I

104TH CONGRESS

2D SESSION H. R. 3832

To restore the American family, enhance support and work opportunities

for families with children, reduce out-of-wedlock pregnancies, reduce welfare dependence, and control welfare spending.

IN THE HOUSE OF REPRESENTATIVES

JULY 17, 1996

Mr. TANNER (for himself and Mr. CASTLE) introduced the following bill;

which was referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Commerce, Economic and Educational Opportunities, Government Reform and Oversight, Banking and

Financial Services, the Judiciary, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of

such provisions as fall within the jurisdiction of the committee concerned

A BILL

To restore the American family, enhance support and work

opportunities for families with children, reduce out-ofwedlock pregnancies, reduce welfare dependence, and

control welfare spending.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Bipartisan Welfare Re5 form Act of 1996’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 101. Findings.

Sec. 102. Reference to Social Security Act.

Sec. 103. Block grants to States.

Sec. 104. Services provided by charitable, religious, or private organizations.

Sec. 105. Census data on grandparents as primary caregivers for their grandchildren.

Sec. 106. Report on data processing.

Sec. 107. Study on alternative outcomes measures.

Sec. 108. Conforming amendments to the Social Security Act.

Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related

provisions.

Sec. 110. Conforming amendments to other laws.

Sec. 111. Development of prototype of counterfeit-resistant social security card

required.

Sec. 112. Disclosure of receipt of Federal funds.

Sec. 113. Modifications to the job opportunities for certain low-income individuals program.

Sec. 114. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 115. Application of current AFDC standards under medicaid program.

Sec. 116. Effective date; transition rule.

TITLE II—SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

Subtitle A—Eligibility Restrictions

Sec. 201. 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. 202. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 203. Verification of eligibility for certain SSI disability benefits.

Sec. 204. Treatment of prisoners.

Sec. 205. Effective date of application for benefits.

Sec. 206. Installment payment of large past-due supplemental security income

benefits.

Sec. 207. Recovery of supplemental security income overpayments from social

security benefits.

Subtitle B—Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.

Sec. 212. Eligibility redeterminations and continuing disability reviews.

Sec. 213. Additional accountability requirements.
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Sec. 214. Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by private insurance.

Sec. 215. Modification respecting parental income deemed to disabled children.

Sec. 216. Graduated benefits for additional children.

Subtitle C—State Supplementation Programs

Sec. 221. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Subtitle D—Studies Regarding Supplemental Security Income Program

Sec. 231. Annual report on the supplemental security income program.

Sec. 232. Study of disability determination process.

Sec. 233. Study by General Accounting Office.

Subtitle E—National Commission on the Future of Disability

Sec. 241. Establishment.

Sec. 242. Duties of the Commission.

Sec. 243. Membership.

Sec. 244. Staff and support services.

Sec. 245. Powers of Commission.

Sec. 246. Reports.

Sec. 247. Termination.

Sec. 248. Authorization of appropriations.

TITLE III—CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 301. State obligation to provide child support enforcement services.

Sec. 302. Distribution of child support collections.

Sec. 303. Privacy safeguards.

Sec. 304. Rights to notification and hearings.

Subtitle B—Locate and Case Tracking

Sec. 311. State case registry.

Sec. 312. Collection and disbursement of support payments.

Sec. 313. State directory of new hires.

Sec. 314. Amendments concerning income withholding.

Sec. 315. Locator information from interstate networks.

Sec. 316. Expansion of the Federal parent locator service.

Sec. 317. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 321. Adoption of uniform State laws.

Sec. 322. Improvements to full faith and credit for child support orders.

Sec. 323. Administrative enforcement in interstate cases.

Sec. 324. Use of forms in interstate enforcement.

Sec. 325. State laws providing expedited procedures.

Subtitle D—Paternity Establishment
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Sec. 331. State laws concerning paternity establishment.

Sec. 332. Outreach for voluntary paternity establishment.

Sec. 333. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.

Sec. 342. Federal and State reviews and audits.

Sec. 343. Required reporting procedures.

Sec. 344. Automated data processing requirements.

Sec. 345. Technical assistance.

Sec. 346. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 351. Simplified process for review and adjustment of child support orders.

Sec. 352. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 353. Nonliability for financial institutions providing financial records to

State child support enforcement agencies in child support

cases.

Subtitle G—Enforcement of Support Orders

Sec. 361. Internal Revenue Service collection of arrearages.

Sec. 362. Authority to collect support from Federal employees.

Sec. 363. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 364. Voiding of fraudulent transfers.

Sec. 365. Work requirement for persons owing past-due child support.

Sec. 366. Definition of support order.

Sec. 367. Reporting arrearages to credit bureaus.

Sec. 368. Liens.

Sec. 369. State law authorizing suspension of licenses.

Sec. 370. Denial of passports for nonpayment of child support.

Sec. 371. International child support enforcement.

Sec. 372. Financial institution data matches.

Sec. 373. Enforcement of orders against paternal or maternal grandparents in

cases of minor parents.

Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of

a child.

Subtitle H—Medical Support

Sec. 376. Correction to ERISA definition of medical child support order.

Sec. 377. Enforcement of orders for health care coverage.

Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential

Parents

Sec. 381. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 391. Effective dates.
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TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR

ALIENS

Sec. 400. Statements of national policy concerning welfare and immigration.

Subtitle A—Eligibility for Federal Benefits

Sec. 401. Aliens who are not qualified aliens ineligible for Federal public benefits.

Sec. 402. Limited eligibility of certain qualified aliens for certain Federal programs.

Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-tested public benefit.

Sec. 404. Notification and information reporting.

Subtitle B—Eligibility for State and Local Public Benefits Programs

Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for

State and local public benefits.

Sec. 412. State authority to limit eligibility of qualified aliens for State public

benefits.

Subtitle C—Attribution of Income and Affidavits of Support

Sec. 421. Federal attribution of sponsor’s income and resources to alien for

purposes of medicaid eligibility.

Sec. 422. Authority for States to provide for attribution of sponsor’s income

and resources to the alien with respect to State programs.

Sec. 423. Requirements for sponsor’s affidavit of support.

Sec. 424. Cosignature of alien student loans.

Subtitle D—General Provisions

Sec. 431. Definitions.

Sec. 432. Verification of eligibility for Federal public benefits.

Sec. 433. Statutory construction.

Sec. 434. Communication between State and local government agencies and the

Immigration and Naturalization Service.

Sec. 435. Qualifying quarters.

Sec. 436. Title inapplicable to programs specified by Attorney General.

Sec. 437. Title inapplicable to programs of nonprofit charitable organizations.

Subtitle E—Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

TITLE V—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 501. Reductions.

Sec. 502. Reductions in Federal bureaucracy.

Sec. 503. Reducing personnel in Washington, D.C. area.

TITLE VI—REFORM OF PUBLIC HOUSING

Sec. 601. Failure to comply with other welfare and public assistance programs.

Sec. 602. Fraud under means-tested welfare and public assistance programs.

Sec. 603. Annual adjustment factors for operating costs only; restraint on rent

increases.

Sec. 604. Effective date.
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TITLE VII—CHILD CARE

Sec. 701. Short title and references.

Sec. 702. Goals.

Sec. 703. Authorization of appropriations.

Sec. 704. Lead agency.

Sec. 705. Application and plan.

Sec. 706. Limitation on State allotments.

Sec. 707. Activities to improve the quality of child care.

Sec. 708. Repeal of early childhood development and before- and after-school

care requirement.

Sec. 709. Administration and enforcement.

Sec. 710. Payments.

Sec. 711. Annual report and audits.

Sec. 712. Report by the Secretary.

Sec. 713. Allotments.

Sec. 714. Definitions.

Sec. 715. Repeals.

TITLE VIII—CHILD NUTRITION PROGRAMS

Subtitle A—National School Lunch Act

Sec. 801. Value of food assistance.

Sec. 802. Commodity assistance.

Sec. 803. State disbursement to schools.

Sec. 804. Nutritional and other program requirements.

Sec. 805. Free and reduced price policy statement.

Sec. 806. Special assistance.

Sec. 807. Miscellaneous provisions and definitions.

Sec. 808. Summer food service program for children.

Sec. 809. Commodity distribution.

Sec. 810. Child care food program.

Sec. 811. Pilot projects.

Sec. 812. Reduction of paperwork.

Sec. 813. Information on income eligibility.

Sec. 814. Nutrition guidance for child nutrition programs.

Sec. 815. Information clearinghouse.

Subtitle B—Child Nutrition Act of 1966

Sec. 821. Special milk program.

Sec. 822. Reimbursement rates for free and reduced price breakfasts.

Sec. 823. Free and reduced price policy statement.

Sec. 824. School breakfast program authorization.

Sec. 825. State administrative expenses.

Sec. 826. Regulations.

Sec. 827. Prohibitions.

Sec. 828. Miscellaneous provisions and definitions.

Sec. 829. Accounts and records.

Sec. 830. Special supplemental nutrition program for women, infants, and children.

Sec. 831. Cash grants for nutrition education.

Sec. 832. Nutrition education and training.

Sec. 833. Breastfeeding promotion program.

TITLE IX—FOOD STAMP AND RELATED PROGRAMS
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Sec. 901. Definition of certification period.

Sec. 902. Expanded definition of ‘‘coupon’’.

Sec. 903. Treatment of children living at home.

Sec. 904. Adjustment of thrifty food plan.

Sec. 905. Definition of homeless individual.

Sec. 906. Income Exclusions.

Sec. 907. Deductions from income.

Sec. 908. Vehicle allowance.

Sec. 909. Vendor payments for transitional housing counted as income.

Sec. 910. Increased penalties for violating food stamp program requirements.

Sec. 911. Disqualification of convicted individuals.

Sec. 912. Disqualification.

Sec. 913. Caretaker exemption.

Sec. 914. Employment and training.

Sec. 915. Comparable treatment for disqualification.

Sec. 916. Disqualification for receipt of multiple food stamp benefits.

Sec. 917. Disqualification of fleeing felons.

Sec. 918. Cooperation with child support agencies.

Sec. 919. Disqualification relating to child support arrears.

Sec. 920. Work requirement for able-bodied recipients.

Sec. 921. Encourage electronic benefit transfer systems.

Sec. 922. Value of minimum allotment.

Sec. 923. Benefits on recertification.

Sec. 924. Optional combined allotment for expedited households.

Sec. 925. Failure to comply with other means-tested public assistance programs.

Sec. 926. Allotments for households residing in centers.

Sec. 927. Authority to establish authorization periods.

Sec. 928. Specific period for prohibiting participation of stores based on lack

of business integrity.

Sec. 929. Information for verifying eligibility for authorization.

Sec. 930. Waiting period for stores that initially fail to meet authorization criteria.

Sec. 931. Operation of food stamp offices.

Sec. 932. Mandatory claims collection methods.

Sec. 933. Exchange of law enforcement information.

Sec. 934. Expedited coupon service.

Sec. 935. Withdrawing fair hearing requests.

Sec. 936. Income, eligibility, and immigration status verification systems.

Sec. 937. Bases for suspensions and disqualifications.

Sec. 938. Authority to suspend stores violating program requirements pending

administrative and judicial review.

Sec. 939. Disqualification of retailers who are disqualified from the WIC program.

Sec. 940. Permanent debarment of retailers who intentionally submit falsified

applications.

Sec. 941. Expanded civil and criminal forfeiture for violations of the food

stamp act.

Sec. 942. Expanded authority for sharing information provided by retailers.

Sec. 943. Limitation of Federal match.

Sec. 944. Collection of overissuances.

Sec. 945. Standards for administration.

Sec. 946. Response to waivers.

Sec. 947. Authorization of appropriations.

Sec. 948. Authorize States to operate simplified food stamp programs.
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Sec. 949. Emergency food assistance program.

Sec. 950. Food bank demonstration project.

Sec. 951. Report on entitlement commodity processing.

TITLE X—MISCELLANEOUS

Subtitle A—General Provisions

Sec. 1001. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds.

Sec. 1002. Elimination of housing assistance with respect to fugitive felons and

probation and parole violators.

Sec. 1003. Sense of the Senate regarding enterprise zones.

Sec. 1004. Sense of the Senate regarding the inability of the non-custodial parent to pay child support.

Sec. 1005. Food stamp eligibility.

Sec. 1006. Establishing national goals to prevent teenage pregnancies.

Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws.

Sec. 1008. Sanctioning for testing positive for controlled substances.

Sec. 1009. Abstinence education.

Sec. 1010. Provisions to encourage electronic benefit transfer systems.

Sec. 1011. Reduction in block grants to States for social services.

Sec. 1012. Efficient use of Federal transportation funds.

Sec. 1013. Enhanced Federal match for child welfare automation expenses.

Subtitle B—Earned Income Tax Credit

Sec. 1021. Earned income credit and other tax benefits denied to individuals

failing to provide taxpayer identification numbers.

Sec. 1022. Rules relating to denial of earned income credit on basis of disqualified income.

Sec. 1023. Modification of adjusted gross income definition for earned income

credit.

Sec. 1024. Notice of availability required to be provided to applicants and

former recipients of AFDC, food stamps, and medicaid.

Sec. 1025. Notice of availability of earned income tax credit and dependent care

tax credit to be included on W–4 form.

Sec. 1026. Advance payment of earned income tax credit through State demonstration programs.

1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE

3 FOR NEEDY FAMILIES

4 SEC. 101. FINDINGS.

5 The Congress makes the following findings:

6 (1) Marriage is the foundation of a successful

7 society.
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1 (2) Marriage is an essential institution of a suc2 cessful society which promotes the interests of chil3 dren.

4 (3) Promotion of responsible fatherhood and

5 motherhood is integral to successful child rearing

6 and the well-being of children.

7 (4) In 1992, only 54 percent of single-parent

8 families with children had a child support order es9 tablished and, of that 54 percent, only about one10 half received the full amount due. Of the cases en11 forced through the public child support enforcement

12 system, only 18 percent of the caseload has a collec13 tion.

14 (5) The number of individuals receiving aid to

15 families with dependent children (in this section re16 ferred to as ‘‘AFDC’’) has more than tripled since

17 1965. More than two-thirds of these recipients are

18 children. Eighty-nine percent of children receiving

19 AFDC benefits now live in homes in which no father

20 is present.

21 (A)(i) The average monthly number of

22 children receiving AFDC benefits—

23 (I) was 3,300,000 in 1965;

24 (II) was 6,200,000 in 1970;

25 (III) was 7,400,000 in 1980; and
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1 (IV) was 9,300,000 in 1992.

2 (ii) While the number of children receiving

3 AFDC benefits increased nearly threefold be4 tween 1965 and 1992, the total number of chil5 dren in the United States aged 0 to 18 has de6 clined by 5.5 percent.

7 (B) The Department of Health and

8 Human Services has estimated that 12,000,000

9 children will receive AFDC benefits within 10

10 years.

11 (C) The increase in the number of children

12 receiving public assistance is closely related to

13 the increase in births to unmarried women. Be14 tween 1970 and 1991, the percentage of live

15 births to unmarried women increased nearly

16 threefold, from 10.7 percent to 29.5 percent.

17 (6) The increase of out-of-wedlock pregnancies

18 and births is well documented as follows:

19 (A) It is estimated that the rate of non20 marital teen pregnancy rose 23 percent from 54

21 pregnancies per 1,000 unmarried teenagers in

22 1976 to 66.7 pregnancies in 1991. The overall

23 rate of nonmarital pregnancy rose 14 percent

24 from 90.8 pregnancies per 1,000 unmarried

25 women in 1980 to 103 in both 1991 and 1992.
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1 In contrast, the overall pregnancy rate for mar2 ried couples decreased 7.3 percent between

3 1980 and 1991, from 126.9 pregnancies per

4 1,000 married women in 1980 to 117.6 preg5 nancies in 1991.

6 (B) The total of all out-of-wedlock births

7 between 1970 and 1991 has risen from 10.7

8 percent to 29.5 percent and if the current trend

9 continues, 50 percent of all births by the year

10 2015 will be out-of-wedlock.

11 (7) The negative consequences of an out-of-wed12 lock birth on the mother, the child, the family, and

13 society are well documented as follows:

14 (A) Young women 17 and under who give

15 birth outside of marriage are more likely to go

16 on public assistance and to spend more years

17 on welfare once enrolled. These combined ef18 fects of ‘‘younger and longer’’ increase total

19 AFDC costs per household by 25 percent to 30

20 percent for 17-year olds.

21 (B) Children born out-of-wedlock have a

22 substantially higher risk of being born at a very

23 low or moderately low birth weight.
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1 (C) Children born out-of-wedlock are more

2 likely to experience low verbal cognitive attain3 ment, as well as more child abuse, and neglect.

4 (D) Children born out-of-wedlock were

5 more likely to have lower cognitive scores, lower

6 educational aspirations, and a greater likelihood

7 of becoming teenage parents themselves.

8 (E) Being born out-of-wedlock significantly

9 reduces the chances of the child growing up to

10 have an intact marriage.

11 (F) Children born out-of-wedlock are 3

12 times more likely to be on welfare when they

13 grow up.

14 (8) Currently 35 percent of children in single15 parent homes were born out-of-wedlock, nearly the

16 same percentage as that of children in single-parent

17 homes whose parents are divorced (37 percent).

18 While many parents find themselves, through divorce

19 or tragic circumstances beyond their control, facing

20 the difficult task of raising children alone, neverthe21 less, the negative consequences of raising children in

22 single-parent homes are well documented as follows:

23 (A) Only 9 percent of married-couple fami24 lies with children under 18 years of age have

25 income below the national poverty level. In con-
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1 trast, 46 percent of female-headed households

2 with children under 18 years of age are below

3 the national poverty level.

4 (B) Among single-parent families, nearly

1 5 ⁄2 of the mothers who never married received

AFDC while only 1 6 ⁄5 of divorced mothers re7 ceived AFDC.

8 (C) Children born into families receiving

9 welfare assistance are 3 times more likely to be

10 on welfare when they reach adulthood than chil11 dren not born into families receiving welfare.

12 (D) Mothers under 20 years of age are at

13 the greatest risk of bearing low-birth-weight ba14 bies.

15 (E) The younger the single parent mother,

16 the less likely she is to finish high school.

17 (F) Young women who have children be18 fore finishing high school are more likely to re19 ceive welfare assistance for a longer period of

20 time.

21 (G) Between 1985 and 1990, the public

22 cost of births to teenage mothers under the aid

23 to families with dependent children program,

24 the food stamp program, and the medicaid pro25 gram has been estimated at $120,000,000,000.
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1 (H) The absence of a father in the life of

2 a child has a negative effect on school perform3 ance and peer adjustment.

4 (I) Children of teenage single parents have

5 lower cognitive scores, lower educational aspira6 tions, and a greater likelihood of becoming teen7 age parents themselves.

8 (J) Children of single-parent homes are 3

9 times more likely to fail and repeat a year in

10 grade school than are children from intact 2-

11 parent families.

12 (K) Children from single-parent homes are

13 almost 4 times more likely to be expelled or sus14 pended from school.

15 (L) Neighborhoods with larger percentages

16 of youth aged 12 through 20 and areas with

17 higher percentages of single-parent households

18 have higher rates of violent crime.

19 (M) Of those youth held for criminal of20 fenses within the State juvenile justice system,

21 only 29.8 percent lived primarily in a home with

22 both parents. In contrast to these incarcerated

23 youth, 73.9 percent of the 62,800,000 children

24 in the Nation’s resident population were living

25 with both parents.
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1 (9) Therefore, in light of this demonstration of

2 the crisis in our Nation, it is the sense of the Con3 gress that prevention of out-of-wedlock pregnancy

4 and reduction in out-of-wedlock birth are very im5 portant Government interests and the policy con6 tained in part A of title IV of the Social Security

7 Act (as amended by section 103 of this Act) is in8 tended to address the crisis.

9 SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

10 Except as otherwise specifically provided, wherever in

11 this title an amendment is expressed in terms of an

12 amendment to or repeal of a section or other provision,

13 the reference shall be considered to be made to that sec14 tion or other provision of the Social Security Act.

15 SEC. 103. BLOCK GRANTS TO STATES.

16 Part A of title IV (42 U.S.C. 601 et seq.) is amended

17 to read as follows:

18 ‘‘PART A—BLOCK GRANTS TO STATES FOR

19 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

20 ‘‘SEC. 401. PURPOSE.

21 ‘‘(a) IN GENERAL.—The purpose of this part is to

22 increase the flexibility of States in operating a program

23 designed to—
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1 ‘‘(1) provide assistance to needy families so that

2 children may be cared for in their own homes or in

3 the homes of relatives;

4 ‘‘(2) end the dependence of needy parents on

5 government benefits by promoting job preparation,

6 work, and marriage;

7 ‘‘(3) prevent and reduce the incidence of out-of8 wedlock pregnancies and establish annual numerical

9 goals for preventing and reducing the incidence of

10 these pregnancies; and

11 ‘‘(4) encourage the formation and maintenance

12 of two-parent families.

13 ‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part

14 shall not be interpreted to entitle any individual or family

15 to assistance under any State program funded under this

16 part.

17 ‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.

18 ‘‘(a) IN GENERAL.—As used in this part, the term

19 ‘eligible State’ means, with respect to a fiscal year, a State

20 that, during the 2-year period immediately preceding the

21 fiscal year, has submitted to the Secretary a plan that

22 meets the requirements of subsection (b) and has been ap23 proved by the Secretary with respect to the fiscal year.
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1 ‘‘(b) CONTENTS OF STATE PLANS.—A plan meets

2 the requirements of this subsection if the plan includes

3 the following:

4 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO5 GRAM.—

6 ‘‘(A) GENERAL PROVISIONS.—A written

7 document that outlines how the State will do

8 the following:

9 ‘‘(i) Conduct a program, designed to

10 serve all political subdivisions in the State,

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) Determine, on an objective and

17 equitable basis, the needs of and the

18 amount of assistance to be provided to

19 needy families, and treat families of similar

20 needs and circumstances similarly, subject

21 to subparagraph (B).

22 ‘‘(iii) Require a parent or caretaker

23 receiving assistance under the program to

24 engage in work (as defined by the State)

25 once the State determines the parent or
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1 caretaker is ready to engage in work, or

2 once the parent or caretaker has received

3 assistance under the program for 24

4 months (whether or not consecutive),

5 whichever is earlier.

6 ‘‘(iv) Ensure that parents and care7 takers receiving assistance under the pro8 gram engage in work activities in accord9 ance with section 407.

10 ‘‘(v) Grant an opportunity for a fair

11 hearing before the State agency to any in12 dividual to whom assistance under the pro13 gram is denied, reduced, or terminated, or

14 whose request for such assistance is not

15 acted on with reasonable promptness.

16 ‘‘(vi) Take such reasonable steps as

17 the State deems necessary to restrict the

18 use and disclosure of information about in19 dividuals and families receiving assistance

20 under the program attributable to funds

21 provided by the Federal Government.

22 ‘‘(vii) Establish goals and take action

23 to prevent and reduce the incidence of out24 of-wedlock pregnancies, with special em25 phasis on teenage pregnancies, and estab-
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1 lish numerical goals for reducing the ille2 gitimacy ratio of the State (as defined in

3 section 403(a)(2)(B)) for calendar years

4 1996 through 2005.

5 ‘‘(B) SPECIAL PROVISIONS.—

6 ‘‘(i) The plan shall indicate whether

7 the State intends to treat families moving

8 into the State from another State dif9 ferently than other families under the pro10 gram, and if so, how the State intends to

11 treat such families under the program.

12 ‘‘(ii) The plan shall indicate whether

13 the State intends to provide assistance

14 under the program to individuals who are

15 not citizens of the United States, and if so,

16 shall include an overview of such assist17 ance.

18 ‘‘(iii) The plan shall contain an esti19 mate of the number of individuals (if any)

20 who will become ineligible for medical as21 sistance under the State plan approved

22 under title XIX as a result of changes in

23 the rules governing eligibility for the State

24 program funded under this part, and shall

25 indicate the extent (if any) to which the
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1 State will provide medical assistance to

2 such individuals, and the scope of such

3 medical assistance.

4 ‘‘(2) CERTIFICATION THAT THE STATE WILL

5 OPERATE A CHILD SUPPORT ENFORCEMENT PRO6 GRAM.—The plan shall include a certification by the

7 chief executive officer of the State that, during the

8 fiscal year, the State will operate a child support en9 forcement program under the State plan approved

10 under part D.

11 ‘‘(3) CERTIFICATION THAT THE STATE WILL

12 NOT OPERATE A SEPARATE FINANCIAL SUPPORT

13 PROGRAM WITH STATE FUNDS TARGETED AT CER14 TAIN CHILD SUPPORT RECIPIENTS.—The plan shall

15 include a certification by the chief executive officer

16 of the State that, during the fiscal year, the State

17 will not operate a separate financial support pro18 gram with State funds targeted at child support re19 cipients who would be eligible for assistance under

20 the program funded under this part were it not for

21 payments from the State-funded financial assistance

22 program.

23 ‘‘(4) CERTIFICATION THAT THE STATE WILL

24 OPERATE A CHILD PROTECTION PROGRAM.—The

25 plan shall include a certification by the chief execu-
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1 tive officer of the State that, during the fiscal year,

2 the State will operate a child protection program

3 under the State plan approved under part B.

4 ‘‘(5) CERTIFICATION OF THE ADMINISTRATION

5 OF THE PROGRAM.—The plan shall include a certifi6 cation by the chief executive officer of the State

7 specifying which State agency or agencies will ad8 minister and supervise the program referred to in

9 paragraph (1) for the fiscal year, which shall include

10 assurances that local governments and private sector

11 organizations—

12 ‘‘(A) have been working jointly with the

13 State in all phases of the plan and design of

14 welfare services in the State so that services are

15 provided in a manner appropriate to local popu16 lations;

17 ‘‘(B) have had at least 60 days to submit

18 comments on the final plan and the design of

19 such services; and

20 ‘‘(C) will not have unfunded mandates im21 posed on them under such plan.

22 Such certification shall also include assurance that

23 when local elected officials are currently responsible

24 for the administration of welfare services, the local

25 elected officials will be able to plan, design, and ad-
22

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1 minister for their jurisdictions the programs estab2 lished pursuant to this Act.

3 ‘‘(6) CERTIFICATION THAT THE STATE WILL

4 PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS5 SISTANCE.—The plan shall include a certification by

6 the chief executive officer of the State that, during

7 the fiscal year, the State will provide each Indian

8 who is a member of an Indian tribe in the State that

9 does not have a tribal family assistance plan ap10 proved under section 412 with equitable access to

11 assistance under the State program funded under

12 this part attributable to funds provided by the Fed13 eral Government.

14 ‘‘(7) CERTIFICATION OF NONDISPLACEMENT

15 AND NONREPLACEMENT OF EMPLOYEES.—The plan

16 shall include a certification that the implementation

17 of the plan will not result in—

18 ‘‘(A) the displacement of a currently em19 ployed worker or position by an individual to

20 whom assistance is provided under the State

21 program funded under this part;

22 ‘‘(B) the replacement of an employee who

23 has been terminated with an individual to whom

24 assistance is provided under the State program

25 funded under this part; or
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1 ‘‘(C) the replacement of an employee who

2 is on layoff from the same position filled by an

3 individual to whom assistance is provided under

4 the State program funded under this part or

5 any equivalent position.

6 ‘‘(c) APPROVAL OF STATE PLANS.—The Secretary

7 shall approve any State plan that meets the requirements

8 of subsection (b) if the Secretary determines that operat9 ing a State program pursuant to the plan will contribute

10 to achieving the purposes of this part.

11 ‘‘(d) PUBLIC AVAILABILITY OF STATE PLAN SUM12 MARY.—The State shall make available to the public a

13 summary of any plan submitted by the State under this

14 section.

15 ‘‘SEC. 403. GRANTS TO STATES.

16 ‘‘(a) GRANTS.—

17 ‘‘(1) FAMILY ASSISTANCE GRANT.—

18 ‘‘(A) IN GENERAL.—Each eligible State

19 shall be entitled to receive from the Secretary,

20 for each of fiscal years 1996, 1997, 1998,

21 1999, 2000, and 2001 a grant in an amount

22 equal to the State family assistance grant.

23 ‘‘(B) STATE FAMILY ASSISTANCE GRANT

24 DEFINED.—As used in this part, the term
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1 ‘State family assistance grant’ means the great2 est of—

‘‘(i) 1 3 ⁄3 of the total amount required

4 to be paid to the State under former sec5 tion 403 (as in effect on September 30,

6 1995) for fiscal years 1992, 1993, and

7 1994 (other than with respect to amounts

8 expended by the State for child care under

9 subsection (g) or (i) of former section 402

10 (as so in effect));

11 ‘‘(ii)(I) the total amount required to

12 be paid to the State under former section

13 403 for fiscal year 1994 (other than with

14 respect to amounts expended by the State

15 for child care under subsection (g) or (i) of

16 former section 402 (as so in effect)); plus

17 ‘‘(II) an amount equal to 85 percent

18 of the amount (if any) by which the total

19 amount required to be paid to the State

20 under former section 403(a)(5) for emer21 gency assistance for fiscal year 1995 ex22 ceeds the total amount required to be paid

23 to the State under former section

24 403(a)(5) for fiscal year 1994, if, during

25 fiscal year 1994, the Secretary approved
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1 under former section 402 an amendment

2 to the former State plan with respect to

3 the provision of emergency assistance in

4 the context of family preservation; or

5 ‘‘(iii) the amount required to be paid

6 to the State under former section 403 (as

7 in effect on September 30, 1995) for fiscal

8 year 1995 (other than with respect to

9 amounts expended by the State under the

10 State plan approved under part F (as so in

11 effect) or for child care under subsection

12 (g) or (i) of former section 402 (as so in

13 effect)), plus the total amount required to

14 be paid to the State for fiscal year 1995

15 under former section 403(l) (as so in ef16 fect).

17 ‘‘(C) TOTAL AMOUNT REQUIRED TO BE

18 PAID TO THE STATE UNDER FORMER SECTION

19 403 DEFINED.—As used in this part, the term

20 ‘total amount required to be paid to the State

21 under former section 403’ means, with respect

22 to a fiscal year—

23 ‘‘(i) in the case of a State to which

24 section 1108 does not apply, the sum of—
26

•HR 3832 IH

1 ‘‘(I) the Federal share of mainte2 nance assistance expenditures for the

3 fiscal year, before reduction pursuant

4 to subparagraph (B) or (C) of section

5 403(b)(2) (as in effect on September

6 30, 1995), as reported by the State on

7 ACF Form 231;

8 ‘‘(II) the Federal share of admin9 istrative expenditures (including ad10 ministrative expenditures for the de11 velopment of management information

12 systems) for the fiscal year, as re13 ported by the State on ACF Form

14 231;

15 ‘‘(III) the Federal share of emer16 gency assistance expenditures for the

17 fiscal year, as reported by the State

18 on ACF Form 231;

19 ‘‘(IV) the Federal share of ex20 penditures for the fiscal year with re21 spect to child care pursuant to sub22 sections (g) and (i) of former section

23 402 (as in effect on September 30,

24 1995), as reported by the State on

25 ACF Form 231; and
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•HR 3832 IH

1 ‘‘(V) the aggregate amount re2 quired to be paid to the State for the

3 fiscal year with respect to the State

4 program operated under part F (as in

5 effect on September 30, 1995), as de6 termined by the Secretary, including

7 additional obligations or reductions in

8 obligations made after the close of the

9 fiscal year; and

10 ‘‘(ii) in the case of a State to which

11 section 1108 applies, the lesser of—

12 ‘‘(I) the sum described in clause

13 (i); or

14 ‘‘(II) the total amount certified

15 by the Secretary under former section

16 403 (as in effect during the fiscal

17 year) with respect to the territory.

18 ‘‘(D) INFORMATION TO BE USED IN DE19 TERMINING AMOUNTS.—

20 ‘‘(i) FOR FISCAL YEARS 1992 AND

21 1993.—

22 ‘‘(I) In determining the amount

23 described in subclauses (I) through

24 (IV) of subparagraph (C)(i) for any

25 State for each of fiscal years 1992
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•HR 3832 IH

1 and 1993, the Secretary shall use in2 formation available as of April 28,

3 1995.

4 ‘‘(II) In determining the amount

5 described in subparagraph (C)(i)(V)

6 for any State for each of fiscal years

7 1992 and 1993, the Secretary shall

8 use information available as of Janu9 ary 6, 1995.

10 ‘‘(ii) FOR FISCAL YEAR 1994.—In de11 termining the amounts described in sub12 paragraph (C)(i) for any State for fiscal

13 year 1994, the Secretary shall use informa14 tion available as of April 28, 1995.

15 ‘‘(iii) FOR FISCAL YEAR 1995.—

16 ‘‘(I) In determining the amount

17 described in subparagraph (B)(ii)(II)

18 for any State for fiscal year 1995, the

19 Secretary shall use the information

20 which was reported by the States and

21 estimates made by the States with re22 spect to emergency assistance expend23 itures and was available as of August

24 11, 1995.
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1 ‘‘(II) In determining the amounts

2 described in subclauses (I) through

3 (IV) of subparagraph (C)(i) for any

4 State for fiscal year 1995, the Sec5 retary shall use information available

6 as of October 2, 1995.

7 ‘‘(III) In determining the amount

8 described in subparagraph (C)(i)(V)

9 for any State for fiscal year 1995, the

10 Secretary shall use information avail11 able as of October 5, 1995.

12 ‘‘(E) APPROPRIATION.—Out of any money

13 in the Treasury of the United States not other14 wise appropriated, there are appropriated for

15 fiscal years 1996, 1997, 1998, 1999, 2000, and

16 2001 such sums as are necessary for grants

17 under this paragraph.

18 ‘‘(2) GRANT TO REWARD STATES THAT REDUCE

19 OUT-OF-WEDLOCK BIRTHS.—

20 ‘‘(A) IN GENERAL.—In addition to any

21 grant under paragraph (1), each eligible State

22 shall be entitled to receive from the Secretary

23 for fiscal year 1998 or any succeeding fiscal

24 year, a grant in an amount equal to the State

25 family assistance grant multiplied by—
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1 ‘‘(i) 5 percent if—

2 ‘‘(I) the illegitimacy ratio of the

3 State for the fiscal year is at least 1

4 percentage point lower than the ille5 gitimacy ratio of the State for fiscal

6 year 1995; and

7 ‘‘(II) the rate of induced preg8 nancy terminations in the State for

9 the fiscal year is less than the rate of

10 induced pregnancy terminations in the

11 State for fiscal year 1995; or

12 ‘‘(ii) 10 percent if—

13 ‘‘(I) the illegitimacy ratio of the

14 State for the fiscal year is at least 2

15 percentage points lower than the ille16 gitimacy ratio of the State for fiscal

17 year 1995; and

18 ‘‘(II) the rate of induced preg19 nancy terminations in the State for

20 the fiscal year is less than the rate of

21 induced pregnancy terminations in the

22 State for fiscal year 1995.

23 ‘‘(B) ILLEGITIMACY RATIO.—As used in

24 this paragraph, the term ‘illegitimacy ratio’
31

•HR 3832 IH

1 means, with respect to a State and a fiscal

2 year—

3 ‘‘(i) the number of out-of-wedlock

4 births that occurred in the State during

5 the most recent fiscal year for which such

6 information is available; divided by

7 ‘‘(ii) the number of births that oc8 curred in the State during the most recent

9 fiscal year for which such information is

10 available.

11 ‘‘(C) DISREGARD OF CHANGES IN DATA

12 DUE TO CHANGED REPORTING METHODS.—For

13 purposes of subparagraph (A), the Secretary

14 shall disregard—

15 ‘‘(i) any difference between the illegit16 imacy ratio of a State for a fiscal year and

17 the illegitimacy ratio of the State for fiscal

18 year 1995 which is attributable to a

19 change in State methods of reporting data

20 used to calculate the illegitimacy ratio; and

21 ‘‘(ii) any difference between the rate

22 of induced pregnancy terminations in a

23 State for a fiscal year and such rate for

24 fiscal year 1995 which is attributable to a
32

•HR 3832 IH

1 change in State methods of reporting data

2 used to calculate such rate.

3 ‘‘(D) APPROPRIATION.—Out of any money

4 in the Treasury of the United States not other5 wise appropriated, there are appropriated for

6 fiscal year 1998 and for each succeeding fiscal

7 year such sums as are necessary for grants

8 under this paragraph.

9 ‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION

10 INCREASES IN CERTAIN STATES.—

11 ‘‘(A) IN GENERAL.—Each qualifying State

12 shall, subject to subparagraph (F), be entitled

13 to receive from the Secretary—

14 ‘‘(i) for fiscal year 1997 a grant in an

15 amount equal to 2.5 percent of the total

16 amount required to be paid to the State

17 under former section 403 (as in effect dur18 ing fiscal year 1994) for fiscal year 1994;

19 and

20 ‘‘(ii) for each of fiscal years 1998,

21 1999, and 2000, a grant in an amount

22 equal to the sum of—

23 ‘‘(I) the amount (if any) required

24 to be paid to the State under this
33

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1 paragraph for the immediately preced2 ing fiscal year; and

3 ‘‘(II) 2.5 percent of the sum of—

4 ‘‘(aa) the total amount re5 quired to be paid to the State

6 under former section 403 (as in

7 effect during fiscal year 1994)

8 for fiscal year 1994; and

9 ‘‘(bb) the amount (if any)

10 required to be paid to the State

11 under this paragraph for the fis12 cal year preceding the fiscal year

13 for which the grant is to be

14 made.

15 ‘‘(B) PRESERVATION OF GRANT WITHOUT

16 INCREASES FOR STATES FAILING TO REMAIN

17 QUALIFYING STATES.—Each State that is not a

18 qualifying State for a fiscal year specified in

19 subparagraph (A)(ii) but was a qualifying State

20 for a prior fiscal year shall, subject to subpara21 graph (F), be entitled to receive from the Sec22 retary for the specified fiscal year, a grant in

23 an amount equal to the amount required to be

24 paid to the State under this paragraph for the
34

•HR 3832 IH

1 most recent fiscal year for which the State was

2 a qualifying State.

3 ‘‘(C) QUALIFYING STATE.—

4 ‘‘(i) IN GENERAL.—For purposes of

5 this paragraph, a State is a qualifying

6 State for a fiscal year if—

7 ‘‘(I) the level of welfare spending

8 per poor person by the State for the

9 immediately preceding fiscal year is

10 less than the national average level of

11 State welfare spending per poor per12 son for such preceding fiscal year; and

13 ‘‘(II) the population growth rate

14 of the State (as determined by the

15 Bureau of the Census for the most re16 cent fiscal year for which information

17 is available) exceeds the average popu18 lation growth rate for all States (as so

19 determined) for such most recent fis20 cal year.

21 ‘‘(ii) STATE MUST QUALIFY IN FISCAL

22 YEAR 1997.—Notwithstanding clause (i), a

23 State shall not be a qualifying State for

24 any fiscal year after 1997 by reason of

25 clause (i) if the State is not a qualifying
35

•HR 3832 IH

1 State for fiscal year 1997 by reason of

2 clause (i).

3 ‘‘(iii) CERTAIN STATES DEEMED

4 QUALIFYING STATES.—For purposes of

5 this paragraph, a State is deemed to be a

6 qualifying State for fiscal years 1997,

7 1998, 1999, and 2000 if—

8 ‘‘(I) the level of welfare spending

9 per poor person by the State for fiscal

10 year 1996 is less than 35 percent of

11 the national average level of State

12 welfare spending per poor person for

13 fiscal year 1996; or

14 ‘‘(II) the population of the State

15 increased by more than 10 percent

16 from April 1, 1990, to July 1, 1994,

17 as determined by the Bureau of the

18 Census.

19 ‘‘(D) DEFINITIONS.—As used in this para20 graph:

21 ‘‘(i) LEVEL OF WELFARE SPENDING

22 PER POOR PERSON.—The term ‘level of

23 State welfare spending per poor person’

24 means, with respect to a State and a fiscal

25 year—
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•HR 3832 IH

1 ‘‘(I) the sum of—

2 ‘‘(aa) the total amount re3 quired to be paid to the State

4 under former section 403 (as in

5 effect during fiscal year 1994)

6 for fiscal year 1994; and

7 ‘‘(bb) the amount (if any)

8 paid to the State under this

9 paragraph for the immediately

10 preceding fiscal year; divided by

11 ‘‘(II) the number of individuals,

12 according to the 1990 decennial cen13 sus, who were residents of the State

14 and whose income was below the pov15 erty line.

16 ‘‘(ii) NATIONAL AVERAGE LEVEL OF

17 STATE WELFARE SPENDING PER POOR

18 PERSON.—The term ‘national average level

19 of State welfare spending per poor person’

20 means, with respect to a fiscal year, an

21 amount equal to—

22 ‘‘(I) the total amount required to

23 be paid to the States under former

24 section 403 (as in effect during fiscal
37

•HR 3832 IH

1 year 1994) for fiscal year 1994; di2 vided by

3 ‘‘(II) the number of individuals,

4 according to the 1990 decennial cen5 sus, who were residents of any State

6 and whose income was below the pov7 erty line.

8 ‘‘(iii) STATE.—The term ‘State’

9 means each of the 50 States of the United

10 States and the District of Columbia.

11 ‘‘(E) APPROPRIATION.—Out of any money

12 in the Treasury of the United States not other13 wise appropriated, there are appropriated for

14 fiscal years 1997, 1998, 1999, and 2000 such

15 sums as are necessary for grants under this

16 paragraph, in a total amount not to exceed

17 $800,000,000.

18 ‘‘(F) GRANTS REDUCED PRO RATA IF IN19 SUFFICIENT APPROPRIATIONS.—If the amount

20 appropriated pursuant to this paragraph for a

21 fiscal year is less than the total amount of pay22 ments otherwise required to be made under this

23 paragraph for the fiscal year, then the amount

24 otherwise payable to any State for the fiscal

25 year under this paragraph shall be reduced by
38

•HR 3832 IH

1 a percentage equal to the amount so appro2 priated divided by such total amount.

3 ‘‘(G) BUDGET SCORING.—Notwithstanding

4 section 257(b)(2) of the Balanced Budget and

5 Emergency Deficit Control Act of 1985, the

6 baseline shall assume that no grant shall be

7 made under this paragraph after fiscal year

8 2000.

9 ‘‘(4) SUPPLEMENTAL GRANT FOR OPERATION

10 OF WORK PROGRAM.—

11 ‘‘(A) APPLICATION REQUIREMENTS.—An

12 eligible State may submit to the Secretary an

13 application for additional funds to meet the re14 quirements of section 407 with respect to a fis15 cal year if the Secretary determines that—

16 ‘‘(i) the total expenditures of the

17 State to meet such requirements for the

18 fiscal year exceed the total expenditures of

19 the State during fiscal year 1994 to carry

20 out part F (as in effect on September 30,

21 1994);

22 ‘‘(ii) the work programs of the State

23 under section 407 are coordinated with the

24 job training programs established by title

25 II of the Job Training Partnership Act, or
39

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1 (if such title is repealed by the Consoli2 dated and Reformed Education, Employ3 ment, and Rehabilitation Systems Act) the

4 Consolidated and Reformed Education,

5 Employment, and Rehabilitation Systems

6 Act; and

7 ‘‘(iii) the State needs additional funds

8 to meet such requirements or certifies that

9 it intends to exceed such requirements.

10 ‘‘(B) GRANTS.—The Secretary may make

11 a grant to any eligible State which submits an

12 application in accordance with subparagraph

13 (A) of this paragraph for a fiscal year in an

14 amount equal to the Federal medical assistance

15 percentage of the amount (if any) by which the

16 total expenditures of the State to meet or ex17 ceed the requirements of section 407 for the fis18 cal year exceeds the total expenditures of the

19 State during fiscal year 1994 to carry out part

20 F (as in effect on September 30, 1994).

21 ‘‘(C) REGULATIONS.—The Secretary shall

22 issue regulations providing for the equitable dis23 tribution of funds under this paragraph.

24 ‘‘(D) APPROPRIATIONS.—
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•HR 3832 IH

1 ‘‘(i) IN GENERAL.—Out of any money

2 in the Treasury of the United States not

3 otherwise appropriated, there are appro4 priated to the Secretary for grants under

5 this paragraph—

6 ‘‘(I) $150,000,000 for fiscal year

7 1999;

8 ‘‘(II) $850,000,000 for fiscal

9 year 2000;

10 ‘‘(III) $900,000,000 for fiscal

11 year 2001; and

12 ‘‘(IV) $1,100,000,000 for fiscal

13 year 2002 and for each succeeding fis14 cal year.

15 ‘‘(ii) AVAILABILITY.—Amounts appro16 priated pursuant to clause (i) shall remain

17 available until expended.

18 ‘‘(b) CONTINGENCY FUND.—

19 ‘‘(1) ESTABLISHMENT.—There is hereby estab20 lished in the Treasury of the United States a fund

21 which shall be known as the ‘Contingency Fund for

22 State Welfare Programs’ (in this section referred to

23 as the ‘Fund’).

24 ‘‘(2) DEPOSITS INTO FUND.—
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1 ‘‘(A) Out of any money in the Treasury of

2 the United States not otherwise appropriated,

3 there are appropriated for fiscal years 1997,

4 1998, 1999, 2000, 2001 and 2002 such sums

5 as are necessary for payment to the Fund in a

6 total amount not to exceed $2,000,000,000, ex7 cept as provided in subparagraphs (B) and (C).

8 ‘‘(B) If—

9 ‘‘(i) the average rate of total unem10 ployment in the United States for the most

11 recent 3 months for which data for all

12 States are available is not less than 7 per13 cent; and

14 ‘‘(ii) there are insufficient amounts in

15 the Fund to pay all State claims under

16 paragraph (4) for a quarter in that fiscal

17 year;

18 then there are appropriated for that fiscal year,

19 in addition to amounts appropriated under

20 paragraph (2)(A), such sums as equal the dif21 ference between the amount needed to pay all

22 State claims for that quarter and the amount

23 remaining in the Fund.

24 ‘‘(C) If—
42

•HR 3832 IH

1 ‘‘(i)(I)(aa) the average rate of total

2 unemployment in a State (seasonally ad3 justed) for the period consisting of the

4 most recent 3 months for which data for

5 all States are published is not less than 9

6 percent; or

7 ‘‘(bb) the average rate of total unem8 ployment in such State (seasonally ad9 justed) for the 3-month period is not less

10 than 120 percent of such average rate for

11 either of the prior 2 years; or

12 ‘‘(II) the average number of persons

13 in the State receiving assistance under the

14 food stamp program, as defined in section

15 3(h) of the Food Stamp Act of 1977, for

16 the most recent 3-month period for which

17 data are available is not less than 120 per18 cent of such average monthly number for

19 fiscal year 1994 or for fiscal year 1995;

20 and

21 ‘‘(ii) there are insufficient amounts in

22 the Fund to pay all State claims under

23 paragraph (4) for a quarter in that fiscal

24 year; then
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•HR 3832 IH

1 there are appropriated for payment to the Fund

2 for that fiscal year, in addition to amounts ap3 propriated pursuant to paragraph (2)(A), for

4 payments to States described in this subpara5 graph, the amount by which payments to such

6 States under paragraph (4) would otherwise be

7 reduced under paragraph (8).

8 ‘‘(3) PAYMENTS TO STATES.—The method of

9 computing and paying amounts to States from the

10 Fund under this subsection shall be as follows:

11 ‘‘(A) The Secretary shall, before each

12 quarter, estimate the amount to be paid to each

13 State for the quarter from the Fund, such esti14 mate to be based on—

15 ‘‘(i) a report filed by the State con16 taining an estimate by the State of qualify17 ing State expenditures for the quarter; and

18 ‘‘(ii) such other information as the

19 Secretary may find relevant and reliable.

20 ‘‘(B) The Secretary shall then certify to

21 the Secretary of the Treasury the amount so es22 timated by the Secretary.

23 ‘‘(C) The Secretary of the Treasury shall

24 thereupon pay to the State, at the time or times

25 fixed by the Secretary, the amount so certified.
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•HR 3832 IH

1 ‘‘(4) GRANTS.—From amounts appropriated

2 pursuant to paragraph (2), the Secretary of the

3 Treasury shall pay to each eligible State for a fiscal

4 year an amount equal to the lesser of—

5 ‘‘(A) the Federal medical assistance per6 centage for the State for the fiscal year (as de7 fined in section 1905(b), as in effect on Sep8 tember 30, 1995) of the amount, if any, by

9 which the expenditures of the State in the fiscal

10 year under the State program funded under

11 this part and expenditures on cash assistance

12 under other State programs with respect to eli13 gible families (as defined in section

14 409(a)(5)(B)(i)(III)) exceed historic State ex15 penditures (as defined in section

16 409(a)(5)(B)(iii)); or

17 ‘‘(B) the number of percentage points (if

18 any) by which 40 percent of the State family

19 assistance grant for the fiscal year exceeds any

20 payment to the State for the fiscal year under

21 section 403(a)(3).

22 ‘‘(5) ANNUAL RECONCILIATION.—At the end of

23 each fiscal year, each State shall remit to the Sec24 retary an amount equal to the amount (if any) by

25 which the total amount paid to the State under
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•HR 3832 IH

1 paragraph (4) during the fiscal year exceeds the

2 lesser of—

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 of the State in the fiscal

8 year under the State program funded under

9 this part and expenditures on cash assistance

10 under other State programs with respect to eli11 gible families (as defined in section

12 409(a)(5)(B)(i)(III)) exceed historic State ex13 penditures (as defined in section

14 409(a)(5)(B)(iii)); or

15 ‘‘(B) the amount (if any) by which 40 per16 cent of the State family assistance grant for the

17 fiscal year exceeds any payment to the State for

18 the fiscal year under section 403(a)(3).

19 ‘‘(6) ELIGIBLE STATE.—For purposes of this

20 subsection, a State is an eligible State for a fiscal

21 year, if—

22 ‘‘(A)(i) the average rate of total unemploy23 ment in such State (seasonally adjusted) for the

24 period consisting of the most recent 3 months
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•HR 3832 IH

1 for which data for all States are published is

2 not less than 6.5 percent; and

3 ‘‘(ii) the average rate of total unemploy4 ment in such State (seasonally adjusted) for the

5 3-month period is not less than 110 percent of

6 such average rate for either 1994 or 1995; or

7 ‘‘(B)(i) the average number of persons in

8 the State receiving assistance under the food

9 stamp program, as defined in section 3(h) of

10 the Food Stamp Act of 1977, for the most re11 cent 3-month period for which data are avail12 able is not less than 110 percent of the product

13 of—

14 ‘‘(I) such average monthly number for

15 either fiscal year 1994 or fiscal year 1995;

16 and

17 ‘‘(II) the number of percentage points

18 (if any) by which 100 percent exceeds the

19 percentage by which the Bipartisan Wel20 fare Reform Act of 1996, had it been in ef21 fect, would have reduced such average

22 monthly number in such State in such fis23 cal year, as most recently estimated by the

24 Secretary of Agriculture before the date of

25 the enactment of such Act; and
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•HR 3832 IH

1 ‘‘(ii) the State is not participating in the

2 program established under section 23(b) of the

3 Food Stamp Act of 1977.

4 ‘‘(7) STATE.—As used in this subsection, the

5 term ‘State’ means each of the 50 States of the

6 United States and the District of Columbia.

7 ‘‘(8) PAYMENT PRIORITY.—Claims by States

8 for payment from the Fund shall be filed quarterly.

9 If the total amount of claims for any quarter exceeds

10 the amount available for payment from the fund,

11 claims shall be paid on a pro rata basis in a manner

12 to be determined by the Secretary, except in the case

13 of a State described in paragraph (2)(C).

14 ‘‘(9) ANNUAL REPORTS.—The Secretary of the

15 Treasury shall annually report to Congress on the

16 status of the Fund.

17 ‘‘SEC. 404. USE OF GRANTS.

18 ‘‘(a) GENERAL RULES.—Subject to this part, a State

19 to which a grant is made under section 403 may use the

20 grant—

21 ‘‘(1) in any manner that is reasonably cal22 culated to accomplish the purpose of this part, in23 cluding to provide low income households with as24 sistance in meeting home heating and cooling costs;

25 or
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•HR 3832 IH

1 ‘‘(2) in any manner that the State was author2 ized to use amounts received under part A or F, as

3 such parts were in effect on September 30, 1995.

4 ‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINIS5 TRATIVE PURPOSES.—

6 ‘‘(1) LIMITATION.—A State to which a grant is

7 made under section 403 shall not expend more than

8 15 percent of the grant for administrative purposes.

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

10 apply to the use of a grant for information tech11 nology and computerization needed for tracking or

12 monitoring required by or under this part.

13 ‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMI14 GRANTS UNDER RULES OF FORMER STATE.—A State op15 erating a program funded under this part may apply to

16 a family the rules (including benefit amounts) of the pro17 gram funded under this part of another State if the family

18 has moved to the State from the other State and has re19 sided in the State for less than 12 months.

20 ‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR

21 OTHER PURPOSES.—

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

23 than 20 percent of the amount of the grant made to

24 the State under section 403 for a fiscal year to carry
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1 out a State program pursuant to the Child Care and

2 Development Block Grant Act of 1990.

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

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

5 a State program pursuant to the Child Care and De6 velopment Block Grant Act of 1990 shall not be sub7 ject to the requirements of this part, but shall be

8 subject to the requirements that apply to Federal

9 funds provided directly under such Act to carry out

10 the program.

11 ‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS

12 FOR ASSISTANCE.—A State may reserve amounts paid to

13 the State under this part for any fiscal year for the pur14 pose of providing, without fiscal year limitation, assistance

15 under the State program funded under this part.

16 ‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACE17 MENT PROGRAM.—A State to which a grant is made under

18 section 403 may use the grant to make payments (or pro19 vide job placement vouchers) to State-approved public and

20 private job placement agencies that provide employment

21 placement services to individuals who receive assistance

22 under the State program funded under this part.

23 ‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT

24 TRANSFER SYSTEM.—A State to which a grant is made

25 under section 403 is encouraged to implement an elec-
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•HR 3832 IH

1 tronic benefit transfer system for providing assistance

2 under the State program funded under this part, and may

3 use the grant for such purpose.

4 ‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.

5 ‘‘(a) QUARTERLY.—The Secretary shall pay each

6 grant payable to a State under section 403 in quarterly

7 installments.

8 ‘‘(b) NOTIFICATION.—Not later than 3 months before

9 the payment of any such quarterly installment to a State,

10 the Secretary shall notify the State of the amount of any

11 reduction determined under section 412(a)(1)(B) with re12 spect to the State.

13 ‘‘(c) COMPUTATION AND CERTIFICATION OF PAY14 MENTS TO STATES.—

15 ‘‘(1) COMPUTATION.—The Secretary shall esti16 mate the amount to be paid to each eligible State for

17 each quarter under this part, such estimate to be

18 based on a report filed by the State containing an

19 estimate by the State of the total sum to be ex20 pended by the State in the quarter under the State

21 program funded under this part and such other in22 formation as the Secretary may find necessary.

23 ‘‘(2) CERTIFICATION.—The Secretary of Health

24 and Human Services shall certify to the Secretary of

25 the Treasury the amount estimated under paragraph
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•HR 3832 IH

1 (1) with respect to a State, reduced or increased to

2 the extent of any overpayment or underpayment

3 which the Secretary of Health and Human Services

4 determines was made under this part to the State

5 for any prior quarter and with respect to which ad6 justment has not been made under this paragraph.

7 ‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi8 cation under subsection (c)(2) with respect to a State, the

9 Secretary of the Treasury shall, through the Fiscal Service

10 of the Department of the Treasury and before audit or

11 settlement by the General Accounting Office, pay to the

12 State, at the time or times fixed by the Secretary of

13 Health and Human Services, the amount so certified.

14 ‘‘(e) COLLECTION OF STATE OVERPAYMENTS TO

15 FAMILIES FROM FEDERAL TAX REFUNDS.—

16 ‘‘(1) IN GENERAL.—Upon receiving notice from

17 the Secretary of Health and Human Services that a

18 State agency administering a program funded under

19 this part has notified the Secretary that a named in20 dividual has been overpaid under the State program

21 funded under this part, the Secretary of the Treas22 ury shall determine whether any amounts as refunds

23 of Federal taxes paid are payable to such individual,

24 regardless of whether the individual filed a tax re25 turn as a married or unmarried individual. If the
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•HR 3832 IH

1 Secretary of the Treasury finds that any such

2 amount is so payable, the Secretary shall withhold

3 from such refunds an amount equal to the overpay4 ment sought to be collected by the State and pay

5 such amount to the State agency.

6 ‘‘(2) REGULATIONS.—The Secretary of the

7 Treasury shall issue regulations, after review by the

8 Secretary of Health and Human Services, that pro9 vide—

10 ‘‘(A) that a State may only submit under

11 paragraph (1) requests for collection of over12 payments with respect to individuals—

13 ‘‘(i) who are no longer receiving as14 sistance under the State program funded

15 under this part;

16 ‘‘(ii) with respect to whom the State

17 has already taken appropriate action under

18 State law against the income or resources

19 of the individuals or families involved to

20 collect the past-due legally enforceable

21 debt; and

22 ‘‘(iii) to whom the State agency has

23 given notice of its intent to request with24 holding by the Secretary of the Treasury
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•HR 3832 IH

1 from the income tax refunds of such indi2 viduals;

3 ‘‘(B) that the Secretary of the Treasury

4 will give a timely and appropriate notice to any

5 other person filing a joint return with the indi6 vidual whose refund is subject to withholding

7 under paragraph (1); and

8 ‘‘(C) the procedures that the State and the

9 Secretary of the Treasury will follow in carrying

10 out this subsection which, to the maximum ex11 tent feasible and consistent with the provisions

12 of this subsection, will be the same as those is13 sued pursuant to section 464(b) applicable to

14 collection of past-due child support.

15 ‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PRO16 GRAMS.

17 ‘‘(a) LOAN AUTHORITY.—

18 ‘‘(1) IN GENERAL.—The Secretary shall make

19 loans to any loan-eligible State, for a period to ma20 turity of not more than 3 years.

21 ‘‘(2) LOAN-ELIGIBLE STATE.—As used in para22 graph (1), the term ‘loan-eligible State’ means a

23 State against which a penalty has not been imposed

24 under section 409(e).
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1 ‘‘(b) RATE OF INTEREST.—The Secretary shall

2 charge and collect interest on any loan made under this

3 section at a rate equal to the current average market yield

4 on outstanding marketable obligations of the United

5 States with remaining periods to maturity comparable to

6 the period to maturity of the loan.

7 ‘‘(c) USE OF LOAN.—A State shall use a loan made

8 to the State under this section only for any purpose for

9 which grant amounts received by the State under section

10 403(a) may be used, including—

11 ‘‘(1) welfare anti-fraud activities; and

12 ‘‘(2) the provision of assistance under the State

13 program to Indian families that have moved from

14 the service area of an Indian tribe with a tribal fam15 ily assistance plan approved under section 412.

16 ‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO

17 A STATE.—The cumulative dollar amount of all loans

18 made to a State under this section during fiscal years

19 1997 through 2001 shall not exceed 10 percent of the

20 State family assistance grant.

21 ‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTAND22 ING LOANS.—The total dollar amount of loans outstand23 ing under this section may not exceed $1,700,000,000.

24 ‘‘(f) APPROPRIATION.—Out of any money in the

25 Treasury of the United States not otherwise appropriated,
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•HR 3832 IH

1 there are appropriated such sums as may be necessary for

2 the cost of loans under this section.

3 ‘‘SEC. 407. MANDATORY WORK REQUIREMENTS; INDIVID4 UAL RESPONSIBILITY PLANS.

5 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

6 ‘‘(1) ALL FAMILIES.—A State to which a grant

7 is made under section 403 for a fiscal year shall

8 achieve the minimum participation rate specified in

9 the following table for the fiscal year with respect to

10 all families receiving assistance under the State pro11 gram funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1997 ............................................................... 20

1998 ............................................................... 25

1999 ............................................................... 30

2000 ............................................................... 35

2001 ............................................................... 40

2002 or thereafter ......................................... 50.

12 ‘‘(2) 2-PARENT FAMILIES.—A State to which a

13 grant is made under section 403 for a fiscal year

14 shall achieve the minimum participation rate speci15 fied in the following table for the fiscal year with re16 spect to 2-parent families receiving assistance under

17 the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1997 ............................................................... 75

1998 ............................................................... 75

1999 or thereafter ......................................... 90.

18 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—
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•HR 3832 IH

1 ‘‘(1) ALL FAMILIES.—

2 ‘‘(A) AVERAGE MONTHLY RATE.—For pur3 poses of subsection (a)(1), the participation

4 rate for all families of a State for a fiscal year

5 is the average of the participation rates for all

6 families of the State for each month in the fis7 cal year.

8 ‘‘(B) MONTHLY PARTICIPATION RATES.—

9 The participation rate of a State for all families

10 of the State for a month, expressed as a per11 centage, is—

12 ‘‘(i) the number of families receiving

13 assistance under the State program funded

14 under this part that include an adult who

15 is engaged in work for the month; divided

16 by

17 ‘‘(ii) the amount by which—

18 ‘‘(I) the number of families re19 ceiving such assistance during the

20 month that include an adult receiving

21 such assistance; exceeds

22 ‘‘(II) the number of families re23 ceiving such assistance that are sub24 ject in such month to a penalty de25 scribed in subsection (e)(1) but have
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•HR 3832 IH

1 not been subject to such penalty for

2 more than 3 months within the pre3 ceding 12-month period (whether or

4 not consecutive).

5 ‘‘(C) SPECIAL RULE.—An individual shall

6 be considered to be engaged in work and to be

7 an adult recipient of assistance under a State

8 program funded under this part for purposes of

9 subparagraph (B) for the first 6 months

10 (whether or not consecutive) after the first ces11 sation of assistance to an individual under the

12 program during which the individual is em13 ployed for an average of more than 25 hours

14 per week in an unsubsidized job in the private

15 sector.

16 ‘‘(2) 2-PARENT FAMILIES.—

17 ‘‘(A) AVERAGE MONTHLY RATE.—For pur18 poses of subsection (a)(2), the participation

19 rate for 2-parent families of a State for a fiscal

20 year is the average of the participation rates for

21 2-parent families of the State for each month in

22 the fiscal year.

23 ‘‘(B) MONTHLY PARTICIPATION RATES.—

24 The participation rate of a State for 2-parent

25 families of the State for a month shall be cal-
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•HR 3832 IH

1 culated by use of the formula set forth in para2 graph (1)(B), except that in the formula the

3 term ‘number of 2-parent families’ shall be sub4 stituted for the term ‘number of families’ each

5 place such latter term appears.

6 ‘‘(3) PRO RATA REDUCTION OF PARTICIPATION

7 RATE DUE TO CASELOAD REDUCTIONS NOT RE8 QUIRED BY FEDERAL LAW.—

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

10 prescribe regulations for reducing the minimum

11 participation rate otherwise required by this

12 section for a fiscal year by the number of per13 centage points equal to the number of percent14 age points (if any) by which—

15 ‘‘(i) the number of families receiving

16 assistance during the fiscal year under the

17 State program funded under this part is

18 less than

19 ‘‘(ii) the number of families that re20 ceived aid under the State plan approved

21 under part A (as in effect on September

22 30, 1995) during fiscal year 1994 or 1995,

23 whichever is the greater.

24 The minimum participation rate shall not be re25 duced to the extent that the Secretary deter-
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1 mines that the reduction in the number of fami2 lies receiving such assistance is required by

3 Federal law.

4 ‘‘(B) ELIGIBILITY CHANGES NOT COUNT5 ED.—The regulations described in subpara6 graph (A) shall not take into account families

7 that are diverted from a State program funded

8 under this part as a result of differences in eli9 gibility criteria under a State program funded

10 under this part and eligibility criteria under the

11 State program operated under the State plan

12 approved under part A (as such plan and such

13 part were in effect on September 30, 1995).

14 Such regulations shall place the burden on the

15 Secretary to prove that such families were di16 verted as a direct result of differences in such

17 eligibility criteria.

18 ‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS

19 RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY

20 ASSISTANCE PLAN.—For purposes of paragraphs

21 (1)(B) and (2)(B), a State may, at its option, in22 clude families receiving assistance under a tribal

23 family assistance plan approved under section 412.

24 ‘‘(5) STATE OPTION FOR PARTICIPATION RE25 QUIREMENT EXEMPTIONS.—For any fiscal year, a
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•HR 3832 IH

1 State may, at its option, not require an individual

2 who is a single custodial parent caring for a child

3 who has not attained 12 months of age to engage in

4 work and may disregard such an individual in deter5 mining the participation rates under subsection (a).

6 ‘‘(c) ENGAGED IN WORK.—

7 ‘‘(1) ALL FAMILIES.—For purposes of sub8 section (b)(1)(B)(i), a recipient is engaged in work

9 for a month in a fiscal year if the recipient is par10 ticipating in such activities for at least the minimum

11 average number of hours per week specified in the

12 following table during the month, not fewer than 20

13 hours per week of which are attributable to an activ14 ity described in paragraph (1), (2), (3), (4), (5), (7),

15 or (8) of subsection (d) (or, if the participation of

16 the recipient in an activity described in subsection

17 (d)(6) has been taken into account for purposes of

18 paragraph (1) or (2) of subsection (b) for fewer than

19 4 weeks in the fiscal year, an activity described in

20 subsection (d)(6)):

The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

1996 ............................................................... 20

1997 ............................................................... 20

1998 ............................................................... 20

1999 or thereafter ......................................... 25.

21 ‘‘(2) 2-PARENT FAMILIES.—For purposes of

22 subsection (b)(2)(B)(i), an adult is engaged in work
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•HR 3832 IH

1 for a month in a fiscal year if the adult is making

2 progress in such activities for at least 25 hours per

3 week during the month, not fewer than 20 hours per

4 week of which are attributable to an activity de5 scribed in paragraph (1), (2), (3), (4), (5), (7), or

6 (8) of subsection (d) (or, if the participation of the

7 recipient in an activity described in subsection (d)(6)

8 has been taken into account for purposes of para9 graph (1) or (2) of subsection (b) for fewer than 8

10 weeks (no more than 4 of which may be consecutive)

11 in the fiscal year, an activity described in subsection

12 (d)(6)).

13 ‘‘(3) LIMITATION ON VOCATIONAL EDUCATION

14 ACTIVITIES COUNTED AS WORK.—For purposes of

15 determining monthly participation rates under para16 graphs (1)(B)(i) and (2)(B)(i) of subsection (b), not

17 more than 20 percent of adults in all families and

18 in 2-parent families determined to be engaged in

19 work in the State for a month may meet the work

20 activity requirement through participation in voca21 tional educational training.

22 ‘‘(4) OPTION TO REDUCE NUMBER OF HOURS

23 OF WORK REQUIRED OF SINGLE PARENTS WITH A

24 CHILD UNDER AGE 6.—Notwithstanding paragraph

25 (1), a State may reduce to 20 the number of hours
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•HR 3832 IH

1 per week during which a single custodial parent is

2 required pursuant to this section to engage in work

3 activities if the family of the parent includes an indi4 vidual who has not attained 6 years of age.

5 ‘‘(d) WORK ACTIVITIES DEFINED.—As used in this

6 section, the term ‘work activities’ means—

7 ‘‘(1) unsubsidized employment;

8 ‘‘(2) subsidized private sector employment;

9 ‘‘(3) subsidized public sector employment;

10 ‘‘(4) work experience (including work associated

11 with the refurbishing of publicly assisted housing) if

12 sufficient private sector employment is not available;

13 ‘‘(5) on-the-job training;

14 ‘‘(6) job search and job readiness assistance;

15 ‘‘(7) community service programs;

16 ‘‘(8) vocational educational training (not to ex17 ceed 12 months with respect to any individual);

18 ‘‘(9) job skills training directly related to em19 ployment;

20 ‘‘(10) education directly related to employment,

21 in the case of a recipient who has not received a

22 high school diploma or a certificate of high school

23 equivalency; and

24 ‘‘(11) satisfactory attendance at secondary

25 school, in the case of a recipient who—
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•HR 3832 IH

1 ‘‘(A) has not completed secondary school;

2 and

3 ‘‘(B) is a dependent child, or a head of

4 household who has not attained 20 years of age.

5 ‘‘(e) PENALTIES AGAINST INDIVIDUALS.—

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), if an adult in a family receiving assist8 ance under the State program funded under this

9 part refuses to engage in work required in accord10 ance with this section, the State shall—

11 ‘‘(A) reduce the amount of assistance oth12 erwise payable to the family pro rata (or more,

13 at the option of the State) with respect to any

14 period during a month in which the adult so re15 fuses; or

16 ‘‘(B) terminate such assistance,

17 subject to such good cause and other exceptions as

18 the State may establish.

19 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

20 (1), a State may not reduce or terminate assistance

21 under the State program funded under this part

22 based on a refusal of an adult to work if the adult

23 is a single custodial parent caring for a child who

24 has not attained 11 years of age, and the adult

25 proves that the adult has a demonstrated inability
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1 (as determined by the State) to obtain needed child

2 care, for 1 or more of the following reasons:

3 ‘‘(A) Unavailability of appropriate child

4 care within a reasonable distance from the indi5 vidual’s home or work site.

6 ‘‘(B) Unavailability or unsuitability of in7 formal child care by a relative or under other

8 arrangements.

9 ‘‘(C) Unavailability of appropriate and af10 fordable formal child care arrangements.

11 ‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

13 an adult in a family receiving assistance under a

14 State program funded under this part attributable to

15 funds provided by the Federal Government may fill

16 a vacant employment position in order to engage in

17 a work activity described in subsection (d).

18 ‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No

19 adult in a work activity described in subsection (d)

20 which is funded, in whole or in part, by funds pro21 vided by the Federal Government shall be employed

22 or assigned—

23 ‘‘(A) when any other individual is on layoff

24 from the same or any substantially equivalent

25 job; or
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•HR 3832 IH

1 ‘‘(B) if the employer has terminated the

2 employment of any regular employee or other3 wise caused an involuntary reduction of its

4 workforce in order to fill the vacancy so created

5 with an adult described in paragraph (1).

6 ‘‘(3) NO PREEMPTION.—Nothing in this sub7 section shall preempt or supersede any provision of

8 State or local law that provides greater protection

9 for employees from displacement.

10 ‘‘(g) INDIVIDUAL RESPONSIBILITY PLANS.—

11 ‘‘(1) ASSESSMENT.—The State agency respon12 sible for administering the State program funded

13 under this part shall make an initial assessment of

14 the skills, prior work experience, and employability

15 of each applicant for, or recipient of, assistance

16 under the program who—

17 ‘‘(A) has attained 18 years of age; or

18 ‘‘(B) has not completed high school or ob19 tained a certificate of high school equivalency,

20 and is not attending secondary school.

21 ‘‘(2) CONTENTS OF PLANS.—

22 ‘‘(A) IN GENERAL.—On the basis of the

23 assessment made under paragraph (1) with re24 spect to an individual, the State agency, in con25 sultation with the individual, shall develop an
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1 individual responsibility plan for the individual,

2 which—

3 ‘‘(i) shall provide that participation by

4 the individual in job search activities shall

5 be a condition of eligibility for assistance

6 under the State program funded under this

7 part, except during any period for which

8 the individual is employed full-time in an

9 unsubsidized job in the private sector;

10 ‘‘(ii) sets forth an employment goal

11 for the individual and a plan for moving

12 the individual immediately into private sec13 tor employment;

14 ‘‘(iii) sets forth the obligations of the

15 individual, which may include a require16 ment that the individual attend school,

17 maintain certain grades and attendance,

18 keep school age children of the individual

19 in school, immunize children, attend

20 parenting and money management classes,

21 or do other things that will help the indi22 vidual become and remain employed in the

23 private sector;

24 ‘‘(iv) to the greatest extent possible

25 shall be designed to move the individual
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•HR 3832 IH

1 into whatever private sector employment

2 the individual is capable of handling as

3 quickly as possible, and to increase the re4 sponsibility and amount of work the indi5 vidual is to handle over time;

6 ‘‘(v) shall describe the services the

7 State will provide the individual so that the

8 individual will be able to obtain and keep

9 employment in the private sector, and de10 scribe the job counseling and other services

11 that will be provided by the State; and

12 ‘‘(vi) at the option of the State, may

13 require the individual to undergo appro14 priate substance abuse treatment.

15 ‘‘(B) TIMING.—The State agency shall

16 comply with subparagraph (A) with respect to

17 an individual—

18 ‘‘(i) within 90 days (or, at the option

19 of the State, 180 days) after the effective

20 date of this part, in the case of an individ21 ual who, as of such effective date, is a re22 cipient of aid under the State plan ap23 proved under part A (as in effect imme24 diately before such effective date); or
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•HR 3832 IH

1 ‘‘(ii) within 30 days (or, at the option

2 of the State, 90 days) after the individual

3 is determined to be eligible for such assist4 ance, in the case of any other individual.

5 ‘‘(3) PROVISION OF PROGRAM AND EMPLOY6 MENT INFORMATION.—The State shall inform all ap7 plicants for and recipients of assistance under the

8 State program funded under this part of all avail9 able services under the program for which they are

10 eligible.

11 ‘‘(4) PENALTY FOR NONCOMPLIANCE BY INDI12 VIDUAL.—The State shall reduce, by such amount

13 as the State considers appropriate, the amount of

14 assistance otherwise payable under the State pro15 gram funded under this part to a family that in16 cludes an individual who fails without good cause to

17 comply with an individual responsibility plan signed

18 by the individual.

19 ‘‘(h) SENSE OF THE CONGRESS.—It is the sense of

20 the Congress that in complying with this section, each

21 State that operates a program funded under this part is

22 encouraged to assign the highest priority to requiring

23 adults in 2-parent families and adults in single-parent

24 families that include older preschool or school-age children

25 to be engaged in work activities.
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1 ‘‘(i) SENSE OF THE CONGRESS THAT STATES

2 SHOULD IMPOSE CERTAIN REQUIREMENTS ON NON3 CUSTODIAL, NONSUPPORTING MINOR PARENTS.—It is the

4 sense of the Congress that the States should require non5 custodial, nonsupporting parents who have not attained 18

6 years of age to fulfill community work obligations and at7 tend appropriate parenting or money management classes

8 after school.

9 ‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

10 ‘‘(a) IN GENERAL.—

11 ‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A

12 MINOR CHILD.—A State to which a grant is made

13 under section 403 shall not use any part of the

14 grant to provide assistance to a family, unless the

15 family includes—

16 ‘‘(A) a minor child who resides with a cus17 todial parent or other adult caretaker relative of

18 the child; or

19 ‘‘(B) a pregnant individual.

20 ‘‘(2) NO ADDITIONAL CASH ASSISTANCE FOR

21 CHILDREN BORN TO FAMILIES RECEIVING ASSIST22 ANCE.—

23 ‘‘(A) GENERAL RULE.—A State to which a

24 grant is made under section 403 shall not use
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1 any part of the grant to provide cash benefits

2 for a minor child who is born to—

3 ‘‘(i) a recipient of assistance under

4 the program operated under this part; or

5 ‘‘(ii) a person who received such as6 sistance at any time during the 10-month

7 period ending with the birth of the child.

8 ‘‘(B) EXCEPTION FOR CHILDREN BORN

9 INTO FAMILIES WITH NO OTHER CHILDREN.—

10 Subparagraph (A) shall not apply to a minor

11 child who is born into a family that does not in12 clude any other children.

13 ‘‘(C) EXCEPTION FOR VOUCHERS.—Sub14 paragraph (A) shall not apply to vouchers

15 which are provided in lieu of cash benefits and

16 which may be used only to pay for particular

17 goods and services specified by the State as

18 suitable for the care of the child involved.

19 ‘‘(D) EXCEPTION FOR RAPE OR INCEST.—

20 Subparagraph (A) shall not apply with respect

21 to a child who is born as a result of rape or in22 cest.

23 ‘‘(E) STATE ELECTION TO OPT OUT.—Sub24 paragraph (A) shall not apply to a State if

25 State law specifically exempts the State pro-
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1 gram funded under this part from the applica2 tion of subparagraph (A).

3 ‘‘(F) SUBSTITUTION OF FAMILY CAPS IN

4 EFFECT UNDER WAIVERS.—Subparagraph (A)

5 shall not apply to a State—

6 ‘‘(i) if, as of the date of the enactment

7 of this part, there is in effect a waiver ap8 proved by the Secretary under section

9 1115 which permits the State to deny aid

10 under the State plan approved under part

11 A of this title (as in effect without regard

12 to the amendments made by title I of the

13 Bipartisan Welfare Reform Act of 1996) to

14 a family by reason of the birth of a child

15 to a family member otherwise eligible for

16 such aid; and

17 ‘‘(ii) for so long as the State contin18 ues to implement such policy under the

19 State program funded under this part,

20 under rules prescribed by the State.

21 ‘‘(3) REDUCTION OR ELIMINATION OF ASSIST22 ANCE FOR NONCOOPERATION IN CHILD SUPPORT.—

23 If the agency responsible for administering the State

24 plan approved under part D determines that an indi25 vidual is not cooperating with the State in establish-
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•HR 3832 IH

1 ing, modifying, or enforcing a support order with re2 spect to a child of the individual, then the State—

3 ‘‘(A) shall deduct from the assistance that

4 would otherwise be provided to the family of the

5 individual under the State program funded

6 under this part the share of such assistance at7 tributable to the individual; and

8 ‘‘(B) may deny the family any assistance

9 under the State program.

10 ‘‘(4) NO ASSISTANCE FOR FAMILIES NOT AS11 SIGNING CERTAIN SUPPORT RIGHTS TO THE

12 STATE.—

13 ‘‘(A) IN GENERAL.—A State to which a

14 grant is made under section 403 shall require,

15 as a condition of providing assistance to a fam16 ily under the State program funded under this

17 part, that a member of the family assign to the

18 State any rights the family member may have

19 (on behalf of the family member or of any other

20 person for whom the family member has applied

21 for or is receiving such assistance) to support

22 from any other person, not exceeding the total

23 amount of assistance so provided to the family,

24 which accrue (or have accrued) before the date

25 the family leaves the program, which assign-
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1 ment, on and after the date the family leaves

2 the program, shall not apply with respect to any

3 support (other than support collected pursuant

4 to section 464) which accrued before the family

5 received such assistance and which the State

6 has not collected by—

7 ‘‘(i) September 30, 2000, if the as8 signment is executed on or after October 1,

9 1997, and before October 1, 2000; or

10 ‘‘(ii) the date the family leaves the

11 program, if the assignment is executed on

12 or after October 1, 2000.

13 ‘‘(B) LIMITATION.—A State to which a

14 grant is made under section 403 shall not re15 quire, as a condition of providing assistance to

16 any family under the State program funded

17 under this part, that a member of the family

18 assign to the State any rights to support de19 scribed in subparagraph (A) which accrue after

20 the date the family leaves the program, except

21 to the extent necessary to enable the State to

22 comply with section 457.

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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•HR 3832 IH

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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•HR 3832 IH

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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•HR 3832 IH

1 any part of the grant to provide cash assistance

2 to 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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•HR 3832 IH

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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•HR 3832 IH

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 ‘‘(9) DENIAL OF ASSISTANCE FOR 10 YEARS TO

12 A PERSON FOUND TO HAVE FRAUDULENTLY MIS13 REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS14 SISTANCE IN 2 OR MORE STATES.—A State to which

15 a grant is made under section 403 shall not use any

16 part of the grant to provide cash assistance to an in17 dividual during the 10-year period that begins on

18 the date the individual is convicted in Federal or

19 State court of having made a fraudulent statement

20 or representation with respect to the place of resi21 dence of the individual in order to receive assistance

22 simultaneously from 2 or more States under pro23 grams that are funded under this title, title XIX, or

24 the Food Stamp Act of 1977, or benefits in 2 or
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1 more States under the supplemental security income

2 program under title XVI.

3 ‘‘(10) DENIAL OF ASSISTANCE FOR FUGITIVE

4 FELONS AND PROBATION AND PAROLE VIOLA5 TORS.—

6 ‘‘(A) IN GENERAL.—A State to which a

7 grant is made under section 403 shall not use

8 any part of the grant to provide assistance to

9 any individual who is—

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

11 custody or confinement after conviction,

12 under the laws of the place from which the

13 individual flees, for a crime, or an attempt

14 to commit a crime, which is a felony under

15 the laws of the place from which the indi16 vidual flees, or which, in the case of the

17 State of New Jersey, is a high mis18 demeanor under the laws of such State; or

19 ‘‘(ii) violating a condition of probation

20 or parole imposed under Federal or State

21 law.

22 ‘‘(B) EXCHANGE OF INFORMATION WITH

23 LAW ENFORCEMENT AGENCIES.—If a State to

24 which a grant is made under section 403 estab25 lishes safeguards against the use or disclosure
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•HR 3832 IH

1 of information about applicants or recipients of

2 assistance under the State program funded

3 under this part, the safeguards shall not pre4 vent the State agency administering the pro5 gram from furnishing a Federal, State, or local

6 law enforcement officer, upon the request of the

7 officer, with the current address of any recipi8 ent if the officer furnishes the agency with the

9 name of the recipient and notifies the agency

10 that—

11 ‘‘(i) the recipient—

12 ‘‘(I) is described in subparagraph

13 (A); or

14 ‘‘(II) has information that is nec15 essary for the officer to conduct the

16 official duties of the officer; and

17 ‘‘(ii) the location or apprehension of

18 the recipient is within such official duties.

19 ‘‘(11) DENIAL OF ASSISTANCE FOR MINOR

20 CHILDREN WHO ARE ABSENT FROM THE HOME FOR

21 A SIGNIFICANT PERIOD.—

22 ‘‘(A) IN GENERAL.—A State to which a

23 grant is made under section 403 shall not use

24 any part of the grant to provide assistance for

25 a minor child who has been, or is expected by
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•HR 3832 IH

1 a parent (or other caretaker relative) of the

2 child to be, absent from the home for a period

3 of 45 consecutive days or, at the option of the

4 State, such period of not less than 30 and not

5 more than 90 consecutive days as the State

6 may provide for in the State plan submitted

7 pursuant to section 402.

8 ‘‘(B) STATE AUTHORITY TO ESTABLISH

9 GOOD CAUSE EXCEPTIONS.—The State may es10 tablish such good cause exceptions to subpara11 graph (A) as the State considers appropriate if

12 such exceptions are provided for in the State

13 plan submitted pursuant to section 402.

14 ‘‘(C) DENIAL OF ASSISTANCE FOR REL15 ATIVE WHO FAILS TO NOTIFY STATE AGENCY

16 OF ABSENCE OF CHILD.—A State to which a

17 grant is made under section 403 shall not use

18 any part of the grant to provide assistance for

19 an individual who is a parent (or other care20 taker relative) of a minor child and who fails to

21 notify the agency administering the State pro22 gram funded under this part of the absence of

23 the minor child from the home for the period

24 specified in or provided for pursuant to sub25 paragraph (A), by the end of the 5-day period
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•HR 3832 IH

1 that begins with the date that it becomes clear

2 to the parent (or relative) that the minor child

3 will be absent for such period so specified or

4 provided for.

5 ‘‘(12) INCOME SECURITY PAYMENTS NOT TO BE

6 DISREGARDED IN DETERMINING THE AMOUNT OF

7 ASSISTANCE TO BE PROVIDED TO A FAMILY.—If a

8 State to which a grant is made under section 403

9 uses any part of the grant to provide assistance for

10 any individual who is receiving a payment under a

11 State plan for old-age assistance approved under

12 section 2, a State program funded under part B that

13 provides cash payments for foster care, or the sup14 plemental security income program under title XVI,

15 then the State shall not disregard the payment in

16 determining the amount of assistance to be provided

17 under the State program funded under this part,

18 from funds provided by the Federal Government, to

19 the family of which the individual is a member.

20 ‘‘(13) PROVISION OF VOUCHERS TO FAMILIES

21 DENIED CASH ASSISTANCE DUE TO STATE-IMPOSED

22 TIME LIMITS.—

23 ‘‘(A) REQUIREMENT.—If a family is denied

24 assistance under the State program funded

25 under this part by reason of a time limit im-
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•HR 3832 IH

1 posed by the State other than pursuant to para2 graph (8), the State shall provide vouchers to

3 the family in accordance with subparagraph

4 (B).

5 ‘‘(B) CHARACTERISTICS OF VOUCHERS.—

6 The vouchers referred to in subparagraph (A)

7 shall be—

8 ‘‘(i) in an amount equal to the

9 amount determined by the State to meet

10 the needs of only the child or children in

11 the family, which shall be determined in

12 the same manner as the State would other13 wise determines the needs of the child or

14 children under the program;

15 ‘‘(ii) designed appropriately to pay a

16 third party for goods and services to be

17 provided by the third party to the child or

18 children in the family; and

19 ‘‘(iii) redeemable by a third party de20 scribed in clause (ii) for a dollar amount

21 equal to the amount of the voucher.

22 ‘‘(b) ALIENS.—For special rules relating to the treat23 ment of aliens, see section 402 of the Bipartisan Welfare

24 Reform Act of 1996.
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1 ‘‘SEC. 409. PENALTIES.

2 ‘‘(a) IN GENERAL.—Subject to this section:

3 ‘‘(1) FAILURE TO SUBMIT REQUIRED RE4 PORT.—

5 ‘‘(A) IN GENERAL.—If the Secretary deter6 mines that a State has not, within 1 month

7 after the end of a fiscal quarter, submitted the

8 report required by section 411(a) for the quar9 ter, the Secretary shall reduce the grant pay10 able to the State under section 403(a)(1) for

11 the immediately succeeding fiscal year by an

12 amount equal to 4 percent of the State family

13 assistance grant.

14 ‘‘(B) RESCISSION OF PENALTY.—The Sec15 retary shall rescind a penalty imposed on a

16 State under subparagraph (A) with respect to a

17 report for a fiscal quarter if the State submits

18 the report before the end of the immediately

19 succeeding fiscal quarter.

20 ‘‘(2) FAILURE TO PARTICIPATE IN THE INCOME

21 AND ELIGIBILITY VERIFICATION SYSTEM.—If the

22 Secretary determines that a State program funded

23 under this part is not participating during a fiscal

24 year in the income and eligibility verification system

25 required by section 1137, the Secretary shall reduce

26 the grant payable to the State under section
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1 403(a)(1) for the immediately succeeding fiscal year

2 by an amount equal to not more than 2 percent of

3 the State family assistance grant.

4 ‘‘(3) FAILURE TO COMPLY WITH PATERNITY ES5 TABLISHMENT AND CHILD SUPPORT ENFORCEMENT

6 REQUIREMENTS UNDER PART D.—Notwithstanding

7 any other provision of this Act, if the Secretary de8 termines that the State agency that administers a

9 program funded under this part does not enforce the

10 penalties requested by the agency administering part

11 D against recipients of assistance under the State

12 program who fail to cooperate in establishing pater13 nity in accordance with such part, the Secretary

14 shall reduce the grant payable to the State under

15 section 403(a)(1) for the immediately succeeding fis16 cal year (without regard to this section) by not more

17 than 5 percent.

18 ‘‘(4) FAILURE TO TIMELY REPAY A FEDERAL

19 LOAN FUND FOR STATE WELFARE PROGRAMS.—If

20 the Secretary determines that a State has failed to

21 repay any amount borrowed from the Federal Loan

22 Fund for State Welfare Programs established under

23 section 406 within the period of maturity applicable

24 to the loan, plus any interest owed on the loan, the

25 Secretary shall reduce the grant payable to the State
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•HR 3832 IH

1 under section 403(a)(1) for the immediately succeed2 ing fiscal year quarter (without regard to this sec3 tion) by the outstanding loan amount, plus the inter4 est owed on the outstanding amount. The Secretary

5 shall not forgive any outstanding loan amount or in6 terest owed on the outstanding amount.

7 ‘‘(5) FAILURE OF ANY STATE TO MAINTAIN

8 CERTAIN LEVEL OF HISTORIC EFFORT.—

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

10 reduce the grant payable to the State under

11 section 403(a)(1) for fiscal year 1997, 1998,

12 1999, 2000, 2001, or 2002 by the amount (if

13 any) by which qualified State expenditures for

14 the then immediately preceding fiscal year is

15 less than the applicable percentage of historic

16 State expenditures with respect to the fiscal

17 year.

18 ‘‘(B) DEFINITIONS.—As used in this para19 graph:

20 ‘‘(i) QUALIFIED STATE EXPENDI21 TURES.—

22 ‘‘(I) IN GENERAL.—The term

23 ‘qualified State expenditures’ means,

24 with respect to a State and a fiscal

25 year, the total expenditures by the
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1 State during the fiscal year, under all

2 State programs, for any of the follow3 ing with respect to eligible families:

4 ‘‘(aa) Cash assistance.

5 ‘‘(bb) Child care assistance.

6 ‘‘(cc) Educational activities

7 designed to increase self-suffi8 ciency, job training, and work,

9 excluding any expenditure for

10 public education in the State ex11 cept expenditures which involve

12 the provision of services or assist13 ance to a member of an eligible

14 family which is not generally

15 available to persons who are not

16 members of eligible families.

17 ‘‘(dd) Administrative costs

18 in connection with the matters

19 described in items (aa), (bb),

20 (cc), and (ee), but only to the ex21 tent that such costs do not ex22 ceed 15 percent of the total

23 amount of qualified State ex24 penditures for the fiscal year.
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1 ‘‘(ee) Any other use of funds

2 allowable under section

3 404(a)(1).

4 ‘‘(II) EXCLUSION OF TRANSFERS

5 FROM OTHER STATE AND LOCAL PRO6 GRAMS.—Such term does not include

7 expenditures under any State or local

8 program during a fiscal year, except

9 to the extent that—

10 ‘‘(aa) such expenditures ex11 ceed the amount expended under

12 the State or local program in the

13 fiscal year most recently ending

14 before the date of the enactment

15 of this part; or

16 ‘‘(bb) the State is entitled to

17 a payment under former section

18 403 (as in effect immediately be19 fore such date of enactment) with

20 respect to such expenditures.

21 ‘‘(III) ELIGIBLE FAMILIES.—As

22 used in subclause (I), the term ‘eligi23 ble families’ means families eligible

24 for assistance under the State pro25 gram funded under this part, and
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1 families who would be eligible for such

2 assistance but for the application of

3 paragraph (2) or (8) of section 408(a)

4 of this Act or section 402 of the Bi5 partisan Welfare Reform Act of 1996.

6 ‘‘(ii) APPLICABLE PERCENTAGE.—The

7 term ‘applicable percentage’ means—

8 ‘‘(I) for fiscal year 1996, 85 per9 cent; and

10 ‘‘(II) for fiscal years 1997, 1998,

11 1999, 2000, and 2001, 85 percent ad12 justed (if appropriate) in accordance

13 with subparagraph (C).

14 ‘‘(iii) HISTORIC STATE EXPENDI15 TURES.—The term ‘historic State expendi16 tures’ means, with respect to a State and

17 a fiscal year specified in subparagraph (A),

18 the lesser of—

19 ‘‘(I) the expenditures by the

20 State under parts A and F (as in ef21 fect during fiscal year 1994) for fiscal

22 year 1994; or

23 ‘‘(II) the amount which bears the

24 same ratio to the amount described in

25 subclause (I) as—
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1 ‘‘(aa) the State family as2 sistance grant for the fiscal year

3 immediately preceding the fiscal

4 year specified in subparagraph

5 (A), plus the total amount re6 quired to be paid to the State

7 under former section 403 for fis8 cal year 1994 with respect to

9 amounts expended by the State

10 for child care under subsection

11 (g) or (i) of section 402 (as in ef12 fect during fiscal year 1994);

13 bears to

14 ‘‘(bb) the total amount re15 quired to be paid to the State

16 under former section 403 (as in

17 effect during fiscal year 1994)

18 for fiscal year 1994.

19 Such term does not include any expendi20 tures under the State plan approved under

21 part A (as so in effect) on behalf of indi22 viduals covered by a tribal family assist23 ance plan approved under section 412, as

24 determined by the Secretary.
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•HR 3832 IH

1 ‘‘(iv) EXPENDITURES BY THE

2 STATE.—The term ‘expenditures by the

3 State’ does not include—

4 ‘‘(I) any expenditures from

5 amounts made available by the Fed6 eral Government;

7 ‘‘(II) State funds expended for

8 the medicaid program under title

9 XIX; or

10 ‘‘(III) any State funds which are

11 used to match Federal funds or are

12 expended as a condition of receiving

13 Federal funds under Federal pro14 grams other than under this part.

15 ‘‘(C) PERFORMANCE-BASED ADJUSTMENTS

16 TO APPLICABLE PERCENTAGE.—

17 ‘‘(i) INCREASE IN MAINTENANCE OF

18 EFFORT THRESHOLD FOR FAILURE TO

19 MEET PARTICIPATION RATES.—If the Sec20 retary determines that a State has failed

21 to achieve the participation rate required

22 by section 407 for a fiscal year, the Sec23 retary shall increase the applicable per24 centage for the State for the immediately

25 succeeding fiscal year by not more than 5
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1 percentage points. In determining the

2 amount of any such increase, the Secretary

3 shall take into account any increase in the

4 number of persons served by the State pro5 gram and any increase in the unemploy6 ment rate of the State, in accordance with

7 regulations which the Secretary shall pre8 scribe.

9 ‘‘(ii) REDUCTION IN MAINTENANCE OF

10 EFFORT THRESHOLD FOR HIGH PERFORM11 ANCE STATES.—

12 ‘‘(I) CRITERIA.—The Secretary

13 shall, by regulation, establish meas14 ures of the effectiveness of the State

15 program funded under this part in

16 moving recipients of assistance under

17 the program into full-time

18 unsubsidized employment. In develop19 ing the regulations, the Secretary

20 shall take into account the length of

21 time former recipients of assistance

22 under the program remain employed,

23 the earnings of such former recipients

24 who obtain private sector employment,

25 the total State caseload under the
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1 program, and the rate of unemploy2 ment in the State.

3 ‘‘(II) REDUCTION OF THRESH4 OLD.—The Secretary shall reduce the

5 applicable percentage for a State for a

6 fiscal year by not more than 5 per7 centage points if the Secretary deter8 mines that the State achieved the par9 ticipation rate required by section 407

10 for the immediately preceding fiscal

11 year and exceeded such performance

12 threshold as the Secretary may estab13 lish under subclause (I) of this clause.

14 ‘‘(6) SUBSTANTIAL NONCOMPLIANCE OF STATE

15 CHILD SUPPORT ENFORCEMENT PROGRAM WITH RE16 QUIREMENTS OF PART D.—

17 ‘‘(A) IN GENERAL.—If a State program

18 operated under part D is found as a result of

19 a review conducted under section 452(a)(4) not

20 to have complied substantially with the require21 ments of such part for any quarter, and the

22 Secretary determines that the program is not

23 complying substantially with such requirements

24 at the time the finding is made, the Secretary

25 shall reduce the grant payable to the State
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1 under section 403(a)(1) for the quarter and

2 each subsequent quarter that ends before the

3 1st quarter throughout which the program is

4 found to be in substantial compliance with such

5 requirements by—

6 ‘‘(i) not less than 1 nor more than 2

7 percent;

8 ‘‘(ii) not less than 2 nor more than 3

9 percent, if the finding is the 2nd consecu10 tive such finding made as a result of such

11 a review; or

12 ‘‘(iii) not less than 3 nor more than 5

13 percent, if the finding is the 3rd or a sub14 sequent consecutive such finding made as a

15 result of such a review.

16 ‘‘(B) DISREGARD OF NONCOMPLIANCE

17 WHICH IS OF A TECHNICAL NATURE.—For pur18 poses of subparagraph (A) of this paragraph

19 and section 452(a)(4), a State which is not in

20 full compliance with the requirements of this

21 part shall be determined to be in substantial

22 compliance with such requirements only if the

23 Secretary determines that any noncompliance

24 with such requirements is of a technical nature
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1 which does not adversely affect the performance

2 of the State’s program operated under part D.

3 ‘‘(7) FAILURE OF STATE RECEIVING AMOUNTS

4 FROM CONTINGENCY FUND TO MAINTAIN 100 PER5 CENT OF HISTORIC EFFORT.—If, at the end of any

6 fiscal year during which amounts from the Contin7 gency Fund for State Welfare Programs have been

8 paid to a State, the Secretary finds that the State

9 has failed, during the fiscal year, to expend under

10 the State program funded under this part an

11 amount equal to at least 100 percent of the level of

12 historic State expenditures (as defined in paragraph

13 (7)(B)(iii) of this subsection) with respect to the fis14 cal year, the Secretary shall reduce the grant pay15 able to the State under section 403(a)(1) for the im16 mediately succeeding fiscal year by the total of the

17 amounts so paid to the State.

18 ‘‘(8) FAILURE TO EXPEND ADDITIONAL STATE

19 FUNDS TO REPLACE GRANT REDUCTIONS.—If the

20 grant payable to a State under section 403(a)(1) for

21 a fiscal year is reduced by reason of this subsection,

22 the State shall, during the immediately succeeding

23 fiscal year, expend under the State program funded

24 under this part an amount equal to the total amount

25 of such reductions.
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1 ‘‘(9) FAILURE TO PROVIDE VOUCHER ASSIST2 ANCE.—If the Secretary determines that a State

3 program funded under this part has failed to comply

4 with section 408(a)(13) during a fiscal year, the

5 Secretary shall reduce the grant payable to the State

6 under section 403(a)(1) for the immediately succeed7 ing fiscal year by an amount equal to the difference

8 between the amount the State would have expended

9 on voucher assistance pursuant to section

10 408(a)(13) during the fiscal year in the absence of

11 such noncompliance and the amount the State ex12 pended on such voucher assistance during the fiscal

13 year.

14 ‘‘(10) FAILURE TO PROVIDE TRANSITIONAL

15 MEDICAL ASSISTANCE.—If the Secretary determines

16 that a State has not complied with section

17 408(a)(15) during a quarter, the Secretary shall re18 duce the grant payable to the State under section

19 403(a)(1) for the immediately succeeding quarter by

20 an amount equal to 5 percent of the portion of the

21 State family assistance grant that is payable to the

22 State for such succeeding quarter.

23 ‘‘(b) REASONABLE CAUSE EXCEPTION.—

24 ‘‘(1) IN GENERAL.—The Secretary may not im25 pose a penalty on a State under subsection (a) with
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1 respect to a requirement if the Secretary determines

2 that the State has reasonable cause for failing to

3 comply with the requirement.

4 ‘‘(2) EXCEPTION.—Paragraph (1) of this sub5 section shall not apply to any penalty under sub6 section (a)(5).

7 ‘‘(c) CORRECTIVE COMPLIANCE PLAN.—

8 ‘‘(1) IN GENERAL.—

9 ‘‘(A) NOTIFICATION OF VIOLATION.—Be10 fore imposing a penalty against a State under

11 subsection (a) with respect to a violation of this

12 part, the Secretary shall notify the State of the

13 violation and allow the State the opportunity to

14 enter into a corrective compliance plan in ac15 cordance with this subsection which outlines

16 how the State will correct the violation and how

17 the State will insure continuing compliance with

18 this part.

19 ‘‘(B) 60-DAY PERIOD TO PROPOSE A COR20 RECTIVE COMPLIANCE PLAN.—During the 60-

21 day period that begins on the date the State re22 ceives a notice provided under subparagraph

23 (A) with respect to a violation, the State may

24 submit to the Federal Government a corrective

25 compliance plan to correct the violation.
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1 ‘‘(C) CONSULTATION ABOUT MODIFICA2 TIONS.—During the 60-day period that begins

3 with the date the Secretary receives a corrective

4 compliance plan submitted by a State in accord5 ance with subparagraph (B), the Secretary may

6 consult with the State on modifications to the

7 plan.

8 ‘‘(D) ACCEPTANCE OF PLAN.— A correc9 tive compliance plan submitted by a State in ac10 cordance with subparagraph (B) is deemed to

11 be accepted by the Secretary if the Secretary

12 does not accept or reject the plan during 60-day

13 period that begins on the date the plan is sub14 mitted.

15 ‘‘(2) EFFECT OF CORRECTING VIOLATION.—

16 The Secretary may not impose any penalty under

17 subsection (a) with respect to any violation covered

18 by a State corrective compliance plan accepted by

19 the Secretary if the State corrects the violation pur20 suant to the plan.

21 ‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA22 TION.—The Secretary shall assess some or all of a

23 penalty imposed on a State under subsection (a)

24 with respect to a violation if the State does not, in

25 a timely manner, correct the violation pursuant to a
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1 State corrective compliance plan accepted by the

2 Secretary.

3 ‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—

4 ‘‘(1) IN GENERAL.—In imposing the penalties

5 described in subsection (a), the Secretary shall not

6 reduce any quarterly payment to a State by more

7 than 25 percent.

8 ‘‘(2) CARRYFORWARD OF UNRECOVERED PEN9 ALTIES.—To the extent that paragraph (1) of this

10 subsection prevents the Secretary from recovering

11 during a fiscal year the full amount of penalties im12 posed on a State under subsection (a) of this section

13 for a prior fiscal year, the Secretary shall apply any

14 remaining amount of such penalties to the grant

15 payable to the State under section 403(a)(1) for the

16 immediately succeeding fiscal year.

17 ‘‘(e) OTHER PENALTIES.—If, after reasonable notice

18 and opportunity for hearing to the State agency admin19 istering or supervising the administration of a State pro20 gram funded under this part, the Secretary finds that the

21 State has failed to comply substantially with any provision

22 of this part or of the State plan approved under section

23 402, the Secretary shall, if subsection (a) does not apply

24 to the failure, notify the State agency that further pay25 ments will not be made to the State under this part (or,
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1 in the Secretary’s discretion, that the payments will be re2 duced or limited to categories under, or parts of, the State

3 program not affected by the failure) until the Secretary

4 is satisfied that there is no longer any such failure to com5 ply. Until the Secretary is so satisfied, the Secretary shall

6 make no further payments to the State (or shall reduce

7 or limit payments to categories under or parts of the State

8 program not affected by the failure).

9 ‘‘SEC. 410. APPEAL OF ADVERSE DECISION.

10 ‘‘(a) IN GENERAL.—Within 5 days after the date the

11 Secretary takes any adverse action under this part with

12 respect to a State, the Secretary shall notify the chief ex13 ecutive officer of the State of the adverse action, including

14 any action with respect to the State plan submitted under

15 section 402 or the imposition of a penalty under section

16 409.

17 ‘‘(b) ADMINISTRATIVE REVIEW.—

18 ‘‘(1) IN GENERAL.—Within 60 days after the

19 date a State receives notice under subsection (a) of

20 an adverse action, the State may appeal the action,

21 in whole or in part, to the Departmental Appeals

22 Board established in the Department of Health and

23 Human Services (in this section referred to as the

24 ‘Board’) by filing an appeal with the Board.
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1 ‘‘(2) PROCEDURAL RULES.—The Board shall

2 consider an appeal filed by a State under paragraph

3 (1) on the basis of such documentation as the State

4 may submit and as the Board may require to sup5 port the final decision of the Board. In deciding

6 whether to uphold an adverse action or any portion

7 of such an action, the Board shall conduct a thor8 ough review of the issues and take into account all

9 relevant evidence. The Board shall make a final de10 termination with respect to an appeal filed under

11 paragraph (1) not less than 60 days after the date

12 the appeal is filed.

13 ‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—

14 ‘‘(1) IN GENERAL.—Within 90 days after the

15 date of a final decision by the Board under this sec16 tion with respect to an adverse action taken against

17 a State, the State may obtain judicial review of the

18 final decision (and the findings incorporated into the

19 final decision) by filing an action in—

20 ‘‘(A) the district court of the United States

21 for the judicial district in which the principal or

22 headquarters office of the State agency is lo23 cated; or

24 ‘‘(B) the United States District Court for

25 the District of Columbia.
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1 ‘‘(2) PROCEDURAL RULES.—The district court

2 in which an action is filed under paragraph (1) shall

3 review the final decision of the Board on the record

4 established in the administrative proceeding, in ac5 cordance with the standards of review prescribed by

6 subparagraphs (A) through (E) of section 706(2) of

7 title 5, United States Code. The review shall be on

8 the basis of the documents and supporting data sub9 mitted to the Board.

10 ‘‘SEC. 411. DATA COLLECTION AND REPORTING.

11 ‘‘(a) QUARTERLY REPORTS BY STATES.—

12 ‘‘(1) GENERAL REPORTING REQUIREMENT.—

13 ‘‘(A) CONTENTS OF REPORT.—Beginning

14 July 1, 1996, each State shall collect on a

15 monthly basis, and report to the Secretary on

16 a quarterly basis, the following disaggregated

17 case record information on the families receiv18 ing assistance under the State program funded

19 under this part:

20 ‘‘(i) The county of residence of the

21 family.

22 ‘‘(ii) Whether a child receiving such

23 assistance or an adult in the family is dis24 abled.
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1 ‘‘(iii) The ages of the members of

2 such families.

3 ‘‘(iv) The number of individuals in the

4 family, and the relation of each family

5 member to the youngest child in the fam6 ily.

7 ‘‘(v) The employment status and earn8 ings of the employed adult in the family.

9 ‘‘(vi) The marital status of the adults

10 in the family, including whether such

11 adults have never married, are widowed, or

12 are divorced.

13 ‘‘(vii) The race and educational status

14 of each adult in the family.

15 ‘‘(viii) The race and educational sta16 tus of each child in the family.

17 ‘‘(ix) Whether the family received sub18 sidized housing, medical assistance under

19 the State plan approved under title XIX,

20 food stamps, or subsidized child care, and

21 if the latter 2, the amount received.

22 ‘‘(x) The number of months that the

23 family has received each type of assistance

24 under the program.
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1 ‘‘(xi) If the adults participated in, and

2 the number of hours per week of participa3 tion in, the following activities:

4 ‘‘(I) Education.

5 ‘‘(II) Subsidized private sector

6 employment.

7 ‘‘(III) Unsubsidized employment.

8 ‘‘(IV) Public sector employment,

9 work experience, or community serv10 ice.

11 ‘‘(V) Job search.

12 ‘‘(VI) Job skills training or on13 the-job training.

14 ‘‘(VII) Vocational education.

15 ‘‘(xii) Information necessary to cal16 culate participation rates under section

17 407.

18 ‘‘(xiii) The type and amount of assist19 ance received under the program, including

20 the amount of and reason for any reduc21 tion of assistance (including sanctions).

22 ‘‘(xiv) From a sample of closed cases,

23 whether the family left the program, and if

24 so, whether the family left due to—

25 ‘‘(I) employment;
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1 ‘‘(II) marriage;

2 ‘‘(III) the prohibition set forth in

3 section 408(a)(8);

4 ‘‘(IV) sanction; or

5 ‘‘(V) State policy.

6 ‘‘(xv) Any amount of unearned income

7 received by any member of the family.

8 ‘‘(xvi) The citizenship of the members

9 of the family.

10 ‘‘(B) USE OF ESTIMATES.—

11 ‘‘(i) AUTHORITY.—A State may com12 ply with subparagraph (A) by submitting

13 an estimate which is obtained through the

14 use of scientifically acceptable sampling

15 methods approved by the Secretary.

16 ‘‘(ii) SAMPLING AND OTHER METH17 ODS.—The Secretary shall provide the

18 States with such case sampling plans and

19 data collection procedures as the Secretary

20 deems necessary to produce statistically

21 valid estimates of the performance of State

22 programs funded under this part. The Sec23 retary may develop and implement proce24 dures for verifying the quality of data sub25 mitted by the States.
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1 ‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO

2 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—

3 The report required by paragraph (1) for a fiscal

4 quarter shall include a statement of the percentage

5 of the funds paid to the State under this part for

6 the quarter that are used to cover administrative

7 costs or overhead.

8 ‘‘(3) REPORT ON STATE EXPENDITURES ON

9 PROGRAMS FOR NEEDY FAMILIES.—The report re10 quired by paragraph (1) for a fiscal quarter shall in11 clude a statement of the total amount expended by

12 the State during the quarter on programs for needy

13 families.

14 ‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR15 TICIPATING IN WORK ACTIVITIES.—The report re16 quired by paragraph (1) for a fiscal quarter shall in17 clude the number of noncustodial parents in the

18 State who participated in work activities (as defined

19 in section 407(d)) during the quarter.

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

21 The report required by paragraph (1) for a fiscal

22 quarter shall include the total amount expended by

23 the State during the quarter to provide transitional

24 services to a family that has ceased to receive assist-
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1 ance under this part because of employment, along

2 with a description of such services.

3 ‘‘(6) REGULATIONS.—The Secretary shall pre4 scribe such regulations as may be necessary to de5 fine the data elements with respect to which reports

6 are required by this subsection.

7 ‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE

8 SECRETARY.—Not later than 6 months after the end of

9 fiscal year 1997, and each fiscal year thereafter, the Sec10 retary shall transmit to the Congress a report describ11 ing—

12 ‘‘(1) whether the States are meeting—

13 ‘‘(A) the participation rates described in

14 section 407(a); and

15 ‘‘(B) the objectives of—

16 ‘‘(i) increasing employment and earn17 ings of needy families, and child support

18 collections; and

19 ‘‘(ii) decreasing out-of-wedlock preg20 nancies and child poverty;

21 ‘‘(2) the demographic and financial characteris22 tics of families applying for assistance, families re23 ceiving assistance, and families that become ineli24 gible to receive assistance;
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1 ‘‘(3) the characteristics of each State program

2 funded under this part; and

3 ‘‘(4) the trends in employment and earnings of

4 needy families with minor children living at home.

5 ‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN6 DIAN TRIBES.

7 ‘‘(a) GRANTS FOR INDIAN TRIBES.—

8 ‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—

9 ‘‘(A) IN GENERAL.—For each of fiscal

10 years 1997, 1998, 1999, and 2000, the Sec11 retary shall pay to each Indian tribe that has

12 an approved tribal family assistance plan a trib13 al family assistance grant for the fiscal year in

14 an amount equal to the amount determined

15 under subparagraph (B), and shall reduce the

16 grant payable under section 403(a)(1) to any

17 State in which lies the service area or areas of

18 the Indian tribe by that portion of the amount

19 so determined that is attributable to expendi20 tures by the State.

21 ‘‘(B) AMOUNT DETERMINED.—

22 ‘‘(i) IN GENERAL.—The amount de23 termined under this subparagraph is an

24 amount equal to the total amount of the

25 Federal payments to a State or States
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1 under section 403 (as in effect during such

2 fiscal year) for fiscal year 1994 attrib3 utable to expenditures (other than child

4 care expenditures) by the State or States

5 under parts A and F (as so in effect) for

6 fiscal year 1994 for Indian families resid7 ing in the service area or areas identified

8 by the Indian tribe pursuant to subsection

9 (b)(1)(C) of this section.

10 ‘‘(ii) USE OF STATE SUBMITTED

11 DATA.—

12 ‘‘(I) IN GENERAL.—The Sec13 retary shall use State submitted data

14 to make each determination under

15 clause (i).

16 ‘‘(II) DISAGREEMENT WITH DE17 TERMINATION.—If an Indian tribe or

18 tribal organization disagrees with

19 State submitted data described under

20 subclause (I), the Indian tribe or trib21 al organization may submit to the

22 Secretary such additional information

23 as may be relevant to making the de24 termination under clause (i) and the

25 Secretary may consider such informa-
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1 tion before making such determina2 tion.

3 ‘‘(2) GRANTS FOR INDIAN TRIBES THAT RE4 CEIVED JOBS FUNDS.—

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

6 pay to each eligible Indian tribe for each of fis7 cal years 1996, 1997, 1998, 1999, and 2000 a

8 grant in an amount equal to the amount re9 ceived by the Indian tribe in fiscal year 1994

10 under section 482(i) (as in effect during fiscal

11 year 1994).

12 ‘‘(B) ELIGIBLE INDIAN TRIBE.—For pur13 poses of subparagraph (A), the term ‘eligible

14 Indian tribe’ means an Indian tribe or Alaska

15 Native organization that conducted a job oppor16 tunities and basic skills training program in fis17 cal year 1995 under section 482(i) (as in effect

18 during fiscal year 1995).

19 ‘‘(C) USE OF GRANT.—Each Indian tribe

20 to which a grant is made under this paragraph

21 shall use the grant for the purpose of operating

22 a program to make work activities available to

23 members of the Indian tribe.

24 ‘‘(D) APPROPRIATION.—Out of any money

25 in the Treasury of the United States not other-
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1 wise appropriated, there are appropriated

2 $7,638,474 for each fiscal year specified in sub3 paragraph (A) for grants under subparagraph

4 (A).

5 ‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—

6 ‘‘(1) IN GENERAL.—Any Indian tribe that de7 sires to receive a tribal family assistance grant shall

8 submit to the Secretary a 3-year tribal family assist9 ance plan that—

10 ‘‘(A) outlines the Indian tribe’s approach

11 to providing welfare-related services for the 3-

12 year period, consistent with this section;

13 ‘‘(B) specifies whether the welfare-related

14 services provided under the plan will be pro15 vided by the Indian tribe or through agree16 ments, contracts, or compacts with intertribal

17 consortia, States, or other entities;

18 ‘‘(C) identifies the population and service

19 area or areas to be served by such plan;

20 ‘‘(D) provides that a family receiving as21 sistance under the plan may not receive duplica22 tive assistance from other State or tribal pro23 grams funded under this part;

24 ‘‘(E) identifies the employment opportuni25 ties in or near the service area or areas of the
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1 Indian tribe and the manner in which the In2 dian tribe will cooperate and participate in en3 hancing such opportunities for recipients of as4 sistance under the plan consistent with any ap5 plicable State standards; and

6 ‘‘(F) applies the fiscal accountability provi7 sions of section 5(f)(1) of the Indian Self-De8 termination and Education Assistance Act (25

9 U.S.C. 450c(f)(1)), relating to the submission

10 of a single-agency audit report required by

11 chapter 75 of title 31, United States Code.

12 ‘‘(2) APPROVAL.—The Secretary shall approve

13 each tribal family assistance plan submitted in ac14 cordance with paragraph (1).

15 ‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this

16 section shall preclude the development and submis17 sion of a single tribal family assistance plan by the

18 participating Indian tribes of an intertribal consor19 tium.

20 ‘‘(c) MINIMUM WORK PARTICIPATION REQUIRE21 MENTS AND TIME LIMITS.—The Secretary, with the par22 ticipation of Indian tribes, shall establish for each Indian

23 tribe receiving a grant under this section minimum work

24 participation requirements, appropriate time limits for re-
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1 ceipt of welfare-related services under the grant, and pen2 alties against individuals—

3 ‘‘(1) consistent with the purposes of this sec4 tion;

5 ‘‘(2) consistent with the economic conditions

6 and resources available to each tribe; and

7 ‘‘(3) similar to comparable provisions in section

8 407(d).

9 ‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec10 tion shall preclude an Indian tribe from seeking emergency

11 assistance from any Federal loan program or emergency

12 fund.

13 ‘‘(e) ACCOUNTABILITY.—Nothing in this section shall

14 be construed to limit the ability of the Secretary to main15 tain program funding accountability consistent with—

16 ‘‘(1) generally accepted accounting principles;

17 and

18 ‘‘(2) the requirements of the Indian Self-Deter19 mination and Education Assistance Act (25 U.S.C.

20 450 et seq.).

21 ‘‘(f) PENALTIES.—Subsections (a)(4), (b), and (e) of

22 section 409 shall apply to an Indian tribe with an ap23 proved tribal assistance plan in the same manner as such

24 subsections apply to a State.
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1 ‘‘(g) DATA COLLECTION AND REPORTING.—Section

2 411 shall apply to an Indian tribe with an approved tribal

3 family assistance plan.

4 ‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS5 KA.—

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

7 provision of this section, and except as provided in

8 paragraph (2), an Indian tribe in the State of Alas9 ka that receives a tribal family assistance grant

10 under this section shall use the grant to operate a

11 program in accordance with requirements com12 parable to the requirements applicable to the pro13 gram of the State of Alaska funded under this part.

14 Comparability of programs shall be established on

15 the basis of program criteria developed by the Sec16 retary in consultation with the State of Alaska and

17 such Indian tribes.

18 ‘‘(2) WAIVER.—An Indian tribe described in

19 paragraph (1) may apply to the appropriate State

20 authority to receive a waiver of the requirement of

21 paragraph (1).

22 ‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD23 IES.

24 ‘‘(a) RESEARCH.—The Secretary shall conduct re25 search on the benefits, effects, and costs of operating dif-
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1 ferent State programs funded under this part, including

2 time limits relating to eligibility for assistance. The re3 search shall include studies on the effects of different pro4 grams and the operation of such programs on welfare de5 pendency, illegitimacy, teen pregnancy, employment rates,

6 child well-being, and any other area the Secretary deems

7 appropriate. The Secretary shall also conduct research on

8 the costs and benefits of State activities under section

9 409.

10 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA11 TIVE APPROACHES TO REDUCING WELFARE DEPEND12 ENCY AND INCREASING CHILD WELL-BEING.—

13 ‘‘(1) IN GENERAL.—The Secretary may assist

14 States in developing, and shall evaluate, innovative

15 approaches for reducing welfare dependency and in16 creasing the well-being of minor children living at

17 home with respect to recipients of assistance under

18 programs funded under this part. The Secretary

19 may provide funds for training and technical assist20 ance to carry out the approaches developed pursuant

21 to this paragraph.

22 ‘‘(2) EVALUATIONS.—In performing the evalua23 tions under paragraph (1), the Secretary shall, to

24 the maximum extent feasible, use random assign25 ment as an evaluation methodology.
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1 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec2 retary shall develop innovative methods of disseminating

3 information on any research, evaluations, and studies con4 ducted under this section, including the facilitation of the

5 sharing of information and best practices among States

6 and localities through the use of computers and other

7 technologies.

8 ‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF

9 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

10 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec11 retary shall rank annually the States to which

12 grants are paid under section 403 in the order of

13 their success in placing recipients of assistance

14 under the State program funded under this part into

15 long-term private sector jobs, reducing the overall

16 welfare caseload, and, when a practicable method for

17 calculating this information becomes available, di18 verting individuals from formally applying to the

19 State program and receiving assistance. In ranking

20 States under this subsection, the Secretary shall

21 take into account the average number of minor chil22 dren living at home in families in the State that

23 have incomes below the poverty line and the amount

24 of funding provided each State for such families.
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1 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST

2 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

3 review the programs of the 3 States most recently

4 ranked highest under paragraph (1) and the 3

5 States most recently ranked lowest under paragraph

6 (1) that provide parents with work experience, as7 sistance in finding employment, and other work

8 preparation activities and support services to enable

9 the families of such parents to leave the program

10 and become self-sufficient.

11 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF

12 ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

13 ‘‘(1) ANNUAL RANKING OF STATES.—

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

15 annually rank States to which grants are made

16 under section 403 based on the following rank17 ing factors:

18 ‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA19 TIOS.—The ratio represented by—

20 ‘‘(I) the total number of out-of21 wedlock births in families receiving as22 sistance under the State program

23 under this part in the State for the

24 most recent fiscal year for which in25 formation is available; over
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1 ‘‘(II) the total number of births

2 in families receiving assistance under

3 the State program under this part in

4 the State for such year.

5 ‘‘(ii) NET CHANGES IN THE OUT-OF6 WEDLOCK RATIO.—The difference between

7 the ratio described in subparagraph (A)(i)

8 with respect to a State for the most recent

9 fiscal year for which such information is

10 available and the ratio with respect to the

11 State for the immediately preceding year.

12 ‘‘(2) ANNUAL REVIEW.—The Secretary shall re13 view the programs of the 5 States most recently

14 ranked highest under paragraph (1) and the 5

15 States most recently ranked the lowest under para16 graph (1).

17 ‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall

18 be eligible to receive funding to evaluate the State pro19 gram funded under this part if—

20 ‘‘(1) the State submits a proposal to the Sec21 retary for the evaluation;

22 ‘‘(2) the Secretary determines that the design

23 and approach of the evaluation is rigorous and is

24 likely to yield information that is credible and will

25 be useful to other States; and
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1 ‘‘(3) unless otherwise waived by the Secretary,

2 the State contributes to the cost of the evaluation,

3 from non-Federal sources, an amount equal to at

4 least 10 percent of the cost of the evaluation.

5 ‘‘(g) FUNDING OF STUDIES AND DEMONSTRA6 TIONS.—

7 ‘‘(1) IN GENERAL.—Out of any money in the

8 Treasury of the United States not otherwise appro9 priated, there are appropriated $15,000,000 for each

10 fiscal year specified in section 403(a)(1) for the pur11 pose of paying—

12 ‘‘(A) the cost of conducting the research

13 described in subsection (a);

14 ‘‘(B) the cost of developing and evaluating

15 innovative approaches for reducing welfare de16 pendency and increasing the well-being of minor

17 children under subsection (b);

18 ‘‘(C) the Federal share of any State-initi19 ated study approved under subsection (f); and

20 ‘‘(D) an amount determined by the Sec21 retary to be necessary to operate and evaluate

22 demonstration projects, relating to this part,

23 that are in effect or approved under section

24 1115 as of September 30, 1995, and are contin25 ued after such date.
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1 ‘‘(2) ALLOCATION.—Of the amount appro2 priated under paragraph (1) for a fiscal year—

3 ‘‘(A) 50 percent shall be allocated for the

4 purposes described in subparagraphs (A) and

5 (B) of paragraph (1), and

6 ‘‘(B) 50 percent shall be allocated for the

7 purposes described in subparagraphs (C) and

8 (D) of paragraph (1).

9 ‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.

10 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

11 expand the Survey of Income and Program Participation

12 as necessary to obtain such information as will enable in13 terested persons to evaluate the impact of the amendments

14 made by title I of the Bipartisan Welfare Reform Act of

15 1996 on a random national sample of recipients of assist16 ance under State programs funded under this part and

17 (as appropriate) other low income families, and in doing

18 so, shall pay particular attention to the issues of out-of19 wedlock birth, welfare dependency, the beginning and end

20 of welfare spells, and the causes of repeat welfare spells.

21 ‘‘(b) APPROPRIATION.—Out of any money in the

22 Treasury of the United States not otherwise appropriated,

23 there are appropriated $10,000,000 for each of fiscal

24 years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for
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1 payment to the Bureau of the Census to carry out sub2 section (a).

3 ‘‘SEC. 415. WAIVERS.

4 ‘‘(a) CONTINUATION OF WAIVERS.—

5 ‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT6 MENT OF WELFARE REFORM.—Except as provided

7 in paragraph (3), if any waiver granted to a State

8 under section 1115 or otherwise which relates to the

9 provision of assistance under a State plan under this

10 part (as in effect on September 30, 1995) is in ef11 fect as of the date of the enactment of the Biparti12 san Welfare Reform Act of 1996, the amendments

13 made by such Act shall not apply with respect to the

14 State before the expiration (determined without re15 gard to any extensions) of the waiver to the extent

16 such amendments are inconsistent with the waiver.

17 ‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex18 cept as provided in paragraph (3), if any waiver

19 granted to a State under section 1115 or otherwise

20 which relates to the provision of assistance under a

21 State plan under this part (as in effect on Septem22 ber 30, 1995) is submitted to the Secretary before

23 the date of the enactment of the Bipartisan Welfare

24 Reform Act of 1996 and approved by the Secretary

25 before the effective date of this title, and the State
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1 demonstrates to the satisfaction of the Secretary

2 that the waiver will not result in Federal expendi3 tures under title IV of this Act (as in effect without

4 regard to the amendments made by the Bipartisan

5 Welfare Reform Act of 1996) that are greater than

6 would occur in the absence of the waiver, such

7 amendments shall not apply with respect to the

8 State before the expiration (determined without re9 gard to any extensions) of the waiver to the extent

10 such amendments are inconsistent with the waiver.

11 ‘‘(3) FINANCING LIMITATION.—Notwithstand12 ing any other provision of law, beginning with fiscal

13 year 1996, a State operating under a waiver de14 scribed in paragraph (1) shall be entitled to payment

15 under section 403 for the fiscal year, in lieu of any

16 other payment provided for in the waiver.

17 ‘‘(b) STATE OPTION TO TERMINATE WAIVER.—

18 ‘‘(1) IN GENERAL.—A State may terminate a

19 waiver described in subsection (a) before the expira20 tion of the waiver.

21 ‘‘(2) REPORT.—A State which terminates a

22 waiver under paragraph (1) shall submit a report to

23 the Secretary summarizing the waiver and any avail24 able information concerning the result or effect of

25 the waiver.
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1 ‘‘(3) HOLD HARMLESS PROVISION.—

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

3 other provision of law, a State that, not later

4 than the date described in subparagraph (B),

5 submits a written request to terminate a waiver

6 described in subsection (a) shall be held harm7 less for accrued cost neutrality liabilities in8 curred under the waiver.

9 ‘‘(B) DATE DESCRIBED.—The date de10 scribed in this subparagraph is the later of—

11 ‘‘(i) January 1, 1996; or

12 ‘‘(ii) 90 days following the adjourn13 ment of the first regular session of the

14 State legislature that begins after the date

15 of the enactment of the Bipartisan Welfare

16 Reform Act of 1996.

17 ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT

18 WAIVERS.—The Secretary shall encourage any State oper19 ating a waiver described in subsection (a) to continue the

20 waiver and to evaluate, using random sampling and other

21 characteristics of accepted scientific evaluations, the result

22 or effect of the waiver.

23 ‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A

24 State may elect to continue 1 or more individual waivers

25 described in subsection (a).
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1 ‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

2 ‘‘The programs under this part and part D shall be

3 administered by an Assistant Secretary for Family Sup4 port within the Department of Health and Human Serv5 ices, who shall be appointed by the President, by and with

6 the advice and consent of the Senate, and who shall be

7 in addition to any other Assistant Secretary of Health and

8 Human Services provided for by law.

9 ‘‘SEC. 417. DEFINITIONS.

10 ‘‘As used in this part:

11 ‘‘(1) ADULT.—The term ‘adult’ means an indi12 vidual who is not a minor child.

13 ‘‘(2) MINOR CHILD.—The term ‘minor child’

14 means an individual who—

15 ‘‘(A) has not attained 18 years of age; or

16 ‘‘(B) has not attained 19 years of age and

17 is a full-time student in a secondary school (or

18 in the equivalent level of vocational or technical

19 training).

20 ‘‘(3) FISCAL YEAR.—The term ‘fiscal year’

21 means any 12-month period ending on September 30

22 of a calendar year.

23 ‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA24 NIZATION.—

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

26 subparagraph (B), the terms ‘Indian’, ‘Indian
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1 tribe’, and ‘tribal organization’ have the mean2 ing given such terms by section 4 of the Indian

3 Self-Determination and Education Assistance

4 Act (25 U.S.C. 450b).

5 ‘‘(B) SPECIAL RULE FOR INDIAN TRIBES

6 IN ALASKA.—The term ‘Indian tribe’ means,

7 with respect to the State of Alaska, only the

8 Metlakatla Indian Community of the Annette

9 Islands Reserve and the following Alaska Native

10 regional nonprofit corporations:

11 ‘‘(i) Arctic Slope Native Association.

12 ‘‘(ii) Kawerak, Inc.

13 ‘‘(iii) Maniilaq Association.

14 ‘‘(iv) Association of Village Council

15 Presidents.

16 ‘‘(v) Tanana Chiefs Conference.

17 ‘‘(vi) Cook Inlet Tribal Council.

18 ‘‘(vii) Bristol Bay Native Association.

19 ‘‘(viii) Aleutian and Pribilof Island

20 Association.

21 ‘‘(ix) Chugachmuit.

22 ‘‘(x) Tlingit Haida Central Council.

23 ‘‘(xi) Kodiak Area Native Association.

24 ‘‘(xii) Copper River Native Associa25 tion.
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1 ‘‘(5) STATE.—Except as otherwise specifically

2 provided, the term ‘State’ means the 50 States of

3 the United States, the District of Columbia, the

4 Commonwealth of Puerto Rico, the United States

5 Virgin Islands, Guam, and American Samoa.’’.

6 SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELI7 GIOUS, OR PRIVATE ORGANIZATIONS.

8 (a) IN GENERAL.—

9 (1) STATE OPTIONS.—A State may—

10 (A) administer and provide services under

11 the programs described in subparagraphs (A)

12 and (B)(i) of paragraph (2) through contracts

13 with charitable, religious, or private organiza14 tions; and

15 (B) provide beneficiaries of assistance

16 under the programs described in subparagraphs

17 (A) and (B)(ii) of paragraph (2) with certifi18 cates, vouchers, or other forms of disbursement

19 which are redeemable with such organizations.

20 (2) PROGRAMS DESCRIBED.—The programs de21 scribed in this paragraph are the following pro22 grams:

23 (A) A State program funded under part A

24 of title IV of the Social Security Act (as amend25 ed by section 103 of this Act).
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1 (B) Any other program established or

2 modified under title I, II, or VI of this Act,

3 that—

4 (i) permits contracts with organiza5 tions; or

6 (ii) permits certificates, vouchers, or

7 other forms of disbursement to be provided

8 to beneficiaries, as a means of providing

9 assistance.

10 (b) RELIGIOUS ORGANIZATIONS.—The purpose of

11 this section is to allow States to contract with religious

12 organizations, or to allow religious organizations to accept

13 certificates, vouchers, or other forms of disbursement

14 under any program described in subsection (a)(2), on the

15 same basis as any other nongovernmental provider without

16 impairing the religious character of such organizations,

17 and without diminishing the religious freedom of bene18 ficiaries of assistance funded under such program.

19 (c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA20 NIZATIONS.—In the event a State exercises its authority

21 under subsection (a), religious organizations are eligible,

22 on the same basis as any other private organization, as

23 contractors to provide assistance, or to accept certificates,

24 vouchers, or other forms of disbursement, under any pro25 gram described in subsection (a)(2) so long as the pro-
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1 grams are implemented consistent with the Establishment

2 Clause of the United States Constitution. Except as pro3 vided in subsection (k), neither the Federal Government

4 nor a State receiving funds under such programs shall dis5 criminate against an organization which is or applies to

6 be a contractor to provide assistance, or which accepts cer7 tificates, vouchers, or other forms of disbursement, on the

8 basis that the organization has a religious character.

9 (d) RELIGIOUS CHARACTER AND FREEDOM.—

10 (1) RELIGIOUS ORGANIZATIONS.—A religious

11 organization with a contract described in subsection

12 (a)(1)(A), or which accepts certificates, vouchers, or

13 other forms of disbursement under subsection

14 (a)(1)(B), shall retain its independence from Fed15 eral, State, and local governments, including such

16 organization’s control over the definition, develop17 ment, practice, and expression of its religious beliefs.

18 (2) ADDITIONAL SAFEGUARDS.—Neither the

19 Federal Government nor a State shall require a reli20 gious organization to—

21 (A) alter its form of internal governance;

22 or

23 (B) remove religious art, icons, scripture,

24 or other symbols;
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1 in order to be eligible to contract to provide assist2 ance, or to accept certificates, vouchers, or other

3 forms of disbursement, funded under a program de4 scribed in subsection (a)(2).

5 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—

6 (1) IN GENERAL.—If an individual described in

7 paragraph (2) has an objection to the religious char8 acter of the organization or institution from which

9 the individual receives, or would receive, assistance

10 funded under any program described in subsection

11 (a)(2), the State in which the individual resides shall

12 provide such individual (if otherwise eligible for such

13 assistance) within a reasonable period of time after

14 the date of such objection with assistance from an

15 alternative provider that is accessible to the individ16 ual and the value of which is not less than the value

17 of the assistance which the individual would have re18 ceived from such organization.

19 (2) INDIVIDUAL DESCRIBED.—An individual de20 scribed in this paragraph is an individual who re21 ceives, applies for, or requests to apply for, assist22 ance under a program described in subsection (a)(2).

23 (f) EMPLOYMENT PRACTICES.—A religious organiza24 tion’s exemption provided under section 702 of the Civil

25 Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding em-
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1 ployment practices shall not be affected by its participa2 tion in, or receipt of funds from, programs described in

3 subsection (a)(2).

4 (g) NONDISCRIMINATION AGAINST BENE5 FICIARIES.—Except as otherwise provided in law, a reli6 gious organization shall not discriminate against an indi7 vidual in regard to rendering assistance funded under any

8 program described in subsection (a)(2) on the basis of reli9 gion, a religious belief, or refusal to actively participate

10 in a religious practice.

11 (h) FISCAL ACCOUNTABILITY.—

12 (1) IN GENERAL.—Except as provided in para13 graph (2), any religious organization contracting to

14 provide assistance funded under any program de15 scribed in subsection (a)(2) shall be subject to the

16 same regulations as other contractors to account in

17 accord with generally accepted auditing principles

18 for the use of such funds provided under such pro19 grams.

20 (2) LIMITED AUDIT.—If such organization seg21 regates Federal funds provided under such programs

22 into separate accounts, then only the financial as23 sistance provided with such funds shall be subject to

24 audit.
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1 (i) COMPLIANCE.—Any party which seeks to enforce

2 its rights under this section may assert a civil action for

3 injunctive relief exclusively in an appropriate State court

4 against the entity or agency that allegedly commits such

5 violation.

6 (j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN

7 PURPOSES.—No funds provided directly to institutions or

8 organizations to provide services and administer programs

9 under subsection (a)(1)(A) shall be expended for sectarian

10 worship, instruction, or proselytization.

11 (k) PREEMPTION.—Nothing in this section shall be

12 construed to preempt any provision of a State constitution

13 or State statute that prohibits or restricts the expenditure

14 of State funds in or by religious organizations.

15 SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

16 CAREGIVERS FOR THEIR GRANDCHILDREN.

17 (a) IN GENERAL.—Not later than 90 days after the

18 date of the enactment of this Act, the Secretary of Com19 merce, in carrying out section 141 of title 13, United

20 States Code, shall expand the data collection efforts of the

21 Bureau of the Census (in this section referred to as the

22 ‘‘Bureau’’) to enable the Bureau to collect statistically sig23 nificant data, in connection with its decennial census and

24 its mid-decade census, concerning the growing trend of
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1 grandparents who are the primary caregivers for their

2 grandchildren.

3 (b) EXPANDED CENSUS QUESTION.—In carrying out

4 subsection (a), the Secretary of Commerce shall expand

5 the Bureau’s census question that details households

6 which include both grandparents and their grandchildren.

7 The expanded question shall be formulated to distinguish

8 between the following households:

9 (1) A household in which a grandparent tempo10 rarily provides a home for a grandchild for a period

11 of weeks or months during periods of parental dis12 tress.

13 (2) A household in which a grandparent pro14 vides a home for a grandchild and serves as the pri15 mary caregiver for the grandchild.

16 SEC. 106. REPORT ON DATA PROCESSING.

17 (a) IN GENERAL.—Within 6 months after the date

18 of the enactment of this Act, the Secretary of Health and

19 Human Services shall prepare and submit to the Congress

20 a report on—

21 (1) the status of the automated data processing

22 systems operated by the States to assist manage23 ment in the administration of State programs under

24 part A of title IV of the Social Security Act (wheth25 er in effect before or after October 1, 1995); and
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1 (2) what would be required to establish a sys2 tem capable of—

3 (A) tracking participants in public pro4 grams over time; and

5 (B) checking case records of the States to

6 determine whether individuals are participating

7 in public programs of 2 or more States.

8 (b) PREFERRED CONTENTS.—The report required by

9 subsection (a) should include—

10 (1) a plan for building on the automated data

11 processing systems of the States to establish a sys12 tem with the capabilities described in subsection

13 (a)(2); and

14 (2) an estimate of the amount of time required

15 to establish such a system and of the cost of estab16 lishing such a system.

17 SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

18 (a) STUDY.—The Secretary shall, in cooperation with

19 the States, study and analyze outcomes measures for eval20 uating the success of the States in moving individuals out

21 of the welfare system through employment as an alter22 native to the minimum participation rates described in

23 section 407 of the Social Security Act. The study shall

24 include a determination as to whether such alternative

25 outcomes measures should be applied on a national or a
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1 State-by-State basis and a preliminary assessment of the

2 effects of section 409(a)(5)(C) of such Act.

3 (b) REPORT.—Not later than September 30, 1998,

4 the Secretary shall submit to the Committee on Finance

5 of the Senate and the Committee on Ways and Means of

6 the House of Representatives a report containing the find7 ings of the study required by subsection (a).

8 SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SE9 CURITY ACT.

10 (a) AMENDMENTS TO TITLE II.—

11 (1) Section 205(c)(2)(C)(vi) (42 U.S.C.

12 405(c)(2)(C)(vi)), as so redesignated by section

13 321(a)(9)(B) of the Social Security Independence

14 and Program Improvements Act of 1994, is amend15 ed—

16 (A) by inserting ‘‘an agency administering

17 a program funded under part A of title IV or’’

18 before ‘‘an agency operating’’; and

19 (B) by striking ‘‘A or D of title IV of this

20 Act’’ and inserting ‘‘D of such title’’.

21 (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is

22 amended by inserting ‘‘under a State program fund23 ed under’’ before ‘‘part A of title IV’’.

24 (b) AMENDMENT TO PART B OF TITLE IV.—Section

25 422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking
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1 ‘‘under the State plan approved’’ and inserting ‘‘under the

2 State program funded.’’.

3 (c) AMENDMENTS TO PART D OF TITLE IV.—

4 (1) Section 451 (42 U.S.C. 651) is amended by

5 striking ‘‘aid’’ and inserting ‘‘assistance under a

6 State program funded’’.

7 (2) Section 452(a)(10)(C) (42 U.S.C.

8 652(a)(10)(C)) is amended—

9 (A) by striking ‘‘aid to families with de10 pendent children’’ and inserting ‘‘assistance

11 under a State program funded under part A’’;

12 (B) by striking ‘‘such aid’’ and inserting

13 ‘‘such assistance’’; and

14 (C) by striking ‘‘under section 402(a)(26)

15 or’’ and inserting ‘‘pursuant to section

16 408(a)(4) or under section’’.

17 (3) Section 452(a)(10)(F) (42 U.S.C.

18 652(a)(10)(F)) is amended—

19 (A) by striking ‘‘aid under a State plan ap20 proved’’ and inserting ‘‘assistance under a State

21 program funded’’; and

22 (B) by striking ‘‘in accordance with the

23 standards referred to in section

24 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

25 State’’.
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1 (4) Section 452(b) (42 U.S.C. 652(b)) is

2 amended in the first sentence by striking ‘‘aid under

3 the State plan approved under part A’’ and inserting

4 ‘‘assistance under the State program funded under

5 part A’’.

6 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

7 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

8 and inserting ‘‘1115(b)’’.

9 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

10 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

11 being paid under the State’s plan approved under

12 part A or E’’ and inserting ‘‘assistance is being pro13 vided under the State program funded under part

14 A’’.

15 (7) Section 452(g)(2)(A) (42 U.S.C.

16 652(g)(2)(A)) is amended in the matter following

17 clause (iii) by striking ‘‘aid was being paid under the

18 State’s plan approved under part A or E’’ and in19 serting ‘‘assistance was being provided under the

20 State program funded under part A’’.

21 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

22 amended in the matter following subparagraph

23 (B)—

24 (A) by striking ‘‘who is a dependent child’’

25 and inserting ‘‘with respect to whom assistance
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1 is being provided under the State program

2 funded under part A’’;

3 (B) by inserting ‘‘by the State agency ad4 ministering the State plan approved under this

5 part’’ after ‘‘found’’; and

6 (C) by striking ‘‘under section 402(a)(26)’’

7 and inserting ‘‘with the State in establishing

8 paternity’’.

9 (9) Section 452(h) (42 U.S.C. 652(h)) is

10 amended by striking ‘‘under section 402(a)(26)’’ and

11 inserting ‘‘pursuant to section 408(a)(4)’’.

12 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

13 amended by striking ‘‘aid under part A of this title’’

14 and inserting ‘‘assistance under a State program

15 funded under part A’’.

16 (11) Section 454(5)(A) (42 U.S.C. 654(5)(A))

17 is amended—

18 (A) by striking ‘‘under section 402(a)(26)’’

19 and inserting ‘‘pursuant to section 408(a)(4)’’;

20 and

21 (B) by striking ‘‘; except that this para22 graph shall not apply to such payments for any

23 month following the first month in which the

24 amount collected is sufficient to make such

25 family ineligible for assistance under the State
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1 plan approved under part A;’’ and inserting a

2 comma.

3 (12) Section 454(6)(D) (42 U.S.C. 654(6)(D))

4 is amended by striking ‘‘aid under a State plan ap5 proved’’ and inserting ‘‘assistance under a State pro6 gram funded’’.

7 (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is

8 amended by striking ‘‘under section 402(a)(26)’’.

9 (14) Section 466(a)(3)(B) (42 U.S.C.

10 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’

11 and inserting ‘‘408(a)(4)’’.

12 (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

13 amended by striking ‘‘aid’’ and inserting ‘‘assistance

14 under a State program funded’’.

15 (16) Section 469(a) (42 U.S.C. 669(a)) is

16 amended—

17 (A) by striking ‘‘aid under plans approved’’

18 and inserting ‘‘assistance under State programs

19 funded’’; and

20 (B) by striking ‘‘such aid’’ and inserting

21 ‘‘such assistance’’.

22 (d) AMENDMENTS TO PART E OF TITLE IV.—

23 (1) Section 470 (42 U.S.C. 670) is amended—

24 (A) by striking ‘‘would be’’ and inserting

25 ‘‘would have been’’; and
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1 (B) by inserting ‘‘(as such plan was in ef2 fect on March 1, 1996)’’ after ‘‘part A’’.

3 (2) Section 471(17) (42 U.S.C. 671(17)) is

4 amended by striking ‘‘plans approved under parts A

5 and D’’ and inserting ‘‘program funded under part

6 A and plan approved under part D’’.

7 (3) Section 472(a) (42 U.S.C. 672(a)) is

8 amended—

9 (A) in the matter preceding paragraph

10 (1)—

11 (i) by striking ‘‘would meet’’ and in12 serting ‘‘would have met’’;

13 (ii) by inserting ‘‘(as such sections

14 were in effect on June 1, 1995)’’ after

15 ‘‘407’’; and

16 (iii) by inserting ‘‘(as so in effect)’’

17 after ‘‘406(a)’’; and

18 (B) in paragraph (4)—

19 (i) in subparagraph (A)—

20 (I) by inserting ‘‘would have’’

21 after ‘‘(A)’’; and

22 (II) by inserting ‘‘(as in effect on

23 June 1, 1995)’’ after ‘‘section 402’’;

24 and
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1 (ii) in subparagraph (B)(ii), by insert2 ing ‘‘(as in effect on June 1, 1995)’’ after

3 ‘‘406(a)’’.

4 (4) Section 472(h) (42 U.S.C. 672(h)) is

5 amended to read as follows:

6 ‘‘(h)(1) For purposes of title XIX, any child with re7 spect to whom foster care maintenance payments are

8 made under this section shall be deemed to be a dependent

9 child as defined in section 406 (as in effect as of June

10 1, 1995) and shall be deemed to be a recipient of aid to

11 families with dependent children under part A of this title

12 (as so in effect). For purposes of title XX, any child with

13 respect to whom foster care maintenance payments are

14 made under this section shall be deemed to be a minor

15 child in a needy family under a State program funded

16 under part A and shall be deemed to be a recipient of

17 assistance under such part.

18 ‘‘(2) For purposes of paragraph (1), a child whose

19 costs in a foster family home or child care institution are

20 covered by the foster care maintenance payments being

21 made with respect to the child’s minor parent, as provided

22 in section 475(4)(B), shall be considered a child with re23 spect to whom foster care maintenance payments are

24 made under this section.’’.
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1 (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is

2 amended—

3 (A) in subparagraph (A)(i)—

4 (i) by inserting ‘‘(as such sections

5 were in effect on June 1, 1995)’’ after

6 ‘‘407’’;

7 (ii) by inserting ‘‘(as so in effect)’’

8 after ‘‘specified in section 406(a)’’; and

9 (iii) by inserting ‘‘(as such section was

10 in effect on June 1, 1995)’’ after ‘‘403’’;

11 (B) in subparagraph (B)(i)—

12 (i) by inserting ‘‘would have’’ after

13 ‘‘(B)(i)’’; and

14 (ii) by inserting ‘‘(as in effect on June

15 1, 1995)’’ after ‘‘section 402’’; and

16 (C) in subparagraph (B)(ii)(II), by insert17 ing ‘‘(as in effect on June 1, 1995)’’ after

18 ‘‘406(a)’’.

19 (6) Section 473(b) (42 U.S.C. 673(b)) is

20 amended to read as follows:

21 ‘‘(b)(1) For purposes of title XIX, any child who is

22 described in paragraph (3) shall be deemed to be a de23 pendent child as defined in section 406 (as in effect as

24 of June 1, 1995) and shall be deemed to be a recipient

25 of aid to families with dependent children under part A
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1 of this title (as so in effect) in the State where such child

2 resides.

3 ‘‘(2) For purposes of title XX, any child who is de4 scribed in paragraph (3) shall be deemed to be a minor

5 child in a needy family under a State program funded

6 under part A and shall be deemed to be a recipient of

7 assistance under such part.

8 ‘‘(3) A child described in this paragraph is any

9 child—

10 ‘‘(A)(i) who is a child described in subsection

11 (a)(2), and

12 ‘‘(ii) with respect to whom an adoption assist13 ance agreement is in effect under this section

14 (whether or nor adoption assistance payments are

15 provided under the agreement or are being made

16 under this section), including any such child who has

17 been placed for adoption in accordance with applica18 ble State and local law (whether or not an interlocu19 tory or other judicial decree of adoption has been is20 sued), or

21 ‘‘(B) with respect to whom foster care mainte22 nance payments are being made under section 472.

23 ‘‘(4) For purposes of paragraphs (1) and (2), a child

24 whose costs in a foster family home or child-care institu25 tion are covered by the foster care maintenance payments
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1 being made with respect to the child’s minor parent, as

2 provided in section 475(4)(B), shall be considered a child

3 with respect to whom foster care maintenance payments

4 are being made under section 472.’’.

5 (e) REPEAL OF PART F OF TITLE IV.—Part F of

6 title IV (42 U.S.C. 681–687) is repealed.

7 (f) AMENDMENT TO TITLE X.—Section 1002(a)(7)

8 (42 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to

9 families with dependent children under the State plan ap10 proved under section 402 of this Act’’ and inserting ‘‘as11 sistance under a State program funded under part A of

12 title IV’’.

13 (g) AMENDMENTS TO TITLE XI.—

14 (1) Section 1108 (42 U.S.C. 1308) is amend15 ed—

16 (A) by redesignating subsection (c) as sub17 section (g);

18 (B) by striking all that precedes subsection

19 (c) and inserting the following:

20 ‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE

21 VIRGIN ISLANDS, GUAM, AND AMERICAN

22 SAMOA; LIMITATION ON TOTAL PAYMENTS.

23 ‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH

24 TERRITORY.—Notwithstanding any other provision of this

25 Act, the total amount certified by the Secretary of Health
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1 and Human Services under titles I, X, XIV, and XVI,

2 under parts A and B of title IV, and under subsection

3 (b) of this section, for payment to any territory for a fiscal

4 year shall not exceed the ceiling amount for the territory

5 for the fiscal year.

6 ‘‘(b) ENTITLEMENT TO MATCHING GRANT.—

7 ‘‘(1) IN GENERAL.—Each territory shall be en8 titled to receive from the Secretary for each fiscal

9 year a grant in an amount equal to 75 percent of

10 the amount (if any) by which—

11 ‘‘(A) the total expenditures of the territory

12 during the fiscal year under the territory pro13 grams funded under parts A and B of title IV;

14 exceeds

15 ‘‘(B) the sum of—

16 ‘‘(i) the total amount required to be

17 paid to the territory (other than with re18 spect to child care) under former section

19 403 (as in effect on September 30, 1995)

20 for fiscal year 1995, which shall be deter21 mined by applying subparagraphs (C) and

22 (D) of section 403(a)(1) to the territory;

23 ‘‘(ii) the total amount required to be

24 paid to the territory under former section
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1 434 (as so in effect) for fiscal year 1995;

2 and

3 ‘‘(iii) the total amount expended by

4 the territory during fiscal year 1995 pur5 suant to parts A, B, and F of title IV (as

6 so in effect), other than for child care.

7 ‘‘(2) USE OF GRANT.—Any territory to which a

8 grant is made under paragraph (1) may expend the

9 amount under any program operated or funded

10 under any provision of law specified in subsection

11 (a).

12 ‘‘(c) DEFINITIONS.—As used in this section:

13 ‘‘(1) TERRITORY.—The term ‘territory’ means

14 Puerto Rico, the Virgin Islands, Guam, and Amer15 ican Samoa.

16 ‘‘(2) CEILING AMOUNT.—The term ‘ceiling

17 amount’ means, with respect to a territory and a fis18 cal year, the mandatory ceiling amount with respect

19 to the territory plus the discretionary ceiling amount

20 with respect to the territory, reduced for the fiscal

21 year in accordance with subsection (f).

22 ‘‘(3) MANDATORY CEILING AMOUNT.—The term

23 ‘mandatory ceiling amount’ means—

24 ‘‘(A) $105,538,000 with respect to Puerto

25 Rico;
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1 ‘‘(B) $4,902,000 with respect to Guam;

2 ‘‘(C) $3,742,000 with respect to the Virgin

3 Islands; and

4 ‘‘(D) $1,122,000 with respect to American

5 Samoa.

6 ‘‘(4) DISCRETIONARY CEILING AMOUNT.—The

7 term ‘discretionary ceiling amount’ means, with re8 spect to a territory and a fiscal year, the total

9 amount appropriated pursuant to subsection (d)(3)

10 for the fiscal year for payment to the territory.

11 ‘‘(5) TOTAL AMOUNT EXPENDED BY THE TER12 RITORY.—The term ‘total amount expended by the

13 territory’—

14 ‘‘(A) does not include expenditures during

15 the fiscal year from amounts made available by

16 the Federal Government; and

17 ‘‘(B) when used with respect to fiscal year

18 1995, also does not include—

19 ‘‘(i) expenditures during fiscal year

20 1995 under subsection (g) or (i) of section

21 402 (as in effect on September 30, 1995);

22 or

23 ‘‘(ii) any expenditures during fiscal

24 year 1995 for which the territory (but for

25 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 (C) by striking subsections (d) and (e).

22 (2) Section 1109 (42 U.S.C. 1309) is amended

23 by striking ‘‘or part A of title IV,’’.

24 (3) Section 1115 (42 U.S.C. 1315) is amend25 ed—
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1 (A) in subsection (a)(2)—

2 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

3 (ii) by striking ‘‘403,’’;

4 (iii) by striking the period at the end

5 and inserting ‘‘, and’’; and

6 (iv) by adding at the end the following

7 new subparagraph:

8 ‘‘(B) costs of such project which would not oth9 erwise be a permissible use of funds under part A

10 of title IV and which are not included as part of the

11 costs of projects under section 1110, shall to the ex12 tent and for the period prescribed by the Secretary,

13 be regarded as a permissible use of funds under

14 such part.’’; and

15 (B) in subsection (c)(3), by striking

16 ‘‘under the program of aid to families with de17 pendent children’’ and inserting ‘‘part A of

18 such title’’.

19 (4) Section 1116 (42 U.S.C. 1316) is amend20 ed—

21 (A) in each of subsections (a)(1), (b), and

22 (d), by striking ‘‘or part A of title IV,’’; and

23 (B) in subsection (a)(3), by striking

24 ‘‘404,’’.
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1 (5) Section 1118 (42 U.S.C. 1318) is amend2 ed—

3 (A) by striking ‘‘403(a),’’;

4 (B) by striking ‘‘and part A of title IV,’’;

5 and

6 (C) by striking ‘‘, and shall, in the case of

7 American Samoa, mean 75 per centum with re8 spect to part A of title IV’’.

9 (6) Section 1119 (42 U.S.C. 1319) is amend10 ed—

11 (A) by striking ‘‘or part A of title IV’’; and

12 (B) by striking ‘‘403(a),’’.

13 (7) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

14 amended by striking ‘‘or part A of title IV,’’.

15 (8) Section 1136 (42 U.S.C. 1320b–6) is re16 pealed.

17 (9) Section 1137 (42 U.S.C. 1320b–7) is

18 amended—

19 (A) in subsection (b), by striking para20 graph (1) and inserting the following:

21 ‘‘(1) any State program funded under part A of

22 title IV of this Act;’’; and

23 (B) in subsection (d)(1)(B)—
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1 (i) by striking ‘‘In this subsection—’’

2 and all that follows through ‘‘(ii) in’’ and

3 inserting ‘‘In this subsection, in’’;

4 (ii) by redesignating subclauses (I),

5 (II), and (III) as clauses (i), (ii), and (iii);

6 and

7 (iii) by moving such redesignated ma8 terial 2 ems to the left.

9 (h) AMENDMENT TO TITLE XIV.—Section

10 1402(a)(7) (42 U.S.C. 1352(a)(7)) is amended by striking

11 ‘‘aid to families with dependent children under the State

12 plan approved under section 402 of this Act’’ and insert13 ing ‘‘assistance under a State program funded under part

14 A of title IV’’.

15 (i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

16 RESPECT TO THE TERRITORIES.—Section 1602(a)(11),

17 as in effect without regard to the amendment made by

18 section 301 of the Social Security Amendments of 1972

19 (42 U.S.C. 1382 note), is amended by striking ‘‘aid under

20 the State plan approved’’ and inserting ‘‘assistance under

21 a State program funded’’.

22 (j) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

23 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42

24 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

25 a State program funded under part A of title IV,’’.
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1 (k) AMENDMENT TO TITLE XIX.—Section 1902(j)

2 (42 U.S.C. 1396a(j)) is amended by striking ‘‘1108(c)’’

3 and inserting ‘‘1108(g)’’.

4 SEC. 109. CONFORMING AMENDMENTS TO THE FOOD

5 STAMP ACT OF 1977 AND RELATED PROVI6 SIONS.

7 (a) Section 5 of the Food Stamp Act of 1977 (7

8 U.S.C. 2014) is amended—

9 (1) in the second sentence of subsection (a), by

10 striking ‘‘plan approved’’ and all that follows

11 through ‘‘title IV of the Social Security Act’’ and in12 serting ‘‘program funded under part A of title IV of

13 the Social Security Act (42 U.S.C. 601 et seq.)’’;

14 (2) in subsection (d)—

15 (A) in paragraph (5), by striking ‘‘assist16 ance to families with dependent children’’ and

17 inserting ‘‘assistance under a State program

18 funded’’; and

19 (B) by striking paragraph (13) and redes20 ignating paragraphs (14), (15), and (16) as

21 paragraphs (13), (14), and (15), respectively;

22 (3) in subsection (j), by striking ‘‘plan approved

23 under part A of title IV of such Act (42 U.S.C. 601

24 et seq.)’’ and inserting ‘‘program funded under part
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1 A of title IV of the Act (42 U.S.C. 601 et seq.)’’;

2 and

3 (4) by striking subsection (m).

4 (b) Section 6 of such Act (7 U.S.C. 2015) is amend5 ed—

6 (1) in subsection (c)(5), by striking ‘‘the State

7 plan approved’’ and inserting ‘‘the State program

8 funded’’; and

9 (2) in subsection (e)(6), by striking ‘‘aid to

10 families with dependent children’’ and inserting

11 ‘‘benefits under a State program funded’’.

12 (c) Section 16(g)(4) of such Act (7 U.S.C.

13 2025(g)(4)) is amended by striking ‘‘State plans under the

14 Aid to Families with Dependent Children Program under’’

15 and inserting ‘‘State programs funded under part A of’’.

16 (d) Section 17 of such Act (7 U.S.C. 2026) is amend17 ed—

18 (1) in the first sentence of subsection (b)(1)(A),

19 by striking ‘‘to aid to families with dependent chil20 dren under part A of title IV of the Social Security

21 Act’’ and inserting ‘‘or are receiving assistance

22 under a State program funded under part A of title

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

24 seq.)’’; and
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1 (2) in subsection (b)(3), by adding at the end

2 the following new subparagraph:

3 ‘‘(I) The Secretary may not grant a waiver

4 under this paragraph on or after October 1, 1995.

5 Any reference in this paragraph to a provision of

6 title IV of the Social Security Act shall be deemed

7 to be a reference to such provision as in effect on

8 September 30, 1995.’’;

9 (e) Section 20 of such Act (7 U.S.C. 2029) is amend10 ed—

11 (1) in subsection (a)(2)(B) by striking ‘‘operat12 ing—’’ and all that follows through ‘‘(ii) any other’’

13 and inserting ‘‘operating any’’; and

14 (2) in subsection (b)—

15 (A) in paragraph (1)—

16 (i) by striking ‘‘(b)(1) A household’’

17 and inserting ‘‘(b) A household’’; and

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

19 ‘‘training program’’ and inserting ‘‘activ20 ity’’;

21 (B) by striking paragraph (2); and

22 (C) by redesignating subparagraphs (A)

23 through (F) as paragraphs (1) through (6), re24 spectively.
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1 (f) Section 5(h)(1) of the Agriculture and Consumer

2 Protection Act of 1973 (Public Law 93–186; 7 U.S.C.

3 612c note) is amended by striking ‘‘the program for aid

4 to families with dependent children’’ and inserting ‘‘the

5 State program funded’’.

6 (g) Section 9 of the National School Lunch Act (42

7 U.S.C. 1758) is amended—

8 (1) in subsection (b)—

9 (A) in paragraph (2)(C)(ii)(II)—

10 (i) by striking ‘‘program for aid to

11 families with dependent children’’ and in12 serting ‘‘State program funded’’; and

13 (ii) by inserting before the period at

14 the end the following: ‘‘that the Secretary

15 determines complies with standards estab16 lished by the Secretary that ensure that

17 the standards under the State program are

18 comparable to or more restrictive than

19 those in effect on March 1, 1996’’; and

20 (B) in paragraph (6)—

21 (i) in subparagraph (A)(ii)—

22 (I) by striking ‘‘an AFDC assist23 ance unit (under the aid to families

24 with dependent children program au25 thorized’’ and inserting ‘‘a family
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1 (under the State program funded’’;

2 and

3 (II) by striking ‘‘, in a State’’

4 and all that follows through

5 ‘‘9902(2)))’’ and inserting ‘‘that the

6 Secretary determines complies with

7 standards established by the Secretary

8 that ensure that the standards under

9 the State program are comparable to

10 or more restrictive than those in effect

11 on March 1, 1996’’; and

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

13 ‘‘aid to families with dependent children’’

14 and inserting ‘‘assistance under the State

15 program funded under part A of title IV of

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

17 seq.) that the Secretary determines com18 plies with standards established by the

19 Secretary that ensure that the standards

20 under the State program are comparable

21 to or more restrictive than those in effect

22 on March 1, 1996’’; and

23 (2) in subsection (d)(2)(C)—
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1 (A) by striking ‘‘program for aid to fami2 lies with dependent children’’ and inserting

3 ‘‘State program funded’’; and

4 (B) by inserting before the period at the

5 end the following: ‘‘that the Secretary deter6 mines complies with standards established by

7 the Secretary that ensure that the standards

8 under the State program are comparable to or

9 more restrictive than those in effect on June 1,

10 1995’’.

11 (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition

12 Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amend13 ed—

14 (1) by striking ‘‘program for aid to families

15 with dependent children established’’ and inserting

16 ‘‘State program funded’’; and

17 (2) by inserting before the semicolon the follow18 ing: ‘‘that the Secretary determines complies with

19 standards established by the Secretary that ensure

20 that the standards under the State program are

21 comparable to or more restrictive than those in ef22 fect on June 1, 1995’’.

23 SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

24 (a) Subsection (b) of section 508 of the Unemploy25 ment Compensation Amendments of 1976 (42 U.S.C.
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1 603a; Public Law 94–566; 90 Stat. 2689) is amended to

2 read as follows:

3 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX4 PENSES.—For purposes of section 455 of the Social Secu5 rity Act, expenses incurred to reimburse State employment

6 offices for furnishing information requested of such of7 fices—

8 ‘‘(1) pursuant to the third sentence of section

9 3(a) of the Act entitled ‘An Act to provide for the

10 establishment of a national employment system and

11 for cooperation with the States in the promotion of

12 such system, and for other purposes’, approved June

13 6, 1933 (29 U.S.C. 49b(a)), or

14 ‘‘(2) by a State or local agency charged with

15 the duty of carrying a State plan for child support

16 approved under part D of title IV of the Social Se17 curity Act,

18 shall be considered to constitute expenses incurred in the

19 administration of such State plan.’’.

20 (b) Section 9121 of the Omnibus Budget Reconcili21 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

22 (c) Section 9122 of the Omnibus Budget Reconcili23 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

24 (d) Section 221 of the Housing and Urban-Rural Re25 covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
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1 ment under AFDC of certain rental payments for federally

2 assisted housing, is repealed.

3 (e) Section 159 of the Tax Equity and Fiscal Respon4 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.

5 (f) Section 202(d) of the Social Security Amendments

6 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

7 (g) Section 903 of the Stewart B. McKinney Home8 less Assistance Amendments Act of 1988 (42 U.S.C.

9 11381 note), relating to demonstration projects to reduce

10 number of AFDC families in welfare hotels, is amended—

11 (1) in subsection (a), by striking ‘‘aid to fami12 lies with dependent children under a State plan ap13 proved’’ and inserting ‘‘assistance under a State pro14 gram funded’’; and

15 (2) in subsection (c), by striking ‘‘aid to fami16 lies with dependent children in the State under a

17 State plan approved’’ and inserting ‘‘assistance in

18 the State under a State program funded’’.

19 (h) The Higher Education Act of 1965 (20 U.S.C.

20 1001 et seq.) is amended—

21 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

22 23(c)(3)), by striking ‘‘(Aid to Families with De23 pendent Children)’’; and

24 (2) in section 480(b)(2) (20 U.S.C.

25 1087vv(b)(2)), by striking ‘‘aid to families with de-
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1 pendent children under a State plan approved’’ and

2 inserting ‘‘assistance under a State program fund3 ed’’.

4 (i) The Carl D. Perkins Vocational and Applied Tech5 nology Education Act (20 U.S.C. 2301 et seq.) is amend6 ed—

7 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

8 2341(d)(3)(A)(ii)), by striking ‘‘the program for aid

9 to dependent children’’ and inserting ‘‘the State pro10 gram funded’’;

11 (2) in section 232(b)(2)(B) (20 U.S.C.

12 2341a(b)(2)(B)), by striking ‘‘the program for aid to

13 families with dependent children’’ and inserting ‘‘the

14 State program funded’’; and

15 (3) in section 521(14)(B)(iii) (20 U.S.C.

16 2471(14)(B)(iii)), by striking ‘‘the program for aid

17 to families with dependent children’’ and inserting

18 ‘‘the State program funded’’.

19 (j) The Elementary and Secondary Education Act of

20 1965 (20 U.S.C. 2701 et seq.) is amended—

21 (1) in section 1113(a)(5) (20 U.S.C.

22 6313(a)(5)), by striking ‘‘Aid to Families with De23 pendent Children Program’’ and inserting ‘‘State

24 program funded under part A of title IV of the So25 cial Security Act’’;
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1 (2) in section 1124(c)(5) (20 U.S.C.

2 6333(c)(5)), by striking ‘‘the program of aid to fam3 ilies with dependent children under a State plan ap4 proved under’’ and inserting ‘‘a State program fund5 ed under part A of’’; and

6 (3) in section 5203(b)(2) (20 U.S.C.

7 7233(b)(2))—

8 (A) in subparagraph (A)(xi), by striking

9 ‘‘Aid to Families with Dependent Children ben10 efits’’ and inserting ‘‘assistance under a State

11 program funded under part A of title IV of the

12 Social Security Act’’; and

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

14 ‘‘Aid to Families with Dependent Children’’ and

15 inserting ‘‘assistance under the State program

16 funded under part A of title IV of the Social

17 Security Act’’.

18 (k) Chapter VII of title I of Public Law 99–88 (25

19 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided

20 further, That general assistance payments made by the

21 Bureau of Indian Affairs shall be made—

22 ‘‘(1) after April 29, 1985, and before October

23 1, 1995, on the basis of Aid to Families with De24 pendent Children (AFDC) standards of need; and
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1 ‘‘(2) on and after October 1, 1995, on the basis

2 of standards of need established under the State

3 program funded under part A of title IV of the So4 cial Security Act,

5 except that where a State ratably reduces its AFDC or

6 State program payments, the Bureau shall reduce general

7 assistance payments in such State by the same percentage

8 as the State has reduced the AFDC or State program pay9 ment.’’.

10 (l) The Internal Revenue Code of 1986 (26 U.S.C.

11 1 et seq.) is amended—

12 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

13 striking all that follows ‘‘agency as’’ and inserting

14 ‘‘being eligible for financial assistance under part A

15 of title IV of the Social Security Act and as having

16 continually received such financial assistance during

17 the 90-day period which immediately precedes the

18 date on which such individual is hired by the em19 ployer.’’;

20 (2) in section 3304(a)(16) (26 U.S.C.

21 3304(a)(16)), by striking ‘‘eligibility for aid or serv22 ices,’’ and all that follows through ‘‘children ap23 proved’’ and inserting ‘‘eligibility for assistance, or

24 the amount of such assistance, under a State pro25 gram funded’’;
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1 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

2 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

3 dependent children provided under a State plan ap4 proved’’ and inserting ‘‘a State program funded’’;

5 (4) in section 6103(l)(10) (26 U.S.C.

6 6103(l)(10))—

7 (A) by striking ‘‘(c) or (d)’’ each place it

8 appears and inserting ‘‘(c), (d), or (e)’’; and

9 (B) by adding at the end of subparagraph

10 (B) the following new sentence: ‘‘Any return in11 formation disclosed with respect to section

12 6402(e) shall only be disclosed to officers and

13 employees of the State agency requesting such

14 information.’’;

15 (5) in section 6103(p)(4) (26 U.S.C.

16 6103(p)(4)), in the matter preceding subparagraph

17 (A)—

18 (A) by striking ‘‘(5), (10)’’ and inserting

19 ‘‘(5)’’; and

20 (B) by striking ‘‘(9), or (12)’’ and insert21 ing ‘‘(9), (10), or (12)’’;

22 (6) in section 6334(a)(11)(A) (26 U.S.C.

23 6334(a)(11)(A)), by striking ‘‘(relating to aid to

24 families with dependent children)’’;

25 (7) in section 6402 (26 U.S.C. 6402)—
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1 (A) in subsection (a), by striking ‘‘(c) and

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

3 (B) by redesignating subsections (e)

4 through (i) as subsections (f) through (j), re5 spectively; and

6 (C) by inserting after subsection (d) the

7 following:

8 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

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

10 any overpayment to be refunded to the person making the

11 overpayment shall be reduced (after reductions pursuant

12 to subsections (c) and (d), but before a credit against fu13 ture liability for an internal revenue tax) in accordance

14 with section 405(e) of the Social Security Act (concerning

15 recovery of overpayments to individuals under State plans

16 approved under part A of title IV of such Act).’’; and

17 (8) in section 7523(b)(3)(C) (26 U.S.C.

18 7523(b)(3)(C)), by striking ‘‘aid to families with de19 pendent children’’ and inserting ‘‘assistance under a

20 State program funded under part A of title IV of the

21 Social Security Act’’.

22 (m) Section 3(b) of the Wagner-Peyser Act (29

23 U.S.C. 49b(b)) is amended by striking ‘‘State plan ap24 proved under part A of title IV’’ and inserting ‘‘State pro25 gram funded under part A of title IV’’.
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1 (n) The Job Training Partnership Act (29 U.S.C.

2 1501 et seq.) is amended—

3 (1) in section 4(29)(A)(i) (29 U.S.C.

4 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et

5 seq.)’’;

6 (2) in section 106(b)(6)(C) (29 U.S.C.

7 1516(b)(6)(C)), by striking ‘‘State aid to families

8 with dependent children records,’’ and inserting

9 ‘‘records collected under the State program funded

10 under part A of title IV of the Social Security Act,’’;

11 (3) in section 121(b)(2) (29 U.S.C.

12 1531(b)(2))—

13 (A) by striking ‘‘the JOBS program’’ and

14 inserting ‘‘the work activities required under

15 title IV of the Social Security Act’’; and

16 (B) by striking the second sentence;

17 (4) in section 123(c) (29 U.S.C. 1533(c))—

18 (A) in paragraph (1)(E), by repealing

19 clause (vi); and

20 (B) in paragraph (2)(D), by repealing

21 clause (v);

22 (5) in section 203(b)(3) (29 U.S.C.

23 1603(b)(3)), by striking ‘‘, including recipients

24 under the JOBS program’’;
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1 (6) in subparagraphs (A) and (B) of section

2 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by

3 striking ‘‘(such as the JOBS program)’’ each place

4 it appears;

5 (7) in section 205(a) (29 U.S.C. 1605(a)), by

6 striking paragraph (4) and inserting the following:

7 ‘‘(4) the portions of title IV of the Social Secu8 rity Act relating to work activities;’’;

9 (8) in section 253 (29 U.S.C. 1632)—

10 (A) in subsection (b)(2), by repealing sub11 paragraph (C); and

12 (B) in paragraphs (1)(B) and (2)(B) of

13 subsection (c), by striking ‘‘the JOBS program

14 or’’ each place it appears;

15 (9) in section 264 (29 U.S.C. 1644)—

16 (A) in subparagraphs (A) and (B) of sub17 section (b)(1), by striking ‘‘(such as the JOBS

18 program)’’ each place it appears; and

19 (B) in subparagraphs (A) and (B) of sub20 section (d)(3), by striking ‘‘and the JOBS pro21 gram’’ each place it appears;

22 (10) in section 265(b) (29 U.S.C. 1645(b)), by

23 striking paragraph (6) and inserting the following:

24 ‘‘(6) the portion of title IV of the Social Secu25 rity Act relating to work activities;’’;
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1 (11) in the second sentence of section 429(e)

2 (29 U.S.C. 1699(e)), by striking ‘‘and shall be in an

3 amount that does not exceed the maximum amount

4 that may be provided by the State pursuant to sec5 tion 402(g)(1)(C) of the Social Security Act (42

6 U.S.C. 602(g)(1)(C))’’;

7 (12) in section 454(c) (29 U.S.C. 1734(c)), by

8 striking ‘‘JOBS and’’;

9 (13) in section 455(b) (29 U.S.C. 1735(b)), by

10 striking ‘‘the JOBS program,’’;

11 (14) in section 501(1) (29 U.S.C. 1791(1)), by

12 striking ‘‘aid to families with dependent children

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

14 (42 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance

15 under the State program funded under part A of

16 title IV of the Social Security Act’’;

17 (15) in section 506(1)(A) (29 U.S.C.

18 1791e(1)(A)), by striking ‘‘aid to families with de19 pendent children’’ and inserting ‘‘assistance under

20 the State program funded’’;

21 (16) in section 508(a)(2)(A) (29 U.S.C.

22 1791g(a)(2)(A)), by striking ‘‘aid to families with

23 dependent children’’ and inserting ‘‘assistance under

24 the State program funded’’; and
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1 (17) in section 701(b)(2)(A) (29 U.S.C.

2 1792(b)(2)(A))—

3 (A) in clause (v), by striking the semicolon

4 and inserting ‘‘; and’’; and

5 (B) by striking clause (vi).

6 (o) Section 3803(c)(2)(C)(iv) of title 31, United

7 States Code, is amended to read as follows:

8 ‘‘(iv) assistance under a State pro9 gram funded under part A of title IV of

10 the Social Security Act’’.

11 (p) Section 2605(b)(2)(A)(i) of the Low-Income

12 Home Energy Assistance Act of 1981 (42 U.S.C.

13 8624(b)(2)(A)(i)) is amended to read as follows:

14 ‘‘(i) assistance under the State pro15 gram funded under part A of title IV of

16 the Social Security Act;’’.

17 (q) Section 303(f)(2) of the Family Support Act of

18 1988 (42 U.S.C. 602 note) is amended—

19 (1) by striking ‘‘(A)’’; and

20 (2) by striking subparagraphs (B) and (C).

21 (r) The Balanced Budget and Emergency Deficit

22 Control Act of 1985 (2 U.S.C. 900 et seq.) is amended—

23 (1) in the first section 255(h) (2 U.S.C.

24 905(h)), by striking ‘‘Aid to families with dependent

25 children (75–0412–0–1–609);’’ and inserting ‘‘Block
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1 grants to States for temporary assistance for needy

2 families;’’; and

3 (2) in section 256 (2 U.S.C. 906)—

4 (A) by striking subsection (k); and

5 (B) by redesignating subsection (l) as sub6 section (k).

7 (s) The Immigration and Nationality Act (8 U.S.C.

8 1101 et seq.) is amended—

9 (1) in section 210(f) (8 U.S.C. 1160(f)), by

10 striking ‘‘aid under a State plan approved under’’

11 each place it appears and inserting ‘‘assistance

12 under a State program funded under’’;

13 (2) in section 245A(h) (8 U.S.C. 1255a(h))—

14 (A) in paragraph (1)(A)(i), by striking

15 ‘‘program of aid to families with dependent chil16 dren’’ and inserting ‘‘State program of assist17 ance’’; and

18 (B) in paragraph (2)(B), by striking ‘‘aid

19 to families with dependent children’’ and insert20 ing ‘‘assistance under a State program funded

21 under part A of title IV of the Social Security

22 Act’’; and

23 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)),

24 by striking ‘‘State plan approved’’ and inserting

25 ‘‘State program funded’’.
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1 (t) Section 640(a)(4)(B)(i) of the Head Start Act (42

2 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘pro3 gram of aid to families with dependent children under a

4 State plan approved’’ and inserting ‘‘State program of as5 sistance funded’’.

6 (u) Section 9 of the Act of April 19, 1950 (64 Stat.

7 47, chapter 92; 25 U.S.C. 639) is repealed.

8 (v) Subparagraph (E) of section 213(d)(6) of the

9 School-To-Work Opportunities Act of 1994 (20 U.S.C.

10 6143(d)(6)) is amended to read as follows:

11 ‘‘(E) part A of title IV of the Social Secu12 rity Act (42 U.S.C. 601 et seq.) relating to

13 work activities;’’.

14 (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United

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

16 of the Social Security Act’’ and inserting ‘‘section 404(e),

17 464, or 1137 of the Social Security Act.’’.

18 SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTER19 FEIT-RESISTANT SOCIAL SECURITY CARD RE20 QUIRED.

21 (a) DEVELOPMENT.—

22 (1) IN GENERAL.—The Commissioner of Social

23 Security (in this section referred to as the ‘‘Commis24 sioner’’) shall, in accordance with this section, de-
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1 velop a prototype of a counterfeit-resistant social se2 curity card. Such prototype card shall—

3 (A) be made of a durable, tamper-resistant

4 material such as plastic or polyester,

5 (B) employ technologies that provide secu6 rity features, such as magnetic stripes,

7 holograms, and integrated circuits, and

8 (C) be developed so as to provide individ9 uals with reliable proof of citizenship or legal

10 resident alien status.

11 (2) ASSISTANCE BY ATTORNEY GENERAL.—The

12 Attorney General of the United States shall provide

13 such information and assistance as the Commis14 sioner deems necessary to enable the Commissioner

15 to comply with this section.

16 (b) STUDY AND REPORT.—

17 (1) IN GENERAL.—The Commissioner shall con18 duct a study and issue a report to Congress which

19 examines different methods of improving the social

20 security card application process.

21 (2) ELEMENTS OF STUDY.—The study shall in22 clude an evaluation of the cost and work load impli23 cations of issuing a counterfeit-resistant social secu24 rity card for all individuals over a 3-, 5-, and 10-

25 year period. The study shall also evaluate the fea-
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1 sibility and cost implications of imposing a user fee

2 for replacement cards and cards issued to individ3 uals who apply for such a card prior to the sched4 uled 3-, 5-, and 10-year phase-in options.

5 (3) DISTRIBUTION OF REPORT.—The Commis6 sioner shall submit copies of the report described in

7 this subsection along with a facsimile of the proto8 type card as described in subsection (a) to the Com9 mittees on Ways and Means and Judiciary of the

10 House of Representatives and the Committees on Fi11 nance and Judiciary of the Senate within 1 year

12 after the date of the enactment of this Act.

13 SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

14 (a) IN GENERAL.—Whenever an organization that

15 accepts Federal funds under this Act or the amendments

16 made by this Act makes any communication that in any

17 way intends to promote public support or opposition to

18 any policy of a Federal, State, or local government

19 through any broadcasting station, newspaper, magazine,

20 outdoor advertising facility, direct mailing, or any other

21 type of general public advertising, such communication

22 shall state the following: ‘‘This was prepared and paid for

23 by an organization that accepts taxpayer dollars.’’.

24 (b) FAILURE TO COMPLY.—If an organization makes

25 any communication described in subsection (a) and fails
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1 to provide the statement required by that subsection, such

2 organization shall be ineligible to receive Federal funds

3 under this Act or the amendments made by this Act.

4 (c) DEFINITION.—For purposes of this section, the

5 term ‘‘organization’’ means an organization described in

6 section 501(c) of the Internal Revenue Code of 1986.

7 (d) EFFECTIVE DATES.—This section shall take ef8 fect—

9 (1) with respect to printed communications 1

10 year after the date of enactment of this Act; and

11 (2) with respect to any other communication on

12 the date of enactment of this Act.

13 SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES

14 FOR CERTAIN LOW-INCOME INDIVIDUALS

15 PROGRAM.

16 Section 505 of the Family Support Act of 1988 (42

17 U.S.C. 1315 note) is amended—

18 (1) in the heading, by striking ‘‘DEM19 ONSTRATION’’;

20 (2) by striking ‘‘demonstration’’ each place such

21 term appears;

22 (3) in subsection (a), by striking ‘‘in each of

23 fiscal years’’ and all that follows through ‘‘10’’ and

24 inserting ‘‘shall enter into agreements with’’;
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1 (4) in subsection (b)(3), by striking ‘‘aid to

2 families with dependent children under part A of

3 title IV of the Social Security Act’’ and inserting

4 ‘‘assistance under the program funded part A of title

5 IV of the Social Security Act of the State in which

6 the individual resides’’;

7 (5) in subsection (c)—

8 (A) in paragraph (1)(C), by striking ‘‘aid

9 to families with dependent children under part

10 A of title IV of the Social Security Act’’ and in11 serting ‘‘assistance under a State program

12 funded part A of title IV of the Social Security

13 Act’’;

14 (B) in paragraph (2), by striking ‘‘aid to

15 families with dependent children under title IV

16 of such Act’’ and inserting ‘‘assistance under a

17 State program funded part A of title IV of the

18 Social Security Act’’;

19 (6) in subsection (d), by striking ‘‘job opportu20 nities and basic skills training program (as provided

21 for under title IV of the Social Security Act)’’ and

22 inserting ‘‘the State program funded under part A

23 of title IV of the Social Security Act’’; and

24 (7) by striking subsections (e) through (g) and

25 inserting the following:
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1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the

2 purpose of conducting projects under this section, there

3 is authorized to be appropriated an amount not to exceed

4 $25,000,000 for any fiscal year.’’.

5 SEC. 114. SECRETARIAL SUBMISSION OF LEGISLATIVE

6 PROPOSAL FOR TECHNICAL AND CONFORM7 ING AMENDMENTS.

8 Not later than 90 days after the date of the enact9 ment of this Act, the Secretary of Health and Human

10 Services and the Commissioner of Social Security, in con11 sultation, as appropriate, with the heads of other Federal

12 agencies, shall submit to the appropriate committees of

13 Congress a legislative proposal proposing such technical

14 and conforming amendments as are necessary to bring the

15 law into conformity with the policy embodied in this title.

16 SEC. 115. APPLICATION OF CURRENT AFDC STANDARDS

17 UNDER MEDICAID PROGRAM.

18 (a) IN GENERAL.—Title XIX is amended—

19 (1) by redesignating section 1931 as section

20 1932; and

21 (2) by inserting after section 1930 the following

22 new section:

23 ‘‘APPLICATION OF AFDC STANDARDS AND METHODOLOGY

24 ‘‘SEC. 1931. (a)(1) Subject to the succeeding provi25 sions of this section, with respect to a State any reference

26 in this title (or other provision of law in relation to the
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1 operation of this title) to a provision of part A of title

2 IV, or a State plan under such part (or a provision of

3 such a plan), including standards and methodologies for

4 determining income and resources under such part or

5 plan, shall be considered a reference to such a provision

6 or plan as in effect as of July 1, 1996, with respect to

7 the State.

8 ‘‘(2) In applying section 1925(a)(1), the reference to

9 ‘section 402(a)(8)(B)(ii)(II)’ is deemed a reference to a

10 corresponding earning disregard rule (if any) established

11 under a State program funded under part A of title IV

12 (as in effect on and after October 1, 1996).

13 ‘‘(3) The provisions of section 406(h) (as in effect

14 on July 1, 1996) shall apply, in relation to this title, with

15 respect to individuals who receive assistance under a State

16 program funded under part A of title IV (as in effect on

17 and after October 1, 1996) and are eligible for medical

18 assistance under this title or who are described in sub19 section (b)(1) in the same manner as they apply before

20 such date with respect to individuals who become ineligible

21 for aid to families with dependent children as a result

22 (wholly or partly) of the collection or increased collection

23 of child or spousal support under part D of title IV.

24 ‘‘(4) With respect to the reference in section

25 1902(a)(5) to a State plan approved under part A of title
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1 IV, a State may treat such reference as a reference either

2 to a State program funded under such part (as in effect

3 on and after October 1, 1996) or to the State plan under

4 this title.

5 ‘‘(b)(1) For purposes of this title, subject to para6 graph (2), in determining eligibility for medical assistance,

7 an individual shall be deemed to be receiving aid or assist8 ance under a State plan approved under part A of title

9 IV (and shall be treated as meeting the income and re10 source standards under such part) only if the individual

11 meets—

12 ‘‘(A) the income and resource standards under

13 such plan, and

14 ‘‘(B) the eligibility requirements of such plan

15 under subsections (a) through (c) of section 406 and

16 section 407(a),

17 as in effect as of July 1, 1996. Subject to paragraph

18 (2)(B), the income and resource methodologies under such

19 plan as of such date shall be used in the determination

20 of whether any individual meets income and resource

21 standards under such plan.

22 ‘‘(2) For purposes of applying this section, a State

23 may—

24 ‘‘(A) lower its income standards applicable with

25 respect to part A of title IV, but not below the in-
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1 come standards applicable under its State plan

2 under such part on May 1, 1988; and

3 ‘‘(B) use income and resource standards or

4 methodologies that are less restrictive than the

5 standards or methodologies used under the State

6 plan under such part as of July 1, 1996.

7 ‘‘(3) For purposes of applying this section, a State

8 may, subject to paragraph (4), treat all individuals (or

9 reasonable categories of individuals) receiving assistance

10 under the State program funded under part A of title IV

11 (as in effect on or after October 1, 1996) as individuals

12 who are receiving aid or assistance under a State plan ap13 proved under part A of title IV (and thereby eligible for

14 medical assistance under this title).

15 ‘‘(4) For purposes of section 1925, an individual who

16 is receiving assistance under the State program funded

17 under part A of title IV (as in effect on or after October

18 1, 1996) and is eligible for medical assistance under this

19 title shall be treated as an individual receiving aid or as20 sistance pursuant to a plan of the State approved under

21 part A of title IV (as in effect as of July 1, 1996) (and

22 thereby eligible for continuation of medical assistance

23 under such section).

24 ‘‘(c) In the case of a waiver of a provision of part

25 A of title IV in effect with respect to a State as of July
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1 1, 1996, if the waiver affects eligibility of individuals for

2 medical assistance under this title, such waiver may (but

3 need not) continue to be applied, at the option of the

4 State, in relation to this title after the date the waiver

5 would otherwise expire. If a State elects not to continue

6 to apply such a waiver, then, after the date of the expira7 tion of the waiver, subsection (a) shall be applied as if

8 any provisions so waived had not been waived.

9 ‘‘(d) Nothing in this section, or part A of title IV,

10 shall be construed as preventing a State from providing

11 for the same application form for assistance under a State

12 program funded under part A of title IV (on or after Octo13 ber 1, 1996) and for medical assistance under this title.

14 ‘‘(e) The provisions of this section shall apply not15 withstanding any other provision of this title.’’.

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 administration and deter25 minations of eligibility with respect to individuals
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1 who are (or seek to be) eligible for medical assist2 ance based on the application of section 1931.’’.

3 (c) ELIMINATION OF REQUIREMENT OF MINIMUM

4 AFDC PAYMENT LEVELS.—(1) Section 1902(c) (42

5 U.S.C. 1396a(c)) is amended by striking ‘‘if—’’ and all

6 that follows and inserting the following: ‘‘if the State re7 quires individuals described in subsection (l)(1) to apply

8 for assistance under the State program funded under part

9 A of title IV as a condition of applying for or receiving

10 medical assistance under this title.’’.

11 (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended

12 by striking paragraph (9).

13 SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

14 (a) IN GENERAL.—Except as otherwise provided in

15 this title, this title and the amendments made by this title

16 shall take effect on October 1, 1996.

17 (b) TRANSITION RULES.—

18 (1) STATE OPTION TO ACCELERATE EFFECTIVE

19 DATE.—

20 (A) IN GENERAL.—If, within 3 months

21 after the date of the enactment of this Act, the

22 Secretary of Health and Human Services re23 ceives from a State, a plan described in section

24 402(a) of the Social Security Act (as added by

25 the amendment made by section 103 of this
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1 Act), this title and the amendments made by

2 this title (except section 409(a)(5) of the Social

3 Security Act, as added by the amendment made

4 by such section 103) shall also apply with re5 spect to the State during the period that begins

6 on the date the Secretary approves the plan and

7 ends on September 30, 1996, except that the

8 State shall be considered an eligible State for

9 fiscal year 1996 for purposes of part A of title

10 IV of the Social Security Act (as in effect pur11 suant to the amendment made by such section

12 103).

13 (B) LIMITATIONS ON FEDERAL OBLIGA14 TIONS.—

15 (i) UNDER AFDC PROGRAM.—If the

16 Secretary receives from a State the plan

17 referred to in subparagraph (A), the total

18 obligations of the Federal Government to

19 the State under part A of title IV of the

20 Social Security Act (as in effect on Sep21 tember 30, 1995) with respect to expendi22 tures by the State after the date of the en23 actment of this Act shall not exceed an

24 amount equal to—
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1 (I) the State family assistance

2 grant (as defined in section

3 403(a)(1)(B) of the Social Security

4 Act (as in effect pursuant to the

5 amendment made by section 103 of

6 this Act)); minus

7 (II) any obligations of the Fed8 eral Government to the State under

9 part A of title IV of the Social Secu10 rity Act (as in effect on September

11 30, 1995) with respect to expendi12 tures by the State during the period

13 that begins on October 1, 1995, and

14 ends on the day before the date of the

15 enactment of this Act.

16 (ii) UNDER TEMPORARY FAMILY AS17 SISTANCE PROGRAM.—Notwithstanding

18 section 403(a)(1) of the Social Security

19 Act (as in effect pursuant to the amend20 ment made by section 103 of this Act), the

21 total obligations of the Federal Govern22 ment to a State under such section

23 403(a)(1) for fiscal year 1996 after the

24 termination of the State AFDC program

25 shall not exceed an amount equal to—
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1 (I) the amount described in

2 clause (i)(I) of this subparagraph;

3 minus

4 (II) any obligations of the Fed5 eral Government to the State under

6 part A of title IV of the Social Secu7 rity Act (as in effect on September

8 30, 1995) with respect to expendi9 tures by the State on or after October

10 1, 1995.

11 (iii) CHILD CARE OBLIGATIONS EX12 CLUDED IN DETERMINING FEDERAL AFDC

13 OBLIGATIONS.—As used in this subpara14 graph, the term ‘‘obligations of the Federal

15 Government to the State under part A of

16 title IV of the Social Security Act’’ does

17 not include any obligation of the Federal

18 Government with respect to child care ex19 penditures by the State.

20 (C) SUBMISSION OF STATE PLAN FOR FIS21 CAL YEAR 1996 DEEMED ACCEPTANCE OF

22 GRANT LIMITATIONS AND FORMULA.—The sub23 mission of a plan by a State pursuant to sub24 paragraph (A) is deemed to constitute the

25 State’s acceptance of the grant reductions
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1 under subparagraph (B)(ii) (including the for2 mula for computing the amount of the reduc3 tion).

4 (D) DEFINITIONS.—As used in this para5 graph:

6 (i) STATE AFDC PROGRAM.—The term

7 ‘‘State AFDC program’’ means the State

8 program under parts A and F of title IV

9 of the Social Security Act (as in effect on

10 September 30, 1995).

11 (ii) STATE.—The term ‘‘State’’ means

12 the 50 States and the District of Colum13 bia.

14 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—

15 The amendments made by this title shall not apply

16 with respect to—

17 (A) powers, duties, functions, rights,

18 claims, penalties, or obligations applicable to

19 aid, assistance, or services provided before the

20 effective date of this title under the provisions

21 amended; and

22 (B) administrative actions and proceedings

23 commenced before such date, or authorized be24 fore such date to be commenced, under such

25 provisions.
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1 (3) CLOSING OUT ACCOUNT FOR THOSE PRO2 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED

3 BY THIS TITLE.—In closing out accounts, Federal

4 and State officials may use scientifically acceptable

5 statistical sampling techniques. Claims made with

6 respect to State expenditures under a State plan ap7 proved under part A of title IV of the Social Secu8 rity Act (as in effect before the effective date of this

9 Act) with respect to assistance or services provided

10 on or before September 30, 1995, shall be treated as

11 claims with respect to expenditures during fiscal

12 year 1995 for purposes of reimbursement even if

13 payment was made by a State on or after October

14 1, 1995. Each State shall complete the filing of all

15 claims under the State plan (as so in effect) no later

16 than September 30, 1997. The head of each Federal

17 department shall—

18 (A) use the single audit procedure to re19 view and resolve any claims in connection with

20 the close out of programs under such State

21 plans; and

22 (B) reimburse States for any payments

23 made for assistance or services provided during

24 a prior fiscal year from funds for fiscal year
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1 1995, rather than from funds authorized by

2 this title.

3 (4) CONTINUANCE IN OFFICE OF ASSISTANT

4 SECRETARY FOR FAMILY SUPPORT.—The individual

5 who, on the day before the effective date of this title,

6 is serving as Assistant Secretary for Family Support

7 within the Department of Health and Human Serv8 ices shall, until a successor is appointed to such po9 sition—

10 (A) continue to serve in such position; and

11 (B) except as otherwise provided by law—

12 (i) continue to perform the functions

13 of the Assistant Secretary for Family Sup14 port under section 417 of the Social Secu15 rity Act (as in effect before such effective

16 date); and

17 (ii) have the powers and duties of the

18 Assistant Secretary for Family Support

19 under section 416 of the Social Security

20 Act (as in effect pursuant to the amend21 ment made by section 103 of this Act).
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1 TITLE II—SUPPLEMENTAL

2 SECURITY INCOME

3 SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

4 Except as otherwise specifically provided, wherever in

5 this title an amendment is expressed in terms of an

6 amendment to or repeal of a section or other provision,

7 the reference shall be considered to be made to that sec8 tion or other provision of the Social Security Act.

9 Subtitle A—Eligibility Restrictions

10 SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI11 VIDUALS FOUND TO HAVE FRAUDULENTLY

12 MISREPRESENTED RESIDENCE IN ORDER TO

13 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

14 MORE STATES.

15 (a) IN GENERAL.—Section 1614(a) (42 U.S.C.

16 1382c(a)) is amended by adding at the end the following

17 new paragraph:

18 ‘‘(5) An individual shall not be considered an eligible

19 individual for the purposes of this title during the 10-year

20 period that begins on the date the individual is convicted

21 in Federal or State court of having made a fraudulent

22 statement or representation with respect to the place of

23 residence of the individual in order to receive assistance

24 simultaneously from 2 or more States under programs

25 that are funded under title IV, title XIX, or the Food
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1 Stamp Act of 1977, or benefits in 2 or more States under

2 the supplemental security income program under this

3 title.’’.

4 (b) EFFECTIVE DATE.—The amendment made by

5 this section shall take effect on the date of the enactment

6 of this Act.

7 SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

8 AND PROBATION AND PAROLE VIOLATORS.

9 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

10 1382(e)) is amended by inserting after paragraph (3) the

11 following new paragraph:

12 ‘‘(4) A person shall not be considered an eligible indi13 vidual or eligible spouse for purposes of this title with re14 spect 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 WITH LAW EN25 FORCEMENT AGENCIES.—Section 1611(e) (42 U.S.C.
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1 1382(e)), as amended by subsection (a), is amended by

2 inserting after paragraph (4) the following new paragraph:

3 ‘‘(5) Notwithstanding any other provision of law, the

4 Commissioner shall furnish any Federal, State, or local

5 law enforcement officer, upon the request of the officer,

6 with the current address, Social Security number, and

7 photograph (if applicable) of any recipient of benefits

8 under this title, if the officer furnishes the Commissioner

9 with the name of the recipient and notifies the Commis10 sioner that—

11 ‘‘(A) the recipient—

12 ‘‘(i) is described in subparagraph (A) or

13 (B) of paragraph (4); or

14 ‘‘(ii) has information that is necessary for

15 the officer to conduct the officer’s official du16 ties; and

17 ‘‘(B) the location or apprehension of the recipi18 ent is within the officer’s official duties.’’.

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

20 this section shall take effect on the date of the enactment

21 of this Act.

22 SEC. 203. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI

23 DISABILITY BENEFITS.

24 Section 1631 (42 U.S.C. 1383) is amended by adding

25 at the end the following new subsection:
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1 ‘‘(o)(1) Notwithstanding any other provision of law,

2 if the Commissioner of Social Security determines that an

3 individual, who is 18 years of age or older, is eligible to

4 receive benefits pursuant to section 1614(a)(3), the Com5 missioner shall, at the time of the determination, either

6 exempt the individual from an eligibility review or estab7 lish a schedule for reviewing the individual’s continuing

8 eligibility in accordance with paragraph (2).

9 ‘‘(2)(A) The Commissioner shall establish a periodic

10 review with respect to the continuing eligibility of an indi11 vidual to receive benefits, unless the individual is exempt

12 from review under subparagraph (C) or is subject to a

13 scheduled review under subparagraph (B). A periodic re14 view under this subparagraph shall be initiated by the

15 Commissioner not later than 30 months after the date a

16 determination is made that the individual is eligible for

17 benefits and every 30 months thereafter, unless a waiver

18 is granted under section 221(i)(2). However, the Commis19 sioner shall not postpone the initiation of a periodic review

20 for more than 12 months in any case in which such waiver

21 has been granted unless exigent circumstances require

22 such postponement.

23 ‘‘(B)(i) In the case of an individual, other than an

24 individual who is exempt from review under subparagraph

25 (C) or with respect to whom subparagraph (A) applies,
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1 the Commissioner shall schedule a review regarding the

2 individual’s continuing eligibility to receive benefits at any

3 time the Commissioner determines, based on the evidence

4 available, that there is a significant possibility that the

5 individual may cease to be entitled to such benefits.

6 ‘‘(ii) The Commissioner may establish classifications

7 of individuals for whom a review of continuing eligibility

8 is scheduled based on the impairments that are the basis

9 for such individuals’ eligibility for benefits. A review of

10 an individual covered by a classification shall be scheduled

11 in accordance with the applicable classification, unless the

12 Commissioner determines that applying such schedule is

13 inconsistent with the purpose of this Act or the integrity

14 of the supplemental security income program.

15 ‘‘(C)(i) The Commissioner may exempt an individual

16 from review under this subsection, if the individual’s eligi17 bility for benefits is based on a condition that, as a prac18 tical matter, has no substantial likelihood of improving to

19 a point where the individual will be able to perform sub20 stantial gainful activity.

21 ‘‘(ii) The Commissioner may establish classifications

22 of individuals who are exempt from review under this sub23 section based on the impairments that are the basis for

24 such individuals’ eligibility for benefits. Notwithstanding

25 any such classification, the Commissioner may, at the time
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1 of determining an individual’s eligibility, schedule a review

2 of such individual’s continuing eligibility if the Commis3 sioner determines that a review is necessary to preserve

4 the integrity of the supplemental security income program.

5 ‘‘(3) The Commissioner may revise a determination

6 made under paragraph (1) and schedule a review under

7 paragraph (2)(B), if the Commissioner obtains credible

8 evidence that an individual may no longer be eligible for

9 benefits or the Commissioner determines that a review is

10 necessary to maintain the integrity of the supplemental

11 security income program. Information obtained under sec12 tion 1137 may be used as the basis to schedule a review.

13 ‘‘(4)(A) The requirements of sections 1614(a)(4) and

14 1633 shall apply to reviews conducted under this sub15 section.

16 ‘‘(B) Such reviews may be conducted by the applica17 ble State agency or the Commissioner, whichever is appro18 priate.

19 ‘‘(5) Not later than 3 months after the date of the

20 enactment of this subsection, the Commissioner shall es21 tablish a schedule for reviewing the continuing eligibility

22 of each individual who is receiving benefits pursuant to

23 section 1614(a)(3) on such date of enactment and who

24 has attained 18 years of age, unless such individual is ex25 empt under paragraph (2)(C). Such review shall be sched-
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1 uled under the procedures prescribed by or under para2 graph (2), except that the reviews shall be scheduled so

that the eligibility of 1 3 ⁄3 of all such nonexempt individuals

4 is reviewed within 1 year after such date of enactment,

the eligibility of 1 5 ⁄3 of such nonexempt individuals is re6 viewed within 1 year after such date of enactment, and

7 all remaining nonexempt individuals who continue receiv8 ing benefits shall have their eligibility reviewed within 3

9 years after such date of enactment. Each individual deter10 mined eligible to continue receiving benefits in a review

11 scheduled under this paragraph shall, at the time of the

12 determination, be subject to paragraph (2).’’.

13 SEC. 204. TREATMENT OF PRISONERS.

14 (a) IMPLEMENTATION OF PROHIBITION AGAINST

15 PAYMENT OF BENEFITS TO PRISONERS.—

16 (1) IN GENERAL.—Section 1611(e)(1) (42

17 U.S.C. 1382(e)(1)) is amended by adding at the end

18 the following new subparagraph:

19 ‘‘(I)(i) The Commissioner shall enter into a contract,

20 with any interested State or local institution referred to

21 in subparagraph (A), under which—

22 ‘‘(I) the institution shall provide to the Com23 missioner, on a monthly basis, the names, social se24 curity account numbers, dates of birth, and such

25 other identifying information concerning the inmates
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1 of the institution as the Commissioner may require

2 for the purpose of carrying out paragraph (1); and

3 ‘‘(II) the Commissioner shall pay to any such

4 institution, with respect to each inmate of the insti5 tution who is eligible for a benefit under this title for

6 the month preceding the first month throughout

7 which such inmate is in such institution and be8 comes ineligible for such benefit (or becomes eligible

9 only for a benefit payable at a reduced rate) as a re10 sult of the application of this paragraph, an amount

11 not to exceed $400 if the institution furnishes the

12 information described in subclause (I) to the Com13 missioner within 30 days after such individual be14 comes an inmate of such institution, or an amount

15 not to exceed $200 if the institution furnishes such

16 information after 30 days after such date but within

17 90 days after such date.

18 ‘‘(ii) The provisions of section 552a of title 5, United

19 States Code, shall not apply to any contract entered into

20 under clause (i) or to information exchanged pursuant to

21 such contract.’’.

22 (2) CONFORMING OASDI AMENDMENTS.—Sec23 tion 202(x)(3) (42 U.S.C. 402(x)(3)) is amended—

24 (A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
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1 (B) by adding at the end the following new

2 subparagraph:

3 ‘‘(B)(i) The Commissioner shall enter into a contract,

4 with any interested State or local institution described in

5 clause (i) or (ii) of paragraph (1)(A) the primary purpose

6 of which is to confine individuals as described in para7 graph (1)(A), under which—

8 ‘‘(I) the institution shall provide to the Com9 missioner, on a monthly basis, the names, social se10 curity account numbers, dates of birth, and such

11 other identifying information concerning the individ12 uals confined in the institution as the Commissioner

13 may require for the purpose of carrying out para14 graph (1); and

15 ‘‘(II) the Commissioner shall pay to any such

16 institution, with respect to each individual who is en17 titled to a benefit under this title for the month pre18 ceding the first month throughout which such indi19 vidual is confined in such institution as described in

20 paragraph (1)(A), an amount not to exceed $400 if

21 the institution furnishes the information described in

22 subclause (I) to the Commissioner within 30 days

23 after the date such individual’s confinement in such

24 institution begins, or an amount not to exceed $200

25 if the institution furnishes such information after 30
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1 days after such date but within 90 days after such

2 date.

3 ‘‘(ii) The provisions of section 552a of title 5, United

4 States Code, shall not apply to any contract entered into

5 under clause (i) or to information exchanged pursuant to

6 such contract.’’.

7 (b) DENIAL OF SSI BENEFITS FOR 10 YEARS TO A

8 PERSON FOUND TO HAVE FRAUDULENTLY OBTAINED

9 SSI BENEFITS WHILE IN PRISON.—

10 (1) IN GENERAL.—Section 1611(e)(1) (42

11 U.S.C. 1382(e)(1)), as amended by subsection

12 (a)(1), is amended by adding at the end the follow13 ing new subparagraph:

14 ‘‘(J) In any case in which the Commissioner of Social

15 Security finds that a person has made a fraudulent state16 ment or representation in order to obtain or to continue

17 to receive benefits under this title while being an inmate

18 in a penal institution, such person shall not be considered

19 an eligible individual or eligible spouse for any month end20 ing during the 10-year period beginning on the date on

21 which such person ceases being such an inmate.’’.

22 (2) EFFECTIVE DATE.—The amendment made

23 by this subsection shall apply with respect to state24 ments or representations made on or after the date

25 of the enactment of this Act.
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1 (c) ELIMINATION OF OASDI REQUIREMENT THAT

2 CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM3 PRISONMENT FOR MORE THAN 1 YEAR.—

4 (1) IN GENERAL.—Section 202(x)(1)(A) (42

5 U.S.C. 402(x)(1)(A)) is amended—

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

7 striking ‘‘during’’ and inserting ‘‘throughout’’;

8 (B) in clause (i), by striking ‘‘pursuant’’

9 and all that follows through ‘‘imposed’’; and

10 (C) in clause (ii)(I), by striking ‘‘an of11 fense punishable by imprisonment for more

12 than 1 year’’ and inserting ‘‘a criminal of13 fense’’.

14 (2) EFFECTIVE DATE.—The amendments made

15 by this subsection shall be effective with respect to

16 benefits payable for months beginning more than

17 180 days after the date of the enactment of this Act.

18 (d) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN

19 THE COLLECTION OF INFORMATION RESPECTING PUBLIC

20 INMATES.—

21 (1) STUDY.—The Commissioner of Social Secu22 rity shall conduct a study of the desirability, feasibil23 ity, and cost of—

24 (A) establishing a system under which

25 Federal, State, and local courts would furnish
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1 to the Commissioner such information respect2 ing court orders by which individuals are con3 fined in jails, prisons, or other public penal,

4 correctional, or medical facilities as the Com5 missioner may require for the purpose of carry6 ing out sections 202(x) and 1611(e)(1) of the

7 Social Security Act; and

8 (B) requiring that State and local jails,

9 prisons, and other institutions that enter into

10 contracts with the Commissioner under section

11 202(x)(3)(B) or 1611(e)(1)(I) of the Social Se12 curity Act furnish the information required by

13 such contracts to the Commissioner by means

14 of an electronic or other sophisticated data ex15 change system.

16 (2) REPORT.—Not later than 1 year after the

17 date of the enactment of this Act, the Commissioner

18 of Social Security shall submit a report on the re19 sults of the study conducted pursuant to this sub20 section to the Committee on Finance of the Senate

21 and the Committee on Ways and Means of the

22 House of Representatives.
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1 SEC. 205. EFFECTIVE DATE OF APPLICATION FOR BENE2 FITS.

3 (a) IN GENERAL.—Subparagraphs (A) and (B) of

4 section 1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended

5 to read as follows:

6 ‘‘(A) the first day of the month following the

7 date such application is filed, or

8 ‘‘(B) the first day of the month following the

9 date such individual becomes eligible for such bene10 fits with respect to such application.’’.

11 (b) SPECIAL RULE RELATING TO EMERGENCY AD12 VANCE PAYMENTS.—Section 1631(a)(4)(A) (42 U.S.C.

13 1383(a)(4)(A)) is amended—

14 (1) by inserting ‘‘for the month following the

15 date the application is filed’’ after ‘‘is presumptively

16 eligible for such benefits’’; and

17 (2) by inserting ‘‘, which shall be repaid

18 through proportionate reductions in such benefits

19 over a period of not more than 6 months’’ before the

20 semicolon.

21 (c) CONFORMING AMENDMENTS.—

22 (1) Section 1614(b) (42 U.S.C. 1382c(b)) is

23 amended by striking ‘‘at the time the application or

24 request is filed’’ and inserting ‘‘on the first day of

25 the month following the date the application or re26 quest is filed’’.
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1 (2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3))

2 is amended by inserting ‘‘following the month’’ after

3 ‘‘beginning with the month’’.

4 (d) EFFECTIVE DATE.—

5 (1) IN GENERAL.—The amendments made by

6 this section shall apply to applications for benefits

7 under title XVI of the Social Security Act filed on

8 or after the date of the enactment of this Act, with9 out regard to whether regulations have been issued

10 to implement such amendments.

11 (2) BENEFITS UNDER TITLE XVI.—For pur12 poses of this subsection, the term ‘‘benefits under

13 title XVI of the Social Security Act’’ includes sup14 plementary payments pursuant to an agreement for

15 Federal administration under section 1616(a) of the

16 Social Security Act, and payments pursuant to an

17 agreement entered into under section 212(b) of Pub18 lic Law 93–66.

19 SEC. 206. INSTALLMENT PAYMENT OF LARGE PAST-DUE

20 SUPPLEMENTAL SECURITY INCOME BENE21 FITS.

22 (a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383)

23 is amended by adding at the end the following new para24 graph:
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1 ‘‘(10)(A) If an individual is eligible for past-due

2 monthly benefits under this title in an amount that (after

3 any withholding for reimbursement to a State for interim

4 assistance under subsection (g)) equals or exceeds the

5 product of—

6 ‘‘(i) 12, and

7 ‘‘(ii) the maximum monthly benefit payable

8 under this title to an eligible individual (or, if appro9 priate, to an eligible individual and eligible spouse),

10 then the payment of such past-due benefits (after any such

11 reimbursement to a State) shall be made in installments

12 as provided in subparagraph (B).

13 ‘‘(B)(i) The payment of past-due benefits subject to

14 this subparagraph shall be made in not to exceed 3 install15 ments that are made at 6-month intervals.

16 ‘‘(ii) Except as provided in clause (iii), the amount

17 of each of the first and second installments may not exceed

18 an amount equal to the product of clauses (i) and (ii) of

19 subparagraph (A).

20 ‘‘(iii) In the case of an individual who has—

21 ‘‘(I) outstanding debt attributable to—

22 ‘‘(aa) food,

23 ‘‘(bb) clothing,

24 ‘‘(cc) shelter, or
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1 ‘‘(dd) medically necessary services, supplies

2 or equipment, or medicine; or

3 ‘‘(II) current expenses or expenses anticipated

4 in the near term attributable to—

5 ‘‘(aa) medically necessary services, supplies

6 or equipment, or medicine, or

7 ‘‘(bb) the purchase of a home, and

8 such debt or expenses are not subject to reimbursement

9 by a public assistance program, the Secretary under title

10 XVIII, a State plan approved under title XV or XIX, or

11 any private entity legally liable to provide payment pursu12 ant to an insurance policy, pre-paid plan, or other ar13 rangement, the limitation specified in clause (ii) may be

14 exceeded by an amount equal to the total of such debt

15 and expenses.

16 ‘‘(C) This paragraph shall not apply to any individual

17 who, at the time of the Commissioner’s determination that

18 such individual is eligible for the payment of past-due

19 monthly benefits under this title—

20 ‘‘(i) is afflicted with a medically determinable

21 impairment that is expected to result in death within

22 12 months; or

23 ‘‘(ii) is ineligible for benefits under this title

24 and the Commissioner determines that such individ-
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1 ual is likely to remain ineligible for the next 12

2 months.

3 ‘‘(D) For purposes of this paragraph, the term ‘bene4 fits under this title’ includes supplementary payments pur5 suant to an agreement for Federal administration under

6 section 1616(a), and payments pursuant to an agreement

7 entered into under section 212(b) of Public Law 93–66.’’.

8 (b) CONFORMING AMENDMENT.—Section 1631(a)(1)

9 (42 U.S.C. 1383(a)(1)) is amended by inserting ‘‘(subject

10 to paragraph (10))’’ immediately before ‘‘in such install11 ments’’.

12 (c) EFFECTIVE DATE.—

13 (1) IN GENERAL.—The amendments made by

14 this section are effective with respect to past-due

15 benefits payable under title XVI of the Social Secu16 rity Act after the third month following the month

17 in which this Act is enacted.

18 (2) BENEFITS PAYABLE UNDER TITLE XVI.—

19 For purposes of this subsection, the term ‘‘benefits

20 payable under title XVI of the Social Security Act’’

21 includes supplementary payments pursuant to an

22 agreement for Federal administration under section

23 1616(a) of the Social Security Act, and payments

24 pursuant to an agreement entered into under section

25 212(b) of Public Law 93–66.
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1 SEC. 207. RECOVERY OF SUPPLEMENTAL SECURITY IN2 COME OVERPAYMENTS FROM SOCIAL SECU3 RITY BENEFITS.

4 (a) IN GENERAL.—Part A of title XI is amended by

5 adding at the end the following new section:

6 ‘‘RECOVERY OF SSI OVERPAYMENTS FROM SOCIAL

7 SECURITY BENEFITS

8 ‘‘SEC. 1146. (a) IN GENERAL.—Whenever the Com9 missioner of Social Security determines that more than

10 the correct amount of any payment has been made to any

11 person under the supplemental security income program

12 authorized by title XVI, and the Commissioner is unable

13 to make proper adjustment or recovery of the amount so

14 incorrectly paid as provided in section 1631(b), the Com15 missioner (notwithstanding section 207) may recover the

16 amount incorrectly paid by decreasing any amount which

17 is payable under the Federal Old-Age and Survivors Insur18 ance program or the Federal Disability Insurance pro19 gram authorized by title II to that person or that person’s

20 estate.

21 ‘‘(b) NO EFFECT ON SSI BENEFIT ELIGIBILITY OR

22 AMOUNT.—Notwithstanding subsections (a) and (b) of

23 section 1611, in any case in which the Commissioner takes

24 action in accordance with subsection (a) to recover an

25 overpayment from any person, neither that person, nor

26 any individual whose eligibility or benefit amount is deter-
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1 mined by considering any part of that person’s income,

2 shall, as a result of such action—

3 ‘‘(1) become eligible under the program of sup4 plemental security income benefits under title XVI,

5 or

6 ‘‘(2) if such person or individual is already so

7 eligible, become eligible for increased benefits there8 under.

9 ‘‘(c) PROGRAM UNDER TITLE XVI.—For purposes of

10 this section, the term ‘supplemental security income pro11 gram authorized by title XVI’ includes supplementary pay12 ments pursuant to an agreement for Federal administra13 tion under section 1616(a), and payments pursuant to an

14 agreement entered into under section 212(b) of Public

15 Law 93–66.’’.

16 (b) CONFORMING AMENDMENTS.—

17 (1) Section 204 (42 U.S.C. 404) is amended by

18 adding at the end the following new subsection:

19 ‘‘(g) For payments which are adjusted or withheld

20 to recover an overpayment of supplemental security in21 come benefits paid under title XVI (including State sup22 plementary payments which were paid under an agreement

23 pursuant to section 1616(a) or section 212(b) of Public

24 Law 93-66), see section 1146.’’.
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1 (2) Section 1631(b) is amended by adding at

2 the end the following new paragraph:

3 ‘‘(5) For the recovery of overpayments of benefits

4 under this title from benefits payable under title II, see

5 section 1146.’’.

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

7 this section shall take effect on the date of the enactment

8 of this Act and shall apply to overpayments outstanding

9 on or after such date.

10 Subtitle B—Benefits for Disabled

11 Children

12 SEC. 211. DEFINITION AND ELIGIBILITY RULES.

13 (a) DEFINITION OF CHILDHOOD DISABILITY.—Sec14 tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is amended—

15 (1) in subparagraph (A), by striking ‘‘An indi16 vidual’’ and inserting ‘‘Except as provided in sub17 paragraph (C), an individual’’;

18 (2) in subparagraph (A), by striking ‘‘(or, in

19 the case of an individual under the age of 18, if he

20 suffers from any medically determinable physical or

21 mental impairment of comparable severity)’’;

22 (3) by redesignating subparagraphs (C) through

23 (H) as subparagraphs (D) through (I), respectively;

24 (4) by inserting after subparagraph (B) the fol25 lowing new subparagraph:
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1 ‘‘(C) An individual under the age of 18 shall be con2 sidered disabled for the purposes of this title if that indi3 vidual has a medically determinable physical or mental im4 pairment, which results in marked and severe functional

5 limitations, and which can be expected to result in death

6 or which has lasted or can be expected to last for a contin7 uous period of not less than 12 months.’’; and

8 (5) in subparagraph (F), as so redesignated by

9 paragraph (3) of this subsection, by striking ‘‘(D)’’

10 and inserting ‘‘(E)’’.

11 (b) CHANGES TO CHILDHOOD SSI REGULATIONS.—

12 (1) MODIFICATION TO MEDICAL CRITERIA FOR

13 EVALUATION OF MENTAL AND EMOTIONAL DIS14 ORDERS.—The Commissioner of Social Security

15 shall modify sections 112.00C.2. and

16 112.02B.2.c.(2) of appendix 1 to subpart P of part

17 404 of title 20, Code of Federal Regulations, to

18 eliminate references to maladaptive behavior in the

19 domain of personal/behavorial function.

20 (2) DISCONTINUANCE OF INDIVIDUALIZED

21 FUNCTIONAL ASSESSMENT.—The Commissioner of

22 Social Security shall discontinue the individualized

23 functional assessment for children set forth in sec24 tions 416.924d and 416.924e of title 20, Code of

25 Federal Regulations.
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1 (c) EFFECTIVE DATE; REGULATIONS; APPLICATION

2 TO CURRENT RECIPIENTS.—

3 (1) IN GENERAL.—The amendments made by

4 subsections (a) and (b) shall apply to applicants for

5 benefits for months beginning on or after the date

6 of the enactment of this Act, without regard to

7 whether regulations have been issued to implement

8 such amendments.

9 (2) REGULATIONS.—The Commissioner of So10 cial Security shall issue such regulations as the

11 Commissioner determines to be necessary to imple12 ment the amendments made by subsections (a) and

13 (b) not later than 60 days after the date of the en14 actment of this Act.

15 (3) APPLICATION TO CURRENT RECIPIENTS.—

16 (A) ELIGIBILITY DETERMINATIONS.—Not

17 later than 1 year after the date of the enact18 ment of this Act, the Commissioner of Social

19 Security shall redetermine the eligibility of any

20 individual under age 18 who is receiving supple21 mental security income benefits based on a dis22 ability under title XVI of the Social Security

23 Act as of the date of the enactment of this Act

24 and whose eligibility for such benefits may ter25 minate by reason of the amendments made by
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1 subsection (a) or (b). With respect to any rede2 termination under this subparagraph—

3 (i) section 1614(a)(4) of the Social

4 Security Act (42 U.S.C. 1382c(a)(4)) shall

5 not apply;

6 (ii) the Commissioner of Social Secu7 rity shall apply the eligibility criteria for

8 new applicants for benefits under title XVI

9 of such Act;

10 (iii) the Commissioner shall give such

11 redetermination priority over all continuing

12 eligibility reviews and other reviews under

13 such title; and

14 (iv) such redetermination shall be

15 counted as a review or redetermination

16 otherwise required to be made under sec17 tion 208 of the Social Security Independ18 ence and Program Improvements Act of

19 1994 or any other provision of title XVI of

20 the Social Security Act.

21 (B) GRANDFATHER PROVISION.—The

22 amendments made by subsections (a) and (b),

23 and the redetermination under subparagraph

24 (A), shall only apply with respect to the benefits

25 of an individual described in subparagraph (A)
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1 for months beginning on or after the date of re2 determination with respect to the individual.

3 (C) NOTICE.—Not later than 90 days after

4 the date of the enactment of this Act, the Com5 missioner of Social Security shall notify an indi6 vidual described in subparagraph (A) of the

7 provisions of this paragraph.

8 SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU9 ING DISABILITY REVIEWS.

10 (a) CONTINUING DISABILITY REVIEWS RELATING TO

11 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

12 1382c(a)(3)(H)), as so redesignated by section 211(a)(3)

13 of this Act, is amended—

14 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

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

16 clause:

17 ‘‘(ii)(I) Not less frequently than once every 3 years,

18 the Commissioner shall review in accordance with para19 graph (4) the continued eligibility for benefits under this

20 title of each individual who has not attained 18 years of

21 age and is eligible for such benefits by reason of an im22 pairment (or combination of impairments) which may im23 prove (or, which is unlikely to improve, at the option of

24 the Commissioner).
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1 ‘‘(II) A parent or guardian 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

7 title.’’.

8 (b) DISABILITY ELIGIBILITY REDETERMINATIONS

9 REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS

10 OF AGE.—

11 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

12 U.S.C. 1382c(a)(3)(H)), as so redesignated by sec13 tion 211(a)(3) of this Act and as amended by sub14 section (a) of this section, is amended by adding at

15 the end the following new clause:

16 ‘‘(iii) If an individual is eligible for benefits under this

17 title by reason of disability for the month preceding the

18 month in which the individual attains the age of 18 years,

19 the Commissioner shall redetermine such eligibility—

20 ‘‘(I) during the 1-year period beginning on the

21 individual’s 18th birthday; and

22 ‘‘(II) by applying the criteria used in determin23 ing the initial eligibility for applicants who have at24 tained the age of 18 years.
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1 With respect to a redetermination under this clause, para2 graph (4) shall not apply and such redetermination shall

3 be considered a substitute for a review or redetermination

4 otherwise required under any other provision of this sub5 paragraph during that 1-year period.’’.

6 (2) CONFORMING REPEAL.—Section 207 of the

7 Social Security Independence and Program Improve8 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

9 1516) is hereby repealed.

10 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

11 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)

12 (42 U.S.C. 1382c(a)(3)(H)), as so redesignated by section

13 211(a)(3) of this Act and as amended by subsections (a)

14 and (b) of this section, is amended by adding at the end

15 the following new clause:

16 ‘‘(iv)(I) Not later than 12 months after the birth of

17 an individual, the Commissioner shall review in accordance

18 with paragraph (4) the continuing eligibility for benefits

19 under this title by reason of disability of such individual

20 whose low birth weight is a contributing factor material

21 to the Commissioner’s determination that the individual

22 is disabled.

23 ‘‘(II) A review under subclause (I) shall be considered

24 a substitute for a review otherwise required under any
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1 other provision of this subparagraph during that 12-

2 month period.

3 ‘‘(III) A parent or guardian of a recipient whose case

4 is reviewed under this clause shall present, at the time

5 of review, evidence demonstrating that the recipient is,

6 and has been, receiving treatment, to the extent consid7 ered medically necessary and available, of the condition

8 which was the basis for providing benefits under this

9 title.’’.

10 (d) EFFECTIVE DATE.—The amendments made by

11 this section shall apply to benefits for months beginning

12 on or after the date of the enactment of this Act, without

13 regard to whether regulations have been issued to imple14 ment such amendments.

15 (e) APPROPRIATION.—Out of any money in the

16 Treasury of the United States not otherwise appropriated,

17 there are appropriated to the Secretary of Health and

18 Human Services for the conduct of continuing disability

19 reviews pursuant to the amendments made by this sec20 tion—

21 (1) $200,000,000 for fiscal year 1997;

22 (2) $75,000,000 for fiscal year 1998; and

23 (3) $25,000,000 for fiscal year 1999.
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1 SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

2 (a) TIGHTENING OF REPRESENTATIVE PAYEE RE3 QUIREMENTS.—

4 (1) CLARIFICATION OF ROLE.—Section

5 1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is

6 amended by striking ‘‘and’’ at the end of subclause

7 (II), by striking the period at the end of subclause

8 (IV) and inserting ‘‘; and’’, and by adding after sub9 clause (IV) the following new subclause:

10 ‘‘(V) advise such person through the notice of

11 award of benefits, and at such other times as the

12 Commissioner of Social Security deems appropriate,

13 of specific examples of appropriate expenditures of

14 benefits under this title and the proper role of a rep15 resentative payee.’’.

16 (2) DOCUMENTATION OF EXPENDITURES RE17 QUIRED.—

18 (A) IN GENERAL.—Subparagraph (C)(i) of

19 section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is

20 amended to read as follows:

21 ‘‘(C)(i) In any case where payment is made to a rep22 resentative payee of an individual or spouse, the Commis23 sioner of Social Security shall—

24 ‘‘(I) require such representative payee to docu25 ment expenditures and keep contemporaneous
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1 records of transactions made using such payment;

2 and

3 ‘‘(II) implement statistically valid procedures

4 for reviewing a sample of such contemporaneous

5 records in order to identify instances in which such

6 representative payee is not properly using such pay7 ment.’’.

8 (B) CONFORMING AMENDMENT WITH RE9 SPECT TO PARENT PAYEES.—Clause (ii) of sec10 tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C))

11 is amended by striking ‘‘Clause (i)’’ and insert12 ing ‘‘Subclauses (II) and (III) of clause (i)’’.

13 (3) EFFECTIVE DATE.—The amendments made

14 by this subsection shall apply to benefits paid after

15 the date of the enactment of this Act.

16 (b) DEDICATED SAVINGS ACCOUNTS.—

17 (1) IN GENERAL.—Section 1631(a)(2)(B) (42

18 U.S.C. 1383(a)(2)(B)) is amended by adding at the

19 end the following:

20 ‘‘(xiv) Notwithstanding clause (x), the Commissioner

21 of Social Security may, at the request of the representative

22 payee, pay any lump sum payment for the benefit of a

23 child into a dedicated savings account that could only be

24 used to purchase for such child—

25 ‘‘(I) education and job skills training;
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1 ‘‘(II) special equipment or housing modifica2 tions or both specifically related to, and required by

3 the nature of, the child’s disability; and

4 ‘‘(III) appropriate therapy and rehabilitation.’’.

5 (2) DISREGARD OF TRUST FUNDS.—Section

6 1613(a) (42 U.S.C. 1382b(a)) is amended—

7 (A) by striking ‘‘and’’ at the end of para8 graph (10),

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

10 paragraph (11) and inserting ‘‘; and’’, and

11 (C) by inserting after paragraph (11) the

12 following:

13 ‘‘(12) all amounts deposited in, or interest cred14 ited to, a dedicated savings account described in sec15 tion 1631(a)(2)(B)(xiv).’’.

16 (3) EFFECTIVE DATE.—The amendments made

17 by this subsection shall apply to payments made

18 after the date of the enactment of this Act.

19 SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO IN20 STITUTIONALIZED INDIVIDUALS WHOSE MED21 ICAL COSTS ARE COVERED BY PRIVATE IN22 SURANCE.

23 (a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.

24 1382(e)(1)(B)) is amended—
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1 (1) by striking ‘‘title XIX, or’’ and inserting

2 ‘‘title XIX,’’; and

3 (2) by inserting ‘‘or, in the case of an eligible

4 individual under the age of 18 receiving payments

5 (with respect to such individual) under any health

6 insurance policy issued by a private provider of such

7 insurance’’ after ‘‘section 1614(f)(2)(B),’’.

8 (b) EFFECTIVE DATE.—The amendment made by

9 this section shall apply to benefits for months beginning

10 90 or more days after the date of the enactment of this

11 Act, without regard to whether regulations have been is12 sued to implement such amendments.

13 SEC. 215. MODIFICATION RESPECTING PARENTAL INCOME

14 DEEMED TO DISABLED CHILDREN.

15 (a) IN GENERAL.—Section 1614(f)(2) (42 U.S.C.

16 1382c(f)(2)) is amended—

17 (1) by adding at the end of subparagraph (A)

18 the following: ‘‘For purposes of the preceding sen19 tence, the income of such parent or spouse of such

20 parent shall be reduced by—

21 ‘‘(A) the allocation for basic needs described in

22 subparagraph (C)(i); and

23 ‘‘(B) the earned income disregard described in

24 subparagraph (C)(ii).’’; and

25 (2) by adding at the end the following:
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1 ‘‘(C)(i) The allocation for basic needs described by

2 this clause is—

3 ‘‘(I) in the case of an individual who does not

4 have a spouse, an amount equal to 50 percent of the

5 maximum monthly benefit payable under this title to

6 an eligible individual who does not have an eligible

7 spouse; or

8 ‘‘(II) in the case of an individual who has a

9 spouse, an amount equal to 50 percent of the maxi10 mum monthly benefit payable under this title to an

11 eligible individual who has an eligible spouse.

12 ‘‘(ii) The earned income disregard described by this

13 clause is an amount determined by deducting the first

14 $780 per year (or proportionally smaller amounts for

15 shorter periods) plus 64 percent of the remainder from

16 the earned income (determined in accordance with section

17 1612(a)(1)) of the parent (and spouse, if any).’’.

18 (b) PRESERVATION OF MEDICAID ELIGIBILITY.—

19 Section 1634 (42 U.S.C. 1383c) is amended by adding

20 at the end the following:

21 ‘‘(f) Any child who has not attained 18 years of age

22 and who would be eligible for a payment under this title

23 but for the amendment made by section 215(a) of the

24 Peronsal Responsibility and Work Opportunity Act of

25 1996 shall be deemed to be receiving such payment for
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1 purposes of eligibility of the child for medical assistance

2 under a State plan approved under title XIX of this Act.’’.

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

4 this section shall apply to months after 1996.

5 SEC. 216. GRADUATED BENEFITS FOR ADDITIONAL CHIL6 DREN.

7 (a) IN GENERAL.—Section 1611(b) (42 U.S.C.

8 1382(b)) is amended by adding at the end the following:

9 ‘‘(3)(A) The benefit under this title for each eligible

10 blind or disabled individual as determined pursuant to sec11 tion 1611(a)(1) who—

12 ‘‘(i) is a child under the age of 18,

13 ‘‘(ii) lives in the same household as 1 or more

14 persons who are also eligible blind or disabled chil15 dren under the age of 18, and

16 ‘‘(iii) does not live in a group or foster home,

17 shall be equal to the applicable percentage of the amount

18 in section 1611(b)(1), reduced by the amount of any in19 come of such child, including income deemed to such child

20 under section 1614(f)(2).

21 ‘‘(B) For purposes of this paragraph, the applicable

22 percentage shall be determined under the following table:

The applicable percentage for

‘‘If the household has: each eligible child is:

1 eligible child ................................ 100 percent

2 eligible children .......................... 81.2 percent

3 eligible children .......................... 71.8 percent

4 eligible children .......................... 65.9 percent

5 eligible children .......................... 61.8 percent
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The applicable percentage for

‘‘If the household has: each eligible child is:

6 eligible children .......................... 58.5 percent

7 eligible children .......................... 55.9 percent

8 eligible children .......................... 53.5 percent

9 eligible children .......................... 51.7 percent

10 eligible children ........................ 50.2 percent

11 eligible children ........................ 48.7 percent

12 eligible children or more ........... 47.4 percent.’’.

1 ‘‘(C) For purposes of this paragraph, the applicable

2 household size shall be determined by the number of eligi3 ble blind and disabled children under the age of 18 in such

4 household whose countable income and resources do not

5 exceed the limits specified in section 1611(a)(1).’’.

6 (b) PRESERVATION OF MEDICAID ELIGIBILITY.—

7 Section 1634 (42 U.S.C. 1383c), as amended by section

8 215(b) of this Act, is amended by adding at the end the

9 following:

10 ‘‘(g) Any child who has not attained 18 years of age

11 and would be eligible for a payment under this title but

12 for the limitation on payment amount imposed by section

13 1611(b)(3) shall be deemed to be receiving such benefit

14 for purposes of establishing such child’s eligibility for med15 ical assistance under a State plan approved under title

16 XIX.’’.

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

18 this section shall take effect—

19 (1) on the date of the enactment of this Act,

20 with respect to payments made on the basis of deter-
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1 minations of eligibility made on or after such date,

2 and

3 (2) on January 1, 1998, with respect to pay4 ments made for months beginning after such date on

5 the basis of determinations of eligibility made before

6 the date of the enactment of this Act.

7 Subtitle C—State Supplementation

8 Programs

9 SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIRE10 MENTS APPLICABLE TO OPTIONAL STATE

11 PROGRAMS FOR SUPPLEMENTATION OF SSI

12 BENEFITS.

13 Section 1618 (42 U.S.C. 1382g) is hereby repealed.

14 Subtitle D—Studies Regarding

15 Supplemental Security Income

16 Program

17 SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU18 RITY INCOME PROGRAM.

19 Title XVI (42 U.S.C. 1381 et seq.), as amended by

20 section 201(c) of this Act, is amended by adding at the

21 end the following new section:

22 ‘‘ANNUAL REPORT ON PROGRAM

23 ‘‘SEC. 1637. (a) Not later than May 30 of each year,

24 the Commissioner of Social Security shall prepare and de25 liver a report annually to the President and the Congress

26 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 at initial determinations, reconsider6 ations, administrative law judge hearings, council of

7 appeals hearings, and Federal court appeal hearings;

8 ‘‘(3) historical and current data on characteris9 tics of recipients and program costs, by recipient

10 group (aged, blind, work disabled adults, and chil11 dren);

12 ‘‘(4) projections of future number of recipients

13 and program costs, through at least 25 years;

14 ‘‘(5) number of redeterminations and continu15 ing disability reviews, and the outcomes of such re16 determinations and reviews;

17 ‘‘(6) data on the utilization of work incentives;

18 ‘‘(7) detailed information on administrative and

19 other program operation costs;

20 ‘‘(8) summaries of relevant research undertaken

21 by the Social Security Administration, or by other

22 researchers;

23 ‘‘(9) State supplementation program operations;

24 ‘‘(10) a historical summary of statutory

25 changes to this title; and
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1 ‘‘(11) such other information as the Commis2 sioner deems useful.

3 ‘‘(b) Each member of the Social Security Advisory

4 Board shall be permitted to provide an individual report,

5 or a joint report if agreed, of views of the program under

6 this title, to be included in the annual report under this

7 section.’’.

8 SEC. 232. STUDY OF DISABILITY DETERMINATION PROC9 ESS.

10 (a) IN GENERAL.—Not later than 90 days after the

11 date of the enactment of this Act, and from funds other12 wise appropriated, the Commissioner of Social Security

13 shall make arrangements with the National Academy of

14 Sciences, or other independent entity, to conduct a study

15 of the disability determination process under titles II and

16 XVI of the Social Security Act. This study shall be under17 taken in consultation with professionals representing ap18 propriate disciplines.

19 (b) STUDY COMPONENTS.—The study described in

20 subsection (a) shall include—

21 (1) an initial phase examining the appropriate22 ness of, and making recommendations regarding—

23 (A) the definitions of disability in effect on

24 the date of the enactment of this Act and the
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1 advantages and disadvantages of alternative

2 definitions; and

3 (B) the operation of the disability deter4 mination process, including the appropriate

5 method of performing comprehensive assess6 ments of individuals under age 18 with physical

7 and mental impairments;

8 (2) a second phase, which may be concurrent

9 with the initial phase, examining the validity, reli10 ability, and consistency with current scientific knowl11 edge of the standards and individual listings in the

12 Listing of Impairments set forth in appendix 1 of

13 subpart P of part 404 of title 20, Code of Federal

14 Regulations, and of related evaluation procedures as

15 promulgated by the Commissioner of Social Security;

16 and

17 (3) such other issues as the applicable entity

18 considers appropriate.

19 (c) REPORTS AND REGULATIONS.—

20 (1) REPORTS.—The Commissioner of Social Se21 curity shall request the applicable entity, to submit

22 an interim report and a final report of the findings

23 and recommendations resulting from the study de24 scribed in this section to the President and the Con25 gress not later than 18 months and 24 months, re-
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•HR 3832 IH

1 spectively, from the date of the contract for such

2 study, and such additional reports as the Commis3 sioner deems appropriate after consultation with the

4 applicable entity.

5 (2) REGULATIONS.—The Commissioner of So6 cial Security shall review both the interim and final

7 reports, and shall issue regulations implementing

8 any necessary changes following each report.

9 SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

10 Not later than January 1, 1998, the Comptroller

11 General of the United States shall study and report on—

12 (1) the impact of the amendments made by,

13 and the provisions of, this title on the supplemental

14 security income program under title XVI of the So15 cial Security Act; and

16 (2) extra expenses incurred by families of chil17 dren receiving benefits under such title that are not

18 covered by other Federal, State, or local programs.

19 Subtitle E—National Commission

20 on the Future of Disability

21 SEC. 241. ESTABLISHMENT.

22 There is established a commission to be known as the

23 National Commission on the Future of Disability (referred

24 to in this subtitle as the ‘‘Commission’’).
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1 SEC. 242. DUTIES OF THE COMMISSION.

2 (a) IN GENERAL.—The Commission shall develop

3 and carry out a comprehensive study of all matters related

4 to the nature, purpose, and adequacy of all Federal pro5 grams serving individuals with disabilities. In particular,

6 the Commission shall study the disability insurance pro7 gram under title II of the Social Security Act and the sup8 plemental security income program under title XVI of

9 such Act.

10 (b) MATTERS STUDIED.—The Commission shall pre11 pare an inventory of Federal programs serving individuals

12 with disabilities, and shall examine—

13 (1) trends and projections regarding the size

14 and characteristics of the population of individuals

15 with disabilities, and the implications of such analy16 ses for program planning;

17 (2) the feasibility and design of performance

18 standards for the Nation’s disability programs;

19 (3) the adequacy of Federal efforts in rehabili20 tation research and training, and opportunities to

21 improve the lives of individuals with disabilities

22 through all manners of scientific and engineering re23 search; and

24 (4) the adequacy of policy research available to

25 the Federal Government, and what actions might be
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1 undertaken to improve the quality and scope of such

2 research.

3 (c) RECOMMENDATIONS.—The Commission shall

4 submit to the appropriate committees of the Congress and

5 to the President recommendations and, as appropriate,

6 proposals for legislation, regarding—

7 (1) which (if any) Federal disability programs

8 should be eliminated or augmented;

9 (2) what new Federal disability programs (if

10 any) should be established;

11 (3) the suitability of the organization and loca12 tion of disability programs within the Federal Gov13 ernment;

14 (4) other actions the Federal Government

15 should take to prevent disabilities and disadvantages

16 associated with disabilities; and

17 (5) such other matters as the Commission con18 siders appropriate.

19 SEC. 243. MEMBERSHIP.

20 (a) NUMBER AND APPOINTMENT.—

21 (1) IN GENERAL.—The Commission shall be

22 composed of 15 members, of whom—

23 (A) five shall be appointed by the Presi24 dent, of whom not more than 3 shall be of the

25 same major political party;
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1 (B) three shall be appointed by the Major2 ity Leader of the Senate;

3 (C) two shall be appointed by the Minority

4 Leader of the Senate;

5 (D) three shall be appointed by the Speak6 er of the House of Representatives; and

7 (E) two shall be appointed by the Minority

8 Leader of the House of Representatives.

9 (2) REPRESENTATION.—The Commission mem10 bers shall be chosen based on their education, train11 ing, or experience. In appointing individuals as

12 members of the Commission, the President and the

13 Majority and Minority Leaders of the Senate and

14 the Speaker and Minority Leader of the House of

15 Representatives shall seek to ensure that the mem16 bership of the Commission reflects the general inter17 ests of the business and taxpaying community and

18 the diversity of individuals with disabilities in the

19 United States.

20 (b) COMPTROLLER GENERAL.—The Comptroller

21 General of the United States shall advise the Commission

22 on the methodology and approach of the study of the Com23 mission.

24 (c) TERM OF APPOINTMENT.—The members shall

25 serve on the Commission for the life of the Commission.
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1 (d) MEETINGS.—The Commission shall locate its

2 headquarters in the District of Columbia, and shall meet

3 at the call of the Chairperson, but not less than 4 times

4 each year during the life of the Commission.

5 (e) QUORUM.—Ten members of the Commission shall

6 constitute a quorum, but a lesser number may hold hear7 ings.

8 (f) CHAIRPERSON AND VICE CHAIRPERSON.—Not

9 later than 15 days after the members of the Commission

10 are appointed, such members shall designate a Chair11 person and Vice Chairperson from among the members of

12 the Commission.

13 (g) CONTINUATION OF MEMBERSHIP.—If a member

14 of the Commission becomes an officer or employee of any

15 government after appointment to the Commission, the in16 dividual may continue as a member until a successor mem17 ber is appointed.

18 (h) VACANCIES.—A vacancy on the Commission shall

19 be filled in the manner in which the original appointment

20 was made not later than 30 days after the Commission

21 is given notice of the vacancy.

22 (i) COMPENSATION.—Members of the Commission

23 shall receive no additional pay, allowances, or benefits by

24 reason of their service on the Commission.
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1 (j) TRAVEL EXPENSES.—Each member of the Com2 mission shall receive travel expenses, including per diem

3 in lieu of subsistence, in accordance with sections 5702

4 and 5703 of title 5, United States Code.

5 SEC. 244. STAFF AND SUPPORT SERVICES.

6 (a) DIRECTOR.—

7 (1) APPOINTMENT.—Upon consultation with

8 the members of the Commission, the Chairperson

9 shall appoint a Director of the Commission.

10 (2) COMPENSATION.—The Director shall be

11 paid the rate of basic pay for level V of the Execu12 tive Schedule.

13 (b) STAFF.—With the approval of the Commission,

14 the Director may appoint such personnel as the Director

15 considers appropriate.

16 (c) APPLICABILITY OF CIVIL SERVICE LAWS.—The

17 staff of the Commission shall be appointed without regard

18 to the provisions of title 5, United States Code, governing

19 appointments in the competitive service, and shall be paid

20 without regard to the provisions of chapter 51 and sub21 chapter III of chapter 53 of such title relating to classi22 fication and General Schedule pay rates.

23 (d) EXPERTS AND CONSULTANTS.—With the ap24 proval of the Commission, the Director may procure tem-
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1 porary and intermittent services under section 3109(b) of

2 title 5, United States Code.

3 (e) STAFF OF FEDERAL AGENCIES.—Upon the re4 quest of the Commission, the head of any Federal agency

5 may detail, on a reimbursable basis, any of the personnel

6 of such agency to the Commission to assist in carrying

7 out the duties of the Commission under this subtitle.

8 (f) OTHER RESOURCES.—The Commission shall have

9 reasonable access to materials, resources, statistical data,

10 and other information from the Library of Congress and

11 agencies and elected representatives of the executive and

12 legislative branches of the Federal Government. The

13 Chairperson of the Commission shall make requests for

14 such access in writing when necessary.

15 (g) PHYSICAL FACILITIES.—The Administrator of

16 the General Services Administration shall locate suitable

17 office space for the operation of the Commission. The fa18 cilities shall serve as the headquarters of the Commission

19 and shall include all necessary equipment and incidentals

20 required for proper functioning of the Commission.

21 SEC. 245. POWERS OF COMMISSION.

22 (a) HEARINGS.—The Commission may conduct pub23 lic hearings or forums at the discretion of the Commission,

24 at any time and place the Commission is able to secure
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1 facilities and witnesses, for the purpose of carrying out

2 the duties of the Commission under this subtitle.

3 (b) DELEGATION OF AUTHORITY.—Any member or

4 agent of the Commission may, if authorized by the Com5 mission, take any action the Commission is authorized to

6 take by this section.

7 (c) INFORMATION.—The Commission may secure di8 rectly from any Federal agency information necessary to

9 enable the Commission to carry out its duties under this

10 subtitle. Upon request of the Chairperson or Vice Chair11 person of the Commission, the head of a Federal agency

12 shall furnish the information to the Commission to the ex13 tent permitted by law.

14 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis15 sion may accept, use, and dispose of gifts, bequests, or

16 devises of services or property, both real and personal, for

17 the purpose of aiding or facilitating the work of the Com18 mission. Gifts, bequests, or devises of money and proceeds

19 from sales of other property received as gifts, bequests,

20 or devises shall be deposited in the Treasury and shall be

21 available for disbursement upon order of the Commission.

22 (e) MAILS.—The Commission may use the United

23 States mails in the same manner and under the same con24 ditions as other Federal agencies.
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1 SEC. 246. REPORTS.

2 (a) INTERIM REPORT.—Not later than 1 year prior

3 to the date on which the Commission terminates pursuant

4 to section 247, the Commission shall submit an interim

5 report to the President and to the Congress. The interim

6 report shall contain a detailed statement of the findings

7 and conclusions of the Commission, together with the

8 Commission’s recommendations for legislative and admin9 istrative action, based on the activities of the Commission.

10 (b) FINAL REPORT.—Not later than the date on

11 which the Commission terminates, the Commission shall

12 submit to the Congress and to the President a final report

13 containing—

14 (1) a detailed statement of final findings, con15 clusions, and recommendations; and

16 (2) an assessment of the extent to which rec17 ommendations of the Commission included in the in18 terim report under subsection (a) have been imple19 mented.

20 (c) PRINTING AND PUBLIC DISTRIBUTION.—Upon

21 receipt of each report of the Commission under this sec22 tion, the President shall—

23 (1) order the report to be printed; and

24 (2) make the report available to the public upon

25 request.
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1 SEC. 247. TERMINATION.

2 The Commission shall terminate on the date that is

3 2 years after the date on which the members of the Com4 mission have met and designated a Chairperson and Vice

5 Chairperson.

6 SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

7 There are authorized to be appropriated such sums

8 as are necessary to carry out the purposes of the Commis9 sion.

10 TITLE III—CHILD SUPPORT

11 SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

12 Except as otherwise specifically provided, where ever

13 in this title an amendment is expressed in terms of an

14 amendment to or repeal of a section or other provision,

15 the reference shall be considered to be made to that sec16 tion or other provision of the Social Security Act.

17 Subtitle A—Eligibility for Services;

18 Distribution of Payments

19 SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUP20 PORT ENFORCEMENT SERVICES.

21 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

22 U.S.C. 654) is amended—

23 (1) by striking paragraph (4) and inserting the

24 following new paragraph:

25 ‘‘(4) provide that the State will—
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1 ‘‘(A) provide services relating to the estab2 lishment of paternity or the establishment,

3 modification, or enforcement of child support

4 obligations, as appropriate, under the plan with

5 respect to—

6 ‘‘(i) each child for whom (I) assist7 ance is provided under the State program

8 funded under part A of this title, (II) ben9 efits or services for foster care mainte10 nance and adoption assistance are provided

11 under the State program funded under

12 part B of this title, or (III) medical assist13 ance is provided under the State plan ap14 proved under title XIX, unless the State

15 agency administering the plan determines

16 (in accordance with paragraph (29)) that

17 it is against the best interests of the child

18 to do so; and

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. 302. 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.—An amount collected on behalf

21 of a family as support by a State pursuant to a plan ap22 proved under this part shall be distributed as follows:

23 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

24 case of a family receiving assistance from the State,

25 the State shall—
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1 ‘‘(A) pay to the Federal Government the

2 Federal share of the amount so collected; and

3 ‘‘(B) retain, or distribute to the family, the

4 State share of the amount so collected.

5 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS6 SISTANCE.—In the case of a family that formerly re7 ceived assistance from the State:

8 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

9 the extent that the amount so collected does not

10 exceed the amount required to be paid to the

11 family for the month in which collected, the

12 State shall distribute the amount so collected to

13 the family.

14 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

15 extent that the amount so collected exceeds the

16 amount required to be paid to the family for

17 the month in which collected, the State shall

18 distribute the amount so collected as follows:

19 ‘‘(i) DISTRIBUTION OF ARREARAGES

20 THAT ACCRUED AFTER THE FAMILY

21 CEASED TO RECEIVE ASSISTANCE.—

22 ‘‘(I) PRE-OCTOBER 1997.—The

23 provisions of this section (other than

24 subsection (b)(1)) as in effect and ap25 plied on the day before the date of the
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1 enactment of section 302 of the Bi2 partisan Welfare Reform Act of 1996

3 shall apply with respect to the dis4 tribution of support arrearages that—

5 ‘‘(aa) accrued after the fam6 ily ceased to receive assistance,

7 and

8 ‘‘(bb) are collected before

9 October 1, 1997.

10 ‘‘(II) POST-SEPTEMBER 1997.—

11 With respect the amount so collected

12 on or after October 1, 1997, or before

13 such date, at the option of the

14 State—

15 ‘‘(aa) IN GENERAL.—The

16 State shall first distribute the

17 amount so collected (other than

18 any amount described in clause

19 (iv)) to the family to the extent

20 necessary to satisfy any support

21 arrearages with respect to the

22 family that accrued after the

23 family ceased to receive assist24 ance from the State.
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1 ‘‘(bb) REIMBURSEMENT OF

2 GOVERNMENTS FOR ASSISTANCE

3 PROVIDED TO THE FAMILY.—

4 After the application of division

5 (aa) and clause (ii)(II)(aa) with

6 respect to the amount so col7 lected, the State shall retain the

8 State share of the amount so col9 lected, and pay to the Federal

10 Government the Federal share

11 (as defined in subsection

12 (c)(2)(A)) of the amount so col13 lected, but only to the extent nec14 essary to reimburse amounts paid

15 to the family as assistance by the

16 State.

17 ‘‘(cc) DISTRIBUTION OF THE

18 REMAINDER TO THE FAMILY.—

19 To the extent that neither divi20 sion (aa) nor division (bb) applies

21 to the amount so collected, the

22 State shall distribute the amount

23 to the family.
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1 ‘‘(ii) DISTRIBUTION OF ARREARAGES

2 THAT ACCRUED BEFORE THE FAMILY RE3 CEIVED ASSISTANCE.—

4 ‘‘(I) PRE-OCTOBER 2000.—The

5 provisions of this section (other than

6 subsection (b)(1)) as in effect and ap7 plied on the day before the date of the

8 enactment of section 302 of the Bi9 partisan Welfare Reform Act of 1996

10 shall apply with respect to the dis11 tribution of support arrearages that—

12 ‘‘(aa) accrued before the

13 family received assistance, and

14 ‘‘(bb) are collected before

15 October 1, 2000.

16 ‘‘(II) POST-SEPTEMBER 2000.—

17 Unless, based on the report required

18 by paragraph (4), the Congress deter19 mines otherwise, with respect to the

20 amount so collected on or after Octo21 ber 1, 2000, or before such date, at

22 the option of the State—

23 ‘‘(aa) IN GENERAL.—The

24 State shall first distribute the

25 amount so collected (other than
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1 any amount described in clause

2 (iv)) to the family to the extent

3 necessary to satisfy any support

4 arrearages with respect to the

5 family that accrued before the

6 family received assistance from

7 the State.

8 ‘‘(bb) REIMBURSEMENT OF

9 GOVERNMENTS FOR ASSISTANCE

10 PROVIDED TO THE FAMILY.—

11 After the application of clause

12 (i)(II)(aa) and division (aa) with

13 respect to the amount so col14 lected, the State shall retain the

15 State share of the amount so col16 lected, and pay to the Federal

17 Government the Federal share

18 (as defined in subsection (c)(2))

19 of the amount so collected, but

20 only to the extent necessary to

21 reimburse of the amounts paid to

22 the family as assistance by the

23 State.

24 ‘‘(cc) DISTRIBUTION OF THE

25 REMAINDER TO THE FAMILY.—
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1 To the extent that neither divi2 sion (aa) nor division (bb) applies

3 to the amount so collected, the

4 State shall distribute the amount

5 to the family.

6 ‘‘(iii) DISTRIBUTION OF ARREARAGES

7 THAT ACCRUED WHILE THE FAMILY RE8 CEIVED ASSISTANCE.—In the case of a

9 family described in this subparagraph, the

10 provisions of paragraph (1) shall apply

11 with respect to the distribution of support

12 arrearages that accrued while the family

13 received assistance.

14 ‘‘(iv) AMOUNTS COLLECTED PURSU15 ANT TO SECTION 464.—Notwithstanding

16 any other provision of this section, any

17 amount of support collected pursuant to

18 section 464 shall be retained by the State

19 to the extent necessary to reimburse

20 amounts paid to the family as assistance

21 by the State. The State shall pay to the

22 Federal Government the Federal share of

23 the amounts so retained. To the extent the

24 amount collected pursuant to section 464
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1 exceeds the amount so retained, the State

2 shall distribute the excess to the family.

3 ‘‘(v) ORDERING RULES FOR DISTRIBU4 TIONS.—For purposes of this subpara5 graph, the State shall treat any support

6 arrearages collected as accruing in the fol7 lowing order:

8 ‘‘(I) to the period after the fam9 ily ceased to receive assistance;

10 ‘‘(II) to the period before the

11 family received assistance; and

12 ‘‘(III) to the period while the

13 family was receiving assistance.

14 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST15 ANCE.—In the case of any other family, the State

16 shall distribute the amount so collected to the fam17 ily.

18 ‘‘(4) STUDY AND REPORT.—Not later than Oc19 tober 1, 1998, the Secretary shall report to the Con20 gress the Secretary’s findings with respect to—

21 ‘‘(A) whether the distribution of post-as22 sistance arrearages to families has been effec23 tive in moving people off of welfare and keeping

24 them off of welfare;
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1 ‘‘(B) whether early implementation of a

2 pre-assistance arrearage program by some

3 States has been effective in moving people off

4 of welfare and keeping them off of welfare;

5 ‘‘(C) what the overall impact has been of

6 the amendments made by the Bipartisan Wel7 fare Reform Act of 1996 with respect to child

8 support enforcement in moving people off of

9 welfare and keeping them off of welfare; and

10 ‘‘(D) based on the information and data

11 the Secretary has obtained, what changes, if

12 any, should be made in the policies related to

13 the distribution of child support arrearages.

14 ‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights

15 to support obligations, which were assigned to a State as

16 a condition of receiving assistance from the State under

17 part A and which were in effect on the day before the

18 date of the enactment of the Bipartisan Welfare Reform

19 Act of 1996, shall remain assigned after such date.

20 ‘‘(c) DEFINITIONS.—As used in subsection (a):

21 ‘‘(1) ASSISTANCE.—The term ‘assistance from

22 the State’ means—

23 ‘‘(A) assistance under the State program

24 funded under part A or under the State plan

25 approved under part A of this title (as in effect
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1 on the day before the date of the enactment of

2 the Bipartisan Welfare Reform Act of 1996); or

3 ‘‘(B) benefits under the State plan ap4 proved under part E of this title (as in effect

5 on the day before the date of the enactment of

6 the Bipartisan Welfare Reform Act of 1996).

7 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

8 share’ means that portion of the amount collected

9 resulting from the application of the Federal medical

10 percentage in effect for the fiscal year in which the

11 amount is collected.

12 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT13 AGE.—The term ‘Federal medical assistance per14 centage’ means—

15 ‘‘(A) the Federal medical assistance per16 centage (as defined in section 1118), in the case

17 of Puerto Rico, the Virgin Islands, Guam, and

18 American Samoa; or

19 ‘‘(B) the Federal medical assistance per20 centage (as defined in section 1905(b)) in the

21 case of any other State.

22 ‘‘(4) STATE SHARE.—The term ‘State share’

23 means 100 percent minus the Federal share.

24 ‘‘(d) HOLD HARMLESS PROVISION.—If the amounts

25 collected which could be retained by the State in the fiscal
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1 year (to the extent necessary to reimburse the State for

2 amounts paid to families as assistance by the State) are

3 less than the State share of the amounts collected in fiscal

4 year 1995 (determined in accordance with section 457 as

5 in effect on the day before the date of the enactment of

6 the Bipartisan Welfare Reform Act of 1996), the State

7 share for the fiscal year shall be an amount equal to the

8 State share in fiscal year 1995.’’.

9 (b) CONFORMING AMENDMENTS.—

10 (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is

11 amended by striking ‘‘section 457(b)(4) or (d)(3)’’

12 and inserting ‘‘section 457’’.

13 (2) Section 454 (42 U.S.C. 654) is amended—

14 (A) in paragraph (11)—

15 (i) by striking ‘‘(11)’’ and inserting

16 ‘‘(11)(A)’’; and

17 (ii) by inserting after the semicolon

18 ‘‘and’’; and

19 (B) by redesignating paragraph (12) as

20 subparagraph (B) of paragraph (11).

21 (c) EFFECTIVE DATES.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this section

24 shall be effective on October 1, 1996, or earlier at

25 the State’s option.
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1 (2) CONFORMING AMENDMENTS.—The amend2 ments made by subsection (b)(2) shall become effec3 tive on the date of the enactment of this Act.

4 SEC. 303. PRIVACY SAFEGUARDS.

5 (a) STATE PLAN REQUIREMENT.—Section 454 (42

6 U.S.C. 654), as amended by section 301(b) of this Act,

7 is amended—

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

9 (24);

10 (2) by striking the period at the end of para11 graph (25) and inserting ‘‘; and’’; and

12 (3) by adding after paragraph (25) the follow13 ing new paragraph:

14 ‘‘(26) will have in effect safeguards, applicable

15 to all confidential information handled by the State

16 agency, that are designed to protect the privacy

17 rights of the parties, including—

18 ‘‘(A) safeguards against unauthorized use

19 or disclosure of information relating to proceed20 ings or actions to establish paternity, or to es21 tablish or enforce support;

22 ‘‘(B) prohibitions against the release of in23 formation on the whereabouts of 1 party to an24 other party against whom a protective order
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1 with respect to the former party has been en2 tered; and

3 ‘‘(C) prohibitions against the release of in4 formation on the whereabouts of 1 party to an5 other party if the State has reason to believe

6 that the release of the information may result

7 in physical or emotional harm to the former

8 party.’’.

9 (b) EFFECTIVE DATE.—The amendment made by

10 subsection (a) shall become effective on October 1, 1997.

11 SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

12 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

13 amended by section 302(b)(2) of this Act, is amended by

14 inserting after paragraph (11) the following new para15 graph:

16 ‘‘(12) provide for the establishment of proce17 dures to require the State to provide individuals who

18 are applying for or receiving services under the State

19 plan, or who are parties to cases in which services

20 are being provided under the State plan—

21 ‘‘(A) with notice of all proceedings in

22 which support obligations might be established

23 or modified; and

24 ‘‘(B) with a copy of any order establishing

25 or modifying a child support obligation, or (in
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1 the case of a petition for modification) a notice

2 of determination that there should be no change

3 in the amount of the child support award, with4 in 14 days after issuance of such order or de5 termination;’’.

6 (b) EFFECTIVE DATE.—The amendment made by

7 subsection (a) shall become effective on October 1, 1997.

8 Subtitle B—Locate and Case

9 Tracking

10 SEC. 311. STATE CASE REGISTRY.

11 Section 454A, as added by section 344(a)(2) of this

12 Act, is amended by adding at the end the following new

13 subsections:

14 ‘‘(e) STATE CASE REGISTRY.—

15 ‘‘(1) CONTENTS.—The automated system re16 quired by this section shall include a registry (which

17 shall be known as the ‘State case registry’) that con18 tains records with respect to—

19 ‘‘(A) each case in which services are being

20 provided by the State agency under the State

21 plan approved under this part; and

22 ‘‘(B) each support order established or

23 modified in the State on or after October 1,

24 1998.
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1 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

2 State case registry may be established by linking

3 local case registries of support orders through an

4 automated information network, subject to this sec5 tion.

6 ‘‘(3) USE OF STANDARDIZED DATA ELE7 MENTS.—Such records shall use standardized data

8 elements for both parents (such as names, social se9 curity numbers and other uniform identification

10 numbers, dates of birth, and case identification

11 numbers), and contain such other information (such

12 as on-case status) as the Secretary may require.

13 ‘‘(4) PAYMENT RECORDS.—Each case record in

14 the State case registry with respect to which services

15 are being provided under the State plan approved

16 under this part and with respect to which a support

17 order has been established shall include a record

18 of—

19 ‘‘(A) the amount of monthly (or other peri20 odic) support owed under the order, and other

21 amounts (including arrearages, interest or late

22 payment penalties, and fees) due or overdue

23 under the order;

24 ‘‘(B) any amount described in subpara25 graph (A) that has been collected;
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1 ‘‘(C) the distribution of such collected

2 amounts;

3 ‘‘(D) the birth date of any child for whom

4 the order requires the provision of support; and

5 ‘‘(E) the amount of any lien imposed with

6 respect to the order pursuant to section

7 466(a)(4).

8 ‘‘(5) UPDATING AND MONITORING.—The State

9 agency operating the automated system required by

10 this section shall promptly establish and maintain,

11 and regularly monitor, case records in the State case

12 registry with respect to which services are being pro13 vided under the State plan approved under this part,

14 on the basis of—

15 ‘‘(A) information on administrative actions

16 and administrative and judicial proceedings and

17 orders relating to paternity and support;

18 ‘‘(B) information obtained from compari19 son with Federal, State, or local sources of in20 formation;

21 ‘‘(C) information on support collections

22 and distributions; and

23 ‘‘(D) any other relevant information.

24 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS25 CLOSURES OF INFORMATION.—The State shall use the
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1 automated system required by this section to extract infor2 mation from (at such times, and in such standardized for3 mat or formats, as may be required by the Secretary), to

4 share and compare information with, and to receive infor5 mation from, other data bases and information compari6 son services, in order to obtain (or provide) information

7 necessary to enable the State agency (or the Secretary or

8 other State or Federal agencies) to carry out this part,

9 subject to section 6103 of the Internal Revenue Code of

10 1986. Such information comparison activities shall include

11 the following:

12 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP13 PORT ORDERS.—Furnishing to the Federal Case

14 Registry of Child Support Orders established under

15 section 453(h) (and update as necessary, with infor16 mation including notice of expiration of orders) the

17 minimum amount of information on child support

18 cases recorded in the State case registry that is nec19 essary to operate the registry (as specified by the

20 Secretary in regulations).

21 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

22 Exchanging information with the Federal Parent

23 Locator Service for the purposes specified in section

24 453.
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1 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

2 MEDICAID AGENCIES.—Exchanging information with

3 State agencies (of the State and of other States) ad4 ministering programs funded under part A, pro5 grams operated under State plans under title XIX,

6 and other programs designated by the Secretary, as

7 necessary to perform State agency responsibilities

8 under this part and under such programs.

9 ‘‘(4) INTRASTATE AND INTERSTATE INFORMA10 TION COMPARISONS.—Exchanging information with

11 other agencies of the State, agencies of other States,

12 and interstate information networks, as necessary

13 and appropriate to carry out (or assist other States

14 to carry out) the purposes of this part.’’.

15 SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT

16 PAYMENTS.

17 (a) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 301(b) and 303(a)

19 of this Act, is amended—

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

21 (25);

22 (2) by striking the period at the end of para23 graph (26) and inserting ‘‘; and’’; and

24 (3) by adding after paragraph (26) the follow25 ing new paragraph:
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1 ‘‘(27) provide that, on and after October 1,

2 1998, the State agency will—

3 ‘‘(A) operate a State disbursement unit in

4 accordance with section 454B; and

5 ‘‘(B) have sufficient State staff (consisting

6 of State employees) and (at State option) con7 tractors reporting directly to the State agency

8 to—

9 ‘‘(i) monitor and enforce support col10 lections through the unit in cases being en11 forced by the State pursuant to section

12 454(4) (including carrying out the auto13 mated data processing responsibilities de14 scribed in section 454A(g)); and

15 ‘‘(ii) take the actions described in sec16 tion 466(c)(1) in appropriate cases.’’.

17 (b) ESTABLISHMENT OF STATE DISBURSEMENT

18 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

19 amended by section 344(a)(2) of this Act, is amended by

20 inserting after section 454A the following new section:

21 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP22 PORT PAYMENTS.

23 ‘‘(a) STATE DISBURSEMENT UNIT.—

24 ‘‘(1) IN GENERAL.—In order for a State to

25 meet the requirements of this section, the State
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1 agency must establish and operate a unit (which

2 shall be known as the ‘State disbursement unit’) for

3 the collection and disbursement of payments under

4 support orders—

5 ‘‘(A) in all cases being enforced by the

6 State pursuant to section 454(4); and

7 ‘‘(B) in all cases not being enforced by the

8 State under this part in which the support

9 order is initially issued in the State on or after

10 January 1, 1994, and in which the wages of the

11 absent parent are subject to withholding pursu12 ant to section 466(a)(8)(B).

13 ‘‘(2) OPERATION.—The State disbursement

14 unit shall be operated—

15 ‘‘(A) directly by the State agency (or 2 or

16 more State agencies under a regional coopera17 tive agreement), or (to the extent appropriate)

18 by a contractor responsible directly to the State

19 agency; and

20 ‘‘(B) except in cases described in para21 graph (1)(B), in coordination with the auto22 mated system established by the State pursuant

23 to section 454A.

24 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

25 UNITS.—The State disbursement unit may be estab-
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1 lished by linking local disbursement units through

2 an automated information network, subject to this

3 section, if the Secretary agrees that the system will

4 not cost more nor take more time to establish or op5 erate than a centralized system. In addition, employ6 ers shall be given 1 location to which income with7 holding is sent.

8 ‘‘(b) REQUIRED PROCEDURES.—The State disburse9 ment unit shall use automated procedures, electronic proc10 esses, and computer-driven technology to the maximum

11 extent feasible, efficient, and economical, for the collection

12 and disbursement of support payments, including proce13 dures—

14 ‘‘(1) for receipt of payments from parents, em15 ployers, and other States, and for disbursements to

16 custodial parents and other obligees, the State agen17 cy, and the agencies of other States;

18 ‘‘(2) for accurate identification of payments;

19 ‘‘(3) to ensure prompt disbursement of the cus20 todial parent’s share of any payment; and

21 ‘‘(4) to furnish to any parent, upon request,

22 timely information on the current status of support

23 payments under an order requiring payments to be

24 made by or to the parent.

25 ‘‘(c) TIMING OF DISBURSEMENTS.—
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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the State disbursement unit shall distrib3 ute all amounts payable under section 457(a) within

4 2 business days after receipt from the employer or

5 other source of periodic income, if sufficient infor6 mation identifying the payee is provided.

7 ‘‘(2) PERMISSIVE RETENTION OF ARREAR8 AGES.—The State disbursement unit may delay the

9 distribution of collections toward arrearages until

10 the resolution of any timely appeal with respect to

11 such arrearages.

12 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec13 tion, the term ‘business day’ means a day on which State

14 offices are open for regular business.’’.

15 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

16 added by section 344(a)(2) and as amended by section 311

17 of this Act, is amended by adding at the end the following

18 new subsection:

19 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

20 PAYMENTS.—

21 ‘‘(1) IN GENERAL.—The State shall use the

22 automated system required by this section, to the

23 maximum extent feasible, to assist and facilitate the

24 collection and disbursement of support payments

25 through the State disbursement unit operated under
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1 section 454B, through the performance of functions,

2 including, at a minimum—

3 ‘‘(A) transmission of orders and notices to

4 employers (and other debtors) for the withhold5 ing of wages and other income—

6 ‘‘(i) within 2 business days after re7 ceipt from a court, another State, an em8 ployer, the Federal Parent Locator Service,

9 or another source recognized by the State

10 of notice of, and the income source subject

11 to, such withholding; and

12 ‘‘(ii) using uniform formats prescribed

13 by the Secretary;

14 ‘‘(B) ongoing monitoring to promptly iden15 tify failures to make timely payment of support;

16 and

17 ‘‘(C) automatic use of enforcement proce18 dures (including procedures authorized pursu19 ant to section 466(c)) if payments are not time20 ly made.

21 ‘‘(2) BUSINESS DAY DEFINED.—As used in

22 paragraph (1), the term ‘business day’ means a day

23 on which State offices are open for regular busi24 ness.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall become effective on October 1, 1998.

3 SEC. 313. STATE DIRECTORY OF NEW HIRES.

4 (a) STATE PLAN REQUIREMENT.—Section 454 (42

5 U.S.C. 654), as amended by sections 301(b), 303(a) and

6 312(a) of this Act, is amended—

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

8 (26);

9 (2) by striking the period at the end of para10 graph (27) and inserting ‘‘; and’’; and

11 (3) by adding after paragraph (27) the follow12 ing new paragraph:

13 ‘‘(28) provide that, on and after October 1,

14 1997, the State will operate a State Directory of

15 New Hires in accordance with section 453A.’’.

16 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

17 title IV (42 U.S.C. 651–669) is amended by inserting

18 after section 453 the following new section:

19 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

20 ‘‘(a) ESTABLISHMENT.—

21 ‘‘(1) IN GENERAL.—

22 ‘‘(A) REQUIREMENT FOR STATES THAT

23 HAVE NO DIRECTORY.—Except as provided in

24 subparagraph (B), not later than October 1,

25 1997, each State shall establish an automated
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1 directory (to be known as the ‘State Directory

2 of New Hires’) which shall contain information

3 supplied in accordance with subsection (b) by

4 employers on each newly hired employee.

5 ‘‘(B) STATES WITH NEW HIRE REPORTING

6 IN EXISTENCE.—A State which has a new hire

7 reporting law in existence on the date of the en8 actment of this section may continue to operate

9 under the State law, but the State must meet

10 the requirements of this section (other than

11 subsection (f)) not later than October 1, 1997.

12 ‘‘(2) DEFINITIONS.—As used in this section:

13 ‘‘(A) EMPLOYEE.—The term ‘employee’—

14 ‘‘(i) means an individual who is an

15 employee within the meaning of chapter 24

16 of the Internal Revenue Code of 1986; and

17 ‘‘(ii) does not include an employee of

18 a Federal or State agency performing in19 telligence or counterintelligence functions,

20 if the head of such agency has determined

21 that reporting pursuant to paragraph (1)

22 with respect to the employee could endan23 ger the safety of the employee or com24 promise an ongoing investigation or intel25 ligence mission.
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1 ‘‘(B) EMPLOYER.—

2 ‘‘(i) IN GENERAL.—The term ‘em3 ployer’ has the meaning given such term in

4 section 3401(d) of the Internal Revenue

5 Code of 1996 and includes any govern6 mental entity and any labor organization.

7 ‘‘(ii) LABOR ORGANIZATION.—The

8 term ‘labor organization’ shall have the

9 meaning given such term in section 2(5) of

10 the National Labor Relations Act, and in11 cludes any entity (also known as a ‘hiring

12 hall’) which is used by the organization

13 and an employer to carry out requirements

14 described in section 8(f)(3) of such Act of

15 an agreement between the organization

16 and the employer.

17 ‘‘(b) EMPLOYER INFORMATION.—

18 ‘‘(1) REPORTING REQUIREMENT.—

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

20 subparagraphs (B) and (C), each employer shall

21 furnish to the Directory of New Hires of the

22 State in which a newly hired employee works, a

23 report that contains the name, address, and so24 cial security number of the employee, and the

25 name and address of, and identifying number
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1 assigned under section 6109 of the Internal

2 Revenue Code of 1986 to, the employer.

3 ‘‘(B) MULTISTATE EMPLOYERS.—An em4 ployer that has employees who are employed in

5 2 or more States and that transmits reports

6 magnetically or electronically may comply with

7 subparagraph (A) by designating 1 State in

8 which such employer has employees to which

9 the employer will transmit the report described

10 in subparagraph (A), and transmitting such re11 port to such State. Any employer that transmits

12 reports pursuant to this subparagraph shall no13 tify the Secretary in writing as to which State

14 such employer designates for the purpose of

15 sending reports.

16 ‘‘(C) FEDERAL GOVERNMENT EMPLOY17 ERS.—Any department, agency, or instrumen18 tality of the United States shall comply with

19 subparagraph (A) by transmitting the report

20 described in subparagraph (A) to the National

21 Directory of New Hires established pursuant to

22 section 453.

23 ‘‘(2) TIMING OF REPORT.—Each State may

24 provide the time within which the report required by
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1 paragraph (1) shall be made with respect to an em2 ployee, but such report shall be made—

3 ‘‘(A) not later than 20 days after the date

4 the employer hires the employee; or

5 ‘‘(B) in the case of an employer transmit6 ting reports magnetically or electronically, by 2

7 monthly transmissions (if necessary) not less

8 than 12 days nor more than 16 days apart.

9 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re10 port required by subsection (b) shall be made on a W–

11 4 form or, at the option of the employer, an equivalent

12 form, and may be transmitted by 1st class mail, magneti13 cally, or electronically.

14 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

15 EMPLOYERS.—The State shall have the option to set a

16 State civil money penalty which shall be less than—

17 ‘‘(1) $25; or

18 ‘‘(2) $500 if, under State law, the failure is the

19 result of a conspiracy between the employer and the

20 employee to not supply the required report or to

21 supply a false or incomplete report.

22 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor23 mation shall be entered into the data base maintained by

24 the State Directory of New Hires within 5 business days

25 of receipt from an employer pursuant to subsection (b).
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1 ‘‘(f) INFORMATION COMPARISONS.—

2 ‘‘(1) IN GENERAL.—Not later than May 1,

3 1998, an agency designated by the State shall, di4 rectly or by contract, conduct automated compari5 sons of the social security numbers reported by em6 ployers pursuant to subsection (b) and the social se7 curity numbers appearing in the records of the State

8 case registry for cases being enforced under the

9 State plan.

10 ‘‘(2) NOTICE OF MATCH.—When an information

11 comparison conducted under paragraph (1) reveals a

12 match with respect to the social security number of

13 an individual required to provide support under a

14 support order, the State Directory of New Hires

15 shall provide the agency administering the State

16 plan approved under this part of the appropriate

17 State with the name, address, and social security

18 number of the employee to whom the social security

19 number is assigned, and the name of, and identify20 ing number assigned under section 6109 of the In21 ternal Revenue Code of 1986 to the employer.

22 ‘‘(g) TRANSMISSION OF INFORMATION.—

23 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

24 NOTICES TO EMPLOYERS.—Within 2 business days

25 after the date information regarding a newly hired
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1 employee is entered into the State Directory of New

2 Hires, the State agency enforcing the employee’s

3 child support obligation shall transmit a notice to

4 the employer of the employee directing the employer

5 to withhold from the wages of the employee an

6 amount equal to the monthly (or other periodic)

7 child support obligation (including any past due sup8 port obligation) of the employee, unless the employ9 ee’s wages are not subject to withholding pursuant

10 to section 466(b)(3).

11 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC12 TORY OF NEW HIRES.—

13 ‘‘(A) NEW HIRE INFORMATION.—Within 3

14 business days after the date information re15 garding a newly hired employee is entered into

16 the State Directory of New Hires, the State Di17 rectory of New Hires shall furnish the informa18 tion to the National Directory of New Hires.

19 ‘‘(B) WAGE AND UNEMPLOYMENT COM20 PENSATION INFORMATION.—The State Direc21 tory of New Hires shall, on a quarterly basis,

22 furnish to the National Directory of New Hires

23 extracts of the reports required under section

24 303(a)(6) to be made to the Secretary of Labor

25 concerning the wages and unemployment com-
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1 pensation paid to individuals, by such dates, in

2 such format, and containing such information

3 as the Secretary of Health and Human Services

4 shall specify in regulations.

5 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

6 subsection, the term ‘business day’ means a day on

7 which State offices are open for regular business.

8 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

9 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI10 GORS.—The agency administering the State plan ap11 proved under this part shall use information received

12 pursuant to subsection (f)(2) to locate individuals

13 for purposes of establishing paternity and establish14 ing, modifying, and enforcing child support obliga15 tions.

16 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER17 TAIN PROGRAMS.—A State agency responsible for

18 administering a program specified in section 1137(b)

19 shall have access to information reported by employ20 ers pursuant to subsection (b) of this section for

21 purposes of verifying eligibility for the program.

22 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU23 RITY AND WORKERS’ COMPENSATION.—State agen24 cies operating employment security and workers’

25 compensation programs shall have access to informa-
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1 tion reported by employers pursuant to subsection

2 (b) for the purposes of administering such pro3 grams.’’.

4 (c) QUARTERLY WAGE REPORTING.—Section

5 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

6 (1) by inserting ‘‘(including State and local gov7 ernmental entities and labor organizations (as de8 fined in section 453A(a)(2)(B)(iii))’’ after ‘‘employ9 ers’’; and

10 (2) by inserting ‘‘, and except that no report

11 shall be filed with respect to an employee of a State

12 or local agency performing intelligence or counter13 intelligence functions, if the head of such agency has

14 determined that filing such a report could endanger

15 the safety of the employee or compromise an ongo16 ing investigation or intelligence mission’’ after

17 ‘‘paragraph (2)’’.

18 SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLD19 ING.

20 (a) MANDATORY INCOME WITHHOLDING.—

21 (1) IN GENERAL.—Section 466(a)(1) (42

22 U.S.C. 666(a)(1)) is amended to read as follows:

23 ‘‘(1)(A) Procedures described in subsection (b)

24 for the withholding from income of amounts payable
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1 as support in cases subject to enforcement under the

2 State plan.

3 ‘‘(B) Procedures under which the wages of a

4 person with a support obligation imposed by a sup5 port order issued (or modified) in the State before

6 October 1, 1996, if not otherwise subject to with7 holding under subsection (b), shall become subject to

8 withholding as provided in subsection (b) if arrear9 ages occur, without the need for a judicial or admin10 istrative hearing.’’.

11 (2) CONFORMING AMENDMENTS.—

12 (A) Section 466(b) (42 U.S.C. 666(b)) is

13 amended in the matter preceding paragraph

14 (1), by striking ‘‘subsection (a)(1)’’ and insert15 ing ‘‘subsection (a)(1)(A)’’.

16 (B) Section 466(b)(4) (42 U.S.C.

17 666(b)(4)) is amended to read as follows:

18 ‘‘(4)(A) Such withholding must be carried out

19 in full compliance with all procedural due process re20 quirements of the State, and the State must send

21 notice to each noncustodial parent to whom para22 graph (1) applies—

23 ‘‘(i) that the withholding has commenced;

24 and
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1 ‘‘(ii) of the procedures to follow if the non2 custodial parent desires to contest such with3 holding on the grounds that the withholding or

4 the amount withheld is improper due to a mis5 take of fact.

6 ‘‘(B) The notice under subparagraph (A) of this

7 paragraph shall include the information provided to

8 the employer under paragraph (6)(A).’’.

9 (C) Section 466(b)(5) (42 U.S.C.

10 666(b)(5)) is amended by striking all that fol11 lows ‘‘administered by’’ and inserting ‘‘the

12 State through the State disbursement unit es13 tablished pursuant to section 454B, in accord14 ance with the requirements of section 454B.’’.

15 (D) Section 466(b)(6)(A) (42 U.S.C.

16 666(b)(6)(A)) is amended—

17 (i) in clause (i), by striking ‘‘to the

18 appropriate agency’’ and all that follows

19 and inserting ‘‘to the State disbursement

20 unit within 2 business days after the date

21 the amount would (but for this subsection)

22 have been paid or credited to the employee,

23 for distribution in accordance with this

24 part. The employer shall comply with the

25 procedural rules relating to income with-
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1 holding of the State in which the employee

2 works, regardless of the State where the

3 notice originates.’’.

4 (ii) in clause (ii), by inserting ‘‘be in

5 a standard format prescribed by the Sec6 retary, and’’ after ‘‘shall’’; and

7 (iii) by adding at the end the follow8 ing new clause:

9 ‘‘(iii) As used in this subparagraph, the term

10 ‘business day’ means a day on which State offices

11 are open for regular business.’’.

12 (E) Section 466(b)(6)(D) (42 U.S.C.

13 666(b)(6)(D)) is amended by striking ‘‘any em14 ployer’’ and all that follows and inserting ‘‘any

15 employer who—

16 ‘‘(i) discharges from employment, refuses

17 to employ, or takes disciplinary action against

18 any noncustodial parent subject to wage with19 holding required by this subsection because of

20 the existence of such withholding and the obli21 gations or additional obligations which it im22 poses upon the employer; or

23 ‘‘(ii) fails to withhold support from wages,

24 or to pay such amounts to the State disburse25 ment unit in accordance with this subsection.’’.
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1 (F) Section 466(b) (42 U.S.C. 666(b)) is

2 amended by adding at the end the following

3 new paragraph:

4 ‘‘(11) Procedures under which the agency ad5 ministering the State plan approved under this part

6 may execute a withholding order without advance

7 notice to the obligor, including issuing the withhold8 ing order through electronic means.’’.

9 (b) CONFORMING AMENDMENT.—Section 466(c) (42

10 U.S.C. 666(c)) is repealed.

11 SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NET12 WORKS.

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

14 adding at the end the following new paragraph:

15 ‘‘(12) LOCATOR INFORMATION FROM INTER16 STATE NETWORKS.—Procedures to ensure that all

17 Federal and State agencies conducting activities

18 under this part have access to any system used by

19 the State to locate an individual for purposes relat20 ing to motor vehicles or law enforcement.’’.

21 SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR

22 SERVICE.

23 (a) EXPANDED AUTHORITY TO LOCATE INDIVID24 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

25 amended—
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1 (1) in subsection (a), by striking all that follows

2 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

3 establishing parentage, establishing, setting the

4 amount of, modifying, or enforcing child support ob5 ligations, or enforcing child custody or visitation or6 ders—

7 ‘‘(1) information on, or facilitating the discov8 ery of, the location of any individual—

9 ‘‘(A) who is under an obligation to pay

10 child support or provide child custody or visita11 tion rights;

12 ‘‘(B) against whom such an obligation is

13 sought;

14 ‘‘(C) to whom such an obligation is owed,

15 including the individual’s social security number (or

16 numbers), most recent address, and the name, ad17 dress, and employer identification number of the in18 dividual’s employer;

19 ‘‘(2) information on the individual’s wages (or

20 other income) from, and benefits of, employment (in21 cluding rights to or enrollment in group health care

22 coverage); and

23 ‘‘(3) information on the type, status, location,

24 and amount of any assets of, or debts owed by or

25 to, any such individual.’’; and
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1 (2) in subsection (b)—

2 (A) in the matter preceding paragraph (1),

3 by striking ‘‘social security’’ and all that follows

4 through ‘‘absent parent’’ and inserting ‘‘infor5 mation described in subsection (a)’’; and

6 (B) in the flush paragraph at the end, by

7 adding the following: ‘‘No information shall be

8 disclosed to any person if the State has notified

9 the Secretary that the State has reasonable evi10 dence of domestic violence or child abuse and

11 the disclosure of such information could be

12 harmful to the custodial parent or the child of

13 such parent. Information received or transmit14 ted pursuant to this section shall be subject to

15 the safeguard provisions contained in section

16 454(26).’’.

17 (b) AUTHORIZED PERSON FOR INFORMATION RE18 GARDING VISITATION RIGHTS.—Section 453(c) (42

19 U.S.C. 653(c)) is amended—

20 (1) in paragraph (1), by striking ‘‘support’’ and

21 inserting ‘‘support or to seek to enforce orders pro22 viding child custody or visitation rights’’; and

23 (2) in paragraph (2), by striking ‘‘, or any

24 agent of such court; and’’ and inserting ‘‘or to issue
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•HR 3832 IH

1 an order against a resident parent for child custody

2 or visitation rights, or any agent of such court;’’.

3 (c) REIMBURSEMENT FOR INFORMATION FROM FED4 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

5 653(e)(2)) is amended in the 4th sentence by inserting

6 ‘‘in an amount which the Secretary determines to be rea7 sonable payment for the information exchange (which

8 amount shall not include payment for the costs of obtain9 ing, compiling, or maintaining the information)’’ before

10 the period.

11 (d) REIMBURSEMENT FOR REPORTS BY STATE

12 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

13 adding at the end the following new subsection:

14 ‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE

15 AGENCIES.—The Secretary may reimburse Federal and

16 State agencies for the costs incurred by such entities in

17 furnishing information requested by the Secretary under

18 this section in an amount which the Secretary determines

19 to be reasonable payment for the information exchange

20 (which amount shall not include payment for the costs of

21 obtaining, compiling, or maintaining the information).’’.

22 (e) CONFORMING AMENDMENTS.—

23 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

24 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

25 653(b), 663(a), 663(e), and 663(f)) are each amend-
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1 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

2 place such term appears.

3 (2) Section 453 (42 U.S.C. 653) is amended in

4 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR5 ENT’’.

6 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

7 653), as amended by subsection (d) of this section, is

8 amended by adding at the end the following new sub9 sections:

10 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

11 ORDERS.—

12 ‘‘(1) IN GENERAL.—Not later than October 1,

13 1998, in order to assist States in administering pro14 grams under State plans approved under this part

15 and programs funded under part A, and for the

16 other purposes specified in this section, the Sec17 retary shall establish and maintain in the Federal

18 Parent Locator Service an automated registry

19 (which shall be known as the ‘Federal Case Registry

20 of Child Support Orders’), which shall contain ab21 stracts of support orders and other information de22 scribed in paragraph (2) with respect to each case

23 in each State case registry maintained pursuant to

24 section 454A(e), as furnished (and regularly up-
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1 dated), pursuant to section 454A(f), by State agen2 cies administering programs under this part.

3 ‘‘(2) CASE INFORMATION.—The information re4 ferred to in paragraph (1) with respect to a case

5 shall be such information as the Secretary may

6 specify in regulations (including the names, social

7 security numbers or other uniform identification

8 numbers, and State case identification numbers) to

9 identify the individuals who owe or are owed support

10 (or with respect to or on behalf of whom support ob11 ligations are sought to be established), and the State

12 or States which have the case.

13 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

14 ‘‘(1) IN GENERAL.—In order to assist States in

15 administering programs under State plans approved

16 under this part and programs funded under part A,

17 and for the other purposes specified in this section,

18 the Secretary shall, not later than October 1, 1996,

19 establish and maintain in the Federal Parent Loca20 tor Service an automated directory to be known as

21 the National Directory of New Hires, which shall

22 contain the information supplied pursuant to section

23 453A(g)(2).

24 ‘‘(2) ENTRY OF DATA.—Information shall be

25 entered into the data base maintained by the Na-
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1 tional Directory of New Hires within 2 business

2 days of receipt pursuant to section 453A(g)(2).

3 ‘‘(3) ADMINISTRATION OF FEDERAL TAX

4 LAWS.—The Secretary of the Treasury shall have

5 access to the information in the National Directory

6 of New Hires for purposes of administering section

7 32 of the Internal Revenue Code of 1986, or the ad8 vance payment of the earned income tax credit

9 under section 3507 of such Code, and verifying a

10 claim with respect to employment in a tax return.

11 ‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The

12 Secretary shall maintain within the National Direc13 tory of New Hires a list of multistate employers that

14 report information regarding newly hired employees

15 pursuant to section 453A(b)(1)(B), and the State

16 which each such employer has designated to receive

17 such information.

18 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS19 CLOSURES.—

20 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD21 MINISTRATION.—

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

23 transmit information on individuals and em24 ployers maintained under this section to the So25 cial Security Administration to the extent nec-
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1 essary for verification in accordance with sub2 paragraph (B).

3 ‘‘(B) VERIFICATION BY SSA.—The Social

4 Security Administration shall verify the accu5 racy of, correct, or supply to the extent pos6 sible, and report to the Secretary, the following

7 information supplied by the Secretary pursuant

8 to subparagraph (A):

9 ‘‘(i) The name, social security num10 ber, and birth date of each such individual.

11 ‘‘(ii) The employer identification num12 ber of each such employer.

13 ‘‘(2) INFORMATION COMPARISONS.—For the

14 purpose of locating individuals in a paternity estab15 lishment case or a case involving the establishment,

16 modification, or enforcement of a support order, the

17 Secretary shall—

18 ‘‘(A) compare information in the National

19 Directory of New Hires against information in

20 the support case abstracts in the Federal Case

21 Registry of Child Support Orders not less often

22 than every 2 business days; and

23 ‘‘(B) within 2 such days after such a com24 parison reveals a match with respect to an indi-
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1 vidual, report the information to the State

2 agency responsible for the case.

3 ‘‘(3) INFORMATION COMPARISONS AND DISCLO4 SURES OF INFORMATION IN ALL REGISTRIES FOR

5 TITLE IV PROGRAM PURPOSES.—To the extent and

6 with the frequency that the Secretary determines to

7 be effective in assisting States to carry out their re8 sponsibilities under programs operated under this

9 part and programs funded under part A, the Sec10 retary shall—

11 ‘‘(A) compare the information in each com12 ponent of the Federal Parent Locator Service

13 maintained under this section against the infor14 mation in each other such component (other

15 than the comparison required by paragraph

16 (2)), and report instances in which such a com17 parison reveals a match with respect to an indi18 vidual to State agencies operating such pro19 grams; and

20 ‘‘(B) disclose information in such registries

21 to such State agencies.

22 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

23 TO THE SOCIAL SECURITY ADMINISTRATION.—The

24 National Directory of New Hires shall provide the

25 Commissioner of Social Security with all information
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1 in the National Directory, which shall be used to de2 termine the accuracy of payments under the supple3 mental security income program under title XVI and

4 in connection with benefits under title II.

5 ‘‘(5) RESEARCH.—The Secretary may provide

6 access to information reported by employers pursu7 ant to section 453A(b) for research purposes found

8 by the Secretary to be likely to contribute to achiev9 ing the purposes of part A or this part, but without

10 personal identifiers.

11 ‘‘(k) FEES.—

12 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

13 shall reimburse the Commissioner of Social Security,

14 at a rate negotiated between the Secretary and the

15 Commissioner, for the costs incurred by the Com16 missioner in performing the verification services de17 scribed in subsection (j).

18 ‘‘(2) FOR INFORMATION FROM STATE DIREC19 TORIES OF NEW HIRES.—The Secretary shall reim20 burse costs incurred by State directories of new

21 hires in furnishing information as required by sub22 section (j)(3), at rates which the Secretary deter23 mines to be reasonable (which rates shall not include

24 payment for the costs of obtaining, compiling, or

25 maintaining such information).
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1 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

2 AND FEDERAL AGENCIES.—A State or Federal agen3 cy that receives information from the Secretary pur4 suant to this section shall reimburse the Secretary

5 for costs incurred by the Secretary in furnishing the

6 information, at rates which the Secretary determines

7 to be reasonable (which rates shall include payment

8 for the costs of obtaining, verifying, maintaining,

9 and comparing the information).

10 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In11 formation in the Federal Parent Locator Service, and in12 formation resulting from comparisons using such informa13 tion, shall not be used or disclosed except as expressly pro14 vided in this section, subject to section 6103 of the Inter15 nal Revenue Code of 1986.

16 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

17 The Secretary shall establish and implement safeguards

18 with respect to the entities established under this section

19 designed to—

20 ‘‘(1) ensure the accuracy and completeness of

21 information in the Federal Parent Locator Service;

22 and

23 ‘‘(2) restrict access to confidential information

24 in the Federal Parent Locator Service to authorized
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1 persons, and restrict use of such information to au2 thorized purposes.

3 ‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each

4 department, agency, and instrumentality of the United

5 States shall on a quarterly basis report to the Federal

6 Parent Locator Service the name and social security num7 ber of each employee and the wages paid to the employee

8 during the previous quarter, except that such a report

9 shall not be filed with respect to an employee of a depart10 ment, agency, or instrumentality performing intelligence

11 or counterintelligence functions, if the head of such de12 partment, agency, or instrumentality has determined that

13 filing such a report could endanger the safety of the em14 ployee or compromise an ongoing investigation or intel15 ligence mission.’’.

16 (g) CONFORMING AMENDMENTS.—

17 (1) TO PART D OF TITLE IV OF THE SOCIAL SE18 CURITY ACT.—

19 (A) Section 454(8)(B) (42 U.S.C.

20 654(8)(B)) is amended to read as follows:

21 ‘‘(B) the Federal Parent Locator Service

22 established under section 453;’’.

23 (B) Section 454(13) (42 U.S.C.654(13)) is

24 amended by inserting ‘‘and provide that infor25 mation requests by parents who are residents of
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1 other States be treated with the same priority

2 as requests by parents who are residents of the

3 State submitting the plan’’ before the semi4 colon.

5 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

6 Section 3304(a)(16) of the Internal Revenue Code of

7 1986 is amended—

8 (A) by striking ‘‘Secretary of Health, Edu9 cation, and Welfare’’ each place such term ap10 pears and inserting ‘‘Secretary of Health and

11 Human Services’’;

12 (B) in subparagraph (B), by striking

13 ‘‘such information’’ and all that follows and in14 serting ‘‘information furnished under subpara15 graph (A) or (B) is used only for the purposes

16 authorized under such subparagraph;’’;

17 (C) by striking ‘‘and’’ at the end of sub18 paragraph (A);

19 (D) by redesignating subparagraph (B) as

20 subparagraph (C); and

21 (E) by inserting after subparagraph (A)

22 the following new subparagraph:

23 ‘‘(B) wage and unemployment compensa24 tion information contained in the records of

25 such agency shall be furnished to the Secretary
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1 of Health and Human Services (in accordance

2 with regulations promulgated by such Sec3 retary) as necessary for the purposes of the Na4 tional Directory of New Hires established under

5 section 453(i) of the Social Security Act, and’’.

6 (3) TO STATE GRANT PROGRAM UNDER TITLE

7 III OF THE SOCIAL SECURITY ACT.—Subsection (h)

8 of section 303 (42 U.S.C. 503) is amended to read

9 as follows:

10 ‘‘(h)(1) The State agency charged with the adminis11 tration of the State law shall, on a reimbursable basis—

12 ‘‘(A) disclose quarterly, to the Secretary of

13 Health and Human Services, wage and claim infor14 mation, as required pursuant to section 453(i)(1),

15 contained in the records of such agency;

16 ‘‘(B) ensure that information provided pursuant

17 to subparagraph (A) meets such standards relating

18 to correctness and verification as the Secretary of

19 Health and Human Services, with the concurrence

20 of the Secretary of Labor, may find necessary; and

21 ‘‘(C) establish such safeguards as the Secretary

22 of Labor determines are necessary to insure that in23 formation disclosed under subparagraph (A) is used

24 only for purposes of section 453(i)(1) in carrying out
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1 the child support enforcement program under title

2 IV.

3 ‘‘(2) Whenever the Secretary of Labor, after reason4 able notice and opportunity for hearing to the State agen5 cy charged with the administration of the State law, finds

6 that there is a failure to comply substantially with the re7 quirements of paragraph (1), the Secretary of Labor shall

8 notify such State agency that further payments will not

9 be made to the State until the Secretary of Labor is satis10 fied that there is no longer any such failure. Until the

11 Secretary of Labor is so satisfied, the Secretary shall

12 make no future certification to the Secretary of the Treas13 ury with respect to the State.

14 ‘‘(3) For purposes of this subsection—

15 ‘‘(A) the term ‘wage information’ means infor16 mation regarding wages paid to an individual, the

17 social security account number of such individual,

18 and the name, address, State, and the Federal em19 ployer identification number of the employer paying

20 such wages to such individual; and

21 ‘‘(B) the term ‘claim information’ means infor22 mation regarding whether an individual is receiving,

23 has received, or has made application for, unemploy24 ment compensation, the amount of any such com25 pensation being received (or to be received by such
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1 individual), and the individual’s current (or most re2 cent) home address.’’.

3 (4) DISCLOSURE OF CERTAIN INFORMATION TO

4 AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN5 CIES.—

6 (A) IN GENERAL.—Paragraph (6) of sec7 tion 6103(l) of the Internal Revenue Code of

8 1986 (relating to disclosure of return informa9 tion to Federal, State, and local child support

10 enforcement agencies) is amended by redesig11 nating subparagraph (B) as subparagraph (C)

12 and by inserting after subparagraph (A) the fol13 lowing new subparagraph:

14 ‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—

15 The following information disclosed to any child

16 support enforcement agency under subpara17 graph (A) with respect to any individual with

18 respect to whom child support obligations are

19 sought to be established or enforced may be dis20 closed by such agency to any agent of such

21 agency which is under contract with such agen22 cy to carry out the purposes described in sub23 paragraph (C):
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1 ‘‘(i) The address and social security

2 account number (or numbers) of such indi3 vidual.

4 ‘‘(ii) The amount of any reduction

5 under section 6402(c) (relating to offset of

6 past-due support against overpayments) in

7 any overpayment otherwise payable to such

8 individual.’’

9 (B) CONFORMING AMENDMENTS.—

10 (i) Paragraph (3) of section 6103(a)

11 of such Code is amended by striking

12 ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or

13 (12) of subsection (l)’’.

14 (ii) Subparagraph (C) of section

15 6103(l)(6) of such Code, as redesignated

16 by subsection (a), is amended to read as

17 follows:

18 ‘‘(C) RESTRICTION ON DISCLOSURE.—In19 formation may be disclosed under this para20 graph only for purposes of, and to the extent

21 necessary in, establishing and collecting child

22 support obligations from, and locating, individ23 uals owing such obligations.’’

24 (iii) The material following subpara25 graph (F) of section 6103(p)(4) of such
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1 Code is amended by striking ‘‘subsection

2 (l)(12)(B)’’ and inserting ‘‘paragraph

3 (6)(A) or (12)(B) of subsection (l)’’.

4 SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY

5 NUMBERS FOR USE IN CHILD SUPPORT EN6 FORCEMENT.

7 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

8 U.S.C. 666(a)), as amended by section 315 of this Act,

9 is amended by adding at the end the following new para10 graph:

11 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM12 BERS IN CERTAIN FAMILY MATTERS.—Procedures

13 requiring that the social security number of—

14 ‘‘(A) any applicant for a professional li15 cense, commercial driver’s license, occupational

16 license, or marriage license be recorded on the

17 application;

18 ‘‘(B) any individual who is subject to a di19 vorce decree, support order, or paternity deter20 mination or acknowledgment be placed in the

21 records relating to the matter; and

22 ‘‘(C) any individual who has died be placed

23 in the records relating to the death and be re24 corded on the death certificate.
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1 For purposes of subparagraph (A), if a State allows

2 the use of a number other than the social security

3 number, the State shall so advise any applicants.’’.

4 (b) CONFORMING AMENDMENTS.—Section

5 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

6 section 321(a)(9) of the Social Security Independence and

7 Program Improvements Act of 1994, is amended—

8 (1) in clause (i), by striking ‘‘may require’’ and

9 inserting ‘‘shall require’’;

10 (2) in clause (ii), by inserting after the 1st sen11 tence the following: ‘‘In the administration of any

12 law involving the issuance of a marriage certificate

13 or license, each State shall require each party named

14 in the certificate or license to furnish to the State

15 (or political subdivision thereof), or any State agen16 cy having administrative responsibility for the law

17 involved, the social security number of the party.’’;

18 (3) in clause (ii), by inserting ‘‘or marriage cer19 tificate’’ after ‘‘Such numbers shall not be recorded

20 on the birth certificate’’.

21 (4) in clause (vi), by striking ‘‘may’’ and insert22 ing ‘‘shall’’; and

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

24 clauses:
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1 ‘‘(x) An agency of a State (or a politi2 cal subdivision thereof) charged with the

3 administration of any law concerning the

4 issuance or renewal of a license, certificate,

5 permit, or other authorization to engage in

6 a profession, an occupation, or a commer7 cial activity shall require all applicants for

8 issuance or renewal of the license, certifi9 cate, permit, or other authorization to pro10 vide the applicant’s social security number

11 to the agency for the purpose of admin12 istering such laws, and for the purpose of

13 responding to requests for information

14 from an agency operating pursuant to part

15 D of title IV.

16 ‘‘(xi) All divorce decrees, support or17 ders, and paternity determinations issued,

18 and all paternity acknowledgments made,

19 in each State shall include the social secu20 rity number of each party to the decree,

21 order, determination, or acknowledgment

22 in the records relating to the matter, for

23 the purpose of responding to requests for

24 information from an agency operating pur25 suant to part D of title IV.’’.
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1 Subtitle C—Streamlining and

2 Uniformity of Procedures

3 SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

4 Section 466 (42 U.S.C. 666) is amended by adding

5 at the end the following new subsection:

6 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

7 ACT.—

8 ‘‘(1) ENACTMENT AND USE.—In order to sat9 isfy section 454(20)(A), on and after January 1,

10 1998, each State must have in effect the Uniform

11 Interstate Family Support Act, as approved by the

12 American Bar Association on February 9, 1993, to13 gether with any amendments officially adopted be14 fore January 1, 1998, by the National Conference of

15 Commissioners on Uniform State Laws.

16 ‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL

17 RULES OF STATE WHERE EMPLOYEE WORKS.—The

18 State law enacted pursuant to paragraph (1) shall

19 provide that an employer that receives an income

20 withholding order or notice pursuant to section 501

21 of the Uniform Interstate Family Support Act follow

22 the procedural rules that apply with respect to such

23 order or notice under the laws of the State in which

24 the obligor works.’’.
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1 SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT

2 FOR CHILD SUPPORT ORDERS.

3 Section 1738B of title 28, United States Code, is

4 amended—

5 (1) in subsection (a)(2), by striking ‘‘subsection

6 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

7 (2) in subsection (b), by inserting after the 2d

8 undesignated paragraph the following:

9 ‘‘ ‘child’s home State’ means the State in which

10 a child lived with a parent or a person acting as par11 ent for at least 6 consecutive months immediately

12 preceding the time of filing of a petition or com13 parable pleading for support and, if a child is less

14 than 6 months old, the State in which the child lived

15 from birth with any of them. A period of temporary

16 absence of any of them is counted as part of the 6-

17 month period.’’;

18 (3) in subsection (c), by inserting ‘‘by a court

19 of a State’’ before ‘‘is made’’;

20 (4) in subsection (c)(1), by inserting ‘‘and sub21 sections (e), (f), and (g)’’ after ‘‘located’’;

22 (5) in subsection (d)—

23 (A) by inserting ‘‘individual’’ before ‘‘con24 testant’’; and

25 (B) by striking ‘‘subsection (e)’’ and in26 serting ‘‘subsections (e) and (f)’’;
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1 (6) in subsection (e), by striking ‘‘make a modi2 fication of a child support order with respect to a

3 child that is made’’ and inserting ‘‘modify a child

4 support order issued’’;

5 (7) in subsection (e)(1), by inserting ‘‘pursuant

6 to subsection (i)’’ before the semicolon;

7 (8) in subsection (e)(2)—

8 (A) by inserting ‘‘individual’’ before ‘‘con9 testant’’ each place such term appears; and

10 (B) by striking ‘‘to that court’s making the

11 modification and assuming’’ and inserting ‘‘with

12 the State of continuing, exclusive jurisdiction

13 for a court of another State to modify the order

14 and assume’’;

15 (9) by redesignating subsections (f) and (g) as

16 subsections (g) and (h), respectively;

17 (10) by inserting after subsection (e) the follow18 ing new subsection:

19 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

20 If 1 or more child support orders have been issued in this

21 or another State with regard to an obligor and a child,

22 a court shall apply the following rules in determining

23 which order to recognize for purposes of continuing, exclu24 sive jurisdiction and enforcement:
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1 ‘‘(1) If only 1 court has issued a child support

2 order, the order of that court must be recognized.

3 ‘‘(2) If 2 or more courts have issued child sup4 port orders for the same obligor and child, and only

5 1 of the courts would have continuing, exclusive ju6 risdiction under this section, the order of that court

7 must be recognized.

8 ‘‘(3) If 2 or more courts have issued child sup9 port orders for the same obligor and child, and more

10 than 1 of the courts would have continuing, exclusive

11 jurisdiction under this section, an order issued by a

12 court in the current home State of the child must

13 be recognized, but if an order has not been issued

14 in the current home State of the child, the order

15 most recently issued must be recognized.

16 ‘‘(4) If 2 or more courts have issued child sup17 port orders for the same obligor and child, and none

18 of the courts would have continuing, exclusive juris19 diction under this section, a court may issue a child

20 support order, which must be recognized.

21 ‘‘(5) The court that has issued an order recog22 nized under this subsection is the court having con23 tinuing, exclusive jurisdiction.’’;

24 (11) in subsection (g) (as so redesignated)—
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1 (A) by striking ‘‘PRIOR’’ and inserting

2 ‘‘MODIFIED’’; and

3 (B) by striking ‘‘subsection (e)’’ and in4 serting ‘‘subsections (e) and (f)’’;

5 (12) in subsection (h) (as so redesignated)—

6 (A) in paragraph (2), by inserting ‘‘includ7 ing the duration of current payments and other

8 obligations of support’’ before the comma; and

9 (B) in paragraph (3), by inserting ‘‘arrears

10 under’’ after ‘‘enforce’’; and

11 (13) by adding at the end the following new

12 subsection:

13 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

14 no individual contestant or child residing in the issuing

15 State, the party or support enforcement agency seeking

16 to modify, or to modify and enforce, a child support order

17 issued in another State shall register that order in a State

18 with jurisdiction over the nonmovant for the purpose of

19 modification.’’.

20 SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

21 CASES.

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

23 sections 315 and 317(a) of this Act, is amended by adding

24 at the end the following new paragraph:
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1 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

2 INTERSTATE CASES.—Procedures under which—

3 ‘‘(A)(i) the State shall respond within 5

4 business days to a request made by another

5 State to enforce a support order; and

6 ‘‘(ii) the term ‘business day’ means a day

7 on which State offices are open for regular

8 business;

9 ‘‘(B) the State may, by electronic or other

10 means, transmit to another State a request for

11 assistance in a case involving the enforcement

12 of a support order, which request—

13 ‘‘(i) shall include such information as

14 will enable the State to which the request

15 is transmitted to compare the information

16 about the case to the information in the

17 data bases of the State; and

18 ‘‘(ii) shall constitute a certification by

19 the requesting State—

20 ‘‘(I) of the amount of support

21 under the order the payment of which

22 is in arrears; and

23 ‘‘(II) that the requesting State

24 has complied with all procedural due
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1 process requirements applicable to the

2 case;

3 ‘‘(C) if the State provides assistance to an4 other State pursuant to this paragraph with re5 spect to a case, neither State shall consider the

6 case to be transferred to the caseload of such

7 other State; and

8 ‘‘(D) the State shall maintain records of—

9 ‘‘(i) the number of such requests for

10 assistance received by the State;

11 ‘‘(ii) the number of cases for which

12 the State collected support in response to

13 such a request; and

14 ‘‘(iii) the amount of such collected

15 support.’’.

16 SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

17 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

18 652(a)) is amended—

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

20 (9);

21 (2) by striking the period at the end of para22 graph (10) and inserting ‘‘; and’’; and

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

24 paragraph:
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1 ‘‘(11) not later than June 30, 1996, after con2 sulting with the State directors of programs under

3 this part, promulgate forms to be used by States in

4 interstate cases for—

5 ‘‘(A) collection of child support through in6 come withholding;

7 ‘‘(B) imposition of liens; and

8 ‘‘(C) administrative subpoenas.’’.

9 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

10 654(9)) is amended—

11 (1) by striking ‘‘and’’ at the end of subpara12 graph (C);

13 (2) by inserting ‘‘and’’ at the end of subpara14 graph (D); and

15 (3) by adding at the end the following new sub16 paragraph:

17 ‘‘(E) no later than October 1, 1996, in

18 using the forms promulgated pursuant to sec19 tion 452(a)(11) for income withholding, imposi20 tion of liens, and issuance of administrative

21 subpoenas in interstate child support cases;’’.
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1 SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCE2 DURES.

3 (a) STATE LAW REQUIREMENTS.—Section 466 (42

4 U.S.C. 666), as amended by section 314 of this Act, is

5 amended—

6 (1) in subsection (a)(2), by striking the first

7 sentence and inserting the following: ‘‘Expedited ad8 ministrative and judicial procedures (including the

9 procedures specified in subsection (c)) for establish10 ing paternity and for establishing, modifying, and

11 enforcing support obligations.’’; and

12 (2) by inserting after subsection (b) the follow13 ing new subsection:

14 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

15 specified in this subsection are the following:

16 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN17 CY.—Procedures which give the State agency the au18 thority to take the following actions relating to es19 tablishment or enforcement of support orders, with20 out the necessity of obtaining an order from any

21 other judicial or administrative tribunal, and to rec22 ognize and enforce the authority of State agencies of

23 other States) to take the following actions:

24 ‘‘(A) GENETIC TESTING.—To order genetic

25 testing for the purpose of paternity establish26 ment as provided in section 466(a)(5).
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1 ‘‘(B) FINANCIAL OR OTHER INFORMA2 TION.—To subpoena any financial or other in3 formation needed to establish, modify, or en4 force a support order, and to impose penalties

5 for failure to respond to such a subpoena.

6 ‘‘(C) RESPONSE TO STATE AGENCY RE7 QUEST.—To require all entities in the State (in8 cluding for-profit, nonprofit, and governmental

9 employers) to provide promptly, in response to

10 a request by the State agency of that or any

11 other State administering a program under this

12 part, information on the employment, com13 pensation, and benefits of any individual em14 ployed by such entity as an employee or con15 tractor, and to sanction failure to respond to

16 any such request.

17 ‘‘(D) ACCESS TO CERTAIN RECORDS.—To

18 obtain access, subject to safeguards on privacy

19 and information security, to the following

20 records (including automated access, in the case

21 of records maintained in automated data

22 bases):

23 ‘‘(i) Records of other State and local

24 government agencies, including—
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1 ‘‘(I) vital statistics (including

2 records of marriage, birth, and di3 vorce);

4 ‘‘(II) State and local tax and rev5 enue records (including information

6 on residence address, employer, in7 come and assets);

8 ‘‘(III) records concerning real

9 and titled personal property;

10 ‘‘(IV) records of occupational and

11 professional licenses, and records con12 cerning the ownership and control of

13 corporations, partnerships, and other

14 business entities;

15 ‘‘(V) employment security

16 records;

17 ‘‘(VI) records of agencies admin18 istering public assistance programs;

19 ‘‘(VII) records of the motor vehi20 cle department; and

21 ‘‘(VIII) corrections records.

22 ‘‘(ii) Certain records held by private

23 entities, including—
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1 ‘‘(I) customer records of public

2 utilities and cable television compa3 nies; and

4 ‘‘(II) information (including in5 formation on assets and liabilities) on

6 individuals who owe or are owed sup7 port (or against or with respect to

8 whom a support obligation is sought)

9 held by financial institutions (subject

10 to limitations on liability of such enti11 ties arising from affording such ac12 cess), as provided pursuant to agree13 ments described in subsection (a)(18).

14 ‘‘(E) CHANGE IN PAYEE.—In cases in

15 which support is subject to an assignment in

16 order to comply with a requirement imposed

17 pursuant to part A or section 1912, or to a re18 quirement to pay through the State disburse19 ment unit established pursuant to section

20 454B, upon providing notice to obligor and obli21 gee, to direct the obligor or other payor to

22 change the payee to the appropriate government

23 entity.
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1 ‘‘(F) INCOME WITHHOLDING.—To order

2 income withholding in accordance with sub3 sections (a)(1) and (b) of section 466.

4 ‘‘(G) SECURING ASSETS.—In cases in

5 which there is a support arrearage, to secure

6 assets to satisfy the arrearage by—

7 ‘‘(i) intercepting or seizing periodic or

8 lump-sum payments from—

9 ‘‘(I) a State or local agency, in10 cluding unemployment compensation,

11 workers’ compensation, and other ben12 efits; and

13 ‘‘(II) judgments, settlements, and

14 lotteries;

15 ‘‘(ii) attaching and seizing assets of

16 the obligor held in financial institutions;

17 ‘‘(iii) attaching public and private re18 tirement funds; and

19 ‘‘(iv) imposing liens in accordance

20 with subsection (a)(4) and, in appropriate

21 cases, to force sale of property and dis22 tribution of proceeds.

23 ‘‘(H) INCREASE MONTHLY PAYMENTS.—

24 For the purpose of securing overdue support, to

25 increase the amount of monthly support pay-
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1 ments to include amounts for arrearages, sub2 ject to such conditions or limitations as the

3 State may provide.

4 Such procedures shall be subject to due process safe5 guards, including (as appropriate) requirements for

6 notice, opportunity to contest the action, and oppor7 tunity for an appeal on the record to an independent

8 administrative or judicial tribunal.

9 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

10 The expedited procedures required under subsection

11 (a)(2) shall include the following rules and author12 ity, applicable with respect to all proceedings to es13 tablish paternity or to establish, modify, or enforce

14 support orders:

15 ‘‘(A) LOCATOR INFORMATION; PRESUMP16 TIONS CONCERNING NOTICE.—Procedures

17 under which—

18 ‘‘(i) each party to any paternity or

19 child support proceeding is required (sub20 ject to privacy safeguards) to file with the

21 tribunal and the State case registry upon

22 entry of an order, and to update as appro23 priate, information on location and identity

24 of the party, including social security num25 ber, residential and mailing addresses, tele-
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1 phone number, driver’s license number,

2 and name, address, and name and tele3 phone number of employer; and

4 ‘‘(ii) in any subsequent child support

5 enforcement action between the parties,

6 upon sufficient showing that diligent effort

7 has been made to ascertain the location of

8 such a party, the tribunal may deem State

9 due process requirements for notice and

10 service of process to be met with respect to

11 the party, upon delivery of written notice

12 to the most recent residential or employer

13 address filed with the tribunal pursuant to

14 clause (i).

15 ‘‘(B) STATEWIDE JURISDICTION.—Proce16 dures under which—

17 ‘‘(i) the State agency and any admin18 istrative or judicial tribunal with authority

19 to hear child support and paternity cases

20 exerts statewide jurisdiction over the par21 ties; and

22 ‘‘(ii) in a State in which orders are is23 sued by courts or administrative tribunals,

24 a case may be transferred between local ju25 risdictions in the State without need for
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1 for any additional filing by the petitioner,

2 or service of process upon the respondent,

3 to retain jurisdiction over the parties.

4 ‘‘(3) COORDINATION WITH ERISA.—Notwith5 standing subsection (d) of section 514 of the Em6 ployee Retirement Income Security Act of 1974 (re7 lating to effect on other laws), nothing in this sub8 section shall be construed to alter, amend, modify,

9 invalidate, impair, or supersede subsections (a), (b),

10 and (c) of such section 514 as it applies with respect

11 to any procedure referred to in paragraph (1) and

12 any expedited procedure referred to in paragraph

13 (2), except to the extent that such procedure would

14 be consistent with the requirements of section

15 206(d)(3) of such Act (relating to qualified domestic

16 relations orders) or the requirements of section

17 609(a) of such Act (relating to qualified medical

18 child support orders) if the reference in such section

19 206(d)(3) to a domestic relations order and the ref20 erence in such section 609(a) to a medical child sup21 port order were a reference to a support order re22 ferred to in paragraphs (1) and (2) relating to the

23 same matters, respectively.’’.

24 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

25 Section 454A, as added by section 344(a)(2) and as
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1 amended by sections 311 and 312(c) of this Act, is amend2 ed by adding at the end the following new subsection:

3 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

4 The automated system required by this section shall be

5 used, to the maximum extent feasible, to implement the

6 expedited administrative procedures required by section

7 466(c).’’.

8 Subtitle D—Paternity

9 Establishment

10 SEC. 331. STATE LAWS CONCERNING PATERNITY ESTAB11 LISHMENT.

12 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

13 U.S.C. 666(a)(5)) is amended to read as follows:

14 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES15 TABLISHMENT.—

16 ‘‘(A) ESTABLISHMENT PROCESS AVAIL17 ABLE FROM BIRTH UNTIL AGE 18.—

18 ‘‘(i) Procedures which permit the es19 tablishment of the paternity of a child at

20 any time before the child attains 18 years

21 of age.

22 ‘‘(ii) As of August 16, 1984, clause (i)

23 shall also apply to a child for whom pater24 nity has not been established or for whom

25 a paternity action was brought but dis-
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1 missed because a statute of limitations of

2 less than 18 years was then in effect in the

3 State.

4 ‘‘(B) PROCEDURES CONCERNING GENETIC

5 TESTING.—

6 ‘‘(i) GENETIC TESTING REQUIRED IN

7 CERTAIN CONTESTED CASES.—Procedures

8 under which the State is required, in a

9 contested paternity case (unless otherwise

10 barred by State law) to require the child

11 and all other parties (other than individ12 uals found under section 454(29) to have

13 good cause for refusing to cooperate) to

14 submit to genetic tests upon the request of

15 any such party, if the request is supported

16 by a sworn statement by the party—

17 ‘‘(I) alleging paternity, and set18 ting forth facts establishing a reason19 able possibility of the requisite sexual

20 contact between the parties; or

21 ‘‘(II) denying paternity, and set22 ting forth facts establishing a reason23 able possibility of the nonexistence of

24 sexual contact between the parties.
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1 ‘‘(ii) OTHER REQUIREMENTS.—Proce2 dures which require the State agency, in

3 any case in which the agency orders ge4 netic testing—

5 ‘‘(I) to pay costs of such tests,

6 subject to recoupment (if the State so

7 elects) from the alleged father if pa8 ternity is established; and

9 ‘‘(II) to obtain additional testing

10 in any case if an original test result is

11 contested, upon request and advance

12 payment by the contestant.

13 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL14 EDGMENT.—

15 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce16 dures for a simple civil process for volun17 tarily acknowledging paternity under which

18 the State must provide that, before a

19 mother and a putative father can sign an

20 acknowledgment of paternity, the mother

21 and the putative father must be given no22 tice, orally and in writing, of the alter23 natives to, the legal consequences of, and

24 the rights (including, if 1 parent is a

25 minor, any rights afforded due to minority
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1 status) and responsibilities that arise from,

2 signing the acknowledgment.

3 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

4 Such procedures must include a hospital5 based program for the voluntary acknowl6 edgment of paternity focusing on the pe7 riod immediately before or after the birth

8 of a child, subject to such good cause ex9 ceptions, taking into account the best in10 terests of the child, as the State may es11 tablish.

12 ‘‘(iii) PATERNITY ESTABLISHMENT

13 SERVICES.—

14 ‘‘(I) STATE-OFFERED SERV15 ICES.—Such procedures must require

16 the State agency responsible for main17 taining birth records to offer vol18 untary paternity establishment serv19 ices.

20 ‘‘(II) REGULATIONS.—

21 ‘‘(aa) SERVICES OFFERED

22 BY HOSPITALS AND BIRTH

23 RECORD AGENCIES.—The Sec24 retary shall prescribe regulations

25 governing voluntary paternity es-
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1 tablishment services offered by

2 hospitals and birth record agen3 cies.

4 ‘‘(bb) SERVICES OFFERED

5 BY OTHER ENTITIES.—The Sec6 retary shall prescribe regulations

7 specifying the types of other enti8 ties that may offer voluntary pa9 ternity establishment services,

10 and governing the provision of

11 such services, which shall include

12 a requirement that such an entity

13 must use the same notice provi14 sions used by, use the same ma15 terials used by, provide the per16 sonnel providing such services

17 with the same training provided

18 by, and evaluate the provision of

19 such services in the same manner

20 as the provision of such services

21 is evaluated by, voluntary pater22 nity establishment programs of

23 hospitals and birth record agen24 cies.
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1 ‘‘(iv) USE OF PATERNITY ACKNOWL2 EDGMENT AFFIDAVIT.—Such procedures

3 must require the State to develop and use

4 an affidavit for the voluntary acknowledg5 ment of paternity which includes the mini6 mum requirements of the affidavit devel7 oped by the Secretary under section

8 452(a)(7) for the voluntary acknowledg9 ment of paternity, and to give full faith

10 and credit to such an affidavit signed in

11 any other State according to its proce12 dures.

13 ‘‘(D) STATUS OF SIGNED PATERNITY AC14 KNOWLEDGMENT.—

15 ‘‘(i) INCLUSION IN BIRTH RECORDS.—

16 Procedures under which the name of the

17 father shall be included on the record of

18 birth of the child of unmarried parents

19 only if—

20 ‘‘(I) the father and mother have

21 signed a voluntary acknowledgment of

22 paternity; or

23 ‘‘(II) a court or an administrative

24 agency of competent jurisdiction has

25 issued an adjudication of paternity.
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1 Nothing in this clause shall preclude a

2 State agency from obtaining an admission

3 of paternity from the father for submission

4 in a judicial or administrative proceeding,

5 or prohibit the issuance of an order in a

6 judicial or administrative proceeding which

7 bases a legal finding of paternity on an ad8 mission of paternity by the father and any

9 other additional showing required by State

10 law.

11 ‘‘(ii) LEGAL FINDING OF PATER12 NITY.—Procedures under which a signed

13 voluntary acknowledgment of paternity is

14 considered a legal finding of paternity,

15 subject to the right of any signatory to re16 scind the acknowledgment within the ear17 lier of—

18 ‘‘(I) 60 days; or

19 ‘‘(II) the date of an administra20 tive or judicial proceeding relating to

21 the child (including a proceeding to

22 establish a support order) in which

23 the signatory is a party.

24 ‘‘(iii) CONTEST.—Procedures under

25 which, after the 60-day period referred to
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1 in clause (ii), a signed voluntary acknowl2 edgment of paternity may be challenged in

3 court only on the basis of fraud, duress, or

4 material mistake of fact, with the burden

5 of proof upon the challenger, and under

6 which the legal responsibilities (including

7 child support obligations) of any signatory

8 arising from the acknowledgment may not

9 be suspended during the challenge, except

10 for good cause shown.

11 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI12 CATION PROCEEDINGS.—Procedures under

13 which judicial or administrative proceedings are

14 not required or permitted to ratify an unchal15 lenged acknowledgment of paternity.

16 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

17 RESULTS.—Procedures—

18 ‘‘(i) requiring the admission into evi19 dence, for purposes of establishing pater20 nity, of the results of any genetic test that

21 is—

22 ‘‘(I) of a type generally acknowl23 edged as reliable by accreditation bod24 ies designated by the Secretary; and
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1 ‘‘(II) performed by a laboratory

2 approved by such an accreditation

3 body;

4 ‘‘(ii) requiring an objection to genetic

5 testing results to be made in writing not

6 later than a specified number of days be7 fore any hearing at which the results may

8 be introduced into evidence (or, at State

9 option, not later than a specified number

10 of days after receipt of the results); and

11 ‘‘(iii) making the test results admissi12 ble as evidence of paternity without the

13 need for foundation testimony or other

14 proof of authenticity or accuracy, unless

15 objection is made.

16 ‘‘(G) PRESUMPTION OF PATERNITY IN

17 CERTAIN CASES.—Procedures which create a re18 buttable or, at the option of the State, conclu19 sive presumption of paternity upon genetic test20 ing results indicating a threshold probability

21 that the alleged father is the father of the child.

22 ‘‘(H) DEFAULT ORDERS.—Procedures re23 quiring a default order to be entered in a pater24 nity case upon a showing of service of process
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1 on the defendant and any additional showing

2 required by State law.

3 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce4 dures providing that the parties to an action to

5 establish paternity are not entitled to a trial by

6 jury.

7 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

8 ON PROBABLE PATERNITY IN CONTESTED

9 CASES.—Procedures which require that a tem10 porary order be issued, upon motion by a party,

11 requiring the provision of child support pending

12 an administrative or judicial determination of

13 parentage, if there is clear and convincing evi14 dence of paternity (on the basis of genetic tests

15 or other evidence).

16 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

17 PATERNITY ESTABLISHMENT COSTS.—Proce18 dures under which bills for pregnancy, child19 birth, and genetic testing are admissible as evi20 dence without requiring third-party foundation

21 testimony, and shall constitute prima facie evi22 dence of amounts incurred for such services or

23 for testing on behalf of the child.

24 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

25 Procedures ensuring that the putative father
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1 has a reasonable opportunity to initiate a pater2 nity action.

3 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

4 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

5 RECORDS.—Procedures under which voluntary

6 acknowledgments and adjudications of paternity

7 by judicial or administrative processes are filed

8 with the State registry of birth records for com9 parison with information in the State case reg10 istry.’’.

11 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI12 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

13 amended by inserting ‘‘, and develop an affidavit to be

14 used for the voluntary acknowledgment of paternity which

15 shall include the social security number of each parent

16 and, after consultation with the States, other common ele17 ments as determined by such designee’’ before the semi18 colon.

19 (c) CONFORMING AMENDMENT.—Section 468 (42

20 U.S.C. 668) is amended by striking ‘‘a simple civil process

21 for voluntarily acknowledging paternity and’’.

22 SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTAB23 LISHMENT.

24 Section 454(23) (42 U.S.C. 654(23)) is amended by

25 inserting ‘‘and will publicize the availability and encourage
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1 the use of procedures for voluntary establishment of pater2 nity and child support by means the State deems appro3 priate’’ before the semicolon.

4 SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPI5 ENTS OF TEMPORARY FAMILY ASSISTANCE.

6 Section 454 (42 U.S.C. 654), as amended by sections

7 301(b), 303(a), 312(a), and 313(a) of this Act, is amend8 ed—

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

10 (27);

11 (2) by striking the period at the end of para12 graph (28) and inserting ‘‘; and’’; and

13 (3) by inserting after paragraph (28) the fol14 lowing new paragraph:

15 ‘‘(29) provide that the State agency responsible

16 for administering the State plan—

17 ‘‘(A) shall make the determination (and re18 determination at appropriate intervals) as to

19 whether an individual who has applied for or is

20 receiving assistance under the State program

21 funded under part A or the State program

22 under title XIX is cooperating in good faith

23 with the State in establishing the paternity of,

24 or in establishing, modifying, or enforcing a

25 support order for, any child of the individual
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1 by providing the State agency with the name

2 of, and such other information as the State

3 agency may require with respect to, the non4 custodial parent of the child, subject to such

5 good cause exceptions, taking into account the

6 best interests of the child, as the State may es7 tablish through the State agency, or at the op8 tion of the State, through the State agencies

9 administering the State programs funded under

10 part A and title XIX;

11 ‘‘(B) shall require the individual to supply

12 additional necessary information and appear at

13 interviews, hearings, and legal proceedings;

14 ‘‘(C) shall require the individual and the

15 child to submit to genetic tests pursuant to ju16 dicial or administrative order;

17 ‘‘(D) may request that the individual sign

18 a voluntary acknowledgment of paternity, after

19 notice of the rights and consequences of such

20 an acknowledgment, but may not require the in21 dividual to sign an acknowledgment or other22 wise relinquish the right to genetic tests as a

23 condition of cooperation and eligibility for as24 sistance under the State program funded under
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1 part A or the State program under title XIX;

2 and

3 ‘‘(E) shall promptly notify the individual

4 and the State agency administering the State

5 program funded under part A and the State

6 agency administering the State program under

7 title XIX of each such determination, and if

8 noncooperation is determined, the basis there9 fore.’’.

10 Subtitle E—Program

11 Administration and Funding

12 SEC. 341. PERFORMANCE-BASED INCENTIVES AND PEN13 ALTIES.

14 (a) DEVELOPMENT OF NEW SYSTEM.—The Sec15 retary of Health and Human Services, in consultation with

16 State directors of programs under part D of title IV of

17 the Social Security Act, shall develop a new incentive sys18 tem to replace, in a revenue neutral manner, the system

19 under section 458 of such Act. The new system shall pro20 vide additional payments to any State based on such

21 State’s performance under such a program. Not later than

22 June 1, 1996, the Secretary shall report on the new sys23 tem to the Committee on Ways and Means of the House

24 of Representatives and the Committee on Finance of the

25 Senate.
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1 (b) CONFORMING AMENDMENTS TO PRESENT SYS2 TEM.—Section 458 (42 U.S.C. 658) is amended—

3 (1) in subsection (a), by striking ‘‘aid to fami4 lies with dependent children under a State plan ap5 proved under part A of this title’’ and inserting ‘‘as6 sistance under a program funded under part A’’;

7 (2) in subsection (b)(1)(A), by striking ‘‘section

8 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’;

9 (3) in subsections (b) and (c)—

10 (A) by striking ‘‘AFDC collections’’ each

11 place it appears and inserting ‘‘title IV–A col12 lections’’, and

13 (B) by striking ‘‘non-AFDC collections’’

14 each place it appears and inserting ‘‘non-title

15 IV–A collections’’; and

16 (4) in subsection (c), by striking ‘‘combined

17 AFDC/non-AFDC administrative costs’’ both places

18 it appears and inserting ‘‘combined title IV–A/non19 title IV–A administrative costs’’.

20 (c) CALCULATION OF IV–D PATERNITY ESTABLISH21 MENT PERCENTAGE.—

22 (1) Section 452(g)(1)(A) (42 U.S.C.

23 652(g)(1)(A)) is amended by striking ‘‘75’’ and in24 serting ‘‘90’’.
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1 (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

2 amended by redesignating subparagraphs (B)

3 through (E) as subparagraphs (C) through (F), re4 spectively, and by inserting after subparagraph (A)

5 the following new subparagraph:

6 ‘‘(B) for a State with a paternity establish7 ment percentage of not less than 75 percent but

8 less than 90 percent for such fiscal year, the

9 paternity establishment percentage of the State

10 for the immediately preceding fiscal year plus 2

11 percentage points;’’.

12 (3) Section 452(g)(2)(A) (42 U.S.C.

13 652(g)(2)(A)) is amended in the matter preceding

14 clause (i)—

15 (A) by striking ‘‘paternity establishment

16 percentage’’ and inserting ‘‘IV–D paternity es17 tablishment percentage’’; and

18 (B) by striking ‘‘(or all States, as the case

19 may be)’’.

20 (4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

21 amended by adding at the end the following new

22 sentence: ‘‘In meeting the 90 percent paternity es23 tablishment requirement, a State may calculate ei24 ther the paternity establishment rate of cases in the

25 program funded under this part or the paternity es-
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1 tablishment rate of all out-of-wedlock births in the

2 State.’’.

3 (5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

4 amended—

5 (A) by striking subparagraph (A) and re6 designating subparagraphs (B) and (C) as sub7 paragraphs (A) and (B), respectively;

8 (B) in subparagraph (A) (as so redesig9 nated), by striking ‘‘the percentage of children

10 born out-of-wedlock in a State’’ and inserting

11 ‘‘the percentage of children in a State who are

12 born out of wedlock or for whom support has

13 not been established’’; and

14 (C) in subparagraph (B) (as so redesig15 nated) by inserting ‘‘and securing support’’ be16 fore the period.

17 (d) EFFECTIVE DATES.—

18 (1) INCENTIVE ADJUSTMENTS.—

19 (A) IN GENERAL.—The system developed

20 under subsection (a) and the amendments made

21 by subsection (b) shall become effective on Oc22 tober 1, 1997, except to the extent provided in

23 subparagraph (B).

24 (B) APPLICATION OF SECTION 458.—Sec25 tion 458 of the Social Security Act, as in effect
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1 on the day before the date of the enactment of

2 this section, shall be effective for purposes of

3 incentive payments to States for fiscal years be4 fore fiscal year 1999.

5 (2) PENALTY REDUCTIONS.—The amendments

6 made by subsection (c) shall become effective with

7 respect to calendar quarters beginning on or after

8 the date of the enactment of this Act.

9 SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

10 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

11 U.S.C. 654) is amended—

12 (1) in paragraph (14), by striking ‘‘(14)’’ and

13 inserting ‘‘(14)(A)’’;

14 (2) by redesignating paragraph (15) as sub15 paragraph (B) of paragraph (14); and

16 (3) by inserting after paragraph (14) the fol17 lowing new paragraph:

18 ‘‘(15) provide for—

19 ‘‘(A) a process for annual reviews of and

20 reports to the Secretary on the State program

21 operated under the State plan approved under

22 this part, including such information as may be

23 necessary to measure State compliance with

24 Federal requirements for expedited procedures,

25 using such standards and procedures as are re-
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1 quired by the Secretary, under which the State

2 agency will determine the extent to which the

3 program is operated in compliance with this

4 part; and

5 ‘‘(B) a process of extracting from the auto6 mated data processing system required by para7 graph (16) and transmitting to the Secretary

8 data and calculations concerning the levels of

9 accomplishment (and rates of improvement)

10 with respect to applicable performance indica11 tors (including IV–D paternity establishment

12 percentages to the extent necessary for pur13 poses of sections 452(g) and 458.’’.

14 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

15 U.S.C. 652(a)(4)) is amended to read as follows:

16 ‘‘(4)(A) review data and calculations transmit17 ted by State agencies pursuant to section

18 454(15)(B) on State program accomplishments with

19 respect to performance indicators for purposes of

20 subsection (g) of this section and section 458;

21 ‘‘(B) review annual reports submitted pursuant

22 to section 454(15)(A) and, as appropriate, provide

23 to the State comments, recommendations for addi24 tional or alternative corrective actions, and technical

25 assistance; and
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1 ‘‘(C) conduct audits, in accordance with the

2 Government auditing standards of the Comptroller

3 General of the United States—

4 ‘‘(i) at least once every 3 years (or more

5 frequently, in the case of a State which fails to

6 meet the requirements of this part concerning

7 performance standards and reliability of pro8 gram data) to assess the completeness, reliabil9 ity, and security of the data, and the accuracy

10 of the reporting systems, used in calculating

11 performance indicators under subsection (g) of

12 this section and section 458;

13 ‘‘(ii) of the adequacy of financial manage14 ment of the State program operated under the

15 State plan approved under this part, including

16 assessments of—

17 ‘‘(I) whether Federal and other funds

18 made available to carry out the State pro19 gram are being appropriately expended,

20 and are properly and fully accounted for;

21 and

22 ‘‘(II) whether collections and disburse23 ments of support payments are carried out

24 correctly and are fully accounted for; and
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1 ‘‘(iii) for such other purposes as the Sec2 retary may find necessary;’’.

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

4 this section shall be effective with respect to calendar

5 quarters beginning 12 months or more after the date of

6 the enactment of this Act.

7 SEC. 343. REQUIRED REPORTING PROCEDURES.

8 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

9 652(a)(5)) is amended by inserting ‘‘, and establish proce10 dures to be followed by States for collecting and reporting

11 information required to be provided under this part, and

12 establish uniform definitions (including those necessary to

13 enable the measurement of State compliance with the re14 quirements of this part relating to expedited processes) to

15 be applied in following such procedures’’ before the semi16 colon.

17 (b) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 301(b), 303(a),

19 312(a), 313(a), and 333 of this Act, is amended—

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

21 (28);

22 (2) by striking the period at the end of para23 graph (29) and inserting ‘‘; and’’; and

24 (3) by adding after paragraph (29) the follow25 ing new paragraph:
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1 ‘‘(30) provide that the State shall use the defi2 nitions established under section 452(a)(5) in col3 lecting and reporting information as required under

4 this part.’’.

5 SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

6 (a) REVISED REQUIREMENTS.—

7 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

8 654(16)) is amended—

9 (A) by striking ‘‘, at the option of the

10 State,’’;

11 (B) by inserting ‘‘and operation by the

12 State agency’’ after ‘‘for the establishment’’;

13 (C) by inserting ‘‘meeting the requirements

14 of section 454A’’ after ‘‘information retrieval

15 system’’;

16 (D) by striking ‘‘in the State and localities

17 thereof, so as (A)’’ and inserting ‘‘so as’’;

18 (E) by striking ‘‘(i)’’; and

19 (F) by striking ‘‘(including’’ and all that

20 follows and inserting a semicolon.

21 (2) AUTOMATED DATA PROCESSING.—Part D of

22 title IV (42 U.S.C. 651–669) is amended by insert23 ing after section 454 the following new section:
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1 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

2 ‘‘(a) IN GENERAL.—In order for a State to meet the

3 requirements of this section, the State agency administer4 ing the State program under this part shall have in oper5 ation a single statewide automated data processing and

6 information retrieval system which has the capability to

7 perform the tasks specified in this section with the fre8 quency and in the manner required by or under this part.

9 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys10 tem required by this section shall perform such functions

11 as the Secretary may specify relating to management of

12 the State program under this part, including—

13 ‘‘(1) controlling and accounting for use of Fed14 eral, State, and local funds in carrying out the pro15 gram; and

16 ‘‘(2) maintaining the data necessary to meet

17 Federal reporting requirements under this part on a

18 timely basis.

19 ‘‘(c) CALCULATION OF PERFORMANCE INDICA20 TORS.—In order to enable the Secretary to determine the

21 incentive payments and penalty adjustments required by

22 sections 452(g) and 458, the State agency shall—

23 ‘‘(1) use the automated system—

24 ‘‘(A) to maintain the requisite data on

25 State performance with respect to paternity es-
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1 tablishment and child support enforcement in

2 the State; and

3 ‘‘(B) to calculate the IV–D paternity es4 tablishment percentage for the State for each

5 fiscal year; and

6 ‘‘(2) have in place systems controls to ensure

7 the completeness and reliability of, and ready access

8 to, the data described in paragraph (1)(A), and the

9 accuracy of the calculations described in paragraph

10 (1)(B).

11 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

12 State agency shall have in effect safeguards on the integ13 rity, accuracy, and completeness of, access to, and use of

14 data in the automated system required by this section,

15 which shall include the following (in addition to such other

16 safeguards as the Secretary may specify in regulations):

17 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

18 policies concerning access to data by State agency

19 personnel, and sharing of data with other persons,

20 which—

21 ‘‘(A) permit access to and use of data only

22 to the extent necessary to carry out the State

23 program under this part; and
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1 ‘‘(B) specify the data which may be used

2 for particular program purposes, and the per3 sonnel permitted access to such data.

4 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

5 (such as passwords or blocking of fields) to ensure

6 strict adherence to the policies described in para7 graph (1).

8 ‘‘(3) MONITORING OF ACCESS.—Routine mon9 itoring of access to and use of the automated sys10 tem, through methods such as audit trails and feed11 back mechanisms, to guard against and promptly

12 identify unauthorized access or use.

13 ‘‘(4) TRAINING AND INFORMATION.—Proce14 dures to ensure that all personnel (including State

15 and local agency staff and contractors) who may

16 have access to or be required to use confidential pro17 gram data are informed of applicable requirements

18 and penalties (including those in section 6103 of the

19 Internal Revenue Code of 1986), and are adequately

20 trained in security procedures.

21 ‘‘(5) PENALTIES.—Administrative penalties (up

22 to and including dismissal from employment) for un23 authorized access to, or disclosure or use of, con24 fidential data.’’.
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1 (3) REGULATIONS.—The Secretary of Health

2 and Human Services shall prescribe final regulations

3 for implementation of section 454A of the Social Se4 curity Act not later than 2 years after the date of

5 the enactment of this Act.

6 (4) IMPLEMENTATION TIMETABLE.—Section

7 454(24) (42 U.S.C. 654(24)), as amended by section

8 303(a)(1) of this Act, is amended to read as follows:

9 ‘‘(24) provide that the State will have in effect

10 an automated data processing and information re11 trieval system—

12 ‘‘(A) by October 1, 1997, which meets all

13 requirements of this part which were enacted on

14 or before the date of enactment of the Family

15 Support Act of 1988, and

16 ‘‘(B) by October 1, 1999, which meets all

17 requirements of this part enacted on or before

18 the date of the enactment of the Bipartisan

19 Welfare Reform Act of 1996, except that such

20 deadline shall be extended by 1 day for each

21 day (if any) by which the Secretary fails to

22 meet the deadline imposed by section 344(a)(3)

23 of the Bipartisan Welfare Reform Act of

24 1996;’’.
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1 (b) SPECIAL FEDERAL MATCHING RATE FOR DE2 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

3 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

4 655(a)) is amended—

5 (A) in paragraph (1)(B)—

6 (i) by striking ‘‘90 percent’’ and in7 serting ‘‘the percent specified in paragraph

8 (3)’’;

9 (ii) by striking ‘‘so much of’’; and

10 (iii) by striking ‘‘which the Secretary’’

11 and all that follows and inserting ‘‘, and’’;

12 and

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

14 paragraph:

15 ‘‘(3)(A) The Secretary shall pay to each State, for

16 each quarter in fiscal years 1996 and 1997, 90 percent

17 of so much of the State expenditures described in para18 graph (1)(B) as the Secretary finds are for a system meet19 ing the requirements specified in section 454(16) (as in

20 effect on September 30, 1995) but limited to the amount

21 approved for States in the advance planning documents

22 of such States submitted on or before May 1, 1995.

23 ‘‘(B)(i) The Secretary shall pay to each State, for

24 each quarter in fiscal years 1996 through 2001, the per25 centage specified in clause (ii) of so much of the State
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1 expenditures described in paragraph (1)(B) as the Sec2 retary finds are for a system meeting the requirements

3 of sections 454(16) and 454A.

4 ‘‘(ii) The percentage specified in this clause is 80 per5 cent.’’.

6 (2) TEMPORARY LIMITATION ON PAYMENTS

7 UNDER SPECIAL FEDERAL MATCHING RATE.—

8 (A) IN GENERAL.—The Secretary of

9 Health and Human Services may not pay more

10 than $400,000,000 in the aggregate under sec11 tion 455(a)(3)(B) of the Social Security Act for

12 fiscal years 1996 through 2001.

13 (B) ALLOCATION OF LIMITATION AMONG

14 STATES.—The total amount payable to a State

15 under section 455(a)(3)(B) of such Act for fis16 cal years 1996 through 2001 shall not exceed

17 the limitation determined for the State by the

18 Secretary of Health and Human Services in

19 regulations.

20 (C) ALLOCATION FORMULA.—The regula21 tions referred to in subparagraph (B) shall pre22 scribe a formula for allocating the amount spec23 ified in subparagraph (A) among States with

24 plans approved under part D of title IV of the
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1 Social Security Act, which shall take into ac2 count—

3 (i) the relative size of State caseloads

4 under such part; and

5 (ii) the level of automation needed to

6 meet the automated data processing re7 quirements of such part.

8 (c) CONFORMING AMENDMENT.—Section 123(c) of

9 the Family Support Act of 1988 (102 Stat. 2352; Public

10 Law 100–485) is repealed.

11 SEC. 345. TECHNICAL ASSISTANCE.

12 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

13 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE14 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI15 CANCE.—Section 452 (42 U.S.C. 652) is amended by add16 ing at the end the following new subsection:

17 ‘‘(j) Out of any money in the Treasury of the United

18 States not otherwise appropriated, there is hereby appro19 priated to the Secretary for each fiscal year an amount

20 equal to 1 percent of the total amount paid to the Federal

21 Government pursuant to section 457(a) during the imme22 diately preceding fiscal year (as determined on the basis

23 of the most recent reliable data available to the Secretary

24 as of the end of the 3rd calendar quarter following the
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1 end of such preceding fiscal year), to cover costs incurred

2 by the Secretary for—

3 ‘‘(1) information dissemination and technical

4 assistance to States, training of State and Federal

5 staff, staffing studies, and related activities needed

6 to improve programs under this part (including tech7 nical assistance concerning State automated systems

8 required by this part); and

9 ‘‘(2) research, demonstration, and special

10 projects of regional or national significance relating

11 to the operation of State programs under this part.

12 The amount appropriated under this subsection shall re13 main available until expended.’’.

14 (b) OPERATION OF FEDERAL PARENT LOCATOR

15 SERVICE.—Section 453 (42 U.S.C. 653), as amended by

16 section 316 of this Act, is amended by adding at the end

17 the following new subsection:

18 ‘‘(o) RECOVERY OF COSTS.—Out of any money in the

19 Treasury of the United States not otherwise appropriated,

20 there is hereby appropriated to the Secretary for each fis21 cal year an amount equal to 2 percent of the total amount

22 paid to the Federal Government pursuant to section

23 457(a) during the immediately preceding fiscal year (as

24 determined on the basis of the most recent reliable data

25 available to the Secretary as of the end of the 3rd calendar
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1 quarter following the end of such preceding fiscal year),

2 to cover costs incurred by the Secretary for operation of

3 the Federal Parent Locator Service under this section, to

4 the extent such costs are not recovered through user

5 fees.’’.

6 SEC. 346. REPORTS AND DATA COLLECTION BY THE SEC7 RETARY.

8 (a) ANNUAL REPORT TO CONGRESS.—

9 (1) Section 452(a)(10)(A) (42 U.S.C.

10 652(a)(10)(A)) is amended—

11 (A) by striking ‘‘this part;’’ and inserting

12 ‘‘this part, including—’’; and

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

14 clauses:

15 ‘‘(i) the total amount of child support

16 payments collected as a result of services

17 furnished during the fiscal year to individ18 uals receiving services under this part;

19 ‘‘(ii) the cost to the States and to the

20 Federal Government of so furnishing the

21 services; and

22 ‘‘(iii) the number of cases involving

23 families—

24 ‘‘(I) who became ineligible for as25 sistance under State programs funded
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1 under part A during a month in the

2 fiscal year; and

3 ‘‘(II) with respect to whom a

4 child support payment was received in

5 the month;’’.

6 (2) Section 452(a)(10)(C) (42 U.S.C.

7 652(a)(10)(C)) is amended—

8 (A) in the matter preceding clause (i)—

9 (i) by striking ‘‘with the data required

10 under each clause being separately stated

11 for cases’’ and inserting ‘‘separately stated

12 for (1) case’’;

13 (ii) by striking ‘‘cases where the child

14 was formerly receiving’’ and inserting ‘‘or

15 formerly received’’;

16 (iii) by inserting ‘‘or 1912’’ after

17 ‘‘471(a)(17)’’; and

18 (iv) by inserting ‘‘(2)’’ before ‘‘all

19 other’’;

20 (B) in each of clauses (i) and (ii), by strik21 ing ‘‘, and the total amount of such obliga22 tions’’;

23 (C) in clause (iii), by striking ‘‘described

24 in’’ and all that follows and inserting ‘‘in which

25 support was collected during the fiscal year;’’;
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1 (D) by striking clause (iv); and

2 (E) by redesignating clause (v) as clause

3 (vii), and inserting after clause (iii) the follow4 ing new clauses:

5 ‘‘(iv) the total amount of support col6 lected during such fiscal year and distrib7 uted as current support;

8 ‘‘(v) the total amount of support col9 lected during such fiscal year and distrib10 uted as arrearages;

11 ‘‘(vi) the total amount of support due

12 and unpaid for all fiscal years; and’’.

13 (3) Section 452(a)(10)(G) (42 U.S.C.

14 652(a)(10)(G)) is amended by striking ‘‘on the use

15 of Federal courts and’’.

16 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

17 is amended—

18 (A) in subparagraph (H), by striking

19 ‘‘and’’;

20 (B) in subparagraph (I), by striking the

21 period and inserting ‘‘; and’’; and

22 (C) by inserting after subparagraph (I) the

23 following new subparagraph:
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1 ‘‘(J) compliance, by State, with the stand2 ards established pursuant to subsections (h)

3 and (i).’’.

4 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10))

5 is amended by striking all that follows subparagraph

6 (J), as added by paragraph (4).

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

8 subsection (a) shall be effective with respect to fiscal year

9 1996 and succeeding fiscal years.

10 Subtitle F—Establishment and

11 Modification of Support Orders

12 SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST13 MENT OF CHILD SUPPORT ORDERS.

14 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend15 ed to read as follows:

16 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

17 ORDERS UPON REQUEST.—Procedures under which

18 the State shall review and adjust each support order

19 being enforced under this part upon the request of

20 either parent or the State if there is an assignment.

21 Such procedures shall provide the following:

22 ‘‘(A) IN GENERAL.—

23 ‘‘(i) 3-YEAR CYCLE.—Except as pro24 vided in subparagraphs (B) and (C), the

25 State shall review and, as appropriate, ad-
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1 just the support order every 3 years, tak2 ing into account the best interests of the

3 child involved.

4 ‘‘(ii) METHODS OF ADJUSTMENT.—

5 The State may elect to review and, if ap6 propriate, adjust an order pursuant to

7 clause (i) by—

8 ‘‘(I) reviewing and, if appro9 priate, adjusting the order in accord10 ance with the guidelines established

11 pursuant to section 467(a) if the

12 amount of the child support award

13 under the order differs from the

14 amount that would be awarded in ac15 cordance with the guidelines; or

16 ‘‘(II) applying a cost-of-living ad17 justment to the order in accordance

18 with a formula developed by the State

19 and permit either party to contest the

20 adjustment, within 30 days after the

21 date of the notice of the adjustment,

22 by making a request for review and, if

23 appropriate, adjustment of the order

24 in accordance with the child support
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1 guidelines established pursuant to sec2 tion 467(a).

3 ‘‘(iii) NO PROOF OF CHANGE IN CIR4 CUMSTANCES NECESSARY.—Any adjust5 ment under this subparagraph (A) shall be

6 made without a requirement for proof or

7 showing of a change in circumstances.

8 ‘‘(B) AUTOMATED METHOD.—The State

9 may use automated methods (including auto10 mated comparisons with wage or State income

11 tax data) to identify orders eligible for review,

12 conduct the review, identify orders eligible for

13 adjustment, and apply the appropriate adjust14 ment to the orders eligible for adjustment

15 under the threshold established by the State.

16 ‘‘(C) REQUEST UPON SUBSTANTIAL

17 CHANGE IN CIRCUMSTANCES.—The State shall,

18 at the request of either parent subject to such

19 an order or of any State child support enforce20 ment agency, review and, if appropriate, adjust

21 the order in accordance with the guidelines es22 tablished pursuant to section 467(a) based

23 upon a substantial change in the circumstances

24 of either parent.
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1 ‘‘(D) NOTICE OF RIGHT TO REVIEW.—The

2 State shall provide notice not less than once

3 every 3 years to the parents subject to such an

4 order informing them of their right to request

5 the State to review and, if appropriate, adjust

6 the order pursuant to this paragraph. The no7 tice may be included in the order.’’.

8 SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN

9 PURPOSES RELATING TO CHILD SUPPORT.

10 Section 604 of the Fair Credit Reporting Act (15

11 U.S.C. 1681b) is amended by adding at the end the follow12 ing new paragraphs:

13 ‘‘(4) In response to a request by the head of a

14 State or local child support enforcement agency (or

15 a State or local government official authorized by

16 the head of such an agency), if the person making

17 the request certifies to the consumer reporting agen18 cy that—

19 ‘‘(A) the consumer report is needed for the

20 purpose of establishing an individual’s capacity

21 to make child support payments or determining

22 the appropriate level of such payments;

23 ‘‘(B) the paternity of the consumer for the

24 child to which the obligation relates has been

25 established or acknowledged by the consumer in
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1 accordance with State laws under which the ob2 ligation arises (if required by those laws);

3 ‘‘(C) the person has provided at least 10

4 days’ prior notice to the consumer whose report

5 is requested, by certified or registered mail to

6 the last known address of the consumer, that

7 the report will be requested; and

8 ‘‘(D) the consumer report will be kept con9 fidential, will be used solely for a purpose de10 scribed in subparagraph (A), and will not be

11 used in connection with any other civil, admin12 istrative, or criminal proceeding, or for any

13 other purpose.

14 ‘‘(5) To an agency administering a State plan

15 under section 454 of the Social Security Act (42

16 U.S.C. 654) for use to set an initial or modified

17 child support award.’’.

18 SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS

19 PROVIDING FINANCIAL RECORDS TO STATE

20 CHILD SUPPORT ENFORCEMENT AGENCIES

21 IN CHILD SUPPORT CASES.

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of Federal or State law, a financial institution shall

24 not be liable under any Federal or State law to any person

25 for disclosing any financial record of an individual to a
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1 State child support enforcement agency attempting to es2 tablish, modify, or enforce a child support obligation of

3 such individual.

4 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

5 RECORD OBTAINED BY STATE CHILD SUPPORT EN6 FORCEMENT AGENCY.—A State child support enforcement

7 agency which obtains a financial record of an individual

8 from a financial institution pursuant to subsection (a)

9 may disclose such financial record only for the purpose

10 of, and to the extent necessary in, establishing, modifying,

11 or enforcing a child support obligation of such individual.

12 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO13 SURE.—

14 (1) DISCLOSURE BY STATE OFFICER OR EM15 PLOYEE.—If any person knowingly, or by reason of

16 negligence, discloses a financial record of an individ17 ual in violation of subsection (b), such individual

18 may bring a civil action for damages against such

19 person in a district court of the United States.

20 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO21 NEOUS INTERPRETATION.—No liability shall arise

22 under this subsection with respect to any disclosure

23 which results from a good faith, but erroneous, in24 terpretation of subsection (b).
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1 (3) DAMAGES.—In any action brought under

2 paragraph (1), upon a finding of liability on the part

3 of the defendant, the defendant shall be liable to the

4 plaintiff in an amount equal to the sum of—

5 (A) the greater of—

6 (i) $1,000 for each act of unauthor7 ized disclosure of a financial record with

8 respect to which such defendant is found

9 liable; or

10 (ii) the sum of—

11 (I) the actual damages sustained

12 by the plaintiff as a result of such un13 authorized disclosure; plus

14 (II) in the case of a willful disclo15 sure or a disclosure which is the re16 sult of gross negligence, punitive dam17 ages; plus

18 (B) the costs (including attorney’s fees) of

19 the action.

20 (d) DEFINITIONS.—For purposes of this section—

21 (1) FINANCIAL INSTITUTION.—The term ‘‘fi22 nancial institution’’ means—

23 (A) a depository institution, as defined in

24 section 3(c) of the Federal Deposit Insurance

25 Act (12 U.S.C. 1813(c));
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1 (B) an institution-affiliated party, as de2 fined in section 3(u) of such Act (12 U.S.C.

3 1813(v));

4 (C) any Federal credit union or State cred5 it union, as defined in section 101 of the Fed6 eral Credit Union Act (12 U.S.C. 1752), includ7 ing an institution-affiliated party of such a

8 credit union, as defined in section 206(r) of

9 such Act (12 U.S.C. 1786(r)); and

10 (D) any benefit association, insurance com11 pany, safe deposit company, money-market mu12 tual fund, or similar entity authorized to do

13 business in the State.

14 (2) FINANCIAL RECORD.—The term ‘‘financial

15 record’’ has the meaning given such term in section

16 1101 of the Right to Financial Privacy Act of 1978

17 (12 U.S.C. 3401).

18 (3) STATE CHILD SUPPORT ENFORCEMENT

19 AGENCY.—The term ‘‘State child support enforce20 ment agency’’ means a State agency which admin21 isters a State program for establishing and enforcing

22 child support obligations.
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1 Subtitle G—Enforcement of

2 Support Orders

3 SEC. 361. 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. 362. 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. 662(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. 662(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. 363. 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 362(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, assigns to a

21 State the rights of the spouse or former spouse to

22 receive support, the Secretary concerned may make

23 the child support payments referred to in the preced24 ing sentence to that State in amounts consistent

25 with that assignment of rights.’’.
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1 (3) ARREARAGES OWED BY MEMBERS OF THE

2 UNIFORMED SERVICES.—Section 1408(d) of such

3 title is amended by adding at the end the following

4 new paragraph:

5 ‘‘(6) In the case of a court order for which effective

6 service is made on the Secretary concerned on or after

7 the date of the enactment of this paragraph and which

8 provides for payments from the disposable retired pay of

9 a member to satisfy the amount of child support set forth

10 in the order, the authority provided in paragraph (1) to

11 make payments from the disposable retired pay of a mem12 ber to satisfy the amount of child support set forth in a

13 court order shall apply to payment of any amount of child

14 support arrearages set forth in that order as well as to

15 amounts of child support that currently become due.’’.

16 (4) PAYROLL DEDUCTIONS.—The Secretary of

17 Defense shall begin payroll deductions within 30

18 days after receiving notice of withholding, or for the

19 1st pay period that begins after such 30-day period.

20 SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

21 Section 466 (42 U.S.C. 666), as amended by section

22 321 of this Act, is amended by adding at the end the fol23 lowing new subsection:
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1 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

2 order to satisfy section 454(20)(A), each State must have

3 in effect—

4 ‘‘(1)(A) the Uniform Fraudulent Conveyance

5 Act of 1981;

6 ‘‘(B) the Uniform Fraudulent Transfer Act

7 of 1984; or

8 ‘‘(C) another law, specifying indicia of

9 fraud which create a prima facie case that a

10 debtor transferred income or property to avoid

11 payment to a child support creditor, which the

12 Secretary finds affords comparable rights to

13 child support creditors; 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. 365. WORK REQUIREMENT FOR PERSONS OWING

22 PAST-DUE CHILD SUPPORT.

23 (a) IN GENERAL.—Section 466(a) of the Social Secu24 rity Act (42 U.S.C. 666(a)), as amended by sections 315,
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1 317(a), and 323 of this Act, is amended by adding at the

2 end the following new paragraph:

3 ‘‘(15) PROCEDURES TO ENSURE THAT PERSONS

4 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

5 FOR PAYMENT OF SUCH SUPPORT.—

6 ‘‘(A) IN GENERAL.—Procedures under

7 which the State has the authority, in any case

8 in which an individual owes past-due support

9 with respect to a child receiving assistance

10 under a State program funded under part A, to

11 seek a court order that requires the individual

12 to—

13 ‘‘(i) pay such support in accordance

14 with a plan approved by the court, or, at

15 the option of the State, a plan approved by

16 the State agency administering the State

17 program under this part; or

18 ‘‘(ii) if the individual is subject to

19 such a plan and is not incapacitated, par20 ticipate in such work activities (as defined

21 in section 407(d)) as the court, or, at the

22 option of the State, the State agency ad23 ministering the State program under this

24 part, deems appropriate.
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1 ‘‘(B) PAST-DUE SUPPORT DEFINED.—For

2 purposes of subparagraph (A), the term ‘past3 due support’ means the amount of a delin4 quency, determined under a court order, or an

5 order of an administrative process established

6 under State law, for support and maintenance

7 of a child, or of a child and the parent with

8 whom the child is living.’’.

9 (b) CONFORMING AMENDMENT.—The flush para10 graph at the end of section 466(a) (42 U.S.C.666(a)) is

11 amended by striking ‘‘and (7)’’ and inserting ‘‘(7), and

12 (15)’’.

13 SEC. 366. DEFINITION OF SUPPORT ORDER.

14 Section 453 (42 U.S.C. 653) as amended by sections

15 316 and 345(b) of this Act, is amended by adding at the

16 end the following new subsection:

17 ‘‘(p) SUPPORT ORDER DEFINED.—As used in this

18 part, the term ‘support order’ means a judgment, decree,

19 or order, whether temporary, final, or subject to modifica20 tion, issued by a court or an administrative agency of com21 petent jurisdiction, for the support and maintenance of a

22 child, including a child who has attained the age of major23 ity under the law of the issuing State, or a child and the

24 parent with whom the child is living, which provides for

25 monetary support, health care, arrearages, or reimburse-
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1 ment, and which may include related costs and fees, inter2 est and penalties, income withholding, attorneys’ fees, and

3 other relief.’’.

4 SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

5 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

6 to read as follows:

7 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU8 REAUS.—

9 ‘‘(A) IN GENERAL.—Procedures (subject to

10 safeguards pursuant to subparagraph (B)) re11 quiring the State to report periodically to

12 consumer reporting agencies (as defined in sec13 tion 603(f) of the Fair Credit Reporting Act

14 (15 U.S.C. 1681a(f)) the name of any non15 custodial parent who is delinquent in the pay16 ment of support, and the amount of overdue

17 support owed by such parent.

18 ‘‘(B) SAFEGUARDS.—Procedures ensuring

19 that, in carrying out subparagraph (A), infor20 mation with respect to a noncustodial parent is

21 reported—

22 ‘‘(i) only after such parent has been

23 afforded all due process required under

24 State law, including notice and a reason-
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1 able opportunity to contest the accuracy of

2 such information; and

3 ‘‘(ii) only to an entity that has fur4 nished evidence satisfactory to the State

5 that the entity is a consumer reporting

6 agency (as so defined).’’.

7 SEC. 368. LIENS.

8 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

9 to read as follows:

10 ‘‘(4) LIENS.—Procedures under which—

11 ‘‘(A) liens arise by operation of law against

12 real and personal property for amounts of over13 due support owed by a noncustodial parent who

14 resides or owns property in the State; and

15 ‘‘(B) the State accords full faith and credit

16 to liens described in subparagraph (A) arising

17 in another State, without registration of the un18 derlying order.’’.

19 SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LI20 CENSES.

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

22 sections 315, 317(a), 323, and 365 of this Act, is amended

23 by adding at the end the following:

24 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

25 LICENSES.—Procedures under which the State has
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1 (and uses in appropriate cases) authority to withhold

2 or suspend, or to restrict the use of driver’s licenses,

3 professional and occupational licenses, and rec4 reational licenses of individuals owing overdue sup5 port or failing, after receiving appropriate notice, to

6 comply with subpoenas or warrants relating to pa7 ternity or child support proceedings.’’.

8 SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF

9 CHILD SUPPORT.

10 (a) HHS CERTIFICATION PROCEDURE.—

11 (1) SECRETARIAL RESPONSIBILITY.—Section

12 452 (42 U.S.C. 652), as amended by section 345 of

13 this Act, is amended by adding at the end the fol14 lowing new subsection:

15 ‘‘(k)(1) If the Secretary receives a certification by a

16 State agency in accordance with the requirements of sec17 tion 454(31) that an individual owes arrearages of child

18 support in an amount exceeding $5,000, the Secretary

19 shall transmit such certification to the Secretary of State

20 for action (with respect to denial, revocation, or limitation

21 of passports) pursuant to section 370(b) of the Bipartisan

22 Welfare Reform Act of 1996.

23 ‘‘(2) The Secretary shall not be liable to an individual

24 for any action with respect to a certification by a State

25 agency under this section.’’.
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1 (2) STATE CASE AGENCY RESPONSIBILITY.—

2 Section 454 (42 U.S.C. 654), as amended by sec3 tions 301(b), 303(a), 312(b), 313(a), 333, and

4 343(b) of this Act, is amended—

5 (A) by striking ‘‘and’’ at the end of para6 graph (29);

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

8 paragraph (30) and inserting ‘‘; and’’; and

9 (C) by adding after paragraph (30) the fol10 lowing new paragraph:

11 ‘‘(31) provide that the State agency will have in

12 effect a procedure for certifying to the Secretary, for

13 purposes of the procedure under section 452(k), de14 terminations that individuals owe arrearages of child

15 support in an amount exceeding $5,000, under

16 which procedure—

17 ‘‘(A) each individual concerned is afforded

18 notice of such determination and the con19 sequences thereof, and an opportunity to con20 test the determination; and

21 ‘‘(B) the certification by the State agency

22 is furnished to the Secretary in such format,

23 and accompanied by such supporting docu24 mentation, as the Secretary may require.’’.
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1 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

2 OF PASSPORTS.—

3 (1) IN GENERAL.—The Secretary of State shall,

4 upon certification by the Secretary of Health and

5 Human Services transmitted under section 452(k) of

6 the Social Security Act, refuse to issue a passport to

7 such individual, and may revoke, restrict, or limit a

8 passport issued previously to such individual.

9 (2) LIMIT ON LIABILITY.—The Secretary of

10 State shall not be liable to an individual for any ac11 tion with respect to a certification by a State agency

12 under this section.

13 (c) EFFECTIVE DATE.—This section and the amend14 ments made by this section shall become effective October

15 1, 1996.

16 SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCE17 MENT.

18 (a) AUTHORITY FOR INTERNATIONAL AGREE19 MENTS.—Part D of title IV, as amended by section 362(a)

20 of this Act, is amended by adding after section 459 the

21 following new section:

22 ‘‘SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCE23 MENT.

24 ‘‘(a) AUTHORITY FOR DECLARATIONS.—
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1 ‘‘(1) DECLARATION.—The Secretary of State,

2 with the concurrence of the Secretary of Health and

3 Human Services, is authorized to declare any foreign

4 country (or a political subdivision thereof) to be a

5 foreign reciprocating country if the foreign country

6 has established, or undertakes to establish, proce7 dures for the establishment and enforcement of du8 ties of support owed to obligees who are residents of

9 the United States, and such procedures are substan10 tially in conformity with the standards prescribed

11 under subsection (b).

12 ‘‘(2) REVOCATION.—A declaration with respect

13 to a foreign country made pursuant to paragraph

14 (1) may be revoked if the Secretaries of State and

15 Health and Human Services determine that—

16 ‘‘(A) the procedures established by the for17 eign nation regarding the establishment and en18 forcement of duties of support have been so

19 changed, or the foreign nation’s implementation

20 of such procedures is so unsatisfactory, that

21 such procedures do not meet the criteria for

22 such a declaration; or

23 ‘‘(B) continued operation of the declaration

24 is not consistent with the purposes of this part.
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1 ‘‘(3) FORM OF DECLARATION.—A declaration

2 under paragraph (1) may be made in the form of an

3 international agreement, in connection with an inter4 national agreement or corresponding foreign declara5 tion, or on a unilateral basis.

6 ‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE7 MENT PROCEDURES.—

8 ‘‘(1) MANDATORY ELEMENTS.—Child support

9 enforcement procedures of a foreign country which

10 may be the subject of a declaration pursuant to sub11 section (a)(1) shall include the following elements:

12 ‘‘(A) The foreign country (or political sub13 division thereof) has in effect procedures, avail14 able to residents of the United States—

15 ‘‘(i) for establishment of paternity,

16 and for establishment of orders of support

17 for children and custodial parents; and

18 ‘‘(ii) for enforcement of orders to pro19 vide support to children and custodial par20 ents, including procedures for collection

21 and appropriate distribution of support

22 payments under such orders.

23 ‘‘(B) The procedures described in subpara24 graph (A), including legal and administrative
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1 assistance, are provided to residents of the

2 United States at no cost.

3 ‘‘(C) An agency of the foreign country is

4 designated as a Central Authority responsible

5 for—

6 ‘‘(i) facilitating child support enforce7 ment in cases involving residents of the

8 foreign nation and residents of the United

9 States; and

10 ‘‘(ii) ensuring compliance with the

11 standards established pursuant to this sub12 section.

13 ‘‘(2) ADDITIONAL ELEMENTS.—The Secretary

14 of Health and Human Services and the Secretary of

15 State, in consultation with the States, may establish

16 such additional standards as may be considered nec17 essary to further the purposes of this section.

18 ‘‘(c) DESIGNATION OF UNITED STATES CENTRAL

19 AUTHORITY.—It shall be the responsibility of the Sec20 retary of Health and Human Services to facilitate child

21 support enforcement in cases involving residents of the

22 United States and residents of foreign nations that are

23 the subject of a declaration under this section, by activities

24 including—
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1 ‘‘(1) development of uniform forms and proce2 dures for use in such cases;

3 ‘‘(2) notification of foreign reciprocating coun4 tries of the State of residence of individuals sought

5 for support enforcement purposes, on the basis of in6 formation provided by the Federal Parent Locator

7 Service; and

8 ‘‘(3) such other oversight, assistance, and co9 ordination activities as the Secretary may find nec10 essary and appropriate.

11 ‘‘(d) EFFECT ON OTHER LAWS.—States may enter

12 into reciprocal arrangements for the establishment and en13 forcement of child support obligations with foreign coun14 tries that are not the subject of a declaration pursuant

15 to subsection (a), to the extent consistent with Federal

16 law.’’.

17 (b) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 301(b), 303(a),

19 312(b), 313(a), 333, 343(b), and 370(a)(2) of this Act,

20 is amended—

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

22 (30);

23 (2) by striking the period at the end of para24 graph (31) and inserting ‘‘; and’’; and
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1 (3) by adding after paragraph (31) the follow2 ing new paragraph:

3 ‘‘(32)(A) provide that any request for services

4 under this part by a foreign reciprocating country or

5 a foreign country with which the State has an ar6 rangement described in section 459A(d)(2) shall be

7 treated as a request by a State;

8 ‘‘(B) provide, at State option, notwithstanding

9 paragraph (4) or any other provision of this part,

10 for services under the plan for enforcement of a

11 spousal support order not described in paragraph

12 (4)(B) entered by such a country (or subdivision);

13 and

14 ‘‘(C) provide that no applications will be re15 quired from, and no costs will be assessed for such

16 services against, the foreign reciprocating country or

17 foreign obligee (but costs may at State option be as18 sessed against the obligor).’’.

19 SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

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

21 sections 315, 317(a), 323, 365, and 369 of this Act, is

22 amended by adding at the end the following new para23 graph:

24 ‘‘(17) FINANCIAL INSTITUTION DATA

25 MATCHES.—
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1 ‘‘(A) IN GENERAL.—Procedures under

2 which the State agency shall enter into agree3 ments with financial institutions doing business

4 in the State—

5 ‘‘(i) to develop and operate, in coordi6 nation with such financial institutions, a

7 data match system, using automated data

8 exchanges to the maximum extent feasible,

9 in which each such financial institution is

10 required to provide for each calendar quar11 ter the name, record address, social secu12 rity number or other taxpayer identifica13 tion number, and other identifying infor14 mation for each noncustodial parent who

15 maintains an account at such institution

16 and who owes past-due support, as identi17 fied by the State by name and social secu18 rity number or other taxpayer identifica19 tion number; and

20 ‘‘(ii) in response to a notice of lien or

21 levy, encumber or surrender, as the case

22 may be, assets held by such institution on

23 behalf of any noncustodial parent who is

24 subject to a child support lien pursuant to

25 paragraph (4).
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1 ‘‘(B) REASONABLE FEES.—The State

2 agency may pay a reasonable fee to a financial

3 institution for conducting the data match pro4 vided for in subparagraph (A)(i), not to exceed

5 the actual costs incurred by such financial insti6 tution.

7 ‘‘(C) LIABILITY.—A financial institution

8 shall not be liable under any Federal or State

9 law to any person—

10 ‘‘(i) for any disclosure of information

11 to the State agency under subparagraph

12 (A)(i);

13 ‘‘(ii) for encumbering or surrendering

14 any assets held by such financial institu15 tion in response to a notice of lien or levy

16 issued by the State agency as provided for

17 in subparagraph (A)(ii); or

18 ‘‘(iii) for any other action taken in

19 good faith to comply with the requirements

20 of subparagraph (A).

21 ‘‘(D) DEFINITIONS.—For purposes of this

22 paragraph—

23 ‘‘(i) FINANCIAL INSTITUTION.—The

24 term ‘financial institution’ means any Fed25 eral or State commercial savings bank, in-
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1 cluding savings association or cooperative

2 bank, Federal- or State-chartered credit

3 union, benefit association, insurance com4 pany, safe deposit company, money-market

5 mutual fund, or any similar entity author6 ized to do business in the State; and

7 ‘‘(ii) ACCOUNT.—The term ‘account’

8 means a demand deposit account, checking

9 or negotiable withdrawal order account,

10 savings account, time deposit account, or

11 money-market mutual fund account.’’.

12 SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL

13 OR MATERNAL GRANDPARENTS IN CASES OF

14 MINOR PARENTS.

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

16 sections 315, 317(a), 323, 365, 369, and 372 of this Act,

17 is amended by adding at the end the following new para18 graph:

19 ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA20 TERNAL OR MATERNAL GRANDPARENTS.—Proce21 dures under which, at the State’s option, any child

22 support order enforced under this part with respect

23 to a child of minor parents, if the custodial parents

24 of such child is receiving assistance under the State

25 program under part A, shall be enforceable, jointly
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1 and severally, against the parents of the noncusto2 dial parents of such child.’’.

3 SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF

4 CERTAIN DEBTS FOR THE SUPPORT OF A

5 CHILD.

6 (a) AMENDMENT TO TITLE 11 OF THE UNITED

7 STATES CODE.—Section 523(a) of title 11, United States

8 Code, is amended—

9 (1) in paragraph (16) by striking the period at

10 the end and inserting ‘‘; or’’,

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

12 ‘‘(17) to a State or municipality for assistance

13 provided by such State or municipality under a

14 State program funded under section 403 of the So15 cial Security Act to the extent that such assistance

16 is provided for the support of a child of the debtor.’’,

17 and

18 (3) in paragraph (5), by inserting ‘‘ or section

19 408’’ after ‘‘section 402(a)(26).

20 (b) AMENDMENT TO THE SOCIAL SECURITY ACT.—

21 Section 456(b) of the Social Security Act (42 U.S.C.

22 656(b)) is amended to read as follows:

23 ‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in

24 section 101 of title 11 of the United States Code) to a

25 State (as defined in such section) or municipality (as de-
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1 fined in such section) for assistance provided by such

2 State or municipality under a State program funded under

3 section 403 is not dischargeable under section 727, 1141,

4 1228(a), 1228(b), or 1328(b) of title 11 of the United

5 States Code to the extent that such assistance is provided

6 for the support of a child of the debtor (as defined in such

7 section).’’.

8 (c) APPLICATION OF AMENDMENTS.—The amend9 ments made by this section shall apply only with respect

10 to cases commenced under title 11 of the United States

11 Code after the effective date of this section.

12 Subtitle H—Medical Support

13 SEC. 376. CORRECTION TO ERISA DEFINITION OF MEDICAL

14 CHILD SUPPORT ORDER.

15 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em16 ployee Retirement Income Security Act of 1974 (29

17 U.S.C. 1169(a)(2)(B)) is amended—

18 (1) by striking ‘‘issued by a court of competent

19 jurisdiction’’;

20 (2) by striking the period at the end of clause

21 (ii) and inserting a comma; and

22 (3) by adding, after and below clause (ii), the

23 following:

24 ‘‘if such judgment, decree, or order (I) is issued

25 by a court of competent jurisdiction or (II) is
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1 issued through an administrative process estab2 lished under State law and has the force and ef3 fect of law under applicable State law.’’.

4 (b) EFFECTIVE DATE.—

5 (1) IN GENERAL.—The amendments made by

6 this section shall take effect on the date of the en7 actment of this Act.

8 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

9 JANUARY 1, 1997.—Any amendment to a plan re10 quired to be made by an amendment made by this

11 section shall not be required to be made before the

12 1st plan year beginning on or after January 1,

13 1997, if—

14 (A) during the period after the date before

15 the date of the enactment of this Act and be16 fore such 1st plan year, the plan is operated in

17 accordance with the requirements of the amend18 ments made by this section; and

19 (B) such plan amendment applies retro20 actively to the period after the date before the

21 date of the enactment of this Act and before

22 such 1st plan year.

23 A plan shall not be treated as failing to be operated

24 in accordance with the provisions of the plan merely
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1 because it operates in accordance with this para2 graph.

3 SEC. 377. ENFORCEMENT OF ORDERS FOR HEALTH CARE

4 COVERAGE.

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

6 sections 315, 317(a), 323, 365, 369, 372, and 373 of this

7 Act, is amended by adding at the end the following new

8 paragraph:

9 ‘‘(19) HEALTH CARE COVERAGE.—Procedures

10 under which all child support orders enforced pursu11 ant to this part shall include a provision for the

12 health care coverage of the child, and in the case in

13 which a noncustodial parent provides such coverage

14 and changes employment, and the new employer pro15 vides health care coverage, the State agency shall

16 transfer notice of the provision to the employer,

17 which notice shall operate to enroll the child in the

18 noncustodial parent’s health plan, unless the non19 custodial parent contests the notice.’’.
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1 Subtitle I—Enhancing Responsibil2 ity and Opportunity for Non3 Residential Parents

4 SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITA5 TION PROGRAMS.

6 Part D of title IV (42 U.S.C. 651–669) is amended

7 by adding at the end the following:

8 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA9 TION PROGRAMS.

10 ‘‘(a) IN GENERAL.—The Administration for Children

11 and Families shall make grants under this section to en12 able States to establish and administer programs to sup13 port and facilitate noncustodial parents’ access to and visi14 tation of their children, by means of activities including

15 mediation (both voluntary and mandatory), counseling,

16 education, development of parenting plans, visitation en17 forcement (including monitoring, supervision and neutral

18 drop-off and pickup), and development of guidelines for

19 visitation and alternative custody arrangements.

20 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

21 to be made to a State under this section for a fiscal year

22 shall be an amount equal to the lesser of—

23 ‘‘(1) 90 percent of State expenditures during

24 the fiscal year for activities described in subsection

25 (a); or
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1 ‘‘(2) the allotment of the State under sub2 section (c) for the fiscal year.

3 ‘‘(c) ALLOTMENTS TO STATES.—

4 ‘‘(1) IN GENERAL.—The allotment of a State

5 for a fiscal year is the amount that bears the same

6 ratio to the amount appropriated for grants under

7 this section for the fiscal year as the number of chil8 dren in the State living with only 1 biological parent

9 bears to the total number of such children in all

10 States.

11 ‘‘(2) MINIMUM ALLOTMENT.—The Administra12 tion for Children and Families shall adjust allot13 ments to States under paragraph (1) as necessary to

14 ensure that no State is allotted less than—

15 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

16 or

17 ‘‘(B) $100,000 for any succeeding fiscal

18 year.

19 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

20 FOR SIMILAR ACTIVITIES.—A State to which a grant is

21 made under this section may not use the grant to supplant

22 expenditures by the State for activities specified in sub23 section (a), but shall use the grant to supplement such

24 expenditures at a level at least equal to the level of such

25 expenditures for fiscal year 1995.
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1 ‘‘(e) STATE ADMINISTRATION.—Each State to which

2 a grant is made under this section—

3 ‘‘(1) may administer State programs funded

4 with the grant, directly or through grants to or con5 tracts with courts, local public agencies, or non-prof6 it private entities;

7 ‘‘(2) shall not be required to operate such pro8 grams on a statewide basis; and

9 ‘‘(3) shall monitor, evaluate, and report on such

10 programs in accordance with regulations prescribed

11 by the Secretary.’’.

12 Subtitle J—Effect of Enactment

13 SEC. 391. EFFECTIVE DATES.

14 (a) IN GENERAL.—Except as otherwise specifically

15 provided (but subject to subsections (b) and (c))—

16 (1) the provisions of this title requiring the en17 actment or amendment of State laws under section

18 466 of the Social Security Act, or revision of State

19 plans under section 454 of such Act, shall be effec20 tive with respect to periods beginning on and after

21 October 1, 1996; and

22 (2) all other provisions of this title shall become

23 effective upon the date of the enactment of this Act.
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1 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

2 provisions of this title shall become effective with respect

3 to a State on the later of—

4 (1) the date specified in this title, or

5 (2) the effective date of laws enacted by the leg6 islature of such State implementing such provisions,

7 but in no event later than the 1st day of the 1st calendar

8 quarter beginning after the close of the 1st regular session

9 of the State legislature that begins after the date of the

10 enactment of this Act. For purposes of the previous sen11 tence, in the case of a State that has a 2-year legislative

12 session, each year of such session shall be deemed to be

13 a separate regular session of the State legislature.

14 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

15 AMENDMENT.—A State shall not be found out of compli16 ance with any requirement enacted by this title if the State

17 is unable to so comply without amending the State con18 stitution until the earlier of—

19 (1) 1 year after the effective date of the nec20 essary State constitutional amendment; or

21 (2) 5 years after the date of the enactment of

22 this Act.
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1 TITLE IV—RESTRICTING WEL2 FARE AND PUBLIC BENEFITS

3 FOR ALIENS

4 SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERN5 ING WELFARE AND IMMIGRATION.

6 The Congress makes the following statements con7 cerning national policy with respect to welfare and immi8 gration:

9 (1) Self-sufficiency has been a basic principle of

10 United States immigration law since this country’s

11 earliest immigration statutes.

12 (2) It continues to be the immigration policy of

13 the United States that—

14 (A) aliens within the nation’s borders not

15 depend on public resources to meet their needs,

16 but rather rely on their own capabilities and the

17 resources of their families, their sponsors, and

18 private organizations, and

19 (B) the availability of public benefits not

20 constitute an incentive for immigration to the

21 United States.

22 (3) Despite the principle of self-sufficiency,

23 aliens have been applying for and receiving public

24 benefits from Federal, State, and local governments

25 at increasing rates.
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1 (4) Current eligibility rules for public assistance

2 and unenforceable financial support agreements have

3 proved wholly incapable of assuring that individual

4 aliens not burden the public benefits system.

5 (5) It is a compelling government interest to

6 enact new rules for eligibility and sponsorship agree7 ments in order to assure that aliens be self-reliant

8 in accordance with national immigration policy.

9 (6) It is a compelling government interest to re10 move the incentive for illegal immigration provided

11 by the availability of public benefits.

12 (7) With respect to the State authority to make

13 determinations concerning the eligibility of qualified

14 aliens for public benefits in this title, a State that

15 chooses to follow the Federal classification in deter16 mining the eligibility of such aliens for public assist17 ance shall be considered to have chosen the least re18 strictive means available for achieving the compelling

19 governmental interest of assuring that aliens be self20 reliant in accordance with national immigration pol21 icy.
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1 Subtitle A—Eligibility for Federal

2 Benefits

3 SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI4 GIBLE FOR FEDERAL PUBLIC BENEFITS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law and except as provided in subsection (b), an

7 alien who is not a qualified alien (as defined in section

8 431) is not eligible for any Federal public benefit (as de9 fined in subsection (c)).

10 (b) EXCEPTIONS.—

11 (1) Subsection (a) shall not apply with respect

12 to the following Federal public benefits:

13 (A) Emergency medical services under title

14 XIX or XXI of the Social Security Act.

15 (B) Short-term, non-cash, in-kind emer16 gency disaster relief.

17 (C)(i) Public health assistance for immuni18 zations.

19 (ii) Public health assistance for testing and

20 treatment of a serious communicable disease if

21 the Secretary of Health and Human Services

22 determines that it is necessary to prevent the

23 spread of such disease.

24 (D) Programs, services, or assistance (such

25 as soup kitchens, crisis counseling and interven-
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1 tion, and short-term shelter) specified by the

2 Attorney General, in the Attorney General’s

3 sole and unreviewable discretion after consulta4 tion with appropriate Federal agencies and de5 partments, which (i) deliver in-kind services at

6 the community level, including through public

7 or private nonprofit agencies; (ii) do not condi8 tion the provision of assistance, the amount of

9 assistance provided, or the cost of assistance

10 provided on the individual recipient’s income or

11 resources; and (iii) are necessary for the protec12 tion of life or safety.

13 (E) Programs for housing or community

14 development assistance or financial assistance

15 administered by the Secretary of Housing and

16 Urban Development, any program under title V

17 of the Housing Act of 1949, or any assistance

18 under section 306C of the Consolidated Farm

19 and Rural Development Act, to the extent that

20 the alien is receiving such a benefit on the date

21 of the enactment of this Act.

22 (F) Assistance or benefits under the Na23 tional School Lunch Act or the Child Nutrition

24 Act of 1966.
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1 (2) Subsection (a) shall not apply to any benefit

2 payable under title II of the Social Security Act to

3 an alien who is lawfully present in the United States

4 as determined by the Attorney General, to any bene5 fit if nonpayment of such benefit would contravene

6 an international agreement described in section 233

7 of the Social Security Act, to any benefit if nonpay8 ment would be contrary to section 202(t) of the So9 cial Security Act, or to any benefit payable under

10 title II of the Social Security Act to which entitle11 ment is based on an application filed in or before the

12 month in which this Act becomes law.

13 (3) Subsection (a) shall not apply—

14 (A) for up to 48 months if the alien can

15 demonstrate that (i) the alien has been battered

16 or subject to extreme cruelty in the United

17 States by a spouse or parent, or by a member

18 of the spouse or parent’s family residing in the

19 same household as the alien and the spouse or

20 parent consented or acquiesced to such battery

21 or cruelty, or (ii) the alien’s child has been bat22 tered or subject to extreme cruelty in the Unit23 ed States by a spouse or parent of the alien

24 (without the active participation of the alien in

25 the battery or extreme cruelty), or by a member
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1 of the spouse or parent’s family residing in the

2 same household as the alien when the spouse or

3 parent consented or acquiesced to and the alien

4 did not actively participate in such battery or

5 cruelty, and (iii) the need for the public benefits

6 applied for has a substantial connection to the

7 battery or cruelty described in subclause (I) or

8 (II); and

9 (B) for more than 48 months if the alien

10 can demonstrate that any battery or cruelty

11 under subparagraph (A) is ongoing, has led to

12 the issuance of an order of a judge or an ad13 ministrative law judge or a prior determination

14 of the Service, and that the need for such bene15 fits has a substantial connection to such battery

16 or cruelty.

17 (c) FEDERAL PUBLIC BENEFIT DEFINED.—

18 (1) Except as provided in paragraph (2), for

19 purposes of this title the term ‘‘Federal public bene20 fit’’ means—

21 (A) any grant, contract, loan, professional

22 license, or commercial license provided by an

23 agency of the United States or by appropriated

24 funds of the United States; and
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1 (B) any retirement, welfare, health, dis2 ability, public or assisted housing, post-second3 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 the United States or by appro8 priated funds of the United States.

9 (2) Such term shall not apply—

10 (A) to any contract, professional license, or

11 commercial license for a nonimmigrant whose

12 visa for entry is related to such employment in

13 the United States; or

14 (B) with respect to benefits for an alien

15 who as a work authorized nonimmigrant or as

16 an alien lawfully admitted for permanent resi17 dence under the Immigration and Nationality

18 Act qualified for such benefits and for whom

19 the United States under reciprocal treaty agree20 ments is required to pay benefits, as determined

21 by the Attorney General, after consultation with

22 the Secretary of State.
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1 SEC. 402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED

2 ALIENS 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 431) is not eligible for any specified Federal

9 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 20 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 403(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 (E) FICA EXCEPTION.—Paragraph (1)

19 shall not apply to an alien if there has been

20 paid with respect to the self-employment income

21 or employment of the alien, or of a parent or

22 spouse of the alien, taxes under chapter 2 or

23 chapter 21 of the Internal Revenue Code of

24 1986 in each of 20 different calendar quarters.
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1 (F) EXCEPTION FOR BATTERED WOMEN

2 AND CHILDREN.—Paragraph (1) shall not

3 apply—

4 (i) for up to 48 months if the alien

5 can demonstrate that (I) the alien has

6 been battered or subject to extreme cruelty

7 in the United States by a spouse or parent,

8 or by a member of the spouse or parent’s

9 family residing in the same household as

10 the alien and the spouse or parent con11 sented or acquiesced to such battery or

12 cruelty, or (II) the alien’s child has been

13 battered or subject to extreme cruelty in

14 the United States by a spouse or parent of

15 the alien (without the active participation

16 of the alien in the battery or extreme cru17 elty), or by a member of the spouse or par18 ent’s family residing in the same household

19 as the alien when the spouse or parent

20 consented or acquiesced to and the alien

21 did not actively participate in such battery

22 or cruelty, and (III) the need for the public

23 benefits applied for has a substantial con24 nection to the battery or cruelty described

25 in this clause; and
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1 (ii) for more than 48 months if the

2 alien can demonstrate that any battery or

3 cruelty under clause (i) is ongoing, has led

4 to the issuance of an order of a judge or

5 an administrative law judge or a prior de6 termination of the Service, and that need

7 for such benefits has a substantial connec8 tion to such battery or cruelty.

9 (G) SSI DISABILITY EXCEPTION.—Para10 graph (1) shall not apply to an alien who has

11 not attained 18 years of age and is eligible by

12 reason of disability for supplemental security

13 income benefits under title XVI of the Social

14 Security Act.

15 (H) FOOD STAMP EXCEPTION FOR CHIL16 DREN.—Paragraph (1) shall not apply to the

17 eligibility of an alien who has not attained 18

18 years of age for the food stamp program under

19 paragraph (3)(B).

20 (3) SPECIFIED FEDERAL PROGRAM DEFINED.—

21 For purposes of this title, the term ‘‘specified Fed22 eral program’’ means any of the following:

23 (A) SSI.—The supplemental security in24 come program under title XVI of the Social Se25 curity Act.
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1 (B) FOOD STAMPS.—The food stamp pro2 gram as defined in section 3(h) of the Food

3 Stamp Act of 1977.

4 (b) LIMITED ELIGIBILITY FOR DESIGNATED FED5 ERAL PROGRAMS.—

6 (1) IN GENERAL.—Notwithstanding any other

7 provision of law and except as provided in section

8 403 and paragraph (2), a State is authorized to de9 termine the eligibility of an alien who is a qualified

10 alien (as defined in section 431) for any designated

11 Federal program (as defined in paragraph (3)).

12 (2) EXCEPTIONS.—Qualified aliens under this

13 paragraph shall be eligible for any designated Fed14 eral program.

15 (A) TIME-LIMITED EXCEPTION FOR REFU16 GEES AND ASYLEES.—

17 (i) An alien who is admitted to the

18 United States as a refugee under section

19 207 of the Immigration and Nationality

20 Act until 5 years after the date of an

21 alien’s entry into the United States.

22 (ii) An alien who is granted asylum

23 under section 208 of such Act until 5 years

24 after the date of such grant of asylum.
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1 (iii) An alien whose deportation is

2 being withheld under section 243(h) of

3 such Act until 5 years after such withhold4 ing.

5 (B) CERTAIN PERMANENT RESIDENT

6 ALIENS.—An alien who—

7 (i) is lawfully admitted to the United

8 States for permanent residence under the

9 Immigration and Nationality Act; and

10 (ii)(I) has worked 20 qualifying quar11 ters of coverage as defined under title II of

12 the Social Security Act or can be credited

13 with such qualifying quarters as provided

14 under section 435, and (II) did not receive

15 any Federal means-tested public benefit

16 (as defined in section 403(c)) during any

17 such quarter.

18 (C) VETERAN AND ACTIVE DUTY EXCEP19 TION.—An alien who is lawfully residing in any

20 State and is—

21 (i) a veteran (as defined in section

22 101 of title 38, United States Code) with

23 a discharge characterized as an honorable

24 discharge and not on account of alienage,
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1 (ii) on active duty (other than active

2 duty for training) in the Armed Forces of

3 the United States, or

4 (iii) the spouse or unmarried depend5 ent child of an individual described in

6 clause (i) or (ii).

7 (D) TRANSITION FOR THOSE CURRENTLY

8 RECEIVING BENEFITS.—An alien who on the

9 date of the enactment of this Act is lawfully re10 siding in any State and is receiving benefits

11 under such program on the date of the enact12 ment of this Act shall continue to be eligible to

13 receive such benefits until January 1, 1997.

14 (E) FICA EXCEPTION.—Paragraph (1)

15 shall not apply to an alien if there has been

16 paid with respect to the self-employment income

17 or employment of the alien, or of a parent or

18 spouse of the alien, taxes under chapter 2 or

19 chapter 21 of the Internal Revenue Code of

20 1986 in each of 20 different calendar quarters.

21 (F) TIME-LIMITED EXCEPTION FOR BAT22 TERED WOMEN AND CHILDREN.—Paragraph

23 (1) shall not apply—

24 (i) for up to 48 months if the alien

25 can demonstrate that (I) the alien has
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1 been battered or subject to extreme cruelty

2 in the United States by a spouse or parent,

3 or by a member of the spouse or parent’s

4 family residing in the same household as

5 the alien and the spouse or parent con6 sented or acquiesced to such battery or

7 cruelty, or (II) the alien’s child has been

8 battered or subject to extreme cruelty in

9 the United States by a spouse or parent of

10 the alien (without the active participation

11 of the alien in the battery or extreme cru12 elty), or by a member of the spouse or par13 ent’s family residing in the same household

14 as the alien when the spouse or parent

15 consented or acquiesced to and the alien

16 did not actively participate in such battery

17 or cruelty, and (III) the need for the public

18 benefits applied for has a substantial con19 nection to the battery or cruelty described

20 in subclause (I) or (II); and

21 (ii) for more than 48 months if the

22 alien can demonstrate that any battery or

23 cruelty under clause (i) is ongoing, has led

24 to the issuance of an order of a judge or

25 an administrative law judge or a prior de-
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1 termination of the Service, and that the

2 need for such benefits has a substantial

3 connection to such battery or cruelty.

4 (G) SSI DISABILITY EXCEPTION.—Para5 graph (1) shall not apply to an alien who has

6 not attained 18 years of age and is eligible by

7 reason of disability for supplemental security

8 income benefits under title XVI of the Social

9 Security Act.

10 (3) DESIGNATED FEDERAL PROGRAM DE11 FINED.—For purposes of this title, the term ‘‘des12 ignated Federal program’’ means any of the follow13 ing:

14 (A) TEMPORARY ASSISTANCE FOR NEEDY

15 FAMILIES.—The program of block grants to

16 States for temporary assistance for needy fami17 lies under part A of title IV of the Social Secu18 rity Act.

19 (B) SOCIAL SERVICES BLOCK GRANT.—

20 The program of block grants to States for so21 cial services under title XX of the Social Secu22 rity Act.
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1 SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

2 ALIENS FOR FEDERAL MEANS-TESTED PUB3 LIC BENEFIT.

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law and except as provided in subsection (b), an

6 alien who is a qualified alien (as defined in section 431)

7 and who enters the United States on or after the date

8 of the enactment of this Act is not eligible for any Federal

9 means-tested public benefit (as defined in subsection (c))

10 for a period of five years beginning on the date of the

11 alien’s entry into the United States with a status within

12 the meaning of the term ‘‘qualified alien’’.

13 (b) EXCEPTIONS.—The limitation under subsection

14 (a) shall not apply to the following aliens:

15 (1) EXCEPTION FOR REFUGEES AND

16 ASYLEES.—

17 (A) An alien who is admitted to the United

18 States as a refugee under section 207 of the

19 Immigration and Nationality Act.

20 (B) An alien who is granted asylum under

21 section 208 of such Act.

22 (C) An alien whose deportation is being

23 withheld under section 243(h) of such Act.

24 (2) VETERAN AND ACTIVE DUTY EXCEPTION.—

25 An alien who is lawfully residing in any State and

26 is—
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1 (A) a veteran (as defined in section 101 of

2 title 38, United States Code) with a discharge

3 characterized as an honorable discharge and not

4 on account of alienage,

5 (B) on active duty (other than active duty

6 for training) in the Armed Forces of the United

7 States, or

8 (C) the spouse or unmarried dependent

9 child of an individual described in subparagraph

10 (A) or (B).

11 (3) FICA EXCEPTION.—An alien if there has

12 been paid with respect to the self-employment in13 come or employment of the alien, or of a parent or

14 spouse of the alien, taxes under chapter 2 or chapter

15 21 of the Internal Revenue Code of 1986 in each of

16 20 different calendar quarters.

17 (4) EXCEPTION FOR BATTERED WOMEN AND

18 CHILDREN.—An alien—

19 (A) for up to 48 months if the alien can

20 demonstrate that (i) the alien has been battered

21 or subject to extreme cruelty in the United

22 States by a spouse or parent, or by a member

23 of the spouse or parent’s family residing in the

24 same household as the alien and the spouse or

25 parent consented or acquiesced to such battery
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1 or cruelty, or (ii) the alien’s child has been bat2 tered or subject to extreme cruelty in the Unit3 ed States by a spouse or parent of the alien

4 (without the active participation of the alien in

5 the battery or extreme cruelty), or by a member

6 of the spouse or parent’s family residing in the

7 same household as the alien when the spouse or

8 parent consented or acquiesced to and the alien

9 did not actively participate in such battery or

10 cruelty, and (iii) the need for the public benefits

11 applied for has a substantial connection to the

12 battery or cruelty described in clause (i) or (ii);

13 and

14 (B) for more than 48 months if the alien

15 can demonstrate that any battery or cruelty

16 under subparagraph (A) is ongoing, has led to

17 the issuance of an order of a judge or an ad18 ministrative law judge or a prior determination

19 of the Service, and that need for such benefits

20 has a substantial connection to such battery or

21 cruelty.

22 (5) SSI DISABILITY EXCEPTION.—An alien who

23 has not attained 18 years of age and is eligible by

24 reason of disability for supplemental security income

25 benefits under title XVI of the Social Security Act.
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1 (6) FOOD STAMP EXCEPTION FOR CHILDREN.—

2 An alien who has not attained 18 years of age only

3 for purposes of eligibility for the food stamp pro4 gram as defined in section 3(h) of the Food Stamp

5 Act of 1977.

6 (c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE7 FINED.—

8 (1) Except as provided in paragraph (2), for

9 purposes of this title, the term ‘‘Federal means-test10 ed public benefit’’ means a public benefit (including

11 cash, medical, housing, and food assistance and so12 cial services) of the Federal Government in which

13 the eligibility of an individual, household, or family

14 eligibility unit for benefits, or the amount of such

15 benefits, or both are determined on the basis of in16 come, resources, or financial need of the individual,

17 household, or unit.

18 (2) Such term does not include the following:

19 (A) Emergency medical services under title

20 XIX or XXI of the Social Security Act.

21 (B) Short-term, non-cash, in-kind emer22 gency disaster relief.

23 (C) Assistance or benefits under the Na24 tional School Lunch Act.
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1 (D) Assistance or benefits under the Child

2 Nutrition Act of 1966.

3 (E)(i) Public health assistance for immuni4 zations.

5 (ii) Public health assistance for testing and

6 treatment of a serious communicable disease if

7 the Secretary of Health and Human Services

8 determines that it is necessary to prevent the

9 spread of such disease.

10 (F) Payments for foster care and adoption

11 assistance under part B of title IV of the Social

12 Security Act for a child who would, in the ab13 sence of subsection (a), be eligible to have such

14 payments made on the child’s behalf under such

15 part, but only if the foster or adoptive parent

16 or parents of such child are not described under

17 subsection (a).

18 (G) Programs, services, or assistance (such

19 as soup kitchens, crisis counseling and interven20 tion, and short-term shelter) specified by the

21 Attorney General, in the Attorney General’s

22 sole and unreviewable discretion after consulta23 tion with appropriate Federal agencies and de24 partments, which (i) deliver in-kind services at

25 the community level, including through public
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1 or private nonprofit agencies; (ii) do not condi2 tion the provision of assistance, the amount of

3 assistance provided, or the cost of assistance

4 provided on the individual recipient’s income or

5 resources; and (iii) are necessary for the protec6 tion of life or safety.

7 (H) Programs of student assistance under

8 titles IV, V, IX, and X of the Higher Education

9 Act of 1965.

10 (I) Means-tested programs under the Ele11 mentary and Secondary Education Act of 1965.

12 (J) The program of medical assistance

13 under title XIX and title XXI of the Social Se14 curity Act.

15 SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

16 (a) NOTIFICATION.—Each Federal agency that ad17 ministers a program to which section 401, 402, or 403

18 applies shall, directly or through the States, post informa19 tion and provide general notification to the public and to

20 program recipients of the changes regarding eligibility for

21 any such program pursuant to this title.

22 (b) INFORMATION REPORTING UNDER TITLE IV OF

23 THE SOCIAL SECURITY ACT.—Part A of title IV of the

24 Social Security Act is amended by inserting the following

25 new section 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 of the Social Security Act shall, at least 4 times annu5 ally and upon request of the Immigration and Naturaliza6 tion Service, furnish the Immigration and Naturalization

7 Service with the name and address of, and other identify8 ing information on, any individual who the State knows

9 is unlawfully in the United States.’’.

10 (c) SSI.—Section 1631(e) of such Act (42 U.S.C.

11 1383(e)) is amended—

12 (1) by redesignating paragraphs (6) and (7) in13 serted 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

21 law, the Commissioner shall, at least 4 times annu22 ally and upon request of the Immigration and Natu23 ralization Service (hereafter in this paragraph re24 ferred to as the ‘Service’), furnish the Service with

25 the name and address of, and other identifying in26 formation on, any individual who the Commissioner
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1 knows is unlawfully in the United States, and shall

2 ensure that each agreement entered into under sec3 tion 1616(a) with a State provides that the State

4 shall furnish such information at such times with re5 spect to any individual who the State knows is un6 lawfully in the United States.’’.

7 (d) INFORMATION REPORTING FOR HOUSING PRO8 GRAMS.—Title I of the United States Housing Act of 1937

9 (42 U.S.C. 1437 et seq.), as amended by this Act, is fur10 ther amended by adding at the end the following new sec11 tion:

12 ‘‘SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCE13 MENT AND OTHER AGENCIES.

14 ‘‘Notwithstanding any other provision of law, the Sec15 retary shall, at least 4 times annually and upon request

16 of the Immigration and Naturalization Service (hereafter

17 in this section referred to as the ‘Service’), furnish the

18 Service with the name and address of, and other identify19 ing information on, any individual who the Secretary

20 knows is unlawfully in the United States, and shall ensure

21 that each contract for assistance entered into under sec22 tion 6 or 8 of this Act with a public housing agency pro23 vides that the public housing agency shall furnish such

24 information at such times with respect to any individual
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1 who the public housing agency knows is unlawfully in the

2 United States.’’.

3 Subtitle B—Eligibility for State

4 and Local Public Benefits Pro5 grams

6 SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR

7 NONIMMIGRANTS INELIGIBLE FOR STATE

8 AND LOCAL PUBLIC BENEFITS.

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law and except as provided in subsections (b) and

11 (d), an alien who is not described under a paragraph of

12 this subsection is not eligible for any State or local public

13 benefit (as defined in subsection (c)):

14 (1) A qualified alien (as defined in section 431).

15 (2) A nonimmigrant under the Immigration and

16 Nationality Act.

17 (3) An alien who is paroled into the United

18 States under section 212(d)(5) of such Act for less

19 than one year.

20 (4) An alien—

21 (A) for up to 48 months if the alien can

22 demonstrate that (i) the alien has been battered

23 or subject to extreme cruelty in the United

24 States by a spouse or parent, or by a member

25 of the spouse or parent’s family residing in the
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1 same household as the alien and the spouse or

2 parent consented or acquiesced to such battery

3 or cruelty, or (ii) the alien’s child has been bat4 tered or subject to extreme cruelty in the Unit5 ed States by a spouse or parent of the alien

6 (without the active participation of the alien in

7 the battery or extreme cruelty), or by a member

8 of the spouse or parent’s family residing in the

9 same household as the alien when the spouse or

10 parent consented or acquiesced to and the alien

11 did not actively participate in such battery or

12 cruelty, and (iii) the need for the public benefits

13 applied for has a substantial connection to the

14 battery or cruelty described in clause (i) or (ii),

15 and

16 (B) for more than 48 months if the alien

17 can demonstrate that any battery or cruelty

18 under subparagraph (A) is ongoing, has led to

19 the issuance of an order of a judge or an ad20 ministrative law judge or a prior determination

21 of the Service, and that the need for such bene22 fits has a substantial connection to such battery

23 or cruelty.

24 (b) EXCEPTIONS.—Subsection (a) shall not apply

25 with respect to the following State or local public benefits:
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1 (1) Emergency medical services under title XIX

2 or XXI of the Social Security Act.

3 (2) Short-term, noncash, in-kind emergency dis4 aster relief.

5 (3)(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 (4) Programs, services, or assistance (such as

13 soup kitchens, crisis counseling and intervention,

14 and short-term shelter) specified by the Attorney

15 General, in the Attorney General’s sole and

16 unreviewable discretion after consultation with ap17 propriate Federal agencies and departments, which

18 (A) deliver in-kind services at the community level,

19 including through public or private nonprofit agen20 cies; (B) do not condition the provision of assistance,

21 the amount of assistance provided, or the cost of as22 sistance provided on the individual recipient’s in23 come or resources; and (C) are necessary for the

24 protection of life or safety.

25 (c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.—
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1 (1) Except as provided in paragraph (2), for

2 purposes of this subtitle the term ‘‘State or local

3 public benefit’’ means—

4 (A) any grant, contract, loan, professional

5 license, or commercial license provided by an

6 agency of a State or local government or by ap7 propriated funds of a State or local govern8 ment; and

9 (B) any retirement, welfare, health, dis10 ability, public or assisted housing, post-second11 ary education, food assistance, unemployment

12 benefit, or any other similar benefit for which

13 payments or assistance are provided to an indi14 vidual, household, or family eligibility unit by

15 an agency of a State or local government or by

16 appropriated funds of a State or local govern17 ment.

18 (2) Such term shall not apply—

19 (A) to any contract, professional license, or

20 commercial license for a nonimmigrant whose

21 visa for entry is related to such employment in

22 the United States; or

23 (B) with respect to benefits for an alien

24 who as a work authorized nonimmigrant or as

25 an alien lawfully admitted for permanent resi-
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1 dence under the Immigration and Nationality

2 Act qualified for such benefits and for whom

3 the United States under reciprocal treaty agree4 ments is required to pay benefits, as determined

5 by the Secretary of State, after consultation

6 with the Attorney General.

7 (d) STATE AUTHORITY TO PROVIDE FOR ELIGI8 BILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL PUB9 LIC BENEFITS.—A State may provide that an alien who

10 is not lawfully present in the United States is eligible for

11 any State or local public benefit for which such alien would

12 otherwise be ineligible under subsection (a) only through

13 the enactment of a State law after the date of the enact14 ment of this Act which affirmatively provides for such eli15 gibility.

16 SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF

17 QUALIFIED ALIENS FOR STATE PUBLIC BENE18 FITS.

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of law and except as provided in subsection (b), a

21 State is authorized to determine the eligibility for any

22 State public benefits (as defined in subsection (c) of an

23 alien who is a qualified alien (as defined in section 431),

24 a nonimmigrant under the Immigration and Nationality
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1 Act, or an alien who is paroled into the United States

2 under section 212(d)(5) of such Act for less than one year.

3 (b) EXCEPTIONS.—Qualified aliens under this sub4 section shall be eligible for any State public benefits.

5 (1) TIME-LIMITED EXCEPTION FOR REFUGEES

6 AND ASYLEES.—

7 (A) An alien who is admitted to the United

8 States as a refugee under section 207 of the

9 Immigration and Nationality Act until 5 years

10 after the date of an alien’s entry into the Unit11 ed States.

12 (B) An alien who is granted asylum under

13 section 208 of such Act until 5 years after the

14 date of such grant of asylum.

15 (C) An alien whose deportation is being

16 withheld under section 243(h) of such Act until

17 5 years after such withholding.

18 (2) CERTAIN PERMANENT RESIDENT ALIENS.—

19 An alien who—

20 (A) is lawfully admitted to the United

21 States for permanent residence under the Im22 migration and Nationality Act; and

23 (B)(i) has worked 20 qualifying quarters

24 of coverage as defined under title II of the So25 cial Security Act or can be credited with such
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1 qualifying quarters as provided under section

2 435, and (ii) did not receive any Federal

3 means-tested public benefit (as defined in sec4 tion 403(c)) during any such quarter.

5 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

6 An alien who is lawfully residing in any State and

7 is—

8 (A) a veteran (as defined in section 101 of

9 title 38, United States Code) with a discharge

10 characterized as an honorable discharge and not

11 on account of alienage,

12 (B) on active duty (other than active duty

13 for training) in the Armed Forces of the United

14 States, or

15 (C) the spouse or unmarried dependent

16 child of an individual described in subparagraph

17 (A) or (B).

18 (4) TRANSITION FOR THOSE CURRENTLY RE19 CEIVING BENEFITS.—An alien who on the date of

20 the enactment of this Act is lawfully residing in any

21 State and is receiving benefits on the date of the en22 actment of this Act shall continue to be eligible to

23 receive such benefits until January 1, 1997.

24 (5) EXCEPTION FOR BATTERED WOMEN AND

25 CHILDREN.—An alien—
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1 (A) for up to 48 months if the alien can

2 demonstrate that (i) the alien has been battered

3 or subject to extreme cruelty in the United

4 States by a spouse or parent, or by a member

5 of the spouse or parent’s family residing in the

6 same household as the alien and the spouse or

7 parent consented or acquiesced to such battery

8 or cruelty, or (ii) the alien’s child has been bat9 tered or subject to extreme cruelty in the Unit10 ed States by a spouse or parent of the alien

11 (without the active participation of the alien in

12 the battery or extreme cruelty), or by a member

13 of the spouse or parent’s family residing in the

14 same household as the alien when the spouse or

15 parent consented or acquiesced to and the alien

16 did not actively participate in such battery or

17 cruelty, and (iii) the need for the public benefits

18 applied for has a substantial connection to the

19 battery or cruelty described in clause (i) or (ii);

20 and

21 (B) for more than 48 months if the alien

22 can demonstrate that any battery or cruelty

23 under subparagraph (A) is ongoing, has led to

24 the issuance of an order of a judge or an ad25 ministrative law judge or a prior determination
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1 of the Service, and that the need for such bene2 fits has a substantial connection to such battery

3 or cruelty.

4 (c) STATE PUBLIC BENEFITS DEFINED.—The term

5 ‘‘State public benefits’’ means any means-tested public

6 benefit of a State or political subdivision of a State under

7 which the State or political subdivision specifies the stand8 ards for eligibility, and does not include any Federal public

9 benefit.

10 Subtitle C—Attribution of Income

11 and Affidavits of Support

12 SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR’S INCOME

13 AND RESOURCES TO ALIEN FOR PURPOSES

14 OF MEDICAID ELIGIBILITY.

15 (a) IN GENERAL.—Notwithstanding any other provi16 sion of law, in determining the eligibility and the amount

17 of benefits of an alien (other than an alien who has not

18 attained 18 years of age or an alien who is pregnant) for

19 the program of medical assistance under title XIX and

20 title XXI of the Social Security Act, the income and re21 sources of the alien shall be deemed to include the follow22 ing:

23 (1) The income and resources of any person

24 who executed an affidavit of support pursuant to

25 section 213A of the Immigration and Nationality
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1 Act (as added by section 423) on behalf of such

2 alien.

3 (2) The income and resources of the spouse (if

4 any) of the person.

5 (b) APPLICATION.—Subsection (a) shall apply with

6 respect to an alien (other than an alien who has not at7 tained 18 years of age or an alien who is pregnant) until

8 such time as the alien—

9 (1) achieves United States citizenship through

10 naturalization pursuant to chapter 2 of title III of

11 the Immigration and Nationality Act; or

12 (2)(A) has worked 20 qualifying quarters of

13 coverage as defined under title II of the Social Secu14 rity Act or can be credited with such qualifying

15 quarters as provided under section 435, and (B) did

16 not receive any Federal means-tested public benefit

17 (as defined in section 403(c)) during any such quar18 ter.

19 (c) REVIEW OF INCOME AND RESOURCES OF ALIEN

20 UPON REAPPLICATION.—Whenever an alien (other than

21 an alien who has not attained 18 years of age or an alien

22 who is pregnant) is required to reapply for benefits under

23 any Federal means-tested public benefits program, the ap24 plicable agency shall review the income and resources at25 tributed to the alien under subsection (a).
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1 SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR AT2 TRIBUTION OF SPONSOR’S 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 412(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 423) 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, noncash, in-kind emergency dis23 aster 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)(A) Public health assistance for immuniza4 tions.

5 (B) Public health assistance for testing and

6 treatment of a serious communicable disease if the

7 appropriate chief State health official determines

8 that it is necessary to prevent the spread of such

9 disease.

10 (6) Payments for foster care and adoption as11 sistance.

12 (7) Programs, services, or assistance (such as

13 soup kitchens, crisis counseling and intervention,

14 and short-term shelter) specified by the Attorney

15 General of a State, after consultation with appro16 priate agencies and departments, which (A) deliver

17 in-kind services at the community level, including

18 through public or private nonprofit agencies; (B) do

19 not condition the provision of assistance, the amount

20 of assistance provided, or the cost of assistance pro21 vided on the individual recipient’s income or re22 sources; and (C) are necessary for the protection of

23 life or safety.
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1 SEC. 423. 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 sections 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) has attained the age of 18 years;

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 not be 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 or XXI of the Social Security Act.

14 (2) Short-term, noncash, in-kind emergency dis15 aster 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)(A) Public health assistance for immuniza21 tions.

22 (B) Public health assistance for testing and

23 treatment of a serious communicable disease if the

24 Secretary of Health and Human Services determines
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1 that it is necessary to prevent the spread of such

2 disease.

3 (6) Payments for foster care and adoption as4 sistance under part B of title IV of the Social Secu5 rity Act for a child, but only if the foster or adoptive

6 parent or parents of such child are not otherwise

7 ineligible pursuant to section 403 of this Act.

8 (7) Programs, services, or assistance (such as

9 soup kitchens, crisis counseling and intervention,

10 and short-term shelter) specified by the Attorney

11 General, in the Attorney General’s sole and

12 unreviewable discretion after consultation with ap13 propriate Federal agencies and departments, which

14 (A) deliver in-kind services at the community level,

15 including through public or private nonprofit agen16 cies; (B) do not condition the provision of assistance,

17 the amount of assistance provided, or the cost of as18 sistance provided on the individual recipient’s in19 come or resources; and (C) are necessary for the

20 protection of life or safety.

21 (8) Programs of student assistance under titles

22 IV, V, IX, and X of the Higher Education Act of

23 1965.
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1 SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

2 Section 484(b) of the Higher Education Act of 1965

3 (20 U.S.C. 1091(b)) is amended by adding at the end the

4 following new paragraph:

5 ‘‘(6) Notwithstanding sections 427(a)(2)(A),

6 428B(a), 428C(b)(4)(A), and 464(c)(1)(E), or any

7 other provision of this title, a student who is an

8 alien lawfully admitted for permanent residence

9 under the Immigration and Nationality Act shall not

10 be eligible for a loan under this title unless the loan

11 is endorsed and cosigned by the alien’s sponsor

12 under section 213A of the Immigration and Nation13 ality Act or by another creditworthy individual who

14 is a United States citizen.’’.

15 Subtitle D—General Provisions

16 SEC. 431. DEFINITIONS.

17 (a) IN GENERAL.—Except as otherwise provided in

18 this title, the terms used in this title have the same mean19 ing given such terms in section 101(a) of the Immigration

20 and Nationality Act.

21 (b) QUALIFIED ALIEN.—For purposes of this title,

22 the term ‘‘qualified alien’’ means an alien who, at the time

23 the alien applies for, receives, or attempts to receive a

24 Federal public benefit, is—
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1 (1) an alien who is lawfully admitted for perma2 nent residence under the Immigration and National3 ity Act,

4 (2) an alien who is granted asylum under sec5 tion 208 of such Act,

6 (3) a refugee who is admitted to the United

7 States under section 207 of such Act,

8 (4) an alien who is paroled into the United

9 States under section 212(d)(5) of such Act for a pe10 riod of at least 1 year,

11 (5) an alien whose deportation is being withheld

12 under section 243(h) of such Act, or

13 (6) an alien who is granted conditional entry

14 pursuant to section 203(a)(7) of such Act as in ef15 fect prior to April 1, 1980.

16 SEC. 432. VERIFICATION OF ELIGIBILITY FOR FEDERAL

17 PUBLIC BENEFITS.

18 (a) IN GENERAL.—Not later than 18 months after

19 the date of the enactment of this Act, the Attorney Gen20 eral of the United States, after consultation with the Sec21 retary of Health and Human Services, shall promulgate

22 regulations requiring verification that a person applying

23 for a Federal public benefit (as defined in section 401(c)),

24 to which the limitation under section 401 applies, is a

25 qualified alien and is eligible to receive such benefit. Such
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1 regulations shall, to the extent feasible, require that infor2 mation requested and exchanged be similar in form and

3 manner to information requested and exchanged under

4 section 1137 of the Social Security Act.

5 (b) STATE COMPLIANCE.—Not later than 24 months

6 after the date the regulations described in subsection (a)

7 are adopted, a State that administers a program that pro8 vides a Federal public benefit shall have in effect a ver9 ification system that complies with the regulations.

10 (c) AUTHORIZATION OF APPROPRIATIONS.—There

11 are authorized to be appropriated such sums as may be

12 necessary to carry out the purpose of this section.

13 SEC. 433. STATUTORY CONSTRUCTION.

14 (a) LIMITATION.—

15 (1) Nothing in this title may be construed as an

16 entitlement or a determination of an individual’s eli17 gibility or fulfillment of the requisite requirements

18 for any Federal, State, or local governmental pro19 gram, assistance, or benefits. For purposes of this

20 title, eligibility relates only to the general issue of

21 eligibility or ineligibility on the basis of alienage.

22 (2) Nothing in this title may be construed as

23 addressing alien eligibility for a basic public edu24 cation as determined by the Supreme Court of the
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1 United States under Plyler v. Doe (457 U.S.

2 202)(1982).

3 (b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—

4 This title does not apply to any Federal, State, or local

5 governmental program, assistance, or benefits provided to

6 an alien under any program of foreign assistance as deter7 mined by the Secretary of State in consultation with the

8 Attorney General.

9 (c) SEVERABILITY.—If any provision of this title or

10 the application of such provision to any person or cir11 cumstance is held to be unconstitutional, the remainder

12 of this title and the application of the provisions of such

13 to any person or circumstance shall not be affected there14 by.

15 SEC. 434. COMMUNICATION BETWEEN STATE AND LOCAL

16 GOVERNMENT AGENCIES AND THE IMMIGRA17 TION AND NATURALIZATION SERVICE.

18 Notwithstanding any other provision of Federal,

19 State, or local law, no State or local government entity

20 may be prohibited, or in any way restricted, from sending

21 to or receiving from the Immigration and Naturalization

22 Service information regarding the immigration status,

23 lawful or unlawful, of an alien in the United States.
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1 SEC. 435. QUALIFYING QUARTERS.

2 For purposes of this title, in determining the number

3 of qualifying quarters of coverage under title II of the So4 cial Security Act an alien shall be credited with—

5 (1) all of the qualifying quarters of coverage as

6 defined under title II of the Social Security Act

7 worked by a parent of such alien while the alien was

8 under age 18 if the parent did not receive any Fed9 eral means-tested public benefit (as defined in sec10 tion 403(c)) during any such quarter, and

11 (2) all of the qualifying quarters worked by a

12 spouse of such alien during their marriage if the

13 spouse did not receive any Federal means-tested

14 public benefit (as defined in section 403(c)) during

15 any such quarter and the alien remains married to

16 such spouse or such spouse is deceased.

17 SEC. 436. TITLE INAPPLICABLE TO PROGRAMS SPECIFIED

18 BY ATTORNEY GENERAL.

19 Notwithstanding any other provision of this title, this

20 title or any provision of this title shall not apply to pro21 grams, services, or assistance (such as soup kitchens, cri22 sis counseling and intervention, and short term shelter)

23 specified by the Attorney General, in the Attorney Gen24 eral’s sole and unreviewable discretion after consultation

25 with appropriate Federal agencies and departments, which

26 (1) deliver services at the community level, including
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1 through public or private nonprofit agencies; (2) do not

2 condition the provision of assistance, the amount of assist3 ance provided, or the cost of assistance provided on the

4 individual recipient’s income or resources; and (3) are nec5 essary for the protection of life, safety or the public health.

6 SEC. 437. TITLE INAPPLICABLE TO PROGRAMS OF NON7 PROFIT CHARITABLE ORGANIZATIONS.

8 Notwithstanding any other provision of this title, this

9 title or any provision of this title shall not apply to pro10 grams, services, or assistance of a nonprofit charitable or11 ganization, regardless of whether such programs, services,

12 or assistance are funded, in whole or in part, by the Fed13 eral Government or the government of any State or politi14 cal subdivision of a State.

15 Subtitle E—Conforming

16 Amendments

17 SEC. 441. CONFORMING AMENDMENTS RELATING TO AS18 SISTED HOUSING.

19 (a) LIMITATIONS ON ASSISTANCE.—Section 214 of

20 the Housing and Community Development Act of 1980

21 (42 U.S.C. 1436a) is amended—

22 (1) by striking ‘‘Secretary of Housing and

23 Urban Development’’ each place it appears and in24 serting ‘‘applicable Secretary’’;
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1 (2) in subsection (b), by inserting after ‘‘Na2 tional Housing Act,’’ the following: ‘‘the direct loan

3 program under section 502 of the Housing Act of

4 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or

5 542 of such Act, subtitle A of title III of the Cran6 ston-Gonzalez National Affordable Housing Act,’’;

7 (3) in paragraphs (2) through (6) of subsection

8 (d), by striking ‘‘Secretary’’ each place it appears

9 and inserting ‘‘applicable Secretary’’;

10 (4) in subsection (d), in the matter following

11 paragraph (6), by striking ‘‘the term ‘Secretary’ ’’

12 and inserting ‘‘the term ‘applicable Secretary’ ’’; and

13 (5) by adding at the end the following new sub14 section:

15 ‘‘(h) For purposes of this section, the term ‘applicable

16 Secretary’ means—

17 ‘‘(1) the Secretary of Housing and Urban De18 velopment, with respect to financial assistance ad19 ministered by such Secretary and financial assist20 ance under subtitle A of title III of the Cranston21 Gonzalez National Affordable Housing Act; and

22 ‘‘(2) the Secretary of Agriculture, with respect

23 to financial assistance administered by such Sec24 retary.’’.
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1 (b) CONFORMING AMENDMENTS.—Section 501(h) of

2 the Housing Act of 1949 (42 U.S.C. 1471(h)) is amend3 ed—

4 (1) by striking ‘‘(1)’’;

5 (2) by striking ‘‘by the Secretary of Housing

6 and Urban Development’’; and

7 (3) by striking paragraph (2).

8 TITLE V—REDUCTIONS IN FED9 ERAL GOVERNMENT POSI10 TIONS

11 SEC. 501. REDUCTIONS.

12 (a) DEFINITIONS.—As used in this section:

13 (1) APPROPRIATE EFFECTIVE DATE.—The term

14 ‘‘appropriate effective date’’, used with respect to a

15 Department referred to in this section, means the

16 date on which all provisions of this Act (other than

17 title II) that the Department is required to carry

18 out, and amendments and repeals made by such Act

19 to provisions of Federal law that the Department is

20 required to carry out, are effective.

21 (2) COVERED ACTIVITY.—The term ‘‘covered

22 activity’’, used with respect to a Department re23 ferred to in this section, means an activity that the

24 Department is required to carry out under—
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1 (A) a provision of this Act (other than title

2 II); or

3 (B) a provision of Federal law that is

4 amended or repealed by this Act (other than

5 title II).

6 (b) REPORTS.—

7 (1) CONTENTS.—Not later than December 31,

8 1995, each Secretary referred to in paragraph (2)

9 shall prepare and submit to the relevant committees

10 described in paragraph (3) a report containing—

11 (A) the determinations described in sub12 section (c);

13 (B) appropriate documentation in support

14 of such determinations; and

15 (C) a description of the methodology used

16 in making such determinations.

17 (2) SECRETARY.—The Secretaries referred to in

18 this paragraph are—

19 (A) the Secretary of Agriculture;

20 (B) the Secretary of Education;

21 (C) the Secretary of Labor;

22 (D) the Secretary of Housing and Urban

23 Development; and

24 (E) the Secretary of Health and Human

25 Services.
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1 (3) RELEVANT COMMITTEES.—The relevant

2 Committees described in this paragraph are the fol3 lowing:

4 (A) With respect to each Secretary de5 scribed in paragraph (2), the Committee on

6 Government Reform and Oversight of the

7 House of Representatives and the Committee

8 on Governmental Affairs of the Senate.

9 (B) With respect to the Secretary of Agri10 culture, the Committee on Agriculture and the

11 Committee on Economic and Educational Op12 portunities of the House of Representatives and

13 the Committee on Agriculture, Nutrition, and

14 Forestry of the Senate.

15 (C) With respect to the Secretary of Edu16 cation, the Committee on Economic and Edu17 cational Opportunities of the House of Rep18 resentatives and the Committee on Labor and

19 Human Resources of the Senate.

20 (D) With respect to the Secretary of

21 Labor, the Committee on Economic and Edu22 cational Opportunities of the House of Rep23 resentatives and the Committee on Labor and

24 Human Resources of the Senate.
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1 (E) With respect to the Secretary of Hous2 ing and Urban Development, the Committee on

3 Banking and Financial Services of the House of

4 Representatives and the Committee on Bank5 ing, Housing, and Urban Affairs of the Senate.

6 (F) With respect to the Secretary of

7 Health and Human Services, the Committee on

8 Economic and Educational Opportunities of the

9 House of Representatives, the Committee on

10 Labor and Human Resources of the Senate, the

11 Committee on Ways and Means of the House of

12 Representatives, and the Committee on Finance

13 of the Senate.

14 (4) REPORT ON CHANGES.—Not later than De15 cember 31, 1996, and each December 31 thereafter,

16 each Secretary referred to in paragraph (2) shall

17 prepare and submit to the relevant Committees de18 scribed in paragraph (3), a report concerning any

19 changes with respect to the determinations made

20 under subsection (c) for the year in which the report

21 is being submitted.

22 (c) DETERMINATIONS.—Not later than October 1,

23 1996, each Secretary referred to in subsection (b)(2) shall

24 determine—
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1 (1) the number of full-time equivalent positions

2 required by the Department headed by such Sec3 retary to carry out the covered activities of the De4 partment, as of the day before the date of enactment

5 of this Act;

6 (2) the number of such positions required by

7 the Department to carry out the activities, as of the

8 appropriate effective date for the Department; and

9 (3) the difference obtained by subtracting the

10 number referred to in paragraph (2) from the num11 ber referred to in paragraph (1).

12 (d) ACTIONS.—Each Secretary referred to in sub13 section (b)(2) shall take such actions as may be necessary,

14 including reduction in force actions, consistent with sec15 tions 3502 and 3595 of title 5, United States Code, to

16 reduce the number of positions of personnel of the Depart17 ment—

18 (1) not later than 30 days after the appropriate

19 effective date for the Department involved, by at

20 least 50 percent of the difference referred to in sub21 section (c)(3); and

22 (2) not later than 13 months after such appro23 priate effective date, by at least the remainder of

24 such difference (after the application of paragraph

25 (1)).
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1 (e) CONSISTENCY.—

2 (1) EDUCATION.—The Secretary of Education

3 shall carry out this section in a manner that enables

4 the Secretary to meet the requirements of this sec5 tion.

6 (2) LABOR.—The Secretary of Labor shall

7 carry out this section in a manner that enables the

8 Secretary to meet the requirements of this section.

9 (3) HEALTH AND HUMAN SERVICES.—The Sec10 retary of Health and Human Services shall carry out

11 this section in a manner that enables the Secretary

12 to meet the requirements of this section and sections

13 502 and 503.

14 (f) CALCULATION.—In determining, under subsection

15 (c), the number of full-time equivalent positions required

16 by a Department to carry out a covered activity, a Sec17 retary referred to in subsection (b)(2) shall include the

18 number of such positions occupied by personnel carrying

19 out program functions or other functions (including budg20 etary, legislative, administrative, planning, evaluation, and

21 legal functions) related to the activity.

22 (g) GENERAL ACCOUNTING OFFICE REPORT.—Not

23 later than July 1, 1996, the Comptroller General of the

24 United States shall prepare and submit to the committees

25 described in subsection (b)(3), a report concerning the de-
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1 terminations made by each Secretary under subsection (c).

2 Such report shall contain an analysis of the determina3 tions made by each Secretary under subsection (c) and

4 a determination as to whether further reductions in full5 time equivalent positions are appropriate.

6 SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

8 Human Services shall reduce the Federal workforce within

9 the Department of Health and Human Services by an

10 amount equal to the sum of—

11 (1) 75 percent of the full-time equivalent posi12 tions at such Department that relate to any direct

13 spending program, or any program funded through

14 discretionary spending, that has been converted into

15 a block grant program under this Act and the

16 amendments made by this Act; and

17 (2) an amount equal to 75 percent of that por18 tion of the total full-time equivalent departmental

19 management positions at such Department that

20 bears the same relationship to the amount appro21 priated for the programs referred to in paragraph

22 (1) as such amount relates to the total amount ap23 propriated for use by such Department.

24 (b) REDUCTIONS IN THE DEPARTMENT OF HEALTH

25 AND HUMAN SERVICES.—Notwithstanding any other pro-
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1 vision of this Act, the Secretary of Health and Human

2 Services shall take such actions as may be necessary, in3 cluding reductions in force actions, consistent with sec4 tions 3502 and 3595 of title 5, United States Code, to

5 reduce the full-time equivalent positions within the De6 partment of Health and Human Services—

7 (1) by 245 full-time equivalent positions related

8 to the program converted into a block grant under

9 the amendment made by section 103; and

10 (2) by 60 full-time equivalent managerial posi11 tions in the Department.

12 SEC. 503. REDUCING PERSONNEL IN WASHINGTON, D.C.

13 AREA.

14 In making reductions in full-time equivalent posi15 tions, the Secretary of Health and Human Services is en16 couraged to reduce personnel in the Washington, D.C.,

17 area office (agency headquarters) before reducing field

18 personnel.

19 TITLE VI—REFORM OF PUBLIC

20 HOUSING

21 SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE

22 AND PUBLIC ASSISTANCE PROGRAMS.

23 Title I of the United States Housing Act of 1937 (42

24 U.S.C. 1437 et seq.) is amended by adding at the end

25 the following new section:
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1 ‘‘SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE

2 AND PUBLIC ASSISTANCE PROGRAMS.

3 ‘‘(a) IN GENERAL.—If the benefits of a family are

4 reduced under a Federal, State, or local law relating to

5 welfare or a public assistance program for the failure of

6 any member of the family to perform an action required

7 under the law or program, the family may not, for the

8 duration of the reduction, receive any increased assistance

9 under this Act as the result of a decrease in the income

10 of the family to the extent that the decrease in income

11 is the result of the benefits reduction.

12 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply in

13 any case in which the benefits of a family are reduced be14 cause the welfare or public assistance program to which

15 the Federal, State, or local law relates limits the period

16 during which benefits may be provided under the pro17 gram.’’.

18 SEC. 602. FRAUD UNDER MEANS-TESTED WELFARE AND

19 PUBLIC ASSISTANCE PROGRAMS.

20 (a) IN GENERAL.—If an individual’s benefits under

21 a Federal, State, or local law relating to a means-tested

22 welfare or a public assistance program are reduced be23 cause of an act of fraud by the individual under the law

24 or program, the individual may not, for the duration of

25 the reduction, receive an increased benefit under any other

26 means-tested welfare or public assistance program for
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1 which Federal funds are appropriated as a result of a de2 crease in the income of the individual (determined under

3 the applicable program) attributable to such reduction.

4 (b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS

5 FOR WHICH FEDERAL FUNDS ARE APPROPRIATED.—For

6 purposes of subsection (a), the term ‘‘means-tested welfare

7 or public assistance program for which Federal funds are

8 appropriated’’ includes the food stamp program under the

9 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any

10 program of public or assisted housing under title I of the

11 United States Housing Act of 1937 (42 U.S.C. 1437 et

12 seq.), and State programs funded under part A of title

13 IV of the Social Security Act (42 U.S.C. 601 et seq.).

14 SEC. 603. ANNUAL ADJUSTMENT FACTORS FOR OPERATING

15 COSTS ONLY; RESTRAINT ON RENT IN16 CREASES.

17 (a) ANNUAL ADJUSTMENT FACTORS FOR OPERATING

18 COSTS ONLY.—Section 8(c)(2)(A) of the United States

19 Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is

20 amended—

21 (1) by striking ‘‘(2)(A)’’ and inserting

22 ‘‘(2)(A)(i)’’;

23 (2) by striking the second sentence and all that

24 follows through the end of the subparagraph; and
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1 (3) by adding at the end the following new

2 clause:

3 ‘‘(ii) Each assistance contract under this section shall

4 provide that—

5 ‘‘(I) if the maximum monthly rent for a unit in

6 a new construction or substantial rehabilitation

7 project to be adjusted using an annual adjustment

8 factor exceeds 100 percent of the fair market rent

9 for an existing dwelling unit in the market area, the

10 Secretary shall adjust the rent using an operating

11 costs factor that increases the rent to reflect in12 creases in operating costs in the market area; and

13 ‘‘(II) if the owner of a unit in a project de14 scribed in subclause (I) demonstrates that the ad15 justed rent determined under subclause (I) would

16 not exceed the rent for an unassisted unit of similar

17 quality, type, and age in the same market area, as

18 determined by the Secretary, the Secretary shall use

19 the otherwise applicable annual adjustment factor.’’.

20 (b) RESTRAINT ON SECTION 8 RENT INCREASES.—

21 Section 8(c)(2)(A) of the United States Housing Act of

22 1937 (42 U.S.C. 1437f(c)(2)(A)), as amended by sub23 section (a), is amended by adding at the end the following

24 new clause:
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1 ‘‘(iii)(I) Subject to subclause (II), with respect to any

2 unit assisted under this section that is occupied by the

3 same family at the time of the most recent annual rental

4 adjustment, if the assistance contract provides for the ad5 justment of the maximum monthly rent by applying an

6 annual adjustment factor, and if the rent for the unit is

7 otherwise eligible for an adjustment based on the full

8 amount of the annual adjustment factor, 0.01 shall be

9 subtracted from the amount of the annual adjustment fac10 tor, except that the annual adjustment factor shall not be

11 reduced to less than 1.0.

12 ‘‘(II) With respect to any unit described in subclause

13 (I) that is assisted under the certificate program, the ad14 justed rent shall not exceed the rent for a comparable un15 assisted unit of similar quality, type, and age in the mar16 ket area in which the unit is located.’’.

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

18 this section shall become effective on October 1, 1996.

19 SEC. 604. EFFECTIVE DATE.

20 This title and the amendment made by this title shall

21 become effective on the date of enactment of this Act.
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1 TITLE VII—CHILD CARE

2 SEC. 701. SHORT TITLE AND REFERENCES.

3 (a) SHORT TITLE.—This title may be cited as the

4 ‘‘Child Care and Development Block Grant Amendments

5 of 1995’’.

6 (b) REFERENCES.—Except as otherwise expressly

7 provided, whenever in this title an amendment or repeal

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

9 a section or other provision, the reference shall be consid10 ered to be made to a section or other provision of the Child

11 Care and Development Block Grant Act of 1990 (42

12 U.S.C. 9858 et seq.).

13 SEC. 702. GOALS.

14 (a) GOALS.—Section 658A (42 U.S.C. 9801 note) is

15 amended—

16 (1) in the section heading by inserting ‘‘AND

17 GOALS’’ after ‘‘TITLE’’;

18 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

19 ‘‘This’’; and

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

21 ‘‘(b) GOALS.—The goals of this subchapter are—

22 ‘‘(1) to allow each State maximum flexibility in

23 developing child care programs and policies that best

24 suit the needs of children and parents within such

25 State;
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1 ‘‘(2) to promote parental choice to empower

2 working parents to make their own decisions on the

3 child care that best suits their family’s needs;

4 ‘‘(3) to encourage States to provide consumer

5 education information to help parents make in6 formed choices about child care;

7 ‘‘(4) to assist States to provide child care to

8 parents trying to achieve independence from public

9 assistance; and

10 ‘‘(5) to assist States in implementing the

11 health, safety, licensing, and registration standards

12 established in State regulations.’’.

13 SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND EN14 TITLEMENT AUTHORITY.

15 (a) IN GENERAL.—Section 658B (42 U.S.C. 9858)

16 is amended to read as follows:

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

18 ‘‘There is authorized to be appropriated to carry out

19 this subchapter $1,000,000,000 for each of the fiscal

20 years 1996 through 2002.’’.

21 (b) SOCIAL SECURITY ACT.—Part A of title IV of

22 the Social Security Act (as amended by section 103 of this

23 Act) is amended by redesignating section 417 as section

24 418 and inserting after section 416 the following:
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1 ‘‘SEC. 417. FUNDING FOR CHILD CARE.

2 ‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—

3 ‘‘(1) GENERAL ENTITLEMENT.—Subject to the

4 amount appropriated under paragraph (3), each

5 State shall, for the purpose of providing child care

6 assistance, be entitled to payments under a grant

7 under this subsection for a fiscal year in an amount

8 equal to the greatest of—

9 ‘‘(A) the sum of—

10 ‘‘(i) the total amount required to be

11 paid to the State under former section 403

12 for fiscal year 1994 with respect to

13 amounts expended for child care under sec14 tion 402(g) of this Act (as such section

15 was in effect before October 1, 1995); and

16 ‘‘(ii) such total amount with respect

17 to amounts expended for child care under

18 section 403(i) of this Act (as so in effect);

19 or

20 ‘‘(B) the sum described in subparagraph

21 (A) for fiscal year 1995; or

22 ‘‘(C) the average of the total amounts re23 quired to be paid to the State for fiscal years

24 1992 through 1994 under the sections referred

25 to in subparagraph (A).

26 ‘‘(2) REMAINDER.—
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1 ‘‘(A) GRANTS.—The Secretary shall use

2 any amounts appropriated for a fiscal year

3 under paragraph (3), and remaining after the

4 reservation described in paragraph (5) and

5 after grants are awarded under paragraph (1),

6 to make grants to States under this paragraph.

7 ‘‘(B) AMOUNT.—Subject to subparagraph

8 (C), the amount of a grant awarded to a State

9 for a fiscal year under this paragraph shall be

10 based on the formula used for determining the

11 amount of Federal payments to the State under

12 section 403(n) (as such section was in effect be13 fore October 1, 1995).

14 ‘‘(C) MATCHING REQUIREMENT.—The Sec15 retary shall pay to each eligible State in a fiscal

16 year an amount, under a grant under subpara17 graph (A), equal to the Federal medical assist18 ance percentage for such State for fiscal year

19 1995 (as defined in section 1905(b)) of so

20 much of the expenditures by the State for child

21 care in such year as exceed the State set-aside

22 for such State under subsection (a)(1) for such

23 year and the amount of State expenditures in

24 fiscal year 1995 that equal the non-Federal
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1 share for the programs described in subpara2 graphs (A), (B) and (C) of paragraph (1).

3 ‘‘(3) APPROPRIATION.—There are authorized to

4 be appropriated, and there are appropriated, to

5 carry out this section—

6 ‘‘(A) $1,967,000,000 for fiscal year 1997;

7 ‘‘(B) $2,067,000,000 for fiscal year 1998;

8 ‘‘(C) $2,167,000,000 for fiscal year 1999;

9 ‘‘(D) $2,367,000,000 for fiscal year 2000;

10 ‘‘(E) $2,567,000,000 for fiscal year 2001;

11 and

12 ‘‘(F) $2,767,000,000 for fiscal year 2002.

13 ‘‘(4) REDISTRIBUTION.—With respect to any

14 fiscal year, if the Secretary determines that amounts

15 under any grant awarded to a State under this sub16 section for such fiscal year will not be used by such

17 State for carrying out the purpose for which the

18 grant is made, the Secretary shall make such

19 amounts available for carrying out such purpose to

20 1 or more other States which apply for such funds

21 to the extent the Secretary determines that such

22 other States will be able to use such additional

23 amounts for carrying out such purpose. Such avail24 able amounts shall be redistributed to a State pursu25 ant to section 402(i) (as such section was in effect
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1 before October 1, 1995) by substituting ‘the number

2 of children residing in all States applying for such

3 funds’ for ‘the number of children residing in the

4 United States in the second preceding fiscal year’.

5 Any amount made available to a State from an ap6 propriation for a fiscal year in accordance with the

7 preceding sentence shall, for purposes of this part,

8 be regarded as part of such State’s payment (as de9 termined under this subsection) for such year.

10 ‘‘(5) INDIAN TRIBES.—The Secretary shall re11 serve not more than 1 percent of the aggregate

12 amount appropriated to carry out this section in

13 each fiscal year for payments to Indian tribes and

14 tribal organizations.

15 ‘‘(b) USE OF FUNDS.—

16 ‘‘(1) IN GENERAL.—Amounts received by a

17 State under this section shall only be used to provide

18 child care assistance.

19 ‘‘(2) USE FOR CERTAIN POPULATIONS.—A

20 State shall ensure that not less than 70 percent of

21 the total amount of funds received by the State in

22 a fiscal year under this section are used to provide

23 child care assistance to families who are receiving

24 assistance under a State program under this part,

25 families who are attempting through work activities
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1 to transition off of such assistance program, and

2 families who are at risk of becoming dependent on

3 such assistance program.

4 ‘‘(c) APPLICATION OF CHILD CARE AND DEVELOP5 MENT BLOCK GRANT ACT of 1990.—Notwithstanding any

6 other provision of law, amounts provided to a State under

7 this section shall be transferred to the lead agency under

8 the Child Care and Development Block Grant Act of 1990,

9 integrated by the State into the programs established by

10 the State under such Act, and be subject to requirements

11 and limitations of such Act.

12 ‘‘(d) DEFINITION.—As used in this section, the term

13 ‘State’ means each of the 50 States or the District of Co14 lumbia.’’.

15 SEC. 704. LEAD AGENCY.

16 Section 658D(b) (42 U.S.C. 9858b(b)) is amended—

17 (1) in paragraph (1)—

18 (A) in subparagraph (A), by striking

19 ‘‘State’’ the first place that such appears and

20 inserting ‘‘governmental or nongovernmental’’;

21 and

22 (B) in subparagraph (C), by inserting

23 ‘‘with sufficient time and Statewide distribution

24 of the notice of such hearing,’’ after ‘‘hearing in

25 the State’’; and
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1 (2) in paragraph (2), by striking the second

2 sentence.

3 SEC. 705. APPLICATION AND PLAN.

4 Section 658E (42 U.S.C. 9858c) is amended—

5 (1) in subsection (b)—

6 (A) by striking ‘‘implemented—’’ and all

7 that follows through ‘‘(2)’’ and inserting ‘‘im8 plemented’’; and

9 (B) by striking ‘‘for subsequent State

10 plans’’;

11 (2) in subsection (c)—

12 (A) in paragraph (2)—

13 (i) in subparagraph (A)—

14 (I) in clause (i) by striking

15 ‘‘, other than through assistance pro16 vided under paragraph (3)(C),’’; and

17 (II) by striking ‘‘except’’ and all

18 that follows through ‘‘1992’’, and in19 serting ‘‘and provide a detailed de20 scription of the procedures the State

21 will implement to carry out the re22 quirements of this subparagraph’’;

23 (ii) in subparagraph (B)—

24 (I) by striking ‘‘Provide assur25 ances’’ and inserting ‘‘Certify’’; and
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1 (II) by inserting before the pe2 riod at the end ‘‘and provide a de3 tailed description of such procedures’’;

4 (iii) in subparagraph (C)—

5 (I) by striking ‘‘Provide assur6 ances’’ and inserting ‘‘Certify’’; and

7 (II) by inserting before the pe8 riod at the end ‘‘and provide a de9 tailed description of how such record

10 is maintained and is made available’’;

11 (iv) by amending subparagraph (D) to

12 read as follows:

13 ‘‘(D) CONSUMER EDUCATION INFORMA14 TION.—Certify that the State will collect and

15 disseminate to parents of eligible children and

16 the general public, consumer education informa17 tion that will promote informed child care

18 choices.’’;

19 (v) in subparagraph (E), to read as

20 follows:

21 ‘‘(E) COMPLIANCE WITH STATE LICENSING

22 REQUIREMENTS.—

23 ‘‘(i) IN GENERAL.—Certify that the

24 State has in effect licensing requirements

25 applicable to child care services provided
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1 within the State, and provide a detailed de2 scription of such requirements and of how

3 such requirements are effectively enforced.

4 Nothing in the preceding sentence shall be

5 construed to require that licensing require6 ments be applied to specific types of pro7 viders of child care services.

8 ‘‘(ii) INDIAN TRIBES AND TRIBAL OR9 GANIZATIONS.—In lieu of any licensing

10 and regulatory requirements applicable

11 under State and local law, the Secretary,

12 in consultation with Indian tribes and trib13 al organizations, shall develop minimum

14 child care standards (that appropriately re15 flect tribal needs and available resources)

16 that shall be applicable to Indian tribes

17 and tribal organizations receiving assist18 ance under this subchapter.’’;

19 (vi) by striking ‘‘Provide assurances’’

20 and inserting ‘‘Certify’’; and

21 (vii) by striking subparagraphs (H),

22 (I), and (J) and inserting the following:

23 ‘‘(G) MEETING THE NEEDS OF CERTAIN

24 POPULATIONS.—Demonstrate the manner in

25 which the State will meet the specific child care
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1 needs of families who are receiving assistance

2 under a State program under part A of title IV

3 of the Social Security Act, families who are at4 tempting through work activities to transition

5 off of such assistance program, and families

6 who are at risk of becoming dependent on such

7 assistance program.

8 ‘‘(H) PRESERVING PARENTAL CHOICE.—

9 Certify that the State will not implement any

10 policy or practice which has the effect of signifi11 cantly restricting parental choice by—

12 ‘‘(i) expressly or effectively excluding

13 any category of care or type of provider

14 within a category of care;

15 ‘‘(ii) limiting parental access to or

16 choices from among various categories of

17 care or types of providers; or

18 ‘‘(iii) excluding a significant number

19 of providers in any category of care.

20 ‘‘(I) INFORMING PARENTS OF OPTIONS.—

21 Provides assurances that parents will be in22 formed regarding their options under this sec23 tion, including the option to receive a child care

24 certificate or voucher.’’;

25 (B) in paragraph (3)—
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1 (i) in subparagraph (A), by striking

2 ‘‘(B) and (C)’’ and inserting ‘‘(B) through

3 (D)’’;

4 (ii) in subparagraph (B)—

5 (I) by striking ‘‘.—Subject to the

6 reservation contained in subparagraph

7 (C), the’’ and inserting ‘‘AND RELAT8 ED ACTIVITIES.—The’’;

9 (II) in clause (i) by striking ‘‘;

10 and’’ at the end and inserting a pe11 riod;

12 (III) by striking ‘‘for—’’ and all

13 that follows through ‘‘section

14 658E(c)(2)(A)’’ and inserting ‘‘for

15 child care services on sliding fee scale

16 basis, activities that improve the qual17 ity or availability of such services, and

18 any other activity that the State

19 deems appropriate to realize any of

20 the goals specified in paragraphs (2)

21 through (5) of section 658A(b)’’; and

22 (IV) by striking clause (ii);

23 (iii) by amending subparagraph (C) to

24 read as follows:
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1 ‘‘(C) LIMITATION ON ADMINISTRATIVE

2 COSTS.—Not more than 5 percent of the aggre3 gate amount of funds available to the State to

4 carry out this subchapter by a State in each fis5 cal year may be expended for administrative

6 costs incurred by such State to carry out all of

7 its functions and duties under this subchapter.

8 As used in the preceding sentence, the term

9 ‘administrative costs’ shall not include the costs

10 of providing direct services.’’; and

11 (iv) by adding at the end thereof the

12 following:

13 ‘‘(D) ASSISTANCE FOR CERTAIN FAMI14 LIES.—A State shall ensure that a substantial

15 portion of the amounts available (after the

16 State has complied with the requirement of sec17 tion 417(b)(2) of the Social Security Act with

18 respect to each of the fiscal years 1997 through

19 2002) to the State to carry out activities this

20 subchapter in each fiscal year is used to provide

21 assistance to low-income working families other

22 than families described in paragraph (2)(F).’’;

23 and

24 (C) in paragraph (4)(A)—
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1 (i) by striking ‘‘provide assurances’’

2 and inserting ‘‘certify’’;

3 (ii) in the first sentence by inserting

4 ‘‘and shall provide a summary of the facts

5 relied on by the State to determine that

6 such rates are sufficient to ensure such ac7 cess’’ before the period; and

8 (iii) by striking the last sentence.

9 SEC. 706. LIMITATION ON STATE ALLOTMENTS.

10 Section 658F(b) (42 U.S.C. 9858d(b)) is amended—

11 (1) in paragraph (1), by striking ‘‘No’’ and in12 serting ‘‘Except as provided for in section

13 658O(c)(6), no’’; and

14 (2) in paragraph (2), by striking ‘‘referred to in

15 section 658E(c)(2)(F)’’.

16 SEC. 707. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD

17 CARE.

18 Section 658G (42 U.S.C. 9858e) is amended to read

19 as follows:

20 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF

21 CHILD CARE.

22 ‘‘A State that receives funds to carry out this sub23 chapter for a fiscal year, shall use not less than 4 percent

24 of the amount of such funds for activities that are de25 signed to provide comprehensive consumer education to
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1 parents and the public, activities that increase parental

2 choice, and activities designed to improve the quality and

3 availability of child care (such as resource and referral

4 services).’’.

5 SEC. 708. REPEAL OF EARLY CHILDHOOD DEVELOPMENT

6 AND BEFORE- AND AFTER-SCHOOL CARE RE7 QUIREMENT.

8 Section 658H (42 U.S.C. 9858f) is repealed.

9 SEC. 709. ADMINISTRATION AND ENFORCEMENT.

10 Section 658I(b) (42 U.S.C. 9858g(b)) is amended—

11 (1) in paragraph (1), by striking ‘‘, and shall

12 have’’ and all that follows through ‘‘(2)’’; and

13 (2) in the matter following clause (ii) of para14 graph (2)(A), by striking ‘‘finding and that’’ and all

15 that follows through the period and inserting ‘‘find16 ing and shall require that the State reimburse the

17 Secretary for any funds that were improperly ex18 pended for purposes prohibited or not authorized by

19 this subchapter, that the Secretary deduct from the

20 administrative portion of the State allotment for the

21 following fiscal year an amount that is less than or

22 equal to any improperly expended funds, or a com23 bination of such options.’’.
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1 SEC. 710. PAYMENTS.

2 Section 658J(c) (42 U.S.C. 9858h(c)) is amended by

3 striking ‘‘expended’’ and inserting ‘‘obligated’’.

4 SEC. 711. ANNUAL REPORT AND AUDITS.

5 Section 658K (42 U.S.C. 9858i) is amended—

6 (1) in the section heading by striking ‘‘ANNUAL

7 REPORT’’ and inserting ‘‘REPORTS’’;

8 (2) in subsection (a), to read as follows:

9 ‘‘(a) REPORTS.—

10 ‘‘(1) COLLECTION OF INFORMATION BY

11 STATES.—

12 ‘‘(A) IN GENERAL.—A State that receives

13 funds to carry out this subchapter shall collect

14 the information described in subparagraph (B)

15 on a monthly basis.

16 ‘‘(B) REQUIRED INFORMATION.—The in17 formation required under this subparagraph

18 shall include, with respect to a family unit re19 ceiving assistance under this subchapter infor20 mation concerning—

21 ‘‘(i) family income;

22 ‘‘(ii) county of residence;

23 ‘‘(iii) the gender, race, and age of

24 children receiving such assistance;

25 ‘‘(iv) whether the family includes only

26 1 parent;
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1 ‘‘(v) the sources of family income, in2 cluding the amount obtained from (and

3 separately identified)—

4 ‘‘(I) employment, including self5 employment;

6 ‘‘(II) cash or other assistance

7 under part A of title IV of the Social

8 Security Act;

9 ‘‘(III) housing assistance;

10 ‘‘(IV) assistance under the Food

11 Stamp Act of 1977; and

12 ‘‘(V) other assistance programs;

13 ‘‘(vi) the number of months the family

14 has received benefits;

15 ‘‘(vii) the type of child care in which

16 the child was enrolled (such as family child

17 care, home care, or center-based child

18 care);

19 ‘‘(viii) whether the child care provider

20 involved was a relative;

21 ‘‘(ix) the cost of child care for such

22 families; and

23 ‘‘(x) the average hours per week of

24 such care;
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1 during the period for which such information is

2 required to be submitted.

3 ‘‘(C) SUBMISSION TO SECRETARY.—A

4 State described in subparagraph (A) shall, on a

5 quarterly basis, submit the information required

6 to be collected under subparagraph (B) to the

7 Secretary.

8 ‘‘(D) SAMPLING.—The Secretary may dis9 approve the information collected by a State

10 under this paragraph if the State uses sampling

11 methods to collect such information.

12 ‘‘(2) BIANNUAL REPORTS.—Not later than De13 cember 31, 1997, and every 6 months thereafter, a

14 State described in paragraph (1)(A) shall prepare

15 and submit to the Secretary a report that includes

16 aggregate data concerning—

17 ‘‘(A) the number of child care providers

18 that received funding under this subchapter as

19 separately identified based on the types of pro20 viders listed in section 658P(5);

21 ‘‘(B) the monthly cost of child care serv22 ices, and the portion of such cost that is paid

23 for with assistance provided under this sub24 chapter, listed by the type of child care services

25 provided;
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1 ‘‘(C) the number of payments made by the

2 State through vouchers, contracts, cash, and

3 disregards under public benefit programs, listed

4 by the type of child care services provided;

5 ‘‘(D) the manner in which consumer edu6 cation information was provided to parents and

7 the number of parents to whom such informa8 tion was provided; and

9 ‘‘(E) the total number (without duplica10 tion) of children and families served under this

11 subchapter;

12 during the period for which such report is required

13 to be submitted.’’; and

14 (2) in subsection (b)—

15 (A) in paragraph (1) by striking ‘‘a appli16 cation’’ and inserting ‘‘an application’’;

17 (B) in paragraph (2) by striking ‘‘any

18 agency administering activities that receive’’

19 and inserting ‘‘the State that receives’’; and

20 (C) in paragraph (4) by striking ‘‘entitles’’

21 and inserting ‘‘entitled’’.

22 SEC. 712. REPORT BY THE SECRETARY.

23 Section 658L (42 U.S.C. 9858j) is amended—

24 (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
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1 (2) by striking ‘‘annually’’ and inserting ‘‘bien2 nially’’; and

3 (3) by striking ‘‘Education and Labor’’ and in4 serting ‘‘Economic and Educational Opportunities’’.

5 SEC. 713. ALLOTMENTS.

6 Section 658O (42 U.S.C. 9858m) is amended—

7 (1) in subsection (a)—

8 (A) in paragraph (1)

9 (i) by striking ‘‘POSSESSIONS’’ and in10 serting ‘‘POSSESSIONS’’;

11 (ii) by inserting ‘‘and’’ after

12 ‘‘States,’’; and

13 (iii) by striking ‘‘, and the Trust Ter14 ritory of the Pacific Islands’’; and

15 (B) in paragraph (2), by striking ‘‘3 per16 cent’’ and inserting ‘‘1 percent’’;

17 (2) in subsection (c)—

18 (A) in paragraph (5) by striking ‘‘our’’ and

19 inserting ‘‘out’’; and

20 (B) by adding at the end thereof the fol21 lowing new paragraph:

22 ‘‘(6) CONSTRUCTION OR RENOVATION OF FA23 CILITIES.—

24 ‘‘(A) REQUEST FOR USE OF FUNDS.—An

25 Indian tribe or tribal organization may submit
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1 to the Secretary a request to use amounts pro2 vided under this subsection for construction or

3 renovation purposes.

4 ‘‘(B) DETERMINATION.—With respect to a

5 request submitted under subparagraph (A), and

6 except as provided in subparagraph (C), upon a

7 determination by the Secretary that adequate

8 facilities are not otherwise available to an In9 dian tribe or tribal organization to enable such

10 tribe or organization to carry out child care

11 programs in accordance with this subchapter,

12 and that the lack of such facilities will inhibit

13 the operation of such programs in the future,

14 the Secretary may permit the tribe or organiza15 tion to use assistance provided under this sub16 section to make payments for the construction

17 or renovation of facilities that will be used to

18 carry out such programs.

19 ‘‘(C) LIMITATION.—The Secretary may not

20 permit an Indian tribe or tribal organization to

21 use amounts provided under this subsection for

22 construction or renovation if such use will re23 sult in a decrease in the level of child care serv24 ices provided by the tribe or organization as

25 compared to the level of such services provided
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1 by the tribe or organization in the fiscal year

2 preceding the year for which the determination

3 under subparagraph (A) is being made.

4 ‘‘(D) UNIFORM PROCEDURES.—The Sec5 retary shall develop and implement uniform

6 procedures for the solicitation and consideration

7 of requests under this paragraph.’’; and

8 (3) in subsection (e), by adding at the end

9 thereof the following new paragraph:

10 ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZA11 TIONS.—Any portion of a grant or contract made to

12 an Indian tribe or tribal organization under sub13 section (c) that the Secretary determines is not

14 being used in a manner consistent with the provision

15 of this subchapter in the period for which the grant

16 or contract is made available, shall be allotted by the

17 Secretary to other tribes or organizations that have

18 submitted applications under subsection (c) in ac19 cordance with their respective needs.’’.

20 SEC. 714. DEFINITIONS.

21 Section 658P (42 U.S.C. 9858n) is amended—

22 (1) in paragraph (2), in the first sentence by

23 inserting ‘‘or as a deposit for child care services if

24 such a deposit is required of other children being
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1 cared for by the provider’’ after ‘‘child care serv2 ices’’; and

3 (2) by striking paragraph (3);

4 (3) in paragraph (4)(B), by striking ‘‘75 per5 cent’’ and inserting ‘‘85 percent’’;

6 (4) in paragraph (5)(B)—

7 (A) by inserting ‘‘great grandchild, sibling

8 (if such provider lives in a separate residence),’’

9 after ‘‘grandchild,’’;

10 (B) by striking ‘‘is registered and’’; and

11 (C) by striking ‘‘State’’ and inserting ‘‘ap12 plicable’’.

13 (5) by striking paragraph (10);

14 (6) in paragraph (13)—

15 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and

16 (B) by striking ‘‘, and the Trust Territory

17 of the Pacific Islands’’;

18 (7) in paragraph (14)—

19 (A) by striking ‘‘The term’’ and inserting

20 the following:

21 ‘‘(A) IN GENERAL.—The term’’; and

22 (B) by adding at the end thereof the fol23 lowing new subparagraph:

24 ‘‘(B) OTHER ORGANIZATIONS.—Such term

25 includes a Native Hawaiian Organization, as
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1 defined in section 4009(4) of the Augustus F.

2 Hawkins-Robert T. Stafford Elementary and

3 Secondary School Improvement Amendments of

4 1988 (20 U.S.C. 4909(4)) and a private non5 profit organization established for the purpose

6 of serving youth who are Indians or Native Ha7 waiians.’’.

8 SEC. 715. REPEALS.

9 (a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

10 ASSISTANCE ACT OF 1985.—Title VI of the Human Serv11 ices Reauthorization Act of 1986 (42 U.S.C. 10901–

12 10905) is repealed.

13 (b) STATE DEPENDENT CARE DEVELOPMENT

14 GRANTS ACT.—Subchapter E of chapter 8 of subtitle A

15 of title VI of the Omnibus Budget Reconciliation Act of

16 1981 (42 U.S.C. 9871–9877) is repealed.

17 (c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title

18 X of the Elementary and Secondary Education Act of

19 1965, as amended by Public Law 103–382 (108 Stat.

20 3809 et seq.), is amended—

21 (1) in section 10413(a) by striking paragraph

22 (4),

23 (2) in section 10963(b)(2) by striking subpara24 graph (G), and
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1 (3) in section 10974(a)(6) by striking subpara2 graph (G).

3 (d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION

4 CENTERS.—Section 9205 of the Native Hawaiian Edu5 cation Act (Public Law 103–382; 108 Stat. 3794) is re6 pealed.

7 SEC. 716. EFFECTIVE DATE.

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

9 (b), this title and the amendments made by this title shall

10 take effect on October 1, 1996.

11 (b) EXCEPTION.—The amendment made by section

12 803(a) shall take effect on the date of enactment of this

13 Act.

14 TITLE VIII—CHILD NUTRITION

15 PROGRAMS

16 Subtitle A—National School Lunch

17 Act

18 SEC. 801. VALUE OF FOOD ASSISTANCE.

19 (a) IN GENERAL.—Section 6(e)(1) of the National

20 School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by

21 striking subparagraph (B) and inserting the following:

22 ‘‘(B) ADJUSTMENTS.—

23 ‘‘(i) IN GENERAL.—The value of food

24 assistance for each meal shall be adjusted

25 each July 1 by the annual percentage
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1 change in a 3-month average value of the

2 Price Index for Foods Used in Schools and

3 Institutions for March, April, and May

4 each year.

5 ‘‘(ii) ADJUSTMENTS.—Except as oth6 erwise provided in this subparagraph, in

7 the case of each school year, the Secretary

8 shall—

9 ‘‘(I) base the adjustment made

10 under clause (i) on the amount of the

11 unrounded adjustment for the preced12 ing school year;

13 ‘‘(II) adjust the resulting amount

14 in accordance with clause (i); and

15 ‘‘(III) round the result to the

16 nearest lower cent increment.

17 ‘‘(iii) ADJUSTMENT FOR 24-MONTH

18 PERIOD BEGINNING JULY 1, 1996.—In the

19 case of the 24-month period beginning

20 July 1, 1996, the value of food assistance

21 shall be the same as the value of food as22 sistance in effect on June 30, 1996.

23 ‘‘(iv) ADJUSTMENT FOR SCHOOL YEAR

24 BEGINNING JULY 1, 1998.—In the case of
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1 the school year beginning July 1, 1998, the

2 Secretary shall—

3 ‘‘(I) base the adjustment made

4 under clause (i) on the amount of the

5 unrounded adjustment for the value of

6 food assistance for the school year be7 ginning July 1, 1995;

8 ‘‘(II) adjust the resulting amount

9 to reflect the annual percentage

10 change in a 3-month average value of

11 the Price Index for Foods Used in

12 Schools and Institutions for March,

13 April, and May for the most recent

14 12-month period for which the data

15 are available; and

16 ‘‘(III) round the result to the

17 nearest lower cent increment.’’.

18 (b) EFFECTIVE DATE.—The amendment made by

19 subsection (a) shall become effective on July 1, 1996.

20 SEC. 802. COMMODITY ASSISTANCE.

21 (a) IN GENERAL.—Section 6(g) of the National

22 School Lunch Act (42 U.S.C. 1755(g)) is amended by

23 striking ‘‘12 percent’’ and inserting ‘‘8 percent’’.

24 (b) EFFECTIVE DATE.—The amendment made by

25 subsection (a) shall become effective on July 1, 1996.
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1 SEC. 803. STATE DISBURSEMENT TO SCHOOLS.

2 (a) IN GENERAL.—Section 8 of the National School

3 Lunch Act (42 U.S.C. 1757) is amended—

4 (1) in the third sentence, by striking ‘‘Nothing’’

5 and all that follows through ‘‘educational agency to’’

6 and inserting ‘‘The State educational agency may’’;

7 (2) by striking the fourth, fifth, and eighth sen8 tences;

9 (3) by redesignating the first through sixth sen10 tences, as amended by paragraph (1), as subsections

11 (a) through (f), respectively;

12 (4) in subsection (b), as redesignated by para13 graph (3), by striking ‘‘the preceding sentence’’ and

14 inserting ‘‘subsection (a)’’; and

15 (5) in subsection (d), as redesignated by para16 graph (3), by striking ‘‘Such food costs’’ and insert17 ing ‘‘Use of funds paid to States’’.

18 (b) DEFINITION OF CHILD.—Section 12(d) of the Act

19 (42 U.S.C. 1760(d)) is amended by adding at the end the

20 following:

21 ‘‘(9) ‘child’ includes an individual, regardless of

22 age, who—

23 ‘‘(A) is determined by a State educational

24 agency, in accordance with regulations pre25 scribed by the Secretary, to have 1 or more

26 mental or physical disabilities; and
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1 ‘‘(B) is attending any institution, as de2 fined in section 17(a), or any nonresidential

3 public or nonprofit private school of high school

4 grade or under, for the purpose of participating

5 in a school program established for individuals

6 with mental or physical disabilities.

7 No institution that is not otherwise eligible to par8 ticipate in the program under section 17 shall be

9 considered eligible because of this paragraph.’’.

10 SEC. 804. NUTRITIONAL AND OTHER PROGRAM REQUIRE11 MENTS.

12 (a) NUTRITIONAL STANDARDS.—Section 9(a) of the

13 National School Lunch Act (42 U.S.C. 1758(a)) is amend14 ed—

15 (1) in paragraph (2)—

16 (A) by striking ‘‘(2)(A) Lunches’’ and in17 serting ‘‘(2) Lunches’’;

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

19 (C) by redesignating clauses (i) and (ii) as

20 subparagraphs (A) and (B), respectively;

21 (2) by striking paragraph (3); and

22 (3) by redesignating paragraph (4) as para23 graph (3).

24 (b) ELIGIBILITY GUIDELINES.—Section 9(b) of the

25 Act is amended—
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1 (1) in paragraph (2)—

2 (A) by striking subparagraph (A); and

3 (B) by redesignating subparagraphs (B)

4 and (C) as subparagraphs (A) and (B), respec5 tively;

6 (2) in paragraph (5), by striking the third sen7 tence; and

8 (3) in paragraph (6), by striking ‘‘paragraph

9 (2)(C)’’ and inserting ‘‘paragraph (2)(B)’’.

10 (c) UTILIZATION OF AGRICULTURAL COMMOD11 ITIES.—Section 9(c) of the Act is amended by striking the

12 second, fourth, and sixth sentences.

13 (d) CONFORMING AMENDMENT.—The last sentence

14 of section 9(d)(1) of the Act is amended by striking ‘‘sub15 section (b)(2)(C)’’ and inserting ‘‘subsection (b)(2)(B)’’.

16 (e) NUTRITIONAL INFORMATION.—Section 9(f) of the

17 Act is amended—

18 (1) by striking paragraph (1);

19 (2) by striking ‘‘(2)’’;

20 (3) by redesignating subparagraphs (A) through

21 (D) as paragraphs (1) through (4), respectively;

22 (4) by striking paragraph (1), as redesignated

23 by paragraph (3), and inserting the following:

24 ‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as

25 provided in paragraph (2), not later than the first
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1 day of the 1996–1997 school year, schools that are

2 participating in the school lunch or school breakfast

3 program shall serve lunches and breakfasts under

4 the program that—

5 ‘‘(A) are consistent with the goals of the

6 most recent Dietary Guidelines for Americans

7 published under section 301 of the National

8 Nutrition Monitoring and Related Research Act

9 of 1990 (7 U.S.C. 5341); and

10 ‘‘(B) provide, on the average over each

11 week, at least—

‘‘(i) with respect to school lunches, 1 12 ⁄3

13 of the daily recommended dietary allow14 ance established by the Food and Nutrition

15 Board of the National Research Council of

16 the National Academy of Sciences; and

17 ‘‘(ii) with respect to school breakfasts,

1 18 ⁄4 of the daily recommended dietary allow19 ance established by the Food and Nutrition

20 Board of the National Research Council of

21 the National Academy of Sciences.’’;

22 (5) in paragraph (3), as redesignated by para23 graph (3)—

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

25 subparagraphs (A) and (B), respectively; and
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1 (B) in subparagraph (A), as so redesig2 nated, by redesignating subclauses (I) and (II)

3 as clauses (i) and (ii), respectively; and

4 (6) in paragraph (4), as redesignated by para5 graph (3), by striking the first sentence and insert6 ing the following: ‘‘Schools may use any reasonable

7 approach to meet the requirements of this para8 graph, including any approach described in para9 graph (3).’’.

10 (f) USE OF RESOURCES.—Section 9 of the Act is

11 amended by striking subsection (h).

12 SEC. 805. FREE AND REDUCED PRICE POLICY STATEMENT.

13 Section 9(b)(2) of the National School Lunch Act (42

14 U.S.C. 1758(b)(2)), as amended by section 802(b)(1), is

15 further amended by adding at the end the following:

16 ‘‘(C) FREE AND REDUCED PRICE POLICY

17 STATEMENT.—After the initial submission, a

18 school shall not be required to submit a free

19 and reduced price policy statement to a State

20 educational agency under this Act unless there

21 is a substantive change in the free and reduced

22 price policy of the school. A routine change in

23 the policy of a school, such as an annual adjust24 ment of the income eligibility guidelines for free

25 and reduced price meals, shall not be sufficient
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1 cause for requiring the school to submit a policy

2 statement.’’.

3 SEC. 806. SPECIAL ASSISTANCE.

4 (a) REIMBURSEMENT RATES FOR LUNCHES, BREAK5 FASTS, AND SUPPLEMENTS.—

6 (1) IN GENERAL.—Section 11(a)(3)(B) of the

7 National School Lunch Act (42 U.S.C.

8 1759a(a)(3)(B)) is amended—

9 (A) by designating the second and third

10 sentences as subparagraphs (C) and (D), re11 spectively; and

12 (B) by striking subparagraph (D) (as so

13 designated) and inserting the following:

14 ‘‘(D) ROUNDING.—Except as otherwise

15 provided in this paragraph, in the case of each

16 school year, the Secretary shall—

17 ‘‘(i) base the adjustment made under

18 this paragraph on the amount of the

19 unrounded adjustment for the preceding

20 school year;

21 ‘‘(ii) adjust the resulting amount in

22 accordance with subparagraphs (B) and

23 (C); and

24 ‘‘(iii) round the result to the nearest

25 lower cent increment.
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1 ‘‘(E) ADJUSTMENT FOR 12-MONTH PERIOD

2 BEGINNING JULY 1, 1996.—In the case of the

3 12-month period beginning July 1, 1996, the

4 national average payment rates for paid

5 lunches, paid breakfasts, and paid supplements

6 shall be the same as the national average pay7 ment rate for paid lunches, paid breakfasts, and

8 paid supplements, respectively, for the school

9 year beginning July 1, 1995, rounded to the

10 nearest lower cent increment.

11 ‘‘(F) ADJUSTMENT FOR SCHOOL YEAR BE12 GINNING JULY 1, 1997.—In the case of the

13 school year beginning July 1, 1997, the Sec14 retary shall—

15 ‘‘(i) base the adjustments made under

16 this paragraph for—

17 ‘‘(I) paid lunches and paid break18 fasts on the amount of the unrounded

19 adjustment for paid lunches for the

20 school year beginning July 1, 1996;

21 and

22 ‘‘(II) paid supplements on the

23 amount of the unrounded adjustment

24 for paid supplements for the school

25 year beginning July 1, 1996;
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1 ‘‘(ii) adjust each resulting amount in

2 accordance with subparagraph (C); and

3 ‘‘(iii) round each result to the nearest

4 lower cent increment.’’.

5 (2) EFFECTIVE DATE.—The amendments made

6 by paragraph (1) shall become effective on July 1,

7 1996.

8 (b) FINANCING BASED ON NEED.—Section 11(b) of

9 the Act is amended—

10 (1) in the second sentence, by striking ‘‘, with11 in’’ and all that follows through ‘‘all States,’’; and

12 (2) by striking the third sentence.

13 (c) APPLICABILITY OF OTHER PROVISIONS.—Section

14 11 of the Act is amended—

15 (1) by striking subsection (d);

16 (2) in subsection (e)(2)—

17 (A) by striking ‘‘The’’ and inserting ‘‘On

18 request of the Secretary, the’’; and

19 (B) by striking ‘‘each month’’; and

20 (3) by redesignating subsections (e) and (f), as

21 so amended, as subsections (d) and (e), respectively.

22 SEC. 807. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

23 (a) ACCOUNTS AND RECORDS.—Section 12(a) of the

24 National School Lunch Act (42 U.S.C. 1760(a)) is amend-
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1 ed by striking ‘‘at all times be available’’ and inserting

2 ‘‘be available at any reasonable time’’.

3 (b) RESTRICTION ON REQUIREMENTS.—Section

4 12(c) of the Act is amended by striking ‘‘neither the Sec5 retary nor the State shall’’ and inserting ‘‘the Secretary

6 shall not’’.

7 (c) DEFINITIONS.—Section 12(d) of the Act, as

8 amended by section 801(b), is further amended—

9 (1) in paragraph (1), by striking ‘‘the Trust

10 Territory of the Pacific Islands’’ and inserting ‘‘the

11 Commonwealth of the Northern Mariana Islands’’;

12 (2) by striking paragraphs (3) and (4); and

13 (3) by redesignating paragraphs (1), (2), and

14 (5) through (9) as paragraphs (6), (7), (3), (4), (2),

15 (5), and (1), respectively, and rearranging the para16 graphs so as to appear in numerical order.

17 (d) ADJUSTMENTS TO NATIONAL AVERAGE PAY18 MENT RATES.—Section 12(f) of the Act is amended by

19 striking ‘‘the Trust Territory of the Pacific Islands,’’.

20 (e) EXPEDITED RULEMAKING.—Section 12(k) of the

21 Act is amended—

22 (1) by striking paragraphs (1), (2), and (5);

23 and

24 (2) by redesignating paragraphs (3) and (4) as

25 paragraphs (1) and (2), respectively.
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1 (f) WAIVER.—Section 12(l) of the Act is amended—

2 (1) in paragraph (1)(A)(i), by inserting after

3 ‘‘program’’ the following: ‘‘and would not have the

4 effect of transferring funds or commodities from the

5 support of meals for children with incomes below the

6 income criteria for free or reduced price meals, as

7 provided in section 9(b)’’;

8 (2) in paragraph (2)—

9 (A) by striking ‘‘(A)’’;

10 (B) in clause (iii), by adding ‘‘and’’ at the

11 end;

12 (C) in clause (iv), by striking the semicolon

13 at the end and inserting a period;

14 (D) by striking clauses (v) through (vii);

15 (E) by striking subparagraph (B); and

16 (F) by redesignating clauses (i) through

17 (iv), as so amended, as subparagraphs (A)

18 through (D), respectively;

19 (3) in paragraph (3)—

20 (A) by striking ‘‘(A)’’; and

21 (B) by striking subparagraphs (B) through

22 (D);

23 (4) in paragraph (4)—

24 (A) in the matter preceding subparagraph

25 (A), by striking ‘‘of any requirement relating’’
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1 and inserting ‘‘that increases Federal costs or

2 that relates’’;

3 (B) by striking subparagraphs (B), (D),

4 (F), (H), (J), (K), and (L);

5 (C) by redesignating subparagraphs (C),

6 (E), (G), (I), (M), and (N) as subparagraphs

7 (B) through (G), respectively; and

8 (D) in subparagraph (F), as redesignated

9 by subparagraph (C), by striking ‘‘and’’ at the

10 end and inserting ‘‘or’’; and

11 (5) in paragraph (6)—

12 (A) by striking ‘‘(A)(i)’’ and all that fol13 lows through ‘‘(B)’’; and

14 (B) by redesignating clauses (i) through

15 (iv) as subparagraphs (A) through (D), respec16 tively.

17 (g) FOOD AND NUTRITION PROJECTS.—Section 12

18 of the Act is amended by striking subsection (m).

19 SEC. 808. SUMMER FOOD SERVICE PROGRAM FOR CHIL20 DREN.

21 (a) ESTABLISHMENT OF PROGRAM.—Section 13(a)

22 of the National School Lunch Act (42 U.S.C. 1761(a))

23 is amended—

24 (1) in paragraph (1)—
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1 (A) in the first sentence, by striking ‘‘initi2 ate, maintain, and expand’’ and insert ‘‘initiate

3 and maintain’’; and

4 (B) in subparagraph (E) of the second

5 sentence, by striking ‘‘the Trust Territory of

6 the Pacific Islands,’’; and

7 (2) in paragraph (7)(A), by striking ‘‘Except as

8 provided in subparagraph (C), private’’ and inserting

9 ‘‘Private’’.

10 (b) SERVICE INSTITUTIONS.—Section 13(b) of the

11 Act is amended by striking ‘‘(b)(1)’’ and all that follows

12 through the end of paragraph (1) and inserting the follow13 ing:

14 ‘‘(b) SERVICE INSTITUTIONS.—

15 ‘‘(1) PAYMENTS.—

16 ‘‘(A) IN GENERAL.—Except as otherwise

17 provided in this paragraph, payments to service

18 institutions shall equal the full cost of food

19 service operations (which cost shall include the

20 costs of obtaining, preparing, and serving food,

21 but shall not include administrative costs).

22 ‘‘(B) MAXIMUM AMOUNTS.—Subject to

23 subparagraph (C), payments to any institution

24 under subparagraph (A) shall not exceed—
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1 ‘‘(i) $2.00 for each lunch and supper

2 served;

3 ‘‘(ii) $1.20 for each breakfast served;

4 and

5 ‘‘(iii) 50 cents for each meal supple6 ment served.

7 ‘‘(C) ADJUSTMENTS.—Amounts specified

8 in subparagraph (B) shall be adjusted each

9 January 1 to the nearest lower cent increment

10 in accordance with the changes for the 12-

11 month period ending the preceding November

12 30 in the series for food away from home of the

13 Consumer Price Index for All Urban Consum14 ers published by the Bureau of Labor Statistics

15 of the Department of Labor. Each adjustment

16 shall be based on the unrounded adjustment for

17 the prior 12-month period.’’.

18 (c) ADMINISTRATION OF SERVICE INSTITUTIONS.—

19 Section 13(b)(2) of the Act is amended—

20 (1) in the first sentence, by striking ‘‘four

21 meals’’ and inserting ‘‘3 meals, or 2 meals and 1

22 supplement,’’; and

23 (2) by striking the second sentence.

24 (d) REIMBURSEMENTS.—Section 13(c)(2) of the Act

25 is amended—
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1 (1) by striking subparagraph (A);

2 (2) in subparagraph (B)—

3 (A) in the first sentence—

4 (i) by striking ‘‘, and such higher edu5 cation institutions,’’; and

6 (ii) by striking ‘‘without application’’

7 and inserting ‘‘upon showing residence in

8 areas in which poor economic conditions

9 exist or on the basis of income eligibility

10 statements for children enrolled in the pro11 gram’’; and

12 (B) by adding at the end the following:

13 ‘‘The higher education institutions referred to

14 in the preceding sentence shall be eligible to

15 participate in the program under this para16 graph without application.’’;

17 (3) in subparagraph (C)(ii), by striking ‘‘severe

18 need’’; and

19 (4) by redesignating subparagraphs (B)

20 through (E), as so amended, as subparagraphs (A)

21 through (D), respectively.

22 (e) ADVANCE PROGRAM PAYMENTS.—Section

23 13(e)(1) of the Act is amended—

24 (1) by striking ‘‘institution: Provided, That (A)

25 the’’ and inserting ‘‘institution. The’’;
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1 (2) by inserting ‘‘(excluding a school)’’ after

2 ‘‘any service institution’’; and

3 (3) by striking ‘‘responsibilities, and (B) no’’

4 and inserting ‘‘responsibilities. No’’.

5 (f) FOOD REQUIREMENTS.—Section 13(f) of the Act

6 is amended—

7 (1) by redesignating the first through seventh

8 sentences as paragraphs (1) through (7), respec9 tively;

10 (2) by striking paragraph (3), as redesignated

11 by paragraph (1);

12 (3) in paragraph (4), as redesignated by para13 graph (1), by striking ‘‘the first sentence’’ and in14 serting ‘‘paragraph (1)’’;

15 (4) in paragraph (6), as redesignated by para16 graph (1), by striking ‘‘that bacteria levels’’ and all

17 that follows through the period at the end and in18 serting ‘‘conformance with standards set by local

19 health authorities.’’; and

20 (5) by redesignating paragraphs (4) through

21 (7), as redesignated by paragraph (1), as para22 graphs (3) through (6), respectively.

23 (g) PERMITTING OFFER VERSUS SERVE.—Section

24 13(f) of the Act, as amended by subsection (f), is further

25 amended by adding at the end the following:
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1 ‘‘(7) OFFER VERSUS SERVE.—A school food au2 thority participating as a service institution may

3 permit a child attending a site on school premises

4 operated directly by the authority to refuse not more

5 than 1 item of a meal that the child does not intend

6 to consume. A refusal of an offered food item shall

7 not affect the amount of payments made under this

8 section to a school for the meal.’’.

9 (h) HEALTH DEPARTMENT INSPECTIONS.—Section

10 13(k) of the Act is amended by striking paragraph (3).

11 (i) FOOD SERVICE MANAGEMENT COMPANIES.—Sec12 tion 13(l) of the Act is amended—

13 (1) by striking paragraph (4);

14 (2) in paragraph (5), by striking the first sen15 tence; and

16 (3) by redesignating paragraph (5), as so

17 amended, as paragraph (4).

18 (j) RECORDS.—The second sentence of section 13(m)

19 of the Act is amended by striking ‘‘at all times be avail20 able’’ and inserting ‘‘be available at any reasonable time’’.

21 (k) REMOVING MANDATORY NOTICE TO INSTITU22 TIONS.—Section 13(n)(2) of the Act is amended by strik23 ing ‘‘, and its plans and schedule for informing service

24 institutions of the availability of the program’’.

25 (l) PLAN.—Section 13(n) of the Act is amended—
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1 (1) in paragraph (2), by striking ‘‘including the

2 State’s methods of assessing need’’;

3 (2) by striking paragraph (3);

4 (3) in paragraph (4), by striking ‘‘and sched5 ule’’; and

6 (4) by redesignating paragraphs (4) through

7 (7), as so amended, as paragraphs (3) through (6),

8 respectively.

9 (m) MONITORING AND TRAINING.—Section 13(q) of

10 the Act is amended—

11 (1) by striking paragraphs (2) and (4);

12 (2) in paragraph (3), by striking ‘‘paragraphs

13 (1) and (2) of this subsection’’ and inserting ‘‘para14 graph (1)’’; and

15 (3) by redesignating paragraph (3), as so

16 amended, as paragraph (2).

17 (n) EXPIRED PROGRAM.—Section 13 of the Act is

18 amended—

19 (1) by striking subsection (p); and

20 (2) by redesignating subsections (q) and (r), as

21 so amended, as subsections (p) and (q), respectively.

22 (o) EFFECTIVE DATE.—The amendments made by

23 subsection (b) shall become effective on January 1, 1996.
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1 SEC. 809. COMMODITY DISTRIBUTION.

2 (a) CEREAL AND SHORTENING IN COMMODITY DO3 NATIONS.—Section 14(b) of the National School Lunch

4 Act (42 U.S.C. 1762a(b)) is amended—

5 (1) by striking paragraph (1); and

6 (2) by redesignating paragraphs (2) and (3) as

7 paragraphs (1) and (2), respectively.

8 (b) IMPACT STUDY AND PURCHASING PROCE9 DURES.—Section 14(d) of the Act is amended by striking

10 the second and third sentences.

11 (c) CASH COMPENSATION FOR PILOT PROJECT

12 SCHOOLS.—Section 14(g) of the Act is amended by strik13 ing paragraph (3).

14 (d) STATE ADVISORY COUNCIL.—Section 14 is

15 amended—

16 (1) by striking subsection (e); and

17 (2) by redesignating subsections (f) and (g), as

18 so amended, as subsections (e) and (f), respectively.

19 SEC. 810. CHILD CARE FOOD PROGRAM.

20 (a) ESTABLISHMENT OF PROGRAM.—Section 17 of

21 the National School Lunch Act (42 U.S.C. 1766) is

22 amended—

23 (1) in the section heading, by striking ‘‘AND

24 ADULT’’; and
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1 (2) in the first sentence of subsection (a), by

2 striking ‘‘initiate, maintain, and expand’’ and insert3 ing ‘‘initiate and maintain’’.

4 (b) INSTITUTIONS PROVIDING CHILD CARE.—Sec5 tion 17(a) of the Act (42 U.S.C. 1766(a)) is amended—

6 (1) in the second sentence—

7 (A) by inserting ‘‘the Child Care and De8 velopment Block Grant Act of 1990 (42 U.S.C.

9 9858 et seq.) or’’ after ‘‘from amounts granted

10 to the States under’’; and

11 (B) by striking ‘‘(but only if’’ and all that

12 follows and inserting a period; and

13 (2) in the fourth sentence, by striking ‘‘Reim14 bursement’’ and inserting ‘‘Notwithstanding the type

15 of institution providing the meal or supplement, re16 imbursement’’.

17 (c) PAYMENTS TO SPONSOR EMPLOYEES.—Para18 graph (2) of the last sentence of section 17(a) of the Act

19 (42 U.S.C. 1766(a)) is amended—

20 (1) by striking ‘‘and’’ at the end of subpara21 graph (B);

22 (2) by striking the period at the end of sub23 paragraph (C) and inserting ‘‘; and’’; and

24 (3) by adding at the end the following:
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1 ‘‘(D) in the case of a family or group day

2 care home sponsoring organization that employs

3 more than 1 employee, the organization does

4 not base payments to an employee of the orga5 nization on the number of family or group day

6 care homes recruited.’’.

7 (d) TECHNICAL ASSISTANCE.—The last sentence of

8 section 17(d)(1) of the Act is amended by striking ‘‘, and

9 shall provide technical assistance’’ and all that follows

10 through ‘‘its application’’.

11 (e) IMPROVED TARGETING OF DAY CARE HOME RE12 IMBURSEMENTS.—

13 (1) RESTRUCTURED DAY CARE HOME REIM14 BURSEMENTS.—Section 17(f)(3) of the Act is

15 amended by striking ‘‘(3)(A) Institutions’’ and all

16 that follows through the end of subparagraph (A)

17 and inserting the following:

18 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

19 DAY CARE HOME SPONSORING ORGANIZATIONS.—

20 ‘‘(A) REIMBURSEMENT FACTOR.—

21 ‘‘(i) IN GENERAL.—An institution

22 that participates in the program under this

23 section as a family or group day care home

24 sponsoring organization shall be provided,

25 for payment to a home sponsored by the
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1 organization, reimbursement factors in ac2 cordance with this subparagraph for the

3 cost of obtaining and preparing food and

4 prescribed labor costs involved in providing

5 meals under this section.

6 ‘‘(ii) TIER I FAMILY OR GROUP DAY

7 CARE HOMES.—

8 ‘‘(I) DEFINITION.—In this para9 graph, the term ‘tier I family or group

10 day care home’ means—

11 ‘‘(aa) a family or group day

12 care home that is located in a ge13 ographic area, as defined by the

14 Secretary based on census data,

15 in which at least 50 percent of

16 the children residing in the area

17 are members of households whose

18 incomes meet the income eligi19 bility guidelines for free or re20 duced price meals under section

21 9;

22 ‘‘(bb) a family or group day

23 care home that is located in an

24 area served by a school enrolling

25 elementary students in which at
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1 least 50 percent of the total num2 ber of children enrolled are cer3 tified eligible to receive free or

4 reduced price school meals under

5 this Act or the Child Nutrition

6 Act of 1966 (42 U.S.C. 1771 et

7 seq.); or

8 ‘‘(cc) a family or group day

9 care home that is operated by a

10 provider whose household meets

11 the income eligibility guidelines

12 for free or reduced price meals

13 under section 9 and whose in14 come is verified by the sponsor15 ing or organization of the home

16 under regulations established by

17 the Secretary.

18 ‘‘(II) REIMBURSEMENT.—Except

19 as provided in subclause (III), a tier

20 I family or group day care home shall

21 be provided reimbursement factors

22 under this clause without a require23 ment for documentation of the costs

24 described in clause (i), except that re25 imbursement shall not be provided
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1 under this subclause for meals or sup2 plements served to the children of a

3 person acting as a family or group

4 day care home provider unless the

5 children meet the income eligibility

6 guidelines for free or reduced price

7 meals under section 9.

8 ‘‘(III) FACTORS.—Except as pro9 vided in subclause (IV), the reim10 bursement factors applied to a home

11 referred to in subclause (II) shall be

12 the factors in effect on the date of en13 actment of this subclause.

14 ‘‘(IV) ADJUSTMENTS.—The re15 imbursement factors under this sub16 paragraph shall be adjusted on Au17 gust 1, 1996, July 1, 1997, and each

18 July 1 thereafter, to reflect changes in

19 the Consumer Price Index for food at

20 home for the most recent 12-month

21 period for which the data are avail22 able. The reimbursement factors

23 under this subparagraph shall be

24 rounded to the nearest lower cent in25 crement and based on the unrounded
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1 adjustment in effect on June 30 of

2 the preceding school year.

3 ‘‘(iii) TIER II FAMILY OR GROUP DAY

4 CARE HOMES.—

5 ‘‘(I) IN GENERAL.—

6 ‘‘(aa) FACTORS.—Except as

7 provided in subclause (II), with

8 respect to meals or supplements

9 served under this clause by a

10 family or group day care home

11 that does not meet the criteria

12 set forth in clause (ii)(I), the re13 imbursement factors shall be

14 $1.00 for lunches and suppers,

15 30 cents for breakfasts, and 15

16 cents for supplements.

17 ‘‘(bb) ADJUSTMENTS.—The

18 factors shall be adjusted on July

19 1, 1997, and each July 1 there20 after, to reflect changes in the

21 Consumer Price Index for food at

22 home for the most recent 12-

23 month period for which the data

24 are available. The reimbursement

25 factors under this item shall be
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1 rounded down to the nearest

2 lower cent increment and based

3 on the unrounded adjustment for

4 the preceding 12-month period.

5 ‘‘(cc) REIMBURSEMENT.—A

6 family or group day care home

7 shall be provided reimbursement

8 factors under this subclause with9 out a requirement for docu10 mentation of the costs described

11 in clause (i), except that reim12 bursement shall not be provided

13 under this subclause for meals or

14 supplements served to the chil15 dren of a person acting as a fam16 ily or group day care home pro17 vider unless the children meet the

18 income eligibility guidelines for

19 free or reduced price meals under

20 section 9.

21 ‘‘(II) OTHER FACTORS.—A fam22 ily or group day care home that does

23 not meet the criteria set forth in

24 clause (ii)(I) may elect to be provided

25 reimbursement factors determined in
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1 accordance with the following require2 ments:

3 ‘‘(aa) CHILDREN ELIGIBLE

4 FOR FREE OR REDUCED PRICE

5 MEALS.—In the case of meals or

6 supplements served under this

7 subsection to children who are

8 members of households whose in9 comes meet the income eligibility

10 guidelines for free or reduced

11 price meals under section 9, the

12 family or group day care home

13 shall be provided reimbursement

14 factors set by the Secretary in

15 accordance with clause (ii)(III).

16 ‘‘(bb) INELIGIBLE CHIL17 DREN.—In the case of meals or

18 supplements served under this

19 subsection to children who are

20 members of households whose in21 comes do not meet the income

22 eligibility guidelines, the family

23 or group day care home shall be

24 provided reimbursement factors

25 in accordance with subclause (I).
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1 ‘‘(III) INFORMATION AND DE2 TERMINATIONS.—

3 ‘‘(aa) IN GENERAL.—If a

4 family or group day care home

5 elects to claim the factors de6 scribed in subclause (II), the

7 family or group day care home

8 sponsoring organization serving

9 the home shall collect the nec10 essary income information, as de11 termined by the Secretary, from

12 any parent or other caretaker to

13 make the determinations speci14 fied in subclause (II) and shall

15 make the determinations in ac16 cordance with rules prescribed by

17 the Secretary.

18 ‘‘(bb) CATEGORICAL ELIGI19 BILITY.—In making a determina20 tion under item (aa), a family or

21 group day care home sponsoring

22 organization may consider a child

23 participating in or subsidized

24 under, or a child with a parent

25 participating in or subsidized
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1 under, a federally or State sup2 ported child care or other benefit

3 program with an income eligi4 bility limit that does not exceed

5 the eligibility standard for free or

6 reduced price meals under section

7 9 to be a child who is a member

8 of a household whose income

9 meets the income eligibility

10 guidelines under section 9.

11 ‘‘(cc) FACTORS FOR CHIL12 DREN ONLY.—A family or group

13 day care home may elect to re14 ceive the reimbursement factors

15 prescribed under clause (ii)(III)

16 solely for the children participat17 ing in a program referred to in

18 item (bb) if the home elects not

19 to have income statements col20 lected from parents or other care21 takers.

22 ‘‘(IV) SIMPLIFIED MEAL COUNT23 ING AND REPORTING PROCEDURES.—

24 The Secretary shall prescribe sim25 plified meal counting and reporting
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1 procedures for use by a family or

2 group day care home that elects to

3 claim the factors under subclause (II)

4 and by a family or group day care

5 home sponsoring organization that

6 sponsors the home. The procedures

7 the Secretary prescribes may include

8 1 or more of the following:

9 ‘‘(aa) Setting an annual per10 centage for each home of the

11 number of meals served that are

12 to be reimbursed in accordance

13 with the reimbursement factors

14 prescribed under clause (ii)(III)

15 and an annual percentage of the

16 number of meals served that are

17 to be reimbursed in accordance

18 with the reimbursement factors

19 prescribed under subclause (I),

20 based on the family income of

21 children enrolled in the home in a

22 specified month or other period.

23 ‘‘(bb) Placing a home into 1

24 of 2 or more reimbursement cat25 egories annually based on the
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1 percentage of children in the

2 home whose households have in3 comes that meet the income eligi4 bility guidelines under section 9,

5 with each such reimbursement

6 category carrying a set of reim7 bursement factors such as the

8 factors prescribed under clause

9 (ii)(III) or subclause (I) or fac10 tors established within the range

11 of factors prescribed under clause

12 (ii)(III) and subclause (I).

13 ‘‘(cc) Such other simplified

14 procedures as the Secretary may

15 prescribe.

16 ‘‘(V) MINIMUM VERIFICATION

17 REQUIREMENTS.—The Secretary may

18 establish any necessary minimum ver19 ification requirements.’’.

20 (2) GRANTS TO STATES TO PROVIDE ASSIST21 ANCE TO FAMILY OR GROUP DAY CARE HOMES.—

22 Section 17(f)(3) of the Act is amended by adding at

23 the end the following:
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1 ‘‘(D) GRANTS TO STATES TO PROVIDE AS2 SISTANCE TO FAMILY OR GROUP DAY CARE

3 HOMES.—

4 ‘‘(i) IN GENERAL.—

5 ‘‘(I) RESERVATION.—From

6 amounts made available to carry out

7 this section, the Secretary shall re8 serve $5,000,000 of the amount made

9 available for fiscal year 1996.

10 ‘‘(II) PURPOSE.—The Secretary

11 shall use the funds made available

12 under subclause (I) to provide grants

13 to States for the purpose of provid14 ing—

15 ‘‘(aa) assistance, including

16 grants, to family and day care

17 home sponsoring organizations

18 and other appropriate organiza19 tions, in securing and providing

20 training, materials, automated

21 data processing assistance, and

22 other assistance for the staff of

23 the sponsoring organizations; and

24 ‘‘(bb) training and other as25 sistance to family and group day
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1 care homes in the implementation

2 of the amendment to subpara3 graph (A) made by section

4 808(d)(1) of the Personal Re5 sponsibility and Work Oppor6 tunity Act of 1996.

7 ‘‘(ii) ALLOCATION.—The Secretary

8 shall allocate from the funds reserved

9 under clause (i)(I)—

10 ‘‘(I) $30,000 in base funding to

11 each State; and

12 ‘‘(II) any remaining amount

13 among the States, based on the num14 ber of family day care homes partici15 pating in the program in a State dur16 ing fiscal year 1994 as a percentage

17 of the number of all family day care

18 homes participating in the program

19 during fiscal year 1994.

20 ‘‘(iii) RETENTION OF FUNDS.—Of the

21 amount of funds made available to a State

22 for fiscal year 1996 under clause (i), the

23 State may retain not to exceed 30 percent

24 of the amount to carry out this subpara25 graph.
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1 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

2 payments received under this subpara3 graph shall be in addition to payments

4 that a State receives under subparagraph

5 (A).’’.

6 (3) PROVISION OF DATA.—Section 17(f)(3) of

7 the Act, as amended by paragraph (2), is further

8 amended by adding at the end the following:

9 ‘‘(E) PROVISION OF DATA TO FAMILY OR

10 GROUP DAY CARE HOME SPONSORING ORGANI11 ZATIONS.—

12 ‘‘(i) CENSUS DATA.—The Secretary

13 shall provide to each State agency admin14 istering a child care food program under

15 this section data from the most recent de16 cennial census survey or other appropriate

17 census survey for which the data are avail18 able showing which areas in the State meet

19 the requirements of subparagraph

20 (A)(ii)(I)(aa). The State agency shall pro21 vide the data to family or group day care

22 home sponsoring organizations located in

23 the State.

24 ‘‘(ii) SCHOOL DATA.—
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1 ‘‘(I) IN GENERAL.—A State

2 agency administering the school lunch

3 program under this Act or the school

4 breakfast program under the Child

5 Nutrition Act of 1966 (42 U.S.C.

6 1771 et seq.) shall provide to ap7 proved family or group day care home

8 sponsoring organizations a list of

9 schools serving elementary school chil10 dren in the State in which not less

than 1 11 ⁄2 of the children enrolled are

12 certified to receive free or reduced

13 price meals. The State agency shall

14 collect the data necessary to create

15 the list annually and provide the list

16 on a timely basis to any approved

17 family or group day care home spon18 soring organization that requests the

19 list.

20 ‘‘(II) USE OF DATA FROM PRE21 CEDING SCHOOL YEAR.—In determin22 ing for a fiscal year or other annual

23 period whether a home qualifies as a

24 tier I family or group day care home

25 under subparagraph (A)(ii)(I), the
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1 State agency administering the pro2 gram under this section, and a family

3 or group day care home sponsoring

4 organization, shall use the most cur5 rent available data at the time of the

6 determination.

7 ‘‘(iii) DURATION OF DETERMINA8 TION.—For purposes of this section, a de9 termination that a family or group day

10 care home is located in an area that quali11 fies the home as a tier I family or group

12 day care home (as the term is defined in

13 subparagraph (A)(ii)(I)), shall be in effect

14 for 3 years (unless the determination is

15 made on the basis of census data, in which

16 case the determination shall remain in ef17 fect until more recent census data are

18 available) unless the State agency deter19 mines that the area in which the home is

20 located no longer qualifies the home as a

21 tier I family or group day care home.’’.

22 (4) CONFORMING AMENDMENTS.—Section 17(c)

23 of the Act is amended by inserting ‘‘except as pro24 vided in subsection (f)(3),’’ after ‘‘For purposes of
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1 this section,’’ each place it appears in paragraphs

2 (1), (2), and (3).

3 (f) REIMBURSEMENT.—Section 17(f) of the Act is

4 amended—

5 (1) in paragraph (3)—

6 (A) in subparagraph (B), by striking the

7 third and fourth sentences; and

8 (B) in subparagraph (C)—

9 (i) in clause (i)—

10 (I) by striking ‘‘(i)’’;

11 (II) in the first sentence, by

12 striking ‘‘and expansion funds’’ and

13 all that follows through ‘‘rural areas’’;

14 (III) by striking the second sen15 tence; and

16 (IV) by striking ‘‘and expansion

17 funds’’ each place it appears; and

18 (ii) by striking clause (ii); and

19 (2) by striking paragraph (4).

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), (3), and (4) of subsection (f) shall

12 become effective on August 1, 1996.

13 (3) REGULATIONS.—

14 (A) INTERIM REGULATIONS.—Not later

15 than February 1, 1996, the Secretary shall

16 issue interim regulations to implement—

17 (i) the amendments made by para18 graphs (1), (3), and (4) of subsection (f);

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 August 1, 1996, 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 July 31, 1996,

22 and July 31, 1997;

23 (B) the number of family day care homes

24 licensed, certified, registered, or approved for
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1 service on July 31, 1996, and July 31, 1997;

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. 811. 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. 812. REDUCTION OF PAPERWORK.

19 Section 19 of the National School Lunch Act (42

20 U.S.C. 1769a) is repealed.

21 SEC. 813. 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. 814. 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. 815. INFORMATION CLEARINGHOUSE.

6 Section 26 of the National School Lunch Act (42

7 U.S.C. 1769g) is repealed.

8 Subtitle B—Child Nutrition Act of

9 1966

10 SEC. 821. SPECIAL MILK PROGRAM.

11 (a) DEFINITION.—Section 3(a)(3) of the Child Nutri12 tion Act of 1966 (42 U.S.C. 1772(a)(3)) is amended by

13 striking ‘‘the Trust Territory of the Pacific Islands’’ and

14 inserting ‘‘the Commonwealth of the Northern Mariana

15 Islands’’.

16 (b) ADJUSTMENTS TO REIMBURSEMENTS.—

17 (1) IN GENERAL.—Section 3(a) of the Act is

18 amended by striking paragraph (8) and inserting the

19 following:

20 ‘‘(8) ADJUSTMENTS.—

21 ‘‘(A) IN GENERAL.—Except as otherwise

22 provided in this paragraph, in the case of each

23 school year, the Secretary shall—

24 ‘‘(i) base the adjustment made under

25 paragraph (7) on the amount of the
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1 unrounded adjustment for the preceding

2 school year;

3 ‘‘(ii) adjust the resulting amount in

4 accordance with paragraph (7); and

5 ‘‘(iii) round the result to the nearest

6 lower cent increment.

7 ‘‘(B) ADJUSTMENT FOR 12-MONTH PERIOD

8 BEGINNING JULY 1, 1996.—In the case of the

9 12-month period beginning July 1, 1996, the

10 minimum rate shall be the same as the mini11 mum rate in effect on June 30, 1996, rounded

12 to the nearest lower cent increment.

13 ‘‘(C) ADJUSTMENT FOR SCHOOL YEAR BE14 GINNING JULY 1, 1997.—In the case of the

15 school year beginning July 1, 1997, the Sec16 retary shall—

17 ‘‘(i) base the adjustment made under

18 paragraph (7) on the amount of the

19 unrounded adjustment for the minimum

20 rate for the school year beginning July 1,

21 1996;

22 ‘‘(ii) adjust the resulting amount to

23 reflect changes in the Producer Price

24 Index for Fresh Processed Milk published

25 by the Bureau of Labor Statistics of the
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1 Department of Labor for the most recent

2 12-month period for which the data are

3 available; and

4 ‘‘(iii) round the result to the nearest

5 lower cent increment.’’.

6 (2) EFFECTIVE DATE.—The amendment made

7 by paragraph (1) shall become effective on July 1,

8 1996.

9 SEC. 822. REIMBURSEMENT RATES FOR FREE AND RE10 DUCED PRICE BREAKFASTS.

11 (a) IN GENERAL.—Section 4(b) of the Child Nutri12 tion Act of 1966 (42 U.S.C. 1773(b)) is amended—

13 (1) in paragraph (1)(B)—

14 (A) in the first sentence, by striking ‘‘sec15 tion 11(a)’’ and inserting ‘‘subparagraphs (B)

16 through (D) of section 11(a)(3)’’; and

17 (B) in the second sentence, by striking ‘‘,

18 adjusted to the nearest one-fourth cent’’ and in19 serting ‘‘(as adjusted pursuant to subpara20 graphs (B) through (D) of section 11(a)(3) of

21 the National School Lunch Act (42 U.S.C.

22 1759a(a)(3)))’’; and

23 (2) in paragraph (2)(B)(ii)—
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1 (A) by striking ‘‘nearest one-fourth cent’’

2 and inserting ‘‘nearest lower cent increment for

3 the applicable school year’’; and

4 (B) by inserting before the period at the

5 end the following: ‘‘, and the adjustment re6 quired by this clause shall be based on the

7 unrounded adjustment for the preceding school

8 year’’.

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

10 subsection (a) shall become effective on July 1, 1996.

11 SEC. 823. FREE AND REDUCED PRICE POLICY STATEMENT.

12 Section 4(b)(1) of the Child Nutrition Act of 1966

13 (42 U.S.C. 1773(b)(1)) is amended by adding at the end

14 the following:

15 ‘‘(E) FREE AND REDUCED PRICE POLICY

16 STATEMENT.—After the initial submission, a

17 school shall not be required to submit a free

18 and reduced price policy statement to a State

19 educational agency under this Act unless there

20 is a substantive change in the free and reduced

21 price policy of the school. A routine change in

22 the policy of a school, such as an annual adjust23 ment of the income eligibility guidelines for free

24 and reduced price meals, shall not be sufficient
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1 cause for requiring the school to submit a policy

2 statement.’’.

3 SEC. 824. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

4 (a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD

5 PREPARATION.—Section 4(e)(1) of the Child Nutrition

6 Act of 1966 (42 U.S.C. 1773(e)(1)) is amended—

7 (1) in subparagraph (A), by striking ‘‘(A)’’; and

8 (2) by striking subparagraph (B).

9 (b) EXPANSION OF PROGRAM; STARTUP AND EXPAN10 SION COSTS.—

11 (1) IN GENERAL.—Section 4 of the Act is

12 amended by striking subsections (f) and (g).

13 (2) EFFECTIVE DATE.—The amendments made

14 by paragraph (1) shall become effective on October

15 1, 1996.

16 SEC. 825. STATE ADMINISTRATIVE EXPENSES.

17 (a) USE OF FUNDS FOR COMMODITY DISTRIBUTION

18 ADMINISTRATION; STUDIES.—Section 7 of the Child Nu19 trition Act of 1966 (42 U.S.C. 1776) is amended—

20 (1) by striking subsections (e) and (h); and

21 (2) by redesignating subsections (f), (g), and (i)

22 as subsections (e), (f), and (g), respectively.

23 (b) APPROVAL OF CHANGES.—Section 7(e) of the

24 Act, as so redesignated, is amended—
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1 (1) by striking ‘‘each year an annual plan’’ and

2 inserting ‘‘the initial fiscal year a plan’’; and

3 (2) by adding at the end the following: ‘‘After

4 submitting the initial plan, a State shall only be re5 quired to submit to the Secretary for approval a

6 substantive change in the plan.’’.

7 SEC. 826. REGULATIONS.

8 Section 10 of the Child Nutrition Act of 1966 (42

9 U.S.C. 1779) is amended—

10 (1) in subsection (b)—

11 (A) in paragraph (1), by striking ‘‘(1)’’;

12 and

13 (B) by striking paragraphs (2) through

14 (4); and

15 (2) in subsection (c)—

16 (A) by striking ‘‘may’’ and inserting

17 ‘‘shall’’;

18 (B) by inserting ‘‘, except the program au19 thorized under section 17,’’ after ‘‘under this

20 Act’’; and

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

22 ‘‘Such regulations shall prohibit the transfer of

23 funds that are used to support meals served to

24 children with incomes below the income eligi25 bility criteria for free or reduced price meals, as
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1 provided in section 9(b) of the National School

2 Lunch Act.’’.

3 SEC. 827. PROHIBITIONS.

4 Section 11(a) of the Child Nutrition Act of 1966 (42

5 U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec6 retary nor the State shall’’ and inserting ‘‘the Secretary

7 shall not’’.

8 SEC. 828. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

9 Section 15 of the Child Nutrition Act of 1966 (42

10 U.S.C. 1784) is amended—

11 (1) in paragraph (1), by striking ‘‘the Trust

12 Territory of the Pacific Islands’’ and inserting ‘‘the

13 Commonwealth of the Northern Mariana Islands’’;

14 and

15 (2) in the first sentence of paragraph (3)—

16 (A) in subparagraph (A), by inserting

17 ‘‘and’’ at the end; and

18 (B) by striking ‘‘, and (C)’’ and all that

19 follows through ‘‘Governor of Puerto Rico’’.

20 SEC. 829. ACCOUNTS AND RECORDS.

21 The second sentence of section 16(a) of the Child Nu22 trition Act of 1966 (42 U.S.C. 1785(a)) is amended by

23 striking ‘‘at all times be available’’ and inserting ‘‘be avail24 able at any reasonable time’’.
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1 SEC. 830. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

2 FOR WOMEN, INFANTS, AND CHILDREN.

3 (a) DEFINITIONS.—Section 17(b) of the Child Nutri4 tion Act of 1966 (42 U.S.C. 1786(b)) is amended—

5 (1) in paragraph (15)(B)(iii), by inserting ‘‘of

6 not more than 90 days’’ after ‘‘accommodation’’;

7 and

8 (2) in paragraph (16)—

9 (A) in subparagraph (A), by adding ‘‘and’’

10 at the end; and

11 (B) in subparagraph (B), by striking ‘‘;

12 and’’ and inserting a period; and

13 (C) by striking subparagraph (C).

14 (b) SECRETARY’S PROMOTION OF WIC.—Section

15 17(c) of the Act is amended by striking paragraph (5).

16 (c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the

17 Act is amended by striking paragraph (4).

18 (d) NUTRITION EDUCATION AND DRUG ABUSE EDU19 CATION.—Section 17(e) of the Act is amended—

20 (1) in the first sentence of paragraph (1), by

21 striking ‘‘shall ensure’’ and all that follows through

22 ‘‘is provided’’ and inserting ‘‘shall provide nutrition

23 education and may provide drug abuse education’’;

24 (2) in paragraph (2), by striking the third sen25 tence;
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1 (3) by striking paragraph (4) and inserting the

2 following:

3 ‘‘(4) INFORMATION.—The State agency may

4 provide a local agency with materials describing

5 other programs for which participants in the pro6 gram may be eligible.’’;

7 (4) in paragraph (5), by striking ‘‘The State’’

8 and all that follows through ‘‘local agency shall’’ and

9 inserting ‘‘A local agency may’’; and

10 (5) by striking paragraph (6).

11 (e) STATE PLAN.—Section 17(f) of the Act is amend12 ed—

13 (1) in paragraph (1)—

14 (A) in subparagraph (A)—

15 (i) by striking ‘‘annually to the Sec16 retary, by a date specified by the Sec17 retary, a’’ and inserting ‘‘to the Secretary,

18 by a date specified by the Secretary, an

19 initial’’; and

20 (ii) by adding at the end the follow21 ing: ‘‘After submitting the initial plan, a

22 State shall only be required to submit to

23 the Secretary for approval a substantive

24 change in the plan.’’;

25 (B) in subparagraph (C)—
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1 (i) by striking clause (iii) and insert2 ing the following:

3 ‘‘(iii) a plan to coordinate operations under the

4 program with other services or programs that may

5 benefit participants in, and applicants for, the pro6 gram;’’;

7 (ii) in clause (vi), by inserting after

8 ‘‘in the State’’ the following: ‘‘(including a

9 plan to improve access to the program for

10 participants and prospective applicants

11 who are employed, or who reside in rural

12 areas)’’;

13 (iii) by striking clauses (vii), (ix), (x),

14 and (xii);

15 (iv) in clause (xiii), by striking ‘‘may

16 require’’ and inserting ‘‘may reasonably re17 quire’’; and

18 (v) by redesignating clauses (viii),

19 (xi), and (xiii), as so amended, as clauses

20 (vii), (viii), and (ix), respectively;

21 (C) by striking subparagraph (D); and

22 (D) by redesignating subparagraph (E) as

23 subparagraph (D);

24 (2) by striking paragraphs (2), (6), (8), (20),

25 (22), and (24);
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1 (3) in the second sentence of paragraph (5), by

2 striking ‘‘at all times be available’’ and inserting ‘‘be

3 available at any reasonable time’’;

4 (4) in paragraph (9)(B), by striking the second

5 sentence;

6 (5) in the first sentence of paragraph (11), by

7 striking ‘‘, including standards that will ensure suffi8 cient State agency staff’’;

9 (6) in paragraph (12), by striking the third sen10 tence;

11 (7) in paragraph (14), by striking ‘‘shall’’ and

12 inserting ‘‘may’’;

13 (8) in paragraph (17), by striking ‘‘and to ac14 commodate’’ and all that follows through ‘‘facili15 ties’’;

16 (9) in paragraph (19), by striking ‘‘shall’’ and

17 inserting ‘‘may’’; and

18 (10) by redesignating paragraphs (3), (4), (5),

19 (7), (9) through (19), (21), and (23), as so amend20 ed, as paragraphs (2), (3), (4), (5), (6) through

21 (16), (17), and (18), respectively.

22 (f) INFORMATION.—Section 17(g) of the Act is

23 amended—
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1 (1) in paragraph (5), by striking ‘‘the report re2 quired under subsection (d)(4)’’ and inserting ‘‘re3 ports on program participant characteristics’’; and

4 (2) by striking paragraph (6).

5 (g) PROCUREMENT OF INFANT FORMULA.—

6 (1) IN GENERAL.—Section 17(h) of the Act is

7 amended—

8 (A) in paragraph (4)(E), by striking ‘‘and,

9 on’’ and all that follows through ‘‘(d)(4)’’;

10 (B) in paragraph (8)—

11 (i) by striking subparagraphs (A),

12 (C), and (M);

13 (ii) in subparagraph (G)—

14 (I) in clause (i), by striking ‘‘(i)’’;

15 and

16 (II) by striking clauses (ii)

17 through (ix);

18 (iii) in subparagraph (I), by striking

19 ‘‘Secretary—’’ and all that follows through

20 ‘‘(v) may’’ and inserting ‘‘Secretary may’’;

21 (iv) by redesignating subparagraphs

22 (B) and (D) through (L) as subparagraphs

23 (A) and (B) through (J), respectively;

24 (v) in subparagraph (A)(i), as so re25 designated, by striking ‘‘subparagraphs
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1 (C), (D), and (E)(iii), in carrying out sub2 paragraph (A),’’ and inserting ‘‘subpara3 graphs (B) and (C)(iii),’’;

4 (vi) in subparagraph (B)(i), as so re5 designated, by striking ‘‘subparagraph

6 (B)’’ each place it appears and inserting

7 ‘‘subparagraph (A)’’; and

8 (vii) in subparagraph (C)(iii), as so

9 redesignated, by striking ‘‘subparagraph

10 (B)’’ and inserting ‘‘subparagraph (A)’’;

11 and

12 (C) in paragraph (10)(A), by striking

13 ‘‘shall’’ and inserting ‘‘may’’.

14 (2) APPLICATION.—The amendments made by

15 paragraph (1) shall not apply to a contract for the

16 procurement of infant formula under section

17 17(h)(8) of the Act that is in effect on the effective

18 date of this subsection.

19 (h) NATIONAL ADVISORY COUNCIL ON MATERNAL,

20 INFANT, AND FETAL NUTRITION.—Section 17(k)(3) of

21 the Act is amended by striking ‘‘Secretary shall designate’’

22 and inserting ‘‘Council shall elect’’.

23 (i) COMPLETED STUDY; COMMUNITY COLLEGE DEM24 ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS-
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1 TEM.—Section 17 of the Act is amended by striking sub2 sections (n), (o), and (p).

3 (j) DISQUALIFICATION OF VENDORS WHO ARE DIS4 QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Sec5 tion 17 of the Act, as so amended, is further amended

6 by adding at the end the following:

7 ‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE

8 DISQUALIFIED UNDER THE FOOD STAMP PROGRAM.—

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

10 regulations providing criteria for the disqualification

11 under this section of an approved vendor that is dis12 qualified from accepting benefits under the food

13 stamp program established under the Food Stamp

14 Act of 1977 (7 U.S.C. 2011 et seq.).

15 ‘‘(2) TERMS.—A disqualification under para16 graph (1)—

17 ‘‘(A) shall be for the same period as the

18 disqualification from the program referred to in

19 paragraph (1);

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

21 disqualification from the program referred to in

22 paragraph (1); and

23 ‘‘(C) shall not be subject to judicial or ad24 ministrative review.’’.
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1 SEC. 831. CASH GRANTS FOR NUTRITION EDUCATION.

2 Section 18 of the Child Nutrition Act of 1966 (42

3 U.S.C. 1787) is repealed.

4 SEC. 832. NUTRITION EDUCATION AND TRAINING.

5 (a) FINDINGS.—Section 19 of the Child Nutrition

6 Act of 1966 (42 U.S.C. 1788) is amended—

7 (1) in subsection (a), by striking ‘‘that—’’ and

8 all that follows through the period at the end and

9 inserting ‘‘that effective dissemination of scientif10 ically valid information to children participating or

11 eligible to participate in the school lunch and related

12 child nutrition programs should be encouraged.’’;

13 and

14 (2) in subsection (b), by striking ‘‘encourage’’

15 and all that follows through ‘‘establishing’’ and in16 serting ‘‘establish’’.

17 (b) USE OF FUNDS.—Section 19(f) of the Act is

18 amended—

19 (1) in paragraph (1)—

20 (A) by striking subparagraph (B); and

21 (B) in subparagraph (A)—

22 (i) by striking ‘‘(A)’’;

23 (ii) by striking clauses (ix) through

24 (xix);
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1 (iii) by redesignating clauses (i)

2 through (viii) and (xx) as subparagraphs

3 (A) through (H) and (I), respectively; and

4 (iv) in subparagraph (H), as so redes5 ignated, by inserting ‘‘and’’ at the end;

6 (2) by striking paragraphs (2) and (4); and

7 (3) by redesignating paragraph (3) as para8 graph (2).

9 (c) ACCOUNTS, RECORDS, AND REPORTS.—The sec10 ond sentence of section 19(g)(1) of the Act is amended

11 by striking ‘‘at all times be available’’ and inserting ‘‘be

12 available at any reasonable time’’.

13 (d) STATE COORDINATORS FOR NUTRITION; STATE

14 PLAN.—Section 19(h) of the Act is amended—

15 (1) in the second sentence of paragraph (1)—

16 (A) by striking ‘‘as provided in paragraph

17 (2) of this subsection’’; and

18 (B) by striking ‘‘as provided in paragraph

19 (3) of this subsection’’;

20 (2) in paragraph (2), by striking the second

21 and third sentences; and

22 (3) by striking paragraph (3).

23 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

24 19(i) of the Act is amended—
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1 (1) in the first sentence of paragraph (2)(A), by

2 striking ‘‘and each succeeding fiscal year’’;

3 (2) by redesignating paragraphs (3) and (4) as

4 paragraphs (4) and (5), respectively; and

5 (3) by inserting after paragraph (2) the follow6 ing:

7 ‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

8 ‘‘(A) IN GENERAL.—There are authorized

9 to be appropriated to carry out this section

10 $10,000,000 for each of fiscal years 1997

11 through 2002.

12 ‘‘(B) GRANTS.—

13 ‘‘(i) IN GENERAL.—Grants to each

14 State from the amounts made available

15 under subparagraph (A) shall be based on

16 a rate of 50 cents for each child enrolled

17 in schools or institutions within the State,

18 except that no State shall receive an

19 amount less than $75,000 per fiscal year.

20 ‘‘(ii) INSUFFICIENT FUNDS.—If the

21 amount made available for any fiscal year

22 is insufficient to pay the amount to which

23 each State is entitled under clause (i), the

24 amount of each grant shall be ratably re25 duced.’’.
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1 (f) ASSESSMENT.—Section 19 of the Act is amended

2 by striking subsection (j).

3 (g) EFFECTIVE DATE.—The amendments made by

4 subsection (e) shall become effective on October 1, 1996.

5 SEC. 833. BREASTFEEDING PROMOTION PROGRAM.

6 Section 21 of the Child Nutrition Act of 1966 (42

7 U.S.C. 1790) is repealed.

8 TITLE IX—FOOD STAMP PRO9 GRAM AND RELATED PRO10 GRAMS

11 SEC. 901. DEFINITION OF CERTIFICATION PERIOD.

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

13 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro14 vided’’ and all that follows and inserting the following:

15 ‘‘The certification period shall not exceed 12 months, ex16 cept that the certification period may be up to 24 months

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

18 State agency shall have at least 1 contact with each cer19 tified household every 12 months.’’.

20 SEC. 902. EXPANDED DEFINITION OF ‘‘COUPON’’.

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

22 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi23 cate’’ and inserting ‘‘type of certificate, authorization

24 cards, cash or checks issued in lieu of coupons or access
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1 devices, including, but not limited to, electronic benefit

2 transfer cards and personal identification numbers’’.

3 SEC. 903. TREATMENT OF CHILDREN LIVING AT HOME.

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

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

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

7 children or married and living with their spouses)’’.

8 SEC. 904. ADJUSTMENT OF THRIFTY FOOD PLAN.

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

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

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

12 the following:

13 ‘‘shall—

14 ‘‘(1) make’’;

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

16 the following:

17 ‘‘scale;

18 ‘‘(2) make’’;

19 (3) by striking ‘‘Alaska, (3) make’’ and insert20 ing the following:

21 ‘‘Alaska;

22 ‘‘(3) make’’; and

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

24 that follows through the end of the subsection and

25 inserting the following:
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1 ‘‘Columbia; and

2 ‘‘(4) on October 1, 1996, and each October 1

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

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

5 the result to the nearest lower dollar increment for

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

7 the Secretary may not reduce the cost of the diet in

8 effect on September 30, 1996.’’.

9 SEC. 905. DEFINITION OF HOMELESS INDIVIDUAL.

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

11 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

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

13 SEC. 906. INCOME EXCLUSIONS.

14 (a) EXCLUSION OF CERTAIN JTPA INCOME.—Sec15 tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)

16 is amended—

17 (1) in subsection (d)—

18 (A) by striking ‘‘and (16)’’ and inserting

19 ‘‘(16)’’; and

20 (B) by inserting before the period at the

21 end the following: ‘‘, and (17) income received

22 under the Job Training Partnership Act (29

23 U.S.C. 1501 et seq.) by a household member

24 who is less than 19 years of age’’; and
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1 (2) in subsection (l), by striking ‘‘under section

2 204(b)(1)(C)’’ and all that follows and inserting

3 ‘‘shall be considered earned income for purposes of

4 the food stamp program.’’.

5 (b) EXCLUSION OF LIFE INSURANCE POLICIES.—

6 Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.

7 2014(g)) is amended by adding at the end the following:

8 ‘‘(6) The Secretary shall exclude from financial re9 sources the cash value of any life insurance policy owned

10 by a member of a household.’’.

11 (c) IN-TANDEM EXCLUSIONS FROM INCOME.—Sec12 tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)

13 is amended by adding at the end the following:

14 ‘‘(n) Whenever a Federal statute enacted after the

15 date of the enactment of this Act excludes funds from in16 come for purposes of determining eligibility, benefit levels,

17 or both under State plans approved under part A of title

18 IV of the Social Security Act, then such funds shall be

19 excluded from income for purposes of determining eligi20 bility, benefit levels, or both, respectively, under the food

21 stamp program of households all of whose members re22 ceive benefits under a State plan approved under part A

23 of title IV of the Social Security Act.’’.
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1 SEC. 907. DEDUCTIONS FROM INCOME.

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

3 U.S.C. 2014(e)) is amended—

4 (1) in the 1st sentence—

5 (A) by striking ‘‘$85’’ and inserting

6 ‘‘$134’’;

7 (B) by striking ‘‘$145, $120, $170, and

8 $75, respectively’’ and inserting the following:

9 ‘‘$229, $189, $269, and $118, respectively, for fiscal year

10 1996; and a standard deduction of $120 a month for each

11 household, except that households in Alaska, Hawaii,

12 Guam, and the Virgin Islands of the United States shall

13 be allowed a standard deduction of $200, $165, $234, and

14 $103, respectively, for fiscal years thereafter, adjusted in

15 accordance with this subsection’’;

16 (2) in the 2nd sentence by striking ‘‘Such’’ and

17 all that follows through ‘‘each October 1 thereafter,’’

18 and inserting ‘‘On October 1, 2001, and on each Oc19 tober 1 thereafter, such standard deductions shall be

20 adjusted’’;

21 (3) by striking the 14th sentence; and

22 (4) by inserting after the 9th sentence the fol23 lowing:

24 ‘‘A State agency may make use of a standard utility allow25 ance mandatory for all households with qualifying utility

26 costs if the State agency has developed 1 or more stand-
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1 ards that include the cost of heating and cooling and 1

2 or more standards that do not include the cost of heating

3 and cooling, and if the Secretary finds that the standards

4 will not result in an increased cost to the Secretary. A

5 State agency that has not made the use of a standard util6 ity allowance mandatory shall allow a household to switch,

7 at the end of a certification period, between the standard

8 utility allowance and a deduction based on the actual util9 ity costs of the household.’’.

10 SEC. 908. VEHICLE ALLOWANCE.

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

12 U.S.C. 2014(g)(2)) is amended to read as follows:

13 ‘‘(2) INCLUDED ASSETS.—

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

15 provisions of this paragraph, the Secretary

16 shall, in prescribing inclusions in, and exclu17 sions from, financial resources, follow the regu18 lations in force as of June 1, 1982 (other than

19 those relating to licensed vehicles and inacces20 sible resources).

21 ‘‘(B) ADDITIONAL INCLUDED ASSETS.—

22 The Secretary shall include in financial re23 sources—

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

25 used for recreational purposes;
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1 ‘‘(ii) any vacation home;

2 ‘‘(iii) any mobile home used primarily

3 for vacation purposes;

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

5 licensed vehicle that is used for household

6 transportation or to obtain or continue em7 ployment to the extent that the fair market

8 value of the vehicle exceeds a level set by

9 the Secretary, which shall be $4,600 begin10 ning October 1, 1995, and adjusted on

11 each October 1 thereafter to reflect

12 changes in the new car component of the

13 Consumer Price Index for All Urban Con14 sumers published by the Bureau of Labor

15 Statistics for the 12-month period ending

16 on June 30 preceding the date of such ad17 justment and rounded to the nearest $50;

18 and

19 ‘‘(v) any savings or retirement ac20 count (including an individual account), re21 gardless of whether there is a penalty for

22 early withdrawal.

23 ‘‘(C) EXCLUDED VEHICLES.—A vehicle

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

25 extent the property is directly related to the
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1 maintenance or use of the vehicle) shall not be

2 included in financial resources under this para3 graph if the vehicle is—

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

5 ‘‘(ii) necessary for the transportation

6 of a physically disabled household member;

7 or

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

9 carry fuel for heating or water for home

10 use and provides the primary source of fuel

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

12 SEC. 909. VENDOR PAYMENTS FOR TRANSITIONAL HOUS13 ING COUNTED AS INCOME.

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

15 U.S.C. 2014(k)(2)) is amended—

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

17 (2) by redesignating subparagraphs (G) and

18 (H) as subparagraphs (F) and (G), respectively.

19 SEC. 910. INCREASED PENALTIES FOR VIOLATING FOOD

20 STAMP PROGRAM REQUIREMENTS.

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

22 U.S.C. 2015(b)(1)) is amended—

23 (1) in clause (i)—

24 (A) by striking ‘‘six months’’ and inserting

25 ‘‘1 year’’; and
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1 (B) by adding ‘‘and’’ at the end; and

2 (2) striking clauses (ii) and (iii) and inserting

3 the following:

4 ‘‘(ii) permanently upon—

5 ‘‘(I) the second occasion of any such deter6 mination; or

7 ‘‘(II) the first occasion of a finding by a

8 Federal, State, or local court of the trading of

9 a controlled substance (as defined in section

10 102 of the Controlled Substances Act (21

11 U.S.C. 802)), firearms, ammunition, or explo12 sives for coupons.’’.

13 SEC. 911. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

14 Section 6(b)(1)(ii) of the Food Stamp Act of 1977

15 (7 U.S.C. 2015(b)(1)(iii)), as amended by section 910, is

16 amended—

17 (1) in subclause (I), by striking ‘‘or’’ at the

18 end;

19 (2) in subclause (II), by striking the period at

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

21 (3) by inserting after subclause (II) the follow22 ing:

23 ‘‘(IV) a conviction of an offense under sub24 section (b) or (c) of section 15 involving an
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1 item covered by subsection (b) or (c) of section

2 15 having a value of $500 or more.’’.

3 SEC. 912. DISQUALIFICATION.

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

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

6 ‘‘(d)(1) Unless otherwise exempted by the provisions’’ and

7 all that follows through paragraph (1) and inserting the

8 following:

9 ‘‘(d) CONDITIONS OF PARTICIPATION.—

10 ‘‘(1) WORK REQUIREMENTS.—

11 ‘‘(A) IN GENERAL.—No physically and

12 mentally fit individual over the age of 15 and

13 under the age of 60 shall be eligible to partici14 pate in the food stamp program if the individ15 ual—

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

17 and every 12 months thereafter, to register

18 for employment in a manner prescribed by

19 the Secretary;

20 ‘‘(ii) refuses without good cause to

21 participate in an employment and training

22 program under paragraph (4), to the ex23 tent required by the State agency;

24 ‘‘(iii) refuses without good cause to

25 accept an offer of employment, at a site or
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1 plant not subject to a strike or lockout at

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

3 than the higher of—

4 ‘‘(I) the applicable Federal or

5 State minimum wage; or

6 ‘‘(II) 80 percent of the wage that

7 would have governed had the mini8 mum hourly rate under section

9 6(a)(1) of the Fair Labor Standards

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

11 been applicable to the offer of employ12 ment;

13 ‘‘(iv) refuses without good cause to

14 provide a State agency with sufficient in15 formation to allow the State agency to de16 termine the employment status or the job

17 availability of the individual;

18 ‘‘(v) voluntarily and without good

19 cause—

20 ‘‘(I) quits a job; or

21 ‘‘(II) reduces work effort and,

22 after the reduction, the individual is

23 working less than 30 hours per week;

24 or

25 ‘‘(vi) fails to comply with section 20.
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1 ‘‘(B) HOUSEHOLD INELIGIBILITY.—If an

2 individual who is the head of a household be3 comes ineligible to participate in the food stamp

4 program under subparagraph (A), the house5 hold shall, at the option of the State agency,

6 become ineligible to participate in the food

7 stamp program for a period, determined by the

8 State agency, that does not exceed the lesser

9 of—

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

11 the individual determined under subpara12 graph (C); or

13 ‘‘(ii) 180 days.

14 ‘‘(C) DURATION OF INELIGIBILITY.—

15 ‘‘(i) FIRST VIOLATION.—The first

16 time that an individual becomes ineligible

17 to participate in the food stamp program

18 under subparagraph (A), the individual

19 shall remain ineligible until the later of—

20 ‘‘(I) the date the individual be21 comes eligible under subparagraph

22 (A);

23 ‘‘(II) the date that is 1 month

24 after the date the individual became

25 ineligible; or
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1 ‘‘(III) a date determined by the

2 State agency that is not later than 3

3 months after the date the individual

4 became ineligible.

5 ‘‘(ii) SECOND VIOLATION.—The sec6 ond time that an individual becomes ineli7 gible to participate in the food stamp pro8 gram under subparagraph (A), the individ9 ual shall remain ineligible until the later

10 of—

11 ‘‘(I) the date the individual be12 comes eligible under subparagraph

13 (A);

14 ‘‘(II) the date that is 3 months

15 after the date the individual became

16 ineligible; or

17 ‘‘(III) a date determined by the

18 State agency that is not later than 6

19 months after the date the individual

20 became ineligible.

21 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA22 TION.—The third or subsequent time that

23 an individual becomes ineligible to partici24 pate in the food stamp program under sub-
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1 paragraph (A), the individual shall remain

2 ineligible until the later of—

3 ‘‘(I) the date the individual be4 comes eligible under subparagraph

5 (A);

6 ‘‘(II) the date that is 6 months

7 after the date the individual became

8 ineligible;

9 ‘‘(III) a date determined by the

10 State agency; or

11 ‘‘(IV) at the option of the State

12 agency, permanently.

13 ‘‘(D) ADMINISTRATION.—

14 ‘‘(i) GOOD CAUSE.—The Secretary

15 shall determine the meaning of good cause

16 for the purpose of this paragraph.

17 ‘‘(ii) VOLUNTARY QUIT.—The Sec18 retary shall determine the meaning of vol19 untarily quitting and reducing work effort

20 for the purpose of this paragraph.

21 ‘‘(iii) DETERMINATION BY STATE

22 AGENCY.—

23 ‘‘(I) IN GENERAL.—Subject to

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

25 a State agency shall determine—
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1 ‘‘(aa) the meaning of any

2 term in subparagraph (A);

3 ‘‘(bb) the procedures for de4 termining whether an individual

5 is in compliance with a require6 ment under subparagraph (A);

7 and

8 ‘‘(cc) whether an individual

9 is in compliance with a require10 ment under subparagraph (A).

11 ‘‘(II) NOT LESS RESTRICTIVE.—

12 A State agency may not determine a

13 meaning, procedure, or determination

14 under subclause (I) to be less restric15 tive than a comparable meaning, pro16 cedure, or determination under a

17 State program funded under part A of

18 title IV of the Social Security Act (42

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

20 ‘‘(iv) STRIKE AGAINST THE GOVERN21 MENT.—For the purpose of subparagraph

22 (A)(v), an employee of the Federal Govern23 ment, a State, or a political subdivision of

24 a State, who is dismissed for participating

25 in a strike against the Federal Govern-
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1 ment, the State, or the political subdivision

2 of the State shall be considered to have

3 voluntarily quit without good cause.

4 ‘‘(v) SELECTING A HEAD OF HOUSE5 HOLD.—

6 ‘‘(I) IN GENERAL.—For the pur7 pose of this paragraph, the State

8 agency shall allow the household to se9 lect any adult parent of a child in the

10 household as the head of the house11 hold if all adult household members

12 making application under the food

13 stamp program agree to the selection.

14 ‘‘(II) TIME FOR MAKING DES15 IGNATION.—A household may des16 ignate the head of the household

17 under subclause (I) each time the

18 household is certified for participation

19 in the food stamp program, but may

20 not change the designation during a

21 certification period unless there is a

22 change in the composition of the

23 household.

24 ‘‘(vi) CHANGE IN HEAD OF HOUSE25 HOLD.—If the head of a household leaves
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1 the household during a period in which the

2 household is ineligible to participate in the

3 food stamp program under subparagraph

4 (B)—

5 ‘‘(I) the household shall, if other6 wise eligible, become eligible to par7 ticipate in the food stamp program;

8 and

9 ‘‘(II) if the head of the household

10 becomes the head of another house11 hold, the household that becomes

12 headed by the individual shall become

13 ineligible to participate in the food

14 stamp program for the remaining pe15 riod of ineligibility.’’.

16 (b) CONFORMING AMENDMENT.—

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

18 the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2))

19 is amended by striking ‘‘6(d)(1)(i)’’ and inserting

20 ‘‘6(d)(1)(A)(i)’’.

21 (2) Section 20(f) of the Food Stamp Act of

22 1977 (7 U.S.C. 2029(f)) is amended to read as fol23 lows:

24 ‘‘(f) DISQUALIFICATION.—An individual or a house25 hold may become ineligible under section 6(d)(1) to par-
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1 ticipate in the food stamp program for failing to comply

2 with this section.’’.

3 SEC. 913. CARETAKER EXEMPTION.

4 Section 6(d)(2)(B) of the Food Stamp Act of 1977

5 (7 U.S.C. 2015(d)(2)(B)) is amended to read as follows:

6 ‘‘(B) a parent or other member of a household with re7 sponsibility for the care of (i) a dependent child under the

8 age of 6 or any lower age designated by the State agency

9 that is not under the age of 1, or (ii) an incapacitated

10 person;’’.

11 SEC. 914. EMPLOYMENT AND TRAINING.

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

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

14 (1) in subparagraph (D)—

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

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

17 days or less’’;

18 (B) in clause (ii), by striking ‘‘but with re19 spect’’ and all that follows through ‘‘child

20 care’’; and

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

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

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

24 be valid’’;
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1 (2) in subparagraph (E), by striking the third

2 sentence; AND

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

4 ‘‘(O) Notwithstanding any other provision of this

5 paragraph, the amount of Federal funds a State agency

6 uses in any fiscal year after fiscal year 1996 to carry out

7 this paragraph with respect to individuals who receive ben8 efits under a State plan approved under part A of title

9 IV of the Social Security Act (42 U.S.C. 601 et seq.) shall

10 not exceed the amount of Federal funds the State agency

11 used in fiscal year 1995 to carry out this paragraph with

12 respect to individuals who received benefits under such

13 plan.’’.

14 (b) FUNDING.—Section 16(h) of the Food Stamp Act

15 of 1977 (7 U.S.C. 2025(h)) is amended by striking

16 ‘‘(h)(1)(A) The Secretary’’ and all that follows through

17 the end of paragraph (1) and inserting the following:

18 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING

19 PROGRAMS.—

20 ‘‘(1) IN GENERAL.—

21 ‘‘(A) AMOUNTS.—To carry out employ22 ment and training programs, the Secretary

23 shall reserve for allocation to State agencies

24 from funds made available for each fiscal year

25 under section 18(a)(1) the amount of
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1 $150,000,000 for each of the fiscal years 1996

2 through 2002.

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

4 allocate the amounts reserved under subpara5 graph (A) among the State agencies using a

6 reasonable formula (as determined by the Sec7 retary) that gives consideration to the popu8 lation in each State affected by section 6(o).

9 ‘‘(C) REALLOCATION.—

10 ‘‘(i) NOTIFICATION.—A State agency

11 shall promptly notify the Secretary if the

12 State agency determines that the State

13 agency will not expend all of the funds al14 located to the State agency under subpara15 graph (B).

16 ‘‘(ii) REALLOCATION.—On notification

17 under clause (i), the Secretary shall reallo18 cate the funds that the State agency will

19 not expend as the Secretary considers ap20 propriate and equitable.

21 ‘‘(D) MINIMUM ALLOCATION.—Notwith22 standing subparagraphs (A) through (C), the

23 Secretary shall ensure that each State agency

24 operating an employment and training program
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1 shall receive not less than $50,000 in each fis2 cal year.’’.

3 (d) REPORTS.—Section 16(h) of the Food Stamp Act

4 of 1977 (7 U.S.C. 2025(h)) is amended—

5 (1) in paragraph (5)—

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

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

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

9 (2) by striking paragraph (6).

10 SEC. 915. COMPARABLE TREATMENT FOR DISQUALIFICA11 TION.

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

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

14 the following:

15 ‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA16 TION.—

17 ‘‘(1) IN GENERAL.—If a disqualification is im18 posed on a member of a household for a failure of

19 the member to perform an action required under a

20 Federal, State, or local law relating to a means-test21 ed public assistance program, the State agency may

22 impose the same disqualification on the member of

23 the household under the food stamp program.

24 ‘‘(2) RULES AND PROCEDURES.—If a disquali25 fication is imposed under paragraph (1) for a failure
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1 of an individual to perform an action required under

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

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

4 rules and procedures that apply under part A of title

5 IV of such Act to impose the same disqualification

6 under the food stamp program.

7 ‘‘(3) APPLICATION AFTER DISQUALIFICATION

8 PERIOD.—A member of a household disqualified

9 under paragraph (1) may, after the disqualification

10 period has expired, apply for benefits under this Act

11 and shall be treated as a new applicant, except that

12 a prior disqualification under subsection (d) shall be

13 considered in determining eligibility.’’.

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

15 Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—

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

17 end;

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

19 the end and inserting a semicolon; and

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

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

22 carrying out section 6(i); and’’.

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

24 of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A))
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1 is amended by striking ‘‘that is comparable to a require2 ment of paragraph (1)’’.

3 SEC. 916. DISQUALIFICATION FOR RECEIPT OF MULTIPLE

4 FOOD STAMP BENEFITS.

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

6 2015), as amended by section 915, is amended by adding

7 at the end the following:

8 ‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE

9 FOOD STAMP BENEFITS.—An individual shall be ineligible

10 to participate in the food stamp program as a member

11 of any household for a 10-year period if the individual is

12 found by a State agency to have made, or is convicted

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

14 statement or representation with respect to the identity

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

16 multiple benefits simultaneously under the food stamp

17 program.’’.

18 SEC. 917. DISQUALIFICATION OF FLEEING FELONS.

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

20 2015), as amended by sections 915 and 916, is amended

21 by adding at the end the following:

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

23 member of a household who is otherwise eligible to partici24 pate in the food stamp program shall be eligible to partici25 pate in the program as a member of that or any other
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1 household during any period during which the individual

2 is—

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

4 confinement after conviction, under the law of the

5 place from which the individual is fleeing, for a

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

7 under the law of the place from which the individual

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

9 high misdemeanor under the law of New Jersey; or

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

11 imposed under a Federal or State law.’’.

12 SEC. 918. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

14 2015), as amended by sections 915, 916, and 917, is

15 amended by adding at the end the following:

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

17 CHILD SUPPORT AGENCIES.—

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

19 agency, subject to paragraphs (2) and (3), no natu20 ral or adoptive parent or other individual (collec21 tively referred to in this subsection as ‘the individ22 ual’) who is living with and exercising parental con23 trol over a child under the age of 18 who has an ab24 sent parent shall be eligible to participate in the food

25 stamp program unless the individual cooperates with
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1 the State agency administering the program estab2 lished under part D of title IV of the Social Security

3 Act (42 U.S.C. 651 et seq.)—

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

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

6 ‘‘(B) in obtaining support for—

7 ‘‘(i) the child; or

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

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

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

11 good cause is found for refusing to cooperate, as de12 termined by the State agency in accordance with

13 standards prescribed by the Secretary in consulta14 tion with the Secretary of Health and Human Serv15 ices. The standards shall take into consideration cir16 cumstances under which cooperation may be against

17 the best interests of the child.

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

19 the payment of a fee or other cost for services pro20 vided under part D of title IV of the Social Security

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

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

23 CHILD SUPPORT AGENCIES.—

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

25 agency, subject to paragraphs (2) and (3), a puta-
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1 tive or identified noncustodial parent of a child

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

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

4 in the food stamp program if the individual refuses

5 to cooperate with the State agency administering the

6 program established under part D of title IV of the

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

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

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

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

11 ‘‘(2) REFUSAL TO COOPERATE.—

12 ‘‘(A) GUIDELINES.—The Secretary, in con13 sultation with the Secretary of Health and

14 Human Services, shall develop guidelines on

15 what constitutes a refusal to cooperate under

16 paragraph (1).

17 ‘‘(B) PROCEDURES.—The State agency

18 shall develop procedures, using guidelines devel19 oped under subparagraph (A), for determining

20 whether an individual is refusing to cooperate

21 under paragraph (1).

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

23 the payment of a fee or other cost for services pro24 vided under part D of title IV of the Social Security

25 Act (42 U.S.C. 651 et seq.).
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1 ‘‘(4) PRIVACY.—The State agency shall provide

2 safeguards to restrict the use of information col3 lected by a State agency administering the program

4 established under part D of title IV of the Social Se5 curity Act (42 U.S.C. 651 et seq.) to purposes for

6 which the information is collected.’’.

7 SEC. 919. DISQUALIFICATION RELATING TO CHILD SUP8 PORT ARREARS.

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

10 2015), as amended by sections 915, 916, 917 and 918,

11 is amended by adding at the end the following:

12 ‘‘(o) DISQUALIFICATION FOR CHILD SUPPORT AR13 REARS.—

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

15 agency, except as provided in paragraph (2), no indi16 vidual shall be eligible to participate in the food

17 stamp program as a member of any household dur18 ing any month that the individual is delinquent in

19 any payment due under a court order for the sup20 port of a child of the individual.

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

22 apply if—

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

24 delay payment; or
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1 ‘‘(B) the individual is complying with a

2 payment plan approved by a court or the State

3 agency designated under part D of title IV of

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

5 to provide support for the child of the individ6 ual.’’.

7 SEC. 920. WORK REQUIREMENT FOR ABLE-BODIED RECIPI8 ENTS.

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

10 of 1977 (7 U.S.C. 2015), as amended by sections 915,

11 916, 917, 918, and 919, is amended by adding at the end

12 the following:

13 ‘‘(p) WORK REQUIREMENT.—

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

15 subsection, the term ‘work program’ means—

16 ‘‘(A) a program under the Job Training

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

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

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

20 ‘‘(C) a program of employment or training

21 operated or supervised by a State or local gov22 ernment, as determined appropriate by the Sec23 retary.

24 ‘‘(2) WORK REQUIREMENT.—No individual

25 shall be eligible to participate in the food stamp pro-
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1 gram as a member of any household if, during the

2 preceding 12 months, the individual received food

3 stamp benefits for not less than 6 months during

4 which the individual did not—

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

6 averaged monthly;

7 ‘‘(B) participate in a workfare program

8 under section 20 or a comparable State or local

9 workfare program;

10 ‘‘(C) participate in and comply with the re11 quirements of an approved employment and

12 training program under subsection (d)(4); or

13 ‘‘(D) participate in and comply with the

14 requirements of a work program for 20 hours

15 or more per week.

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

17 apply to an individual if the individual is—

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

19 ‘‘(B) medically certified as physically or

20 mentally unfit for employment;

21 ‘‘(C) a parent or other member of a house22 hold with a dependent child under 18 years of

23 age; or

24 ‘‘(D) otherwise exempt under subsection

25 (d)(2).
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1 ‘‘(4) WAIVER.—

2 ‘‘(A) IN GENERAL.—The Secretary may

3 waive the applicability of paragraph (2) to any

4 group of individuals in the State if the Sec5 retary makes a determination that the area in

6 which the individuals reside—

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

8 8 percent; or

9 ‘‘(ii) does not have a sufficient num10 ber of jobs to provide employment for the

11 individuals.

12 ‘‘(B) REPORT.—The Secretary shall report

13 the basis for a waiver under subparagraph (A)

14 to the Committee on Agriculture of the House

15 of Representatives and the Committee on Agri16 culture, Nutrition, and Forestry of the Sen17 ate.’’.

18 (b) WORK AND TRAINING PROGRAMS.—Section

19 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.

20 2015(d)(4)) is amended by adding at the end the follow21 ing:

22 ‘‘(O) REQUIRED PARTICIPATION IN WORK

23 AND TRAINING PROGRAMS.—A State agency

24 shall provide an opportunity to participate in

25 the employment and training program under
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1 this paragraph to any individual who would oth2 erwise become subject to disqualification under

3 subsection (p).

4 ‘‘(P) COORDINATING WORK REQUIRE5 MENTS.—

6 ‘‘(i) IN GENERAL.—Notwithstanding

7 any other provision of this paragraph, a

8 State agency that meets the participation

9 requirements of clause (ii) may operate the

10 employment and training program of the

11 State for individuals who are members of

12 households receiving allotments under this

13 Act as part of a program operated by the

14 State under part F of title IV of the Social

15 Security Act (42 U.S.C. 681 et seq.), sub16 ject to the requirements of such Act.

17 ‘‘(ii) PARTICIPATION REQUIRE18 MENTS.—A State agency may exercise the

19 option under clause (i) if the State agency

20 provides an opportunity to participate in

21 an approved employment and training pro22 gram to an individual who is—

23 ‘‘(I) subject to subsection (p);

24 ‘‘(II) not employed at least an

25 average of 20 hours per week;
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1 ‘‘(III) not participating in a

2 workfare program under section 20

3 (or a comparable State or local pro4 gram); and

5 ‘‘(IV) not subject to a waiver

6 under subsection (i)(4).’’.

7 SEC. 921. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

8 SYSTEMS.

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

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

11 (1) by amending paragraph (1) to read as fol12 lows:

13 ‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—

14 ‘‘(A) IMPLEMENTATION.—Each State

15 agency shall implement an electronic benefit

16 transfer system in which household benefits de17 termined under section 8(a) or 24 are issued

18 from and stored in a central databank before

19 October 1, 2002, unless the Secretary provides

20 a waiver for a State agency that faces unusual

21 barriers to implementing an electronic benefit

22 transfer system.

23 ‘‘(B) TIMELY IMPLEMENTATION.—State

24 agencies are encouraged to implement an elec-
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1 tronic benefit transfer system under subpara2 graph (A) as soon as practicable.

3 ‘‘(C) STATE FLEXIBILITY.—Subject to

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

5 implement an electronic benefit transfer system

6 under the terms, conditions, and design that

7 the State agency considers appropriate.

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

9 transfer system should take into account gen10 erally accepted standard operating rules based

11 on—

12 ‘‘(i) commercial electronic funds

13 transfer technology;

14 ‘‘(ii) the need to permit interstate op15 eration and law enforcement monitoring;

16 and

17 ‘‘(iii) the need to permit monitoring

18 and investigations by authorized law en19 forcement agencies.’’;

20 (2) in paragraph (2)—

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

22 April 1, 1992,’’;

23 (B) in subparagraph (A)—

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

25 (ii) by striking ‘‘on-line’’;
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1 (F) by adding at the end the following:

2 ‘‘(I) procurement standards.’’; and

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

4 ‘‘(7) REPLACEMENT OF BENEFITS.—Regula5 tions issued by the Secretary regarding the replace6 ment of benefits and liability for replacement of ben7 efits under an electronic benefit transfer system

8 shall be similar to the regulations in effect for a

9 paper food stamp issuance system.’’.

10 (b) SENSE OF CONGRESS.—It is the sense of Con11 gress that a State that operates an electronic benefit

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

13 U.S.C. 2011 et seq.) should operate the system in a man14 ner that is compatible with electronic benefit transfer sys15 tems operated by other States.

16 SEC. 922. VALUE OF MINIMUM ALLOTMENT.

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

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

19 shall be adjusted’’ and all that follows through ‘‘$5’’.

20 SEC. 923. BENEFITS ON RECERTIFICATION.

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

22 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

23 than one month’’.
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1 SEC. 924. OPTIONAL COMBINED ALLOTMENT FOR EXPE2 DITED HOUSEHOLDS.

3 Section 8(c)(3) of the Food Stamp Act of 1977 (7

4 U.S.C. 2017(c)(3)) is amended to read as follows:

5 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR

6 EXPEDITED HOUSEHOLDS.—A State agency may

7 provide to an eligible household applying after the

8 15th day of a month, in lieu of the initial allotment

9 of the household and the regular allotment of the

10 household for the following month, an allotment that

11 is equal to the total amount of the initial allotment

12 and the first regular allotment. The allotment shall

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

14 the case of a household that is not entitled to expe15 dited service and in accordance with paragraphs (3)

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

17 that is entitled to expedited service.’’.

18 SEC. 925. FAILURE TO COMPLY WITH OTHER MEANS-TEST19 ED PUBLIC ASSISTANCE PROGRAMS.

20 Section 8(d) of the Food Stamp Act of 1977 (7

21 U.S.C. 2017(d)) is amended to read as follows:

22 ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENE23 FITS.—

24 ‘‘(1) IN GENERAL.—If the benefits of a house25 hold are reduced under a Federal, State, or local law

26 relating to a means-tested public assistance program
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1 for the failure of a member of the household to per2 form an action required under the law or program,

3 for the duration of the reduction—

4 ‘‘(A) the household may not receive an in5 creased allotment as the result of a decrease in

6 the income of the household to the extent that

7 the decrease is the result of the reduction; and

8 ‘‘(B) the State agency may reduce the al9 lotment of the household by not more than 25

10 percent.

11 ‘‘(2) RULES AND PROCEDURES.—If the allot12 ment of a household is reduced under this subsection

13 for a failure to perform an action required under

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

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

16 rules and procedures that apply under part A of title

17 IV of such Act to reduce the allotment under the

18 food stamp program.’’.

19 SEC. 926. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

20 CENTERS.

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

22 2017) is amended by adding at the end the following:

23 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

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

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

3 alcoholic treatment program described in the last

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

5 an allotment for the individual to—

6 ‘‘(A) the center as an authorized represent7 ative of the individual for a period that is less

8 than 1 month; and

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

10 the center.

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

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

13 designate the center in which the individual resides

14 as the authorized representative of the individual for

15 the purpose of receiving an allotment.’’.

16 SEC. 927. AUTHORITY TO ESTABLISH AUTHORIZATION PE17 RIODS.

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

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

20 following:

21 ‘‘The Secretary is authorized to issue regulations estab22 lishing specific time periods during which authorization to

23 accept and redeem coupons under the food stamp program

24 shall be valid.’’.
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1 SEC. 928. SPECIFIC PERIOD FOR PROHIBITING PARTICIPA2 TION OF STORES BASED ON LACK OF BUSI3 NESS INTEGRITY.

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

5 U.S.C. 2018(a)(1)), as amended by section 927, is amend6 ed by adding at the end the following:

7 ‘‘The Secretary is authorized to issue regulations estab8 lishing specific time periods during which a retail food

9 store or wholesale food concern that has an application

10 for approval to accept and redeem coupons denied or that

11 has such an approval withdrawn on the basis of business

12 integrity and reputation cannot submit a new application

13 for approval. Such periods shall reflect the severity of

14 business integrity infractions that are the basis of such

15 denials or withdrawals.’’.

16 SEC. 929. INFORMATION FOR VERIFYING ELIGIBILITY FOR

17 AUTHORIZATION.

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

19 U.S.C. 2018(c)) is amended—

20 (1) in the 1st sentence by inserting ‘‘, which

21 may include relevant income and sales tax filing doc22 uments,’’ after ‘‘submit information’’ ; and

23 (2) by inserting after the 1st sentence the fol24 lowing:

25 ‘‘The regulations may require retail food stores and whole26 sale food concerns to provide written authorization for the
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1 Secretary to verify all relevant tax filings with appropriate

2 agencies and to obtain corroborating documentation from

3 other sources in order that the accuracy of information

4 provided by such stores and concerns may be verified.’’.

5 SEC. 930. WAITING PERIOD FOR STORES THAT INITIALLY

6 FAIL TO MEET AUTHORIZATION CRITERIA.

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

8 U.S.C. 2018(d)) is amended by adding at the end the fol9 lowing:

10 ‘‘Regulations issued pursuant to this Act shall prohibit a

11 retail food store or wholesale food concern that has an ap12 plication for approval to accept and redeem coupons de13 nied because it does not meet criteria for approval estab14 lished by the Secretary in regulations from submitting a

15 new application for six months from the date of such de16 nial.’’.

17 SEC. 931. OPERATION OF FOOD STAMP OFFICES.

18 Section 11(e)(2) of the Food Stamp Act of 1977 (7

19 U.S.C. 2020(e)(2)) is amended to read as follows:

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

21 procedures governing the operation of food stamp of22 fices that the State agency determines best serve

23 households in the State, including households with

24 special needs, such as households with elderly or dis25 abled members, households in rural areas with low-
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1 income members, homeless individuals, households

2 residing on reservations, and households in areas in

3 which a substantial number of members of low-in4 come households speak a language other than Eng5 lish.

6 ‘‘(B) In carrying out subparagraph (A), a State

7 agency—

8 ‘‘(i) shall provide timely, accurate, and fair

9 service to applicants for, and participants in,

10 the food stamp program;

11 ‘‘(ii) shall develop an application contain12 ing the information necessary to comply with

13 this Act;

14 ‘‘(iii) shall permit an applicant household

15 to apply to participate in the program on the

16 same day that the household first contacts a

17 food stamp office in person during office hours;

18 ‘‘(iv) shall consider an application that

19 contains the name, address, and signature of

20 the applicant to be filed on the date the appli21 cant submits the application;

22 ‘‘(v) shall require that an adult representa23 tive of each applicant household certify in writ24 ing, under penalty of perjury, that—
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1 ‘‘(I) the information contained in the

2 application is true; and

3 ‘‘(II) all members of the household

4 are citizens or are aliens eligible to receive

5 food stamps under section 6(f);

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

7 and issuing coupons to eligible homeless individ8 uals, to ensure that participation in the food

9 stamp program is limited to eligible households;

10 and

11 ‘‘(vii) may establish operating procedures

12 that vary for local food stamp offices to reflect

13 regional and local differences within the State.

14 ‘‘(C) Nothing in this Act shall prohibit the use

15 of signatures provided and maintained electronically,

16 storage of records using automated retrieval systems

17 only, or any other feature of a State agency’s appli18 cation system that does not rely exclusively on the

19 collection and retention of paper applications or

20 other records.

21 ‘‘(D) The signature of any adult under this

22 paragraph shall be considered sufficient to comply

23 with any provision of Federal law requiring a house24 hold member to sign an application or statement.’’;
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1 (2) in the last sentence of subsection (i) by

2 striking ‘‘No’’ and inserting ‘‘Other than in a case

3 of disqualification as a penalty for failure to comply

4 with a public assistance program rule or regulation,

5 no’’.

6 SEC. 932. MANDATORY CLAIMS COLLECTION METHODS.

7 (a) ADMINISTRATION.—Section 11(e)(8) of the Food

8 Stamp Act of 1977 (7 U.S.C. 2020(e)(8)) is amended by

9 inserting ‘‘or refunds of Federal taxes as authorized pur10 suant to section 3720A of title 31 of the United States

11 Code’’ before the semicolon at the end.

12 (b) COLLECTION OF CLAIMS.—Section 13(d) of the

13 Food Stamp Act of 1977 (7 U.S.C. 2022(d)) is amend14 ed—

15 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

16 and

17 (2) by inserting ‘‘or refunds of Federal taxes as

18 authorized pursuant to section 3720A of title 31 of

19 the United States Code’’ before the period at the

20 end.

21 (c) RELATED AMENDMENTS.—Section 6103(1) of

22 the Internal Revenue Code (26 U.S.C. 6103(1)) is amend23 ed—
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1 (1) by striking ‘‘officers and employees’’ in

2 paragraph (10)(A) and inserting ‘‘officers, employ3 ees or agents, including State agencies’’; and

4 (2) by striking ‘‘officers and employees’’ in

5 paragraph (10)(B) and inserting ‘‘officers, employ6 ees or agents, including State agencies’’.

7 SEC. 933. EXCHANGE OF LAW ENFORCEMENT INFORMA8 TION.

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

10 U.S.C. 2020(e)(8)) is amended—

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

12 the following:

13 ‘‘that—

14 ‘‘(A) the’’;

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

16 inserting the following:

17 ‘‘law;

18 ‘‘(B) notwithstanding’’;

19 (3) by striking ‘‘Act, and (C) such’’ and insert20 ing the following:

21 ‘‘Act;

22 ‘‘(C) the’’; and

23 (4) by adding at the end the following:

24 ‘‘(D) notwithstanding any other provision

25 of law, the address, social security number, and,
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1 if available, photograph of any member of a

2 household shall be made available, on request,

3 to any Federal, State, or local law enforcement

4 officer if the officer furnishes the State agency

5 with the name of the member and notifies the

6 agency that—

7 ‘‘(i) the member—

8 ‘‘(I) is fleeing to avoid prosecu9 tion, or custody or confinement after

10 conviction, for a crime (or attempt to

11 commit a crime) that, under the law

12 of the place the member is fleeing, is

13 a felony (or, in the case of New Jer14 sey, a high misdemeanor), or is violat15 ing a condition of probation or parole

16 imposed under Federal or State law;

17 or

18 ‘‘(II) has information that is nec19 essary for the officer to conduct an of20 ficial duty related to subclause (I);

21 ‘‘(ii) locating or apprehending the

22 member is an official duty; and

23 ‘‘(iii) the request is being made in the

24 proper exercise of an official duty; and
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1 ‘‘(E) the safeguards shall not prevent com2 pliance with paragraph (16);’’.

3 SEC. 934. EXPEDITED COUPON SERVICE.

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

5 U.S.C. 2020(e)(9)) is amended—

6 (1) in subparagraph (A)—

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

8 ‘‘7 days’’; and

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

10 (2) by striking subparagraph (B);

11 (3) in subparagraph (D) by striking ‘‘, (B), or

12 (C)’’ and inserting ‘‘or (B)’’; and

13 (4) by redesignating subparagraphs (C) and

14 (D) as subparagraphs (B) and (C), respectively.

15 SEC. 935. WITHDRAWING FAIR HEARING REQUESTS.

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

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

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

19 option of a State, at any time prior to a fair hearing deter20 mination under this paragraph, a household may with21 draw, orally or in writing, a request by the household for

22 the fair hearing. If the withdrawal request is an oral re23 quest, the State agency shall provide a written notice to

24 the household confirming the withdrawal request and pro-
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1 viding the household with an opportunity to request a

2 hearing’’.

3 SEC. 936. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS

4 VERIFICATION SYSTEMS.

5 Section 11(e)(19) of the Food Stamp Act of 1977 (7

6 U.S.C. 2020(e)(19)) is amended by striking ‘‘that infor7 mation is’’ and inserting ‘‘at the option of the State agen8 cy, that information may be’’.

9 SEC. 937. BASES FOR SUSPENSIONS AND DISQUALIFICA10 TIONS.

11 Section 12(a) of the Food Stamp Act of 1977 (7

12 U.S.C. 2021(a)) is amended by adding at the end the fol13 lowing:

14 ‘‘Regulations issued pursuant to this Act shall provide cri15 teria for the finding of violations and the suspension or

16 disqualification of a retail food store or wholesale food con17 cern on the basis of evidence which may include, but is

18 not limited to, facts established through on-site investiga19 tions, inconsistent redemption data, or evidence obtained

20 through transaction reports under electronic benefit trans21 fer systems.’’.
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1 SEC. 938. AUTHORITY TO SUSPEND STORES VIOLATING

2 PROGRAM REQUIREMENTS PENDING ADMIN3 ISTRATIVE AND JUDICIAL REVIEW.

4 (a) SUSPENSION AUTHORITY.—Section 12(a) of the

5 Food Stamp Act of 1977 (7 U.S.C. 2021(a)), as amended

6 by section 937, is amended by adding at the end the fol7 lowing:

8 ‘‘Such regulations may establish criteria under which the

9 authorization of a retail food store or wholesale food con10 cern to accept and redeem coupons may be suspended at

11 the time such store or concern is initially found to have

12 committed violations of program requirements. Such sus13 pension may coincide with the period of a review as pro14 vided in section 14. The Secretary shall not be liable for

15 the value of any sales lost during any suspension or dis16 qualification period.’’.

17 (b) CONFORMING AMENDMENT.—Section 14(a) of

18 the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is amend19 ed—

20 (1) in the 1st sentence by inserting ‘‘sus21 pended,’’ before ‘‘disqualified or subjected’’;

22 (2) in the 5th sentence by inserting before the

23 period at the end the following:

24 ‘‘, except that in the case of the suspension of a retail

25 food store or wholesale food concern pursuant to section

26 12(a), such suspension shall remain in effect pending any
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1 administrative or judicial review of the proposed disquali2 fication action, and the period of suspension shall be

3 deemed a part of any period of disqualification which is

4 imposed.’’; and

5 (3) by striking the last sentence.

6 SEC. 939. DISQUALIFICATION OF RETAILERS WHO ARE DIS7 QUALIFIED FROM THE WIC PROGRAM.

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

9 2021) is amended by adding at the end the following:

10 ‘‘(g) The Secretary shall issue regulations providing

11 criteria for the disqualification of approved retail food

12 stores and wholesale food concerns that are otherwise dis13 qualified from accepting benefits under the Special Sup14 plemental Nutrition Program for Women, Infants and

15 Children (WIC) authorized under section 17 of the Child

16 Nutrition Act of 1966. Such disqualification—

17 ‘‘(1) shall be for the same period as the dis18 qualification from the WIC Program;

19 ‘‘(2) may begin at a later date; and

20 ‘‘(3) notwithstanding section 14 of this Act,

21 shall not be subject to administrative or judicial re22 view.’’.
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1 SEC. 940. PERMANENT DEBARMENT OF RETAILERS WHO IN2 TENTIONALLY SUBMIT FALSIFIED APPLICA3 TIONS.

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

5 2021), as amended by section 939, is amended by adding

6 at the end the following:

7 ‘‘(h) The Secretary shall issue regulations providing

8 for the permanent disqualification of a retail food store

9 or wholesale food concern that is determined to have

10 knowingly submitted an application for approval to accept

11 and redeem coupons which contains false information

12 about one or more substantive matters which were the

13 basis for providing approval. Any disqualification imposed

14 under this subsection shall be subject to administrative

15 and judicial review pursuant to section 14, but such dis16 qualification shall remain in effect pending such review.’’.

17 SEC. 941. EXPANDED CIVIL AND CRIMINAL FORFEITURE

18 FOR VIOLATIONS OF THE FOOD STAMP ACT.

19 (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD

20 STAMP TRAFFICKING.—Section 15(g) of the Food Stamp

21 Act of 1977 (7 U.S.C. 2024(g)) is amended by striking

22 ‘‘or intended to be furnished’’.

23 (b) CIVIL AND CRIMINAL FORFEITURE.—Section 15

24 of the Food Stamp Act of 1977 (7 U.S.C. 2024)) is

25 amended by adding at the end the following:
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1 ‘‘(h)(1) CIVIL FORFEITURE FOR FOOD STAMP BENE2 FIT VIOLATIONS.—

3 ‘‘(A) Any food stamp benefits and any property,

4 real or personal—

5 ‘‘(i) constituting, derived from, or traceable

6 to any proceeds obtained directly or indirectly

7 from, or

8 ‘‘(ii) used, or intended to be used, to com9 mit, or to facilitate,

10 the commission of a violation of subsection (b) or

11 subsection (c) involving food stamp benefits having

12 an aggregate value of not less than $5,000, shall be

13 subject to forfeiture to the United States.

14 ‘‘(B) The provisions of chapter 46 of title 18,

15 United States Code, relating to civil forfeitures shall

16 extend to a seizure or forfeiture under this sub17 section, insofar as applicable and not inconsistent

18 with the provisions of this subsection.

19 ‘‘(2) CRIMINAL FORFEITURE FOR FOOD STAMP BEN20 EFIT VIOLATIONS.—

21 ‘‘(A)(i) Any person convicted of violating sub22 section (b) or subsection (c) involving food stamp

23 benefits having an aggregate value of not less than

24 $5,000, shall forfeit to the United States, irrespec25 tive of any State law—
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1 ‘‘(I) any food stamp benefits and any prop2 erty constituting, or derived from, or traceable

3 to any proceeds such person obtained directly or

4 indirectly as a result of such violation; and

5 ‘‘(II) any food stamp benefits and any of

6 such person’s property used, or intended to be

7 used, in any manner or part, to commit, or to

8 facilitate the commission of such violation.

9 ‘‘(ii) In imposing sentence on such person, the

10 court shall order that the person forfeit to the Unit11 ed States all property described in this subsection.

12 ‘‘(B) All food stamp benefits and any property

13 subject to forfeiture under this subsection, any sei14 zure and disposition thereof, and any administrative

15 or judicial proceeding relating thereto, shall be gov16 erned by subsections (b), (c), (e), and (g) through

17 (p) of section 413 of the Comprehensive Drug Abuse

18 Prevention and Control Act of 1970 (21 U.S.C.

19 853), insofar as applicable and not inconsistent with

20 the provisions of this subsection.

21 ‘‘(3) APPLICABILITY.—This subsection shall not

22 apply to property specified in subsection (g) of this sec23 tion.
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1 ‘‘(4) RULES.—The Secretary may prescribe such

2 rules and regulations as may be necessary to carry out

3 this subsection.’’.

4 SEC. 942. EXPANDED AUTHORITY FOR SHARING INFORMA5 TION PROVIDED BY RETAILERS.

6 (a) AMENDMENT TO SOCIAL SECURITY ACT.—Sec7 tion 205(c)(2)(C)(iii) of the Social Security Act (42

8 U.S.C. 405(c)(2)(C)(iii)), as amended by section 316(a)

9 of the Social Security Administrative Reform Act of 1994

10 (Public Law 103–296; 108 Stat. 1464), is amended—

11 (1) by inserting in the 1st sentence of subclause

12 (II) after ‘‘instrumentality of the United States’’ the

13 following: ‘‘, or State government officers and em14 ployees with law enforcement or investigative respon15 sibilities, or State agencies that have the responsibil16 ity for administering the Special Supplemental Nu17 trition Program for Women, Infants and Children

18 (WIC)’’;

19 (2) by inserting in the last sentence of sub20 clause (II) immediately after ‘‘other Federal’’ the

21 words ‘‘or State’’; and

22 (3) by inserting ‘‘or a State’’ in subclause (III)

23 immediately after ‘‘United States’’.

24 (b) AMENDMENT TO INTERNAL REVENUE CODE OF

25 1986.—Section 6109(f)(2) of the Internal Revenue Code
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1 of 1986 (26 U.S.C. 6109(f)(2)) (as added by section

2 316(b) of the Social Security Administrative Reform Act

3 of 1994 (Public Law 103–296; 108 Stat. 1464)) is amend4 ed—

5 (1) by inserting in subparagraph (A) after ‘‘in6 strumentality of the United States’’ the following: ‘‘,

7 or State government officers and employees with law

8 enforcement or investigative responsibilities, or State

9 agencies that have the responsibility for administer10 ing the Special Supplemental Nutrition Program for

11 Women, Infants and Children (WIC)’’;

12 (2) in the last sentence of subparagraph (A) by

13 inserting ‘‘or State’’ after ‘‘other Federal’’; and

14 (3) in subparagraph (B) by inserting ‘‘or a

15 State’’ after ‘‘United States’’.

16 SEC. 943. LIMITATION OF FEDERAL MATCH.

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

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

19 comma at the end the following: ‘‘but not including re20 cruitment activities,’’.

21 SEC. 944. COLLECTION OF OVERISSUANCES.

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

23 U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur24 ing the period beginning October 1, 1990’’ and all that

25 follows through ‘‘error of a State agency’’ and inserting
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1 the following: ‘‘25 percent of the overissuances collected

2 by the State agency under section 13, except those

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

4 SEC. 945. STANDARDS FOR ADMINISTRATION.

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

6 of 1977 (7 U.S.C. 2025) is amended by striking sub7 section (b).

8 (b) CONFORMING AMENDMENTS.—

9 (1) The 1st sentence of section 11(g) of the

10 Food Stamp Act of 1977 (7 U.S.C. 2020(g)) is

11 amended by striking ‘‘the Secretary’s standards for

12 the efficient and effective administration of the pro13 gram established under section 16(b)(1) or’’.

14 (2) Section 16(c)(1)(B) of the Food Stamp Act

15 of 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by

16 striking ‘‘pursuant to subsection (b)’’.

17 SEC. 946. RESPONSE TO WAIVERS.

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

19 U.S.C. 2026(b)(1)) is amended by adding at the end the

20 following:

21 ‘‘(C) RESPONSE TO WAIVERS.—

22 ‘‘(i) RESPONSE.—Not later than 60 days after

23 the date of receiving a request for a waiver under

24 subparagraph (A), the Secretary shall provide a re25 sponse that—
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1 ‘‘(I) approves the waiver request;

2 ‘‘(II) denies the waiver request and ex3 plains any modification needed for approval of

4 the waiver request;

5 ‘‘(III) denies the waiver request and ex6 plains the grounds for the denial; or

7 ‘‘(IV) requests clarification of the waiver

8 request.

9 ‘‘(ii) FAILURE TO RESPOND.—If the Secretary

10 does not provide a response in accordance with

11 clause (i), the waiver shall be considered approved,

12 unless the approval is specifically prohibited by this

13 Act.

14 ‘‘(iii) NOTICE OF DENIAL.—On denial of a

15 waiver request under clause (i)(III), the Secretary

16 shall provide a copy of the waiver request and a de17 scription of the reasons for the denial to the Com18 mittee on Agriculture of the House of Representa19 tives and the Committee on Agriculture, Nutrition,

20 and Forestry of the Senate.’’.

21 SEC. 947. AUTHORIZATION OF APPROPRIATIONS.

22 The 1st sentence of section 18(a)(1) of the Food

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

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

25 through 2002’’.
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1 SEC. 948. AUTHORIZE STATES TO OPERATE SIMPLIFIED

2 FOOD STAMP PROGRAMS.

3 (a) AUTHORITY FOR PROGRAM.—The Food Stamp

4 Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding

5 at the end the following:

6 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

7 ‘‘(a) DEFINITION.—In this section, the term ‘Federal

8 costs’ does not include any Federal costs incurred under

9 section 17.

10 ‘‘(b) STATE OPTION.—Subject to subsection (d), a

11 State may elect to carry out a simplified food stamp pro12 gram for households described in subsection (c)(1), state13 wide or in a political subdivision of the State, in accord14 ance with this section.

15 ‘‘(c) PROGRAM REQUIREMENTS.—If a State elects to

16 carry out such simplified food stamp program, within the

17 State or a political subdivision of the State—

18 ‘‘(1) only households in which all members re19 ceive assistance under a State program funded

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

21 (42 U.S.C. 601 et seq.) shall receive benefits under

22 this section. Such households shall be automatically

23 eligible to participate in such simplified food stamp

24 program; and

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

26 such simplified food stamp program shall be deter-
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1 mined under rules and procedures established by the

2 State under—

3 ‘‘(A) a State program funded under part A

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

5 601 et seq.);

6 ‘‘(B) the food stamp program; or

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

8 funded under part A of title IV of the Social

9 Security Act (42 US..C. 601 et seq.) and the

10 food stamp program.

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

12 such simplified food stamp program unless the Secretary

13 approves a State plan for the operation of such simplified

14 food stamp program under paragraph (2).

15 ‘‘(2) The Secretary is authorized to approve any State

16 plan to carry out such simplified food stamp program if

17 the Secretary determines that the plan—

18 ‘‘(A) simplifies program administration while

19 fulfilling the goals of the food stamp program to

20 permit low-income households to obtain a more nu21 tritious diet;

22 ‘‘(B) complies with this section;

23 ‘‘(C) would not increase Federal costs for any

24 fiscal year; and
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1 ‘‘(D) would not substantially alter, as deter2 mined by the Secretary, the appropriate distribution

3 of benefits according to household need.

4 ‘‘(e) COST DETERMINATION.—(1) During each fiscal

5 year and not later than 90 days after the end of each fiscal

6 year, the Secretary shall determine using data provided

7 by the State deemed appropriate by the Secretary whether

8 such simplified food stamp program being carried out by

9 a State is increasing Federal costs under this Act above

10 what the costs would have been for the same population

11 had they been subject to the rules of the food stamp pro12 gram.

13 ‘‘(2) If the Secretary determines that such simplified

14 food stamp program has increased Federal costs under

15 this Act for any fiscal year or any portion of any fiscal

16 year, the Secretary shall notify the State not later than

17 30 days after the Secretary makes the determination

18 under paragraph (1).

19 ‘‘(3)(A) Not later than 90 days after the date of a

20 notification under paragraph (2), the State shall submit

21 a plan for approval by the Secretary for prompt corrective

22 action that is designed to prevent such simplified food

23 stamp program from increasing Federal costs under this

24 Act.
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1 ‘‘(B) If the State does not submit a plan under sub2 paragraph (A) or carry out a plan approved by the Sec3 retary, the Secretary shall terminate the approval of the

4 State operating such simplified food stamp program and

5 the State shall be ineligible to operate a future Simplified

6 Program.

7 ‘‘(f) RULES AND PROCEDURES.—(1) In operating

8 such simplified food stamp program, a State or political

9 subdivision of a State may follow the rules and procedures

10 established by the State or political subdivision under a

11 State program funded under part A of title IV of the So12 cial Security Act (42 U.S.C. 601 et seq.) or under the

13 food stamp program.

14 ‘‘(2) In operating such simplified food stamp pro15 gram, a State or political subdivision shall comply with

16 the requirements of—

17 ‘‘(A) section 5(e) to the extent that it requires

18 an excess shelter expense deduction;

19 ‘‘(B) subsections (a) through (g) of section 7;

20 ‘‘(C) section 8(a) (except that the income of a

21 household may be determined under a State pro22 gram funded under part A of title IV of the Social

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

24 ‘‘(D) subsections (b) and (d) of section 8;
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1 ‘‘(E) subsections (a), (c), (d), and (n) of section

2 11;

3 ‘‘(F) paragraphs (8), (9), (12), (18), (20), (24),

4 and (25) of section 11(e);

5 ‘‘(G) section 11(e)(2), to the extent that it re6 quires the State agency to provide an application to

7 households on the 1st day they contact a food stamp

8 office in person during office hours to make what

9 may reasonably be interpreted as an oral or written

10 request for food stamp assistance and to allow those

11 households to file such application on the same day;

12 ‘‘(H) section 11(e)(3), to the extent that it re13 quires the State agency to complete certification of

14 an eligible household and provide an allotment retro15 active to the period of application to an eligible

16 household not later than 30 days following the filing

17 of an application;

18 ‘‘(I) section 11(e)(10) (or a comparable require19 ment established by the State under a State pro20 gram funded under part A of title IV of the Social

21 Security Act (42 U.S.C. 601 et seq.)); and

22 ‘‘(J) section 16.

23 ‘‘(3) Notwithstanding any other provision of this sec24 tion, a household may not receive benefits under this sec25 tion as a result of the eligibility of the household under
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1 a State program funded under part A of title IV of the

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

3 Secretary determines that any household with income

4 above 130 percent of the poverty guidelines is not eligible

5 for such simplified food stamp program.’’.

6 (b) REPEALER.—Section 8 of the Food Stamp Act

7 of 1977 (7 U.S.C. 2017) is amended by striking sub8 section (e).

9 (c) REQUIREMENTS.—Section 11(e) of the Food

10 Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—

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

12 end;

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

14 the end; and

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

16 ‘‘(26) if a State elects to carry out a simplified

17 food stamp program under section 24, the plan of

18 the State agency for operating such simplified food

19 stamp program, including—

20 ‘‘(A) the rules and procedures to be fol21 lowed by the State to determine food stamp

22 benefits; and

23 ‘‘(B) a description of the method by which

24 the State will carry out a quality control system

25 under section 16(c).’’.
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1 (d) REPEAL OF DEMONSTRATION PROJECTS.—Sec2 tion 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)

3 is amended by—

4 (1) by striking subsection (i); and

5 (2) redesignating subsections (j) through (l) as

6 subsections (i) through (k), respectively.

7 SEC. 949. EMERGENCY FOOD ASSISTANCE PROGRAM.

8 (a) DEFINITIONS.—Section 201A of the Emergency

9 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

10 612c note) is amended to read as follows:

11 ‘‘SEC. 201A. DEFINITIONS.

12 ‘‘In this Act:

13 ‘‘(1) ADDITIONAL COMMODITIES.—The term

14 ‘additional commodities’ means commodities made

15 available under section 214 in addition to the com16 modities made available under sections 202 and

17 203D.

18 ‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM19 PLOYED PERSONS.—The term ‘average monthly

20 number of unemployed persons’ means the average

21 monthly number of unemployed persons in each

22 State in the most recent fiscal year for which infor23 mation concerning the number of unemployed per24 sons is available, as determined by the Bureau of

25 Labor Statistics of the Department of Labor.
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1 ‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term

2 ‘eligible recipient agency’ means a public or non3 profit organization—

4 ‘‘(A) that administers—

5 ‘‘(i) an emergency feeding organiza6 tion;

7 ‘‘(ii) a charitable institution (including

8 a hospital and a retirement home, but ex9 cluding a penal institution) to the extent

10 that the institution serves needy persons;

11 ‘‘(iii) a summer camp for children, or

12 a child nutrition program providing food

13 service;

14 ‘‘(iv) a nutrition project operating

15 under the Older Americans Act of 1965

16 (42 U.S.C. 3001 et seq.), including a

17 project that operates a congregate nutri18 tion site and a project that provides home19 delivered meals; or

20 ‘‘(v) a disaster relief program;

21 ‘‘(B) that has been designated by the ap22 propriate State agency, or by the Secretary;

23 and
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1 ‘‘(C) that has been approved by the Sec2 retary for participation in the program estab3 lished under this Act.

4 ‘‘(4) EMERGENCY FEEDING ORGANIZATION.—

5 The term ‘emergency feeding organization’ means a

6 public or nonprofit organization that administers ac7 tivities and projects (including the activities and

8 projects of a charitable institution, a food bank, a

9 food pantry, a hunger relief center, a soup kitchen,

10 or a similar public or private nonprofit eligible recip11 ient agency) providing nutrition assistance to relieve

12 situations of emergency and distress through the

13 provision of food to needy persons, including low-in14 come and unemployed persons.

15 ‘‘(5) FOOD BANK.—The term ‘food bank’

16 means a public or charitable institution that main17 tains an established operation involving the provision

18 of food or edible commodities, or the products of

19 food or edible commodities, to food pantries, soup

20 kitchens, hunger relief centers, or other food or feed21 ing centers that, as an integral part of their normal

22 activities, provide meals or food to feed needy per23 sons on a regular basis.

24 ‘‘(6) FOOD PANTRY.—The term ‘food pantry’

25 means a public or private nonprofit organization
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1 that distributes food to low-income and unemployed

2 households, including food from sources other than

3 the Department of Agriculture, to relieve situations

4 of emergency and distress.

5 ‘‘(7) POVERTY LINE.—The term ‘poverty line’

6 has the same meaning given the term in section

7 673(2) of the Community Services Block Grant Act

8 (42 U.S.C. 9902(2)).

9 ‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’

10 means a public or charitable institution that, as an

11 integral part of the normal activities of the institu12 tion, maintains an established feeding operation to

13 provide food to needy homeless persons on a regular

14 basis.

15 ‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD16 ITIES.—The term ‘total value of additional commod17 ities’ means the actual cost of all additional com18 modities made available under section 214 that are

19 paid by the Secretary (including the distribution and

20 processing costs incurred by the Secretary).

21 ‘‘(10) VALUE OF ADDITIONAL COMMODITIES

22 ALLOCATED TO EACH STATE.—The term ‘value of

23 additional commodities allocated to each State’

24 means the actual cost of additional commodities

25 made available under section 214 and allocated to
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1 each State that are paid by the Secretary (including

2 the distribution and processing costs incurred by the

3 Secretary).’’.

4 (b) STATE PLAN.—Section 202A of the Emergency

5 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

6 612c note) (7 U.S.C. 612c note) is amended to read as

7 follows:

8 ‘‘SEC. 202A. STATE PLAN.

9 ‘‘(a) IN GENERAL.—To receive commodities under

10 this Act, a State shall submit a plan of operation and ad11 ministration every 4 years to the Secretary for approval.

12 The plan may be amended at any time, with the approval

13 of the Secretary.

14 ‘‘(b) REQUIREMENTS.—Each plan shall—

15 ‘‘(1) designate the State agency responsible for

16 distributing the commodities received under this Act;

17 ‘‘(2) set forth a plan of operation and adminis18 tration to expeditiously distribute commodities under

19 this Act;

20 ‘‘(3) set forth the standards of eligibility for re21 cipient agencies; and

22 ‘‘(4) set forth the standards of eligibility for in23 dividual or household recipients of commodities,

24 which shall require—
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1 ‘‘(A) individuals or households to be com2 prised of needy persons; and

3 ‘‘(B) individual or household members to

4 be residing in the geographic location served by

5 the distributing agency at the time of applying

6 for assistance.

7 ‘‘(c) STATE ADVISORY BOARD.—The Secretary shall

8 encourage each State receiving commodities under this Act

9 to establish a State advisory board consisting of represent10 atives of all interested entities, both public and private,

11 in the distribution of commodities received under this Act

12 in the State.’’.

13 (c) AUTHORIZATION OF APPROPRIATIONS FOR AD14 MINISTRATIVE FUNDS.—Section 204(a)(1) of the Emer15 gency Food Assistance Act of 1983 (Public Law 98–8; 7

16 U.S.C. 612c note) (7 U.S.C. 612c note) is amended—

17 (1) in the 1st sentence—

18 (A) by striking ‘‘1991 through 1995’’ and

19 inserting ‘‘1996 through 2002’’; and

20 (B) by striking ‘‘for State and local’’ and

21 all that follows through ‘‘under this title’’ and

22 inserting ‘‘to pay for the direct and indirect ad23 ministrative costs of the State related to the

24 processing, transporting, and distributing to eli25 gible recipient agencies of commodities provided
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1 by the Secretary under this Act and commod2 ities secured from other sources’’; and

3 (2) by striking the fourth sentence.

4 (d) TECHNICAL AMENDMENTS.—The Emergency

5 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

6 612c note) (7 U.S.C. 612c note) is amended—

7 (1) in the 1st sentence of section 203B(a), by

8 striking ‘‘203 and 203A of this Act’’ and inserting

9 ‘‘203A’’;

10 (2) in section 204(a), by striking ‘‘title’’ each

11 place it appears and inserting ‘‘Act’’; and

12 (3) by striking section 212.

13 (e) REPORT ON EFAP.—Section 1571 of the Food

14 Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c

15 note) is repealed.

16 SEC. 950. FOOD BANK DEMONSTRATION PROJECT.

17 Section 3 of the Charitable Assistance and Food

18 Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c

19 note) is repealed.

20 SEC. 951. REPORT ON ENTITLEMENT COMMODITY PROC21 ESSING.

22 Section 1773 of the Food, Agriculture, Conservation,

23 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

24 612c note) is amended by striking subsection (f).
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1 TITLE X—MISCELLANEOUS

2 SEC. 1001. EXPENDITURE OF FEDERAL FUNDS IN ACCORD3 ANCE WITH LAWS AND PROCEDURES APPLI4 CABLE TO EXPENDITURE OF STATE FUNDS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law, any funds received by a State under the provi7 sions of law specified in subsection (b) shall be expended

8 only in accordance with the laws and procedures applicable

9 to expenditures of the State’s own revenues, including ap10 propriation by the State legislature, consistent with the

11 terms and conditions required under such provisions of

12 law.

13 (b) PROVISIONS OF LAW.—The provisions of law

14 specified in this subsection are the following:

15 (1) Part A of title IV of the Social Security Act

16 (relating to block grants for temporary assistance

17 for needy families).

18 (2) Section 25 of the Food Stamp Act of 1977

19 (relating to the optional State food assistance block

20 grant).

21 (3) The Child Care and Development Block

22 Grant Act of 1990 (relating to block grants for child

23 care).
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1 SEC. 1002. ELIMINATION OF HOUSING ASSISTANCE WITH

2 RESPECT TO FUGITIVE FELONS AND PROBA3 TION AND PAROLE VIOLATORS.

4 (a) ELIGIBILITY FOR ASSISTANCE.—The United

5 States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is

6 amended—

7 (1) in section 6(l)—

8 (A) in paragraph (5), by striking ‘‘and’’ at

9 the end;

10 (B) in paragraph (6), by striking the pe11 riod at the end and inserting ‘‘; and’’; and

12 (C) by inserting immediately after para13 graph (6) the following new paragraph:

14 ‘‘(7) provide that it shall be cause for imme15 diate termination of the tenancy of a public housing

16 tenant if such tenant—

17 ‘‘(A) is fleeing to avoid prosecution, or cus18 tody or confinement after conviction, under the

19 laws of the place from which the individual

20 flees, for a crime, or attempt to commit a

21 crime, which is a felony under the laws of the

22 place from which the individual flees, or which,

23 in the case of the State of New Jersey, is a

24 high misdemeanor under the laws of such State;

25 or
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1 ‘‘(2) is violating a condition of probation or pa2 role imposed under Federal or State law.’’; and

3 (2) in section 8(d)(1)(B)—

4 (A) in clause (iii), by striking ‘‘and’’ at the

5 end;

6 (B) in clause (iv), by striking the period at

7 the end and inserting ‘‘; and’’; and

8 (C) by adding after clause (iv) the follow9 ing new clause:

10 ‘‘(v) it shall be cause for termination

11 of the tenancy of a tenant if such tenant—

12 ‘‘(I) is fleeing to avoid prosecu13 tion, or custody or confinement after

14 conviction, under the laws of the place

15 from which the individual flees, for a

16 crime, or attempt to commit a crime,

17 which is a felony under the laws of

18 the place from which the individual

19 flees, or which, in the case of the

20 State of New Jersey, is a high mis21 demeanor under the laws of such

22 State; or

23 ‘‘(II) is violating a condition of

24 probation or parole imposed under

25 Federal or State law;’’.
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1 (b) PROVISION OF INFORMATION TO LAW ENFORCE2 MENT AGENCIES.—Title I of the United States Housing

3 Act of 1937 (42 U.S.C. 1437 et seq.), as amended by sec4 tion 601 of this Act, is amended by adding at the end

5 the following:

6 ‘‘SEC. 28. EXCHANGE OF INFORMATION WITH LAW EN7 FORCEMENT AGENCIES.

8 ‘‘Notwithstanding any other provision of law, each

9 public housing agency that enters into a contract for as10 sistance under section 6 or 8 of this Act with the Secretary

11 shall furnish any Federal, State, or local law enforcement

12 officer, upon the request of the officer, with the current

13 address, Social Security number, and photograph (if appli14 cable) of any recipient of assistance under this Act, if the

15 officer—

16 ‘‘(1) furnishes the public housing agency with

17 the name of the recipient; and

18 ‘‘(2) notifies the agency that—

19 ‘‘(A) such recipient—

20 ‘‘(i) is fleeing to avoid prosecution, or

21 custody or confinement after conviction,

22 under the laws of the place from which the

23 individual flees, for a crime, or attempt to

24 commit a crime, which is a felony under

25 the laws of the place from which the indi-
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1 vidual flees, or which, in the case of the

2 State of New Jersey, is a high mis3 demeanor under the laws of such State; or

4 ‘‘(ii) is violating a condition of proba5 tion or parole imposed under Federal or

6 State law; or

7 ‘‘(iii) has information that is nec8 essary for the officer to conduct the offi9 cer’s official duties;

10 ‘‘(B) the location or apprehension of the

11 recipient is within such officer’s official duties;

12 and

13 ‘‘(C) the request is made in the proper ex14 ercise of the officer’s official duties.’’.

15 SEC. 1003. SENSE OF THE SENATE REGARDING ENTER16 PRISE ZONES.

17 (a) FINDINGS.—The Senate finds that:

18 (1) Many of the Nation’s urban centers are

19 places with high levels of poverty, high rates of wel20 fare dependency, high crime rates, poor schools, and

21 joblessness;

22 (2) Federal tax incentives and regulatory re23 forms can encourage economic growth, job creation

24 and small business formation in many urban centers;
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1 (3) Encouraging private sector investment in

2 America’s economically distressed urban and rural

3 areas is essential to breaking the cycle of poverty

4 and the related ills of crime, drug abuse, illiteracy,

5 welfare dependency, and unemployment;

6 (4) The empowerment zones enacted in 1993

7 should be enhanced by providing incentives to in8 crease entrepreneurial growth, capital formation, job

9 creation, educational opportunities, and home owner10 ship in the designated communities and zones.

11 (b) SENSE OF THE SENATE.—Therefore, it is the

12 Sense of the Senate that the Congress should adopt enter13 prise zone legislation in the One Hundred Fourth Con14 gress, and that such enterprise zone legislation provide the

15 following incentives and provisions:

16 (1) Federal tax incentives that expand access to

17 capital, increase the formation and expansion of

18 small businesses, and promote commercial revitaliza19 tion;

20 (2) Regulatory reforms that allow localities to

21 petition Federal agencies, subject to the relevant

22 agencies’ approval, for waivers or modifications of

23 regulations to improve job creation, small business

24 formation and expansion, community development,
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1 or economic revitalization objectives of the enterprise

2 zones;

3 (3) Home ownership incentives and grants to

4 encourage resident management of public housing

5 and home ownership of public housing;

6 (4) School reform pilot projects in certain des7 ignated enterprise zones to provide low-income par8 ents with new and expanded educational options for

9 their children’s elementary and secondary schooling.

10 SEC. 1004. SENSE OF THE SENATE REGARDING THE IN11 ABILITY OF THE NONCUSTODIAL PARENT TO

12 PAY CHILD SUPPORT.

13 It is the sense of the Senate that—

14 (a) States should diligently continue their ef15 forts to enforce child support payments by the non16 custodial parent to the custodial parent, regardless

17 of the employment status or location of the non18 custodial parent; and

19 (b) States are encouraged to pursue pilot pro20 grams in which the parents of a nonadult, noncusto21 dial parent who refuses to or is unable to pay child

22 support must—

23 (1) pay or contribute to the child support

24 owed by the noncustodial parent; or
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1 (2) otherwise fulfill all financial obligations

2 and meet all conditions imposed on the

3 non÷custodial parent, such as participation in a

4 work program or other related activity.

5 SEC. 1005. FOOD STAMP ELIGIBILITY.

6 Section 6(f) of the Food Stamp Act of 1977 (7

7 U.S.C. 2015(f)) is amended by striking the third sentence

8 and inserting the following:

9 ‘‘The State agency shall, at its option, consider either

10 all income and financial resources of the individual ren11 dered ineligible to participate in the food stamp program

12 under this subsection, or such income, less a pro rata

13 share, and the financial resources of the ineligible individ14 ual, to determine the eligibility and the value of the allot15 ment of the household of which such individual is a mem16 ber.’’.

17 SEC. 1006. ESTABLISHING NATIONAL GOALS TO PREVENT

18 TEENAGE PREGNANCIES.

19 (a) IN GENERAL.—Not later than January 1, 1997,

20 the Secretary of Health and Human Services shall estab21 lish and implement a strategy for—

22 (1) preventing out-of-wedlock teenage preg23 nancies, and
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1 (2) assuring that at least 25 percent of the

2 communities in the United States have teenage preg3 nancy prevention programs in place.

4 (b) REPORT.—Not later than June 30, 1998, and an5 nually thereafter, the Secretary shall report to the Con6 gress with respect to the progress that has been made in

7 meeting the goals described in paragraphs (1) and (2) of

8 subsection (a).

9 SEC. 1007. SENSE OF THE SENATE REGARDING ENFORCE10 MENT OF STATUTORY RAPE LAWS.

11 It is the sense of the Senate that States and local

12 jurisdictions should aggressively enforce statutory rape

13 laws.

14 SEC. 1008. SANCTIONING FOR TESTING POSITIVE FOR

15 CONTROLLED SUBSTANCES.

16 Notwithstanding any other provision of law, States

17 shall not be prohibited by the Federal Government from

18 sanctioning welfare recipients who test positive for use of

19 controlled substances.

20 SEC. 1009. ABSTINENCE EDUCATION.

21 Title V of the Social Security Act (42 U.S.C. 701–

22 709) is amended by adding at the end the following new

23 section:

24 ‘‘ABSTINENCE EDUCATION

25 ‘‘SEC. 510. (a) There are authorized to be appro26 priated $75,000,000 for the purposes of enabling the Sec-
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1 retary, through grants, contracts, or otherwise to provide

2 for abstinence education, and at the option of the State,

3 where appropriate, mentoring, counseling, and adult su4 pervision to promote abstinence from sexual activity, with

5 a focus on those groups which are most liekly to bear chil6 dren out of wedlock.

7 ‘‘(b) For purposes of this section, the term ‘absti8 nence education’ means an educational or motivational

9 program which—

10 ‘‘(1) has as its exclusive purpose, teaching the

11 social, psychological, and health gains to be realized

12 by abstaining from sexual activity;

13 ‘‘(2) teaches abstinence from sexual activity

14 outside marriage as the expected standard for all

15 school age children;

16 ‘‘(3) teaches that abstinence from sexual activ17 ity is the only certain way to avoid out-of-wedlock

18 pregnancy, sexually transmitted diseases, and other

19 associated health problems;

20 ‘‘(4) teaches that a mutually faithful

21 monogamous relationship in context of marriage is

22 the expected standard of human sexual activity;

23 ‘‘(5) teaches that sexual activity outside of the

24 context of marriage is likely to have harmful psycho25 logical and physical effects;
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1 ‘‘(6) teaches that bearing children out-of-wed2 lock is likely to have harmful consequences for the

3 child, the child’s parents, and society;

4 ‘‘(7) teaches young people how to reject sexual

5 advances and how alcohol and drug use increases

6 vulnerability to sexual advances; and

7 ‘‘(8) teaches the importance of attaining self8 sufficiency before engaging in sexual activity.’’.

9 SEC. 1010. PROVISIONS TO ENCOURAGE ELECTRONIC BEN10 EFIT TRANSFER SYSTEMS.

11 Section 904 of the Electronic Fund Transfer Act (15

12 U.S.C. 1693b) is amended—

13 (1) by striking ‘‘(d) In the event’’ and inserting

14 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS

15 OTHER THAN CERTAIN FINANCIAL INSTITU16 TIONS.—

17 ‘‘(1) IN GENERAL.—In the event’’; and

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

19 paragraph:

20 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC21 TRONIC BENEFIT TRANSFER PROGRAMS.—

22 ‘‘(A) EXEMPTION GENERALLY.—The dis23 closures, protections, responsibilities, and rem24 edies established under this title, and any regu25 lation prescribed or order issued by the Board
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1 in accordance with this title, shall not apply to

2 any electronic benefit transfer program estab3 lished under State or local law or administered

4 by a State or local government.

5 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

6 INTO RECIPIENT’S ACCOUNT.—Subparagraph

7 (A) shall not apply with respect to any elec8 tronic funds transfer under an electronic benefit

9 transfer program for deposits directly into a

10 consumer account held by the recipient of the

11 benefit.

12 ‘‘(C) RULE OF CONSTRUCTION.—No provi13 sion of this paragraph may be construed as—

14 ‘‘(i) affecting or altering the protec15 tions otherwise applicable with respect to

16 benefits established by Federal, State, or

17 local law; or

18 ‘‘(ii) otherwise superseding the appli19 cation of any State or local law.

20 ‘‘(D) ELECTRONIC BENEFIT TRANSFER

21 PROGRAM DEFINED.—For purposes of this

22 paragraph, the term ‘electronic benefit transfer

23 program’—

24 ‘‘(i) means a program under which a

25 government agency distributes needs-tested
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1 benefits by establishing accounts to be

2 accessed by recipients electronically, such

3 as through automated teller machines, or

4 point-of-sale terminals; and

5 ‘‘(ii) does not include employment-re6 lated payments, including salaries and pen7 sion, retirement, or unemployment benefits

8 established by Federal, State, or local gov9 ernments.’’.

10 SEC. 1011. REDUCTION IN BLOCK GRANTS TO STATES FOR

11 SOCIAL SERVICES.

12 Section 2003(c) of the Social Security Act (42 U.S.C.

13 1397b(c)) is amended—

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

15 (4); and

16 (2) by striking paragraph (5) and inserting the

17 following:

18 ‘‘(5) $2,800,000,000 for each of the fiscal years

19 1990 through 1996 and for each fiscal year after fis20 cal year 2002; and

21 ‘‘(6) $2,520,000,000 for each of the fiscal years

22 1997 through 2002.’’.
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1 SEC. 1012. EFFICIENT USE OF FEDERAL TRANSPORTATION

2 FUNDS.

3 The Secretary of Health and Human Services is en4 couraged to work in coordination with State agencies to

5 ensure that Federal transportation funds that may be

6 used for the benefit of persons receiving public assistance

7 pursuant to this Act and the amendments made by this

8 Act are most efficiently used for such purpose. The Sec9 retary shall work with the individual States to develop cri10 teria and measurements to report back to the Congress,

11 within 3 years after the date of the enactment of this Act,

12 the following:

13 (1) The use of competitive contracting or other

14 market-oriented strategies to achieve efficiencies.

15 (2) The efficient use of all related transpor16 tation funds to support persons receiving assistance

17 pursuant to this Act and the amendments made by

18 this Act.

19 (3) The actual value derived from transpor20 tation services to achieve such purposes.

21 (4) The application of such analyses to other

22 support services to achieve such purposes.
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1 SEC. 1013. ENHANCED FEDERAL MATCH FOR CHILD WEL2 FARE AUTOMATION EXPENSES.

3 (a) IN GENERAL.—Section 474(a)(3)(C) of the Social

4 Security Act (42 U.S.C. 674(a)(3)(C)) is amended to read

5 as follows:

6 ‘‘(C) 50 percent (or, if the quarter is in

7 fiscal year 1997, 75 percent) of so much of

8 such expenditures as are for the planning, de9 sign, development, or installation of statewide

10 mechanized data collection and information re11 trieval systems (including 50 percent (or, if the

12 quarter is in fiscal year 1997, 75 percent) of

13 the full amount of expenditures for hardware

14 components for such systems) but only to the

15 extent that such systems—

16 ‘‘(i) meet the requirements imposed

17 by regulations;

18 ‘‘(ii) to the extent practicable, are ca19 pable of interfacing with the State data

20 collection system that collects information

21 relating to child abuse and neglect;

22 ‘‘(iii) to the extent practicable, have

23 the capability of interfacing with, and re24 trieving information from, the State data

25 collection system that collects information

26 relating to the eligibility of individuals
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1 under part A (for the purposes of facilitat2 ing verification of eligibility of foster chil3 dren); and

4 ‘‘(iv) are determined by the Secretary

5 to be likely to provide more efficient, eco6 nomical, and effective administration of

7 the programs carried out under a State

8 plan approved under this part;’’.

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

10 this section shall be effective on and after October 1,

11 1996.

12 Subtitle B—Earned Income Tax

13 Credit

14 SEC. 1021. EARNED INCOME CREDIT AND OTHER TAX BENE15 FITS DENIED TO INDIVIDUALS FAILING TO

16 PROVIDE TAXPAYER IDENTIFICATION NUM17 BERS.

18 (a) EARNED INCOME CREDIT.—

19 (1) IN GENERAL.—Section 32(c)(1) of the In20 ternal Revenue Code of 1986 (relating to individuals

21 eligible to claim the earned income credit) is amend22 ed by adding at the end the following new subpara23 graph:

24 ‘‘(F) IDENTIFICATION NUMBER REQUIRE25 MENT.—The term ‘eligible individual’ does not
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1 include any individual who does not include on

2 the return of tax for the taxable year—

3 ‘‘(i) such individual’s taxpayer identi4 fication number, and

5 ‘‘(ii) if the individual is married (with6 in the meaning of section 7703), the tax7 payer identification number of such indi8 vidual’s spouse.’’

9 (2) SPECIAL IDENTIFICATION NUMBER.—Sec10 tion 32 of such Code is amended by adding at the

11 end the following new subsection:

12 ‘‘(l) IDENTIFICATION NUMBERS.—Solely for pur13 poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer

14 identification number means a social security number is15 sued to an individual by the Social Security Administra16 tion (other than a social security number issued pursuant

17 to subclause (II) (or that portion of subclause (III) that

18 relates to subclause (II)) of section 205(c)(2)(B)(i) of the

19 Social Security Act).’’

20 (b) PERSONAL EXEMPTION.—

21 (1) IN GENERAL.—Section 151 of such Code

22 (relating to allowance of deductions for personal ex23 emptions) is amended by adding at the end the fol24 lowing new subsection:
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1 ‘‘(e) INDENTIFYING INFORMATION REQUIRED.—No

2 exemption shall be allowed under this section with respect

3 to any individual unless the taxpayer identification num4 ber of such individual is included on the return claiming

5 the exemption.’’

6 (2) CONFORMING AMENDMENTS.—

7 (A) Subsection (e) of section 6109 of such

8 Code is repealed.

9 (B) Section 6724(d)(3) of such Code is

10 amended by adding ‘‘and’’ at the end of sub11 paragraph (C), by striking subparagraph (D),

12 and by redesignating subparagraph (E) as sub13 paragraph (D).

14 (c) DEPENDENT CARE CREDIT.—Subsection (e) of

15 section 21 of such Code (relating to expenses for house16 hold and dependent care services necessary for gainful em17 ployment) is amended by adding at the end the following

18 new paragraph:

19 ‘‘(10) IDENTIFYING INFORMATION REQUIRED

20 WITH RESPECT TO QUALIFYING INDIVIDUALS.—No

21 credit shall be allowed under this section with re22 spect to any qualifying individual unless the tax23 payer identification number of such individual is in24 cluded on the return claiming the credit.’’
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1 (d) EXTENSION OF PROCEDURES APPLICABLE TO

2 MATHEMATICAL OR CLERICAL ERRORS.—Section

3 6213(g)(2) of such Code (relating to the definition of

4 mathematical or clerical errors) is amended—

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (D), and

7 (2) by striking the period at the end of sub8 paragraph (E) and inserting a comma, and

9 (3) by adding at the end the following new sub10 paragraphs:

11 ‘‘(F) an omission of a correct taxpayer

12 identification number required under section 21

13 (relating to expenses for household and depend14 ent care services necessary for gainful employ15 ment), section 32 (relating to the earned in16 come credit) to be included on a return, or sec17 tion 151 (relating to allowance of deductions for

18 personal exemptions), and

19 ‘‘(G) an entry on a return claiming the

20 credit under section 32 with respect to net

21 earnings from self-employment described in sec22 tion 32(c)(2)(A) to the extent the tax imposed

23 by section 1401 (relating to self-employment

24 tax) on such net earnings has not been paid.’’
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1 (e) EFFECTIVE DATE.—The amendments made by

2 this section shall apply with respect to returns the due

3 date for which (without regard to extensions) is more than

4 30 days after the date of the enactment of this Act.

5 SEC. 1022. RULES RELATING TO DENIAL OF EARNED IN6 COME CREDIT ON BASIS OF DISQUALIFIED

7 INCOME.

8 (a) REDUCTION IN DISQUALIFIED INCOME THRESH9 OLD.—

10 (1) IN GENERAL.—Section 32(i)(1) of the In11 ternal Revenue Code of 1986 (relating to denial of

12 credit for individuals having excessive investment in13 come) is amended by striking ‘‘$2,350’’ and insert14 ing ‘‘$2,200’’.

15 (2) ADJUSTMENT FOR INFLATION.—Section

16 32(j) of such Code is amended to read as follows:

17 ‘‘(j) INFLATION ADJUSTMENTS.—

18 ‘‘(1) IN GENERAL.—In the case of any taxable

19 year beginning after the applicable calendar year,

20 each dollar amount referred to in paragraph (2)(B)

21 shall be increased by an amount equal to—

22 ‘‘(A) such dollar amount, multiplied by

23 ‘‘(B) the cost-of-living adjustment deter24 mined under section 1(f)(3) for the calendar

25 year in which the taxable year begins, except
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1 that subparagraph (B) thereof shall be applied

2 by reference to the CPI for the calendar year

3 preceding the applicable calendar year rather

4 than the CPI for calendar year 1992.

5 ‘‘(2) DEFINITIONS, ETC.—For purposes of

6 paragraph (1)—

7 ‘‘(A) APPLICABLE CALENDAR YEAR.—The

8 term ‘applicable calendar year’ means—

9 ‘‘(i) 1994 in the case of the dollar

10 amounts referred to in clause (i) of sub11 paragraph (B), and

12 ‘‘(ii) 1996 in the case of the dollar

13 amount referred to in clause (ii) of sub14 paragraph (B).

15 ‘‘(B) DOLLAR AMOUNTS.—The dollar

16 amounts referred to in this subparagraph are—

17 ‘‘(i) the dollar amounts contained in

18 subsection (b)(2)(A), and

19 ‘‘(ii) the dollar amount contained in

20 subsection (i)(1).

21 ‘‘(3) ROUNDING.—

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

23 subparagraph (B), if any dollar amount after

24 being increased under paragraph (1) is not a

25 multiple of $10, such dollar amount shall be
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1 rounded to the nearest multiple of $10 (or, if

2 such dollar amount is a multiple of $5, such

3 dollar amount shall be increased to the next

4 higher multiple of $10).

5 ‘‘(B) DISQUALIFIED INCOME THRESHOLD

6 AMOUNT.—If the dollar amount referred to in

7 paragraph (2)(B)(ii) after being increased

8 under paragraph (1) is not a multiple of $50,

9 such amount shall be rounded to the next low10 est multiple of $50.’’

11 (b) DEFINITION OF DISQUALIFIED INCOME.—Para12 graph (2) of section 32(i) of such Code (defining disquali13 fied income) is amended by striking ‘‘and’’ at the end of

14 subparagraph (B), by striking the period at the end of

15 subparagraph (C) and inserting a comma, and by adding

16 at the end the following new subparagraphs:

17 ‘‘(D) the capital gain net income (as de18 fined in section 1222) of the taxpayer for such

19 taxable year, and

20 ‘‘(E) the excess (if any) of—

21 ‘‘(i) the aggregate income from all

22 passive activities for the taxable year (de23 termined without regard to any amount in24 cluded in earned income under subsection
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1 (c)(2) or described in a preceding subpara2 graph), over

3 ‘‘(ii) the aggregate losses from all pas4 sive activities for the taxable year (as so

5 determined).

6 For purposes of subparagraph (E), the term

7 ‘passive activity’ has the meaning given such

8 term by section 469.’’

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

10 this section shall apply to taxable years beginning after

11 December 31, 1995.

12 SEC. 1023. MODIFICATION OF ADJUSTED GROSS INCOME

13 DEFINITION FOR EARNED INCOME CREDIT.

14 (a) IN GENERAL.—Subsections (a)(2), (c)(1)(C), and

15 (f)(2)(B) of section 32 of the Internal Revenue Code of

16 1986 are each amended by striking ‘‘adjusted gross in17 come’’ and inserting ‘‘modified adjusted gross income’’.

18 (b) MODIFIED ADJUSTED GROSS INCOME DE19 FINED.—Section 32(c) of such Code (relating to defini20 tions and special rules) is amended by adding at the end

21 the following new paragraph:

22 ‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—

23 ‘‘(A) IN GENERAL.—The term ‘modified

24 adjusted gross income’ means adjusted gross in25 come—
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1 ‘‘(i) determined without regard to the

2 amounts described in subparagraph (B),

3 and

4 ‘‘(ii) increased by

5 ‘‘(I) the amount of interest re6 ceived or accrued by the taxpayer dur7 ing the taxable year which is exempt

8 from tax, and

9 ‘‘(II) amounts received as a pen10 sion or annuity, and any distributions

11 or payments received from an individ12 ual retirement plan, by the taxpayer

13 during the taxable year to the extent

14 not included in gross income.

15 Clause (ii)(II) shall not include any amount

16 which is not includible in gross income by rea17 son of section 402(c), 403(a)(4), 403(b)(8),

18 408(d) (3), (4), or (5), or 457(e)(10).

19 ‘‘(B) CERTAIN AMOUNTS DISREGARDED.—

20 An amount is described in this subparagraph if

21 it is—

22 ‘‘(i) the amount of losses from sales

23 or exchanges of capital assets in excess of

24 gains from such sales or exchanges to the
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1 extent such amount does not exceed the

2 amount under section 1211(b)(1),

3 ‘‘(ii) the net loss from estates and

4 trusts,

5 ‘‘(iii) the excess (if any) of amounts

6 described in subsection (i)(2)(C)(ii) over

7 the amounts described in subsection

8 (i)(2)(C)(i) (relating to nonbusiness rents

9 and royalties), and

10 ‘‘(iv) the net loss from the carrying on

11 of trades or businesses, computed sepa12 rately with respect to—

13 ‘‘(I) trades or businesses (other

14 than farming) conducted as sole pro15 prietorships,

16 ‘‘(II) trades or businesses of

17 farming conducted as sole proprietor18 ships, and

19 ‘‘(III) other trades or businesses.

20 For purposes of clause (iv), there shall not

21 be taken into account items which are at22 tributable to a trade or business which

23 consists of the performance of services by

24 the taxpayer as an employee.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1995.

4 SEC. 1024. NOTICE OF AVAILABILITY REQUIRED TO BE PRO5 VIDED TO APPLICANTS AND FORMER RECIPI6 ENTS OF TEMPORARY ASSISTANCE FOR

7 NEEDY FAMILIES, FOOD STAMPS, AND MEDIC8 AID.

9 (a) TEMPORARY ASSISTANCE FOR NEEDY FAMI10 LIES.—Section 408(a), as added by section 103 of this

11 Act, is amended by adding at the end the following:

12 ‘‘(16) NOTICE OF EITC AVAILABILITY.—A State

13 to which a grant is made under section 403 shall

14 provide written notice of the existence and availabil15 ity of the earned income credit under section 32 of

16 the Internal Revenue Code of 1986 to—

17 ‘‘(A) any individual who applies for assist18 ance under the State program funded under

19 this part, upon receipt of the application; and

20 ‘‘(B) any individual whose assistance under

21 the State program is terminated, in the notice

22 of termination of such assistance.’’.

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

24 Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—
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1 (1) in paragraph (24) by striking ‘‘and’’ at the

2 end;

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

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

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

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

8 food stamp benefits, and whenever such benefits are

9 terminated with respect to a household, the State

10 agency shall provide to each member of such house11 hold notice of—

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

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

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

17 (c) MEDICAID.—Section 1902(a) (42 U.S.C.

18 1396a(a)) is amended—

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

20 (61);

21 (2) by striking the period at the end of para22 graph (62) and inserting ‘‘; and’’; and

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

24 paragraph:
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1 ‘‘(63) provide that the State shall provide notice

2 of the existence and availability of the earned income

3 tax credit under section 32 of the Internal Revenue

4 Code of 1986 to each individual applying for medical

5 assistance under the State plan and to each individ6 ual whose eligibility for medical assistance under the

7 State plan is terminated.’’.

8 SEC. 1025. NOTICE OF AVAILABILITY OF EARNED INCOME

9 TAX CREDIT AND DEPENDENT CARE TAX

10 CREDIT TO BE INCLUDED ON W–4 FORM.

11 Section 11114 of the Omnibus Budget Reconciliation

12 Act of 1990 (26 U.S.C. 21 note), relating to program to

13 increase public awareness, is amended by adding at the

14 end the following new sentence: ‘‘Such means shall include

15 printing a notice of the availability of such credits on the

16 forms used by employees to determine the proper number

17 of withholding exemptions under chapter 24 of the Inter18 nal Revenue Code of 1986.’’.

19 SEC. 1026. ADVANCE PAYMENT OF EARNED INCOME TAX

20 CREDIT THROUGH STATE DEMONSTRATION

21 PROGRAMS.

22 (a) IN GENERAL.—Section 3507 of the Internal Rev23 enue Code of 1986 (relating to the advance payment of

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

25 the end the following:
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1 ‘‘(g) STATE DEMONSTRATIONS.—

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

3 income advance amounts from an employer under

4 subsection (a), a participating resident shall receive

5 advance earned income payments from a responsible

6 State agency pursuant to a State Advance Payment

7 Program that is designated pursuant to paragraph

8 (2).

9 ‘‘(2) DESIGNATIONS.—

10 ‘‘(A) IN GENERAL.—From among the

11 States submitting proposals satisfying the re12 quirements of subsection (g)(3), the Secretary

13 (in consultation with the Secretary of Health

14 and Human Services) may designate not more

15 than 4 State Advance Payment Demonstra16 tions. States selected for the demonstrations

17 may have, in the aggregate, no more than 5

18 percent of the total number of household par19 ticipating in the program under the Food

20 Stamp program in the immediately preceding

21 fiscal year, Administrative costs of a State in

22 conducting a demonstration under this section

23 may be included for matching under section

24 403(a) of the Social Security Act and section

25 16(a) of the Food Stamp Act of 1977.
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1 ‘‘(B) WHEN DESIGNATION MAY BE

2 MADE.—Any designation under this paragraph

3 shall be made no later than December 31,

4 1995.

5 ‘‘(C) PERIOD FOR WHICH DESIGNATION IS

6 IN EFFECT.—

7 ‘‘(i) IN GENERAL.—Designations

8 made under this paragraph shall be effec9 tive for advance earned income payments

10 made after December 31, 1995, and before

11 January 1, 1999.

12 ‘‘(ii) SPECIAL RULES.—

13 ‘‘(I) REVOCATION OF DESIGNA14 TIONS.—The Secretary may revoke

15 the designation under this paragraph

16 if the Secretary determines that the

17 State is not complying substantially

18 with the proposal described in para19 graph (3) submitted by the State.

20 ‘‘(II) AUTOMATIC TERMINATION

21 OF DESIGNATIONS.—Any failure by a

22 State to comply with the reporting re23 quirements described in paragraphs

24 (3)(F) and (3)(G) has the effect of

25 immediately terminating the designa-
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1 tion under this paragraph (2) and

2 rendering paragraph (5)(A)(ii) inap3 plicable to subsequent payments.

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

5 under subsection (g)(2) unless the State’s proposal

6 for such designation—

7 ‘‘(A) identifies the responsible State agen8 cy,

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

10 earned income payments will be made by that

11 agency, including a description of any other

12 State or Federal benefits with which such pay13 ments will be coordinated,

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

15 the information on which the amount of ad16 vance earned income payments made to each

17 participating resident will be determined in ac18 cordance with paragraph (4),

19 ‘‘(D) describes how State residents who

20 will be eligible to receive advance earned income

21 payments will be selected, notified of the oppor22 tunity to receive advance earned income pay23 ments from the responsible State agency, and

24 given the opportunity to elect to participate in

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

2 addition to receiving the certifications and

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

4 the eligibility of participating residents for the

5 earned tax credit,

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

7 each participating resident and to the Secretary

8 by January 31 of each year a written statement

9 showing—

10 ‘‘(i) the name and taxpayer identifica11 tion number of the participating resident,

12 and

13 ‘‘(ii) the total amount of advance

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

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

18 the Secretary by December 1 of each year a

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

22 ‘‘(H) commits the State to treat the ad23 vanced earned income payments as described in

24 subsection (g)(5) and any repayments of exces-
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1 sive advance earned income payments as de2 scribed in subsection (g)(6),

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

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

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

10 before June 30, 1995.

11 ‘‘(4) AMOUNT AND TIMING OF ADVANCE

12 EARNED INCOME PAYMENTS.—

13 ‘‘(A) AMOUNT.—

14 ‘‘(i) IN GENERAL.—The method for

15 determining the amount of advance earned

16 income payments made to each participat17 ing resident is to conform to the full extent

18 possible with the provisions of subsection

19 (c).

20 ‘‘(ii) SPECIAL RULE.—A State may,

21 at its election, apply the rules of subsection

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

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

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

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

5 ‘the same percentage (as applied in clause

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

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

8 earned income payments may be made on the

9 basis of the payroll periods of participating resi10 dents, on a single statewide schedule, or on any

11 other reasonable basis prescribed by the State

12 in its proposal; however, in no event may ad13 vance earned income payments be made to any

14 participating resident less frequently than on a

15 calendar-quarter basis.

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

17 OF WITHHOLDING AND FICA TAXES.—

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

19 title, advance earned income payments during

20 any calendar quarter—

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

23 gross income, and

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

3 the calendar quarter by the State

4 under section 3401 (relating to wage

5 withholding), and

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

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

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

12 quarter under section 3111 (relating

13 to FICA employer taxes),

14 as if the State had paid to the Secretary,

15 on the day on which payments are made to

16 participating residents, an amount equal to

17 such payments.

18 ‘‘(B) ADVANCE PAYMENTS EXCEED TAXES

19 DUE.—If for any calendar quarter the aggre20 gate amount of advance earned income pay21 ments made by the responsible State agency

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

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

2 which bears the same ratio to such excess as

3 such advance earned income payment bears to

4 the aggregate amount of all such advance

5 earned income payments.

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

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

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

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

14 United States, the repayment amount during

15 the repayment calendar quarter.

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

18 an excessive advance income payment is that

19 portion of any advance earned income payment

20 that, when combined with other advance earned

21 income payments previously made to the same

22 participating resident during the same calendar

23 year, exceeds the amount of earned income tax

24 credit to which that participating resident is en25 titled under section 32 for that year.
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1 ‘‘(C) REPAYMENT AMOUNT.—The repay2 ment amount is equal to 50 percent of the ex3 cess of—

4 ‘‘(i) excessive advance earned income

5 payments made by a State during a par6 ticular calendar year, over

7 ‘‘(ii) the sum of—

8 ‘‘(I) 4 percent of all advance

9 earned income payments made by the

10 State during that calendar year, and

11 ‘‘(II) the excessive advance

12 earned income payments made by the

13 State during that calendar year that

14 have been collected from participating

15 residents by the Secretary.

16 ‘‘(D) REPAYMENT CALENDAR QUARTER.—

17 The repayment calendar quarter is the second

18 calendar quarter of the third calendar year

19 after the calendar year in which an excessive

20 earned income payment is made.

21 ‘‘(7) DEFINITIONS.—For purposes of this sec22 tion—

23 ‘‘(A) STATE ADVANCE PAYMENT PRO24 GRAM.—The term ‘State Advance Payment

25 Program’ means the program described in a
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1 proposal submitted for designation under para2 graph (1) and designated by the Secretary

3 under paragraph (2).

4 ‘‘(B) RESPONSIBLE STATE AGENCY.—The

5 term ‘responsible State agency’ means the sin6 gle State agency that will be making the ad7 vance earned income payments to residents of

8 the State who elect to participate in a State Ad9 vance Payment Program.

10 ‘‘(C) ADVANCE EARNED INCOME PAY11 MENTS.—The term ‘advance earned income

12 payments’ means an amount paid by a respon13 sible State agency to residents of the State pur14 suant to a State Advance Payment Program.

15 ‘‘(D) PARTICIPATING RESIDENT.—The

16 term ‘participating resident’ means an individ17 ual who—

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

19 in effect a designated State Advance Pay20 ment Program,

21 ‘‘(ii) makes the election described in

22 paragraph (3)(C) pursuant to guidelines

23 prescribed by the State,
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1 ‘‘(iii) certifies to the State the number

2 of qualifying children the individual has,

3 and

4 ‘‘(iv) provides to the State the certifi5 cations and statement set forth in sub6 sections (b)(1), (b)(2), (b)(3), and (b)(4)

7 (except that for purposes of this clause

8 (iv), the term ‘any employer’ shall be sub9 stituted for ‘another employer’ in sub10 section (b)(3)), along with any other infor11 mation required by the State.’’.

12 (b) TECHNICAL ASSISTANCE.—The Secretaries of

13 Treasury and Health and Human Services shall jointly en14 sure that technical assistance is provided to State Advance

15 Payment Programs and that these programs are rigor16 ously evaluated.

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

18 annual reports detailing the extent to which—

19 (1) residents participate in the State Advance

20 Payment Programs,

21 (2) participating residents file Federal and

22 State tax returns,

23 (3) participating residents report accurately the

24 amount of the advance earned income payments
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1 made to them by the responsible State agency dur2 ing the year, and

3 (4) recipients of excessive advance earned in4 come payments repaid those amounts.

5 The report shall also contain an estimate of the amount

6 of advance earned income payments made by each respon7 sible State agency but not reported on the tax returns of

8 a participating resident and the amount of excessive ad9 vance earned income payments.

10 (d) AUTHORIZATION OF APPROPRIATIONS.—For pur11 poses of providing technical assistance described in sub12 section (b), preparing the reports described in subsection

13 (c), and providing grants to States in support of des14 ignated State Advance Payment Programs, there are au15 thorized to be appropriated in advance to the Secretary

16 of the Treasury and the Secretary of Health and Human

17 Services a total of $1,400,000 for fiscal years 1996

18 through 1999.