est of the minor child to waive the re23 quirement of subparagraph (A) with

24 respect to the individual or the minor

25 child.
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1 ‘‘(iii) SECOND-CHANCE HOME.—For

2 purposes of this subparagraph, the term

3 ‘second-chance home’ means an entity that

4 provides individuals described in clause (ii)

5 with a supportive and supervised living ar6 rangement in which such individuals are

7 required to learn parenting skills, including

8 child development, family budgeting, health

9 and nutrition, and other skills to promote

10 their long-term economic independence and

11 the well-being of their children.

12 ‘‘(7) NO MEDICAL SERVICES.—

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

14 subparagraph (B), a State to which a grant is

15 made under section 403 shall not use any part

16 of the grant to provide medical services.

17 ‘‘(B) EXCEPTION FOR FAMILY PLANNING

18 SERVICES.—As used in subparagraph (A), the

19 term ‘medical services’ does not include family

20 planning services.

21 ‘‘(8) NO ASSISTANCE FOR MORE THAN 5

22 YEARS.—

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

24 subparagraphs (B) and (C), a State to which a

25 grant is made under section 403 shall not use
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1 any part of the grant to provide assistance to

2 a family that includes an adult who has re3 ceived assistance under any State program

4 funded under this part attributable to funds

5 provided by the Federal Government, for 60

6 months (whether or not consecutive) after the

7 date the State program funded under this part

8 commences.

9 ‘‘(B) MINOR CHILD EXCEPTION.—In deter10 mining the number of months for which an in11 dividual who is a parent or pregnant has re12 ceived assistance under the State program

13 funded under this part, the State shall dis14 regard any month for which such assistance

15 was provided with respect to the individual and

16 during which the individual was—

17 ‘‘(i) a minor child; and

18 ‘‘(ii) not the head of a household or

19 married to the head of a household.

20 ‘‘(C) HARDSHIP EXCEPTION.—

21 ‘‘(i) IN GENERAL.—The State may ex22 empt a family from the application of sub23 paragraph (A) by reason of hardship or if

24 the family includes an individual who has
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1 been battered or subjected to extreme cru2 elty.

3 ‘‘(ii) LIMITATION.—The number of

4 families with respect to which an exemp5 tion made by a State under clause (i) is in

6 effect for a fiscal year shall not exceed 20

7 percent of the average monthly number of

8 families to which assistance is provided

9 under the State program funded under this

10 part.

11 ‘‘(iii) BATTERED OR SUBJECT TO EX12 TREME CRUELTY DEFINED.—For purposes

13 of clause (i), an individual has been bat14 tered or subjected to extreme cruelty if the

15 individual has been subjected to—

16 ‘‘(I) physical acts that resulted

17 in, or threatened to result in, physical

18 injury to the individual;

19 ‘‘(II) sexual abuse;

20 ‘‘(III) sexual activity involving a

21 dependent child;

22 ‘‘(IV) being forced as the care23 taker relative of a dependent child to

24 engage in nonconsensual sexual acts

25 or activities;
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1 ‘‘(V) threats of, or attempts at,

2 physical or sexual abuse;

3 ‘‘(VI) mental abuse; or

4 ‘‘(VII) neglect or deprivation of

5 medical care.

6 ‘‘(D) RULE OF INTERPRETATION.—Sub7 paragraph (A) shall not be interpreted to re8 quire any State to provide assistance to any in9 dividual for any period of time under the State

10 program funded under this part.

11 ‘‘(E) RULE OF INTERPRETATION.—This

12 part shall not be interpreted to prohibit any

13 State from expending State funds not originat14 ing with the Federal Government on benefits

15 for children or families that have become ineli16 gible for assistance under the State program

17 funded under this part by reason of subpara18 graph (A).

19 ‘‘(9) DENIAL OF ASSISTANCE FOR 10 YEARS TO

20 A PERSON FOUND TO HAVE FRAUDULENTLY MIS21 REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS22 SISTANCE IN 2 OR MORE STATES.—A State to which

23 a grant is made under section 403 shall not use any

24 part of the grant to provide cash assistance to an in25 dividual during the 10-year period that begins on
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1 the date the individual is convicted in Federal or

2 State court of having made a fraudulent statement

3 or representation with respect to the place of resi4 dence of the individual in order to receive assistance

5 simultaneously from 2 or more States under pro6 grams that are funded under this title, title XIX, or

7 the Food Stamp Act of 1977, or benefits in 2 or

8 more States under the supplemental security income

9 program under title XVI. The preceding sentence

10 shall not apply with respect to a conviction of an

11 individual, for any month beginning after the Presi12 dent of the United States grants a pardon with re13 spect to the conduct which was the subject of the

14 conviction.

15 ‘‘(10) DENIAL OF ASSISTANCE FOR FUGITIVE

16 FELONS AND PROBATION AND PAROLE VIOLA17 TORS.—

18 ‘‘(A) IN GENERAL.—A State to which a

19 grant is made under section 403 shall not use

20 any part of the grant to provide assistance to

21 any individual who is—

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

23 custody or confinement after conviction,

24 under the laws of the place from which the

25 individual flees, for a crime, or an attempt
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1 to commit a crime, which is a felony under

2 the laws of the place from which the indi3 vidual flees, or which, in the case of the

4 State of New Jersey, is a high mis5 demeanor under the laws of such State; or

6 ‘‘(ii) violating a condition of probation

7 or parole imposed under Federal or State

8 law.

9 The preceding sentence shall not apply with re10 spect to conduct of an individual, for any month

11 beginning after the President of the United

12 States grants a pardon with respect to the con13 duct.

14 ‘‘(B) EXCHANGE OF INFORMATION WITH

15 LAW ENFORCEMENT AGENCIES.—If a State to

16 which a grant is made under section 403 estab17 lishes safeguards against the use or disclosure

18 of information about applicants or recipients of

19 assistance under the State program funded

20 under this part, the safeguards shall not pre21 vent the State agency administering the pro22 gram from furnishing a Federal, State, or local

23 law enforcement officer, upon the request of the

24 officer, with the current address of any recipi25 ent if the officer furnishes the agency with the
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1 name of the recipient and notifies the agency

2 that—

3 ‘‘(i) the recipient—

4 ‘‘(I) is described in subparagraph

5 (A); or

6 ‘‘(II) has information that is nec7 essary for the officer to conduct the

8 official duties of the officer; and

9 ‘‘(ii) the location or apprehension of

10 the recipient is within such official duties.

11 ‘‘(11) DENIAL OF ASSISTANCE FOR MINOR

12 CHILDREN WHO ARE ABSENT FROM THE HOME FOR

13 A SIGNIFICANT PERIOD.—

14 ‘‘(A) IN GENERAL.—A State to which a

15 grant is made under section 403 shall not use

16 any part of the grant to provide assistance for

17 a minor child who has been, or is expected by

18 a parent (or other caretaker relative) of the

19 child to be, absent from the home for a period

20 of 45 consecutive days or, at the option of the

21 State, such period of not less than 30 and not

22 more than 180 consecutive days as the State

23 may provide for in the State plan submitted

24 pursuant to section 402.
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1 ‘‘(B) STATE AUTHORITY TO ESTABLISH

2 GOOD CAUSE EXCEPTIONS.—The State may es3 tablish such good cause exceptions to subpara4 graph (A) as the State considers appropriate if

5 such exceptions are provided for in the State

6 plan submitted pursuant to section 402.

7 ‘‘(C) DENIAL OF ASSISTANCE FOR REL8 ATIVE WHO FAILS TO NOTIFY STATE AGENCY

9 OF ABSENCE OF CHILD.—A State to which a

10 grant is made under section 403 shall not use

11 any part of the grant to provide assistance for

12 an individual who is a parent (or other care13 taker relative) of a minor child and who fails to

14 notify the agency administering the State pro15 gram funded under this part of the absence of

16 the minor child from the home for the period

17 specified in or provided for pursuant to sub18 paragraph (A), by the end of the 5-day period

19 that begins with the date that it becomes clear

20 to the parent (or relative) that the minor child

21 will be absent for such period so specified or

22 provided for.

23 ‘‘(12) INCOME SECURITY PAYMENTS NOT TO BE

24 DISREGARDED IN DETERMINING THE AMOUNT OF

25 ASSISTANCE TO BE PROVIDED TO A FAMILY.—If a
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1 State to which a grant is made under section 403

2 uses any part of the grant to provide assistance for

3 any individual who is receiving benefits, or on behalf

4 of whom benefits are paid, under a State plan for

5 old-age assistance approved under section 2, under

6 section 202, 205(j)(1), 223, or 228, under a State

7 program funded under part E that provides cash

8 payments for foster care, or under the supplemental

9 security income program under title XVI, then the

10 State may disregard the payment in determining the

11 amount of assistance to be provided under the State

12 program funded under this part, from funds pro13 vided by the Federal Government, to the family of

14 which the individual is a member.

15 ‘‘(13) MEDICAL ASSISTANCE REQUIRED TO BE

16 PROVIDED FOR 1 YEAR FOR FAMILIES BECOMING IN17 ELIGIBLE FOR CASH ASSISTANCE UNDER THIS PART

18 DUE TO INCREASED EARNINGS FROM EMPLOY19 MENT.—A State to which a grant is made under sec20 tion 403 shall take such action as may be necessary

21 to ensure that, if an individual or family becomes in22 eligible to receive cash assistance under the State

23 program funded under this part as a result of in24 creased earnings from employment, having received

25 such assistance in at least 3 of the 6 months imme-
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1 diately preceding the month in which such ineligibil2 ity begins, the individual (or in the case of a family,

3 each individual in the family) shall be eligible for

4 medical assistance under the State’s plan approved

5 under title XIX during the immediately succeeding

6 12-month period for so long as family income (as de7 fined by the State), excluding any refund of Federal

8 income taxes made by reason of section 32 of the In9 ternal Revenue Code of 1986 (relating to earned in10 come tax credit) and any payment made by an em11 ployer under section 3507 of such Code (relating to

12 advance payment of earned income credit), is less

13 than the poverty line, and that the family will be ap14 propriately notified of such eligibility.

15 ‘‘(14) MEDICAL ASSISTANCE REQUIRED TO BE

16 PROVIDED FOR 4 MONTHS FOR FAMILIES BECOMING

17 INELIGIBLE FOR CASH ASSISTANCE UNDER THIS

18 PART DUE TO COLLECTION OF CHILD SUPPORT.—A

19 State to which a grant is made under section 403

20 shall take such action as may be necessary to ensure

21 that, if any individual or family becomes ineligible to

22 receive cash assistance under the State program

23 funded under this part as a result of the collection

24 or increased collection of child or spousal support

25 under part D, having received such assistance in at
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1 least 3 of the 6 months immediately preceding the

2 month in which such ineligibility begins, the individ3 ual (or, in the case of a family, each individual in

4 the family) shall be eligible for medical assistance

5 under the State’s plan approved under title XIX

6 during the 4-month period beginning with the month

7 in which such ineligibility begins.

8 ‘‘(15) MEDICAL ASSISTANCE REQUIRED TO BE

9 PROVIDED FOR CERTAIN INDIVIDUALS.—A State to

10 which a grant is made under section 403 shall take

11 such action as may be necessary to ensure that,

12 under section 1931, individuals who would be eligible

13 for cash assistance under the State plan approved

14 under this part (as in effect as of July 16, 1996) if

15 such State plan were still in effect are eligible for

16 medical assistance under the State’s plan approved

17 under title XIX.

18 ‘‘(b) INDIVIDUAL RESPONSIBILITY PLANS.—

19 ‘‘(1) ASSESSMENT.—The State agency respon20 sible for administering the State program funded

21 under this part shall make an initial assessment of

22 the skills, prior work experience, and employability

23 of each recipient of assistance under the program

24 who—

25 ‘‘(A) has attained 18 years of age; or
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1 ‘‘(B) has not completed high school or ob2 tained a certificate of high school equivalency,

3 and is not attending secondary school.

4 ‘‘(2) CONTENTS OF PLANS.—

5 ‘‘(A) IN GENERAL.—On the basis of the

6 assessment made under subsection (a) with re7 spect to an individual, the State agency, in con8 sultation with the individual, may develop an

9 individual responsibility plan for the individual,

10 which—

11 ‘‘(i) sets forth an employment goal for

12 the individual and a plan for moving the

13 individual immediately into private sector

14 employment;

15 ‘‘(ii) sets forth the obligations of the

16 individual, which may include a require17 ment that the individual attend school,

18 maintain certain grades and attendance,

19 keep school age children of the individual

20 in school, immunize children, attend

21 parenting and money management classes,

22 or do other things that will help the indi23 vidual become and remain employed in the

24 private sector;
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1 ‘‘(iii) to the greatest extent possible is

2 designed to move the individual into what3 ever private sector employment the individ4 ual is capable of handling as quickly as

5 possible, and to increase the responsibility

6 and amount of work the individual is to

7 handle over time;

8 ‘‘(iv) describes the services the State

9 will provide the individual so that the indi10 vidual will be able to obtain and keep em11 ployment in the private sector, and de12 scribe the job counseling and other services

13 that will be provided by the State; and

14 ‘‘(v) may require the individual to un15 dergo appropriate substance abuse treat16 ment.

17 ‘‘(B) TIMING.—The State agency may

18 comply with paragraph (1) with respect to an

19 individual—

20 ‘‘(i) within 90 days (or, at the option

21 of the State, 180 days) after the effective

22 date of this part, in the case of an individ23 ual who, as of such effective date, is a re24 cipient of aid under the State plan ap-
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1 proved under part A (as in effect imme2 diately before such effective date); or

3 ‘‘(ii) within 30 days (or, at the option

4 of the State, 90 days) after the individual

5 is determined to be eligible for such assist6 ance, in the case of any other individual.

7 ‘‘(3) PENALTY FOR NONCOMPLIANCE BY INDI8 VIDUAL.—In addition to any other penalties required

9 under the State program funded under this part, the

10 State may reduce, by such amount as the State con11 siders appropriate, the amount of assistance other12 wise payable under the State program to a family

13 that includes an individual who fails without good

14 cause to comply with an individual responsibility

15 plan signed by the individual.

16 ‘‘(4) STATE DISCRETION.—The exercise of the

17 authority of this subsection shall be within the sole

18 discretion of the State.

19 ‘‘(c) ALIENS.—For special rules relating to the treat20 ment of aliens, see section 4402 of the Personal Respon21 sibility and Work Opportunity Act of 1996.

22 ‘‘SEC. 409. PENALTIES.

23 ‘‘(a) IN GENERAL.—Subject to this section:

24 ‘‘(1) USE OF GRANT IN VIOLATION OF THIS

25 PART.—
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1 ‘‘(A) GENERAL PENALTY.—If an audit

2 conducted under chapter 75 of title 31, United

3 States Code, finds that an amount paid to a

4 State under section 403 for a fiscal year has

5 been used in violation of this part, the Sec6 retary shall reduce the grant payable to the

7 State under section 403(a)(1) for the imme8 diately succeeding fiscal year quarter by the

9 amount so used.

10 ‘‘(B) ENHANCED PENALTY FOR INTEN11 TIONAL VIOLATIONS.—If the State does not

12 prove to the satisfaction of the Secretary that

13 the State did not intend to use the amount in

14 violation of this part, the Secretary shall fur15 ther reduce the grant payable to the State

16 under section 403(a)(1) for the immediately

17 succeeding fiscal year quarter by an amount

18 equal to 5 percent of the State family assist19 ance grant.

20 ‘‘(2) FAILURE TO SUBMIT REQUIRED RE21 PORT.—

22 ‘‘(A) IN GENERAL.—If the Secretary deter23 mines that a State has not, within 1 month

24 after the end of a fiscal quarter, submitted the

25 report required by section 411(a) for the quar-
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1 ter, the Secretary shall reduce the grant pay2 able to the State under section 403(a)(1) for

3 the immediately succeeding fiscal year by an

4 amount equal to 4 percent of the State family

5 assistance grant.

6 ‘‘(B) RESCISSION OF PENALTY.—The Sec7 retary shall rescind a penalty imposed on a

8 State under subparagraph (A) with respect to a

9 report if the State submits the report before the

10 end of the fiscal quarter that immediately suc11 ceeds the fiscal quarter for which the report

12 was required.

13 ‘‘(3) FAILURE TO SATISFY MINIMUM PARTICIPA14 TION RATES.—

15 ‘‘(A) IN GENERAL.—If the Secretary deter16 mines that a State to which a grant is made

17 under section 403 for a fiscal year has failed to

18 comply with section 407(a) for the fiscal year,

19 the Secretary shall reduce the grant payable to

20 the State under section 403(a)(1) for the imme21 diately succeeding fiscal year by an amount

22 equal to not more than 5 percent of the State

23 family assistance grant.

24 ‘‘(B) PENALTY BASED ON SEVERITY OF

25 FAILURE.—The Secretary shall impose reduc-
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1 tions under subparagraph (A) based on the de2 gree of noncompliance, and may reduce the

3 penalty if the State experiences an economic

4 downturn that leads to significantly greater un5 employment.

6 ‘‘(4) FAILURE TO PARTICIPATE IN THE INCOME

7 AND ELIGIBILITY VERIFICATION SYSTEM.—If the

8 Secretary determines that a State program funded

9 under this part is not participating during a fiscal

10 year in the income and eligibility verification system

11 required by section 1137, the Secretary shall reduce

12 the grant payable to the State under section

13 403(a)(1) for the immediately succeeding fiscal year

14 by an amount equal to not more than 2 percent of

15 the State family assistance grant.

16 ‘‘(5) FAILURE TO COMPLY WITH PATERNITY ES17 TABLISHMENT AND CHILD SUPPORT ENFORCEMENT

18 REQUIREMENTS UNDER PART D.—Notwithstanding

19 any other provision of this Act, if the Secretary de20 termines that the State agency that administers a

21 program funded under this part does not enforce the

22 penalties requested by the agency administering part

23 D against recipients of assistance under the State

24 program who fail to cooperate in establishing pater25 nity or in establishing, modifying, or enforcing a
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1 child support order in accordance with such part and

2 who do not qualify for any good cause or other ex3 ception established by the State under section

4 454(29), the Secretary shall reduce the grant pay5 able to the State under section 403(a)(1) for the im6 mediately succeeding fiscal year (without regard to

7 this section) by not more than 5 percent.

8 ‘‘(6) FAILURE TO TIMELY REPAY A FEDERAL

9 LOAN FUND FOR STATE WELFARE PROGRAMS.—If

10 the Secretary determines that a State has failed to

11 repay any amount borrowed from the Federal Loan

12 Fund for State Welfare Programs established under

13 section 406 within the period of maturity applicable

14 to the loan, plus any interest owed on the loan, the

15 Secretary shall reduce the grant payable to the State

16 under section 403(a)(1) for the immediately succeed17 ing fiscal year quarter (without regard to this sec18 tion) by the outstanding loan amount, plus the inter19 est owed on the outstanding amount. The Secretary

20 shall not forgive any outstanding loan amount or in21 terest owed on the outstanding amount.

22 ‘‘(7) FAILURE OF ANY STATE TO MAINTAIN

23 CERTAIN LEVEL OF HISTORIC EFFORT.—

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

25 reduce the grant payable to the State under
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1 section 403(a)(1) for fiscal year 1998, 1999,

2 2000, 2001, or 2002 by the amount (if any) by

3 which qualified State expenditures for the then

4 immediately preceding fiscal year are less than

5 the applicable percentage of historic State ex6 penditures with respect to such preceding fiscal

7 year.

8 ‘‘(B) DEFINITIONS.—As used in this para9 graph:

10 ‘‘(i) QUALIFIED STATE EXPENDI11 TURES.—

12 ‘‘(I) IN GENERAL.—The term

13 ‘qualified State expenditures’ means,

14 with respect to a State and a fiscal

15 year, the total expenditures by the

16 State during the fiscal year, under all

17 State programs, for any of the follow18 ing with respect to eligible families:

19 ‘‘(aa) Cash assistance.

20 ‘‘(bb) Child care assistance.

21 ‘‘(cc) Educational activities

22 designed to increase self-suffi23 ciency, job training, and work,

24 excluding any expenditure for

25 public education in the State ex-
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1 cept expenditures which involve

2 the provision of services or assist3 ance to a member of an eligible

4 family which is not generally

5 available to persons who are not

6 members of an eligible family.

7 ‘‘(dd) Administrative costs

8 in connection with the matters

9 described in items (aa), (bb),

10 (cc), and (ee), but only to the ex11 tent that such costs do not ex12 ceed 15 percent of the total

13 amount of qualified State ex14 penditures for the fiscal year.

15 ‘‘(ee) Any other use of funds

16 allowable under section

17 404(a)(1).

18 ‘‘(II) EXCLUSION OF TRANSFERS

19 FROM OTHER STATE AND LOCAL PRO20 GRAMS.—Such term does not include

21 expenditures under any State or local

22 program during a fiscal year, except

23 to the extent that—

24 ‘‘(aa) the expenditures ex25 ceed the amount expended under
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1 the State or local program in the

2 fiscal year most recently ending

3 before the date of the enactment

4 of this part; or

5 ‘‘(bb) the State is entitled to

6 a payment under former section

7 403 (as in effect immediately be8 fore such date of enactment) with

9 respect to the expenditures.

10 ‘‘(III) ELIGIBLE FAMILIES.—As

11 used in subclause (I), the term ‘eligi12 ble families’ means families eligible

13 for assistance under the State pro14 gram funded under this part, and

15 families that would be eligible for such

16 assistance but for the application of

17 section 408(a)(8) of this Act or sec18 tion 4402 of the Personal Responsibil19 ity and Work Opportunity Act of

20 1996.

21 ‘‘(ii) APPLICABLE PERCENTAGE.—The

22 term ‘applicable percentage’ means for fis23 cal years 1997 through 2001, 80 percent

24 (or, if the State meets the requirements of

25 section 407(a) for the fiscal year, 75 per-
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1 cent) reduced (if appropriate) in accord2 ance with subparagraph (C)(ii).

3 ‘‘(iii) HISTORIC STATE EXPENDI4 TURES.—The term ‘historic State expendi5 tures’ means, with respect to a State, the

6 lesser of—

7 ‘‘(I) the expenditures by the

8 State under parts A and F (as in ef9 fect during fiscal year 1994) for fiscal

10 year 1994; or

11 ‘‘(II) the amount which bears the

12 same ratio to the amount described in

13 subclause (I) as—

14 ‘‘(aa) the State family as15 sistance grant, plus the total

16 amount required to be paid to

17 the State under former section

18 403 for fiscal year 1994 with re19 spect to amounts expended by

20 the State for child care under

21 subsection (g) or (i) of section

22 402 (as in effect during fiscal

23 year 1994); bears to

24 ‘‘(bb) the total amount re25 quired to be paid to the State
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1 under former section 403 (as in

2 effect during fiscal year 1994)

3 for fiscal year 1994.

4 Such term does not include any expendi5 tures under the State plan approved under

6 part A (as so in effect) on behalf of indi7 viduals covered by a tribal family assist8 ance plan approved under section 412, as

9 determined by the Secretary.

10 ‘‘(iv) EXPENDITURES BY THE

11 STATE.—The term ‘expenditures by the

12 State’ does not include—

13 ‘‘(I) any expenditures from

14 amounts made available by the Fed15 eral Government;

16 ‘‘(II) State funds expended for

17 the medicaid program under title

18 XIX; or

19 ‘‘(III) any State funds which are

20 used to match Federal funds or are

21 expended as a condition of receiving

22 Federal funds under Federal pro23 grams other than under this part.

24 ‘‘(C) APPLICABLE PERCENTAGE REDUCED

25 FOR HIGH PERFORMANCE STATES.—
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1 ‘‘(i) DETERMINATION OF HIGH PER2 FORMANCE STATES.—The Secretary shall

3 use the formula developed under section

4 403(a)(4)(C) to assign a score to each eli5 gible State that represents the perform6 ance of the State program funded under

7 this part for each fiscal year, and shall

8 prescribe a performance threshold which

9 the Secretary shall use to determine

10 whether to reduce the applicable percent11 age with respect to any eligible State for a

12 fiscal year.

13 ‘‘(ii) REDUCTION PROPORTIONAL TO

14 PERFORMANCE.—The Secretary shall re15 duce the applicable percentage for a fiscal

16 year with respect to each eligible State by

17 an amount which is directly proportional to

18 the amount (if any) by which the score as19 signed to the State under clause (i) for the

20 immediately preceding fiscal year exceeds

21 the performance threshold prescribed

22 under clause (i) for such preceding fiscal

23 year, subject to clause (iii).

24 ‘‘(iii) LIMITATION ON REDUCTION.—

25 The applicable percentage for a fiscal year
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1 with respect to a State may not be reduced

2 by more than 8 percentage points under

3 this subparagraph.

4 ‘‘(8) SUBSTANTIAL NONCOMPLIANCE OF STATE

5 CHILD SUPPORT ENFORCEMENT PROGRAM WITH RE6 QUIREMENTS OF PART D.—

7 ‘‘(A) IN GENERAL.—If a State program

8 operated under part D is found as a result of

9 a review conducted under section 452(a)(4) not

10 to have complied substantially with the require11 ments of such part for any quarter, and the

12 Secretary determines that the program is not

13 complying substantially with such requirements

14 at the time the finding is made, the Secretary

15 shall reduce the grant payable to the State

16 under section 403(a)(1) for the quarter and

17 each subsequent quarter that ends before the

18 1st quarter throughout which the program is

19 found to be in substantial compliance with such

20 requirements by—

21 ‘‘(i) not less than 1 nor more than 2

22 percent;

23 ‘‘(ii) not less than 2 nor more than 3

24 percent, if the finding is the 2nd consecu-
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1 tive such finding made as a result of such

2 a review; or

3 ‘‘(iii) not less than 3 nor more than 5

4 percent, if the finding is the 3rd or a sub5 sequent consecutive such finding made as a

6 result of such a review.

7 ‘‘(B) DISREGARD OF NONCOMPLIANCE

8 WHICH IS OF A TECHNICAL NATURE.—For pur9 poses of subparagraph (A) and section

10 452(a)(4), a State which is not in full compli11 ance with the requirements of this part shall be

12 determined to be in substantial compliance with

13 such requirements only if the Secretary deter14 mines that any noncompliance with such re15 quirements is of a technical nature which does

16 not adversely affect the performance of the

17 State’s program operated under part D.

18 ‘‘(9) FAILURE OF STATE RECEIVING AMOUNTS

19 FROM CONTINGENCY FUND TO MAINTAIN 100 PER20 CENT OF HISTORIC EFFORT.—If, at the end of any

21 fiscal year during which amounts from the Contin22 gency Fund for State Welfare Programs have been

23 paid to a State, the Secretary finds that the expendi24 tures under the State program funded under this

25 part for the fiscal year are less than 100 percent of
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1 historic State expenditures (as defined in paragraph

2 (8)(B)(iii) of this subsection), the Secretary shall re3 duce the grant payable to the State under section

4 403(a)(1) for the immediately succeeding fiscal year

5 by the total of the amounts so paid to the State.

6 ‘‘(10) FAILURE TO EXPEND ADDITIONAL STATE

7 FUNDS TO REPLACE GRANT REDUCTIONS.—If the

8 grant payable to a State under section 403(a)(1) for

9 a fiscal year is reduced by reason of this subsection,

10 the State shall, during the immediately succeeding

11 fiscal year, expend under the State program funded

12 under this part an amount equal to the total amount

13 of such reductions.

14 ‘‘(11) FAILURE TO PROVIDE MEDICAL ASSIST15 ANCE TO FAMILIES BECOMING INELIGIBLE FOR

16 CASH ASSISTANCE UNDER THIS PART DUE TO IN17 CREASED EARNINGS FROM EMPLOYMENT OR COL18 LECTION OF CHILD SUPPORT.—

19 ‘‘(A) IN GENERAL.—If the Secretary deter20 mines that a State program funded under this

21 part is not in compliance with paragraph (13)

22 or (14) of section 408(a) for a quarter, the Sec23 retary shall reduce the grant payable to the

24 State under section 403(a)(1) for the imme25 diately succeeding fiscal year by an amount
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1 equal to not more than 5 percent of the State

2 family assistance grant.

3 ‘‘(B) PENALTY BASED ON SEVERITY OF

4 FAILURE.—The Secretary shall impose reduc5 tions under subparagraph (A) based on the de6 gree of noncompliance.

7 ‘‘(b) REASONABLE CAUSE EXCEPTION.—

8 ‘‘(1) IN GENERAL.—The Secretary may not im9 pose a penalty on a State under subsection (a) with

10 respect to a requirement if the Secretary determines

11 that the State has reasonable cause for failing to

12 comply with the requirement.

13 ‘‘(2) EXCEPTION.—Paragraph (1) of this sub14 section shall not apply to any penalty under para15 graph (7), (8), or (11) of subsection (a).

16 ‘‘(c) CORRECTIVE COMPLIANCE PLAN.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) NOTIFICATION OF VIOLATION.—Be19 fore imposing a penalty against a State under

20 subsection (a) with respect to a violation of this

21 part, the Secretary shall notify the State of the

22 violation and allow the State the opportunity to

23 enter into a corrective compliance plan in ac24 cordance with this subsection which outlines

25 how the State will correct the violation and how
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1 the State will insure continuing compliance with

2 this part.

3 ‘‘(B) 60-DAY PERIOD TO PROPOSE A COR4 RECTIVE COMPLIANCE PLAN.—During the 60-

5 day period that begins on the date the State re6 ceives a notice provided under subparagraph

7 (A) with respect to a violation, the State may

8 submit to the Federal Government a corrective

9 compliance plan to correct the violation.

10 ‘‘(C) CONSULTATION ABOUT MODIFICA11 TIONS.—During the 60-day period that begins

12 with the date the Secretary receives a corrective

13 compliance plan submitted by a State in accord14 ance with subparagraph (B), the Secretary may

15 consult with the State on modifications to the

16 plan.

17 ‘‘(D) ACCEPTANCE OF PLAN.— A correc18 tive compliance plan submitted by a State in ac19 cordance with subparagraph (B) is deemed to

20 be accepted by the Secretary if the Secretary

21 does not accept or reject the plan during 60-day

22 period that begins on the date the plan is sub23 mitted.

24 ‘‘(2) EFFECT OF CORRECTING VIOLATION.—

25 The Secretary may not impose any penalty under
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1 subsection (a) with respect to any violation covered

2 by a State corrective compliance plan accepted by

3 the Secretary if the State corrects the violation pur4 suant to the plan.

5 ‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA6 TION.—The Secretary shall assess some or all of a

7 penalty imposed on a State under subsection (a)

8 with respect to a violation if the State does not, in

9 a timely manner, correct the violation pursuant to a

10 State corrective compliance plan accepted by the

11 Secretary.

12 ‘‘(4) INAPPLICABILITY TO FAILURE TO TIMELY

13 REPAY A FEDERAL LOAN FUND FOR A STATE WEL14 FARE PROGRAM.—This subsection shall not apply to

15 the imposition of a penalty against a State under

16 subsection (a)(6).

17 ‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—

18 ‘‘(1) IN GENERAL.—In imposing the penalties

19 described in subsection (a), the Secretary shall not

20 reduce any quarterly payment to a State by more

21 than 25 percent.

22 ‘‘(2) CARRYFORWARD OF UNRECOVERED PEN23 ALTIES.—To the extent that paragraph (1) of this

24 subsection prevents the Secretary from recovering

25 during a fiscal year the full amount of penalties im-
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1 posed on a State under subsection (a) of this section

2 for a prior fiscal year, the Secretary shall apply any

3 remaining amount of such penalties to the grant

4 payable to the State under section 403(a)(1) for the

5 immediately succeeding fiscal year.

6 ‘‘SEC. 410. APPEAL OF ADVERSE DECISION.

7 ‘‘(a) IN GENERAL.—Within 5 days after the date the

8 Secretary takes any adverse action under this part with

9 respect to a State, the Secretary shall notify the chief ex10 ecutive officer of the State of the adverse action, including

11 any action with respect to the State plan submitted under

12 section 402 or the imposition of a penalty under section

13 409.

14 ‘‘(b) ADMINISTRATIVE REVIEW.—

15 ‘‘(1) IN GENERAL.—Within 60 days after the

16 date a State receives notice under subsection (a) of

17 an adverse action, the State may appeal the action,

18 in whole or in part, to the Departmental Appeals

19 Board established in the Department of Health and

20 Human Services (in this section referred to as the

21 ‘Board’) by filing an appeal with the Board.

22 ‘‘(2) PROCEDURAL RULES.—The Board shall

23 consider an appeal filed by a State under paragraph

24 (1) on the basis of such documentation as the State

25 may submit and as the Board may require to sup-
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1 port the final decision of the Board. In deciding

2 whether to uphold an adverse action or any portion

3 of such an action, the Board shall conduct a thor4 ough review of the issues and take into account all

5 relevant evidence. The Board shall make a final de6 termination with respect to an appeal filed under

7 paragraph (1) not less than 60 days after the date

8 the appeal is filed.

9 ‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—

10 ‘‘(1) IN GENERAL.—Within 90 days after the

11 date of a final decision by the Board under this sec12 tion with respect to an adverse action taken against

13 a State, the State may obtain judicial review of the

14 final decision (and the findings incorporated into the

15 final decision) by filing an action in—

16 ‘‘(A) the district court of the United States

17 for the judicial district in which the principal or

18 headquarters office of the State agency is lo19 cated; or

20 ‘‘(B) the United States District Court for

21 the District of Columbia.

22 ‘‘(2) PROCEDURAL RULES.—The district court

23 in which an action is filed under paragraph (1) shall

24 review the final decision of the Board on the record

25 established in the administrative proceeding, in ac-
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1 cordance with the standards of review prescribed by

2 subparagraphs (A) through (E) of section 706(2) of

3 title 5, United States Code. The review shall be on

4 the basis of the documents and supporting data sub5 mitted to the Board.

6 ‘‘SEC. 411. DATA COLLECTION AND REPORTING.

7 ‘‘(a) QUARTERLY REPORTS BY STATES.—

8 ‘‘(1) GENERAL REPORTING REQUIREMENT.—

9 ‘‘(A) CONTENTS OF REPORT.—Each eligi10 ble State shall collect on a monthly basis, and

11 report to the Secretary on a quarterly basis, the

12 following disaggregated case record information

13 on the families receiving assistance under the

14 State program funded under this part:

15 ‘‘(i) The county of residence of the

16 family.

17 ‘‘(ii) Whether a child receiving such

18 assistance or an adult in the family is dis19 abled.

20 ‘‘(iii) The ages of the members of

21 such families.

22 ‘‘(iv) The number of individuals in the

23 family, and the relation of each family

24 member to the youngest child in the fam25 ily.
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1 ‘‘(v) The employment status and earn2 ings of the employed adult in the family.

3 ‘‘(vi) The marital status of the adults

4 in the family, including whether such

5 adults have never married, are widowed, or

6 are divorced.

7 ‘‘(vii) The race and educational status

8 of each adult in the family.

9 ‘‘(viii) The race and educational sta10 tus of each child in the family.

11 ‘‘(ix) Whether the family received sub12 sidized housing, medical assistance under

13 the State plan approved under title XIX,

14 food stamps, or subsidized child care, and

15 if the latter 2, the amount received.

16 ‘‘(x) The number of months that the

17 family has received each type of assistance

18 under the program.

19 ‘‘(xi) If the adults participated in, and

20 the number of hours per week of participa21 tion in, the following activities:

22 ‘‘(I) Education.

23 ‘‘(II) Subsidized private sector

24 employment.

25 ‘‘(III) Unsubsidized employment.
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1 ‘‘(IV) Public sector employment,

2 work experience, or community serv3 ice.

4 ‘‘(V) Job search.

5 ‘‘(VI) Job skills training or on6 the-job training.

7 ‘‘(VII) Vocational education.

8 ‘‘(xii) Information necessary to cal9 culate participation rates under section

10 407.

11 ‘‘(xiii) The type and amount of assist12 ance received under the program, including

13 the amount of and reason for any reduc14 tion of assistance (including sanctions).

15 ‘‘(xiv) Any amount of unearned in16 come received by any member of the fam17 ily.

18 ‘‘(xv) The citizenship of the members

19 of the family.

20 ‘‘(xvi) From a sample of closed cases,

21 whether the family left the program, and if

22 so, whether the family left due to—

23 ‘‘(I) employment;

24 ‘‘(II) marriage;
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1 ‘‘(III) the prohibition set forth in

2 section 408(a)(8);

3 ‘‘(IV) sanction; or

4 ‘‘(V) State policy.

5 ‘‘(B) USE OF ESTIMATES.—

6 ‘‘(i) AUTHORITY.—A State may com7 ply with subparagraph (A) by submitting

8 an estimate which is obtained through the

9 use of scientifically acceptable sampling

10 methods approved by the Secretary.

11 ‘‘(ii) SAMPLING AND OTHER METH12 ODS.—The Secretary shall provide the

13 States with such case sampling plans and

14 data collection procedures as the Secretary

15 deems necessary to produce statistically

16 valid estimates of the performance of State

17 programs funded under this part. The Sec18 retary may develop and implement proce19 dures for verifying the quality of data sub20 mitted by the States.

21 ‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO

22 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—

23 The report required by paragraph (1) for a fiscal

24 quarter shall include a statement of the percentage

25 of the funds paid to the State under this part for
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1 the quarter that are used to cover administrative

2 costs or overhead.

3 ‘‘(3) REPORT ON STATE EXPENDITURES ON

4 PROGRAMS FOR NEEDY FAMILIES.—The report re5 quired by paragraph (1) for a fiscal quarter shall in6 clude a statement of the total amount expended by

7 the State during the quarter on programs for needy

8 families.

9 ‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR10 TICIPATING IN WORK ACTIVITIES.—The report re11 quired by paragraph (1) for a fiscal quarter shall in12 clude the number of noncustodial parents in the

13 State who participated in work activities (as defined

14 in section 407(d)) during the quarter.

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

16 The report required by paragraph (1) for a fiscal

17 quarter shall include the total amount expended by

18 the State during the quarter to provide transitional

19 services to a family that has ceased to receive assist20 ance under this part because of employment, along

21 with a description of such services.

22 ‘‘(6) REGULATIONS.—The Secretary shall pre23 scribe such regulations as may be necessary to de24 fine the data elements with respect to which reports

25 are required by this subsection.
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1 ‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE

2 SECRETARY.—Not later than 6 months after the end of

3 fiscal year 1997, and each fiscal year thereafter, the Sec4 retary shall transmit to the Congress a report describ5 ing—

6 ‘‘(1) whether the States are meeting—

7 ‘‘(A) the participation rates described in

8 section 407(a); and

9 ‘‘(B) the objectives of—

10 ‘‘(i) increasing employment and earn11 ings of needy families, and child support

12 collections; and

13 ‘‘(ii) decreasing out-of-wedlock preg14 nancies and child poverty;

15 ‘‘(2) the demographic and financial characteris16 tics of families applying for assistance, families re17 ceiving assistance, and families that become ineli18 gible to receive assistance;

19 ‘‘(3) the characteristics of each State program

20 funded under this part; and

21 ‘‘(4) the trends in employment and earnings of

22 needy families with minor children living at home.

23 ‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN24 DIAN TRIBES.

25 ‘‘(a) GRANTS FOR INDIAN TRIBES.—
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HR 3734 RDS

1 ‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—

2 ‘‘(A) IN GENERAL.—For each of fiscal

3 years 1997, 1998, 1999, and 2000, the Sec4 retary shall pay to each Indian tribe that has

5 an approved tribal family assistance plan a trib6 al family assistance grant for the fiscal year in

7 an amount equal to the amount determined

8 under subparagraph (B), and shall reduce the

9 grant payable under section 403(a)(1) to any

10 State in which lies the service area or areas of

11 the Indian tribe by that portion of the amount

12 so determined that is attributable to expendi13 tures by the State.

14 ‘‘(B) AMOUNT DETERMINED.—

15 ‘‘(i) IN GENERAL.—The amount de16 termined under this subparagraph is an

17 amount equal to the total amount of the

18 Federal payments to a State or States

19 under section 403 (as in effect during such

20 fiscal year) for fiscal year 1994 attrib21 utable to expenditures (other than child

22 care expenditures) by the State or States

23 under parts A and F (as so in effect) for

24 fiscal year 1994 for Indian families resid25 ing in the service area or areas identified
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1 by the Indian tribe pursuant to subsection

2 (b)(1)(C) of this section.

3 ‘‘(ii) USE OF STATE SUBMITTED

4 DATA.—

5 ‘‘(I) IN GENERAL.—The Sec6 retary shall use State submitted data

7 to make each determination under

8 clause (i).

9 ‘‘(II) DISAGREEMENT WITH DE10 TERMINATION.—If an Indian tribe or

11 tribal organization disagrees with

12 State submitted data described under

13 subclause (I), the Indian tribe or trib14 al organization may submit to the

15 Secretary such additional information

16 as may be relevant to making the de17 termination under clause (i) and the

18 Secretary may consider such informa19 tion before making such determina20 tion.

21 ‘‘(2) GRANTS FOR INDIAN TRIBES THAT RE22 CEIVED JOBS FUNDS.—

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

24 pay to each eligible Indian tribe for each of fis25 cal years 1996, 1997, 1998, 1999, 2000, and
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1 2001 a grant in an amount equal to the amount

2 received by the Indian tribe in fiscal year 1994

3 under section 482(i) (as in effect during fiscal

4 year 1994).

5 ‘‘(B) ELIGIBLE INDIAN TRIBE.—For pur6 poses of subparagraph (A), the term ‘eligible

7 Indian tribe’ means an Indian tribe or Alaska

8 Native organization that conducted a job oppor9 tunities and basic skills training program in fis10 cal year 1995 under section 482(i) (as in effect

11 during fiscal year 1995).

12 ‘‘(C) USE OF GRANT.—Each Indian tribe

13 to which a grant is made under this paragraph

14 shall use the grant for the purpose of operating

15 a program to make work activities available to

16 members of the Indian tribe.

17 ‘‘(D) APPROPRIATION.—Out of any money

18 in the Treasury of the United States not other19 wise appropriated, there are appropriated

20 $7,638,474 for each fiscal year specified in sub21 paragraph (A) for grants under subparagraph

22 (A).

23 ‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—

24 ‘‘(1) IN GENERAL.—Any Indian tribe that de25 sires to receive a tribal family assistance grant shall
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1 submit to the Secretary a 3-year tribal family assist2 ance plan that—

3 ‘‘(A) outlines the Indian tribe’s approach

4 to providing welfare-related services for the 3-

5 year period, consistent with this section;

6 ‘‘(B) specifies whether the welfare-related

7 services provided under the plan will be pro8 vided by the Indian tribe or through agree9 ments, contracts, or compacts with intertribal

10 consortia, States, or other entities;

11 ‘‘(C) identifies the population and service

12 area or areas to be served by such plan;

13 ‘‘(D) provides that a family receiving as14 sistance under the plan may not receive duplica15 tive assistance from other State or tribal pro16 grams funded under this part;

17 ‘‘(E) identifies the employment opportuni18 ties in or near the service area or areas of the

19 Indian tribe and the manner in which the In20 dian tribe will cooperate and participate in en21 hancing such opportunities for recipients of as22 sistance under the plan consistent with any ap23 plicable State standards; and

24 ‘‘(F) applies the fiscal accountability provi25 sions of section 5(f)(1) of the Indian Self-De-
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1 termination and Education Assistance Act (25

2 U.S.C. 450c(f)(1)), relating to the submission

3 of a single-agency audit report required by

4 chapter 75 of title 31, United States Code.

5 ‘‘(2) APPROVAL.—The Secretary shall approve

6 each tribal family assistance plan submitted in ac7 cordance with paragraph (1).

8 ‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this

9 section shall preclude the development and submis10 sion of a single tribal family assistance plan by the

11 participating Indian tribes of an intertribal consor12 tium.

13 ‘‘(c) MINIMUM WORK PARTICIPATION REQUIRE14 MENTS AND TIME LIMITS.—The Secretary, with the par15 ticipation of Indian tribes, shall establish for each Indian

16 tribe receiving a grant under this section minimum work

17 participation requirements, appropriate time limits for re18 ceipt of welfare-related services under the grant, and pen19 alties against individuals—

20 ‘‘(1) consistent with the purposes of this sec21 tion;

22 ‘‘(2) consistent with the economic conditions

23 and resources available to each tribe; and

24 ‘‘(3) similar to comparable provisions in section

25 407(d).
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1 ‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec2 tion shall preclude an Indian tribe from seeking emergency

3 assistance from any Federal loan program or emergency

4 fund.

5 ‘‘(e) ACCOUNTABILITY.—Nothing in this section shall

6 be construed to limit the ability of the Secretary to main7 tain program funding accountability consistent with—

8 ‘‘(1) generally accepted accounting principles;

9 and

10 ‘‘(2) the requirements of the Indian Self-Deter11 mination and Education Assistance Act (25 U.S.C.

12 450 et seq.).

13 ‘‘(f) PENALTIES.—

14 ‘‘(1) Subsections (a)(1), (a)(6), and (b) of sec15 tion 409, shall apply to an Indian tribe with an ap16 proved tribal assistance plan in the same manner as

17 such subsections apply to a State.

18 ‘‘(2) Section 409(a)(3) shall apply to an Indian

19 tribe with an approved tribal assistance plan by sub20 stituting ‘meet minimum work participation require21 ments established under section 412(c)’ for ‘comply

22 with section 407(a)’.

23 ‘‘(g) DATA COLLECTION AND REPORTING.—Section

24 411 shall apply to an Indian tribe with an approved tribal

25 family assistance plan.
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1 ‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS2 KA.—

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

4 provision of this section, and except as provided in

5 paragraph (2), an Indian tribe in the State of Alas6 ka that receives a tribal family assistance grant

7 under this section shall use the grant to operate a

8 program in accordance with requirements com9 parable to the requirements applicable to the pro10 gram of the State of Alaska funded under this part.

11 Comparability of programs shall be established on

12 the basis of program criteria developed by the Sec13 retary in consultation with the State of Alaska and

14 such Indian tribes.

15 ‘‘(2) WAIVER.—An Indian tribe described in

16 paragraph (1) may apply to the appropriate State

17 authority to receive a waiver of the requirement of

18 paragraph (1).

19 ‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD20 IES.

21 ‘‘(a) RESEARCH.—The Secretary shall conduct re22 search on the benefits, effects, and costs of operating dif23 ferent State programs funded under this part, including

24 time limits relating to eligibility for assistance. The re25 search shall include studies on the effects of different pro-
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1 grams and the operation of such programs on welfare de2 pendency, illegitimacy, teen pregnancy, employment rates,

3 child well-being, and any other area the Secretary deems

4 appropriate. The Secretary shall also conduct research on

5 the costs and benefits of State activities under section

6 409.

7 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA8 TIVE APPROACHES TO REDUCING WELFARE DEPEND9 ENCY AND INCREASING CHILD WELL-BEING.—

10 ‘‘(1) IN GENERAL.—The Secretary may assist

11 States in developing, and shall evaluate, innovative

12 approaches for reducing welfare dependency and in13 creasing the well-being of minor children living at

14 home with respect to recipients of assistance under

15 programs funded under this part. The Secretary

16 may provide funds for training and technical assist17 ance to carry out the approaches developed pursuant

18 to this paragraph.

19 ‘‘(2) EVALUATIONS.—In performing the evalua20 tions under paragraph (1), the Secretary shall, to

21 the maximum extent feasible, use random assign22 ment as an evaluation methodology.

23 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec24 retary shall develop innovative methods of disseminating

25 information on any research, evaluations, and studies con-
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1 ducted under this section, including the facilitation of the

2 sharing of information and best practices among States

3 and localities through the use of computers and other

4 technologies.

5 ‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF

6 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

7 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec8 retary shall rank annually the States to which

9 grants are paid under section 403 in the order of

10 their success in placing recipients of assistance

11 under the State program funded under this part into

12 long-term private sector jobs, reducing the overall

13 welfare caseload, and, when a practicable method for

14 calculating this information becomes available, di15 verting individuals from formally applying to the

16 State program and receiving assistance. In ranking

17 States under this subsection, the Secretary shall

18 take into account the average number of minor chil19 dren living at home in families in the State that

20 have incomes below the poverty line and the amount

21 of funding provided each State for such families.

22 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST

23 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

24 review the programs of the 3 States most recently

25 ranked highest under paragraph (1) and the 3
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1 States most recently ranked lowest under paragraph

2 (1) that provide parents with work experience, as3 sistance in finding employment, and other work

4 preparation activities and support services to enable

5 the families of such parents to leave the program

6 and become self-sufficient.

7 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF

8 ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

9 ‘‘(1) ANNUAL RANKING OF STATES.—

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

11 annually rank States to which grants are made

12 under section 403 based on the following rank13 ing factors:

14 ‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA15 TIOS.—The ratio represented by—

16 ‘‘(I) the total number of out-of17 wedlock births in families receiving as18 sistance under the State program

19 under this part in the State for the

20 most recent fiscal year for which in21 formation is available; over

22 ‘‘(II) the total number of births

23 in families receiving assistance under

24 the State program under this part in

25 the State for such year.
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1 ‘‘(ii) NET CHANGES IN THE OUT-OF2 WEDLOCK RATIO.—The difference between

3 the ratio described in subparagraph (A)(i)

4 with respect to a State for the most recent

5 fiscal year for which such information is

6 available and the ratio with respect to the

7 State for the immediately preceding year.

8 ‘‘(2) ANNUAL REVIEW.—The Secretary shall re9 view the programs of the 5 States most recently

10 ranked highest under paragraph (1) and the 5

11 States most recently ranked the lowest under para12 graph (1).

13 ‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall

14 be eligible to receive funding to evaluate the State pro15 gram funded under this part if—

16 ‘‘(1) the State submits a proposal to the Sec17 retary for the evaluation;

18 ‘‘(2) the Secretary determines that the design

19 and approach of the evaluation is rigorous and is

20 likely to yield information that is credible and will

21 be useful to other States, and

22 ‘‘(3) unless otherwise waived by the Secretary,

23 the State contributes to the cost of the evaluation,

24 from non-Federal sources, an amount equal to at

25 least 10 percent of the cost of the evaluation.
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1 ‘‘(g) REPORT ON CIRCUMSTANCES OF CERTAIN

2 CHILDREN AND FAMILIES.—

3 ‘‘(1) IN GENERAL.—Beginning 3 years after the

4 date of the enactment of this Act, the Secretary of

5 Health and Human Services shall prepare and sub6 mit to the Committees on Ways and Means and on

7 Economic and Educational Opportunities of the

8 House of Representatives and to the Committees on

9 Finance and on Labor and Resources of the Senate

10 annual reports that examine in detail the matters

11 described in paragraph (2) with respect to each of

12 the following groups for the period after such enact13 ment:

14 ‘‘(A) Individuals who were children in fam15 ilies that have become ineligible for assistance

16 under a State program funded under this part

17 by reason of having reached a time limit on the

18 provision of such assistance.

19 ‘‘(B) Families that include a child who is

20 ineligible for assistance under a State program

21 funded under this part by reason of section

22 408(a)(2).

23 ‘‘(C) Children born after such date of en24 actment to parents who, at the time of such

25 birth, had not attained 20 years of age.
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1 ‘‘(D) Individuals who, after such date of

2 enactment, became parents before attaining 20

3 years of age.

4 ‘‘(2) MATTERS DESCRIBED.—The matters de5 scribed in this paragraph are the following:

6 ‘‘(A) The percentage of each group that

7 has dropped out of secondary school (or the

8 equivalent), and the percentage of each group

9 at each level of educational attainment.

10 ‘‘(B) The percentage of each group that is

11 employed.

12 ‘‘(C) The percentage of each group that

13 has been convicted of a crime or has been adju14 dicated as a delinquent.

15 ‘‘(D) The rate at which the members of

16 each group are born, or have children, out-of17 wedlock, and the percentage of each group that

18 is married.

19 ‘‘(E) The percentage of each group that

20 continues to participate in State programs

21 funded under this part.

22 ‘‘(F) The percentage of each group that

23 has health insurance provided by a private en24 tity (broken down by whether the insurance is

25 provided through an employer or otherwise), the
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1 percentage that has health insurance provided

2 by an agency of government, and the percent3 age that does not have health insurance.

4 ‘‘(G) The average income of the families of

5 the members of each group.

6 ‘‘(H) Such other matters as the Secretary

7 deems appropriate.

8 ‘‘(h) FUNDING OF STUDIES AND DEMONSTRA9 TIONS.—

10 ‘‘(1) IN GENERAL.—Out of any money in the

11 Treasury of the United States not otherwise appro12 priated, there are appropriated $15,000,000 for each

13 fiscal year specified in section 403(a)(1) for the pur14 pose of paying—

15 ‘‘(A) the cost of conducting the research

16 described in subsection (a);

17 ‘‘(B) the cost of developing and evaluating

18 innovative approaches for reducing welfare de19 pendency and increasing the well-being of minor

20 children under subsection (b);

21 ‘‘(C) the Federal share of any State-initi22 ated study approved under subsection (f); and

23 ‘‘(D) an amount determined by the Sec24 retary to be necessary to operate and evaluate

25 demonstration projects, relating to this part,
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1 that are in effect or approved under section

2 1115 as of September 30, 1995, and are contin3 ued after such date.

4 ‘‘(2) ALLOCATION.—Of the amount appro5 priated under paragraph (1) for a fiscal year—

6 ‘‘(A) 50 percent shall be allocated for the

7 purposes described in subparagraphs (A) and

8 (B) of paragraph (1), and

9 ‘‘(B) 50 percent shall be allocated for the

10 purposes described in subparagraphs (C) and

11 (D) of paragraph (1).

12 ‘‘(3) DEMONSTRATIONS OF INNOVATIVE STRAT13 EGIES.—The Secretary may implement and evaluate

14 demonstrations of innovative and promising strate15 gies which—

16 ‘‘(A) provide one-time capital funds to es17 tablish, expand, or replicate programs;

18 ‘‘(B) test performance-based grant-to-loan

19 financing in which programs meeting perform20 ance targets receive grants while programs not

21 meeting such targets repay funding on a pro22 rated basis; and

23 ‘‘(C) test strategies in multiple States and

24 types of communities.
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1 ‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.

2 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

3 expand the Survey of Income and Program Participation

4 as necessary to obtain such information as will enable in5 terested persons to evaluate the impact of the amendments

6 made by subtitle A of the Personal Responsibility and

7 Work Opportunity Act of 1996 on a random national sam8 ple of recipients of assistance under State programs fund9 ed under this part and (as appropriate) other low income

10 families, and in doing so, shall pay particular attention

11 to the issues of out-of-wedlock birth, welfare dependency,

12 the beginning and end of welfare spells, and the causes

13 of repeat welfare spells.

14 ‘‘(b) APPROPRIATION.—Out of any money in the

15 Treasury of the United States not otherwise appropriated,

16 there are appropriated $10,000,000 for each of fiscal

17 years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for

18 payment to the Bureau of the Census to carry out sub19 section (a).

20 ‘‘SEC. 415. WAIVERS.

21 ‘‘(a) CONTINUATION OF WAIVERS.—

22 ‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT23 MENT OF WELFARE REFORM.—Except as provided

24 in paragraph (3), if any waiver granted to a State

25 under section 1115 or otherwise which relates to the

26 provision of assistance under a State plan under this
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1 part (as in effect on September 30, 1995) is in ef2 fect as of the date of the enactment of the Personal

3 Responsibility and Work Opportunity Act of 1996,

4 the amendments made by such Act (other than by

5 section 4103(d) of such Act) shall not apply with re6 spect to the State before the expiration (determined

7 without regard to any extensions) of the waiver to

8 the extent such amendments are inconsistent with

9 the waiver.

10 ‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex11 cept as provided in paragraph (3), if any waiver

12 granted to a State under section 1115 or otherwise

13 which relates to the provision of assistance under a

14 State plan under this part (as in effect on Septem15 ber 30, 1995) is submitted to the Secretary before

16 the date of the enactment of the Personal Respon17 sibility and Work Opportunity Act of 1996 and ap18 proved by the Secretary on or before July 1, 1997,

19 and the State demonstrates to the satisfaction of the

20 Secretary that the waiver will not result in Federal

21 expenditures under title IV of this Act (as in effect

22 without regard to the amendments made by the Per23 sonal Responsibility and Work Opportunity Act of

24 1996) that are greater than would occur in the ab25 sence of the waiver, the amendments made by the
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1 Personal Responsibility and Work Opportunity Act

2 of 1996 (other than by section 4103(d) of such Act)

3 shall not apply with respect to the State before the

4 expiration (determined without regard to any exten5 sions) of the waiver to the extent the amendments

6 made by the Personal Responsibility and Work Op7 portunity Act of 1996 are inconsistent with the

8 waiver.

9 ‘‘(3) FINANCING LIMITATION.—Notwithstand10 ing any other provision of law, beginning with fiscal

11 year 1996, a State operating under a waiver de12 scribed in paragraph (1) shall be entitled to payment

13 under section 403 for the fiscal year, in lieu of any

14 other payment provided for in the waiver.

15 ‘‘(b) STATE OPTION TO TERMINATE WAIVER.—

16 ‘‘(1) IN GENERAL.—A State may terminate a

17 waiver described in subsection (a) before the expira18 tion of the waiver.

19 ‘‘(2) REPORT.—A State which terminates a

20 waiver under paragraph (1) shall submit a report to

21 the Secretary summarizing the waiver and any avail22 able information concerning the result or effect of

23 the waiver.

24 ‘‘(3) HOLD HARMLESS PROVISION.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding any

2 other provision of law, a State that, not later

3 than the date described in subparagraph (B),

4 submits a written request to terminate a waiver

5 described in subsection (a) shall be held harm6 less for accrued cost neutrality liabilities in7 curred under the waiver.

8 ‘‘(B) DATE DESCRIBED.—The date de9 scribed in this subparagraph is 90 days follow10 ing the adjournment of the first regular session

11 of the State legislature that begins after the

12 date of the enactment of the Personal Respon13 sibility and Work Opportunity Act of 1996.

14 ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT

15 WAIVERS.—The Secretary shall encourage any State oper16 ating a waiver described in subsection (a) to continue the

17 waiver and to evaluate, using random sampling and other

18 characteristics of accepted scientific evaluations, the result

19 or effect of the waiver.

20 ‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A

21 State may elect to continue 1 or more individual waivers

22 described in subsection (a).

23 ‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

24 ‘‘The programs under this part and part D shall be

25 administered by an Assistant Secretary for Family Sup-
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1 port within the Department of Health and Human Serv2 ices, who shall be appointed by the President, by and with

3 the advice and consent of the Senate, and who shall be

4 in addition to any other Assistant Secretary of Health and

5 Human Services provided for by law.

6 ‘‘SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

7 ‘‘No officer or employee of the Federal Government

8 may regulate the conduct of States under this part or en9 force any provision of this part, except to the extent ex10 pressly provided in this part.’’; and

11 (2) by inserting after such section 418 the fol12 lowing:

13 ‘‘SEC. 419. DEFINITIONS.

14 ‘‘As used in this part:

15 ‘‘(1) ADULT.—The term ‘adult’ means an indi16 vidual who is not a minor child.

17 ‘‘(2) MINOR CHILD.—The term ‘minor child’

18 means an individual who—

19 ‘‘(A) has not attained 18 years of age; or

20 ‘‘(B) has not attained 19 years of age and

21 is a full-time student in a secondary school (or

22 in the equivalent level of vocational or technical

23 training).
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1 ‘‘(3) FISCAL YEAR.—The term ‘fiscal year’

2 means any 12-month period ending on September 30

3 of a calendar year.

4 ‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA5 NIZATION.—

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

7 subparagraph (B), the terms ‘Indian’, ‘Indian

8 tribe’, and ‘tribal organization’ have the mean9 ing given such terms by section 4 of the Indian

10 Self-Determination and Education Assistance

11 Act (25 U.S.C. 450b).

12 ‘‘(B) SPECIAL RULE FOR INDIAN TRIBES

13 IN ALASKA.—The term ‘Indian tribe’ means,

14 with respect to the State of Alaska, only the

15 Metlakatla Indian Community of the Annette

16 Islands Reserve and the following Alaska Native

17 regional nonprofit corporations:

18 ‘‘(i) Arctic Slope Native Association.

19 ‘‘(ii) Kawerak, Inc.

20 ‘‘(iii) Maniilaq Association.

21 ‘‘(iv) Association of Village Council

22 Presidents.

23 ‘‘(v) Tanana Chiefs Conference.

24 ‘‘(vi) Cook Inlet Tribal Council.

25 ‘‘(vii) Bristol Bay Native Association.
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1 ‘‘(viii) Aleutian and Pribilof Island

2 Association.

3 ‘‘(ix) Chugachmuit.

4 ‘‘(x) Tlingit Haida Central Council.

5 ‘‘(xi) Kodiak Area Native Association.

6 ‘‘(xii) Copper River Native Associa7 tion.

8 ‘‘(5) STATE.—Except as otherwise specifically

9 provided, the term ‘State’ means the 50 States of

10 the United States, the District of Columbia, the

11 Commonwealth of Puerto Rico, the United States

12 Virgin Islands, Guam, and American Samoa.’’.

13 (b) GRANTS TO OUTLYING AREAS.—Section 1108

14 (42 U.S.C. 1308) is amended—

15 (1) by redesignating subsection (c) as sub16 section (g);

17 (2) by striking all that precedes subsection (c)

18 and inserting the following:

19 ‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE

20 VIRGIN ISLANDS, GUAM, AND AMERICAN

21 SAMOA; LIMITATION ON TOTAL PAYMENTS.

22 ‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH

23 TERRITORY.—Notwithstanding any other provision of this

24 Act, the total amount certified by the Secretary of Health

25 and Human Services under titles I, X, XIV, and XVI,
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1 under parts A, B, and E of title IV, and under subsection

2 (b) of this section, for payment to any territory for a fiscal

3 year shall not exceed the ceiling amount for the territory

4 for the fiscal year.

5 ‘‘(b) ENTITLEMENT TO MATCHING GRANT.—

6 ‘‘(1) IN GENERAL.—Each territory shall be en7 titled to receive from the Secretary for each fiscal

8 year a grant in an amount equal to 75 percent of

9 the amount (if any) by which—

10 ‘‘(A) the total expenditures of the territory

11 during the fiscal year under the territory pro12 grams funded under parts A, B, and E of title

13 IV; exceeds

14 ‘‘(B) the sum of—

15 ‘‘(i) the total amount required to be

16 paid to the territory (other than with re17 spect to child care) under former section

18 403 (as in effect on September 30, 1995)

19 for fiscal year 1995, which shall be deter20 mined by applying subparagraphs (C) and

21 (D) of section 403(a)(1) to the territory;

22 ‘‘(ii) the total amount required to be

23 paid to the territory under former section

24 434 (as so in effect) for fiscal year 1995;

25 and
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1 ‘‘(iii) the total amount expended by

2 the territory during fiscal year 1995 pur3 suant to parts A, B, and F of title IV (as

4 so in effect), other than for child care.

5 ‘‘(2) USE OF GRANT.—Any territory to which a

6 grant is made under paragraph (1) may expend the

7 amount under any program operated or funded

8 under any provision of law specified in subsection

9 (a).

10 ‘‘(c) DEFINITIONS.—As used in this section:

11 ‘‘(1) TERRITORY.—The term ‘territory’ means

12 Puerto Rico, the Virgin Islands, Guam, and Amer13 ican Samoa.

14 ‘‘(2) CEILING AMOUNT.—The term ‘ceiling

15 amount’ means, with respect to a territory and a fis16 cal year, the mandatory ceiling amount with respect

17 to the territory plus the discretionary ceiling amount

18 with respect to the territory, reduced for the fiscal

19 year in accordance with subsection (f).

20 ‘‘(3) MANDATORY CEILING AMOUNT.—The term

21 ‘mandatory ceiling amount’ means—

22 ‘‘(A) $105,538,000 with respect to for

23 Puerto Rico;

24 ‘‘(B) $4,902,000 with respect to Guam;
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1 ‘‘(C) $3,742,000 with respect to the Virgin

2 Islands; and

3 ‘‘(D) $1,122,000 with respect to American

4 Samoa.

5 ‘‘(4) DISCRETIONARY CEILING AMOUNT.—The

6 term ‘discretionary ceiling amount’ means, with re7 spect to a territory and a fiscal year, the total

8 amount appropriated pursuant to subsection (d)(3)

9 for the fiscal year for payment to the territory.

10 ‘‘(5) TOTAL AMOUNT EXPENDED BY THE TER11 RITORY.—The term ‘total amount expended by the

12 territory’—

13 ‘‘(A) does not include expenditures during

14 the fiscal year from amounts made available by

15 the Federal Government; and

16 ‘‘(B) when used with respect to fiscal year

17 1995, also does not include—

18 ‘‘(i) expenditures during fiscal year

19 1995 under subsection (g) or (i) of section

20 402 (as in effect on September 30, 1995);

21 or

22 ‘‘(ii) any expenditures during fiscal

23 year 1995 for which the territory (but for

24 section 1108, as in effect on September 30,
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1 1995) would have received reimbursement

2 from the Federal Government.

3 ‘‘(d) DISCRETIONARY GRANTS.—

4 ‘‘(1) IN GENERAL.—The Secretary shall make a

5 grant to each territory for any fiscal year in the

6 amount appropriated pursuant to paragraph (3) for

7 the fiscal year for payment to the territory.

8 ‘‘(2) USE OF GRANT.—Any territory to which a

9 grant is made under paragraph (1) may expend the

10 amount under any program operated or funded

11 under any provision of law specified in subsection

12 (a).

13 ‘‘(3) LIMITATION ON AUTHORIZATION OF AP14 PROPRIATIONS.—For grants under paragraph (1),

15 there are authorized to be appropriated to the Sec16 retary for each fiscal year—

17 ‘‘(A) $7,951,000 for payment to Puerto

18 Rico;

19 ‘‘(B) $345,000 for payment to Guam;

20 ‘‘(C) $275,000 for payment to the Virgin

21 Islands; and

22 ‘‘(D) $190,000 for payment to American

23 Samoa.

24 ‘‘(e) AUTHORITY TO TRANSFER FUNDS AMONG PRO25 GRAMS.—Notwithstanding any other provision of this Act,
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1 any territory to which an amount is paid under any provi2 sion of law specified in subsection (a) may use part or

3 all of the amount to carry out any program operated by

4 the territory, or funded, under any other such provision

5 of law.

6 ‘‘(f) MAINTENANCE OF EFFORT.—The ceiling

7 amount with respect to a territory shall be reduced for

8 a fiscal year by an amount equal to the amount (if any)

9 by which—

10 ‘‘(1) the total amount expended by the territory

11 under all programs of the territory operated pursu12 ant to the provisions of law specified in subsection

13 (a) (as such provisions were in effect for fiscal year

14 1995) for fiscal year 1995; exceeds

15 ‘‘(2) the total amount expended by the territory

16 under all programs of the territory that are funded

17 under the provisions of law specified in subsection

18 (a) for the fiscal year that immediately precedes the

19 fiscal year referred to in the matter preceding para20 graph (1).’’; and

21 (3) by striking subsections (d) and (e).

22 (c) REPEAL OF PROVISIONS REQUIRING REDUCTION

23 OF MEDICAID PAYMENTS TO STATES THAT REDUCE

24 WELFARE PAYMENT LEVELS.—
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1 (1) Section 1903(i) (42 U.S.C. 1396b(i)) is

2 amended by striking paragraph (9).

3 (2) Section 1902 (42 U.S.C. 1396a) is amended

4 by striking subsection (c).

5 (d) ELIMINATION OF CHILD CARE PROGRAMS

6 UNDER THE SOCIAL SECURITY ACT.—

7 (1) AFDC AND TRANSITIONAL CHILD CARE

8 PROGRAMS.—Section 402 (42 U.S.C. 602) is amend9 ed by striking subsection (g).

10 (2) AT-RISK CHILD CARE PROGRAM.—

11 (A) AUTHORIZATION.—Section 402 (42

12 U.S.C. 602) is amended by striking subsection

13 (i).

14 (B) FUNDING PROVISIONS.—Section 403

15 (42 U.S.C. 603) is amended by striking sub16 section (n).

17 SEC. 4104. SERVICES PROVIDED BY CHARITABLE, RELI18 GIOUS, OR PRIVATE ORGANIZATIONS.

19 (a) IN GENERAL.—

20 (1) STATE OPTIONS.—A State may—

21 (A) administer and provide services under

22 the programs described in subparagraphs (A)

23 and (B)(i) of paragraph (2) through contracts

24 with charitable, religious, or private organiza25 tions; and
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1 (B) provide beneficiaries of assistance

2 under the programs described in subparagraphs

3 (A) and (B)(ii) of paragraph (2) with certifi4 cates, vouchers, or other forms of disbursement

5 which are redeemable with such organizations.

6 (2) PROGRAMS DESCRIBED.—The programs de7 scribed in this paragraph are the following pro8 grams:

9 (A) A State program funded under part A

10 of title IV of the Social Security Act (as amend11 ed by section 4103(a) of this Act).

12 (B) Any other program established or

13 modified under subtitle A, B, or F of this title,

14 that—

15 (i) permits contracts with organiza16 tions; or

17 (ii) permits certificates, vouchers, or

18 other forms of disbursement to be provided

19 to beneficiaries, as a means of providing

20 assistance.

21 (b) RELIGIOUS ORGANIZATIONS.—The purpose of

22 this section is to allow States to contract with religious

23 organizations, or to allow religious organizations to accept

24 certificates, vouchers, or other forms of disbursement

25 under any program described in subsection (a)(2), on the
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1 same basis as any other nongovernmental provider without

2 impairing the religious character of such organizations,

3 and without diminishing the religious freedom of bene4 ficiaries of assistance funded under such program.

5 (c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA6 NIZATIONS.—In the event a State exercises its authority

7 under subsection (a), religious organizations are eligible,

8 on the same basis as any other private organization, as

9 contractors to provide assistance, or to accept certificates,

10 vouchers, or other forms of disbursement, under any pro11 gram described in subsection (a)(2) so long as the pro12 grams are implemented consistent with the Establishment

13 Clause of the United States Constitution. Except as pro14 vided in subsection (k), neither the Federal Government

15 nor a State receiving funds under such programs shall dis16 criminate against an organization which is or applies to

17 be a contractor to provide assistance, or which accepts cer18 tificates, vouchers, or other forms of disbursement, on the

19 basis that the organization has a religious character.

20 (d) RELIGIOUS CHARACTER AND FREEDOM.—

21 (1) RELIGIOUS ORGANIZATIONS.—A religious

22 organization with a contract described in subsection

23 (a)(1)(A), or which accepts certificates, vouchers, or

24 other forms of disbursement under subsection

25 (a)(1)(B), shall retain its independence from Fed-
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1 eral, State, and local governments, including such

2 organization’s control over the definition, develop3 ment, practice, and expression of its religious beliefs.

4 (2) ADDITIONAL SAFEGUARDS.—Neither the

5 Federal Government nor a State shall require a reli6 gious organization to—

7 (A) alter its form of internal governance;

8 or

9 (B) remove religious art, icons, scripture,

10 or other symbols;

11 in order to be eligible to contract to provide assist12 ance, or to accept certificates, vouchers, or other

13 forms of disbursement, funded under a program de14 scribed in subsection (a)(2).

15 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—

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

17 paragraph (2) has an objection to the religious char18 acter of the organization or institution from which

19 the individual receives, or would receive, assistance

20 funded under any program described in subsection

21 (a)(2), the State in which the individual resides shall

22 provide such individual (if otherwise eligible for such

23 assistance) within a reasonable period of time after

24 the date of such objection with assistance from an

25 alternative provider that is accessible to the individ-
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1 ual and the value of which is not less than the value

2 of the assistance which the individual would have re3 ceived from such organization.

4 (2) INDIVIDUAL DESCRIBED.—An individual de5 scribed in this paragraph is an individual who re6 ceives, applies for, or requests to apply for, assist7 ance under a program described in subsection (a)(2).

8 (f) EMPLOYMENT PRACTICES.—A religious organiza9 tion’s exemption provided under section 702 of the Civil

10 Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding em11 ployment practices shall not be affected by its participa12 tion in, or receipt of funds from, programs described in

13 subsection (a)(2).

14 (g) NONDISCRIMINATION AGAINST BENE15 FICIARIES.—Except as otherwise provided in law, a reli16 gious organization shall not discriminate against an indi17 vidual in regard to rendering assistance funded under any

18 program described in subsection (a)(2) on the basis of reli19 gion, a religious belief, or refusal to actively participate

20 in a religious practice.

21 (h) FISCAL ACCOUNTABILITY.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), any religious organization contracting to

24 provide assistance funded under any program de25 scribed in subsection (a)(2) shall be subject to the
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1 same regulations as other contractors to account in

2 accord with generally accepted auditing principles

3 for the use of such funds provided under such pro4 grams.

5 (2) LIMITED AUDIT.—If such organization seg6 regates Federal funds provided under such programs

7 into separate accounts, then only the financial as8 sistance provided with such funds shall be subject to

9 audit.

10 (i) COMPLIANCE.—Any party which seeks to enforce

11 its rights under this section may assert a civil action for

12 injunctive relief exclusively in an appropriate State court

13 against the entity or agency that allegedly commits such

14 violation.

15 (j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN

16 PURPOSES.—No funds provided directly to institutions or

17 organizations to provide services and administer programs

18 under subsection (a)(1)(A) shall be expended for sectarian

19 worship, instruction, or proselytization.

20 (k) PREEMPTION.—Nothing in this section shall be

21 construed to preempt any provision of a State constitution

22 or State statute that prohibits or restricts the expenditure

23 of State funds in or by religious organizations.
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1 SEC. 4105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

2 CAREGIVERS FOR THEIR GRANDCHILDREN.

3 (a) IN GENERAL.—Not later than 90 days after the

4 date of the enactment of this Act, the Secretary of Com5 merce, in carrying out section 141 of title 13, United

6 States Code, shall expand the data collection efforts of the

7 Bureau of the Census (in this section referred to as the

8 ‘‘Bureau’’) to enable the Bureau to collect statistically sig9 nificant data, in connection with its decennial census and

10 its mid-decade census, concerning the growing trend of

11 grandparents who are the primary caregivers for their

12 grandchildren.

13 (b) EXPANDED CENSUS QUESTION.—In carrying out

14 subsection (a), the Secretary of Commerce shall expand

15 the Bureau’s census question that details households

16 which include both grandparents and their grandchildren.

17 The expanded question shall be formulated to distinguish

18 between the following households:

19 (1) A household in which a grandparent tempo20 rarily provides a home for a grandchild for a period

21 of weeks or months during periods of parental dis22 tress.

23 (2) A household in which a grandparent pro24 vides a home for a grandchild and serves as the pri25 mary caregiver for the grandchild.
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1 SEC. 4106. REPORT ON DATA PROCESSING.

2 (a) IN GENERAL.—Within 6 months after the date

3 of the enactment of this Act, the Secretary of Health and

4 Human Services shall prepare and submit to the Congress

5 a report on—

6 (1) the status of the automated data processing

7 systems operated by the States to assist manage8 ment in the administration of State programs under

9 part A of title IV of the Social Security Act (wheth10 er in effect before or after October 1, 1995); and

11 (2) what would be required to establish a sys12 tem capable of—

13 (A) tracking participants in public pro14 grams over time; and

15 (B) checking case records of the States to

16 determine whether individuals are participating

17 in public programs of 2 or more States.

18 (b) PREFERRED CONTENTS.—The report required by

19 subsection (a) should include—

20 (1) a plan for building on the automated data

21 processing systems of the States to establish a sys22 tem with the capabilities described in subsection

23 (a)(2); and

24 (2) an estimate of the amount of time required

25 to establish such a system and of the cost of estab26 lishing such a system.
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1 SEC. 4107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

2 (a) STUDY.—The Secretary shall, in cooperation with

3 the States, study and analyze outcomes measures for eval4 uating the success of the States in moving individuals out

5 of the welfare system through employment as an alter6 native to the minimum participation rates described in

7 section 407 of the Social Security Act. The study shall

8 include a determination as to whether such alternative

9 outcomes measures should be applied on a national or a

10 State-by-State basis and a preliminary assessment of the

11 effects of section 409(a)(7)(C) of such Act.

12 (b) REPORT.—Not later than September 30, 1998,

13 the Secretary shall submit to the Committee on Finance

14 of the Senate and the Committee on Ways and Means of

15 the House of Representatives a report containing the find16 ings of the study required by subsection (a).

17 SEC. 4108. CONFORMING AMENDMENTS TO THE SOCIAL SE18 CURITY ACT.

19 (a) AMENDMENTS TO TITLE II.—

20 (1) Section 205(c)(2)(C)(vi) (42 U.S.C.

21 405(c)(2)(C)(vi)), as so redesignated by section

22 321(a)(9)(B) of the Social Security Independence

23 and Program Improvements Act of 1994, is amend24 ed—
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1 (A) by inserting ‘‘an agency administering

2 a program funded under part A of title IV or’’

3 before ‘‘an agency operating’’; and

4 (B) by striking ‘‘A or D of title IV of this

5 Act’’ and inserting ‘‘D of such title’’.

6 (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is

7 amended by inserting ‘‘under a State program fund8 ed under’’ before ‘‘part A of title IV’’.

9 (b) AMENDMENTS TO PART D OF TITLE IV.—

10 (1) Section 451 (42 U.S.C. 651) is amended by

11 striking ‘‘aid’’ and inserting ‘‘assistance under a

12 State program funded’’.

13 (2) Section 452(a)(10)(C) (42 U.S.C.

14 652(a)(10)(C)) is amended—

15 (A) by striking ‘‘aid to families with de16 pendent children’’ and inserting ‘‘assistance

17 under a State program funded under part A’’;

18 (B) by striking ‘‘such aid’’ and inserting

19 ‘‘such assistance’’; and

20 (C) by striking ‘‘under section 402(a)(26)

21 or’’ and inserting ‘‘pursuant to section

22 408(a)(4) or under section’’.

23 (3) Section 452(a)(10)(F) (42 U.S.C.

24 652(a)(10)(F)) is amended—
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1 (A) by striking ‘‘aid under a State plan ap2 proved’’ and inserting ‘‘assistance under a State

3 program funded’’; and

4 (B) by striking ‘‘in accordance with the

5 standards referred to in section

6 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

7 State’’.

8 (4) Section 452(b) (42 U.S.C. 652(b)) is

9 amended in the first sentence by striking ‘‘aid under

10 the State plan approved under part A’’ and inserting

11 ‘‘assistance under the State program funded under

12 part A’’.

13 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

14 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

15 and inserting ‘‘1115(b)’’.

16 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

17 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

18 being paid under the State’s plan approved under

19 part A or E’’ and inserting ‘‘assistance is being pro20 vided under the State program funded under part

21 A’’.

22 (7) Section 452(g)(2)(A) (42 U.S.C.

23 652(g)(2)(A)) is amended in the matter following

24 clause (iii) by striking ‘‘aid was being paid under the

25 State’s plan approved under part A or E’’ and in-
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1 serting ‘‘assistance was being provided under the

2 State program funded under part A’’.

3 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

4 amended in the matter following subparagraph

5 (B)—

6 (A) by striking ‘‘who is a dependent child’’

7 and inserting ‘‘with respect to whom assistance

8 is being provided under the State program

9 funded under part A’’;

10 (B) by inserting ‘‘by the State’’ after

11 ‘‘found’’; and

12 (C) by striking ‘‘to have good cause for re13 fusing to cooperate under section 402(a)(26)’’

14 and inserting ‘‘to qualify for a good cause or

15 other exception to cooperation pursuant to sec16 tion 454(29)’’.

17 (9) Section 452(h) (42 U.S.C. 652(h)) is

18 amended by striking ‘‘under section 402(a)(26)’’ and

19 inserting ‘‘pursuant to section 408(a)(4)’’.

20 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

21 amended by striking ‘‘aid under part A of this title’’

22 and inserting ‘‘assistance under a State program

23 funded under part A’’.

24 (11) Section 454(5)(A) (42 U.S.C. 654(5)(A)))

25 is amended—
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1 (A) by striking ‘‘under section 402(a)(26)’’

2 and inserting ‘‘pursuant to section 408(a)(4)’’;

3 and

4 (B) by striking ‘‘; except that this para5 graph shall not apply to such payments for any

6 month following the first month in which the

7 amount collected is sufficient to make such

8 family ineligible for assistance under the State

9 plan approved under part A;’’ and inserting a

10 comma.

11 (12) Section 454(6)(D) (42 U.S.C. 654(6)(D))

12 is amended by striking ‘‘aid under a State plan ap13 proved’’ and inserting ‘‘assistance under a State pro14 gram funded’’.

15 (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is

16 amended by striking ‘‘under section 402(a)(26)’’.

17 (14) Section 466(a)(3)(B) (42 U.S.C.

18 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’

19 and inserting ‘‘408(a)(3)’’.

20 (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

21 amended by striking ‘‘aid’’ and inserting ‘‘assistance

22 under a State program funded’’.

23 (16) Section 469(a) (42 U.S.C. 669(a)) is

24 amended—
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1 (A) by striking ‘‘aid under plans approved’’

2 and inserting ‘‘assistance under State programs

3 funded’’; and

4 (B) by striking ‘‘such aid’’ and inserting

5 ‘‘such assistance’’.

6 (c) REPEAL OF PART F OF TITLE IV.—Part F of

7 title IV (42 U.S.C. 681–687) is repealed.

8 (d) AMENDMENT TO TITLE X.—Section 1002(a)(7)

9 (42 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to

10 families with dependent children under the State plan ap11 proved under section 402 of this Act’’ and inserting ‘‘as12 sistance under a State program funded under part A of

13 title IV’’.

14 (e) AMENDMENTS TO TITLE XI.—

15 (1) Section 1109 (42 U.S.C. 1309) is amended

16 by striking ‘‘or part A of title IV,’’.

17 (2) Section 1115 (42 U.S.C. 1315) is amend18 ed—

19 (A) in subsection (a)(2)—

20 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

21 (ii) by striking ‘‘403,’’;

22 (iii) by striking the period at the end

23 and inserting ‘‘, and’’; and

24 (iv) by adding at the end the following

25 new subparagraph:
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1 ‘‘(B) costs of such project which would not oth2 erwise be a permissible use of funds under part A

3 of title IV and which are not included as part of the

4 costs of projects under section 1110, shall to the ex5 tent and for the period prescribed by the Secretary,

6 be regarded as a permissible use of funds under

7 such part.’’; and

8 (B) in subsection (c)(3), by striking ‘‘the

9 program of aid to families with dependent chil10 dren’’ and inserting ‘‘part A of such title’’.

11 (3) Section 1116 (42 U.S.C. 1316) is amend12 ed—

13 (A) in each of subsections (a)(1), (b), and

14 (d), by striking ‘‘or part A of title IV,’’; and

15 (B) in subsection (a)(3), by striking

16 ‘‘404,’’.

17 (4) Section 1118 (42 U.S.C. 1318) is amend18 ed—

19 (A) by striking ‘‘403(a),’’;

20 (B) by striking ‘‘and part A of title IV,’’;

21 and

22 (C) by striking ‘‘, and shall, in the case of

23 American Samoa, mean 75 per centum with re24 spect to part A of title IV’’.
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1 (5) Section 1119 (42 U.S.C. 1319) is amend2 ed—

3 (A) by striking ‘‘or part A of title IV’’; and

4 (B) by striking ‘‘403(a),’’.

5 (6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

6 amended by striking ‘‘or part A of title IV,’’.

7 (7) Section 1136 (42 U.S.C. 1320b–6) is re8 pealed.

9 (8) Section 1137 (42 U.S.C. 1320b–7) is

10 amended—

11 (A) in subsection (b), by striking para12 graph (1) and inserting the following:

13 ‘‘(1) any State program funded under part A of

14 title IV of this Act;’’; and

15 (B) in subsection (d)(1)(B)—

16 (i) by striking ‘‘In this subsection—’’

17 and all that follows through ‘‘(ii) in’’ and

18 inserting ‘‘In this subsection, in’’;

19 (ii) by redesignating subclauses (I),

20 (II), and (III) as clauses (i), (ii), and (iii);

21 and

22 (iii) by moving such redesignated ma23 terial 2 ems to the left.

24 (f) AMENDMENT TO TITLE XIV.—Section

25 1402(a)(7) (42 U.S.C. 1352(a)(7)) is amended by striking
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1 ‘‘aid to families with dependent children under the State

2 plan approved under section 402 of this Act’’ and insert3 ing ‘‘assistance under a State program funded under part

4 A of title IV’’.

5 (g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

6 RESPECT TO THE TERRITORIES.—Section 1602(a)(11),

7 as in effect without regard to the amendment made by

8 section 301 of the Social Security Amendments of 1972

9 (42 U.S.C. 1382 note), is amended by striking ‘‘aid under

10 the State plan approved’’ and inserting ‘‘assistance under

11 a State program funded’’.

12 (h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

13 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42

14 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

15 a State program funded under part A of title IV,’’.

16 (i) AMENDMENT TO TITLE XIX.—Section 1902(j)

17 (42 U.S.C. 1396a(j)) is amended by striking ‘‘1108(c)’’

18 and inserting ‘‘1108(g)’’.

19 SEC. 4109. CONFORMING AMENDMENTS TO THE FOOD

20 STAMP ACT OF 1977 AND RELATED PROVI21 SIONS.

22 (a) Section 5 of the Food Stamp Act of 1977 (7

23 U.S.C. 2014) is amended—

24 (1) in the second sentence of subsection (a), by

25 striking ‘‘plan approved’’ and all that follows
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1 through ‘‘title IV of the Social Security Act’’ and in2 serting ‘‘program funded under part A of title IV of

3 the Social Security Act (42 U.S.C. 601 et seq.)’’;

4 (2) in subsection (d)—

5 (A) in paragraph (5), by striking ‘‘assist6 ance to families with dependent children’’ and

7 inserting ‘‘assistance under a State program

8 funded’’; and

9 (B) by striking paragraph (13) and redes10 ignating paragraphs (14), (15), and (16) as

11 paragraphs (13), (14), and (15), respectively;

12 (3) in subsection (j), by striking ‘‘plan approved

13 under part A of title IV of such Act (42 U.S.C. 601

14 et seq.)’’ and inserting ‘‘program funded under part

15 A of title IV of the Act (42 U.S.C. 601 et seq.)’’;

16 and

17 (4) by striking subsection (m).

18 (b) Section 6 of such Act (7 U.S.C. 2015) is amend19 ed—

20 (1) in subsection (c)(5), by striking ‘‘the State

21 plan approved’’ and inserting ‘‘the State program

22 funded’’; and

23 (2) in subsection (e)(6), by striking ‘‘aid to

24 families with dependent children’’ and inserting

25 ‘‘benefits under a State program funded’’.
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1 (c) Section 16(g)(4) of such Act (7 U.S.C.

2 2025(g)(4)) is amended by striking ‘‘State plans under the

3 Aid to Families with Dependent Children Program under’’

4 and inserting ‘‘State programs funded under part A of’’.

5 (d) Section 17 of such Act (7 U.S.C. 2026) is amend6 ed—

7 (1) in the first sentence of subsection (b)(1)(A),

8 by striking ‘‘to aid to families with dependent chil9 dren under part A of title IV of the Social Security

10 Act’’ and inserting ‘‘or are receiving assistance

11 under a State program funded under part A of title

12 IV of the Social Security Act (42 U.S.C. 601 et

13 seq.)’’; and

14 (2) in subsection (b)(3), by adding at the end

15 the following new subparagraph:

16 ‘‘(I) The Secretary may not grant a waiver under this

17 paragraph on or after October 1, 1995. Any reference in

18 this paragraph to a provision of title IV of the Social Secu19 rity Act shall be deemed to be a reference to such provision

20 as in effect on September 30, 1995.’’;

21 (e) Section 20 of such Act (7 U.S.C. 2029) is amend22 ed—

23 (1) in subsection (a)(2)(B) by striking ‘‘operat24 ing—’’ and all that follows through ‘‘(ii) any other’’

25 and inserting ‘‘operating any’’; and
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1 (2) in subsection (b)—

2 (A) in paragraph (1)—

3 (i) by striking ‘‘(b)(1) A household’’

4 and inserting ‘‘(b) A household’’; and

5 (ii) in subparagraph (B), by striking

6 ‘‘training program’’ and inserting ‘‘activ7 ity’’;

8 (B) by striking paragraph (2); and

9 (C) by redesignating subparagraphs (A)

10 through (F) as paragraphs (1) through (6), re11 spectively.

12 (f) Section 5(h)(1) of the Agriculture and Consumer

13 Protection Act of 1973 (Public Law 93–186; 7 U.S.C.

14 612c note) is amended by striking ‘‘the program for aid

15 to families with dependent children’’ and inserting ‘‘the

16 State program funded’’.

17 (g) Section 9 of the National School Lunch Act (42

18 U.S.C. 1758) is amended—

19 (1) in subsection (b)—

20 (A) in paragraph (2)(C)(ii)(II)—

21 (i) by striking ‘‘program for aid to

22 families with dependent children’’ and in23 serting ‘‘State program funded’’; and

24 (ii) by inserting before the period at

25 the end the following: ‘‘that the Secretary
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1 determines complies with standards estab2 lished by the Secretary that ensure that

3 the standards under the State program are

4 comparable to or more restrictive than

5 those in effect on June 1, 1995’’; and

6 (B) in paragraph (6)—

7 (i) in subparagraph (A)(ii)—

8 (I) by striking ‘‘an AFDC assist9 ance unit (under the aid to families

10 with dependent children program au11 thorized’’ and inserting ‘‘a family

12 (under the State program funded’’;

13 and

14 (II) by striking ‘‘, in a State’’

15 and all that follows through

16 ‘‘9902(2)))’’ and inserting ‘‘that the

17 Secretary determines complies with

18 standards established by the Secretary

19 that ensure that the standards under

20 the State program are comparable to

21 or more restrictive than those in effect

22 on June 1, 1995’’; and

23 (ii) in subparagraph (B), by striking

24 ‘‘aid to families with dependent children’’

25 and inserting ‘‘assistance under the State
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1 program funded under part A of title IV of

2 the Social Security Act (42 U.S.C. 601 et

3 seq.) that the Secretary determines com4 plies with standards established by the

5 Secretary that ensure that the standards

6 under the State program are comparable

7 to or more restrictive than those in effect

8 on June 1, 1995’’; and

9 (2) in subsection (d)(2)(C)—

10 (A) by striking ‘‘program for aid to fami11 lies with dependent children’’ and inserting

12 ‘‘State program funded’’; and

13 (B) by inserting before the period at the

14 end the following: ‘‘that the Secretary deter15 mines complies with standards established by

16 the Secretary that ensure that the standards

17 under the State program are comparable to or

18 more restrictive than those in effect on June 1,

19 1995’’.

20 (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition

21 Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amend22 ed—

23 (1) by striking ‘‘program for aid to families

24 with dependent children established’’ and inserting

25 ‘‘State program funded’’; and
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1 (2) by inserting before the semicolon the follow2 ing: ‘‘that the Secretary determines complies with

3 standards established by the Secretary that ensure

4 that the standards under the State program are

5 comparable to or more restrictive than those in ef6 fect on June 1, 1995’’.

7 SEC. 4110. CONFORMING AMENDMENTS TO OTHER LAWS.

8 (a) Subsection (b) of section 508 of the Unemploy9 ment Compensation Amendments of 1976 (42 U.S.C.

10 603a; Public Law 94–566; 90 Stat. 2689) is amended to

11 read as follows:

12 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX13 PENSES.—For purposes of section 455 of the Social Secu14 rity Act, expenses incurred to reimburse State employment

15 offices for furnishing information requested of such of16 fices—

17 ‘‘(1) pursuant to the third sentence of section

18 3(a) of the Act entitled ‘An Act to provide for the

19 establishment of a national employment system and

20 for cooperation with the States in the promotion of

21 such system, and for other purposes’, approved June

22 6, 1933 (29 U.S.C. 49b(a)), or

23 ‘‘(2) by a State or local agency charged with

24 the duty of carrying a State plan for child support
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1 approved under part D of title IV of the Social Se2 curity Act,

3 shall be considered to constitute expenses incurred in the

4 administration of such State plan.’’.

5 (b) Section 9121 of the Omnibus Budget Reconcili6 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

7 (c) Section 9122 of the Omnibus Budget Reconcili8 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

9 (d) Section 221 of the Housing and Urban-Rural Re10 covery Act of 1983 (42 U.S.C. 602 note), relating to treat11 ment under AFDC of certain rental payments for federally

12 assisted housing, is repealed.

13 (e) Section 159 of the Tax Equity and Fiscal Respon14 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.

15 (f) Section 202(d) of the Social Security Amendments

16 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

17 (g) Section 903 of the Stewart B. McKinney Home18 less Assistance Amendments Act of 1988 (42 U.S.C.

19 11381 note), relating to demonstration projects to reduce

20 number of AFDC families in welfare hotels, is amended—

21 (1) in subsection (a), by striking ‘‘aid to fami22 lies with dependent children under a State plan ap23 proved’’ and inserting ‘‘assistance under a State pro24 gram funded’’; and
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1 (2) in subsection (c), by striking ‘‘aid to fami2 lies with dependent children in the State under a

3 State plan approved’’ and inserting ‘‘assistance in

4 the State under a State program funded’’.

5 (h) The Higher Education Act of 1965 (20 U.S.C.

6 1001 et seq.) is amended—

7 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

8 23(c)(3)), by striking ‘‘(Aid to Families with De9 pendent Children)’’; and

10 (2) in section 480(b)(2) (20 U.S.C.

11 1087vv(b)(2)), by striking ‘‘aid to families with de12 pendent children under a State plan approved’’ and

13 inserting ‘‘assistance under a State program fund14 ed’’.

15 (i) The Carl D. Perkins Vocational and Applied Tech16 nology Education Act (20 U.S.C. 2301 et seq.) is amend17 ed—

18 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

19 2341(d)(3)(A)(ii)), by striking ‘‘The program for aid

20 to dependent children’’ and inserting ‘‘The State

21 program funded’’;

22 (2) in section 232(b)(2)(B) (20 U.S.C.

23 2341a(b)(2)(B)), by striking ‘‘the program for aid to

24 families with dependent children’’ and inserting ‘‘the

25 State program funded’’; and
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1 (3) in section 521(14)(B)(iii) (20 U.S.C.

2 2471(14)(B)(iii)), by striking ‘‘the program for aid

3 to families with dependent children’’ and inserting

4 ‘‘the State program funded’’.

5 (j) The Elementary and Secondary Education Act of

6 1965 (20 U.S.C. 2701 et seq.) is amended—

7 (1) in section 1113(a)(5) (20 U.S.C.

8 6313(a)(5)), by striking ‘‘Aid to Families with De9 pendent Children program’’ and inserting ‘‘State

10 program funded under part A of title IV of the So11 cial Security Act’’;

12 (2) in section 1124(c)(5) (20 U.S.C.

13 6333(c)(5)), by striking ‘‘the program of aid to fam14 ilies with dependent children under a State plan ap15 proved under’’ and inserting ‘‘a State program fund16 ed under part A of’’; and

17 (3) in section 5203(b)(2) (20 U.S.C.

18 7233(b)(2))—

19 (A) in subparagraph (A)(xi), by striking

20 ‘‘Aid to Families with Dependent Children ben21 efits’’ and inserting ‘‘assistance under a State

22 program funded under part A of title IV of the

23 Social Security Act’’; and

24 (B) in subparagraph (B)(viii), by striking

25 ‘‘Aid to Families with Dependent Children’’ and
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1 inserting ‘‘assistance under the State program

2 funded under part A of title IV of the Social

3 Security Act’’.

4 (k) The 4th proviso of chapter VII of title I of Public

5 Law 99–88 (25 U.S.C. 13d–1) is amended to read as fol6 lows: ‘‘Provided further, That general assistance payments

7 made by the Bureau of Indian Affairs shall be made—

8 ‘‘(1) after April 29, 1985, and before October

9 1, 1995, on the basis of Aid to Families with De10 pendent Children (AFDC) standards of need; and

11 ‘‘(2) on and after October 1, 1995, on the basis

12 of standards of need established under the State

13 program funded under part A of title IV of the So14 cial Security Act,

15 except that where a State ratably reduces its AFDC or

16 State program payments, the Bureau shall reduce general

17 assistance payments in such State by the same percentage

18 as the State has reduced the AFDC or State program pay19 ment.’’.

20 (l) The Internal Revenue Code of 1986 (26 U.S.C.

21 1 et seq.) is amended—

22 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

23 striking all that follows ‘‘agency as’’ and inserting

24 ‘‘being eligible for financial assistance under part A

25 of title IV of the Social Security Act and as having
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1 continually received such financial assistance during

2 the 90-day period which immediately precedes the

3 date on which such individual is hired by the em4 ployer.’’;

5 (2) in section 3304(a)(16) (26 U.S.C.

6 3304(a)(16)), by striking ‘‘eligibility for aid or serv7 ices,’’ and all that follows through ‘‘children ap8 proved’’ and inserting ‘‘eligibility for assistance, or

9 the amount of such assistance, under a State pro10 gram funded’’;

11 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

12 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

13 dependent children provided under a State plan ap14 proved’’ and inserting ‘‘a State program funded’’;

15 (4) in section 6103(l)(10) (26 U.S.C.

16 6103(l)(10))—

17 (A) by striking ‘‘(c) or (d)’’ each place it

18 appears and inserting ‘‘(c), (d), or (e)’’; and

19 (B) by adding at the end of subparagraph

20 (B) the following new sentence: ‘‘Any return in21 formation disclosed with respect to section

22 6402(e) shall only be disclosed to officers and

23 employees of the State agency requesting such

24 information.’’;
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1 (5) in section 6103(p)(4) (26 U.S.C.

2 6103(p)(4)), in the matter preceding subparagraph

3 (A)—

4 (A) by striking ‘‘(5), (10)’’ and inserting

5 ‘‘(5)’’; and

6 (B) by striking ‘‘(9), or (12)’’ and insert7 ing ‘‘(9), (10), or (12)’’;

8 (6) in section 6334(a)(11)(A) (26 U.S.C.

9 6334(a)(11)(A)), by striking ‘‘(relating to aid to

10 families with dependent children)’’;

11 (7) in section 6402 (26 U.S.C. 6402)—

12 (A) in subsection (a), by striking ‘‘(c) and

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

14 (B) by redesignating subsections (e)

15 through (i) as subsections (f) through (j), re16 spectively; and

17 (C) by inserting after subsection (d) the

18 following:

19 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

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

21 any overpayment to be refunded to the person making the

22 overpayment shall be reduced (after reductions pursuant

23 to subsections (c) and (d), but before a credit against fu24 ture liability for an internal revenue tax) in accordance

25 with section 405(e) of the Social Security Act (concerning
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1 recovery of overpayments to individuals under State plans

2 approved under part A of title IV of such Act).’’; and

3 (8) in section 7523(b)(3)(C) (26 U.S.C.

4 7523(b)(3)(C)), by striking ‘‘aid to families with de5 pendent children’’ and inserting ‘‘assistance under a

6 State program funded under part A of title IV of the

7 Social Security Act’’.

8 (m) Section 3(b) of the Wagner-Peyser Act (29

9 U.S.C. 49b(b)) is amended by striking ‘‘State plan ap10 proved under part A of title IV’’ and inserting ‘‘State pro11 gram funded under part A of title IV’’.

12 (n) The Job Training Partnership Act (29 U.S.C.

13 1501 et seq.) is amended—

14 (1) in section 4(29)(A)(i) (29 U.S.C.

15 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et

16 seq.)’’;

17 (2) in section 106(b)(6)(C) (29 U.S.C.

18 1516(b)(6)(C)), by striking ‘‘State aid to families

19 with dependent children records,’’ and inserting

20 ‘‘records collected under the State program funded

21 under part A of title IV of the Social Security Act,’’;

22 (3) in section 121(b)(2) (29 U.S.C.

23 1531(b)(2))—
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1 (A) by striking ‘‘the JOBS program’’ and

2 inserting ‘‘the work activities required under

3 title IV of the Social Security Act’’; and

4 (B) by striking the second sentence;

5 (4) in section 123(c) (29 U.S.C. 1533(c))—

6 (A) in paragraph (1)(E), by repealing

7 clause (vi); and

8 (B) in paragraph (2)(D), by repealing

9 clause (v);

10 (5) in section 203(b)(3) (29 U.S.C.

11 1603(b)(3)), by striking ‘‘, including recipients

12 under the JOBS program’’;

13 (6) in subparagraphs (A) and (B) of section

14 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by

15 striking ‘‘(such as the JOBS program)’’ each place

16 it appears;

17 (7) in section 205(a) (29 U.S.C. 1605(a)), by

18 striking paragraph (4) and inserting the following:

19 ‘‘(4) the portions of title IV of the Social Secu20 rity Act relating to work activities;’’;

21 (8) in section 253 (29 U.S.C. 1632)—

22 (A) in subsection (b)(2), by repealing sub23 paragraph (C); and
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1 (B) in paragraphs (1)(B) and (2)(B) of

2 subsection (c), by striking ‘‘the JOBS program

3 or’’ each place it appears;

4 (9) in section 264 (29 U.S.C. 1644)—

5 (A) in subparagraphs (A) and (B) of sub6 section (b)(1), by striking ‘‘(such as the JOBS

7 program)’’ each place it appears; and

8 (B) in subparagraphs (A) and (B) of sub9 section (d)(3), by striking ‘‘and the JOBS pro10 gram’’ each place it appears;

11 (10) in section 265(b) (29 U.S.C. 1645(b)), by

12 striking paragraph (6) and inserting the following:

13 ‘‘(6) the portion of title IV of the Social Secu14 rity Act relating to work activities;’’;

15 (11) in the second sentence of section 429(e)

16 (29 U.S.C. 1699(e)), by striking ‘‘and shall be in an

17 amount that does not exceed the maximum amount

18 that may be provided by the State pursuant to sec19 tion 402(g)(1)(C) of the Social Security Act (42

20 U.S.C. 602(g)(1)(C))’’;

21 (12) in section 454(c) (29 U.S.C. 1734(c)), by

22 striking ‘‘JOBS and’’;

23 (13) in section 455(b) (29 U.S.C. 1735(b)), by

24 striking ‘‘the JOBS program,’’;
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1 (14) in section 501(1) (29 U.S.C. 1791(1)), by

2 striking ‘‘aid to families with dependent children

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

4 (42 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance

5 under the State program funded under part A of

6 title IV of the Social Security Act’’;

7 (15) in section 506(1)(A) (29 U.S.C.

8 1791e(1)(A)), by striking ‘‘aid to families with de9 pendent children’’ and inserting ‘‘assistance under

10 the State program funded’’;

11 (16) in section 508(a)(2)(A) (29 U.S.C.

12 1791g(a)(2)(A)), by striking ‘‘aid to families with

13 dependent children’’ and inserting ‘‘assistance under

14 the State program funded’’; and

15 (17) in section 701(b)(2)(A) (29 U.S.C.

16 1792(b)(2)(A))—

17 (A) in clause (v), by striking the semicolon

18 and inserting ‘‘; and’’; and

19 (B) by striking clause (vi).

20 (o) Section 3803(c)(2)(C)(iv) of title 31, United

21 States Code, is amended to read as follows:

22 ‘‘(iv) assistance under a State program funded

23 under part A of title IV of the Social Security Act;’’.
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1 (p) Section 2605(b)(2)(A)(i) of the Low-Income

2 Home Energy Assistance Act of 1981 (42 U.S.C.

3 8624(b)(2)(A)(i)) is amended to read as follows:

4 ‘‘(i) assistance under the State pro5 gram funded under part A of title IV of

6 the Social Security Act;’’.

7 (q) Section 303(f)(2) of the Family Support Act of

8 1988 (42 U.S.C. 602 note) is amended—

9 (1) by striking ‘‘(A)’’; and

10 (2) by striking subparagraphs (B) and (C).

11 (r) The Balanced Budget and Emergency Deficit

12 Control Act of 1985 (2 U.S.C. 900 et seq.) is amended—

13 (1) in the first section 255(h) (2 U.S.C.

14 905(h)), by striking ‘‘Aid to families with dependent

15 children (75–0412–0–1–609);’’ and inserting ‘‘Block

16 grants to States for temporary assistance for needy

17 families;’’; and

18 (2) in section 256 (2 U.S.C. 906)—

19 (A) by striking subsection (k); and

20 (B) by redesignating subsection (l) as sub21 section (k).

22 (s) The Immigration and Nationality Act (8 U.S.C.

23 1101 et seq.) is amended—

24 (1) in section 210(f) (8 U.S.C. 1160(f)), by

25 striking ‘‘aid under a State plan approved under’’
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1 each place it appears and inserting ‘‘assistance

2 under a State program funded under’’;

3 (2) in section 245A(h) (8 U.S.C. 1255a(h))—

4 (A) in paragraph (1)(A)(i), by striking

5 ‘‘program of aid to families with dependent chil6 dren’’ and inserting ‘‘State program of assist7 ance’’; and

8 (B) in paragraph (2)(B), by striking ‘‘aid

9 to families with dependent children’’ and insert10 ing ‘‘assistance under a State program funded

11 under part A of title IV of the Social Security

12 Act’’; and

13 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)),

14 by striking ‘‘State plan approved’’ and inserting

15 ‘‘State program funded’’.

16 (t) Section 640(a)(4)(B)(i) of the Head Start Act (42

17 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘pro18 gram of aid to families with dependent children under a

19 State plan approved’’ and inserting ‘‘State program of as20 sistance funded’’.

21 (u) Section 9 of the Act of April 19, 1950 (64 Stat.

22 47, chapter 92; 25 U.S.C. 639) is repealed.

23 (v) Subparagraph (E) of section 213(d)(6) of the

24 School-To-Work Opportunities Act of 1994 (20 U.S.C.

25 6143(d)(6)) is amended to read as follows:
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1 ‘‘(E) part A of title IV of the Social Secu2 rity Act (42 U.S.C. 601 et seq.) relating to

3 work activities;’’.

4 (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United

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

6 of the Social Security Act’’ and inserting ‘‘section 404(e),

7 464, or 1137 of the Social Security Act’’.

8 SEC. 4111. DEVELOPMENT OF PROTOTYPE OF COUNTER9 FEIT-RESISTANT SOCIAL SECURITY CARD RE10 QUIRED.

11 (a) DEVELOPMENT.—

12 (1) IN GENERAL.—The Commissioner of Social

13 Security (in this section referred to as the ‘‘Commis14 sioner’’) shall, in accordance with this section, de15 velop a prototype of a counterfeit-resistant social se16 curity card. Such prototype card shall—

17 (A) be made of a durable, tamper-resistant

18 material such as plastic or polyester,

19 (B) employ technologies that provide secu20 rity features, such as magnetic stripes,

21 holograms, and integrated circuits, and

22 (C) be developed so as to provide individ23 uals with reliable proof of citizenship or legal

24 resident alien status.
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1 (2) ASSISTANCE BY ATTORNEY GENERAL.—The

2 Attorney General of the United States shall provide

3 such information and assistance as the Commis4 sioner deems necessary to enable the Commissioner

5 to comply with this section.

6 (b) STUDY AND REPORT.—

7 (1) IN GENERAL.—The Commissioner shall con8 duct a study and issue a report to Congress which

9 examines different methods of improving the social

10 security card application process.

11 (2) ELEMENTS OF STUDY.—The study shall in12 clude an evaluation of the cost and work load impli13 cations of issuing a counterfeit-resistant social secu14 rity card for all individuals over a 3-, 5-, and 10-

15 year period. The study shall also evaluate the fea16 sibility and cost implications of imposing a user fee

17 for replacement cards and cards issued to individ18 uals who apply for such a card prior to the sched19 uled 3-, 5-, and 10-year phase-in options.

20 (3) DISTRIBUTION OF REPORT.—The Commis21 sioner shall submit copies of the report described in

22 this subsection along with a facsimile of the proto23 type card as described in subsection (a) to the Com24 mittees on Ways and Means and Judiciary of the

25 House of Representatives and the Committees on Fi-
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1 nance and Judiciary of the Senate within 1 year

2 after the date of the enactment of this Act.

3 SEC. 4112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

4 (a) IN GENERAL.—Whenever an organization that

5 accepts Federal funds under this title or the amendments

6 made by this title (other than funds provided under title

7 IV, XVI, or XX of the Social Security Act) makes any

8 communication that in any way intends to promote public

9 support or opposition to any policy of a Federal, State,

10 or local government through any broadcasting station,

11 newspaper, magazine, outdoor advertising facility, direct

12 mailing, or any other type of general public advertising,

13 such communication shall state the following: ‘‘This was

14 prepared and paid for by an organization that accepts tax15 payer dollars.’’.

16 (b) FAILURE TO COMPLY.—If an organization makes

17 any communication described in subsection (a) and fails

18 to provide the statement required by that subsection, such

19 organization shall be ineligible to receive Federal funds

20 under this title or the amendments made by this title.

21 (c) DEFINITION.—For purposes of this section, the

22 term ‘‘organization’’ means an organization described in

23 section 501(c) of the Internal Revenue Code of 1986.

24 (d) EFFECTIVE DATES.—This section shall take ef25 fect—
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1 (1) with respect to printed communications 1

2 year after the date of enactment of this Act; and

3 (2) with respect to any other communication on

4 the date of enactment of this Act.

5 SEC. 4113. MODIFICATIONS TO THE JOB OPPORTUNITIES

6 FOR CERTAIN LOW-INCOME INDIVIDUALS

7 PROGRAM.

8 Section 505 of the Family Support Act of 1988 (42

9 U.S.C. 1315 note) is amended—

10 (1) in the heading, by striking ‘‘DEMONSTRA11 TION’’;

12 (2) by striking ‘‘demonstration’’ each place such

13 term appears;

14 (3) in subsection (a), by striking ‘‘in each of

15 fiscal years’’ and all that follows through ‘‘10’’ and

16 inserting ‘‘shall enter into agreements with’’;

17 (4) in subsection (b)(3), by striking ‘‘aid to

18 families with dependent children under part A of

19 title IV of the Social Security Act’’ and inserting

20 ‘‘assistance under the program funded part A of title

21 IV of the Social Security Act of the State in which

22 the individual resides’’;

23 (5) in subsection (c)—

24 (A) in paragraph (1)(C), by striking ‘‘aid

25 to families with dependent children under title
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1 IV of the Social Security Act’’ and inserting

2 ‘‘assistance under a State program funded part

3 A of title IV of the Social Security Act’’;

4 (B) in paragraph (2), by striking ‘‘aid to

5 families with dependent children under title IV

6 of such Act’’ and inserting ‘‘assistance under a

7 State program funded part A of title IV of the

8 Social Security Act’’;

9 (6) in subsection (d), by striking ‘‘job opportu10 nities and basic skills training program (as provided

11 for under title IV of the Social Security Act)’’ and

12 inserting ‘‘the State program funded under part A

13 of title IV of the Social Security Act’’; and

14 (7) by striking subsections (e) through (g) and

15 inserting the following:

16 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the

17 purpose of conducting projects under this section, there

18 is authorized to be appropriated an amount not to exceed

19 $25,000,000 for any fiscal year.’’.

20 SEC. 4114. SECRETARIAL SUBMISSION OF LEGISLATIVE

21 PROPOSAL FOR TECHNICAL AND CONFORM22 ING AMENDMENTS.

23 Not later than 90 days after the date of the enact24 ment of this Act, the Secretary of Health and Human

25 Services and the Commissioner of Social Security, in con-
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1 sultation, as appropriate, with the heads of other Federal

2 agencies, shall submit to the appropriate committees of

3 Congress a legislative proposal proposing such technical

4 and conforming amendments as are necessary to bring the

5 law into conformity with the policy embodied in this sub6 title.

7 SEC. 4115. CONFORMING AMENDMENTS TO MEDICAID PRO8 GRAM.

9 (a) IN GENERAL.—Title XIX is amended—

10 (1) in section 1931, by inserting ‘‘subject to

11 section 1931(a),’’ in subsection (a) after ‘‘under this

12 title,’’ and by redesignating such section as section

13 1932; and

14 (2) by inserting after section 1930 the following

15 new section:

16 ‘‘CONTINUED APPLICATION OF STANDARDS AND METH17 ODOLOGIES UNDER PART A OF TITLE IV FOR CER18 TAIN INDIVIDUALS

19 ‘‘SEC. 1931. (a) For purposes of applying this title

20 with respect to a State, notwithstanding any other provi21 sion of this title—

22 ‘‘(1) except as provided in paragraphs (2)

23 through (5), any reference in this title (or other pro24 vision of law in relation to the operation of this title)

25 to a provision of part A of title IV, or a State plan

26 under such part, shall be considered a reference to
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1 such provision or plan as in effect as of July 16,

2 1996, with respect to the State and eligibility for

3 medical assistance under this title shall be deter4 mined as if such provision or plan (as in effect as

5 of such date) remained in effect;

6 ‘‘(2) any reference in section 1902(a)(5) or

7 1902(a)(55) to a State plan approved under part A

8 of title IV shall be deemed a reference to a State

9 program funded under such part;

10 ‘‘(3) a State may provide that any income

11 standard under the State plan referred to in para12 graph (1) may be increased over a period (beginning

13 after July 16, 1996) by a percentage that does not

14 exceed the percentage increase in the consumer price

15 index for all urban consumers (all items; U.S. city

16 average) over such period;

17 ‘‘(4) in applying section 1925, medical assist18 ance is required to be provided under such section

19 only if it is required to be provided under section

20 408(a)(13); and

21 ‘‘(5) a State may terminate medical assistance

22 under this title for an individual because the individ23 ual fails to meet any requirement imposed pursuant

24 to section 407 if the individual was eligible for the

25 medical assistance—
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1 ‘‘(A) on the basis of receipt of assistance

2 under a State program funded under part A of

3 title IV, or

4 ‘‘(B) pursuant to paragraph (1), on the

5 basis that the individual meets the requirements

6 for receipt of aid or assistance under the State

7 plan under part A of title IV (as in effect on

8 July 16, 1996).

9 ‘‘(b) In the case of a waiver of a provision of part

10 A of title IV in effect with respect to a State as of July

11 16, 1996, if the waiver affects eligibility of individuals for

12 medical assistance under this title, such waiver may con13 tinue to be applied, at the option of the State, in relation

14 to this title after the date the waiver would otherwise ex15 pire.’’.

16 (b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.

17 1396a(a)) is amended—

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

19 (61),

20 (2) by striking the period at the end of para21 graph (62) and inserting ‘‘; and’’, and

22 (3) by inserting after paragraph (62) the fol23 lowing new paragraph:

24 ‘‘(63) provide for continuing to administer eligi25 bility standards with respect to individuals who are
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1 (or seek to be) eligible for medical assistance based

2 on the application of section 1931.’’.

3 (c) CONFORMING AMENDMENTS.—(1) Section

4 1902(c) (42 U.S.C. 1396a(c)) is amended by striking

5 ‘‘if—’’ and all that follows and inserting the following: ‘‘if

6 the State requires individuals described in subsection

7 (l)(1) to apply for assistance under the State program

8 funded under part A of title IV as a condition of applying

9 for or receiving medical assistance under this title.’’.

10 (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended

11 by striking paragraph (9).

12 SEC. 4116. EFFECTIVE DATE; TRANSITION RULE.

13 (a) EFFECTIVE DATES.—

14 (1) IN GENERAL.—Except as otherwise pro15 vided in this subtitle, this subtitle and the amend16 ments made by this subtitle shall take effect on July

17 1, 1997.

18 (2) DELAYED EFFECTIVE DATE FOR CERTAIN

19 PROVISIONS.—Notwithstanding any other provision

20 of this section, paragraphs (2), (3), (4), (5), (8), and

21 (10) of section 409(a) and section 411(a) of the So22 cial Security Act (as added by the amendments

23 made by section 4103(a) of this Act) shall not take

24 effect with respect to a State until, and shall apply
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1 only with respect to conduct that occurs on or after,

2 the later of—

3 (A) July 1, 1997; or

4 (B) the date that is 6 months after the

5 date the Secretary of Health and Human Serv6 ices receives from the State a plan described in

7 section 402(a) of the Social Security Act (as

8 added by such amendment).

9 (3) ELIMINATION OF CHILD CARE PROGRAMS.—

10 The amendments made by section 4103(d) shall take

11 effect on October 1, 1996.

12 (4) DEFINITIONS APPLICABLE TO NEW CHILD

13 CARE ENTITLEMENT.—Sections 403(a)(1)(C),

14 403(a)(1)(D), and 419(4) of the Social Security Act,

15 as added by the amendments made by section

16 4103(a) of this Act, shall take effect on October 1,

17 1996.

18 (b) TRANSITION RULES.—Effective on the date of

19 the enactment of this Act:

20 (1) STATE OPTION TO ACCELERATE EFFECTIVE

21 DATE.—

22 (A) IN GENERAL.—If the Secretary of

23 Health and Human Services receives from a

24 State a plan described in section 402(a) of the

25 Social Security Act (as added by the amend-
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1 ment made by section 4103(a)(1) of this Act),

2 then—

3 (i) on and after the date of such re4 ceipt—

5 (I) except as provided in clause

6 (ii), this subtitle and the amendments

7 made by this subtitle (other than by

8 section 4103(d) of this Act) shall

9 apply with respect to the State; and

10 (II) the State shall be considered

11 an eligible State for purposes of part

12 A of title IV of the Social Security

13 Act (as in effect pursuant to the

14 amendments made by such section

15 4103(a)); and

16 (ii) during the period that begins on

17 the date of such receipt and ends on June

18 30, 1997, there shall remain in effect with

19 respect to the State—

20 (I) section 403(h) of the Social

21 Security Act (as in effect on Septem22 ber 30, 1995); and

23 (II) all State reporting require24 ments under parts A and F of title IV

25 of the Social Security Act (as in effect
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1 on September 30, 1995), modified by

2 the Secretary as appropriate, taking

3 into account the State program under

4 part A of title IV of the Social Secu5 rity Act (as in effect pursuant to the

6 amendments made by such section

7 4103(a)).

8 (B) LIMITATIONS ON FEDERAL OBLIGA9 TIONS.—

10 (i) UNDER AFDC PROGRAM.—The

11 total obligations of the Federal Govern12 ment to a State under part A of title IV

13 of the Social Security Act (as in effect on

14 September 30, 1995) with respect to ex15 penditures in fiscal year 1997 shall not ex16 ceed an amount equal to the State family

17 assistance grant.

18 (ii) UNDER TEMPORARY FAMILY AS19 SISTANCE PROGRAM.—Notwithstanding

20 section 403(a)(1) of the Social Security

21 Act (as in effect pursuant to the amend22 ments made by section 4103(a) of this

23 Act), the total obligations of the Federal

24 Government to a State under such section

25 403(a)(1)—
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1 (I) for fiscal year 1996, shall be

2 an amount equal to—

3 (aa) the State family assist4 ance grant; multiplied by

(bb) 1 5 ⁄366 of the number of

6 days during the period that be7 gins on the date the Secretary of

8 Health and Human Services first

9 receives from the State a plan

10 described in section 402(a) of the

11 Social Security Act (as added by

12 the amendment made by section

13 4103(a)(1) of this Act) and ends

14 on September 30, 1996; and

15 (II) for fiscal year 1997, shall be

16 an amount equal to the lesser of—

17 (aa) the amount (if any) by

18 which the State family assistance

19 grant exceeds the total obliga20 tions of the Federal Government

21 to the State under part A of title

22 IV of the Social Security Act (as

23 in effect on September 30, 1995)

24 with respect to expenditures in

25 fiscal year 1997; or
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1 (bb) the State family assistance grant, multiplied by 1 2 ⁄365 of

3 the number of days during the

4 period that begins on October 1,

5 1996, or the date the Secretary

6 of Health and Human Services

7 first receives from the State a

8 plan described in section 402(a)

9 of the Social Security Act (as

10 added by the amendment made

11 by section 4103(a)(1) of this

12 Act), whichever is later, and ends

13 on September 30, 1997.

14 (iii) CHILD CARE OBLIGATIONS EX15 CLUDED IN DETERMINING FEDERAL AFDC

16 OBLIGATIONS.—As used in this subpara17 graph, the term ‘‘obligations of the Federal

18 Government to the State under part A of

19 title IV of the Social Security Act’’ does

20 not include any obligation of the Federal

21 Government with respect to child care ex22 penditures by the State.

23 (C) SUBMISSION OF STATE PLAN FOR FIS24 CAL YEAR 1996 OR 1997 DEEMED ACCEPTANCE

25 OF GRANT LIMITATIONS AND FORMULA AND
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1 TERMINATION OF AFDC ENTITLEMENT.—The

2 submission of a plan by a State pursuant to

3 subparagraph (A) is deemed to constitute—

4 (i) the State’s acceptance of the grant

5 reductions under subparagraph (B) (in6 cluding the formula for computing the

7 amount of the reduction); and

8 (ii) the termination of any entitlement

9 of any individual or family to benefits or

10 services under the State AFDC program.

11 (D) DEFINITIONS.—As used in this para12 graph:

13 (i) STATE AFDC PROGRAM.—The term

14 ‘‘State AFDC program’’ means the State

15 program under parts A and F of title IV

16 of the Social Security Act (as in effect on

17 September 30, 1995).

18 (ii) STATE.—The term ‘‘State’’ means

19 the 50 States and the District of Colum20 bia.

21 (iii) STATE FAMILY ASSISTANCE

22 GRANT.—The term ‘‘State family assist23 ance grant’’ means the State family assist24 ance grant (as defined in section

25 403(a)(1)(B) of the Social Security Act, as
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1 added by the amendment made by section

2 4103(a)(1) of this Act).

3 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—

4 The amendments made by this subtitle shall not

5 apply with respect to—

6 (A) powers, duties, functions, rights,

7 claims, penalties, or obligations applicable to

8 aid, assistance, or services provided before the

9 effective date of this subtitle under the provi10 sions amended; and

11 (B) administrative actions and proceedings

12 commenced before such date, or authorized be13 fore such date to be commenced, under such

14 provisions.

15 (3) CLOSING OUT ACCOUNT FOR THOSE PRO16 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED

17 BY THIS SUBTITLE.—In closing out accounts, Fed18 eral and State officials may use scientifically accept19 able statistical sampling techniques. Claims made

20 with respect to State expenditures under a State

21 plan approved under part A of title IV of the Social

22 Security Act (as in effect on September 30, 1995)

23 with respect to assistance or services provided on or

24 before September 30, 1995, shall be treated as

25 claims with respect to expenditures during fiscal
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1 year 1995 for purposes of reimbursement even if

2 payment was made by a State on or after October

3 1, 1995. Each State shall complete the filing of all

4 claims under the State plan (as so in effect) within

5 2 years after the date of the enactment of this Act.

6 The head of each Federal department shall—

7 (A) use the single audit procedure to re8 view and resolve any claims in connection with

9 the close out of programs under such State

10 plans; and

11 (B) reimburse States for any payments

12 made for assistance or services provided during

13 a prior fiscal year from funds for fiscal year

14 1995, rather than from funds authorized by

15 this subtitle.

16 (4) CONTINUANCE IN OFFICE OF ASSISTANT

17 SECRETARY FOR FAMILY SUPPORT.—The individual

18 who, on the day before the effective date of this sub19 title, is serving as Assistant Secretary for Family

20 Support within the Department of Health and

21 Human Services shall, until a successor is appointed

22 to such position—

23 (A) continue to serve in such position; and

24 (B) except as otherwise provided by law—
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1 (i) continue to perform the functions

2 of the Assistant Secretary for Family Sup3 port under section 417 of the Social Secu4 rity Act (as in effect before such effective

5 date); and

6 (ii) have the powers and duties of the

7 Assistant Secretary for Family Support

8 under section 416 of the Social Security

9 Act (as in effect pursuant to the amend10 ment made by section 4103(a)(1) of this

11 Act).

12 (c) TERMINATION OF ENTITLEMENT UNDER AFDC

13 PROGRAM.—Effective October 1, 1996, no individual or

14 family shall be entitled to any benefits or services under

15 any State plan approved under part A or F of title IV

16 of the Social Security Act (as in effect on September 30,

17 1995).

18 Subtitle B—Supplemental Security

19 Income

20 SEC. 4200. REFERENCE TO SOCIAL SECURITY ACT.

21 Except as otherwise specifically provided, wherever in

22 this subtitle an amendment is expressed in terms of an

23 amendment to or repeal of a section or other provision,

24 the reference shall be considered to be made to that sec25 tion or other provision of the Social Security Act.
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1 CHAPTER 1—ELIGIBILITY RESTRICTIONS

2 SEC. 4201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI3 VIDUALS FOUND TO HAVE FRAUDULENTLY

4 MISREPRESENTED RESIDENCE IN ORDER TO

5 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

6 MORE STATES.

7 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

8 1382(e)), as amended by section 105(b)(4) of the Contract

9 with America Advancement Act of 1996, is amended by

10 redesignating paragraph (5) as paragraph (3) and by add11 ing at the end the following new paragraph:

12 ‘‘(4)(A) No person shall be considered an eligible in13 dividual or eligible spouse for purposes of this title during

14 the 10-year period that begins on the date the person is

15 convicted in Federal or State court of having made a

16 fraudulent statement or representation with respect to the

17 place of residence of the person in order to receive assist18 ance simultaneously from 2 or more States under pro19 grams that are funded under title IV, title XIX, or the

20 Food Stamp Act of 1977, or benefits in 2 or more States

21 under the supplemental security income program under

22 this title.

23 ‘‘(B) As soon as practicable after the conviction of

24 a person in a Federal or State court as described in sub-
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1 paragraph (A), an official of such court shall notify the

2 Commissioner of such conviction.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 this section shall take effect on the date of the enactment

5 of this Act.

6 SEC. 4202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

7 AND PROBATION AND PAROLE VIOLATORS.

8 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

9 1382(e)), as amended by section 4201(a) of this Act, is

10 amended by adding at the end the following new para11 graph:

12 ‘‘(5) No person shall be considered an eligible individ13 ual or eligible spouse for purposes of this title with respect

14 to any month if during such month the person is—

15 ‘‘(A) fleeing to avoid prosecution, or custody or

16 confinement after conviction, under the laws of the

17 place from which the person flees, for a crime, or an

18 attempt to commit a crime, which is a felony under

19 the laws of the place from which the person flees, or

20 which, in the case of the State of New Jersey, is a

21 high misdemeanor under the laws of such State; or

22 ‘‘(B) violating a condition of probation or pa23 role imposed under Federal or State law.’’.

24 (b) EXCHANGE OF INFORMATION.—Section 1611(e)

25 (42 U.S.C. 1382(e)), as amended by section 4201(a) of
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1 this Act and subsection (a) of this section, is amended by

2 adding at the end the following new paragraph:

3 ‘‘(6) Notwithstanding any other provision of law

4 (other than section 6103 of the Internal Revenue Code

5 of 1986), the Commissioner shall furnish any Federal,

6 State, or local law enforcement officer, upon the written

7 request of the officer, with the current address, Social Se8 curity number, and photograph (if applicable) of any re9 cipient of benefits under this title, if the officer furnishes

10 the Commissioner with the name of the recipient, and

11 other identifying information as reasonably required by

12 the Commissioner to establish the unique identity of the

13 recipient, and notifies the Commissioner that—

14 ‘‘(A) the recipient—

15 ‘‘(i) is described in subparagraph (A) or

16 (B) of paragraph (5); or

17 ‘‘(ii) has information that is necessary for

18 the officer to conduct the officer’s official du19 ties; and

20 ‘‘(B) the location or apprehension of the recipi21 ent is within the officer’s official duties.’’.

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

23 this section shall take effect on the date of the enactment

24 of this Act.
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1 SEC. 4203. TREATMENT OF PRISONERS.

2 (a) IMPLEMENTATION OF PROHIBITION AGAINST

3 PAYMENT OF BENEFITS TO PRISONERS.—

4 (1) IN GENERAL.—Section 1611(e)(1) (42

5 U.S.C. 1382(e)(1)) is amended by adding at the end

6 the following new subparagraph:

7 ‘‘(I)(i) The Commissioner shall enter into an agree8 ment, with any interested State or local institution de9 scribed in clause (i) or (ii) of section 202(x)(1)(A) the pri10 mary purpose of which is to confine individuals as de11 scribed in section 202(x)(1)(A), under which—

12 ‘‘(I) the institution shall provide to the Com13 missioner, on a monthly basis and in a manner spec14 ified by the Commissioner, the names, social security

15 account numbers, dates of birth, confinement com16 mencement dates, and, to the extent available to the

17 institution, such other identifying information con18 cerning the inmates of the institution as the Com19 missioner may require for the purpose of carrying

20 out paragraph (1); and

21 ‘‘(II) the Commissioner shall pay to any such

22 institution, with respect to each inmate of the insti23 tution who is eligible for a benefit under this title for

24 the month preceding the first month throughout

25 which such inmate is in such institution and be26 comes ineligible for such benefit as a result of the
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1 application of this subparagraph, $400 if the institu2 tion furnishes the information described in subclause

3 (I) to the Commissioner within 30 days after the

4 date such individual becomes an inmate of such in5 stitution, or $200 if the institution furnishes such

6 information after 30 days after such date but within

7 90 days after such date.

8 ‘‘(ii)(I) The provisions of section 552a of title 5,

9 United States Code, shall not apply to any agreement en10 tered into under clause (i) or to information exchanged

11 pursuant to such agreement.

12 ‘‘(II) The Commissioner is authorized to provide, on

13 a reimbursable basis, information obtained pursuant to

14 agreements entered into under clause (i) to any Federal

15 or federally-assisted cash, food, or medical assistance pro16 gram for eligibility purposes.

17 ‘‘(iii) The dollar amounts specified in clause (i)(II)

18 shall be reduced by 50 percent if the Commissioner is also

19 required to make a payment to the institution with respect

20 to the same individual under an agreement entered into

21 under section 202(x)(3)(B).

22 ‘‘(iv) Payments to institutions required by clause

23 (i)(II) shall be made from funds otherwise available for

24 the payment of benefits under this title and shall be treat-
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1 ed as direct spending for purposes of the Balanced Budget

2 and Emergency Deficit Control Act of 1985.’’.

3 (2) CONFORMING OASDI AMENDMENTS.—Sec4 tion 202(x)(3) (42 U.S.C. 402(x)(3)) is amended—

5 (A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and

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

7 subparagraph:

8 ‘‘(B)(i) The Commissioner shall enter into an agree9 ment, with any interested State or local institution de10 scribed in clause (i) or (ii) of paragraph (1)(A) the pri11 mary purpose of which is to confine individuals as de12 scribed in paragraph (1)(A), under which—

13 ‘‘(I) the institution shall provide to the Com14 missioner, on a monthly basis and in a manner spec15 ified by the Commissioner, the names, social security

16 account numbers, dates of birth, confinement com17 mencement dates, and, to the extent available to the

18 institution, such other identifying information con19 cerning the individuals confined in the institution as

20 the Commissioner may require for the purpose of

21 carrying out paragraph (1); and

22 ‘‘(II) the Commissioner shall pay to any such

23 institution, with respect to each individual who is en24 titled to a benefit under this title for the month pre25 ceding the first month throughout which such indi-
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1 vidual is confined in such institution as described in

2 paragraph (1)(A), $400 if the institution furnishes

3 the information described in subclause (I) to the

4 Commissioner within 30 days after the date such in5 dividual’s confinement in such institution begins, or

6 $200 if the institution furnishes such information

7 after 30 days after such date but within 90 days

8 after such date.

9 ‘‘(ii)(I) The provisions of section 552a of title 5,

10 United States Code, shall not apply to any agreement en11 tered into under clause (i) or to information exchanged

12 pursuant to such agreement.

13 ‘‘(II) The Commissioner is authorized to provide, on

14 a reimbursable basis, information obtained pursuant to

15 agreements entered into under clause (i) to any Federal

16 or federally-assisted cash, food, or medical assistance pro17 gram for eligibility purposes.

18 ‘‘(iii) The dollar amounts specified in clause (i)(II)

19 shall be reduced by 50 percent if the Commissioner is also

20 required to make a payment to the institution with respect

21 to the same individual under an agreement entered into

22 under section 1611(e)(1)(I).

23 ‘‘(iv) There shall be transferred from the Federal

24 Old-Age and Survivors Insurance Trust Fund and the

25 Federal Disability Insurance Trust Fund, as appropriate,
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1 such sums as may be necessary to enable the Commis2 sioner to make payments to institutions required by clause

3 (i)(II). Sums so transferred shall be treated as direct

4 spending for purposes of the Balanced Budget and Emer5 gency Deficit Control Act of 1985 and excluded from

6 budget totals in accordance with section 13301 of the

7 Budget Enforcement Act of 1990.’’.

8 (3) EFFECTIVE DATE.—The amendments made

9 by this subsection shall apply to individuals whose

10 period of confinement in an institution commences

11 on or after the first day of the seventh month begin12 ning after the month in which this Act is enacted.

13 (b) ELIMINATION OF OASDI REQUIREMENT THAT

14 CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM15 PRISONMENT FOR MORE THAN 1 YEAR.—

16 (1) IN GENERAL.—Section 202(x)(1)(A) (42

17 U.S.C. 402(x)(1)(A)) is amended—

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

19 striking ‘‘during’’ and inserting ‘‘throughout’’;

20 (B) in clause (i), by striking ‘‘pursuant’’

21 and all that follows through ‘‘imposed)’’; and

22 (C) in clause (ii)(I), by striking ‘‘an of23 fense punishable by imprisonment for more

24 than 1 year’’ and inserting ‘‘a criminal of25 fense’’.
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1 (2) EFFECTIVE DATE.—The amendments made

2 by this subsection shall be effective with respect to

3 benefits payable for months beginning more than

4 180 days after the date of the enactment of this Act.

5 (c) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN

6 THE COLLECTION OF INFORMATION RESPECTING PUBLIC

7 INMATES.—

8 (1) STUDY.—The Commissioner of Social Secu9 rity shall conduct a study of the desirability, feasibil10 ity, and cost of—

11 (A) establishing a system under which

12 Federal, State, and local courts would furnish

13 to the Commissioner such information respect14 ing court orders by which individuals are con15 fined in jails, prisons, or other public penal,

16 correctional, or medical facilities as the Com17 missioner may require for the purpose of carry18 ing out sections 202(x) and 1611(e)(1) of the

19 Social Security Act; and

20 (B) requiring that State and local jails,

21 prisons, and other institutions that enter into

22 agreements with the Commissioner under sec23 tion 202(x)(3)(B) or 1611(e)(1)(I) of the Social

24 Security Act furnish the information required

25 by such agreements to the Commissioner by
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1 means of an electronic or other sophisticated

2 data exchange system.

3 (2) REPORT.—Not later than 1 year after the

4 date of the enactment of this Act, the Commissioner

5 of Social Security shall submit a report on the re6 sults of the study conducted pursuant to this sub7 section to the Committee on Finance of the Senate

8 and the Committee on Ways and Means of the

9 House of Representatives.

10 (d) ADDITIONAL REPORT TO CONGRESS.—Not later

11 than October 1, 1998, the Commissioner of Social Secu12 rity shall provide to the Committee on Finance of the Sen13 ate and the Committee on Ways and Means of the House

14 of Representatives a list of the institutions that are and

15 are not providing information to the Commissioner under

16 sections 202(x)(3)(B) and 1611(e)(1)(I) of the Social Se17 curity Act (as added by this section).

18 SEC. 4204. EFFECTIVE DATE OF APPLICATION FOR BENE19 FITS.

20 (a) IN GENERAL.—Subparagraphs (A) and (B) of

21 section 1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended

22 to read as follows:

23 ‘‘(A) the first day of the month following the

24 date such application is filed, or
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1 ‘‘(B) the first day of the month following the

2 date such individual becomes eligible for such bene3 fits with respect to such application.’’.

4 (b) SPECIAL RULE RELATING TO EMERGENCY AD5 VANCE PAYMENTS.—Section 1631(a)(4)(A) (42 U.S.C.

6 1383(a)(4)(A)) is amended—

7 (1) by inserting ‘‘for the month following the

8 date the application is filed’’ after ‘‘is presumptively

9 eligible for such benefits’’; and

10 (2) by inserting ‘‘, which shall be repaid

11 through proportionate reductions in such benefits

12 over a period of not more than 6 months’’ before the

13 semicolon.

14 (c) CONFORMING AMENDMENTS.—

15 (1) Section 1614(b) (42 U.S.C. 1382c(b)) is

16 amended by striking ‘‘at the time the application or

17 request is filed’’ and inserting ‘‘on the first day of

18 the month following the date the application or re19 quest is filed’’.

20 (2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3))

21 is amended by inserting ‘‘following the month’’ after

22 ‘‘beginning with the month’’.

23 (d) EFFECTIVE DATE.—

24 (1) IN GENERAL.—The amendments made by

25 this section shall apply to applications for benefits
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1 under title XVI of the Social Security Act filed on

2 or after the date of the enactment of this Act, with3 out regard to whether regulations have been issued

4 to implement such amendments.

5 (2) BENEFITS UNDER TITLE XVI.—For pur6 poses of this subsection, the term ‘‘benefits under

7 title XVI of the Social Security Act’’ includes sup8 plementary payments pursuant to an agreement for

9 Federal administration under section 1616(a) of the

10 Social Security Act, and payments pursuant to an

11 agreement entered into under section 212(b) of Pub12 lic Law 93–66.

13 CHAPTER 2—BENEFITS FOR DISABLED

14 CHILDREN

15 SEC. 4211. DEFINITION AND ELIGIBILITY RULES.

16 (a) DEFINITION OF CHILDHOOD DISABILITY.—Sec17 tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by

18 section 105(b)(1) of the Contract with America Advance19 ment Act of 1996, is amended—

20 (1) in subparagraph (A), by striking ‘‘An indi21 vidual’’ and inserting ‘‘Except as provided in sub22 paragraph (C), an individual’’;

23 (2) in subparagraph (A), by striking ‘‘(or, in

24 the case of an individual under the age of 18, if he
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1 suffers from any medically determinable physical or

2 mental impairment of comparable severity)’’;

3 (3) by redesignating subparagraphs (C) through

4 (I) as subparagraphs (D) through (J), respectively;

5 (4) by inserting after subparagraph (B) the fol6 lowing new subparagraph:

7 ‘‘(C)(i) An individual under the age of 18 shall be

8 considered disabled for the purposes of this title if that

9 individual has a medically determinable physical or mental

10 impairment, which results in marked and severe functional

11 limitations, and which can be expected to result in death

12 or which has lasted or can be expected to last for a contin13 uous period of not less than 12 months.

14 ‘‘(ii) The Commissioner shall ensure that the com15 bined effects of all physical or mental impairments of an

16 individual are taken into account in determining whether

17 an individual is disabled in accordance with clause (i).

18 ‘‘(iii) The Commissioner shall ensure that the regula19 tions prescribed under this subparagraph provide for the

20 evaluation of children who cannot be tested because of

21 their young age.

22 ‘‘(iv) Notwithstanding the preceding provisions of

23 this subparagraph, no individual under the age of 18 who

24 engages in substantial gainful activity (determined in ac-
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1 cordance with regulations prescribed pursuant to subpara2 graph (E)) may be considered to be disabled.’’; and

3 (5) in subparagraph (F), as redesignated by

4 paragraph (3), by striking ‘‘(D)’’ and inserting

5 ‘‘(E)’’.

6 (b) CHANGES TO CHILDHOOD SSI REGULATIONS.—

7 (1) MODIFICATION TO MEDICAL CRITERIA FOR

8 EVALUATION OF MENTAL AND EMOTIONAL DIS9 ORDERS.—The Commissioner of Social Security

10 shall modify sections 112.00C.2. and

11 112.02B.2.c.(2) of appendix 1 to subpart P of part

12 404 of title 20, Code of Federal Regulations, to

13 eliminate references to maladaptive behavior in the

14 domain of personal/behavorial function.

15 (2) DISCONTINUANCE OF INDIVIDUALIZED

16 FUNCTIONAL ASSESSMENT.—The Commissioner of

17 Social Security shall discontinue the individualized

18 functional assessment for children set forth in sec19 tions 416.924d and 416.924e of title 20, Code of

20 Federal Regulations.

21 (c) MEDICAL IMPROVEMENT REVIEW STANDARD AS

22 IT APPLIES TO INDIVIDUALS UNDER THE AGE OF 18.—

23 Section 1614(a)(4) (42 U.S.C. 1382(a)(4)) is amended—
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1 (1) by redesignating subclauses (I) and (II) of

2 clauses (i) and (ii) of subparagraph (B) as items

3 (aa) and (bb), respectively;

4 (2) by redesignating clauses (i) and (ii) of sub5 paragraphs (A) and (B) as subclauses (I) and (II),

6 respectively;

7 (3) by redesignating subparagraphs (A) through

8 (C) as clauses (i) through (iii), respectively;

9 (4) by inserting before clause (i) (as redesig10 nated by paragraph (3)) the following new subpara11 graph:

12 ‘‘(A) in the case of an individual who is age 18

13 or older—’’;

14 (5) by inserting after and below subparagraph

15 (A)(iii) (as so redesignated) the following new sub16 paragraph:

17 ‘‘(B) in the case of an individual who is under

18 the age of 18—

19 ‘‘(i) substantial evidence which dem20 onstrates that there has been medical improve21 ment in the individual’s impairment or com22 bination of impairments, and that such impair23 ment or combination of impairments no longer

24 results in marked and severe functional limita25 tions; or
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1 ‘‘(ii) substantial evidence which dem2 onstrates that, as determined on the basis of

3 new or improved diagnostic techniques or eval4 uations, the individual’s impairment or com5 bination of impairments, is not as disabling as

6 it was considered to be at the time of the most

7 recent prior decision that the individual was

8 under a disability or continued to be under a

9 disability, and such impairment or combination

10 of impairments does not result in marked and

11 severe functional limitations; or’’;

12 (6) by redesignating subparagraph (D) as sub13 paragraph (C) and by inserting in such subpara14 graph ‘‘in the case of any individual,’’ before ‘‘sub15 stantial evidence’’; and

16 (7) in the first sentence following subparagraph

17 (C) (as redesignated by paragraph (6)), by—

18 (A) inserting ‘‘(i)’’ before ‘‘to restore’’; and

19 (B) inserting ‘‘, or (ii) in the case of an in20 dividual under the age of 18, to eliminate or

21 improve the individual’s impairment or com22 bination of impairments so that it no longer re23 sults in marked and severe functional limita24 tions’’ immediately before the period.

25 (d) EFFECTIVE DATES, ETC.—
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1 (1) EFFECTIVE DATES.—

2 (A) SUBSECTIONS (a) AND (b).—

3 (i) IN GENERAL.—The provisions of,

4 and amendments made by, subsections (a)

5 and (b) shall apply to any individual who

6 applies for, or whose claim is finally adju7 dicated with respect to, benefits under title

8 XVI of the Social Security Act on or after

9 the date of the enactment of this Act,

10 without regard to whether regulations have

11 been issued to implement such provisions

12 and amendments.

13 (ii) DETERMINATION OF FINAL ADJU14 DICATION.—For purposes of clause (i), no

15 individual’s claim with respect to such ben16 efits may be considered to be finally adju17 dicated before such date of enactment if,

18 on or after such date, there is pending a

19 request for either administrative or judicial

20 review with respect to such claim that has

21 been denied in whole, or there is pending,

22 with respect to such claim, readjudication

23 by the Commissioner of Social Security

24 pursuant to relief in a class action or im-
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1 plementation by the Commissioner of a

2 court remand order.

3 (B) SUBSECTION (c).—The amendments

4 made by subsection (c) shall apply with respect

5 to benefits under title XVI of the Social Secu6 rity Act for months beginning on or after the

7 date of the enactment of this Act, without re8 gard to whether regulations have been issued to

9 implement such amendments.

10 (2) APPLICATION TO CURRENT RECIPIENTS.—

11 (A) ELIGIBILITY REDETERMINATIONS.—

12 During the period beginning on the date of the

13 enactment of this Act and ending on the date

14 which is 1 year after such date of enactment,

15 the Commissioner of Social Security shall rede16 termine the eligibility of any individual under

17 age 18 who is eligible for supplemental security

18 income benefits by reason of disability under

19 title XVI of the Social Security Act as of the

20 date of the enactment of this Act and whose

21 eligibility for such benefits may terminate by

22 reason of the provisions of, or amendments

23 made by, subsections (a) and (b). With respect

24 to any redetermination under this subpara25 graph—
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1 (i) section 1614(a)(4) of the Social

2 Security Act (42 U.S.C. 1382c(a)(4)) shall

3 not apply;

4 (ii) the Commissioner of Social Secu5 rity shall apply the eligibility criteria for

6 new applicants for benefits under title XVI

7 of such Act;

8 (iii) the Commissioner shall give such

9 redetermination priority over all continuing

10 eligibility reviews and other reviews under

11 such title; and

12 (iv) such redetermination shall be

13 counted as a review or redetermination

14 otherwise required to be made under sec15 tion 208 of the Social Security Independ16 ence and Program Improvements Act of

17 1994 or any other provision of title XVI of

18 the Social Security Act.

19 (B) GRANDFATHER PROVISION.—The pro20 visions of, and amendments made by, sub21 sections (a) and (b), and the redetermination

22 under subparagraph (A), shall only apply with

23 respect to the benefits of an individual de24 scribed in subparagraph (A) for months begin-
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1 ning on or after the date of the redetermination

2 with respect to such individual.

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 (3) REPORT.—The Commissioner of Social Se8 curity shall report to the Congress regarding the

9 progress made in implementing the provisions of,

10 and amendments made by, this section on child dis11 ability evaluations not later than 180 days after the

12 date of the enactment of this Act.

13 (4) REGULATIONS.—Notwithstanding any other

14 provision of law, the Commissioner of Social Secu15 rity shall submit for review to the committees of ju16 risdiction in the Congress any final regulation per17 taining to the eligibility of individuals under age 18

18 for benefits under title XVI of the Social Security

19 Act at least 45 days before the effective date of such

20 regulation. The submission under this paragraph

21 shall include supporting documentation providing a

22 cost analysis, workload impact, and projections as to

23 how the regulation will effect the future number of

24 recipients under such title.
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1 (5) BENEFITS UNDER TITLE XVI.—For pur2 poses of this subsection, the term ‘‘benefits under

3 title XVI of the Social Security Act’’ includes sup4 plementary payments pursuant to an agreement for

5 Federal administration under section 1616(a) of the

6 Social Security Act, and payments pursuant to an

7 agreement entered into under section 212(b) of Pub8 lic Law 93–66.

9 SEC. 4212. ELIGIBILITY REDETERMINATIONS AND CON10 TINUING DISABILITY REVIEWS.

11 (a) CONTINUING DISABILITY REVIEWS RELATING TO

12 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

13 1382c(a)(3)(H)), as redesignated by section 4211(a)(3) of

14 this Act, is amended—

15 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

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

17 clause:

18 ‘‘(ii)(I) Not less frequently than once every 3 years,

19 the Commissioner shall review in accordance with para20 graph (4) the continued eligibility for benefits under this

21 title of each individual who has not attained 18 years of

22 age and is eligible for such benefits by reason of an im23 pairment (or combination of impairments) which is likely

24 to improve (or, at the option of the Commissioner, which

25 is unlikely to improve).
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1 ‘‘(II) A representative payee of a recipient whose case

2 is reviewed under this clause shall present, at the time

3 of review, evidence demonstrating that the recipient is,

4 and has been, receiving treatment, to the extent consid5 ered medically necessary and available, of the condition

6 which was the basis for providing benefits under this title.

7 ‘‘(III) If the representative payee refuses to comply

8 without good cause with the requirements of subclause

9 (II), the Commissioner of Social Security shall, if the

10 Commissioner determines it is in the best interest of the

11 individual, promptly suspend payment of benefits to the

12 representative payee, and provide for payment of benefits

13 to an alternative representative payee of the individual or,

14 if the interest of the individual under this title would be

15 served thereby, to the individual.

16 ‘‘(IV) Subclause (II) shall not apply to the represent17 ative payee of any individual with respect to whom the

18 Commissioner determines such application would be inap19 propriate or unnecessary. In making such determination,

20 the Commissioner shall take into consideration the nature

21 of the individual’s impairment (or combination of impair22 ments). Section 1631(c) shall not apply to a finding by

23 the Commissioner that the requirements of subclause (II)

24 should not apply to an individual’s representative payee.’’.
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1 (b) DISABILITY ELIGIBILITY REDETERMINATIONS

2 REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS

3 OF AGE.—

4 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

5 U.S.C. 1382c(a)(3)(H)), as amended by subsection

6 (a) of this section, is amended by adding at the end

7 the following new clause:

8 ‘‘(iii) If an individual is eligible for benefits under this

9 title by reason of disability for the month preceding the

10 month in which the individual attains the age of 18 years,

11 the Commissioner shall redetermine such eligibility—

12 ‘‘(I) during the 1-year period beginning on the

13 individual’s 18th birthday; and

14 ‘‘(II) by applying the criteria used in determin15 ing the initial eligibility for applicants who are age

16 18 or older.

17 With respect to a redetermination under this clause, para18 graph (4) shall not apply and such redetermination shall

19 be considered a substitute for a review or redetermination

20 otherwise required under any other provision of this sub21 paragraph during that 1-year period.’’.

22 (2) CONFORMING REPEAL.—Section 207 of the

23 Social Security Independence and Program Improve24 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

25 1516) is hereby repealed.
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1 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

2 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)

3 (42 U.S.C. 1382c(a)(3)(H)), as amended by subsections

4 (a) and (b) of this section, is amended by adding at the

5 end the following new clause:

6 ‘‘(iv)(I) Not later than 12 months after the birth of

7 an individual, the Commissioner shall review in accordance

8 with paragraph (4) the continuing eligibility for benefits

9 under this title by reason of disability of such individual

10 whose low birth weight is a contributing factor material

11 to the Commissioner’s determination that the individual

12 is disabled.

13 ‘‘(II) A review under subclause (I) shall be considered

14 a substitute for a review otherwise required under any

15 other provision of this subparagraph during that 12-

16 month period.

17 ‘‘(III) A representative payee of a recipient whose

18 case is reviewed under this clause shall present, at the

19 time of review, evidence demonstrating that the recipient

20 is, and has been, receiving treatment, to the extent consid21 ered medically necessary and available, of the condition

22 which was the basis for providing benefits under this title.

23 ‘‘(IV) If the representative payee refuses to comply

24 without good cause with the requirements of subclause

25 (III), the Commissioner of Social Security shall, if the
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1 Commissioner determines it is in the best interest of the

2 individual, promptly suspend payment of benefits to the

3 representative payee, and provide for payment of benefits

4 to an alternative representative payee of the individual or,

5 if the interest of the individual under this title would be

6 served thereby, to the individual.

7 ‘‘(V) Subclause (III) shall not apply to the represent8 ative payee of any individual with respect to whom the

9 Commissioner determines such application would be inap10 propriate or unnecessary. In making such determination,

11 the Commissioner shall take into consideration the nature

12 of the individual’s impairment (or combination of impair13 ments). Section 1631(c) shall not apply to a finding by

14 the Commissioner that the requirements of subclause (III)

15 should not apply to an individual’s representative payee.’’.

16 (d) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to benefits for months beginning

18 on or after the date of the enactment of this Act, without

19 regard to whether regulations have been issued to imple20 ment such amendments.

21 SEC. 4213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

22 (a) DISPOSAL OF RESOURCES FOR LESS THAN FAIR

23 MARKET VALUE.—

24 (1) IN GENERAL.—Section 1613(c) (42 U.S.C.

25 1382b(c)) is amended to read as follows:
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1 ‘‘Disposal of Resources for Less Than Fair Market Value

2 ‘‘(c)(1)(A)(i) If an individual who has not attained

3 18 years of age (or any person acting on such individual’s

4 behalf) disposes of resources of the individual for less than

5 fair market value on or after the look-back date specified

6 in clause (ii)(I), the individual is ineligible for benefits

7 under this title for months during the period beginning

8 on the date specified in clause (iii) and equal to the num9 ber of months specified in clause (iv).

10 ‘‘(ii)(I) The look-back date specified in this subclause

11 is a date that is 36 months before the date specified in

12 subclause (II).

13 ‘‘(II) The date specified in this subclause is the date

14 on which the individual applies for benefits under this title

15 or, if later, the date on which the disposal of the individ16 ual’s resources for less than fair market value occurs.

17 ‘‘(iii) The date specified in this clause is the first day

18 of the first month that follows the month in which the

19 individual’s resources were disposed of for less than fair

20 market value and that does not occur in any other period

21 of ineligibility under this paragraph.

22 ‘‘(iv) The number of months of ineligibility under this

23 clause for an individual shall be equal to—

24 ‘‘(I) the total, cumulative uncompensated value

25 of all the individual’s resources so disposed of on or
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1 after the look-back date specified in clause (ii)(I), di2 vided by

3 ‘‘(II) the amount of the maximum monthly ben4 efit payable under section 1611(b) to an eligible in5 dividual for the month in which the date specified in

6 clause (ii)(II) occurs.

7 ‘‘(B) An individual shall not be ineligible for benefits

8 under this title by reason of subparagraph (A) if the Com9 missioner determines that—

10 ‘‘(i) the individual intended to dispose of the re11 sources at fair market value;

12 ‘‘(ii) the resources were transferred exclusively

13 for a purpose other than to qualify for benefits

14 under this title;

15 ‘‘(iii) all resources transferred for less than fair

16 market value have been returned to the individual;

17 or

18 ‘‘(iv) the denial of eligibility would work an

19 undue hardship on the individual (as determined on

20 the basis of criteria established by the Commissioner

21 in regulations).

22 ‘‘(C) For purposes of this paragraph, in the case of

23 a resource held by an individual in common with another

24 person or persons in a joint tenancy, tenancy in common,

25 or similar arrangement, the resource (or the affected por-
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1 tion of such resource) shall be considered to be disposed

2 of by such individual when any action is taken, either by

3 such individual or by any other person, that reduces or

4 eliminates such individual’s ownership or control of such

5 resource.

6 ‘‘(D)(i) Notwithstanding subparagraph (A), this sub7 section shall not apply to a transfer of a resource to a

8 trust if the portion of the trust attributable to such re9 source is considered a resource available to the individual

10 pursuant to subsection (e)(3) (or would be so considered,

11 but for the application of subsection (e)(4)).

12 ‘‘(ii) In the case of a trust established by an individ13 ual (within the meaning of subsection (e)(2)(A)), if from

14 such portion of the trust (if any) that is considered a re15 source available to the individual pursuant to subsection

16 (e)(3) (or would be so considered but for the application

17 of subsection (e)(2)) or the residue of such portion upon

18 the termination of the trust—

19 ‘‘(I) there is made a payment other than to or

20 for the benefit of the individual, or

21 ‘‘(II) no payment could under any circumstance

22 be made to the individual,

23 then the payment described in subclause (I) or the fore24 closure of payment described in subclause (II) shall be

25 considered a disposal of resources by the individual subject
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1 to this subsection, as of the date of such payment or fore2 closure, respectively.

3 ‘‘(2)(A) At the time an individual (and the individ4 ual’s eligible spouse, if any) applies for benefits under this

5 title, and at the time the eligibility of an individual (and

6 such spouse, if any) for such benefits is redetermined, the

7 Commissioner of Social Security shall—

8 ‘‘(i) inform such individual of the provisions of

9 paragraph (1) providing for a period of ineligibility

10 for benefits under this title for individuals who make

11 certain dispositions of resources for less than fair

12 market value, and inform such individual that infor13 mation obtained pursuant to clause (ii) will be made

14 available to the State agency administering a State

15 plan approved under title XIX (as provided in sub16 paragraph (B)); and

17 ‘‘(ii) obtain from such individual information

18 which may be used in determining whether or not a

19 period of ineligibility for such benefits would be re20 quired by reason of paragraph (1).

21 ‘‘(B) The Commissioner of Social Security shall make

22 the information obtained under subparagraph (A)(ii)

23 available, on request, to any State agency administering

24 a State plan approved under title XIX.

25 ‘‘(3) For purposes of this subsection—
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1 ‘‘(A) the term ‘trust’ includes any legal instru2 ment or device that is similar to a trust; and

3 ‘‘(B) the term ‘benefits under this title’ includes

4 supplementary payments pursuant to an agreement

5 for Federal administration under section 1616(a),

6 and payments pursuant to an agreement entered

7 into under section 212(b) of Public Law 93–66.’’.

8 (2) EFFECTIVE DATE.—The amendment made

9 by this subsection shall be effective with respect to

10 transfers that occur at least 90 days after the date

11 of the enactment of this Act.

12 (b) TREATMENT OF ASSETS HELD IN TRUST.—

13 (1) TREATMENT AS RESOURCE.—Section 1613

14 (42 U.S.C. 1382) is amended by adding at the end

15 the following new subsection:

16 ‘‘Trusts

17 ‘‘(e)(1) In determining the resources of an individual

18 who has not attained 18 years of age, the provisions of

19 paragraph (3) shall apply to a trust established by such

20 individual.

21 ‘‘(2)(A) For purposes of this subsection, an individual

22 shall be considered to have established a trust if any assets

23 of the individual were transferred to the trust.

24 ‘‘(B) In the case of an irrevocable trust to which the

25 assets of an individual and the assets of any other person
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1 or persons were transferred, the provisions of this sub2 section shall apply to the portion of the trust attributable

3 to the assets of the individual.

4 ‘‘(C) This subsection shall apply without regard to—

5 ‘‘(i) the purposes for which the trust is estab6 lished;

7 ‘‘(ii) whether the trustees have or exercise any

8 discretion under the trust;

9 ‘‘(iii) any restrictions on when or whether dis10 tributions may be made from the trust; or

11 ‘‘(iv) any restrictions on the use of distributions

12 from the trust.

13 ‘‘(3)(A) In the case of a revocable trust, the corpus

14 of the trust shall be considered a resource available to the

15 individual.

16 ‘‘(B) In the case of an irrevocable trust, if there are

17 any circumstances under which payment from the trust

18 could be made to or for the benefit of the individual, the

19 portion of the corpus from which payment to or for the

20 benefit of the individual could be made shall be considered

21 a resource available to the individual.

22 ‘‘(4) The Commissioner may waive the application of

23 this subsection with respect to any individual if the Com24 missioner determines, on the basis of criteria prescribed
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1 in regulations, that such application would work an undue

2 hardship on such individual.

3 ‘‘(5) For purposes of this subsection—

4 ‘‘(A) the term ‘trust’ includes any legal instru5 ment or device that is similar to a trust;

6 ‘‘(B) the term ‘corpus’ means all property and

7 other interests held by the trust, including accumu8 lated earnings and any other addition to such trust

9 after its establishment (except that such term does

10 not include any such earnings or addition in the

11 month in which such earnings or addition is credited

12 or otherwise transferred to the trust);

13 ‘‘(C) the term ‘asset’ includes any income or re14 source of the individual, including—

15 ‘‘(i) any income otherwise excluded by sec16 tion 1612(b);

17 ‘‘(ii) any resource otherwise excluded by

18 this section; and

19 ‘‘(iii) any other payment or property that

20 the individual is entitled to but does not receive

21 or have access to because of action by—

22 ‘‘(I) such individual;

23 ‘‘(II) a person or entity (including a

24 court) with legal authority to act in place

25 of, or on behalf of, such individual; or
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1 ‘‘(III) a person or entity (including a

2 court) acting at the direction of, or upon

3 the request of, such individual; and

4 ‘‘(D) the term ‘benefits under this title’ in5 cludes supplementary payments pursuant to an

6 agreement for Federal administration under section

7 1616(a), and payments pursuant to an agreement

8 entered into under section 212(b) of Public Law 93–

9 66.’’.

10 (2) TREATMENT AS INCOME.—Section

11 1612(a)(2) (42 U.S.C. 1382a(a)(2)) is amended—

12 (A) by striking ‘‘and’’ at the end of sub13 paragraph (E);

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

15 subparagraph (F) and inserting ‘‘; and’’; and

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

17 subparagraph:

18 ‘‘(G) any earnings of, and additions to, the

19 corpus of a trust (as defined in section 1613(f))

20 established by an individual (within the mean21 ing of section 1613(e)(2)(A)) and of which such

22 individual is a beneficiary (other than a trust to

23 which section 1613(e)(4) applies), except that

24 in the case of an irrevocable trust, there shall

25 exist circumstances under which payment from
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1 such earnings or additions could be made to, or

2 for the benefit of, such individual.’’.

3 (3) EFFECTIVE DATE.—The amendments made

4 by this subsection shall take effect on the date which

5 is 90 days after the date of the enactment of this

6 Act, and shall apply to trusts established on or after

7 such date.

8 (c) REQUIREMENT TO ESTABLISH ACCOUNT.—

9 (1) IN GENERAL.—Section 1631(a)(2) (42

10 U.S.C. 1383(a)(2)) is amended—

11 (A) by redesignating subparagraphs (F)

12 and (G) as subparagraphs (G) and (H), respec13 tively; and

14 (B) by inserting after subparagraph (E)

15 the following new subparagraph:

16 ‘‘(F)(i)(I) Each representative payee of an eligible in17 dividual under the age of 18 who is eligible for the pay18 ment of benefits described in subclause (II) shall establish

19 on behalf of such individual an account in a financial insti20 tution into which such benefits shall be paid, and shall

21 thereafter maintain such account for use in accordance

22 with clause (ii).

23 ‘‘(II) Benefits described in this subclause are past24 due monthly benefits under this title (which, for purposes

25 of this subclause, include State supplementary payments
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1 made by the Commissioner pursuant to an agreement

2 under section 1616 or section 212(b) of Public Law 93–

3 66) in an amount (after any withholding by the Commis4 sioner for reimbursement to a State for interim assistance

5 under subsection (g)) that exceeds the product of—

6 ‘‘(aa) 6, and

7 ‘‘(bb) the maximum monthly benefit payable

8 under this title to an eligible individual.

9 ‘‘(ii)(I) A representative payee shall use funds in the

10 account established under clause (i) to pay for allowable

11 expenses described in subclause (II).

12 ‘‘(II) An allowable expense described in this subclause

13 is an expense for—

14 ‘‘(aa) education or job skills training;

15 ‘‘(bb) personal needs assistance;

16 ‘‘(cc) special equipment;

17 ‘‘(dd) housing modification;

18 ‘‘(ee) medical treatment;

19 ‘‘(ff) therapy or rehabilitation; or

20 ‘‘(gg) any other item or service that the Com21 missioner determines to be appropriate;

22 provided that such expense benefits such individual and,

23 in the case of an expense described in item (bb), (cc), (dd),

24 (ff), or (gg), is related to the impairment (or combination

25 of impairments) of such individual.
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1 ‘‘(III) The use of funds from an account established

2 under clause (i) in any manner not authorized by this

3 clause—

4 ‘‘(aa) by a representative payee shall be consid5 ered a misapplication of benefits for all purposes of

6 this paragraph, and any representative payee who

7 knowingly misapplies benefits from such an account

8 shall be liable to the Commissioner in an amount

9 equal to the total amount of such benefits; and

10 ‘‘(bb) by an eligible individual who is his or her

11 own payee shall be considered a misapplication of

12 benefits for all purposes of this paragraph and the

13 total amount of such benefits so used shall be con14 sidered to be the uncompensated value of a disposed

15 resource and shall be subject to the provisions of

16 section 1613(c).

17 ‘‘(IV) This clause shall continue to apply to funds in

18 the account after the child has reached age 18, regardless

19 of whether benefits are paid directly to the beneficiary or

20 through a representative payee.

21 ‘‘(iii) The representative payee may deposit into the

22 account established pursuant to clause (i)—

23 ‘‘(I) past-due benefits payable to the eligible in24 dividual in an amount less than that specified in

25 clause (i)(II), and
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1 ‘‘(II) any other funds representing an under2 payment under this title to such individual, provided

3 that the amount of such underpayment is equal to

4 or exceeds the maximum monthly benefit payable

5 under this title to an eligible individual.

6 ‘‘(iv) The Commissioner of Social Security shall es7 tablish a system for accountability monitoring whereby

8 such representative payee shall report, at such time and

9 in such manner as the Commissioner shall require, on ac10 tivity respecting funds in the account established pursuant

11 to clause (i).’’.

12 (2) EXCLUSION FROM RESOURCES.—Section

13 1613(a) (42 U.S.C. 1382b(a)) is amended—

14 (A) by striking ‘‘and’’ at the end of para15 graph (10);

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

17 paragraph (11) and inserting ‘‘; and’’; and

18 (C) by inserting after paragraph (11) the

19 following new paragraph:

20 ‘‘(12) any account, including accrued interest or

21 other earnings thereon, established and maintained

22 in accordance with section 1631(a)(2)(F).’’.

23 (3) EXCLUSION FROM INCOME.—Section

24 1612(b) (42 U.S.C. 1382a(b)) is amended—
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1 (A) by striking ‘‘and’’ at the end of para2 graph (19);

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

4 paragraph (20) and inserting ‘‘; and’’; and

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

6 paragraph:

7 ‘‘(21) the interest or other earnings on any ac8 count established and maintained in accordance with

9 section 1631(a)(2)(F).’’.

10 (4) EFFECTIVE DATE.—The amendments made

11 by this subsection shall apply to payments made

12 after the date of the enactment of this Act.

13 SEC. 4214. REDUCTION IN CASH BENEFITS PAYABLE TO IN14 STITUTIONALIZED INDIVIDUALS WHOSE MED15 ICAL COSTS ARE COVERED BY PRIVATE IN16 SURANCE.

17 (a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.

18 1382(e)(1)(B)) is amended—

19 (1) by striking ‘‘title XIX, or’’ and inserting

20 ‘‘title XIX,’’; and

21 (2) by inserting ‘‘or, in the case of an eligible

22 individual under the age of 18, receiving payments

23 (with respect to such individual) under any health

24 insurance policy issued by a private provider of such

25 insurance’’ after ‘‘section 1614(f)(2)(B),’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply to benefits for months beginning

3 90 or more days after the date of the enactment of this

4 Act, without regard to whether regulations have been is5 sued to implement such amendments.

6 SEC. 4215. REGULATIONS.

7 Within 3 months after the date of the enactment of

8 this Act, the Commissioner of Social Security shall pre9 scribe such regulations as may be necessary to implement

10 the amendments made by this chapter.

11 CHAPTER 3—ADDITIONAL ENFORCEMENT

12 PROVISIONS

13 SEC. 4221. INSTALLMENT PAYMENT OF LARGE PAST-DUE

14 SUPPLEMENTAL SECURITY INCOME BENE15 FITS.

16 (a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383)

17 is amended by adding at the end the following new para18 graph:

19 ‘‘(10)(A) If an individual is eligible for past-due

20 monthly benefits under this title in an amount that (after

21 any withholding for reimbursement to a State for interim

22 assistance under subsection (g)) equals or exceeds the

23 product of—

24 ‘‘(i) 12, and
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1 ‘‘(ii) the maximum monthly benefit payable

2 under this title to an eligible individual (or, if appro3 priate, to an eligible individual and eligible spouse),

4 then the payment of such past-due benefits (after any such

5 reimbursement to a State) shall be made in installments

6 as provided in subparagraph (B).

7 ‘‘(B)(i) The payment of past-due benefits subject to

8 this subparagraph shall be made in not to exceed 3 install9 ments that are made at 6-month intervals.

10 ‘‘(ii) Except as provided in clause (iii), the amount

11 of each of the first and second installments may not exceed

12 an amount equal to the product of clauses (i) and (ii) of

13 subparagraph (A).

14 ‘‘(iii) In the case of an individual who has—

15 ‘‘(I) outstanding debt attributable to—

16 ‘‘(aa) food,

17 ‘‘(bb) clothing,

18 ‘‘(cc) shelter, or

19 ‘‘(dd) medically necessary services, supplies

20 or equipment, or medicine; or

21 ‘‘(II) current expenses or expenses anticipated

22 in the near term attributable to—

23 ‘‘(aa) medically necessary services, supplies

24 or equipment, or medicine, or

25 ‘‘(bb) the purchase of a home, and
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1 such debt or expenses are not subject to reimbursement

2 by a public assistance program, the Secretary under title

3 XVIII, a State plan approved under title XIX, or any pri4 vate entity legally liable to provide payment pursuant to

5 an insurance policy, pre-paid plan, or other arrangement,

6 the limitation specified in clause (ii) may be exceeded by

7 an amount equal to the total of such debt and expenses.

8 ‘‘(C) This paragraph shall not apply to any individual

9 who, at the time of the Commissioner’s determination that

10 such individual is eligible for the payment of past-due

11 monthly benefits under this title—

12 ‘‘(i) is afflicted with a medically determinable

13 impairment that is expected to result in death within

14 12 months; or

15 ‘‘(ii) is ineligible for benefits under this title

16 and the Commissioner determines that such individ17 ual is likely to remain ineligible for the next 12

18 months.

19 ‘‘(D) For purposes of this paragraph, the term ‘bene20 fits under this title’ includes supplementary payments pur21 suant to an agreement for Federal administration under

22 section 1616(a), and payments pursuant to an agreement

23 entered into under section 212(b) of Public Law 93–66.’’.

24 (b) CONFORMING AMENDMENT.—Section 1631(a)(1)

25 (42 U.S.C. 1383(a)(1)) is amended by inserting ‘‘(subject
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1 to paragraph (10))’’ immediately before ‘‘in such install2 ments’’.

3 (c) EFFECTIVE DATE.—

4 (1) IN GENERAL.—The amendments made by

5 this section are effective with respect to past-due

6 benefits payable under title XVI of the Social Secu7 rity Act after the third month following the month

8 in which this Act is enacted.

9 (2) BENEFITS PAYABLE UNDER TITLE XVI.—

10 For purposes of this subsection, the term ‘‘benefits

11 payable under title XVI of the Social Security Act’’

12 includes supplementary payments pursuant to an

13 agreement for Federal administration under section

14 1616(a) of the Social Security Act, and payments

15 pursuant to an agreement entered into under section

16 212(b) of Public Law 93–66.

17 SEC. 4222. RECOVERY OF SUPPLEMENTAL SECURITY IN18 COME OVERPAYMENTS FROM SOCIAL SECU19 RITY BENEFITS.

20 (a) IN GENERAL.—Part A of title XI is amended by

21 adding at the end the following new section:

22 ‘‘RECOVERY OF SSI OVERPAYMENTS FROM SOCIAL

23 SECURITY BENEFITS

24 ‘‘SEC. 1146. (a) IN GENERAL.—Whenever the Com25 missioner of Social Security determines that more than

26 the correct amount of any payment has been made to any
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1 person under the supplemental security income program

2 authorized by title XVI, and the Commissioner is unable

3 to make proper adjustment or recovery of the amount so

4 incorrectly paid as provided in section 1631(b), the Com5 missioner (notwithstanding section 207) may recover the

6 amount incorrectly paid by decreasing any amount which

7 is payable under the Federal Old-Age and Survivors Insur8 ance program or the Federal Disability Insurance pro9 gram authorized by title II to that person or that person’s

10 estate.

11 ‘‘(b) NO EFFECT ON SSI BENEFIT ELIGIBILITY OR

12 AMOUNT.—Notwithstanding subsections (a) and (b) of

13 section 1611, in any case in which the Commissioner takes

14 action in accordance with subsection (a) to recover an

15 overpayment from any person, neither that person, nor

16 any individual whose eligibility or benefit amount is deter17 mined by considering any part of that person’s income,

18 shall, as a result of such action—

19 ‘‘(1) become eligible under the program of sup20 plemental security income benefits under title XVI,

21 or

22 ‘‘(2) if such person or individual is already so

23 eligible, become eligible for increased benefits there24 under.
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1 ‘‘(c) PROGRAM UNDER TITLE XVI.—For purposes of

2 this section, the term ‘supplemental security income pro3 gram authorized by title XVI’ includes supplementary pay4 ments pursuant to an agreement for Federal administra5 tion under section 1616(a), and payments pursuant to an

6 agreement entered into under section 212(b) of Public

7 Law 93–66.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Section 204 (42 U.S.C. 404) is amended by

10 adding at the end the following new subsection:

11 ‘‘(g) For payments which are adjusted or withheld

12 to recover an overpayment of supplemental security in13 come benefits paid under title XVI (including State sup14 plementary payments which were paid under an agreement

15 pursuant to section 1616(a) or section 212(b) of Public

16 Law 93-66), see section 1146.’’.

17 (2) Section 1631(b) is amended by adding at

18 the end the following new paragraph:

19 ‘‘(5) For the recovery of overpayments of benefits

20 under this title from benefits payable under title II, see

21 section 1146.’’.

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

23 this section shall take effect on the date of the enactment

24 of this Act and shall apply to overpayments outstanding

25 on or after such date.
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1 SEC. 4223. REGULATIONS.

2 Within 3 months after the date of the enactment of

3 this Act, the Commissioner of Social Security shall pre4 scribe such regulations as may be necessary to implement

5 the amendments made by this chapter.

6 CHAPTER 4—STATE SUPPLEMENTATION

7 PROGRAMS

8 SEC. 4225. REPEAL OF MAINTENANCE OF EFFORT RE9 QUIREMENTS APPLICABLE TO OPTIONAL

10 STATE PROGRAMS FOR SUPPLEMENTATION

11 OF SSI BENEFITS.

12 Section 1618 (42 U.S.C. 1382g) is hereby repealed.

13 CHAPTER 5—STUDIES REGARDING SUP14 PLEMENTAL SECURITY INCOME PRO15 GRAM

16 SEC. 4231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU17 RITY INCOME PROGRAM.

18 Title XVI (42 U.S.C. 1381 et seq.), as amended by

19 section 4201(c) of this Act, is amended by adding at the

20 end the following new section:

21 ‘‘ANNUAL REPORT ON PROGRAM

22 ‘‘SEC. 1637. (a) Not later than May 30 of each year,

23 the Commissioner of Social Security shall prepare and de24 liver a report annually to the President and the Congress

25 regarding the program under this title, including—
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1 ‘‘(1) a comprehensive description of the pro2 gram;

3 ‘‘(2) historical and current data on allowances

4 and denials, including number of applications and

5 allowance rates for initial determinations, reconsid6 eration determinations, administrative law judge

7 hearings, appeals council reviews, and Federal court

8 decisions;

9 ‘‘(3) historical and current data on characteris10 tics of recipients and program costs, by recipient

11 group (aged, blind, disabled adults, and disabled

12 children);

13 ‘‘(4) projections of future number of recipients

14 and program costs, through at least 25 years;

15 ‘‘(5) number of redeterminations and continu16 ing disability reviews, and the outcomes of such re17 determinations and reviews;

18 ‘‘(6) data on the utilization of work incentives;

19 ‘‘(7) detailed information on administrative and

20 other program operation costs;

21 ‘‘(8) summaries of relevant research undertaken

22 by the Social Security Administration, or by other

23 researchers;

24 ‘‘(9) State supplementation program operations;
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1 ‘‘(10) a historical summary of statutory

2 changes to this title; and

3 ‘‘(11) such other information as the Commis4 sioner deems useful.

5 ‘‘(b) Each member of the Social Security Advisory

6 Board shall be permitted to provide an individual report,

7 or a joint report if agreed, of views of the program under

8 this title, to be included in the annual report required

9 under this section.’’.

10 SEC. 4232. STUDY OF DISABILITY DETERMINATION PROC11 ESS.

12 (a) IN GENERAL.—Not later than 90 days after the

13 date of the enactment of this Act, and from funds other14 wise appropriated, the Commissioner of Social Security

15 shall make arrangements with the National Academy of

16 Sciences, or other independent entity, to conduct a study

17 of the disability determination process under titles II and

18 XVI of the Social Security Act. This study shall be under19 taken in consultation with professionals representing ap20 propriate disciplines.

21 (b) STUDY COMPONENTS.—The study described in

22 subsection (a) shall include—

23 (1) an initial phase examining the appropriate24 ness of, and making recommendations regarding—
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1 (A) the definitions of disability in effect on

2 the date of the enactment of this Act and the

3 advantages and disadvantages of alternative

4 definitions; and

5 (B) the operation of the disability deter6 mination process, including the appropriate

7 method of performing comprehensive assess8 ments of individuals under age 18 with physical

9 and mental impairments;

10 (2) a second phase, which may be concurrent

11 with the initial phase, examining the validity, reli12 ability, and consistency with current scientific knowl13 edge of the standards and individual listings in the

14 Listing of Impairments set forth in appendix 1 of

15 subpart P of part 404 of title 20, Code of Federal

16 Regulations, and of related evaluation procedures as

17 promulgated by the Commissioner of Social Security;

18 and

19 (3) such other issues as the applicable entity

20 considers appropriate.

21 (c) REPORTS AND REGULATIONS.—

22 (1) REPORTS.—The Commissioner of Social Se23 curity shall request the applicable entity, to submit

24 an interim report and a final report of the findings

25 and recommendations resulting from the study de-
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1 scribed in this section to the President and the Con2 gress not later than 18 months and 24 months, re3 spectively, from the date of the contract for such

4 study, and such additional reports as the Commis5 sioner deems appropriate after consultation with the

6 applicable entity.

7 (2) REGULATIONS.—The Commissioner of So8 cial Security shall review both the interim and final

9 reports, and shall issue regulations implementing

10 any necessary changes following each report.

11 SEC. 4233. STUDY BY GENERAL ACCOUNTING OFFICE.

12 Not later than January 1, 1999, the Comptroller

13 General of the United States shall study and report on—

14 (1) the impact of the amendments made by,

15 and the provisions of, this subtitle on the supple16 mental security income program under title XVI of

17 the Social Security Act; and

18 (2) extra expenses incurred by families of chil19 dren receiving benefits under such title that are not

20 covered by other Federal, State, or local programs.
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1 CHAPTER 6—NATIONAL COMMISSION ON

2 THE FUTURE OF DISABILITY

3 SEC. 4241. ESTABLISHMENT.

4 There is established a commission to be known as the

5 National Commission on the Future of Disability (referred

6 to in this chapter as the ‘‘Commission’’).

7 SEC. 4242. DUTIES OF THE COMMISSION.

8 (a) IN GENERAL.—The Commission shall develop

9 and carry out a comprehensive study of all matters related

10 to the nature, purpose, and adequacy of all Federal pro11 grams serving individuals with disabilities. In particular,

12 the Commission shall study the disability insurance pro13 gram under title II of the Social Security Act and the sup14 plemental security income disability program under title

15 XVI of such Act.

16 (b) MATTERS STUDIED.—The Commission shall pre17 pare an inventory of Federal programs serving individuals

18 with disabilities, and shall examine—

19 (1) trends and projections regarding the size

20 and characteristics of the population of individuals

21 with disabilities, and the implications of such analy22 ses for program planning;

23 (2) the feasibility and design of performance

24 standards for the Nation’s disability programs;
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1 (3) the adequacy of Federal efforts in rehabili2 tation research and training, and opportunities to

3 improve the lives of individuals with disabilities

4 through all manners of scientific and engineering re5 search; and

6 (4) the adequacy of policy research available to

7 the Federal Government, and what actions might be

8 undertaken to improve the quality and scope of such

9 research.

10 (c) RECOMMENDATIONS.—The Commission shall

11 submit to the appropriate committees of the Congress and

12 to the President recommendations and, as appropriate,

13 proposals for legislation, regarding—

14 (1) which (if any) Federal disability programs

15 should be eliminated or augmented;

16 (2) what new Federal disability programs (if

17 any) should be established;

18 (3) the suitability of the organization and loca19 tion of disability programs within the Federal Gov20 ernment;

21 (4) other actions the Federal Government

22 should take to prevent disabilities and disadvantages

23 associated with disabilities; and

24 (5) such other matters as the Commission con25 siders appropriate.
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1 SEC. 4243. MEMBERSHIP.

2 (a) NUMBER AND APPOINTMENT.—

3 (1) IN GENERAL.—The Commission shall be

4 composed of 15 members, of whom—

5 (A) five shall be appointed by the Presi6 dent, of whom not more than 3 shall be of the

7 same major political party;

8 (B) three shall be appointed by the Major9 ity Leader of the Senate;

10 (C) two shall be appointed by the Minority

11 Leader of the Senate;

12 (D) three shall be appointed by the Speak13 er of the House of Representatives; and

14 (E) two shall be appointed by the Minority

15 Leader of the House of Representatives.

16 (2) REPRESENTATION.—The Commission mem17 bers shall be chosen based on their education, train18 ing, or experience. In appointing individuals as

19 members of the Commission, the President and the

20 Majority and Minority Leaders of the Senate and

21 the Speaker and Minority Leader of the House of

22 Representatives shall seek to ensure that the mem23 bership of the Commission reflects the general inter24 ests of the business and taxpaying community and

25 the diversity of individuals with disabilities in the

26 United States.
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1 (b) COMPTROLLER GENERAL.—The Comptroller

2 General of the United States shall advise the Commission

3 on the methodology and approach of the study of the Com4 mission.

5 (c) TERM OF APPOINTMENT.—The members shall

6 serve on the Commission for the life of the Commission.

7 (d) MEETINGS.—The Commission shall locate its

8 headquarters in the District of Columbia, and shall meet

9 at the call of the Chairperson, but not less than 4 times

10 each year during the life of the Commission.

11 (e) QUORUM.—Ten members of the Commission shall

12 constitute a quorum, but a lesser number may hold hear13 ings.

14 (f) CHAIRPERSON AND VICE CHAIRPERSON.—Not

15 later than 15 days after the members of the Commission

16 are appointed, such members shall designate a Chair17 person and Vice Chairperson from among the members of

18 the Commission.

19 (g) CONTINUATION OF MEMBERSHIP.—If a member

20 of the Commission becomes an officer or employee of any

21 government after appointment to the Commission, the in22 dividual may continue as a member until a successor mem23 ber is appointed.

24 (h) VACANCIES.—A vacancy on the Commission shall

25 be filled in the manner in which the original appointment
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1 was made not later than 30 days after the Commission

2 is given notice of the vacancy.

3 (i) COMPENSATION.—Members of the Commission

4 shall receive no additional pay, allowances, or benefits by

5 reason of their service on the Commission.

6 (j) TRAVEL EXPENSES.—Each member of the Com7 mission shall receive travel expenses, including per diem

8 in lieu of subsistence, in accordance with sections 5702

9 and 5703 of title 5, United States Code.

10 SEC. 4244. STAFF AND SUPPORT SERVICES.

11 (a) DIRECTOR.—

12 (1) APPOINTMENT.—Upon consultation with

13 the members of the Commission, the Chairperson

14 shall appoint a Director of the Commission.

15 (2) COMPENSATION.—The Director shall be

16 paid the rate of basic pay for level V of the Execu17 tive Schedule.

18 (b) STAFF.—With the approval of the Commission,

19 the Director may appoint such personnel as the Director

20 considers appropriate.

21 (c) APPLICABILITY OF CIVIL SERVICE LAWS.—The

22 staff of the Commission shall be appointed without regard

23 to the provisions of title 5, United States Code, governing

24 appointments in the competitive service, and shall be paid

25 without regard to the provisions of chapter 51 and sub-
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1 chapter III of chapter 53 of such title relating to classi2 fication and General Schedule pay rates.

3 (d) EXPERTS AND CONSULTANTS.—With the ap4 proval of the Commission, the Director may procure tem5 porary and intermittent services under section 3109(b) of

6 title 5, United States Code.

7 (e) STAFF OF FEDERAL AGENCIES.—Upon the re8 quest of the Commission, the head of any Federal agency

9 may detail, on a reimbursable basis, any of the personnel

10 of such agency to the Commission to assist in carrying

11 out the duties of the Commission under this chapter.

12 (f) OTHER RESOURCES.—The Commission shall have

13 reasonable access to materials, resources, statistical data,

14 and other information from the Library of Congress and

15 agencies and elected representatives of the executive and

16 legislative branches of the Federal Government. The

17 Chairperson of the Commission shall make requests for

18 such access in writing when necessary.

19 (g) PHYSICAL FACILITIES.—The Administrator of

20 the General Services Administration shall locate suitable

21 office space for the operation of the Commission. The fa22 cilities shall serve as the headquarters of the Commission

23 and shall include all necessary equipment and incidentals

24 required for proper functioning of the Commission.
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1 SEC. 4245. POWERS OF COMMISSION.

2 (a) HEARINGS.—The Commission may conduct pub3 lic hearings or forums at the discretion of the Commission,

4 at any time and place the Commission is able to secure

5 facilities and witnesses, for the purpose of carrying out

6 the duties of the Commission under this chapter.

7 (b) DELEGATION OF AUTHORITY.—Any member or

8 agent of the Commission may, if authorized by the Com9 mission, take any action the Commission is authorized to

10 take by this section.

11 (c) INFORMATION.—The Commission may secure di12 rectly from any Federal agency information necessary to

13 enable the Commission to carry out its duties under this

14 chapter. Upon request of the Chairperson or Vice Chair15 person of the Commission, the head of a Federal agency

16 shall furnish the information to the Commission to the ex17 tent permitted by law.

18 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis19 sion may accept, use, and dispose of gifts, bequests, or

20 devises of services or property, both real and personal, for

21 the purpose of aiding or facilitating the work of the Com22 mission. Gifts, bequests, or devises of money and proceeds

23 from sales of other property received as gifts, bequests,

24 or devises shall be deposited in the Treasury and shall be

25 available for disbursement upon order of the Commission.
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1 (e) MAILS.—The Commission may use the United

2 States mails in the same manner and under the same con3 ditions as other Federal agencies.

4 SEC. 4246. REPORTS.

5 (a) INTERIM REPORT.—Not later than 1 year prior

6 to the date on which the Commission terminates pursuant

7 to section 4247, the Commission shall submit an interim

8 report to the President and to the Congress. The interim

9 report shall contain a detailed statement of the findings

10 and conclusions of the Commission, together with the

11 Commission’s recommendations for legislative and admin12 istrative action, based on the activities of the Commission.

13 (b) FINAL REPORT.—Not later than the date on

14 which the Commission terminates, the Commission shall

15 submit to the Congress and to the President a final report

16 containing—

17 (1) a detailed statement of final findings, con18 clusions, and recommendations; and

19 (2) an assessment of the extent to which rec20 ommendations of the Commission included in the in21 terim report under subsection (a) have been imple22 mented.

23 (c) PRINTING AND PUBLIC DISTRIBUTION.—Upon

24 receipt of each report of the Commission under this sec25 tion, the President shall—
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1 (1) order the report to be printed; and

2 (2) make the report available to the public upon

3 request.

4 SEC. 4247. TERMINATION.

5 The Commission shall terminate on the date that is

6 2 years after the date on which the members of the Com7 mission have met and designated a Chairperson and Vice

8 Chairperson.

9 SEC. 4248. AUTHORIZATION OF APPROPRIATIONS.

10 There are authorized to be appropriated such sums

11 as are necessary to carry out the purposes of the Commis12 sion.

13 Subtitle C—Child Support

14 SEC. 4300. REFERENCE TO SOCIAL SECURITY ACT.

15 Except as otherwise specifically provided, wherever in

16 this subtitle an amendment is expressed in terms of an

17 amendment to or repeal of a section or other provision,

18 the reference shall be considered to be made to that sec19 tion or other provision of the Social Security Act.

20 CHAPTER 1—ELIGIBILITY FOR SERVICES;

21 DISTRIBUTION OF PAYMENTS

22 SEC. 4301. STATE OBLIGATION TO PROVIDE CHILD SUP23 PORT ENFORCEMENT SERVICES.

24 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

25 U.S.C. 654) is amended—
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1 (1) by striking paragraph (4) and inserting the

2 following new paragraph:

3 ‘‘(4) provide that the State will—

4 ‘‘(A) provide services relating to the estab5 lishment of paternity or the establishment,

6 modification, or enforcement of child support

7 obligations, as appropriate, under the plan with

8 respect to—

9 ‘‘(i) each child for whom (I) assist10 ance is provided under the State program

11 funded under part A of this title, (II) ben12 efits or services for foster care mainte13 nance are provided under the State pro14 gram funded under part E of this title, or

15 (III) medical assistance is provided under

16 the State plan under title XIX, unless, in

17 accordance with paragraph (29), good

18 cause or other exceptions exist;

19 ‘‘(ii) any other child, if an individual

20 applies for such services with respect to

21 the child; and

22 ‘‘(B) enforce any support obligation estab23 lished with respect to—

24 ‘‘(i) a child with respect to whom the

25 State provides services under the plan; or
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1 ‘‘(ii) the custodial parent of such a

2 child;’’; and

3 (2) in paragraph (6)—

4 (A) by striking ‘‘provide that’’ and insert5 ing ‘‘provide that—’’;

6 (B) by striking subparagraph (A) and in7 serting the following new subparagraph:

8 ‘‘(A) services under the plan shall be made

9 available to residents of other States on the

10 same terms as to residents of the State submit11 ting the plan;’’;

12 (C) in subparagraph (B), by inserting ‘‘on

13 individuals not receiving assistance under any

14 State program funded under part A’’ after

15 ‘‘such services shall be imposed’’;

16 (D) in each of subparagraphs (B), (C),

17 (D), and (E)—

18 (i) by indenting the subparagraph in

19 the same manner as, and aligning the left

20 margin of the subparagraph with the left

21 margin of, the matter inserted by subpara22 graph (B) of this paragraph; and

23 (ii) by striking the final comma and

24 inserting a semicolon; and
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1 (E) in subparagraph (E), by indenting

2 each of clauses (i) and (ii) 2 additional ems.

3 (b) CONTINUATION OF SERVICES FOR FAMILIES

4 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

5 PROGRAM FUNDED UNDER PART A.—Section 454 (42

6 U.S.C. 654) is amended—

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

8 (23);

9 (2) by striking the period at the end of para10 graph (24) and inserting ‘‘; and’’; and

11 (3) by adding after paragraph (24) the follow12 ing new paragraph:

13 ‘‘(25) provide that if a family with respect to

14 which services are provided under the plan ceases to

15 receive assistance under the State program funded

16 under part A, the State shall provide appropriate no17 tice to the family and continue to provide such serv18 ices, subject to the same conditions and on the same

19 basis as in the case of other individuals to whom

20 services are furnished under the plan, except that an

21 application or other request to continue services

22 shall not be required of such a family and paragraph

23 (6)(B) shall not apply to the family.’’.

24 (c) CONFORMING AMENDMENTS.—
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1 (1) Section 452(b) (42 U.S.C. 652(b)) is

2 amended by striking ‘‘454(6)’’ and inserting

3 ‘‘454(4)’’.

4 (2) Section 452(g)(2)(A) (42 U.S.C.

5 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

6 place it appears and inserting ‘‘454(4)(A)(ii)’’.

7 (3) Section 466(a)(3)(B) (42 U.S.C.

8 666(a)(3)(B)) is amended by striking ‘‘in the case of

9 overdue support which a State has agreed to collect

10 under section 454(6)’’ and inserting ‘‘in any other

11 case’’.

12 (4) Section 466(e) (42 U.S.C. 666(e)) is

13 amended by striking ‘‘paragraph (4) or (6) of sec14 tion 454’’ and inserting ‘‘section 454(4)’’.

15 SEC. 4302. DISTRIBUTION OF CHILD SUPPORT COLLEC16 TIONS.

17 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

18 amended to read as follows:

19 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

20 ‘‘(a) IN GENERAL.—Subject to subsection (e), an

21 amount collected on behalf of a family as support by a

22 State pursuant to a plan approved under this part shall

23 be distributed as follows:
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1 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

2 case of a family receiving assistance from the State,

3 the State shall—

4 ‘‘(A) pay to the Federal Government the

5 Federal share of the amount so collected; and

6 ‘‘(B) retain, or distribute to the family, the

7 State share of the amount so collected.

8 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS9 SISTANCE.—In the case of a family that formerly re10 ceived assistance from the State:

11 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

12 the extent that the amount so collected does not

13 exceed the amount required to be paid to the

14 family for the month in which collected, the

15 State shall distribute the amount so collected to

16 the family.

17 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

18 extent that the amount so collected exceeds the

19 amount required to be paid to the family for

20 the month in which collected, the State shall

21 distribute the amount so collected as follows:

22 ‘‘(i) DISTRIBUTION OF ARREARAGES

23 THAT ACCRUED AFTER THE FAMILY

24 CEASED TO RECEIVE ASSISTANCE.—
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1 ‘‘(I) PRE-OCTOBER 1997.—Except

2 as provided in subclause (II), the pro3 visions of this section (other than sub4 section (b)(1)) as in effect and applied

5 on the day before the date of the en6 actment of section 4302 of the Per7 sonal Responsibility and Work Oppor8 tunity Act of 1996 shall apply with

9 respect to the distribution of support

10 arrearages that—

11 ‘‘(aa) accrued after the fam12 ily ceased to receive assistance,

13 and

14 ‘‘(bb) are collected before

15 October 1, 1997.

16 ‘‘(II) POST-SEPTEMBER 1997.—

17 With respect to the amount so col18 lected on or after October 1, 1997 (or

19 before such date, at the option of the

20 State)—

21 ‘‘(aa) IN GENERAL.—The

22 State shall first distribute the

23 amount so collected (other than

24 any amount described in clause

25 (iv)) to the family to the extent
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1 necessary to satisfy any support

2 arrearages with respect to the

3 family that accrued after the

4 family ceased to receive assist5 ance from the State.

6 ‘‘(bb) REIMBURSEMENT OF

7 GOVERNMENTS FOR ASSISTANCE

8 PROVIDED TO THE FAMILY.—

9 After the application of division

10 (aa) and clause (ii)(II)(aa) with

11 respect to the amount so col12 lected, the State shall retain the

13 State share of the amount so col14 lected, and pay to the Federal

15 Government the Federal share

16 (as defined in subsection (c)(2))

17 of the amount so collected, but

18 only to the extent necessary to

19 reimburse amounts paid to the

20 family as assistance by the State.

21 ‘‘(cc) DISTRIBUTION OF THE

22 REMAINDER TO THE FAMILY.—

23 To the extent that neither divi24 sion (aa) nor division (bb) applies

25 to the amount so collected, the
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1 State shall distribute the amount

2 to the family.

3 ‘‘(ii) DISTRIBUTION OF ARREARAGES

4 THAT ACCRUED BEFORE THE FAMILY RE5 CEIVED ASSISTANCE.—

6 ‘‘(I) PRE-OCTOBER 2000.—Except

7 as provided in subclause (II), the pro8 visions of this section (other than sub9 section (b)(1)) as in effect and applied

10 on the day before the date of the en11 actment of section 4302 of the Per12 sonal Responsibility and Work Oppor13 tunity Act of 1996 shall apply with

14 respect to the distribution of support

15 arrearages that—

16 ‘‘(aa) accrued before the

17 family received assistance, and

18 ‘‘(bb) are collected before

19 October 1, 2000.

20 ‘‘(II) POST-SEPTEMBER 2000.—

21 Unless, based on the report required

22 by paragraph (4), the Congress deter23 mines otherwise, with respect to the

24 amount so collected on or after Octo-
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1 ber 1, 2000 (or before such date, at

2 the option of the State)—

3 ‘‘(aa) IN GENERAL.—The

4 State shall first distribute the

5 amount so collected (other than

6 any amount described in clause

7 (iv)) to the family to the extent

8 necessary to satisfy any support

9 arrearages with respect to the

10 family that accrued before the

11 family received assistance from

12 the State.

13 ‘‘(bb) REIMBURSEMENT OF

14 GOVERNMENTS FOR ASSISTANCE

15 PROVIDED TO THE FAMILY.—

16 After the application of clause

17 (i)(II)(aa) and division (aa) with

18 respect to the amount so col19 lected, the State shall retain the

20 State share of the amount so col21 lected, and pay to the Federal

22 Government the Federal share

23 (as defined in subsection (c)(2))

24 of the amount so collected, but

25 only to the extent necessary to
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1 reimburse amounts paid to the

2 family as assistance by the State.

3 ‘‘(cc) DISTRIBUTION OF THE

4 REMAINDER TO THE FAMILY.—

5 To the extent that neither divi6 sion (aa) nor division (bb) applies

7 to the amount so collected, the

8 State shall distribute the amount

9 to the family.

10 ‘‘(iii) DISTRIBUTION OF ARREARAGES

11 THAT ACCRUED WHILE THE FAMILY RE12 CEIVED ASSISTANCE.—In the case of a

13 family described in this subparagraph, the

14 provisions of paragraph (1) shall apply

15 with respect to the distribution of support

16 arrearages that accrued while the family

17 received assistance.

18 ‘‘(iv) AMOUNTS COLLECTED PURSU19 ANT TO SECTION 464.—Notwithstanding

20 any other provision of this section, any

21 amount of support collected pursuant to

22 section 464 shall be retained by the State

23 to the extent past-due support has been as24 signed to the State as a condition of re25 ceiving assistance from the State, up to the
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1 amount necessary to reimburse the State

2 for amounts paid to the family as assist3 ance by the State. The State shall pay to

4 the Federal Government the Federal share

5 of the amounts so retained. To the extent

6 the amount collected pursuant to section

7 464 exceeds the amount so retained, the

8 State shall distribute the excess to the

9 family.

10 ‘‘(v) ORDERING RULES FOR DISTRIBU11 TIONS.—For purposes of this subpara12 graph, unless an earlier effective date is re13 quired by this section, effective October 1,

14 2000, the State shall treat any support ar15 rearages collected, except for amounts col16 lected pursuant to section 464, as accruing

17 in the following order:

18 ‘‘(I) To the period after the fam19 ily ceased to receive assistance.

20 ‘‘(II) To the period before the

21 family received assistance.

22 ‘‘(III) To the period while the

23 family was receiving assistance.

24 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST25 ANCE.—In the case of any other family, the State
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1 shall distribute the amount so collected to the fam2 ily.

3 ‘‘(4) STUDY AND REPORT.—Not later than Oc4 tober 1, 1998, the Secretary shall report to the Con5 gress the Secretary’s findings with respect to—

6 ‘‘(A) whether the distribution of post-as7 sistance arrearages to families has been effec8 tive in moving people off of welfare and keeping

9 them off of welfare;

10 ‘‘(B) whether early implementation of a

11 pre-assistance arrearage program by some

12 States has been effective in moving people off

13 of welfare and keeping them off of welfare;

14 ‘‘(C) what the overall impact has been of

15 the amendments made by the Personal Respon16 sibility and Work Opportunity Act of 1996 with

17 respect to child support enforcement in moving

18 people off of welfare and keeping them off of

19 welfare; and

20 ‘‘(D) based on the information and data

21 the Secretary has obtained, what changes, if

22 any, should be made in the policies related to

23 the distribution of child support arrearages.

24 ‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights

25 to support obligations, which were assigned to a State as
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1 a condition of receiving assistance from the State under

2 part A and which were in effect on the day before the

3 date of the enactment of the Personal Responsibility and

4 Work Opportunity Act of 1996, shall remain assigned

5 after such date.

6 ‘‘(c) DEFINITIONS.—As used in subsection (a):

7 ‘‘(1) ASSISTANCE.—The term ‘assistance from

8 the State’ means—

9 ‘‘(A) assistance under the State program

10 funded under part A or under the State plan

11 approved under part A of this title (as in effect

12 on the day before the date of the enactment of

13 the Personal Responsibility and Work Oppor14 tunity Act of 1996); and

15 ‘‘(B) foster care maintenance payments

16 under the State plan approved under part E of

17 this title.

18 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

19 share’ means that portion of the amount collected

20 resulting from the application of the Federal medical

21 assistance percentage in effect for the fiscal year in

22 which the amount is collected.

23 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT24 AGE.—The term ‘Federal medical assistance per25 centage’ means—
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1 ‘‘(A) the Federal medical assistance per2 centage (as defined in section 1118), in the case

3 of Puerto Rico, the Virgin Islands, Guam, and

4 American Samoa; or

5 ‘‘(B) the Federal medical assistance per6 centage (as defined in section 1905(b), as in ef7 fect on September 30, 1996) in the case of any

8 other State.

9 ‘‘(4) STATE SHARE.—The term ‘State share’

10 means 100 percent minus the Federal share.

11 ‘‘(d) HOLD HARMLESS PROVISION.—If the amounts

12 collected which could be retained by the State in the fiscal

13 year (to the extent necessary to reimburse the State for

14 amounts paid to families as assistance by the State) are

15 less than the State share of the amounts collected in fiscal

16 year 1995 (determined in accordance with section 457 as

17 in effect on the day before the date of the enactment of

18 the Personal Responsibility and Work Opportunity Act of

19 1996), the State share for the fiscal year shall be an

20 amount equal to the State share in fiscal year 1995.

21 ‘‘(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBU22 TION UNDER THIS SECTION.—At State option, this sec23 tion shall not apply to any amount collected on behalf of

24 a family as support by the State (and paid to the family

25 in addition to the amount of assistance otherwise payable
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1 to the family) pursuant to a plan approved under this part

2 if such amount would have been paid to the family by the

3 State under section 402(a)(28), as in effect and applied

4 on the day before the date of the enactment of section

5 4302 of the Personal Responsibility and Work Oppor6 tunity Act of 1996. For purposes of subsection (d), the

7 State share of such amount paid to the family shall be

8 considered amounts which could be retained by the State

9 if such payments were reported by the State as part of

10 the State share of amounts collected in fiscal year 1995.’’.

11 (b) CONFORMING AMENDMENTS.—

12 (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is

13 amended by striking ‘‘section 457(b)(4) or (d)(3)’’

14 and inserting ‘‘section 457’’.

15 (2) Section 454 (42 U.S.C. 654) is amended—

16 (A) in paragraph (11)—

17 (i) by striking ‘‘(11)’’ and inserting

18 ‘‘(11)(A)’’; and

19 (ii) by inserting after the semicolon

20 ‘‘and’’; and

21 (B) by redesignating paragraph (12) as

22 subparagraph (B) of paragraph (11).

23 (c) EFFECTIVE DATES.—

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section
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1 shall be effective on October 1, 1996, or earlier at

2 the State’s option.

3 (2) CONFORMING AMENDMENTS.—The amend4 ments made by subsection (b)(2) shall become effec5 tive on the date of the enactment of this Act.

6 SEC. 4303. PRIVACY SAFEGUARDS.

7 (a) STATE PLAN REQUIREMENT.—Section 454 (42

8 U.S.C. 654), as amended by section 4301(b) of this Act,

9 is amended—

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

11 (24);

12 (2) by striking the period at the end of para13 graph (25) and inserting ‘‘; and’’; and

14 (3) by adding after paragraph (25) the follow15 ing new paragraph:

16 ‘‘(26) will have in effect safeguards, applicable

17 to all confidential information handled by the State

18 agency, that are designed to protect the privacy

19 rights of the parties, including—

20 ‘‘(A) safeguards against unauthorized use

21 or disclosure of information relating to proceed22 ings or actions to establish paternity, or to es23 tablish or enforce support;

24 ‘‘(B) prohibitions against the release of in25 formation on the whereabouts of 1 party to an-
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1 other party against whom a protective order

2 with respect to the former party has been en3 tered; and

4 ‘‘(C) prohibitions against the release of in5 formation on the whereabouts of 1 party to an6 other party if the State has reason to believe

7 that the release of the information may result

8 in physical or emotional harm to the former

9 party.’’.

10 (b) EFFECTIVE DATE.—The amendment made by

11 subsection (a) shall become effective on October 1, 1997.

12 SEC. 4304. RIGHTS TO NOTIFICATION OF HEARINGS.

13 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

14 amended by section 4302(b)(2) of this Act, is amended

15 by inserting after paragraph (11) the following new para16 graph:

17 ‘‘(12) provide for the establishment of proce18 dures to require the State to provide individuals who

19 are applying for or receiving services under the State

20 plan, or who are parties to cases in which services

21 are being provided under the State plan—

22 ‘‘(A) with notice of all proceedings in

23 which support obligations might be established

24 or modified; and
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1 ‘‘(B) with a copy of any order establishing

2 or modifying a child support obligation, or (in

3 the case of a petition for modification) a notice

4 of determination that there should be no change

5 in the amount of the child support award, with6 in 14 days after issuance of such order or de7 termination;’’.

8 (b) EFFECTIVE DATE.—The amendment made by

9 subsection (a) shall become effective on October 1, 1997.

10 CHAPTER 2—LOCATE AND CASE

11 TRACKING

12 SEC. 4311. STATE CASE REGISTRY.

13 Section 454A, as added by section 4344(a)(2) of this

14 Act, is amended by adding at the end the following new

15 subsections:

16 ‘‘(e) STATE CASE REGISTRY.—

17 ‘‘(1) CONTENTS.—The automated system re18 quired by this section shall include a registry (which

19 shall be known as the ‘State case registry’) that con20 tains records with respect to—

21 ‘‘(A) each case in which services are being

22 provided by the State agency under the State

23 plan approved under this part; and
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1 ‘‘(B) each support order established or

2 modified in the State on or after October 1,

3 1998.

4 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

5 State case registry may be established by linking

6 local case registries of support orders through an

7 automated information network, subject to this sec8 tion.

9 ‘‘(3) USE OF STANDARDIZED DATA ELE10 MENTS.—Such records shall use standardized data

11 elements for both parents (such as names, social se12 curity numbers and other uniform identification

13 numbers, dates of birth, and case identification

14 numbers), and contain such other information (such

15 as on case status) as the Secretary may require.

16 ‘‘(4) PAYMENT RECORDS.—Each case record in

17 the State case registry with respect to which services

18 are being provided under the State plan approved

19 under this part and with respect to which a support

20 order has been established shall include a record

21 of—

22 ‘‘(A) the amount of monthly (or other peri23 odic) support owed under the order, and other

24 amounts (including arrearages, interest or late
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1 payment penalties, and fees) due or overdue

2 under the order;

3 ‘‘(B) any amount described in subpara4 graph (A) that has been collected;

5 ‘‘(C) the distribution of such collected

6 amounts;

7 ‘‘(D) the birth date of any child for whom

8 the order requires the provision of support; and

9 ‘‘(E) the amount of any lien imposed with

10 respect to the order pursuant to section

11 466(a)(4).

12 ‘‘(5) UPDATING AND MONITORING.—The State

13 agency operating the automated system required by

14 this section shall promptly establish and update,

15 maintain, and regularly monitor, case records in the

16 State case registry with respect to which services are

17 being provided under the State plan approved under

18 this part, on the basis of—

19 ‘‘(A) information on administrative actions

20 and administrative and judicial proceedings and

21 orders relating to paternity and support;

22 ‘‘(B) information obtained from compari23 son with Federal, State, or local sources of in24 formation;
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1 ‘‘(C) information on support collections

2 and distributions; and

3 ‘‘(D) any other relevant information.

4 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS5 CLOSURES OF INFORMATION.—The State shall use the

6 automated system required by this section to extract infor7 mation from (at such times, and in such standardized for8 mat or formats, as may be required by the Secretary), to

9 share and compare information with, and to receive infor10 mation from, other data bases and information compari11 son services, in order to obtain (or provide) information

12 necessary to enable the State agency (or the Secretary or

13 other State or Federal agencies) to carry out this part,

14 subject to section 6103 of the Internal Revenue Code of

15 1986. Such information comparison activities shall include

16 the following:

17 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP18 PORT ORDERS.—Furnishing to the Federal Case

19 Registry of Child Support Orders established under

20 section 453(h) (and update as necessary, with infor21 mation including notice of expiration of orders) the

22 minimum amount of information on child support

23 cases recorded in the State case registry that is nec24 essary to operate the registry (as specified by the

25 Secretary in regulations).
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1 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

2 Exchanging information with the Federal Parent

3 Locator Service for the purposes specified in section

4 453.

5 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

6 MEDICAID AGENCIES.—Exchanging information with

7 State agencies (of the State and of other States) ad8 ministering programs funded under part A, pro9 grams operated under a State plan approved under

10 title XIX, and other programs designated by the

11 Secretary, as necessary to perform State agency re12 sponsibilities under this part and under such pro13 grams.

14 ‘‘(4) INTRASTATE AND INTERSTATE INFORMA15 TION COMPARISONS.—Exchanging information with

16 other agencies of the State, agencies of other States,

17 and interstate information networks, as necessary

18 and appropriate to carry out (or assist other States

19 to carry out) the purposes of this part.’’.

20 SEC. 4312. COLLECTION AND DISBURSEMENT OF SUPPORT

21 PAYMENTS.

22 (a) STATE PLAN REQUIREMENT.—Section 454 (42

23 U.S.C. 654), as amended by sections 4301(b) and 4303(a)

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

2 (25);

3 (2) by striking the period at the end of para4 graph (26) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (26) the follow6 ing new paragraph:

7 ‘‘(27) provide that, on and after October 1,

8 1998, the State agency will—

9 ‘‘(A) operate a State disbursement unit in

10 accordance with section 454B; and

11 ‘‘(B) have sufficient State staff (consisting

12 of State employees) and (at State option) con13 tractors reporting directly to the State agency

14 to—

15 ‘‘(i) monitor and enforce support col16 lections through the unit in cases being en17 forced by the State pursuant to section

18 454(4) (including carrying out the auto19 mated data processing responsibilities de20 scribed in section 454A(g)); and

21 ‘‘(ii) take the actions described in sec22 tion 466(c)(1) in appropriate cases.’’.

23 (b) ESTABLISHMENT OF STATE DISBURSEMENT

24 UNIT.—Part D of title IV (42 U.S.C. 651–669), as
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1 amended by section 4344(a)(2) of this Act, is amended

2 by inserting after section 454A the following new section:

3 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP4 PORT PAYMENTS.

5 ‘‘(a) STATE DISBURSEMENT UNIT.—

6 ‘‘(1) IN GENERAL.—In order for a State to

7 meet the requirements of this section, the State

8 agency must establish and operate a unit (which

9 shall be known as the ‘State disbursement unit’) for

10 the collection and disbursement of payments under

11 support orders—

12 ‘‘(A) in all cases being enforced by the

13 State pursuant to section 454(4); and

14 ‘‘(B) in all cases not being enforced by the

15 State under this part in which the support

16 order is initially issued in the State on or after

17 January 1, 1994, and in which the income of

18 the noncustodial parent are subject to withhold19 ing pursuant to section 466(a)(8)(B).

20 ‘‘(2) OPERATION.—The State disbursement

21 unit shall be operated—

22 ‘‘(A) directly by the State agency (or 2 or

23 more State agencies under a regional coopera24 tive agreement), or (to the extent appropriate)
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1 by a contractor responsible directly to the State

2 agency; and

3 ‘‘(B) except in cases described in para4 graph (1)(B), in coordination with the auto5 mated system established by the State pursuant

6 to section 454A.

7 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

8 UNITS.—The State disbursement unit may be estab9 lished by linking local disbursement units through

10 an automated information network, subject to this

11 section, if the Secretary agrees that the system will

12 not cost more nor take more time to establish or op13 erate than a centralized system. In addition, employ14 ers shall be given 1 location to which income with15 holding is sent.

16 ‘‘(b) REQUIRED PROCEDURES.—The State disburse17 ment unit shall use automated procedures, electronic proc18 esses, and computer-driven technology to the maximum

19 extent feasible, efficient, and economical, for the collection

20 and disbursement of support payments, including proce21 dures—

22 ‘‘(1) for receipt of payments from parents, em23 ployers, and other States, and for disbursements to

24 custodial parents and other obligees, the State agen25 cy, and the agencies of other States;
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1 ‘‘(2) for accurate identification of payments;

2 ‘‘(3) to ensure prompt disbursement of the cus3 todial parent’s share of any payment; and

4 ‘‘(4) to furnish to any parent, upon request,

5 timely information on the current status of support

6 payments under an order requiring payments to be

7 made by or to the parent, except that, with respect

8 to a case described in subsection (a)(1)(B), the

9 State disbursement unit shall not be required to

10 maintain records of payments which, after the effec11 tive date of this section, are made to, and distrib12 uted by, the unit.

13 ‘‘(c) TIMING OF DISBURSEMENTS.—

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), the State disbursement unit shall distrib16 ute all amounts payable under section 457(a) within

17 2 business days after receipt from the employer or

18 other source of periodic income, if sufficient infor19 mation identifying the payee is provided.

20 ‘‘(2) PERMISSIVE RETENTION OF ARREAR21 AGES.—The State disbursement unit may delay the

22 distribution of collections toward arrearages until

23 the resolution of any timely appeal with respect to

24 such arrearages.
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1 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec2 tion, the term ‘business day’ means a day on which State

3 offices are open for regular business.’’.

4 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

5 added by section 4344(a)(2) and as amended by section

6 4311 of this Act, is amended by adding at the end the

7 following new subsection:

8 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

9 PAYMENTS.—

10 ‘‘(1) IN GENERAL.—The State shall use the

11 automated system required by this section, to the

12 maximum extent feasible, to assist and facilitate the

13 collection and disbursement of support payments

14 through the State disbursement unit operated under

15 section 454B, through the performance of functions,

16 including, at a minimum—

17 ‘‘(A) transmission of orders and notices to

18 employers (and other debtors) for the withhold19 ing of income—

20 ‘‘(i) within 2 business days after re21 ceipt of notice of, and the income source

22 subject to, such withholding from a court,

23 another State, an employer, the Federal

24 Parent Locator Service, or another source

25 recognized by the State; and
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1 ‘‘(ii) using uniform formats prescribed

2 by the Secretary;

3 ‘‘(B) ongoing monitoring to promptly iden4 tify failures to make timely payment of support;

5 and

6 ‘‘(C) automatic use of enforcement proce7 dures (including procedures authorized pursu8 ant to section 466(c)) if payments are not time9 ly made.

10 ‘‘(2) BUSINESS DAY DEFINED.—As used in

11 paragraph (1), the term ‘business day’ means a day

12 on which State offices are open for regular busi13 ness.’’.

14 (d) EFFECTIVE DATES.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section

17 shall become effective on October 1, 1998.

18 (2) LIMITED EXCEPTION TO UNIT HANDLING

19 PAYMENTS.—Notwithstanding section 454B(b)(1) of

20 the Social Security Act, as added by this section,

21 any State which, as of the date of the enactment of

22 this Act, processes the receipt of child support pay23 ments through local courts may, at the option of the

24 State, continue to process through September 30,

25 1999, such payments through such courts as proc-
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1 essed such payments on or before such date of en2 actment.

3 (e) SENSE OF THE CONGRESS.—It is the sense of the

4 Congress that, in determining whether to comply with sec5 tion 454B of the Social Security Act by establishing a sin6 gle, centralized unit for the collection and disbursement

7 of support payments or by linking together through auto8 mation local units for the collection and disbursement of

9 support payments, a State should choose the method of

10 compliance which best meets the needs of parents, employ11 ers, and children.

12 SEC. 4313. STATE DIRECTORY OF NEW HIRES.

13 (a) STATE PLAN REQUIREMENT.—Section 454 (42

14 U.S.C. 654), as amended by sections 4301(b), 4303(a)

15 and 4312(a) of this Act, is amended—

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

17 (26);

18 (2) by striking the period at the end of para19 graph (27) and inserting ‘‘; and’’; and

20 (3) by adding after paragraph (27) the follow21 ing new paragraph:

22 ‘‘(28) provide that, on and after October 1,

23 1997, the State will operate a State Directory of

24 New Hires in accordance with section 453A.’’.
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1 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

2 title IV (42 U.S.C. 651–669) is amended by inserting

3 after section 453 the following new section:

4 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

5 ‘‘(a) ESTABLISHMENT.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) REQUIREMENT FOR STATES THAT

8 HAVE NO DIRECTORY.—Except as provided in

9 subparagraph (B), not later than October 1,

10 1997, each State shall establish an automated

11 directory (to be known as the ‘State Directory

12 of New Hires’) which shall contain information

13 supplied in accordance with subsection (b) by

14 employers on each newly hired employee.

15 ‘‘(B) STATES WITH NEW HIRE REPORTING

16 IN EXISTENCE.—A State which has a new hire

17 reporting law in existence on the date of the en18 actment of this section may continue to operate

19 under the State law, but the State must meet

20 the requirements of subsection (g)(2) not later

21 than October 1, 1997, and the requirements of

22 this section (other than subsection (g)(2)) not

23 later than October 1, 1998.

24 ‘‘(2) DEFINITIONS.—As used in this section:

25 ‘‘(A) EMPLOYEE.—The term ‘employee’—
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1 ‘‘(i) means an individual who is an

2 employee within the meaning of chapter 24

3 of the Internal Revenue Code of 1986; and

4 ‘‘(ii) does not include an employee of

5 a Federal or State agency performing in6 telligence or counterintelligence functions,

7 if the head of such agency has determined

8 that reporting pursuant to paragraph (1)

9 with respect to the employee could endan10 ger the safety of the employee or com11 promise an ongoing investigation or intel12 ligence mission.

13 ‘‘(B) EMPLOYER.—

14 ‘‘(i) IN GENERAL.—The term ‘em15 ployer’ has the meaning given such term in

16 section 3401(d) of the Internal Revenue

17 Code of 1986 and includes any govern18 mental entity and any labor organization.

19 ‘‘(ii) LABOR ORGANIZATION.—The

20 term ‘labor organization’ shall have the

21 meaning given such term in section 2(5) of

22 the National Labor Relations Act, and in23 cludes any entity (also known as a ‘hiring

24 hall’) which is used by the organization

25 and an employer to carry out requirements
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1 described in section 8(f)(3) of such Act of

2 an agreement between the organization

3 and the employer.

4 ‘‘(b) EMPLOYER INFORMATION.—

5 ‘‘(1) REPORTING REQUIREMENT.—

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

7 subparagraphs (B) and (C), each employer shall

8 furnish to the Directory of New Hires of the

9 State in which a newly hired employee works, a

10 report that contains the name, address, and so11 cial security number of the employee, and the

12 name and address of, and identifying number

13 assigned under section 6109 of the Internal

14 Revenue Code of 1986 to, the employer.

15 ‘‘(B) MULTISTATE EMPLOYERS.—An em16 ployer that has employees who are employed in

17 2 or more States and that transmits reports

18 magnetically or electronically may comply with

19 subparagraph (A) by designating 1 State in

20 which such employer has employees to which

21 the employer will transmit the report described

22 in subparagraph (A), and transmitting such re23 port to such State. Any employer that transmits

24 reports pursuant to this subparagraph shall no25 tify the Secretary in writing as to which State
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1 such employer designates for the purpose of

2 sending reports.

3 ‘‘(C) FEDERAL GOVERNMENT EMPLOY4 ERS.—Any department, agency, or instrumen5 tality of the United States shall comply with

6 subparagraph (A) by transmitting the report

7 described in subparagraph (A) to the National

8 Directory of New Hires established pursuant to

9 section 453.

10 ‘‘(2) TIMING OF REPORT.—Each State may

11 provide the time within which the report required by

12 paragraph (1) shall be made with respect to an em13 ployee, but such report shall be made—

14 ‘‘(A) not later than 20 days after the date

15 the employer hires the employee; or

16 ‘‘(B) in the case of an employer transmit17 ting reports magnetically or electronically, by 2

18 monthly transmissions (if necessary) not less

19 than 12 days nor more than 16 days apart.

20 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re21 port required by subsection (b) shall be made on a W–

22 4 form or, at the option of the employer, an equivalent

23 form, and may be transmitted by 1st class mail, magneti24 cally, or electronically.
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1 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

2 EMPLOYERS.—The State shall have the option to set a

3 State civil money penalty which shall be less than—

4 ‘‘(1) $25; or

5 ‘‘(2) $500 if, under State law, the failure is the

6 result of a conspiracy between the employer and the

7 employee to not supply the required report or to

8 supply a false or incomplete report.

9 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor10 mation shall be entered into the data base maintained by

11 the State Directory of New Hires within 5 business days

12 of receipt from an employer pursuant to subsection (b).

13 ‘‘(f) INFORMATION COMPARISONS.—

14 ‘‘(1) IN GENERAL.—Not later than May 1,

15 1998, an agency designated by the State shall, di16 rectly or by contract, conduct automated compari17 sons of the social security numbers reported by em18 ployers pursuant to subsection (b) and the social se19 curity numbers appearing in the records of the State

20 case registry for cases being enforced under the

21 State plan.

22 ‘‘(2) NOTICE OF MATCH.—When an information

23 comparison conducted under paragraph (1) reveals a

24 match with respect to the social security number of

25 an individual required to provide support under a
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1 support order, the State Directory of New Hires

2 shall provide the agency administering the State

3 plan approved under this part of the appropriate

4 State with the name, address, and social security

5 number of the employee to whom the social security

6 number is assigned, and the name and address of,

7 and identifying number assigned under section 6109

8 of the Internal Revenue Code of 1986 to, the em9 ployer.

10 ‘‘(g) TRANSMISSION OF INFORMATION.—

11 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

12 NOTICES TO EMPLOYERS.—Within 2 business days

13 after the date information regarding a newly hired

14 employee is entered into the State Directory of New

15 Hires, the State agency enforcing the employee’s

16 child support obligation shall transmit a notice to

17 the employer of the employee directing the employer

18 to withhold from the income of the employee an

19 amount equal to the monthly (or other periodic)

20 child support obligation (including any past due sup21 port obligation) of the employee, unless the employ22 ee’s income is not subject to withholding pursuant to

23 section 466(b)(3).

24 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC25 TORY OF NEW HIRES.—
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1 ‘‘(A) NEW HIRE INFORMATION.—Within 3

2 business days after the date information re3 garding a newly hired employee is entered into

4 the State Directory of New Hires, the State Di5 rectory of New Hires shall furnish the informa6 tion to the National Directory of New Hires.

7 ‘‘(B) WAGE AND UNEMPLOYMENT COM8 PENSATION INFORMATION.—The State Direc9 tory of New Hires shall, on a quarterly basis,

10 furnish to the National Directory of New Hires

11 extracts of the reports required under section

12 303(a)(6) to be made to the Secretary of Labor

13 concerning the wages and unemployment com14 pensation paid to individuals, by such dates, in

15 such format, and containing such information

16 as the Secretary of Health and Human Services

17 shall specify in regulations.

18 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

19 subsection, the term ‘business day’ means a day on

20 which State offices are open for regular business.

21 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

22 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI23 GORS.—The agency administering the State plan ap24 proved under this part shall use information received

25 pursuant to subsection (f)(2) to locate individuals
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1 for purposes of establishing paternity and establish2 ing, modifying, and enforcing child support obliga3 tions, and may disclose such information to any

4 agent of the agency that is under contract with the

5 agency to carry out such purposes.

6 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER7 TAIN PROGRAMS.—A State agency responsible for

8 administering a program specified in section 1137(b)

9 shall have access to information reported by employ10 ers pursuant to subsection (b) of this section for

11 purposes of verifying eligibility for the program.

12 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU13 RITY AND WORKERS’ COMPENSATION.—State agen14 cies operating employment security and workers’

15 compensation programs shall have access to informa16 tion reported by employers pursuant to subsection

17 (b) for the purposes of administering such pro18 grams.’’.

19 (c) QUARTERLY WAGE REPORTING.—Section

20 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

21 (1) by inserting ‘‘(including State and local gov22 ernmental entities and labor organizations (as de23 fined in section 453A(a)(2)(B)(iii))’’ after ‘‘employ24 ers’’; and
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1 (2) by inserting ‘‘, and except that no report

2 shall be filed with respect to an employee of a State

3 or local agency performing intelligence or counter4 intelligence functions, if the head of such agency has

5 determined that filing such a report could endanger

6 the safety of the employee or compromise an ongo7 ing investigation or intelligence mission’’ after

8 ‘‘paragraph (2)’’.

9 (d) DISCLOSURE TO CERTAIN AGENTS.—Section

10 303(e) (42 U.S.C. 503(e)) is amended by adding at the

11 end the following:

12 ‘‘(5) A State or local child support enforcement agen13 cy may disclose to any agent of the agency that is under

14 contract with the agency to carry out the purposes de15 scribed in paragraph (1)(B) wage information that is dis16 closed to an officer or employee of the agency under para17 graph (1)(A). Any agent of a State or local child support

18 agency that receives wage information under this para19 graph shall comply with the safeguards established pursu20 ant to paragraph (1)(B).’’.

21 SEC. 4314. AMENDMENTS CONCERNING INCOME WITH22 HOLDING.

23 (a) MANDATORY INCOME WITHHOLDING.—

24 (1) IN GENERAL.—Section 466(a)(1) (42

25 U.S.C. 666(a)(1)) is amended to read as follows:
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1 ‘‘(1)(A) Procedures described in subsection (b)

2 for the withholding from income of amounts payable

3 as support in cases subject to enforcement under the

4 State plan.

5 ‘‘(B) Procedures under which the income of a

6 person with a support obligation imposed by a sup7 port order issued (or modified) in the State before

8 October 1, 1996, if not otherwise subject to with9 holding under subsection (b), shall become subject

10 to withholding as provided in subsection (b) if ar11 rearages occur, without the need for a judicial or

12 administrative hearing.’’.

13 (2) CONFORMING AMENDMENTS.—

14 (A) Section 466(b) (42 U.S.C. 666(b)) is

15 amended in the matter preceding paragraph

16 (1), by striking ‘‘subsection (a)(1)’’ and insert17 ing ‘‘subsection (a)(1)(A)’’.

18 (B) Section 466(b)(4) (42 U.S.C.

19 666(b)(4)) is amended to read as follows:

20 ‘‘(4)(A) Such withholding must be carried out

21 in full compliance with all procedural due process re22 quirements of the State, and the State must send

23 notice to each noncustodial parent to whom para24 graph (1) applies—
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1 ‘‘(i) that the withholding has commenced;

2 and

3 ‘‘(ii) of the procedures to follow if the non4 custodial parent desires to contest such with5 holding on the grounds that the withholding or

6 the amount withheld is improper due to a mis7 take of fact.

8 ‘‘(B) The notice under subparagraph (A) of this

9 paragraph shall include the information provided to

10 the employer under paragraph (6)(A).’’.

11 (C) Section 466(b)(5) (42 U.S.C.

12 666(b)(5)) is amended by striking all that fol13 lows ‘‘administered by’’ and inserting ‘‘the

14 State through the State disbursement unit es15 tablished pursuant to section 454B, in accord16 ance with the requirements of section 454B.’’.

17 (D) Section 466(b)(6)(A) (42 U.S.C.

18 666(b)(6)(A)) is amended—

19 (i) in clause (i), by striking ‘‘to the

20 appropriate agency’’ and all that follows

21 and inserting ‘‘to the State disbursement

22 unit within 5 business days after the date

23 the amount would (but for this subsection)

24 have been paid or credited to the employee,

25 for distribution in accordance with this
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1 part. The employer shall withhold funds as

2 directed in the notice. For terms and con3 ditions for withholding income that are not

4 specified in a notice issued by another

5 State, the employer shall apply the law of

6 the State in which the obligor works. An

7 employer who complies with an income

8 withholding notice that is regular on its

9 face shall not be subject to civil liability to

10 any individual or agency for conduct in

11 compliance with the notice.’’.

12 (ii) in clause (ii), by inserting ‘‘be in

13 a standard format prescribed by the Sec14 retary, and’’ after ‘‘shall’’; and

15 (iii) by adding at the end the follow16 ing new clause:

17 ‘‘(iii) As used in this subparagraph, the term

18 ‘business day’ means a day on which State offices

19 are open for regular business.’’.

20 (E) Section 466(b)(6)(D) (42 U.S.C.

21 666(b)(6)(D)) is amended by striking ‘‘any em22 ployer’’ and all that follows and inserting ‘‘any

23 employer who—

24 ‘‘(i) discharges from employment, refuses

25 to employ, or takes disciplinary action against
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1 any noncustodial parent subject to income with2 holding required by this subsection because of

3 the existence of such withholding and the obli4 gations or additional obligations which it im5 poses upon the employer; or

6 ‘‘(ii) fails to withhold support from income

7 or to pay such amounts to the State disburse8 ment unit in accordance with this subsection.’’.

9 (F) Section 466(b) (42 U.S.C. 666(b)) is

10 amended by adding at the end the following

11 new paragraph:

12 ‘‘(11) Procedures under which the agency ad13 ministering the State plan approved under this part

14 may execute a withholding order without advance

15 notice to the obligor, including issuing the withhold16 ing order through electronic means.’’.

17 (b) DEFINITION OF INCOME.—

18 (1) IN GENERAL.—Section 466(b)(8) (42

19 U.S.C. 666(b)(8)) is amended to read as follows:

20 ‘‘(8) For purposes of subsection (a) and this

21 subsection, the term ‘income’ means any periodic

22 form of payment due to an individual, regardless of

23 source, including wages, salaries, commissions, bo24 nuses, worker’s compensation, disability, payments
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1 pursuant to a pension or retirement program, and

2 interest.’’.

3 (2) CONFORMING AMENDMENTS.—

4 (A) Subsections (a)(8)(A), (a)(8)(B)(i),

5 (b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and

6 (b)(6)(C), and (b)(7) of section 466 (42 U.S.C.

7 666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B),

8 (b)(6)(A)(i), and (b)(6)(C), and (b)(7)) are

9 each amended by striking ‘‘wages’’ each place

10 such term appears and inserting ‘‘income’’.

11 (B) Section 466(b)(1) (42 U.S.C.

12 666(b)(1)) is amended by striking ‘‘wages (as

13 defined by the State for purposes of this sec14 tion)’’ and inserting ‘‘income’’.

15 (c) CONFORMING AMENDMENT.—Section 466(c) (42

16 U.S.C. 666(c)) is repealed.

17 SEC. 4315. LOCATOR INFORMATION FROM INTERSTATE

18 NETWORKS.

19 Section 466(a) (42 U.S.C. 666(a)) is amended by in20 serting after paragraph (11) the following new paragraph:

21 ‘‘(12) LOCATOR INFORMATION FROM INTER22 STATE NETWORKS.—Procedures to ensure that all

23 Federal and State agencies conducting activities

24 under this part have access to any system used by
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1 the State to locate an individual for purposes relat2 ing to motor vehicles or law enforcement.’’.

3 SEC. 4316. EXPANSION OF THE FEDERAL PARENT LOCATOR

4 SERVICE.

5 (a) EXPANDED AUTHORITY TO LOCATE INDIVID6 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

7 amended—

8 (1) in subsection (a), by striking all that follows

9 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

10 establishing parentage, establishing, setting the

11 amount of, modifying, or enforcing child support ob12 ligations, or enforcing child custody or visitation or13 ders—

14 ‘‘(1) information on, or facilitating the discov15 ery of, the location of any individual—

16 ‘‘(A) who is under an obligation to pay

17 child support or provide child custody or visita18 tion rights;

19 ‘‘(B) against whom such an obligation is

20 sought;

21 ‘‘(C) to whom such an obligation is owed,

22 including the individual’s social security number (or

23 numbers), most recent address, and the name, ad24 dress, and employer identification number of the in25 dividual’s employer;
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1 ‘‘(2) information on the individual’s wages (or

2 other income) from, and benefits of, employment (in3 cluding rights to or enrollment in group health care

4 coverage); and

5 ‘‘(3) information on the type, status, location,

6 and amount of any assets of, or debts owed by or

7 to, any such individual.’’; and

8 (2) in subsection (b)—

9 (A) in the matter preceding paragraph (1),

10 by striking ‘‘social security’’ and all that follows

11 through ‘‘absent parent’’ and inserting ‘‘infor12 mation described in subsection (a)’’; and

13 (B) in the flush paragraph at the end, by

14 adding the following: ‘‘No information shall be

15 disclosed to any person if the State has notified

16 the Secretary that the State has reasonable evi17 dence of domestic violence or child abuse and

18 the disclosure of such information could be

19 harmful to the custodial parent or the child of

20 such parent. Information received or transmit21 ted pursuant to this section shall be subject to

22 the safeguard provisions contained in section

23 454(26).’’.
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1 (b) AUTHORIZED PERSON FOR INFORMATION RE2 GARDING VISITATION RIGHTS.—Section 453(c) (42

3 U.S.C. 653(c)) is amended—

4 (1) in paragraph (1), by striking ‘‘support’’ and

5 inserting ‘‘support or to seek to enforce orders pro6 viding child custody or visitation rights’’; and

7 (2) in paragraph (2), by striking ‘‘, or any

8 agent of such court; and’’ and inserting ‘‘or to issue

9 an order against a resident parent for child custody

10 or visitation rights, or any agent of such court;’’.

11 (c) REIMBURSEMENT FOR INFORMATION FROM FED12 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

13 653(e)(2)) is amended in the 4th sentence by inserting

14 ‘‘in an amount which the Secretary determines to be rea15 sonable payment for the information exchange (which

16 amount shall not include payment for the costs of obtain17 ing, compiling, or maintaining the information)’’ before

18 the period.

19 (d) REIMBURSEMENT FOR REPORTS BY STATE

20 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

21 adding at the end the following new subsection:

22 ‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE

23 AGENCIES.—The Secretary may reimburse Federal and

24 State agencies for the costs incurred by such entities in

25 furnishing information requested by the Secretary under
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1 this section in an amount which the Secretary determines

2 to be reasonable payment for the information exchange

3 (which amount shall not include payment for the costs of

4 obtaining, compiling, or maintaining the information).’’.

5 (e) CONFORMING AMENDMENTS.—

6 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

7 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

8 653(b), 663(a), 663(e), and 663(f)) are each amend9 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

10 place such term appears.

11 (2) Section 453 (42 U.S.C. 653) is amended in

12 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR13 ENT’’.

14 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

15 653), as amended by subsection (d) of this section, is

16 amended by adding at the end the following new sub17 sections:

18 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

19 ORDERS.—

20 ‘‘(1) IN GENERAL.—Not later than October 1,

21 1998, in order to assist States in administering pro22 grams under State plans approved under this part

23 and programs funded under part A, and for the

24 other purposes specified in this section, the Sec25 retary shall establish and maintain in the Federal
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1 Parent Locator Service an automated registry

2 (which shall be known as the ‘Federal Case Registry

3 of Child Support Orders’), which shall contain ab4 stracts of support orders and other information de5 scribed in paragraph (2) with respect to each case

6 in each State case registry maintained pursuant to

7 section 454A(e), as furnished (and regularly up8 dated), pursuant to section 454A(f), by State agen9 cies administering programs under this part.

10 ‘‘(2) CASE INFORMATION.—The information re11 ferred to in paragraph (1) with respect to a case

12 shall be such information as the Secretary may

13 specify in regulations (including the names, social

14 security numbers or other uniform identification

15 numbers, and State case identification numbers) to

16 identify the individuals who owe or are owed support

17 (or with respect to or on behalf of whom support ob18 ligations are sought to be established), and the State

19 or States which have the case.

20 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

21 ‘‘(1) IN GENERAL.—In order to assist States in

22 administering programs under State plans approved

23 under this part and programs funded under part A,

24 and for the other purposes specified in this section,

25 the Secretary shall, not later than October 1, 1997,
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1 establish and maintain in the Federal Parent Loca2 tor Service an automated directory to be known as

3 the National Directory of New Hires, which shall

4 contain the information supplied pursuant to section

5 453A(g)(2).

6 ‘‘(2) ENTRY OF DATA.—Information shall be

7 entered into the data base maintained by the Na8 tional Directory of New Hires within 2 business

9 days of receipt pursuant to section 453A(g)(2).

10 ‘‘(3) ADMINISTRATION OF FEDERAL TAX

11 LAWS.—The Secretary of the Treasury shall have

12 access to the information in the National Directory

13 of New Hires for purposes of administering section

14 32 of the Internal Revenue Code of 1986, or the

15 advance payment of the earned income tax credit

16 under section 3507 of such Code, and verifying a

17 claim with respect to employment in a tax return.

18 ‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The

19 Secretary shall maintain within the National Direc20 tory of New Hires a list of multistate employers that

21 report information regarding newly hired employees

22 pursuant to section 453A(b)(1)(B), and the State

23 which each such employer has designated to receive

24 such information.
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1 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS2 CLOSURES.—

3 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD4 MINISTRATION.—

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

6 transmit information on individuals and em7 ployers maintained under this section to the So8 cial Security Administration to the extent nec9 essary for verification in accordance with sub10 paragraph (B).

11 ‘‘(B) VERIFICATION BY SSA.—The Social

12 Security Administration shall verify the accu13 racy of, correct, or supply to the extent pos14 sible, and report to the Secretary, the following

15 information supplied by the Secretary pursuant

16 to subparagraph (A):

17 ‘‘(i) The name, social security num18 ber, and birth date of each such individual.

19 ‘‘(ii) The employer identification num20 ber of each such employer.

21 ‘‘(2) INFORMATION COMPARISONS.—For the

22 purpose of locating individuals in a paternity estab23 lishment case or a case involving the establishment,

24 modification, or enforcement of a support order, the

25 Secretary shall—
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1 ‘‘(A) compare information in the National

2 Directory of New Hires against information in

3 the support case abstracts in the Federal Case

4 Registry of Child Support Orders not less often

5 than every 2 business days; and

6 ‘‘(B) within 2 business days after such a

7 comparison reveals a match with respect to an

8 individual, report the information to the State

9 agency responsible for the case.

10 ‘‘(3) INFORMATION COMPARISONS AND DISCLO11 SURES OF INFORMATION IN ALL REGISTRIES FOR

12 TITLE IV PROGRAM PURPOSES.—To the extent and

13 with the frequency that the Secretary determines to

14 be effective in assisting States to carry out their re15 sponsibilities under programs operated under this

16 part and programs funded under part A, the Sec17 retary shall—

18 ‘‘(A) compare the information in each com19 ponent of the Federal Parent Locator Service

20 maintained under this section against the infor21 mation in each other such component (other

22 than the comparison required by paragraph

23 (2)), and report instances in which such a com24 parison reveals a match with respect to an indi-
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1 vidual to State agencies operating such pro2 grams; and

3 ‘‘(B) disclose information in such registries

4 to such State agencies.

5 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

6 TO THE SOCIAL SECURITY ADMINISTRATION.—The

7 National Directory of New Hires shall provide the

8 Commissioner of Social Security with all information

9 in the National Directory, which shall be used to de10 termine the accuracy of payments under the supple11 mental security income program under title XVI and

12 in connection with benefits under title II.

13 ‘‘(5) RESEARCH.—The Secretary may provide

14 access to information reported by employers pursu15 ant to section 453A(b) for research purposes found

16 by the Secretary to be likely to contribute to achiev17 ing the purposes of part A or this part, but without

18 personal identifiers.

19 ‘‘(k) FEES.—

20 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

21 shall reimburse the Commissioner of Social Security,

22 at a rate negotiated between the Secretary and the

23 Commissioner, for the costs incurred by the Com24 missioner in performing the verification services de25 scribed in subsection (j).
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1 ‘‘(2) FOR INFORMATION FROM STATE DIREC2 TORIES OF NEW HIRES.—The Secretary shall reim3 burse costs incurred by State directories of new

4 hires in furnishing information as required by sub5 section (j)(3), at rates which the Secretary deter6 mines to be reasonable (which rates shall not include

7 payment for the costs of obtaining, compiling, or

8 maintaining such information).

9 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

10 AND FEDERAL AGENCIES.—A State or Federal agen11 cy that receives information from the Secretary pur12 suant to this section shall reimburse the Secretary

13 for costs incurred by the Secretary in furnishing the

14 information, at rates which the Secretary determines

15 to be reasonable (which rates shall include payment

16 for the costs of obtaining, verifying, maintaining,

17 and comparing the information).

18 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In19 formation in the Federal Parent Locator Service, and in20 formation resulting from comparisons using such informa21 tion, shall not be used or disclosed except as expressly pro22 vided in this section, subject to section 6103 of the Inter23 nal Revenue Code of 1986.

24 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

25 The Secretary shall establish and implement safeguards
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1 with respect to the entities established under this section

2 designed to—

3 ‘‘(1) ensure the accuracy and completeness of

4 information in the Federal Parent Locator Service;

5 and

6 ‘‘(2) restrict access to confidential information

7 in the Federal Parent Locator Service to authorized

8 persons, and restrict use of such information to au9 thorized purposes.

10 ‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each

11 department, agency, and instrumentality of the United

12 States shall on a quarterly basis report to the Federal

13 Parent Locator Service the name and social security num14 ber of each employee and the wages paid to the employee

15 during the previous quarter, except that such a report

16 shall not be filed with respect to an employee of a depart17 ment, agency, or instrumentality performing intelligence

18 or counterintelligence functions, if the head of such de19 partment, agency, or instrumentality has determined that

20 filing such a report could endanger the safety of the em21 ployee or compromise an ongoing investigation or intel22 ligence mission.’’.

23 (g) CONFORMING AMENDMENTS.—

24 (1) TO PART D OF TITLE IV OF THE SOCIAL SE25 CURITY ACT.—
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1 (A) Section 454(8)(B) (42 U.S.C.

2 654(8)(B)) is amended to read as follows:

3 ‘‘(B) the Federal Parent Locator Service

4 established under section 453;’’.

5 (B) Section 454(13) (42 U.S.C.654(13)) is

6 amended by inserting ‘‘and provide that infor7 mation requests by parents who are residents of

8 other States be treated with the same priority

9 as requests by parents who are residents of the

10 State submitting the plan’’ before the semi11 colon.

12 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

13 Section 3304(a)(16) of the Internal Revenue Code of

14 1986 is amended—

15 (A) by striking ‘‘Secretary of Health, Edu16 cation, and Welfare’’ each place such term ap17 pears and inserting ‘‘Secretary of Health and

18 Human Services’’;

19 (B) in subparagraph (B), by striking

20 ‘‘such information’’ and all that follows and in21 serting ‘‘information furnished under subpara22 graph (A) or (B) is used only for the purposes

23 authorized under such subparagraph;’’;

24 (C) by striking ‘‘and’’ at the end of sub25 paragraph (A);
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1 (D) by redesignating subparagraph (B) as

2 subparagraph (C); and

3 (E) by inserting after subparagraph (A)

4 the following new subparagraph:

5 ‘‘(B) wage and unemployment compensation in6 formation contained in the records of such agency

7 shall be furnished to the Secretary of Health and

8 Human Services (in accordance with regulations pro9 mulgated by such Secretary) as necessary for the

10 purposes of the National Directory of New Hires es11 tablished under section 453(i) of the Social Security

12 Act, and’’.

13 (3) TO STATE GRANT PROGRAM UNDER TITLE

14 III OF THE SOCIAL SECURITY ACT.—Subsection (h)

15 of section 303 (42 U.S.C. 503) is amended to read

16 as follows:

17 ‘‘(h)(1) The State agency charged with the adminis18 tration of the State law shall, on a reimbursable basis—

19 ‘‘(A) disclose quarterly, to the Secretary of

20 Health and Human Services, wage and claim infor21 mation, as required pursuant to section 453(i)(1),

22 contained in the records of such agency;

23 ‘‘(B) ensure that information provided pursuant

24 to subparagraph (A) meets such standards relating

25 to correctness and verification as the Secretary of
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1 Health and Human Services, with the concurrence

2 of the Secretary of Labor, may find necessary; and

3 ‘‘(C) establish such safeguards as the Secretary

4 of Labor determines are necessary to insure that in5 formation disclosed under subparagraph (A) is used

6 only for purposes of section 453(i)(1) in carrying out

7 the child support enforcement program under title

8 IV.

9 ‘‘(2) Whenever the Secretary of Labor, after reason10 able notice and opportunity for hearing to the State agen11 cy charged with the administration of the State law, finds

12 that there is a failure to comply substantially with the re13 quirements of paragraph (1), the Secretary of Labor shall

14 notify such State agency that further payments will not

15 be made to the State until the Secretary of Labor is satis16 fied that there is no longer any such failure. Until the

17 Secretary of Labor is so satisfied, the Secretary shall

18 make no future certification to the Secretary of the Treas19 ury with respect to the State.

20 ‘‘(3) For purposes of this subsection—

21 ‘‘(A) the term ‘wage information’ means infor22 mation regarding wages paid to an individual, the

23 social security account number of such individual,

24 and the name, address, State, and the Federal em-
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1 ployer identification number of the employer paying

2 such wages to such individual; and

3 ‘‘(B) the term ‘claim information’ means infor4 mation regarding whether an individual is receiving,

5 has received, or has made application for, unemploy6 ment compensation, the amount of any such com7 pensation being received (or to be received by such

8 individual), and the individual’s current (or most re9 cent) home address.’’.

10 (4) DISCLOSURE OF CERTAIN INFORMATION TO

11 AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN12 CIES.—

13 (A) IN GENERAL.—Paragraph (6) of sec14 tion 6103(l) of the Internal Revenue Code of

15 1986 (relating to disclosure of return informa16 tion to Federal, State, and local child support

17 enforcement agencies) is amended by redesig18 nating subparagraph (B) as subparagraph (C)

19 and by inserting after subparagraph (A) the fol20 lowing new subparagraph:

21 ‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—

22 The following information disclosed to any child

23 support enforcement agency under subpara24 graph (A) with respect to any individual with

25 respect to whom child support obligations are
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1 sought to be established or enforced may be dis2 closed by such agency to any agent of such

3 agency which is under contract with such agen4 cy to carry out the purposes described in sub5 paragraph (C):

6 ‘‘(i) The address and social security

7 account number (or numbers) of such indi8 vidual.

9 ‘‘(ii) The amount of any reduction

10 under section 6402(c) (relating to offset of

11 past-due support against overpayments) in

12 any overpayment otherwise payable to such

13 individual.’’

14 (B) CONFORMING AMENDMENTS.—

15 (i) Paragraph (3) of section 6103(a)

16 of such Code is amended by striking

17 ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or

18 (12) of subsection (l)’’.

19 (ii) Subparagraph (C) of section

20 6103(l)(6) of such Code, as redesignated

21 by subsection (a), is amended to read as

22 follows:

23 ‘‘(C) RESTRICTION ON DISCLOSURE.—In24 formation may be disclosed under this para25 graph only for purposes of, and to the extent
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1 necessary in, establishing and collecting child

2 support obligations from, and locating, individ3 uals owing such obligations.’’

4 (iii) The material following subpara5 graph (F) of section 6103(p)(4) of such

6 Code is amended by striking ‘‘subsection

7 (l)(12)(B)’’ and inserting ‘‘paragraph

8 (6)(A) or (12)(B) of subsection (l)’’.

9 (h) REQUIREMENT FOR COOPERATION.—The Sec10 retary of Labor and the Secretary of Health and Human

11 Services shall work jointly to develop cost-effective and ef12 ficient methods of accessing the information in the various

13 State directories of new hires and the National Directory

14 of New Hires as established pursuant to the amendments

15 made by this chapter. In developing these methods the

16 Secretaries shall take into account the impact, including

17 costs, on the States, and shall also consider the need to

18 insure the proper and authorized use of wage record infor19 mation.

20 SEC. 4317. COLLECTION AND USE OF SOCIAL SECURITY

21 NUMBERS FOR USE IN CHILD SUPPORT EN22 FORCEMENT.

23 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

24 U.S.C. 666(a)), as amended by section 4315 of this Act,
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1 is amended by inserting after paragraph (12) the following

2 new paragraph:

3 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM4 BERS IN CERTAIN FAMILY MATTERS.—Procedures

5 requiring that the social security number of—

6 ‘‘(A) any applicant for a professional li7 cense, commercial driver’s license, occupational

8 license, or marriage license be recorded on the

9 application;

10 ‘‘(B) any individual who is subject to a di11 vorce decree, support order, or paternity deter12 mination or acknowledgment be placed in the

13 records relating to the matter; and

14 ‘‘(C) any individual who has died be placed

15 in the records relating to the death and be re16 corded on the death certificate.

17 For purposes of subparagraph (A), if a State allows

18 the use of a number other than the social security

19 number, the State shall so advise any applicants.’’.

20 (b) CONFORMING AMENDMENTS.—Section

21 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

22 section 321(a)(9) of the Social Security Independence and

23 Program Improvements Act of 1994, is amended—

24 (1) in clause (i), by striking ‘‘may require’’ and

25 inserting ‘‘shall require’’;
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1 (2) in clause (ii), by inserting after the 1st sen2 tence the following: ‘‘In the administration of any

3 law involving the issuance of a marriage certificate

4 or license, each State shall require each party named

5 in the certificate or license to furnish to the State

6 (or political subdivision thereof), or any State agen7 cy having administrative responsibility for the law

8 involved, the social security number of the party.’’;

9 (3) in clause (ii), by inserting ‘‘or marriage cer10 tificate’’ after ‘‘Such numbers shall not be recorded

11 on the birth certificate’’.

12 (4) in clause (vi), by striking ‘‘may’’ and insert13 ing ‘‘shall’’; and

14 (5) by adding at the end the following new

15 clauses:

16 ‘‘(x) An agency of a State (or a political subdivision

17 thereof) charged with the administration of any law con18 cerning the issuance or renewal of a license, certificate,

19 permit, or other authorization to engage in a profession,

20 an occupation, or a commercial activity shall require all

21 applicants for issuance or renewal of the license, certifi22 cate, permit, or other authorization to provide the appli23 cant’s social security number to the agency for the purpose

24 of administering such laws, and for the purpose of re-
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1 sponding to requests for information from an agency oper2 ating pursuant to part D of title IV.

3 ‘‘(xi) All divorce decrees, support orders, and pater4 nity determinations issued, and all paternity acknowledg5 ments made, in each State shall include the social security

6 number of each party to the decree, order, determination,

7 or acknowledgment in the records relating to the matter,

8 for the purpose of responding to requests for information

9 from an agency operating pursuant to part D of title IV.’’.

10 CHAPTER 3—STREAMLINING AND

11 UNIFORMITY OF PROCEDURES

12 SEC. 4321. ADOPTION OF UNIFORM STATE LAWS.

13 Section 466 (42 U.S.C. 666) is amended by adding

14 at the end the following new subsection:

15 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

16 ACT.—

17 ‘‘(1) ENACTMENT AND USE.—In order to sat18 isfy section 454(20)(A), on and after January 1,

19 1998, each State must have in effect the Uniform

20 Interstate Family Support Act, as approved by the

21 American Bar Association on February 9, 1993, to22 gether with any amendments officially adopted be23 fore January 1, 1998 by the National Conference of

24 Commissioners on Uniform State Laws.
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1 ‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL

2 RULES OF STATE WHERE EMPLOYEE WORKS.—The

3 State law enacted pursuant to paragraph (1) shall

4 provide that an employer that receives an income

5 withholding order or notice pursuant to section 501

6 of the Uniform Interstate Family Support Act follow

7 the procedural rules that apply with respect to such

8 order or notice under the laws of the State in which

9 the obligor works.’’.

10 SEC. 4322. IMPROVEMENTS TO FULL FAITH AND CREDIT

11 FOR CHILD SUPPORT ORDERS.

12 Section 1738B of title 28, United States Code, is

13 amended—

14 (1) in subsection (a)(2), by striking ‘‘subsection

15 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

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

17 undesignated paragraph the following:

18 ‘‘ ‘child’s home State’ means the State in which a

19 child lived with a parent or a person acting as parent for

20 at least 6 consecutive months immediately preceding the

21 time of filing of a petition or comparable pleading for sup22 port and, if a child is less than 6 months old, the State

23 in which the child lived from birth with any of them. A

24 period of temporary absence of any of them is counted

25 as part of the 6-month period.’’;
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1 (3) in subsection (c), by inserting ‘‘by a court

2 of a State’’ before ‘‘is made’’;

3 (4) in subsection (c)(1), by inserting ‘‘and sub4 sections (e), (f), and (g)’’ after ‘‘located’’;

5 (5) in subsection (d)—

6 (A) by inserting ‘‘individual’’ before ‘‘con7 testant’’; and

8 (B) by striking ‘‘subsection (e)’’ and in9 serting ‘‘subsections (e) and (f)’’;

10 (6) in subsection (e), by striking ‘‘make a modi11 fication of a child support order with respect to a

12 child that is made’’ and inserting ‘‘modify a child

13 support order issued’’;

14 (7) in subsection (e)(1), by inserting ‘‘pursuant

15 to subsection (i)’’ before the semicolon;

16 (8) in subsection (e)(2)—

17 (A) by inserting ‘‘individual’’ before ‘‘con18 testant’’ each place such term appears; and

19 (B) by striking ‘‘to that court’s making the

20 modification and assuming’’ and inserting ‘‘with

21 the State of continuing, exclusive jurisdiction

22 for a court of another State to modify the order

23 and assume’’;

24 (9) by redesignating subsections (f) and (g) as

25 subsections (g) and (h), respectively;
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1 (10) by inserting after subsection (e) the follow2 ing new subsection:

3 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

4 If 1 or more child support orders have been issued with

5 regard to an obligor and a child, a court shall apply the

6 following rules in determining which order to recognize for

7 purposes of continuing, exclusive jurisdiction and enforce8 ment:

9 ‘‘(1) If only 1 court has issued a child support

10 order, the order of that court must be recognized.

11 ‘‘(2) If 2 or more courts have issued child sup12 port orders for the same obligor and child, and only

13 1 of the courts would have continuing, exclusive ju14 risdiction under this section, the order of that court

15 must be recognized.

16 ‘‘(3) If 2 or more courts have issued child sup17 port orders for the same obligor and child, and more

18 than 1 of the courts would have continuing, exclusive

19 jurisdiction under this section, an order issued by a

20 court in the current home State of the child must

21 be recognized, but if an order has not been issued

22 in the current home State of the child, the order

23 most recently issued must be recognized.

24 ‘‘(4) If 2 or more courts have issued child sup25 port orders for the same obligor and child, and none
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1 of the courts would have continuing, exclusive juris2 diction under this section, a court may issue a child

3 support order, which must be recognized.

4 ‘‘(5) The court that has issued an order recog5 nized under this subsection is the court having con6 tinuing, exclusive jurisdiction.’’;

7 (11) in subsection (g) (as so redesignated)—

8 (A) by striking ‘‘PRIOR’’ and inserting

9 ‘‘MODIFIED’’; and

10 (B) by striking ‘‘subsection (e)’’ and in11 serting ‘‘subsections (e) and (f)’’;

12 (12) in subsection (h) (as so redesignated)—

13 (A) in paragraph (2), by inserting ‘‘includ14 ing the duration of current payments and other

15 obligations of support’’ before the comma; and

16 (B) in paragraph (3), by inserting ‘‘arrears

17 under’’ after ‘‘enforce’’; and

18 (13) by adding at the end the following new

19 subsection:

20 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

21 no individual contestant or child residing in the issuing

22 State, the party or support enforcement agency seeking

23 to modify, or to modify and enforce, a child support order

24 issued in another State shall register that order in a State
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1 with jurisdiction over the nonmovant for the purpose of

2 modification.’’.

3 SEC. 4323. ADMINISTRATIVE ENFORCEMENT IN INTER4 STATE CASES.

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

6 sections 4315 and 4317(a) of this Act, is amended by in7 serting after paragraph (13) the following new paragraph:

8 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

9 INTERSTATE CASES.—Procedures under which—

10 ‘‘(A)(i) the State shall respond within 5

11 business days to a request made by another

12 State to enforce a support order; and

13 ‘‘(ii) the term ‘business day’ means a day

14 on which State offices are open for regular

15 business;

16 ‘‘(B) the State may, by electronic or other

17 means, transmit to another State a request for

18 assistance in a case involving the enforcement

19 of a support order, which request—

20 ‘‘(i) shall include such information as

21 will enable the State to which the request

22 is transmitted to compare the information

23 about the case to the information in the

24 data bases of the State; and
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1 ‘‘(ii) shall constitute a certification by

2 the requesting State—

3 ‘‘(I) of the amount of support

4 under the order the payment of which

5 is in arrears; and

6 ‘‘(II) that the requesting State

7 has complied with all procedural due

8 process requirements applicable to the

9 case;

10 ‘‘(C) if the State provides assistance to an11 other State pursuant to this paragraph with re12 spect to a case, neither State shall consider the

13 case to be transferred to the caseload of such

14 other State; and

15 ‘‘(D) the State shall maintain records of—

16 ‘‘(i) the number of such requests for

17 assistance received by the State;

18 ‘‘(ii) the number of cases for which

19 the State collected support in response to

20 such a request; and

21 ‘‘(iii) the amount of such collected

22 support.’’.

23 SEC. 4324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

24 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

25 652(a)) is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (9);

3 (2) by striking the period at the end of para4 graph (10) (as amended by section 4346(a) of this

5 Act) and inserting ‘‘; and’’; and

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

7 paragraph:

8 ‘‘(11) not later than October 1, 1996, after con9 sulting with the State directors of programs under

10 this part, promulgate forms to be used by States in

11 interstate cases for—

12 ‘‘(A) collection of child support through in13 come withholding;

14 ‘‘(B) imposition of liens; and

15 ‘‘(C) administrative subpoenas.’’.

16 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

17 654(9)) is amended—

18 (1) by striking ‘‘and’’ at the end of subpara19 graph (C);

20 (2) by inserting ‘‘and’’ at the end of subpara21 graph (D); and

22 (3) by adding at the end the following new sub23 paragraph:

24 ‘‘(E) not later than March 1, 1997, in

25 using the forms promulgated pursuant to sec-
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1 tion 452(a)(11) for income withholding, imposi2 tion of liens, and issuance of administrative

3 subpoenas in interstate child support cases;’’.

4 SEC. 4325. STATE LAWS PROVIDING EXPEDITED PROCE5 DURES.

6 (a) STATE LAW REQUIREMENTS.—Section 466 (42

7 U.S.C. 666), as amended by section 4314 of this Act, is

8 amended—

9 (1) in subsection (a)(2), by striking the first

10 sentence and inserting the following: ‘‘Expedited ad11 ministrative and judicial procedures (including the

12 procedures specified in subsection (c)) for establish13 ing paternity and for establishing, modifying, and

14 enforcing support obligations.’’; and

15 (2) by inserting after subsection (b) the follow16 ing new subsection:

17 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

18 specified in this subsection are the following:

19 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN20 CY.—Procedures which give the State agency the au21 thority to take the following actions relating to es22 tablishment of paternity or to establishment, modi23 fication, or enforcement of support orders, without

24 the necessity of obtaining an order from any other

25 judicial or administrative tribunal, and to recognize
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1 and enforce the authority of State agencies of other

2 States to take the following actions:

3 ‘‘(A) GENETIC TESTING.—To order genetic

4 testing for the purpose of paternity establish5 ment as provided in section 466(a)(5).

6 ‘‘(B) FINANCIAL OR OTHER INFORMA7 TION.—To subpoena any financial or other in8 formation needed to establish, modify, or en9 force a support order, and to impose penalties

10 for failure to respond to such a subpoena.

11 ‘‘(C) RESPONSE TO STATE AGENCY RE12 QUEST.—To require all entities in the State (in13 cluding for-profit, nonprofit, and governmental

14 employers) to provide promptly, in response to

15 a request by the State agency of that or any

16 other State administering a program under this

17 part, information on the employment, com18 pensation, and benefits of any individual em19 ployed by such entity as an employee or con20 tractor, and to sanction failure to respond to

21 any such request.

22 ‘‘(D) ACCESS TO INFORMATION CON23 TAINED IN CERTAIN RECORDS.—To obtain ac24 cess, subject to safeguards on privacy and infor25 mation security, and subject to the nonliability
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1 of entities that afford such access under this

2 subparagraph, to information contained in the

3 following records (including automated access,

4 in the case of records maintained in automated

5 data bases):

6 ‘‘(i) Records of other State and local

7 government agencies, including—

8 ‘‘(I) vital statistics (including

9 records of marriage, birth, and di10 vorce);

11 ‘‘(II) State and local tax and rev12 enue records (including information

13 on residence address, employer, in14 come and assets);

15 ‘‘(III) records concerning real

16 and titled personal property;

17 ‘‘(IV) records of occupational and

18 professional licenses, and records con19 cerning the ownership and control of

20 corporations, partnerships, and other

21 business entities;

22 ‘‘(V) employment security

23 records;

24 ‘‘(VI) records of agencies admin25 istering public assistance programs;
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1 ‘‘(VII) records of the motor vehi2 cle department; and

3 ‘‘(VIII) corrections records.

4 ‘‘(ii) Certain records held by private

5 entities with respect to individuals who owe

6 or are owed support (or against or with re7 spect to whom a support obligation is

8 sought), consisting of—

9 ‘‘(I) the names and addresses of

10 such individuals and the names and

11 addresses of the employers of such in12 dividuals, as appearing in customer

13 records of public utilities and cable

14 television companies, pursuant to an

15 administrative subpoena authorized by

16 subparagraph (B); and

17 ‘‘(II) information (including in18 formation on assets and liabilities) on

19 such individuals held by financial in20 stitutions.

21 ‘‘(E) CHANGE IN PAYEE.—In cases in

22 which support is subject to an assignment in

23 order to comply with a requirement imposed

24 pursuant to part A or section 1912, or to a re25 quirement to pay through the State disburse-
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1 ment unit established pursuant to section

2 454B, upon providing notice to obligor and obli3 gee, to direct the obligor or other payor to

4 change the payee to the appropriate government

5 entity.

6 ‘‘(F) INCOME WITHHOLDING.—To order

7 income withholding in accordance with sub8 sections (a)(1)(A) and (b) of section 466.

9 ‘‘(G) SECURING ASSETS.—In cases in

10 which there is a support arrearage, to secure

11 assets to satisfy the arrearage by—

12 ‘‘(i) intercepting or seizing periodic or

13 lump-sum payments from—

14 ‘‘(I) a State or local agency, in15 cluding unemployment compensation,

16 workers’ compensation, and other ben17 efits; and

18 ‘‘(II) judgments, settlements, and

19 lotteries;

20 ‘‘(ii) attaching and seizing assets of

21 the obligor held in financial institutions;

22 ‘‘(iii) attaching public and private re23 tirement funds; and

24 ‘‘(iv) imposing liens in accordance

25 with subsection (a)(4) and, in appropriate
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1 cases, to force sale of property and dis2 tribution of proceeds.

3 ‘‘(H) INCREASE MONTHLY PAYMENTS.—

4 For the purpose of securing overdue support, to

5 increase the amount of monthly support pay6 ments to include amounts for arrearages, sub7 ject to such conditions or limitations as the

8 State may provide.

9 Such procedures shall be subject to due process safe10 guards, including (as appropriate) requirements for

11 notice, opportunity to contest the action, and oppor12 tunity for an appeal on the record to an independent

13 administrative or judicial tribunal.

14 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

15 The expedited procedures required under subsection

16 (a)(2) shall include the following rules and author17 ity, applicable with respect to all proceedings to es18 tablish paternity or to establish, modify, or enforce

19 support orders:

20 ‘‘(A) LOCATOR INFORMATION; PRESUMP21 TIONS CONCERNING NOTICE.—Procedures

22 under which—

23 ‘‘(i) each party to any paternity or

24 child support proceeding is required (sub25 ject to privacy safeguards) to file with the
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1 tribunal and the State case registry upon

2 entry of an order, and to update as appro3 priate, information on location and identity

4 of the party, including social security num5 ber, residential and mailing addresses, tele6 phone number, driver’s license number,

7 and name, address, and telephone number

8 of employer; and

9 ‘‘(ii) in any subsequent child support

10 enforcement action between the parties,

11 upon sufficient showing that diligent effort

12 has been made to ascertain the location of

13 such a party, the tribunal may deem State

14 due process requirements for notice and

15 service of process to be met with respect to

16 the party, upon delivery of written notice

17 to the most recent residential or employer

18 address filed with the tribunal pursuant to

19 clause (i).

20 ‘‘(B) STATEWIDE JURISDICTION.—Proce21 dures under which—

22 ‘‘(i) the State agency and any admin23 istrative or judicial tribunal with authority

24 to hear child support and paternity cases
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1 exerts statewide jurisdiction over the par2 ties; and

3 ‘‘(ii) in a State in which orders are is4 sued by courts or administrative tribunals,

5 a case may be transferred between local ju6 risdictions in the State without need for

7 any additional filing by the petitioner, or

8 service of process upon the respondent, to

9 retain jurisdiction over the parties.

10 ‘‘(3) COORDINATION WITH ERISA.—Notwith11 standing subsection (d) of section 514 of the Em12 ployee Retirement Income Security Act of 1974 (re13 lating to effect on other laws), nothing in this sub14 section shall be construed to alter, amend, modify,

15 invalidate, impair, or supersede subsections (a), (b),

16 and (c) of such section 514 as it applies with respect

17 to any procedure referred to in paragraph (1) and

18 any expedited procedure referred to in paragraph

19 (2), except to the extent that such procedure would

20 be consistent with the requirements of section

21 206(d)(3) of such Act (relating to qualified domestic

22 relations orders) or the requirements of section

23 609(a) of such Act (relating to qualified medical

24 child support orders) if the reference in such section

25 206(d)(3) to a domestic relations order and the ref-
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1 erence in such section 609(a) to a medical child sup2 port order were a reference to a support order re3 ferred to in paragraphs (1) and (2) relating to the

4 same matters, respectively.’’.

5 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

6 Section 454A, as added by section 4344(a)(2) and as

7 amended by sections 4311 and 4312(c) of this Act, is

8 amended by adding at the end the following new sub9 section:

10 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

11 The automated system required by this section shall be

12 used, to the maximum extent feasible, to implement the

13 expedited administrative procedures required by section

14 466(c).’’.

15 CHAPTER 4—PATERNITY ESTABLISHMENT

16 SEC. 4331. STATE LAWS CONCERNING PATERNITY ESTAB17 LISHMENT.

18 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

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

20 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES21 TABLISHMENT.—

22 ‘‘(A) ESTABLISHMENT PROCESS AVAIL23 ABLE FROM BIRTH UNTIL AGE 18.—

24 ‘‘(i) Procedures which permit the es25 tablishment of the paternity of a child at
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1 any time before the child attains 18 years

2 of age.

3 ‘‘(ii) As of August 16, 1984, clause (i)

4 shall also apply to a child for whom pater5 nity has not been established or for whom

6 a paternity action was brought but dis7 missed because a statute of limitations of

8 less than 18 years was then in effect in the

9 State.

10 ‘‘(B) PROCEDURES CONCERNING GENETIC

11 TESTING.—

12 ‘‘(i) GENETIC TESTING REQUIRED IN

13 CERTAIN CONTESTED CASES.—Procedures

14 under which the State is required, in a

15 contested paternity case (unless otherwise

16 barred by State law) to require the child

17 and all other parties (other than individ18 uals found under section 454(29) to have

19 good cause and other exceptions for refus20 ing to cooperate) to submit to genetic tests

21 upon the request of any such party, if the

22 request is supported by a sworn statement

23 by the party—

24 ‘‘(I) alleging paternity, and set25 ting forth facts establishing a reason-
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1 able possibility of the requisite sexual

2 contact between the parties; or

3 ‘‘(II) denying paternity, and set4 ting forth facts establishing a reason5 able possibility of the nonexistence of

6 sexual contact between the parties.

7 ‘‘(ii) OTHER REQUIREMENTS.—Proce8 dures which require the State agency, in

9 any case in which the agency orders ge10 netic testing—

11 ‘‘(I) to pay costs of such tests,

12 subject to recoupment (if the State so

13 elects) from the alleged father if pa14 ternity is established; and

15 ‘‘(II) to obtain additional testing

16 in any case if an original test result is

17 contested, upon request and advance

18 payment by the contestant.

19 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL20 EDGMENT.—

21 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce22 dures for a simple civil process for volun23 tarily acknowledging paternity under which

24 the State must provide that, before a

25 mother and a putative father can sign an
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1 acknowledgment of paternity, the mother

2 and the putative father must be given no3 tice, orally and in writing, of the alter4 natives to, the legal consequences of, and

5 the rights (including, if 1 parent is a

6 minor, any rights afforded due to minority

7 status) and responsibilities that arise from,

8 signing the acknowledgment.

9 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

10 Such procedures must include a hospital11 based program for the voluntary acknowl12 edgment of paternity focusing on the pe13 riod immediately before or after the birth

14 of a child.

15 ‘‘(iii) PATERNITY ESTABLISHMENT

16 SERVICES.—

17 ‘‘(I) STATE-OFFERED SERV18 ICES.—Such procedures must require

19 the State agency responsible for main20 taining birth records to offer vol21 untary paternity establishment serv22 ices.

23 ‘‘(II) REGULATIONS.—

24 ‘‘(aa) SERVICES OFFERED

25 BY HOSPITALS AND BIRTH
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1 RECORD AGENCIES.—The Sec2 retary shall prescribe regulations

3 governing voluntary paternity es4 tablishment services offered by

5 hospitals and birth record agen6 cies.

7 ‘‘(bb) SERVICES OFFERED

8 BY OTHER ENTITIES.—The Sec9 retary shall prescribe regulations

10 specifying the types of other enti11 ties that may offer voluntary pa12 ternity establishment services,

13 and governing the provision of

14 such services, which shall include

15 a requirement that such an entity

16 must use the same notice provi17 sions used by, use the same ma18 terials used by, provide the per19 sonnel providing such services

20 with the same training provided

21 by, and evaluate the provision of

22 such services in the same manner

23 as the provision of such services

24 is evaluated by, voluntary pater25 nity establishment programs of
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1 hospitals and birth record agen2 cies.

3 ‘‘(iv) USE OF PATERNITY ACKNOWL4 EDGMENT AFFIDAVIT.—Such procedures

5 must require the State to develop and use

6 an affidavit for the voluntary acknowledg7 ment of paternity which includes the mini8 mum requirements of the affidavit speci9 fied by the Secretary under section

10 452(a)(7) for the voluntary acknowledg11 ment of paternity, and to give full faith

12 and credit to such an affidavit signed in

13 any other State according to its proce14 dures.

15 ‘‘(D) STATUS OF SIGNED PATERNITY AC16 KNOWLEDGMENT.—

17 ‘‘(i) INCLUSION IN BIRTH RECORDS.—

18 Procedures under which the name of the

19 father shall be included on the record of

20 birth of the child of unmarried parents

21 only if—

22 ‘‘(I) the father and mother have

23 signed a voluntary acknowledgment of

24 paternity; or
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1 ‘‘(II) a court or an administrative

2 agency of competent jurisdiction has

3 issued an adjudication of paternity.

4 Nothing in this clause shall preclude a

5 State agency from obtaining an admission

6 of paternity from the father for submission

7 in a judicial or administrative proceeding,

8 or prohibit the issuance of an order in a

9 judicial or administrative proceeding which

10 bases a legal finding of paternity on an ad11 mission of paternity by the father and any

12 other additional showing required by State

13 law.

14 ‘‘(ii) LEGAL FINDING OF PATER15 NITY.—Procedures under which a signed

16 voluntary acknowledgment of paternity is

17 considered a legal finding of paternity,

18 subject to the right of any signatory to re19 scind the acknowledgment within the ear20 lier of—

21 ‘‘(I) 60 days; or

22 ‘‘(II) the date of an administra23 tive or judicial proceeding relating to

24 the child (including a proceeding to
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1 establish a support order) in which

2 the signatory is a party.

3 ‘‘(iii) CONTEST.—Procedures under

4 which, after the 60-day period referred to

5 in clause (ii), a signed voluntary acknowl6 edgment of paternity may be challenged in

7 court only on the basis of fraud, duress, or

8 material mistake of fact, with the burden

9 of proof upon the challenger, and under

10 which the legal responsibilities (including

11 child support obligations) of any signatory

12 arising from the acknowledgment may not

13 be suspended during the challenge, except

14 for good cause shown.

15 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI16 CATION PROCEEDINGS.—Procedures under

17 which judicial or administrative proceedings are

18 not required or permitted to ratify an unchal19 lenged acknowledgment of paternity.

20 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

21 RESULTS.—Procedures—

22 ‘‘(i) requiring the admission into evi23 dence, for purposes of establishing pater24 nity, of the results of any genetic test that

25 is—
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1 ‘‘(I) of a type generally acknowl2 edged as reliable by accreditation bod3 ies designated by the Secretary; and

4 ‘‘(II) performed by a laboratory

5 approved by such an accreditation

6 body;

7 ‘‘(ii) requiring an objection to genetic

8 testing results to be made in writing not

9 later than a specified number of days be10 fore any hearing at which the results may

11 be introduced into evidence (or, at State

12 option, not later than a specified number

13 of days after receipt of the results); and

14 ‘‘(iii) making the test results admissi15 ble as evidence of paternity without the

16 need for foundation testimony or other

17 proof of authenticity or accuracy, unless

18 objection is made.

19 ‘‘(G) PRESUMPTION OF PATERNITY IN

20 CERTAIN CASES.—Procedures which create a re21 buttable or, at the option of the State, conclu22 sive presumption of paternity upon genetic test23 ing results indicating a threshold probability

24 that the alleged father is the father of the child.
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1 ‘‘(H) DEFAULT ORDERS.—Procedures re2 quiring a default order to be entered in a pater3 nity case upon a showing of service of process

4 on the defendant and any additional showing

5 required by State law.

6 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce7 dures providing that the parties to an action to

8 establish paternity are not entitled to a trial by

9 jury.

10 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

11 ON PROBABLE PATERNITY IN CONTESTED

12 CASES.—Procedures which require that a tem13 porary order be issued, upon motion by a party,

14 requiring the provision of child support pending

15 an administrative or judicial determination of

16 parentage, if there is clear and convincing evi17 dence of paternity (on the basis of genetic tests

18 or other evidence).

19 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

20 PATERNITY ESTABLISHMENT COSTS.—Proce21 dures under which bills for pregnancy, child22 birth, and genetic testing are admissible as evi23 dence without requiring third-party foundation

24 testimony, and shall constitute prima facie evi-
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1 dence of amounts incurred for such services or

2 for testing on behalf of the child.

3 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

4 Procedures ensuring that the putative father

5 has a reasonable opportunity to initiate a pater6 nity action.

7 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

8 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

9 RECORDS.—Procedures under which voluntary

10 acknowledgments and adjudications of paternity

11 by judicial or administrative processes are filed

12 with the State registry of birth records for com13 parison with information in the State case reg14 istry.’’.

15 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI16 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

17 amended by inserting ‘‘, and specify the minimum require18 ments of an affidavit to be used for the voluntary acknowl19 edgment of paternity which shall include the social secu20 rity number of each parent and, after consultation with

21 the States, other common elements as determined by such

22 designee’’ before the semicolon.

23 (c) CONFORMING AMENDMENT.—Section 468 (42

24 U.S.C. 668) is amended by striking ‘‘a simple civil process

25 for voluntarily acknowledging paternity and’’.
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1 SEC. 4332. OUTREACH FOR VOLUNTARY PATERNITY ESTAB2 LISHMENT.

3 Section 454(23) (42 U.S.C. 654(23)) is amended by

4 inserting ‘‘and will publicize the availability and encourage

5 the use of procedures for voluntary establishment of pater6 nity and child support by means the State deems appro7 priate’’ before the semicolon.

8 SEC. 4333. COOPERATION BY APPLICANTS FOR AND RECIPI9 ENTS OF PART A ASSISTANCE.

10 Section 454 (42 U.S.C. 654), as amended by sections

11 4301(b), 4303(a), 4312(a), and 4313(a) of this Act, is

12 amended—

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

14 (27);

15 (2) by striking the period at the end of para16 graph (28) and inserting ‘‘; and’’; and

17 (3) by inserting after paragraph (28) the fol18 lowing new paragraph:

19 ‘‘(29) provide that the State agency responsible

20 for administering the State plan—

21 ‘‘(A) shall make the determination (and re22 determination at appropriate intervals) as to

23 whether an individual who has applied for or is

24 receiving assistance under the State program

25 funded under part A of this title or the State

26 program under title XIX is cooperating in good
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1 faith with the State in establishing the pater2 nity of, or in establishing, modifying, or enforc3 ing a support order for, any child of the individ4 ual by providing the State agency with the

5 name of, and such other information as the

6 State agency may require with respect to, the

7 noncustodial parent of the child, subject to good

8 cause and other exceptions which—

9 ‘‘(i) shall be defined, taking into ac10 count the best interests of the child, and

11 ‘‘(ii) shall be applied in each case,

12 by, at the option of the State, the State agency

13 administering the State program under part A,

14 this part, or title XIX;

15 ‘‘(B) shall require the individual to supply

16 additional necessary information and appear at

17 interviews, hearings, and legal proceedings;

18 ‘‘(C) shall require the individual and the

19 child to submit to genetic tests pursuant to ju20 dicial or administrative order;

21 ‘‘(D) may request that the individual sign

22 a voluntary acknowledgment of paternity, after

23 notice of the rights and consequences of such

24 an acknowledgment, but may not require the in25 dividual to sign an acknowledgment or other-
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1 wise relinquish the right to genetic tests as a

2 condition of cooperation and eligibility for as3 sistance under the State program funded under

4 part A, or the State program under title XIX;

5 and

6 ‘‘(E) shall promptly notify the individual,

7 the State agency administering the State pro8 gram funded under part A, and the State agen9 cy administering the State program under title

10 XIX, of each such determination, and if non11 cooperation is determined, the basis therefor.’’.

12 CHAPTER 5—PROGRAM ADMINISTRATION

13 AND FUNDING

14 SEC. 4341. PERFORMANCE-BASED INCENTIVES AND PEN15 ALTIES.

16 (a) DEVELOPMENT OF NEW SYSTEM.—The Sec17 retary of Health and Human Services, in consultation with

18 State directors of programs under part D of title IV of

19 the Social Security Act, shall develop a new incentive sys20 tem to replace, in a revenue neutral manner, the system

21 under section 458 of such Act. The new system shall pro22 vide additional payments to any State based on such

23 State’s performance under such a program. Not later than

24 November 1, 1996, the Secretary shall report on the new

25 system to the Committee on Ways and Means of the
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1 House of Representatives and the Committee on Finance

2 of the Senate.

3 (b) CONFORMING AMENDMENTS TO PRESENT SYS4 TEM.—Section 458 (42 U.S.C. 658) is amended—

5 (1) in subsection (a), by striking ‘‘aid to fami6 lies with dependent children under a State plan ap7 proved under part A of this title’’ and inserting ‘‘as8 sistance under a program funded under part A’’;

9 (2) in subsection (b)(1)(A), by striking ‘‘section

10 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’;

11 (3) in subsections (b) and (c)—

12 (A) by striking ‘‘AFDC collections’’ each

13 place it appears and inserting ‘‘title IV–A col14 lections’’, and

15 (B) by striking ‘‘non-AFDC collections’’

16 each place it appears and inserting ‘‘non-title

17 IV–A collections’’; and

18 (4) in subsection (c), by striking ‘‘combined

19 AFDC/non-AFDC administrative costs’’ both places

20 it appears and inserting ‘‘combined title IV–A/non21 title IV–A administrative costs’’.

22 (c) CALCULATION OF PATERNITY ESTABLISHMENT

23 PERCENTAGE.—
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1 (1) Section 452(g)(1)(A) (42 U.S.C.

2 652(g)(1)(A)) is amended by striking ‘‘75’’ and in3 serting ‘‘90’’.

4 (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

5 amended—

6 (A) by redesignating subparagraphs (B)

7 through (E) as subparagraphs (C) through (F),

8 respectively, and by inserting after subpara9 graph (A) the following new subparagraph:

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

11 percentage of not less than 75 percent but less than

12 90 percent for such fiscal year, the paternity estab13 lishment percentage of the State for the immediately

14 preceding fiscal year plus 2 percentage points;’’; and

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

16 flush sentence:

17 ‘‘In determining compliance under this section, a State

18 may use as its paternity establishment percentage either

19 the State’s IV–D paternity establishment percentage (as

20 defined in paragraph (2)(A)) or the State’s statewide pa21 ternity establishment percentage (as defined in paragraph

22 (2)(B)).’’.

23 (3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

24 amended—

25 (A) in subparagraph (A)—
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1 (i) in the matter preceding clause

2 (i)—

3 (I) by striking ‘‘paternity estab4 lishment percentage’’ and inserting

5 ‘‘IV–D paternity establishment per6 centage’’; and

7 (II) by striking ‘‘(or all States, as

8 the case may be)’’; and

9 (ii) by striking ‘‘and’’ at the end; and

10 (B) by redesignating subparagraph (B) as

11 subparagraph (C) and by inserting after sub12 paragraph (A) the following new subparagraph:

13 ‘‘(B) the term ‘statewide paternity establish14 ment percentage’ means, with respect to a State for

15 a fiscal year, the ratio (expressed as a percentage)

16 that the total number of minor children—

17 ‘‘(i) who have been born out of wedlock,

18 and

19 ‘‘(ii) the paternity of whom has been estab20 lished or acknowledged during the fiscal year,

21 bears to the total number of children born out of

22 wedlock during the preceding fiscal year; and’’.

23 (4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

24 amended—
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1 (A) by striking subparagraph (A) and re2 designating subparagraphs (B) and (C) as sub3 paragraphs (A) and (B), respectively; and

4 (B) in subparagraph (A) (as so redesig5 nated), by striking ‘‘the percentage of children

6 born out-of-wedlock in a State’’ and inserting

7 ‘‘the percentage of children in a State who are

8 born out of wedlock or for whom support has

9 not been established’’.

10 (d) EFFECTIVE DATES.—

11 (1) INCENTIVE ADJUSTMENTS.—

12 (A) IN GENERAL.—The system developed

13 under subsection (a) and the amendments made

14 by subsection (b) shall become effective on Oc15 tober 1, 1998, except to the extent provided in

16 subparagraph (B).

17 (B) APPLICATION OF SECTION 458.—Sec18 tion 458 of the Social Security Act, as in effect

19 on the day before the date of the enactment of

20 this section, shall be effective for purposes of

21 incentive payments to States for fiscal years be22 fore fiscal year 1999.

23 (2) PENALTY REDUCTIONS.—The amendments

24 made by subsection (c) shall become effective with
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1 respect to calendar quarters beginning on or after

2 the date of the enactment of this Act.

3 SEC. 4342. FEDERAL AND STATE REVIEWS AND AUDITS.

4 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

5 U.S.C. 654) is amended—

6 (1) in paragraph (14), by striking ‘‘(14)’’ and

7 inserting ‘‘(14)(A)’’;

8 (2) by redesignating paragraph (15) as sub9 paragraph (B) of paragraph (14); and

10 (3) by inserting after paragraph (14) the fol11 lowing new paragraph:

12 ‘‘(15) provide for—

13 ‘‘(A) a process for annual reviews of and

14 reports to the Secretary on the State program

15 operated under the State plan approved under

16 this part, including such information as may be

17 necessary to measure State compliance with

18 Federal requirements for expedited procedures,

19 using such standards and procedures as are re20 quired by the Secretary, under which the State

21 agency will determine the extent to which the

22 program is operated in compliance with this

23 part; and

24 ‘‘(B) a process of extracting from the auto25 mated data processing system required by para-
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1 graph (16) and transmitting to the Secretary

2 data and calculations concerning the levels of

3 accomplishment (and rates of improvement)

4 with respect to applicable performance indica5 tors (including paternity establishment percent6 ages) to the extent necessary for purposes of

7 sections 452(g) and 458;’’.

8 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

9 U.S.C. 652(a)(4)) is amended to read as follows:

10 ‘‘(4)(A) review data and calculations transmit11 ted by State agencies pursuant to section

12 454(15)(B) on State program accomplishments with

13 respect to performance indicators for purposes of

14 subsection (g) of this section and section 458;

15 ‘‘(B) review annual reports submitted pursuant

16 to section 454(15)(A) and, as appropriate, provide

17 to the State comments, recommendations for addi18 tional or alternative corrective actions, and technical

19 assistance; and

20 ‘‘(C) conduct audits, in accordance with the

21 Government auditing standards of the Comptroller

22 General of the United States—

23 ‘‘(i) at least once every 3 years (or more

24 frequently, in the case of a State which fails to

25 meet the requirements of this part concerning
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1 performance standards and reliability of pro2 gram data) to assess the completeness, reliabil3 ity, and security of the data and the accuracy

4 of the reporting systems used in calculating

5 performance indicators under subsection (g) of

6 this section and section 458;

7 ‘‘(ii) of the adequacy of financial manage8 ment of the State program operated under the

9 State plan approved under this part, including

10 assessments of—

11 ‘‘(I) whether Federal and other funds

12 made available to carry out the State pro13 gram are being appropriately expended,

14 and are properly and fully accounted for;

15 and

16 ‘‘(II) whether collections and disburse17 ments of support payments are carried out

18 correctly and are fully accounted for; and

19 ‘‘(iii) for such other purposes as the Sec20 retary may find necessary;’’.

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

22 this section shall be effective with respect to calendar

23 quarters beginning 12 months or more after the date of

24 the enactment of this Act.
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1 SEC. 4343. REQUIRED REPORTING PROCEDURES.

2 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

3 652(a)(5)) is amended by inserting ‘‘, and establish proce4 dures to be followed by States for collecting and reporting

5 information required to be provided under this part, and

6 establish uniform definitions (including those necessary to

7 enable the measurement of State compliance with the re8 quirements of this part relating to expedited processes) to

9 be applied in following such procedures’’ before the semi10 colon.

11 (b) STATE PLAN REQUIREMENT.—Section 454 (42

12 U.S.C. 654), as amended by sections 4301(b), 4303(a),

13 4312(a), 4313(a), and 4333 of this Act, is amended—

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

15 (28);

16 (2) by striking the period at the end of para17 graph (29) and inserting ‘‘; and’’; and

18 (3) by adding after paragraph (29) the follow19 ing new paragraph:

20 ‘‘(30) provide that the State shall use the defi21 nitions established under section 452(a)(5) in col22 lecting and reporting information as required under

23 this part.’’.

24 SEC. 4344. AUTOMATED DATA PROCESSING REQUIRE25 MENTS.

26 (a) REVISED REQUIREMENTS.—
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1 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

2 654(16)) is amended—

3 (A) by striking ‘‘, at the option of the

4 State,’’;

5 (B) by inserting ‘‘and operation by the

6 State agency’’ after ‘‘for the establishment’’;

7 (C) by inserting ‘‘meeting the requirements

8 of section 454A’’ after ‘‘information retrieval

9 system’’;

10 (D) by striking ‘‘in the State and localities

11 thereof, so as (A)’’ and inserting ‘‘so as’’;

12 (E) by striking ‘‘(i)’’; and

13 (F) by striking ‘‘(including’’ and all that

14 follows and inserting a semicolon.

15 (2) AUTOMATED DATA PROCESSING.—Part D of

16 title IV (42 U.S.C. 651–669) is amended by insert17 ing after section 454 the following new section:

18 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

19 ‘‘(a) IN GENERAL.—In order for a State to meet the

20 requirements of this section, the State agency administer21 ing the State program under this part shall have in oper22 ation a single statewide automated data processing and

23 information retrieval system which has the capability to

24 perform the tasks specified in this section with the fre25 quency and in the manner required by or under this part.
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1 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys2 tem required by this section shall perform such functions

3 as the Secretary may specify relating to management of

4 the State program under this part, including—

5 ‘‘(1) controlling and accounting for use of Fed6 eral, State, and local funds in carrying out the pro7 gram; and

8 ‘‘(2) maintaining the data necessary to meet

9 Federal reporting requirements under this part on a

10 timely basis.

11 ‘‘(c) CALCULATION OF PERFORMANCE INDICA12 TORS.—In order to enable the Secretary to determine the

13 incentive payments and penalty adjustments required by

14 sections 452(g) and 458, the State agency shall—

15 ‘‘(1) use the automated system—

16 ‘‘(A) to maintain the requisite data on

17 State performance with respect to paternity es18 tablishment and child support enforcement in

19 the State; and

20 ‘‘(B) to calculate the paternity establish21 ment percentage for the State for each fiscal

22 year; and

23 ‘‘(2) have in place systems controls to ensure

24 the completeness and reliability of, and ready access

25 to, the data described in paragraph (1)(A), and the
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1 accuracy of the calculations described in paragraph

2 (1)(B).

3 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

4 State agency shall have in effect safeguards on the integ5 rity, accuracy, and completeness of, access to, and use of

6 data in the automated system required by this section,

7 which shall include the following (in addition to such other

8 safeguards as the Secretary may specify in regulations):

9 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

10 policies concerning access to data by State agency

11 personnel, and sharing of data with other persons,

12 which—

13 ‘‘(A) permit access to and use of data only

14 to the extent necessary to carry out the State

15 program under this part; and

16 ‘‘(B) specify the data which may be used

17 for particular program purposes, and the per18 sonnel permitted access to such data.

19 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

20 (such as passwords or blocking of fields) to ensure

21 strict adherence to the policies described in para22 graph (1).

23 ‘‘(3) MONITORING OF ACCESS.—Routine mon24 itoring of access to and use of the automated sys25 tem, through methods such as audit trails and feed-
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1 back mechanisms, to guard against and promptly

2 identify unauthorized access or use.

3 ‘‘(4) TRAINING AND INFORMATION.—Proce4 dures to ensure that all personnel (including State

5 and local agency staff and contractors) who may

6 have access to or be required to use confidential pro7 gram data are informed of applicable requirements

8 and penalties (including those in section 6103 of the

9 Internal Revenue Code of 1986), and are adequately

10 trained in security procedures.

11 ‘‘(5) PENALTIES.—Administrative penalties (up

12 to and including dismissal from employment) for un13 authorized access to, or disclosure or use of, con14 fidential data.’’.

15 (3) REGULATIONS.—The Secretary of Health

16 and Human Services shall prescribe final regulations

17 for implementation of section 454A of the Social Se18 curity Act not later than 2 years after the date of

19 the enactment of this Act.

20 (4) IMPLEMENTATION TIMETABLE.—Section

21 454(24) (42 U.S.C. 654(24)), as amended by section

22 4303(a)(1) of this Act, is amended to read as fol23 lows:
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1 ‘‘(24) provide that the State will have in effect

2 an automated data processing and information re3 trieval system—

4 ‘‘(A) by October 1, 1997, which meets all

5 requirements of this part which were enacted on

6 or before the date of enactment of the Family

7 Support Act of 1988, and

8 ‘‘(B) by October 1, 1999, which meets all

9 requirements of this part enacted on or before

10 the date of the enactment of the Personal Re11 sponsibility and Work Opportunity Act of 1996,

12 except that such deadline shall be extended by

13 1 day for each day (if any) by which the Sec14 retary fails to meet the deadline imposed by

15 section 4344(a)(3) of the Personal Responsibil16 ity and Work Opportunity Act of 1996;’’.

17 (b) SPECIAL FEDERAL MATCHING RATE FOR DE18 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

19 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

20 655(a)) is amended—

21 (A) in paragraph (1)(B)—

22 (i) by striking ‘‘90 percent’’ and in23 serting ‘‘the percent specified in paragraph

24 (3)’’;

25 (ii) by striking ‘‘so much of’’; and
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1 (iii) by striking ‘‘which the Secretary’’

2 and all that follows and inserting ‘‘, and’’;

3 and

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

5 paragraph:

6 ‘‘(3)(A) The Secretary shall pay to each State, for

7 each quarter in fiscal years 1996 and 1997, 90 percent

8 of so much of the State expenditures described in para9 graph (1)(B) as the Secretary finds are for a system meet10 ing the requirements specified in section 454(16) (as in

11 effect on September 30, 1995) but limited to the amount

12 approved for States in the advance planning documents

13 of such States submitted on or before September 30,

14 1995.

15 ‘‘(B)(i) The Secretary shall pay to each State, for

16 each quarter in fiscal years 1996 through 2001, the per17 centage specified in clause (ii) of so much of the State

18 expenditures described in paragraph (1)(B) as the Sec19 retary finds are for a system meeting the requirements

20 of sections 454(16) and 454A.

21 ‘‘(ii) The percentage specified in this clause is 80 per22 cent.’’.

23 (2) TEMPORARY LIMITATION ON PAYMENTS

24 UNDER SPECIAL FEDERAL MATCHING RATE.—
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1 (A) IN GENERAL.—The Secretary of

2 Health and Human Services may not pay more

3 than $400,000,000 in the aggregate under sec4 tion 455(a)(3)(B) of the Social Security Act for

5 fiscal years 1996 through 2001.

6 (B) ALLOCATION OF LIMITATION AMONG

7 STATES.—The total amount payable to a State

8 under section 455(a)(3)(B) of such Act for fis9 cal years 1996 through 2001 shall not exceed

10 the limitation determined for the State by the

11 Secretary of Health and Human Services in

12 regulations.

13 (C) ALLOCATION FORMULA.—The regula14 tions referred to in subparagraph (B) shall pre15 scribe a formula for allocating the amount spec16 ified in subparagraph (A) among States with

17 plans approved under part D of title IV of the

18 Social Security Act, which shall take into ac19 count—

20 (i) the relative size of State caseloads

21 under such part; and

22 (ii) the level of automation needed to

23 meet the automated data processing re24 quirements of such part.
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1 (c) CONFORMING AMENDMENT.—Section 123(c) of

2 the Family Support Act of 1988 (102 Stat. 2352; Public

3 Law 100–485) is repealed.

4 SEC. 4345. TECHNICAL ASSISTANCE.

5 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

6 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE7 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI8 CANCE.—Section 452 (42 U.S.C. 652) is amended by add9 ing at the end the following new subsection:

10 ‘‘(j) Out of any money in the Treasury of the United

11 States not otherwise appropriated, there is hereby appro12 priated to the Secretary for each fiscal year an amount

13 equal to 1 percent of the total amount paid to the Federal

14 Government pursuant to section 457(a) during the imme15 diately preceding fiscal year (as determined on the basis

16 of the most recent reliable data available to the Secretary

17 as of the end of the 3rd calendar quarter following the

18 end of such preceding fiscal year), to cover costs incurred

19 by the Secretary for—

20 ‘‘(1) information dissemination and technical

21 assistance to States, training of State and Federal

22 staff, staffing studies, and related activities needed

23 to improve programs under this part (including tech24 nical assistance concerning State automated systems

25 required by this part); and
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1 ‘‘(2) research, demonstration, and special

2 projects of regional or national significance relating

3 to the operation of State programs under this part.

4 The amount appropriated under this subsection shall re5 main available until expended.’’.

6 (b) OPERATION OF FEDERAL PARENT LOCATOR

7 SERVICE.—Section 453 (42 U.S.C. 653), as amended by

8 section 4316 of this Act, is amended by adding at the end

9 the following new subsection:

10 ‘‘(o) RECOVERY OF COSTS.—Out of any money in the

11 Treasury of the United States not otherwise appropriated,

12 there is hereby appropriated to the Secretary for each fis13 cal year an amount equal to 2 percent of the total amount

14 paid to the Federal Government pursuant to section

15 457(a) during the immediately preceding fiscal year (as

16 determined on the basis of the most recent reliable data

17 available to the Secretary as of the end of the 3rd calendar

18 quarter following the end of such preceding fiscal year),

19 to cover costs incurred by the Secretary for operation of

20 the Federal Parent Locator Service under this section, to

21 the extent such costs are not recovered through user

22 fees.’’.

23 SEC. 4346. REPORTS AND DATA COLLECTION BY THE SEC24 RETARY.

25 (a) ANNUAL REPORT TO CONGRESS.—
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1 (1) Section 452(a)(10)(A) (42 U.S.C.

2 652(a)(10)(A)) is amended—

3 (A) by striking ‘‘this part;’’ and inserting

4 ‘‘this part, including—’’; and

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

6 clauses:

7 ‘‘(i) the total amount of child support

8 payments collected as a result of services

9 furnished during the fiscal year to individ10 uals receiving services under this part;

11 ‘‘(ii) the cost to the States and to the

12 Federal Government of so furnishing the

13 services; and

14 ‘‘(iii) the number of cases involving

15 families—

16 ‘‘(I) who became ineligible for as17 sistance under State programs funded

18 under part A during a month in the

19 fiscal year; and

20 ‘‘(II) with respect to whom a

21 child support payment was received in

22 the month;’’.

23 (2) Section 452(a)(10)(C) (42 U.S.C.

24 652(a)(10)(C)) is amended—

25 (A) in the matter preceding clause (i)—
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1 (i) by striking ‘‘with the data required

2 under each clause being separately stated

3 for cases’’ and inserting ‘‘separately stated

4 for cases’’;

5 (ii) by striking ‘‘cases where the child

6 was formerly receiving’’ and inserting ‘‘or

7 formerly received’’;

8 (iii) by inserting ‘‘or 1912’’ after

9 ‘‘471(a)(17)’’; and

10 (iv) by inserting ‘‘for’’ before ‘‘all

11 other’’;

12 (B) in each of clauses (i) and (ii), by strik13 ing ‘‘, and the total amount of such obliga14 tions’’;

15 (C) in clause (iii), by striking ‘‘described

16 in’’ and all that follows and inserting ‘‘in which

17 support was collected during the fiscal year;’’;

18 (D) by striking clause (iv); and

19 (E) by redesignating clause (v) as clause

20 (vii), and inserting after clause (iii) the follow21 ing new clauses:

22 ‘‘(iv) the total amount of support col23 lected during such fiscal year and distrib24 uted as current support;
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1 ‘‘(v) the total amount of support col2 lected during such fiscal year and distrib3 uted as arrearages;

4 ‘‘(vi) the total amount of support due

5 and unpaid for all fiscal years; and’’.

6 (3) Section 452(a)(10)(G) (42 U.S.C.

7 652(a)(10)(G)) is amended by striking ‘‘on the use

8 of Federal courts and’’.

9 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

10 is amended—

11 (A) in subparagraph (H), by striking

12 ‘‘and’’;

13 (B) in subparagraph (I), by striking the

14 period and inserting ‘‘; and’’; and

15 (C) by inserting after subparagraph (I) the

16 following new subparagraph:

17 ‘‘(J) compliance, by State, with the stand18 ards established pursuant to subsections (h)

19 and (i).’’.

20 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10))

21 is amended by striking ‘‘The information contained

22 in any such report under subpargraph (A)’’ and all

23 that follows through ‘‘the State plan approved under

24 part A.’’.
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1 (b) EFFECTIVE DATE.—The amendments made by

2 subsection (a) shall be effective with respect to fiscal year

3 1997 and succeeding fiscal years.

4 SEC. 4347. CHILD SUPPORT DELINQUENCY PENALTY.

5 Section 454 (42 U.S.C. 654), as amended by sections

6 4301(b), 4303(a), 4312(a), 4313(a), 4333, and 4343(b)

7 of this Act, is amended—

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

9 (29);

10 (2) by striking the period at the end of para11 graph (30) and inserting ‘‘; and’’; and

12 (3) by adding after paragraph (30) the follow13 ing new paragraph:

14 ‘‘(31) provide that the State shall have in effect

15 such laws and procedures as may be necessary to en16 sure that—

17 ‘‘(A) any person who, at the end of any

18 calendar year, is delinquent in the payment of

19 child support is civilly liable to the State for a

20 penalty in an amount equal to 10 percent of the

21 amount of the delinquency (excluding any delin22 quency of the person with respect to which a

23 penalty has been imposed pursuant to this

24 paragraph for a prior calendar year); and
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1 ‘‘(B) the State shall apply amounts col2 lected from a person described in subparagraph

3 (A) to the payment of penalties imposed pursu4 ant to subparagraph (A), after all child support

5 delinquencies of the person have been extin6 guished and the person has repaid the State for

7 all public assistance provided to the person

8 owed such support, shall remit to the Federal

9 Government an amount equal to 50 percent of

10 the amount applied to the payment of such pen11 alties, and shall permit the county office of the

12 State agency administering the State program

13 under this part which collected such amounts to

14 retain an amount equal to 5 percent of the

15 amount applied to the payment of such pen16 alties.’’

17 CHAPTER 6—ESTABLISHMENT AND

18 MODIFICATION OF SUPPORT ORDERS

19 SEC. 4351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST20 MENT OF CHILD SUPPORT ORDERS.

21 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend22 ed to read as follows:

23 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

24 ORDERS UPON REQUEST.—
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1 ‘‘(A) IN GENERAL.—Procedures under

2 which—

3 ‘‘(i) upon the request of either parent,

4 the State shall review and, as appropriate,

5 adjust each support order being enforced

6 under this part, taking into account the

7 best interests of the child involved; and

8 ‘‘(ii) upon the State’s own initiative,

9 the State may review and, if appropriate,

10 adjust any support order being enforced

11 under this part with respect to which there

12 is an assignment under part A, taking into

13 account the best interests of the child in14 volved. Such procedures shall provide the

15 following:

16 ‘‘(B) METHODS OF ADJUSTMENT.—Such

17 procedures shall provide that the State may

18 elect to review and, if appropriate, adjust an

19 order—

20 ‘‘(i) by reviewing and, if appropriate,

21 adjusting the order in accordance with the

22 guidelines established pursuant to section

23 467(a) if the amount of the child support

24 award under the order differs from the
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1 amount that would be awarded in accord2 ance with the guidelines;

3 ‘‘(ii) by applying a cost-of-living ad4 justment to the order in accordance with a

5 formula developed by the State and permit

6 either party to contest the adjustment,

7 within 30 days after the date of the notice

8 of the adjustment, by making a request for

9 review and, if appropriate, adjustment of

10 the order in accordance with the child sup11 port guidelines established pursuant to sec12 tion 467(a); or

13 ‘‘(iii) by using automated methods

14 (including automated comparisons with

15 wage or State income tax data) to identify

16 orders eligible for review, conduct the re17 view, identify orders eligible for adjust18 ment, and apply the appropriate adjust19 ment to the orders eligible for adjustment

20 under the threshold established by the

21 State.

22 ‘‘(C) NO PROOF OF CHANGE IN CIR23 CUMSTANCES NECESSARY.—Such procedures

24 shall provide that any adjustment under this

25 paragraph shall be made without a requirement
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1 for proof or showing of a change in cir2 cumstances.

3 ‘‘(D) NOTICE OF RIGHT TO REVIEW.—

4 Such procedures shall require the State to pro5 vide notice not less than once every 3 years to

6 the parents subject to an order being enforced

7 under this part informing them of their right to

8 request the State to review and, if appropriate,

9 adjust the order pursuant to this paragraph.

10 The notice may be included in the order.’’.

11 SEC. 4352. FURNISHING CONSUMER REPORTS FOR CER12 TAIN PURPOSES RELATING TO CHILD SUP13 PORT.

14 Section 604 of the Fair Credit Reporting Act (15

15 U.S.C. 1681b) is amended by adding at the end the follow16 ing new paragraphs:

17 ‘‘(4) In response to a request by the head of a State

18 or local child support enforcement agency (or a State or

19 local government official authorized by the head of such

20 an agency), if the person making the request certifies to

21 the consumer reporting agency that—

22 ‘‘(A) the consumer report is needed for the pur23 pose of establishing an individual’s capacity to make

24 child support payments or determining the appro25 priate level of such payments;
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1 ‘‘(B) the paternity of the consumer for the child

2 to which the obligation relates has been established

3 or acknowledged by the consumer in accordance with

4 State laws under which the obligation arises (if re5 quired by those laws);

6 ‘‘(C) the person has provided at least 10 days’

7 prior notice to the consumer whose report is re8 quested, by certified or registered mail to the last

9 known address of the consumer, that the report will

10 be requested; and

11 ‘‘(D) the consumer report will be kept confiden12 tial, will be used solely for a purpose described in

13 subparagraph (A), and will not be used in connec14 tion with any other civil, administrative, or criminal

15 proceeding, or for any other purpose.

16 ‘‘(5) To an agency administering a State plan under

17 section 454 of the Social Security Act (42 U.S.C. 654)

18 for use to set an initial or modified child support award.’’.

19 SEC. 4353. NONLIABILITY FOR FINANCIAL INSTITUTIONS

20 PROVIDING FINANCIAL RECORDS TO STATE

21 CHILD SUPPORT ENFORCEMENT AGENCIES

22 IN CHILD SUPPORT CASES.

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. NONLIABILITY FOR FINANCIAL INSTITUTIONS

2 PROVIDING FINANCIAL RECORDS TO STATE

3 CHILD SUPPORT ENFORCEMENT AGENCIES

4 IN CHILD SUPPORT CASES.

5 ‘‘(a) IN GENERAL.—Notwithstanding any other pro6 vision of Federal or State law, a financial institution shall

7 not be liable under any Federal or State law to any person

8 for disclosing any financial record of an individual to a

9 State child support enforcement agency attempting to es10 tablish, modify, or enforce a child support obligation of

11 such individual.

12 ‘‘(b) PROHIBITION OF DISCLOSURE OF FINANCIAL

13 RECORD OBTAINED BY STATE CHILD SUPPORT EN14 FORCEMENT AGENCY.—A State child support enforcement

15 agency which obtains a financial record of an individual

16 from a financial institution pursuant to subsection (a)

17 may disclose such financial record only for the purpose

18 of, and to the extent necessary in, establishing, modifying,

19 or enforcing a child support obligation of such individual.

20 ‘‘(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO21 SURE.—

22 ‘‘(1) DISCLOSURE BY STATE OFFICER OR EM23 PLOYEE.—If any person knowingly, or by reason of

24 negligence, discloses a financial record of an individ25 ual in violation of subsection (b), such individual
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1 may bring a civil action for damages against such

2 person in a district court of the United States.

3 ‘‘(2) NO LIABILITY FOR GOOD FAITH BUT ER4 RONEOUS INTERPRETATION.—No liability shall arise

5 under this subsection with respect to any disclosure

6 which results from a good faith, but erroneous, in7 terpretation of subsection (b).

8 ‘‘(3) DAMAGES.—In any action brought under

9 paragraph (1), upon a finding of liability on the part

10 of the defendant, the defendant shall be liable to the

11 plaintiff in an amount equal to the sum of—

12 ‘‘(A) the greater of—

13 ‘‘(i) $1,000 for each act of unauthor14 ized disclosure of a financial record with

15 respect to which such defendant is found

16 liable; or

17 ‘‘(ii) the sum of—

18 ‘‘(I) the actual damages sus19 tained by the plaintiff as a result of

20 such unauthorized disclosure; plus

21 ‘‘(II) in the case of a willful dis22 closure or a disclosure which is the re23 sult of gross negligence, punitive dam24 ages; plus
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1 ‘‘(B) the costs (including attorney’s fees)

2 of the action.

3 ‘‘(d) DEFINITIONS.—For purposes of this section—

4 ‘‘(1) FINANCIAL INSTITUTION.—The term ‘fi5 nancial institution’ means—

6 ‘‘(A) a depository institution, as defined in

7 section 3(c) of the Federal Deposit Insurance

8 Act (12 U.S.C. 1813(c));

9 ‘‘(B) an institution-affiliated party, as de10 fined in section 3(u) of such Act (12 U.S.C.

11 1813(u));

12 ‘‘(C) any Federal credit union or State

13 credit union, as defined in section 101 of the

14 Federal Credit Union Act (12 U.S.C. 1752), in15 cluding an institution-affiliated party of such a

16 credit union, as defined in section 206(r) of

17 such Act (12 U.S.C. 1786(r)); and

18 ‘‘(D) any benefit association, insurance

19 company, safe deposit company, money-market

20 mutual fund, or similar entity authorized to do

21 business in the State.

22 ‘‘(2) FINANCIAL RECORD.—The term ‘financial

23 record’ has the meaning given such term in section

24 1101 of the Right to Financial Privacy Act of 1978

25 (12 U.S.C. 3401).’’.
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1 CHAPTER 7—ENFORCEMENT OF SUPPORT

2 ORDERS

3 SEC. 4361. INTERNAL REVENUE SERVICE COLLECTION OF

4 ARREARAGES.

5 (a) COLLECTION OF FEES.—Section 6305(a) of the

6 Internal Revenue Code of 1986 (relating to collection of

7 certain liability) is amended—

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

9 (3);

10 (2) by striking the period at the end of para11 graph (4) and inserting ‘‘, and’’;

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

13 paragraph:

14 ‘‘(5) no additional fee may be assessed for ad15 justments to an amount previously certified pursu16 ant to such section 452(b) with respect to the same

17 obligor.’’; and

18 (4) by striking ‘‘Secretary of Health, Edu19 cation, and Welfare’’ each place it appears and in20 serting ‘‘Secretary of Health and Human Services’’.

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

22 this section shall become effective October 1, 1997.
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1 SEC. 4362. AUTHORITY TO COLLECT SUPPORT FROM FED2 ERAL EMPLOYEES.

3 (a) CONSOLIDATION AND STREAMLINING OF AU4 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

5 read as follows:

6 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

7 WITHHOLDING, GARNISHMENT, AND SIMILAR

8 PROCEEDINGS FOR ENFORCEMENT OF CHILD

9 SUPPORT AND ALIMONY OBLIGATIONS.

10 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not11 withstanding any other provision of law (including section

12 207 of this Act and section 5301 of title 38, United States

13 Code), effective January 1, 1975, moneys (the entitlement

14 to which is based upon remuneration for employment) due

15 from, or payable by, the United States or the District of

16 Columbia (including any agency, subdivision, or instru17 mentality thereof) to any individual, including members

18 of the Armed Forces of the United States, shall be subject,

19 in like manner and to the same extent as if the United

20 States or the District of Columbia were a private person,

21 to withholding in accordance with State law enacted pur22 suant to subsections (a)(1) and (b) of section 466 and reg23 ulations of the Secretary under such subsections, and to

24 any other legal process brought, by a State agency admin25 istering a program under a State plan approved under this
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1 part or by an individual obligee, to enforce the legal obliga2 tion of the individual to provide child support or alimony.

3 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

4 PRIVATE PERSON.—With respect to notice to withhold in5 come pursuant to subsection (a)(1) or (b) of section 466,

6 or any other order or process to enforce support obliga7 tions against an individual (if the order or process con8 tains or is accompanied by sufficient data to permit

9 prompt identification of the individual and the moneys in10 volved), each governmental entity specified in subsection

11 (a) shall be subject to the same requirements as would

12 apply if the entity were a private person, except as other13 wise provided in this section.

14 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

15 OR PROCESS—

16 ‘‘(1) DESIGNATION OF AGENT.—The head of

17 each agency subject to this section shall—

18 ‘‘(A) designate an agent or agents to re19 ceive orders and accept service of process in

20 matters relating to child support or alimony;

21 and

22 ‘‘(B) annually publish in the Federal Reg23 ister the designation of the agent or agents,

24 identified by title or position, mailing address,

25 and telephone number.
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1 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

2 agent designated pursuant to paragraph (1) of this

3 subsection receives notice pursuant to State proce4 dures in effect pursuant to subsection (a)(1) or (b)

5 of section 466, or is effectively served with any

6 order, process, or interrogatory, with respect to an

7 individual’s child support or alimony payment obli8 gations, the agent shall—

9 ‘‘(A) as soon as possible (but not later

10 than 15 days) thereafter, send written notice of

11 the notice or service (together with a copy of

12 the notice or service) to the individual at the

13 duty station or last-known home address of the

14 individual;

15 ‘‘(B) within 30 days (or such longer period

16 as may be prescribed by applicable State law)

17 after receipt of a notice pursuant to such State

18 procedures, comply with all applicable provi19 sions of section 466; and

20 ‘‘(C) within 30 days (or such longer period

21 as may be prescribed by applicable State law)

22 after effective service of any other such order,

23 process, or interrogatory, respond to the order,

24 process, or interrogatory.
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1 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

2 specified in subsection (a) receives notice or is served with

3 process, as provided in this section, concerning amounts

4 owed by an individual to more than 1 person—

5 ‘‘(1) support collection under section 466(b)

6 must be given priority over any other process, as

7 provided in section 466(b)(7);

8 ‘‘(2) allocation of moneys due or payable to an

9 individual among claimants under section 466(b)

10 shall be governed by section 466(b) and the regula11 tions prescribed under such section; and

12 ‘‘(3) such moneys as remain after compliance

13 with paragraphs (1) and (2) shall be available to

14 satisfy any other such processes on a first-come,

15 first-served basis, with any such process being satis16 fied out of such moneys as remain after the satisfac17 tion of all such processes which have been previously

18 served.

19 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

20 governmental entity that is affected by legal process

21 served for the enforcement of an individual’s child support

22 or alimony payment obligations shall not be required to

23 vary its normal pay and disbursement cycle in order to

24 comply with the legal process.

25 ‘‘(f) RELIEF FROM LIABILITY.—
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1 ‘‘(1) Neither the United States, nor the govern2 ment of the District of Columbia, nor any disbursing

3 officer shall be liable with respect to any payment

4 made from moneys due or payable from the United

5 States to any individual pursuant to legal process

6 regular on its face, if the payment is made in ac7 cordance with this section and the regulations issued

8 to carry out this section.

9 ‘‘(2) No Federal employee whose duties include

10 taking actions necessary to comply with the require11 ments of subsection (a) with regard to any individ12 ual shall be subject under any law to any discipli13 nary action or civil or criminal liability or penalty

14 for, or on account of, any disclosure of information

15 made by the employee in connection with the carry16 ing out of such actions.

17 ‘‘(g) REGULATIONS.—Authority to promulgate regu18 lations for the implementation of this section shall, insofar

19 as this section applies to moneys due from (or payable

20 by)—

21 ‘‘(1) the United States (other than the legisla22 tive or judicial branches of the Federal Government)

23 or the government of the District of Columbia, be

24 vested in the President (or the designee of the Presi25 dent);
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1 ‘‘(2) the legislative branch of the Federal Gov2 ernment, be vested jointly in the President pro tem3 pore of the Senate and the Speaker of the House of

4 Representatives (or their designees), and

5 ‘‘(3) the judicial branch of the Federal Govern6 ment, be vested in the Chief Justice of the United

7 States (or the designee of the Chief Justice).

8 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

10 moneys paid or payable to an individual which are

11 considered to be based upon remuneration for em12 ployment, for purposes of this section—

13 ‘‘(A) consist of—

14 ‘‘(i) compensation paid or payable for

15 personal services of the individual, whether

16 the compensation is denominated as wages,

17 salary, commission, bonus, pay, allowances,

18 or otherwise (including severance pay, sick

19 pay, and incentive pay);

20 ‘‘(ii) periodic benefits (including a

21 periodic benefit as defined in section

22 228(h)(3)) or other payments—

23 ‘‘(I) under the insurance system

24 established by title II;
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1 ‘‘(II) under any other system or

2 fund established by the United States

3 which provides for the payment of

4 pensions, retirement or retired pay,

5 annuities, dependents’ or survivors’

6 benefits, or similar amounts payable

7 on account of personal services per8 formed by the individual or any other

9 individual;

10 ‘‘(III) as compensation for death

11 under any Federal program;

12 ‘‘(IV) under any Federal pro13 gram established to provide ‘black

14 lung’ benefits; or

15 ‘‘(V) by the Secretary of Veter16 ans Affairs as compensation for a

17 service-connected disability paid by

18 the Secretary to a former member of

19 the Armed Forces who is in receipt of

20 retired or retainer pay if the former

21 member has waived a portion of the

22 retired or retainer pay in order to re23 ceive such compensation; and

24 ‘‘(iii) worker’s compensation benefits

25 paid under Federal or State law but
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1 ‘‘(B) do not include any payment—

2 ‘‘(i) by way of reimbursement or oth3 erwise, to defray expenses incurred by the

4 individual in carrying out duties associated

5 with the employment of the individual; or

6 ‘‘(ii) as allowances for members of the

7 uniformed services payable pursuant to

8 chapter 7 of title 37, United States Code,

9 as prescribed by the Secretaries concerned

10 (defined by section 101(5) of such title) as

11 necessary for the efficient performance of

12 duty.

13 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter14 mining the amount of any moneys due from, or pay15 able by, the United States to any individual, there

16 shall be excluded amounts which—

17 ‘‘(A) are owed by the individual to the

18 United States;

19 ‘‘(B) are required by law to be, and are,

20 deducted from the remuneration or other pay21 ment involved, including Federal employment

22 taxes, and fines and forfeitures ordered by

23 court-martial;

24 ‘‘(C) are properly withheld for Federal,

25 State, or local income tax purposes, if the with-
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1 holding of the amounts is authorized or re2 quired by law and if amounts withheld are not

3 greater than would be the case if the individual

4 claimed all dependents to which he was entitled

5 (the withholding of additional amounts pursu6 ant to section 3402(i) of the Internal Revenue

7 Code of 1986 may be permitted only when the

8 individual presents evidence of a tax obligation

9 which supports the additional withholding);

10 ‘‘(D) are deducted as health insurance pre11 miums;

12 ‘‘(E) are deducted as normal retirement

13 contributions (not including amounts deducted

14 for supplementary coverage); or

15 ‘‘(F) are deducted as normal life insurance

16 premiums from salary or other remuneration

17 for employment (not including amounts de18 ducted for supplementary coverage).

19 ‘‘(i) DEFINITIONS.—For purposes of this section—

20 ‘‘(1) UNITED STATES.—The term ‘United

21 States’ includes any department, agency, or instru22 mentality of the legislative, judicial, or executive

23 branch of the Federal Government, the United

24 States Postal Service, the Postal Rate Commission,

25 any Federal corporation created by an Act of Con-
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1 gress that is wholly owned by the Federal Govern2 ment, and the governments of the territories and

3 possessions of the United States.

4 ‘‘(2) CHILD SUPPORT.—The term ‘child sup5 port’, when used in reference to the legal obligations

6 of an individual to provide such support, means

7 amounts required to be paid under a judgment, de8 cree, or order, whether temporary, final, or subject

9 to modification, issued by a court or an administra10 tive agency of competent jurisdiction, for the sup11 port and maintenance of a child, including a child

12 who has attained the age of majority under the law

13 of the issuing State, or a child and the parent with

14 whom the child is living, which provides for mone15 tary support, health care, arrearages or reimburse16 ment, and which may include other related costs and

17 fees, interest and penalties, income withholding, at18 torney’s fees, and other relief.

19 ‘‘(3) ALIMONY.—

20 ‘‘(A) IN GENERAL.—The term ‘alimony’,

21 when used in reference to the legal obligations

22 of an individual to provide the same, means

23 periodic payments of funds for the support and

24 maintenance of the spouse (or former spouse)

25 of the individual, and (subject to and in accord-
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1 ance with State law) includes separate mainte2 nance, alimony pendente lite, maintenance, and

3 spousal support, and includes attorney’s fees,

4 interest, and court costs when and to the extent

5 that the same are expressly made recoverable as

6 such pursuant to a decree, order, or judgment

7 issued in accordance with applicable State law

8 by a court of competent jurisdiction.

9 ‘‘(B) EXCEPTIONS.—Such term does not

10 include—

11 ‘‘(i) any child support; or

12 ‘‘(ii) any payment or transfer of prop13 erty or its value by an individual to the

14 spouse or a former spouse of the individual

15 in compliance with any community prop16 erty settlement, equitable distribution of

17 property, or other division of property be18 tween spouses or former spouses.

19 ‘‘(4) PRIVATE PERSON.—The term ‘private per20 son’ means a person who does not have sovereign or

21 other special immunity or privilege which causes the

22 person not to be subject to legal process.

23 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc24 ess’ means any writ, order, summons, or other simi25 lar process in the nature of garnishment—
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1 ‘‘(A) which is issued by—

2 ‘‘(i) a court or an administrative

3 agency of competent jurisdiction in any

4 State, territory, or possession of the Unit5 ed States;

6 ‘‘(ii) a court or an administrative

7 agency of competent jurisdiction in any

8 foreign country with which the United

9 States has entered into an agreement

10 which requires the United States to honor

11 the process; or

12 ‘‘(iii) an authorized official pursuant

13 to an order of such a court or an adminis14 trative agency of competent jurisdiction or

15 pursuant to State or local law; and

16 ‘‘(B) which is directed to, and the purpose

17 of which is to compel, a governmental entity

18 which holds moneys which are otherwise pay19 able to an individual to make a payment from

20 the moneys to another party in order to satisfy

21 a legal obligation of the individual to provide

22 child support or make alimony payments.’’.

23 (b) CONFORMING AMENDMENTS.—

24 (1) TO PART D OF TITLE IV.—Sections 461 and

25 462 (42 U.S.C. 661 and 662) are repealed.
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1 (2) TO TITLE 5, UNITED STATES CODE.—Sec2 tion 5520a of title 5, United States Code, is amend3 ed, in subsections (h)(2) and (i), by striking ‘‘sec4 tions 459, 461, and 462 of the Social Security Act

5 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec6 tion 459 of the Social Security Act (42 U.S.C.

7 659)’’.

8 (c) MILITARY RETIRED AND RETAINER PAY.—

9 (1) DEFINITION OF COURT.—Section

10 1408(a)(1) of title 10, United States Code, is

11 amended—

12 (A) by striking ‘‘and’’ at the end of sub13 paragraph (B);

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

15 subparagraph (C) and inserting ‘‘; and’’; and

16 (C) by adding after subparagraph (C) the

17 following new subparagraph:

18 ‘‘(D) any administrative or judicial tribu19 nal of a State competent to enter orders for

20 support or maintenance (including a State

21 agency administering a program under a State

22 plan approved under part D of title IV of the

23 Social Security Act), and, for purposes of this

24 subparagraph, the term ‘State’ includes the

25 District of Columbia, the Commonwealth of
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1 Puerto Rico, the Virgin Islands, Guam, and

2 American Samoa.’’.

3 (2) DEFINITION OF COURT ORDER.—Section

4 1408(a)(2) of such title is amended—

5 (A) by inserting ‘‘or a support order, as

6 defined in section 453(p) of the Social Security

7 Act (42 U.S.C. 653(p)),’’ before ‘‘which—’’;

8 (B) in subparagraph (B)(i), by striking

9 ‘‘(as defined in section 462(b) of the Social Se10 curity Act (42 U.S.C. 662(b)))’’ and inserting

11 ‘‘(as defined in section 459(i)(2) of the Social

12 Security Act (42 U.S.C. 659(i)(2)))’’; and

13 (C) in subparagraph (B)(ii), by striking

14 ‘‘(as defined in section 462(c) of the Social Se15 curity Act (42 U.S.C. 662(c)))’’ and inserting

16 ‘‘(as defined in section 459(i)(3) of the Social

17 Security Act (42 U.S.C. 659(i)(3)))’’.

18 (3) PUBLIC PAYEE.—Section 1408(d) of such

19 title is amended—

20 (A) in the heading, by inserting ‘‘(OR FOR

21 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

22 (B) in paragraph (1), in the 1st sentence,

23 by inserting ‘‘(or for the benefit of such spouse

24 or former spouse to a State disbursement unit

25 established pursuant to section 454B of the So-
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1 cial Security Act or other public payee des2 ignated by a State, in accordance with part D

3 of title IV of the Social Security Act, as di4 rected by court order, or as otherwise directed

5 in accordance with such part D)’’ before ‘‘in an

6 amount sufficient’’.

7 (4) RELATIONSHIP TO PART D OF TITLE IV.—

8 Section 1408 of such title is amended by adding at

9 the end the following new subsection:

10 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

11 involving an order providing for payment of child support

12 (as defined in section 459(i)(2) of the Social Security Act)

13 by a member who has never been married to the other

14 parent of the child, the provisions of this section shall not

15 apply, and the case shall be subject to the provisions of

16 section 459 of such Act.’’.

17 (d) EFFECTIVE DATE.—The amendments made by

18 this section shall become effective 6 months after the date

19 of the enactment of this Act.

20 SEC. 4363. ENFORCEMENT OF CHILD SUPPORT OBLIGA21 TIONS OF MEMBERS OF THE ARMED FORCES.

22 (a) AVAILABILITY OF LOCATOR INFORMATION.—

23 (1) MAINTENANCE OF ADDRESS INFORMA24 TION.—The Secretary of Defense shall establish a

25 centralized personnel locator service that includes
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1 the address of each member of the Armed Forces

2 under the jurisdiction of the Secretary. Upon re3 quest of the Secretary of Transportation, addresses

4 for members of the Coast Guard shall be included in

5 the centralized personnel locator service.

6 (2) TYPE OF ADDRESS.—

7 (A) RESIDENTIAL ADDRESS.—Except as

8 provided in subparagraph (B), the address for

9 a member of the Armed Forces shown in the lo10 cator service shall be the residential address of

11 that member.

12 (B) DUTY ADDRESS.—The address for a

13 member of the Armed Forces shown in the loca14 tor service shall be the duty address of that

15 member in the case of a member—

16 (i) who is permanently assigned over17 seas, to a vessel, or to a routinely

18 deployable unit; or

19 (ii) with respect to whom the Sec20 retary concerned makes a determination

21 that the member’s residential address

22 should not be disclosed due to national se23 curity or safety concerns.

24 (3) UPDATING OF LOCATOR INFORMATION.—

25 Within 30 days after a member listed in the locator
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1 service establishes a new residential address (or a

2 new duty address, in the case of a member covered

3 by paragraph (2)(B)), the Secretary concerned shall

4 update the locator service to indicate the new ad5 dress of the member.

6 (4) AVAILABILITY OF INFORMATION.—The Sec7 retary of Defense shall make information regarding

8 the address of a member of the Armed Forces listed

9 in the locator service available, on request, to the

10 Federal Parent Locator Service established under

11 section 453 of the Social Security Act.

12 (b) FACILITATING GRANTING OF LEAVE FOR AT13 TENDANCE AT HEARINGS.—

14 (1) REGULATIONS.—The Secretary of each

15 military department, and the Secretary of Transpor16 tation with respect to the Coast Guard when it is

17 not operating as a service in the Navy, shall pre18 scribe regulations to facilitate the granting of leave

19 to a member of the Armed Forces under the juris20 diction of that Secretary in a case in which—

21 (A) the leave is needed for the member to

22 attend a hearing described in paragraph (2);

23 (B) the member is not serving in or with

24 a unit deployed in a contingency operation (as
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1 defined in section 101 of title 10, United States

2 Code); and

3 (C) the exigencies of military service (as

4 determined by the Secretary concerned) do not

5 otherwise require that such leave not be grant6 ed.

7 (2) COVERED HEARINGS.—Paragraph (1) ap8 plies to a hearing that is conducted by a court or

9 pursuant to an administrative process established

10 under State law, in connection with a civil action—

11 (A) to determine whether a member of the

12 Armed Forces is a natural parent of a child; or

13 (B) to determine an obligation of a mem14 ber of the Armed Forces to provide child sup15 port.

16 (3) DEFINITIONS.—For purposes of this sub17 section—

18 (A) The term ‘‘court’’ has the meaning

19 given that term in section 1408(a) of title 10,

20 United States Code.

21 (B) The term ‘‘child support’’ has the

22 meaning given such term in section 459(i) of

23 the Social Security Act (42 U.S.C. 659(i)).

24 (c) PAYMENT OF MILITARY RETIRED PAY IN COM25 PLIANCE WITH CHILD SUPPORT ORDERS.—
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1 (1) DATE OF CERTIFICATION OF COURT

2 ORDER.—Section 1408 of title 10, United States

3 Code, as amended by section 4362(c)(4) of this Act,

4 is amended—

5 (A) by redesignating subsections (i) and (j)

6 as subsections (j) and (k), respectively; and

7 (B) by inserting after subsection (h) the

8 following new subsection:

9 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

10 the date of a certification of the authenticity or complete11 ness of a copy of a court order for child support received

12 by the Secretary concerned for the purposes of this section

13 be recent in relation to the date of receipt by the Sec14 retary.’’.

15 (2) PAYMENTS CONSISTENT WITH ASSIGN16 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

17 of such title is amended by inserting after the 1st

18 sentence the following new sentence: ‘‘In the case of

19 a spouse or former spouse who, pursuant to section

20 408(a)(4) of the Social Security Act (42 U.S.C.

21 608(a)(4)), assigns to a State the rights of the

22 spouse or former spouse to receive support, the Sec23 retary concerned may make the child support pay24 ments referred to in the preceding sentence to that
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1 State in amounts consistent with that assignment of

2 rights.’’.

3 (3) ARREARAGES OWED BY MEMBERS OF THE

4 UNIFORMED SERVICES.—Section 1408(d) of such

5 title is amended by adding at the end the following

6 new paragraph:

7 ‘‘(6) In the case of a court order for which effective

8 service is made on the Secretary concerned on or after

9 the date of the enactment of this paragraph and which

10 provides for payments from the disposable retired pay of

11 a member to satisfy the amount of child support set forth

12 in the order, the authority provided in paragraph (1) to

13 make payments from the disposable retired pay of a mem14 ber to satisfy the amount of child support set forth in a

15 court order shall apply to payment of any amount of child

16 support arrearages set forth in that order as well as to

17 amounts of child support that currently become due.’’.

18 (4) PAYROLL DEDUCTIONS.—The Secretary of

19 Defense shall begin payroll deductions within 30

20 days after receiving notice of withholding, or for the

21 1st pay period that begins after such 30-day period.

22 SEC. 4364. VOIDING OF FRAUDULENT TRANSFERS.

23 Section 466 (42 U.S.C. 666), as amended by section

24 4321 of this Act, is amended by adding at the end the

25 following 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. 4365. WORK REQUIREMENT FOR PERSONS OWING

22 PAST-DUE CHILD SUPPORT.

23 (a) IN GENERAL.—Section 466(a) (42 U.S.C.

24 666(a)), as amended by sections 4315, 4317(a), and 4323
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1 of this Act, is amended by inserting after paragraph (14)

2 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, to

11 issue an order or to request that a court or an

12 administrative process established pursuant to

13 State law issue an order that requires the indi14 vidual to—

15 ‘‘(i) pay such support in accordance

16 with a plan approved by the court, or, at

17 the option of the State, a plan approved by

18 the State agency administering the State

19 program under this part; or

20 ‘‘(ii) if the individual is subject to

21 such a plan and is not incapacitated, par22 ticipate in such work activities (as defined

23 in section 407(d)) as the court, or, at the

24 option of the State, the State agency ad-
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1 ministering the State program under this

2 part, deems appropriate.

3 ‘‘(B) PAST-DUE SUPPORT DEFINED.—For

4 purposes of subparagraph (A), the term ‘past5 due support’ means the amount of a delin6 quency, determined under a court order, or an

7 order of an administrative process established

8 under State law, for support and maintenance

9 of a child, or of a child and the parent with

10 whom the child is living.’’.

11 (b) CONFORMING AMENDMENT.—The flush para12 graph at the end of section 466(a) (42 U.S.C.666(a)) is

13 amended by striking ‘‘and (7)’’ and inserting ‘‘(7), and

14 (15)’’.

15 SEC. 4366. DEFINITION OF SUPPORT ORDER.

16 Section 453 (42 U.S.C. 653) as amended by sections

17 4316 and 4345(b) of this Act, is amended by adding at

18 the end the following new subsection:

19 ‘‘(p) SUPPORT ORDER DEFINED.—As used in this

20 part, the term ‘support order’ means a judgment, decree,

21 or order, whether temporary, final, or subject to modifica22 tion, issued by a court or an administrative agency of com23 petent jurisdiction, for the support and maintenance of a

24 child, including a child who has attained the age of major25 ity under the law of the issuing State, or a child and the
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1 parent with whom the child is living, which provides for

2 monetary support, health care, arrearages, or reimburse3 ment, and which may include related costs and fees, inter4 est and penalties, income withholding, attorneys’ fees, and

5 other relief.’’.

6 SEC. 4367. REPORTING ARREARAGES TO CREDIT BUREAUS.

7 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

8 to read as follows:

9 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU10 REAUS.—

11 ‘‘(A) IN GENERAL.—Procedures (subject to

12 safeguards pursuant to subparagraph (B)) re13 quiring the State to report periodically to

14 consumer reporting agencies (as defined in sec15 tion 603(f) of the Fair Credit Reporting Act

16 (15 U.S.C. 1681a(f)) the name of any non17 custodial parent who is delinquent in the pay18 ment of support, and the amount of overdue

19 support owed by such parent.

20 ‘‘(B) SAFEGUARDS.—Procedures ensuring

21 that, in carrying out subparagraph (A), infor22 mation with respect to a noncustodial parent is

23 reported—

24 ‘‘(i) only after such parent has been

25 afforded all due process required under
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1 State law, including notice and a reason2 able opportunity to contest the accuracy of

3 such information; and

4 ‘‘(ii) only to an entity that has fur5 nished evidence satisfactory to the State

6 that the entity is a consumer reporting

7 agency (as so defined).’’.

8 SEC. 4368. LIENS.

9 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

10 to read as follows:

11 ‘‘(4) LIENS.—Procedures under which—

12 ‘‘(A) liens arise by operation of law against

13 real and personal property for amounts of over14 due support owed by a noncustodial parent who

15 resides or owns property in the State; and

16 ‘‘(B) the State accords full faith and credit

17 to liens described in subparagraph (A) arising

18 in another State, when the State agency, party,

19 or other entity seeking to enforce such a lien

20 complies with the procedural rules relating to

21 recording or serving liens that arise within the

22 State, except that such rules may not require

23 judicial notice or hearing prior to the enforce24 ment of such a lien.’’.
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1 SEC. 4369. STATE LAW AUTHORIZING SUSPENSION OF LI2 CENSES.

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

4 sections 4315, 4317(a), 4323, and 4365 of this Act, is

5 amended by inserting after paragraph (15) the following:

6 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

7 LICENSES.—Procedures under which the State has

8 (and uses in appropriate cases) authority to withhold

9 or suspend, or to restrict the use of driver’s licenses,

10 professional and occupational licenses, and rec11 reational licenses of individuals owing overdue sup12 port or failing, after receiving appropriate notice, to

13 comply with subpoenas or warrants relating to pa14 ternity or child support proceedings.’’.

15 SEC. 4370. DENIAL OF PASSPORTS FOR NONPAYMENT OF

16 CHILD SUPPORT.

17 (a) HHS CERTIFICATION PROCEDURE.—

18 (1) SECRETARIAL RESPONSIBILITY.—Section

19 452 (42 U.S.C. 652), as amended by section 4345

20 of this Act, is amended by adding at the end the fol21 lowing new subsection:

22 ‘‘(k)(1) If the Secretary receives a certification by a

23 State agency in accordance with the requirements of sec24 tion 454(31) that an individual owes arrearages of child

25 support in an amount exceeding $5,000, the Secretary

26 shall transmit such certification to the Secretary of State
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1 for action (with respect to denial, revocation, or limitation

2 of passports) pursuant to paragraph (2).

3 ‘‘(2) The Secretary of State shall, upon certification

4 by the Secretary transmitted under paragraph (1), refuse

5 to issue a passport to such individual, and may revoke,

6 restrict, or limit a passport issued previously to such indi7 vidual.

8 ‘‘(3) The Secretary and the Secretary of State shall

9 not be liable to an individual for any action with respect

10 to a certification by a State agency under this section.’’.

11 (2) STATE AGENCY RESPONSIBILITY.—Section

12 454 (42 U.S.C. 654), as amended by sections

13 4301(b), 4303(a), 4312(b), 4313(a), 4333, 4343(b),

14 and 4347 of this Act, is amended—

15 (A) by striking ‘‘and’’ at the end of para16 graph (30);

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

18 paragraph (31) and inserting ‘‘; and’’; and

19 (C) by adding after paragraph (31) the fol20 lowing new paragraph:

21 ‘‘(32) provide that the State agency will have in

22 effect a procedure for certifying to the Secretary, for

23 purposes of the procedure under section 452(k), de24 terminations that individuals owe arrearages of child
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1 support in an amount exceeding $5,000, under

2 which procedure—

3 ‘‘(A) each individual concerned is afforded

4 notice of such determination and the con5 sequences thereof, and an opportunity to con6 test the determination; and

7 ‘‘(B) the certification by the State agency

8 is furnished to the Secretary in such format,

9 and accompanied by such supporting docu10 mentation, as the Secretary may require.’’.

11 (b) EFFECTIVE DATE.—This section and the amend12 ments made by this section shall become effective October

13 1, 1997.

14 SEC. 4371. INTERNATIONAL SUPPORT ENFORCEMENT.

15 (a) AUTHORITY FOR INTERNATIONAL AGREE16 MENTS.—Part D of title IV, as amended by section

17 4362(a) of this Act, is amended by adding after section

18 459 the following new section:

19 ‘‘SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.

20 ‘‘(a) AUTHORITY FOR DECLARATIONS.—

21 ‘‘(1) DECLARATION.—The Secretary of State,

22 with the concurrence of the Secretary of Health and

23 Human Services, is authorized to declare any foreign

24 country (or a political subdivision thereof) to be a

25 foreign reciprocating country if the foreign country
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1 has established, or undertakes to establish, proce2 dures for the establishment and enforcement of du3 ties of support owed to obligees who are residents of

4 the United States, and such procedures are substan5 tially in conformity with the standards prescribed

6 under subsection (b).

7 ‘‘(2) REVOCATION.—A declaration with respect

8 to a foreign country made pursuant to paragraph

9 (1) may be revoked if the Secretaries of State and

10 Health and Human Services determine that—

11 ‘‘(A) the procedures established by the for12 eign country regarding the establishment and

13 enforcement of duties of support have been so

14 changed, or the foreign country’s implementa15 tion of such procedures is so unsatisfactory,

16 that such procedures do not meet the criteria

17 for such a declaration; or

18 ‘‘(B) continued operation of the declaration

19 is not consistent with the purposes of this part.

20 ‘‘(3) FORM OF DECLARATION.—A declaration

21 under paragraph (1) may be made in the form of an

22 international agreement, in connection with an inter23 national agreement or corresponding foreign declara24 tion, or on a unilateral basis.
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1 ‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE2 MENT PROCEDURES.—

3 ‘‘(1) MANDATORY ELEMENTS.—Support en4 forcement procedures of a foreign country which

5 may be the subject of a declaration pursuant to sub6 section (a)(1) shall include the following elements:

7 ‘‘(A) The foreign country (or political sub8 division thereof) has in effect procedures, avail9 able to residents of the United States—

10 ‘‘(i) for establishment of paternity,

11 and for establishment of orders of support

12 for children and custodial parents; and

13 ‘‘(ii) for enforcement of orders to pro14 vide support to children and custodial par15 ents, including procedures for collection

16 and appropriate distribution of support

17 payments under such orders.

18 ‘‘(B) The procedures described in subpara19 graph (A), including legal and administrative

20 assistance, are provided to residents of the

21 United States at no cost.

22 ‘‘(C) An agency of the foreign country is

23 designated as a Central Authority responsible

24 for—
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1 ‘‘(i) facilitating support enforcement

2 in cases involving residents of the foreign

3 country and residents of the United States;

4 and

5 ‘‘(ii) ensuring compliance with the

6 standards established pursuant to this sub7 section.

8 ‘‘(2) ADDITIONAL ELEMENTS.—The Secretary

9 of Health and Human Services and the Secretary of

10 State, in consultation with the States, may establish

11 such additional standards as may be considered nec12 essary to further the purposes of this section.

13 ‘‘(c) DESIGNATION OF UNITED STATES CENTRAL

14 AUTHORITY.—It shall be the responsibility of the Sec15 retary of Health and Human Services to facilitate support

16 enforcement in cases involving residents of the United

17 States and residents of foreign countries that are the sub18 ject of a declaration under this section, by activities in19 cluding—

20 ‘‘(1) development of uniform forms and proce21 dures for use in such cases;

22 ‘‘(2) notification of foreign reciprocating coun23 tries of the State of residence of individuals sought

24 for support enforcement purposes, on the basis of in-
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1 formation provided by the Federal Parent Locator

2 Service; and

3 ‘‘(3) such other oversight, assistance, and co4 ordination activities as the Secretary may find nec5 essary and appropriate.

6 ‘‘(d) EFFECT ON OTHER LAWS.—States may enter

7 into reciprocal arrangements for the establishment and en8 forcement of support obligations with foreign countries

9 that are not the subject of a declaration pursuant to sub10 section (a), to the extent consistent with Federal law.’’.

11 (b) STATE PLAN REQUIREMENT.—Section 454 (42

12 U.S.C. 654), as amended by sections 4301(b), 4303(a),

13 4312(b), 4313(a), 4333, 4343(b), 4347, and 4370(a)(2)

14 of this Act, is amended—

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

16 (31);

17 (2) by striking the period at the end of para18 graph (32) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (32) the follow20 ing new paragraph:

21 ‘‘(33)(A) provide that any request for services

22 under this part by a foreign reciprocating country or

23 a foreign country with which the State has an ar24 rangement described in section 459A(d)(2) shall be

25 treated as a request by a State;
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1 ‘‘(B) provide, at State option, notwithstanding

2 paragraph (4) or any other provision of this part,

3 for services under the plan for enforcement of a

4 spousal support order not described in paragraph

5 (4)(B) entered by such a country (or subdivision);

6 and

7 ‘‘(C) provide that no applications will be re8 quired from, and no costs will be assessed for such

9 services against, the foreign reciprocating country or

10 foreign obligee (but costs may at State option be as11 sessed against the obligor).’’.

12 SEC. 4372. FINANCIAL INSTITUTION DATA MATCHES.

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

14 sections 4315, 4317(a), 4323, 4365, and 4369 of this Act,

15 is amended by inserting after paragraph (16) the following

16 new paragraph:

17 ‘‘(17) FINANCIAL INSTITUTION DATA

18 MATCHES.—

19 ‘‘(A) IN GENERAL.—Procedures under

20 which the State agency shall enter into agree21 ments with financial institutions doing business

22 in the State—

23 ‘‘(i) to develop and operate, in coordi24 nation with such financial institutions, a

25 data match system, using automated data
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1 exchanges to the maximum extent feasible,

2 in which each such financial institution is

3 required to provide for each calendar quar4 ter the name, record address, social secu5 rity number or other taxpayer identifica6 tion number, and other identifying infor7 mation for each noncustodial parent who

8 maintains an account at such institution

9 and who owes past-due support, as identi10 fied by the State by name and social secu11 rity number or other taxpayer identifica12 tion number; and

13 ‘‘(ii) in response to a notice of lien or

14 levy, encumber or surrender, as the case

15 may be, assets held by such institution on

16 behalf of any noncustodial parent who is

17 subject to a child support lien pursuant to

18 paragraph (4).

19 ‘‘(B) REASONABLE FEES.—The State

20 agency may pay a reasonable fee to a financial

21 institution for conducting the data match pro22 vided for in subparagraph (A)(i), not to exceed

23 the actual costs incurred by such financial insti24 tution.
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1 ‘‘(C) LIABILITY.—A financial institution

2 shall not be liable under any Federal or State

3 law to any person—

4 ‘‘(i) for any disclosure of information

5 to the State agency under subparagraph

6 (A)(i);

7 ‘‘(ii) for encumbering or surrendering

8 any assets held by such financial institu9 tion in response to a notice of lien or levy

10 issued by the State agency as provided for

11 in subparagraph (A)(ii); or

12 ‘‘(iii) for any other action taken in

13 good faith to comply with the requirements

14 of subparagraph (A).

15 ‘‘(D) DEFINITIONS.—For purposes of this

16 paragraph—

17 ‘‘(i) FINANCIAL INSTITUTION.—The

18 term ‘financial institution’ has the mean19 ing given to such term by section

20 469A(d)(1).

21 ‘‘(ii) ACCOUNT.—The term ‘account’

22 means a demand deposit account, checking

23 or negotiable withdrawal order account,

24 savings account, time deposit account, or

25 money-market mutual fund account.’’.
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1 SEC. 4373. ENFORCEMENT OF ORDERS AGAINST PATERNAL

2 OR MATERNAL GRANDPARENTS IN CASES OF

3 MINOR PARENTS.

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

5 sections 4315, 4317(a), 4323, 4365, 4369, and 4372 of

6 this Act, is amended by inserting after paragraph (17) the

7 following new paragraph:

8 ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA9 TERNAL OR MATERNAL GRANDPARENTS.—Proce10 dures under which, at the State’s option, any child

11 support order enforced under this part with respect

12 to a child of minor parents, if the custodial parent

13 of such child is receiving assistance under the State

14 program under part A, shall be enforceable, jointly

15 and severally, against the parents of the noncusto16 dial parent of such child.’’.

17 SEC. 4374. NONDISCHARGEABILITY IN BANKRUPTCY OF

18 CERTAIN DEBTS FOR THE SUPPORT OF A

19 CHILD.

20 (a) AMENDMENT TO TITLE 11 OF THE UNITED

21 STATES CODE.—Section 523(a) of title 11, United States

22 Code, is amended—

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

24 (16);

25 (2) by striking the period at the end of para26 graph (17) and inserting ‘‘; or’’;
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1 (3) by adding at the end the following:

2 ‘‘(18) owed under State law to a State or mu3 nicipality that is—

4 ‘‘(A) in the nature of support, and

5 ‘‘(B) enforceable under part D of title IV

6 of the Social Security Act (42 U.S.C. 601 et

7 seq.).’’; and

8 (4) in paragraph (5), by striking ‘‘section

9 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’.

10 (b) AMENDMENT TO THE SOCIAL SECURITY ACT.—

11 Section 456(b) (42 U.S.C. 656(b)) is amended to read as

12 follows:

13 ‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in

14 section 101 of title 11 of the United States Code) owed

15 under State law to a State (as defined in such section)

16 or municipality (as defined in such section) that is in the

17 nature of support and that is enforceable under this part

18 is not released by a discharge in bankruptcy under title

19 11 of the United States Code.’’.

20 (c) APPLICATION OF AMENDMENTS.—The amend21 ments made by this section shall apply only with respect

22 to cases commenced under title 11 of the United States

23 Code after the date of the enactment of this Act.
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1 CHAPTER 8—MEDICAL SUPPORT

2 SEC. 4376. CORRECTION TO ERISA DEFINITION OF MEDI3 CAL CHILD SUPPORT ORDER.

4 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em5 ployee Retirement Income Security Act of 1974 (29

6 U.S.C. 1169(a)(2)(B)) is amended—

7 (1) by striking ‘‘issued by a court of competent

8 jurisdiction’’;

9 (2) by striking the period at the end of clause

10 (ii) and inserting a comma; and

11 (3) by adding, after and below clause (ii), the

12 following:

13 ‘‘if such judgment, decree, or order (I) is issued

14 by a court of competent jurisdiction or (II) is

15 issued through an administrative process estab16 lished under State law and has the force and ef17 fect of law under applicable State law.’’.

18 (b) EFFECTIVE DATE.—

19 (1) IN GENERAL.—The amendments made by

20 this section shall take effect on the date of the en21 actment of this Act.

22 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

23 JANUARY 1, 1997.—Any amendment to a plan re24 quired to be made by an amendment made by this

25 section shall not be required to be made before the
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1 1st plan year beginning on or after January 1,

2 1997, if—

3 (A) during the period after the date before

4 the date of the enactment of this Act and be5 fore such 1st plan year, the plan is operated in

6 accordance with the requirements of the amend7 ments made by this section; and

8 (B) such plan amendment applies retro9 actively to the period after the date before the

10 date of the enactment of this Act and before

11 such 1st plan year.

12 A plan shall not be treated as failing to be operated

13 in accordance with the provisions of the plan merely

14 because it operates in accordance with this para15 graph.

16 SEC. 4377. ENFORCEMENT OF ORDERS FOR HEALTH CARE

17 COVERAGE.

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

19 sections 4315, 4317(a), 4323, 4365, 4369, 4372, and

20 4373 of this Act, is amended by inserting after paragraph

21 (18) the following new paragraph:

22 ‘‘(19) HEALTH CARE COVERAGE.—Procedures

23 under which all child support orders enforced pursu24 ant to this part shall include a provision for the

25 health care coverage of the child, and in the case in
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1 which a noncustodial parent provides such coverage

2 and changes employment, and the new employer pro3 vides health care coverage, the State agency shall

4 transfer notice of the provision to the employer,

5 which notice shall operate to enroll the child in the

6 noncustodial parent’s health plan, unless the non7 custodial parent contests the notice.’’.

8 CHAPTER 9—ENHANCING RESPONSIBIL9 ITY AND OPPORTUNITY FOR NON-RES10 IDENTIAL PARENTS

11 SEC. 4381. GRANTS TO STATES FOR ACCESS AND VISITA12 TION PROGRAMS.

13 Part D of title IV (42 U.S.C. 651–669), as amended

14 by section 4353 of this Act, is amended by adding at the

15 end the following new section:

16 ‘‘SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITA17 TION PROGRAMS.

18 ‘‘(a) IN GENERAL.—The Administration for Children

19 and Families shall make grants under this section to en20 able States to establish and administer programs to sup21 port and facilitate noncustodial parents’ access to and visi22 tation of their children, by means of activities including

23 mediation (both voluntary and mandatory), counseling,

24 education, development of parenting plans, visitation en25 forcement (including monitoring, supervision and neutral
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1 drop-off and pickup), and development of guidelines for

2 visitation and alternative custody arrangements.

3 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

4 to be made to a State under this section for a fiscal year

5 shall be an amount equal to the lesser of—

6 ‘‘(1) 90 percent of State expenditures during

7 the fiscal year for activities described in subsection

8 (a); or

9 ‘‘(2) the allotment of the State under sub10 section (c) for the fiscal year.

11 ‘‘(c) ALLOTMENTS TO STATES.—

12 ‘‘(1) IN GENERAL.—The allotment of a State

13 for a fiscal year is the amount that bears the same

14 ratio to $10,000,000 for grants under this section

15 for the fiscal year as the number of children in the

16 State living with only 1 biological parent bears to

17 the total number of such children in all States.

18 ‘‘(2) MINIMUM ALLOTMENT.—The Administra19 tion for Children and Families shall adjust allot20 ments to States under paragraph (1) as necessary to

21 ensure that no State is allotted less than—

22 ‘‘(A) $50,000 for fiscal year 1997 or 1998;

23 or

24 ‘‘(B) $100,000 for any succeeding fiscal

25 year.
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1 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

2 FOR SIMILAR ACTIVITIES.—A State to which a grant is

3 made under this section may not use the grant to supplant

4 expenditures by the State for activities specified in sub5 section (a), but shall use the grant to supplement such

6 expenditures at a level at least equal to the level of such

7 expenditures for fiscal year 1995.

8 ‘‘(e) STATE ADMINISTRATION.—Each State to which

9 a grant is made under this section—

10 ‘‘(1) may administer State programs funded

11 with the grant, directly or through grants to or con12 tracts with courts, local public agencies, or nonprofit

13 private entities;

14 ‘‘(2) shall not be required to operate such pro15 grams on a statewide basis; and

16 ‘‘(3) shall monitor, evaluate, and report on such

17 programs in accordance with regulations prescribed

18 by the Secretary.’’.

19 CHAPTER 10—EFFECTIVE DATES AND

20 CONFORMING AMENDMENTS

21 SEC. 4391. EFFECTIVE DATES AND CONFORMING AMEND22 MENTS.

23 (a) IN GENERAL.—Except as otherwise specifically

24 provided (but subject to subsections (b) and (c))—
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1 (1) the provisions of this subtitle requiring the

2 enactment or amendment of State laws under sec3 tion 466 of the Social Security Act, or revision of

4 State plans under section 454 of such Act, shall be

5 effective with respect to periods beginning on and

6 after October 1, 1996; and

7 (2) all other provisions of this subtitle shall be8 come effective upon the date of the enactment of

9 this Act.

10 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

11 provisions of this subtitle shall become effective with re12 spect to a State on the later of—

13 (1) the date specified in this subtitle, or

14 (2) the effective date of laws enacted by the leg15 islature of such State implementing such provisions,

16 but in no event later than the 1st day of the 1st calendar

17 quarter beginning after the close of the 1st regular session

18 of the State legislature that begins after the date of the

19 enactment of this Act. For purposes of the previous sen20 tence, in the case of a State that has a 2-year legislative

21 session, each year of such session shall be deemed to be

22 a separate regular session of the State legislature.

23 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

24 AMENDMENT.—A State shall not be found out of compli25 ance with any requirement enacted by this subtitle if the
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1 State is unable to so comply without amending the State

2 constitution until the earlier of—

3 (1) 1 year after the effective date of the nec4 essary State constitutional amendment; or

5 (2) 5 years after the date of the enactment of

6 this Act.

7 (d) CONFORMING AMENDMENTS.—

8 (1) The following provisions are amended by

9 striking ‘‘absent’’ each place it appears and inserting

10 ‘‘noncustodial’’:

11 (A) Section 451 (42 U.S.C. 651).

12 (B) Subsections (a)(1), (a)(8), (a)(10)(E),

13 (a)(10)(F), (f), and (h) of section 452 (42

14 U.S.C. 652).

15 (C) Section 453(f) (42 U.S.C. 653(f)).

16 (D) Paragraphs (8), (13), and (21)(A) of

17 section 454 (42 U.S.C. 654).

18 (E) Section 455(e)(1) (42 U.S.C.

19 655(e)(1)).

20 (F) Section 458(a) (42 U.S.C. 658(a)).

21 (G) Subsections (a), (b), and (c) of section

22 463 (42 U.S.C. 663).

23 (H) Subsections (a)(3)(A), (a)(3)(C),

24 (a)(6), and (a)(8)(B)(ii), the last sentence of

25 subsection (a), and subsections (b)(1),
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1 (b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i), (b)(9), and

2 (e) of section 466 (42 U.S.C. 666).

3 (2) The following provisions are amended by

4 striking ‘‘an absent’’ each place it appears and in5 serting ‘‘a noncustodial’’:

6 (A) Paragraphs (2) and (3) of section

7 453(c) (42 U.S.C. 653(c)).

8 (B) Subparagraphs (B) and (C) of section

9 454(9) (42 U.S.C. 654(9)).

10 (C) Section 456(a)(3) (42 U.S.C.

11 656(a)(3)).

12 (D) Subsections (a)(3)(A), (a)(6),

13 (a)(8)(B)(i), (b)(3)(A), and (b)(3)(B) of section

14 466 (42 U.S.C. 666).

15 (E) Paragraphs (2) and (4) of section

16 469(b) (42 U.S.C. 669(b)).

17 Subtitle D—Restricting Welfare

18 and Public Benefits for Aliens

19 SEC. 4400. STATEMENTS OF NATIONAL POLICY CONCERN20 ING WELFARE AND IMMIGRATION.

21 The Congress makes the following statements con22 cerning national policy with respect to welfare and immi23 gration:
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1 (1) Self-sufficiency has been a basic principle of

2 United States immigration law since this country’s

3 earliest immigration statutes.

4 (2) It continues to be the immigration policy of

5 the United States that—

6 (A) aliens within the Nation’s borders not

7 depend on public resources to meet their needs,

8 but rather rely on their own capabilities and the

9 resources of their families, their sponsors, and

10 private organizations, and

11 (B) the availability of public benefits not

12 constitute an incentive for immigration to the

13 United States.

14 (3) Despite the principle of self-sufficiency,

15 aliens have been applying for and receiving public

16 benefits from Federal, State, and local governments

17 at increasing rates.

18 (4) Current eligibility rules for public assistance

19 and unenforceable financial support agreements have

20 proved wholly incapable of assuring that individual

21 aliens not burden the public benefits system.

22 (5) It is a compelling government interest to

23 enact new rules for eligibility and sponsorship agree24 ments in order to assure that aliens be self-reliant

25 in accordance with national immigration policy.
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1 (6) It is a compelling government interest to re2 move the incentive for illegal immigration provided

3 by the availability of public benefits.

4 (7) With respect to the State authority to make

5 determinations concerning the eligibility of qualified

6 aliens for public benefits in this subtitle, a State

7 that chooses to follow the Federal classification in

8 determining the eligibility of such aliens for public

9 assistance shall be considered to have chosen the

10 least restrictive means available for achieving the

11 compelling governmental interest of assuring that

12 aliens be self-reliant in accordance with national im13 migration policy.

14 CHAPTER 1—ELIGIBILITY FOR FEDERAL

15 BENEFITS

16 SEC. 4401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI17 GIBLE FOR FEDERAL PUBLIC BENEFITS.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law and except as provided in subsection (b), an

20 alien who is not a qualified alien (as defined in section

21 4431) is not eligible for any Federal public benefit (as de22 fined in subsection (c)).

23 (b) EXCEPTIONS.—

24 (1) Subsection (a) shall not apply with respect

25 to the following Federal public benefits:
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1 (A) Emergency medical services under title

2 XIX of the Social Security Act.

3 (B) Short-term, non-cash, in-kind emer4 gency disaster relief.

5 (C) Public health assistance for immuniza6 tions with respect to immunizable diseases and

7 for testing and treatment of symptoms of com8 municable diseases whether or not such symp9 toms are caused by a communicable disease.

10 (D) Programs, services, or assistance (such

11 as soup kitchens, crisis counseling and interven12 tion, and short-term shelter) specified by the

13 Attorney General, in the Attorney General’s

14 sole and unreviewable discretion after consulta15 tion with appropriate Federal agencies and de16 partments, which (i) deliver in-kind services at

17 the community level, including through public

18 or private nonprofit agencies; (ii) do not condi19 tion the provision of assistance, the amount of

20 assistance provided, or the cost of assistance

21 provided on the individual recipient’s income or

22 resources; and (iii) are necessary for the protec23 tion of life or safety.

24 (E) Programs for housing or community

25 development assistance or financial assistance
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1 administered by the Secretary of Housing and

2 Urban Development, any program under title V

3 of the Housing Act of 1949, or any assistance

4 under section 306C of the Consolidated Farm

5 and Rural Development Act, to the extent that

6 the alien is receiving such a benefit on the date

7 of the enactment of this Act.

8 (2) Subsection (a) shall not apply to any benefit

9 payable under title II of the Social Security Act to

10 an alien who is lawfully present in the United States

11 as determined by the Attorney General, to any bene12 fit if nonpayment of such benefit would contravene

13 an international agreement described in section 233

14 of the Social Security Act, to any benefit if nonpay15 ment would be contrary to section 202(t) of the So16 cial Security Act, or to any benefit payable under

17 title II of the Social Security Act to which entitle18 ment is based on an application filed in or before the

19 month in which this Act becomes law.

20 (c) FEDERAL PUBLIC BENEFIT DEFINED.—

21 (1) Except as provided in paragraph (2), for

22 purposes of this subtitle the term ‘‘Federal public

23 benefit’’ means—

24 (A) any grant, contract, loan, professional

25 license, or commercial license provided by an
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1 agency of the United States or by appropriated

2 funds of the United States; and

3 (B) any retirement, welfare, health, dis4 ability, public or assisted housing, postsecond5 ary education, food assistance, unemployment

6 benefit, or any other similar benefit for which

7 payments or assistance are provided to an indi8 vidual, household, or family eligibility unit by

9 an agency of the United States or by appro10 priated funds of the United States.

11 (2) Such term shall not apply—

12 (A) to any contract, professional license, or

13 commercial license for a nonimmigrant whose

14 visa for entry is related to such employment in

15 the United States; or

16 (B) with respect to benefits for an alien

17 who as a work authorized nonimmigrant or as

18 an alien lawfully admitted for permanent resi19 dence under the Immigration and Nationality

20 Act qualified for such benefits and for whom

21 the United States under reciprocal treaty agree22 ments is required to pay benefits, as determined

23 by the Attorney General, after consultation with

24 the Secretary of State.
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1 SEC. 4402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS

2 FOR CERTAIN FEDERAL PROGRAMS.

3 (a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL

4 PROGRAMS.—

5 (1) IN GENERAL.—Notwithstanding any other

6 provision of law and except as provided in paragraph

7 (2), an alien who is a qualified alien (as defined in

8 section 4431) is not eligible for any specified Fed9 eral program (as defined in paragraph (3)).

10 (2) EXCEPTIONS.—

11 (A) TIME-LIMITED EXCEPTION FOR REFU12 GEES AND ASYLEES.—Paragraph (1) shall not

13 apply to an alien until 5 years after the date—

14 (i) an alien is admitted to the United

15 States as a refugee under section 207 of

16 the Immigration and Nationality Act;

17 (ii) an alien is granted asylum under

18 section 208 of such Act; or

19 (iii) an alien’s deportation is withheld

20 under section 243(h) of such Act.

21 (B) CERTAIN PERMANENT RESIDENT

22 ALIENS.—Paragraph (1) shall not apply to an

23 alien who—

24 (i) is lawfully admitted to the United

25 States for permanent residence under the

26 Immigration and Nationality Act; and
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1 (ii)(I) has worked 40 qualifying quar2 ters of coverage as defined under title II of

3 the Social Security Act or can be credited

4 with such qualifying quarters as provided

5 under section 435, and (II) did not receive

6 any Federal means-tested public benefit

7 (as defined in section 4403(c)) during any

8 such quarter.

9 (C) VETERAN AND ACTIVE DUTY EXCEP10 TION.—Paragraph (1) shall not apply to an

11 alien who is lawfully residing in any State and

12 is—

13 (i) a veteran (as defined in section

14 101 of title 38, United States Code) with

15 a discharge characterized as an honorable

16 discharge and not on account of alienage,

17 (ii) on active duty (other than active

18 duty for training) in the Armed Forces of

19 the United States, or

20 (iii) the spouse or unmarried depend21 ent child of an individual described in

22 clause (i) or (ii).

23 (D) TRANSITION FOR ALIENS CURRENTLY

24 RECEIVING BENEFITS.—

25 (i) SSI.—
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1 (I) IN GENERAL.—With respect

2 to the specified Federal program de3 scribed in paragraph (3)(A), during

4 the period beginning on the date of

5 the enactment of this Act and ending

6 on the date which is 1 year after such

7 date of enactment, the Commissioner

8 of Social Security shall redetermine

9 the eligibility of any individual who is

10 receiving benefits under such program

11 as of the date of the enactment of this

12 Act and whose eligibility for such ben13 efits may terminate by reason of the

14 provisions of this subsection.

15 (II) REDETERMINATION CRI16 TERIA.— With respect to any redeter17 mination under subclause (I), the

18 Commissioner of Social Security shall

19 apply the eligibility criteria for new

20 applicants for benefits under such

21 program.

22 (III) GRANDFATHER PROVI23 SION.—The provisions of this sub24 section and the redetermination under

25 subclause (I), shall only apply with re-
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1 spect to the benefits of an individual

2 described in subclause (I) for months

3 beginning on or after the date of the

4 redetermination with respect to such

5 individual.

6 (IV) NOTICE.—Not later than

7 January 1, 1997, the Commissioner of

8 Social Security shall notify an individ9 ual described in subclause (I) of the

10 provisions of this clause.

11 (ii) FOOD STAMPS.—

12 (I) IN GENERAL.—With respect

13 to the specified Federal program de14 scribed in paragraph (3)(B), during

15 the period beginning on the date of

16 enactment of this Act and ending on

17 the date which is 1 year after the date

18 of enactment, the State agency shall,

19 at the time of the recertification, re20 certify the eligibility of any individual

21 who is receiving benefits under such

22 program as of the date of enactment

23 of this Act and whose eligibility for

24 such benefits may terminate by reason

25 of the provisions of this subsection.
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1 (II) RECERTIFICATION CRI2 TERIA.—With respect to any recertifi3 cation under subclause (I), the State

4 agency shall apply the eligibility cri5 teria for applicants for benefits under

6 such program.

7 (III) GRANDFATHER PROVI8 SION.—The provisions of this sub9 section and the recertification under

10 subclause (I) shall only apply with re11 spect to the eligibility of an alien for

12 a program for months beginning on or

13 after the date of recertification, if on

14 the date of enactment of this Act the

15 alien is lawfully residing in any State

16 and is receiving benefits under such

17 program on such date of enactment.

18 (iii) MEDICAID.—

19 (I) IN GENERAL.—With respect

20 to the specified Federal program de21 scribed in paragraph (3)(C), during

22 the period beginning on the date of

23 enactment of this Act and ending on

24 the date which is 1 year after the date

25 of enactment, the State agency shall,
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1 at the time of the redetermination, re2 determine the eligibility of any indi3 vidual who is receiving benefits under

4 such program as of the date of enact5 ment of this Act and whose eligibility

6 for such benefits may terminate by

7 reason of the provisions of this sub8 section.

9 (II) REDETERMINATION.—With

10 respect to any redetermination under

11 subclause (I), the State agency shall

12 apply the eligibility criteria for appli13 cants for benefits under such pro14 gram.

15 (III) GRANDFATHER PROVI16 SION.—The provisions of this sub17 section and the redetermination under

18 subclause (I) shall only apply with re19 spect to the eligibility of an alien for

20 a program for months beginning on or

21 after the date of redetermination, if

22 on the date of enactment of this Act

23 the alien is lawfully residing in any

24 State and is receiving benefits under
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1 such program on such date of enact2 ment.

3 (3) SPECIFIED FEDERAL PROGRAM DEFINED.—

4 For purposes of this subtitle, the term ‘‘specified

5 Federal program’’ means any of the following:

6 (A) SSI.—The supplemental security in7 come program under title XVI of the Social Se8 curity Act, including supplementary payments

9 pursuant to an agreement for Federal adminis10 tration under section 1616(a) of the Social Se11 curity Act and payments pursuant to an agree12 ment entered into under section 212(b) of Pub13 lic Law 93–66.

14 (B) FOOD STAMPS.—The food stamp pro15 gram as defined in section 3(h) of the Food

16 Stamp Act of 1977.

17 (C) MEDICAID.—A State plan approved

18 under title XIX of the Social Security Act.

19 (b) LIMITED ELIGIBILITY FOR DESIGNATED FED20 ERAL PROGRAMS.—

21 (1) IN GENERAL.—Notwithstanding any other

22 provision of law and except as provided in section

23 4403 and paragraph (2), a State is authorized to de24 termine the eligibility of an alien who is a qualified
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1 alien (as defined in section 4431) for any designated

2 Federal program (as defined in paragraph (3)).

3 (2) EXCEPTIONS.—Qualified aliens under this

4 paragraph shall be eligible for any designated Fed5 eral program.

6 (A) TIME-LIMITED EXCEPTION FOR REFU7 GEES AND ASYLEES.—

8 (i) An alien who is admitted to the

9 United States as a refugee under section

10 207 of the Immigration and Nationality

11 Act until 5 years after the date of an

12 alien’s entry into the United States.

13 (ii) An alien who is granted asylum

14 under section 208 of such Act until 5 years

15 after the date of such grant of asylum.

16 (iii) An alien whose deportation is

17 being withheld under section 243(h) of

18 such Act until 5 years after such withhold19 ing.

20 (B) CERTAIN PERMANENT RESIDENT

21 ALIENS.—An alien who—

22 (i) is lawfully admitted to the United

23 States for permanent residence under the

24 Immigration and Nationality Act; and
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1 (ii)(I) has worked 40 qualifying quar2 ters of coverage as defined under title II of

3 the Social Security Act or can be credited

4 with such qualifying quarters as provided

5 under section 4435, and (II) did not re6 ceive any Federal means-tested public ben7 efit (as defined in section 4403(c)) during

8 any such quarter.

9 (C) VETERAN AND ACTIVE DUTY EXCEP10 TION.—An alien who is lawfully residing in any

11 State and is—

12 (i) a veteran (as defined in section

13 101 of title 38, United States Code) with

14 a discharge characterized as an honorable

15 discharge and not on account of alienage,

16 (ii) on active duty (other than active

17 duty for training) in the Armed Forces of

18 the United States, or

19 (iii) the spouse or unmarried depend20 ent child of an individual described in

21 clause (i) or (ii).

22 (D) TRANSITION FOR THOSE CURRENTLY

23 RECEIVING BENEFITS.—An alien who on the

24 date of the enactment of this Act is lawfully re25 siding in any State and is receiving benefits
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1 under such program on the date of the enact2 ment of this Act shall continue to be eligible to

3 receive such benefits until January 1, 1997.

4 (3) DESIGNATED FEDERAL PROGRAM DE5 FINED.—For purposes of this subtitle, the term

6 ‘‘designated Federal program’’ means any of the fol7 lowing:

8 (A) TEMPORARY ASSISTANCE FOR NEEDY

9 FAMILIES.—The program of block grants to

10 States for temporary assistance for needy fami11 lies under part A of title IV of the Social Secu12 rity Act.

13 (B) SOCIAL SERVICES BLOCK GRANT.—

14 The program of block grants to States for so15 cial services under title XX of the Social Secu16 rity Act.

17 SEC. 4403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

18 ALIENS FOR FEDERAL MEANS-TESTED PUB19 LIC BENEFIT.

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law and except as provided in subsection (b), an

22 alien who is a qualified alien (as defined in section 4431)

23 and who enters the United States on or after the date

24 of the enactment of this Act is not eligible for any Federal

25 means-tested public benefit (as defined in subsection (c))
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1 for a period of five years beginning on the date of the

2 alien’s entry into the United States with a status within

3 the meaning of the term ‘‘qualified alien’’.

4 (b) EXCEPTIONS.—The limitation under subsection

5 (a) shall not apply to the following aliens:

6 (1) EXCEPTION FOR REFUGEES AND

7 ASYLEES.—

8 (A) An alien who is admitted to the United

9 States as a refugee under section 207 of the

10 Immigration and Nationality Act.

11 (B) An alien who is granted asylum under

12 section 208 of such Act.

13 (C) An alien whose deportation is being

14 withheld under section 243(h) of such Act.

15 (2) VETERAN AND ACTIVE DUTY EXCEPTION.—

16 An alien who is lawfully residing in any State and

17 is—

18 (A) a veteran (as defined in section 101 of

19 title 38, United States Code) with a discharge

20 characterized as an honorable discharge and not

21 on account of alienage,

22 (B) on active duty (other than active duty

23 for training) in the Armed Forces of the United

24 States, or
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1 (C) the spouse or unmarried dependent

2 child of an individual described in subparagraph

3 (A) or (B).

4 (c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE5 FINED.—

6 (1) Except as provided in paragraph (2), for

7 purposes of this subtitle, the term ‘‘Federal means8 tested public benefit’’ means a public benefit (includ9 ing cash, medical, housing, and food assistance and

10 social services) of the Federal Government in which

11 the eligibility of an individual, household, or family

12 eligibility unit for benefits, or the amount of such

13 benefits, or both are determined on the basis of in14 come, resources, or financial need of the individual,

15 household, or unit.

16 (2) Such term does not include the following:

17 (A) Emergency medical services under title

18 XIX of the Social Security Act.

19 (B) Short-term, non-cash, in-kind emer20 gency disaster relief.

21 (C) Assistance or benefits under the Na22 tional School Lunch Act.

23 (D) Assistance or benefits under the Child

24 Nutrition Act of 1966.
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1 (E) Public health assistance for immuniza2 tions with respect to immunizable diseases and

3 for testing and treatment of symptoms of com4 municable diseases whether or not such symp5 toms are caused by a communicable disease.

6 (F) Payments for foster care and adoption

7 assistance under parts B and E of title IV of

8 the Social Security Act for a child who would,

9 in the absence of subsection (a), be eligible to

10 have such payments made on the child’s behalf

11 under such part, but only if the foster or adop12 tive parent or parents of such child are not de13 scribed under subsection (a).

14 (G) Programs, services, or assistance (such

15 as soup kitchens, crisis counseling and interven16 tion, and short-term shelter) specified by the

17 Attorney General, in the Attorney General’s

18 sole and unreviewable discretion after consulta19 tion with appropriate Federal agencies and de20 partments, which (i) deliver in-kind services at

21 the community level, including through public

22 or private nonprofit agencies; (ii) do not condi23 tion the provision of assistance, the amount of

24 assistance provided, or the cost of assistance

25 provided on the individual recipient’s income or
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1 resources; and (iii) are necessary for the protec2 tion of life or safety.

3 (H) Programs of student assistance under

4 titles IV, V, IX, and X of the Higher Education

5 Act of 1965.

6 (I) Means-tested programs under the Ele7 mentary and Secondary Education Act of 1965.

8 (J) Benefits under the Head Start Act.

9 (K) Benefits under the Job Training Part10 nership Act.

11 SEC. 4404. NOTIFICATION AND INFORMATION REPORTING.

12 (a) NOTIFICATION.—Each Federal agency that ad13 ministers a program to which section 4401, 4402, or 4403

14 applies shall, directly or through the States, post informa15 tion and provide general notification to the public and to

16 program recipients of the changes regarding eligibility for

17 any such program pursuant to this chapter.

18 (b) INFORMATION REPORTING UNDER TITLE IV OF

19 THE SOCIAL SECURITY ACT.—Part A of title IV of the

20 Social Security Act, as amended by section 4103(a) of this

21 Act, is amended by inserting the following new section

22 after section 411:
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1 ‘‘SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFOR2 MATION.

3 ‘‘Each State to which a grant is made under section

4 403 shall, at least 4 times annually and upon request of

5 the Immigration and Naturalization Service, furnish the

6 Immigration and Naturalization Service with the name

7 and address of, and other identifying information on, any

8 individual who the State knows is unlawfully in the United

9 States.’’.

10 (c) SSI.—Section 1631(e) of such Act (42 U.S.C.

11 1383(e)) is amended—

12 (1) by redesignating the paragraphs (6) and (7)

13 inserted by sections 206(d)(2) and 206(f)(1) of the

14 Social Security Independence and Programs Im15 provement Act of 1994 (Public Law 103–296; 108

16 Stat. 1514, 1515) as paragraphs (7) and (8), re17 spectively; and

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

19 paragraph:

20 ‘‘(9) Notwithstanding any other provision of law, the

21 Commissioner shall, at least 4 times annually and upon

22 request of the Immigration and Naturalization Service

23 (hereafter in this paragraph referred to as the ‘Service’),

24 furnish the Service with the name and address of, and

25 other identifying information on, any individual who the

26 Commissioner knows is unlawfully in the United States,
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1 and shall ensure that each agreement entered into under

2 section 1616(a) with a State provides that the State shall

3 furnish such information at such times with respect to any

4 individual who the State knows is unlawfully in the United

5 States.’’.

6 (d) INFORMATION REPORTING FOR HOUSING PRO7 GRAMS.—Title I of the United States Housing Act of 1937

8 (42 U.S.C. 1437 et seq.) is amended by adding at the end

9 the following new section:

10 ‘‘SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCE11 MENT AND OTHER AGENCIES.

12 ‘‘Notwithstanding any other provision of law, the Sec13 retary shall, at least 4 times annually and upon request

14 of the Immigration and Naturalization Service (hereafter

15 in this section referred to as the ‘Service’), furnish the

16 Service with the name and address of, and other identify17 ing information on, any individual who the Secretary

18 knows is unlawfully in the United States, and shall ensure

19 that each contract for assistance entered into under sec20 tion 6 or 8 of this Act with a public housing agency pro21 vides that the public housing agency shall furnish such

22 information at such times with respect to any individual

23 who the public housing agency knows is unlawfully in the

24 United States.’’.
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1 CHAPTER 2—ELIGIBILITY FOR STATE AND

2 LOCAL PUBLIC BENEFITS PROGRAMS

3 SEC. 4411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR

4 NONIMMIGRANTS INELIGIBLE FOR STATE

5 AND LOCAL PUBLIC BENEFITS.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law and except as provided in subsections (b) and

8 (d), an alien who is not—

9 (1) a qualified alien (as defined in section

10 4431),

11 (2) a nonimmigrant under the Immigration and

12 Nationality Act, or

13 (3) an alien who is paroled into the United

14 States under section 212(d)(5) of such Act for less

15 than one year,

16 is not eligible for any State or local public benefit (as de17 fined in subsection (c)).

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

19 with respect to the following State or local public benefits:

20 (1) Emergency medical services under title XIX

21 of the Social Security Act.

22 (2) Short-term, non-cash, in-kind emergency

23 disaster relief.

24 (3) Public health assistance for immunizations

25 with respect to immunizable diseases and for testing
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1 and treatment of symptoms of communicable dis2 eases whether or not such symptoms are caused by

3 a communicable disease.

4 (4) Programs, services, or assistance (such as

5 soup kitchens, crisis counseling and intervention,

6 and short-term shelter) specified by the Attorney

7 General, in the Attorney General’s sole and

8 unreviewable discretion after consultation with ap9 propriate Federal agencies and departments, which

10 (A) deliver in-kind services at the community level,

11 including through public or private nonprofit agen12 cies; (B) do not condition the provision of assistance,

13 the amount of assistance provided, or the cost of as14 sistance provided on the individual recipient’s in15 come or resources; and (C) are necessary for the

16 protection of life or safety.

17 (c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.—

18 (1) Except as provided in paragraph (2), for

19 purposes of this chapter the term ‘‘State or local

20 public benefit’’ means—

21 (A) any grant, contract, loan, professional

22 license, or commercial license provided by an

23 agency of a State or local government or by ap24 propriated funds of a State or local govern25 ment; and
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1 (B) any retirement, welfare, health, dis2 ability, public or assisted housing, postsecond3 ary education, food assistance, unemployment

4 benefit, or any other similar benefit for which

5 payments or assistance are provided to an indi6 vidual, household, or family eligibility unit by

7 an agency of a State or local government or by

8 appropriated funds of a State or local govern9 ment.

10 (2) Such term shall not apply—

11 (A) to any contract, professional license, or

12 commercial license for a nonimmigrant whose

13 visa for entry is related to such employment in

14 the United States; or

15 (B) with respect to benefits for an alien

16 who as a work authorized nonimmigrant or as

17 an alien lawfully admitted for permanent resi18 dence under the Immigration and Nationality

19 Act qualified for such benefits and for whom

20 the United States under reciprocal treaty agree21 ments is required to pay benefits, as determined

22 by the Secretary of State, after consultation

23 with the Attorney General.

24 (d) STATE AUTHORITY TO PROVIDE FOR ELIGI25 BILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL PUB-
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1 LIC BENEFITS.—A State may provide that an alien who

2 is not lawfully present in the United States is eligible for

3 any State or local public benefit for which such alien would

4 otherwise be ineligible under subsection (a) only through

5 the enactment of a State law after the date of the enact6 ment of this Act which affirmatively provides for such eli7 gibility.

8 SEC. 4412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF

9 QUALIFIED ALIENS FOR STATE PUBLIC BENE10 FITS.

11 (a) IN GENERAL.—Notwithstanding any other provi12 sion of law and except as provided in subsection (b), a

13 State is authorized to determine the eligibility for any

14 State public benefits (as defined in subsection (c) of an

15 alien who is a qualified alien (as defined in section 4431),

16 a nonimmigrant under the Immigration and Nationality

17 Act, or an alien who is paroled into the United States

18 under section 212(d)(5) of such Act for less than one year.

19 (b) EXCEPTIONS.—Qualified aliens under this sub20 section shall be eligible for any State public benefits.

21 (1) TIME-LIMITED EXCEPTION FOR REFUGEES

22 AND ASYLEES.—

23 (A) An alien who is admitted to the United

24 States as a refugee under section 207 of the

25 Immigration and Nationality Act until 5 years
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1 after the date of an alien’s entry into the Unit2 ed States.

3 (B) An alien who is granted asylum under

4 section 208 of such Act until 5 years after the

5 date of such grant of asylum.

6 (C) An alien whose deportation is being

7 withheld under section 243(h) of such Act until

8 5 years after such withholding.

9 (2) CERTAIN PERMANENT RESIDENT ALIENS.—

10 An alien who—

11 (A) is lawfully admitted to the United

12 States for permanent residence under the Im13 migration and Nationality Act; and

14 (B)(i) has worked 40 qualifying quarters

15 of coverage as defined under title II of the So16 cial Security Act or can be credited with such

17 qualifying quarters as provided under section

18 4435, and (ii) did not receive any Federal

19 means-tested public benefit (as defined in sec20 tion 4403(c)) during any such quarter.

21 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

22 An alien who is lawfully residing in any State and

23 is—

24 (A) a veteran (as defined in section 101 of

25 title 38, United States Code) with a discharge
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1 characterized as an honorable discharge and not

2 on account of alienage,

3 (B) on active duty (other than active duty

4 for training) in the Armed Forces of the United

5 States, or

6 (C) the spouse or unmarried dependent

7 child of an individual described in subparagraph

8 (A) or (B).

9 (4) TRANSITION FOR THOSE CURRENTLY RE10 CEIVING BENEFITS.—An alien who on the date of

11 the enactment of this Act is lawfully residing in any

12 State and is receiving benefits on the date of the en13 actment of this Act shall continue to be eligible to

14 receive such benefits until January 1, 1997.

15 (c) STATE PUBLIC BENEFITS DEFINED.—The term

16 ‘‘State public benefits’’ means any means-tested public

17 benefit of a State or political subdivision of a State under

18 which the State or political subdivision specifies the stand19 ards for eligibility, and does not include any Federal public

20 benefit.
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1 CHAPTER 3—ATTRIBUTION OF INCOME

2 AND AFFIDAVITS OF SUPPORT

3 SEC. 4421. FEDERAL ATTRIBUTION OF SPONSOR’S INCOME

4 AND RESOURCES TO ALIEN.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law, in determining the eligibility and the amount

7 of benefits of an alien for any Federal means-tested public

8 benefits program (as defined in section 4403(c)), the in9 come and resources of the alien shall be deemed to include

10 the following:

11 (1) The income and resources of any person

12 who executed an affidavit of support pursuant to

13 section 213A of the Immigration and Nationality

14 Act (as added by section 4423) on behalf of such

15 alien.

16 (2) The income and resources of the spouse (if

17 any) of the person.

18 (b) APPLICATION.—Subsection (a) shall apply with

19 respect to an alien until such time as the alien—

20 (1) achieves United States citizenship through

21 naturalization pursuant to chapter 2 of title III of

22 the Immigration and Nationality Act; or

23 (2)(A) has worked 40 qualifying quarters of

24 coverage as defined under title II of the Social Secu25 rity Act or can be credited with such qualifying
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1 quarters as provided under section 4435, and (B)

2 did not receive any Federal means-tested public ben3 efit (as defined in section 4403(c)) during any such

4 quarter.

5 (c) REVIEW OF INCOME AND RESOURCES OF ALIEN

6 UPON REAPPLICATION.—Whenever an alien is required to

7 reapply for benefits under any Federal means-tested pub8 lic benefits program, the applicable agency shall review the

9 income and resources attributed to the alien under sub10 section (a).

11 (d) APPLICATION.—

12 (1) If on the date of the enactment of this Act,

13 a Federal means-tested public benefits program at14 tributes a sponsor’s income and resources to an alien

15 in determining the alien’s eligibility and the amount

16 of benefits for an alien, this section shall apply to

17 any such determination beginning on the day after

18 the date of the enactment of this Act.

19 (2) If on the date of the enactment of this Act,

20 a Federal means-tested public benefits program does

21 not attribute a sponsor’s income and resources to an

22 alien in determining the alien’s eligibility and the

23 amount of benefits for an alien, this section shall

24 apply to any such determination beginning 180 days

25 after the date of the enactment of this Act.
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1 SEC. 4422. AUTHORITY FOR STATES TO PROVIDE FOR AT2 TRIBUTION OF SPONSORS INCOME AND RE3 SOURCES TO THE ALIEN WITH RESPECT TO

4 STATE PROGRAMS.

5 (a) OPTIONAL APPLICATION TO STATE PROGRAMS.—

6 Except as provided in subsection (b), in determining the

7 eligibility and the amount of benefits of an alien for any

8 State public benefits (as defined in section 4412(c)), the

9 State or political subdivision that offers the benefits is au10 thorized to provide that the income and resources of the

11 alien shall be deemed to include—

12 (1) the income and resources of any individual

13 who executed an affidavit of support pursuant to

14 section 213A of the Immigration and Nationality

15 Act (as added by section 4423) on behalf of such

16 alien, and

17 (2) the income and resources of the spouse (if

18 any) of the individual.

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

20 with respect to the following State public benefits:

21 (1) Emergency medical services.

22 (2) Short-term, non-cash, in-kind emergency

23 disaster relief.

24 (3) Programs comparable to assistance or bene25 fits under the National School Lunch Act.
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1 (4) Programs comparable to assistance or bene2 fits under the Child Nutrition Act of 1966.

3 (5) Public health assistance for immunizations

4 with respect to immunizable diseases and for testing

5 and treatment of symptoms of communicable dis6 eases whether or not such symptoms are caused by

7 a communicable disease.

8 (6) Payments for foster care and adoption as9 sistance.

10 (7) Programs, services, or assistance (such as

11 soup kitchens, crisis counseling and intervention,

12 and short-term shelter) specified by the Attorney

13 General of a State, after consultation with appro14 priate agencies and departments, which (A) deliver

15 in-kind services at the community level, including

16 through public or private nonprofit agencies; (B) do

17 not condition the provision of assistance, the amount

18 of assistance provided, or the cost of assistance pro19 vided on the individual recipient’s income or re20 sources; and (C) are necessary for the protection of

21 life or safety.
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1 SEC. 4423. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

2 SUPPORT.

3 (a) IN GENERAL.—Title II of the Immigration and

4 Nationality Act is amended by inserting after section 213

5 the following new section:

6 ‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

7 ‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit

8 of support may be accepted by the Attorney General or

9 by any consular officer to establish that an alien is not

10 excludable as a public charge under section 212(a)(4) un11 less such affidavit is executed as a contract—

12 ‘‘(A) which is legally enforceable against the

13 sponsor by the sponsored alien, the Federal Govern14 ment, and by any State (or any political subdivision

15 of such State) which provides any means-tested pub16 lic benefits program, but not later than 10 years

17 after the alien last receives any such benefit;

18 ‘‘(B) in which the sponsor agrees to financially

19 support the alien, so that the alien will not become

20 a public charge; and

21 ‘‘(C) in which the sponsor agrees to submit to

22 the jurisdiction of any Federal or State court for the

23 purpose of actions brought under subsection (e)(2).

24 ‘‘(2) A contract under paragraph (1) shall be enforce25 able with respect to benefits provided to the alien until
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1 such time as the alien achieves United States citizenship

2 through naturalization pursuant to chapter 2 of title III.

3 ‘‘(b) FORMS.—Not later than 90 days after the date

4 of enactment of this section, the Attorney General, in con5 sultation with the Secretary of State and the Secretary

6 of Health and Human Services, shall formulate an affida7 vit of support consistent with the provisions of this sec8 tion.

9 ‘‘(c) REMEDIES.—Remedies available to enforce an

10 affidavit of support under this section include any or all

11 of the remedies described in section 3201, 3203, 3204,

12 or 3205 of title 28, United States Code, as well as an

13 order for specific performance and payment of legal fees

14 and other costs of collection, and include corresponding

15 remedies available under State law. A Federal agency may

16 seek to collect amounts owed under this section in accord17 ance with the provisions of subchapter II of chapter 37

18 of title 31, United States Code.

19 ‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—

20 ‘‘(1) IN GENERAL.—The sponsor shall notify

21 the Attorney General and the State in which the

22 sponsored alien is currently resident within 30 days

23 of any change of address of the sponsor during the

24 period specified in subsection (a)(2).
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1 ‘‘(2) PENALTY.—Any person subject to the re2 quirement of paragraph (1) who fails to satisfy such

3 requirement shall be subject to a civil penalty of—

4 ‘‘(A) not less than $250 or more than

5 $2,000, or

6 ‘‘(B) if such failure occurs with knowledge

7 that the alien has received any means-tested

8 public benefit, not less than $2,000 or more

9 than $5,000.

10 ‘‘(e) REIMBURSEMENT OF GOVERNMENT EX11 PENSES.—(1)(A) Upon notification that a sponsored alien

12 has received any benefit under any means-tested public

13 benefits program, the appropriate Federal, State, or local

14 official shall request reimbursement by the sponsor in the

15 amount of such assistance.

16 ‘‘(B) The Attorney General, in consultation with the

17 Secretary of Health and Human Services, shall prescribe

18 such regulations as may be necessary to carry out sub19 paragraph (A).

20 ‘‘(2) If within 45 days after requesting reimburse21 ment, the appropriate Federal, State, or local agency has

22 not received a response from the sponsor indicating a will23 ingness to commence payments, an action may be brought

24 against the sponsor pursuant to the affidavit of support.
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1 ‘‘(3) If the sponsor fails to abide by the repayment

2 terms established by such agency, the agency may, within

3 60 days of such failure, bring an action against the spon4 sor pursuant to the affidavit of support.

5 ‘‘(4) No cause of action may be brought under this

6 subsection later than 10 years after the alien last received

7 any benefit under any means-tested public benefits pro8 gram.

9 ‘‘(5) If, pursuant to the terms of this subsection, a

10 Federal, State, or local agency requests reimbursement

11 from the sponsor in the amount of assistance provided,

12 or brings an action against the sponsor pursuant to the

13 affidavit of support, the appropriate agency may appoint

14 or hire an individual or other person to act on behalf of

15 such agency acting under the authority of law for purposes

16 of collecting any moneys owed. Nothing in this subsection

17 shall preclude any appropriate Federal, State, or local

18 agency from directly requesting reimbursement from a

19 sponsor for the amount of assistance provided, or from

20 bringing an action against a sponsor pursuant to an affi21 davit of support.

22 ‘‘(f) DEFINITIONS.—For the purposes of this sec23 tion—

24 ‘‘(1) SPONSOR.—The term ‘sponsor’ means an

25 individual who—
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1 ‘‘(A) is a citizen or national of the United

2 States or an alien who is lawfully admitted to

3 the United States for permanent residence;

4 ‘‘(B) is 18 years of age or over;

5 ‘‘(C) is domiciled in any of the 50 States

6 or the District of Columbia; and

7 ‘‘(D) is the person petitioning for the ad8 mission of the alien under section 204.

9 ‘‘(2) MEANS-TESTED PUBLIC BENEFITS PRO10 GRAM.—The term ‘means-tested public benefits pro11 gram’ means a program of public benefits (including

12 cash, medical, housing, and food assistance and so13 cial services) of the Federal Government or of a

14 State or political subdivision of a State in which the

15 eligibility of an individual, household, or family eligi16 bility unit for benefits under the program, or the

17 amount of such benefits, or both are determined on

18 the basis of income, resources, or financial need of

19 the individual, household, or unit.’’.

20 (b) CLERICAL AMENDMENT.—The table of contents

21 of such Act is amended by inserting after the item relating

22 to section 213 the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

23 (c) EFFECTIVE DATE.—Subsection (a) of section

24 213A of the Immigration and Nationality Act, as inserted

25 by subsection (a) of this section, shall apply to affidavits
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1 of support executed on or after a date specified by the

2 Attorney General, which date shall be not earlier than 60

3 days (and not later than 90 days) after the date the Attor4 ney General formulates the form for such affidavits under

5 subsection (b) of such section.

6 (d) BENEFITS NOT SUBJECT TO REIMBURSE7 MENT.—Requirements for reimbursement by a sponsor for

8 benefits provided to a sponsored alien pursuant to an affi9 davit of support under section 213A of the Immigration

10 and Nationality Act shall not apply with respect to the

11 following:

12 (1) Emergency medical services under title XIX

13 of the Social Security Act.

14 (2) Short-term, non-cash, in-kind emergency

15 disaster relief.

16 (3) Assistance or benefits under the National

17 School Lunch Act.

18 (4) Assistance or benefits under the Child Nu19 trition Act of 1966.

20 (5) Public health assistance for immunizations

21 with respect to immunizable diseases and for testing

22 and treatment of symptoms of communicable dis23 eases whether or not such symptoms are caused by

24 a communicable disease.
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1 (6) Payments for foster care and adoption as2 sistance under part B of title IV of the Social Secu3 rity Act for a child, but only if the foster or adoptive

4 parent or parents of such child are not otherwise in5 eligible pursuant to section 4403 of this Act.

6 (7) Programs, services, or assistance (such as

7 soup kitchens, crisis counseling and intervention,

8 and short-term shelter) specified by the Attorney

9 General, in the Attorney General’s sole and

10 unreviewable discretion after consultation with ap11 propriate Federal agencies and departments, which

12 (A) deliver in-kind services at the community level,

13 including through public or private nonprofit agen14 cies; (B) do not condition the provision of assistance,

15 the amount of assistance provided, or the cost of as16 sistance provided on the individual recipient’s in17 come or resources; and (C) are necessary for the

18 protection of life or safety.

19 (8) Programs of student assistance under titles

20 IV, V, IX, and X of the Higher Education Act of

21 1965.

22 (9) Benefits under the Head Start Act.

23 (10) Means-tested programs under the Elemen24 tary and Secondary Education Act of 1965.
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1 (11) Benefits under the Job Training Partner2 ship Act.

3 CHAPTER 4—GENERAL PROVISIONS

4 SEC. 4431. DEFINITIONS.

5 (a) IN GENERAL.—Except as otherwise provided in

6 this subtitle, the terms used in this subtitle have the same

7 meaning given such terms in section 101(a) of the Immi8 gration and Nationality Act.

9 (b) QUALIFIED ALIEN.—For purposes of this sub10 title, the term ‘‘qualified alien’’ means an alien who, at

11 the time the alien applies for, receives, or attempts to re12 ceive a Federal public benefit, is—

13 (1) an alien who is lawfully admitted for perma14 nent residence under the Immigration and National15 ity Act,

16 (2) an alien who is granted asylum under sec17 tion 208 of such Act,

18 (3) a refugee who is admitted to the United

19 States under section 207 of such Act,

20 (4) an alien who is paroled into the United

21 States under section 212(d)(5) of such Act for a pe22 riod of at least 1 year,

23 (5) an alien whose deportation is being withheld

24 under section 243(h) of such Act, or
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1 (6) an alien who is granted conditional entry

2 pursuant to section 203(a)(7) of such Act as in ef3 fect prior to April 1, 1980.

4 SEC. 4432. VERIFICATION OF ELIGIBILITY FOR FEDERAL

5 PUBLIC BENEFITS.

6 (a) IN GENERAL.—Not later than 18 months after

7 the date of the enactment of this Act, the Attorney Gen8 eral of the United States, after consultation with the Sec9 retary of Health and Human Services, shall promulgate

10 regulations requiring verification that a person applying

11 for a Federal public benefit (as defined in section

12 4401(c)), to which the limitation under section 4401 ap13 plies, is a qualified alien and is eligible to receive such

14 benefit. Such regulations shall, to the extent feasible, re15 quire that information requested and exchanged be similar

16 in form and manner to information requested and ex17 changed under section 1137 of the Social Security Act.

18 (b) STATE COMPLIANCE.—Not later than 24 months

19 after the date the regulations described in subsection (a)

20 are adopted, a State that administers a program that pro21 vides a Federal public benefit shall have in effect a ver22 ification system that complies with the regulations.

23 (c) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated such sums as may be

25 necessary to carry out the purpose of this section.
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1 SEC. 4433. STATUTORY CONSTRUCTION.

2 (a) LIMITATION.—

3 (1) Nothing in this subtitle may be construed

4 as an entitlement or a determination of an individ5 ual’s eligibility or fulfillment of the requisite require6 ments for any Federal, State, or local governmental

7 program, assistance, or benefits. For purposes of

8 this subtitle, eligibility relates only to the general

9 issue of eligibility or ineligibility on the basis of

10 alienage.

11 (2) Nothing in this subtitle may be construed

12 as addressing alien eligibility for a basic public edu13 cation as determined by the Supreme Court of the

14 United States under Plyler v. Doe (457 U.S.

15 202)(1982).

16 (b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—

17 This subtitle does not apply to any Federal, State, or local

18 governmental program, assistance, or benefits provided to

19 an alien under any program of foreign assistance as deter20 mined by the Secretary of State in consultation with the

21 Attorney General.

22 (c) SEVERABILITY.—If any provision of this subtitle

23 or the application of such provision to any person or cir24 cumstance is held to be unconstitutional, the remainder

25 of this subtitle and the application of the provisions of
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1 such to any person or circumstance shall not be affected

2 thereby.

3 SEC. 4434. COMMUNICATION BETWEEN STATE AND LOCAL

4 GOVERNMENT AGENCIES AND THE IMMIGRA5 TION AND NATURALIZATION SERVICE.

6 Notwithstanding any other provision of Federal,

7 State, or local law, no State or local government entity

8 may be prohibited, or in any way restricted, from sending

9 to or receiving from the Immigration and Naturalization

10 Service information regarding the immigration status,

11 lawful or unlawful, of an alien in the United States.

12 SEC. 4435. QUALIFYING QUARTERS.

13 For purposes of this subtitle, in determining the

14 number of qualifying quarters of coverage under title II

15 of the Social Security Act an alien shall be credited with—

16 (1) all of the qualifying quarters of coverage as

17 defined under title II of the Social Security Act

18 worked by a parent of such alien while the alien was

19 under age 18 if the parent did not receive any Fed20 eral means-tested public benefit (as defined in sec21 tion 4403(c)) during any such quarter, and

22 (2) all of the qualifying quarters worked by a

23 spouse of such alien during their marriage if the

24 spouse did not receive any Federal means-tested

25 public benefit (as defined in section 4403(c)) during
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1 any such quarter and the alien remains married to

2 such spouse or such spouse is deceased.

3 CHAPTER 5—CONFORMING AMENDMENTS

4 RELATING TO ASSISTED HOUSING

5 SEC. 4441. CONFORMING AMENDMENTS RELATING TO AS6 SISTED HOUSING.

7 (a) LIMITATIONS ON ASSISTANCE.—Section 214 of

8 the Housing and Community Development Act of 1980

9 (42 U.S.C. 1436a) is amended—

10 (1) by striking ‘‘Secretary of Housing and

11 Urban Development’’ each place it appears and in12 serting ‘‘applicable Secretary’’;

13 (2) in subsection (b), by inserting after ‘‘Na14 tional Housing Act,’’ the following: ‘‘the direct loan

15 program under section 502 of the Housing Act of

16 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or

17 542 of such Act, subtitle A of title III of the Cran18 ston-Gonzalez National Affordable Housing Act,’’;

19 (3) in paragraphs (2) through (6) of subsection

20 (d), by striking ‘‘Secretary’’ each place it appears

21 and inserting ‘‘applicable Secretary’’;

22 (4) in subsection (d), in the matter following

23 paragraph (6), by striking ‘‘the term ‘Secretary’’’

24 and inserting ‘‘the term ‘applicable Secretary’’’; and
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1 (5) by adding at the end the following new sub2 section:

3 ‘‘(h) For purposes of this section, the term ‘applicable

4 Secretary’ means—

5 ‘‘(1) the Secretary of Housing and Urban De6 velopment, with respect to financial assistance ad7 ministered by such Secretary and financial assist8 ance under subtitle A of title III of the Cranston9 Gonzalez National Affordable Housing Act; and

10 ‘‘(2) the Secretary of Agriculture, with respect

11 to financial assistance administered by such Sec12 retary.’’.

13 (b) CONFORMING AMENDMENTS.—Section 501(h) of

14 the Housing Act of 1949 (42 U.S.C. 1471(h)) is amend15 ed—

16 (1) by striking ‘‘(1)’’;

17 (2) by striking ‘‘by the Secretary of Housing

18 and Urban Development’’; and

19 (3) by striking paragraph (2).
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1 CHAPTER 6—EARNED INCOME CREDIT

2 DENIED TO UNAUTHORIZED EMPLOYEES

3 SEC. 4451. EARNED INCOME CREDIT DENIED TO INDIVID4 UALS NOT AUTHORIZED TO BE EMPLOYED IN

5 THE UNITED STATES.

6 (a) IN GENERAL.—Section 32(c)(1) of the Internal

7 Revenue Code of 1986 (relating to individuals eligible to

8 claim the earned income credit) is amended by adding at

9 the end the following new subparagraph:

10 ‘‘(F) IDENTIFICATION NUMBER REQUIRE11 MENT.—The term ‘eligible individual’ does not

12 include any individual who does not include on

13 the return of tax for the taxable year—

14 ‘‘(i) such individual’s taxpayer identi15 fication number, and

16 ‘‘(ii) if the individual is married (with17 in the meaning of section 7703), the tax18 payer identification number of such indi19 vidual’s spouse.’’.

20 (b) SPECIAL IDENTIFICATION NUMBER.—Section 32

21 of such Code is amended by adding at the end the follow22 ing new subsection:

23 ‘‘(l) IDENTIFICATION NUMBERS.—Solely for pur24 poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer

25 identification number means a social security number is-
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1 sued to an individual by the Social Security Administra2 tion (other than a social security number issued pursuant

3 to clause (II) (or that portion of clause (III) that relates

4 to clause (II)) of section 205(c)(2)(B)(i) of the Social Se5 curity Act).’’.

6 (c) EXTENSION OF PROCEDURES APPLICABLE TO

7 MATHEMATICAL OR CLERICAL ERRORS.—Section

8 6213(g)(2) of such Code (relating to the definition of

9 mathematical or clerical errors) is amended by striking

10 ‘‘and’ at the end of subparagraph (D), by striking the pe11 riod at the end of subparagraph (E) and inserting a

12 comma, and by inserting after subparagraph (E) the fol13 lowing new subparagraphs:

14 ‘‘(F) an omission of a correct taxpayer

15 identification number required under section 32

16 (relating to the earned income tax credit) to be

17 included on a return, and

18 ‘‘(G) an entry on a return claiming the

19 credit under section 32 with respect to net

20 earnings from self-employment described in sec21 tion 32(c)(2)(A) to the extent the tax imposed

22 by section 1401 (relating to self-employment

23 tax) on such net earnings has not been paid.’’
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1995.

4 Subtitle E—Reform of Public

5 Housing

6 SEC. 4601. FRAUD UNDER MEANS-TESTED WELFARE AND

7 PUBLIC ASSISTANCE PROGRAMS.

8 (a) IN GENERAL.—If an individual’s benefits under

9 a Federal, State, or local law relating to a means-tested

10 welfare or a public assistance program are reduced be11 cause of an act of fraud by the individual under the law

12 or program, the individual may not, for the duration of

13 the reduction, receive an increased benefit under any other

14 means-tested welfare or public assistance program for

15 which Federal funds are appropriated as a result of a de16 crease in the income of the individual (determined under

17 the applicable program) attributable to such reduction.

18 (b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS

19 FOR WHICH FEDERAL FUNDS ARE APPROPRIATED.—For

20 purposes of subsection (a), the term ‘‘means-tested welfare

21 or public assistance program for which Federal funds are

22 appropriated’’ includes the food stamp program under the

23 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any

24 program of public or assisted housing under title I of the

25 United States Housing Act of 1937 (42 U.S.C. 1437 et
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1 seq.), and State programs funded under part A of title

2 IV of the Social Security Act (42 U.S.C. 601 et seq.).

3 Subtitle F—Child Protection Block

4 Grant Programs and Foster

5 Care, Adoption Assistance, and

6 Independent Living Programs

7 CHAPTER 1—CHILD PROTECTION BLOCK

8 GRANT PROGRAM AND FOSTER CARE,

9 ADOPTION ASSISTANCE, AND INDE10 PENDENT LIVING PROGRAMS

11 Subchapter A—Block Grants to States for the

12 Protection of Children

13 SEC. 4701. ESTABLISHMENT OF PROGRAM.

14 Title IV of the Social Security Act (42 U.S.C. 601

15 et seq.) is amended by striking part B and inserting the

16 following:

17 ‘‘PART B—BLOCK GRANTS TO STATES FOR THE

18 PROTECTION OF CHILDREN

19 ‘‘SEC. 421. PURPOSE.

20 ‘‘The purpose of this part is to enable eligible States

21 to carry out a child protection program to—

22 ‘‘(1) identify and assist families at risk of abus23 ing or neglecting their children;

24 ‘‘(2) operate a system for receiving reports of

25 abuse or neglect of children;
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1 ‘‘(3) improve the intake, assessment, screening,

2 and investigation of reports of abuse and neglect;

3 ‘‘(4) enhance the general child protective sys4 tem by improving risk and safety assessment tools

5 and protocols;

6 ‘‘(5) improve legal preparation and representa7 tion, including procedures for appealing and re8 sponding to appeals of substantiated reports of

9 abuse and neglect;

10 ‘‘(6) provide support, treatment, and family

11 preservation services to families which are, or are at

12 risk of, abusing or neglecting their children;

13 ‘‘(7) support children who must be removed

14 from or who cannot live with their families;

15 ‘‘(8) make timely decisions about permanent liv16 ing arrangements for children who must be removed

17 from or who cannot live with their families;

18 ‘‘(9) provide for continuing evaluation and im19 provement of child protection laws, regulations, and

20 services;

21 ‘‘(10) develop and facilitate training protocols

22 for individuals mandated to report child abuse or ne23 glect; and

24 ‘‘(11) develop and enhance the capacity of com25 munity-based programs to integrate shared leader-
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1 ship strategies between parents and professionals to

2 prevent and treat child abuse and neglect at the

3 neighborhood level.

4 ‘‘SEC. 422. ELIGIBLE STATES.

5 ‘‘(a) IN GENERAL.—As used in this part, the term

6 ‘eligible State’ means a State that has submitted to the

7 Secretary, not later than October 1, 1996, and every 3

8 years thereafter, a plan which has been signed by the chief

9 executive officer of the State and that includes the follow10 ing:

11 ‘‘(1) OUTLINE OF CHILD PROTECTION PRO12 GRAM.—A written document that outlines the activi13 ties the State intends to conduct to achieve the pur14 pose of this part, including the procedures to be

15 used for—

16 ‘‘(A) receiving and assessing reports of

17 child abuse or neglect;

18 ‘‘(B) investigating such reports;

19 ‘‘(C) with respect to families in which

20 abuse or neglect has been confirmed, providing

21 services or referral for services for families and

22 children where the State makes a determination

23 that the child may safely remain with the fam24 ily;
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1 ‘‘(D) protecting children by removing them

2 from dangerous settings and ensuring their

3 placement in a safe environment;

4 ‘‘(E) providing training for individuals

5 mandated to report suspected cases of child

6 abuse or neglect;

7 ‘‘(F) protecting children in foster care;

8 ‘‘(G) promoting timely adoptions;

9 ‘‘(H) protecting the rights of families,

10 using adult relatives as the preferred placement

11 for children separated from their parents where

12 such relatives meet the relevant State child pro13 tection standards; and

14 ‘‘(I) providing services to individuals, fami15 lies, or communities, either directly or through

16 referral, that are aimed at preventing the occur17 rence of child abuse and neglect.

18 ‘‘(2) CERTIFICATION OF STATE LAW REQUIRING

19 THE REPORTING OF CHILD ABUSE AND NEGLECT.—

20 A certification that the State has in effect laws that

21 require public officials and other professionals to re22 port, in good faith, actual or suspected instances of

23 child abuse or neglect.

24 ‘‘(3) CERTIFICATION OF PROCEDURES FOR

25 SCREENING, SAFETY ASSESSMENT, AND PROMPT IN-
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1 VESTIGATION.—A certification that the State has in

2 effect procedures for receiving and responding to re3 ports of child abuse or neglect, including the reports

4 described in paragraph (2), and for the immediate

5 screening, safety assessment, and prompt investiga6 tion of such reports.

7 ‘‘(4) CERTIFICATION OF STATE PROCEDURES

8 FOR REMOVAL AND PLACEMENT OF ABUSED OR NE9 GLECTED CHILDREN.—A certification that the State

10 has in effect procedures for the removal from fami11 lies and placement of abused or neglected children

12 and of any other child in the same household who

13 may also be in danger of abuse or neglect.

14 ‘‘(5) CERTIFICATION OF PROVISIONS FOR IMMU15 NITY FROM PROSECUTION.—A certification that the

16 State has in effect laws requiring immunity from

17 prosecution under State and local laws and regula18 tions for individuals making good faith reports of

19 suspected or known instances of child abuse or ne20 glect.

21 ‘‘(6) CERTIFICATION OF PROVISIONS AND PRO22 CEDURES RELATING TO APPEALS.—A certification

23 that not later than 2 years after the date of the en24 actment of this part, the State shall have laws and

25 procedures in effect affording individuals an oppor-
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1 tunity to appeal an official finding of abuse or ne2 glect.

3 ‘‘(7) CERTIFICATION OF STATE PROCEDURES

4 FOR DEVELOPING AND REVIEWING WRITTEN PLANS

5 FOR PERMANENT PLACEMENT OF REMOVED CHIL6 DREN.—A certification that the State has in effect

7 procedures for ensuring that a written plan is pre8 pared for children who have been removed from their

9 families. Such plan shall specify the goals for achiev10 ing a permanent placement for the child in a timely

11 fashion, for ensuring that the written plan is re12 viewed every 6 months (until such placement is

13 achieved), and for ensuring that information about

14 such children is collected regularly and recorded in

15 case records, and include a description of such pro16 cedures.

17 ‘‘(8) CERTIFICATION OF STATE PROGRAM TO

18 PROVIDE INDEPENDENT LIVING SERVICES.—A cer19 tification that the State has in effect a program to

20 provide independent living services, for assistance in

21 making the transition to self-sufficient adulthood, to

22 individuals in the child protection program of the

23 State who are 16, but who are not 20 (or, at the op24 tion of the State, 22), years of age, and who do not

25 have a family to which to be returned.
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1 ‘‘(9) CERTIFICATION OF STATE PROCEDURES

2 TO RESPOND TO REPORTING OF MEDICAL NEGLECT

3 OF DISABLED INFANTS.—

4 ‘‘(A) IN GENERAL.—A certification that

5 the State has in place for the purpose of re6 sponding to the reporting of medical neglect of

7 infants (including instances of withholding of

8 medically indicated treatment from disabled in9 fants with life-threatening conditions), proce10 dures or programs, or both (within the State

11 child protective services system), to provide

12 for—

13 ‘‘(i) coordination and consultation

14 with individuals designated by and within

15 appropriate health-care facilities;

16 ‘‘(ii) prompt notification by individ17 uals designated by and within appropriate

18 health-care facilities of cases of suspected

19 medical neglect (including instances of

20 withholding of medically indicated treat21 ment from disabled infants with life-threat22 ening conditions); and

23 ‘‘(iii) authority, under State law, for

24 the State child protective service to pursue

25 any legal remedies, including the authority
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1 to initiate legal proceedings in a court of

2 competent jurisdiction, as may be nec3 essary to prevent the withholding of medi4 cally indicated treatment from disabled in5 fants with life-threatening conditions.

6 ‘‘(B) WITHHOLDING OF MEDICALLY INDI7 CATED TREATMENT.—As used in subparagraph

8 (A), the term ‘withholding of medically indi9 cated treatment’ means the failure to respond

10 to the infant’s life-threatening conditions by

11 providing treatment (including appropriate nu12 trition, hydration, and medication) which, in the

13 treating physician’s or physicians’ reasonable

14 medical judgment, will be most likely to be ef15 fective in ameliorating or correcting all such

16 conditions, except that such term does not in17 clude the failure to provide treatment (other

18 than appropriate nutrition, hydration, or medi19 cation) to an infant when, in the treating physi20 cian’s or physicians’ reasonable medical judg21 ment—

22 ‘‘(i) the infant is chronically and irre23 versibly comatose;

24 ‘‘(ii) the provision of such treatment

25 would—
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1 ‘‘(I) merely prolong dying;

2 ‘‘(II) not be effective in amelio3 rating or correcting all of the infant’s

4 life-threatening conditions; or

5 ‘‘(III) otherwise be futile in

6 terms of the survival of the infant; or

7 ‘‘(iii) the provision of such treatment

8 would be virtually futile in terms of the

9 survival of the infant and the treatment it10 self under such circumstances would be in11 humane.

12 ‘‘(10) IDENTIFICATION OF CHILD PROTECTION

13 GOALS.—The quantitative goals of the State child

14 protection program.

15 ‘‘(11) CERTIFICATION OF CHILD PROTECTION

16 STANDARDS.—With respect to fiscal years beginning

17 on or after April 1, 1996, a certification that the

18 State—

19 ‘‘(A) has completed an inventory of all

20 children who, before the inventory, had been in

21 foster care under the responsibility of the State

22 for 6 months or more, which determined—

23 ‘‘(i) the appropriateness of, and neces24 sity for, the foster care placement;
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1 ‘‘(ii) whether the child could or should

2 be returned to the parents of the child or

3 should be freed for adoption or other per4 manent placement; and

5 ‘‘(iii) the services necessary to facili6 tate the return of the child or the place7 ment of the child for adoption or legal

8 guardianship;

9 ‘‘(B) is operating, to the satisfaction of the

10 Secretary—

11 ‘‘(i) a statewide information system

12 from which can be readily determined the

13 status, demographic characteristics, loca14 tion, and goals for the placement of every

15 child who is (or, within the immediately

16 preceding 12 months, has been) in foster

17 care;

18 ‘‘(ii) a case review system for each

19 child receiving foster care under the super20 vision of the State;

21 ‘‘(iii) a service program designed to

22 help children—

23 ‘‘(I) where appropriate, return to

24 families from which they have been

25 removed; or
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1 ‘‘(II) be placed for adoption, with

2 a legal guardian, or if adoption or

3 legal guardianship is determined not

4 to be appropriate for a child, in some

5 other planned, permanent living ar6 rangement; and

7 ‘‘(iv) a preplacement preventive serv8 ices program designed to help children at

9 risk for foster care placement remain with

10 their families; and

11 ‘‘(C)(i) has reviewed (or not later than Oc12 tober 1, 1997, will review) State policies and

13 administrative and judicial procedures in effect

14 for children abandoned at or shortly after birth

15 (including policies and procedures providing for

16 legal representation of such children); and

17 ‘‘(ii) is implementing (or not later than Oc18 tober 1, 1997, will implement) such policies and

19 procedures as the State determines, on the

20 basis of the review described in clause (i), to be

21 necessary to enable permanent decisions to be

22 made expeditiously with respect to the place23 ment of such children.

24 ‘‘(12) CERTIFICATION OF REASONABLE EF25 FORTS BEFORE PLACEMENT OF CHILDREN IN FOS-
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1 TER CARE.—A certification that the State in each

2 case will—

3 ‘‘(A) make reasonable efforts prior to the

4 placement of a child in foster care, to prevent

5 or eliminate the need for removal of the child

6 from the child’s home, and to make it possible

7 for the child to return home; and

8 ‘‘(B) with respect to families in which

9 abuse or neglect has been confirmed, provide

10 services or referral for services for families and

11 children where the State makes a determination

12 that the child may safely remain with the fam13 ily.

14 ‘‘(13) CERTIFICATION OF COOPERATIVE EF15 FORTS.—A certification by the State, where appro16 priate, that all steps will be taken, including cooper17 ative efforts with the State agencies administering

18 the plans approved under parts A and D, to secure

19 an assignment to the State of any rights to support

20 on behalf of each child receiving foster care mainte21 nance payments under part E.

22 ‘‘(14) CERTIFICATION OF CONFIDENTIALITY

23 AND REQUIREMENTS FOR INFORMATION DISCLO24 SURE.—
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1 ‘‘(A) IN GENERAL.—A certification that

2 the State has in effect and operational—

3 ‘‘(i) requirements ensuring that re4 ports and records made and maintained

5 pursuant to the purposes of this part shall

6 only be made available to—

7 ‘‘(I) individuals who are the sub8 ject of the report;

9 ‘‘(II) Federal, State, or local gov10 ernment entities, or any agent of such

11 entities, having a need for such infor12 mation in order to carry out their re13 sponsibilities under law to protect

14 children from abuse and neglect;

15 ‘‘(III) child abuse citizen review

16 panels;

17 ‘‘(IV) child fatality review panels;

18 ‘‘(V) a grand jury or court, upon

19 a finding that information in the

20 record is necessary for the determina21 tion of an issue before the court or

22 grand jury; and

23 ‘‘(VI) other entities or classes of

24 individuals statutorily authorized by

25 the State to receive such information
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1 pursuant to a legitimate State pur2 pose; and

3 ‘‘(ii) provisions that allow for public

4 disclosure of the findings or information

5 about cases of child abuse or neglect that

6 have resulted in a child fatality or near fa7 tality.

8 ‘‘(B) LIMITATION.—Disclosures made pur9 suant to clause (i) or (ii) shall not include the

10 identifying information concerning the individ11 ual initiating a report or complaint alleging sus12 pected instances of child abuse or neglect.

13 ‘‘(C) DEFINITION.—For purposes of this

14 paragraph, the term ‘near fatality’ means an

15 act that, as certified by a physician, places the

16 child in serious or critical condition.

17 ‘‘(b) DETERMINATIONS.—The Secretary shall deter18 mine whether a plan submitted pursuant to subsection (a)

19 contains the material required by subsection (a), other

20 than the material described in paragraph (9) of such sub21 section. The Secretary may not require a State to include

22 in such a plan any material not described in subsection

23 (a).

24 ‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

25 ‘‘(a) FUNDING OF BLOCK GRANTS.—
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1 ‘‘(1) ENTITLEMENT COMPONENT.—

2 ‘‘(A) ELIGIBLE STATES.—Each eligible

3 State shall be entitled to receive from the Sec4 retary for each fiscal year specified in sub5 section (b)(1) a grant in an amount equal to

6 the State share of 99 percent of the child pro7 tection amount for the fiscal year.

8 ‘‘(B) INDIAN TRIBES AND TRIBAL ORGANI9 ZATIONS.—The Secretary shall reserve for pay10 ments to Indian tribes (as defined in section

11 658P(7) of the Child Care and Development

12 Block Grant Act of 1990) and tribal organiza13 tions (as defined in section 658P(14) of such

14 Act) for each fiscal year specified in subsection

15 (b)(1) an amount equal to 1 percent of the

16 child protection amount for the fiscal year.

17 ‘‘(2) AUTHORIZATION COMPONENT.—

18 ‘‘(A) IN GENERAL.—

19 ‘‘(i) ELIGIBLE STATES.—For each eli20 gible State for each fiscal year specified in

21 subsection (b)(1), the Secretary shall sup22 plement the grant under paragraph (1)(A)

23 of this subsection by an amount equal to

24 the State share of 99.64 percent of the

25 amount (if any) appropriated pursuant to
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1 subparagraph (B) of this paragraph for

2 the fiscal year.

3 ‘‘(ii) INDIAN TRIBES AND TRIBAL OR4 GANIZATIONS.—The Secretary shall sup5 plement the amount reserved for payments

6 pursuant to paragraph (1)(B) of this sub7 section for each fiscal year specified in

8 subsection (b)(1), by an amount equal to

9 0.36 percent of the amount (if any) appro10 priated pursuant to subparagraph (B) of

11 this paragraph for the fiscal year.

12 ‘‘(B) LIMITATION ON AUTHORIZATION OF

13 APPROPRIATIONS.—For grants under subpara14 graph (A), there are authorized to be appro15 priated to the Secretary an amount not to ex16 ceed $325,000,000 for each fiscal year specified

17 in subsection (b)(1).

18 ‘‘(b) DEFINITIONS.—As used in this section:

19 ‘‘(1) CHILD PROTECTION AMOUNT.—The term

20 ‘child protection amount’ means—

21 ‘‘(A) $240,000,000 for fiscal year 1997;

22 ‘‘(B) $255,000,000 for fiscal year 1998;

23 ‘‘(C) $262,000,000 for fiscal year 1999;

24 ‘‘(D) $270,000,000 for fiscal year 2000;
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1 ‘‘(E) $278,000,000 for fiscal year 2001;

2 and

3 ‘‘(F) $286,000,000 for fiscal year 2002;

4 ‘‘(2) STATE SHARE.—

5 ‘‘(A) IN GENERAL.—The term ‘State

6 share’ means the qualified child protection ex7 penses of the State divided by the sum of the

8 qualified child protection expenses of all of the

9 States.

10 ‘‘(B) QUALIFIED CHILD PROTECTION EX11 PENSES.—The term ‘qualified child protection

12 expenses’ means, with respect to a State the

13 greater of—

14 ‘‘(i) the total amount of one-third of

15 the Federal grant amounts to the State

16 under the provisions of law specified in

17 clauses (i) and (ii) of subparagraph (C) for

18 fiscal years 1992, 1993, and 1994; or

19 ‘‘(ii) the total amount of the Federal

20 grant amounts to the State under the pro21 visions of law specified in clauses (i) and

22 (ii) of subparagraph (C) for fiscal year

23 1994.

24 ‘‘(C) PROVISIONS OF LAW.—The provisions

25 of law specified in this subparagraph are the
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1 following (as in effect with respect to each of

2 the fiscal years referred to in subparagraph

3 (B)):

4 ‘‘(i) Section 423 of this Act.

5 ‘‘(ii) Section 434 of this Act.

6 ‘‘(D) DETERMINATION OF INFORMA7 TION.—In determining amounts for fiscal years

8 1992, 1993, and 1994 under clauses (i) and (ii)

9 of subparagraph (B), the Secretary shall use in10 formation listed as actual amounts in the Jus11 tification for Estimates for Appropriation Com12 mittees of the Administration for Children and

13 Families for fiscal years 1994, 1995, and 1996,

14 respectively.

15 ‘‘(c) USE OF GRANT.—

16 ‘‘(1) IN GENERAL.—A State to which a grant

17 is made under this section may use the grant in any

18 manner that the State deems appropriate to accom19 plish the purpose of this part.

20 ‘‘(2) TIMING OF EXPENDITURES.—A State to

21 which a grant is made under this section for a fiscal

22 year shall expend the total amount of the grant not

23 later than the end of the immediately succeeding fis24 cal year.
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1 ‘‘(3) RULE OF INTERPRETATION.—This part

2 shall not be interpreted to prohibit short- and long3 term foster care facilities operated for profit from

4 receiving funds provided under this part or part E.

5 ‘‘(4) PROHIBITION AGAINST USE OF FUNDS FOR

6 FOSTER CARE MAINTENANCE OR ADOPTION ASSIST7 ANCE PAYMENTS.—Funds provided under this part

8 shall not be used to make foster care maintenance

9 payments or adoption assistance payments under

10 any State plan approved under part E.

11 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

12 pay each eligible State the amount of the grant payable

13 to the State under this section in quarterly installments.

14 ‘‘(e) PENALTIES.—

15 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

16 THIS PART.—If an audit conducted pursuant to

17 chapter 75 of title 31, United States Code, finds

18 that an amount paid to a State under this section

19 for a fiscal year has been used in violation of this

20 part, then the Secretary shall reduce the amount of

21 the grant that would (in the absence of this para22 graph) be payable to the State under this section

23 for the immediately succeeding fiscal year by the

24 amount so used, plus 5 percent of the grant paid

25 under this section to the State for such fiscal year.
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1 ‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—

2 ‘‘(A) IN GENERAL.—If an audit conducted

3 pursuant to chapter 75 of title 31, United

4 States Code, finds that the amount expended by

5 a State (other than from amounts provided by

6 the Federal Government) during the fiscal years

7 specified in subparagraph (B), to carry out the

8 State program funded under this part is less

9 than the applicable percentage specified in such

10 subparagraph of the total amount expended by

11 the State (other than from amounts provided by

12 the Federal Government) during fiscal year

13 1994 under part B of this title (as in effect on

14 the day before the date of the enactment of this

15 part), then the Secretary shall reduce the

16 amount of the grant that would (in the absence

17 of this paragraph) be payable to the State

18 under this section for the immediately succeed19 ing fiscal year by the amount of the difference,

20 plus 5 percent of the grant paid under this sec21 tion to the State for such fiscal year.

22 ‘‘(B) SPECIFICATION OF FISCAL YEARS

23 AND APPLICABLE PERCENTAGES.—The fiscal

24 years and applicable percentages specified in

25 this subparagraph are as follows:
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1 ‘‘(i) For fiscal years 1997 and 1998,

2 100 percent.

3 ‘‘(ii) For fiscal years 1999 through

4 2002, 75 percent.

5 ‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE6 PORT.—

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

8 reduce by 3 percent the amount of the grant

9 that would (in the absence of this paragraph)

10 be payable to a State under this section for a

11 fiscal year if the Secretary determines that the

12 State has not submitted the report required by

13 section 424 for the immediately preceding fiscal

14 year, within 6 months after the end of the im15 mediately preceding fiscal year.

16 ‘‘(B) RESCISSION OF PENALTY.—The Sec17 retary shall rescind a penalty imposed on a

18 State under subparagraph (A) with respect to a

19 report for a fiscal year if the State submits the

20 report before the end of the immediately suc21 ceeding fiscal year.

22 ‘‘(4) STATE FUNDS TO REPLACE REDUCTIONS

23 IN GRANT.—A State which has a penalty imposed

24 against it under this subsection for a fiscal year

25 shall expend additional State funds in an amount
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1 equal to the amount of the penalty for the purpose

2 of carrying out the State program under this part

3 during the immediately succeeding fiscal year.

4 ‘‘(5) REASONABLE CAUSE EXCEPTION.—Except

5 in the case of the penalty described in paragraph

6 (2), the Secretary may not impose a penalty on a

7 State under this subsection with respect to a re8 quirement if the Secretary determines that the State

9 has reasonable cause for failing to comply with the

10 requirement.

11 ‘‘(6) CORRECTIVE COMPLIANCE PLAN.—

12 ‘‘(A) IN GENERAL.—

13 ‘‘(i) NOTIFICATION OF VIOLATION.—

14 Before imposing a penalty against a State

15 under this subsection with respect to a vio16 lation of this part, the Secretary shall no17 tify the State of the violation and allow the

18 State the opportunity to enter into a cor19 rective compliance plan in accordance with

20 this paragraph which outlines how the

21 State will correct the violation and how the

22 State will insure continuing compliance

23 with this part.

24 ‘‘(ii) 60-DAY PERIOD TO PROPOSE A

25 CORRECTIVE COMPLIANCE PLAN.—During
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1 the 60-day period that begins on the date

2 the State receives a notice provided under

3 clause (i) with respect to a violation, the

4 State may submit to the Federal Govern5 ment a corrective compliance plan to cor6 rect the violation.

7 ‘‘(iii) CONSULTATION ABOUT MODI8 FICATIONS.—During the 60-day period

9 that begins with the date the Secretary re10 ceives a corrective compliance plan submit11 ted by a State in accordance with clause

12 (ii), the Secretary may consult with the

13 State on modifications to the plan.

14 ‘‘(iv) ACCEPTANCE OF PLAN.—A cor15 rective compliance plan submitted by a

16 State in accordance with clause (ii) is

17 deemed to be accepted by the Secretary if

18 the Secretary does not accept or reject the

19 plan during the 60-day period that begins

20 on the date the plan is submitted.

21 ‘‘(B) EFFECT OF CORRECTING VIOLA22 TION.—The Secretary may not impose any pen23 alty under this subsection with respect to any

24 violation covered by a State corrective compli-
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1 ance plan accepted by the Secretary if the State

2 corrects the violation pursuant to the plan.

3 ‘‘(C) EFFECT OF FAILING TO CORRECT

4 VIOLATION.—The Secretary shall assess some

5 or all of a penalty imposed on a State under

6 this subsection with respect to a violation if the

7 State does not, in a timely manner, correct the

8 violation pursuant to a State corrective compli9 ance plan accepted by the Secretary.

10 ‘‘(7) LIMITATION ON AMOUNT OF PENALTY.—

11 ‘‘(A) IN GENERAL.—In imposing the pen12 alties described in this subsection, the Secretary

13 shall not reduce any quarterly payment to a

14 State by more than 25 percent.

15 ‘‘(B) CARRYFORWARD OF UNRECOVERED

16 PENALTIES.—To the extent that subparagraph

17 (A) prevents the Secretary from recovering dur18 ing a fiscal year the full amount of all penalties

19 imposed on a State under this subsection for a

20 prior fiscal year, the Secretary shall apply any

21 remaining amount of such penalties to the

22 grant payable to the State under subsection (a)

23 for the immediately succeeding fiscal year.

24 ‘‘(f) TREATMENT OF TERRITORIES.—
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1 ‘‘(1) IN GENERAL.—A territory, as defined in

2 section 1108(b)(1), shall carry out a child protection

3 program in accordance with the provisions of this

4 part.

5 ‘‘(2) PAYMENTS.—Subject to the mandatory

6 ceiling amounts specified in section 1108, each terri7 tory, as so defined, shall be entitled to receive from

8 the Secretary for any fiscal year an amount equal to

9 the total obligations to the territory under section

10 434 (as in effect on the day before the date of the

11 enactment of this part) for fiscal year 1995.

12 ‘‘(g) LIMITATION ON FEDERAL AUTHORITY.—Except

13 as expressly provided in this Act, the Secretary may not

14 regulate the conduct of States under this part or enforce

15 any provision of this part.

16 ‘‘SEC. 424. DATA COLLECTION AND REPORTING.

17 ‘‘(a) NATIONAL CHILD ABUSE AND NEGLECT DATA

18 SYSTEM.—The Secretary shall establish a national data

19 collection and analysis program—

20 ‘‘(1) which, to the extent practicable, coordi21 nates existing State child abuse and neglect reports

22 and which shall include—

23 ‘‘(A) standardized data on substantiated,

24 as well as false, unfounded, or unsubstantiated

25 reports; and
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1 ‘‘(B) information on the number of deaths

2 due to child abuse and neglect; and

3 ‘‘(2) which shall collect, compile, analyze, and

4 make available State child abuse and neglect report5 ing information which, to the extent practical, is uni6 versal and case-specific and integrated with other

7 case-based foster care and adoption data collected by

8 the Secretary.

9 ‘‘(b) ADOPTION AND FOSTER CARE AND ANALYSIS

10 AND REPORTING SYSTEMS.—The Secretary shall imple11 ment a system for the collection of data relating to adop12 tion and foster care in the United States. Such data collec13 tion system shall—

14 ‘‘(1) avoid unnecessary diversion of resources

15 from agencies responsible for adoption and foster

16 care;

17 ‘‘(2) assure that any data that is collected is re18 liable and consistent over time and among jurisdic19 tions through the use of uniform definitions and

20 methodologies;

21 ‘‘(3) provide comprehensive national informa22 tion with respect to—

23 ‘‘(A) the demographic characteristics of

24 adoptive and foster children and their biological

25 and adoptive or foster parents;
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1 ‘‘(B) the status of the foster care popu2 lation (including the number of children in fos3 ter care, length of placement, type of place4 ment, availability for adoption, and goals for

5 ending or continuing foster care);

6 ‘‘(C) the number and characteristics of—

7 ‘‘(i) children placed in or removed

8 from foster care;

9 ‘‘(ii) children adopted or with respect

10 to whom adoptions have been terminated;

11 and

12 ‘‘(iii) children placed in foster care

13 outside the State which has placement and

14 care responsibility; and

15 ‘‘(D) the extent and nature of assistance

16 provided by Federal, State, and local adoption

17 and foster care programs and the characteris18 tics of the children with respect to whom such

19 assistance is provided; and

20 ‘‘(4) utilize appropriate requirements and incen21 tives to ensure that the system functions reliably

22 throughout the United States.

23 ‘‘(c) ADDITIONAL INFORMATION.—The Secretary

24 may require the provision of additional information under

25 the data collection system established under subsection (b)
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1 if the addition of such information is agreed to by a major2 ity of the States.

3 ‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Not

4 later than 6 months after the end of each fiscal year, the

5 Secretary shall prepare a report based on information pro6 vided by the States for the fiscal year pursuant to this

7 section, and shall make the report and such information

8 available to the Congress and the public.

9 ‘‘SEC. 425. FUNDING FOR STUDIES OF CHILD WELFARE.

10 ‘‘(a) NATIONAL RANDOM SAMPLE STUDY OF CHILD

11 WELFARE.—There are authorized to be appropriated and

12 there are appropriated to the Secretary for each of fiscal

13 years 1996 through 2002—

14 ‘‘(1) $6,000,000 to conduct a national study

15 based on random samples of children who are at risk

16 of child abuse or neglect, or are determined by

17 States to have been abused or neglected under sec18 tion 208 of the Child and Family Services Block

19 Grant Act of 1996; and

20 ‘‘(2) $10,000,000 for such other research as

21 may be necessary under such section.

22 ‘‘(b) ASSESSMENT OF STATE COURTS IMPROVEMENT

23 OF HANDLING OF PROCEEDINGS RELATING TO FOSTER

24 CARE AND ADOPTION.—There are authorized to be appro25 priated and there are appropriated to the Secretary for
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1 each of fiscal years 1996 through 1998 $10,000,000 for

2 the purpose of carrying out section 13712 of the Omnibus

3 Budget Reconciliation Act of 1993 (42 U.S.C. 670 note).

4 All funds appropriated under this subsection shall be ex5 pended not later than September 30, 1999.

6 ‘‘SEC. 426. DEFINITIONS.

7 ‘‘For purposes of this part and part E, the following

8 definitions shall apply:

9 ‘‘(1) ADMINISTRATIVE REVIEW.—The term ‘ad10 ministrative review’ means a review open to the par11 ticipation of the parents of the child, conducted by

12 a panel of appropriate persons at least one of whom

13 is not responsible for the case management of, or

14 the delivery of services to, either the child or the

15 parents who are the subject of the review.

16 ‘‘(2) ADOPTION ASSISTANCE AGREEMENT.—The

17 term ‘adoption assistance agreement’ means a writ18 ten agreement, binding on the parties to the agree19 ment, between the State, other relevant agencies,

20 and the prospective adoptive parents of a minor

21 child which at a minimum—

22 ‘‘(A) specifies the nature and amount of

23 any payments, services, and assistance to be

24 provided under such agreement; and
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1 ‘‘(B) stipulates that the agreement shall

2 remain in effect regardless of the State of

3 which the adoptive parents are residents at any

4 given time.

5 The agreement shall contain provisions for the pro6 tection (under an interstate compact approved by

7 the Secretary or otherwise) of the interests of the

8 child in cases where the adoptive parents and child

9 move to another State while the agreement is effec10 tive.

11 ‘‘(3) CASE PLAN.—The term ‘case plan’ means

12 a written document which includes at least the fol13 lowing:

14 ‘‘(A) A description of the type of home or

15 institution in which a child is to be placed, in16 cluding a discussion of the appropriateness of

17 the placement and how the agency which is re18 sponsible for the child plans to carry out the

19 voluntary placement agreement entered into or

20 judicial determination made with respect to the

21 child in accordance with section 472(a)(1).

22 ‘‘(B) A plan for assuring that the child re23 ceives proper care and that services are pro24 vided to the parents, child, and foster parents

25 in order to improve the conditions in the par-
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1 ents’ home, facilitate return of the child to his

2 or her own home or the permanent placement

3 of the child, and address the needs of the child

4 while in foster care, including a discussion of

5 the appropriateness of the services that have

6 been provided to the child under the plan.

7 ‘‘(C) To the extent available and acces8 sible, the health and education records of the

9 child, including—

10 ‘‘(i) the names and addresses of the

11 child’s health and educational providers;

12 ‘‘(ii) the child’s grade level perform13 ance;

14 ‘‘(iii) the child’s school record;

15 ‘‘(iv) assurances that the child’s place16 ment in foster care takes into account

17 proximity to the school in which the child

18 is enrolled at the time of placement;

19 ‘‘(v) a record of the child’s immuniza20 tions;

21 ‘‘(vi) the child’s known medical prob22 lems;

23 ‘‘(vii) the child’s medications; and
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1 ‘‘(viii) any other relevant health and

2 education information concerning the child

3 determined to be appropriate by the State.

4 Where appropriate, for a child age 16 or over,

5 the case plan must also include a written de6 scription of the programs and services which

7 will help such child prepare for the transition

8 from foster care to independent living.

9 ‘‘(4) CASE REVIEW SYSTEM.—The term ‘case

10 review system’ means a procedure for assuring

11 that—

12 ‘‘(A) each child has a case plan designed to

13 achieve placement in the least restrictive (most

14 family-like) and most appropriate setting avail15 able and in close proximity to the parents’

16 home, consistent with the best interests and

17 special needs of the child, which—

18 ‘‘(i) if the child has been placed in a

19 foster family home or child-care institution

20 a substantial distance from the home of

21 the parents of the child, or in a State dif22 ferent from the State in which such home

23 is located, sets forth the reasons why such

24 placement is in the best interests of the

25 child; and
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1 ‘‘(ii) if the child has been placed in

2 foster care outside the State in which the

3 home of the parents of the child is located,

4 requires that, periodically, but not less fre5 quently than every 12 months, a case6 worker on the staff of the State in which

7 the home of the parents of the child is lo8 cated, or of the State in which the child

9 has been placed, visit such child in such

10 home or institution and submit a report on

11 such visit to the State in which the home

12 of the parents of the child is located;

13 ‘‘(B) the status of each child is reviewed

14 periodically but no less frequently than once

15 every 6 months by either a court or by adminis16 trative review (as defined in paragraph (1)) in

17 order to determine the continuing necessity for

18 and appropriateness of the placement, the ex19 tent of compliance with the case plan, and the

20 extent of progress which has been made toward

21 alleviating or mitigating the causes necessitat22 ing placement in foster care, and to project a

23 likely date by which the child may be returned

24 to the home or placed for adoption or legal

25 guardianship;
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1 ‘‘(C) with respect to each such child, pro2 cedural safeguards will be applied, among other

3 things, to assure each child in foster care under

4 the supervision of the State of a dispositional

5 hearing to be held, in a family or juvenile court

6 or another court (including a tribal court) of

7 competent jurisdiction, or by an administrative

8 body appointed or approved by the court, no

9 later than 18 months after the original place10 ment (and not less frequently than every 12

11 months thereafter during the continuation of

12 foster care), which hearing shall determine the

13 future status of the child (including whether the

14 child should be returned to the parent, should

15 be continued in foster care for a specified pe16 riod, should be placed for adoption, or should

17 (because of the child’s special needs or cir18 cumstances) be continued in foster care on a

19 permanent or long-term basis) and, in the case

20 of a child described in subparagraph (A)(ii),

21 whether the out-of-State placement continues to

22 be appropriate and in the best interests of the

23 child, and, in the case of a child who has at24 tained age 16, the services needed to assist the

25 child to make the transition from foster care to
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1 independent living; and procedural safeguards

2 shall also be applied with respect to parental

3 rights pertaining to the removal of the child

4 from the home of his parents, to a change in

5 the child’s placement, and to any determination

6 affecting visitation privileges of parents; and

7 ‘‘(D) a child’s health and education record

8 (as described in paragraph (3)(C)) is reviewed

9 and updated, and supplied to the foster parent

10 or foster care provider with whom the child is

11 placed, at the time of each placement of the

12 child in foster care.

13 ‘‘(5) CHILD-CARE INSTITUTION.—The term

14 ‘child-care institution’ means a private child-care in15 stitution, or a public child-care institution which ac16 commodates no more than 25 children, which is li17 censed by the State in which it is situated or has

18 been approved, by the agency of such State respon19 sible for licensing or approval of institutions of this

20 type, as meeting the standards established for such

21 licensing, but the term shall not include detention

22 facilities, forestry camps, training schools, or any

23 other facility operated primarily for the detention of

24 children who are determined to be delinquent.
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1 ‘‘(6) FOSTER CARE MAINTENANCE PAY2 MENTS.—

3 ‘‘(A) IN GENERAL.—The term ‘foster care

4 maintenance payments’ means payments to

5 cover the cost of (and the cost of providing)

6 food, clothing, shelter, daily supervision, school

7 supplies, a child’s personal incidentals, liability

8 insurance with respect to a child, and reason9 able travel to the child’s home for visitation. In

10 the case of institutional care, such term shall

11 include the reasonable costs of administration

12 and operation of such institution as are nec13 essarily required to provide the items described

14 in the preceding sentence.

15 ‘‘(B) SPECIAL RULE.—In cases where—

16 ‘‘(i) a child placed in a foster family

17 home or child-care institution is the parent

18 of a son or daughter who is in the same

19 home or institution; and

20 ‘‘(ii) payments described in subpara21 graph (A) are being made under this part

22 with respect to such child,

23 the foster care maintenance payments made

24 with respect to such child as otherwise deter25 mined under subparagraph (A) shall also in-
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1 clude such amounts as may be necessary to

2 cover the cost of the items described in that

3 subparagraph with respect to such son or

4 daughter.

5 ‘‘(7) FOSTER FAMILY HOME.—The term ‘foster

6 family home’ means a foster family home for chil7 dren which is licensed by the State in which it is sit8 uated or has been approved, by the agency of such

9 State having responsibility for licensing homes of

10 this type, as meeting the standards established for

11 such licensing.

12 ‘‘(8) PARENTS.—The term ‘parents’ means bio13 logical or adoptive parents or legal guardians, as de14 termined by applicable State law.

15 ‘‘(9) STATE.—The term ‘State’ means the 50

16 States and the District of Columbia.

17 ‘‘(10) VOLUNTARY PLACEMENT.—The term

18 ‘voluntary placement’ means an out-of-home place19 ment of a minor, by or with participation of the

20 State, after the parents or guardians of the minor

21 have requested the assistance of the State and

22 signed a voluntary placement agreement.

23 ‘‘(11) VOLUNTARY PLACEMENT AGREEMENT.—

24 The term ‘voluntary placement agreement’ means a

25 written agreement, binding on the parties to the
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1 agreement, between the State, any other agency act2 ing on its behalf, and the parents or guardians of a

3 minor child which specifies, at a minimum, the legal

4 status of the child and the rights and obligations of

5 the parents or guardians, the child, and the agency

6 while the child is in placement.’’.

7 SEC. 4702. CONFORMING AMENDMENTS.

8 (a) AMENDMENTS TO PART D OF TITLE IV OF THE

9 SOCIAL SECURITY ACT.—

10 (1) Section 452(a)(10)(C) of the Social Security

11 Act (42 U.S.C. 652(a)(10)(C)), as amended by sec12 tion 4108(b)(2) of this Act, is amended by striking

13 ‘‘or under section 471(a)(17),’’.

14 (2) Section 452(g)(2)(A) of such Act (42

15 U.S.C. 652(g)(2)(A)), as amended by paragraphs

16 (6) and (7) of section 4108(b) of this Act, is amend17 ed by inserting ‘‘or benefits or services for foster

18 care maintenance were being provided under the

19 State program funded under part E’’ after ‘‘part A’’

20 each place it appears.

21 (3) Section 466(a)(3)(B) of such Act (42

22 U.S.C. 666(a)(3)(B)), as amended by section

23 4108(b)(14) of this Act, is amended by striking ‘‘or

24 471(a)(17)’’.
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1 (b) AMENDMENT TO SECTION 9442 OF THE OMNI2 BUS BUDGET RECONCILIATION ACT OF 1986.—Section

3 9442(4) of the Omnibus Budget Reconciliation Act of

4 1986 (42 U.S.C. 679a(4)) is amended by inserting ‘‘(as

5 in effect before October 1, 1995)’’ after ‘‘Act’’.

6 (c) REDESIGNATION AND AMENDMENTS OF SECTION

7 1123.—

8 (1) REDESIGNATION.—The Social Security Act

9 is amended by redesignating section 1123, the sec10 ond place it appears (42 U.S.C. 1320a–1a), as sec11 tion 1123A.

12 (2) AMENDMENTS.—Section 1123A of such

13 Act, as so redesignated, is amended in subsection

14 (a)—

15 (A) by striking ‘‘The Secretary’’ and in16 serting ‘‘Notwithstanding section 423(g), the

17 Secretary’’; and

18 (B) in paragraph (2), by inserting ‘‘under

19 this section’’ after ‘‘promulgated’’.

20 Subchapter B—Foster Care, Adoption Assist21 ance, and Independent Living Programs

22 SEC. 4711. CONFORMING AMENDMENTS TO PART E OF

23 TITLE IV.

24 (a) PURPOSE; APPROPRIATION.—Section 470 of the

25 Social Security Act (42 U.S.C 670) is amended—
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1 (1) by amending the heading to read as follows:

2 ‘‘SEC. 470. PURPOSE; APPROPRIATION.’’; and

3 (2) in the second sentence, by striking ‘‘this

4 part’’ and inserting ‘‘section 422’’.

5 (b) STATE PLAN FOR FOSTER CARE AND ADOPTION

6 ASSISTANCE.—Section 471 of such Act (42 U.S.C. 671)

7 is amended to read as follows:

8 ‘‘SEC. 471. ELIGIBLE STATES.

9 ‘‘In order for a State to be eligible for payments

10 under this part, the State shall have submitted to the Sec11 retary a plan which satisfies the requirements of section

12 422.’’.

13 (c) FOSTER CARE MAINTENANCE PAYMENTS PRO14 GRAM.—Section 472 of such Act (42 U.S.C. 672) is

15 amended to read as follows:

16 ‘‘SEC. 472. REQUIREMENTS FOR FOSTER CARE MAINTE17 NANCE PAYMENTS.

18 ‘‘(a) IN GENERAL.—Each State operating a program

19 under this part shall make foster care maintenance pay20 ments, as defined in section 426(6) with respect to a child

21 who would meet the requirements of section 406(a) (as

22 in effect on the day before the date of the enactment of

23 the Personal Responsibility and Work Opportunity Act of

24 1996) or of section 407 (as so in effect) but for the re-
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1 moval of the child from the home of a relative (specified

2 in section 406(a) (as so in effect)), if—

3 ‘‘(1) the removal from the home occurred pur4 suant to a voluntary placement agreement entered

5 into by the child’s parent or legal guardian, or was

6 the result of a judicial determination to the effect

7 that continuation therein would be contrary to the

8 welfare of such child and that reasonable efforts of

9 the type described in section 422(a)(12) have been

10 made;

11 ‘‘(2) such child’s placement and care are the re12 sponsibility of—

13 ‘‘(A) the State; or

14 ‘‘(B) any other public agency with which

15 the State has made an agreement for the ad16 ministration of the State program under this

17 part which is still in effect;

18 ‘‘(3) such child has been placed in a foster fam19 ily home or child-care institution as a result of the

20 voluntary placement agreement or judicial deter21 mination referred to in paragraph (1); and

22 ‘‘(4) such child—

23 ‘‘(A) would have been eligible to receive aid

24 under the eligibility standards under the State

25 plan approved under section 402 (as in effect
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1 on the day before the date of the enactment of

2 this part and adjusted for inflation, in accord3 ance with regulations issued by the Secretary)

4 in or for the month in which such agreement

5 was entered into or court proceedings leading to

6 the removal of such child from the home were

7 initiated; or

8 ‘‘(B) would have received such aid in or for

9 such month if application had been made there10 for, or the child had been living with a relative

11 specified in section 406(a) (as so in effect)

12 within 6 months prior to the month in which

13 such agreement was entered into or such pro14 ceedings were initiated, and would have received

15 such aid in or for such month if in such month

16 such child had been living with such a relative

17 and application therefor had been made.

18 ‘‘(b) LIMITATION ON FOSTER CARE PAYMENTS.—

19 Foster care maintenance payments may be made under

20 this part only on behalf of a child described in subsection

21 (a) of this section who is—

22 ‘‘(1) in the foster family home of an individual,

23 whether the payments therefore are made to such in24 dividual or to a public or private child placement or

25 child-care agency; or
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1 ‘‘(2) in a child-care institution, whether the

2 payments therefore are made to such institution or

3 to a public or private child-placement or child-care

4 agency, which payments shall be limited so as to in5 clude in such payments only those items which are

6 included in the term ‘foster care maintenance pay7 ments’ (as defined in section 426(6)).

8 ‘‘(c) VOLUNTARY PLACEMENTS.—

9 ‘‘(1) SATISFACTION OF CHILD PROTECTION

10 STANDARDS.—Notwithstanding any other provision

11 of this section, Federal payments may be made

12 under this part with respect to amounts expended by

13 any State as foster care maintenance payments

14 under this part, in the case of children removed

15 from their homes pursuant to voluntary placement

16 agreements as described in subsection (a), only if (at

17 the time such amounts were expended) the State has

18 fulfilled all of the requirements of section

19 422(a)(11).

20 ‘‘(2) REMOVAL IN EXCESS OF 180 DAYS.—No

21 Federal payment may be made under this part with

22 respect to amounts expended by any State as foster

23 care maintenance payments, in the case of any child

24 who was removed from such child’s home pursuant

25 to a voluntary placement agreement as described in
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1 subsection (a) and has remained in voluntary place2 ment for a period in excess of 180 days, unless there

3 has been a judicial determination by a court of com4 petent jurisdiction (within the first 180 days of such

5 placement) that such placement is in the best inter6 ests of the child.

7 ‘‘(3) DEEMED REVOCATION OF AGREEMENTS.—

8 In any case where—

9 ‘‘(A) the placement of a minor child in fos10 ter care occurred pursuant to a voluntary place11 ment agreement entered into by the parents or

12 guardians of such child as provided in sub13 section (a); and

14 ‘‘(B) such parents or guardians request (in

15 such manner and form as the Secretary may

16 prescribe) that the child be returned to their

17 home or to the home of a relative,

18 the voluntary placement agreement shall be deemed

19 to be revoked unless the State opposes such request

20 and obtains a judicial determination, by a court of

21 competent jurisdiction, that the return of the child

22 to such home would be contrary to the child’s best

23 interests.

24 ‘‘(d) ELIGIBILITY FOR MEDICAL ASSISTANCE.—For

25 purposes of titles XIX and XX, any child with respect to
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1 whom foster care maintenance payments are made under

2 this section is deemed to be a recipient of cash assistance

3 under part A of this title. For the purposes of the preced4 ing sentence, a child whose costs in a foster family home

5 or child-care institution are covered by the foster care

6 maintenance payments being made with respect to his or

7 her minor parent, as provided in section 426(6)(B), shall

8 be considered a child with respect to whom foster care

9 maintenance payments are made under this section.’’.

10 (d) ADOPTION ASSISTANCE PROGRAM.—Section 473

11 of such Act (42 U.S.C. 673) is amended to read as follows:

12 ‘‘SEC. 473. REQUIREMENTS FOR ADOPTION ASSISTANCE

13 PAYMENTS.

14 ‘‘(a) IN GENERAL.—A State operating a program

15 under this part shall enter into adoption assistance agree16 ments with the adoptive parents of children with special

17 needs.

18 ‘‘(b) PAYMENTS UNDER AGREEMENTS.—

19 ‘‘(1) IN GENERAL.—Under any adoption assist20 ance agreement entered into by a State with parents

21 who adopt a child with special needs, the State—

22 ‘‘(A) shall make payments of nonrecurring

23 adoption expenses incurred by or on behalf of

24 such parents in connection with the adoption of

25 such child, directly through the State agency or
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1 through another public or nonprofit private

2 agency, in amounts determined under sub3 section (e), and

4 ‘‘(B) in any case where the child meets the

5 requirements of subsection (d), may make adop6 tion assistance payments to such parents, di7 rectly through the State agency or through an8 other public or nonprofit private agency, in

9 amounts so determined.

10 ‘‘(2) DEFINITION OF NONRECURRING ADOPTION

11 EXPENSES.—

12 ‘‘(A) IN GENERAL.—For purposes of para13 graph (1)(A), the term ‘nonrecurring adoption

14 expenses’ means reasonable and necessary

15 adoption fees, court costs, attorney fees, and

16 other expenses which are directly related to the

17 legal adoption of a child with special needs and

18 which are not incurred in violation of State or

19 Federal law.

20 ‘‘(B) TREATMENT AS AN ADMINISTRATIVE

21 EXPENSE.—A State’s payment of nonrecurring

22 adoption expenses under an adoption assistance

23 agreement shall be treated as an expenditure

24 made for the proper and efficient administra-
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1 tion of the State plan for purposes of section

2 474(a)(3)(E).

3 ‘‘(c) ELIGIBILITY FOR MEDICAL ASSISTANCE.—For

4 purposes of titles XIX and XX, any child—

5 ‘‘(1)(A) who is a child described in subsection

6 (b), and

7 ‘‘(B) with respect to whom an adoption assist8 ance agreement is in effect under this section

9 (whether or not adoption assistance payments are

10 provided under the agreement or are being made

11 under this section), including any such child who has

12 been placed for adoption in accordance with applica13 ble State and local law (whether or not an interlocu14 tory or other judicial decree of adoption has been is15 sued), or

16 ‘‘(2) with respect to whom foster care mainte17 nance payments are being made under section 472,

18 is deemed to be a recipient of cash assistance under part

19 A of this title in the State where such child resides. For

20 purposes of the preceding sentence, a child whose costs

21 in a foster family home or child-care institution are cov22 ered by the foster care maintenance payments being made

23 with respect to his or her minor parent, as provided in

24 section 426(6)(B), shall be considered a child with respect
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1 to whom foster care maintenance payments are being

2 made under section 472.

3 ‘‘(d) CHILDREN WITH SPECIAL NEEDS.—For pur4 poses of subsection (b)(1)(B), a child meets the require5 ments of this subsection if such child—

6 ‘‘(1)(A) at the time adoption proceedings were

7 initiated, met the requirements of section 406(a) (as

8 in effect on the day before the date of the enactment

9 of the Personal Responsibility and Work Oppor10 tunity Act of 1996) or section 407 (as so in effect)

11 or would have met such requirements except for

12 such child’s removal from the home of a relative

13 (specified in section 406(a) (as so in effect)), either

14 pursuant to a voluntary placement agreement with

15 respect to which Federal payments are provided

16 under section 474 (or 403 (as so in effect)) or as

17 a result of a judicial determination to the effect that

18 continuation therein would be contrary to the wel19 fare of such child;

20 ‘‘(B) meets all of the requirements of title XVI

21 with respect to eligibility for supplemental security

22 income benefits; or

23 ‘‘(C) is a child whose costs in a foster family

24 home or child-care institution are covered by the fos-
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1 ter care maintenance payments being made with re2 spect to his or her minor parent;

3 ‘‘(2)(A) would have received aid under the eligi4 bility standards under the State plan approved

5 under section 402 (as in effect on the day before the

6 date of the enactment of this part, adjusted for in7 flation, in accordance with regulations issued by the

8 Secretary) in or for the month in which such agree9 ment was entered into or court proceedings leading

10 to the removal of such child from the home were ini11 tiated;

12 ‘‘(B) would have received such aid in or for

13 such month if application had been made therefor,

14 or had been living with a relative specified in section

15 406(a) (as so in effect) within 6 months prior to the

16 month in which such agreement was entered into or

17 such proceedings were initiated, and would have re18 ceived such aid in or for such month if in such

19 month such child had been living with such a rel20 ative and application therefor had been made; or

21 ‘‘(C) is a child described in subparagraph (A)

22 or (B); and

23 ‘‘(3) has been determined by the State, pursu24 ant to subsection (h) of this section, to be a child

25 with special needs.
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1 ‘‘(e) DETERMINATION OF PAYMENTS.—The amount

2 of the payments to be made in any case under subsection

3 (b) shall be determined through agreement between the

4 adoptive parents and the State or a public or nonprofit

5 private agency administering the program under this part,

6 which shall take into consideration the circumstances of

7 the adopting parents and the needs of the child being

8 adopted, and may be readjusted periodically, with the con9 currence of the adopting parents (which may be specified

10 in the adoption assistance agreement), depending upon

11 changes in such circumstances. However, in no case may

12 the amount of the adoption assistance payment exceed the

13 foster care maintenance payment which would have been

14 paid during the period if the child with respect to whom

15 the adoption assistance payment is made had been in a

16 foster family home.

17 ‘‘(f) PAYMENT EXCEPTION.—Notwithstanding sub18 section (e), no payment may be made to parents with re19 spect to any child who has attained the age of 18 (or,

20 where the State determines that the child has a mental

21 or physical disability which warrants the continuation of

22 assistance, the age of 21), and no payment may be made

23 to parents with respect to any child if the State determines

24 that the parents are no longer legally responsible for the

25 support of the child or if the State determines that the
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1 child is no longer receiving any support from such parents.

2 Parents who have been receiving adoption assistance pay3 ments under this part shall keep the State or public or

4 nonprofit private agency administering the program under

5 this part informed of circumstances which would, pursu6 ant to this section, make them ineligible for such assist7 ance payments, or eligible for assistance payments in a

8 different amount.

9 ‘‘(g) PREADOPTION PAYMENTS.—For purposes of

10 this part, individuals with whom a child who has been de11 termined by the State, pursuant to subsection (h), to be

12 a child with special needs is placed for adoption in accord13 ance with applicable State and local law shall be eligible

14 for adoption assistance payments during the period of the

15 placement, on the same terms and subject to the same

16 conditions as if such individuals had adopted such child.

17 ‘‘(h) DETERMINATION OF CHILD WITH SPECIAL

18 NEEDS.—For purposes of this section, a child shall not

19 be considered a child with special needs unless—

20 ‘‘(1) the State has determined that the child

21 cannot or should not be returned to the home of the

22 child’s parents; and

23 ‘‘(2) the State had first determined—

24 ‘‘(A) that there exists with respect to the

25 child a specific factor or condition such as the
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1 child’s ethnic background, age, or membership

2 in a minority or sibling group, or the presence

3 of factors such as medical conditions or phys4 ical, mental, or emotional handicaps because of

5 which it is reasonable to conclude that such

6 child cannot be placed with adoptive parents

7 without providing adoption assistance under

8 this part or medical assistance under title XIX;

9 and

10 ‘‘(B) that, except where it would be

11 against the best interests of the child because

12 of such factors as the existence of significant

13 emotional ties with prospective adoptive parents

14 while in the care of such parents as a foster

15 child, a reasonable, but unsuccessful, effort has

16 been made to place the child with appropriate

17 adoptive parents without providing adoption as18 sistance under this section or medical assistance

19 under title XIX.’’.

20 (e) PAYMENTS TO STATES; ALLOTMENTS TO

21 STATES.—Section 474 of such Act (42 U.S.C. 674) is

22 amended to read as follows:

23 ‘‘SEC. 474. PAYMENTS TO STATES; ALLOTMENTS TO STATES.

24 ‘‘(a) FOSTER CARE, ADOPTION ASSISTANCE, AND

25 INDEPENDENT LIVING PROGRAMS PAYMENTS.—Each eli-
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1 gible State, as determined under section 471, shall be enti2 tled to receive from the Secretary for each quarter of each

3 fiscal year a payment equal to the sum of—

4 ‘‘(1) an amount equal to the Federal medical

5 assistance percentage (as defined in section 1905(b)

6 of this Act as in effect on the day before the date

7 of the enactment of the Personal Responsibility and

8 Work Opportunity Act of 1996) of the total amount

9 expended during such quarter as foster care mainte10 nance payments under the child protection program

11 under this part for children in foster family homes

12 or child-care institutions; plus

13 ‘‘(2) an amount equal to the Federal medical

14 assistance percentage (as defined in section 1905(b)

15 of this Act (as so in effect)) of the total amount ex16 pended during such quarter as adoption assistance

17 payments under the child protection program under

18 this part pursuant to adoption assistance agree19 ments; plus

20 ‘‘(3) an amount equal to the sum of the follow21 ing proportions of the total amounts expended dur22 ing such quarter as found necessary by the Sec23 retary for the provision of child placement services

24 and for the proper and efficient administration of
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1 the State foster care and adoption assistance pro2 gram—

3 ‘‘(A) 75 percent of so much of such ex4 penditures as are for the training (including

5 both short and long-term training at edu6 cational institutions through grants to such in7 stitutions or by direct financial assistance to

8 students enrolled in such institutions) of per9 sonnel employed or preparing for employment

10 by the State agency or by the local agency ad11 ministering the plan in the political subdivision;

12 ‘‘(B) 75 percent of so much of such ex13 penditures (including travel and per diem ex14 penses) as are for the short-term training of

15 current or prospective foster or adoptive par16 ents and the members of the staff of State-li17 censed or State-approved child care institutions

18 providing care to foster and adopted children

19 receiving assistance under this part, in ways

20 that increase the ability of such current or pro21 spective parents, staff members, and institu22 tions to provide support and assistance to foster

23 and adopted children, whether incurred directly

24 by the State or by contract;
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1 ‘‘(C) 50 percent (or, if the quarter is in

2 fiscal year 1997, 75 percent) of so much of

3 such expenditures as are for the planning, de4 sign, development, or installation of statewide

5 mechanized data collection and information re6 trieval systems (including 50 percent (or, if the

7 quarter is in fiscal year 1997, 75 percent) of

8 the full amount of expenditures for hardware

9 components for such systems) but only to the

10 extent that such systems—

11 ‘‘(i) meet the requirements imposed

12 by regulations;

13 ‘‘(ii) to the extent practicable, are ca14 pable of interfacing with the State data

15 collection system that collects information

16 relating to child abuse and neglect;

17 ‘‘(iii) to the extent practicable, have

18 the capability of interfacing with, and re19 trieving information from, the State data

20 collection system that collects information

21 relating to the eligibility of individuals

22 under part A (for the purposes of facilitat23 ing verification of eligibility of foster chil24 dren); and
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1 ‘‘(iv) are determined by the Secretary

2 to be likely to provide more efficient, eco3 nomical, and effective administration of

4 the programs carried out under a State

5 plan approved under this part;

6 ‘‘(D) 50 percent of so much of such ex7 penditures as are for the operation of the state8 wide mechanized data collection and informa9 tion retrieval systems referred to in subpara10 graph (C); and

11 ‘‘(E) one-half of the remainder of such ex12 penditures; plus

13 ‘‘(4) an amount equal to the sum of—

14 ‘‘(A) so much of the amounts expended by

15 such State to carry out a program under sec16 tion 476, as do not exceed the basic amount for

17 such State determined under subsection (e)(1)

18 of such section; and

19 ‘‘(B) the lesser of—

20 ‘‘(i) one-half of any additional

21 amounts expended by such State for such

22 programs; or

23 ‘‘(ii) the maximum additional amount

24 for such State under subsection (e)(1) of

25 such section.
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1 ‘‘(b) AUTOMATED DATA COLLECTION EXPENDI2 TURES.—The Secretary shall treat as necessary for the

3 proper and efficient administration of the State plan all

4 expenditures of a State necessary in order for the State

5 to plan, design, develop, install, and operate data collec6 tion and information retrieval systems, without regard to

7 whether the systems may be used with respect to foster

8 or adoptive children other than those on behalf of whom

9 foster care maintenance payments or adoption assistance

10 payments may be made under this part.

11 ‘‘(c) ESTIMATES BY THE SECRETARY.—

12 ‘‘(1) IN GENERAL.—The Secretary shall, prior

13 to the beginning of each quarter, estimate the

14 amount which a State will be entitled to receive

15 under subsection (a) for such quarter, such esti16 mates to be based on—

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

18 its estimate of the total sum to be expended in

19 such quarter in accordance with subsection (a),

20 and stating the amount appropriated or made

21 available by the State and its political subdivi22 sions for such expenditures in such quarter, and

23 if such amount is less than the State’s propor24 tionate share of the total sum of such estimated
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1 expenditures, the source or sources from which

2 the difference is expected to be derived;

3 ‘‘(B) records showing the number of chil4 dren in the State receiving assistance under

5 this part; and

6 ‘‘(C) such other information as the Sec7 retary may find necessary.

8 ‘‘(2) PAYMENTS.—The Secretary shall pay to

9 the States the amounts so estimated under para10 graph (1), reduced or increased to the extent of any

11 overpayment or underpayment which the Secretary

12 determines was made under this subsection to such

13 State for any prior quarter and with respect to

14 which adjustment has not already been made under

15 this subsection.

16 ‘‘(3) PRO RATA SHARE.— The pro rata share to

17 which the United States is equitably entitled, as de18 termined by the Secretary, of the net amount recov19 ered during any quarter by the State or any political

20 subdivision thereof with respect to foster care and

21 adoption assistance furnished under this part shall

22 be considered an overpayment to be adjusted under

23 this subsection.

24 ‘‘(d) ALLOWANCE OR DISALLOWANCE OF CLAIM.—
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1 ‘‘(1) IN GENERAL.—Within 60 days after re2 ceipt of a State claim for expenditures pursuant to

3 subsection (b)(1), the Secretary shall allow, disallow,

4 or defer such claim.

5 ‘‘(2) NOTICE.—Within 15 days after a decision

6 to defer a State claim, the Secretary shall notify the

7 State of the reasons for the deferral and of the addi8 tional information necessary to determine the allow9 ability of the claim.

10 ‘‘(3) DECISION.—Within 90 days after receiving

11 such necessary information (in readily reviewable

12 form), the Secretary shall—

13 ‘‘(A) disallow the claim, if able to complete

14 the review and determine that the claim is not

15 allowable; or

16 ‘‘(B) in any other case, allow the claim,

17 subject to disallowance (as necessary)—

18 ‘‘(i) upon completion of the review, if

19 it is determined that the claim is not allow20 able; or

21 ‘‘(ii) on the basis of findings of an

22 audit or financial management review.’’.

23 (f) DEFINITIONS.—Section 475 of such Act (42

24 U.S.C. 675) is amended to read as follows:
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1 ‘‘SEC. 475. DEFINITIONS.

2 For definitions of terms used in this part, see section

3 426.’’.

4 (g) TECHNICAL ASSISTANCE; DATA COLLECTION

5 AND EVALUATION.—Part E of title IV of such Act is

6 amended by striking section 476.

7 (h) INDEPENDENT LIVING INITIATIVES.—Part E of

8 title IV of such Act (42 U.S.C. 670 et seq.), as amended

9 by subsection (g) of this section, is amended—

10 (1) by redesignating section 477 as section 476;

11 and

12 (2) by amending section 476, as so redesig13 nated, to read as follows:

14 ‘‘SEC. 476. REQUIREMENTS FOR INDEPENDENT LIVING

15 PROGRAMS.

16 ‘‘(a) PAYMENTS FOR INDEPENDENT LIVING PRO17 GRAMS.—

18 ‘‘(1) IN GENERAL.—Payments shall be made in

19 accordance with this section for the purpose of as20 sisting States and localities in establishing and car21 rying out programs designed to assist children de22 scribed in paragraph (2) who have attained age 16

23 in making the transition from foster care to inde24 pendent living. Any State which provides for the es25 tablishment and carrying out of one or more such

26 programs in accordance with this section for a fiscal
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1 year shall be entitled to receive payments under this

2 section for such fiscal year, in an amount deter3 mined under subsection (e).

4 ‘‘(2) PROGRAM REQUIREMENTS.—A program

5 established and carried out under paragraph (1)—

6 ‘‘(A) shall be designed to assist children

7 with respect to whom foster care maintenance

8 payments are being made by the State under

9 this part;

10 ‘‘(B) may at the option of the State also

11 include any or all other children in foster care

12 under the responsibility of the State; and

13 ‘‘(C) may at the option of the State also

14 include any child who has not attained age 21

15 to whom foster care maintenance payments

16 were previously made by a State under this part

17 and whose payments were discontinued on or

18 after the date such child attained age 16, and

19 any child who previously was in foster care de20 scribed in subparagraph (B) and for whom such

21 care was discontinued on or after the date such

22 child attained age 16; and a written transitional

23 independent living plan of the type described in

24 subsection (d)(6) shall be developed for such

25 child as a part of such program.
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1 ‘‘(b) USE OF FUNDS.—Payment under this section

2 shall be made to the State, and shall be used for the pur3 pose of conducting and providing in accordance with this

4 section (directly or under contracts with local govern5 mental entities or private nonprofit organizations) the ac6 tivities and services required to carry out the program or

7 programs involved.

8 ‘‘(c) SUBMISSION OF PROGRAM DESCRIPTION AND

9 ASSURANCES.—In order for a State to receive payments

10 under this section for any fiscal year, the State, prior to

11 February 1 of such fiscal year, must submit to the Sec12 retary, in such manner and form as the Secretary may

13 prescribe, a description of the program together with satis14 factory assurances that the program will be operated in

15 an effective and efficient manner and will otherwise meet

16 the requirements of this section.

17 ‘‘(d) PROGRAM OBJECTIVES.—In carrying out the

18 purpose described in subsection (a), it shall be the objec19 tive of each program established under this section to help

20 the individuals participating in such program to prepare

21 to live independently upon leaving foster care. Such pro22 grams may include (subject to the availability of funds)

23 programs to—
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1 ‘‘(1) enable participants to seek a high school

2 diploma or its equivalent or to take part in appro3 priate vocational training;

4 ‘‘(2) provide training in daily living skills, budg5 eting, locating and maintaining housing, and career

6 planning;

7 ‘‘(3) provide for individual and group counsel8 ing;

9 ‘‘(4) integrate and coordinate services otherwise

10 available to participants;

11 ‘‘(5) provide for the establishment of outreach

12 programs designed to attract individuals who are eli13 gible to participate in the program;

14 ‘‘(6) provide each participant a written transi15 tional independent living plan which shall be based

16 on an assessment of his needs, and which shall be

17 incorporated into his case plan, as defined in section

18 426(3); and

19 ‘‘(7) provide participants with other services

20 and assistance designed to improve their transition

21 to independent living.

22 ‘‘(e) DETERMINATION OF PAYMENTS.—

23 ‘‘(1) BASIC AMOUNT.—

24 ‘‘(A) IN GENERAL.—The basic amount to

25 which a State shall be entitled under section
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1 474(a)(4) for a fiscal year shall be an amount

2 which bears the same ratio to the basic ceiling

3 for such fiscal year as such State’s average

4 number of children receiving foster care mainte5 nance payments under part E in fiscal year

6 1984 bore to the total of the average number

7 of children receiving such payments under such

8 part for all States for fiscal year 1984.

9 ‘‘(B) MAXIMUM ADDITIONAL AMOUNT.—

10 The maximum additional amount to which a

11 State shall be entitled under section 474(a)(4)

12 for a fiscal year shall be an amount which bears

13 the same ratio to the additional ceiling for such

14 fiscal year as the basic amount of such State

15 bears to $45,000,000.

16 ‘‘(C) DEFINITIONS.—For purposes of this

17 section:

18 ‘‘(i) BASIC CEILING.—The term ‘basic

19 ceiling’ means, for any fiscal year,

20 $45,000,000.

21 ‘‘(ii) ADDITIONAL CEILING.—The

22 term ‘additional ceiling’ means, for any fis23 cal year, $25,000,000.

24 ‘‘(2) REALLOCATION OF FUNDS.—If any State

25 does not apply for funds under this section for any
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1 fiscal year within the time provided in subsection

2 (c), the funds to which such State would have been

3 entitled for such fiscal year shall be reallocated to

4 one or more other States on the basis of their rel5 ative need for additional payments under this section

6 (as determined by the Secretary).

7 ‘‘(3) SUPPLEMENT TO OTHER FUNDS.—Any

8 amounts payable to States under this section shall

9 be in addition to amounts payable to States under

10 paragraphs (1), (2), and (3) of section 474(a), and

11 shall supplement and not replace any other funds

12 which may be available for the same general pur13 poses in the localities involved.

14 ‘‘(f) LIMITATION ON USE OF FUNDS.—Payments

15 made to a State under this section for any fiscal year—

16 ‘‘(1) shall be used only for the specific purposes

17 described in this section;

18 ‘‘(2) may not be used for the provision of room

19 or board;

20 ‘‘(3) may be made on an estimated basis in ad21 vance of the determination of the exact amount, with

22 appropriate subsequent adjustments to take account

23 of any error in the estimates; and

24 ‘‘(4) shall be expended by such State in such

25 fiscal year or in the succeeding fiscal year.
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1 ‘‘(g) REPORTING REQUIREMENTS.—Not later than

2 the first January 1 following the end of each fiscal year,

3 each State shall submit to the Secretary a report on the

4 programs carried out during such fiscal year with the

5 amounts received under this section. Such report shall be

6 in such form and contain such information as may be nec7 essary to provide an accurate description of such activities,

8 to provide a complete record of the purposes for which

9 the funds were spent, and to indicate the extent to which

10 the expenditure of such funds succeeded in accomplishing

11 the purpose described in subsection (a).

12 ‘‘(h) ASSISTANCE NOT CONSIDERED INCOME OR RE13 SOURCES.—Notwithstanding any other provision of this

14 title, payments made and services provided to participants

15 in a program under this section, as a direct consequence

16 of their participation in such program, shall not be consid17 ered as income or resources for purposes of determining

18 eligibility (or the eligibility of any other persons) for as19 sistance under the State’s plan approved under this part

20 or part A, or for purposes of determining the level of such

21 assistance.’’.

22 (i) COLLECTION OF DATA RELATING TO ADOPTION

23 AND FOSTER CARE.—Part E of title IV of such Act (42

24 U.S.C. 670 et seq.) is amended—
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1 (1) by redesignating section 479 as section 477;

2 and

3 (2) by amending section 477, as so redesig4 nated, to read as follows:

5 ‘‘SEC. 477. COLLECTION OF DATA RELATING TO ADOPTION

6 AND FOSTER CARE.

7 ‘‘For requirements with respect to the collection of

8 data relating to adoption and foster care, see section

9 424.’’.

10 Subchapter C—Miscellaneous

11 SEC. 4721. SECRETARIAL SUBMISSION OF LEGISLATIVE

12 PROPOSAL FOR TECHNICAL AND CONFORM13 ING AMENDMENTS.

14 Not later than 90 days after the date of the enact15 ment of this chapter, the Secretary of Health and Human

16 Services, in consultation, as appropriate, with the heads

17 of other Federal agencies, shall submit to the appropriate

18 committees of Congress a legislative proposal providing for

19 such technical and conforming amendments in the law as

20 are required by the provisions of this chapter.

21 SEC. 4722. SENSE OF THE CONGRESS REGARDING TIMELY

22 ADOPTION OF CHILDREN.

23 It is the sense of the Congress that—
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1 (1) too many children who wish to be adopted

2 are spending inordinate amounts of time in foster

3 care;

4 (2) there is an urgent need for States to in5 crease the number of waiting children being adopted

6 in a timely and lawful manner;

7 (3) studies have shown that States spend an ex8 cess of $15,000 each year on each special needs

9 child in foster care, and would save significant

10 amounts of money if they offered incentives to fami11 lies to adopt special needs children;

12 (4) States should allocate sufficient funds under

13 this subtitle for adoption assistance and medical as14 sistance to encourage more families to adopt chil15 dren who otherwise would languish in the foster care

16 system for a period that many experts consider det17 rimental to their development;

18 (5) States should offer incentives for families

19 that adopt special needs children to make adoption

20 more affordable for middle-class families;

21 (6) when it is necessary for a State to remove

22 a child from the home of the child’s biological par23 ents, the State should strive—
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1 (A) to provide the child with a single foster

2 care placement and a single coordinated case

3 team; and

4 (B) to conclude an adoption of the child,

5 when adoption is the goal of the child and the

6 State, within one year of the child’s placement

7 in foster care; and

8 (7) States should participate in local, regional,

9 or national programs to enable maximum visibility of

10 waiting children to potential parents. Such programs

11 should include a nationwide, interactive computer

12 network to disseminate information on children eligi13 ble for adoption to help match them with families

14 around the country.

15 SEC. 4723. REMOVAL OF BARRIERS TO INTERETHNIC ADOP16 TION.

17 (a) STATE PLAN REQUIREMENTS.—Section 422(a)

18 of the Social Security Act (42 U.S.C 622(a)), as added

19 by section 4701 of this Act, is amended by adding at the

20 end the following:

21 ‘‘(15) CERTIFICATION REGARDING REMOVAL OF

22 BARRIERS TO INTERETHNIC ADOPTION.—A certifi23 cation that, not later than January 1, 1997, the

24 State has in effect such laws and procedures as may

25 be necessary to ensure that neither the State nor
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1 any other entity in the State that receives funds

2 from the Federal Government and is involved in

3 adoption or foster care placements may—

4 ‘‘(A) deny to any person the opportunity to

5 become an adoptive or a foster parent, on the

6 basis of the race, color, or national origin of the

7 person, or of the child, involved; or

8 ‘‘(B) delay or deny the placement of a

9 child for adoption or into foster care, on the

10 basis of the race, color, or national origin of the

11 adoptive or foster parent, or the child, in12 volved.’’.

13 (b) ENFORCEMENT.—Section 423(e) of such Act (42

14 U.S.C. 623(e)), as added by section 4701 of this Act, is

15 amended by redesignating paragraphs (5), (6), and (7) as

16 paragraphs (6), (7), and (8), respectively, and by inserting

17 after paragraph (4) the following:

18 ‘‘(5) PENALTY FOR FAILURE TO REMOVE BAR19 RIERS TO INTERETHNIC ADOPTION.—

20 ‘‘(A) REDUCTION OF PAYMENTS TO THE

21 STATE.—If a State’s program operated under

22 this part is found, as a result of a review con23 ducted under section 1123, to have violated sec24 tion 422(a)(15) during a quarter with respect

25 to any person, then, notwithstanding any regu-
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1 lations promulgated under section 1123(b)(3),

2 the Secretary shall reduce the amount otherwise

3 payable to the State under this part, for the

4 quarter and for each subsequent quarter before

5 the 1st quarter for which the State program is

6 found, as a result of such a review, not to have

7 violated section 422(a)(15) with respect to any

8 person, by—

9 ‘‘(i) 2 percent of such otherwise pay10 able amount, in the case of the 1st such

11 finding with respect to the State;

12 ‘‘(ii) 5 percent of such otherwise pay13 able amount, in the case of the 2nd such

14 finding with respect to the State; or

15 ‘‘(iii) 10 percent of such otherwise

16 payable amount, in the case of the 3rd or

17 subsequent such finding with respect to the

18 State.

19 ‘‘(B) RETURN OF FUNDS PAID TO OTHER

20 VIOLATORS.—Any other entity which is in a

21 State that receives funds under this part and

22 which violates section 422(a)(15) during a

23 quarter with respect to any person shall remit

24 to the Secretary all funds that were paid by the
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1 State to the entity during the quarter from

2 such funds.

3 ‘‘(C) PRIVATE CAUSE OF ACTION.—

4 ‘‘(i) IN GENERAL.—Any individual

5 who is aggrieved by a violation of section

6 422(a)(15) by a State or other entity may

7 bring an action seeking relief from the

8 State or other entity in any United States

9 district court.

10 ‘‘(ii) LIMITATION.—An action under this

11 subparagraph may not be brought more than 2

12 years after the date the alleged violation oc13 curred.

14 ‘‘(D) NO EFFECT ON THE INDIAN CHILD

15 WELFARE ACT OF 1978.—This paragraph shall

16 not be construed to affect the application of the

17 Indian Child Welfare Act of 1978.’’.

18 (c) CIVIL RIGHTS.—

19 (1) PROHIBITED CONDUCT.—A person or gov20 ernment that is involved in adoption or foster care

21 placements may not—

22 (A) deny to any individual the opportunity

23 to become an adoptive or a foster parent, on the

24 basis of the race, color, or national origin of the

25 individual, or of the child, involved; or
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1 (B) delay or deny the placement of a child

2 for adoption or into foster care, on the basis of

3 the race, color, or national origin of the adop4 tive or foster parent, or the child, involved.

5 (2) ENFORCEMENT.—Noncompliance with para6 graph (1) is deemed a violation of title VI of the

7 Civil Rights Act of 1964.

8 (3) NO EFFECT ON THE INDIAN CHILD WEL9 FARE ACT OF 1978.—This subsection shall not be

10 construed to affect the application of the Indian

11 Child Welfare Act of 1978.

12 (d) CONFORMING REPEAL.—Section 553 of the How13 ard M. Metzenbaum Multiethnic Placement Act of 1994

14 (42 U.S.C. 5115a) is repealed.

15 SEC. 4724. EFFECTIVE DATE; TRANSITION RULES.

16 (a) EFFECTIVE DATE.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), this chapter and the amendments made

19 by this chapter shall be effective on and after Octo20 ber 1, 1996.

21 (2) EXCEPTION.—Section 425 of the Social Se22 curity Act, as added by section 4701 of this Act,

23 shall take effect on the date of the enactment of this

24 chapter.
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1 (3) TEMPORARY REDESIGNATION OF SECTION

2 425.—During the period beginning on the date of the

3 enactment of this chapter and ending on October 1,

4 1996, section 425 of the Social Security Act, as

5 added by section 4701 of this Act, is redesignated

6 as section 425A.

7 (b) TRANSITION RULES.—

8 (1) CLAIMS, ACTIONS, AND PROCEEDINGS.—

9 The amendments made by this chapter shall not

10 apply with respect to—

11 (A) powers, duties, functions, rights,

12 claims, penalties, or obligations applicable to

13 aid, assistance, or services provided before the

14 effective date of this chapter under the provi15 sions amended; and

16 (B) administrative actions and proceedings

17 commenced before such date, or authorized be18 fore such date to be commenced, under such

19 provisions.

20 (2) CLOSING OUT ACCOUNT FOR THOSE PRO21 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED

22 BY THIS CHAPTER.—In closing out accounts, Fed23 eral and State officials may use scientifically accept24 able statistical sampling techniques. Claims made

25 under programs which are repealed or substantially
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1 amended in this chapter and which involve State ex2 penditures in cases where assistance or services were

3 provided during a prior fiscal year, shall be treated

4 as expenditures during fiscal year 1995 for purposes

5 of reimbursement even if payment was made by a

6 State on or after October 1, 1995. States shall com7 plete the filing of all claims no later than September

8 30, 1997. Federal department heads shall—

9 (A) use the single audit procedure to re10 view and resolve any claims in connection with

11 the closeout of programs; and

12 (B) reimburse States for any payments

13 made for assistance or services provided during

14 a prior fiscal year from funds for fiscal year

15 1995, rather than the funds authorized by this

16 chapter.

17 CHAPTER 2—CHILD AND FAMILY

18 SERVICES BLOCK GRANT

19 SEC. 4751. CHILD AND FAMILY SERVICES BLOCK GRANT.

20 The Child Abuse Prevention and Treatment Act (42

21 U.S.C. 5101 et seq.) is amended to read as follows:

22 ‘‘SECTION 1. SHORT TITLE.

23 ‘‘This Act may be cited as the ‘Child and Family

24 Services Block Grant Act of 1996’.
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1 ‘‘SEC. 2. FINDINGS.

2 ‘‘The Congress finds the following:

3 ‘‘(1) Each year, close to 1,000,000 American

4 children are victims of abuse and neglect.

5 ‘‘(2) Many of these children and their families

6 fail to receive adequate protection or treatment.

7 ‘‘(3) The problem of child abuse and neglect re8 quires a comprehensive approach that—

9 ‘‘(A) integrates the work of social service,

10 legal, health, mental health, education, and sub11 stance abuse agencies and organizations;

12 ‘‘(B) strengthens coordination among all

13 levels of government, and with private agencies,

14 civic, religious, and professional organizations,

15 and individual volunteers;

16 ‘‘(C) emphasizes the need for abuse and

17 neglect prevention, assessment, investigation,

18 and treatment at the neighborhood level;

19 ‘‘(D) ensures properly trained and support

20 staff with specialized knowledge, to carry out

21 their child protection duties; and

22 ‘‘(E) is sensitive to ethnic and cultural di23 versity.

24 ‘‘(4) The child protection system should be

25 comprehensive, child-centered, family-focused, and

26 community-based, should incorporate all appropriate
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1 measures to prevent the occurrence or recurrence of

2 child abuse and neglect, and should promote physical

3 and psychological recovery and social reintegration

4 in an environment that fosters the health, safety,

5 self-respect, and dignity of the child.

6 ‘‘(5) The Federal Government should provide

7 leadership and assist communities in their child and

8 family protection efforts by—

9 ‘‘(A) generating and sharing knowledge

10 relevant to child and family protection, includ11 ing the development of models for service deliv12 ery;

13 ‘‘(B) strengthening the capacity of States

14 to assist communities;

15 ‘‘(C) helping communities to carry out

16 their child and family protection plans by pro17 moting the competence of professional, para18 professional, and volunteer resources; and

19 ‘‘(D) providing leadership to end the abuse

20 and neglect of the Nation’s children and youth.

21 ‘‘SEC. 3. PURPOSES.

22 ‘‘The purposes of this Act are the following:

23 ‘‘(1) To assist each State in improving the child

24 protective service systems of such State by—
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1 ‘‘(A) improving risk and safety assessment

2 tools and protocols;

3 ‘‘(B) developing, strengthening, and facili4 tating training opportunities for individuals who

5 are mandated to report child abuse or neglect

6 or otherwise overseeing, investigating, prosecut7 ing, or providing services to children and fami8 lies who are at risk of abusing or neglecting

9 their children; and

10 ‘‘(C) developing, implementing, or operat11 ing information, education, training, or other

12 programs designed to assist and provide serv13 ices for families of disabled infants with life14 threatening conditions.

15 ‘‘(2) To support State efforts to develop, oper16 ate, expand and enhance a network of community17 based, prevention-focused, family resource and sup18 port programs that are culturally competent and

19 that coordinate resources among existing education,

20 vocational rehabilitation, disability, respite, health,

21 mental health, job readiness, self-sufficiency, child

22 and family development, community action, Head

23 Start, child care, child abuse and neglect prevention,

24 juvenile justice, domestic violence prevention and
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1 intervention, housing, and other human service orga2 nizations within the State.

3 ‘‘(3) To facilitate the elimination of barriers to

4 adoption and to provide permanent and loving home

5 environments for children who would benefit from

6 adoption, particularly children with special needs, in7 cluding disabled infants with life-threatening condi8 tions, by—

9 ‘‘(A) promoting model adoption legislation

10 and procedures in the States and territories of

11 the United States in order to eliminate jurisdic12 tional and legal obstacles to adoption;

13 ‘‘(B) providing a mechanism for the De14 partment of Health and Human Services to—

15 ‘‘(i) promote quality standards for

16 adoption services, preplacement, post17 placement, and post-legal adoption counsel18 ing, and standards to protect the rights of

19 children in need of adoption;

20 ‘‘(ii) maintain a national adoption in21 formation exchange system to bring to22 gether children who would benefit from

23 adoption and qualified prospective adoptive

24 parents who are seeking such children, and

25 conduct national recruitment efforts in
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1 order to reach prospective parents for chil2 dren awaiting adoption; and

3 ‘‘(iii) demonstrate expeditious ways to

4 free children for adoption for whom it has

5 been determined that adoption is the ap6 propriate plan; and

7 ‘‘(C) facilitating the identification and re8 cruitment of foster and adoptive families that

9 can meet children’s needs.

10 ‘‘(4) To respond to the needs of children, in

11 particular those who are drug exposed or afflicted

12 with Acquired Immune Deficiency Syndrome

13 (AIDS), by supporting activities aimed at preventing

14 the abandonment of children, providing support to

15 children and their families, and facilitating the re16 cruitment and training of health and social service

17 personnel.

18 ‘‘(5) To carry out any other activities as the

19 Secretary determines are consistent with this Act.

20 ‘‘SEC. 4. DEFINITIONS.

21 ‘‘As used in this Act:

22 ‘‘(1) CHILD.—The term ‘child’ means a person

23 who has not attained the lesser of—

24 ‘‘(A) the age of 18; or
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1 ‘‘(B) except in the case of sexual abuse,

2 the age specified by the child protection law of

3 the State in which the child resides.

4 ‘‘(2) CHILD ABUSE AND NEGLECT.—The term

5 ‘child abuse and neglect’ means, at a minimum, any

6 recent act or failure to act on the part of a parent

7 or caretaker, which results in death, serious physical

8 or emotional harm, sexual abuse or exploitation, or

9 an act or failure to act which presents an imminent

10 risk of serious harm.

11 ‘‘(3) FAMILY RESOURCE AND SUPPORT PRO12 GRAMS.—The term ‘family resource and support

13 program’ means a community-based, prevention-fo14 cused entity that—

15 ‘‘(A) provides, through direct service, the

16 core services required under this Act, includ17 ing—

18 ‘‘(i) parent education, support and

19 leadership services, together with services

20 characterized by relationships between par21 ents and professionals that are based on

22 equality and respect, and designed to assist

23 parents in acquiring parenting skills, learn24 ing about child development, and respond-
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1 ing appropriately to the behavior of their

2 children;

3 ‘‘(ii) services to facilitate the ability of

4 parents to serve as resources to one an5 other (such as through mutual support and

6 parent self-help groups);

7 ‘‘(iii) early developmental screening of

8 children to assess any needs of children,

9 and to identify types of support that may

10 be provided;

11 ‘‘(iv) outreach services provided

12 through voluntary home visits and other

13 methods to assist parents in becoming

14 aware of and able to participate in family

15 resources and support program activities;

16 ‘‘(v) community and social services to

17 assist families in obtaining community re18 sources; and

19 ‘‘(vi) followup services;

20 ‘‘(B) provides, or arranges for the provi21 sion of, other core services through contracts or

22 agreements with other local agencies; and

23 ‘‘(C) provides access to optional services,

24 directly or by contract, purchase of service, or

25 interagency agreement, including—
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1 ‘‘(i) child care, early childhood devel2 opment and early intervention services;

3 ‘‘(ii) self-sufficiency and life manage4 ment skills training;

5 ‘‘(iii) education services, such as scho6 lastic tutoring, literacy training, and Gen7 eral Educational Degree services;

8 ‘‘(iv) job readiness skills;

9 ‘‘(v) child abuse and neglect preven10 tion activities;

11 ‘‘(vi) services that families with chil12 dren with disabilities or special needs may

13 require;

14 ‘‘(vii) community and social service re15 ferral;

16 ‘‘(viii) peer counseling;

17 ‘‘(ix) referral for substance abuse

18 counseling and treatment; and

19 ‘‘(x) help line services.

20 ‘‘(4) INDIAN TRIBE AND TRIBAL ORGANIZA21 TION.—The terms ‘Indian tribe’ and ‘tribal organi22 zation’ shall have the same meanings given such

23 terms in subsections (e) and (l), respectively, of sec24 tion 4 of the Indian Self-Determination and Edu25 cation Assistance Act (25 U.S.C. 450b(e) and (l)).
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1 ‘‘(5) RESPITE SERVICES.—The term ‘respite

2 services’ means short-term care services provided in

3 the temporary absence of the regular caregiver (par4 ent, other relative, foster parent, adoptive parent, or

5 guardian) to children who—

6 ‘‘(A) are in danger of abuse or neglect;

7 ‘‘(B) have experienced abuse or neglect; or

8 ‘‘(C) have disabilities, chronic, or terminal

9 illnesses.

10 Such services shall be provided within or outside the

11 home of the child, be short-term care (ranging from

12 a few hours to a few weeks of time, per year), and

13 be intended to enable the family to stay together and

14 to keep the child living in the home and community

15 of the child.

16 ‘‘(6) SECRETARY.—The term ‘Secretary’ means

17 the Secretary of Health and Human Services.

18 ‘‘(7) SEXUAL ABUSE.—The term ‘sexual abuse’

19 includes—

20 ‘‘(A) the employment, use, persuasion, in21 ducement, enticement, or coercion of any child

22 to engage in, or assist any other person to en23 gage in, any sexually explicit conduct or simula24 tion of such conduct for the purpose of produc25 ing a visual depiction of such conduct; or
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1 ‘‘(B) the rape, molestation, prostitution, or

2 other form of sexual exploitation of children, or

3 incest with children.

4 ‘‘(8) STATE.—The term ‘State’ means each of

5 the several States, the District of Columbia, the

6 Commonwealth of Puerto Rico, the Virgin Islands,

7 Guam, American Samoa, the Commonwealth of the

8 Northern Mariana Islands, and the Trust Territory

9 of the Pacific Islands.

10 ‘‘(9) WITHHOLDING OF MEDICALLY INDICATED

11 TREATMENT.—The term ‘withholding of medically

12 indicated treatment’ means the failure to respond to

13 the infant’s life-threatening conditions by providing

14 treatment (including appropriate nutrition, hydra15 tion, and medication) which, in the treating physi16 cian’s or physicians’ reasonable medical judgment,

17 will be most likely to be effective in ameliorating or

18 correcting all such conditions, except that the term

19 does not include the failure to provide treatment

20 (other than appropriate nutrition, hydration, or

21 medication) to an infant when, in the treating physi22 cian’s or physicians’ reasonable medical judgment—

23 ‘‘(A) the infant is chronically and irrevers24 ibly comatose;
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1 ‘‘(B) the provision of such treatment

2 would—

3 ‘‘(i) merely prolong dying;

4 ‘‘(ii) not be effective in ameliorating

5 or correcting all of the infant’s life-threat6 ening conditions; or

7 ‘‘(iii) otherwise be futile in terms of

8 the survival of the infant; or

9 ‘‘(C) the provision of such treatment would

10 be virtually futile in terms of the survival of the

11 infant and the treatment itself under such cir12 cumstances would be inhumane.

13 ‘‘TITLE I—GENERAL BLOCK

14 GRANT

15 ‘‘SEC. 101. CHILD AND FAMILY SERVICES BLOCK GRANTS.

16 ‘‘(a) ELIGIBILITY.—The Secretary shall award

17 grants to eligible States that file a State plan that is ap18 proved under section 102 and that otherwise meet the eli19 gibility requirements for grants under this title.

20 ‘‘(b) AMOUNT OF GRANT.—The amount of a grant

21 made to each State under subsection (a) for a fiscal year

22 shall be based on the population of children under the age

23 of 18 residing in each State that applies for a grant under

24 this section.
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1 ‘‘(c) USE OF AMOUNTS.—Amounts received by a

2 State under a grant awarded under subsection (a) shall

3 be used to carry out the purposes described in section 3.

4 ‘‘SEC. 102. ELIGIBLE STATES.

5 ‘‘(a) IN GENERAL.—As used in this title, the term

6 ‘eligible State’ means a State that has submitted to the

7 Secretary, not later than October 1, 1996, and every 3

8 years thereafter, a plan which has been signed by the chief

9 executive officer of the State and that includes the follow10 ing:

11 ‘‘(1) OUTLINE OF CHILD PROTECTION PRO12 GRAM.—A written document that outlines the activi13 ties the State intends to conduct to achieve the pur14 pose of this title, including the procedures to be used

15 for—

16 ‘‘(A) receiving and assessing reports of

17 child abuse or neglect;

18 ‘‘(B) investigating such reports;

19 ‘‘(C) with respect to families in which

20 abuse or neglect has been confirmed, providing

21 services or referral for services for families and

22 children where the State makes a determination

23 that the child may safely remain with the fam24 ily;
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1 ‘‘(D) protecting children by removing them

2 from dangerous settings and ensuring their

3 placement in a safe environment;

4 ‘‘(E) providing training for individuals

5 mandated to report suspected cases of child

6 abuse or neglect;

7 ‘‘(F) protecting children in foster care;

8 ‘‘(G) promoting timely adoptions;

9 ‘‘(H) protecting the rights of families,

10 using adult relatives as the preferred placement

11 for children separated from their parents where

12 such relatives meet the relevant State child pro13 tection standards; and

14 ‘‘(I) providing services to individuals, fami15 lies, or communities, either directly or through

16 referral, that are aimed at preventing the occur17 rence of child abuse and neglect.

18 ‘‘(2) CERTIFICATION OF STATE LAW REQUIRING

19 THE REPORTING OF CHILD ABUSE AND NEGLECT.—

20 A certification that the State has in effect laws that

21 require public officials and other professionals to re22 port, in good faith, actual or suspected instances of

23 child abuse or neglect.

24 ‘‘(3) CERTIFICATION OF PROCEDURES FOR

25 SCREENING, SAFETY ASSESSMENT, AND PROMPT IN-
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1 VESTIGATION.—A certification that the State has in

2 effect procedures for receiving and responding to re3 ports of child abuse or neglect, including the reports

4 described in paragraph (2), and for the immediate

5 screening, safety assessment, and prompt investiga6 tion of such reports.

7 ‘‘(4) CERTIFICATION OF STATE PROCEDURES

8 FOR REMOVAL AND PLACEMENT OF ABUSED OR NE9 GLECTED CHILDREN.—A certification that the State

10 has in effect procedures for the removal from fami11 lies and placement of abused or neglected children

12 and of any other child in the same household who

13 may also be in danger of abuse or neglect.

14 ‘‘(5) CERTIFICATION OF PROVISIONS FOR IMMU15 NITY FROM PROSECUTION.—A certification that the

16 State has in effect laws requiring immunity from

17 prosecution under State and local laws and regula18 tions for individuals making good faith reports of

19 suspected or known instances of child abuse or ne20 glect.

21 ‘‘(6) CERTIFICATION OF PROVISIONS AND PRO22 CEDURES RELATING TO APPEALS.—A certification

23 that not later than 2 years after the date of the en24 actment of this Act, the State shall have laws and

25 procedures in effect affording individuals an oppor-
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1 tunity to appeal an official finding of abuse or ne2 glect.

3 ‘‘(7) CERTIFICATION OF STATE PROCEDURES

4 FOR DEVELOPING AND REVIEWING WRITTEN PLANS

5 FOR PERMANENT PLACEMENT OF REMOVED CHIL6 DREN.—A certification that the State has in effect

7 procedures for ensuring that a written plan is pre8 pared for children who have been removed from their

9 families. Such plan shall specify the goals for achiev10 ing a permanent placement for the child in a timely

11 fashion, for ensuring that the written plan is re12 viewed every 6 months (until such placement is

13 achieved), and for ensuring that information about

14 such children is collected regularly and recorded in

15 case records, and include a description of such pro16 cedures.

17 ‘‘(8) CERTIFICATION OF STATE PROGRAM TO

18 PROVIDE INDEPENDENT LIVING SERVICES.—A cer19 tification that the State has in effect a program to

20 provide independent living services, for assistance in

21 making the transition to self-sufficient adulthood, to

22 individuals in the child protection program of the

23 State who are 16, but who are not 20 (or, at the op24 tion of the State, 22), years of age, and who do not

25 have a family to which to be returned.
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1 ‘‘(9) CERTIFICATION OF STATE PROCEDURES

2 TO RESPOND TO REPORTING OF MEDICAL NEGLECT

3 OF DISABLED INFANTS.—

4 ‘‘(A) IN GENERAL.—A certification that

5 the State has in place for the purpose of re6 sponding to the reporting of medical neglect of

7 infants (including instances of withholding of

8 medically indicated treatment from disabled in9 fants with life-threatening conditions), proce10 dures or programs, or both (within the State

11 child protective services system), to provide

12 for—

13 ‘‘(i) coordination and consultation

14 with individuals designated by and within

15 appropriate health-care facilities;

16 ‘‘(ii) prompt notification by individ17 uals designated by and within appropriate

18 health-care facilities of cases of suspected

19 medical neglect (including instances of

20 withholding of medically indicated treat21 ment from disabled infants with life-threat22 ening conditions); and

23 ‘‘(iii) authority, under State law, for

24 the State child protective service to pursue

25 any legal remedies, including the authority
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1 to initiate legal proceedings in a court of

2 competent jurisdiction, as may be nec3 essary to prevent the withholding of medi4 cally indicated treatment from disabled in5 fants with life-threatening conditions.

6 ‘‘(B) WITHHOLDING OF MEDICALLY INDI7 CATED TREATMENT.—As used in subparagraph

8 (A), the term ‘withholding of medically indi9 cated treatment’ means the failure to respond

10 to the infant’s life-threatening conditions by

11 providing treatment (including appropriate nu12 trition, hydration, and medication) which, in the

13 treating physician’s or physicians’ reasonable

14 medical judgment, will be most likely to be ef15 fective in ameliorating or correcting all such

16 conditions, except that such term does not in17 clude the failure to provide treatment (other

18 than appropriate nutrition, hydration, or medi19 cation) to an infant when, in the treating physi20 cian’s or physicians’ reasonable medical judg21 ment—

22 ‘‘(i) the infant is chronically and irre23 versibly comatose;

24 ‘‘(ii) the provision of such treatment

25 would—
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1 ‘‘(I) merely prolong dying;

2 ‘‘(II) not be effective in amelio3 rating or correcting all of the infant’s

4 life-threatening conditions; or

5 ‘‘(III) otherwise be futile in

6 terms of the survival of the infant; or

7 ‘‘(iii) the provision of such treatment

8 would be virtually futile in terms of the

9 survival of the infant and the treatment it10 self under such circumstances would be in11 humane.

12 ‘‘(10) IDENTIFICATION OF CHILD PROTECTION

13 GOALS.—The quantitative goals of the State child

14 protection program.

15 ‘‘(11) CERTIFICATION OF CHILD PROTECTION

16 STANDARDS.—With respect to fiscal years beginning

17 on or after April 1, 1996, a certification that the

18 State—

19 ‘‘(A) has completed an inventory of all

20 children who, before the inventory, had been in

21 foster care under the responsibility of the State

22 for 6 months or more, which determined—

23 ‘‘(i) the appropriateness of, and neces24 sity for, the foster care placement;
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1 ‘‘(ii) whether the child could or should

2 be returned to the parents of the child or

3 should be freed for adoption or other per4 manent placement; and

5 ‘‘(iii) the services necessary to facili6 tate the return of the child or the place7 ment of the child for adoption or legal

8 guardianship;

9 ‘‘(B) is operating, to the satisfaction of the

10 Secretary—

11 ‘‘(i) a statewide information system

12 from which can be readily determined the

13 status, demographic characteristics, loca14 tion, and goals for the placement of every

15 child who is (or, within the immediately

16 preceding 12 months, has been) in foster

17 care;

18 ‘‘(ii) a case review system for each

19 child receiving foster care under the super20 vision of the State;

21 ‘‘(iii) a service program designed to

22 help children—

23 ‘‘(I) where appropriate, return to

24 families from which they have been

25 removed; or
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1 ‘‘(II) be placed for adoption, with

2 a legal guardian, or if adoption or

3 legal guardianship is determined not

4 to be appropriate for a child, in some

5 other planned, permanent living ar6 rangement; and

7 ‘‘(iv) a preplacement preventive serv8 ices program designed to help children at

9 risk for foster care placement remain with

10 their families; and

11 ‘‘(C)(i) has reviewed (or not later than Oc12 tober 1, 1997, will review) State policies and

13 administrative and judicial procedures in effect

14 for children abandoned at or shortly after birth

15 (including policies and procedures providing for

16 legal representation of such children); and

17 ‘‘(ii) is implementing (or not later than Oc18 tober 1, 1997, will implement) such policies and

19 procedures as the State determines, on the

20 basis of the review described in clause (i), to be

21 necessary to enable permanent decisions to be

22 made expeditiously with respect to the place23 ment of such children.

24 ‘‘(12) CERTIFICATION OF REASONABLE EF25 FORTS BEFORE PLACEMENT OF CHILDREN IN FOS-
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1 TER CARE.—A certification that the State in each

2 case will—

3 ‘‘(A) make reasonable efforts prior to the

4 placement of a child in foster care, to prevent

5 or eliminate the need for removal of the child

6 from the child’s home, and to make it possible

7 for the child to return home; and

8 ‘‘(B) with respect to families in which

9 abuse or neglect has been confirmed, provide

10 services or referral for services for families and

11 children where the State makes a determination

12 that the child may safely remain with the fam13 ily.

14 ‘‘(13) CERTIFICATION OF CONFIDENTIALITY

15 AND REQUIREMENTS FOR INFORMATION DISCLO16 SURE.—

17 ‘‘(A) IN GENERAL.—A certification that

18 the State has in effect and operational—

19 ‘‘(i) requirements ensuring that re20 ports and records made and maintained

21 pursuant to the purposes of this part shall

22 only be made available to—

23 ‘‘(I) individuals who are the sub24 ject of the report;
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1 ‘‘(II) Federal, State, or local gov2 ernment entities, or any agent of such

3 entities, having a need for such infor4 mation in order to carry out their re5 sponsibilities under law to protect

6 children from abuse and neglect;

7 ‘‘(III) child abuse citizen review

8 panels;

9 ‘‘(IV) child fatality review panels;

10 ‘‘(V) a grand jury or court, upon

11 a finding that information in the

12 record is necessary for the determina13 tion of an issue before the court or

14 grand jury; and

15 ‘‘(VI) other entities or classes of

16 individuals statutorily authorized by

17 the State to receive such information

18 pursuant to a legitimate State pur19 pose; and

20 ‘‘(ii) provisions that allow for public

21 disclosure of the findings or information

22 about cases of child abuse or neglect that

23 have resulted in a child fatality or near fa24 tality.
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1 ‘‘(B) LIMITATION.—Disclosures made pur2 suant to clause (i) or (ii) shall not include the

3 identifying information concerning the individ4 ual initiating a report or complaint alleging sus5 pected instances of child abuse or neglect.

6 ‘‘(C) DEFINITION.—For purposes of this

7 paragraph, the term ‘near fatality’ means an

8 act that, as certified by a physician, places the

9 child in serious or critical condition.

10 ‘‘(b) DETERMINATIONS.—The Secretary shall deter11 mine whether a plan submitted pursuant to subsection (a)

12 contains the material required by subsection (a), other

13 than the material described in paragraph (9) of such sub14 section. The Secretary may not require a State to include

15 in such a plan any material not described in subsection

16 (a).

17 ‘‘SEC. 103. DATA COLLECTION AND REPORTING.

18 ‘‘(a) NATIONAL CHILD ABUSE AND NEGLECT DATA

19 SYSTEM.—The Secretary shall establish a national data

20 collection and analysis program—

21 ‘‘(1) which, to the extent practicable, coordi22 nates existing State child abuse and neglect reports

23 and which shall include—
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1 ‘‘(A) standardized data on substantiated,

2 as well as false, unfounded, or unsubstantiated

3 reports; and

4 ‘‘(B) information on the number of deaths

5 due to child abuse and neglect; and

6 ‘‘(2) which shall collect, compile, analyze, and

7 make available State child abuse and neglect report8 ing information which, to the extent practical, is uni9 versal and case-specific and integrated with other

10 case-based foster care and adoption data collected by

11 the Secretary.

12 ‘‘(b) ADOPTION AND FOSTER CARE AND ANALYSIS

13 AND REPORTING SYSTEMS.—The Secretary shall imple14 ment a system for the collection of data relating to adop15 tion and foster care in the United States. Such data collec16 tion system shall—

17 ‘‘(1) avoid unnecessary diversion of resources

18 from agencies responsible for adoption and foster

19 care;

20 ‘‘(2) assure that any data that is collected is re21 liable and consistent over time and among jurisdic22 tions through the use of uniform definitions and

23 methodologies;

24 ‘‘(3) provide comprehensive national informa25 tion with respect to—
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1 ‘‘(A) the demographic characteristics of

2 adoptive and foster children and their biological

3 and adoptive or foster parents;

4 ‘‘(B) the status of the foster care popu5 lation (including the number of children in fos6 ter care, length of placement, type of place7 ment, availability for adoption, and goals for

8 ending or continuing foster care);

9 ‘‘(C) the number and characteristics of—

10 ‘‘(i) children placed in or removed

11 from foster care;

12 ‘‘(ii) children adopted or with respect

13 to whom adoptions have been terminated;

14 and

15 ‘‘(iii) children placed in foster care

16 outside the State which has placement and

17 care responsibility; and

18 ‘‘(D) the extent and nature of assistance

19 provided by Federal, State, and local adoption

20 and foster care programs and the characteris21 tics of the children with respect to whom such

22 assistance is provided; and

23 ‘‘(4) utilize appropriate requirements and incen24 tives to ensure that the system functions reliably

25 throughout the United States.
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1 ‘‘(c) ADDITIONAL INFORMATION.—The Secretary

2 may require the provision of additional information under

3 the data collection system established under subsection (b)

4 if the addition of such information is agreed to by a major5 ity of the States.

6 ‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within

7 6 months after the end of each fiscal year, the Secretary

8 shall prepare a report based on information provided by

9 the States for the fiscal year pursuant to this section, and

10 shall make the report and such information available to

11 the Congress and the public.

12 ‘‘TITLE II—RESEARCH, DEM13 ONSTRATIONS, TRAINING,

14 AND TECHNICAL ASSISTANCE

15 ‘‘SEC. 201. RESEARCH GRANTS.

16 ‘‘(a) IN GENERAL.—The Secretary, in consultation

17 with appropriate Federal officials and recognized experts

18 in the field, shall award grants or contracts for the con19 duct of research in accordance with subsection (b).

20 ‘‘(b) RESEARCH.—Research projects to be conducted

21 using amounts received under this section—

22 ‘‘(1) shall be designed to provide information to

23 better protect children from abuse or neglect and to

24 improve the well-being of abused or neglected chil-
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1 dren, with at least a portion of any such research

2 conducted under a project being field initiated;

3 ‘‘(2) shall at a minimum, focus on—

4 ‘‘(A) the nature and scope of child abuse

5 and neglect;

6 ‘‘(B) the causes, prevention, assessment,

7 identification, treatment, cultural and socio8 economic distinctions, and the consequences of

9 child abuse and neglect;

10 ‘‘(C) appropriate, effective and culturally

11 sensitive investigative, administrative, and judi12 cial procedures with respect to cases of child

13 abuse; and

14 ‘‘(D) the national incidence of child abuse

15 and neglect, including—

16 ‘‘(i) the extent to which incidents of

17 child abuse are increasing or decreasing in

18 number and severity;

19 ‘‘(ii) the incidence of substantiated

20 and unsubstantiated reported child abuse

21 cases;

22 ‘‘(iii) the number of substantiated

23 cases that result in a judicial finding of

24 child abuse or neglect or related criminal

25 court convictions;
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1 ‘‘(iv) the extent to which the number

2 of unsubstantiated, unfounded and false

3 reported cases of child abuse or neglect

4 have contributed to the inability of a State

5 to respond effectively to serious cases of

6 child abuse or neglect;

7 ‘‘(v) the extent to which the lack of

8 adequate resources and the lack of ade9 quate training of reporters have contrib10 uted to the inability of a State to respond

11 effectively to serious cases of child abuse

12 and neglect;

13 ‘‘(vi) the number of unsubstantiated,

14 false, or unfounded reports that have re15 sulted in a child being placed in substitute

16 care, and the duration of such placement;

17 ‘‘(vii) the extent to which unsubstan18 tiated reports return as more serious cases

19 of child abuse or neglect;

20 ‘‘(viii) the incidence and prevalence of

21 physical, sexual, and emotional abuse and

22 physical and emotional neglect in sub23 stitute care;

24 ‘‘(ix) the incidence and outcomes of

25 abuse allegations reported within the con-
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1 text of divorce, custody, or other family

2 court proceedings, and the interaction be3 tween this venue and the child protective

4 services system; and

5 ‘‘(x) the cases of children reunited

6 with their families or receiving family pres7 ervation services that result in subsequent

8 substantiated reports of child abuse and

9 neglect, including the death of the child;

10 and

11 ‘‘(3) may include the appointment of an advi12 sory board to—

13 ‘‘(A) provide recommendations on coordi14 nating Federal, State, and local child abuse and

15 neglect activities at the State level with similar

16 activities at the State and local level pertaining

17 to family violence prevention;

18 ‘‘(B) consider specific modifications needed

19 in State laws and programs to reduce the num20 ber of unfounded or unsubstantiated reports of

21 child abuse or neglect while enhancing the abil22 ity to identify and substantiate legitimate cases

23 of abuse or neglect which place a child in dan24 ger; and
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1 ‘‘(C) provide recommendations for modi2 fications needed to facilitate coordinated na3 tional and Statewide data collection with re4 spect to child protection and child welfare.

5 ‘‘SEC. 202. NATIONAL CLEARINGHOUSE FOR INFORMATION

6 RELATING TO CHILD ABUSE.

7 ‘‘(a) ESTABLISHMENT.—The Secretary shall,

8 through the Department of Health and Human Services,

9 or by one or more contracts of not less than 3 years dura10 tion provided through a competition, establish a national

11 clearinghouse for information relating to child abuse.

12 ‘‘(b) FUNCTIONS.—The Secretary shall, through the

13 clearinghouse established by subsection (a)—

14 ‘‘(1) maintain, coordinate, and disseminate in15 formation on all programs, including private pro16 grams, that show promise of success with respect to

17 the prevention, assessment, identification, and treat18 ment of child abuse and neglect;

19 ‘‘(2) maintain and disseminate information re20 lating to—

21 ‘‘(A) the incidence of cases of child abuse

22 and neglect in the United States;

23 ‘‘(B) the incidence of such cases in popu24 lations determined by the Secretary under sec25 tion 105(a)(1) of the Child Abuse Prevention,
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1 Adoption, and Family Services Act of 1988 (as

2 such section was in effect on the day before the

3 date of enactment of this Act); and

4 ‘‘(C) the incidence of any such cases relat5 ed to alcohol or drug abuse;

6 ‘‘(3) disseminate information related to data

7 collected and reported by States pursuant to section

8 103;

9 ‘‘(4) compile, analyze, and publish a summary

10 of the research conducted under section 201; and

11 ‘‘(5) solicit public comment on the components

12 of such clearinghouse.

13 ‘‘SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

14 ‘‘(a) AWARDING OF GENERAL GRANTS.—The Sec15 retary may make grants to, and enter into contracts with,

16 public and nonprofit private agencies or organizations (or

17 combinations of such agencies or organizations) for the

18 purpose of developing, implementing, and operating time

19 limited, demonstration programs and projects for the fol20 lowing purposes:

21 ‘‘(1) INNOVATIVE PROGRAMS AND PROJECTS.—

22 The Secretary may award grants to public agencies

23 that demonstrate innovation in responding to reports

24 of child abuse and neglect including programs of col25 laborative partnerships between the State child pro-
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1 tective service agency, community social service

2 agencies and family support programs, schools,

3 churches and synagogues, and other community

4 agencies to allow for the establishment of a triage

5 system that—

6 ‘‘(A) accepts, screens and assesses reports

7 received to determine which such reports re8 quire an intensive intervention and which re9 quire voluntary referral to another agency, pro10 gram or project;

11 ‘‘(B) provides, either directly or through

12 referral, a variety of community-linked services

13 to assist families in preventing child abuse and

14 neglect; and

15 ‘‘(C) provides further investigation and in16 tensive intervention where the child’s safety is

17 in jeopardy.

18 ‘‘(2) KINSHIP CARE PROGRAMS AND

19 PROJECTS.—The Secretary may award grants to

20 public entities to assist such entities in developing or

21 implementing procedures using adult relatives as the

22 preferred placement for children removed from their

23 home, where such relatives are determined to be ca24 pable of providing a safe nurturing environment for

25 the child and where, to the maximum extent prac-
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1 ticable, such relatives comply with relevant State

2 child protection standards.

3 ‘‘(3) ADOPTION OPPORTUNITIES.—The Sec4 retary may award grants to public entities to assist

5 such entities in developing or implementing pro6 grams to expand opportunities for the adoption of

7 children with special needs.

8 ‘‘(4) FAMILY RESOURCE CENTERS.—The Sec9 retary may award grants to public or nonprofit pri10 vate entities to provide for the establishment of fam11 ily resource programs and support services that—

12 ‘‘(A) develop, expand, and enhance state13 wide networks of community-based, prevention14 focused centers, programs, or services that pro15 vide comprehensive support for families;

16 ‘‘(B) promote the development of parental

17 competencies and capacities in order to increase

18 family stability;

19 ‘‘(C) support the additional needs of fami20 lies with children with disabilities;

21 ‘‘(D) foster the development of a contin22 uum of preventive services for children and

23 families through State and community-based

24 collaborations and partnerships (both public

25 and private); and
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1 ‘‘(E) maximize funding for the financing,

2 planning, community mobilization, collabora3 tion, assessment, information and referral,

4 startup, training and technical assistance, infor5 mation management, reporting, and evaluation

6 costs for establishing, operating, or expanding a

7 statewide network of community-based, preven8 tion-focused family resource and support serv9 ices.

10 ‘‘(5) OTHER INNOVATIVE PROGRAMS.—The

11 Secretary may award grants to public or private

12 nonprofit organizations to assist such entities in de13 veloping or implementing innovative programs and

14 projects that show promise of preventing and treat15 ing cases of child abuse and neglect (such as Par16 ents Anonymous).

17 ‘‘(b) GRANTS FOR ABANDONED INFANT PRO18 GRAMS.—The Secretary may award grants to public and

19 nonprofit private entities to assist such entities in develop20 ing or implementing procedures—

21 ‘‘(1) to prevent the abandonment of infants and

22 young children, including the provision of services to

23 members of the natural family for any condition that

24 increases the probability of abandonment of an in25 fant or young child;
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1 ‘‘(2) to identify and address the needs of aban2 doned infants and young children;

3 ‘‘(3) to assist abandoned infants and young

4 children to reside with their natural families or in

5 foster care, as appropriate;

6 ‘‘(4) to recruit, train, and retain foster families

7 for abandoned infants and young children;

8 ‘‘(5) to carry out residential care programs for

9 abandoned infants and young children who are un10 able to reside with their families or to be placed in

11 foster care;

12 ‘‘(6) to carry out programs of respite care for

13 families and foster families of infants and young

14 children; and

15 ‘‘(7) to recruit and train health and social serv16 ices personnel to work with families, foster care fam17 ilies, and residential care programs for abandoned

18 infants and young children.

19 ‘‘(c) EVALUATION.—In making grants for demonstra20 tion projects under this section, the Secretary shall require

21 all such projects to be evaluated for their effectiveness.

22 Funding for such evaluations shall be provided either as

23 a stated percentage of a demonstration grant or as a sepa24 rate grant entered into by the Secretary for the purpose
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1 of evaluating a particular demonstration project or group

2 of projects.

3 ‘‘SEC. 204. TECHNICAL ASSISTANCE.

4 ‘‘(a) CHILD ABUSE AND NEGLECT.—

5 ‘‘(1) IN GENERAL.—The Secretary shall provide

6 technical assistance under this title to States to as7 sist such States in planning, improving, developing,

8 and carrying out programs and activities relating to

9 the prevention, assessment identification, and treat10 ment of child abuse and neglect.

11 ‘‘(2) EVALUATION.—Technical assistance pro12 vided under paragraph (1) may include an evalua13 tion or identification of—

14 ‘‘(A) various methods and procedures for

15 the investigation, assessment, and prosecution

16 of child physical and sexual abuse cases;

17 ‘‘(B) ways to mitigate psychological trau18 ma to the child victim; and

19 ‘‘(C) effective programs carried out by the

20 States under this Act.

21 ‘‘(b) ADOPTION OPPORTUNITIES.—The Secretary

22 shall provide, directly or by grant to or contract with pub23 lic or private nonprofit agencies or organizations—

24 ‘‘(1) technical assistance and resource and re25 ferral information to assist State or local govern-
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1 ments with termination of parental rights issues, in

2 recruiting and retaining adoptive families, in the

3 successful placement of children with special needs,

4 and in the provision of pre- and post-placement serv5 ices, including post-legal adoption services; and

6 ‘‘(2) other assistance to help State and local

7 governments replicate successful adoption-related

8 projects from other areas in the United States.

9 ‘‘SEC. 205. TRAINING RESOURCES.

10 ‘‘(a) TRAINING PROGRAMS.—The Secretary may

11 award grants to public or private nonprofit organiza12 tions—

13 ‘‘(1) for the training of professional and para14 professional personnel in the fields of medicine, law,

15 education, law enforcement, social work, and other

16 relevant fields who are engaged in, or intend to work

17 in, the field of prevention, identification, and treat18 ment of child abuse and neglect, including the links

19 between domestic violence and child abuse;

20 ‘‘(2) to provide culturally specific instruction in

21 methods of protecting children from child abuse and

22 neglect to children and to persons responsible for the

23 welfare of children, including parents of and persons

24 who work with children with disabilities; and
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1 ‘‘(3) to improve the recruitment, selection, and

2 training of volunteers serving in private and public

3 nonprofit children, youth and family service organi4 zations in order to prevent child abuse and neglect

5 through collaborative analysis of current recruit6 ment, selection, and training programs and develop7 ment of model programs for dissemination and rep8 lication nationally.

9 ‘‘(b) DISSEMINATION OF INFORMATION.—The Sec10 retary may provide for and disseminate information relat11 ing to various training resources available at the State and

12 local level to—

13 ‘‘(1) individuals who are engaged, or who intend

14 to engage, in the prevention, identification, assess15 ment, and treatment of child abuse and neglect; and

16 ‘‘(2) appropriate State and local officials, in17 cluding prosecutors, to assist in training law en18 forcement, legal, judicial, medical, mental health,

19 education, and child welfare personnel in appropriate

20 methods of interacting during investigative, adminis21 trative, and judicial proceedings with children who

22 have been subjected to abuse.
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1 ‘‘SEC. 206. APPLICATIONS AND AMOUNTS OF GRANTS.

2 ‘‘(a) REQUIREMENT OF APPLICATION.—The Sec3 retary may not make a grant to a State or other entity

4 under this title unless—

5 ‘‘(1) an application for the grant is submitted

6 to the Secretary;

7 ‘‘(2) with respect to carrying out the purpose

8 for which the grant is to be made, the application

9 provides assurances of compliance satisfactory to the

10 Secretary; and

11 ‘‘(3) the application otherwise is in such form,

12 is made in such manner, and contains such agree13 ments, assurances, and information as the Secretary

14 determines to be necessary to carry out this title.

15 ‘‘(b) AMOUNT OF GRANT.—The Secretary shall de16 termine the amount of a grant to be awarded under this

17 title.

18 ‘‘SEC. 207. PEER REVIEW FOR GRANTS.

19 ‘‘(a) ESTABLISHMENT OF PEER REVIEW PROCESS.—

20 ‘‘(1) IN GENERAL.—The Secretary shall, in con21 sultation with experts in the field and other Federal

22 agencies, establish a formal, rigorous, and meritori23 ous peer review process for purposes of evaluating

24 and reviewing applications for grants under this title

25 and determining the relative merits of the projects

26 for which such assistance is requested. The purpose
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1 of this process is to enhance the quality and useful2 ness of research in the field of child abuse and ne3 glect.

4 ‘‘(2) REQUIREMENTS FOR MEMBERS.—In estab5 lishing the process required by paragraph (1), the

6 Secretary shall appoint to the peer review panels

7 only members who are experts in the field of child

8 abuse and neglect or related disciplines, with appro9 priate expertise in the application to be reviewed,

10 and who are not individuals who are officers or em11 ployees of the Administration for Children and Fam12 ilies. The panels shall meet as often as is necessary

13 to facilitate the expeditious review of applications for

14 grants and contracts under this title, but may not

15 meet less than once a year. The Secretary shall en16 sure that the peer review panel utilizes scientifically

17 valid review criteria and scoring guidelines for re18 view committees.

19 ‘‘(b) REVIEW OF APPLICATIONS FOR ASSISTANCE.—

20 Each peer review panel established under subsection

21 (a)(1) that reviews any application for a grant shall—

22 ‘‘(1) determine and evaluate the merit of each

23 project described in such application;

24 ‘‘(2) rank such application with respect to all

25 other applications it reviews in the same priority
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1 area for the fiscal year involved, according to the rel2 ative merit of all of the projects that are described

3 in such application and for which financial assist4 ance is requested; and

5 ‘‘(3) make recommendations to the Secretary

6 concerning whether the application for the project

7 shall be approved.

8 The Secretary shall award grants under this title on the

9 basis of competitive review.

10 ‘‘(c) NOTICE OF APPROVAL.—

11 ‘‘(1) IN GENERAL.—The Secretary shall provide

12 grants under this title from among the projects

13 which the peer review panels established under sub14 section (a)(1) have determined to have merit.

15 ‘‘(2) REQUIREMENT OF EXPLANATION.—In the

16 instance in which the Secretary approves an applica17 tion for a program under this title without having

18 approved all applications ranked above such applica19 tion, the Secretary shall append to the approved ap20 plication a detailed explanation of the reasons relied

21 on for approving the application and for failing to

22 approve each pending application that is superior in

23 merit.
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1 ‘‘SEC. 208. NATIONAL RANDOM SAMPLE STUDY OF CHILD

2 WELFARE.

3 ‘‘(a) IN GENERAL.—The Secretary shall conduct a

4 national study based on random samples of children who

5 are at risk of child abuse or neglect, or are determined

6 by States to have been abused or neglected, and such other

7 research as may be necessary.

8 ‘‘(b) REQUIREMENTS.—The study required by sub9 section (a) shall—

10 ‘‘(1) have a longitudinal component; and

11 ‘‘(2) yield data reliable at the State level for as

12 many States as the Secretary determines is feasible.

13 ‘‘(c) PREFERRED CONTENTS.—In conducting the

14 study required by subsection (a), the Secretary should—

15 ‘‘(1) collect data on the child protection pro16 grams of different small States (or different groups

17 of such States) in different years to yield an occa18 sional picture of the child protection programs of

19 such States;

20 ‘‘(2) carefully consider selecting the sample

21 from cases of confirmed abuse or neglect; and

22 ‘‘(3) follow each case for several years while ob23 taining information on, among other things—

24 ‘‘(A) the type of abuse or neglect involved;

25 ‘‘(B) the frequency of contact with State

26 or local agencies;
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1 ‘‘(C) whether the child involved has been

2 separated from the family, and, if so, under

3 what circumstances;

4 ‘‘(D) the number, type, and characteristics

5 of out-of-home placements of the child; and

6 ‘‘(E) the average duration of each place7 ment.

8 ‘‘(d) REPORTS.—

9 ‘‘(1) IN GENERAL.—From time to time, the

10 Secretary shall prepare reports summarizing the re11 sults of the study required by subsection (a).

12 ‘‘(2) AVAILABILITY.—The Secretary shall make

13 available to the public any report prepared under

14 paragraph (1), in writing or in the form of an elec15 tronic data tape.

16 ‘‘(3) AUTHORITY TO CHARGE FEE.—The Sec17 retary may charge and collect a fee for the furnish18 ing of reports under paragraph (2).

19 ‘‘(4) FUNDING.—The Secretary shall carry out

20 this section using amounts made available under sec21 tion 425 of the Social Security Act.
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1 ‘‘TITLE III—GENERAL

2 PROVISIONS

3 ‘‘SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘(a) TITLE I.—There are authorized to be appro5 priated to carry out title I, $230,000,000 for fiscal year

6 1996, and such sums as may be necessary for each of the

7 fiscal years 1997 through 2002.

8 ‘‘(b) TITLE II.—

9 ‘‘(1) IN GENERAL.—Of the amount appro10 priated under subsection (a) for a fiscal year, the

11 Secretary shall make available 12 percent of such

12 amount to carry out title II (except for sections 203

13 and 208).

14 ‘‘(2) GRANTS FOR DEMONSTRATION

15 PROJECTS.—Of the amount made available under

16 paragraph (1) for a fiscal year, the Secretary shall

17 make available not less than 40 percent of such

18 amount to carry out section 203.

19 ‘‘(c) INDIAN TRIBES.—Of the amount appropriated

20 under subsection (a) for a fiscal year, the Secretary shall

21 make available 1 percent of such amount to provide grants

22 and contracts to Indian tribes and Tribal Organizations.

23 ‘‘(d) AVAILABILITY OF APPROPRIATIONS.—Amounts

24 appropriated under subsection (a) shall remain available

25 until expended.
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1 ‘‘SEC. 302. GRANTS TO STATES FOR PROGRAMS RELATING

2 TO THE INVESTIGATION AND PROSECUTION

3 OF CHILD ABUSE AND NEGLECT CASES.

4 ‘‘(a) GRANTS TO STATES.—The Secretary, in con5 sultation with the Attorney General, is authorized to make

6 grants to the States for the purpose of assisting States

7 in developing, establishing, and operating programs de8 signed to improve—

9 ‘‘(1) the handling of child abuse and neglect

10 cases, particularly cases of child sexual abuse and

11 exploitation, in a manner which limits additional

12 trauma to the child victim;

13 ‘‘(2) the handling of cases of suspected child

14 abuse or neglect related fatalities; and

15 ‘‘(3) the investigation and prosecution of cases

16 of child abuse and neglect, particularly child sexual

17 abuse and exploitation.

18 ‘‘(b) ELIGIBILITY REQUIREMENTS.—In order for a

19 State to qualify for assistance under this section, such

20 State shall—

21 ‘‘(1) be an eligible State under section 102;

22 ‘‘(2) establish a task force as provided in sub23 section (c);

24 ‘‘(3) fulfill the requirements of subsection (d);

25 ‘‘(4) submit annually an application to the Sec26 retary at such time and containing such information
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1 and assurances as the Secretary considers necessary,

2 including an assurance that the State will—

3 ‘‘(A) make such reports to the Secretary as

4 may reasonably be required; and

5 ‘‘(B) maintain and provide access to

6 records relating to activities under subsection

7 (a); and

8 ‘‘(5) submit annually to the Secretary a report

9 on the manner in which assistance received under

10 this program was expended throughout the State,

11 with particular attention focused on the areas de12 scribed in paragraphs (1) through (3) of subsection

13 (a).

14 ‘‘(c) STATE TASK FORCES.—

15 ‘‘(1) GENERAL RULE.—Except as provided in

16 paragraph (2), a State requesting assistance under

17 this section shall establish or designate, and main18 tain, a State multidisciplinary task force on chil19 dren’s justice (hereafter in this section referred to as

20 ‘State task force’) composed of professionals with

21 knowledge and experience relating to the criminal

22 justice system and issues of child physical abuse,

23 child neglect, child sexual abuse and exploitation,

24 and child maltreatment related fatalities. The State

25 task force shall include—
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1 ‘‘(A) individuals representing the law en2 forcement community;

3 ‘‘(B) judges and attorneys involved in both

4 civil and criminal court proceedings related to

5 child abuse and neglect (including individuals

6 involved with the defense as well as the prosecu7 tion of such cases);

8 ‘‘(C) child advocates, including both attor9 neys for children and, where such programs are

10 in operation, court appointed special advocates;

11 ‘‘(D) health and mental health profes12 sionals;

13 ‘‘(E) individuals representing child protec14 tive service agencies;

15 ‘‘(F) individuals experienced in working

16 with children with disabilities;

17 ‘‘(G) parents; and

18 ‘‘(H) representatives of parents’ groups.

19 ‘‘(2) EXISTING TASK FORCE.—As determined

20 by the Secretary, a State commission or task force

21 established after January 1, 1983, with substantially

22 comparable membership and functions, may be con23 sidered the State task force for purposes of this sub24 section.
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1 ‘‘(d) STATE TASK FORCE STUDY.—Before a State

2 receives assistance under this section, and at 3–year inter3 vals thereafter, the State task force shall comprehen4 sively—

5 ‘‘(1) review and evaluate State investigative, ad6 ministrative and both civil and criminal judicial han7 dling of cases of child abuse and neglect, particularly

8 child sexual abuse and exploitation, as well as cases

9 involving suspected child maltreatment related fatali10 ties and cases involving a potential combination of

11 jurisdictions, such as interstate, Federal-State, and

12 State-Tribal; and

13 ‘‘(2) make policy and training recommendations

14 in each of the categories described in subsection (e).

15 The task force may make such other comments and rec16 ommendations as are considered relevant and useful.

17 ‘‘(e) ADOPTION OF STATE TASK FORCE REC18 OMMENDATIONS.—

19 ‘‘(1) GENERAL RULE.—Subject to the provi20 sions of paragraph (2), before a State receives as21 sistance under this section, a State shall adopt rec22 ommendations of the State task force in each of the

23 following categories—

24 ‘‘(A) investigative, administrative, and ju25 dicial handling of cases of child abuse and ne-
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1 glect, particularly child sexual abuse and exploi2 tation, as well as cases involving suspected child

3 maltreatment related fatalities and cases involv4 ing a potential combination of jurisdictions,

5 such as interstate, Federal-State, and State6 Tribal, in a manner which reduces the addi7 tional trauma to the child victim and the vic8 tim’s family and which also ensures procedural

9 fairness to the accused;

10 ‘‘(B) experimental, model and demonstra11 tion programs for testing innovative approaches

12 and techniques which may improve the prompt

13 and successful resolution of civil and criminal

14 court proceedings or enhance the effectiveness

15 of judicial and administrative action in child

16 abuse and neglect cases, particularly child sex17 ual abuse and exploitation cases, including the

18 enhancement of performance of court-appointed

19 attorneys and guardians ad litem for children;

20 and

21 ‘‘(C) reform of State laws, ordinances, reg22 ulations, protocols and procedures to provide

23 comprehensive protection for children from

24 abuse, particularly child sexual abuse and ex-
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1 ploitation, while ensuring fairness to all affected

2 persons.

3 ‘‘(2) EXEMPTION.—As determined by the Sec4 retary, a State shall be considered to be in fulfill5 ment of the requirements of this subsection if—

6 ‘‘(A) the State adopts an alternative to the

7 recommendations of the State task force, which

8 carries out the purpose of this section, in each

9 of the categories under paragraph (1) for which

10 the State task force’s recommendations are not

11 adopted; or

12 ‘‘(B) the State is making substantial

13 progress toward adopting recommendations of

14 the State task force or a comparable alternative

15 to such recommendations.

16 ‘‘(f) FUNDS AVAILABLE.—For grants under this sec17 tion, the Secretary shall use the amount authorized by sec18 tion 1404A of the Victims of Crime Act of 1984.

19 ‘‘SEC. 303. TRANSITIONAL PROVISION.

20 ‘‘A State or other entity that has a grant, contract,

21 or cooperative agreement in effect, on the date of enact22 ment of this Act, under the Family Resource and Support

23 Program, the Community-Based Family Resource Pro24 gram, the Family Support Center Program, the Emer25 gency Child Abuse Prevention Grant Program, the Aban-
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1 doned Infants Assistance Act of 1988, or the Temporary

2 Child Care for Children with Disabilities and Crisis Nurs3 eries Programs shall continue to receive funds under such

4 grant, contract, or cooperative agreement, subject to the

5 original terms under which such funds were provided,

6 through the end of the applicable grant, contract, or

7 agreement cycle.

8 ‘‘SEC. 304. RULE OF CONSTRUCTION.

9 ‘‘(a) IN GENERAL.—Nothing in this Act, or in part

10 B or E of title IV of the Social Security Act, shall be con11 strued—

12 ‘‘(1) as establishing a Federal requirement that

13 a parent or legal guardian provide a child any medi14 cal service or treatment against the religious beliefs

15 of the parent or legal guardian; and

16 ‘‘(2) to require that a State find, or to prohibit

17 a State from finding, abuse or neglect in cases in

18 which a parent or legal guardian relies solely or par19 tially upon spiritual means rather than medical

20 treatment, in accordance with the religious beliefs of

21 the parent or legal guardian.

22 ‘‘(b) STATE REQUIREMENT.—Notwithstanding sub23 section (a), a State shall have in place authority under

24 State law to permit the child protective service system of

25 the State to pursue any legal remedies, including the au-
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1 thority to initiate legal proceedings in a court of competent

2 jurisdiction, to provide medical care or treatment for a

3 child when such care or treatment is necessary to prevent

4 or remedy serious harm to the child, or to prevent the

5 withholding of medically indicated treatment from children

6 with life threatening conditions. Except with respect to the

7 withholding of medically indicated treatments from dis8 abled infants with life threatening conditions, case by case

9 determinations concerning the exercise of the authority of

10 this subsection shall be within the sole discretion of the

11 State.’’.

12 SEC. 4752. REAUTHORIZATIONS.

13 (a) MISSING CHILDREN’S ASSISTANCE ACT.—Section

14 408 of the Missing Children’s Assistance Act (42 U.S.C.

15 5777) is amended—

16 (1) by striking ‘‘To’’ and inserting ‘‘(a) IN

17 GENERAL.—To’’

18 (2) by striking ‘‘and 1996’’ and inserting

19 ‘‘1996, and 1997’’; and

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

21 new subsection:

22 ‘‘(b) EVALUATION.—The Administrator shall use not

23 more than 5 percent of the amount appropriated for a fis24 cal year under subsection (a) to conduct an evaluation of
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1 the effectiveness of the programs and activities established

2 and operated under this title.’’.

3 (b) VICTIMS OF CHILD ABUSE ACT OF 1990.—Sec4 tion 214B of the Victims of Child Abuse Act of 1990 (42

5 U.S.C. 13004) is amended—

6 (1) in subsection (a)(2), by striking ‘‘and 1996’’

7 and inserting ‘‘1996, and 1997’’; and

8 (2) in subsection (b)(2), by striking ‘‘and

9 1996’’ and inserting ‘‘1996, and 1997’’.

10 SEC. 4753. REPEALS.

11 (a) IN GENERAL.—The following provisions of law

12 are repealed:

13 (1) Title II of the Child Abuse Prevention and

14 Treatment and Adoption Reform Act of 1978 (42

15 U.S.C. 5111 et seq.).

16 (2) The Abandoned Infants Assistance Act of

17 1988 (42 U.S.C. 670 note).

18 (3) The Temporary Child Care for Children

19 with Disabilities and Crisis Nurseries Act of 1986

20 (42 U.S.C. 5117 et seq.).

21 (4) Subtitle F of title VII of the Stewart B.

22 McKinney Homeless Assistance Act (42 U.S.C.

23 11481 et seq.).

24 (b) CONFORMING AMENDMENTS.—
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1 (1) RECOMMENDED LEGISLATION.—After con2 sultation with the appropriate committees of the

3 Congress and the Director of the Office of Manage4 ment and Budget, the Secretary of Health and

5 Human Services shall prepare and submit to the

6 Congress a legislative proposal in the form of an im7 plementing bill containing technical and conforming

8 amendments to reflect the repeals made by this sec9 tion.

10 (2) SUBMISSION TO CONGRESS.—Not later than

11 6 months after the date of enactment of this sub12 chapter, the Secretary of Health and Human Serv13 ices shall submit the implementing bill referred to

14 under paragraph (1).

15 Subtitle G—Reductions in Federal

16 Government Positions

17 SEC. 4801. REDUCTIONS.

18 (a) DEFINITIONS.—As used in this section:

19 (1) APPROPRIATE EFFECTIVE DATE.—The term

20 ‘‘appropriate effective date’’, used with respect to a

21 Department referred to in this section, means the

22 date on which all provisions of this Act (other than

23 subtitle B of this title) that the Department is re24 quired to carry out, and amendments and repeals

25 made by this Act to provisions of Federal law that
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1 the Department is required to carry out, are effec2 tive.

3 (2) COVERED ACTIVITY.—The term ‘‘covered

4 activity’’, used with respect to a Department re5 ferred to in this section, means an activity that the

6 Department is required to carry out under—

7 (A) a provision of this Act (other than sub8 title B of this title); or

9 (B) a provision of Federal law that is

10 amended or repealed by this Act (other than

11 subtitle B of this title).

12 (b) REPORTS.—

13 (1) CONTENTS.—Not later than January 1,

14 1997, each Secretary referred to in paragraph (2)

15 shall prepare and submit to the relevant committees

16 described in paragraph (3) a report containing—

17 (A) the determinations described in sub18 section (c);

19 (B) appropriate documentation in support

20 of such determinations; and

21 (C) a description of the methodology used

22 in making such determinations.

23 (2) SECRETARY.—The Secretaries referred to in

24 this paragraph are—

25 (A) the Secretary of Agriculture;
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1 (B) the Secretary of Education;

2 (C) the Secretary of Labor;

3 (D) the Secretary of Housing and Urban

4 Development; and

5 (E) the Secretary of Health and Human

6 Services.

7 (3) RELEVANT COMMITTEES.—The relevant

8 Committees described in this paragraph are the fol9 lowing:

10 (A) With respect to each Secretary de11 scribed in paragraph (2), the Committee on

12 Government Reform and Oversight of the

13 House of Representatives and the Committee

14 on Governmental Affairs of the Senate.

15 (B) With respect to the Secretary of Agri16 culture, the Committee on Agriculture and the

17 Committee on Economic and Educational Op18 portunities of the House of Representatives and

19 the Committee on Agriculture, Nutrition, and

20 Forestry of the Senate.

21 (C) With respect to the Secretary of Edu22 cation, the Committee on Economic and Edu23 cational Opportunities of the House of Rep24 resentatives and the Committee on Labor and

25 Human Resources of the Senate.
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1 (D) With respect to the Secretary of

2 Labor, the Committee on Economic and Edu3 cational Opportunities of the House of Rep4 resentatives and the Committee on Labor and

5 Human Resources of the Senate.

6 (E) With respect to the Secretary of Hous7 ing and Urban Development, the Committee on

8 Banking and Financial Services of the House of

9 Representatives and the Committee on Bank10 ing, Housing, and Urban Affairs of the Senate.

11 (F) With respect to the Secretary of

12 Health and Human Services, the Committee on

13 Economic and Educational Opportunities of the

14 House of Representatives, the Committee on

15 Labor and Human Resources of the Senate, the

16 Committee on Ways and Means of the House of

17 Representatives, and the Committee on Finance

18 of the Senate.

19 (4) REPORT ON CHANGES.—Not later than De20 cember 31, 1996, and each December 31 thereafter,

21 each Secretary referred to in paragraph (2) shall

22 prepare and submit to the relevant Committees de23 scribed in paragraph (3), a report concerning any

24 changes with respect to the determinations made
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1 under subsection (c) for the year in which the report

2 is being submitted.

3 (c) DETERMINATIONS.—Not later than December 31,

4 1996, each Secretary referred to in subsection (b)(2) shall

5 determine—

6 (1) the number of full-time equivalent positions

7 required by the Department headed by such Sec8 retary to carry out the covered activities of the De9 partment, as of the day before the date of enactment

10 of this Act;

11 (2) the number of such positions required by

12 the Department to carry out the activities, as of the

13 appropriate effective date for the Department; and

14 (3) the difference obtained by subtracting the

15 number referred to in paragraph (2) from the num16 ber referred to in paragraph (1).

17 (d) ACTIONS.—Each Secretary referred to in sub18 section (b)(2) shall take such actions as may be necessary,

19 including reduction in force actions, consistent with sec20 tions 3502 and 3595 of title 5, United States Code, to

21 reduce the number of positions of personnel of the Depart22 ment—

23 (1) not later than 30 days after the appropriate

24 effective date for the Department involved, by at
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1 least 50 percent of the difference referred to in sub2 section (c)(3); and

3 (2) not later than 13 months after such appro4 priate effective date, by at least the remainder of

5 such difference (after the application of paragraph

6 (1)).

7 (e) CONSISTENCY.—

8 (1) EDUCATION.—The Secretary of Education

9 shall carry out this section in a manner that enables

10 the Secretary to meet the requirements of this sec11 tion.

12 (2) LABOR.—The Secretary of Labor shall

13 carry out this section in a manner that enables the

14 Secretary to meet the requirements of this section.

15 (3) HEALTH AND HUMAN SERVICES.—The Sec16 retary of Health and Human Services shall carry out

17 this section in a manner that enables the Secretary

18 to meet the requirements of this section and sections

19 4802 and 4803.

20 (f) CALCULATION.—In determining, under subsection

21 (c), the number of full-time equivalent positions required

22 by a Department to carry out a covered activity, a Sec23 retary referred to in subsection (b)(2) shall include the

24 number of such positions occupied by personnel carrying

25 out program functions or other functions (including budg-
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1 etary, legislative, administrative, planning, evaluation, and

2 legal functions) related to the activity.

3 (g) GENERAL ACCOUNTING OFFICE REPORT.—Not

4 later than July 1, 1997, the Comptroller General of the

5 United States shall prepare and submit to the committees

6 described in subsection (b)(3), a report concerning the de7 terminations made by each Secretary under subsection (c).

8 Such report shall contain an analysis of the determina9 tions made by each Secretary under subsection (c) and

10 a determination as to whether further reductions in full11 time equivalent positions are appropriate.

12 SEC. 4802. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

14 Human Services shall reduce the Federal workforce within

15 the Department of Health and Human Services by an

16 amount equal to the sum of—

17 (1) 75 percent of the full-time equivalent posi18 tions at such Department that relate to any direct

19 spending program, or any program funded through

20 discretionary spending, that has been converted into

21 a block grant program under this Act and the

22 amendments made by this Act; and

23 (2) an amount equal to 75 percent of that por24 tion of the total full-time equivalent departmental

25 management positions at such Department that
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1 bears the same relationship to the amount appro2 priated for the programs referred to in paragraph

3 (1) as such amount relates to the total amount ap4 propriated for use by such Department.

5 (b) REDUCTIONS IN THE DEPARTMENT OF HEALTH

6 AND HUMAN SERVICES.—Notwithstanding any other pro7 vision of this Act, the Secretary of Health and Human

8 Services shall take such actions as may be necessary, in9 cluding reductions in force actions, consistent with sec10 tions 3502 and 3595 of title 5, United States Code, to

11 reduce the full-time equivalent positions within the De12 partment of Health and Human Services—

13 (1) by 245 full-time equivalent positions related

14 to the program converted into a block grant under

15 the amendment made by section 103; and

16 (2) by 60 full-time equivalent managerial posi17 tions in the Department.

18 SEC. 4803. REDUCING PERSONNEL IN WASHINGTON, D.C.

19 AREA.

20 In making reductions in full-time equivalent posi21 tions, the Secretary of Health and Human Services is en22 couraged to reduce personnel in the Washington, D.C.,

23 area office (agency headquarters) before reducing field

24 personnel.
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1 Subtitle H—Miscellaneous

2 SEC. 4901. APPROPRIATION BY STATE LEGISLATURES.

3 (a) IN GENERAL.—Any funds received by a State

4 under the provisions of law specified in subsection (b) shall

5 be subject to appropriation by the State legislature, con6 sistent with the terms and conditions required under such

7 provisions of law.

8 (b) PROVISIONS OF LAW.—The provisions of law

9 specified in this subsection are the following:

10 (1) Part A of title IV of the Social Security Act

11 (relating to block grants for temporary assistance

12 for needy families).

13 (2) Section 25 of the Food Stamp Act of 1977

14 (relating to the optional State food assistance block

15 grant).

16 (3) The Child Care and Development Block

17 Grant Act of 1990 (relating to block grants for child

18 care).

19 SEC. 4902. SANCTIONING FOR TESTING POSITIVE FOR CON20 TROLLED SUBSTANCES.

21 Notwithstanding any other provision of law, States

22 shall not be prohibited by the Federal Government from

23 testing welfare recipients for use of controlled substances

24 nor from sanctioning welfare recipients who test positive

25 for use of controlled substances.
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1 SEC. 4903. REDUCTION IN BLOCK GRANTS TO STATES FOR

2 SOCIAL SERVICES.

3 Section 2003(c) of the Social Security Act (42 U.S.C.

4 1397b(c)) is amended—

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

6 (4); and

7 (2) by striking paragraph (5) and inserting the

8 following:

9 ‘‘(5) $2,800,000,000 for each of the fiscal years

10 1990 through 1995;

11 ‘‘(6) $2,520,000,000 for each of the fiscal years

12 1997 through 2002; and

13 ‘‘(7) $2,380,000,000 for the fiscal year 2003

14 and each succeeding fiscal year.’’.

Passed the House of Representatives July 18, 1996.

Attest: ROBIN H. CARLE,

Clerk.

By Linda Nave,

Deputy Clerk.